Congressman Byron Donalds, a Republican serving as representative for Florida's 19th congressional district since 2021, introduced the bill—HR 8102—on April 20, when it was referred to the House Committee on Ways and Means, alongside Senator Rick Scott, also a Republican.

The proposed legislation, titled "The Flood Insurance Relief Act," wants to amend the Internal Revenue Code of 1986 to provide an above-the-line deduction for flood insurance premiums and offer "much-needed tax relief for National Flood Insurance Program (NFIP) and private insurance policyholders across Southwest Florida, the Sunshine State, and the nation," as per a press release shared with Newsweek.

Florida is in the midst of a homeowners' insurance crisis caused by excessive litigation, widespread fraud and the increased risk of more frequent and more severe extreme weather events brought about by climate change.

All these factors have made the Sunshine State a less profitable and more risky market for private insurers, some of which have either withdrawn from the state completely in the past few years (as did Farmers), announced they won't be renewing policies or cut their coverage.

Homeowners in Southwest Florida, a region which suffered the devastating impact of Hurricane Ian in 2022, have been particularly hit by rising flood insurance costs.