House Passes Bill to Reauthorize Terrorism Risk Insurance Program

House Passes Bill to Reauthorize Terrorism Risk Insurance Program Through 2034

The U.S. House of Representatives has taken a major bipartisan step to preserve a federal program designed to protect businesses and insurers from potentially devastating losses following a major terrorist attack.

On June 29, 2026, lawmakers overwhelmingly approved the TRIA Program Reauthorization Act of 2026, H.R. 7128, by a vote of 373–15. The measure would extend the federal Terrorism Risk Insurance Program through the end of 2034, seven years beyond its current expiration date.

The vote was notable for its bipartisan support. All 191 Democrats who voted supported the bill, along with 181 Republicans and one independent. Fifteen Republicans voted against it.

Although the legislation deals with insurance rather than directly with counterterrorism operations, its potential economic consequences are significant. Supporters argue that maintaining the program helps businesses obtain terrorism coverage and provides greater certainty for commercial real estate, construction, transportation, energy, and other industries.

What Is the Terrorism Risk Insurance Program?

The Terrorism Risk Insurance Program, commonly known as TRIA, was created after the September 11, 2001, terrorist attacks.

Following 9/11, insurers faced enormous uncertainty about the potential financial consequences of future terrorist attacks. Many insurers began excluding terrorism coverage from commercial insurance policies or became reluctant to provide the coverage at affordable prices.

That created a problem far beyond insurance companies.

Commercial property owners, developers, lenders, businesses, and other organizations often need insurance before they can finance or complete major projects.

Congress responded by creating TRIA in 2002.

The program established a public-private partnership in which private insurers remain responsible for covered losses, while the federal government provides a backstop under specified circumstances.

The goal is to prevent the commercial insurance market from collapsing in the event of an exceptionally large terrorist attack.

Why Congress Wants to Extend It

The current authorization is scheduled to expire at the end of 2027.

Supporters of H.R. 7128 argue that waiting until the expiration date would create unnecessary uncertainty for businesses and insurers.

The legislation would extend the program through December 31, 2034.

That longer authorization period is intended to give businesses and insurance companies greater confidence when making long-term financial decisions.

The House Financial Services Committee previously advanced the legislation with strong bipartisan support, voting 51–2 to move it forward.

The overwhelming House vote suggests that lawmakers from both parties view the program as an important component of the commercial insurance market.

What Does the Federal Backstop Actually Do?

It's important to understand that TRIA is not simply a government program that automatically pays for every terrorist attack.

Instead, it establishes conditions under which the federal government can provide financial assistance to insurers following a certified act of terrorism.

Private insurers continue to play the central role.

The federal backstop is designed for extraordinary losses that could threaten the ability of the insurance market to absorb the damage.

That structure allows businesses to continue purchasing terrorism coverage while limiting the possibility that a catastrophic attack could destabilize the insurance industry.

The Economic Importance of Terrorism Insurance

At first glance, terrorism insurance may appear to be a specialized issue affecting only a small number of companies.

In reality, the consequences can extend across large parts of the economy.

Consider a major commercial building.

A developer may need insurance to secure financing.

A lender may require that insurance before approving a loan.

The property may employ hundreds of workers or house dozens of businesses.

If terrorism coverage becomes unavailable or prohibitively expensive, the problem can spread from the insurance industry into construction, lending, real estate, transportation, and employment.

That is one reason supporters describe TRIA as an economic-stability mechanism.

The New Bill Makes Several Changes

H.R. 7128 does more than simply extend the program.

The legislation also makes changes to the process used to determine whether an incident qualifies as an act of terrorism for TRIA purposes.

One important change would increase the minimum amount of losses required for an event to qualify for consideration.

Under the legislation, the threshold would rise from $5 million to $10 million beginning in 2029.

Supporters argue that updating the threshold is appropriate given changes in the economy and the value of money over time.

New Treasury Notification Requirements

The legislation also establishes additional procedures for the Treasury Department when considering whether an event qualifies for certification.

Under the House bill, Treasury would be required to publish a notice in the Federal Register within 30 days after beginning the review process.

The department would then generally have 90 days after that notice to make a determination, with provisions allowing additional time in certain circumstances.

These requirements are intended to make the process more transparent and predictable.

For insurers and businesses, knowing how and when the government will make an important determination can be valuable during a crisis.

A Bipartisan Vote

The House vote was striking because of the current political environment in Washington.

The measure received support from lawmakers across the political spectrum.

According to the official House roll call, the final tally was:

• 373 votes in favor
• 15 votes against
• 43 members not voting

Democrats recorded 191 votes in favor and no votes against.

Republicans recorded 181 votes in favor and 15 against.

The chamber's lone independent also voted yes.

That level of bipartisan agreement is unusual for major legislation.

Why Insurance Companies Support the Bill

Major insurance industry organizations have strongly supported the extension.

The American Property Casualty Insurance Association said the legislation would preserve an important federal backstop that insurers and commercial policyholders have relied on for more than two decades.

From the industry's perspective, predictability matters.

Insurance companies must calculate potential losses and determine how much risk they can reasonably absorb.

A catastrophic terrorist attack could potentially generate losses far beyond what private insurers can comfortably handle.

A federal backstop reduces some of that uncertainty.

Why Businesses Care About TRIA

Businesses are also interested in the legislation because terrorism coverage can be important for commercial operations.

Large office buildings, hotels, shopping centers, stadiums, transportation facilities, industrial properties, and other high-value assets may face greater concerns about terrorism exposure.

For businesses operating in major metropolitan areas or locations considered high-profile targets, the availability of insurance can be particularly important.

Without an effective insurance market, financing and development could become more difficult.

That could affect construction projects, property values, employment, and economic growth.

What Happened After September 11?

The origins of TRIA are directly connected to the insurance-market disruption that followed the September 11 attacks.

The attacks generated enormous insured losses and changed how insurers viewed terrorism risk.

Because terrorist attacks can potentially produce concentrated and catastrophic losses, they present challenges that are different from many ordinary insurance risks.

After 9/11, terrorism exclusions became much more common in commercial policies.

Congress determined that allowing the private market to deal with the problem alone could have broader economic consequences.

TRIA was the result.

The Program Has Been Reauthorized Before

The 2026 legislation is not the first attempt to preserve the program.

TRIA has been reauthorized multiple times since its creation.

Previous extensions occurred in 2005, 2007, 2015, and 2019.

That history demonstrates that Congress has repeatedly concluded that the program continues to serve a useful economic purpose.

The latest proposal would again extend the program rather than allowing it to expire in 2027.

Does the Program Mean Taxpayers Automatically Pay?

Not necessarily.

TRIA is structured as a public-private partnership with specific requirements and mechanisms governing federal assistance.

The federal government does not simply write a check whenever a terrorist attack occurs.

There are thresholds, certification requirements, insurer participation requirements, and other provisions governing when the federal backstop can be activated.

The structure is intended to ensure that private insurers remain financially responsible while the federal government provides support when losses become extraordinarily large.

Supporters Say the Bill Protects Taxpayers

House sponsors have emphasized that the legislation includes provisions designed to protect taxpayers.

Rep. Mike Flood, the Nebraska Republican who introduced the legislation, said the measure would make changes intended to strengthen the program while maintaining stability in the insurance market.

The legislation's supporters therefore see the bill as a balance between two objectives:

maintaining insurance availability while limiting unnecessary federal exposure.

Why Some Lawmakers Opposed It

Despite the overwhelming bipartisan vote, 15 House Republicans voted against the measure.

Opposition to TRIA has existed for years.

Some critics have questioned whether the federal government should be providing a backstop for private insurance companies.

Others have raised questions about the program's cost, structure, and long-term necessity.

The debate essentially comes down to a broader policy question:

How much responsibility should the federal government assume for catastrophic terrorism risk?

Supporters believe the economic consequences of allowing the commercial insurance market to fail justify federal involvement.

Critics are more concerned about government exposure and whether private markets could eventually handle the risk without federal assistance.

The Senate Has Its Own Version

The House action is only one part of the legislative process.

A bipartisan Senate bill, S. 4395, was introduced earlier in 2026 to extend the program for seven years.

The Senate legislation was introduced by senators including Dave McCormick, Tina Smith, Ruben Gallego, and Thom Tillis and attracted support from lawmakers in both parties.

That bipartisan Senate support could improve the prospects for congressional action before the current authorization expires.

However, the House and Senate still need to complete the legislative process before an extension can become law.

Why Acting Early Matters

Supporters have argued that Congress should act well before the 2027 expiration date.

Insurance contracts and commercial transactions are often planned well in advance.

Businesses do not necessarily wait until a government program expires before making decisions about insurance and investments.

A clear extension can therefore reduce uncertainty.

The earlier Congress provides clarity, the easier it may be for insurers and businesses to plan.

What Could Happen if TRIA Expired?

If Congress allowed the program to expire, the commercial insurance market could face increased uncertainty.

The exact consequences would depend on market conditions at the time.

Some insurers might continue offering terrorism coverage without a federal backstop.

Others could reduce coverage or increase prices.

Certain high-risk businesses could have greater difficulty obtaining coverage.

That could potentially affect financing and development.

This uncertainty is one of the primary reasons supporters favor extending the program before its expiration.

A Program Most Americans Rarely Think About

TRIA is not a program most people encounter directly.

Unlike Social Security, Medicare, or unemployment benefits, it isn't something the average household interacts with every week.

Yet it can influence everyday economic activity indirectly.

The availability of commercial insurance can affect:

• Building construction
• Commercial lending
• Real estate development
• Transportation
• Energy projects
• Hotels and tourism
• Major entertainment venues
• Business investment

In that sense, insurance policy can have consequences far beyond the insurance industry itself.

Why the 2034 Date Matters

The House proposal would extend the program seven years beyond its current expiration.

That means the federal terrorism insurance backstop would remain authorized through the end of 2034 if the legislation becomes law in its current form.

The long extension is intended to give businesses and insurers a predictable framework rather than requiring Congress to revisit the program every few years.

Long-term certainty can be particularly valuable in industries where projects involve billions of dollars and take years to complete.

The Bigger Question

The debate over TRIA reflects a recurring question in American economic policy.

When a risk is so large that private markets may struggle to handle it, should the federal government step in?

The answer has historically been yes in the case of terrorism insurance.

Congress created TRIA because policymakers believed the consequences of an unstable commercial insurance market could spread throughout the economy.

The current legislation continues that philosophy while making changes to thresholds and certification procedures.

What Happens Next?

The House has completed its part by passing H.R. 7128.

The next major question is what happens in the Senate.

If the Senate passes legislation and the two chambers agree on the final language, the bill could move to the president for consideration.

Until that process is completed, the existing program remains governed by current law.

For businesses and insurers, the House vote nevertheless sends an important signal: lawmakers are moving toward extending the federal terrorism insurance backstop rather than allowing it to expire without replacement.

Final Thoughts

The House's passage of the TRIA Program Reauthorization Act of 2026 may not generate the same attention as debates over taxes, immigration, or government spending, but the legislation could have significant consequences for the American economy.

By a 373–15 vote, the House approved a bipartisan plan to extend the Terrorism Risk Insurance Program through 2034.

The bill would maintain the federal backstop created after the September 11 attacks, increase the terrorism-certification loss threshold from $5 million to $10 million beginning in 2029, and establish additional Treasury notification and decision-making requirements.

Supporters say the measure will provide stability and certainty for insurers, businesses, lenders, and commercial-property owners.

Critics continue to question whether taxpayers should remain exposed to catastrophic terrorism risk through a federal insurance program.

For now, however, the overwhelming House vote demonstrates that there is substantial bipartisan support for keeping TRIA in place.

The program may rarely make headlines, but its purpose is straightforward: ensure that a catastrophic terrorist attack does not become an even larger economic crisis because businesses cannot obtain the insurance they need.

The next step belongs to the Senate.