Downing Introduces McCarran-Ferguson Restoration Act
Today, Congressman Troy Downing (MT-02) introduced the McCarran-Ferguson Restoration Act. This legislation will eliminate the Federal Insurance Office (FIO), create a United States Insurance Representative, appointed by the Treasury Secretary, and expand state insurance representation on FSOC by elevating the current nonvoting state insurance commissioner to a voting member.
In early 2025, Congressman Downing introduced the Federal Insurance Office Elimination Act which eliminated the office and all of its features in its entirety. The McCarran-Ferguson Restoration Act reflects substantial industry feedback to preserve key functions of the office like the facilitation of U.S. representation on the international stage and Financial Stability Oversight Council (FSOC) representation.
Original cosponsors of the McCarran-Ferguson Restoration Act include Rep. Scott Fitzgerald (WI-05) and Rep. Andy Ogles (TN-05). Supporting organizations include the National Association of Mutual Insurance Companies (NAMIC), the Independent Insurance Agents & Brokers of America (Big “I”), the National Association of Professional Insurance Agents (PIA), the American Property Casualty Insurance Association (APCIA), and the National Association of Insurance Commissioners (NAIC).
“The Federal Insurance Office exists in spite of the fact that the regulation of insurance has and always will belong to the states,” said Congressman Downing. “FIO is a duplicative federal bureaucracy that hinders the efforts of state regulators better equipped to address the insurance needs of their communities. The McCarran-Ferguson Restoration Act affirms this by eliminating the Federal Insurance Office while preserving some of its key features, delivering greater clarity for U.S. insurance regulation.”
“The consensus is clear: regulatory authority over insurance should be left to the states,” said Jimi Grande, NAMIC SVP of Federal & Political Affairs. "Rather than informing federal policymakers, the Federal Insurance Office has for years duplicated the work of state regulators, routinely exceeding statutory guidance and inflicting burdensome costs that are ultimately paid by consumers. As a former state insurance commissioner, Congressman Downing knows this all too well, and NAMIC appreciates his leadership in stopping this wasteful federal overreach.”
“We are thankful to Rep. Downing for his work to protect the integrity of McCarran-Ferguson and the state-based regulatory system. Over the years, the Federal Insurance Office (FIO) has shown to have questionable value for insurance markets as well as consumers,” said Big “I” SVP of Federal Government Affairs Nathan Riedel. “As the largest association representing independent insurance agents and brokers, the Big ‘I’ supports eliminating the FIO, and affirming the valuable work that state regulators do.”
“The McCarran-Ferguson Restoration Act safeguards the proven state-based system of insurance regulation by repealing the Federal Insurance Office—an unnecessary federal bureaucracy created under the 2010 Dodd-Frank Act,” said PIA CEO Mike Skiados. “For more than a century, state regulators have effectively protected both consumers and the insurance marketplace, and they remain best positioned to do so moving forward. PIA appreciates Rep. Troy Downing for his leadership and commitment to preserving the state insurance regulatory system.”
"The McCarran-Ferguson Restoration Act is a critical measure to preserve the strength of our state-based system of insurance regulation–a framework that has protected consumers and ensured market stability for decades,” said Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement. “The bill also equips the Treasury Department with tools to advocate for this proven system internationally, while appropriately eliminating unnecessary powers of the Federal Insurance Office. APCIA thanks Rep. Downing for his leadership and commitment to working collaboratively with stakeholders to advance this important legislation."
“State insurance regulators strongly support Rep. Troy Downing’s McCarran-Ferguson Restoration Act because it restores the proper balance between the states and the federal government,” said NAIC President and Virginia Insurance Commissioner Scott A. White. “Insurance regulation has always been, and should always remain, a state responsibility. This legislation eliminates a federal office that conflicted with that framework, while preserving a focused, non-regulatory role for Treasury to engage internationally and defend the U.S. system of state-based supervision. It reinforces regulatory clarity and respects the model that has successfully protected policyholders for more than a century and a half.”
Background:
In 1945, Congress passed the McCarran-Ferguson Act, solidifying states’ regulatory authority over the insurance industry.
The 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act created the Federal Insurance Office under Treasury, charging FIO with “the authority to monitor all aspects of the insurance sector,” clearly violating McCarran-Ferguson.
Prior to introducing the Federal Insurance Office Elimination Act, Congressman Downing served as Montana State Auditor, overseeing the Treasure State’s securities and insurance industries.
Downing introduced the Federal Insurance Office Elimination Act in early 2025 which eliminated FIO broadly.
The McCarran-Ferguson Restoration Act would eliminate the Federal Insurance Office (FIO), create a United States Insurance Representative appointed by the Treasury, and expand state insurance representation on FSOC by elevating the current nonvoting state insurance commissioner to a voting member.
The roles of the United States Insurance Representative would include representing the federal government on the international stage, replacing the FIO Director as a nonvoting member on the Financial Stability Oversight Council, and assisting in administering the Terrorism Risk Insurance Act (TRIA).
Notably, the bill narrows the scope of the Insurance Representative to prudential aspects of insurance only, requires Treasury to hire and retain individuals with expertise in matters related to insurance, and includes no authorization of appropriations.
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