NAMIC: Bipartisan FEMA Reform Bill Promises More Effective Agency Before, After Disaster Strikes

Bipartisan legislation to reform and reconstitute the Federal Emergency Management Agency could help America’s communities reduce their risk of loss and speed up recovery from natural disasters, the National Association of Mutual Insurance Companies said today following the bill’s advancement out of the House Transportation and Infrastructure Committee.

“America’s mutual insurers know all too well that we face the potential for extreme weather to strike at any time of year in every part of the country,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “We can’t eliminate that risk, but a FEMA that has streamlined its processes – and is directly accountable to the president – can better coordinate with and empower local, tribal, and state governments to be more effective.”

Introduced by committee chair Sam Graves, R-Mo., along with the committee’s ranking member, Rep. Rick Larsen, D-Wash., the Fixing Emergency Management for Americans, or FEMA Act of 2025, would implement some of the most robust FEMA reforms witnessed in decades. The proposal would elevate FEMA to a cabinet-level agency with a direct line to the president for greater accountability and coordination; revamp and modernize public and individual assistance programs so federal aid reaches disaster victims more quickly and efficiently; and bring modern approaches for stronger and safer building to reduce risk in cost-effective ways that protect individuals, families, and communities from natural hazards by prioritizing mitigation before disaster strikes. Studies show that $1 spent on mitigation can save as much as $13 in future losses. NAMIC sent Graves and Larsen a letter of support for the bill Aug. 28, ahead of the bill’s approval by the committee at a Sept. 3 executive meeting.

“Insurance is built on the promise of being there for policyholders when they need it most, and sound emergency management is absolutely essential for insurers to help the victims of natural disasters begin the recovery process as quickly as possible,” Grande said. “The FEMA Act of 2025 will help create a streamlined and accountable FEMA that is better equipped to prepare for, respond to, recover from, and mitigate against increasingly severe and extreme weather events. We applaud Congressmen Graves and Larsen for their commitment to improving federal disaster response and preparedness. NAMIC urges House leadership to take up this important bill and for the Senate to follow suit.”

NAMIC membership reflects many of the country’s largest national insurers as well as regional and local mutual insurance companies on main streets across America. NAMIC members write $383 billion in annual premiums and account for 61 percent of homeowners, 48 percent of the automobile, and 25 percent of the business insurance markets.