The American Bankers Association today urged lawmakers to support two bills to extend the Terrorism Risk Insurance Program by another seven years, saying that it offers commercial real estate markets and lenders certainty on their investments.
The two bills – S. 4395 and H.R. 7128 – would reauthorize the Terrorism Risk Insurance Act for seven years. The House version would also raise the dollar threshold for declaring an act of terrorism a major event from $5 million to $10 million, starting in 2029. The House version cleared that chamber in June.
Congress passed TRIA following the September 2001 terrorist attacks. In a letter to Senate and House leaders, ABA said commercial projects rely on multi-year insurance and credit arrangements, “necessitating clarity and predictability in the regulatory environment for each.”
While TRIA is not scheduled to expire until the end of next year, the association said early renewal is imperative to avoid market disruption.
“Past TRIA reauthorizations have benefited from strong bipartisan support, and Congress has recognized the vital role that TRIA plays and has reauthorized the program on five separate occasions,” ABA said.
