The House of Representatives voted 373-15 to extend the federal Terrorism Risk Insurance Program through 2034, advancing bipartisan legislation that maintains federal backing for commercial property insurers facing catastrophic losses from certified terrorist attacks.
The measure, H.R. 7128, was sponsored by Rep. Mike Flood, R-Neb., and now moves to the Senate for consideration. The program, established after the September 11, 2001, attacks, requires private insurers to offer terrorism coverage while the federal government shares losses exceeding certain thresholds during certified events.
What the Legislation Does
The bill extends the program’s authorization for seven years beyond its current December 2027 expiration. It also raises the certification threshold for terrorist acts to $10 million in insured losses beginning in 2029, up from the current $5 million requirement.
Additionally, the legislation grants explicit authority to the Treasury Department to issue public guidance on its process for determining whether an event qualifies as terrorism under program rules. “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,” House Financial Services Committee Chairman Rep. French Hill, R-Ark., said during floor debate.
Program Structure and History
TRIA operates as a public-private partnership where insurers cover initial losses and the federal government intervenes only for exceptionally large events. Since the program’s inception, no federal claims have been paid out under its framework.
Rep. Flood emphasized the need for updates alongside reauthorization. “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 said.
Industry Support and Economic Impact
Business groups including the U.S. Chamber of Commerce and the American Bankers Association have backed the reauthorization, arguing that predictable terrorism coverage enables lending for commercial real estate, construction projects, and major venues.
Without reauthorization, analysts warn insurers could pull back terrorism coverage offerings, potentially raising costs or limiting availability for businesses in major metropolitan areas and high-profile sites. The sector supports millions of jobs across construction, property management, retail, and hospitality industries.
This story has been updated. CNN’s Political and Business units contributed to this report.