National Flood Insurance Program Affordability Act
Summary
The National Flood Insurance Program Affordability Act aims to make flood insurance more affordable for eligible policyholders through a means-tested assistance program. This program would provide graduated discounts, ensuring that premiums do not exceed 1% of the area median income. The Act also mandates the implementation of monthly installment payments for premiums and requires a report on alternative eligibility criteria.
Expected Effects
The Act will likely result in reduced flood insurance costs for eligible low-to-moderate income households and small businesses. FEMA will be required to establish and administer the assistance program within one year. The Act also allocates $250 million annually to fund the program, potentially impacting the federal budget.
Potential Benefits
- Reduced financial burden for eligible policyholders, making flood insurance more accessible.
- Graduated discounts based on income, providing targeted assistance.
- Monthly installment payments for premiums, easing the payment process.
- Potential hardship metric for small businesses and non-profits, expanding eligibility.
- Increased compliance with flood insurance requirements, reducing uninsured losses.
Potential Disadvantages
- Potential administrative burden and costs for FEMA to establish and manage the program.
- Risk of fraud or abuse in the application process.
- Limited funding may not cover all eligible applicants.
- Potential for increased premiums for non-eligible policyholders to offset the discounts.
- Complexity in determining eligibility based on area median income.
Constitutional Alignment
The Act appears to align with the General Welfare Clause (Article I, Section 8) of the Constitution, as it aims to provide assistance to those who may struggle to afford flood insurance. The Act's provisions for appropriations also fall under Congress's power to collect taxes and provide for the general welfare. The establishment and administration of the program by FEMA are within the scope of executive power granted by Article II.
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).