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

WASHINGTON – Senators Ruben Gallego (D-AZ), Dave McCormick (R-PA), Tina Smith (D-MN), and Thom Tillis (R-NC) 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. 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 policyholders to unnecessary financial risk and uncertainty. “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.” “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.” “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.” 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. “Extending the Terrorism Risk Insurance Act is critical to keeping insurance affordable and available for rental housing. TRIA provides the market certainty needed to support financing, protect residents, and sustain continued housing investment across the country,” said Courtney Gilstrap LeVinus, President & CEO of the Arizona Multihousing Association. “The Terrorism Risk Insurance Act is essential to maintaining stability in the commercial insurance market. TRIA provides a reliable federal backstop that allows banks to continue lending, supporting development, and protecting local economies from the uncertainty that terrorism‑related risks create. Our members view TRIA as a proven, bipartisan safeguard that strengthens economic resilience and ensures businesses of all sizes can access the coverage they need to operate and grow,” said Paul Hickman, President & CEO of the Arizona Bankers Association. “TRIA provides essential market certainty that helps employers, insurers, and developers manage terrorism risk in a responsible way. Reauthorizing this program is a commonsense step that supports continued investment and protects the stability of Arizona’s visitor economy,” said Kim Grace Sabow, President & CEO of the Arizona Lodging & Tourism Association. 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 .