# 119-hr-5484: National Flood Insurance Program Reauthorization and Reform Act of 2025 119-hr-5484, National Flood Insurance Program Reauthorization and Reform Act of 2025, is a 119th Congress bill sponsored by Rep. Pallone, Frank [D-NJ-6] (D-NJ); status in_committee; PRIA reads it as touching household money (as of 2026-08-12). - Canonical: https://policyrisk.com/legislation/119-hr-5484 - As of: 2026-08-12 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-5484 - Congress: 119 - Title: National Flood Insurance Program Reauthorization and Reform Act of 2025 - Status: in_committee - Introduced: 2025-09-18 - Sponsor: Rep. Pallone, Frank [D-NJ-6] (D-NJ) - Cosponsors: 3 - Policy area: Finance and Financial Sector - Touches household money: yes - Last recorded action: 2026-08-12 ## Summary **Makes flood insurance more affordable and modernizes the National Flood Insurance Program.** It caps annual premium increases, creates a means-tested discount program, tightens claims and appeals timelines, and funds mapping and mitigation improvements. - Homeowners and renters: Yearly increases in covered costs are capped at 9% for a five-year period and policies can opt into monthly payments with a fee capped at $15. - Lower-income households: A graduated discount program targets primary 1–4 family residences for households earning up to 140% of area median income. Congress authorized funding rising from $250 million in FY2024 to $600 million in FY2028 to support the assistance. - Communities and local governments: Requires a building-level flood risk database and digital maps, authorizes $500 million per year for mapping through FY2029, and allows up to $1.0 billion per year for a National Flood Mitigation Fund for five years. *This bill authorizes several billion dollars in new spending for assistance, mapping, and mitigation that would increase federal outlays if funded.* ## Cosponsors (3) - Rep. Higgins, Clay [R-LA-3] (R-LA), 2025-09-18T00:00:00.000Z - Rep. Watson Coleman, Bonnie [D-NJ-12] (D-NJ), 2026-02-24T00:00:00.000Z - Rep. Carter, Troy A. [D-LA-2] (D-LA), 2026-08-10T00:00:00.000Z ## Provisions PRIA read - Up to $120,000 for compliance work: benefit, high. Each NFIP policy would include Increased Cost of Compliance coverage up to $120,000 per property. Eligible uses include approved mitigation, pre‑disaster projects, and certain buyout or relocation costs. Buyout/relocation aid would require the land to stay open space, limited new structures, and in… - Flood insurance extended to 2030: benefit, high. This bill would extend the National Flood Insurance Program through September 30, 2030. During a funding lapse, FEMA would be able to use existing Fund money at the last approved operations rate and charge it back later. For five years, Treasury would not charge interest on certain NFIP debts, and… - More money for flood mitigation: benefit, high. If enacted, the bill would put $1 billion each year for five full fiscal years into the National Flood Mitigation Fund for state, local, and property‑level projects. It would also require a yearly set‑aside equal to 10% of the 10‑year average Disaster Relief Fund appropriations to help severe repet… - Faster, fairer NFIP claim decisions: benefit, medium. FEMA would create an Independent Office for Policyholder Appeals within 180 days. You could appeal a denial within one year, and the office would decide within 90 days after it has what it needs. For new claims, FEMA or your insurer would decide within 60 days of your proof of loss, with one 30‑day… - Bigger savings for flood mitigation: benefit, medium. If you complete an eligible mitigation action, your NFIP risk premium would be cut by at least 10%. FEMA would publish the credit formulas within 60 days and launch a public premium estimator in 90 days that shows savings from specific actions. FEMA would count major community mitigation projects w… - Caps on premium hikes and lapses: benefit, medium. For five years, your NFIP charges could not rise by more than 9% in a year, with limited exceptions. If your policy lapses, you would have 90 days to renew at the same renewal rate. FEMA would also have to set up a fair, quick process to appeal property risk inputs used to set your premium. - Levee areas: fair rates, no mandates: benefit, medium. In areas protected by an accredited levee, FEMA would not call it a special flood hazard area or require flood insurance. For non‑accredited levees, FEMA would set rules within one year to measure protection and set rates, and create an appeals process for communities. FEMA could not raise rates wi… - More help for lower‑income homeowners: benefit, medium. The bill would define covered homes for a new means‑tested assistance program as primary 1–4 family homes and related personal property. Flood Mitigation Assistance grants would prioritize repetitive loss homes, homes with unaffordable premiums, and properties with losses above replacement value. A… - Surcharge relief for small nonprofits: benefit, medium. Small businesses and 501(c)(3) nonprofits that own three or more structures on one property could avoid the NFIP surcharge on more than two detached buildings. To qualify, the owner would need to certify the savings will be used for flood mitigation on that property. FEMA would set the certificatio… - State and Tribal mitigation loan funds: benefit, medium. FEMA could give grants to States and Tribes to start revolving loan funds for flood mitigation. Funding would be split 50% by share of insured properties and 50% by a premium‑per‑property formula, with a 15% cap per entity. Initial grants must distribute at least 75% within two years; later grants… - More options for co‑ops and condos: benefit, low. Co‑op owners would be able to buy NFIP coverage on the same terms as condo owners. FEMA would also offer an optional rider to cover basements used as separate homes in certain older (pre‑FIRM) condo buildings. FEMA would update related rules within 180 days. - Help small towns cut premiums: benefit, low. FEMA would appoint a regional coordinator in every region to help small communities join and benefit from the Community Rating System. The bill would allow spending the sums needed, which would remain available until spent. - 25% premium hikes if you refuse help: cost, high. If you refuse a full mitigation offer that covers 100% of costs and lets you stay in your home, your NFIP risk premium would rise 25% each year. The increase would continue until you accept the offer or your rate reaches an actuarially sound level. This would apply to refusals after enactment. - Appeal first before suing NFIP: mixed, medium. This bill would make you use FEMA’s appeal process before suing over an NFIP claim. You would file an appeal and wait for a final decision or 90 days after FEMA accepts it, then have one year to sue. You could not raise in court an issue you did not raise on appeal. The U.S. Attorney General would… - Higher coverage limits tied to mortgages: mixed, medium. Fixed NFIP coverage caps would be replaced with a baseline tied to the largest mortgage Fannie Mae can buy. FEMA could raise the baseline only once every five years and could not lower it. FEMA could also sell policies meeting the new limits without some older regulations. - Stronger flood risk data and disclosures: mixed, medium. After September 30, 2024, new NFIP coverage would generally require local laws that make sellers and landlords disclose flood history and risk before a buyer or renter signs. FEMA would build a property‑level risk database within five years; owners and leaseholders could access their entry. NFIP co… - Caps on insurer pay, agent minimums: mixed, medium. NFIP insurers would be limited to at most 22.46% of their total NFIP premiums as reimbursement for selling and servicing policies. Insurers would have to pay agents at least 15% of the premiums the agent sells as commission. These limits would take effect upon enactment. - Tighter rules for private NFIP partners: mixed, medium. Audits would treat underpayments and overpayments the same for penalties, with a safe harbor for non‑bad‑faith overpayments up to 4% of the policy limit. FEMA would post all reimbursements to private partners and only repay actual vendor costs, under a rule due in 90 days. FEMA could end certain ve… - Stronger NFIP pricing and reporting rules: mixed, medium. FEMA would have to compute the average historical loss year using generally accepted actuarial methods. The agency would also need to report how many affordability exceptions exist and list the county and state for each policy using an exception as of the report date. These changes could affect how… - Monthly premium payments, $15 fee: mixed, low. You could choose to pay your NFIP premium monthly. If you opt in, FEMA could charge up to $15 per year for this option. FEMA could start a pilot or interim policy before issuing final rules. - New training rules for agents, adjusters: mixed, low. Insurance agents who sell NFIP policies would need a three‑hour course every two years approved by their home‑state insurance commissioner. Agents who do not finish could not sell flood insurance until they complete it. FEMA regional offices would train local floodplain managers, agents, and adjust… ## Related bills - 119-hr-9877: Health Equity and Accountability Act of 2026 - 119-hr-1768: Lower Costs for Everyday Americans Act - 119-hr-3151: SHIPS for America Act of 2025 - 119-hr-3069: Medicare for All Act - 119-hr-2102: Major Richard Star Act - 119-hr-909: Crime Victims Fund Stabilization Act of 2025 ## Sources - [119-hr-5484 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/5484) ## Related - [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877) - [119-hr-1768: Lower Costs for Everyday Americans Act](https://policyrisk.com/legislation/119-hr-1768) - [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151) - [119-hr-3069: Medicare for All Act](https://policyrisk.com/legislation/119-hr-3069) - [119-hr-2102: Major Richard Star Act](https://policyrisk.com/legislation/119-hr-2102) - [119-hr-909: Crime Victims Fund Stabilization Act of 2025](https://policyrisk.com/legislation/119-hr-909) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-5484 (as of 2026-08-12).