Congressman Troy Downing of Montana’s 2nd Congressional District has introduced the McCarran-Ferguson Restoration Act, a bill aimed at eliminating the Federal Insurance Office (FIO) and making changes to federal oversight of insurance regulation. The proposed legislation would establish a United States Insurance Representative, appointed by the Treasury Secretary, and give state insurance commissioners a voting seat on the Financial Stability Oversight Council (FSOC).
Earlier in 2025, Congressman Downing introduced another bill—the Federal Insurance Office Elimination Act—which sought to remove the FIO entirely. According to Downing’s office, the new McCarran-Ferguson Restoration Act incorporates feedback from industry stakeholders to retain certain functions of the FIO, such as representing U.S. interests internationally and maintaining involvement with FSOC.
The bill is cosponsored by Representatives Scott Fitzgerald of Wisconsin and Andy Ogles of Tennessee. It has received support from several industry organizations including the National Association of Mutual Insurance Companies (NAMIC), Independent Insurance Agents & Brokers of America (Big “I”), National Association of Professional Insurance Agents (PIA), American Property Casualty Insurance Association (APCIA), and 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.”
Jimi Grande, NAMIC’s Senior Vice President of Federal & Political Affairs, commented: “The consensus is clear: regulatory authority over insurance should be left to the states. 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.”
Nathan Riedel, Senior Vice President for Federal Government Affairs at Big “I”, stated: “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. 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.”
Mike Skiados, CEO at PIA added: “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. 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.”
Sam Whitfield from APCIA said: “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. 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.”
Scott A. White, NAIC President and Virginia Insurance Commissioner noted: “State insurance regulators strongly support Rep. Troy Downing’s McCarran-Ferguson Restoration Act because it restores the proper balance between states and federal government. 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 U.S.’s system of state-based supervision.”
Congress first passed legislation granting states authority over regulating insurance in 1945 through what became known as the McCarran-Ferguson Act. In 2010, Congress established FIO within Treasury via the Dodd–Frank Wall Street Reform and Consumer Protection Act, giving it broad authority over monitoring aspects of U.S.’s insurance sector.
Downing previously served as Montana State Auditor before introducing both elimination bills targeting FIO since early 2025.
If enacted into law as currently written, Downing’s proposal would eliminate FIO; create an appointed United States Insurance Representative; expand voting rights on FSOC for state commissioners; limit new roles only to prudential matters; require specialized hiring within Treasury; assign international representation duties; assist in administering terrorism risk programs; but not authorize new appropriations or funding.