What Happened
Under the existing framework, private insurers must make terrorism coverage available to policyholders, while the Treasury Department shares in losses above certain thresholds once a certified event occurs. The bill extends the program’s authorization for seven additional years beyond its current expiration at the end of 2027.
The legislation raises the threshold for certifying an act of terrorism for program purposes, increasing the minimum insured losses required from $5 million to $10 million beginning in 2029. Additionally, the bill provides explicit statutory authority for the Treasury Department to issue public notifications regarding its process for determining whether an event qualifies as terrorism under the program.
Rep. French Hill, R-Ark., House Financial Services Committee Chairman, emphasized the program’s core 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,” Hill added.
Flood highlighted the need for updates alongside the extension. “This legislation would reauthorize TRIA, the program established by Congress in the aftermath of the September 11, 2001, terrorist attacks, through 2034,” Flood 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,” Flood added.
The Reaction
Business and industry 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 projects, construction activity, and the operation of large venues and infrastructure that form key parts of the national economy.
Without reauthorization, analysts have warned of potential pullbacks by insurers in offering terrorism coverage, which could raise costs or limit availability for businesses in major metropolitan areas and high-profile sites. This sector supports millions of jobs in construction, property management, retail, hospitality, and related industries across the country.
What This Means
TRIA operates as a public-private partnership in which insurers retain responsibility for initial losses, with the federal government stepping in only for exceptionally large events that exceed defined retention levels. No claims have ever been paid out under the program since its inception, a point frequently cited by supporters as evidence of its role in deterring market disruptions rather than serving as a frequent payout mechanism.
Supporters of the legislation have framed the updates as prudent adjustments that strengthen taxpayer safeguards while preserving the program’s core function. Raising the certification threshold, for instance, means federal involvement would require a higher bar of insured losses, reducing the likelihood of smaller events triggering government participation.
The bill now advances to the Senate, where a companion measure has also been introduced.
