Bill to Extend Federal Terrorism Backstop Weighed in House Committee

Looking to ensure the longevity of a worthwhile federal program, the insurance industry has continued to lobby in favor of the TRIA Program Reauthorization Act of 2026.

A federal backstop for terrorism risk was first initiated late in 2002 by the Terrorism Risk Insurance Act to respond to insurers’ exclusion of terrorism risks from commercial property/casualty insurance policies following losses from 9/11.

Today, the House Financial Services Committee considers the latest bill (HR 7128)—sponsored by Mike Flood, R-Neb., and cosponsored by Andrew Garbarino, R-N.Y.—to extend the terrorism insurance program for seven years.

TRIA has been reauthorized several times, the latest at the end of 2019. It is due to expire again on Dec. 31, 2027. This reauthorization act would extend TRIA through 2034.

“We appreciate that the committee is acting early in the process,” said Sam Whitfield, the American Property Casualty Insurance Association (APCIA)’s senior vice president of federal government relations and political engagement, in a statement. “By moving now, it helps prevent the uncertainty and confusion that would occur if Congress waited until 2027. We urge the committee to pass HR 7128 and look forward to working with lawmakers to perfect the bill as it moves through the legislative process.”

Related: Insurance Industry Reps Back Reauthorization of Federal Terrorism Backstop

Some changes to the program at past reauthorizations, plus increases in the insurance premium base, have reduced federal exposure to the risk. The legislation 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.

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