S. 3151: National Flood Insurance Program Automatic Extension Act of 2025

This bill, known as the National Flood Insurance Program Automatic Extension Act of 2025, aims to amend existing laws related to the National Flood Insurance Program (NFIP). Essentially, it proposes the following key changes:

Automatic Extension of the NFIP

Under this bill, the NFIP would automatically continue to operate past its previously established expiration date. This means that even if Congress has not enacted new legislation to extend the program, existing coverage and operations would still remain in effect until the end of the fiscal year following the year in which the current program was set to terminate.

Definitions

• Terminal Fiscal Year: This is the fiscal year in which the NFIP termination date occurs.
• Termination Date: This refers to the later of either the date established by the current law or a different date set by any other legislation.

Program Functions During Extension

During the automatic extension period, the NFIP would retain the authority to:

• Enter into, issue, or renew contracts for flood insurance.
• Continue existing flood insurance policies.
• Pay claims and service policies, working through participating insurance providers.
• Carry out necessary administrative and operational functions associated with the program.

Terms and Limitations

While the NFIP is extending automatically, any specific limitations tied to a termination date will also remain in effect, including:

• Dollar limits on obligations that may be issued.
• Authorization of appropriations or funding that would otherwise expire.

Exclusions from Extension

The bill clarifies that certain programs, like pilot programs or committees that are required to terminate on a specific date by law, will not be included in the automatic extension. Additionally, the bill will not affect any existing flood insurance contracts or the obligations of the United States regarding these contracts that are valid before this legislation takes effect.

Effective Date

The provisions of this bill will take effect retroactively as if they were enacted on September 30, 2025, which means they would apply to situations beginning from that date.

Relevant Companies

• ALL (Allstate Corporation) - This company provides flood insurance and may see impacts based on the NFIP policies.
• ACE (Chubb Limited) - As a major provider of homeowners insurance that includes flood coverage, changes in NFIP may affect its operations.
• UNM (Unum Group) - This insurer can be indirectly affected through the reinsurance market tied to NFIP changes.