The House approved legislation extending the federal terrorism insurance backstop through 2034, passing H.R. 7128 by a vote of 373-15.
The measure, sponsored by Rep. Mike Flood, R-Neb., now heads to the Senate for consideration. The Terrorism Risk Insurance Program, created after the September 11, 2001, attacks, requires private insurers to offer terrorism coverage while the federal government shares catastrophic losses above certain thresholds.
What the Bill Does
The legislation extends the program’s authorization for seven years beyond its current 2027 expiration. It raises the threshold for certifying a terrorism event to $10 million in insured losses beginning in 2029, up from $5 million.
The bill also grants explicit statutory authority to the Treasury Department to publicly explain how it determines whether an event qualifies for program coverage. Since TRIA’s creation, no claims have been paid out under the program.
Lawmakers Explain Rationale
Rep. French Hill, R-Ark., chairman of the House Financial Services Committee, stressed the program’s purpose during debate. “The law states that TRIA is designed to provide for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism in order to protect consumers,” Hill said.
Flood emphasized the need for updates alongside renewal. “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.
Business Support
Major business organizations including the U.S. Chamber of Commerce and the American Bankers Association have backed the reauthorization. They argue the program supports lending for commercial real estate, construction, and large venues that employ millions nationwide.
Without reauthorization, analysts warn insurers could reduce terrorism coverage offerings, potentially raising costs or limiting availability for businesses in major cities and high-profile locations.
