The House of Representatives has voted overwhelmingly to keep the federal Terrorism Risk Insurance Program in place through 2034, sending a clear signal that lawmakers want to preserve stability in the commercial insurance market.
H.R. 7128, the TRIA Program Reauthorization Act of 2026, passed 373-15. The bill is sponsored by Rep. Mike Flood, R-Neb., who chairs the House Financial Services Subcommittee on Housing and Insurance. It now moves to the Senate, where a companion measure has already been introduced.
Congress created the program after the September 11, 2001, attacks. It functions as a federal backstop for property and casualty insurers facing catastrophic losses from certified acts of terrorism. Under the current structure, private insurers must make terrorism coverage available to policyholders. The Treasury Department shares losses only after those losses exceed defined thresholds and an event has been certified as terrorism.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., framed the program’s purpose 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.”
Flood, the bill’s lead sponsor, stressed that an 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,” 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 measure extends authorization seven years beyond the program’s current expiration at the end of 2027. It also raises the minimum insured-loss threshold for certifying an act of terrorism from $5 million to $10 million beginning in 2029. In addition, it gives the Treasury Department explicit statutory authority to issue public notices explaining how it decides whether an event qualifies as terrorism under the program.
TRIA is a public-private partnership. Insurers absorb initial losses. The federal government steps in only for exceptionally large events that exceed retention levels. Supporters frequently note that no claims have ever been paid since the program began. They present that record as evidence that TRIA’s main value is preventing market disruption rather than serving as a regular payout mechanism.
Business groups including the U.S. Chamber of Commerce and the American Bankers Association have backed reauthorization. They argue that reliable terrorism coverage supports lending for commercial real estate, construction, and the operation of large venues and infrastructure that are central to the economy. Analysts have warned that without an extension, some insurers could pull back from offering terrorism coverage. That could raise costs or limit availability for businesses in major cities and at high-profile sites.
Supporters describe the bill’s changes as modest safeguards for taxpayers that leave the program’s core function intact. A higher certification threshold means federal involvement would require a larger insured-loss total, making it less likely that smaller events would trigger government participation.
The commercial real estate and related sectors employ millions of people in construction, property management, retail, hospitality, and supporting industries. Backers say predictable coverage helps keep those projects and jobs viable.
The House vote now shifts the debate to the Senate, where lawmakers will decide whether to match the House’s seven-year extension and the accompanying adjustments to certification and transparency.
