I 

118TH CONGRESS 

1ST SESSION H. R. 1540 

To establish a means-tested assistance program for national flood insurance 

program policyholders, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 10, 2023 

Mr. CARTWRIGHT introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To establish a means-tested assistance program for national 

flood insurance program policyholders, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Flood Insur5 ance Program Affordability Act’’. 

6 SEC. 2. MEANS-TESTED ASSISTANCE FOR NATIONAL FLOOD 

7 INSURANCE PROGRAM POLICYHOLDERS. 

8 (a) IN GENERAL.—The Administrator of the Federal 

9 Emergency Management Agency shall, not later than 1 

10 year after the date of the enactment of this Act, establish 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•HR 1540 IH

1 a means-tested program under which the Administrator 

2 provides assistance to eligible policyholders in the form of 

3 graduated discounts for insurance costs with respect to 

4 covered properties. 

5 (b) DISCOUNTS.—The Administrator shall use 

6 amounts provided under this section to establish grad7 uated discounts available to eligible policyholders under 

8 this section, with respect to covered properties, such that 

9 the chargeable premium rate for an eligible policyholder 

10 that applies for assistance under this section may not ex11 ceed 1 percent of the area median income for the area 

12 in which the property to which the policy applies is lo13 cated. 

14 (c) APPLICATION.—To receive assistance under this 

15 Act, an eligible policyholder shall submit an application 

16 to the Administrator at such time, in such manner, and 

17 containing such information as the Administrator may 

18 reasonably require and assistance will no longer be avail19 able when the amounts appropriated pursuant to sub20 section (f) have been expended for a fiscal year. 

21 (d) RULEMAKING AND GUIDANCE.—Not later than 1 

22 year after the date of the enactment of this Act, the Ad23 ministrator shall issue such regulations and guidance as 

24 the Administrator determines necessary to carry out this 

25 Act, including a hardship metric for small businesses and 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•HR 1540 IH

1 not-for-profit entities to qualify for assistance under this 

2 Act. 

3 (e) REPORT.—Not later than 1 year after the date 

4 of the enactment of this section, the Administrator shall 

5 submit to the Congress, a report that— 

6 (1) addresses the feasibility of making eligibility 

7 for assistance under the program established under 

8 this Act based on a consideration of an eligible pol9 icyholder’s principal, interest, taxes, and insurance 

10 instead of household income as a percent of area 

11 medium income; and 

12 (2) outlines how the Administrator could use in13 come eligibility for other Federal programs to deter14 mine eligibility for participation in the program es15 tablished under this Act. 

16 (f) APPROPRIATION.— 

17 (1) IN GENERAL.—There is appropriated, annu18 ally, to the Administrator, out of any money in the 

19 Treasury not otherwise appropriated, $250,000,000, 

20 to carry out the program established by the Admin21 istrator under subsection (a). 

22 (2) EXPENDITURE REQUIREMENT.—The Ad23 ministrator shall, each fiscal year, expend not less 

24 than 95 percent of the amount appropriated for such 

25 fiscal year under paragraph (1). 


pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•HR 1540 IH

1 SEC. 3. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS. 

2 Not later than 180 days after the date of enactment 

3 of this Act, the Administrator shall— 

4 (1) implement the requirement for monthly in5 stallment payments of premiums provided under sec6 tion 1308(g) of the National Flood Insurance Act of 

7 1968 (42 U.S.C. 4015(g)); or 

8 (2) submit to Congress an explanation of the 

9 reasons why the Administrator cannot implement 

10 the requirement described in paragraph (1) during 

11 that 180-day period. 

12 SEC. 4. DEFINITIONS. 

13 In this Act: 

14 (1) ADMINISTRATOR.—The term ‘‘Adminis15 trator’’ means the Administrator of the Federal 

16 Emergency Management Agency. 

17 (2) COVERED PROPERTY.—The term ‘‘covered 

18 property’’ means— 

19 (A) a primary residential dwelling; or 

20 (B) personal property relating to a dwell21 ing described in subparagraph (A). 

22 (3) ELIGIBLE POLICYHOLDER.—The term ‘‘eli23 gible policyholder’’ means— 

24 (A) a person who— 


pbinns on DSKJLVW7X2PROD with $$_JOB
5 

•HR 1540 IH

1 (i) is a national flood insurance pro2 gram policyholder on or after the date of 

3 the enactment of this Act; and 

4 (ii) has a household income that is not 

5 more than 120 percent of the area median 

6 income for the area in which the property 

7 to which the policy applies is located; 

8 (B) a business with not more than 100 

9 employees that— 

10 (i) is a national flood insurance pro11 gram policyholder on or after the date of 

12 the enactment of this Act; and 

13 (ii) satisfies the hardship metric pub14 lished by the Administrator under section 

15 2; or 

16 (C) a not-for-profit organization that— 

17 (i) is a national flood insurance pro18 gram policyholder on or after the date of 

19 the enactment of this Act; and 

20 (ii) satisfies the hardship metric pub21 lished by the Administrator under section 

22 2. 

23 (4) INSURANCE COSTS.—The term ‘‘insurance 

24 costs’’ means, with respect to a covered property for 

25 a year— 


pbinns on DSKJLVW7X2PROD with $$_JOB
6 

•HR 1540 IH

1 (A) risk premiums and fees estimated 

2 under section 1307 of the National Flood In3 surance Act of 1968 (42 U.S.C. 4014) and 

4 charged under section 1308 of such Act (42 

5 U.S.C. 4015); 

6 (B) surcharges assessed under sections 

7 1304 and 1308A of such Act (42 U.S.C. 4011, 

8 4015a); and 

9 (C) any amount established under section 

10 1310A(c) of such Act (42 U.S.C. 4017a). 

Æ 


pbinns on DSKJLVW7X2PROD with $$_JOB