00:00members of the subcommittee thank you for inviting me to testify about the
00:04September 11th victim compensation fund or the VCF hearings like this remind us
00:10that September 11th 2001 marked only the beginning of an ongoing and evolving
00:15tragedy to those of you who share the table with me who were there who
00:20responded to the attacks or would not allow terrorism to prevent you from
00:25returning to your schools homes or workplaces thank you for your heroism
00:30and your sacrifice I have spent my career in public service including more
00:35than 20 years at the Justice Department but since the Attorney General appointed
00:39me as Special Master in 2016 I have been humbled by the responsibility of serving
00:45the strong and resilient 9-11 community I was privileged recently to attend the
00:50dedication of the Memorial Glade at the 9-11 Museum in New York and I was
00:55reminded of the startling fact that the nearly 3,000 lives lost on September 11th
01:01may soon be overtaken by the number of lives lost in the years afterwards to
01:06illnesses that stemmed from exposure to toxins at all three attack sites while no
01:12amount of money can fully compensate for such losses I am proud that the VCF has
01:17been able to provide some needed relief to those who have suffered for so long the VCF is an
01:24extraordinarily successful program as of May 31st we have awarded almost 5.2
01:30billion dollars to nearly 22,500 individuals who suffer physical health
01:37conditions including to the families of more than 850 who have died as a result of
01:43their exposure in New York City at the Pentagon and in Shanksville those
01:48compensated include first responders workers or volunteers in construction
01:53cleanup and debris removal and people who lived worked or went to school in the
01:58affected areas the VCF has received claims from individuals in every state of
02:03the nation including those who came in from around the country as part of the
02:08response efforts and those who have relocated in the years since the attacks
02:12in my three years at the VCF we have significantly improved efficiency and
02:18claim determination rates the VCF now issues at nearly as many awards each year
02:25as it did in total in its first five years and the VCF under my leadership has not
02:31documented a single instance of fraud in a paid claim we work diligently with the
02:37department's office of the inspector general to ensure that any indicia of
02:41fraud is investigated and reconciled despite its successes however the VCF
02:48faces a difficult situation we received a record number of new claims in 2018 and
02:55we are on pace to exceed that number in 2019 the issue is basic math almost 5.2
03:01billion dollars awarded to nearly twenty two thousand five hundred individuals
03:05just over two billion dollars left with over 21,000 claims and amendments still
03:11needing a decision and thousands more expected to be filed before the VCF's
03:17December 18th 2020 deadline several trends help us understand how we got here
03:22since reauthorization of the Zadroga Act in December of 2015 we have seen a
03:28dramatic increase in claims filed on behalf of those who have died as a
03:33result of their 9-11 related exposure a significant increase in cancer claims
03:38and a marked increase in claims from survivors meaning those who lived worked
03:43or went to school in the affected areas taking account of these trends and the
03:48increasing rates of both claims submissions and award determinations in
03:53February I determined that the VCF had insufficient funding to compensate all
03:58pending claims and those projected to be filed under then existing policies with
04:04that determination I was required by law to modify VCF policies and procedures so
04:10that the VCF does not exceed its appropriated limit this meant making
04:15significant reductions and awards in deciding how to do this I felt strongly
04:20that I could not leave some claimants uncompensated or fail to make allowance
04:25for those who suffered most I concluded that the fairest solution was to apply a
04:31percentage reduction to all claims thus depending on when the claim was
04:36submitted calculated loss values are being reduced by either 50 or 70 percent
04:41with required offsets taken in full I wish to thank the Judiciary Committee and the
04:47members of this subcommittee for giving me the opportunity to speak to you about
04:51the successful and important program along with my dedicated staff and with the
04:56full support of the Justice Department I remain strongly committed to serving the
05:009-11 community we remain hopeful that our work continues to provide needed relief
05:05and we stand ready along with the Justice Department to work with you to ensure
05:10that Congress has the information it needs to address appropriate legislative
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