The House of Representatives voted overwhelmingly to extend the federal Terrorism Risk Insurance Program through 2034, advancing bipartisan legislation that provides federal backing for catastrophic insurance losses from certified terrorist attacks.

The measure, H.R. 7128, passed 373-15 and now heads to the Senate. The program was created following the September 11, 2001, terrorist attacks to ensure private insurers could manage losses from certified terrorism events while maintaining coverage availability for policyholders.

How the Program Works

Under the existing framework, private insurers must offer terrorism coverage to policyholders. The Treasury Department shares losses above certain thresholds after a certified attack occurs, protecting insurers from devastating financial exposure.

The legislation extends the program for seven years beyond its current December 2027 expiration date. It also raises the certification threshold for terrorism events to $10 million in insured losses beginning in 2029, up from the current $5 million requirement.

New Transparency Requirements

The bill grants explicit statutory authority to the Treasury Department to publicly disclose its process for determining whether an event qualifies as terrorism under the program. Supporters argue these updates strengthen taxpayer protections while maintaining the program’s core function.

“The program protects consumers and enables economic growth,” said House Financial Services Committee Chairman Rep. French Hill, R-Ark.

Business and Economic Impact

The U.S. Chamber of Commerce and the American Bankers Association have backed the reauthorization, arguing that predictable terrorism coverage supports lending for commercial real estate, construction activity, and large venues.

Without reauthorization, analysts warn insurers could reduce terrorism coverage offerings, potentially raising costs or limiting availability in major metropolitan areas. The Senate’s timeline for considering the measure remains unclear.