Congress Fails to Reauthorize the TRIA Program
The 113th Congress concluded its final session Dec. 16 without reauthorizing the Terrorism Risk Insurance (TRIA) program. Despite overwhelming bipartisan support, and more than four hundred representatives voting to reauthorize the program for six years, the democratically controlled Senate was unable to vote on the bill before leaving town for the last time until the new year.
TRIA, a government program that establishes a federal backstop for the private terrorism insurance market, was seen as a must-pass measure that would provide stability and confidence to the future of the commercial construction industry. With the program set to expire at the end of the year, experts fear that private insurers will pull out of the terrorism insurance market, causing rates to rise and projects to be put on hold.