Community Flood Resilience Act

Bill Number

H.R. 9056

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-05-29: Referred to the House Committee on Financial Services.

Last Updated

2026-07-03T08:06:26Z

AI-Generated Summary

Summary of H.R. 9056: Community Flood Resilience Act

Purpose of the Legislation

This bill directs the Federal Emergency Management Agency (FEMA) Administrator to permit certain grant recipients to allocate a portion of Flood Mitigation Assistance funds and other grants toward premiums for community-based, parametric flood insurance policies. It aims to enhance financial protection against floods in areas with low participation in the National Flood Insurance Program by supporting private-sector insurance options.

Key Provisions Outlined

• Grant Usage Allowance: For five years after enactment, states or communities receiving Flood Mitigation Assistance under section 1366 of the National Flood Insurance Act of 1968 may use up to 15% of annual grant amounts to pay premiums for qualifying community-based, parametric flood insurance policies.
• Policies must be offered privately, use predefined measurable triggers for payouts, include agreed timelines and disbursement terms, and provide prompt community-level payments without post-event assessments.
• Reporting Requirements: Recipient states or communities must submit annual reports to the Administrator detailing efforts to promote National Flood Insurance Program enrollment, educate on policy limitations, encourage mitigation, support households and businesses, and boost overall flood insurance awareness.
• Outreach and Expansion: The Administrator must conduct outreach on these policies and permit their use with other FEMA grant funds for the same five-year period.
• Policy Disclosures: Qualifying policies must include written explanations of trigger conditions, basis risk (where a trigger occurs but individual relief may not), and differences from National Flood Insurance Program coverage.
• Congressional Reports: The Administrator must submit reports to Congress at one, three, and five years post-enactment analyzing policy impacts on National Flood Insurance Program participation, product types and coverage, payout effectiveness, awareness efforts, and recommendations for continuation.
• Sunset Clause: The grant usage permission ends after five years without congressional reauthorization.

Significant Changes to Existing Law Introduced

The bill adds a new temporary eligible use for Flood Mitigation Assistance grants, expanding beyond traditional mitigation activities to include premium payments for parametric insurance. It also extends this flexibility to other FEMA grants, creating a five-year pilot framework that did not previously exist under the National Flood Insurance Act.

Potential Impacts

• Government Agencies: FEMA would oversee new grant allocations, outreach, and reporting, potentially increasing administrative workload while promoting private insurance markets.
• Citizens: Flood-prone communities, households, and small businesses could gain faster supplemental financial protection, though with noted limitations like basis risk.
• International Relations: No direct impacts identified.

Main Stakeholders Affected

• Federal Emergency Management Agency and its Administrator.
• State and local governments receiving flood mitigation grants.
• Communities with high flood risk and low National Flood Insurance Program participation.
• Private insurance providers offering parametric policies.
• Households and small businesses in participating areas.

Notable Legal, Constitutional, or Political Implications

The legislation operates within existing federal authority over disaster assistance and insurance programs, with no apparent constitutional conflicts. It introduces a time-limited exception to grant restrictions, emphasizing public-private collaboration on risk transfer. The bill includes explicit disclosure mandates to address potential consumer protections in parametric products.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Garbarino, Andrew R. [R-NY-2]

Cosponsors (4)

Rep. Meeks, Gregory W. [D-NY-5], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Lawler, Michael [R-NY-17], Rep. Soto, Darren [D-FL-9]

Recent Actions

• 2026-05-29: Referred to the House Committee on Financial Services.
• 2026-05-29: Introduced in House
• 2026-05-29: Introduced in House

Bill Versions

• Community Flood Resilience Act — issued 2026-05-29 — PDF (7 pages)