Lawmakers Introduced Community Disaster Protection Act
The proposed legislation seeks to create a federal grant program to boost community-based catastrophe insurance coverage.
Updated on Oct. 1, 2026 in Safety
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Should the federal government fund community-based insurance programs to lower disaster coverage costs?
Representatives Dave Min and Johnny Olszewski have introduced the Community Disaster Protection Act to address gaps in disaster insurance. The bill proposes a five-year FEMA pilot program to provide competitive grants for community-wide protection.
Why it matters
The legislation aims to mitigate the financial impact of extreme weather events, as rising climate damage has caused insurers to withdraw from high-risk markets. By encouraging local investment in risk reduction, the bill seeks to address the growing uninsured disaster losses faced by residents.
In 2024, the United States saw $217.8 billion in economic losses from natural disasters, with approximately $105 billion of that total remaining uninsured. The proposed FEMA pilot program would operate over a five-year period.
The players
Dave Min
Representative Dave Min is a member of the United States Congress representing California.
Johnny Olszewski
Representative Johnny Olszewski is a member of the United States Congress representing Maryland.
FEMA
The Federal Emergency Management Agency is the federal entity responsible for coordinating disaster response and mitigation efforts across the United States.
Government Accountability Office
The Government Accountability Office is a federal agency that provides auditing, evaluation, and investigative services for the United States Congress.
The details
The act authorizes FEMA to award competitive grants to local governments and organizations to develop community-based catastrophe insurance models. Recipients are required to promote investments that mitigate disaster risks to lower potential damages in the future.
Timeline
U.S. natural disaster losses reached $217.8 billion in 2024.
Representatives introduced the Community Disaster Protection Act on October 1, 2026.
Seasonal Patterns
The proposed Community Disaster Protection Act creates a new mechanism for local catastrophe insurance that contrasts with the direct property coverage provided by the National Flood Insurance Program.
The proposed legislation would provide funding for local governments to develop insurance solutions that could stabilize market access in high-risk areas. If passed, communities could see increased investment in mitigation infrastructure to help offset the rising costs of property insurance.
The takeaway
This legislation reflects an effort to shift from reactive disaster spending toward proactive local risk management. Residents in disaster-prone areas should track whether their local governments seek to apply for these competitive grants to improve their community coverage.
Further reading
For more information on national resilience, visit the Safety section.
Live Poll
Should the federal government fund community-based insurance programs to lower disaster coverage costs?
