September 11th Victim Compensation Fund Act - H.R.1327

The September 11th Victim Compensation Fund would be extended through at least fiscal 2092 under a modified version of H.R. 1327.

The measure would appropriate “such sums as may be necessary” to the fund to provide compensation for covered claims, and funding would remain available until it’s spent. The fund most recently received an appropriation of $4.6 billion in fiscal 2017 that was made available until expended.

The Victim Compensation Fund (VCF) pays those who were hurt or killed as the result of the 2001 terrorist attacks or the debris removal operations that followed, as well as their families.

The measure would also extend the filing deadline for claims covered by the fund to Oct. 1, 2090, from Dec. 18, 2020.

“We have a double moral obligation to our 9/11 first responders, survivors, and their families,” Rep. Carolyn Maloney (D-N.Y.), the bill’s sponsor, said in a June 12 news release. “First, to those who ran to save lives, putting others ahead of themselves.”

“Secondly, to all those our government told it was safe to breathe the air, drink the water – go back to work and school when it wasn’t. We lied to them, and now we need to do everything we can to be there for them and make their suffering less,” she continued.

The modified bill set for floor consideration would extend the fund by two years more than the committee-approved version and make funding available until expended, among other changes. It also would stipulate that the bill is exempt from statutory pay-as-you-go requirements.

Fund Background
The Victim Compensation Fund first operated from 2001 to 2004, distributing more than $7 billion to more than 2,880 families of those who died in the attacks and 2,680 individuals who were injured, according to testimony from Rupa Bhattacharyya, who serves as “special master” to administer the fund, at a June 11 subcommittee hearing.

The fund was reactivated in 2011 by the “James Zadroga 9/11 Health and Compensation Act” (Public Law 111-347) and reauthorized in 2015 under Public Law 114-113. It has paid more than $5.17 billion to nearly 22,500 victims and their families as of May 31, according to Bhattacharyya.

In February, she determined that the VCF contained insufficient funding to pay all outstanding and projected claims. The special master is required by law to prioritize and reduce payments to ensure they don’t exceed the appropriated amounts in the fund. After soliciting public comment, she announced that all outstanding award payments would be reduced by at least 50% and as much as 70%.

Fund Administration
The bill would require the special master to ensure victims who received reduced payments because of insufficient funding are paid the full award amount in the first fiscal year after adequate funds are made available.

The measure would allow the special master to exceed the cap on payments to individuals for noneconomic losses in special circumstances. Under current law, the caps are $250,000 for losses resulting from cancer and $90,000 for other injuries.

The law also limits annual gross income when determining economic losses to $200,000. The bill would direct the special master to update that cap periodically to account for inflation.

The measure also would allow the Justice Department to appoint as many as two deputy special masters.

Budget Effects
The Congressional Budget Office hasn’t released a cost estimate on the modified version of the measure set for floor consideration.

The committee-approved bill would have increased mandatory spending by $10.2 billion from fiscal 2019 through 2029, according to a July 11 cost estimate.

The measure wouldn’t affect revenue or discretionary spending and wouldn’t impose intergovernmental or private-sector mandates.

Group Positions
Citizens for the Extension of the James Zadroga Act has SUPPORTED the bill.

The coalition includes the AFSCME, Federal Law Enforcement Officers Association, International Association of Fire Fighters, New York State AFL-CIO, New York City Council, and Sergeants Benevolent Association.

Other groups that reported lobbying on H.R. 1327 include the American Federation of Government Employees, American Association for Justice, and Utility Workers Union of America. Cognizant Technology Solutions U.S. Corp. also reported lobbying.

Previous Action
The House Judiciary Committee approved H.R. 1327 by voice vote on June 12.

Maloney introduced the bill on Feb. 25. It had 332 cosponsors, including 236 Democrats and 96 Republicans, as of July 10.

The modified bill is called the “Never Forget the Heroes: James Zadroga, Ray Pfeifer, and Luis Alvarez Permanent Authorization of the September 11th Victim Compensation Fund Act.” Zadroga and Alvarez were New York Police Department detectives and Pfeifer was a firefighter with the New York City Fire Department, according to a July 8 news release from Maloney’s office. They died from cancer and other health problems linked to their work at the World Trade Center site.