What Happened
The House approved legislation to extend the Terrorism Risk Insurance Program, or TRIA, for an additional seven years beyond its scheduled 2027 expiration. The bill 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 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.
The Reaction
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.
Rep. Mike 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.
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.
What This Means
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 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. The bill now advances to the Senate, where a companion measure has also been introduced.
