Rep. Barney Frank, D-Mass., was working last week on a way to clear budgetary speed bumps that caused the House leadership to delay floor action on legislation extending federal support for terrorism insurance.
Under consideration is a provision requiring a separate vote by Congress to authorize payment of claims. That is seen as a way to reconcile expense issues raised by a Sept. 6 Congressional Budget Office letter, warning that extension of the terrorism reinsurance program could cost the government $3.5 billion over five years and $8.4 billion over 10 years–even if there is no attack (or $8.4 billion when direct spending costs are offset by an estimated $2.0 billion rise in governmental revenues from 2008-2017.)
Under House rules instituted by Democrats when they took over procedural control of Congress 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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