The House voted 373-15 to extend the federal terrorism insurance backstop through 2034, sending legislation to the Senate.
H.R. 7128, the TRIA Program Reauthorization Act of 2026, extends a Depression-era insurance mechanism created after the September 11, 2001, attacks. The program requires private insurers to offer terrorism coverage to policyholders while the federal government covers catastrophic losses above set thresholds.
What the Bill Does
The legislation extends the program for seven years beyond its current December 2027 expiration date. It raises the threshold for certifying a terrorism event from $5 million to $10 million in insured losses beginning in 2029, requiring larger incidents before federal involvement.
The bill also grants explicit statutory authority to the Treasury Department to publicly explain its process for determining whether an event qualifies as terrorism under the program. “We should ensure we update its charter to protect taxpayers in the event of future claims,” Rep. Mike Flood, R-Neb., the bill’s sponsor, said during floor debate.
How TRIA Works
The Terrorism Risk Insurance Act operates as a public-private partnership where insurers absorb initial losses and the government covers only exceptionally large events. No claims have been paid under the program since its creation, supporters note.
Business groups including the U.S. Chamber of Commerce and American Bankers Association back the extension, arguing that predictable terrorism coverage supports lending for commercial real estate, construction, and major venues. Without reauthorization, insurers could limit availability or raise costs for coverage in major metropolitan areas.
Industry Impact
Large-scale projects such as office towers, stadiums, and shopping centers depend on comprehensive insurance packages that include terrorism coverage. The sector supports millions of jobs across construction, property management, retail, hospitality, and related industries.
Terrorism risk remains difficult to model using traditional actuarial methods because of its unpredictable nature. “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,” House Financial Services Committee Chairman Rep. French Hill, R-Ark., said.
Next Steps
The bill advances to the Senate, where a companion measure has also been introduced. The extension preserves the program’s fundamental structure as a temporary backstop rather than expanding its scope.
This story has been updated. CNN’s Finance team contributed to this report.
