House Passes Bill to Reauthorize Terrorism Risk Insurance Program
Smart Taxpayer Protection: House Passes Common-Sense 9/11 Insurance Backstop Through 2034
In a Washington political environment too often defined by dysfunction and endless government bailouts, it is refreshing to see lawmakers unite around a policy that actually protects taxpayers while keeping the American economy strong and resilient.
This week, the House of Representatives delivered a massive, overwhelmingly bipartisan 373-15 vote to pass H.R. 7128—the TRIA Program Reauthorization Act of 2026.
Sponsored by Nebraska Republican Representative Mike Flood, the legislation extends the federal Terrorism Risk Insurance Program through 2034. Originally born out of the national tragedy of September 11, 2001, the program serves as a essential safety net for commercial property and casualty insurers facing catastrophic losses from certified acts of foreign or domestic terrorism.
For Americans who remember the economic paralysis that followed 9/11, this legislation represents a masterclass in commonsense governance: maintaining stability for American business while tightening the purse strings to protect taxpayer dollars.
Zero Taxpayer Dollars Payouts in 25 Years
Unlike typical government handouts or open-ended welfare programs, TRIA operates as a strict public-private partnership. Private insurance companies absorb the initial losses from any event. The federal government only steps in as a financial backstop for massive, catastrophic attacks that exceed high coverage thresholds.
In fact, the program’s track record speaks for itself. As lead sponsor Rep. Mike Flood highlighted on the House floor: not a single dime in TRIA claims has ever been paid out in the program’s entire history.
Instead of spending money, TRIA provides a vital safety guarantee. Without this backstop, private reinsurers would pull out of high-risk markets, making it impossible for businesses to secure insurance for major infrastructure projects like skyscrapers, shipping ports, shopping centers, and sports venues.
Key Reforms: Raising the Bar to Protect Taxpayers
Rather than simply rubber-stamping an extension, House Republicans ensured the 2026 reauthorization included crucial updates that put taxpayers first.
The new bill extends TRIA seven years beyond its original 2027 expiration date, while adding two vital fiscal safeguards:
Higher Threshold for Federal Action: Starting in 2029, the threshold for an act to be certified as "terrorism" under the program increases from $5 million to $10 million in insured losses. This higher bar ensures the federal government won't be dragged into smaller, localized incidents that private insurance can easily handle.
Mandated Transparency: The Treasury Department is now required by law to issue clear public notifications regarding how and why an event qualifies as terrorism, shutting down potential backroom political maneuvers.
House Financial Services Committee Chairman French Hill (R-Ark.) summed up the core mission: "The goal here is to give policyholders access to the financial protection they need and the confidence they need to build skyscrapers, sports venues, and malls, and employ workers that drive our economy."
Fueling Jobs and Defending American Infrastructure
It’s easy to think of commercial insurance as abstract corporate paperwork, but for middle-class workers and retirees across the country, it is the bedrock of economic stability. The commercial construction and real estate sectors support millions of American jobs in property management, retail, hospitality, and trade.
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Business powerhouses like the U.S. Chamber of Commerce and the American Bankers Association strongly backed the bill because terrorism risks are inherently unpredictable and impossible to model with standard actuarial methods. Without TRIA, banks would stop lending for major construction projects in big cities, paralyzing American growth.
The Bottom Line
The passage of H.R. 7128 shows what Washington can achieve when it focuses on practical solutions rather than ideological agendas. By extending TRIA through 2034, raising the certification bar, and demanding complete transparency, Congress has ensured that American commerce can continue to thrive safely—without leaving everyday taxpayers on the hook for irresponsible bailouts.
