WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) previewed his efforts to reauthorize and reform the National Flood Insurance Program (NFIP) ahead of the hearing he secured in the U.S. Senate Banking Committee this Thursday. BR Proud highlighted Cassidy’s successful efforts leading up to this hearing which will bring Louisiana voices to Washington D.C.
“This hearing is an opportunity to tell Americans what Louisianians have been telling me for years. Biden’s Risk Rating 2.0 is crushing them and it will crush people in any state which needs flood insurance. They need relief,” said Dr. Cassidy.
WHAT: U.S. Senate Banking Committee Hearing on NFIP
WHEN: Thursday, January 25
10:00 am ET / 9:00 am CT
WITNESS: Mr. Michael Hecht, President & CEO of GNO, Inc.
LIVESTREAM: Watch Live Here
Louisiana Senator Tries Again for Flood Insurance Reform
By: Shannon Heckt
“Louisiana Sen. Bill Cassidy is continuing his push in Congress to hold FEMA accountable and help homeowners with flood insurance rates. This week a special hearing on Capitol Hill will bring a focus to the issue.
“‘They need relief,’ Cassidy said about homeowners faced with rising insurance costs.
“He said in a weekly press call that one of the things he hears from constituents the most is the need to lower the cost of flood insurance for people living in coastal areas. Under FEMA’s Risk Rating 2.0, some people have seen their premiums skyrocket not only along Louisiana’s coast, but throughout the country.
“‘The nonpartisan Congressional Budget Office Budget Office estimates that roughly 900,000 policyholders will drop out of the program in the next ten years because of a Risk Rating 2.0 mapping,’ Cassidy said.
“He reintroduced his bill, National Flood Insurance Program Reauthorization (NFIP-RE) Act of 2023, with congressman Clay Higgins and other lawmakers from New Jersey that would put a 9% cap on premium increases under Risk Rating 2.0. It also would extend the program for five years so it is not continually caught up in budget fights.
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“Later this week, the President of Greater New Orleans Inc. will testify to a congressional committee to explain how the insurance costs are impacting Louisiana residents. Cassidy hopes the testimony will help get a hearing on the books for his bill.
“In the meantime, he is helping people get funding for mitigation efforts through the Bipartisan Infrastructure law.
“‘If we can elevate homes, if we can improve drainage, if we can do anything that decreases the risk of flooding, that will decrease the flood insurance premium,’ Cassidy said.
“The hearing takes place on Thursday.”
Background
Last year, Cassidy reintroduced his National Flood Insurance Program Reauthorization Act to reauthorize the program for five years, providing greater stability for homeowners, small business owners, and the real estate market as the nation continues to struggle with inflationary pressures. It will also implement a series of sweeping reforms to reduce costs, make generational investments in communities to reduce flood risk, and establish a fairer claims process for policyholders. He participated in a roundtable hosted by GNO, Inc. and the Coalition for Sustainable Flood Insurance before introducing the bill to hear from community leaders and advocates on the issue.
Cassidy also traveled St. Bernard Parish last August to talk with residents about their flood insurance premiums, resulting in the second episode of his series Bill on the Hill.
Last February, Cassidy delivered a speech on the U.S. Senate floor demanding the Biden administration halt massive hikes to National Flood Insurance Program premiums caused by Risk Rating 2.0. He continues to call out President Biden – who can stop the implementation of Risk Rating 2.0 with the stroke of his pen.
The NFIP-RE Act of 2023 has been met with an outpouring of support including New Orleans Chamber of Commerce President and CEO Sandra Lindquist, Baton Rouge Area Chamber President and CEO Adam Knapp, Home Builders Association of Greater Baton Rouge President and CEO Karen Zito, Greater New Orleans, Inc. President and CEO Michael Hecht, Restore and Retreat Executive Director and State Representative Joseph Orgeron, Lafourche Parish President Hon. Archie Chaisson, III, St. Tammany Corporation CEO Chris Masingill, Terrebonne Levee and Conservation District President Tony Alford, Northshore Home Builders Association Executive Officer Amy Ybarzabal, and National Association of Counties Executive Director Matthew Chase. Here’s what people are saying.
In February 2022, FEMA publicly acknowledged an internal study finding that the implementation of Risk Rating 2.0 to the National Flood Insurance Program (NFIP) could cause 20% of policyholders to drop out of the program due to skyrocketing premiums. Learn more here.
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