Republican-led US Senate Passes Terrorism Risk Insurance Program till 2034

Int’l Insurance Desk: The US Senate late Monday gave its approval to the Terrorism Risk Insurance Program Reauthorization Act of 2026, clearing the way to keep the federal backstop for terrorism coverage in place through the end of 2034.

Senators approved Senate Bill 4395 by unanimous consent. The measure was introduced in April by Sens. David McCormick of Pennsylvania, Tina Smith of Minnesota, Thom Tillis of North Carolina and Ruben Gallego of Arizona. It simply extends the existing program for seven years beyond its current Dec. 31, 2027 expiration date and adjusts the timing of certain mandatory recoupment provisions.

The Terrorism Risk Insurance Act, known as TRIA, was first enacted in 2002 in the wake of the Sept. 11 attacks to stabilize the commercial insurance market after private carriers began excluding terrorism risks. Congress has reauthorized it several times since then, most recently in 2019. The program requires insurers to offer terrorism coverage and provides a federal share of losses once certain thresholds are met. To date no event has been certified under the law and no federal payments have been made.

The House of Representatives passed its own version of the legislation, H.R. 7128, by a 373-15 vote in late June. That bill also runs the program through 2034 but includes two changes the Senate version lacks. It would raise the minimum insured loss needed to certify an act of terrorism from $5 million to $10 million beginning in 2029 and would require the Treasury Department to give public notice during the certification process.

Those differences mean the two chambers still need to work out a single piece of legislation before it can go to the president. Industry groups have pressed lawmakers to finish the process this year rather than wait until closer to the 2027 deadline, arguing that early action avoids uncertainty for policyholders and for large construction and commercial projects that rely on the coverage.

Senator McCormick said in a statement that state sponsors of terror pose a persistent threat and that the country must remain prepared. Supporters note that roughly 60% of American businesses carry terrorism risk insurance and that the program underpins financing for major developments and public events.