WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) delivered a speech on the U.S. Senate floor highlighting the need to end the Biden-era Risk Rating 2.0 policy and for the National Flood Insurance Program (NFIP) to remain affordable.
“We have a chance to bring down prices on flood insurance in the same way President Trump has brought down all these other prices—gas, eggs, milk, you name it,” said Dr. Cassidy.
“As hurricane season ramps up, the clock is ticking. Let’s act now,” concluded Dr. Cassidy.
Background
In June, Cassidy led the charge in demanding the U.S. Federal Emergency Management Agency (FEMA) finally end the Biden-era policy, Risk Rating 2.0, which caused flood insurance premiums to skyrocket.
In May, Cassidy delivered another speech discussing the danger that Risk Rating 2.0 poses to low- and middle-income families’ ability to be enrolled in the program.
In April, Cassidy delivered a speech on the Senate floor calling for the continuation of FEMA’s Building Resilient Infrastructure and Communities (BRIC) grant program, which helps fund pre-disaster mitigation and flood prevention projects in Louisiana and nationwide.
In March, Cassidy delivered a floor speech calling for a long-term extension of NFIP and introduced legislation to extend the program through December 31, 2026. Cassidy also met with the Jefferson Business Council where he discussed his efforts to keep flood insurance affordable and extend NFIP long-term.
In February, Cassidy introduced the Flood Insurance Affordability Tax Credit Act to give low- and middle-income households enrolled in NFIP a 33% refundable tax credit to combat rising flood insurance premiums. Cassidy also released a report last fall outlining the current state of NFIP and the issues that have led to skyrocketing premiums for millions of homeowners.
Last year, the U.S. Senate Banking Committee held a hearing on NFIP at the request of Cassidy. The hearing highlighted the urgent need for Congress to act and featured a Louisiana witness. Cassidy also participated in a roundtable hosted by GNO, Inc. and the Coalition for Sustainable Flood Insurance to hear from community leaders and advocates on the issue.
Cassidy traveled St. Bernard Parish in 2023 to talk with residents about their flood insurance premiums, recording the second episode of his Bill on the Hill series.
Cassidy’s remarks as prepared for delivery are below:
Mr. President,
In every single state, there are Americans who rely on the National Flood Insurance Program to protect their home.
Congress has a responsibility to serve ALL Americans, regardless of age, income, or zip code.
Since Biden’s implementation of Risk Rating 2.0, seniors and low- and middle-income homeowners have been left behind.
Earlier this month, I led eight of my Republican colleagues in urging FEMA to end the Biden-era Risk Rating 2.0.
I want to work with him to fix the mess the Biden administration left us in.
Now, I want to share with my colleagues the same case we made in that letter for why we need to act now.
Every year on June 1st, the phrase “Hoping for the best, preparing for the worst” comes to mind.
For the people in my state, it becomes a way of life.
Another hurricane season is upon us.
With a higher Gulf temperature than usual, meteorologists predict 13 to 19 named storms, 6 to 10 hurricanes, and 3 to 5 major hurricanes hitting the U.S. before the year’s end.
Before long, Louisianans will, yet again, be stocking up on non-perishable food items and prescriptions, boarding up the windows, and checking on their neighbors.
They will also be bracing themselves financially.
Louisianans are still trying to get back on their feet after four years of financial distress under the Biden administration.
Now, add the costs for recovery from severe weather damage. Many families just can’t afford it.
That’s why we have NFIP—a program which has provided a safety net for millions in Louisiana and across the country for the last 50 years.
Because of NFIP, the retired couple in Livingston Parish who just paid off their mortgage sleeps better at night knowing they are covered the next time they flood.
The single working mother in Cameron Parish can rest assured knowing there is help available when it comes time to replace the siding and roof tiles, which have been torn loose by torrential winds.
But this program—and the peace of mind of those who rely on it—is being threatened.
Since FEMA, under the Biden Administration, implemented Risk Rating 2.0, premiums have skyrocketed—making desperately needed protection unaffordable for millions. Over 80% of NFIP policyholders in Louisiana saw a spike in their premiums after its implementation in 2021.
The protection that millions so desperately need has become unaffordable.
When I say unaffordable, I’m not talking about a one or two-hundred-dollar increase.
Even that would be too much for a lot of families.
I’m talking about a $1,916 increase for a homeowner in Waggaman, Louisiana.
I’m talking about a $4,500 increase for a homeowner in Gibson, Louisiana.
I’m talking about an $8,256 increase for a homeowner in Belle Chasse, Louisiana.
And there is no end in sight for these 300, 400, 500…one THOUSAND percent increases.
Has FEMA been transparent about these stunning spikes?
No.
In fact, never knowing why their premiums rose in the first place, Americans have no option but to drop their NFIP coverage altogether, leaving them totally vulnerable.
Has Congress been given the opportunity to provide meaningful comment in response?
No, we were stonewalled for years under President Biden. Now with President Trump in charge, I trust there will be more transparency into Risk Rating 2.0 than we’ve ever seen before.
The American people—and certainly Louisianans—made it clear when they elected President Trump that they are ready to end the confusion and high prices of the previous administration.
They were talking about the grocery store, at the gas pump, and yes, about insurance.
NFIP was at the heart of the cost-of-living crisis Americans struggled through under President Biden.
We have a chance to bring down prices on flood insurance in the same way President Trump has brought down all these other prices—gas, eggs, milk, you name it.
I want to work with President Trump and my colleagues to make life affordable again!
As hurricane season ramps up, the clock is ticking. Let’s act now!
With that, I yield.
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