House Passes Key Bill

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

It also increases 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.

It also provides clear statutory authority for the Treasury Department to issue public notices about its process for making a determination as to whether an event falls within the definition of terrorism under the program.

TRIA is a public-private partnership.

The insurers would cover the initial losses and the federal government would only pay for catastrophic events that exceed certain retention levels.

Proponents often point to the fact that no claims have been paid out under the program since its inception as proof of its deterrent effect on market disruptions, not as a frequent payout mechanism.

The reauthorization has been supported by business and industry groups such as the U.S. Chamber of Commerce and the American Bankers Association.