(Bloomberg) — Lawmakers are close to extending a federal programthat covers a portion of corporations' losses from acts ofterrorism, according to three congressional aides.

House Financial Services Committee Chairman Jeb Hensarling andSenator Charles Schumer are nearing a deal on a six-year extension,according to the congressional staff members who asked not to benamed because a deal hasn't been announced. Insurers would bereimbursed by the government after their aggregate losses reach$200 million, the aides said.

House Speaker John Boehner told reporters today that he'sconfident Congress will renew the program known as the TerrorismRisk Insurance Act. An agreement hasn't been finalized and couldstill change, the aides said.

Agreement between Hensarling, a Texas Republican, and Schumer, aNew York Democrat, would pave the way to another extension of thelaw, which is set to expire at the end of this month. It wasinitially authorized by Congress in 2002 because insurers beganexcluding terrorist acts from policies after the attacks of Sept.11, 2001, and prices for terrorism-only insurance soared.

The contours of an agreement began to form late yesterday aftermeetings involving Hensarling, Schumer and House Majority LeaderKevin McCarthy. Previous talks had hit a standstill when Hensarlingsaid Senate Democrats refused to negotiate and Schumer saidHensarling's demands showed he wasn't serious about coming up witha solution to extend the program.

Dodd-Frank Changes

Hensarling had been seeking to tie the reauthorization to ashift in funding for the Consumer Financial Protection Bureau andother changes to the 2010 Dodd-Frank Act, steps that Schumerresisted. The two sides haven't worked out how to address theDodd-Frank changes, the people said.

Insurers such as ACE Ltd. and the Hartford Financial ServicesGroup Inc. have called on lawmakers to extend the program, as haveuniversities, the National Football League and lobby groups such asthe American Insurance Association.

Schumer's bill is S.2244: Terrorism Risk Insurance ProgramReauthorization Act of 2014.