Rep. Scott Peters, D-California and rep. Andy Barr, R-Kentucky, on Friday introduced two-party legislation that would eliminate subsidies from the National Flood Insurance Program for new construction in flood-prone areas.
Under HR 8616, Build for Future Disasters Act of 2020, properties built in 2025 or later would no longer be eligible for NFIP subsidies and would be subject to prices that reflect current flood risk information, according to a statement issued on Friday by Rope. Peter's office.
Structures built before 2025 in flood zones or converted into flood zones would have the status of grandfather and would still be eligible for flood insurance subsidies under the NFIP, the statement said. to study the feasibility and consequences of lowering subsidies to put NFIP on a path to a stronger economic base, the statement said.
"Right now, federal taxpayer money is subsidizing the reconstruction of structures where we know they will be destroyed again, costing taxpayers more money and creating widespread suffering. This bill would put an end to it and instead encourage regional planning of resilience ̵
The bill is supported by various groups including The Pew Charitable Trusts and the R Street Institute, both based in Washington, the Indianapolis-based National Association of Mutual Insurance Companies and the Natural Resources Defense Council, based in New York City.
The Build for Future Disasters Act would take "concrete steps" to adjust flood insurance levels to actual risk, better protect policyholders and put the NFIP on a stronger fiscal level, said Jimi Grande, senior vice president of government affairs for the National Association of Mutual Insurance Companies , in the statement.  The NFIP currently has an annual deficit of $ 1.4 billion. A one-year extension of the program was recently signed into law by President Trump.