Today, US Senator Bill Cassidy, MD (R-LA) released a statement in response to the Office of Management and Budget (OMB) supplemental disaster assistance request. In an effort to allow the National Flood Insurance Program (NFIP) to meet current and anticipated claims obligations, the request asks Congress to cancel $16 billion of the program’s existing debt.
“We are encouraged by provisions that would increase affordability. There are some provisions we have concerns about. We look forward to working with the administration to find something which strengthens the program and increases the accountability, affordability and sustainability,” said Dr. Cassidy.
Several of the provisions to reform the NFIP are taken from Cassidy-Gillibrand (S.1313), such as:
- Establish means-tested affordability program for policyholders earning less than 80 percent of area median income (AMI) starting in 2021 (Section 208 of S.1313)
- Amend and modernize the NFIP “Part A” authorities and improve program design (Section 405 of S.1313)
- Eliminate “pain points” related to proof of loss (Section 601 of S.1313)
- Study the efficacy of the mandatory purchase requirement (Section 102 of S.1313).
To read the full request and plan, click here