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WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) delivered a speech on the U.S. Senate floor highlighting the strain rising flood insurance premiums are placing on families during the holiday season. Cassidy also demanded action to extend the National Flood Insurance Program (NFIP) before it expires on December 20, 2024, and called for reforms to make the flood insurance program affordable again.
“The season should be a time filled with family, friends, and joy, but this year it will be filled with financial worry for many Americans. They are struggling to pay for groceries, struggling to heat their homes, and struggling to afford flood insurance,” said Dr. Cassidy.
“That’s why this week I introduced the Flood Insurance Affordability Tax Credit Act to give relief to Americans enrolled in NFIP. My legislation will give low- and middle-income households a real-time 33 percent refundable tax credit to combat the out-of-control flood insurance premiums,” continued Dr. Cassidy. “It is not a permanent solution—we need serious reform.”
Background
Earlier this month, Cassidy introduced the Flood Insurance Affordability Tax Credit Act to give low- and middle-income households enrolled in NFIP a 33 percent refundable tax credit to combat skyrocketing flood insurance premiums. Cassidy also recently released a report detailing the current state of NFIP and the issues that led to skyrocketing premiums for millions of homeowners. The report explains the historical developments that led NFIP to this moment, key findings following a thorough examination of the crisis, and next steps Washington must take.
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. The programs authorization was extended to December 20th days prior to the September deadline.
Cassidy’s remarks as prepared for delivery are below:
Madam President,
The holiday season is upon us.
The season should be a time filled with family, friends, and joy, but this year it will be filled with financial worry for many Americans.
They are struggling to pay for groceries, struggling to heat their homes, and struggling to afford flood insurance.
For over 50 years, Americans have relied on the National Flood Insurance Program—or NFIP—to be a safety net in case of a disaster.
NFIP covers 4.7 million homes across the country.
However, the program has become unaffordable, unaccountable, and unsustainable.
Without congressional approval, FEMA implemented a new risk assessment program called Risk Rating 2.0.
This program has unfairly jacked up premiums.
The skyrocketing prices brought on by Risk Rating 2.0 have left many Louisiana families and families around the nation with major financial strain.
This financial strain has caused 52,000 Louisianans to drop their coverage in just one year, leaving them with no way to protect their homes.
And nearly half a million Americans nationwide have dropped their coverage!
Time and time again, I hear from constituents about the burden Risk Rating 2.0 places on their pocketbooks.
During the holiday season, this burden will only be amplified as a Mama tries to give her children a wonderful Christmas.
That’s why this month I introduced the Flood Insurance Affordability Tax Credit Act to give relief to Americans enrolled in NFIP.
My legislation will give low- and middle-income households a real time 33 percent refundable tax credit to combat the out-of-control flood insurance premiums.
It is not a permanent solution—we need serious reform.
But cutting flood insurance bills by a third is a good place to start.
I am working on a comprehensive NFIP reform package that protects families from excessive premium hikes, strengthens mitigation efforts, and simplifies the claims process by cutting red tape.
While we work to fix the broken system—and believe me when I say I am working around the clock to do so—this tax credit provides relief for current policyholders.
And it provides a path for Americans who have been forced to drop their coverage due to unaffordable premiums to re-enroll in the program at an affordable price.
It also directs the Treasury Secretary to establish a program where premiums can be paid in advance.
This will benefit families when they need it the most—like during the holiday season.
Parents shouldn’t have to pick between putting food on the table, wrapping presents under the Christmas tree, or paying for flood insurance.
With a tax credit taking a third off her flood insurance bill, she won’t have to.
She will be able to give her children a Merry Christmas and protect the home they sleep in.
This isn’t true just for families living along the Gulf Coast.
It’s true for families across the nation.
This year’s hurricane season showed us flooding is possible in areas that don’t typically make you think “flooding”.
Just think of all the homes devastated by flooding in North Carolina.
Americans need relief from Risk Rating 2.0. That is not a question.
And Americans need us to pass massive reform.
However, perhaps most importantly, Americans expect us to guarantee that the National Flood Insurance Program will still be around come the New Year.
If Congress does nothing, the program will expire at the end of this week.
Families are already worried about how they will pay their next flood insurance bill; we do not need to add to their worry that the program might cease to exist.
Frankly speaking, letting the program lapse is not an option.
NFIP is often the only flood insurance option for many communities.
Without it, we will leave millions vulnerable.
This is why, I am also working with the entire Louisiana delegation on legislation to reauthorize the program.
Today, I urge my colleagues to support this reauthorization and give their constituents peace of mind and protection this holiday season.
And finally, I urge my colleagues to look to the future.
Passing the flood insurance affordability tax credit to give relief to policyholders and reauthorizing the program is only the first step.
They are both critical steps this body must take, but unless we want to do a disservice to the American people and NFIP, we can’t—and should not—stop here.
When we come back in the New Year, we must commit to reforming the program to make flood insurance affordable again!!
Every single one of my colleagues has constituents who rely on the NFIP.
Just look at this chart. Every single state in the union is shaded in, representing the amount of NFIP claims each has had.
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.
44 states have had over fifty million in total NFIP claims.
It is clear Americans rely on the program, but if we continue down this path, the program is going to go bankrupt.
My message to my colleagues who represent states that rely on the National Flood Insurance Program—which is every single one of them— is let’s find a way forward.
My team is working on a bipartisan, permanent solution that will roll back Risk Rating 2.0 and make flood insurance affordable and accountable again.
And I encourage my colleagues to join me in the New Year to get this done.
In the meantime, let our Christmas gift to Americans enrolled in the National Flood Insurance program be a lower flood insurance bill and peace of mind by reauthorizing the program.
With that, I yield.
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