HR 7128: TRIA Program Reauthorization Act of 2026

HR 7128 in plain English: This bill reauthorizes the Terrorism Risk Insurance Program, which covers a portion of losses that private insurers face from terrorism-related property and casualty claims, through 2034. Starting in 2029, the bill raises the minimum loss threshold required to certify an act as terrorism under the program from $5 million to $10 million. It also formally establishes the Treasury Department's authority to publicly notify the public about its process for making terrorism certification determinations.

Stated purpose

This bill extends the Terrorism Risk Insurance Program through 2034, which shares terrorism-related property and casualty insurance losses between the federal government and private insurers. It also raises the loss threshold required to officially certify an act as terrorism starting in 2029 and codifies public notification rules for the certification process.

Key points

• Reauthorizes the Terrorism Risk Insurance Program through 2034.
• Raises the minimum insured loss threshold for terrorism certification from $5 million to $10 million beginning in 2029.
• Grants the Treasury Department statutory authority for public notification requirements on terrorism certification decisions.

Arguments supporters make

• The program gives private insurers the confidence to offer terrorism coverage they might otherwise refuse to sell, keeping this type of insurance available to businesses across the country.
• Extending the program through 2034 provides long-term stability and predictability for companies making real estate, construction, and other large investments that depend on terrorism insurance.
• Adding formal public notice requirements makes the government's terrorism certification process more transparent and accountable to the public.

Arguments opponents make

• Raising the damage threshold to $10 million in 2029 could leave victims of smaller but still serious terrorist attacks without access to program protections.
• Repeatedly reauthorizing the program delays a real debate about whether private insurance markets should handle terrorism risk on their own, without ongoing government backing.
• Extending the federal backstop for years into the future exposes taxpayers to potentially large payouts if a major terrorist attack occurs, with little new mechanism to limit that liability.

Tradeoffs

Keeping the federal backstop in place makes terrorism insurance widely available and supports economic activity, but it also means taxpayers continue to bear a share of the risk that private markets might otherwise price and manage themselves. Raising the certification threshold in 2029 reduces the program's scope and potential cost, but may leave some attack victims outside the program's protection.

Current status in Congress: Passed House.

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