Both chambers of Congress have passed legislation to reauthorize the program, yet no final legislation was passed and sent to the President’s desk for signature.
WASHINGTON, D.C. – In a letter to every member of the United States House of Representatives, the American Hotel & Lodging Association (AH&LA) urged the chamber to immediately address the need to reauthorize the Terrorism Risk Insurance Act (TRIA) now that the 114th Congress has commenced. Both chambers of Congress have passed legislation to reauthorize the program, yet no final legislation was passed and sent to the President’s desk for signature.
“As the 114th Congress begins its legislative work, it is imperative that the Terrorism Risk Insurance Act (TRIA) be reauthorized immediately. Therefore, the American Hotel & Lodging Association (AHLA), representing all segments of the 1.8 million-employee U.S. hotel industry, urges you to vote in favor of the Terrorism Risk Insurance Program Reauthorization Act of 2015 when it is brought before the House for consideration this week,” states the letter. “The time is now to reauthorize TRIA.”
First passed by Congress in 2002 in response to the terrorist attacks of September 11, 2001, TRIA was created to provide a federal backstop for terrorism insurance coverage. The program was renewed in 2005 and again in 2007. The program expired at the end of December.
AH&LA has been a persistent advocate of TRIA reauthorization, including by activating its membership with phone calls, emails and letters to members of Congress. Additionally, in November 2014, AH&LA, along with more than 80 other hotel industry groups including hotel brands, management companies, real estate investment trusts (REITs), owners and state hotel associations, sent a letter calling on the House of Representatives to get back to work and pass the Terrorism Risk Insurance Act (TRIA) in the wake of the midterm elections.
“January 6, 2014
U.S. House of Representatives
Washington, DC 20515
Dear Representative,
As the 114th Congress begins its legislative work, it is imperative that the Terrorism Risk Insurance Act (TRIA) be reauthorized immediately. Therefore, the American Hotel & Lodging Association (AHLA), representing all segments of the 1.8 million-employee U.S. hotel industry, urges you to vote in favor of the Terrorism Risk Insurance Program Reauthorization Act of 2015 when it is brought before the House for consideration this week.
This legislation is virtually identical to the TRIA reauthorization bill which overwhelmingly passed the House in December 2014 by a vote of 417 – 7. Similar legislation passed the Senate 93 – 4 last July, but unfortunately the two chambers failed to overcome procedural hurdles to send a final bill to the President before the 113th Congress adjourned. As a result, the TRIA program expired on December 31st, creating harmful uncertainty in the hotel industry and putting our entire economy at needless risk in the event of a terrorist attack.
This issue is not a theoretical one for our members. Several hotels were destroyed or damaged on September 11, 2001, and our economy was paralyzed, in part because businesses could not obtain terrorism insurance even though it was required by lenders who funded development projects. The creation of TRIA in 2002 addressed this issue by providing for the orderly payment of insurance claims in the event of catastrophic terrorist attacks and mandating the recoupment of federal payments from industry in order to protect taxpayers. Indeed, the Congressional Budget Office has repeatedly confirmed that TRIA will operate at no cost to the federal government.
The time is now to reauthorize TRIA.
Sincerely,
Craig Kalkut
Vice President of Government Affairs
American Hotel & Lodging Association”
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
