Currently, the program will expire at the end of 2014 if it is not renewed.

There are calls, especially by members of the more-conservative House, that TRIA be allowed to expire because the private sector should be able to able to provide enough capacity to insure the risk of terrorism without federal involvement.

But, Schumer said TRIA is equal to flood insurance in importance to New Yorkers. He said the private market could not provide the capacity, at reasonable prices, to handle the risk. Schumer said, "There are a lot of tall buildings in New York, and terrorism is unpredictable."

In response, Lew said he was "certainly familiar with TRIA," having been chief financial officer of New York University on Sept. 11, 2011, and that, "I saw the need for it then."

But he said he is less familiar with the current need for the program.

Legislation extending the program for five years, until 2019, was introduced in the House Feb. 5, Rep. Rep. Michael Grimm, R, and Carolyn Maloney, D, both from New York, as primary sponsors.

From an industry perspective, Jimi Grande, senior vice president of Federal and Political Affairs for the National Association of Mutual Insurance Companies, says, "The TRIA program is one of the more unknown programs established as part of the national-security response to the attacks of Sept. 11, 2001, as thankfully we haven't had any catastrophic terrorism attacks since then. The program has served an important function, however, ensuring a private market exists for terrorism coverage and fostering continued economic growth. NAMIC has called on Congress and the Administration to work towards a swift reauthorization."