Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released this statement following the Congressional Budget Office’s recently released report examining the level of flood risk across the country and the prevalence of flood insurance policies purchased through the National Flood Insurance Program. Last month, Congresswoman Waters sent a letter to CBO requesting this report to get a better understanding of the risk that communities face as flood-related disasters worsen.
“I am pleased that the Congressional Budget Office has released its report in response to my request for their analysis of how coverage under the National Flood Insurance Program (NFIP) varies among communities with different economic and demographic characteristics across the United States. As we are seeing, climate change is fueling more intense flooding, leaving more families and communities at greater risk of destruction to their homes with substantial financial loss across the country. In fact, these flood-related disasters have resulted in an estimated $850 billion in damages nationwide since 2000.
“Unfortunately, this report makes clear that low-income communities – who are at greater risk of flooding – and communities with a larger share of renters are less likely to have flood insurance policies through the NFIP. Meanwhile, predominately higher-income communities and communities with primarily second homes are more likely to purchase NFIP coverage and are more likely to receive greater discounts on such coverage. Based on the CBO’s analysis, compared to communities primarily composed of primary residences, second-home communities were approximately two times more likely to be at risk of flooding and properties in these communities were twice as likely to have NFIP coverage. This means that our nation’s taxpayers are taking on double the risk for vacation home communities.
“CBO also found that the majority of the properties facing flood risk are located outside of the NFIP’s special flood hazard areas (SFHA) yet, are less likely to have flood insurance coverage because they are not required to. This is why my bill, the ‘Housing Crisis Response Act,’ includes a provision to cancel NFIP debt and redirect interest payments to modernize and improve flood mapping to better account for risks and ensure that all communities are covered.
“CBO’s report clearly shows the extent to which certain vulnerable communities are left behind, and bolsters our efforts to reform and reauthorize the NFIP.”
Background:
In June 2024, Ranking Member Waters sent a letter to the Congressional Budget Office requesting that the office prepare a report on how NFIP uptake and coverage varies among the share of U.S. properties at risk of flooding and across communities with different economic and demographic characteristics.
In November 2023, Ranking Member Waters released a statement following the release of a new report by the Congressional Budget Office entitled, “Flood Damage and Federally Backed Mortgages in a Changing Climate.”
In June 2019, then Chair Waters introduced H.R. 3167, the National Flood Insurance Program Reauthorization Act of 2019, legislation to provide a long-term reauthorization to the National Flood Insurance Program and ensure homeowners, businesses, renters, and communities are given the certainty they deserve.
In September 2018, Ranking Member Waters joined the 2018 Bipartisan Farm Bill Conference Committee and urged her colleagues to protect Section 12609 of the 2018 Farm Bill, which would extend the National Flood Insurance Program (NFIP) through January 31, 2019.
In May 2019, then Chair Waters and Ranking Member McHenry introduced legislation (H.R. 2578) to extend the National Flood Insurance Program’s authorization to September 30, 2019.
In July 2018, Ranking Member Waters and 61 Members sent a letter to House and Senate leadership demanding long-term reauthorization of the National Flood Insurance Program.
In March 2018, she co-led a letter with Rep. Charlie Crist (D-FL) calling for the forgiveness of the NFIP’s debt during the federal appropriations process for fiscal year 2019.
Ranking Member Waters is also a 2018 National Preparedness Month Congressional Co-Chair, where she has worked to raise awareness of the importance of flood insurance for homeowners and other forms of emergency and disaster preparedness.
In her September 2017 op-ed, Ranking Member Waters pushed for bipartisan cooperation to renew the NFIP for the long-term and highlighted the need for a federal flood insurance program that ensures affordable flood insurance remains available to homeowners, businesses, and renters.
In 2016, Ranking Member Waters sent a letter to the FEMA Administrator urging him to provide Congress with a robust affordability framework in a timely manner so that proposals could be considered ahead of the 2017 reauthorization of the NFIP.
FEMA did not provide the requested affordability framework until this year.
In 2016, Ranking Member Waters also introduced H.R.5953, the National Flood Insurance Program Debt Forgiveness Act, a bill to forgive the $23 billion in debt at the NFIP and place the program on a path toward solvency and affordability ahead of its reauthorization deadline. She reintroduced the bill in 2017.
In 2014, Ranking Member Waters requested a GAO report on flood insurance affordability after FEMA failed to complete a congressionally-mandated affordability study.
In 2012, she worked across the aisle on the National Flood Insurance Program (NFIP) to coauthor the Biggert-Waters Act with former Representative Judy Biggert (R-IL). When FEMA’s botched implementation of the premium increases called for in that law led to unintended consequences, lawmakers from across the aisle joined her once again in 2014 to pass H.R. 3370, the Homeowner Flood Insurance Affordability Act (HFIAA). HFIAA not only provided homeowners with flood insurance rate relief but also struck an important balance between addressing affordability concerns, bringing accountability to FEMA, and protecting the financial stability of the NFIP.
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