The White House threatened Tuesday to veto the latest House version of legislation to extend the nation’s terrorism insurance backstop for seven years.

In an effort to spur negotiations with the Senate, House Financial Services Chairman Barney Frank , D-Mass., made several major concessions to the Senate on the legislation, accepting a seven-year extension, in line with the Senate’s version of the bill.

The original House bill called for a 15-year extension and expanded the program’s scope significantly.

The House was expected to pass its revised bill Wednesday. But, with the new veto threat, Frank could have trouble getting the Senate to compromise on several provisions he wants to include, particularly as the White House reiterated that it would accept the narrower Senate version of the legislation.

The law obligates the federal government to help pay for losses from terrorist attacks once costs for insurers reach a certain threshold. The current House version would expand the law to include group life insurance. Frank’s revised measure also would reduce the insurance payout threshold that triggers government coverage to $50 million from $100 million.

And the House bill still includes language that would reduce deductibles in areas already hit by a terrorist attack, a provision supported by many New York Democrats.

The program was enacted in 2002 in response to huge insurer losses after the Sept. 11, 2001, terrorist attacks. Lawmakers had intended the law as a stopgap measure to allow the insurance industry to establish new terrorism insurance lines, but much of the industry has come to rely on the backstop.

An extension of the program expires Dec. 31, and industry groups worry the market could be thrown into turmoil without the certainty of a federal backstop.