Federal aid made available to terror victims' families

WASHINGTON -- The victims' families and survivors of the Sept. 11 terrorist attacks can begin applying for federal aid Friday and will be eligible for at least $500,000 each in aid, the Justice Department announced Thursday.

Kenneth Feinberg, the lawyer named to oversee the federal victims' money, said offices would open Friday in New York and Washington to begin taking applications, and that eligible Americans could receive a $50,000 advance quickly.

"We do not want to drag our feet with red tape and bureaucracy," Feinberg said, noting he wants money distributed within 120 days of receiving applications.

Congress on Thursday also moved to waive income taxes and provide payroll tax relief to the families of victims of the attacks. Sen. Jon Corzine, D-N.J., said the tax relief would provide a bridge for families between the receiving of charitable donations and waiting for help from the federal aid program.

Feinberg said he has received input on the fund from many sources, but singled out comments from victims' families.

"They have given me more valuable input than anybody, and I am deeply appreciative," he said.

According to the rules, Feinberg will develop a methodology for calculating how much victims and families should get to ensure that "similarly situated claimants should not receive dramatically different treatment."

Weighing earnings

While families can receive more than $500,000 depending on their circumstances, the rules make clear that families of those who earned high wages wouldn't necessarily receive more than families of victims who earned modest wages.

"A claimant should not assume that he or she will receive an award greater than the presumed award simply because the victim had an income that exceeded the income for the 98th percentile," the rules say.

The fund was set up in September as part of the $15 billion airline bailout bill. Its eventual size will be determined by the number of families that apply and the size of their awards.

The law establishing the fund makes clear that a portion of the award must be based on the victim's income and earning potential. That ranges from the millions of dollars earned by some bond traders to the far smaller salaries of janitors and other low-wage workers.