WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) led a group of nine Republican senators urging the Federal Emergency Management Agency (FEMA) to end the Risk Rating 2.0 policy, which they say has caused flood insurance premiums to rise sharply across the country.
“Since the Biden Administration’s rollout of Risk Rating 2.0, premiums under the National Flood Insurance Program (NFIP) increased in every state. By FEMA’s own estimates, 77 percent of all NFIP policies now pay more than under the old system,” said the senators.
“The lack of transparency surrounding Risk Rating 2.0 is beyond troubling. FEMA has never allowed for meaningful public comment nor has it published the underlying data or assumptions used to justify the steep premium increases and refuses to disclose its actuarial model. Without transparency, communities cannot plan mitigation projects, lenders cannot accurately underwrite mortgages, and citizens cannot appeal punitive rate increases. Worse still, rising costs encourage policy lapses—shifting risk back to taxpayers when disasters strike,” they continued.
Cassidy was joined by U.S. Senators John Kennedy (R-LA), Cindy Hyde-Smith (R-MS), Roger Wicker (R-MS), Shelley Moore Capito (R-WV), Jim Justice (R-WV), Katie Britt (R-AL), Tommy Tuberville (R-AL), and John Cornyn (R-TX).
In their letter to FEMA Acting Administrator David Richardson, the senators called for:
- Termination of the Risk Rating 2.0 pricing methodology;
- Publication of all actuarial inputs and outputs used for premium increases above 5 percent;
- Restoration of affordability measures for coastal, low-income, and historically underinsured communities.
They pointed to sharp increases in flood insurance premiums in several Republican-led states:
Louisiana:
- An estimated 80% of NFIP policyholders experienced monthly premium increases in 2025.
- Average premiums rose 234% in 2023.
- Over 52,000 policyholders left the program, many of them seniors.
West Virginia:
- 83% of policyholders saw higher premiums in 2025.
- Premiums rose by approximately 176%.
- About 600 residents dropped coverage in the past year.
Texas:
- 86% of policyholders experienced increases in 2025.
- Premiums rose approximately 53%.
- More than 26,000 residents left the NFIP.
Alabama:
- 79% of policyholders were affected by increases.
- Premiums rose by about 106%.
- Roughly 1,200 policyholders exited the program.
Mississippi:
- 84% of policyholders experienced increases.
- Premiums rose by approximately 103%.
- More than 2,200 dropped coverage in the past year.
The senators argue that Risk Rating 2.0 disproportionately affects rural, low-income, and coastal communities, pushing homeowners out of the program and leaving them vulnerable after natural disasters. They also raised concerns about the lack of transparency, claiming that FEMA’s refusal to share data and modeling assumptions prevents meaningful oversight or appeals.
“Time is of the essence,” the senators wrote. “Each month that Risk Rating 2.0 continues unchecked, more families are forced to abandon their insurance coverage, neighborhoods face economic strain, and entire communities risk collapse after the next disaster.”