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 skyrocketing flood insurance premiums. The rising insurance premiums caused by FEMA’s new risk assessment program, Risk Rating 2.0, have left many Americans vulnerable, including thousands of Louisianans who have been forced to drop their policies.
“The National Flood Insurance Program’s outlandish premiums are crippling Americans’ ability to protect their families and homes,” said Dr. Cassidy. “While we work to fix the broken system, this tax credit provides relief to current policyholders and provides a path for others to re-enroll in the program.”
“Flood insurance is becoming less and less affordable for families across our country,” said Senator Booker. “This bipartisan legislation will provide much needed relief for low- and middle-income households, particularly in New Jersey, where many families are grappling with rising premiums through the National Flood Insurance Program. This legislation is one important step forward as we work to expand access, lower costs, and protect New Jersey families from extreme weather and flooding.”
The Flood Insurance Affordability Tax Credit Act will also direct the 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
Last month, 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, 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 last year to talk with residents about their flood insurance premiums, resulting in the second episode of his series Bill on the Hill.
Over the last several months, Cassidy has delivered a series of speeches on the Senate floor calling for action on NFIP. Most recently, he demanded that Congress reauthorize and reform the program just before its authorization expired at the end of the fiscal year on September 30th.
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