The House of Representatives voted 373-15 to extend the federal Terrorism Risk Insurance Program through 2034, strengthening protections for commercial property insurers.
The measure, H.R. 7128, reauthorizes a program created after the September 11, 2001, terrorist attacks that provides a federal backstop when insurers face catastrophic losses from certified terrorism events. The legislation now moves to the Senate for consideration.
What the Bill Does
The legislation extends TRIA’s authorization for seven additional years beyond its current December 2027 expiration. It raises the threshold for certifying an act of terrorism from $5 million to $10 million in insured losses beginning in 2029.
The bill also grants explicit statutory authority to the Treasury Department to issue public notifications about its process for determining whether events qualify as terrorism under the program. “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,” sponsor Rep. Mike Flood, R-Neb., said during floor debate.
How TRIA Works
Under the public-private partnership framework, private insurers retain responsibility for initial losses while the federal government covers claims above defined retention thresholds. No claims have been paid since the program’s inception, supporters noted.
“The purpose of 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,” House Financial Services Committee Chairman Rep. French Hill, R-Ark., said. “The goal here is to give policyholders access to the financial protection they need and the confidence they need to build skyscrapers, sports venues, and malls.”
Business Support
The U.S. Chamber of Commerce and American Bankers Association have backed the reauthorization, arguing that predictable terrorism coverage supports lending for commercial real estate and construction. Without reauthorization, insurers could pullback on terrorism coverage in major metropolitan areas, potentially raising costs for businesses.
This story has been updated. CNN’s Political staff contributed to this report.