Strengthening resilience under national flood insurance program

(a) NFIP program activities (1) Cancellation All indebtedness of the Administrator of the Federal Emergency Management Agency under any notes or other obligations issued pursuant to section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) and section 15(e) of the Federal Insurance Act of 1956 (42 U.S.C. 2414(e)), and outstanding as of the date of the enactment of this Act, is hereby cancelled, the Administrator and the National Flood Insurance Fund are relieved of all liability under any such notes or other obligations, including for any interest due, including capitalized interest, and any other fees and charges payable in connection with such notes and obligations. (2) Use of savings for flood mapping In addition to amounts otherwise available, for each of fiscal years 2026 and 2026, an amount equal to the interest the National Flood Insurance Program would have accrued from servicing the canceled debt under paragraph (1) in that fiscal year, which shall be derived from offsetting amounts collected under section 1310(d) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(d)) and shall remain available until expended for activities identified in section 100216 (b)(1)(A) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)(A)) and related salaries and administrative expenses. (b) Means-Tested assistance for National Flood Insurance Program policyholders (1) Appropriation In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2028, to provide assistance to eligible policyholders in the form of graduated discounts for insurance costs with respect to covered properties. (2) Terms and conditions (A) Discounts The Administrator shall use funds provided under this subsection to establish graduated discounts available to eligible policyholders under this subsection, with respect to covered properties, which may be based on the following factors: (i) The percentage by which the household income of the 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. (ii) The number of eligible policyholders participating in the program authorized under this subsection. (iii) The availability of funding. (B) Distribution of premium With respect to the amount of the discounts provided under this subsection in a fiscal year, and any administrative expenses incurred in carrying out this subsection for that fiscal year, the Administrator shall, from amounts made available to carry out this subsection for that fiscal year, deposit in the National Flood Insurance Fund established under section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 4017) an amount equal to those discounts and administrative expenses, except to the extent that section 1310A of the National Flood Insurance Act of 1968 (42 U.S.C. 4017a) 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 such section 1310A applies in the National Flood Insurance Reserve Fund established under such section 1310A. (C) Requirement on timing Not later than 21 months after the date of the enactment of this section, the Administrator shall issue interim guidance to implement this subsection which shall expire on the later of— (i) the date that is 60 months after the date of the enactment of this section; or (ii) the date on which a final rule issued to implement this subsection takes effect. (3) Definitions In this subsection: (A) Administrator The term Administrator means the Administrator of the Federal Emergency Management Agency. (B) Covered property The term covered property means— (i) a primary residential dwelling designed for the occupancy of from 1 to 4 families; or (ii) personal property relating to a dwelling described in clause (i) or personal property in the primary residential dwelling of a renter. (C) 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. (D) Insurance costs The term insurance costs means insurance premiums, fees, and surcharges charged under the National Flood Insurance Program, with respect to a covered property for a year.