Democrats and Republicans in Congress clashed Wednesday over how to shape an extension of the federal terrorism insurance program, raising concerns that the current backstop measure may abruptly expire Dec. 31.

Specifically, Democrats in both the Senate and the House called for a prompt extension of the current law, the Terrorism Risk Insurance Act, while Congress debates the scope and substance of a long-term federal backup of terrorism risk coverage.

But Republicans in the House warned that would be like playing Russian roulette, because the Bush administration has made clear that a straight-up extension of TRIA is unacceptable.

What Republicans did not say was that one of the reasons a straight-up extension has no traction in the White House is that conservative members of Congress, especially those who represent non-metropolitan constituencies, do not support such an extension.

In comments at a hearing on the future of terrorism risk insurance before the Capital Markets Subcommittee of the House Financial Services Committee he chairs, Rep. Richard Baker, R-La., said, "It is very clear to me, and I think to Rep. Mike Oxley, R-Ohio, chairman of the full committee, that a very simple extension of the TRIA program will not be acceptable to the administration."

He was responding to calls by Rep. Paul Kanjorski, D-Pa., the ranking minority member of the Capital Markets subcommittee, and other Democrats on the committee that the program be extended while a permanent solution to the issue is crafted.

Rep. Kanjorski said there is a need to act quickly and complained that some members of Congress appear to be opposed to progress on TRIA because they want some perfect solution to the problem.

"Delay for the purpose of perfection is a very bad idea," he said. He suggested adding to the extension bill a reporting process provision that would give the stakeholders (i.e., insurers, the White House, Congress, etc.) six months to submit their plans for a permanent program.

Meanwhile, Sens. Chris Dodd, D-Conn., and Hilary Clinton, D-N.Y., held a press conference during which they said there was an "urgent need" for a simple two-year extension of the TRIA program through legislation that Sen. Dodd co-sponsored with Sen. Robert Bennett, R-Utah. Sen. Dodd noted at the press conference that the Dodd/Bennett bill has 32 co-sponsors.

"Sadly, the recent attacks in London and Egypt remind us that terrorism can strike anytime, anywhere," Sen. Dodd said. "And while we will do everything within our power to stop future terrorist attacks, it's important to recognize that even the threat of terrorism has a lasting effect on our economy."

Sen. Dodd added that TRIA "is working and it's imperative that this law be extended as quickly as possible."

"It is simply a mistake to let TRIA expire," Sen. Clinton said. "It is too important to our national security and our economy."

She added that, "TRIA gives assurances to investors, to builders and to workers that whatever emergencies we face, we will have the means and the will to rebuild, repair and reinvest, and that terrorists cannot disrupt the long-term strength of our economy."