The House of Representatives approved legislation extending the federal Terrorism Risk Insurance Program through 2034, with a 373-15 vote that sends the measure to the Senate.
H.R. 7128, the TRIA Program Reauthorization Act of 2026, maintains a federal backstop for property and casualty insurers facing catastrophic losses from certified terrorism acts. The program was established following the September 11, 2001, terrorist attacks to ensure insurers provide terrorism coverage to policyholders while sharing losses with the federal government.
What the Legislation Does
The bill extends the program’s authorization through 2034, adding seven years beyond the current expiration at the end of 2027. It also raises the minimum insured losses threshold for certifying a terrorism event from $5 million to $10 million beginning in 2029.
The legislation grants explicit statutory authority to the Treasury Department to issue public notifications about its process for determining whether events qualify as terrorism under the program. Supporters say these updates strengthen taxpayer protections while preserving the program’s core function.
Why It Matters
Rep. French Hill, R-Ark., chairman of the House Financial Services Committee, emphasized the program’s purpose during floor debate. “The law 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.
Business groups including the U.S. Chamber of Commerce and American Bankers Association have backed reauthorization, arguing that predictable terrorism coverage supports lending for commercial real estate projects and large-scale developments. Without the program, analysts warn insurers could limit terrorism coverage availability in major metropolitan areas, potentially raising costs for businesses.
Program History and Impact
TRIA operates as a public-private partnership where insurers retain responsibility for initial losses while the federal government intervenes only for exceptionally large events exceeding defined retention levels. No claims have ever been paid under the program since its creation, a fact frequently cited by supporters as evidence of its stabilizing role.
Rep. Mike Flood, R-Neb., the bill’s lead sponsor and chairman of the House Financial Services Subcommittee on Housing and Insurance, noted the importance of both extending and updating the program. “We should ensure we update its charter to protect taxpayers in the event of future claims, and we should work to ensure the certification process is transparent,” Flood said.