SENATE COMMITTEE PASSES TERRORISM RISK INSURANCE PROGRAM REAUTHORIZATION ACT

The following information was released by the American Public Power Association:

September 28, 2026

Paul Ciampoli

The Senate Banking Committee recently voted unanimously to pass S. 4395, the Terrorism Risk Insurance Program Reauthorization Act of 2026.

The bill would reauthorize the Terrorism Risk Insurance Program through 2031; it is currently scheduled to expire at the end of 2027.

A House companion bill (H.R. 7128) was approved by the House of Representatives in June.

APPA joined a coalition of stakeholders in sending a letter to Senate Banking Committee leadership urging swift passage of S. 4395.

APPA is also a member of the Coalition to Insure Against Terrorism, which also sent a letter in support of the bill.

Background

TRIA was signed into law in the wake of the September 11, 2011, terrorist attacks. The act established the Terrorism Risk Insurance Program (TRIP) to stabilize the market for terrorism risk insurance. TRIA/TRIP does not cover terrorism losses directly but instead reimburses private insurers for a portion of their losses and is limited to commercial property and casualty insurance.

Under TRIA, private insurers are required to make terrorism coverage available under essentially the same terms and conditions as for other types of insurance (there is no requirement, however, for an entity to buy terrorism coverage). For example, if a policy covers loss resulting from an accidental fire, the insurer must offer a policy that covers losses from a fire due to terrorism.

An individual act of terrorism must be certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and Attorney General, and losses must exceed certain thresholds for TRIA to be triggered.

While the U.S. has suffered terrorist attacks since the passage of TRIA, no acts of terrorism have been certified and no federal payments to insurers have occurred under TRIA.

Congress has reauthorized the program four times: in 2005, 2007, 2015 and 2019.

The current authorization is set to expire on December 31, 2027.