Sponsors (25)
The bill preserves a federal terrorism insurance backstop that helps businesses and stabilizes the insurance market, but it continues taxpayer contingent liability and may weaken incentives for private-market risk solutions while altering cost-recoupment timing.
Small businesses and insurers keep access to the federal terrorism insurance backstop for seven more years, preserving a government safety net that supports recovery after a large terrorist attack.
Extending the program reduces insurers' catastrophic-exposure uncertainty, helping maintain market capacity and supporting more stable commercial insurance availability and premiums.
Clarifying and adjusting the timing for mandatory recoupment gives insurers and the federal administrator clearer expectations about when reimbursements will be billed and collected.
All taxpayers face continued contingent liability because the federal terrorism-loss backstop is extended for seven years, keeping risk on the federal balance sheet.
Extending the federal backstop may reduce incentives for private-market solutions to price and share terrorism risk, potentially delaying market-based reforms and long-term risk reduction.
Changes to mandatory recoupment timing could accelerate or increase costs for insurers or policyholders if recoupment triggers or billing windows shift earlier, creating near-term cost timing risks.
Based on analysis of 2 sections of legislative text.
Extends the terrorism risk insurance federal backstop by seven years and revises the timing rules for mandatory recoupment from insurers.
Extends the federal Terrorism Risk Insurance Program for seven more years and changes when mandatory recoupment obligations are triggered and billed. The bill does not appropriate new funds but alters the program termination date and revises timing language that affects when insurers and the Treasury begin mandatory recoupment after a covered terrorism loss. The changes mainly affect insurers, policyholders who buy terrorism coverage (often businesses), and the federal administrator responsible for running the program. The revision to recoupment timing can change cash‑flow and billing schedules for insurers and could influence premium-setting and market behavior.
Introduced April 27, 2026 by David Harold McCormick · Last progress April 27, 2026