The House of Representatives has approved a long-term renewal of the federal terrorism insurance backstop, voting 373-15 for H.R. 7128, the TRIA Program Reauthorization Act of 2026. The measure, sponsored by Rep. Mike Flood (R-Neb.), chairman of the House Financial Services Subcommittee on Housing and Insurance, would keep the Terrorism Risk Insurance Program in place through 2034. The bill now moves to the Senate, where a bipartisan companion proposal has already been introduced.
Congress created the program in the aftermath of the September 11, 2001, attacks, when private insurers sharply reduced or eliminated coverage for terrorism risk. The sudden contraction in available capacity disrupted commercial property markets, complicated lending, and raised concerns about the ability to finance large-scale development. Under TRIA, property and casualty insurers are required to make terrorism coverage available to policyholders on terms comparable to other property risks. If the Treasury Department certifies an incident as an act of terrorism and insured losses exceed statutory thresholds, the federal government shares the cost of catastrophic claims. Insurers remain responsible for a deductible and for losses up to defined levels; the government backstop activates only for exceptionally large events. No claim has ever been paid under the program in its more than two decades of existence.
During floor debate, House Financial Services Committee Chairman Rep. French Hill (R-Ark.) emphasized the statute’s original purpose. “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.”
Flood, the bill’s lead sponsor, described the legislation as both a straightforward extension and a modest update. “This legislation would reauthorize TRIA, the program established by Congress in the aftermath of the September 11, 2001, terrorist attacks, through 2034,” he 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.”
The current authorization expires at the end of 2027. H.R. 7128 would extend the program by seven years. Beginning in 2029, it would raise the minimum insured-loss threshold required before an event can be certified for program purposes, from $5 million to $10 million. The higher bar is intended to limit federal involvement to larger-scale incidents while preserving the backstop for truly catastrophic losses. The bill also grants the Treasury Department explicit statutory authority to issue public notices explaining how it determines whether an event qualifies as terrorism under TRIA. Supporters argue the change will improve predictability and transparency for insurers, policyholders, and the broader market.
Industry and business organizations have strongly backed the reauthorization. Endorsements have come from the U.S. Chamber of Commerce, the American Bankers Association, and major commercial real estate and insurance associations. These groups contend that reliable terrorism coverage underpins lending for commercial real estate, construction projects, and the ongoing operation of large venues, transit systems, and critical infrastructure. Mortgage bankers have highlighted more than $5 trillion in outstanding commercial and multifamily mortgage debt and warned that a lapse in the program could increase financing costs, tighten underwriting standards, or slow new investment. Analysts have noted that, without a federal backstop, insurers would likely restrict or price terrorism coverage more conservatively in dense urban centers and at high-profile sites.
Supporters characterize the House bill as a prudent adjustment rather than a fundamental rewrite of the program. Raising the certification threshold reduces the likelihood that smaller events trigger government participation, while the extended authorization provides multi-year certainty for underwriters, lenders, and developers. The commercial property sector that relies on this coverage supports millions of jobs in construction, property management, retail, hospitality, and related industries.
The Senate companion measure, S. 4395, introduced by Sens. David McCormick (R-Pa.), Tina Smith (D-Minn.), Thom Tillis (R-N.C.), and Ruben Gallego (D-Ariz.), would likewise extend the program through 2034. Sponsors in both chambers have urged Congress to complete action well before the 2027 deadline so that lenders, developers, and insurers do not confront a coverage gap. The House-passed bill was received in the Senate in mid-July and referred to the Banking Committee. Whether the two chambers reconcile their versions and enact a final bill this year will determine how soon the terrorism insurance backstop is secured through the next decade.
