In 2012, Congress passed a bill known as the Biggert-Waters Flood Insurance Reform Act. This bill changes the NFIP in fundamental ways. One significant change was made to reduce the financial strain felt by the federal government. Flood insurance subsidies will become phased out. Flood insurance rates will soon reflect the true monetary risk or actuarial amount for all policyholders. Most policyholders will see no immediate change; the number receiving a subsidized rate is relatively few. However, once some policy holders will see incremental increases in their premiums over the course of several years until the premiums reflect the full risk.
Homeowner Flood Insurance Affordability Act of 2014
In 2014 the Homeowner Flood Insurance Affordability Act of 2014 was signed into law, repealing and modifying certain provisions of the Biggert-Waters Flood Insurance Reform Act and making additional program changes to other aspects of the program not covered by that Act. Many provisions of the Biggert-Waters Flood Insurance Reform Act remain and are still being implemented.