S 4395: Terrorism Risk Insurance Program Reauthorization Act of 2026
S 4395 in plain English: This bill reauthorizes the federal Terrorism Risk Insurance Program through 2034, extending a program that covers a portion of losses that private insurance companies incur when providing property and casualty insurance against terrorism risks.
Stated purpose
To reauthorize the Terrorism Risk Insurance Program through 2034, extending a federal program that covers a share of losses private insurers face from terrorism-related property and casualty insurance claims.
Key points
- Extends the Terrorism Risk Insurance Program through 2034
- Covers a share of losses private insurers face from terrorism-related property and casualty claims
Arguments supporters make
- Without this program, private insurers might stop offering terrorism coverage entirely, leaving businesses unable to get insurance they need to operate or obtain financing.
- The program has been in place since after 9/11 and provides stability to commercial real estate, construction, and other industries that depend on terrorism coverage.
- The government can recoup some of its payouts over time, so the program is not simply a giveaway — it acts more like a backstop than a blank check.
Arguments opponents make
- Continuously renewing this program prevents the private insurance market from developing its own solutions, keeping the industry dependent on a government safety net.
- Taxpayers bear real financial risk if a major attack occurs, and repeated reauthorizations push that risk further into the future without a clear exit strategy.
- The extension benefits large commercial and financial interests most, raising questions about whether the program's costs and risks are fairly shared with the public.
Tradeoffs
Extending the program gives businesses and insurers certainty and keeps terrorism coverage available, but it also prolongs government financial exposure and may reduce pressure on the private market to handle this risk on its own.
Current status in Congress: Passed Senate.
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