The Terrorism Risk Insurance Act is once again in jeopardy.
According to a Politico report, talks broke down in Congress today over the critical insurance measure, which is currently set to expire Dec. 31. Without a renewal of the program, rates for terrorism insurance, workers’ compensation in at-risk cities and several other related lines could become unaffordable.
The potential non-renewal of TRIA has also sparked concern over the cancellation of Super Bowl XLIX, as most prospective insurers of the event are unwilling to write coverage without the federal backstop program in place.
Reports suggest the impasse surfaced after Sen. Chuck Schumer resisted revisions proposed by House Financial Services Chairman Jeb Hensarling on the 2010 Dodd-Frank law. In retaliation, House Republicans plan to send the TRIA extension—along with the revisions to Dodd-Frank—as a standalone bill instead of wrapped into the impending funding bill needed to keep the government open past Dec. 11.
House Democrats say they will vote against the TRIA bill if it includes the Dodd-Frank revisions, and Senate Democrats have made it clear they will not take action on the bill.
“This is an attempt to kill the bill, pure and simple,” a Senate Democratic leadership aide told Politico. “Adding in an extraneous, unrelated Dodd-Frank issue that Democrats oppose to a bipartisan TRIA bill that has been carefully negotiated puts the future of TRIA in doubt.”
A Republican aide called the allegation “false on its face,” and it insisted it “won’t kill TRIA.”
While the funding bill will almost certainly pass—forestalling any government shutdown—the future of TRIA is less certain as Schumer and Hensarling continue to disagree over changes to Dodd-Frank.
