The House of Representatives passed legislation extending the federal terrorism insurance backstop through 2034 by a vote of 373-15.
H.R. 7128, the TRIA Program Reauthorization Act of 2026, now moves to the Senate for consideration. The measure, sponsored by Rep. Mike Flood, R-Neb., reauthorizes a program created after the September 11, 2001, attacks that provides federal backing when insurers face catastrophic terrorism-related losses.
What the Program Does
TRIA operates as a public-private partnership requiring insurers to offer terrorism coverage to policyholders while the Treasury Department covers losses above certain thresholds following certified events. No claims have been paid under the program since its 2002 creation.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., said during debate: “The purpose of TRIA is 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 emphasized the program enables businesses to obtain the insurance needed for major construction and infrastructure projects.
Key Changes in the Legislation
The extension runs seven years beyond the program’s current December 2027 expiration date. The bill increases the threshold for certifying a terrorism act from $5 million to $10 million in insured losses beginning in 2029, meaning federal involvement would require higher losses to trigger government participation.
The legislation also grants explicit statutory authority to the Treasury Department to publicly communicate its process for determining whether events qualify as terrorism under the program. “If this program is going to continue to exist with a public backstop, we should ensure we update its charter to protect taxpayers,” Flood said.
Industry Support and Economic Impact
Business groups including the U.S. Chamber of Commerce and American Bankers Association have backed reauthorization, arguing that reliable terrorism coverage supports lending for commercial real estate, construction, and major venues. The sector supports millions of jobs across construction, property management, retail, and hospitality industries.
Without reauthorization, analysts warned that insurers could reduce terrorism coverage availability or increase costs, particularly in major metropolitan areas and high-profile locations. Large-scale projects such as office towers, stadiums, and shopping centers often depend on comprehensive insurance packages that include terrorism protection.
Path Forward
The bill does not expand the program’s scope or fundamentally alter its structure as a temporary federal backstop. Instead, it extends the existing framework with reforms aimed at greater transparency and fiscal accountability.
A companion measure has been introduced in the Senate, where the legislation now advances for consideration.