S.Amdt. 2649

SA 2649. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for
herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms.
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the
bill H.R. 3684, to authorize funds for Federal-aid highways, highway
safety programs, and transit programs, and for other purposes; which
was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. CAP ON ANNUAL PREMIUM INCREASES.

(a) Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Federal Emergency Management Agency; and
(2) the term ``covered cost''--
(A) means--
(i) the amount of an annual premium with respect to any
policy for flood insurance under the National Flood Insurance
Program;
(ii) any surcharge imposed with respect to a policy
described in clause (i) (other than a surcharge imposed under
section 1304(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4011(b))), including a surcharge imposed under
section 1308A(a) of that Act (42 U.S.C. 4015a(a)); and
(iii) a fee described in paragraph (1)(B)(iii) or (2) of
section 1307(a) of the National Flood Insurance Act of 1968
(42 U.S.C. 4014(a)); and
(B) does not include any cost associated with the purchase
of insurance under section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)), including any
surcharge that relates to insurance purchased under such
section 1304(b).
(b) Limitation on Increases.--
(1) Limitation.--
(A) In general.--During the 5-year period beginning on the
date of enactment of this Act, notwithstanding section
1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)), and subject to subparagraph (B), the
Administrator may not, in any year, increase the amount of
any covered cost by an amount that is more than 9 percent, as
compared with the amount of the covered cost during the
previous year, except where the increase in the covered cost
relates to an exception under paragraph (1)(C)(iii) of such
section 1308(e).
(B) Decrease of amount of deductible or increase in amount
of coverage.--In the case of a policyholder described in
section 1308(e)(1)(C)(ii) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015(e)(1)(C)(ii)), the Administrator
shall establish a process by which the Administrator
determines an increase in covered costs for the policyholder
that is--
(i) proportional to the relative change in risk based on
the action taken by the policyholder; and
(ii) in compliance with subparagraph (A).
(2) New rating systems.--
(A) Classification.--With respect to a property, the
limitation under paragraph (1) shall remain in effect for
each year until the covered costs with respect to the
property reflect full actuarial rates, without regard to
whether, at any time until the year in which those covered
costs reflect full actuarial rates, the property is rated or
classified under the Risk Rating 2.0 methodology (or any
substantially similar methodology).
(B) New policyholder.--If a property to which the
limitation under paragraph (1) applies is sold before the
covered costs for the property reflect full actuarial rates
determined under the Risk Rating 2.0 methodology (or any
substantially similar methodology), that limitation shall
remain in effect for each year until the year in which those
full actuarial rates takes effect.
(c) Rule of Construction.--Nothing in subsection (b) may be
construed as prohibiting the Administrator from reducing, in
any year, the amount of any covered cost, as compared with
the amount of the covered cost during the previous year.
(d) Average Historical Loss Year.--Section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015) is
amended by striking subsection (h) and inserting the
following:
``(h) Rule of Construction.--For purposes of this section,
the calculation of an `average historical loss year' shall be
computed in accordance with generally accepted actuarial
principles.''.
(e) Disclosure With Respect to the Affordability
Standard.--Section 1308(j) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second
sentence, by inserting ``and shall include in the report the
number of those exceptions as of the date on which the
Administrator submits the report and the location of each
policyholder insured under those exceptions, organized by
county and State'' after ``of the Senate''.

SEC. ___. TARGETED MEANS-TESTED ASSISTANCE.

(a) In General.--Chapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting
after section 1308A (42 U.S.C. 4015a) the following:

[[Page S6028]]

``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.

``(a) Definitions.--In this section:
``(1) Covered property.--The term `covered property'
means--
``(A) a primary residential dwelling designed for the
occupancy of from 1 to 4 families; or
``(B) personal property relating to a dwelling described in
subparagraph (A).
``(2) 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.
``(3) Housing expenses.--The term `housing expenses' means,
with respect to a household, the total amount that the
household spends in a year on--
``(A) mortgage payments, and rent;
``(B) property taxes;
``(C) homeowners insurance; and
``(D) premiums for flood insurance under the national flood
insurance program.
``(4) Insurance costs.--The term `insurance costs' means,
with respect to a covered property for a year--
``(A) risk premiums and fees estimated under section 1307
and charged under section 1308;
``(B) surcharges assessed under sections 1304 and 1308A;
and
``(C) any amount established under section 1310A(c).
``(b) Authority.--Subject to the availability of
appropriations, the Administrator is authorized to carry out
a means-tested program under which the Administrator provides
assistance to eligible policyholders in the form of graduated
discounts for insurance costs with respect to covered
properties.
``(c) Eligibility.--To determine eligibility for means-
tested assistance under this section, the Administrator may
require any of the following with respect to an eligible
policyholder:
``(2) Income verification from the National Directory of
New Hires established under section 453(i) of the Social
Security Act (42 U.S.C. 653(i)).
``(3) A self-certification of eligibility by the eligible
policyholder that is provided under penalty of perjury
pursuant to section 1746 of title 28, United States Code.
``(4) Any other method identified by the Administrator in
interim guidance, or a final rule, issued under subsection
(e).
``(d) Discount.--The Administrator may establish graduated
discounts available to eligible policyholders under this
section, which may be based on the following factors:
``(1) The percentage by which the household income of an
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.
``(3) The number of eligible policyholders participating in
the program established under this section.
``(4) The availability of funding.
``(5) Any other factor that the Administrator finds
reasonable and necessary to carry out the purposes of this
section.
``(e) Implementation.--
``(1) In general.--The Administrator shall issue final
rules to implement this section.
``(2) Interim guidance.--
``(A) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator shall issue
interim guidance to implement this section, which shall--
``(i) include--

``(I) a description of how the Administrator will
determine--

``(aa) eligibility for households to participate in the
program established under this section; and
``(bb) assistance levels for eligible households to which
assistance is provided under this section;

``(II) the methodology that the Administrator will use to
determine the amount of assistance provided to eligible
households under this section; and
``(III) any requirements to which eligible policyholders to
which assistance is provided under this section will be
subject; and

``(ii) expire on the later of--

``(I) the date that is 84 months after the date of
enactment of this section; or
``(II) the date on which the final rules issued under
paragraph (1) take effect.

``(B) Rule of construction.--Nothing in subparagraph (A)
may be construed to preclude the Administrator from amending
the interim guidance issued under that subparagraph.
``(f) Collection of Demographic Information.--The
Administrator, in order to evaluate and monitor the
effectiveness of this section, and to comply with the
reporting requirements under subsection (g), may request
demographic information, and other information, with respect
to an eligible policyholder to which assistance is provided
under this section, which may include--
``(1) the income of the eligible policyholder, as compared
with the area median income for the area in which the
property to which the policy applies is located; and
``(2) demographic characteristics of the eligible
policyholder, including the race and ethnicity of the
eligible policyholder.
``(g) Reports to Congress.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, and biennially thereafter, the
Administrator shall submit to Congress a report regarding the
implementation and effectiveness of this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include information regarding, for the period covered
by the report--
``(A) the distribution of household area median income for
eligible policyholders to which assistance is provided under
this section;
``(B) the number of eligible policyholders to which
assistance is provided under this section, which shall be
disaggregated by income and demographic characteristics;
``(C) the cost of providing assistance under this section;
and
``(D) the average amount of assistance provided to an
eligible policyholder under this section, which shall be
disaggregated as described in subparagraph (B).
``(h) Risk Communication.--For the purposes of the
communication required under section 1308(l), the
Administrator shall provide to an eligible policyholder to
which assistance is provided under this section a full flood
risk determination with respect to the property of the
eligible policyholder, which shall reflect the insurance
costs with respect to the property before that assistance is
provided.
``(i) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Administrator $800,000,000 for each
of fiscal years 2022 through 2025 to carry out this section.
``(2) Notification.--If, in a fiscal year, the
Administrator determines that the amount made available to
carry out this section is insufficient to provide assistance
under this section, the Administrator shall submit to
Congress a notification of the remaining amounts necessary to
provide that assistance for that fiscal year.
``(3) Distribution of premium.--With respect to the amount
of the discounts provided under this section in a fiscal
year, and any administrative expenses incurred in carrying
out this section for that fiscal year, the Administrator
shall, from amounts made available to carry out this section
for that fiscal year, deposit in the National Flood Insurance
Fund established under section 1310 an amount equal to those
discounts and administrative expenses, except to the extent
that section 1310A 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
section 1310A applies in the National Flood Insurance Reserve
Fund established under section 1310A.''.
(b) National Flood Insurance Act of 1968.--The National
Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is
amended--
(1) in section 1308(e) (42 U.S.C. 4015(e))--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``or'' at the end;
(ii) in subparagraph (C)(iii), by adding ``or'' at the end;
and
(iii) by adding at the end the following:
``(D) in the case of a property with respect to which
assistance is provided under section 1308B, if--
``(i) the applicable policyholder is no longer eligible to
receive assistance under that section;
``(ii) the assistance so provided has been decreased under
that section; or
``(iii) the Administrator is not authorized, or lacks
appropriated funds, to carry out that section;''; and
(B) in paragraph (3), by striking ``period; and'' and
inserting the following: ``period, except in the case of a
property with respect to which assistance is provided under
section 1308B if a condition described in clause (i), (ii),
or (iii) of paragraph (1)(D) is applicable; and''; and
(2) in section 1366(d) (42 U.S.C. 4104c(d))--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Flood insurance assistance.--In the case of
mitigation activities to structures insured by policyholders
that are eligible for assistance under section 1308B, in an
amount up to 100 percent of all eligible costs.''.
(c) Information Comparisons With the National Directory of
New Hires for Flood Insurance Assistance Income
Verification.--Section 453(j) of the Social Security Act (42
U.S.C. 653(j)) is amended by adding at the end the following
new paragraph:
``(12) Information comparisons for flood insurance
assistance.--
``(A) Furnishing of information by fema.--The Administrator
of the Federal Emergency Management Agency (in this
paragraph, referred to as the `Administrator') shall furnish
to the Secretary, on such periodic basis as determined by the
Administrator in consultation with the Secretary, information
in the custody of the Administrator for comparison with
information in the National Directory of New Hires, in order
to obtain information in such Directory with respect to
individuals who are applying for, or receiving benefits
under, section 1308B of the National Flood Insurance Act of
1968.
``(B) Requirement to seek minimum information.--The
Administrator shall seek information pursuant to this
paragraph only to the extent necessary to verify the
employment and income of individuals described in
subparagraph (A).
``(C) Duties of the secretary.--

[[Page S6029]]

``(i) Information disclosure.--The Secretary, in
cooperation with the Administrator, shall compare information
in the National Directory of New Hires with information
provided by the Administrator with respect to individuals
described in subparagraph (A), and shall disclose information
in such Directory regarding such individuals to the
Administrator, in accordance with this paragraph, for the
purposes specified in this paragraph.
``(ii) Condition on disclosure.--The Secretary shall make
disclosures in accordance with clause (i) only to the extent
that the Secretary determines that such disclosures do not
interfere with the effective operation of the program under
this part.
``(D) Use of information by fema.--The Administrator may
use information resulting from a data match pursuant to this
paragraph only--
``(i) for the purpose of verifying the employment and
income of individuals described in subparagraph (A); and
``(ii) after removal of personal identifiers, to conduct
analyses of the employment and income reporting of
individuals described in subparagraph (A).
``(E) Disclosure of information by fema.--
``(i) Purpose of disclosure.--The Administrator may make a
disclosure under this subparagraph only for the purpose of
verifying the employment and income of individuals described
in subparagraph (A).
``(ii) Disclosures permitted.--Subject to clause (iii), the
Administrator may disclose information resulting from a data
match pursuant to this paragraph only to contractors of the
Federal Emergency Management Agency, private insurance
companies participating in the Write Your Own Program of the
Federal Emergency Management Agency, the Inspector General of
the Department of Homeland Security, and the Attorney
General, in connection with the administration of a program
described in subparagraph (A). Information obtained by the
Administrator pursuant to this paragraph shall not be made
available under section 552 of title 5, United States Code.
``(iii) Conditions on disclosure.--Disclosures under this
paragraph shall be--

``(I) made in accordance with data security and control
policies established by the Administrator and approved by the
Secretary;
``(II) subject to audit in a manner satisfactory to the
Secretary; and
``(III) subject to the sanctions under subsection (l)(2).

``(iv) Restrictions on redisclosure.--A person or entity to
which information is disclosed under this subparagraph may
use or disclose such information only as needed for verifying
the employment and income of individuals described in
subparagraph (A), subject to the conditions in clause (iii)
and such additional conditions as agreed to by the Secretary
and the Administrator.
``(F) Reimbursement of hhs costs.--The Administrator shall
reimburse the Secretary, in accordance with subsection
(k)(3), for the costs incurred by the Secretary in furnishing
the information requested under this paragraph.
``(G) Consent.--The Administrator shall not seek, use, or
disclose information under this paragraph relating to an
individual without the prior written consent of such
individual (or of a person legally authorized to consent on
behalf of such individual).''.
(d) Direct Appropriation.--
(1) In general.--There is appropriated, out of any money in
the Treasury not otherwise appropriated, in addition to
amounts otherwise available, for each of fiscal years 2022
through 2025, $800,000,000 to the National Flood Insurance
Fund established under section 1310 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017), which, subject to
paragraph (2), shall be used to carry out section 1308B of
that Act, as added by subsection (a) of this section.
(2) Failure to issue guidance.--If the Administrator of the
Federal Emergency Management Agency fails to issue the
interim guidance required under section 1308B(e)(2) of the
National Flood Insurance Act of 1968, as added by subsection
(a) of this section, the amounts made available under
paragraph (1) may be used to provide financial assistance
under section 1366 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104c).

SEC. ___. FORBEARANCE ON NFIP INTEREST PAYMENTS.

(a) In General.--During the 5-year period beginning on the
date of enactment of this Act, the Secretary of the Treasury
may not charge the Administrator of the Federal Emergency
Management Agency (referred to in this section as the
``Administrator'') interest on amounts borrowed by the
Administrator under section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) that were
outstanding as of the date of enactment of this Act,
including amounts borrowed after the date of enactment of
this Act that refinance debts that existed before the date of
enactment of this Act.
(b) Use of Saved Amounts.--There shall be deposited into
the National Flood Mitigation Fund an amount equal to the
interest that would have accrued on the borrowed amounts
during the 5-year period described in subsection (a) at the
time at which those interest payments would have otherwise
been paid, which, notwithstanding any provision of section
1367 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104d), the Administrator shall use to carry out the program
established under section 1366 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104c).
(c) No Retroactive Accrual.--After the 5-year period
described in subsection (a), the Secretary of the Treasury
shall not require the Administrator to repay any interest
that, but for that subsection, would have accrued on the
borrowed amounts described in that subsection during that 5-
year period.
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