WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) delivered a speech on the U.S. Senate floor calling for a two-year extension of the National Flood Insurance Program (NFIP) to give Louisiana families stability. Cassidy also demanded Congress takes action to extend NFIP before it expires on March 14, 2025, and called for reforms to make the flood insurance program affordable again.
“We must understand it’s not only government funding that expires on Friday. Authorizations for key programs like the NFIP are about to expire as well,” said Dr. Cassidy.
“However, I am working to secure an even longer reauthorization so that NFIP is not thrown into legal purgatory every year—or even multiple times a year. Today, I introduced a bill to fully reauthorize NFIP for this year and next year,” concluded Dr. Cassidy. “We need to make flood insurance affordable again—and I will keep working to do that—but first, let’s make sure it survives the weekend.”
Background
Today, Cassidy introduced legislation to extend the NFIP for two years to give Louisiana families stability. The bill would extend the program through December 31, 2026, significantly longer than the previous 32 short-term extensions Congress has passed in the last 10 years.
In February, Cassidy introduced the Flood Insurance Affordability Tax Credit Act to give low- and middle-income households enrolled in the National Flood Insurance Program (NFIP) a 33% refundable tax credit to combat rising flood insurance premiums.
Last year, Cassidy has delivered a series of speeches on the U.S. Senate floor calling for action on NFIP. Most recently, he highlighted the need for the Flood Insurance Affordability Tax Credit on the Senate floor.
In October 2024, Cassidy released a report outlining the current state of the NFIP and the issues that have led to skyrocketing premiums for millions of homeowners.
In January 2024, the U.S. Senate Banking Committee held a hearing on NFIP at the request of Cassidy. The hearing highlighted the urgent need for Congress to act and featured GNO, Inc. President Hecht as a witness. Cassidy also 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 traveled St. Bernard Parish in 2023 to talk with residents about their flood insurance premiums, recording the second episode of his Bill on the Hill series.
Cassidy’s remarks as prepared for delivery are below:
Mr. President,
I agree with President Trump, Speaker Johnson, and Leader Thune that we must keep the government open.
And we must understand it’s not only government funding that expires on Friday.
Authorizations for key programs like the National Flood Insurance Program—or NFIP—are about to expire as well.
Families can barely afford rising insurance premiums.
We cannot allow NFIP to lapse altogether.
Why are flood insurance premiums so high, you might ask?
Flood insurance premiums have skyrocketed across the country due to FEMA’s new risk assessment system, Risk Rating 2.0.
At the heart of the problem with Risk Rating 2.0 is that with exponentially higher premiums, people will quickly be unable to afford coverage and drop their policies altogether.
If you don’t flood, and you can’t afford insurance, why would you keep paying for it?
The pool of policyholders will shrink, and the program will enter what’s called an actuarial death spiral.
Risk Rating 2.0 is like termites eating away at the foundation of a house.
If we do nothing, it’s going to collapse.
NFIP covers 4.7 million American homes across the country.
Now, I’ve spoken on this floor about the impact this has on Louisiana many times.
But it’s not just a Louisiana—or even coastal—issue.
Look at a map of those affected.
The states in dark yellow have been hit the hardest by flooding and have relied on NFIP the most.
They have all had more than one billion in NFIP claims since 1978.
The 44 states have had over fifty million in total NFIP claims.
To put it simply, this is a national issue.
My message to my colleagues who represent states that rely on the National Flood Insurance Program is let’s find a way forward.
We are one day away here.
One day from a lapse in NFIP if we fail to act.
Every single member of this body has constituents who rely on the National Flood Insurance Program.
We must reauthorize and reform NFIP before it’s too late.
The CR passed by Speaker Johnson and the House includes a short-term extension, which is better than nothing.
We must take that if it is the only option before us right now.
However, I am working to secure an even longer reauthorization so that NFIP is not thrown into legal purgatory every year—or even multiple times a year.
Today, I introduced a bill to fully reauthorize NFIP for this year and next year.
4.7 million homeowners across the country deserve even that little bit of certainty—and frankly, it’s not asking too much.
Imagine if your homeowner’s or life insurance was subject to lapsing every year if Congress couldn’t get their act together?
Well, for families living in communities where NFIP is the only option for flood insurance, you can imagine how this would be unsettling.
In less than 10 years, Congress has passed 32 short-term NFIP extensions.
This week, the Senate is voting on the 33rd short-term extension.
We’ve asked Americans to hold their breath 33 times. Businesses need stability. This is the opposite of stability!
We need to make flood insurance affordable again—and I will keep working to do that—but first, let’s make sure it survives the weekend.
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