The White House released proposed changes to the NFIP that it would have liked to see included in a disaster aid package the U.S. House of Representatives is scheduled to vote on this week.

At press time, the House had not yet voted on the package, which provides assistance for areas affected by recent hurricanes.  While a number of the suggested reforms have broad congressional support, many elements of the Administration’s proposal polarize coastal areas and other flood-prone regions.

The White House proposal called for canceling $16 billion of the NFIP’s debt which resulted from recent hurricanes. However, it did not call for an increase in the program’s borrowing authority. Of interest to Big “I” members, the proposal also included, clarifying that private flood policies can satisfy NFIP mandatory purchase and continuous coverage requirements, eliminating non-compete requirements for the insurers that service the NFIP, and making NFIP data available to the private market.

Beginning in 2021, the Trump Administration requested establishing a means-tested affordability program for policyholders who earn less than 80% of area’s median income. This concept had been broadly discussed, but was not part of the final House Financial Services Committee flood package, which passed out of the full committee last summer.

The most problematic Administration proposals included a phase-out of new NFIP policies for newly constructed homes and commercial properties, and discontinuation of NFIP coverage for severe repetitive loss properties. While the $16 billion in debt forgiveness has been included in the final disaster aid package, the other reforms sought by the Administration were not added to the bill.

The NFIP is set to expire on Dec. 8, 2018 and Congress is still working out the details of a long-term program reauthorization. Stay tuned to the News & Views e-newsletter for additional NFIP updates.

Jen McPhillips is Big “I” vice president of federal government affairs.