Congress lets insurers abandon risky flood customers to federal program

What it does

This bill prohibits the Federal Emergency Management Agency (FEMA) from requiring Write Your Own (WYO) insurance companies—private insurers that sell federal flood insurance under their own brand names—to agree not to sell competing private flood insurance products. Currently, FEMA can impose non-compete clauses as a condition of participation in the WYO program; this bill strips that power away, allowing WYO companies to simultaneously sell both NFIP-backed policies and their own private flood insurance.

Why we flagged it

The bill removes a regulatory constraint (non-compete authority) that FEMA currently holds over private insurers participating in a federal program. It is functionally a deregulation measure that expands private-sector competitive scope at the expense of federal program control.

What the text implies

• Allows WYO companies to segment the flood insurance market by risk profile: private insurers can offer coverage to low-risk properties while NFIP absorbs higher-risk, less profitable customers, potentially destabilizing the federal program's actuarial balance.
• NFIP may face premium pressure if it loses low-risk customers to private competitors, forcing rate increases on remaining policyholders who are disproportionately higher-risk or in underserved areas.
• No requirement in the bill for WYO companies to disclose conflicts of interest or dual-product strategies to consumers, creating potential for steering and information asymmetry.
• The bill does not address whether FEMA retains authority to set underwriting standards, claims-handling requirements, or solvency safeguards for private products sold by WYO companies under their own brand.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens may benefit from increased competition and potentially lower premiums or better service from private alternatives, but face a concrete risk: WYO companies may cherry-pick low-risk properties for their private products while steering higher-risk customers toward the NFIP, leaving the federal program with a worse risk pool, higher costs, and potential premium increases for those who cannot access private coverage. The bill does not address cream-skimming safeguards.

Who stands to gain

• private property insurance companies (WYO program participants)
• insurance agents and brokers (expanded commission opportunities)
• insurance adjustment organizations

Named in the bill

Federal Emergency Management Agency (FEMA), Write Your Own (WYO) Program, National Flood Insurance Program (NFIP), National Flood Insurance Act of 1968, Flood Disaster Protection Act of 1973, private property insurance companies, insurance agents and brokers

Where it stands

2 cosponsors: 2 Republicans.

• Sep 26, 2025 — Introduced · Congress.gov: “Introduced in House”
• Sep 26, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 7 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $4,680,000 in lobbying spend. A filing names 68 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

W. Steube, the sponsor, reported $646,500 in PAC receipts in the 2026 cycle.

• American Property Casualty Insurance Association — $3,540,000 on 2 filings
• Reinsurance Assn of America — $1,100,000 on 3 filings
• North American Deer Farmers Association — $40,000 on 2 filings

Lobbying Disclosure Act filings through Jul 23, 2026. A filing shows who paid to lobby on a bill it names, not what changed.