Rep. Dennis A. Ross Lauds House Passage of Much-Needed Flood Reform

November 14, 2017

Contact: J.P. Freire (202) 225-0782

Rep. Dennis A. Ross Lauds House Passage of Much-Needed Flood Reform

Congress moves forward to help communities in Florida and beyond deal with floods

WASHINGTON, D.C. - U.S. Rep. Dennis A. Ross (R-FL-15), Senior Deputy Majority Whip, lauded the House passage of the 21st Century Flood Reform Act, which would reauthorize the National Flood Insurance Program for five years, introduce private market competition, and provide real reforms to help policyholders affected by floods, particularly communities in the Tampa Bay area. The bill includes Rep. Ross's reforms that would private greater market access, competition, and consumer choice that were central to the Ross-Castor Flood Insurance Market Parity and Modernization Act.

"With today's vote, the House is advancing a solution to the problems that have made national flood insurance program both too big to fail and yet absolutely bound to fail," said Rep. Ross. "The bill includes crucial reforms I've developed to provide greater private market access, competition, and consumer choice. These changes will help real people save real money and improve our nation's resiliency against severe floods."

In remarks on the Floor earlier today, Rep. Ross urged passage of the reform bill. The video and transcript appears below.

[https://www.c-span.org/video/?c4691610/rep-dennis-ross-americans-need-real-insurance-floods]

Transcript:

Mr. Speaker, I'm proud to rise in support of this rule and H.R. 2874 the underlying bill.

Homeowners deserve choice, they deserve competition, and above all they deserve to know the true risk their homes face from floods - the most costly of all natural disasters.

I believe the underlying bill means the freedom to insure against obvious danger that imperils people's homes, and their wallets.

I am particularly enthusiastic about the inclusion of my bipartisan legislation to facilitate the development of a robust private flood insurance marketplace.

After months, even years of negotiations, we've produced legislation that appropriately balances the need for affordable flood insurance, with our responsibility to act as faithful stewards of taxpayer dollars.

Everyone knows that our National Flood Insurance Program (NFIP) is broken. We should act accordingly. We need to fix it. But before we do that, we must agree to proceed.

Less than a month ago, many of us voted to bailout this floundering program, forgiving 16 billion dollars in debt. But we knew that it would be irresponsible to merely kick the can down the road again. This is the opportunity to make things right.

I believe we need to proceed with debate because we need to have a responsible conversation about fixing this problem before it gets worse.

Americans deserve better than a big-government insurance monopoly that's unable to pay for the risk it insures.

The 21st Century Flood Reform Act will usher in a new era of consumer choice, competition, and affordability, by empowering policyholders to purchase the insurance product that best meets their needs.

We're getting rid of the top-down, single-payer approach to insurance where we pretend there's no danger until there is a tragedy.

Giving consumers' choice in a competitive marketplace will not only drive down costs, but also help us reduce the unacceptable number of homes that are not protected by flood insurance.

The NFIP can be an important tool for mitigating flood risks and helping families recover after disaster strikes. But it cannot be the only tool.

A federal program that conceals actual risk through artificially low rates is neither compassionate nor responsible.

People deserve to know they're in danger. When the federal government provides them with information that suggests otherwise, we do more harm than good.

We cannot expect to have educated, thoughtful consumers if we deprive them of the market information that is needed to make smart decisions.

By putting policyholders on a slow path to sound premium rates, we are stepping towards a future where the threats of major floods are confronted before they are realized.

I think we all agree that more needs to be done to mitigate flood risk and incentivize investments in resiliency. We can take the first steps by eliminating the false security that inoculates our society to the dangers of flooding. Let's remove the blindfold we've placed over the public's eyes. Let's gradually walk-back the subsidies that conceal a homeowner's risk.

It is time for this nation to confront this threat with clear eyes and a vision for the future. This bill is the first step in the right direction.

In closing, I want to thank Chairman Hensarling and our Housing and Insurance subcommittee chairman Mr. Duffy for their tenacity and commitment to paving the way for a safer and more affordable system for managing flood risks in this country.

Flood insurance is one of those rare issues that transcends traditional political boundaries, it is complex and difficult to reform; but thanks to their hard work and dedication, I'm hopeful that we have finally found a path forward.

Let's support the freedom to insure against obvious danger that imperils people's homes, and all their wallets. Let's support informed decision making.

I once again urge my colleagues to vote yes on this rule and yield back.

J.P. Freire

Director of Communications and Policy Advisor

Congressman Dennis A. Ross, R-Florida

(o) 202-225-0782

(m) 202-503-8755