TRIA Program Reauthorization Act of 2026

TRIA Program Reauthorization Act of 2026

This bill renews the Terrorism Risk Insurance Program, commonly known as TRIA, which is a federal "backstop" system that helps insurance companies cover losses from large-scale terrorist attacks. When a major terrorist attack causes damages beyond a certain threshold, the federal government steps in to share the financial burden with private insurance companies, preventing them from going bankrupt and ensuring that businesses can actually collect on their insurance claims. Without reauthorization, this program would expire, leaving the insurance market without this federal safety net.

The program primarily affects businesses — particularly large commercial property owners, construction companies, sports venues, and other organizations that carry terrorism insurance. Because private insurers know the federal government will help cover catastrophic losses, they are more willing to offer terrorism insurance at affordable rates. If the program were allowed to lapse, many insurers would likely stop offering terrorism coverage altogether, or charge prices so high that most businesses couldn't afford it.

This bill has moved through the House Financial Services Committee with strong bipartisan support, passing committee review by a vote of 51 to 2, and is now awaiting a full vote in the House. The original TRIA program was created after the September 11, 2001 attacks, when it became clear that private insurance markets alone could not handle the financial risk of large terrorist events. This reauthorization would extend the program's availability for several more years, maintaining the current public-private partnership structure.