[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5106 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5106
To establish a grant program to promote wildfire resilience investments
and a pilot program to reduce the cost burden of insurance premiums,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 23, 2026
Mr. Merkley introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish a grant program to promote wildfire resilience investments
and a pilot program to reduce the cost burden of insurance premiums,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Wildfire Insurance Affordability
Act''.
SEC. 2. WILDFIRE RISK REDUCTION GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible recipient.--The term ``eligible recipient''--
(A) means the Department of Insurance or comparable
agency of a State of the United States, the District of
Columbia, any commonwealth or territory of the United
States, or an Indian Tribe; and
(B) includes a subgrantee of a recipient described
in subparagraph (A) that is a local fire department,
rural fire protection district, or other similar
entity.
(2) Indian tribe.--The term ``Indian Tribe'' has the
meaning given that term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(b) Establishment.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the United States Fire Administrator
shall establish the Wildfire Risk Reduction Grant Program to
provide formula grants to eligible recipients to promote
wildfire resilience, including to support home hardening,
defensible space, and other wildfire mitigation investments to
owner-occupied primary residences, multifamily residential
properties with less than five units, and affordable housing
facilities.
(2) Formula.--The United States Fire Administrator shall
distribute amounts under the Wildfire Risk Reduction Grant
Program as follows:
(A) 25 percent distributed among all eligible
recipients, in amounts proportionate to the population
of each such eligible recipient, as determined by the
United States Fire Administrator, the Secretary of the
Department of the Interior, and the Chief of the Forest
Service, using census data.
(B) 50 percent distributed among each eligible
recipient, as a risk adjustment, to increase the
eligible recipient's allocation based on--
(i) frequency of severe fires within the
eligible recipient;
(ii) population and number of structures
located within the wildfire urban interface,
using census data; and
(iii) overall heightened wildfire risk as
determined under the National Risk Index of the
Federal Emergency Management Agency.
(C) 25 percent distributed among each eligible
recipient, as an equity adjustment, to increase the
eligible recipient's allocation based on the relative
need for fire risk mitigation assistance among low-
income households and rural communities, based on--
(i) median household income (by county),
using census data;
(ii) presence of Indian Tribes; and
(iii) other factors, as determined by the
United States Fire Administrator, the Secretary
of the Department of the Interior, and the
Chief of the Forest Service.
(c) Uses of Grant Awards.--
(1) In general.--Eligible recipients may use grants awarded
under subsection (b) to provide grants to nonprofit
organizations, local governments, and individuals for any of
the following purposes:
(A) Supporting residential fire resilience and
mitigation programs throughout the eligible recipient.
(B) With respect to residential properties:
(i) Improving the durability and fire
resistance of a roof covering (to a minimum of
a class A rating).
(ii) Protecting propane tanks or other
external fuel sources.
(iii) Installing roof coverings, sheathing,
flashing, roof and attic vents, eaves, or
gutters that conform to ignition-resistant
construction standards.
(iv) Installing wall components for wall
assemblies that conform to ignition-resistant
construction standards.
(v) Installing exterior walls, doors,
windows, or other exterior dwelling unit
elements that conform to ignition-resistant
construction standards.
(vi) Replacing existing exterior deck or
fence components with materials that conform to
ignition-resistant construction standards.
(vii) Installing structure-specific water
hydration systems, including fire mitigation
systems such as interior sprinkler systems.
(viii) Installing automatic shutoff valves
for gas lines.
(ix) Procuring services and equipment to
create buffers around a dwelling unit through
the removal or reduction of flammable
vegetation, the removal of exterior deck or
fence components, removal of ignition-prone
landscape features.
(x) Performing other fire mitigation
procedures identified by the United States Fire
Administrator, the Secretary of the Department
of the Interior, or the Chief of the Forest
Service, including fuel management techniques
such as fuel or fire breaks.
(xi) Installing or retrofitting structural
components of exterior openings to reduce
wildfire smoke or airborne particulates,
including by sealing or weatherstripping
windows, exterior doors, pet doors, or other
exterior openings, or making other structural
improvements identified by the United States
Fire Administrator, the Secretary of Interior,
and the Chief of the Forest Service to reduce
wildfire smoke damage.
(C) Other activities that increase safety and
reduce residential wildfire risk, as determined by the
United States Fire Administrator, in consultation with
the Chief of the Forest Service and Secretary of the
Interior.
(2) Meeting industry standards.--With respect to any grant
awarded to improve a household under paragraph (1), the grant
award shall be used for activities that qualify the household
under the guidance and certification process of the Insurance
Institute for Business and Home Safety, the Firewise USA
standards of the National Fire Protection Association, or a
comparable industry standard, as determined by the
administering State agency.
(3) Administrative costs.--An eligible recipient may use
not more than 10 percent of the amount of the grant awarded
under subsection (b) for the administrative costs of the
eligible recipient.
(d) Limitation.--The maximum grant under this section shall be
$10,000 per household.
(e) Report Required.--The United States Fire Administrator shall
collect from each eligible recipient receiving a grant under this
section a report on the use of the grant that includes performance
metrics and information on mitigation cost savings.
SEC. 3. HOMEOWNER'S WILDFIRE INSURANCE PREMIUM ASSISTANCE VOUCHER PILOT
PROGRAM.
(a) Establishment.--Not later than 180 days after the date of
enactment of this Act, the United States Fire Administrator, in
consultation with the Chief of the Forest Service and the Secretary of
the Interior, shall establish a pilot program to provide means-tested
voucher-based premium assistance for wildfire insurance to eligible
households in the form of grants to States that would distribute
vouchers to qualifying households.
(b) Qualifying Household Defined.--For purposes of this section, a
``qualifying household'' means a household--
(1) residing in a residential dwelling with an elevated
wildfire risk, as determined by the State insurance
commissioner using the National Risk Index of the Federal
Emergency Management Agency or a State-approved risk index;
(2) that has completed risk reduction investments toward an
industry standard for fire safety under section 2(c)(2); and
(3) with a household income equal to or less than 80
percent of the area median income, using the most recent census
data, for the area in which the property is located.
(c) Value of Voucher.--The value of any voucher distributed under
subsection (a) shall be determined by the State insurance commissioner.
(d) Administrative Costs.--The pilot program established under
subsection (a) may use not more than 10 percent of the amounts made
available for the program for administrative costs.
(e) Reports.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter, the United States Fire
Administrator, in coordination with the administering agencies of each
State receiving a grant under the pilot program under subsection (a),
shall submit to Congress a report on the results of the pilot program
and an assessment of whether the pilot program has reduced the cost
burden of insurance premiums and retained private insurers in State
markets.
(f) Sunset.--This section shall cease to have force or effect on
the date that is five years after the date of establishment of the
pilot program under subsection (a).
SEC. 4. EXCLUSION OF AMOUNTS RECEIVED FROM GRANT PROGRAMS.
(a) In General.--Section 139 of the Internal Revenue Code of 1986
is amended by redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) State-Based Catastrophe Loss Mitigation Programs.--
``(1) In general.--Gross income shall not include any
amount received by or paid for the benefit of an individual as
a qualified catastrophe mitigation payment under a program
established by--
``(A) a State or any political subdivision or
public instrumentality thereof,
``(B) a joint powers authority, or
``(C) an entity created by State law to ensure the
availability of an adequate market of last resort for
essential property insurance or basic property
insurance, over which a State agency or State
department of insurance has regulatory oversight,
for the purpose of making such payments.
``(2) Qualified catastrophe mitigation payment.--For
purposes of this section, the term `qualified catastrophe
mitigation payment' means any amount received under a grant
under section 2 or 3 of the Wildfire Insurance Affordability
Act.
``(3) No increase in basis.--Rules similar to the rules of
subsection (g)(3) shall apply in the case of this
subsection.''.
(b) Conforming Amendments.--
(1) Section 139(d) of the Internal Revenue Code of 1986 is
amended by striking ``and qualified'' and inserting ``,
qualified catastrophe mitigation payments, and qualified''.
(2) Section 139(i) of such Code (as redesignated by
subsection (a)) is amended by striking ``or qualified'' and
inserting ``, qualified catastrophe mitigation payment, or
qualified''.
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