To amend the National Flood Insurance Act of 1968 to limit the application of the Endangered Species Act with respect to certain actions under the national flood insurance program, and for other purposes.

HR7862, titled the 'National Flood Insurance Program Clarification Act of 2026,' was introduced in the House on March 9, 2026, and subsequently referred to the Committee on Financial Services. The bill proposes to amend the National Flood Insurance Act of 1968 by limiting the application of the Endangered Species Act (ESA) to certain actions under the National Flood Insurance Program (NFIP). Specifically, it states that Section 7(a) of the ESA shall not apply to actions by the Administrator pursuant to sections 1305(c), 1306, 1360, 1361(c), 1363 of the National Flood Insurance Act of 1968, and section 100216 of the Biggert-Waters Flood Insurance Reform Act of 2012. Furthermore, it mandates the withdrawal of existing biological opinions under the ESA related to the NFIP within 30 days of enactment. This bill does not authorize or appropriate any direct funding. Instead, its mechanism for impact is regulatory relief. By removing ESA review requirements for certain NFIP actions, the bill aims to accelerate development and reduce regulatory hurdles in flood-prone areas. This streamlining reduces project delays and associated costs for developers, and potentially lowers risk assessment complexities for insurers involved in these areas. The bill's sponsor is Rep. Bentz, Cliff [R-OR-2], indicating a Republican initiative. Structural beneficiaries of this regulatory change include real estate developers and homebuilders, as the removal of ESA review requirements could expedite construction projects in areas affected by flood insurance regulations. Companies such as Lennar Corporation ($LEN), D.R. Horton, Inc. ($DHI), KB Home ($KBH), Toll Brothers, Inc. ($TOL), and M/I Homes, Inc. ($MHO) operate in the homebuilding sector and could see reduced project timelines and costs if this bill progresses. Property insurers, including The Allstate Corporation ($ALL), The Travelers Companies, Inc. ($TRV), and CNA Financial Corporation ($CNA), could also benefit from clearer regulatory frameworks and potentially reduced uncertainty in underwriting properties in flood-prone regions. In the past 7 days, homebuilders have shown positive movement: Lennar Corporation ($LEN) is up +4.35% to $88.57, D.R. Horton, Inc. ($DHI) is up +6.93% to $141.72, KB Home ($KBH) is up +1.64% to $51.34, Toll Brothers, Inc. ($TOL) is up +5.63% to $137.81, and M/I Homes, Inc. ($MHO) is up +3.4% to $122.66. Property insurers have also seen slight gains: The Allstate Corporation ($ALL) is up +0.53% to $208.36, The Travelers Companies, Inc. ($TRV) is up +1.28% to $295.55, and CNA Financial Corporation ($CNA) is up +1.64% to $46.37. These recent positive trends for both sectors align with the potential benefits of regulatory streamlining, although the bill is still in its early stages. The next legislative step for HR7862 is consideration by the House Committee on Financial Services. Given its early stage, the bill's passage is not guaranteed. However, the proposed changes directly address a long-standing point of contention between environmental regulations and development interests, suggesting a clear intent to reduce regulatory burdens. The bill's impact would be realized upon enactment, leading to a more predictable and potentially faster development process in areas covered by the NFIP.