Garbarino and Gottheimer Introduce Bipartisan FLOAT Act to Reduce Flood Insurance Costs

In a move to provide financial relief to homeowners facing rising flood insurance costs, Congressmen Andrew R. Garbarino (R, NY-02) and Josh Gottheimer (D, NJ-05) have introduced the bipartisan Flood Loss Offset and Affordability Tax Credit (FLOAT) Act. This legislation offers a tax credit of up to $1,000 for households earning under $200,000 annually to help manage the expenses associated with flood insurance premiums, whether through the National Flood Insurance Program (NFIP) or private insurers. For joint filers, the income cap extends to $400,000, with a phased reduction for higher incomes.

The FLOAT Act aims to make flood insurance more affordable and accessible, addressing the financial strain many homeowners face in flood-prone areas. By making insurance more affordable, the legislation encourages homeowners to maintain essential coverage, reducing the long-term financial risks of flooding. Congressman Garbarino, representing Long Island communities highly vulnerable to coastal flooding, underscored the importance of the FLOAT Act for these areas.

“Long Islanders know firsthand the impact of flooding and the importance of being prepared. This legislation provides a critical incentive for homeowners to protect their properties without breaking the bank,” said Garbarino. “With instances of severe weather on the rise, the FLOAT Act ensures that families in my district can afford flood insurance coverage, enabling them to recover quickly and avoid devastating financial losses”.

Congressman Gottheimer understands Garbarino’s sentiment given New Jersey’s effects from Superstorm Sandy, he appreciates the importance of financial tools that support homeowners in flood-prone regions.

One key feature of the FLOAT Act is its focus on primary residences, meaning the tax credit is limited to homeowners’ primary homes, ensuring that the benefit reaches those most likely to experience significant financial hardship due to flooding. Additionally, the credit is inflation-adjusted, a measure designed to maintain its effectiveness over time, especially as insurance costs and flood risks increase.

Homeowners in flood-prone areas often face rising premiums under the NFIP, which has implemented reforms to reflect updated risk models. However, these increased rates have resulted in higher costs, particularly impacting low- and middle-income households. According to recent FEMA data, premiums in certain high-risk flood zones can range from $1,000 to over $3,000 annually, straining family budgets and potentially discouraging necessary coverage. The FLOAT Act aims to address these affordability challenges and ensure that more families have the protection they need in the face of increasingly severe weather patterns.

The bipartisan support for the FLOAT Act reflects growing concerns over the impacts of climate change and extreme weather on American communities. The tax credit not only makes flood insurance more affordable but also incentivizes proactive measures that reduce the financial strain of potential future disasters. By lowering the cost barrier for flood insurance, the FLOAT Act enables more families to protect themselves from economic hardship in the wake of devastating floods.

With the introduction of the FLOAT Act, Representatives Garbarino and Gottheimer hope to secure swift congressional support, pushing for a legislative response to the rising risks and costs associated with flooding. If passed, the FLOAT Act could make flood insurance a more accessible tool for Americans in flood-prone areas, helping safeguard both personal and community resilience against the growing impacts of severe weather.