WASHINGTON – Today, the House Financial Services Committee passed two pieces of bipartisan legislation to reauthorize the National Flood Insurance Program (NFIP) through September 30, 2024 and implement much-needed reforms to the outdated program.
Watch Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), deliver remarks in support of the bipartisan NFIP legislation here or by clicking on the image below.
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Ranking Member McHenry: “We all know that flooding is the most common, destructive, and expensive natural disaster we face. What worked in the Lyndon Johnson era does not work in 2019. We know that 5 million policyholders have come to rely on this very important program and what we have before us is a series of customer-driven, customer-focused reforms. H.R. 3167 and H.R. 3111… allow the NFIP to operate, and NFIP customers, to benefit from the 21st century revolution of technology. Short-term extensions benefit no one, substantive reforms benefit the taxpayer and the program over the long-run, that’s what we have before us today.”
Together, H.R. 3167, the “National Flood Insurance Program Reauthorization Act of 2019” and H.R. 3111, the “National Flood Insurance Program Administration Reform Act of 2019” will:
- Reauthorize the NFIP for five years through September 30, 2024.
- Encourage mitigation – Authorize the Federal Emergency Management Agency (FEMA) to enter into agreements with states to establish a revolving fund for flood mitigation assistance to decrease flood risk.
- Modernize mapping – Require FEMA to employ updated mapping technology and expand current flood mapping to all areas of the U.S.
- Benefit policyholders – Allow NFIP policyholders who leave the program to purchase a private insurance policy to return to the NFIP without penalty and requires FEMA to create a coverage disclosure sheet for policyholders.
- Protect taxpayer dollars – Require a new annual independent actuarial study of the NFIP to analyze its financial status, recommend changes, and evaluate its accuracy.
- Hold bad actors accountable – Require FEMA to prohibit false or fraudulent statements connected to the preparation, production or submission of claims adjustment or engineering reports, and prohibits hiring any attorney in connection with the program who has been suspended or disbarred.
In addition to applauding Chairwoman Maxine Waters’ (CA-43) willingness to work in a bipartisan manner, the Ranking Member extended his appreciation to Ranking Member of the Subcommittee on Housing, Community Development, and Insurance, Sean Duffy (WI-7), and Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions, Blaine Luetkemeyer (MO-3), for their work over the course of many years to achieve necessary NFIP reforms and long-term reauthorization.