Wildfire Insurance Affordability Act
Sponsored By: Senator Merkley, Jeff [D-OR]
Introduced
Summary
Federal grants and vouchers to reduce household wildfire risk and insurance costs. The bill creates a nationwide grant program to fund home hardening and vegetation management and a means-tested pilot to help pay wildfire insurance premiums.
Show full summary
- Homeowners and small multifamily/affordable housing: Grants pay for home hardening, defensible space, ignition-resistant roofing and other mitigation work for owner-occupied primary residences, multifamily properties with fewer than five units, and affordable housing. Grants to households are capped at $10,000 each.
- Low- and moderate-income households in high-risk areas: Households at or below 80% of area median income that complete required risk reduction can get state-distributed vouchers to offset wildfire insurance premiums. The pilot is time-limited and reports annually to Congress and ends after five years.
- States, Tribes, and local fire agencies: Eligible recipients include state insurance agencies, Tribes, and subgrantees like local fire departments. Grants are allocated using a three-part formula weighing population, wildfire risk, and equity, administrative costs are capped at 10%, and amounts paid under these programs are excluded from gross income under the Internal Revenue Code.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Grants to Harden Homes
If enacted, the Fire Administrator would create a Wildfire Risk Reduction Grant Program within 90 days. States, tribes, and similar agencies could get formula grants to pay for home hardening and community wildfire work. Individual household awards would be capped at $10,000. Funds would be split 25% by population, 50% by wildfire risk, and 25% for equity. Work must meet industry standards and grantees must report results; recipients could use up to 10% of a grant for admin costs.
Tax Exclusion for Mitigation
If enacted, the bill would amend IRC section 139 to exclude 'qualified catastrophe mitigation payments' from gross income. The exclusion would cover amounts paid under this bill's grants and vouchers and similar state programs overseen by a State insurance agency. Excluded payments would not increase the tax basis of property. This change would take effect on enactment and only apply to payments that meet the statute's program and oversight rules.
Vouchers to Lower Premiums
If enacted, the Fire Administrator would start a voucher pilot within 180 days to give States funds to reduce wildfire insurance premiums. To get a voucher, a household would need to live in a high-risk area as the State insurance commissioner defines it, complete required mitigation work, and have income at or below 80% of area median income. States would set voucher amounts and could use up to 10% for admin. The pilot would end five years after it starts and the Administrator would report to Congress within one year and annually thereafter.
Sponsors & CoSponsors
Sponsor
Merkley, Jeff [D-OR]
OR • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov