On September 28, 2026, the Senate passed S. 4395, the Terrorism Risk Insurance Program Reauthorization Act of 2026, by unanimous consent, as Insurance Journal reported. The Senate Banking Committee had advanced the bill 24-0 earlier in the month. The House passed its own bill, H.R. 7128, in June by a vote of 373-15, according to Business Insurance. Both bills would extend the federal terrorism insurance backstop through 2034. The program is currently set to expire on December 31, 2027.
The two bills are not identical, so Congress still has to settle on one text and send it to the president. Industry groups have said they hope to finish by the end of 2026. For owners of commercial real estate and the lenders who finance it, the vote is good news, but it is not yet law, and the details of the final text will matter.
What the program does
The Terrorism Risk Insurance Act was enacted in 2002 after the September 11 attacks. It requires insurers to offer terrorism coverage on eligible commercial lines and puts the federal government behind them for large losses. The Congressional Research Service summarizes the current terms: an act must be certified by the Treasury Secretary and cause more than $5 million in insured losses; federal sharing begins only after aggregate insured losses pass $200 million in a year; each insurer first retains a deductible equal to 20% of its premium on eligible lines; and Treasury then reimburses 80% of the insurer's losses above that deductible. Federal payments can later be recouped, in part through surcharges on commercial policyholders.
The program has never been triggered by a certified terrorism event. Its value to the market lies in what insurers are willing to write because it exists.
What the market looks like with the backstop in place
Treasury's Federal Insurance Office reported in its June 2026 program effectiveness report that terrorism risk insurance "remains generally available and affordable." Where terrorism coverage was embedded in a commercial policy, it averaged between 2.3% and 2.8% of total policy premium from 2023 to 2025, and about 31% of policies by premium carried it at no additional charge. The same report noted some decline in take-up and in the limits purchased. CRS puts overall take-up at roughly 60% to 80%, depending on how it is measured.
Where the two bills differ
The Senate bill is a clean seven-year extension. The House bill adds two changes, as a law firm analysis published October 1 sets out.
| Provision | House, H.R. 7128 | Senate, S. 4395 |
|---|---|---|
| Extension | Through 2034 | Through 2034 |
| Certification threshold | Raised from $5 million to $10 million in insured losses, starting in 2029 | No change |
| Certification process | Treasury must publish a Federal Register notice within 30 days of beginning a certification review, and an event not certified within 90 days of that notice can no longer be certified | No change |
For owners, the threshold change is the one to watch. If it survives, from 2029 an attack causing between $5 million and $10 million in insured losses could not be certified, so it would not count toward the program's $200 million annual trigger, and coverage would depend on how the policy treats an uncertified act. The deadline provisions would shorten the period in which an owner and insurer wait to learn whether an event is certified, which affects how a claim is handled.
Why owners and lenders should not wait for the final vote
Insurance programs and loans are written for terms that already run past 2027. Insurance Journal reported that insurers and policyholders are already negotiating policies that extend beyond that date. National Association of Mutual Insurance Companies senior vice president Jimi Grande said that "construction and development across the country depend on having coverage against terrorism available," as Beinsure reported.
There is a precedent for timing risk. The program expired on December 31, 2014, and was not restored until legislation was enacted on January 12, 2015. Congress has reauthorized the program four times, in 2005, 2007, 2015 and 2019, but not always on time.
Owners and lenders can act on four points now.
1. Read the policy past 2027
Ask the broker whether any property or liability policy that runs beyond December 31, 2027 contains wording that changes terrorism coverage if the program lapses, and what happens to the premium if it does.
2. Check the loan documents
Review any insurance covenant that refers to terrorism coverage. Confirm what the borrower must carry, whether the requirement is capped by cost, and what happens if coverage becomes unavailable or much more expensive.
3. Plan for the threshold
If the House threshold change is enacted, smaller events will sit outside the federal backstop from 2029. Ask how the current insurer would respond to an uncertified event, and whether the policy's limits and deductibles fit that case.
4. Do not confuse the backstop with protection
The program spreads the cost of a rare, certified catastrophe. It does nothing to reduce the chance or severity of an attack on a particular building, and it does not respond to the many violent events that are never certified. Those losses sit with the owner, the owner's own insurance and, potentially, liability claims about whether security was reasonable.
The diligence point
Reauthorization looks likely, and both chambers agree on the length. That makes the extension itself less of an investment question than what sits beneath it. For a given asset, the useful questions are what threats the building was designed against, what the insurance program assumes, and what records show that the security measures are maintained. A building whose design basis, insurance and maintenance records line up is easier to insure, finance and defend, with or without a federal backstop behind the market.
Frequently asked questions
Is the TRIA extension law yet?
Not as of early November 2026. The House passed H.R. 7128 in June and the Senate passed S. 4395 on September 28. The chambers must agree on one text before it goes to the president. Until then, the program is scheduled to expire on December 31, 2027.
What would change for policyholders?
Under the Senate bill, nothing beyond the extension. Under the House bill, the certification threshold would rise from $5 million to $10 million in 2029, and Treasury would face deadlines for deciding whether to certify an event.
Does the program cover every attack on a building?
No. Federal sharing applies only to acts the Treasury Secretary certifies and only after insured losses pass the program thresholds. Other events are handled by private insurance under the policy's own terms.
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