Looking to ensure the longevity of a worthwhile federal program, the insurance industry has continued to lobby in favor of the TRIA Program Reauthorization Act of 2026.

The legislation (HR 7128)—sponsored by Mike Flood, R-Neb., and cosponsored by Andrew Garbarino, R-N.Y.—moved forward out of the House Financial Services Committee following a Jan. 22 vote of 51-2.

“Maintaining this backstop is critical to preventing market disruptions and preserving the program’s vital economic protections against acts of terrorism,” said David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA). “The strong bipartisan vote is a testament to the program’s proven record of effectiveness over more than two decades. We look forward to working with lawmakers to perfect this critical legislation as it moves forward.”

Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC), said TRIA “helps ensure that terrorists will not be able to shut down the U.S. economy,” and the trade association urged the full House to act on the legislation as quickly and decisively.

“Virtually every office building, arena or stadium, transportation hub or energy infrastructure built in the last two decades exists is in part because TRIA made insurance coverage available,” Grande added. “Untold billions in economic activity, and thousands of jobs, were made possible by the program, and at almost no cost to the taxpayers.”

A federal backstop for terrorism risk was first initiated late in 2002 by the Terrorism Risk Insurance Act to respond to insurers’ exclusions of terrorism risks from commercial property/casualty insurance policies following losses from 9/11. The change put construction projects on hold since financers required the insurance

This latest reauthorization bill extends the terrorism insurance program for seven years. TRIA has been reauthorized several times, the latest at the end of 2019. It is due to expire again on Dec. 31, 2027. This reauthorization act would extend TRIA through 2034.

Related: Insurance Industry Reps Back Reauthorization of Federal Terrorism Backstop

Some changes to the program at past reauthorizations, plus increases in the insurance premium base, have reduced federal exposure to the risk. The legislation requires insurers to offer terrorism coverage while the industry has the assurance that if losses from a certified terrorism event reach a certain thresholds (the event needs to exceed $5 million in losses and $200 million in industry losses), the government will step in.