AFFIRM Act of 2026
- Bill Number
- S. 4215
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-03-26: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-04-03T05:38:28Z
AI-Generated Summary
Purpose
The Assisting Family Farmers through Insurance Reform Measures Act of 2026 (AFFIRM Act of 2026) aims to reduce federal spending on the crop insurance program by introducing transparency requirements, income-based limits on subsidies, caps on payments to private insurers, and prohibitions on certain policy subsidies.
Key Provisions
- Public Disclosure of Subsidies (Sec. 2): Requires the Secretary of Agriculture to annually publish:
- Names of individuals/entities receiving subsidized crop, livestock, or forage insurance (excluding catastrophic plans), along with their premium subsidies and federal indemnities (loss payments).
- Data on private insurers' underwriting gains, administrative expenses, indemnities, reinsurance, and other federal payments.
- Income and Per-Person Subsidy Limits (Sec. 3):
- No federal premium subsidies for "additional coverage" (beyond basic catastrophic) if a person's average adjusted gross income exceeds $250,000.
- Caps federal premium payments at $40,000 per person or entity per reinsurance year.
- Ban on Harvest Price Policy Subsidies (Sec. 4): From 2027, no federal subsidies for policies based on harvest-time market prices.
- Cap on Insurers' Rate of Return (Sec. 5): Limits private crop insurance providers' target average rate of return to 8.9% of retained premiums starting in 2027.
- Cap on Administrative Expenses (Sec. 6): Limits total reimbursements to private providers for administrative and operating costs to $900 million in 2027, with annual inflation adjustments thereafter.
- Reinsurance Agreement Changes (Sec. 7): Requires renegotiation of the Standard Reinsurance Agreement by removing a specific provision.
Significant Changes to Existing Law
- Adds mandatory public disclosure of subsidy recipients and insurer finances, overriding prior confidentiality rules (except for catastrophic plans).
- Introduces new AGI cap ($250,000) and per-person cap ($40,000) on premium subsidies, previously absent or higher.
- Prohibits subsidies for harvest price policies, a new restriction.
- Imposes hard caps on insurers' rate of return (8.9%) and administrative reimbursements ($900M), tightening prior flexible targets.
- Mandates renegotiation of the reinsurance agreement, altering federal-private insurer terms.
Potential Impacts
- Federal Budget: Significant savings by limiting subsidies to high-income farmers, capping insurer payments, and banning certain policies—potentially billions over time.
- Farmers: Small and family farmers may benefit from reforms targeting larger operations; high-income farmers lose access to subsidies.
- Private Insurers: Reduced profits and reimbursements could lead to program adjustments or exits.
- Taxpayers and Public: Greater transparency into subsidy use fosters accountability.
- No direct international relations impact.
Main Stakeholders Affected
- Farmers and Ranchers: Especially high-income individuals/entities (AGI > $250,000) and those using harvest price policies.
- Private Crop Insurance Companies: Face lower returns, expense caps, and disclosure requirements.
- U.S. Department of Agriculture (USDA) and Federal Crop Insurance Corporation (FCIC): Must implement disclosures, enforce limits, and renegotiate agreements—increasing administrative workload.
- Taxpayers: Benefit from reduced federal spending.
Notable Legal, Constitutional, or Political Implications
- Legal: Amends the Federal Crop Insurance Act (7 U.S.C. 1508 et seq.), potentially facing challenges from insurers or farmers on contract rights or due process; requires rulemaking for implementation.
- Constitutional: No clear issues; disclosure balances public interest against privacy (exempts low-risk catastrophic plans).
- Political: Promotes fiscal restraint and equity in farm subsidies, appealing to deficit hawks while titled to support family farmers—could spark debates on rural policy during farm bill cycles.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-26: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2026-03-26: Introduced in Senate
Bill Versions
- Assisting Family Farmers through Insurance Reform Measures Act of 2026 — issued 2026-03-26 — PDF (6 pages)