A US Congress committee has passed seven bills to reform and reauthorise the debt-ridden National Flood Insurance Program (NFIP), which is due to expire on September 30.

The bills will be combined into a single measure, to be presented to the House of Representatives next month for consideration.

“While we have a responsibility to provide certainty to the homeowners and small business owners who rely on the NFIP… we must also ensure the program protects the interests of hard-working taxpayers,” Financial Services Committee chairman Jeb Hensarling said.

“These reform bills will benefit all Americans because they will invite private-sector competition and lead to a sustainable flood insurance program – sustainable for homeowners, small business owners, residential and commercial real estate markets, and sustainable for hard-working taxpayers.”

Proposed measures include protecting NFIP policyholders from unreasonable premium rates, increasing the role of private insurers in management of flood risks and using replacement cost value to determine premium rates.

“These bills put the [NFIP] on a path towards actuarial soundness where all will be protected, no one will be denied a policy, all will benefit from competition, the NFIP will be sustainable and the national debt clock will spin a little less rapidly,” Mr Hensarling said.

The NFIP carries about $US25 billion ($33.04 billion) in debt and runs a $US1.4 billion ($1.85 billion) annual actuarial deficit.