S.2052 - Flood Insurance Transparency Act of 2025 (119th Congress)
Summary
S.2052, the Flood Insurance Transparency Act of 2025, aims to amend the National Flood Insurance Act of 1968 by requiring greater public availability of information related to the National Flood Insurance Program (NFIP). This includes data on flood risk, policy information, claims history, and community compliance. The bill mandates the creation of an open-source data system and a searchable database for community information, ensuring transparency while protecting personally identifiable information.
Expected Effects
The Act will likely lead to increased public awareness of flood risks and the performance of the NFIP. This could influence property purchasing decisions, encourage mitigation efforts, and potentially drive improvements in community flood preparedness. It could also lead to pressure on communities to improve compliance with NFIP requirements.
Potential Benefits
- Increased transparency and public access to flood risk information.
- Facilitation of research and development of flood-related technologies.
- Improved community awareness and preparedness for flood events.
- Potential for more informed property purchasing decisions.
- Greater accountability for communities participating in the NFIP.
Potential Disadvantages
- Potential for misuse of data if not properly anonymized, despite the stated intention to protect personally identifiable information.
- Increased administrative burden and costs associated with establishing and maintaining the required data systems.
- Possible misinterpretation of complex data by the public, leading to inaccurate risk assessments.
- Could potentially stigmatize properties identified as high-risk or multiple-loss, impacting property values.
- The Act does not address the underlying financial sustainability of the NFIP.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to provide information that can help citizens and communities better prepare for and mitigate the risks associated with flooding. The establishment of the NFIP itself is an exercise of Congress's power to regulate commerce and provide for the general welfare. The requirement for data protection aligns with principles of privacy, although no specific constitutional amendment is directly implicated.
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).