Gov. Pritzker Signs Legislation Establishing State Flood Rebate Program
The measure authorizes local home equity assurance programs to offer one-time rebates of up to $1,000 for eligible flood-related home damage.
CHICAGO – Governor JB Pritzker today signed Senate Bill 3925 into law, authorizing local home equity assurance programs to provide financial relief to eligible homeowners whose residences are damaged by flooding. The new law gives participating communities another tool to help families recover as the Trump administration retreats from its responsibility to provide critical relief to families impacted by natural disasters.
“Last summer, severe storms and flooding hit communities across Illinois – leaving hardworking families with thousands in unexpected costs,” said Governor JB Pritzker. “Today, with the signing of Senate Bill 3925, we are giving communities another tool to help homeowners recover. When Washington refuses to help, we will keep fighting for you while we find ways to help each other.”
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Flooding is an increasingly costly threat to Illinois families as climate change brings more frequent heavy rainfall, intensifies urban flooding, and places additional pressure on drainage and sewer systems. Because flood damage is generally excluded from standard homeowners' insurance policies, families without separate coverage can be left to shoulder substantial recovery costs themselves.
Under the new law, the Southwest Equity Home Assurance Program and the Northwest Home Equity Assurance Program can:
- Establish a temporary, three-year flood damage direct rebate program for participating homeowners.
- Provide Eligible households a one-time rebate covering up to 50% of qualifying flood-related expenses, with a maximum rebate of $1,000.
The legislation builds upon the Home Equity Assurance Act, which allows communities to establish locally administered programs that help protect homeowners against losses affecting the value of their residences. These programs are generally supported by local property tax revenue and overseen by governing commissions. The program will complement existing disaster-relief resources while helping participating communities respond more directly to the financial strain flooding places on homeowners.
The new law also comes as the federal government is stepping back from its responsibility to help communities recover from natural disasters. In 2025, two major storms brought record rainfall and severe flash flooding to communities across Illinois including the Southwest side of Chicago. Despite extensive damage assessments and formal appeals from the State of Illinois, the Trump administration denied FEMA assistance for both disasters, leaving affected families without access to federal grants for temporary housing, home repairs, and other essential recovery needs. As Washington makes disaster relief harder to access, Governor Pritzker is continuing to pursue every available resource and giving communities new tools to help residents recover.
“The recent storms and extreme weather have caused devastating flooding and damage to our communities,” said State Senator Mike Porfirio (D-Lyons Township). “It is our job as government officials to make sure our residents have access to relief programs that will help them get back on their feet following any severe property damages. Programs like these that provide direct support to Illinois residents are government at its best.”
“Homeowners in my community experienced significant damage to their homes and basements in recent storms that greatly impacted the area. When the federal government provided no relief, we knew we had to step up and find a needed solution,” said State Representative Angelica Guerrero-Cuellar (D-Chicago). “I’m proud this one-time payment will help our residents repair damage and get back on their feet. I’m grateful to Gov. Pritzker for signing this important bill into law.”
“I want to thank Gov. Pritzker and this coalition of local leaders for their partnership that ensures our communities and our residents received the support they deserve,” said Alderman Marty Quinn. “This one-time payment will restore people’s homes and their lives, get them back on their feet and get our communities moving again.”
“At the end of the day, this is about the same thing we've always been about: maintaining homeownership and stabilizing our neighborhoods,” said Victoria Gaspar, Executive Director of the Southwest Home Equity Assurance Program. “Flooding can be one of the most disruptive and costly things a homeowner faces, and this bill gives us a real tool to help our members recover and stay put. Programs like this, household by household, are what keep our neighborhoods strong.”
“Flooding can create an immediate financial crisis for homeowners and threaten the stability they have worked hard to build,” said Ivy Ellis Obichere, Executive Director of the Northwest Home Equity Assurance Program. “SB3925 gives Home Equity Assurance Programs another vital tool to help members recover, protect their home’s equity, and stay in the communities they love. This responsive public policy delivers relief directly to Illinois homeowners when they need it most.”
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