The House of Representatives voted 373-15 to extend the federal Terrorism Risk Insurance Program through 2034, sending legislation to the Senate with overwhelming bipartisan support.
The bill, H.R. 7128, reauthorizes a program created after the September 11, 2001, terrorist attacks that provides a federal backstop when insurers face catastrophic losses from certified terrorism events. No claims have been paid under the program since its creation, according to lawmakers.
What the Legislation Does
The measure extends the program for seven years beyond its current expiration at the end of 2027 and raises the threshold for certifying an act of terrorism. Beginning in 2029, the minimum insured losses required to trigger the program would increase from $5 million to $10 million.
The bill also grants explicit statutory authority to the Treasury Department to issue public notifications about its process for determining whether an event qualifies as terrorism under the program. Rep. Mike Flood, R-Neb., the bill’s sponsor and chairman of the House Financial Services Subcommittee on Housing and Insurance, said the updates strengthen taxpayer protections.
“If this program is going to continue to exist with a public backstop, we should ensure we update its charter to protect taxpayers in the event of future claims,” Flood said during floor debate.
How the Program Works
TRIA operates as a public-private partnership where private insurers must offer terrorism coverage to policyholders. The insurers retain responsibility for initial losses, with the federal government only stepping in for exceptionally large events exceeding defined thresholds.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., said the program’s purpose remains essential to the economy. “The goal here is to give policyholders access to the financial protection they need and the confidence they need to build skyscrapers, sports venues, and malls, and employ workers that drive our economy,” Hill said.
Industry Support and Next Steps
Business groups including the U.S. Chamber of Commerce and the American Bankers Association have backed the reauthorization. They argue that predictable terrorism coverage supports lending for commercial real estate projects and large-scale venues that employ millions.
Without reauthorization, analysts have warned that insurers could pull back on offering terrorism coverage, raising costs or limiting availability for businesses in major metropolitan areas. The bill now advances to the Senate, where a companion measure has been introduced.
