On Monday, January 12, the President signed H.R. 26, the Terrorism Risk Insurance Program Reauthorization Act of 2015, into law. This law, which was passed by the House by a vote of 416-5 on January 7th and the Senate by a vote of 93-4 on January 8th, renews the Terrorism Risk Insurance Act (TRIA) for six years, through 2020.
The TRIA program expired on December 31, 2014, when the Senate failed to reauthorize it before adjourning for the year; while that was disappointing, leadership in both the House and Senate stated at the time that it would be a priority in the 114th Congress, and NAR is pleased that they carried through on that promise. Along with reauthorizing the program, H.R. 26 makes a few changes to further protect the federal government from risk – it raises the trigger amount for the program from $100 million to $200 million, and increases the mandatory recoupment amount from $27.5 billion to $37.5 billion, along with decreasing the government’s share in losses from 85% to 80%. Otherwise, it makes few changes to a program that has kept terrorism risk insurance affordable and available throughout the country since 2002, at virtually no cost to taxpayers.