WASHINGTON — In a decisive display of bipartisan unity, the U.S. House of Representatives voted overwhelmingly to reauthorize the federal Terrorism Risk Insurance Program, ensuring long-term stability across commercial real estate, construction, and capital markets.
Lawmakers approved H.R. 7128, the TRIA Program Reauthorization Act of 2026, in a lopsided 373–15 vote. Sponsored by Rep. Mike Flood (R-Neb.), chairman of the House Financial Services Subcommittee on Housing and Insurance, the legislation extends the crucial public-private insurance backstop through December 31, 2034—adding seven years beyond its scheduled expiration at the end of 2027. The measure now advances to the Senate, where companion legislation awaits action.
First enacted by Congress in the wake of the September 11, 2001, terrorist attacks, the Terrorism Risk Insurance Act (TRIA) serves as a federal safety net for property and casualty insurers facing catastrophic claims from certified acts of terrorism. Under the statutory framework, participating commercial insurers are required to offer terrorism risk coverage to policyholders, while the U.S. Department of the Treasury shares in losses once predefined industry-wide loss thresholds are met.
Protecting Taxpayers While Backing Economic Growth
During floor debate, House Financial Services Committee Chairman French Hill (R-Ark.) underscored that predictable coverage remains indispensable to national commerce.
“The purpose of TRIA is spelled out in the original law: 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,” Hill stated. “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.”
Beyond simply extending the program, lawmakers incorporated key reforms designed to bolster fiscal responsibility and enhance regulatory transparency. Beginning in 2029, the statutory loss threshold required to officially certify an act of terrorism will double from $5 million to $10 million, raising the bar for federal involvement. Furthermore, the legislation grants the Treasury Department explicit statutory authority to issue public notifications clarifying its determination process during an unfolding incident.
“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,” Flood remarked. “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.”
Industry Backing and Market Stability
Major business coalitions, including the U.S. Chamber of Commerce and the American Bankers Association, strongly endorsed the reauthorization. Industry advocates warned that letting the backstop lapse or approach expiration without certainty would prompt insurers to pull back from high-profile metropolitan markets, choking commercial lending and halting major development projects.
Because no federal payouts have been disbursed throughout TRIA’s existence, policymakers framed the program not as an ongoing taxpayer subsidy, but as a vital stabilizer supporting millions of jobs in commercial real estate, retail, hospitality, and infrastructure nationwide.
