FEMA Sets the Record Straight on Vendor’s False Claims Regarding Community Resilience Program

FEMA Will Continue to Administer its Community Rating System Program and Deliver Cost Savings to Flood Insurance Policyholders

WASHINGTON - The Federal Emergency Management Agency (FEMA) today released the following statement correcting the record on inaccurate claims by a third-party vendor about the Community Rating System program. This vendor falsely asserted that FEMA's Community Rating System program no longer has the resources necessary to operate. The truth is that FEMA remains steadfastly committed to managing its Community Rating System program and helping communities lower their flood risk.

"It is deeply unfortunate that this vendor has chosen to convey false information and unnecessarily confuse state and local community leaders," said FEMA Spokesperson, Victoria Barton. "Let us set the record straight: FEMA has no plans to pause or terminate the Community Rating System program, and FEMA will continue to support communities seeking to reduce their flood risk. FEMA is moving forward to deliver a more streamlined program that provides the same benefits to American communities with greater efficiencies."

FEMA's Community Rating System (CRS) program incentivizes communities to implement advanced floodplain management practices by offering flood insurance premium discounts. Since this program was established over 30 years ago, it steadily grew more complicated, more expensive and more burdensome on American communities. This stops now. Under President Trump's leadership, FEMA is focused on cutting red tape, reducing bureaucratic hurdles and empowering American communities to strengthen their resilience to disasters. As part of this effort, FEMA is exploring ways to streamline the Community Rating System process, reduce its administrative burden and ensure that it only incentivizes actions that substantively reduce flood risk and make communities safer. As FEMA considers potential improvements, CRS discounts, how to implement future enrollments and technical assistance services will continue.

FEMA's contract decisions are based on improving oversight and efficiency, not reducing support for communities. As a responsible steward of taxpayer money, FEMA will continue to conduct basic due diligence reviews on all contracts.