The House of Representatives passed legislation extending the federal Terrorism Risk Insurance Program through 2034 with overwhelming bipartisan support, advancing protections for commercial insurers and policyholders.
Lawmakers approved H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 373-15. The measure, sponsored by Rep. Mike Flood, R-Neb., chairman of the House Financial Services Subcommittee on Housing and Insurance, now heads to the Senate for consideration.
The program, established after the September 11, 2001, terrorist attacks, provides a federal backstop for property and casualty insurers facing catastrophic losses from certified terrorism acts. Private insurers must offer terrorism coverage to policyholders, while the Treasury Department shares in losses above specified thresholds when a certified event occurs.
What the Legislation Does
The bill extends authorization seven years beyond the program’s current expiration at the end of 2027. It also raises the threshold for certifying terrorism acts, increasing minimum insured losses required 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 an event qualifies as terrorism under the program. This transparency measure addresses concerns about how certification decisions are made.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., stated during floor debate, “The purpose of TRIA is spelled out in the original law. 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.”
Program History and Safeguards
TRIA operates as a public-private partnership where insurers retain responsibility for initial losses and 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 more than two decades ago.
Rep. Flood emphasized the need for updates alongside reauthorization, saying, “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, and we should work to ensure the certification process is transparent.”
Business and Industry Support
Industry 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, construction activity, and the operation of large venues and infrastructure essential to the national economy.
Without reauthorization, analysts have warned of potential pullbacks by insurers in offering terrorism coverage, which could raise costs or limit availability for businesses in major metropolitan areas and high-profile sites. The sector supports millions of jobs across construction, property management, retail, and hospitality industries.
Supporters framed the legislation’s updates as prudent adjustments that strengthen taxpayer safeguards while preserving the program’s core function. Raising the certification threshold requires a higher bar of insured losses for federal involvement, reducing the likelihood of smaller events triggering government participation.
What Comes Next
The bill advances to the Senate, where a companion measure has also been introduced. The legislation reflects broad agreement across both chambers on the program’s necessity for economic stability and market confidence.
