This is in contrast to the more widespread Correspondence Theory of Truth, which says that something is true if it corresponds to the way things actually are. This is a classical theory of truth held by both Aristotle and Aquinas.
Personally, I think the Correspondence Theory is far superior to the Pragmatic Theory. I don't want to believe in a religion because it feels good to believe in it. I want to believe in it because it's actually telling us true things about the way things actually are.
By the way, there are many other theories of truth, some quite out there. This entry on truth in the Stanford Encyclopedia of Philosophy gives a good overview: https://plato.stanford.edu/entries/truth/