The House of Representatives on Friday passed legislation to extend the federal Terrorism Risk Insurance Program through 2034, sending a clear bipartisan signal that lawmakers want to keep the commercial insurance market stable. The chamber approved H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 373-15.
A Purpose Rooted in the Original Law
The bill was sponsored by Rep. Mike Flood, R-Neb., chairman of the House Financial Services Subcommittee on Housing and Insurance. It now moves to the Senate.
The program provides a federal backstop for property and casualty insurers facing catastrophic losses from certified acts of terrorism. Congress created it in the wake of the September 11, 2001, attacks.
Under the current framework, private insurers must offer terrorism coverage to policyholders. Once a certified event occurs, the Treasury Department shares in losses that exceed certain thresholds.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., outlined the program’s core mission during floor debate.
“The purpose of TRIA is spelled out in the original law,” Hill said.
“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. That’s the goal here: to give policyholders access to the financial protection they need and the confidence they need to build skyscrapers, sports venues, and malls, and employ workers that drive our economy,” Hill added.
Flood, the bill’s lead sponsor, argued that the extension should come with updates.
“This legislation would reauthorize TRIA, the program established by Congress in the aftermath of the September 11, 2001, terrorist attacks, through 2034,” Flood said.
“We are so fortunate that we have never seen a TRIA claim in the program’s entire history, and I hope that we never, ever see one. However, 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,” Flood added.
What the Bill Changes
The legislation extends the program’s authorization for seven years beyond its current expiration at the end of 2027.
It also raises the threshold for certifying an act of terrorism for program purposes. Beginning in 2029, the minimum insured losses required would rise from $5 million to $10 million, which would limit federal involvement in smaller incidents.
The bill additionally gives the Treasury Department explicit statutory authority to publicly explain how it determines whether an event qualifies as terrorism under the program.
A Public-Private Partnership With a High Bar for Federal Involvement
TRIA operates as a public-private partnership. Insurers absorb initial losses, and the federal government steps in only for exceptionally large events that exceed defined retention levels.
No claims have ever been paid under the program since its inception. Supporters cite that record as evidence that TRIA works mainly as a deterrent to market disruption, not as a routine source of payouts.
Business Groups Back the Reauthorization
Business and industry groups, including the U.S. Chamber of Commerce and the American Bankers Association, have endorsed reauthorization. They argue that predictable terrorism coverage supports lending for commercial real estate, construction, and the operation of large venues and infrastructure that anchor the national economy.
Analysts have warned that without reauthorization, insurers could pull back from offering terrorism coverage. That retreat could raise costs or limit availability for businesses in major metropolitan areas and at high-profile sites.
Supporters describe the changes as prudent steps that strengthen taxpayer protections while leaving the program’s core function intact. Raising the certification threshold, for example, would require larger insured losses before federal participation is triggered, making it less likely that smaller events draw on government funds.
The commercial sector supports millions of jobs in construction, property management, retail, hospitality, and related industries nationwide. Large projects, including office towers, stadiums, shopping centers, and industrial facilities, often depend on comprehensive insurance packages that include terrorism coverage.
Why the Federal Backstop Remains Necessary
Lawmakers and industry representatives note that terrorism risk is difficult to model with traditional actuarial methods because of its unpredictable nature.
The federal backstop has helped sustain a functioning private market for this coverage since the immediate aftermath of the 2001 attacks, when reinsurers largely withdrew from the space.
H.R. 7128 does not expand the program’s scope or change its fundamental design as a temporary backstop. Instead, it extends the existing framework and adds targeted reforms intended to improve transparency and fiscal accountability.
The bill now advances to the Senate, where a companion measure has also been introduced.
