HR 7128: TRIA Program Reauthorization Act of 2026

HR 7128 in plain English: This bill reauthorizes the federal Terrorism Risk Insurance Program through 2034, which requires the government to cover a portion of private insurers' losses from terrorism-related property and casualty claims. Starting in 2029, the bill raises the minimum loss threshold required for an event to qualify under the program from $5 million to $10 million. It also gives the Treasury Department formal statutory authority to publicly notify the public about how it determines whether an act qualifies as terrorism.

Stated purpose

To reauthorize the federal Terrorism Risk Insurance Program through 2034, ensuring that private insurers continue to have government backing for losses caused by terrorism-related events.

Key points

• Extends the Terrorism Risk Insurance Program through 2034
• Raises the minimum insured loss threshold to qualify as a terrorism event from $5 million to $10 million, beginning in 2029
• Gives the Treasury Department statutory authority to publicly disclose its terrorism certification determination process

Arguments supporters make

• Without this program, many private insurers would stop offering terrorism coverage entirely, leaving businesses with no way to protect themselves against catastrophic losses.
• Extending the program gives insurers and businesses long-term certainty, which helps them plan investments and keep the economy stable.
• The new public notice and timeline rules make the government's decision process more transparent and accountable, which benefits everyone who depends on the program.

Arguments opponents make

• Repeatedly reauthorizing this program keeps the government as a permanent backstop for private insurers, shielding them from market risks that other industries must manage on their own.
• Raising the certification threshold to $10 million in 2029 could leave victims of smaller terrorism events without access to the program's protections.
• The program has been in place since 2002 and has rarely been used; critics argue the private insurance market could handle terrorism risk without ongoing federal support.

Tradeoffs

Extending the federal backstop keeps terrorism insurance widely available, but it also means taxpayers remain on the hook for large losses that private markets might otherwise price and absorb on their own. Raising the loss threshold in 2029 reduces the government's exposure, but may leave some terrorism victims outside the program's reach.

Current status in Congress: Passed House.

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