By Bill Parry
A bill to extend the expiring Terrorism Insurance Act effectively died Tuesday when the U.S. Senate failed to reach an agreement to hold a vote before Congress heads home for the long holiday break. The program was created following the Sept. 11 attacks providing crucial federal insurance for the owners of skyscrapers and other large projects that could be the target of terrorist strikes.
“The Terrorism Risk Insurance Act is essential to New York City’s economy and the economics of other cities that continue to be terror targets,” U.S. Rep. Carolyn Maloney (D-Astoria) said. “The failure to extend it will have a very harmful effect. Without TRIA, new development projects will be stalled, and there will be substantial financial uncertainty for current policy holders. Since banks often require ‘all risk’ policies in order to provide financing, the elimination of TRIA could place property owners in default of their loans.”
Maloney was the lead sponsor of the bill and it passed in the House last week after months of debates and exhaustive negotiations. The Senate Majority leader Harry Reid (D-Nev.) blamed retiring Sen. Tom Coburn (R-Okla.) for “killing” the bill because he wanted to make last-minute changes and would not drop his objections.
“The vast majority of Senate and House members strongly supported extending this program,” Maloney said. “But it will not be extended, because Tea Party politicians, who lack the will or ability to compromise, stood in the way. Their obstructionism will reap negative economic consequences on businesses throughout our country.”
Mayor de Blasio called it an urgent piece of legislation.
“The blockage of the bill to reauthorize TRIA is a step backwards and a grim reminder of the consequences of the ongoing gridlock in Washington,” he said.
Congress will need to reintroduce the measure in January.
Reach reporter Bill Parry by e-mail at bparry@cnglocal.com or by phone at (718) 260–4538.
