U.S. SENATOR TINA SMITH'S BIPARTISAN BILL TO EXTEND TERRORISM RISK INSURANCE, SUPPORT HOUSING CONSTRUCTION PASSES THE SENATE UNANIMOUSLY

The following information was released by the office of Minnesota Sen. Tina Smith:

Roughly 60 percent of American businesses have terrorism risk insurance, which is critical to major construction projects

WASHINGTON, DC U.S. Senator Tina Smith's bipartisan legislation to safeguard the availability of terrorism risk insurance coverage passed the full Senate by a unanimous vote. Roughly 60 percent of American businesses have terrorism risk insurance, which could become unavailable without further action by Congress. Sen. Smith (D-MN) led the bipartisan Terrorism Risk Insurance Program Reauthorization Act of 2026 alongside Senators Dave McCormick (R-PA), Ruben Gallego (D-AZ) and Thom Tillis (R-NC).

Following the attacks on September 11, 2001, many insurance companies started excluding terrorism risks 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 policy holders to unnecessary financial risk and uncertainty.

"Without this bill, a potential terrorism event would mean an even greater financial catastrophe for businesses and taxpayers. It's critical that we keep terrorism risk insurance available and affordable to businesses in Minnesota and across the country," said Sen. Smith. "Extending this law will ensure housing development and major public events like Vikings games can continue. I'm heartened to see it pass with such strong bipartisan support and urge the House to pass this bill."

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.

The Terrorism Risk Insurance Act is also backed by:

National Football League (NFL)

Major League Baseball (MLB)

National Association of Home Builders

National Multifamily Housing Council

American Council of Engineering Companies

U.S. Chamber of Commerce

American Hotel and Lodging Association

American Public Power Association

Independent Insurance Agents and Brokers of America

The American Property Casualty Insurance Association

National Association of Mutual Insurance Companies

Reinsurance Association of America

Coalition to Insure Against Terrorism

Real Estate Roundtable

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