Gottheimer announces new, bipartisan legislation to make flood insurance more affordable

NEW JERSEY – U.S. Congressman Josh Gottheimer (NJ-5) Thursday announced new action and bipartisan legislation to help ensure families can afford flood insurance.

The bipartisan Flood Loss Offset and Affordability Tax Credit or  FLOAT Act, is co-lead by Congressman Andrew Garbarino (NY-02) and will provide a $1,000 annual tax credit for flood insurance, regardless of if it is purchased through private insurance or the National Flood Insurance Program.

Skyrocketing Flood Insurance Costs:

• As of 2022, ten years after superstorm Sandy, there has been a 15% decline in NFIP policies in New Jersey and there was a 6% decline in policies between September 2021 and June 2022 alone.
• Only about 27% of homeowners have flood insurance in the US.
• Flood insurance costs an average of $1,152 a year from the National Flood Insurance Program (NFIP).
• In 2023 alone, NFIP lost 100,000 policyholders and the program is estimated to lose hundreds of thousands more policy holders this year.

Extreme Storms Across New Jersey

• Flooding is New Jersey’s most common natural disaster.
• In New Jersey’s Fifth district, nearly 100,000 homes have a more than 80 percent chance of flood damage over the next 30 years.
• The sea level in Atlantic City has risen 15.8 inches since 1900, and nearly six inches since 1980.
• The number of New Jersey homes at risk of frequent flooding is up by about 110%. There are 27,000 more buildings worth a combined $15 billion that are now likely to flood at least once a year.

Gottheimer’s new efforts to protect residents from flooding and make life more affordable include:

• First, Gottheimer announced the bipartisan Flood Loss Offset and Affordability Tax Credit or FLOAT Act, which is co-lead with Congressman Andrew Garbarino (NY-02) and will provide a $1,000 annual tax credit for flood insurance.
  • By making flood insurance more affordable, this act will further assist families who are just trying to keep their heads above deep financial waters in the event of a disaster.
• Second, Gottheimer is leading a letter to the leadership of the House Financial Services Committee to pass the bipartisan National Flood Insurance Program Reauthorization and Reform Act.
  • This will not only extend the National Flood Insurance Program, or NFIP, which is set to expire, but it will also make key changes to it to modernize it and make it more affordable.
• Third, as a part of his continual efforts to provide disaster assistance, Gottheimer has also joined more than fifty colleagues on a letter to Speaker Johnson urging the House to come back into session to urgently approve emergency funding and help struggling families.
• Finally, Gottheimer called on Senators Schumer and McConnell to immediately bring the Federal Disaster Tax Relief Act for a vote in the Senate. It’s already passed the House and needs to get to the President’s desk. This legislation provides broader tax relief for those affected by recent disasters, including in New Jersey .

In total, Congressman Josh Gottheimer has clawed back more than $10 million in flood related assistance for communities and families to help secure the future of our great district.

“To keep families from drowning in premium costs, this bill will provide a $1,000 annual tax credit for flood insurance. By making flood insurance more affordable, this act will further assist families who are just trying to keep their heads above deep financial waters in the event of a disaster” Gottheimer said. “These are tough issues, but there is nothing partisan about natural disasters and helping our families. I know that if we work together through the good and the bad, through the clearest of skies and heaviest of rain, in the greatest country in the world, our best days will always be ahead of us.”