Sponsors (41)
Extending the federal terrorism insurance backstop protects businesses and stabilizes the insurance market but maintains taxpayer exposure and may damp private-market solutions while creating potential timing-related cost shifts for insurers and policyholders.
Small businesses and insurers remain protected by the federal terrorism loss backstop because TRIP is extended 7 years, preserving coverage for terrorism-related claims.
Insurers and policyholders (including small businesses) face reduced uncertainty about catastrophic terrorism exposure, supporting insurer market capacity and helping keep commercial insurance premiums steadier.
Insurers and taxpayers gain clearer expectations on when mandatory recoupment/reimbursement charges will be billed due to clarified recoupment timing.
Taxpayers remain exposed to potential federal liabilities for terrorism losses because the federal backstop is extended 7 years.
Insurers and taxpayers may face weaker incentives to develop private-market solutions for terrorism risk, because the federal backstop extension reduces pressure for market-based pricing and risk-sharing reforms.
Insurers and policyholders (including small businesses) could face accelerated or higher costs if changes to mandatory recoupment timing shift when charges are collected.
Based on analysis of 2 sections of legislative text.
Extends the Terrorism Risk Insurance Program seven years and revises when mandatory recoupment of federal payments begins.
Official title: Reauthorize the Terrorism Risk Insurance Act of 2002, and for other purposes.
Introduced April 27, 2026 by David Harold McCormick · Last progress April 27, 2026
Extends the federal Terrorism Risk Insurance Program (TRIP) by seven years and changes the statutory wording that governs when insurers and the federal government must begin mandatory recoupment of federal assistance. The bill keeps the program in place longer and alters timing/trigger language for repaying federal backstops after a certified terrorism loss.