WASHINGTON--Rep. Barney Frank, D-Mass., said yesterday he is at work on a solution to budget issues that caused the House leadership to delay this week's floor action on legislation extending federal supports for terrorism insurance.

Under consideration is a provision requiring a separate vote by Congress to authorize payment of claims. That is seen as dealing with cost issues raised by a Congressional Budget Office letter last week saying the program could cost the government $10.4 billion over 10 years even if there is no attack (or $8.4 billion when direct spending costs are offset by an estimated $2 billion rise in government revenues.)

Under House rules instituted by Democrats when they took over this year, any program that causes an increase in federal spending must be offset by either new revenues or cuts in existing programs.

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