A new bill could prevent President Biden from making changes to the National Flood Insurance Program (NFIP) – specifically, changes that would result in premium increases.
The Flood Insurance Fairness Act was introduced by Senator John Kennedy (R-Louisiana), with the aim of protecting Louisianians from spikes in NFIP premiums.
“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,” Kennedy said. “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 senator also added that once passed, the bill would require the Biden administration to secure congressional approval before it can make any changes to the NFIP.
Kennedy’s bill comes as the Federal Emergency Management Agency (FEMA) prepares to roll out “Risk Rating 2.0” – its new rating system for NFIP scheduled to go into effect on April 01, 2022. According to a report by ValuePenguin, 80% of homeowners in Louisiana with NFIP policies will see their premiums increase under the new rating system.
The Ouachita Citizen reported that the Flood Insurance Fairness Act would also require congressional approval before FEMA can implement Risk Rating 2.0.
