[Federal Register Volume 86, Number 57 (Friday, March 26, 2021)]
[Notices]
[Pages 16211-16212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06084]


=======================================================================
-----------------------------------------------------------------------

GOVERNMENT ACCOUNTABILITY OFFICE


Notice of Methodology for Estimating Lump Sum Catch-Up Payments 
to Eligible 9/11 Victims, 9/11 Spouses and 9/11 Dependents; Request for 
Comment

AGENCY: U.S. Government Accountability Office (GAO).

ACTION: Notice of methodology; request for comment.

-----------------------------------------------------------------------

SUMMARY: GAO is now accepting comments on our methodology for 
estimating potential lump sum catch-up payments to certain 9/11 
victims, 9/11 spouses, and 9/11 dependents who have submitted eligible 
claims for payment from the United States Victims of State Sponsored 
Terrorism Fund. GAO is conducting an audit and publishing this notice 
pursuant to the Sudan Claims Resolution Act. Comments should be sent to 
the email address below.

DATES: Interested persons are invited to submit comments on or before 
April 26, 2021.

ADDRESSES: Submit comments to [email protected] or in writing 
to Mr. Charles Michael Johnson, Jr. at 441 G Street NW, Washington, DC 
20548.

FOR FURTHER INFORMATION CONTACT: Charles Michael Johnson Jr. at (202) 
512-7500 or [email protected] if you need additional information. For 
general information, contact GAO's Office of Public Affairs, 202-512-
4800.

SUPPLEMENTARY INFORMATION: Pursuant to Section 1705 of the Sudan Claims 
Resolution Act, GAO is conducting an audit and publishing this notice 
of our methodology for estimating potential lump sum catch-up payments 
to 9/11 victims, 9/11 spouses, and 9/11 dependents \1\ who have 
eligible claims for payment from the United States Victims of State 
Sponsored Terrorism Fund (Fund), established in 2015 by the Justice for 
United States Victims of State Sponsored Terrorism Act (Terrorism 
Act).\2\ While the Terrorism Act, as amended, contains a provision for 
us to estimate these catch-up payments, it does not currently authorize 
such catch-up payments to be made. The Fund is administered by a 
Special Master appointed by the Attorney General and supported by 
Department of Justice personnel.\3\
---------------------------------------------------------------------------

    \1\ See 34 U.S.C. 20144(j)(10)-(14) (defining the terms ``9/11 
victim,'' ``9/11 spouse,'' and ``9/11 dependent,'' among others); 
see also 28 CFR 104.2, 104.3.
    \2\ Public Law 116-260, div. FF, tit. XVII, 134 Stat. 1182, 
3293-3294, amending Public Law 114-113, div. O, tit. IV, 404, 129 
Stat. 2242, 3007-3017 (classified as amended at 34 U.S.C. 
20144(d)(4)(C)).
    \3\ See 34 U.S.C. 20144(b)(1).
---------------------------------------------------------------------------

    For purposes of the Fund, the term ``claim'' generally refers to a 
claim based on compensatory damages awarded to a United States person 
in a final judgment issued by a United States district court under 
State or Federal law against a foreign state that has been designated a 
state sponsor of terrorism and arising from acts of international 
terrorism.\4\ In general, a claim is determined eligible for payment 
from the Fund if the Special Master determines that the judgment holder 
(referred to as a ``claimant'') is a United States person, that the 
claim at issue meets the definition of claim above, and that the claim 
was submitted timely.\5\ The first round of payments was distributed in 
early 2017 and the second round in early 2019.\6\ As of March 2021, the 
Fund had allocated $1.075 billion for third-round payments and was in 
the process of distributing payments on a rolling basis.\7\
---------------------------------------------------------------------------

    \4\ 34 U.S.C. 20144(c)(2).
    \5\ 34 U.S.C. 20144(c)(1).
    \6\ The Fund allocated $1.1 billion for initial-round payments 
and $1.095 billion for second-round payments. See U.S. Victims of 
State Sponsored Terrorism Fund, ``Special Master Report Regarding 
the Third Distribution,'' at 2 (June 2020).
    \7\ See id.; U.S. Victims of State Sponsored Terrorism Fund, 
http://www.usvsst.com/ (last accessed Mar. 15, 2021).
---------------------------------------------------------------------------

    As enacted, the Terrorism Act precluded claimants (generally 9/11 
victims, spouses, and dependents) who had received an award from the

[[Page 16212]]

September 11th Victim Compensation Fund (VCF) from receiving payments 
from the United States Victims of State Sponsored Terrorism Fund, even 
if their claims were determined eligible by the Special Master.\8\ 
Because 9/11 family members (i.e., immediate family members of 9/11 
victims who are not spouses or dependents, such as non-dependent 
parents and siblings) generally did not receive awards from the VCF, 
they were not precluded from receiving payments from the Fund if their 
claims were determined eligible. In 2019, the United States Victims of 
State Sponsored Terrorism Fund Clarification Act (Clarification Act) 
removed the language precluding 9/11-related claimants (i.e., 9/11 
victims, spouses, and dependents) who received awards from the VCF from 
receiving payments from the Fund.\9\
---------------------------------------------------------------------------

    \8\ See Public Law 114-113, div. O, tit. IV, 404, 129 Stat. 
2242, 3010-3011.
    \9\ Public Law 116-69, div. B, tit. VII, 1701, 133 Stat. 1134, 
1140-1141.
---------------------------------------------------------------------------

    Section 1705 of the Sudan Claims Resolution Act contains a 
provision for GAO to conduct an audit and publish a notice estimating 
potential lump sum catch-up payments to 9/11 victims, 9/11 spouses, and 
9/11 dependents who have eligible claims from the Fund. Specifically, 
we are publishing for comment our methodology for estimating potential 
lump-sum catch up payments in ``amounts that, after receiving the lump 
sum catch-up payments, would result in the percentage of the claims of 
9/11 victims, 9/11 spouses, and 9/11 dependents received from the Fund 
being equal to the percentage of the claims of 9/11 family members 
received from the Fund, as of the date of enactment.'' \10\ For the 
purpose of this analysis, ``9/11 family members'' are eligible 
claimants who received payments from the Fund in the first and second 
rounds of payments in 2017 and 2019, respectively; and ``9/11 victims, 
9/11 spouses, and 9/11 dependents'' are claimants who had eligible 
claims (based on eligible final judgments) prior to the Clarification 
Act, but were precluded from receiving payments from the Fund because 
they had received awards from the VCF.\11\
---------------------------------------------------------------------------

    \10\ 34 U.S.C. 20144(d)(4)(C)(i). Further, section 1705 provides 
for GAO to conduct this audit in accordance with 34 U.S.C. 
20144(d)(3)(A), which generally places limits on the amount of 
eligible claims (referred to as ``statutory caps''). For example, 
for individuals, the cap is generally $20,000,000 and for claims of 
family members when aggregated, the cap is generally $35,000,000. As 
such, we plan to utilize data from the Fund on the claim amounts 
after the application of statutory caps.
    \11\ In the context of the overall statutory scheme of the Fund, 
the population for which we are estimating ``catch-up payments'' are 
9/11 victims, spouses, and dependents who applied for payments in 
the first, second, or third round of payments from the Fund; whose 
final judgment date was prior to the close of the application period 
for the second round of payments (September 14, 2018); and who did 
not receive payments from the Fund in rounds one or two. See 34 
U.S.C. 20144(c), (d)(4)(C); U.S. Victims of State Sponsored 
Terrorism Fund, ``Special Master Report Regarding the Third 
Distribution,'' at 2 (June 2020). According to the Fund's June 2020 
congressional report, the applications of eligible claimants who 
applied in rounds one or two are carried forward into subsequent 
payment rounds.
---------------------------------------------------------------------------

    To estimate the amount(s) called for in the mandate, GAO plans to 
utilize data from the Fund on the following amounts: (1) Payments 
received by 9/11 family members in rounds one and two; (2) net eligible 
claims \12\ of 9/11 family members who received payments in rounds one 
and two; and (3) net eligible claims \13\ of 9/11 victims, spouses, and 
dependents. Using these amounts, we plan to calculate the percentage of 
9/11 family members' net eligible claims that were paid from the Fund 
in rounds one and two. We will then apply this percentage to net 
eligible claims of 9/11 victims, spouses, and dependents to generate 
the lump sum catch-up payment amount for 9/11 victims, spouses, and 
dependents, in an equal percentage.
---------------------------------------------------------------------------

    \12\ For the purposes of our analysis, ``net eligible claims'' 
refers to the monetary amount of all eligible claims after the 
application of statutory caps by the Fund, if applicable. 34 U.S.C. 
20144(d)(3)(A). In accordance with GAO standards, we will assess the 
reliability and completeness of the data from the Fund to ensure 
that it is appropriate for these purposes.
    \13\ As discussed in footnote 11 above, a 9/11 victim, 
dependent, or spouse's net eligible claim would be included if they 
applied for payments in the first, second, or third round of 
payments from the Fund; if the date of their final judgment was 
prior to the close of the application period for the second round of 
payments (September 14, 2018); and if they did not receive a payment 
from the Fund in rounds one or two.
---------------------------------------------------------------------------

    After consideration of comments from this notice, we will issue a 
second Federal Register notice, utilizing data from the Fund to report 
estimated lump sum catch-up payments based on this methodology with any 
changes we determine appropriate. We will again seek public comment on 
the second Federal Register notice.

    Authority: Pub. L. 116-260, div. FF, tit. XVII, 1705, 134 Stat. 
1182, 3293-3294 (34 U.S.C. 20144(d)(4)(C)).

Charles Michael Johnson, Jr.,
Managing Director, Homeland Security and Justice, U.S. Government 
Accountability Office.
[FR Doc. 2021-06084 Filed 3-25-21; 8:45 am]
BILLING CODE 1610-02-P