House Passes Bipartisan Bill to Extend Terrorism Insurance Program Through 2034
WASHINGTON — The House of Representatives has overwhelmingly approved legislation to extend the federal Terrorism Risk Insurance Program through 2034, delivering a bipartisan vote aimed at preserving stability and predictability in the nation’s commercial insurance market.
Lawmakers passed H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 373-15. The legislation, sponsored by Rep. Mike Flood, R-Neb., chairman of the House Financial Services Subcommittee on Housing and Insurance, now moves to the Senate for consideration.
Created in the aftermath of the September 11, 2001, terrorist attacks, TRIA provides a federal backstop for property and casualty insurers facing exceptionally large losses resulting from certified acts of terrorism.
Under the program, insurers are required to make terrorism coverage available to policyholders. The federal government, through the Treasury Department, can then share in covered losses above specified thresholds following a federally certified terrorism event.
House Financial Services Committee Chairman French Hill, R-Ark., said the program is intended to ensure businesses and property owners have access to insurance protection while maintaining confidence in the broader economy.
Flood emphasized that although the program has never paid a claim since its creation, maintaining the federal backstop remains important because of the potentially devastating financial consequences of a major terrorist attack.
The legislation would extend TRIA for seven years beyond its current expiration at the end of 2027. It also includes several changes intended to strengthen taxpayer protections and provide greater transparency surrounding the program.
One major provision would raise the minimum insured-loss threshold required for an event to qualify as an act of terrorism under TRIA, increasing it from $5 million to $10 million beginning in 2029.
The bill would also explicitly authorize the Treasury Department to issue public notifications explaining its process for determining whether an incident qualifies for coverage under the program.
Industry Groups Support Extension
TRIA operates as a public-private partnership, with private insurers responsible for initial losses before federal assistance becomes available for extraordinarily large covered events.
Business and financial organizations, including the U.S. Chamber of Commerce and the American Bankers Association, have supported reauthorization. They argue that reliable terrorism coverage is important for commercial lending, real estate development, construction and the operation of major venues and infrastructure.
Without the program, industry representatives have warned that insurers could reduce their willingness to provide terrorism coverage, particularly in major metropolitan areas and at high-profile properties. That could increase costs or complicate financing for large commercial projects.
Supporters argue that the bill strikes a balance between maintaining a critical insurance backstop and protecting taxpayers from unnecessary federal exposure.
With the House vote completed, attention now turns to the Senate, where lawmakers will consider whether to advance their own version of the legislation.
If enacted, the measure would provide businesses and insurers with greater certainty while preserving a federal mechanism designed to help the commercial insurance market withstand the potentially enormous financial impact of a future terrorist attack.