House Passes Bill to Reauthorize Terrorism Risk Insurance Program…

“This legislation would reauthorize TRIA, the program established by Congress in the aftermath of the September 11, 2001, terrorist attacks, through 2034,” Flood said.

“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. 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, and we should work to ensure the certification process is transparent,” Flood added.

The bill extends the program’s authorization for seven additional years beyond its current expiration at the end of 2027.

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.