H.R. 2868 would require the Federal Emergency Management Agency (FEMA) to cap annual premiums charged for certain National Flood Insurance Program (NFIP) policies at $10,000 for five years. The cap would be adjusted for inflation every five years. The bill also would require FEMA to update guidelines on methods to mitigate flood prone properties and to conduct a study on the feasibility of providing NFIP coverage to individual dwelling units in cooperative housing projects.
CBO estimates that enacting H.R. 2868 would increase direct spending by $68 million over the 2018-2027 period. Because enacting H.R. 2868 would affect direct spending, pay-as-you-go procedures apply. Enacting the legislation would not affect revenues. CBO estimates that implementing the bill would have no significant effect on spending subject to appropriation in any year.
CBO estimates that enacting H.R. 2868 would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 2868 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.