Cassidy Calls on Congress to Take Action to Address the Flood Insurance Crisis

U.S. Senator Bill Cassidy, M.D. (R-LA) today delivered a speech on the Senate floor calling on Congress to take action to address the National Flood Insurance Program (NFIP).

“Risk Rating 2.0 affects Louisiana, the Gulf Coast, and frankly all coasts, or any place where there is a river or a stream that can overflow. It particularly affects people who are lower income. Sixty-two percent of all NFIP policies are in parishes and counties where the median household income is below the national average of about $54,000,” said Dr. Cassidy.

“Forty-four of 50 states have had over $50 million of NFIP claims from 1978 to 2021. There are only six states that have had less than $50 million in claims. 13 states have had over $1 billion in damage—and they’re all over the map! Virginia, Missouri—hardly a coastal state—North Carolina, South Carolina, New York, New Jersey, Florida, Alabama, Mississippi, Pennsylvania, Texas, California, and Louisiana. Those are the states that have been hit the hardest but not the only ones getting hit. Every single state has had an NFIP claim because every state is affected by flooding. This is a national issue, not just a coastal issue—not just a Louisiana issue,” added Dr. Cassidy.

“There’s a consensus that no family in America should be forced to move because of unaffordable flood insurance premiums. And that flood insurance should remain affordable, accessible, and accountable to the taxpayer, and sustainable for the future,” concluded Dr. Cassidy. “My challenge to my colleagues is to designate someone on your staff to understand this issue and help move forward legislation that will reform this program. As we were committed to many other issues, there should be a commitment to this issue. Because there are Americans in every single state who are affected by this.”

Background

In January, the U.S. Senate Banking Committee held a hearing on NFIP at the request of Cassidy. The hearing highlighted the urgent need for Congress to act and featured a Louisiana witness.

Last year, Cassidy reintroduced his National Flood Insurance Program Reauthorization Act to reauthorize the program for five years, providing greater stability for homeowners, small business owners, and the real estate market as the nation continues to struggle with inflationary pressures. The bill would also implement a series of sweeping reforms to reduce costs, make generational investments in communities to reduce flood risk, and establish a fairer claims process for policyholders. He participated in a roundtable hosted by GNO, Inc. and the Coalition for Sustainable Flood Insurance before introducing the bill to hear from community leaders and advocates on the issue.

Cassidy also traveled St. Bernard Parish last August to talk with residents about their flood insurance premiums, resulting in the second episode of his series Bill on the Hill.

Last February, Cassidy delivered a speech on the U.S. Senate floor demanding the Biden administration halt massive hikes to National Flood Insurance Program premiums caused by Risk Rating 2.0. He continues to call out President Biden – who can stop the implementation of Risk Rating 2.0 with the stroke of his pen.

The NFIP-RE Act of 2023 has been met with an outpouring of support including New Orleans Chamber of Commerce President and CEO Sandra Lindquist, Baton Rouge Area Chamber President and CEO Adam Knapp, Home Builders Association of Greater Baton Rouge President and CEO Karen Zito, Greater New Orleans, Inc. President and CEO Michael Hecht, Restore and Retreat Executive Director and State Representative Joseph Orgeron, Lafourche Parish President Hon. Archie Chaisson, III, St. Tammany Corporation CEO Chris Masingill, Terrebonne Levee and Conservation District President Tony Alford, Northshore Home Builders Association Executive Officer Amy Ybarzabal, and National Association of Counties Executive Director Matthew Chase. Here’s what people are saying.

In February 2022, FEMA publicly acknowledged an internal study finding that the implementation of Risk Rating 2.0 to the National Flood Insurance Program (NFIP) could cause 20% of policyholders to drop out of the program due to skyrocketing premiums. Learn more here.