National Flood Insurance Program Reauthorization and Reform Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5484 Introduced in House (IH)]

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119th CONGRESS 1st Session H. R. 5484

To reauthorize the National Flood Insurance Program, and for other purposes.

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IN THE HOUSE OF REPRESENTATIVES

September 18, 2025

Mr. Pallone (for himself and Mr. Higgins of Louisiana) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Transportation and Infrastructure, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

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A BILL

To reauthorize the National Flood Insurance Program, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Flood Insurance Program Reauthorization and Reform Act of 2025''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Definitions. TITLE I--REAUTHORIZATION AND AFFORDABILITY

Sec. 101. Reauthorization. Sec. 102. Cap on annual premium increases. Sec. 103. Targeted means-tested assistance. Sec. 104. Optional monthly installment premium payment plans. Sec. 105. Study on business interruption coverage. Sec. 106. Cooperative coverage fairness. Sec. 107. Coverage limits. Sec. 108. Study on participation rates. Sec. 109. National Flood Insurance Act definitions regarding the Write Your Own Program. TITLE II--MITIGATION AND MAPPING

Sec. 201. Mitigation for high-risk properties. Sec. 202. Increased cost of compliance coverage. Sec. 203. Flood mitigation assistance grants. Sec. 204. Urban mitigation opportunities. Sec. 205. Community Rating System Regional Coordinator. Sec. 206. Mitigation loan program. Sec. 207. Revolving loan funds. Sec. 208. Mapping modernization. Sec. 209. Appeals. Sec. 210. Levee-protected areas. Sec. 211. Community-wide flood mitigation activities. Sec. 212. Premium calculator. Sec. 213. Consideration of mitigation projects in flood insurance premium rates. TITLE III--SOLVENCY

Sec. 301. Forbearance on NFIP interest payments. Sec. 302. Cap on Write Your Own company compensation. Sec. 303. Third-party service provider costs; transparency. Sec. 304. Availability of NFIP claims data. Sec. 305. Refusal of mitigation assistance. Sec. 306. Multiple structure mitigation. TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS

Sec. 401. Earth movement fix and engineer standards. Sec. 402. Coverage of pre-FIRM condominium basements and study on street raising. Sec. 403. Guidance on remediation and policyholder duties. Sec. 404. Appeal of decisions relating to flood insurance coverage. Sec. 405. Accountability for underpayments and overpayments by Write Your Own companies. Sec. 406. Policyholders' right to know. Sec. 407. Termination of certain contracts under the National Flood Insurance Program. Sec. 408. Deadline for claim processing. Sec. 409. No manipulation of engineer reports. Sec. 410. Improved training of floodplain managers, agents, and adjusters. Sec. 411. Flood insurance continuing education and training. Sec. 412. Shifting of attorney fees and other expenses. Sec. 413. DOJ defense against policyholder lawsuits. Sec. 414. Reforming use of proof of loss forms. Sec. 415. Agent Advisory Council. Sec. 416. Disclosure of flood risk information prior to transfer of property. Sec. 417. Grace period for renewal of coverage at renewal offer rate.

SEC. 3. DEFINITIONS.

In this Act: (1) Administrator.--The term ``Administrator'' means the Administrator of the Federal Emergency Management Agency. (2) National flood insurance program.--The term ``National Flood Insurance Program'' means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.). (3) National flood mitigation fund.--The term ``National Flood Mitigation Fund'' means the fund established under section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d). (4) Write your own company.--The term ``Write Your Own Company'' has the meaning given the term in section 1370(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)), as amended by section 109 of this Act.

TITLE I--REAUTHORIZATION AND AFFORDABILITY

SEC. 101. REAUTHORIZATION.

(a) In General.-- (1) Financing.--Section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30, 2023'' and inserting ``September 30, 2030''. (2) Program expiration.--Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking ``September 30, 2023'' and inserting ``September 30, 2030''. (3) Retroactive effective date.--If this Act is enacted after September 30, 2025, the amendments made by paragraphs (1) and (2) shall take effect as if enacted on September 30, 2025. (b) Continued Operation During Lapse of Appropriations.--Section 1310(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(f)) is amended-- (1) by inserting ``(1)'' after ``(f)''; and (2) by adding at the end the following: ``(2)(A) In this paragraph, the term `period of a lapse in appropriations from the Fund' means a period, on or after the first day of a fiscal year, during which an appropriation Act for the fiscal year with respect to the Fund has not been enacted and continuing appropriations are not in effect for the fiscal year with respect to the Fund. ``(B) Notwithstanding paragraph (1), during a period of a lapse in appropriations from the Fund, amounts in the Fund not otherwise appropriated shall be available to the Administrator to carry out the flood insurance program under this title, subject to the same terms and conditions (except with respect to the period of availability), and in an amount not greater than the rate for operations, provided for the Fund in the most recently enacted regular or continuing appropriation Act. ``(C) Amounts in the Fund shall be available under subparagraph (B) for a fiscal year during the period beginning on the first day of a period of a lapse in appropriations from the Fund during the fiscal year and ending on the date on which the regular appropriation Act for the fiscal year with respect to the Fund is enacted (whether or not such law makes amounts available from the Fund) or a law making continuing appropriations with respect to the Fund is enacted, as the case may be. ``(D) Expenditures and obligations made under this paragraph shall be charged to the amounts made available from the Fund under the regular appropriation Act, or law making continuing appropriations, with respect to the Fund that is enacted for the applicable fiscal year.''.

SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.

(a) Definition.--In this section, the term ``covered cost''-- (1) means-- (A) the amount of an annual premium with respect to any policy for flood insurance under the National Flood Insurance Program; (B) any surcharge imposed with respect to a policy described in subparagraph (A) (other than a surcharge imposed under section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b))), including a surcharge imposed under section 1308A(a) of that Act (42 U.S.C. 4015a(a)), as amended by this Act; and (C) a fee described in paragraph (1)(B)(iii) or (2) of section 1307(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)); and (2) does not include any cost associated with the purchase of insurance under section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), as amended by this Act, including any surcharge that relates to insurance purchased under such section 1304(b). (b) Limitation on Increases.-- (1) Limitation.-- (A) In general.--During the 5-year period beginning on the date of enactment of this Act, notwithstanding section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), as amended by this Act, and subject to subparagraph (B), the Administrator may not, in any year, increase the amount of any covered cost by an amount that is more than 9 percent, as compared with the amount of the covered cost during the previous year, except where the increase in the covered cost relates to an exception under paragraph (1)(C)(iii) of such section 1308(e). (B) Decrease of amount of deductible or increase in amount of coverage.--In the case of a policyholder described in section 1308(e)(1)(C)(ii) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)(1)(C)(ii)), as amended by this Act, the Administrator shall establish a process by which the Administrator determines an increase in covered costs for the policyholder that is-- (i) proportional to the relative change in risk based on the action taken by the policyholder; and (ii) in compliance with subparagraph (A). (2) New rating systems.-- (A) Classification.--With respect to a property, the limitation under paragraph (1) shall remain in effect for each year until the covered costs with respect to the property reflect full actuarial rates, without regard to whether, at any time until the year in which those covered costs reflect full actuarial rates, the property is rated or classified under the Risk Rating 2.0 methodology (or any substantially similar methodology). (B) New policyholder.--If a property to which the limitation under paragraph (1) applies is sold before the covered costs for the property reflect full actuarial rates determined under the Risk Rating 2.0 methodology (or any substantially similar methodology), that limitation shall remain in effect for each year until the year in which those full actuarial rates take effect. (c) Rule of Construction.--Nothing in subsection (b) may be construed as prohibiting the Administrator from reducing, in any year, the amount of any covered cost, as compared with the amount of the covered cost during the previous year. (d) Average Historical Loss Year.--Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking subsection (h) and inserting the following: ``(h) Rule of Construction.--For purposes of this section, the calculation of an `average historical loss year' shall be computed in accordance with generally accepted actuarial principles.''. (e) Disclosure With Respect to the Affordability Standard.--Section 1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second sentence, by inserting ``and shall include in the report the number of those exceptions as of the date on which the Administrator submits the report and the location of each policyholder insured under those exceptions, organized by county and State'' after ``of the Senate''.

SEC. 103. TARGETED MEANS-TESTED ASSISTANCE.

(a) Means-Tested Program.-- (1) In general.--Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1308A (42 U.S.C. 4015a) the following:

``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.

``(a) Definitions.--In this section: ``(1) Covered property.--The term `covered property' means-- ``(A) a primary residential dwelling designed for the occupancy of from 1 to 4 families; or ``(B) personal property relating to a dwelling described in subparagraph (A). ``(2) Eligible policyholder.--The term `eligible policyholder' means a policyholder with a household income that is not more than 140 percent of the area median income for the area in which the property to which the policy applies is located. ``(3) Housing expenses.--The term `housing expenses' means, with respect to a household, the total amount that the household spends in a year on-- ``(A) mortgage payments or rent; ``(B) property taxes; ``(C) homeowners insurance; and ``(D) premiums for flood insurance under the national flood insurance program. ``(4) Insurance costs.--The term `insurance costs' means, with respect to a covered property for a year-- ``(A) risk premiums and fees estimated under section 1307 and charged under section 1308; ``(B) surcharges assessed under sections 1304 and 1308A; and ``(C) any amount established under section 1310A(c). ``(b) Authority.--Subject to the availability of appropriations, the Administrator is authorized to carry out a means-tested program under which the Administrator provides assistance to eligible policyholders in the form of graduated discounts for insurance costs with respect to covered properties. ``(c) Eligibility.--To determine eligibility for means-tested assistance under this section, the Administrator may accept any of the following with respect to an eligible policyholder: ``(1) Income verification from the National Directory of New Hires established under section 453(i) of the Social Security Act (42 U.S.C. 653(i)). ``(2) A self-certification of eligibility by the eligible policyholder that is provided under penalty of perjury pursuant to section 1746 of title 28, United States Code. ``(3) Any other method identified by the Administrator in interim guidance, or a final rule, issued under subsection (e). ``(d) Discount.--The Administrator may establish graduated discounts available to eligible policyholders under this section, which shall be based on the following factors: ``(1) The percentage by which the household income of an eligible policyholder is equal to, or less than, 120 percent of the area median income for the area in which the property to which the policy applies is located. ``(2) The housing expenses of an eligible policyholder. ``(3) The number of eligible policyholders participating in the program established under this section. ``(4) The availability of funding. ``(5) Any other factor that the Administrator finds reasonable and necessary to carry out the purposes of this section. ``(e) Implementation.-- ``(1) In general.--The Administrator shall issue final rules to implement this section. ``(2) Interim guidance.-- ``(A) In general.--Not later than 1 year after the date of enactment of this section, the Administrator shall issue interim guidance to implement this section, which shall-- ``(i) include-- ``(I) a description of how the Administrator will determine-- ``(aa) eligibility for households to participate in the program established under this section; and ``(bb) assistance levels for eligible households to which assistance is provided under this section; ``(II) the methodology that the Administrator will use to determine the amount of assistance provided to eligible households under this section; and ``(III) any requirements to which eligible policyholders to which assistance is provided under this section will be subject; and ``(ii) expire on the later of-- ``(I) the date that is 84 months after the date of enactment of this section; or ``(II) the date on which the final rules issued under paragraph (1) take effect. ``(B) Rule of construction.--Nothing in subparagraph (A) may be construed to preclude the Administrator from amending the interim guidance issued under that subparagraph. ``(f) Collection of Demographic Information.--The Administrator, in order to evaluate and monitor the effectiveness of this section, and to comply with the reporting requirements under subsection (g), may request demographic information, and other information, with respect to an eligible policyholder to which assistance is provided under this section, which may include-- ``(1) the income of the eligible policyholder, as compared with the area median income for the area in which the property to which the policy applies is located; and ``(2) demographic characteristics of the eligible policyholder, including the race and ethnicity of the eligible policyholder. ``(g) Reports to Congress.-- ``(1) In general.--Not later than 2 years after the date of enactment of this section, and biennially thereafter, the Administrator shall submit to Congress a report regarding the implementation and effectiveness of this section. ``(2) Contents.--Each report submitted under paragraph (1) shall include information regarding, for the period covered by the report-- ``(A) the distribution of household area median income for eligible policyholders to which assistance is provided under this section; ``(B) the number of eligible policyholders to which assistance is provided under this section, which shall be disaggregated by income and demographic characteristics; ``(C) the cost of providing assistance under this section; and ``(D) the average amount of assistance provided to an eligible policyholder under this section, which shall be disaggregated as described in subparagraph (B). ``(h) Risk Communication.--For the purposes of the communication required under section 1308(l), the Administrator shall provide to an eligible policyholder to which assistance is provided under this section a full flood risk determination with respect to the property of the eligible policyholder, which shall reflect the insurance costs with respect to the property before that assistance is provided. ``(i) Funding.-- ``(1) Authorization of appropriations.--There is authorized to be appropriated to the Administrator to carry out this section-- ``(A) $250,000,000 for fiscal year 2024; ``(B) $340,000,000 for fiscal year 2025; ``(C) $400,000,000 for fiscal year 2026; ``(D) $500,000,000 for fiscal year 2027; and ``(E) $600,000,000 for fiscal year 2028. ``(2) Notification.--If, in a fiscal year, the Administrator determines that the amount made available to carry out this section is insufficient to provide assistance under this section, the Administrator shall submit to Congress a notification of the remaining amounts necessary to provide that assistance for that fiscal year. ``(3) Distribution of premium.--With respect to the amount of the discounts provided under this section in a fiscal year, and any administrative expenses incurred in carrying out this section for that fiscal year, the Administrator shall, from amounts made available to carry out this section for that fiscal year, deposit in the National Flood Insurance Fund established under section 1310 an amount equal to those discounts and administrative expenses, except to the extent that section 1310A applies to any portion of those discounts or administrative expenses, in which case the Administrator shall deposit an amount equal to those amounts to which section 1310A applies in the National Flood Insurance Reserve Fund established under section 1310A.''. (2) Use of savings.--In addition to any amounts made available to the Administrator to carry out section 1308B of the National Flood Insurance Act of 1968, as added by paragraph (1), the Administrator shall use any amounts saved as a direct result of the amendments made by section 302(a) of this Act to carry out such section 1308B. (b) National Flood Insurance Act of 1968.--The National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended-- (1) in section 1308(e) (42 U.S.C. 4015(e))-- (A) in paragraph (1)-- (i) in subparagraph (B), by striking ``or'' at the end; (ii) in subparagraph (C)(iii), by adding ``or'' at the end; and (iii) by adding at the end the following: ``(D) in the case of a property with respect to which assistance is provided under section 1308B, if-- ``(i) the applicable policyholder is no longer eligible to receive assistance under that section; ``(ii) the assistance so provided has been decreased under that section; or ``(iii) the Administrator is not authorized, or lacks appropriated funds, to carry out that section;''; and (B) in paragraph (3), by striking ``period; and'' and inserting the following: ``period, except in the case of a property with respect to which assistance is provided under section 1308B if a condition described in clause (i), (ii), or (iii) of paragraph (1)(D) is applicable; and''; and (2) in section 1366(d) (42 U.S.C. 4104c(d))-- (A) by redesignating paragraph (3) as paragraph (4); and (B) by inserting after paragraph (2) the following: ``(3) Flood insurance assistance.--In the case of mitigation activities to structures insured by policyholders that are eligible for assistance under section 1308B, in an amount up to 100 percent of all eligible costs.''. (c) Information Comparisons With the National Directory of New Hires for Flood Insurance Assistance Income Verification.--Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by adding at the end the following new paragraph: ``(12) Information comparisons for flood insurance assistance.-- ``(A) Furnishing of information by fema.--The Administrator of the Federal Emergency Management Agency (in this paragraph, referred to as the `Administrator') shall furnish to the Secretary, on such periodic basis as determined by the Administrator in consultation with the Secretary, information in the custody of the Administrator for comparison with information in the National Directory of New Hires, in order to obtain information in such Directory with respect to individuals who are applying for, or receiving benefits under, section 1308B of the National Flood Insurance Act of 1968. ``(B) Requirement to seek minimum information.--The Administrator shall seek information pursuant to this paragraph only to the extent necessary to verify the employment and income of individuals described in subparagraph (A). ``(C) Duties of the secretary.-- ``(i) Information disclosure.--The Secretary, in cooperation with the Administrator, shall compare information in the National Directory of New Hires with information provided by the Administrator with respect to individuals described in subparagraph (A), and shall disclose information in such Directory regarding such individuals to the Administrator, in accordance with this paragraph, for the purposes specified in this paragraph. ``(ii) Condition on disclosure.--The Secretary shall make disclosures in accordance with clause (i) only to the extent that the Secretary determines that such disclosures do not interfere with the effective operation of the program under this part. ``(D) Use of information by fema.--The Administrator may use information resulting from a data match pursuant to this paragraph only-- ``(i) for the purpose of verifying the employment and income of individuals described in subparagraph (A); and ``(ii) after removal of personal identifiers, to conduct analyses of the employment and income reporting of individuals described in subparagraph (A). ``(E) Disclosure of information by fema.-- ``(i) Purpose of disclosure.--The Administrator may make a disclosure under this subparagraph only for the purpose of verifying the employment and income of individuals described in subparagraph (A). ``(ii) Disclosures permitted.--Subject to clause (iii), the Administrator may disclose information resulting from a data match pursuant to this paragraph only to contractors of the Federal Emergency Management Agency, private insurance companies participating in the Write Your Own Program of the Federal Emergency Management Agency, the Inspector General of the Department of Homeland Security, and the Attorney General, in connection with the administration of a program described in subparagraph (A). Information obtained by the Administrator pursuant to this paragraph shall not be made available under section 552 of title 5, United States Code. ``(iii) Conditions on disclosure.-- Disclosures under this paragraph shall be-- ``(I) made in accordance with data security and control policies established by the Administrator and approved by the Secretary; ``(II) subject to audit in a manner satisfactory to the Secretary; and ``(III) subject to the sanctions under subsection (l)(2). ``(iv) Restrictions on redisclosure.--A person or entity to which information is disclosed under this subparagraph may use or disclose such information only as needed for verifying the employment and income of individuals described in subparagraph (A), subject to the conditions in clause (iii) and such additional conditions as agreed to by the Secretary and the Administrator. ``(F) Reimbursement of hhs costs.--The Administrator shall reimburse the Secretary, in accordance with subsection (k)(3), for the costs incurred by the Secretary in furnishing the information requested under this paragraph. ``(G) Consent.--The Administrator shall not seek, use, or disclose information under this paragraph relating to an individual without the prior written consent of such individual (or of a person legally authorized to consent on behalf of such individual).''.

SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM PAYMENT PLANS.

Section 1308(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended-- (1) by striking ``With respect to'' and inserting the following: ``(1) Annual or monthly option.--Subject to paragraph (2), with respect to''; and (2) by adding at the end the following: ``(2) Monthly installment.--With respect to a policyholder that opts under paragraph (1) to pay premiums on a monthly basis, the Administrator may charge the policyholder an annual fee of not more than $15. ``(3) Exemption from rule making; pilot program.--During the period beginning on the date of enactment of this paragraph and ending on the date on which the Administrator promulgates regulations carrying out paragraph (1), the Administrator may, notwithstanding any other provision of law-- ``(A) adopt policies and procedures to carry out that paragraph without-- ``(i) undergoing notice and comment rule making under section 553 of title 5, United States Code; or ``(ii) conducting regulatory analyses otherwise required by statute, regulation, or Executive order; or ``(B) carry out that paragraph by establishing a pilot program that gradually implements the requirements of that paragraph.''.

SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE.

(a) In General.--The Administrator shall conduct a study on the feasibility and soundness of offering coverage under the National Flood Insurance Program for interruption business losses caused by a flood (referred to in this section as ``business interruption coverage''). (b) Contents.--In conducting the study under subsection (a), the Administrator shall, at a minimum-- (1) evaluate insurance industry best practices for offering business interruption coverage, including the types of coverage provided and the utilization rate; (2) estimate the potential risk premium rates for business interruption coverage based on the flood risk reflected in the flood insurance rate map or other risk metrics in effect at the time of purchase; (3) analyze the operational and administrative expenses associated with providing business interruption coverage and adjusting claims; (4) identify potential obstacles that may prevent the Administrator from offering business interruption coverage; (5) evaluate the benefits of providing business interruption coverage; (6) analyze any potential impacts on the financial position of the National Flood Insurance Program; and (7) develop a feasibility implementation plan and projected timelines for offering business interruption coverage. (c) Availability of Experts.--In conducting the study under subsection (a), the Administrator may accept and utilize the personnel and services of any other Federal agency, and appoint and fix the compensation of temporary personnel without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, or employ experts and consultants in accordance with the provisions of section 3109 of such title, without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates. (d) Deadline.--The Administrator shall complete the study required under subsection (a) not later than September 30 of the second full fiscal year after the date of enactment of this Act.

SEC. 106. COOPERATIVE COVERAGE FAIRNESS.

(a) In General.--Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the following: ``(e) Cooperatives.-- ``(1) Definition.--In this subsection, the term `cooperative building' has the meaning given the term in section 1312(d). ``(2) Equal treatment with condominiums.--Notwithstanding any other provision of law, an owner of a share of a cooperative building shall be eligible to purchase flood insurance coverage under the national flood insurance program on the same terms as a condominium owner.''. (b) Payment of Claims.--Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended-- (1) in subsection (c)-- (A) in the subsection heading, by inserting ``and Cooperative'' after ``Condominium''; (B) by inserting ``, or owners of a share of a cooperative building,'' after ``condominium owners''; and (C) by inserting ``or cooperative association'' after ``condominium association'' each place that term appears; and (2) by adding at the end the following: ``(k) Definitions.--In this section, the terms `cooperative association' and `cooperative building' have the meanings given the terms by the Administrator.''.

SEC. 107. COVERAGE LIMITS.

(a) In General.--Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended-- (1) in subsection (b)-- (A) in the matter preceding paragraph (1), by striking ``In addition to any other terms and conditions under subsection (a), such regulations'' and inserting ``The Administrator''; (B) in paragraph (2)-- (i) by striking ``shall be made'' and inserting ``may be made''; and (ii) by striking ``$250,000'' and inserting ``the baseline amount''; (C) in paragraph (3)-- (i) by striking ``shall be made'' and inserting ``may be made''; and (ii) by striking ``$100,000'' and inserting ``50 percent of the baseline amount''; and (D) in paragraph (4)-- (i) by striking ``shall be made'' each place that term appears and inserting ``may be made''; and (ii) by striking ``$500,000'' each place that term appears and inserting ``200 percent of the baseline amount''; and (2) by adding at the end the following: ``(f) Definition.--Subject to paragraph (2), in this section, the term `baseline amount' means an amount determined by the Administrator that is equal to the maximum original principal obligation of a conventional mortgage secured by a single-family residence that may be purchased by the Federal National Mortgage Association, as established under the seventh sentence of section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), which the Administrator may not-- ``(1) increase more than once every 5 years; ``(2) increase with respect to any particular property pursuant to the 11th or 12th sentence of such section 302(b)(2); or ``(3) decrease.''. (b) Authority of Administrator To Sell Policies.--The Administrator may sell a policy for flood insurance under the National Flood Insurance Program that meets the requirements of paragraphs (2), (3), and (4) of section 1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), as amended by subsection (a), without regard to-- (1) section 61.6 of title 44, Code of Federal Regulations, as in effect on the day before the date of enactment of this Act; or (2) any other provision of law.

SEC. 108. STUDY ON PARTICIPATION RATES.

(a) Definitions.--In this section-- (1) the term ``500-year floodplain'' has the meaning given the term in section 100202(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (40 U.S.C. 4004(a)); (2) the terms ``Federal agency lender'', ``improved real estate'', and ``regulated lending institution'' have the meanings given those terms in section 3(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and (3) the term ``property with a Federally backed mortgage'' means improved real estate or a mobile home securing a loan that was-- (A) made by a regulated lending institution or Federal agency lender; or (B) purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (b) Study.--The Comptroller General of the United States shall conduct a study that proposes to address, through programmatic and regulatory changes, how to increase the rate at which properties in the United States are covered by flood insurance. (c) Considerations.--In conducting the study required under subsection (b), the Comptroller General of the United States shall-- (1) consider-- (A) expanding participation in the National Flood Insurance Program beyond areas having special flood hazards to areas of moderate or minimum risk with respect to flooding; (B) automatically enrolling consumers in the National Flood Insurance Program and providing those consumers with the opportunity to decline such enrollment; and (C) bundling flood insurance coverage that diversifies risk across all or multiple forms of peril; (2) determine-- (A) the percentage of properties with Federally backed mortgages located in an area having special flood hazards that are covered by flood insurance that satisfies the requirement under section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)); and (B) the percentage of properties with Federally backed mortgages located in the 500-year floodplain that are covered by flood insurance that would satisfy the requirement described in subparagraph (A) if that requirement applied to such properties; and (3) conduct a comprehensive assessment of the economic and social impacts of implementing Risk Rating 2.0 (or any substantially similar methodology) during the 20-year period beginning in the year in which the assessment is made, which shall include an evaluation of the effect that such implementation will have, during that 20-year period, on-- (A) the affordability and availability of flood insurance under the National Flood Insurance Program; (B) property values; (C) the amount of Federal disaster aid for properties that are not covered by flood insurance, whether under the National Flood Insurance Program or otherwise; and (D) non-Federal Government revenues. (d) Report.--Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report regarding the results of the study conducted under subsection (b).

SEC. 109. NATIONAL FLOOD INSURANCE ACT DEFINITIONS REGARDING THE WRITE YOUR OWN PROGRAM.

Section 1370(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) is amended-- (1) in paragraph (14), by striking ``and'' at the end; (2) in paragraph (15), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: ``(16) the term `Write Your Own Program' means the program under which the Federal Emergency Management Agency enters into a standard arrangement with private property insurance companies to-- ``(A) sell contracts for Federal flood insurance under their own business lines of insurance; and ``(B) adjust and pay claims arising under the contracts described in subparagraph (A); and ``(17) the term `Write Your Own Company' means a private property insurance company that participates in the Write Your Own Program.''.

TITLE II--MITIGATION AND MAPPING

SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES.

(a) In General.--Section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by adding at the end the following: ``(n) Flood Mitigation Activities.--The President shall set aside from the Disaster Relief Fund an amount equal to 10 percent of the average amount appropriated to the Fund during the preceding 10 fiscal years to provide assistance for mitigation activities under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) for-- ``(1) severe repetitive loss structures; and ``(2) properties insured under the national flood insurance program with the largest increase in the actuarial risk for the property compared to the actuarial risk for the previous fiscal year as a result of Risk Rating 2.0, as in effect on October 1, 2021.''. (b) Applicability.--The amendment made to section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) by subsection (a) shall apply to funds appropriated on or after the date of enactment of this Act. (c) Technical and Conforming Amendment.--Effective on October 5, 2025, section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating subsection (n), as added by subsection (a) of this section, as subsection (m).

SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE.

Section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended-- (1) in paragraph (4), by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly; (2) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and adjusting the margins accordingly; (3) in subparagraph (C), as so redesignated, by striking the period at the end and inserting a semicolon; (4) by redesignating paragraph (4) as subparagraph (F), and adjusting the margins accordingly; (5) by inserting after subparagraph (C), as so redesignated, the following: ``(D) properties identified by the Administrator as priorities for mitigation activities before the occurrence of damage to or loss of property which is covered by flood insurance; ``(E) properties outside an area having special flood hazards if the communities in which the properties are located have, under section 1361, established land use and control measures for the areas in which the properties are located; and''; (6) by inserting before ``The national flood insurance program'' the following: ``(1) In general.--''; (7) in the flush text following subparagraph (F)(iv), as so redesignated, by striking ``The Administrator'' and inserting the following: ``(2) Premium.--The Administrator''; and (8) by adding at the end the following: ``(3) Amount of Coverage.--Each policy for flood insurance coverage made available under this title shall provide coverage under this subsection having an aggregate liability for any single property of $120,000. ``(4) Eligible Mitigation Activities.-- ``(A) In general.--Eligible mitigation methods the cost of which is covered by coverage provided under this subsection shall include-- ``(i) alternative methods of mitigation identified in the guidelines issued pursuant to section 1361(d); ``(ii) pre-disaster mitigation projects for eligible structures; and ``(iii) costs associated with the purchase, clearing, and stabilization of property that is part of an acquisition or relocation project that complies with subparagraph (B). ``(B) Acquisition and relocation project eligibility and requirements.-- ``(i) In general.--An acquisition or relocation project shall be eligible to receive assistance pursuant to subparagraph (A)(iii) only if-- ``(I) any property acquired, accepted, or from which a structure will be removed shall be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or wetland and natural floodplain management practices; and ``(II) any new structure erected on such property will be-- ``(aa) a public facility that is open on all sides and functionally related to a designated open space; ``(bb) a restroom; or ``(cc) a structure that the Administrator approves in writing before the commencement of the construction of the structure. ``(ii) Further assistance.--If an acquisition or relocation project is assisted pursuant to subparagraph (A)(iii)-- ``(I) no person may apply to a Federal entity for disaster assistance with regard to any property acquired, accepted, or from which a structure was removed as part of such acquisition or relocation project; and ``(II) no Federal entity may provide disaster assistance for such property. ``(iii) Requirement to maintain flood insurance coverage.-- ``(I) In general.--Notwithstanding any other provision of law, any assisted structure shall, at all times, maintain insurance against flood damage, in accordance with Federal law, for the life of such structure. ``(II) Transfer of property.-- ``(aa) Duty to notify.--If any part of a property on which an assisted structure is located is transferred, the transferor shall, not later than the date on which such transfer occurs, notify the transferee in writing, including in all documents evidencing the transfer of ownership of the property, that such transferee is required to-- ``(AA) obtain flood insurance in accordance with applicable Federal law with respect to such assisted structure, if such structure is not so insured on the date on which the structure is transferred; and ``(BB) maintain flood insurance in accordance with applicable Federal law with respect to such structure. ``(bb) Failure to notify.--If a transferor fails to make a notification in accordance with item (aa) and such assisted structure is damaged by a flood disaster, the transferor shall pay the Federal Government an amount equal to the amount of any disaster relief provided by the Federal Government with respect to such assisted structure. ``(III) Assisted structure defined.--For the purposes of this clause, the term `assisted structure' means a structure on property that is part of an acquisition or relocation project assisted pursuant to subparagraph (A) that was, as part of such acquisition or relocation project-- ``(aa) altered; ``(bb) improved; ``(cc) replaced; ``(dd) repaired; or ``(ee) restored. ``(C) Eligible structure defined.--For purposes of this paragraph, the term `eligible structure' means any structure that-- ``(i) was constructed in compliance with the Flood Insurance Rate Map and local building and zoning codes in effect on the date of construction of the structure; and ``(ii) has not previously been altered, improved, replaced, or repaired using assistance provided under this subsection. ``(5) Treatment of Coverage Limits.--Any amount of coverage provided for a property pursuant to this subsection shall not be considered or counted for purposes of any limitation on coverage applicable to such property under section 1306(b) and any claim on such coverage shall not be considered a claim for purposes of section 1307(h) or subsection (a)(3) or (h)(3) of section 1366. ``(6) Implementation.--Notwithstanding any other provision of law, the Administrator may implement this subsection by adopting 1 or more standard endorsements to the Standard Flood Insurance Policy by publication of such standards in the Federal Register, or by comparable means.''.

SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS.

(a) Flood Mitigation Assistance Grant Program Priority.--Section 1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended-- (1) in subsection (a)-- (A) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly; (B) in the second sentence of the matter preceding subparagraph (A), as so redesignated, by striking ``assistance shall be'' and inserting the following: ``assistance shall-- ``(1) be''; (C) in paragraph (1)(C), as so redesignated, by striking the period at the end and inserting ``; and''; and (D) by adding at the end the following: ``(2) in addition to the requirement under paragraph (1)(C), give priority to properties-- ``(A) that are repetitive loss structures; ``(B) with respect to which the Administrator makes a determination that the premium rates with respect to a policy for flood insurance coverage under this title-- ``(i) are unaffordable; or ``(ii) will soon become unaffordable as a result of a risk adjustment under Risk Rating 2.0, as in effect on the date of that determination; and ``(C) for which aggregate losses exceed the replacement value of the properties.''; and (2) in subsection (h), by adding at the end the following: ``(4) Unaffordable.--The term `unaffordable' means, with respect to the premium rates for a policy for flood insurance coverage under this title, that, in a year, those rates are in such an amount that the housing expenses (as defined in section 1308B(a)) of the household that is the subject of the policy are, for that year, more than 30 percent of the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986).''. (b) Additional Mitigation Assistance.-- (1) Appropriations from general fund of treasury.--For each of the first 5 full fiscal years after the date of enactment of this Act, there is authorized to be appropriated $1,000,000,000 to the National Flood Mitigation Fund to provide mitigation assistance under this subsection. (2) Rule of construction.--The authorization of appropriations under subparagraph (A) shall not be construed to authorize the transfer or crediting to the National Flood Mitigation Fund of any amounts from the National Flood Insurance Fund.

SEC. 204. URBAN MITIGATION OPPORTUNITIES.

(a) Mitigation Strategies.--Section 1361(d)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended-- (1) in subparagraph (A), by striking ``and'' at the end; (2) in subparagraph (B), by striking ``and'' at the end; and (3) by inserting after subparagraph (B) the following: ``(C) with respect to buildings in dense urban environments, methods that can be deployed on a block or neighborhood scale; and ``(D) elevation of mechanical systems; and''. (b) Mitigation Credit.--Section 1308(k) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended-- (1) by striking ``shall take into account'' and inserting ``shall-- ``(1) take into account''; (2) in paragraph (1), as so designated, by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(2) offer a reduction of the risk premium rate charged to a policyholder in an amount that is not less than 10 percent of that rate if the policyholder implements any mitigation method described in paragraph (1).''.

SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDINATOR.

Section 1315(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended by adding at the end the following: ``(5) Regional coordinator.-- ``(A) In general.--The Administrator shall appoint a regional coordinator in each region served by a Regional Office (as defined in section 501 of the Homeland Security Act of 2002 (6 U.S.C. 311)) to provide technical assistance to small communities to enable those communities to effectively participate in and benefit from the community rating system program. ``(B) Authorization of appropriations.--There are authorized to be appropriated such sums as may be necessary to carry out this paragraph, which shall remain available until expended.''.

SEC. 206. MITIGATION LOAN PROGRAM.

(a) Definition.--In this section, the term ``mitigation measure'' means, with respect to a structure, a measure undertaken to reduce the risk of flood damage to the structure. (b) Establishment.--The Administrator may establish a pilot program through which the Administrator may provide low-interest loans to policyholders under the National Flood Insurance Program for the purposes described in subsection (c). (c) Purposes of Loans.--A loan provided to a policyholder under the pilot program established under subsection (b) shall be used to undertake mitigation measures with respect to the insured property that cost less than the cost of the estimated amount of premiums that would be paid with respect to the property during the 50-year period beginning in the year in which the loan is made and if those mitigation measures were not undertaken. (d) Sale of Property.--If a property with respect to which a loan has been made under this section is sold, upon that sale, the outstanding loan balance shall-- (1) be repaid using the proceeds of the sale; or (2) carry over to the purchaser of the property if the purchaser so consents before the execution of the sale.

SEC. 207. REVOLVING LOAN FUNDS.

(a) In General.--Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by adding at the end the following:

``SEC. 1326. STATE OR TRIBAL GOVERNMENT REVOLVING LOAN FUNDS FOR FLOOD MITIGATION.

``(a) Definitions.--In this section: ``(1) Community rating system.--The term `Community Rating System' means the community rating system program carried out under section 1315(b). ``(2) Intended use plan.--The term `intended use plan' means a plan prepared under subsection (d)(1). ``(3) Low-income geographic area.--The term `low-income geographic area' means an area described in paragraph (1) or (2) of section 301(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3161(a)). ``(4) Low-income homeowner.--The term `low-income homeowner' means the owner of a primary residence, the household income of which in a taxable year is not more than 80 percent of the median income for the area in which the residence is located. ``(5) Participating entity.--The term `participating entity' means a State or Tribal government that-- ``(A) has entered into an agreement under subsection (b)(1); and ``(B) agrees to comply with the requirements of this section. ``(6) Pre-FIRM building.--The term `pre-FIRM building' means a building for which construction or substantial improvement occurred before the later of-- ``(A) December 31, 1974; or ``(B) the effective date of the rate map published by the Administrator under section 1360 for the area in which the building is located. ``(7) State or tribal government loan fund.--The term `State or Tribal government loan fund' means a flood mitigation assistance revolving loan fund established by a State or Tribal government under this section. ``(8) Tribal government.--The term `Tribal government' means the recognized government of an Indian tribe, or the governing body of an Alaska Native regional or village corporation, that has been determined eligible to receive services from the Bureau of Indian Affairs. ``(b) General Authority.-- ``(1) In general.--The Administrator may enter into an agreement with a State or Tribal government to provide a capitalization grant for the State or Tribal government to establish a revolving fund that will provide funding assistance to help homeowners, businesses, nonprofit organizations, and communities reduce flood risk in order to decrease-- ``(A) the loss of life and property; ``(B) the cost of flood insurance; and ``(C) Federal disaster payments. ``(2) Timing of deposit and agreements for distribution of funds.-- ``(A) In general.--Not later than the last day of the fiscal year following the fiscal year in which a capitalization grant is made to a participating entity under paragraph (1), the participating entity shall-- ``(i) deposit the grant in the State or Tribal government loan fund of the participating entity; and ``(ii) enter into 1 or more binding agreements that provide for the participating entity to distribute the grant funds for purposes authorized under subsection (c) such that-- ``(I) in the case of the initial grant made to a participating entity under this section, not less than 75 percent of the amount of the grant shall be distributed before the end of the 2-year period beginning on the date on which the funds are deposited in the State or Tribal government loan fund of the participating entity; and ``(II) in the case of any subsequent grant made to a participating entity under this section, not less than 90 percent of the amount of the grant shall be distributed before the end of the 1- year period beginning on the date on which the funds are deposited in the State or Tribal government loan fund of the participating entity. ``(B) Noncompliance.--Except as provided in subparagraph (C), if a participating entity does not comply with subparagraph (A) with respect to a grant, the Administrator shall reallocate the grant in accordance with paragraph (3)(B). ``(C) Exception.--The Administrator may not reallocate any funds under subparagraph (B) to a participating entity that violated subparagraph (A) with respect to a grant made during the same fiscal year in which the funds to be reallocated were originally made available. ``(3) Allocation.-- ``(A) In general.--The Administrator shall allocate amounts made available to carry out this section to participating entities-- ``(i) for the participating entities to deposit in the State or Tribal government loan fund established by the participating entity; and ``(ii) except as provided in paragraph (6), in accordance with the requirements described in subparagraph (B). ``(B) Requirements.--The requirements described in this subparagraph are as follows: ``(i) Fifty percent of the total amount made available under subparagraph (A) shall be allocated so that each participating entity receives the percentage amount that is obtained by dividing the number of properties that were insured under the national flood insurance program in that State or Tribal government jurisdiction, as applicable, in the fiscal year preceding the fiscal year in which the amount is allocated by the total number of properties that were insured under the national flood insurance program in the fiscal year preceding the fiscal year in which the amount is allocated. ``(ii) Fifty percent of the total amount made available under subparagraph (A) shall be allocated so that each participating entity receives a percentage of funds that is equal to the product obtained under clause (iii)(IV) with respect to that participating entity after following the procedures described in clause (iii). ``(iii) The procedures described in this clause are as follows: ``(I) Divide the total amount collected in premiums for properties insured under the national flood insurance program in each participating entity during the previous fiscal year by the number of properties insured under the national flood insurance program in that State or Tribal government jurisdiction, as applicable, for that fiscal year. ``(II) Add together each quotient obtained under subclause (I). ``(III) For each participating entity, divide the quotient obtained under subclause (I) with respect to that State or Tribal government jurisdiction, as applicable, by the sum obtained under subclause (II). ``(IV) For each participating entity, multiply the amount that is 50 percent of the total amount made available under subparagraph (A) by the quotient obtained under subclause (III). ``(iv) Except as provided in paragraph (5), in a fiscal year-- ``(I) a participating entity may not receive more than 15 percent of the total amount that is made available under subparagraph (A) in that fiscal year; and ``(II) if a participating entity, based on the requirements under clauses (i) through (iii), would, but for the limitation under subclause (I) of this clause, receive an amount that is greater than the amount that the State or Tribal government jurisdiction, as applicable, is authorized to receive under that subclause, the difference between the authorized amount and the amount otherwise due to the State or Tribal government jurisdiction, as applicable, under clauses (i) through (iii) shall be allocated to other participating entities-- ``(aa) that, in that fiscal year, have not received an amount under subparagraph (A) that is more than the authorized amount under subclause (I) of this clause; and ``(bb) by using the requirements under clauses (i) through (iii), except that a participating entity may receive an allocation under this subclause only if the allocation does not result in the State or Tribal government jurisdiction, as applicable, receiving a total amount for the fiscal year under subparagraph (A) that is greater than the authorized amount under subclause (I). ``(4) No revolving fund required.-- ``(A) In general.--Notwithstanding any other provision of this section, and subject to subparagraph (B), a participating entity that receives less than $4,000,000 under paragraph (3)(B) in a fiscal year may distribute the funds directly in the form of grants or technical assistance for a purpose described in subsection (c)(2), without regard to whether the participating entity has established a State or Tribal government loan fund. ``(B) Matching.--A participating entity that exercises the authority under subparagraph (A) in a fiscal year shall provide matching funds from non- Federal sources in an amount that is equal to 25 percent of the amount that the participating entity receives under paragraph (3)(B) in that fiscal year for purposes described in subparagraph (A). ``(5) Allocation of remaining funds.--After allocating amounts made available to carry out this section for a fiscal year in accordance with paragraph (3), the Administrator shall allocate any remaining amounts made available for that fiscal year to participating entities, using the procedures described in clauses (i) through (iii) of paragraph (3)(B). ``(6) Reservation of funds.--The Administrator shall reserve not more than 1.5 percent of the amount made available to carry out this section in a fiscal year-- ``(A) for administrative costs incurred by the Federal Emergency Management Agency in carrying out this section; ``(B) to provide technical assistance to recipients of grants under this section; and ``(C) to enter into grant agreements with insular areas, with the grant funds to be distributed-- ``(i) according to criteria established by the Administrator; and ``(ii) for a purpose described in subsection (c)(2). ``(c) Use of Funds.-- ``(1) In general.--Amounts deposited in a State or Tribal government loan fund, including repayments of loans made from the fund and interest earned on the amounts in the fund, shall be used-- ``(A) consistent with paragraph (2) and subsection (g), to provide financial assistance for-- ``(i) homeowners, businesses, and nonprofit organizations that are eligible to participate in the national flood insurance program; and ``(ii) any local government that participates in the national flood insurance program; ``(B) as a source of revenue and security for leveraged loans, the proceeds of which shall be deposited in the State or Tribal government loan fund; or ``(C) for the sale of bonds as security for payment of the principal and interest on revenue or general obligation bonds issued by the participating entity to provide matching funds under subsection (f), if the proceeds from the sale of the bonds are deposited in the State or Tribal government loan fund. ``(2) Purposes.--A recipient of financial assistance provided through amounts from a State or Tribal government loan fund-- ``(A) shall use the amounts to reduce-- ``(i) flood risk; or ``(ii) potential claims for losses covered under the national flood insurance program; ``(B) shall use the amounts in a cost-effective manner under requirements established by the participating entity, which may require an applicant for financial assistance to submit any information that the participating entity considers relevant or necessary before the date on which the applicant receives the assistance; ``(C) shall use the amounts for projects that-- ``(i) meet design and construction standards established by the Administrator; ``(ii) are located in communities that-- ``(I) participate in the national flood insurance program; and ``(II) have developed a community flood risk mitigation plan that has been approved

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