Grammatically, the phrase "September 11th Victim Compensation Fund of 2001" functions as a proper noun. It is the specific title of a U.S. federal government program established by an Act of Congress. This program was created to provide a no-fault administrative alternative to tort litigation for individuals who suffered physical harm or for the families of individuals who were killed as a direct result of the terrorist attacks of September 11, 2001. Its primary objective was to ensure victims and their families received timely and predictable compensation while simultaneously protecting the airline industry and other entities from potentially catastrophic liability that could have further destabilized the national economy.
The original fund, often referred to as VCF1, was administered by a Special Master appointed by the U.S. Attorney General. Claimants who chose to participate were required to waive their right to file lawsuits against the airlines or any other potentially responsible party. Compensation awards were calculated based on a formula that estimated the economic and non-economic losses suffered by the victim. Economic loss calculations included factors such as the victim's after-tax income, expected work-life earnings, and loss of benefits. Non-economic losses, intended to compensate for pain, suffering, and loss of companionship, were standardized. All awards were then reduced by the amount of collateral source compensation the claimant received, such as life insurance, pensions, and other benefits.
The original fund ceased operations in 2004, but the program's framework became a model for subsequent disaster compensation. Recognizing the long-latency health conditions emerging among first responders, recovery workers, and residents exposed to toxins at the attack sites, Congress passed the James Zadroga 9/11 Health and Compensation Act of 2010. This act reopened the fund (VCF2) and expanded eligibility to include individuals with certified 9/11-related physical health conditions. The program was later reauthorized and, in 2019, was made permanent, ensuring that financial aid remains available for the growing number of individuals suffering from chronic illnesses linked to their exposure during and after the attacks.
