“NO” on Cassidy-Grimm-Palazzo Amendment
Today, the House is expected to vote on the Cassidy-Grimm-Palazzo Amendment to the Department of Homeland Security Appropriations Act (H.R. 2217). The amendment, sponsored by Reps. Cassidy (R-LA), Grimm (R-NY) and Palazzo (R-MS), would delay the implementation of Section 207 of the Biggert-Waters Flood Insurance Report Act of 2012 for one year.
When Congress reauthorized the National Flood Insurance Program (NFIP) last year, it also required the phase out of subsidies on insurance premiums so that policyholders would eventually begin paying actuarially sound rates. The Cassidy-Grimm-Palazzo Amendment would delay the start that much needed reform for one year. In doing so, it would set a terrible precedent – much like the “doc fix” – that this promising reform may never be allowed to go into effect and taxpayers would be left holding the bag.
As Heritage has explained, last year’s reforms represented a crucial first step toward developing a private program:
The several private flood insurance providers in existence when the NFIP was created left the market in the face of subsidized premiums. Moving toward requiring building owners to pay the full actuarial cost of their coverage would encourage the private sector to compete with the NFIP.
Heritage Action opposes the Cassidy-Grimm-Palazzo Amendment and will include it as a vote on our scorecard.
Heritage Action Scorecard