The House passed H.R. 7128, the TRIA Program Reauthorization Act of 2026, by a vote of 373-15, extending federal backstop coverage for terrorism-related insurance losses through 2034 and raising the certification threshold for triggering government involvement.
The measure, sponsored by Rep. Mike Flood, R-Neb., chairman of the House Financial Services Subcommittee on Housing and Insurance, now heads to the Senate. 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.
House Financial Services Committee Chairman Rep. French Hill, R-Ark., 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, the bill’s lead sponsor, 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 bill extends the program’s authorization for seven additional years beyond its current expiration at the end of 2027. It also 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 legislation 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.
TRIA operates as a public-private partnership. 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.
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.
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. This sector supports millions of jobs in construction, property management, retail, hospitality, and related industries across the country.
Large-scale projects such as office towers, stadiums, shopping centers, and industrial facilities often rely on the availability of comprehensive insurance packages that include terrorism coverage. Lawmakers and industry representatives have noted that terrorism risk remains difficult to model using traditional actuarial methods due to its unpredictable nature. The federal backstop has helped maintain a functioning private market for this coverage since the immediate aftermath of the 2001 attacks, when reinsurers largely withdrew from the space.
H.R. 7128 does not expand the scope of the program or alter its fundamental structure as a temporary backstop. Instead, it focuses on extending the existing framework with targeted reforms aimed at greater transparency and fiscal accountability. The bill now advances to the Senate, where a companion measure has also been introduced.
