WSJ: Businesses Urge Passage of Terror Insurance Program
At the end of this month, the Terrorism Risk Insurance Act will expire, creating uncertainty for businesses that want to invest in our economy and create more jobs here at home. The 113th Congress adjourned without reauthorizing this program, which is crucial to our economic stability and enjoys broad support. Now business leaders are joining House Democrats in calling on Republicans to move quickly to extend TRIA when the 114th Congress convenes in January. From the Wall Street Journal:
“Business leaders warned Wednesday of disruptions in the insurance and commercial real-estate markets after Congress adjourned without extending the federal government’s terrorism insurance program.”
“They expressed hope, however, that the new Congress would deal with the issue early next year, a sentiment echoed by House Speaker John Boehner (R., Ohio), who said the House will act very quickly in the new Congress to reauthorize this program.’ A spokesman for incoming Senate Majority Leader Mitch McConnell (R., Ky.) said Congress would complete work on the measure next year.”
“The program, originally passed in the wake of the Sept. 11, 2001 terrorist attacks, is set to end at midnight December 31. It provides a federal government backstop when losses from a certified terrorist attack reach a certain level, currently set at $100 million.”
“Supporters of the program had been expecting Congress to extend it for six years before adjourning for the year. But a narrow legislative window and an objection from outgoing Sen. Tom Coburn (R., Okla.) prevented the Senate from considering the House-passed measure.”
“Real-estate owners and insurance-industry officials said the program’s expiration will trigger a few immediate problems such as defaults on some office-building mortgages.”
“More harmful repercussions, such as work shutdowns on developments, would result if the program is discontinued for a long period, they said.”
“Business leaders said major headaches would be avoided if Congress acts quickly in 2015.”
“Insurance industry executives said the lack of a federal backstop could create havoc in the real-estate industry and other businesses.”
“Even if the program is extended early next year, the lack of action this month has further damaged Congress’ credibility among business owners, Mr. Durst said. ‘It shakes financial institutions that this happens,’ he said. ‘It shows little concern for our concerns.’”
“The push to extend the program had broad support. The Senate earlier this year approved an extension of terrorism insurance on a 93-4 vote. Earlier this month, lawmakers appeared to reach a deal to extend the program for six years, while increasing the trigger for the government backstop to $200 million. The negotiated language passed the House last week, 417-7.”
Republican leaders have said they plan to address this important legislative priority at the beginning of 2015, and in the interest of further job creation and economic growth, we hope they stick to their word by moving to reauthorize TRIA without delay.