U.S. House passes bill to reauthorize terrorism insurance backstop

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U.S. House reauthorizes terrorism insurance

Highlights

The U.S. House passes H.R. 7128, the TRIA Program Reauthorization Act of 2026, extending the Terrorism Risk Insurance Program through 2034 with bipartisan support.
The legislation maintains a federal insurance backstop for terrorism-related risks, which is essential for commercial real estate financing and large-scale projects nationwide.
The program has never had a claim since its inception, and updates in the charter seek to further protect taxpayers in case of future insured terror incidents.

Program extension and House vote

As reported by the House Committee on Financial Services, the U.S. House of Representatives passes H.R. 7128, the TRIA Program Reauthorization Act of 2026, with bipartisan support. The bill, sponsored by Subcommittee on Housing and Insurance Chairman Mike Flood, reauthorizes the Terrorism Risk Insurance Program, which is intended to preserve market stability, protect U.S. businesses and provide certainty for insurers against acts of terrorism.

Full Committee Chairman French Hill says the original purpose of TRIA is to provide a transparent system of shared public and private compensation for insured losses resulting from terrorism and to protect consumers. He says the framework supports policyholders' access to financial protection and confidence for projects such as skyscrapers, sports venues and malls, while backing employment linked to those investments.

Market certainty and taxpayer safeguards

Flood says the legislation would extend the program established after the September 11, 2001, attacks through 2034. He says the program has never recorded a claim in its history, while adding that its charter should be updated to protect taxpayers if future claims arise.

The reauthorization matters for the insurance sector and commercial real estate activity because it helps maintain a federal backstop for extreme terrorism-related risks that private markets may struggle to absorb alone. Continued program availability is intended to reduce uncertainty for insurers and businesses that depend on long-term coverage to finance and operate major assets across the U.S.

In our earlier article, we covered the U.S. House’s passage of the Recover COVID Unemployment Fraud in Banks Act, aimed at recovering nearly $1 billion in suspected pandemic-era unemployment insurance funds frozen in bank accounts. The measure would set up a federal-state task force to identify and return the money and extend the statute of limitations for related fraud cases from five years to 10 years, giving prosecutors more time to pursue claims.

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