Hensarling: Long-term terror insurance bill at risk in lame-duck

House Financial Services Chairman Jeb Hensarling (R-Texas) is warning a long-term reauthorization of the terrorism insurance program may be out of reach in the lame-duck, accusing Senate Democrats of not compromising in talks.

“If Senate Democrats continue to insist on their ‘my way or the highway’ approach, I fear a long-term reauthorization may have to wait until the next Congress,” Hensarling told The Hill. “By refusing to negotiate, Senate Democrats are jeopardizing the long-term reauthorization.”

{mosads}Congress must reauthorize the Terrorism Risk Insurance Act (TRIA) by the end of the year or it will shut down. Hensarling is pushing to reform the program, which provides a financial backstop to insurers in the event of a massive terror attack, arguing that it leaves taxpayers on the hook.

The business community wants a long-term reauthorization and vehemently opposes a short-term measure, which would last about six- to nine-months, claiming that businesses would be hurt by the economic uncertainty.

“I share my colleagues’ frustrations on TRIA negotiations because most members support a long-term reauthorization,” Hensarling said.

The Senate passed a seven-year TRIA reauthorization bill that didn’t include significant reforms in July on a 93-4 vote.

Hensarling said the Senate bill violates “House spending rules.” The GOP House’s “cut-as-you-go” rule requires that spending increases be offset with cuts not tax hikes.

Hensarling’s panel approved its own long-term reauthorization, a five-year measure with reforms that would increase the monetary threshold for when the government intervenes after an attack from $100 million to $500 million.

The House never voted on the bill because it wasn’t supported by the business community.

Sen. Charles Schumer (D-N.Y.) and Hensarling are attempting to negotiate a deal but the Republican lawmaker said those talks haven’t yielded any results.

“Senate Democrats refuse to negotiate, even after I offered a compromise that moves more than halfway towards that Senate’s TRIA bill with reasonable reforms,” Hensarling said. “They not only rejected my compromise, they refuse — refuse — to negotiate.”

Schumer spokesman Matthew House rebuked the criticism, noting that Hensarling has voted to waive House spending rules numerous times.

House said that Hensarling was adding “extraneous riders unrelated to TRIA to his proposals.”

“It is clear from these ridiculous demands that he is not serious about negotiating a real long-term reauthorization deal,” House said.

Hensarling argues that insurance program was pitched as a temporary measure after the Sept. 11, 2001, terror attacks and that it could end up costing Americans hundreds of millions of dollars if used.

This story was updated at 5:50 p.m.