H.R.2822 - To extend the National Flood Insurance Program through December 31, 2026. (119th Congress)
Summary
H.R. 2822 proposes to extend the National Flood Insurance Program (NFIP) through December 31, 2026. This extension would prevent the program from lapsing, ensuring continued availability of flood insurance to homeowners and businesses in flood-prone areas. The bill amends the National Flood Insurance Act of 1968 to reflect the new expiration date.
Expected Effects
The primary effect of this bill is the continuation of the NFIP, allowing individuals in participating communities to purchase flood insurance backed by the federal government. Without this extension, the NFIP would expire, potentially leaving many property owners uninsured against flood damage. This extension provides stability and predictability for homeowners, lenders, and the real estate market in flood-prone regions.
Potential Benefits
- Continued access to flood insurance for homeowners and businesses in flood-prone areas.
- Stability in the real estate market in regions reliant on the NFIP.
- Reduced risk of financial hardship for individuals affected by floods.
- Allows for ongoing evaluation and potential reform of the NFIP during the extension period.
- Provides a safety net for communities vulnerable to flooding.
Potential Disadvantages
- The extension does not address the NFIP's existing financial challenges, including its debt to the U.S. Treasury.
- Continued reliance on the NFIP may disincentivize private flood insurance market development.
- The extension does not inherently improve the program's affordability for some homeowners.
- Potential for continued subsidization of properties in high-risk flood zones.
- Does not address long-term sustainability of the program.
Most Disadvantaged Areas:
Constitutional Alignment
Congress has the power to enact legislation related to insurance and disaster relief under the General Welfare Clause (Article I, Section 8). The NFIP aims to provide a safety net for property owners against flood damage, which aligns with promoting the general welfare. The bill's extension falls within Congress's enumerated powers to regulate commerce and provide for the common defense and general welfare.
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).