Litigation

The expansion of the 9/11 compensation fund

By Carter Wood

The House of Representatives is scheduled to vote today on H.R. 847, the James Zadroga 9/11 Health and Compensation Act. The bill creates a variety of new, redundant health programs for care of people exposed to the terrorist attacks against the World Trade Center. It also makes major changes to the compensation fund established in the wake of the murderous assault.

The CRS summary of the bill reports:

Title II : September 11th Victim Compensation Fund of 2001 - (Sec. 201) Amends the Air Transportation Safety and System Stabilization Act to: (1) make individuals eligible for compensation under the September 11 Victim Compensation Fund of 2001 for harm as a result of debris removal; (2) extend the deadline for making a claim for compensation for physical harm not discovered before the deadline; (3) cap liability for claims related to debris removal based on the level of insurance available; (4) limit the total payment for compensation for claims filed on or after the regulations are updated pursuant to this Act; and (5) cap the amount that an individual may charge in connection with a claim under such Act, with exceptions.

[UPDATE: 11:05 a.m. If the House rule passes, the House will consider a substitute amendment.]

Despite the political sensitivities, the bill failed to gather the two-thirds majority necessary for House passage when leadership tried to push the bill through on the suspension calendar in July. (The vote was 255-159.) Although aggressively promoted by New York-area members of the House and local editorialists, the bill could run into further difficulties today. See WABC, "GOP amendments could derail 9/11 health bill," with compensation for illegal aliens being the issue.

The only groups to have lobbied in support of the measure this year (second quarter) are the labor unions and trial lawyers, that is, the American Association for Justice.

During the July floor debate, Rep. Joe Barton (R-TX), summarized the objections in his floor remarks:

The bill before us today... creates a brand new entitlement program that could last an additional 21 years. It creates a special compensation system for hospitals in the New York City area at 140 percent of Medicare rates, provides special protections for trial lawyers, and creates a host of special programs and special protections. It also does not require any kind of a citizenship test, Mr. Speaker, to receive a benefit. It is, in fact, apparently a $7.4 billion new entitlement program.

The minority report filed on the bill by the Republicans on the House Judiciary Committee further detailed the objections:

Full post as published by Point of Law on September 29, 2010 (boomark / email).