Terrorism Insurance

The Terrorism Risk Insurance Act (TRIA) provides a federal backstop for insured losses from certified acts of terrorism. With TRIA set to expire on December 31, 2027, Congress has begun reauthorization efforts early to maintain stability in insurance and financial services markets.

On January 22, 2026, the House Financial Services Committee voted 51–2 to approve H.R. 7128, which would extend TRIA through 2034 and make two modest, bipartisan updates to the Department of Treasury’s certification process:

• require public notice within 30 days of starting a TRIA review and issue a certification decision within 90 days; and
• update the event‑certification loss threshold from $5 million to $10 million beginning in 2029 to reflect inflation.

Next, the full House of Representatives must consider the measure. A Senate companion bill has not yet been introduced.

Background on Prior Reauthorizations

• 2019: Congress extended TRIA through 2027 as part of a year‑end appropriations bill; no major changes.
• 2015: Following a brief lapse, Congress enacted a six‑year extension that:
  • Increased the program’s trigger threshold from $100 million to $200 million in insured losses.
  • Reduced the federal share of losses above the threshold from 85% to 80%.
  • Raised the mandatory recoupment amount from $27.5 billion to $37.5 billion.
• 2007: Congress approved a seven‑year extension through 2014.
• 2005: Congress enacted a two‑year extension following the initial authorization.
• 2002: Congress created TRIA under Public Law 107–297 in response to post‑9/11 market disruptions.