U.S. Senators Bill Cassidy and Cory Booker have introduced the Flood Insurance Affordability Tax Credit Act, aiming to assist low- and middle-income households enrolled in the National Flood Insurance Program (NFIP). The proposed legislation seeks to offer a 33 percent refundable tax credit to counteract rising flood insurance premiums attributed to FEMA's Risk Rating 2.0 program.
"The National Flood Insurance Program’s outlandish premiums are crippling Americans’ ability to protect their families and homes," stated Dr. Cassidy. He emphasized that while efforts are ongoing to address systemic issues, this tax credit would provide immediate relief for current policyholders and encourage others to re-enroll.
Senator Booker highlighted the impact on families across the nation, particularly in New Jersey. "Flood insurance is becoming less and less affordable for families across our country," he said. He described the legislation as a crucial step towards expanding access, reducing costs, and safeguarding New Jersey families from extreme weather events.
The act also proposes that the Treasury Secretary establish a program allowing premiums to be paid in advance on behalf of taxpayers when due, offering timely support for affected families.
In recent months, Senator Cassidy has been actively involved in addressing NFIP challenges. He released a report detailing issues leading to premium increases and participated in Senate hearings advocating for legislative action. Additionally, he engaged with community leaders through roundtables and discussions in Louisiana about flood insurance concerns.
Cassidy has consistently urged Congress to reauthorize and reform NFIP, emphasizing its importance just before its authorization lapsed at the end of September.
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