Senators McCormick, Smith, Tillis, and Gallego Introduce Bipartisan Legislation to Extend the Terrorism Risk Insurance Program for Seven Years

WASHINGTON - U.S. Senators Dave McCormick (R-PA), Tina Smith (D-MN), Thom Tillis (R-NC), and Ruben Gallego (D-AZ) today introduced the bipartisan Terrorism Risk Insurance Program Reauthorization Act of 2026, which is essential to economic security by safeguarding the availability of terrorism risk coverage.

This legislation is also cosponsored by Chairman Scott (R-SC), Senators Banks (R-IN), Britt (R-AL), Crapo (R-ID), Hagerty (R-TN), Kennedy (R-LA), Lummis (R-WY), Moreno (R-OH), Ricketts (R-NE), Rounds (R-SD), Kim (D-NJ), Van Hollen (D-MD), Cortez Masto (D-NV), Cramer (R-ND), Alsobrooks (D-MD), Schumer (D-NY), Warner (D-VA), Warnock (D-GA), and Blunt-Rochester (D-DE).

Following the attacks on September 11, 2001, most states began allowing terrorism risk to be excluded from commercial insurance policies, leaving businesses and industries without access to coverage. Since insurance is a precondition for commercial lending and real estate transactions, this gap in coverage threatened broad economic damage across real estate, construction, energy, transportation, and related industries. Congress responded by passing the Terrorism Risk Insurance Act of 2002 (TRIA), creating a federal reinsurance backstop to stabilize the private market and ensure that commercial policyholders could continue to obtain terrorism risk coverage.

The private insurance market has relied on the TRIA backstop ever since. When TRIA briefly lapsed in December 2014, terrorism exclusions that insurers had pre-filed with state regulators took effect automatically, making terrorism coverage effectively unavailable across commercial policies nationwide. As a result, terrorism risk coverage was removed from policyholders immediately and without notice. Given that the current threat landscape remains elevated, allowing a similar lapse in terrorism coverage would expose policy holders to unnecessary financial risk and uncertainty.

"State sponsors of terror pose a persistent threat to the United States, and we must be prepared," said Senator McCormick. "Reauthorizing TRIA ensures businesses and workers in Pennsylvania will be supported in the event of a terror attack."

"The Terrorism Risk Insurance Program is critical to keeping insurance available and affordable to businesses in Minnesota and across the country so they can grow and create jobs," said Senator Smith. "Without this bill, a potential terrorism event would mean a financial catastrophe for many businesses and would be extremely costly to taxpayers. I've worked to make sure this bipartisan measure stays in place since I came to the Senate, and I'm glad to be introducing my TRIA bill again to ensure this vital program doesn't lapse."

"Americans deserve the peace of mind that comes from knowing their businesses, jobs, and communities are protected in times of crisis. Reauthorizing TRIA will provide certainty for employers, support economic growth, and help keep coverage available and affordable. I'm proud to join Senator McCormick on this common-sense, bipartisan legislation," said Chairman Scott.

"We have to make sure we're prepared for the worst,"said Senator Gallego. "I'm proud to co-lead the bipartisan reauthorization of the Terrorism Risk Insurance Act. This long-term reauthorization will ensure Arizona businesses can invest in their assets and create jobs with confidence and that they have the resources they need to recover in the event of a major terrorist attack."

"Reauthorizing the Terrorism Risk Insurance Program is essential to ensuring businesses have the certainty they need to operate and invest with confidence,"said Senator Tillis."This longstanding public-private partnership has helped safeguard our economy for more than two decades, and extending it will prevent disruption while ensuring we remain prepared for evolving threats.""In this dangerous moment when America faces growing threats from around the world, our communities need to know that their property is insured in the event of a major terror attack. Renewing TRIA with bipartisan support is an essential precautionary step we must take to ensure Americans have access to insurance and avoid economic peril by allowing them to recover and rebuild in the wake of an unimaginable tragedy," said Senator Van Hollen.

"For more than two decades, Congress has recognized the need for the Terrorism Risk Insurance Program. While making sure American businesses have access to this protection is an unfortunate necessity in today's world, it's critical that Congress extend the program,"said Senator Britt.

"From the Super Bowl to the World Series of Poker to F1 races, the Silver State regularly hosts large gatherings," said Senator Cortez Masto. "While these events are critically important to Nevada's tourism industry, they also create unique risks. Extending the Terrorism Risk Insurance program would help Nevada's economy recover should a debilitating terrorist attack occur and ensures the continued availability of terrorism insurance for our businesses."

"Lack of insurance coverage had a destabilizing effect on the U.S. economy in the wake of the September 11, 2001, terrorist attacks. TRIA has made coverage for terrorism risk insurance more available and affordable in Idaho and across the nation. This reauthorization ensures continued private-sector responsibility and safeguards our economy against potential future threats," said Senator Crapo.

"It is critical for the national and financial security of our nation that Congress pass the Terrorism Risk Insurance Act of 2026 - let's act before this policy lapses to provide certainty for businesses," said Senator Alsobrooks.

"In the wake of the September 11th attacks, Congress created the Terrorism Risk Insurance Program to support Americans during crises. As America continues to deal with heightened terrorism threats, this program remains as relevant as ever. I'm proud to join my colleagues in introducing a bill to get ahead of the Terrorism Risk Insurance Act's expiration date, pass an extension and prevent any lapse in coverage," said Sen. John Kennedy.

"Congress cannot let local communities foot the bill for possible terrorist attacks," said Senator Moreno. "It is critical that we protect American jobs and ensure that businesses across the country have the tools they need to respond to and recover from these catastrophic events."

"After the horrendous September 11th attacks, we learned that failing to insure against losses from terrorism doesn't just threaten individual businesses, it also undermines our entire economy. I am proud to have helped pass the original Terrorism Risk Insurance Act, which has been critical to safeguarding our real estate, construction, energy, transportation, and other vital industries against losses due to terrorist attacks," said Leader Schumer. "Reauthorizing this program for seven years is common sense to provide certainty, stability, and protection for jobs, businesses, and our economy in the face of evolving threats."

"The Terrorism Risk Insurance Act will provide certainty for insurers, businesses, and large community events that bring Nebraskans together," said Senator Ricketts.  "We must reauthorize this program and ensure we are protected and prepared for any potential future threat.  I encourage my colleagues to quickly send TRIA Reauthorization to the President's desk."

"The threat of terror attacks doesn't just impact lives, it impacts livelihoods. New Jerseyans saw that in the aftermath of 9/11, and we know that in the same way it's important to invest in efforts to protect our country, it's important that we reauthorize the Terrorism Risk Insurance Program," said Senator Kim.

"The September 11th attacks highlighted a severe gap in coverage for businesses caught in the aftereffects of terrorist activity," said Senator Cramer. "The Terrorism Risk Insurance Program is essential to maintain stability when malign disruptions occur. This reauthorization extends the program for another seven years, preventing any lapse in coverage."

"We know what happens when terrorism risk goes uninsured - the market freezes, projects stall, and the ripple effects hit workers and communities across the country,"said Senator Warner. "TRIA makes sure that businesses can continue building, investing, and creating jobs. It's an important public-private partnership that gives lenders and developers the certainty they need to keep capital flowing and investments moving. Congress should get this done and provide the stability that the market depends on to move forward."

"If tragedy strikes, our communities cannot afford economic disruption on top of it. TRIA must be extended to ensure businesses can access affordable terrorism insurance and keep our economy resilient in the face of evolving threats,"said Senator Blunt-Rochester.

"The Terrorism Risk Insurance Program has been a critical backstop for American businesses and communities since the devastating economic fallout of September 11th, and Congress cannot allow that protection to lapse," said Senator Lummis. "Wyoming deserves the certainty this program provides, and I am proud to join my colleagues in reauthorizing TRIA to keep our businesses, our economy, and our communities protected against any threat."

The Terrorism Risk Insurance Program Reauthorization Act of 20 26 would extend TRIA by seven years. Acting before the program expiration date of December 31, 2027, provides long-term market certainty and would prevent policyholders from facing a gap in coverage.

The Terrorism Risk Insurance Program Reauthorization Act of 2026 would extend TRIA by seven years. Acting before the program expiration date of December 31, 2027, provides long-term market certainty and would prevent policyholders from facing a gap in coverage.

The Terrorism Risk Insurance Act is also backed by the following stakeholders: Aerospace Industries Association, American Association of Port Authorities, American Bankers Association, American Council on Education, American Council of Engineering Companies, American Gaming Association, American Hotel and Lodging Association, American Land Title Association, American Property Casualty Insurance Association, American Public Gas Association, American Public Power Association, American Resort Development Association, American Society of Association Executives, Associated General Contractors of America, Association of American Railroads, Association of Art Museum Directors, Bank Policy Institute, Building Owners and Managers Association International, Commercial Real Estate Finance Council (CRE Finance Council), Community Associations Institute, Council of Insurance Agents and Brokers, Edison Electric Institute, Food Marketing Institute, Independent Insurance Agents & Brokers of America, Innovating Commerce Serving Communities, Institute of Real Estate Management, International Franchise Association, International Safety Equipment Association, Long Island Import Export Association, Mortgage Bankers Association, NAIOP, Nareit, National Apartment Association, National Association for Stock Car Auto Racing (NASCAR), National Association of Chain Drug Stores, National Association of College and University Business Officers (NACUBO), National Association of Home Builders, National Association of Mutual Insurance Companies, National Association of REALTORS, National Association of Waterfront Employers, National Council of Chain Restaurants, National Electrical Contractors Association, National Football League, National Hockey League, National Multifamily Housing Council, National Restaurant Association, National Retail Federation, National Roofing Contractors Association, National Rural Electric Cooperative Association, New England Council, Office of the Commissioner of Baseball, Partnership for NYC, Public Utilities Risk Management Association, The Real Estate Board of New York, The Real Estate Roundtable, Reinsurance Association of America, Taxicab, Limousine & Paratransit Association, University Risk Management and Insurance Association, U.S. Chamber of Commerce, U.S. Travel Association.

Read the full bill text here.

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