[Congressional Record Volume 167, Number 142 (Saturday, August 7, 2021)]
[Senate]
[Pages S6027-S6029]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2649. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for 
herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. 
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the 
bill H.R. 3684, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. ___. CAP ON ANNUAL PREMIUM INCREASES.

       (a) Definitions.--In this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Federal Emergency Management Agency; and
       (2) the term ``covered cost''--
       (A) means--
       (i) the amount of an annual premium with respect to any 
     policy for flood insurance under the National Flood Insurance 
     Program;
       (ii) any surcharge imposed with respect to a policy 
     described in clause (i) (other than a surcharge imposed under 
     section 1304(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4011(b))), including a surcharge imposed under 
     section 1308A(a) of that Act (42 U.S.C. 4015a(a)); and
       (iii) a fee described in paragraph (1)(B)(iii) or (2) of 
     section 1307(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4014(a)); and
       (B) does not include any cost associated with the purchase 
     of insurance under section 1304(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011(b)), including any 
     surcharge that relates to insurance purchased under such 
     section 1304(b).
       (b) Limitation on Increases.--
       (1) Limitation.--
       (A) In general.--During the 5-year period beginning on the 
     date of enactment of this Act, notwithstanding section 
     1308(e) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4015(e)), and subject to subparagraph (B), the 
     Administrator may not, in any year, increase the amount of 
     any covered cost by an amount that is more than 9 percent, as 
     compared with the amount of the covered cost during the 
     previous year, except where the increase in the covered cost 
     relates to an exception under paragraph (1)(C)(iii) of such 
     section 1308(e).
       (B) Decrease of amount of deductible or increase in amount 
     of coverage.--In the case of a policyholder described in 
     section 1308(e)(1)(C)(ii) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4015(e)(1)(C)(ii)), the Administrator 
     shall establish a process by which the Administrator 
     determines an increase in covered costs for the policyholder 
     that is--
       (i) proportional to the relative change in risk based on 
     the action taken by the policyholder; and
       (ii) in compliance with subparagraph (A).
       (2) New rating systems.--
       (A) Classification.--With respect to a property, the 
     limitation under paragraph (1) shall remain in effect for 
     each year until the covered costs with respect to the 
     property reflect full actuarial rates, without regard to 
     whether, at any time until the year in which those covered 
     costs reflect full actuarial rates, the property is rated or 
     classified under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology).
       (B) New policyholder.--If a property to which the 
     limitation under paragraph (1) applies is sold before the 
     covered costs for the property reflect full actuarial rates 
     determined under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology), that limitation shall 
     remain in effect for each year until the year in which those 
     full actuarial rates takes effect.
       (c) Rule of Construction.--Nothing in subsection (b) may be 
     construed as prohibiting the Administrator from reducing, in 
     any year, the amount of any covered cost, as compared with 
     the amount of the covered cost during the previous year.
       (d) Average Historical Loss Year.--Section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year' shall be 
     computed in accordance with generally accepted actuarial 
     principles.''.
       (e) Disclosure With Respect to the Affordability 
     Standard.--Section 1308(j) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second 
     sentence, by inserting ``and shall include in the report the 
     number of those exceptions as of the date on which the 
     Administrator submits the report and the location of each 
     policyholder insured under those exceptions, organized by 
     county and State'' after ``of the Senate''.

     SEC. ___. TARGETED MEANS-TESTED ASSISTANCE.

       (a) In General.--Chapter I of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting 
     after section 1308A (42 U.S.C. 4015a) the following:

[[Page S6028]]

  


     ``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.

       ``(a) Definitions.--In this section:
       ``(1) Covered property.--The term `covered property' 
     means--
       ``(A) a primary residential dwelling designed for the 
     occupancy of from 1 to 4 families; or
       ``(B) personal property relating to a dwelling described in 
     subparagraph (A).
       ``(2) Eligible policyholder.--The term `eligible 
     policyholder' means a policyholder with a household income 
     that is not more than 120 percent of the area median income 
     for the area in which the property to which the policy 
     applies is located.
       ``(3) Housing expenses.--The term `housing expenses' means, 
     with respect to a household, the total amount that the 
     household spends in a year on--
       ``(A) mortgage payments, and rent;
       ``(B) property taxes;
       ``(C) homeowners insurance; and
       ``(D) premiums for flood insurance under the national flood 
     insurance program.
       ``(4) Insurance costs.--The term `insurance costs' means, 
     with respect to a covered property for a year--
       ``(A) risk premiums and fees estimated under section 1307 
     and charged under section 1308;
       ``(B) surcharges assessed under sections 1304 and 1308A; 
     and
       ``(C) any amount established under section 1310A(c).
       ``(b) Authority.--Subject to the availability of 
     appropriations, the Administrator is authorized to carry out 
     a means-tested program under which the Administrator provides 
     assistance to eligible policyholders in the form of graduated 
     discounts for insurance costs with respect to covered 
     properties.
       ``(c) Eligibility.--To determine eligibility for means-
     tested assistance under this section, the Administrator may 
     require any of the following with respect to an eligible 
     policyholder:
       ``(2) Income verification from the National Directory of 
     New Hires established under section 453(i) of the Social 
     Security Act (42 U.S.C. 653(i)).
       ``(3) A self-certification of eligibility by the eligible 
     policyholder that is provided under penalty of perjury 
     pursuant to section 1746 of title 28, United States Code.
       ``(4) Any other method identified by the Administrator in 
     interim guidance, or a final rule, issued under subsection 
     (e).
       ``(d) Discount.--The Administrator may establish graduated 
     discounts available to eligible policyholders under this 
     section, which may be based on the following factors:
       ``(1) The percentage by which the household income of an 
     eligible policyholder is equal to, or less than, 120 percent 
     of the area median income for the area in which the property 
     to which the policy applies is located.
       ``(3) The number of eligible policyholders participating in 
     the program established under this section.
       ``(4) The availability of funding.
       ``(5) Any other factor that the Administrator finds 
     reasonable and necessary to carry out the purposes of this 
     section.
       ``(e) Implementation.--
       ``(1) In general.--The Administrator shall issue final 
     rules to implement this section.
       ``(2) Interim guidance.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this section, the Administrator shall issue 
     interim guidance to implement this section, which shall--
       ``(i) include--

       ``(I) a description of how the Administrator will 
     determine--

       ``(aa) eligibility for households to participate in the 
     program established under this section; and
       ``(bb) assistance levels for eligible households to which 
     assistance is provided under this section;

       ``(II) the methodology that the Administrator will use to 
     determine the amount of assistance provided to eligible 
     households under this section; and
       ``(III) any requirements to which eligible policyholders to 
     which assistance is provided under this section will be 
     subject; and

       ``(ii) expire on the later of--

       ``(I) the date that is 84 months after the date of 
     enactment of this section; or
       ``(II) the date on which the final rules issued under 
     paragraph (1) take effect.

       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     may be construed to preclude the Administrator from amending 
     the interim guidance issued under that subparagraph.
       ``(f) Collection of Demographic Information.--The 
     Administrator, in order to evaluate and monitor the 
     effectiveness of this section, and to comply with the 
     reporting requirements under subsection (g), may request 
     demographic information, and other information, with respect 
     to an eligible policyholder to which assistance is provided 
     under this section, which may include--
       ``(1) the income of the eligible policyholder, as compared 
     with the area median income for the area in which the 
     property to which the policy applies is located; and
       ``(2) demographic characteristics of the eligible 
     policyholder, including the race and ethnicity of the 
     eligible policyholder.
       ``(g) Reports to Congress.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this section, and biennially thereafter, the 
     Administrator shall submit to Congress a report regarding the 
     implementation and effectiveness of this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include information regarding, for the period covered 
     by the report--
       ``(A) the distribution of household area median income for 
     eligible policyholders to which assistance is provided under 
     this section;
       ``(B) the number of eligible policyholders to which 
     assistance is provided under this section, which shall be 
     disaggregated by income and demographic characteristics;
       ``(C) the cost of providing assistance under this section; 
     and
       ``(D) the average amount of assistance provided to an 
     eligible policyholder under this section, which shall be 
     disaggregated as described in subparagraph (B).
       ``(h) Risk Communication.--For the purposes of the 
     communication required under section 1308(l), the 
     Administrator shall provide to an eligible policyholder to 
     which assistance is provided under this section a full flood 
     risk determination with respect to the property of the 
     eligible policyholder, which shall reflect the insurance 
     costs with respect to the property before that assistance is 
     provided.
       ``(i) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administrator $800,000,000 for each 
     of fiscal years 2022 through 2025 to carry out this section.
       ``(2) Notification.--If, in a fiscal year, the 
     Administrator determines that the amount made available to 
     carry out this section is insufficient to provide assistance 
     under this section, the Administrator shall submit to 
     Congress a notification of the remaining amounts necessary to 
     provide that assistance for that fiscal year.
       ``(3) Distribution of premium.--With respect to the amount 
     of the discounts provided under this section in a fiscal 
     year, and any administrative expenses incurred in carrying 
     out this section for that fiscal year, the Administrator 
     shall, from amounts made available to carry out this section 
     for that fiscal year, deposit in the National Flood Insurance 
     Fund established under section 1310 an amount equal to those 
     discounts and administrative expenses, except to the extent 
     that section 1310A applies to any portion of those discounts 
     or administrative expenses, in which case the Administrator 
     shall deposit an amount equal to those amounts to which 
     section 1310A applies in the National Flood Insurance Reserve 
     Fund established under section 1310A.''.
       (b) National Flood Insurance Act of 1968.--The National 
     Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 
     amended--
       (1) in section 1308(e) (42 U.S.C. 4015(e))--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``or'' at the end;
       (ii) in subparagraph (C)(iii), by adding ``or'' at the end; 
     and
       (iii) by adding at the end the following:
       ``(D) in the case of a property with respect to which 
     assistance is provided under section 1308B, if--
       ``(i) the applicable policyholder is no longer eligible to 
     receive assistance under that section;
       ``(ii) the assistance so provided has been decreased under 
     that section; or
       ``(iii) the Administrator is not authorized, or lacks 
     appropriated funds, to carry out that section;''; and
       (B) in paragraph (3), by striking ``period; and'' and 
     inserting the following: ``period, except in the case of a 
     property with respect to which assistance is provided under 
     section 1308B if a condition described in clause (i), (ii), 
     or (iii) of paragraph (1)(D) is applicable; and''; and
       (2) in section 1366(d) (42 U.S.C. 4104c(d))--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following:
       ``(3) Flood insurance assistance.--In the case of 
     mitigation activities to structures insured by policyholders 
     that are eligible for assistance under section 1308B, in an 
     amount up to 100 percent of all eligible costs.''.
       (c) Information Comparisons With the National Directory of 
     New Hires for Flood Insurance Assistance Income 
     Verification.--Section 453(j) of the Social Security Act (42 
     U.S.C. 653(j)) is amended by adding at the end the following 
     new paragraph:
       ``(12) Information comparisons for flood insurance 
     assistance.--
       ``(A) Furnishing of information by fema.--The Administrator 
     of the Federal Emergency Management Agency (in this 
     paragraph, referred to as the `Administrator') shall furnish 
     to the Secretary, on such periodic basis as determined by the 
     Administrator in consultation with the Secretary, information 
     in the custody of the Administrator for comparison with 
     information in the National Directory of New Hires, in order 
     to obtain information in such Directory with respect to 
     individuals who are applying for, or receiving benefits 
     under, section 1308B of the National Flood Insurance Act of 
     1968.
       ``(B) Requirement to seek minimum information.--The 
     Administrator shall seek information pursuant to this 
     paragraph only to the extent necessary to verify the 
     employment and income of individuals described in 
     subparagraph (A).
       ``(C) Duties of the secretary.--

[[Page S6029]]

       ``(i) Information disclosure.--The Secretary, in 
     cooperation with the Administrator, shall compare information 
     in the National Directory of New Hires with information 
     provided by the Administrator with respect to individuals 
     described in subparagraph (A), and shall disclose information 
     in such Directory regarding such individuals to the 
     Administrator, in accordance with this paragraph, for the 
     purposes specified in this paragraph.
       ``(ii) Condition on disclosure.--The Secretary shall make 
     disclosures in accordance with clause (i) only to the extent 
     that the Secretary determines that such disclosures do not 
     interfere with the effective operation of the program under 
     this part.
       ``(D) Use of information by fema.--The Administrator may 
     use information resulting from a data match pursuant to this 
     paragraph only--
       ``(i) for the purpose of verifying the employment and 
     income of individuals described in subparagraph (A); and
       ``(ii) after removal of personal identifiers, to conduct 
     analyses of the employment and income reporting of 
     individuals described in subparagraph (A).
       ``(E) Disclosure of information by fema.--
       ``(i) Purpose of disclosure.--The Administrator may make a 
     disclosure under this subparagraph only for the purpose of 
     verifying the employment and income of individuals described 
     in subparagraph (A).
       ``(ii) Disclosures permitted.--Subject to clause (iii), the 
     Administrator may disclose information resulting from a data 
     match pursuant to this paragraph only to contractors of the 
     Federal Emergency Management Agency, private insurance 
     companies participating in the Write Your Own Program of the 
     Federal Emergency Management Agency, the Inspector General of 
     the Department of Homeland Security, and the Attorney 
     General, in connection with the administration of a program 
     described in subparagraph (A). Information obtained by the 
     Administrator pursuant to this paragraph shall not be made 
     available under section 552 of title 5, United States Code.
       ``(iii) Conditions on disclosure.--Disclosures under this 
     paragraph shall be--

       ``(I) made in accordance with data security and control 
     policies established by the Administrator and approved by the 
     Secretary;
       ``(II) subject to audit in a manner satisfactory to the 
     Secretary; and
       ``(III) subject to the sanctions under subsection (l)(2).

       ``(iv) Restrictions on redisclosure.--A person or entity to 
     which information is disclosed under this subparagraph may 
     use or disclose such information only as needed for verifying 
     the employment and income of individuals described in 
     subparagraph (A), subject to the conditions in clause (iii) 
     and such additional conditions as agreed to by the Secretary 
     and the Administrator.
       ``(F) Reimbursement of hhs costs.--The Administrator shall 
     reimburse the Secretary, in accordance with subsection 
     (k)(3), for the costs incurred by the Secretary in furnishing 
     the information requested under this paragraph.
       ``(G) Consent.--The Administrator shall not seek, use, or 
     disclose information under this paragraph relating to an 
     individual without the prior written consent of such 
     individual (or of a person legally authorized to consent on 
     behalf of such individual).''.
       (d) Direct Appropriation.--
       (1) In general.--There is appropriated, out of any money in 
     the Treasury not otherwise appropriated, in addition to 
     amounts otherwise available, for each of fiscal years 2022 
     through 2025, $800,000,000 to the National Flood Insurance 
     Fund established under section 1310 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4017), which, subject to 
     paragraph (2), shall be used to carry out section 1308B of 
     that Act, as added by subsection (a) of this section.
       (2) Failure to issue guidance.--If the Administrator of the 
     Federal Emergency Management Agency fails to issue the 
     interim guidance required under section 1308B(e)(2) of the 
     National Flood Insurance Act of 1968, as added by subsection 
     (a) of this section, the amounts made available under 
     paragraph (1) may be used to provide financial assistance 
     under section 1366 of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4104c).

     SEC. ___. FORBEARANCE ON NFIP INTEREST PAYMENTS.

       (a) In General.--During the 5-year period beginning on the 
     date of enactment of this Act, the Secretary of the Treasury 
     may not charge the Administrator of the Federal Emergency 
     Management Agency (referred to in this section as the 
     ``Administrator'') interest on amounts borrowed by the 
     Administrator under section 1309(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) that were 
     outstanding as of the date of enactment of this Act, 
     including amounts borrowed after the date of enactment of 
     this Act that refinance debts that existed before the date of 
     enactment of this Act.
       (b) Use of Saved Amounts.--There shall be deposited into 
     the National Flood Mitigation Fund an amount equal to the 
     interest that would have accrued on the borrowed amounts 
     during the 5-year period described in subsection (a) at the 
     time at which those interest payments would have otherwise 
     been paid, which, notwithstanding any provision of section 
     1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104d), the Administrator shall use to carry out the program 
     established under section 1366 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104c).
       (c) No Retroactive Accrual.--After the 5-year period 
     described in subsection (a), the Secretary of the Treasury 
     shall not require the Administrator to repay any interest 
     that, but for that subsection, would have accrued on the 
     borrowed amounts described in that subsection during that 5-
     year period.
                                 ______