To extend the National Flood Insurance Program through November 21, 2025.
Summary
This bill, H.R. 5574, seeks to extend the National Flood Insurance Program (NFIP) through November 21, 2025. It amends the National Flood Insurance Act of 1968 to change the expiration date from September 30, 2023, to the new date. The bill was introduced in the House of Representatives and referred to the Committee on Financial Services.
Expected Effects
The primary effect of this bill is to prevent the NFIP from lapsing. This ensures continued availability of flood insurance to homeowners and businesses in flood-prone areas. Without this extension, the program would expire, potentially leaving many without coverage.
Potential Benefits
- Continued flood insurance availability for homeowners and businesses.
- Stability in the real estate market in flood-prone areas.
- Reduced financial risk for property owners in vulnerable regions.
- Ensured access to flood insurance for those required to have it by mortgage lenders.
- Prevention of disruption in the housing market due to lack of flood insurance.
Potential Disadvantages
- Continued financial burden on taxpayers if the program remains underfunded.
- Potential for encouraging development in flood-prone areas.
- Possible lack of incentives for private flood insurance market growth.
- Ongoing risk of program debt accumulation.
- Limited impact on addressing the root causes of flood risk.
Constitutional Alignment
The bill aligns with the Constitution, specifically Article I, Section 8, which grants Congress the power to collect taxes and provide for the general welfare of the United States. The NFIP aims to mitigate financial risks associated with flooding, which can be considered part of promoting the general welfare. The bill's procedural aspects, such as its introduction in the House and referral to a committee, adhere to the legislative process outlined in Article I.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).