Earlier this month Rep Flood (R,NE) introduced HR 7128, the TRIA Program Reauthorization Act of 2026. The bill would reauthorize the Terrorism Risk Insurance Act (TRIA) program through 2034 and make changes to program’s certification process. No new funding is authorized.
Program Background
The original Terrorism Risk Insurance Act (TRIA) was an outgrowth of the 9/11 attacks and the realization that the insurance industry could not afford to offer terrorism related insurance products because of the increasing potential scope of terrorist attacks. The current TRIA authorization expires on December 31st, 2027.
The program provides that in any year when the aggregate industry insured losses resulting from such
certified acts of terrorism exceed an amount set in §103(e)(1)(B) (currently $200 million), the federal government will pay an amount equal to 80 percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such calendar year. Those government payments will be recouped in accordance with provision of §103(e)(7).
Reauthorization
Section 2 of the bill amends 108(a) of the TRIA to extend the current December 31st, 2027, expiration of the program to December 31st, 2034.
Section 5 (there is no §4) would update §103(e)(7)(E)(i) of the TRIA adjusting the dates for the recoupment timing for the period of 2029 through 2036.
Certification Process Improvements
Section 3 of the bill would amend §102(1) of the TRIA, making changes to the definition of the term ‘act of terrorism’ used in the program. First, it would change the minimum monetary limit of the property and casualty insurance losses resulting from the act from $5 million to $25 million. Second, it would eliminate any act of terrorism where the Secretary did not certify such act as an act of terrorism. It would then eliminate the current subsection (D), Timing of certification, and replacing it with a new (D), Notice requirements. That new subsection would require the Secretary of the Treasury to publish a notice in the Federal Register that a certification process determination was underway.
Markup Hearing
On January 22nd, 2026 the House Financial Services Committee held a business meeting that considered HR 7128, along with eight other bills. Substitute language as offered by Flood. Four amendments were offered. All four were rejected; two by near party-line votes of 18 to 34, one by a vote of 2 to 49, and one by voice vote. The amended version of the bill as adopted by a vote of 51 to 2.
The amendment in nature of a substitute modified the bill’s language by changing the minimum monetary limit of the property and casualty insurance losses; phasing in the change after 2029 and reducing the new limit from $25 million to $10 million.
Moving Forward
The bill is now ready for consideration by the full House. With the strong bipartisan support seen in Committee, the bill is likely to be considered under the suspension of the rules process. I would expect to see similar bipartisan support in that vote.
Commentary
On December 27th, 2016 the Treasury Department issued guidance that specifically noted that “policies reported for state regulatory purposes under the Cyber Liability sub-line on Line 17—Other Liability of the NAIC’s Exhibit of Premiums and Losses (commonly known as Statutory Page 14) are considered “property and casualty insurance” under TRIA.” Perhaps it is time that similar language should be added to the definition of the term “PROPERTY AND CASUALTY INSURANCE” in §102(11).