HR7128-119

What This Bill Does

The TRIA Program Reauthorization Act of 2026 extends the Terrorism Risk Insurance Act program by striking the 2027 termination date and inserting 2034. That keeps the federal terrorism-insurance backstop available for seven additional years.

The bill also changes how the Treasury Secretary certifies an act of terrorism. In the introduced text, an event would not qualify if losses do not exceed $25 million. In the reported version, the threshold remains $5 million for acts before 2029 and becomes $10 million for acts in 2029 or later. The bill also adds a timing rule: if Treasury begins certification review and publishes a Federal Register notice, but does not certify the act within 90 days after that notice, the act is not treated as certified.

Treasury must publish a Federal Register notice within 30 days after beginning the process of determining whether to certify an act as terrorism. Treasury may also notify the public when an act is not being evaluated for certification. Technical amendments update recoupment and timing dates to 2029, 2030, 2031, and 2036 and rename the program consistently as the Terrorism Risk Insurance Program.

Who Benefits and How

Terrorism risk insurers benefit because the federal backstop continues through 2034 and certification timelines become clearer. Commercial policyholders benefit from continued availability of terrorism insurance coverage. Federal taxpayers benefit if higher thresholds or clearer noncertification rules limit federal exposure to smaller events. Treasury certification staff benefit from explicit notice and timing procedures. Insurance markets benefit from program certainty and updated recoupment dates.

Who Bears the Burden and How

Commercial policyholders affected by smaller terrorism events may bear more uninsured or privately insured loss if an event does not meet the threshold or is not certified within the 90-day notice period. Terrorism risk insurers may bear more private exposure for sub-threshold or noncertified events. Treasury certification staff must publish notices, manage the 90-day clock, and communicate certification decisions. Market participants must track the revised dates and thresholds. Federal taxpayers continue backing the program through 2034 for certified acts.

Key Provisions

• Extends the Terrorism Risk Insurance Program termination date from 2027 to 2034.
• Modifies certification thresholds, including a reported-version increase to $10 million for acts in 2029 or later.
• Requires Treasury to publish a Federal Register notice within 30 days after beginning certification review.
• Provides that failure to certify within 90 days after notice prevents certification for that act.
• Provides Treasury discretion to notify the public that an act is not being evaluated.
• Updates recoupment and program dates through 2036.
• Modifies program terminology to Terrorism Risk Insurance Program.