Congress extends terrorism insurance backstop, shifts $5B in risk to private insurers

What it does

This bill extends the Terrorism Risk Insurance Program (TRIA) through 2034, allowing the federal government to backstop catastrophic terrorism-related insurance losses. It raises the threshold for federal coverage from $5 billion to $10 billion for acts after 2029, streamlines the process for certifying acts as terrorism (with a 90-day review period, extendable to one year), and requires the Secretary to publish notices and final determinations in the Federal Register so the public knows which incidents are under review and why.

Why we flagged it

The bill's core function is reauthorizing and modifying the federal terrorism insurance backstop—a program that directly affects how private insurers price and manage terrorism risk. The threshold increase and certification-process changes are regulatory adjustments that benefit the insurance sector by clarifying rules and reducing federal exposure.

What the text implies

• Raising the federal threshold from $5B to $10B for post-2029 acts effectively privatizes more terrorism risk, shifting potential losses to insurers and their customers; this may reduce insurance availability or raise premiums in high-risk areas.
• The 90-day certification timeline with a one-year extension creates a window of uncertainty during which insurers cannot finalize claims or reserve adequately, potentially destabilizing markets during active investigations.
• Public notice requirements in the Federal Register may inadvertently signal to markets which incidents are under terrorism review, affecting stock prices and insurance-sector volatility before official determinations are made.
• The bill does not address how the higher threshold interacts with state insurance regulation or whether states can mandate coverage below the federal floor, creating potential coverage gaps for consumers.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens benefit from clearer, faster terrorism certification decisions and public transparency about which incidents qualify for federal backstop coverage—reducing uncertainty for insurers and potentially stabilizing insurance markets. However, raising the federal threshold from $5B to $10B for post-2029 acts shifts more catastrophic-loss risk onto private insurers and ultimately consumers, who may face higher premiums or coverage gaps if a major attack occurs.

Who stands to gain

• property and casualty insurers (AIG, Arch Capital, Everest Re, etc.)
• reinsurers
• insurance brokers and agents

Named in the bill

Terrorism Risk Insurance Program (TRIA), Terrorism Risk Insurance Act of 2002, Secretary of the Treasury, Federal Insurance Office, AIG, Arch Capital, Everest Re, Axis Capital, XL Capital, Federal Register

Where it stands

4 cosponsors: 3 Democrats, 1 Republicans.

• Jan 16, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jan 16, 2026 — Referred to House Committee on Financial Services and Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Referred to the House Committee on Financial Services”
• Jan 22, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jan 22, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 2”
• Jun 29, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required)…”
• Jun 29, 2026 — Floor vote scheduled · Congress.gov: “Mr. Flood moved to suspend the rules and pass the bill, as amended”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

41 lobbying clients named this bill on 44 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $68,163,073 in lobbying spend. A filing names 10 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 99% of bills with at least one filing.

Mike Flood, the sponsor, reported $1,190,756 in PAC receipts in the 2026 cycle. $11,500 of that came from 2 PACs tied to these lobbying clients.

• Chamber of Commerce of the U.S.A. — $36,700,000 on 2 filings
• National Association of Realtors — $14,580,000 on 1 filing
• American Bankers Association — $3,510,000 on 1 filing
• National Multifamily Housing Council Inc — $2,330,000 on 1 filing
• American Property Casualty Insurance Association — $2,140,000 on 1 filing

Lobbying Disclosure Act filings through Jul 23, 2026. A filing shows who paid to lobby on a bill it names, not what changed.