10 states and scores of local governments sue FEMA over higher flood insurance rates

Floodwater surrounds a house on Sept. 1, 2021, in Jean Lafitte, La. Hurricane Ida made landfall as a powerful Category 4 causing flooding and wind damage along the Gulf Coast. (Brandon Bell/Getty Images)

Ten states and dozens of municipalities are suing the Biden administration over rate hikes in the National Flood Insurance Program. That program offers coverage in high-risk flood areas and is administered by FEMA, the Federal Emergency Management Agency. A lawsuit filed Thursday (the start of the Atlantic hurricane season) in New Orleans federal court seeks to block the higher premiums.

When FEMA's new Risk Rating 2.0 pricing plan went into effect in April, the agency said it was more equitable and better reflects flood risk. The result is rate increases that will average more than 100% in coastal states like Louisiana and Florida. Some parishes in southeast Louisiana will see rates go up on average more than 500%.