9/11 Compensation Fund
The families of the first responders killed or injured on Sept. 11 have received more than $7 billion in compensation from a federal fund. But a new study shows how unequally the money has been distributed. It turns out that the average award to victims’ families is about $2 million, or less after taxes and public benefits are taken into account.
The 9 11 compensation fund is designed to compensate people who developed illnesses after being exposed to toxic dust and debris at the site of the attacks. A second iteration of the program was launched in 2011, and Congress extended it last year. Those eligible for the funding include first responders and others who lived or worked near the World Trade Center and Pentagon. The victims do not have to prove their illnesses were directly caused by exposure at the site, but must show they had been there and that it was a factor.
Some of those illnesses have been life-altering, like respiratory conditions or nerve damage that leave them unable to work. Other ailments have been debilitating but not fatal, such as the chronic headaches and mental problems of firefighter Ann Van Hine, whose husband was among the firefighters who died in the collapse of the South Tower. But she was hesitant to take the money from the original 9/11 fund because she did not want to sign away her right to sue in the future.
9/11 Compensation Fund – Average Payout to Victims’ Families Is $2 Million
Ultimately, she and her two daughters took the money, but Van Hine says she is still struggling to pay her bills. “It’s hard to know how long you’re going to be able to work,” she says. “I just try to make the best of it.”
A new study published in the journal Health Affairs reveals how unequally the 9/11 compensation fund has distributed its money, finding that victims’ families are receiving an average award of $2 million. The report, from the Rand Corporation, is based on a survey of 3,600 families of first responders who received death awards from the fund. It also analyzes the distribution of lump sum catch-up payments.
The authors looked at several factors in the distribution of money, including the amount of insurance that a victim had and whether it was paid from private sources or the government. They found that insurance companies accounted for the largest share of the total, at $19.6 billion. The remainder came from the government and from charitable donations.
The researchers also compared the amounts received by the families of uniformed first responders and civilians who suffered similar economic losses. They found that on average, the families of first responders who died got $1.9 million more in compensation from the Fund than civilians who had similar losses. The difference was driven primarily by the range of charities set up for police and firefighters after the attacks. A similar disparity exists in the distribution of lump sum catch-up payments. However, this gap is lessened when comparing the number of family members awarded versus non-family members.