WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Cory Booker (D-NJ) 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 percent refundable tax credit to combat rising flood insurance premiums. FEMA’s risk assessment program, Risk Rating 2.0, has caused flood insurance premiums to skyrocket, leaving many Americans vulnerable, including thousands of Louisianans who have been forced to drop their policies.
“While we work to fix the broken National Flood Insurance Program, this tax credit provides relief to current policyholders struggling with skyrocketing premiums. It also provides a path for others to re-enroll in the program,” said Dr. Cassidy. “We must give Americans the ability to protect their families and homes.”
“Flood insurance is a critical safety net for families, but costs are going up and it’s harder and harder to afford,” said Senator Booker. “This bipartisan legislation will provide much needed relief by offering a tax credit to help people across the nation, particularly in New Jersey, who are struggling to keep up with rising flood insurance premiums. Protecting your family and your home shouldn’t be a luxury, and this bill is an important step toward making flood insurance more affordable for all Americans.”
The Flood Insurance Affordability Tax Credit Act will also direct the U.S. Treasury Secretary to establish a program where premiums can be paid in advance on behalf of taxpayers when premiums are due, benefitting families when they need it most.
Background
In 2024, 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 a Louisiana 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 series Bill on the Hill.
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