Full Senate Passes Measure to Reauthorize Federal Terrorism Insurance Backstop
The U.S. Senate late Sept. 28 passed, by unanimous consent, legislation to reauthorize the federal terrorism insurance backstop.
The Senate moved on the Terrorism Risk Insurance Program Reauthorization Act of 2026 (S. 4395) to extend the program until 2034. It is set to expire at the end of 2027.
Earlier this month the Senate Banking Committee voted 24-0 to advance the measure. The U.S. House of Representatives in June overwhelmingly passed legislation to extend the public-private partnership started with the Terrorism Risk Insurance Act (TRIA) when insurance for terrorism risk all but disappeared following the attacks on 9/11.
Related: Federal Terrorism Insurance Backstop Prompted by 9/11 Still Waits for Reauthorization
Sources said the Senate bill is different from the House bill, so lawmakers will need to either compromise or adopt one version.
TRIA allows privately-insured risk to be backstopped by the federal government. The program goes into effect when an act of terrorism is certified by the Secretary of the Treasury, and an act reaches a threshold of losses. It also includes insurer deductibles and copays. To date, TRIA has never been triggered by a certified terrorism event.
“Construction and development across the country depend on having coverage against terrorism available to secure financing and create jobs,” said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC). “By moving swiftly and decisively to extend TRIA and the partnership it created, the Senate is making sure those projects, and our economy, will have the protection they need.”
The program has needed reauthorization and has undergone adjustment throughout the years. TRIA has also needed reauthorization in 2005, 2007, 2015, and 2019. While the federal backstop – essentially a reinsurance program that allows insurers to cover terrorism risk – doesn’t sunset until the end of next year, the insurance industry pushed for action early to avoid uncertainty or disruption in the marketplace.
Insurance groups said insurers and policyholder are already negotiating policies that extend past the end of 2027. The industry hopes the reauthorization finds its way to the president’s desk by the end of 2026.
“Terrorism is an unknowable threat. Unlike natural disasters, terrorists will seek out vulnerable areas and adapt their plans to counter our defenses,” Grande added. “For insurers the challenge is compounded by the fact that any relevant data on attempted attacks is unavailable for national security reasons.”