National Flood Insurance Program Affordability Act

HR 1540 creates a new assistance program to make National Flood Insurance Program (NFIP) premiums more affordable for low-income households and small entities. It provides graduated discounts so eligible policyholders pay no more than 1% of their area median income for flood insurance on primary residences or related personal property. The program, funded by $250 million annually, targets households earning ≤120% of local median income, small businesses (≤100 employees), and nonprofits meeting hardship criteria. FEMA must also implement monthly premium payment options by 180 days after enactment. This directly affects NFIP policyholders in flood-prone areas facing high insurance costs relative to their income.