Source: United States Senator John Kennedy (Louisiana)
WASHINGTON – Sen. John Kennedy (R-La.) today introduced the Flood Insurance Fairness Act to stop the Biden administration from unilaterally making changes to the National Flood Insurance Program (NFIP) that would raise premiums for Louisianians affected by flooding.
“Louisianians are still reeling from last fall’s historic storms, and it’s already hurricane season again. The last thing these families need is an unnecessary hike in their flood insurance premiums. Yet the Biden administration is bypassing Congress in order to raise premiums for vulnerable Louisianians. Louisianians deserve to have a say in a plan that could make their housing unaffordable overnight. The Flood Insurance Fairness Act would require congressional approval before the Biden administration could make any changes to the National Flood Insurance Program,” said Kennedy.
The Federal Emergency Management Agency (FEMA) is initiating Risk Rating 2.0, a new rating system for NFIP. Risk Rating 2.0 is scheduled to go into effect for new NFIP policies on Oct. 1, 2021. New rates for existing NFIP policyholders will go into effect on April 1, 2022. The new rating system would change the way premium rates are calculated, potentially making flood insurance unaffordable for Louisiana families in flood-prone areas.
The Flood Insurance Fairness Act would require congressional approval before FEMA could make any changes to NFIP, including implementing Risk Rating 2.0. The bill would also freeze premiums at the date of the bill’s enactment until Congress agrees to change them.
Kennedy wrote to Senate Banking Committee Chairman Sherrod Brown (D-Ohio) this April requesting a hearing to examine Risk Rating 2.0 and recently spoke out against the new rating system on the Senate floor.
Text of the Flood Insurance Fairness Act is available here.