Louisiana House members from both parties, along with a Mississippi Republican, have introduced legislation to extend the National Flood Insurance Program, which is set to expire on September 30. This program provides insurance for damage caused by rising waters, a requirement for many property owners to secure mortgage loans. Senators Bill Cassidy and John N. Kennedy also filed a similar bill in the Senate.
The NFIP extension would provide relief for property owners who rely on flood insurance, with about 400,000 policies held by Louisiana residents. Congressional extensions have been necessary in the past to keep the program operational, as Congress has come close to government funding shutdowns that would halt insurance policies.
Homeland Security Secretary Kristi Noem has proposed restructuring FEMA’s operations, which could impact funding for programs like NFIP. The proposed bill seeks to extend NFIP through 2026 without additional legislative action, providing stability for communities impacted by severe weather events.
Louisiana leaders have expressed support for the bill, recognizing the importance of flood insurance in a state prone to extreme weather. The reauthorization would also allow time for discussions about comprehensive NFIP reform, such as affordability benefits, risk assessment methodologies, and flood mitigation incentives. The new Risk Rating 2.0 premium system aims to align policy costs with flood risks, potentially impacting policyholders in high-risk areas like those along the Gulf Coast. Rep. Julia Letlow emphasized the necessity of renewing NFIP to support those who rely on it during frequent storms and flooding events in Louisiana.
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