Insurance

Kennedy urges Biden administration to stop FEMA plan that makes flood insurance unaffordable for Louisianans – Press releases

MADISONVILLE, La. – Sen. John Kennedy (R-La.) today urged President Biden to halt the implementation of the Federal Emergency Management Agency (FEMA) Risk Rating (RR) 2.0, a plan that enacts the biggest change in history to how the National Flood Insurance Program (NFIP) calculates flood insurance premiums. RR 2.0 dramatically increases flood insurance premiums for Louisianans who depend on the NFIP to protect their homes from natural disasters.

These higher rates began October 1, 2021 for new NFIP policies, and the rate changes will take effect for existing policyholders this April 1, 2022.

“As you know, many Americans’ greatest investment is their home. . . . Although the goal of RR 2.0 is to ensure the sustainability of the NFIP, the program is only effective if the families who depend on the program can pay its premiums. Despite concerns expressed by many stakeholders and members of Congress, FEMA continued to roll out RR 2.0, implementing Phase I rate hikes for new policies. Phase I is just the tip of the iceberg,” Kennedy wrote.

“FEMA is implementing RR 2.0 unilaterally, without consulting Congress. These changes represent the biggest shift in how the NFIP calculates premiums since its inception in 1968. FEMA has called these changes “fair,” but they hurt low- and middle-income American workers the most by threatening to devalue their most important asset. -their house. It is unthinkable that FEMA appears to be taking deliberate action to make flood insurance less affordable in the wake of the devastating hurricanes that recently tore through coastal states like Louisiana,” Kennedy continued.

“Alongside several of my Senate colleagues, I have worked diligently and in a bipartisan manner to propose reforms to the NFIP program. Without proper congressional oversight, FEMA’s sweeping program change puts millions of Americans at risk of losing their homes and businesses. In light of this, I ask that you halt FEMA’s efforts to fully implement RR 2.0. As President, you have the power to stop FEMA’s tail end around Congress, and I urge you to do so in order to protect the vulnerable homes and businesses that belong to millions of Americans,” Kennedy concluded.

The text of the letter is available here.