Senators John Kennedy and Bill Cassidy of Louisiana, along with several colleagues from Mississippi, West Virginia, Alabama, and Texas, have called on the acting administrator of the Federal Emergency Management Agency (FEMA), Karen Evans, to stop further implementation of the Risk Rating 2.0 pricing system for the National Flood Insurance Program (NFIP) and to increase transparency in how flood insurance rates are determined.
The senators expressed concern that Risk Rating 2.0 has led to significant premium increases for homeowners in Louisiana and across the country. They noted that these increases have caused many policyholders to drop their coverage, which could undermine the long-term stability of the NFIP.
“Since Risk Rating 2.0 took effect, flood insurance premiums have increased in every state, and FEMA estimates that approximately 77 percent of policyholders now pay more than they would have under the prior system. In Louisiana and other flood-prone states, premium increases of well over 100 percent have forced tens of thousands of homeowners to drop coverage altogether. These trends are not isolated—they reflect a nationwide contraction in NFIP participation driven by affordability pressures,” the senators wrote.
“This loss of participation is a structural problem for the NFIP. Flood insurance depends on a broad risk pool to function effectively. As policyholders exit the program, risk becomes more concentrated, premiums face additional upward pressure, and volatility increases,” they continued.
“We are also concerned by FEMA’s continued lack of transparency surrounding Risk Rating 2.0. FEMA has not released the underlying data, assumptions, or modeling used to generate premium increases, nor provided a mechanism for meaningful external review,” the legislators added.
Kennedy and Cassidy urged FEMA to end its current pricing methodology and clarify how it sets rates under the NFIP.
“Time is of the essence. Each year Risk Rating 2.0 remains in place, participation continues to erode, the insurance pool weakens, and taxpayer exposure grows. Immediate action must be taken to stop the actuarial death spiral. We urge FEMA to act promptly to correct course and ensure the NFIP fulfills its core mission of protecting homeowners, communities, and federal taxpayers alike,” they explained.
In March 2023, Senator Kennedy introduced two bills aimed at addressing concerns with Risk Rating 2.0: one capping annual flood insurance premium increases and another requiring FEMA to explain how it determines prices under this system. In January 2024, Kennedy spoke before the Senate Banking Committee about rising premiums faced by Louisianians during Risk Rating 2.0’s rollout.
Previously in June 2025, Kennedy and Cassidy joined other senators in expressing concerns about unaffordable premiums and lack of transparency under Risk Rating 2.0; recent data from FEMA as well as peer-reviewed research have since shown declines in NFIP participation following its implementation.
Senator John Kennedy represents Louisiana in the United States Senate with offices throughout Alexandria, Baton Rouge, Lake Charles, Monroe, New Orleans and Shreveport as well as Washington D.C., supporting constituents on federal matters such as veterans’ issues and small business support according to his official website. He leads initiatives through roles on committees related to banking, appropriations and energy while engaging residents via newsletters and public events.
