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Bill to Extend Terror Insurance Faces Bush Veto

WASHINGTON, Sept. 17 (AP) — The White House threatened on Monday to veto a bill that would add 15 years to a post-Sept. 11 government insurance program that supporters say is critical for major projects like the new World Trade Center.

The legislation, known as the Terrorism Risk Insurance Act, was originally passed by Congress after the 2001 attacks. It is due to expire this year, and the House had planned to vote this week on a 15-year extension.

If the current version of the bill reaches President Bush, his advisers will urge a veto, the White House Office of Management and Budget said in a statement.

The administration said the government should get out of the insurance business and end the program, which is essentially a backstop to ensure that terrorism insurance is available and affordable for major projects and buildings.

Peter King, a Long Island Republican, contended that the program was “absolutely essential.”

“We will continue to support it and work for it one step at a time,” he said.

Businesses, particularly in New York, claim that without the program they will not be able to get insurance coverage for nuclear, biological, chemical and radiological attacks. Some local officials fear that without the program, they may not even be able to rebuild the trade center site.

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