US House Passes Bill to Extend Federal Terrorism Backstop Through 2034

The U.S. House of Representatives has overwhelmingly passed legislation to extend the public-private partnership to insure terrorism risk though 2034.

The TRIA Program Reauthorization Act of 2026 (HR 7128), sponsored by Mike Flood, R-Neb., passed by a vote of vote of 373-15 late on June 29.

Before the vote, the National Association of Mutual Insurance Companies (NAMIC) sent a letter to the House cosigned by others including the Coalition to Insure Against Terrorism, Council of Insurance Agents & Brokers, Independent Insurance Agents & Brokers (Big “I”), and the Reinsurance Association of America.

In a separate statement, NAMIC’s Jimi Grande, senior vice president of federal and political affairs, said the terrorism insurance backstop “has enabled virtually every large-scale development anywhere in the country over the past quarter-century – stadiums, factories, commercial buildings, power and physical infrastructure, or transportation hub – and the jobs needed to build and staff them, all at no cost to the taxpayers.”

Related: Insurance Industry Reps Back Reauthorization of Federal Terrorism Backstop

A federal backstop for terrorism risk was first initiated late in 2002 by the Terrorism Risk Insurance Act (TRIA) to respond to insurers’ exclusions of terrorism risks from commercial property/casualty insurance policies following losses from 9/11. TRIA has been reauthorized several times, the latest at the end of 2019. It is due to expire again on Dec. 31, 2027.

The measure was widely supported by insurance industry trade associations. Sam Whitfield, senior vice president of federal government relations and political engagement for the American Property Casualty Insurance Association (APCIA), said the bill maintains vital economic protections against acts of terrorism.

“We appreciate that the House is acting early in the process,” he said in a statement. “By moving now, it helps prevent the uncertainty and confusion that would occur if Congress waited until 2027.”

Both groups urged cooperation with the Senate to swiftly move the measure—with the goal, APCIA said, of reaching the president’s desk before the end of the year.

“Insurance contracts can’t operate according to the congressional calendar, and construction projects can’t wait for Congress to act before breaking ground,” Grande added. “Already, coverage is being written that has to account for the possibility that TRIA could lapse, despite clear support for the program. Now is not the time to put our economy at risk from terrorism, Congress can and should move quickly to get an extension passed.”

In past reauthorizations, some changes to the program were made to reduce federal exposure to the risk. TRIA requires insurers to offer terrorism coverage while the industry has the assurance that if losses from a certified terrorism event reach a certain thresholds (the event needs to exceed $5 million in losses and $200 million in industry losses), the government will step in. HR 7128 includes an amendment, upping the threshold to $10 million in 2029.