House Passes Bill to Reauthorize Terrorism Risk Insurance Program

It 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.

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, a point frequently cited by supporters as evidence of its role in deterring market disruptions rather than serving as a frequent payout mechanism.

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.

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.