The Senate Banking Committee has announced an agreement on legislation that will extend the Terrorism Risk Insurance Act (Tria) for a further two years.
However, the number of insurance lines covered by the programme is to be reduced. In addition, the size of an event triggering cover under the programme will increase from $5m to $50m in the first year, and double to $100m in the second.
Senate Banking Committee chairman Richard Shelby said: "I believe that it strikes the appropriate balance between the needs of the industry and efforts to foster greater private market solutions."
Senator Bob Bennett said: "This is not just an insurance industry issue. This is an issue which dramatically impacts the entire economy.
"Failure to produce this legislation would impede the economic progress our country is currently experiencing. I'm delighted we've been able to get all of the players at the table to reach this agreement."
The draft legislation is due to be marked up by committees in the Senate and House of Representatives later today.
