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Based on the bill's title, this legislation would direct the Federal Emergency Management Agency (FEMA) to permit recipients of Flood Mitigation Assistance Grants and certain other federal grants to use those funds to pay premiums for community-based parametric flood insurance policies. Parametric insurance pays out based on predetermined triggers (such as rainfall or flood severity) rather than actual losses. The bill appears designed to expand the use of federal flood mitigation funding to include this alternative insurance mechanism.
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