Fed Terrorism Extension Bill Under White House Review
Now that the House has passed the Senate's version of the federal government's terrorism risk insurance program, it's in the White House's hands.
White House spokeswoman Dana Perino in a briefing with reporters in answer to a question about whether President George W. Bush would sign the bill to renew the Terrorism Risk Insurance Act (TRIA), stated: "We are reviewing that bill."
"Last spring, we had concerns about the bill," Perino said. "So, they're reviewing the bill now for the final scrub of it before we can decide whether or not he'll sign it."
Although the Bush administration favors ending TRIA, it said earlier this year that it would not oppose extending TRIA for now along the lines of the bill now under its review.The bill, slated to expire on December 31, would be extended for seven years.
TRIA promises federal government aid for private-sector insurance companies should they be hit by massive terrorism damage claims.
The renewal backed by Congress would expand TRIA to cover domestic as well as foreign terrorist attacks, but it would make few other changes to a program in place since 2002.
Supporters of the program say it is critical to stabilizing major urban property markets, especially in New York City, by ensuring that insurers offer terrorism risk coverage. However, critics of TRIA call it an unneeded subsidy to insurers that could cover terrorism risk without a government backstop.
Published on December 20, 2007
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