Sens. John Kennedy and Bill Cassidy of Louisiana, along with a group of senators from Mississippi, West Virginia, Alabama, and Texas, have called on the acting Federal Emergency Management Agency (FEMA) Administrator Karen Evans to stop further implementation of the Risk Rating 2.0 pricing system under the National Flood Insurance Program (NFIP). They also requested that FEMA provide full transparency regarding how flood insurance rates are determined.
The senators expressed concern that Risk Rating 2.0 has resulted in significant premium increases for homeowners in Louisiana and across the country. According to their statement, these increases have led many policyholders to drop their coverage, which could undermine the long-term stability of the NFIP.
“Since Risk Rating 2.0 took effect, flood insurance premiums have increased in every state, and FEMA estimates that approximately 77 percent of policyholders now pay more than they would have under the prior system. In Louisiana and other flood-prone states, premium increases of well over 100 percent have forced tens of thousands of homeowners to drop coverage altogether. These trends are not isolated—they reflect a nationwide contraction in NFIP participation driven by affordability pressures,” wrote the senators.
They continued: “This loss of participation is a structural problem for the NFIP. Flood insurance depends on a broad risk pool to function effectively. As policyholders exit the program, risk becomes more concentrated, premiums face additional upward pressure, and volatility increases.”
The lawmakers also criticized FEMA’s lack of transparency about how it sets rates under Risk Rating 2.0: “We are also concerned by FEMA’s continued lack of transparency surrounding Risk Rating 2.0. FEMA has not released the underlying data, assumptions, or modeling used to generate premium increases, nor provided a mechanism for meaningful external review.”
In their letter urging immediate action from FEMA, they stated: “Time is of the essence. Each year Risk Rating 2.0 remains in place, participation continues to erode, the insurance pool weakens, and taxpayer exposure grows. Immediate action must be taken to stop the actuarial death spiral. We urge FEMA to act promptly to correct course and ensure the NFIP fulfills its core mission of protecting homeowners, communities, and federal taxpayers alike.”
Senator Kennedy previously introduced two bills—the Flood Insurance Affordability Act and the Risk Rating 2.0 Transparency Act—in March 2023 aimed at addressing issues with Risk Rating 2.0 by capping annual premium increases and requiring greater transparency from FEMA regarding rate determinations.
Kennedy addressed this issue during a Senate Banking Committee session in January 2024 where he said that FEMA “lied to the American people and my people, and they ought to hide their heads in a bag.” In June 2025 Kennedy joined colleagues in another letter expressing similar concerns after new data showed declines in NFIP participation following implementation of Risk Rating 2.0.
Senator Kennedy represents Louisiana in the United States Senate where he leads initiatives on banking as chair of the Senate Committee on Banking, Housing and Urban Affairs, while also serving on committees dealing with appropriations, budget matters and energy resources.
He operates offices throughout Louisiana—including Alexandria, Baton Rouge, Lake Charles, Monroe, New Orleans and Shreveport—as well as one office in Washington D.C., offering services such as assistance with federal agencies and connecting with residents through newsletters and public events (official website).
