The National Council of Insurance Legislators (NCOIL) is urging congressional support for a bill that would extend the Terrorism Risk Insurance Act (TRIA) through 2035, as lawmakers begin work on the program’s reauthorization ahead of its scheduled expiration on Dec. 31, 2027.
The House Financial Services Subcommittee on Housing and Insurance held a hearing this month on TRIA’s future, highlighting the program’s role in stabilizing the insurance market and protecting the economy against terrorism-related financial risks. Lawmakers discussed the “TRIA Program Reauthorization Act of 2025,” which proposes an eight-year extension.
TRIA was first signed into law by president George W. Bush in 2002 after the Sept. 11, 2001 attacks. The legislation created a federal backstop that shares losses between the government and insurers in the event of certified acts of terrorism. Congress has since renewed and modified the program in 2005, 2007, 2015, and 2019 through the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).
“TRIA remains vital to America’s economic resilience. Without the federal backstop, the foundation that has allowed a sustainable private terrorism insurance market to flourish would be at risk,” said NCOIL president Asw. Pamela Hunter (D-N.Y.). “By extending TRIA for the long term, Congress can ensure that our nation preserves an important safeguard for stability, recovery, and confidence in the face of potential terrorist threats.”
NCOIL has long supported the program, warning that without adequate terrorism coverage, capital markets would contract, businesses would hold back on investment, and consumers would face steep costs for insurance.
“American businesses must be provided with the essential coverage to successfully operate in today’s uncertain global environment,” said NCOIL CEO Will Melofchik. “Failure by Congress to extend TRIA would likely result in the inability of insurers to offer coverage for future catastrophes resulting from terrorism, making terrorism risk insurance unavailable and unaffordable. NCOIL applauds the Subcommittee for proactively discussing this and we hope to see a long-term reauthorization passed ahead of its expiration.”
The program is administered by the secretary of the Treasury with support from the Federal Insurance Office.
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