Rice Introduces Bipartisan Bill to Increase Funding for Flood Victims

Legislation Would Increase the Cap on FEMA ICC Regulatory Coverage Limit

WASHINGTON, D.C. – Today Congressman Tom Rice (R-SC) introduced The Increased Cost of Compliance Modernization Act with Congressman Vicente Gonzalez (D-TX). This legislation would raise the Increased Cost of Compliance (ICC) coverage limit from $30,000 up to $100,000. This coverage is one of several resources for flood insurance policyholders who need additional help rebuilding after a flood. 

“All eight counties in the 7th District are part of a big floodplain,” said Congressman Rice. “Flooding has had a devastating impact on our community over the past ten years and this legislation will help cover the cost of mitigation measures to reduce flood risks. Since the ICC coverage limit was last raised over two decades ago, the cost for repairs have risen significantly. This increase in coverage will help provide relief to homeowners, especially those who do not want to leave their waterfront property.” 

“Flooding is not just a coastal problem, our changing climate, increased urbanization, and aging infrastructure have only made this issue more severe,” stated Congressman Gonzalez. “I am proud to join my colleague, Congressman Tom Rice, in introducing legislation to improve homeowners’ access to the resources they need to recover from devastating floods. I look forward to working with Congressman Rice and House Leadership to pass this bill and bolster flood mitigation resources for communities in South Texas and across the country.”

“Improvements to the NFIP’s Increased Cost of Compliance (ICC) coverage is a top NFIP reform priority for ASFPM,” said Chad Berginnis, Association of State Flood Plain Managers Executive Director. “We are pleased with and support Congressman Tom Rice’s bill which addresses many of the concerns we have with ICC, which is one of the fastest ways to get flood mitigation funding in the hands of property owners.”

The Increased Cost of Compliance Modernization Act would:

  • Increase the cap on FEMA ICC regulatory coverage limit to $50,000 with an additional coverage option that would cover up to $100,000. 
  • This cap is set as a percentage of the maximum amount of flood insurance coverage to allow this cap to move with the cap on coverage. 
  • ICC would no longer be counted toward the maximum NFIP payment. This means flood victims can get up $350,000 if eligible.  
  • Expand eligible use of ICC funds to allow ICC to be used as non-federal match for Flood Mitigation Assistance, Pre-Disaster Mitigation, and Hazard Mitigation Grant Programs.
  • Offsets costs associated with increase payouts by removing cap on ICC premiums.


Increased Cost of Compliance (ICC) coverage was created by the National Flood Insurance Reform Act of 1994 and became effective in 1997. The cap on ICC coverage began at $15,000 and was last raised in 2003 to $30,000. Over the past two decades, the cost for repairs have rose significantly. ICC is further restricted by FEMA policy that includes ICC payouts in the maximum NFIP payment. This policy limits and can even prevent policyholders from receiving ICC funds.


National Association of Realtors, Association of State Flood Plain Managers