House committee advances bipartisan FEMA reform supported by mutual insurers

Bipartisan legislation aimed at reforming the Federal Emergency Management Agency (FEMA) has advanced out of the House Transportation and Infrastructure Committee. The National Association of Mutual Insurance Companies (NAMIC) expressed support for the bill, saying it could help communities reduce risk and recover more quickly from natural disasters.

Jimi Grande, senior vice president of federal and political affairs for NAMIC, stated, “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. 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.”

The Fixing Emergency Management for Americans Act of 2025 was introduced by committee chair Sam Graves (R-Mo.) and ranking member Rep. Rick Larsen (D-Wash.). If enacted, the legislation would elevate FEMA to a cabinet-level agency with direct access to the president. The bill also seeks to modernize public and individual assistance programs so aid can reach disaster victims faster and more efficiently. Another goal is to incorporate updated methods for safer building practices as a way to protect individuals, families, and communities from natural hazards by prioritizing mitigation before disasters occur.

According to studies cited in NAMIC's statement, investing $1 in mitigation can save up to $13 in future losses. NAMIC sent a letter supporting the bill to Representatives Graves and Larsen on August 28 ahead of its approval by the committee on September 3.

Grande added, “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. 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 represents both large national insurers as well as regional and local mutual insurance companies across America. Its members account for $383 billion in annual premiums, covering 61 percent of homeowners insurance policies nationwide along with significant portions of automobile (48 percent) and business insurance markets (25 percent).