H.R. 7128: TRIA Program Reauthorization Act of 2026

This bill would reauthorize the federal Terrorism Risk Insurance Program for longer and make several changes to how it is administered.

What the program does

The Terrorism Risk Insurance Program is a federal backstop for certain insurance claims related to acts of terrorism. In practical terms, it helps make sure insurers can cover terrorism-related losses without taking on all of the financial risk themselves. The bill does not create a new program; it extends and updates the existing one.

Main change: extend the program

The bill would extend the program’s current expiration date from 2027 to 2034. That means the federal terrorism insurance backstop would remain in place for an additional seven years.

Changes to how terrorism incidents are certified

The bill changes the process the Treasury Secretary uses to decide whether a particular event counts as an act of terrorism under the program:

• Public notice: Within 30 days after starting a review, the Secretary must publish a notice in the Federal Register saying a determination is underway.
• Review deadline: The Secretary would generally have to finish the review within 90 days after that notice is published.
• Possible extension: If there is not enough information, the review could be extended, but only up to a limit tied to the date of the damage and not beyond 365 days from that date.
• Final decision requirement: If the Secretary decides to certify an event as terrorism, that final decision must be published before the deadline and would be irrevocable.

The bill also raises the minimum loss threshold for certain certifications after 2028. Under the new rule, an act would generally need to exceed $5 million for events occurring before 2029, but $10 million for events occurring in 2029 or later, to meet that part of the certification standard.

New reporting requirements

The bill would require Treasury to include in its annual report a list of each event for which it published a notice that a terrorism certification review was underway during the prior year. For each event, the report would need to include either:

• the final determination, if one was issued; or
• a brief explanation of why no final determination was issued.

Technical and wording changes

The bill also makes several technical corrections, mainly updating dates in the law and replacing the phrase “Terrorism Insurance Program” with “Terrorism Risk Insurance Program” in various places.

Relevant Companies

• ALL — Allstate, an insurer that writes property and casualty coverage and could be affected by how the federal terrorism backstop is extended and administered.
• TRV — Travelers, a major commercial and property insurer that may be impacted by the availability of terrorism risk coverage support.
• CB — Chubb, a large insurer with substantial commercial insurance exposure that could be affected by changes to terrorism insurance rules.
• AIG — American International Group, a global insurer that may be affected by the program’s extension and certification rules.
• WRB — W. R. Berkley, a property and casualty insurer that could be indirectly affected by the terrorism insurance backstop.
• RLI — RLI Corp., a specialty insurer that may be affected by the federal terrorism insurance framework.