Insurance / Terrorism Insurance

Congress must reauthorize the Terrorism Risk Insurance Act (TRIA) program to ensure access to affordable coverage for commercial property. TRIA is next set to expire at the end of 2027.   

TRIA is a public-private partnership created to fill in a gap in the private insurance market and protect the nation's business sector by making available terrorism risk insurance coverage. If terrorism insurance becomes unavailable, commercial real estate borrowers could be in technical default of financing obligations.

Supports the continued availability and affordability of terrorism risk insurance coverage under the TRIA program.

Opponents assert that the TRIA program is no longer necessary and should be phased out in order to the allow the private insurance market to take over. However, when the program has been allowed to briefly lapse or there has been a signficant threat of a lapse, private insurers have responded by no longer offering terrorism risk insurance coverage, or offering it at significantly higher prices that are not sustainable to commerical real estate markets.

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.

US HR 7128: TRIA Program Reauthorization Act of 2026