House Introduces Bill to Repeal Flood-Insurance Reforms

A Pennsylvania congressman Tuesday introduced legislation that would effectively repeal all changes to the National Flood Insurance Program imposed by a controversial 2012 law.

The only provision that would be retained in the Biggert-Waters Act of 2012 under the bill would be the reauthorization of the program through Sept. 30, 2017.

The bill was introduced by Rep. Tom Marino, R-Pa., and is effectively buyer's remorse.

Marino says he introduced his bill because, "When Biggert-Waters was enacted, no one anticipated rates would increase so drastically." 

He also says the Federal Emergency Management Agency was "required by law" to report to Congress on the affordability of implementation decisions but it failed to do so. "FEMA also failed to warn buyers of such rate increases ahead of time," he says.

Craig Fugate, however, FEMA administrator, has repeatedly argued in congressional testimony and in talks with consumers, state officials and congressmen, that B-W provided no linkage between the affordability study and implementation of the rate hikes. FEMA makes the same point in filings in a Federal District Court in Gulfport, Miss. in answer to a lawsuit that argues that the rates hikes and affordability study are linked.

That suit seeks an injunction barring the rate hikes until the study is completed.

Furthermore, FEMA was not consulted about the potential impact of the law by members of Congress before they voted overwhelmingly for it, according to FEMA officials as well as those who observed the parliamentary process.

Phase-in of actuarial rates for flood insurance was required by Sen. Tom Coburn, R-Okla., as his price for adding what became known as the Biggert-Waters bill to a transportation bill then on the Senate floor in June 2012.