Gov. Brown urges lawmakers to renew terror insurance program

California Gov. Jerry Brown (D) is urging his state’s delegation to reauthorize Congress’s terrorism insurance program.

In a letter Wednesday, Brown called for a long-term renewal “without any major structural changes” to the program and argued that failing to act would hurt the state’s businesses.

{mosads}“TRIA [the Terrorism Risk Insurance Act] costs taxpayers virtually nothing, requiring insurers to absorb losses. TRIA provides economic security to millions of California workers and the thousands of restaurants, hotels and retail stores that exist in large part to serve the state’s millions of visitors,” Brown wrote.

“Should Congress fail to reauthorize or if there are significant structural changes that threaten insurers’ solvency, insurers may become more cautious in their exposure and not provide this insurance to businesses that need it,” Brown added.

Congress must reauthorize TRIA, which allows for the government to provide a federal backstop after a massive terror attack, by the end of the year or it will shut down.

Tea Party critics, led by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), argue that TRIA puts taxpayers at risk for attacks that could cost hundreds of millions of dollars.

They want to reform the program by raising the threshold triggering government intervention from $100 million to $500 million, among other changes.

Hensarling is negotiating a deal with Sen. Charles Schumer (D-N.Y.).

The Senate passed a seven-year reauthorization bill in July on a 93-4 vote.

Hensarling’s panel approved a 5-year reauthorization bill that included reforms in June. But the House never voted on that bill because it lacked the support of the business community.