House Passes Bipartisan Legislation to Extend Terrorism Insurance Program Through 2034
WASHINGTON, D.C. — The U.S. House of Representatives has overwhelmingly approved legislation to extend the federal Terrorism Risk Insurance Program through 2034, marking a significant step toward preserving stability in the commercial insurance market and providing businesses with greater certainty when planning long-term investments.
The legislation, known as the TRIA Program Reauthorization Act of 2026, passed the House on June 29 by a vote of 373 to 15, demonstrating broad bipartisan support for continuing the federal government’s role in helping insurers manage the financial consequences of major terrorist attacks. The measure was introduced by Representative Mike Flood of Nebraska, with Representative Andrew Garbarino of New York serving as a co-lead. Source: U.S. House Financial Services Committee
The proposal would extend the program’s authorization beyond its scheduled expiration at the end of 2027, allowing the existing public-private insurance framework to continue for seven additional years. Supporters argue that maintaining this arrangement is important for commercial property owners, businesses, lenders, developers, and communities that depend on reliable access to terrorism coverage.
Why the Terrorism Risk Insurance Program Matters
The Terrorism Risk Insurance Program was created in 2002 in response to the economic disruption that followed the September 11, 2001, terrorist attacks.
In the aftermath of those attacks, insurers became more reluctant to offer terrorism coverage, while the policies that remained available could be prohibitively expensive or difficult to obtain. This created uncertainty for businesses seeking financing, property owners planning construction, and lenders evaluating major commercial investments.
Congress responded by establishing a federal backstop through the Terrorism Risk Insurance Act. The framework was designed to help insurers continue offering terrorism coverage by sharing certain qualifying losses between private insurers and the federal government.
The program does not replace the private insurance market. Instead, it establishes a system in which participating insurers retain financial responsibility for covered losses and the federal government may provide assistance when qualifying terrorism-related losses exceed specified thresholds.
This arrangement is intended to make terrorism coverage more available while reducing the risk that a catastrophic event would overwhelm the insurance industry.
A Broadly Supported House Vote
The House vote of 373–15 reflected substantial agreement among lawmakers that the program should continue.
Supporters from both parties have emphasized that uncertainty surrounding terrorism insurance can affect economic activity far beyond the insurance industry itself. Large commercial projects often depend on multiple sources of financing, and lenders may require appropriate insurance coverage before committing funds.
Without a predictable framework for terrorism-related risks, property owners and developers could face additional challenges when arranging coverage for projects such as office buildings, shopping centers, hotels, manufacturing facilities, sports venues, and transportation infrastructure.
Representative Flood said the program has helped provide stability to the insurance market since its creation. He also emphasized the importance of extending the framework before its existing authorization expires. Source: Representative Mike Flood’s office
The legislation’s bipartisan support suggests that lawmakers recognize the role terrorism insurance can play in protecting commercial investment, although the details of federal risk-sharing arrangements and the conditions under which assistance is available remain important policy considerations.
What Would Change Under the Legislation?
The House-approved bill would not simply extend the program’s expiration date. It would also make targeted changes to the rules governing the certification of terrorist acts for purposes of the federal program.
One significant proposed change would increase the required level of property and casualty insurance losses associated with an event for it to qualify for certification under the program. Beginning in 2029, the threshold would rise from more than $5 million to more than $10 million.
The legislation would also establish clearer public-notification requirements and deadlines for the Treasury Department’s certification process. These provisions are intended to make the process more transparent and provide greater clarity for insurers and policyholders seeking to understand whether a particular event qualifies under the federal framework.
Certification matters because not every violent incident or attack automatically qualifies for federal assistance under the program. The event must meet the applicable statutory requirements, and the federal government must follow the relevant determination process.
The proposed changes would therefore affect how the program operates, not just how long it remains authorized. Source: Congressional Research Service
Potential Effects on Businesses and Commercial Development
For businesses, the extension is primarily about predictability.
A company considering a new warehouse, hotel, office complex, or manufacturing facility must evaluate numerous risks before committing substantial capital. Insurance availability is one part of that decision, particularly for properties that could be exposed to terrorism-related losses.
A long-term federal framework can help insurers plan their exposure and provide coverage within a more predictable system. In turn, that certainty may help businesses and lenders evaluate projects that could otherwise face difficulties obtaining suitable protection.
The potential benefits extend to small businesses as well. Retailers, restaurants, hotels, and other companies operating in commercial buildings may depend on property owners and insurers being able to arrange appropriate coverage.
However, extending the program does not guarantee that every business will receive coverage at a particular price. Premiums and policy terms can still vary according to location, property characteristics, insurer assessments, and broader market conditions.
The legislation is intended to support the continued availability of coverage, rather than eliminate terrorism risk or prevent all insurance-cost increases.
The Federal Government’s Role and Taxpayer Considerations
The program also raises questions about how catastrophic risks should be divided between private insurers and the federal government.
Supporters argue that terrorism can create losses of a scale that private insurance markets may struggle to absorb independently. A federal backstop can help maintain coverage and reduce the likelihood of a sudden retreat from the market following a major attack.
At the same time, public assistance must operate within statutory limits and conditions. The federal government does not automatically cover every terrorism-related loss, and the program’s financial arrangements determine when federal participation may apply.
The proposed changes to certification thresholds and notification procedures reflect an effort to update the framework while continuing its central purpose.
The House vote establishes strong support for the legislation in that chamber, but it should not be confused with proof that all provisions have already taken effect.
What Happens Next?
Following House approval, the legislation became part of a broader congressional effort to reauthorize the program before its existing authorization expires.
The Senate subsequently passed its own reauthorization measure, S. 4395, by unanimous consent on September 28, 2026. That measure also proposes extending the program through 2034. The House and Senate legislative texts must be reconciled through the applicable congressional process before a final measure can become law. Source: Congressional Research Service
The central objective remains continuity: avoiding a lapse in the federal framework that supports terrorism insurance while giving insurers and policyholders time to plan for the years ahead.
For the commercial insurance industry, the extension represents an effort to preserve a system that has operated for more than two decades. For businesses and property owners, it offers the prospect of continued access to a market in which terrorism risk can be insured under established rules.
The legislation does not eliminate the financial consequences of a future terrorist attack, nor does it guarantee that every commercial property will be protected under identical terms. Instead, it seeks to maintain a framework for sharing extraordinary risks and sustaining confidence in the commercial insurance market.
As Congress continues the reauthorization process, the key issue is whether lawmakers can finalize an extension before the current program expires at the end of 2027. A successful extension would provide a longer planning horizon for insurers, businesses, and investors, while preserving a federal mechanism designed to help the insurance market withstand the financial shock of a major terrorist event.
