First responders and others who are seeking a payout from the 9/11 Victim Compensation Fund are looking at reductions of between 50 and 70 percent. This is according to an announcement by current VCF administrator Rupa Bhattacharyya, who took over the job in July, 2016.

Bhattacharyya made an announcement last October, warning that the fund was running low in the face of a dramatic increase in claims. That, in turn, spurred another “rush” of claimants. Now, pending claims filed prior to Feb. 1, 2019 will reportedly be paid at half their value – while those filed after that time will be paid at a mere 30 percent.

The cuts could affect over 19,000 rightful claimants. Speaking to The Washington Post, Bhattacharyya said, “We recognize that this is horribly unfair … unfortunately, the law really leaves us no choice.”

Victims who have yet to file a claim and their advocates are understandably outraged. One victim who was permanently disabled on the day of the terrorist attacks called it “un-American, unpatriotic and inhumane,” accusing Congress of putting “an arbitrary deadline on illnesses that don’t have deadlines.”

About the 9/11 Victims Compensation Fund

The September 9/11 Victims Compensation Fund was established by Congress as part of the Air Transportation Safety and System Stabilization Act in order to compensate victims and their families. Eventually, $7 billion was made available to 97 percent of the victims and their families, with an average payout of $1.8 million.

Most claimants suffer some form of cancer that was caused by exposure to the dust, asbestos, jet fuel and other toxins that filled the air in the days after the event. Many of these cancers have long latency periods; in order to qualify, the diagnosis must have been made 4 or more years following exposure (1 year for various forms of bone and blood cancer). In return, those who file claims against the Fund must sign an agreement not to pursue legal action against the airlines involved.

Why is the Fund Running Short?

The original 9/11 Victim Compensation Fund operated between November 2001 and June 2004.

In January 2011, President Barack Obama signed a bill that reactivated the Fund, providing another $2.7 billion for victims and their families. The Obama Administration reauthorized the Fund in 2015, appropriating an additional $4.6 billion — bringing the total to over $7.3 billion. The reauthorization also extended the deadline for filing claims to Dec. 31, 2020. To date, $5 billion of that money has been paid out.

As this deadline has drawn near and Special Master Bhattacharyya warned of the dwindling amounts available, there has been a surge in the number of claims. She has noted that since the Fund was reauthorized in 2015, the number of claims has grown by 200 percent. She said there has been “an extremely large increase in the number of deceased claims…[and] an increase in the number of serious conditions.”

Last year, the Fund paid out $1.5 billion.

Is Anything Being Done?

Currently, there is are bipartisan efforts in Congress to shore up the 9/11 Victim Compensation Fund and extend it through 2090. According to Representative Carolyn Maloney (D-NY), a bill to permanently extend the Fund had 85 co-sponsors in the House as of February 25.