[Congressional Record Volume 163, Number 112 (Thursday, June 29, 2017)]
[Senate]
[Pages S3862-S3863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Kennedy, and Mr. Menendez):
  S. 1507. A bill to amend the National Flood Insurance Act of 1968 to 
allow the Administrator of the Federal Emergency Management Agency to 
provide capitalization grants to States to establish revolving funds to 
provide funding assistance to reduce flood risks, and for other 
purposes; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, today I am introducing the State Flood 
Mitigation Revolving Fund Act of 2017 along with Senators Kennedy and 
Menendez.
  The purpose of this bill is to reduce flood risk and the costs 
associated with flooding by establishing a State revolving loan program 
to fund mitigation projects for homeowners, businesses, and 
communities. This includes activities such as home elevations, flood 
proofing, acquisitions, and environmental restoration. By funding 
projects that reduce risk, the bill also provides an avenue to help 
middle-income and low-income property owners reduce their flood 
insurance premiums.
  Mr. President, flooding is the most common and costly hazard facing 
American property owners. Every year, we are reminded of this when we 
see catastrophic flooding in communities across the country. Since 
2010, my home State of Rhode Island has experienced two Presidentially-
declared flooding disasters, which have cost the Federal government 
over $86 million in payments from the National Flood Insurance Program. 
Nationally, disasters like these have caused FEMA to pay out an average 
of nearly $3 billion a year in flood insurance claims over the last 
five years--not to mention the billions in disaster payments for 
uninsured damage.
  Almost universally, experts remind us that the best way to reduce the 
cost of flooding is to engage in proactive, not reactive, flood 
mitigation. This is what the State Flood Mitigation Revolving Fund Act 
seeks to do.
  Modeled on the successful Clean Water and Drinking Water State 
Revolving Funds, this bill creates a straightforward and easily 
accessible program through which States can offer low-interest loans to 
homeowners, businesses, and communities who want to mitigate their 
flood risk. By creating a revolving fund, the bill will allow States to 
design and more efficiently implement their own flood mitigation 
strategies provided that they help achieve Federal objectives such as 
reducing disaster payments.
  Within this construct, the bill gives States the flexibility to 
undertake flood mitigation projects without the red tape associated 
with other Federal disaster mitigation programs. The bill requires 
state to provide a match of 20 percent, but they would have an 
incentive to further leverage Federal dollars, as many already do under 
the drinking water and clean water SRFs.
  Additionally, the bill ensures mitigation assistance is focused on 
where the flood risk is greatest and where people are most vulnerable. 
The bill requires States to prioritize mitigation assistance for low-
income homeowners and geographic areas, pre-FIRM buildings, and severe 
repetitive loss and repetitive loss buildings. Finally, it gives States 
the option of providing additional subsidization for low-income 
property-owners and-communities that simply do not have the wherewithal 
to assume additional debt.
  Mr. President, as we talk about appropriate investments in 
infrastructure, mitigation is one place where we should be putting our 
money. FEMA reports that every $1 we spend on mitigation generates $4 
in future savings. Not only will this legislation lead to a healthy 
return on investment, it will

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also create jobs through the work it funds
  I invite my colleagues to join me, Senator Kennedy, and Senator 
Menendez in supporting this legislation.

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