Flood Insurance Transparency Act of 2025
- Bill Number
- H.R. 5607
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-26: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-12-18T23:27:48Z
AI-Generated Summary
Purpose
The Flood Insurance Transparency Act of 2025 aims to increase transparency in the National Flood Insurance Program (NFIP) by requiring the public release of key data and information related to flood risks, insurance policies, claims, and community compliance. This is intended to support research, technology development for better flood prediction, and informed decision-making about flood hazards.
Key Provisions
- Definitions: Introduces terms such as "loss ratio" (the ratio of claims paid to premiums collected in a fiscal year for the NFIP) and "multiple-loss property" (properties that have experienced repetitive or severe repetitive flood losses, as defined in existing law).
- Public Availability of Flood Risk Information:
- The Federal Emergency Management Agency (FEMA) Administrator must release all relevant data, models, assessments, and tools used for assessing flood risks, setting flood elevations (levels at which flooding is expected), and determining premiums.
- This includes:
- Property-specific risk data, loss ratios, and loss histories (without identifying owners).
- Current and historical policy details (limited to amount and term) for insured and formerly insured properties.
- Current and historical claims details (limited to date and amount paid) for insured and formerly insured properties.
- Whether properties were built before or after the first flood insurance rate map for their community.
- Details on properties mitigated through elevation, buyouts, or other actions.
- Identification of multiple-loss properties without mitigation.
- All data must be accessible immediately via an open-source electronic system.
- Community Information Database:
- Within one year of enactment, FEMA must create and maintain a searchable public database for each participating community, including:
- Compliance status with NFIP requirements, including any violations, enforcement actions, and duration of noncompliance.
- Number of properties in special flood hazard areas (high-risk zones) built before and after the first community flood map.
- Total claims outside special flood hazard areas.
- Number of multiple-loss properties.
- Percentage and square mileage of the community in special flood hazard areas.
- Data Format and Privacy:
- Information is aggregated at the ZIP Code or census block level, including community name and state, but not individual addresses or owner details.
- Disclosure complies with the Privacy Act (5 U.S.C. § 552a), ensuring no personally identifiable information about property owners is revealed.
Significant Changes to Existing Law
- Adds a new Section 1349 to Part C of Chapter II of the National Flood Insurance Act of 1968 (42 U.S.C. § 4081 et seq.).
- Shifts previously internal FEMA data on flood risks, policies, claims, and community metrics to mandatory public access, promoting openness not required under prior law.
- Establishes new requirements for an open-source data system and a community database, which did not exist before.
Potential Impacts
- On Government Agencies: FEMA will face increased administrative burdens to compile, maintain, and update public systems, potentially improving program efficiency through external research but requiring new resources for data management and privacy protections.
- On Citizens: Homeowners, buyers, and researchers gain better access to flood risk data, enabling more informed decisions on property purchases, insurance, and mitigation; communities may see heightened accountability for flood management.
- On International Relations: No direct impacts, as the legislation focuses on domestic flood insurance and data transparency.
- Broader effects could include advancements in flood prediction technology and reduced future losses through better public awareness.
Main Stakeholders Affected
- FEMA and Federal Government: Responsible for implementing and maintaining the data systems.
- Participating Communities: Local governments in the NFIP, whose compliance and flood data will be publicly scrutinized.
- Property Owners and Residents: Benefit from or are affected by disclosed risk and loss information in high-flood areas.
- Researchers and Technology Developers: Gain access to data for studying floods and developing predictive tools.
- Insurers and Policymakers: Can use the information to refine flood insurance practices and inform future legislation.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces privacy protections under the Privacy Act by anonymizing data, avoiding potential lawsuits over personal information disclosure; ensures data accuracy and timeliness to support legal challenges or insurance disputes.
- Constitutional: Aligns with First Amendment principles of public access to government-held information, enhancing transparency without infringing on privacy rights under the Fourth Amendment.
- Political: Promotes accountability in the NFIP, which has faced criticism for opacity and financial sustainability; could influence future funding debates or reforms by exposing loss patterns and community compliance issues, potentially pressuring underperforming areas to improve flood mitigation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Steube, W. Gregory [R-FL-17]
Cosponsors (2)
Rep. Patronis, Jimmy [R-FL-1], Rep. Carter, Troy A. [D-LA-2]
Recent Actions
- 2025-09-26: Referred to the House Committee on Financial Services.
- 2025-09-26: Introduced in House
- 2025-09-26: Introduced in House
Bill Versions
- Flood Insurance Transparency Act of 2025 — issued 2025-09-26 — PDF (6 pages)