Congressman Carter Leads Bipartisan Flood Resilience Caucus Response to FEMA Review Council NFIP Reform Recommendations

WASHINGTON, D.C. - Recently, Congressman Troy A. Carter, Sr. (D-LA) led the Flood Resilience Caucus in sending a letter to Secretary Markwayne Mullin, U.S. Department of Homeland Security (DHS), Administrator Cameron Hamilton, Federal Emergency Management Agency (FEMA), and members of the FEMA Review Council. The Members provided a response to FEMA Review Council Report Key Recommendation 7 - Reform the National Flood Insurance Program (NFIP) for Financial Stability and Risk Resilience. The Flood Resilience Caucus is co-chaired by Reps. Troy Carter (D-LA), Mike Ezell (R-MS), Lizzie Fletcher (D-TX), and Randy K. Weber, Sr. (R-TX).

"The federal government needs a federal flood insurance program that keeps coverage affordable, narrows the insurance gap, and rewards mitigation-yet Risk Rating 2.0 has undermined these goals. Since its October 2021 rollout, our offices have fielded steady complaints from policyholders about the new pricing methodology, which has increased affordability pressure and widened the coverage gap. The average NFIP policy now costs $1,808 annually, a 103.6% jump over legacy rates," the Members wrote. "Clearly, NFIP reform is necessary. The FEMA Review Council's Final Report provides a platform for this action; however, nuance is needed to achieve desired results in line with FEMA's mission of 'helping people before, during and after disasters.'"

On May 7, 2026, the FEMA Review Council released its final report of findings and recommendations, proposing a range of policy shifts. The report calls for gradually shifting NFIP toward the private market through continued implementation of Risk Rating 2.0, updated flood mapping, risk-based pricing, and a voluntary program to transfer policies to private insurers, with the ultimate goal of moving the bulk of flood coverage into the private market. This approach will weaken a program already struggling to retain policyholders by pulling the lowest-risk policies out to private insurers, leaving NFIP holding a smaller, more concentrated pool of higher-risk properties, driving up average losses, shrinking premium revenue, and deepening the program's debt to the Treasury. Policyholders already face rising premiums under a "risk-based" model whose actual math they cannot see. FEMA has never released the full underlying Risk Rating 2.0 formula or subjected it to independent, third-party verification, leaving homeowners and local officials unable to check whether their individual rating factors (flood distance, elevation, mitigation credits) are correct and fair.

The lawmakers provided the following feedback to the FEMA Review Council:

1. Empower Communities (Better Land-Use Policies)
2. Modernize Risk Assessment (Update Risk Rating 2.0 & Improve Maps)
3. Implement Risk-Based Pricing & Actual Costs
4. Revise 'Write Your Own' Compensation
5. Shift to Private Market through Depopulation of Existing NFIP Policies
6. Evaluate Development of Flood Insurance Marketplace
7. Address Repetitive Loss Properties

"CSFI appreciates the Flood Resilience Caucus for uplifting common-sense NFIP improvements, from a means-tested affordability program to a third-party review of Risk Rating 2.0. Flood events have occurred in 99% of counties over the past 20 years, and the peril affects essentially all congressional districts, although only 4% of American households have flood coverage. As NFIP participation continues to fall from a peak of 5.7M to under 4.5M now, CSFI encourages Congress to act on this program before more policyholders are priced out, while advancing sustainable solutions that reduce risk across perils.," said Michael Hecht, President & CEO of Greater New Orleans, Inc. (GNO, Inc.) and founder of the Coalition for Sustainable Flood Insurance (CSFI).

Additional lawmakers signing onto the effort include Reps. Cleo Fields (D-LA) and LaMonica McIver (D-NJ).

Background:

Members of the Bipartisan Flood Resilience Caucus recognize the importance of acting now to adapt communities and build resilience in the face of rising sea levels and extreme weather events. Research shows that proactive investments in adaptive measures, such as elevating homes and retrofitting infrastructure, can save taxpayers an average of six dollars for every one dollar of federal spending.

Read the full letter here.

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