The Senate yesterday passed by unanimous consent a bill to reauthorize the Terrorism Risk Insurance Act for seven years. The House previously passed a separate version of the bill, meaning the legislation will likely next head to conference committee to work out the differences.
TRIA was passed by Congress following the Sept. 11, 2001, terrorist attacks and has been renewed several times since. The act is currently scheduled to expire at the end of next year. The Senate bill [S. 4395] would simply reauthorize the law for another seven years. However, the House version [H.R. 7128] would raise the dollar threshold for declaring an act of terrorism a major event from $5 million to $10 million, starting in 2029.
In an August letter to lawmakers, the American Bankers Association stressed that 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.
