The House of Representatives passed legislation Wednesday extending the federal Terrorism Risk Insurance Program through 2034, securing a 373-15 bipartisan vote that advances a measure designed to maintain stability in the commercial insurance market against catastrophic terrorism losses.
The chamber approved H.R. 7128, sponsored by Rep. Mike Flood of Nebraska, chairman of the House Financial Services Subcommittee on Housing and Insurance. The program, created following the September 11, 2001 attacks, requires private insurers to offer terrorism coverage while the federal government shares losses once a certified event surpasses defined thresholds.
What Happened
The legislation extends TRIA’s authority for seven years beyond its current 2027 expiration date. It also raises the minimum insured loss threshold required to certify an event as terrorism for program purposes, increasing the baseline from $5 million to $10 million beginning in 2029.
The bill provides the Treasury Department explicit statutory authority to issue public notifications about its process for determining whether an incident qualifies as terrorism under the program’s framework. Rep. French Hill, chairman of the House Financial Services Committee, said during floor debate that the measure protects consumers and enables economic confidence. “The goal here is 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 said.
The Reaction
Flood emphasized the program’s record and the need for legislative updates alongside reauthorization. “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,” Flood said.
Business 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 development, construction projects, and the operation of large venues and infrastructure assets that sustain millions of jobs across construction, property management, retail, and hospitality sectors.
Without reauthorization, industry analysts have cautioned that insurers could reduce offerings of terrorism coverage, potentially raising costs or limiting availability for businesses in major metropolitan areas and high-profile sites. Supporters frame the threshold increase as a prudent adjustment, noting that a higher bar for insured losses reduces the likelihood of smaller events triggering federal participation.
What This Means
TRIA operates as a public-private partnership in which private insurers retain responsibility for initial losses, with the federal government stepping in only for exceptionally large events exceeding defined retention levels. No claims have been paid since the program’s 1992 inception, a fact frequently cited as evidence of its role in deterring market disruptions.
The bill now advances to the Senate, where a companion measure has been introduced. The legislation represents an effort to balance renewal of the backstop mechanism with strengthened taxpayer protections and improved transparency in how the Treasury Department determines terrorism certification, factors that could shape the program’s operation over the coming decade.
