Senate Banking leaders introduce flood insurance bill

Senate Banking leaders introduce flood insurance bill
© Haiyun Jiang

The leaders of the Senate Banking Committee on Monday evening released a bipartisan bill to keep the federal flood insurance program funded for six years and create new risk mitigation procedures for communities to follow.

Senate Banking Committee Chairman Mike CrapoMichael (Mike) Dean CrapoThe job no GOP senator wants: 'I'd rather have a root canal' Lawmakers battle over future of Ex-Im Bank Eleven GOP senators sign open letter backing Sessions's comeback bid MORE (R-Idaho) and ranking Democrat Sherrod BrownSherrod Campbell BrownLawmakers battle over future of Ex-Im Bank Hillicon Valley: Senate Dems unveil privacy bill | Trump campaign, RNC rip Google political ad policy | Activists form national coalition to take on Amazon | Commerce issues rule to secure communications supply chain Warren, Brown call for greater enforcement of fair lending laws after Goldman gender discrimination allegations MORE (D-Ohio) said the bill would serve as a template for consideration by the whole committee, and could likely be amended.

“We have held multiple hearings and worked on a bipartisan basis to hear thoughts and concerns from the Program’s stakeholders, regulators and from Banking Committee members,” Crapo and Brown said in a joint statement. “This bill represents the many areas where we have found agreement, and we look forward to working with our colleagues to address outstanding issues.”

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Congress has until October 1 to reauthorize the National Flood Insurance Program (NFIP), first established in the 1960s to provide flood insurance to at-risk homes. Lawmakers are seizing on the deadline as a chance to cut the NFIP’s $24 billion debt and shift more flood insurance customers to a burgeoning private market.

Private flood insurance was largely nonexistent when the NFIP was established in 1968, and Republicans are eager to reduce taxpayer exposure to risky homes by easing federal policy holders into private plans.

A House reform plan is currently stalled in the House Financial Services Committee amid bipartisan opposition from more than 20 lawmakers.

The Senate bill released Monday contains similar provisions to the House bills. The bill directs the Federal Emergency Management Administration to develop flood area risk mitigation strategies and update flood mapping procedures, places caps on NFIP premiums and deductibles. It also mandates the use of higher actuarial rates over time.