This legislation, titled the "National Flood Insurance Program Reauthorization and Reform Act of 2025," extends the National Flood Insurance Program (NFIP) until September 30, 2030, and ensures its continued operation even during lapses in appropriations. It aims to make flood insurance more affordable by capping annual premium increases at 9% for five years and establishing a new means-tested assistance program for eligible policyholders with household incomes up to 140% of the area median income. This program will offer graduated discounts on insurance costs, funded by authorized appropriations and savings from reduced Write Your Own (WYO) company compensation.

The bill introduces several measures to improve mitigation and mapping efforts. It mandates that 10% of the Disaster Relief Fund be set aside for mitigation activities for high-risk properties, including severe repetitive loss structures and those facing significant premium increases under Risk Rating 2.0. Increased Cost of Compliance (ICC) coverage is expanded to $120,000 and now includes pre-disaster mitigation and acquisition/relocation projects. Furthermore, it prioritizes Flood Mitigation Assistance grants for properties with unaffordable premiums or repetitive losses and encourages urban mitigation strategies.

To enhance flood mapping, the bill requires the development of a dynamic, database-derived digital display environment for flood hazard risk, incorporating building-specific information and offering a premium credit for elevation certificates. It also establishes a new appeals process for flood insurance rate maps, allowing reimbursement for successful appeals based on scientific or technical errors. Additionally, the legislation mandates a streamlined appeals process for chargeable premium rates and sets specific rules for levee-protected areas.

Regarding NFIP solvency, the bill implements a 5-year forbearance on interest payments owed by the NFIP to the Treasury, redirecting the saved interest to the National Flood Mitigation Fund. It caps WYO company reimbursement at 22.46% of premiums and mandates a minimum 15% commission for agents. Transparency is increased by requiring public disclosure of WYO third-party service provider costs and reimbursements.

Policyholder protections are significantly strengthened through various provisions. A rebuttable presumption is created that foundation or structural damage after a flood is not caused by earth movement, unless an engineering report proves otherwise, with strict standards for such reports. An Independent Office for Policyholder Appeals is established for denied claims, requiring exhaustion of administrative remedies before judicial review. The bill also holds WYO companies accountable for underpayments and overpayments, with a safe harbor for good-faith overpayments.

Policyholders gain a "right to know" with mandated disclosure of all claim-related documents and technical assistance reports within one week of request. The bill sets a 60-day deadline for claim processing, with extensions for extraordinary circumstances and interest accrual for delays. It prohibits manipulation of engineer reports and requires their direct transmission to policyholders. Finally, the legislation improves training for floodplain managers, agents, and adjusters, establishes an Agent Advisory Council, and requires states to impose flood hazard disclosure duties on property sellers and lessors as a condition for NFIP coverage.