Sen. Bill Cassidy is leading a group of nine Republican Senators in demanding that the Federal Emergency Management Agency (FEMA) end Risk Rating 2.0, a policy that caused flood insurance premiums to skyrocket.
“Since the Biden Administration’s rollout of Risk Rating 2.0, premiums under the National Flood Insurance Program (NFIP) increased in every state. By FEMA’s own estimates, 77% of all NFIP policies now pay more than under the old system,” said the senators in the letter to David Richardson, Acting Administrator of FEMA.
On April 1, 2023, FEMA implemented Risk Rating 2.0, a process that leverages industry best practices and technology to enable FEMA to deliver rates that are actuarially sound, easier to understand, and better reflect a property’s flood risk.
“The lack of transparency surrounding Risk Rating 2.0 is beyond troubling,” added the Senators in their letter. “FEMA has never allowed for meaningful public comment, nor has it published the underlying data or assumptions used to justify the steep premium increases and refuses to disclose its actuarial model. Without transparency, communities cannot plan mitigation projects, lenders cannot accurately underwrite mortgages, and citizens cannot appeal punitive rate increases. Worse still, rising costs encourage policy lapses—shifting risk back to taxpayers when disasters strike.”
Risk Rating 2.0 allows FEMA to provide individuals and communities with information to make more informed decisions on purchasing flood insurance, initiating, and informing appropriate mitigation options to help lower flood insurance rates. The current rating methodology has not changed since the 1970s. Over the years, technology has evolved and so has FEMA’s understanding of flood risk. Risk Rating 2.0 allows FEMA to calculate premiums across all policyholders based on the value of their home and individual property flood risk.
Cassidy was joined by U.S. Sens. John Kennedy, Cindy Hyde-Smith, Roger Wicker, Shelley Moore Capito, Jim Justice, Katie Britt, Tommy Tuberville, and John Cornyn.
Areas of Concern
In the letter, the senators pinpoint states of concern that have been hit especially hard by flooding conditions, including:
- Louisiana: It is estimated that 80% of Louisiana NFIP policyholders experienced monthly premium increases in 2025 because of Risk Rating 2.0. In 2023 alone, the average flood insurance premium in Louisiana jumped by 234%, forcing more than 52,000 Louisianans—many of them seniors on fixed incomes—out of the program.
- West Virginia: It is estimated that 83% of West Virginia NFIP policyholders experienced monthly premium increases in 2025 because of Risk Rating 2.0. As of August 2023 (the latest available FEMA data), Risk Rating 2.0 would increase annual NFIP premiums for homeowners in West Virginia by 176%. Over the last 12 months, 600 West Virginians have left the NFIP as a result of premium increases.
- Texas: It is estimated that 86% of Texas NFIP policyholders experienced monthly premium increases in 2025 because of Risk Rating 2.0. As of August 2023 (the latest available FEMA data), Risk Rating 2.0 would increase annual NFIP premiums for homeowners in Texas by 53%. Over the last 12 months, 26,300 Texans have left the NFIP as a result of premium increases.
- Alabama: It is estimated that 79% of Alabama NFIP policyholders experienced monthly premium increases in 2025 because of Risk Rating 2.0. As of August 2023 (the latest available FEMA data), Risk Rating 2.0 would increase annual NFIP premiums for homeowners in Alabama by 106%. Over the last 12 months, 1,200 Alabamians have left the NFIP as a result of premium increases.
- Mississippi: It is estimated that 84% of Mississippi NFIP policyholders experienced monthly premium increases in 2025 because of Risk Rating 2.0. As of August 2023 (the latest available FEMA data), Risk Rating 2.0 would increase annual NFIP premiums for homeowners in Mississippi by 103%. Over the last 12 months, 2,200 Mississippians have left the NFIP because of premium increases.
“Time is of the essence,” said the senators in the letter. “Each month that Risk Rating 2.0 continues unchecked, more families are forced to abandon their insurance coverage, neighborhoods face economic strain, and entire communities risk collapse after the next disaster. We respectfully urge you to act now—before further harm is done—to protect vulnerable Americans, preserve homeownership, and ensure the NFIP fulfills its mission as Congress intended.”
FEMA Under Fire
And with the 2025 hurricane season underway in the U.S., last year’s season saw 18 named storms, 11 of which became hurricanes, and five of which reached major hurricane status.
As the nation braces for more storm uncertainty in 2025, many are questioning whether or not FEMA is ready to properly execute its disaster response teams in the event of an emergency.
In remarks at a recent House Rules Committee hearing, Rep. Jared Moskowitz of Florida echoed his concerns that the Agency may not be ready if disaster strikes. Rep. Moskowitz said budget cuts by the Department of Government Efficiency (DOGE) have made FEMA inefficient, and these cuts may risk sending hurricane-prone states into bankruptcy if they are denied federal aid when a storm strikes.
CNN found that FEMA, which employs more than 20,000, has lost roughly 30% of its full-time staff to layoffs and DOGE buyouts. President Donald Trump has criticized FEMA for months as ineffective and unnecessary, and Homeland Security Secretary Kristi Noem, whose department oversees FEMA, has stated that she seeks to “eliminate” the agency.
“And so look, there’s no doubt that FEMA needed reform, but what they’ve done at Homeland is they’ve taken something that needed help, and they broke it further,” Rep. Moskowitz added.
Click here for the full letter led by Sen. Cassidy to FEMA Acting Administrator David Richardson.
