Terrorism insurance bill OK'd

WASHINGTON -- The government would cover up to $90 billion annually in insurance claims from any future terrorist attacks under a compromise bill approved Thursday by the House as lawmakers sorted through their final stack of legislation for the year.

The terrorism insurance bill, approved on a voice vote, began moving after telephone calls by President Bush to Republican leaders in recent days broke a yearlong logjam. It is expected to be cleared quickly by the Senate and sent to Bush, who says the measure would invigorate the drooping economy.

"This legislation will put hard hats back to work, create construction jobs, improve the legal process and protect taxpayers," White House spokesman Scott McClellan said.

To gain crucial Democratic support, Bush had to accept no limits on punitive damages, which many Republicans consider a boon to trial lawyers usually allied with Democrats. But GOP leaders said they would revisit the issue of tort reform next year, including the question of punitive damages.

"We're going to lock the doors of the federal Treasury against the trial lawyers," said Rep. Tom DeLay, R-Texas, who will be the No. 2 GOP leader in the new Congress next year.

Shortly before the House swung into action, the Senate approved a bill aimed at thwarting terrorism at the country's 361 seaports, which are considered especially vulnerable to such attacks. Senators voted 95-0 for legislation requiring ports to develop security plans, though the measure lacked most of the hundreds of millions or more that such safeguards would cost.

The activity came as the lame-duck 107th Congress tried squeezing out a last batch of bills before its end. The House was hoping to adjourn for the year Thursday night, while the Senate seemed likely to work into next week on a measure creating a Homeland Security Department and other legislation.

As lawmakers worked into the evening:

A bill tightening bankruptcy laws was derailed in the House after conservatives objected to language barring people from declaring bankruptcy to avoid paying fines for disrupting abortion clinics.

The House voted 366-19 to prevent $60 billion in automatic spending cuts from occurring, largely to pay costs of last year's tax cut. Budget laws require such reductions if the deficit is increased, and lawmakers routinely vote to cancel them.

The House by voice vote approved legislation extending the welfare law and some jobless benefits and paving the way for the administration to boost Medicare payments to doctors. A provision providing tax breaks to some military personnel was dropped. The measure was opposed by the Democratic-run Senate, and talks were under way on a bill containing only unemployment benefits more generous than the House's.