WASHINGTON — The U.S. House of Representatives has approved legislation extending the federal Terrorism Risk Insurance Program through 2034, advancing a bipartisan measure intended to preserve stability in the commercial insurance market and provide businesses with continued access to terrorism coverage.
Lawmakers passed H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 373-15 on June 29. The bill, sponsored by Rep. Mike Flood, R-Neb., was subsequently sent to the Senate, where it was referred to the Committee on Banking, Housing, and Urban Affairs on July 13.
Created after the September 11, 2001, terrorist attacks, the Terrorism Risk Insurance Program provides a federal backstop for property and casualty insurers facing exceptionally large losses from certified acts of terrorism.
Under the program, participating insurers must make terrorism coverage available to policyholders. The federal government may then share in certain catastrophic losses after an incident meets statutory requirements and is formally certified as an act of terrorism.
Program Designed to Support Market Stability
Supporters of the legislation say the program is intended to ensure that terrorism insurance remains available for businesses, commercial property owners, lenders, and other policyholders.
House Financial Services Committee Chairman French Hill, R-Ark., said TRIA was created to establish a transparent system for sharing insured terrorism losses between the public and private sectors. He argued that the program gives businesses greater confidence when financing major projects, including commercial buildings, sports venues, and shopping centers.
Flood also emphasized that TRIA has never paid a claim since its creation. He said that record demonstrates the importance of maintaining a reliable insurance framework while updating the program’s rules to protect taxpayers and improve transparency.
The legislation would extend the program for seven years beyond its current authorization, which is scheduled to expire at the end of 2027.
Changes to Certification and Loss Thresholds
H.R. 7128 would make several changes to the program’s operating structure. Among them, the bill would increase the minimum insured-loss threshold required for an event to qualify for federal terrorism insurance protections.
Beginning in 2029, the threshold would rise from $5 million to $10 million. The bill would also clarify the Treasury Department’s authority to publicly explain the process used to determine whether an incident qualifies as an act of terrorism under TRIA.
Supporters say the changes are intended to account for changing economic conditions, improve transparency, and maintain safeguards around the federal government’s potential financial exposure.
Importance to Commercial Insurance
TRIA operates as a public-private partnership. Private insurers remain responsible for losses within established retention levels, while federal support becomes available only after the statutory conditions for a certified event are met.
Business and financial organizations have supported the legislation, arguing that dependable terrorism coverage is important for commercial real estate, construction, lending, large public venues, and other major investments.
Industry representatives have warned that uncertainty surrounding the program could make terrorism coverage more expensive or difficult to obtain, particularly for properties in major metropolitan areas and locations considered potential targets.
Without reauthorization, some insurers could reassess their participation or reduce available coverage, potentially affecting financing decisions and increasing costs for businesses.
Senate Consideration Ahead
The House vote provides a measure of bipartisan support for continuing the program, but the legislation must still advance through the Senate before it can become law.
Senators will determine whether to consider the House-passed bill, propose changes, or develop a separate measure. Until Congress completes action, TRIA remains authorized through the end of 2027.
For businesses and insurers, the debate centers on maintaining access to terrorism coverage while ensuring that the federal backstop remains carefully structured and that taxpayers are protected against unnecessary exposure.
