The House approved legislation to extend the federal terrorism risk insurance program through 2034, sending the measure to the Senate with overwhelming bipartisan support.
Lawmakers voted 373-15 to pass H.R. 7128, the TRIA Program Reauthorization Act of 2026, sponsored by Rep. Mike Flood, R-Neb. The program, established after the September 11, 2001, attacks, provides a federal backstop for property and casualty insurers facing catastrophic losses from certified terrorist acts.
How the Program Works
Under the existing framework, private insurers must offer terrorism coverage to policyholders while the Treasury Department shares losses above certain thresholds once a certified event occurs. No claims have been paid under the program since its creation, a point supporters cite as evidence of its role in stabilizing the market.
The public-private partnership ensures insurers retain responsibility for initial losses, with federal involvement only for exceptionally large events. This structure has maintained a functioning private market for terrorism coverage since reinsurers largely withdrew after 2001.
What the Bill Changes
The legislation extends the program’s authorization for seven additional years beyond its current December 2027 expiration. It also raises the threshold for certifying a terrorism act, increasing minimum insured losses required from $5 million to $10 million starting in 2029.
The bill grants explicit statutory authority to the Treasury Department to issue public notifications regarding its process for determining terrorism event qualification. These updates strengthen taxpayer safeguards while preserving the program’s core function, lawmakers said.
Industry Support and Economic Impact
Business groups including the U.S. Chamber of Commerce and American Bankers Association have backed the reauthorization, arguing that predictable terrorism coverage supports lending for commercial real estate projects and large venues. Without the program, analysts warn that insurers could limit availability or raise costs for businesses in major cities and high-profile sites.
The sector supports millions of jobs in construction, property management, retail, hospitality, and related industries nationwide. Large-scale projects such as office towers, stadiums, and shopping centers often require comprehensive insurance packages that include terrorism coverage.
What Happens Next
The bill now advances to the Senate, where a companion measure has been introduced. House Financial Services Committee Chairman Rep. French Hill, R-Ark., emphasized during floor debate that the program protects consumers and gives businesses confidence to invest.
