I 
119TH CONGRESS 
1ST SESSION H. R. 5500 
To make administrative reforms to the National Flood Insurance Program 
to increase fairness and accuracy and protect the taxpayer from program 
fraud and abuse, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2025 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To make administrative reforms to the National Flood Insur-
ance Program to increase fairness and accuracy and 
protect the taxpayer from program fraud and abuse, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘National Flood Insurance Program Administrative Re-
form Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Pilot program for properties with preexisting conditions. 
Sec. 3. Penalties for fraud and false statements in the National Flood Insur-
ance Program. 
Sec. 4. Enhanced policyholder appeals process rights. 
Sec. 5. Deadline for approval of claims. 
Sec. 6. Litigation process oversight and reform. 
Sec. 7. Prohibition on hiring disbarred attorneys. 
Sec. 8. Technical assistance reports. 
Sec. 9. Improved disclosure requirement for standard flood insurance policies. 
Sec. 10. Reserve Fund amounts. 
Sec. 11. Sufficient staffing for Office of Flood Insurance Advocate. 
Sec. 12. Federal Flood Insurance Advisory Committee. 
Sec. 13. Interagency guidance on compliance. 
Sec. 14. GAO study of claims adjustment practices. 
Sec. 15. GAO study of flood insurance coverage treatment of earth movement. 
Sec. 16. Definitions. 
SEC. 2. PILOT PROGRAM FOR PROPERTIES WITH PRE-
EXISTING CONDITIONS. 
Section 1311 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4018) is amended by adding at the end 
the following new subsection: 
‘‘(c) PILOT PROGRAM FOR INVESTIGATION OF PRE-
EXISTING STRUCTURAL CONDITIONS.— 
‘‘(1) VOLUNTARY
PROGRAM.—The Adminis-
trator shall carry out a pilot program under this 
subsection to provide for companies participating in 
the Write Your Own program (as such term is de-
fined in section 1370(a) (42 U.S.C. 4121(a))) to in-
vestigate preexisting structural conditions of insured 
properties and potentially insured properties that 
could result in the denial of a claim under a policy 
for flood insurance coverage under this title in the 
event of a flood loss to such property. Participation 
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in the pilot program shall be voluntary on the part 
of Write Your Own companies. 
‘‘(2) INVESTIGATION OF PROPERTIES.—Under 
the pilot program under this subsection, a Write 
Your Own company participating in the program 
shall— 
‘‘(A) provide in policies for flood insurance 
coverage under this title covered by the pro-
gram that, upon the request of the policyholder, 
the company shall provide for— 
‘‘(i) an investigation of the property 
covered by such policy, using common 
methods, to determine whether preexisting 
structural conditions are present that could 
result in the denial of a claim under such 
policy for flood losses; and 
‘‘(ii) if such investigation is not deter-
minative, an on-site inspection of the prop-
erty to determine whether such preexisting 
structural conditions are present; 
‘‘(B) upon completion of an investigation 
or inspection pursuant to subparagraph (A) 
that determines that such a preexisting struc-
tural condition is present or absent, submit a 
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report to the policyholder and Administrator de-
scribing the condition; and 
‘‘(C) impose a surcharge on each policy de-
scribed in subparagraph (A) in such amount 
that the Administrator determines is appro-
priate to cover the costs of investigations and 
inspections performed pursuant to such policies 
and reimburse Write Your Own companies par-
ticipating in the program under this subsection 
for such costs. 
‘‘(3) INTERIM REPORT.—Not later than Decem-
ber 31, 2027, the Administrator shall submit a re-
port to the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
describing the operation of the pilot program to that 
date. 
‘‘(4) SUNSET.—The Administrator may not 
provide any policy for flood insurance described in 
paragraph (2)(A) after December 31, 2028. 
‘‘(5) FINAL
REPORT.—Not later than March 
31, 2029, the Administrator shall submit a final re-
port regarding the pilot program under this section 
to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, 
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Housing, and Urban Affairs of the Senate. The re-
port shall include any findings and recommendations 
of the Administrator regarding the pilot program.’’. 
SEC. 3. PENALTIES FOR FRAUD AND FALSE STATEMENTS 
IN THE NATIONAL FLOOD INSURANCE PRO-
GRAM. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 1349. PENALTIES FOR FRAUD AND FALSE STATE-
MENTS IN THE NATIONAL FLOOD INSURANCE 
PROGRAM. 
‘‘(a) PROHIBITED ACTS.—A person shall not know-
ingly make a false, fictitious, or fraudulent statement, pro-
duction, or submission in connection with the proving or 
adjusting of a claim for flood insurance coverage made 
available under this Act. Such prohibited acts include— 
‘‘(1) knowingly forging an engineering report, 
claims adjustment report or technical assistance re-
port used to support a claim determination; 
‘‘(2) knowingly making any materially false, fic-
titious, or fraudulent statement or representation in 
an engineering report, claims adjustment report, or 
technical assistance report to support a claim deter-
mination that results in a wrongful denial or sub-
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stantial payment error of flood insurance coverage; 
and 
‘‘(3) knowingly submitting a materially false, 
fictitious, or fraudulent claim that results in wrong-
ful payment of flood insurance coverage. 
‘‘(b) DEFINITION.—For purposes of this section, the 
term ‘knowingly’ means having actual awareness of the 
prohibitions under this part and acting deliberately in vio-
lation of such prohibitions. 
‘‘(c) ADMINISTRATIVE REMEDY.—Prior to any legal 
action being taken related to this section, all administra-
tive remedies shall be exhausted. 
‘‘(d) RULE OF CONSTRUCTION.—This section shall 
not be construed— 
‘‘(1) to prevent the Federal Government from 
bringing action against a company or individual 
under applicable statutes, including the False Claims 
Act; and 
‘‘(2) as creating any action, private right of ac-
tion, or remedy not otherwise provided by this title 
or under Federal law. 
‘‘(e) STATE ACTION.—Any person found to have vio-
lated subsection (a) shall be referred to the appropriate 
and relevant State licensing agency by the Attorney Gen-
eral.’’. 
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SEC. 4. ENHANCED POLICYHOLDER APPEALS PROCESS 
RIGHTS. 
(a) ESTABLISHMENT.—Part C of chapter II of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4081 
et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new section: 
‘‘SEC. 1350. APPROVAL OF DECISIONS RELATING TO FLOOD 
INSURANCE COVERAGE. 
‘‘(a) IN GENERAL.—The Administrator shall estab-
lish an appeals process to enable holders of a flood insur-
ance policy provided under this title to appeal decisions, 
with respect to the disallowance, in whole or in part, of 
any claims for losses covered by flood insurance. Such ap-
peals shall be limited to the claim or portion of the claim 
disallowed. 
‘‘(b) APPEAL DECISION.—Upon a decision in an ap-
peal under subsection (a), the Administrator shall provide 
the policyholder with a written appeal decision. The appeal 
decision shall explain the Administrator’s determination to 
uphold, modify, or overturn the decision. The Adminis-
trator may direct the Write Your Own company to take 
action necessary to resolve the appeal, to include re-inspec-
tion, re-adjustment, or payment, as appropriate. 
‘‘(c) DEADLINE FOR APPEALS DECISION.—The Ad-
ministrator shall issue an appeals decision pursuant to 
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subsection (b) not later than the expiration of the 120- 
day period beginning upon the day on which the Adminis-
trator acknowledges receipt of a request by the policy-
holder to pursue an appeal of the initial determination re-
garding approval, disapproval, or amount of payment by 
the Administrator. In cases where extraordinary cir-
cumstances, as established by regulation, are dem-
onstrated, the 120-day period may be extended by addi-
tional successive periods of 30 days. 
‘‘(d) ADMINISTRATIVE
REMEDY.—A policyholder 
shall exhaust all administrative remedies, including sub-
mission of disputed claims to appeal under subsection (a), 
prior to commencing legal action on a disputed claim. 
‘‘(e) RULES OF CONSTRUCTION.—This section shall 
not be construed as— 
‘‘(1) making the Federal Emergency Manage-
ment Agency or the Administrator a party to the 
flood insurance contract; or 
‘‘(2) creating any action or remedy not other-
wise provided by this title. 
‘‘(f) POLICYHOLDER LITIGATION.—This section shall 
not be construed to prevent a policyholder from bringing 
legal action against the Federal Emergency Management 
Agency or a Write Your Own company following the ex-
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haustion of all administrative remedies and pursuant to 
applicable statute.’’. 
(b) MAINTENANCE OF LITIGATION RIGHTS.—Section 
1341 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4072) is amended by adding after the period at 
the end the following: ‘‘For purposes of this section, the 
time from which the Administrator has acknowledged re-
ceipt of a request by the policyholder to pursue an appeal 
of the initial determination regarding approval, dis-
approval, or amount of payment by the Administrator 
until the Administrator mails a final determination of such 
appeal shall not be considered towards the one year stat-
ute of limitation under this Act. However, this section 
shall not be construed as creating any action or remedy 
not otherwise provided by this title.’’. 
(c) REPEAL.—Section 205 of the Bunning-Bereuter- 
Blumenauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note) is hereby repealed. 
SEC. 5. DEADLINE FOR APPROVAL OF CLAIMS. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend-
ed— 
(1) in subsection (a), by striking ‘‘The Adminis-
trator’’ and inserting ‘‘Subject to other provisions of 
this section, the Administrator’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(d) DEADLINE FOR APPROVAL OF CLAIMS.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
provide that, in the case of any claim for damage to 
or loss of property under flood insurance coverage 
made available under this title, an initial determina-
tion regarding approval of a claim for payment or 
disapproval of the claim be made, and notification of 
such determination be provided to the insured mak-
ing such claim, not later than the expiration of the 
120-day period (as such period may be extended 
pursuant to paragraph (2)) beginning upon the day 
on which the policyholder submits a signed proof of 
loss detailing the damage and amount of the loss. 
Payment of approved claims shall be made as soon 
as possible after such approval. 
‘‘(2) EXTENSION OF DEADLINE.—The Adminis-
trator shall— 
‘‘(A) provide that the period referred to in 
paragraph (1) may be extended by additional 
successive periods of 30 days in cases where ex-
traordinary circumstances are demonstrated; 
and 
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‘‘(B) establish, by regulation, criteria for 
demonstrating 
such 
extraordinary 
cir-
cumstances.’’. 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to any claim under flood insurance 
coverage made available under the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4001 et seq.) pending on 
the date of the enactment of this Act and any claims made 
after such date of enactment. 
SEC. 6. LITIGATION PROCESS OVERSIGHT AND REFORM. 
(a) IN GENERAL.—Part C of chapter II of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4081 et 
seq.), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new 
section: 
‘‘SEC. 1351. OVERSIGHT OF LITIGATION. 
‘‘(a) OVERSIGHT.—The Administrator shall monitor 
and oversee litigation conducted by Write Your Own com-
panies arising under contracts for flood insurance sold 
pursuant to this title, to ensure that— 
‘‘(1) litigation expenses are reasonable, appro-
priate, and cost-effective; and 
‘‘(2) Write Your Own companies comply with 
guidance and procedures established by the Adminis-
trator regarding the conduct of litigation. 
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‘‘(b) 
DENIAL
OF
REIMBURSEMENT
FOR
EX-
PENSES.—The Administrator may deny reimbursement 
for litigation expenses that are determined to be unreason-
able, excessive, contrary to guidance issued by the Admin-
istrator, or outside the scope of any arrangement entered 
into with a Write Your Own company. 
‘‘(c) JOINT DEFENSE.— 
‘‘(1) AUTHORITY.—The Administrator and the 
Write Your Own companies may enter into, and op-
erate under, a joint defense agreement for any claim 
or lawsuit, or multiple claims or lawsuits, arising 
under a contract of flood insurance. 
‘‘(2) FREE
FLOW
OF
INFORMATION.—Under 
such joint defense agreement, there may be the free 
flow of information between the Write Your Own 
companies, the Administrator, the United States De-
partment of Justice, and legal counsel for the Write 
Your Own companies for the purpose of litigation 
coordination and to allow the Administrator to per-
form oversight responsibility of such litigation. 
‘‘(3) 
ARRANGEMENT.—Such 
joint 
defense 
agreement may be included in the Arrangement be-
tween the Administrator and the Write Your Own 
companies. 
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‘‘(4) REGULATIONS.—The Administrator may 
issue rules or regulations or provide such formal 
guidance as the Administrator considers necessary 
and appropriate in order to further such joint de-
fense agreement with the Write Your Own compa-
nies.’’. 
(b) IMPLEMENTATION.—The Administrator of the 
Federal Emergency Management Agency shall initiate 
compliance with section 1351(c) of the National Flood In-
surance Act of 1968, as added by the amendment made 
by subsection (a) of this section, not later than the expira-
tion of the 12-month period beginning on the date of the 
enactment of this Act. 
SEC. 7. PROHIBITION ON HIRING DISBARRED ATTORNEYS. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 
preceding provisions of this Act, is further amended by 
adding at the end the following new section: 
‘‘SEC. 1352. PROHIBITION ON HIRING DISBARRED ATTOR-
NEYS. 
‘‘The Administrator may not at any time newly em-
ploy in connection with the flood insurance program under 
this title any attorney who has been suspended or dis-
barred by any court, bar, or Federal or State agency to 
which the individual was previously admitted to practice.’’. 
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SEC. 8. TECHNICAL ASSISTANCE REPORTS. 
(a) USE.—Section 1312 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4019), as amended by the 
preceding provisions of this Act, is further amended by 
adding at the end the following new subsection: 
‘‘(e) USE OF TECHNICAL ASSISTANCE REPORTS.— 
When adjusting claims for any damage to or loss of prop-
erty which is covered by flood insurance made available 
under this title, the Administrator may rely upon technical 
assistance reports, as such term is defined in section 
1312A, only if such reports are final and are prepared 
in compliance with applicable State and Federal laws re-
garding professional licensure and conduct.’’. 
(b) DISCLOSURE.—The National Flood Insurance 
Act of 1968 is amended by inserting after section 1312 
(42 U.S.C. 4019) the following new section: 
‘‘SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE RE-
PORTS. 
‘‘(a) IN GENERAL.—Notwithstanding section 552a of 
title 5, United States Code, upon request by a policy-
holder, the Administrator shall provide a true, complete, 
and unredacted copy of any technical assistance report 
that the Administrator relied upon in adjusting and pay-
ing for any damage to or loss of property insured by the 
policyholder and covered by flood insurance made available 
under this title. Such disclosures shall be in addition to 
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any other right of disclosure otherwise made available pur-
suant such section 552a or any other provision of law. 
‘‘(b) DIRECT DISCLOSURE BY WRITE YOUR OWN 
COMPANIES AND DIRECT SERVICING AGENTS.—A Write 
Your Own company or direct servicing agent in possession 
of a technical assistance report subject to disclosure under 
subsection (a) may disclose such technical assistance re-
port without further review or approval by the Adminis-
trator. 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) POLICYHOLDER.—The term ‘policyholder’ 
means a person or persons shown as an insured on 
the declarations page of a policy for flood insurance 
coverage sold pursuant to this title. 
‘‘(2) TECHNICAL
ASSISTANCE
REPORT.—The 
term ‘technical assistance report’ means a report 
created for the purpose of furnishing technical as-
sistance to an insurance claims adjuster assigned by 
the National Flood Insurance Program, including by 
engineers, surveyors, salvors, architects, and cer-
tified public accounts.’’. 
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