The House overwhelmingly approved legislation to extend the federal Terrorism Risk Insurance Program through 2034, sending the bill to the Senate with 373-15 bipartisan support.
The program, created after the September 11, 2001 attacks, provides a federal backstop when insurance companies face catastrophic losses from certified terrorism events. H.R. 7128 extends coverage for seven years beyond the program’s current expiration at the end of 2027.
The legislation raises the threshold for certifying a terrorism event beginning in 2029, increasing minimum insured losses required to trigger federal involvement from $5 million to $10 million. The bill also grants the Treasury Department explicit authority to issue public notifications about its process for determining whether an event qualifies as terrorism under the program.
Strengthening Taxpayer Protections
Rep. Mike Flood, R-Neb., the bill’s sponsor and chairman of the House Financial Services Subcommittee on Housing and Insurance, emphasized the updates protect taxpayers, “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.
TRIA operates as a public-private partnership where private insurers must offer terrorism coverage to policyholders while retaining responsibility for initial losses, with the federal government only intervening for exceptionally large events exceeding defined thresholds.
Economic Impact and Business Support
House Financial Services Committee Chairman Rep. French Hill, R-Ark., stressed the program’s importance to economic development, “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.
Business groups including the U.S. Chamber of Commerce and the American Bankers Association have backed reauthorization, arguing that predictable terrorism coverage supports lending for commercial real estate projects and large-scale venues. Without reauthorization, analysts have warned that insurers could reduce terrorism coverage offerings, raising costs or limiting availability for businesses in major metropolitan areas.
No claims have been paid under the program since its 2002 creation, according to lawmakers. The bill now advances to the Senate, where a companion measure has been introduced.
