U.S. Senators Roger Wicker and Cindy Hyde-Smith, both representing Mississippi, have joined a group of lawmakers urging the Federal Emergency Management Agency (FEMA) to end Risk Rating 2.0. This flood insurance policy, introduced during the Biden administration, has led to increased premiums, prompting many homeowners to abandon their policies.
The senators signed a letter spearheaded by Senator Bill Cassidy from Louisiana, calling for a halt to further premium increases under Risk Rating 2.0 and demanding more transparency from FEMA. They have expressed concerns about the pricing methodology used by FEMA, which has resulted in higher premiums for approximately 84 percent of Mississippi’s flood insurance policyholders.
“Since the Biden Administration’s rollout of Risk Rating 2.0, premiums under the National Flood Insurance Program (NFIP) increased in every state,” the senators stated in their letter. “By FEMA’s own estimates, 77 percent of all NFIP policies now pay more than under the old system.”
The letter criticizes FEMA for its lack of transparency regarding Risk Rating 2.0. The senators argue that without public input or disclosure of data and assumptions used to justify premium increases, communities cannot effectively plan mitigation projects or appeal rate hikes.
“Time is of the essence,” they emphasized. “Each month that Risk Rating 2.0 continues unchecked, more families are forced to abandon their insurance coverage.”
In addition to Wicker and Hyde-Smith, other signatories include Senators John Kennedy (R-La.), Shelley Moore Capito (R-W.Va.), Jim Justice (R-W.Va.), Katie Britt (R-Ala.), Tommy Tuberville (R-Ala.), and John Cornyn (R-Texas).
The letter addressed to FEMA Acting Administrator David Richardson highlights Executive Orders issued by President Biden that laid the groundwork for implementing Risk Rating 2.0 on October 1, 2021.
According to a Government Accountability Office report from 2023, premiums on primary residences can increase up to 18 percent annually until they reflect “the full risk loss of the insured property,” as determined by FEMA.
The senators argue that rural and low-income homeowners are disproportionately affected by these changes compared to urban or wealthier communities. In ten states, current NFIP premiums exceed two percent of median household income.
They urge immediate action from FEMA: “We respectfully urge you to act now—before further harm is done—to protect vulnerable Americans.”
