Terrorism Risk Insurance Program Reauthorization Act of 2026
- Bill Number
- S. 4395
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-27: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-06-10T11:03:26Z
AI-Generated Summary
Terrorism Risk Insurance Program Reauthorization Act of 2026 (S. 4395)
Purpose
This bill reauthorizes the Terrorism Risk Insurance Act (TRIA) of 2002, a federal program that provides a temporary financial backstop (support) to private insurers for covering losses from certified terrorist attacks. The goal is to ensure the continued availability and affordability of terrorism risk insurance in the commercial property market.
Key Provisions
- Program Extension: Extends the TRIA program's termination date from 2027 to 2034, providing a 7-year renewal.
- Recoupment Timeline Adjustments: Updates deadlines for "mandatory recoupment," a process where the federal government recovers its payouts through surcharges on insurance policyholders:
- Shifts certain recoupment start and end dates from 2022–2029 to 2029–2036.
- Specific changes include moving triggers from 2022 to 2029, 2023 to 2030, 2024 to 2031, and 2029 to 2036.
Significant Changes to Existing Law
- Amends Section 108(a) of TRIA to delay program sunset (expiration) by 7 years.
- Revises Section 103(e)(7)(E)(i) subclauses (I), (II), and (III) to align recoupment periods with the extended program timeline, preventing premature federal reimbursement requirements.
Potential Impacts
- Insurers and Markets: Maintains stability in the insurance industry by ensuring federal reinsurance (backup coverage) against large-scale terror losses, potentially lowering premiums for businesses.
- Citizens and Businesses: Supports affordable coverage for commercial properties, reducing financial risks from terrorism for property owners, real estate developers, and companies.
- Government: Extends Treasury Department oversight without immediate new costs, as recoupment shifts future burdens to policyholders.
- No direct impacts on international relations noted.
Main Stakeholders
- Insurers: Primary beneficiaries of the federal backstop for terror-related claims.
- Policyholders: Commercial property owners and businesses paying for terrorism coverage.
- U.S. Treasury Department: Administers the program and handles payouts/recoupment.
- Congress: Bipartisan sponsors from both parties indicate broad support for market stability.
Notable Legal, Constitutional, or Political Implications
- Legal: Simple statutory extensions with no new authorities or funding; aligns with prior TRIA reauthorizations (e.g., 2015, 2019).
- Constitutional: No apparent challenges, as it involves Congress's commerce clause powers over insurance markets.
- Political: Bipartisan introduction (28 cosponsors) suggests low controversy, focusing on economic security rather than partisan issues; reinforces U.S. commitment to countering terrorism's financial effects.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (28)
Sen. Smith, Tina [D-MN], Sen. Tillis, Thomas [R-NC], Sen. Gallego, Ruben [D-AZ], Sen. Scott, Tim [R-SC], Sen. Kim, Andy [D-NJ], Sen. Kennedy, John [R-LA], Sen. Van Hollen, Chris [D-MD], Sen. Ricketts, Pete [R-NE], Sen. Cortez Masto, Catherine [D-NV], Sen. Cramer, Kevin [R-ND], Sen. Alsobrooks, Angela D. [D-MD], Sen. Crapo, Mike [R-ID], Sen. Warnock, Raphael G. [D-GA], Sen. Rounds, Mike [R-SD], Sen. Blunt Rochester, Lisa [D-DE], Sen. Britt, Katie Boyd [R-AL], Sen. Warner, Mark R. [D-VA], Sen. Hagerty, Bill [R-TN], Sen. Schumer, Charles E. [D-NY], Sen. Banks, Jim [R-IN], Sen. Moreno, Bernie [R-OH], Sen. Lummis, Cynthia M. [R-WY], Sen. Sheehy, Tim [R-MT], Sen. Padilla, Alex [D-CA], Sen. Capito, Shelley Moore [R-WV], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Boozman, John [R-AR], Sen. Baldwin, Tammy [D-WI]
Recent Actions
- 2026-04-27: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-27: Introduced in Senate
Bill Versions
- Terrorism Risk Insurance Program Reauthorization Act of 2026 — issued 2026-04-27 — PDF (2 pages)