Senator Feinstein, Godspeed. I had the pleasure of serving with Senator Feinstein on the Judiciary Committee. I also served with Dianne on the Appropriations Committee. In fact, we served on the…
Senator Feinstein, Godspeed.
I had the pleasure of serving with Senator Feinstein on the Judiciary Committee. I also served with Dianne on the Appropriations Committee. In fact, we served on the Energy and Water Development Subcommittee. Dianne was the chair and I was the ranking member.
Dianne, you died with your boots on, and I think that was one of the things she most wanted to do.
Senator Feinstein and I didn't agree on much, but she was a delight to work with. She understood politics and government, especially today. It takes a big heart and a lot of wind and a thick skin, and that is especially true today.
There are some people in this city who didn't want Dianne to finish her term for political reasons. They tried to chew her up and tried to spit her out, and they tried to step on her. But they couldn't do it because Dianne was tough as a boot, and she wanted to die with her boots on, as a Member of this august body. And I am going to miss her.
Godspeed, Senator Feinstein.
Unanimous Consent Request--S. 2968
Mr. President, I am here today to try to extend the National Flood Insurance Program. It appears to me--I hope I am wrong, and I know, Mr. President, you agree with me--that we are headed toward a shutdown. If that happens, that means that the National Flood Insurance Program will come to a halt.
I don't want people to worry too much. If you already have national flood insurance, the program will continue to pay claims. But as long as government is shut down, you will not be able to buy new insurance. That is important because flood insurance is a huge part of the commerce of our real estate markets in America.
For most Americans, the purchase of a home is their biggest single financial decision they will ever make. In many areas--not just coastal States but many other States--you cannot purchase a home, if you have to borrow money, without flood insurance. So if we allow the National Flood Insurance Program to expire, it is going to shut down home sales where the entity loaning the money requires flood insurance. It is just going to shut it down. The real estate industry, for a variety of reasons--in part because of President Biden's inflation--is already having a tough time, and this will make it worse.
My bill would take the current flood insurance program and just extend it ``as is'' until December 31, 2023. If we don't do this--I want to make this clear, as well. Some of my fellow citizens may be saying: What is the big deal? Just don't buy it from the Federal Government.
You can't buy it from anybody else. The Federal program, imperfect as it is, is the only game in town. So if you are ready to buy a home and close on a home and you go to a mortgage lender and say, ``I need to borrow the money,'' and they say you have to buy flood insurance to get the loan, the Federal Government is the only entity you can go to. You cannot buy, for all practical purposes, private flood insurance in America today.
I mentioned that the NFIP was imperfect. I understate it. As I said yesterday on the floor, the National Flood Insurance Program, as administered by FEMA, is a mess. As I said yesterday, it looks like someone knocked over a urine sample.
FEMA made the program even worse a year or so ago with its Risk Rating 2.0. It went out and hired a consultant to design a new algorithm that made changes in the program without telling policy holders the basis for those changes. I met with FEMA a number of times. I said: Can I see your algorithm? They said: If we show you, we have to kill you--and I am in Congress. We are in litigation with FEMA right now.
Let me say it again. Risk Rating 2.0 made it even worse than it already was.
Ever since I have been in the U.S. Senate, I have been working with, I don't know, 20 different Senators and probably 50 to 100 House members who are involved to try to fix the flood insurance program, and it has been very difficult. We haven't been able to do it, but we will continue to try.
But in the meantime, the only thing worse than a bad flood insurance program is no flood insurance because, as imperfect as it may be, FEMA's National Flood Insurance Program is the only game in town. And if we allow this program to expire, it is going to
really, really, really hurt the American people. It is going to really, really hurt the real estate industry. It is going to really, really hurt folks out there who have saved money, and they are ready to buy a home, but they can't do it because they can't purchase flood insurance.
For that reason, I ask unanimous consent that the Committee on Banking, Housing, and Urban Affairs be discharged from further consideration of S. 2968--that is my bill that would just extend the current program for flood insurance, imperfect as it may be, until December 31, 2023. I ask unanimous consent that the Senate proceed to its immediate consideration. I further ask that the bill be considered read a third time and passed and that the motion to reconsider be considered made and laid upon the table.
Reserving the right to modify or not modify.
Senator Paul, as usual, makes some very good points. I agree with him wholeheartedly that the National Flood Insurance Program is a mess. It needs to be fixed.
I want to make the record clear that in Louisiana, my people are working people. My coast is a working coast. My people aren't wealthy millionaires who have three or four homes on the beach. These are ordinary people who get up every day, go to work, obey the law, pay their taxes, and try to do the right thing by their kids.
They can barely afford one home. It is not only the coast that we are talking about. In 2016, in the middle of my State--again, not mansions, just working-class people--we had 24 inches of rainfall in about a day and a half.
The homes that flooded--and many of them did--were not anywhere near a body of water. If you get 24 inches of rain in a day and a half, your home is going to flood. I don't care if you are living on Pike's Peak. So this program is meant to help those people as well.
But in pointing that out, I don't want to take anything away from Senator Paul's excellent points. He is, however, mistaken in one critical respect: When you buy flood insurance through the Federal National Flood Insurance Program, the most you can collect on your home as a result of one flood is $250,000. It is not accurate to say that a million-dollar home can collect a million dollars in damages from a flood. That is just not true. If there is a flood and you own a million-dollar home and you own a $250,000 home and the owners of those two homes both have national flood insurance, the most under the policy they can collect is $250,000.
So why do you want to tell a person who owns a million-dollar home that they can't insure their home? You are just telling them they can't buy flood insurance, so the flood insurance program has less money to cash flow. It makes no sense.
Now, Senator Paul is correct, and it is one of the things we are trying to fix, that there has been abuse in terms of some homes. Senator Paul mentioned the example of Louisiana; but there are other States, many others, where homes have flooded three or four times, and they keep getting flood insurance.
If I can say anything good about the current National Flood Insurance Program today, I would say that FEMA has taken steps to try to prevent that from happening so that if you flood a certain number of times, you have to move. And I know the Senator didn't--I don't think I am disagreeing with him on that. I think we are in agreement.
But let me tell you the second and main reason I can't accept Senator Paul's change. For me, it has to do with what is right. There are probably 20 different Senators--well, there are a hundred Senators who care about flood insurance, but there are about 20 different Senators who want to be involved in any changes made to this program. And I dare say there are 50 to 100 members of the House.
Now, as the Presiding Officer knows, when we bring a bill to the floor for unanimous consent, we don't just walk down here one day and do it.
We let all of our Senators--fellow colleagues, our fellow Senators-- know what we are about to do. So if they want to come down and object, they can do that. And that is what I did with my bill, which just keeps the current program and extends it until December 31, so we will get past the shutdown and we won't keep people from buying homes.
But Senator Paul's changes have not been sent to all members of the Senate. It is called a hotline. And I anticipate that the Senator will have other changes, and that is fine.
The easy thing for me to do today would be to agree with one of his changes. I am not sure it makes that much difference because the amount of damages you can claim on a flood is $250,000, but the easiest thing for me to do today would be to agree to one of Senator Paul's changes, but that would be stabbing my colleagues in the back.
Because I can assure you, knowing how many of my colleagues feel about the National Flood Insurance Program, they would want to be here today to weigh in. And I just can't do that to them, even though it would allow me to get this passed.
I also think that if we make changes to the National Flood Insurance Program, those 50 to 100 House members that I am talking about are likely--some of them are likely not to allow the changes, and that is why they would object to it. And that is why my objective has been--and I need to stand behind it--to just take the current program and extend it to December 31.
So for that reason, I don't agree to the modification.
Reserving the right to accept or not accept. Again, Senator Paul--I understand his points, and they are very good ones. I would point out that his proposal--we have about 84.7 million owned or occupied homes in the United States. Let's call it 85 million homes in the United States.
Senator Paul's amendment would exclude 52.5 million of them. Five hundred thousand dollars on a home is a lot of money, but I think in places like California and Connecticut and New York, where we have seen cost of living different from my State, there are plenty of ordinary Americans, middle-class Americans, who have scrimped and saved to put together the money to borrow $500,000, and I don't want to hurt them.
But the second and the main reason I can't agree to Senator Paul's proposal: I am just not going to stab my fellow Senators in the back. They do not know about these changes that are being proposed. They may be good changes, and I like the way Senator Paul is thinking. But let me say it again, I know of at least 20 Senators, some of whom are not in Washington who care about flood insurance. And if I started agreeing to changes for the short-term satisfaction of getting to pass a bill, it is just not worth it to me.
And I am not going to stab them in the back. They have the right to be here and participate in these changes, and they are not here because they don't know about it. So for that reason, I do not concur in Senator Paul's amendment.
Mr. President, reserving the right to object. I fear I am not being clear, and I am sorry for that. Let me say it again. If you own a $250,000 home and you own a $750,000 home, neither one of you can buy more than $250,000 worth of insurance, because the maximum amount of insurance that you can buy through the National Flood Insurance Program is $250,000.
So what is the point of excluding someone who owns a $750,000 home? I realize it is in vogue to denigrate rich people, but they can't buy any more insurance. It would be different if someone could buy $750,000 worth of flood insurance who owned a $750,000 home, but they can't. It is capped at $250,000.
So I have to respectfully disagree with my friend on that. And, No. 2--I don't want to belabor this--I am not going to stab my fellow Senators in the back. The 20-plus Senators with whom I have spoken to try to negotiate a new
and better Flood Insurance Program do not know about these changes.
And I would like to agree to Senator Paul's suggestions, but if I do, I am stabbing my fellow Senators in the back, and it is just not worth it to me because they don't know about any of this.
For that reason, I respectfully object to Senator Paul's amendment.
Mr. President, reserving the right to object, if I own a $10 million home--and I assure you I do not--and my neighbor's home is $250,000, that is its value, which is more like it in Louisiana. And we both go to an insurance agent, and we say: We want to buy national flood insurance because we can't get a mortgage without it. Then the insurance agent is going to say: OK. Neighbor whose home is worth $250,000, I can write you a policy, maximum $250,000.
And then they are just going to turn to me with my $10 million home-- which I can assure you is fictitious--and the agent is going to say, I can only sell you $250,000.
The suggestion that somebody with a $10 million home is being insured for $10 million is just not accurate. It is just not accurate.
So what good is it going to do to tell someone in a $10 million home who wants to buy $250,000 worth of flood insurance--the same amount as his neighbor--what good is it going to do to exclude him?
Some can beat themselves on the chest and say, boy, we stuck it to those rich people. But they are not getting any more insurance. And what it is going to mean to the program is there is going to be fewer and less premiums coming into the program, which will make it insolvent.
You can see the difficulty in trying to reach agreement on the forms.
That is why I am going to say it again. And I have proposed a clean, if you will, proposal that will just extend the current program, imperfect as it may be, until December 31.
If we don't do this, it is going to really, really, really hurt. It is not going to hurt the rich folks. It is going to hurt the ordinary, middle-class Americans who are trying to buy a home.
And the second and final reason, if it were, or the third and final reason, frankly, if it were up to me to get this passed--because I am really worried about it, as you can tell--I would probably agree to Rand's proposal, but I am just not going to stab my colleagues in the back.
They don't know about this proposal, and I think that of the 20 or so of my colleagues whom I have met with about changing the Flood Insurance Program, I know they would like to have their say. And if I agree to the Senator's proposal today--because they don't know about his proposal--I would be stabbing them in the back, and I just can't do it, Mr. President. It is just not worth it to me.
For that reason, I respectfully object.
Mr. President, you are getting tired of my saying this, I know. This rich $10 million American that Senator Paul keeps talking about can't buy any more insurance than the American who owns the $250,000 home. He just can't.
And I am going to try again. I will be back tomorrow, and like the terminator, ``I'll be back.''
Because in trying to punish the rich, when they can't buy any more insurance than the ordinary American, Mr. President, like you and me-- 250,000, that is the limit for the rich American and the middle-class American--this is going to put the entire real estate industry in jeopardy. And it is also going to put a lot of ordinary, middle-class Americans out there who have scrimped and saved, and they have got the money for the downpayment, and they are ready to buy a home, but they are not going to be able to buy it because they can't get flood insurance, and their mortgage lender requires it.
And by the time government opens back up--I hope it is a short period of time, but we don't know--those interest rates instead of 7.5 percent could be 8 percent.
And look, I get the politics of beating up on the rich, but the rich have nothing to do with this. This is about ordinary Americans.
But I appreciate, Mr. President, your patience in listening to me today. And with that, I think I need to yield the floor, do I not, Mr. President?
To whom should I yield it?
Senator Hirono from the great State of Hawaii or Senator Schumer?
Are you seeking recognition, or are you just waving at each other?
Of course. I just work here. I am not management.