Notice of Estimated Lump Sum Catch-Up Payments to Eligible 1983 Beirut Barracks Bombing Victims and 1996 Khobar Towers Bombing Victims and Planned Methodology; Request for Comment, 56376-56382 [2024-15016]
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Federal Register / Vol. 89, No. 131 / Tuesday, July 9, 2024 / Notices
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licenses); and, if there are multiple
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Federal Communications Commission.
Aleta Bowers,
Information Management Specialist, Office of
the Secretary.
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GOVERNMENT ACCOUNTABILITY
OFFICE
Notice of Estimated Lump Sum CatchUp Payments to Eligible 1983 Beirut
Barracks Bombing Victims and 1996
Khobar Towers Bombing Victims and
Planned Methodology; Request for
Comment
U.S. Government
Accountability Office (GAO).
ACTION: Notice of estimated lump sum
catch-up payments and planned
methodology; request for comment.
AGENCY:
GAO is now accepting
comments on proposed lump sum
catch-up payments to certain 1983
Beirut barracks bombing victims and
certain 1996 Khobar Towers bombing
victims who have submitted eligible
applications for payment to the United
States Victims of State Sponsored
Terrorism Fund. GAO is publishing this
notice pursuant to the requirements of
the Fairness for 9/11 Families Act.
Comments should be sent to the email
address below.
DATES: Interested persons are invited to
submit comments on or before August 8,
2024.
ADDRESSES: Submit comments to
FundPaymentComments@gao.gov or by
U.S. mail to Ms. Triana McNeil at 441
G Street NW, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT:
David Lutter, at 202–512–7500 or
LutterD@gao.gov, if you need additional
information. For general information,
contact GAO’s Office of Public Affairs,
202–512–4800.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
Pursuant to section 101 of the
Fairness for 9/11 Families Act (Fairness
Act), GAO is conducting a review and
publishing a notice of proposed lump
sum catch-up payments to certain 1983
Beirut barracks bombing victims 1 and
certain 1996 Khobar Towers bombing
victims 2 who have submitted eligible
1 For the purposes of this analysis and consistent
with the Fairness Act, ‘‘1983 Beirut barracks
bombing victim’’ means ‘‘a plaintiff, or estate or
successor in interest thereof, who has an eligible
claim [to the Fund] that arises out of the October
23, 1983, bombing of the United States Marine
Corps barracks in Beirut, Lebanon; and includes a
plaintiff, estate, or successor in interest [ ] who is
a judgment creditor [in] Peterson v. Islamic
Republic of Iran [ ] or a Settling Judgment Creditor
as identified in the order dated May 27, 2014, [in]
In Re 650 Fifth Avenue & Related Properties.’’ 34
U.S.C. 20144(j)(15).
2 The term ‘‘1996 Khobar Towers bombing
victim’’ means ‘‘a plaintiff, or estate or successor in
interest thereof, who has an eligible claim [to the
Fund] that arises out of the June 25, 1996 bombing
of the Khobar Tower housing complex in Saudi
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applications to the United States
Victims of State Sponsored Terrorism
Fund (Fund), on or after December 29,
2022, and by June 27, 2023.3 On
December 28, 2023, GAO published a
notice (88 FR 89693) of our
methodology for estimating certain
lump sum catch-up payments. In this
notice, we are providing a summary of
comments and our responses to
comments on the December notice, our
revised proposed methodology, and the
estimated amount needed to provide
lump sum catch-up payments to certain
1983 Beirut barracks bombing victims
and certain 1996 Khobar Towers
bombing victims who have submitted
eligible applications for payment to the
Fund, and we are accepting comments
on updates to our planned methodology.
The Fund, which is administered by
a Special Master and supported by
Department of Justice (DOJ) personnel,4
was established in 2015 by the Justice
for United States Victims of State
Sponsored Terrorism Act (Victims
Act).5 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
qualifying final judgment.6 These
judgments are issued by a United States
district court under state or federal law
against a foreign state that was
designated as a state sponsor of
terrorism at the time certain acts of
international terrorism occurred or was
so designated as a result of such acts,
Arabia; and includes a plaintiff, estate, or successor
in interest [ ] who is a judgment creditor [in]
Peterson v. Islamic Republic of Iran [ ] or a Settling
Judgment Creditor as identified in the order dated
May 27, 2014, [in] In Re 650 Fifth Avenue & Related
Properties.’’ 34 U.S.C. 20144(j)(16).
3 Public Law 117–328, div. MM, sec.
101(b)(3)(B)(iii), 136 Stat. 4459, 6108–6109
(pertinent portion codified at 34 U.S.C.
20144(d)(4)(D)). Section 101 directs us to estimate
catch-up payments for those who submitted eligible
applications to the Fund between the date of
enactment (Dec. 29, 2022), and June 27, 2023,
which is the date by which claimants must have
applied to the Fund to be considered for catch-up
payments. We refer to this time frame, Dec. 29, 2022
through June 27, 2023, as the ‘‘statutory application
time frame’’ throughout the remainder of this
notice. In general, the deadline for submitting a
claim to the Fund is not later than 90 days after
obtaining a final judgment. However, the Fairness
Act established a new application period for all
1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims awarded final
judgments before Dec. 29, 2022, providing that
these victims had 180 days from the date of
enactment of the Fairness Act (June 27, 2023) to
submit an application for payment to the Fund.
Public Law 117–328, 136 Stat. at 6106–6107
(pertinent portion codified at 34 U.S.C.
20144(c)(3)(A)(ii)).
4 See 34 U.S.C. 20144(b)(1).
5 Public Law 114–113, div. O, tit. IV, sec. 404, 129
Stat. 2242, 3007–3017 (codified as amended at 34
U.S.C. 20144).
6 34 U.S.C. 20144(c)(2).
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and arising from acts of international
terrorism.7 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 application for payment was
submitted timely.8 As of January 2023,
the Fund has allocated to eligible
claimants approximately $3.4 billion in
four payment rounds, which were
distributed in 2017, 2019, 2020, and
2023. Claimants in these four payment
rounds included 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims.9
Additionally, at the time the Fund
was established, the law allowed
plaintiffs in two identified lawsuits,
Peterson v. Islamic Republic of Iran
(Peterson) and In Re 650 Fifth Avenue
and Related Properties 10 to elect to
participate in the Fund and irrevocably
assign all rights, title, and interest in the
actions for the purposes of participating
in the Fund.11 Plaintiffs in these actions
who did not elect to participate in the
Fund were also permitted to submit an
application for conditional payment
from the Fund in which payment
amounts would be determined and set
aside, pending a final determination in
these actions.12 In the event that a final
judgment was entered in favor of the
plaintiffs in the Peterson action and
funds were distributed, the payments
allocated to claimants who applied for
a conditional payment were to be
considered void, and any funds
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7 34
U.S.C. 20144(c)(2).
8 34 U.S.C. 20144(c)(1). All decisions made by the
Special Master with regard to compensation from
the Fund are final and generally not subject to
administrative or judicial review. See 34 U.S.C.
20144(b)(3). A claimant whose claim is denied in
whole or in part by the Special Master may request
a hearing before the Special Master not later than
30 days after receipt of a written decision. Id.
20144(b)(4)(A). Not later than 90 days after any
such hearing, the Special Master must issue a final
written decision affirming or amending the original
decision, and that written decision is final and
nonreviewable. Id. 20144(b)(4)(B).
9 According to Fund data, 12 1983 Beirut barracks
bombing victims or 1996 Khobar Towers bombing
victims were eligible for Fund payment for the first
time in round 1, 141 in round 2, 423 in round 3,
and 708 in round 4. Claimants continue to receive
payment in future rounds, so the numbers of
claimants receiving payment in rounds two, three,
and four are cumulative.
10 Peterson v. Islamic Republic of Iran, No. 10
Civ. 4518 (S.D.N.Y.) and In Re 650 Fifth Avenue
and Related Properties, No. 08 Civ. 10934 (S.D.N.Y.
filed Dec. 17, 2008).
11 Public Law 114–113, 129 Stat. at 3013
(pertinent portion codified at 34 U.S.C.
20144(e)(2)(B)(iii)).
12 Public Law 114–113, 129 Stat. at 3013–3014
(pertinent portion codified at 34 U.S.C.
20144(e)(2)(B)(iv)).
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previously allocated to such conditional
payments be made available and
distributed to all other eligible
claimants.13 A final judgment in favor of
plaintiffs in Peterson was entered,
appealed to the United States Court of
Appeals for the Second Circuit, and
ultimately affirmed by the United States
Supreme Court on April 20, 2016.14
Distributions to the judgment creditor
plaintiffs in Peterson commenced on
October 19, 2016.15 Accordingly,
conditional claimants who were
judgment creditors in Peterson did not
receive award payments from the Fund,
and the Fund did not include them in
award calculations in 2017 for the first
round of payments or subsequent
payment rounds.16
The Victims Act outlines minimum
payments requirements in which any
applicant with an eligible claim who
has received, or is entitled or scheduled
to receive, any payment that is equal to,
or in excess of, 30 percent of the total
compensatory damages owed on the
applicant’s claim from any source other
than the Fund 17 shall not receive any
payment from the Fund until all other
eligible applicants generally have
received from the Fund an amount
equal to 30 percent of the compensatory
damages awarded to those applicants
pursuant to their final judgments
(referred to as the ‘‘30 percent rule’’).18
The Fairness Act amended the Victims
Act to provide that the minimum
13 Public Law 114–113, 129 Stat. at 3014
(pertinent portion codified at 34 U.S.C.
20144(e)(2)(B)(iv)(II)(bb)).
14 See Bank Markazi aka Central Bank of Iran v.
Peterson, 578 U.S. 212 (2016); U.S. Victims of State
Sponsored Terrorism Fund, ‘‘Supplemental Report
from the Special Master,’’ at 6 (August 2017).
15 U.S. Victims of State Sponsored Terrorism
Fund, ‘‘Supplemental Report from the Special
Master,’’ at 6 (August 2017).
16 Id. There were 78 conditional claimants who
were Peterson judgment creditors. Id.
17 The statute requires that as part of the
procedures to apply and establish eligibility for
payment, the Special Master must require
applicants to provide the Special Master with
information regarding compensation from any
source other than this Fund that the claimant (or,
in the case of a personal representative, the victim’s
beneficiaries) has received or is entitled or
scheduled to receive as a result of the act of
international terrorism that gave rise to a claimant’s
final judgment, including information identifying
the amount, nature, and source of such
compensation. Public Law 114–113, 129 Stat. at
3008 (pertinent portion codified at 34 U.S.C.
20144(b)(2)(B)). Those procedures require
applicants to provide information and
documentation regarding the amount, nature, and
source of any payment they received or are entitled
or scheduled to receive, and state that applicants
must update that information throughout the period
of the Fund. ‘‘Justice for United States Victims of
State Sponsored Terrorism Act,’’ 81 FR 45535,
45538 (July 14, 2016).
18 Public Law 114–113, 129 Stat. at 3011
(pertinent portion codified at 34 U.S.C.
20144(d)(3)(B)(i)).
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56377
payments requirements include the total
amount received by applicants who are
1983 Beirut barracks bombing victims or
1996 Khobar Towers bombing victims as
a result of or in connection with
Peterson or In Re 650 Fifth Avenue and
Related Properties. It further provides
that any such applicant who has
received or is entitled or scheduled to
receive 30 percent or more of such
applicant’s compensatory damages
judgment as a result of or in connection
with such proceedings shall not receive
any payment from the Fund, except as
consistent with minimum payments
requirements or as part of a lump sum
catch-up payment under section 101 of
the Fairness Act.19
Section 101 of the Fairness Act
contains a provision for GAO to conduct
an audit and publish a notice of
proposed lump sum catch-up payments
for 1983 Beirut barracks bombing
victims and 1996 Khobar Towers
bombing victims who submitted eligible
applications to the Fund during the
statutory application time frame
(December 29, 2022, and by June 27,
2023).20 This section also established a
lump sum catch-up payment reserve
fund within the Fund and appropriated
$3 billion to this reserve fund.21
We published our initial planned
methodology for comment on December
28, 2023 (88 FR 89693). We are now
publishing for comment our updated
planned methodology for estimating
lump sum catch-up payments pursuant
to section 101 of the Fairness Act for
eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers
19 Public Law 117–328, 136 Stat. at 6107
(pertinent portion codified at 34 U.S.C.
20144(d)(3)(B)(iii)).
20 Public Law 117–328, 136 Stat. at 6108
(pertinent portion codified at 34 U.S.C.
20144(d)(4)(D)(i)). As discussed in footnote 3,
section 101 directs us to estimate lump sum catchup payments for those who submitted eligible
applications to the Fund between the date of
enactment (Dec. 29, 2022) and June 27, 2023, which
is the date the application period closed for catchup payments. See Public Law 117–328, 136 Stat. at
6106–6107 (pertinent portion codified at 34 U.S.C.
20144(c)(3)(A)(ii)). GAO’s methodology for the
estimation of lump sum catch-up payments is only
for the purposes of carrying out the provisions
directed to the Comptroller General under the
Fairness Act.
21 Public Law 117–328, 136 Stat. at 6108–6109
(pertinent portion codified at 34 U.S.C.
20144(d)(4)(D)(iv)). Additionally, not earlier than 90
days and not later than 1 year after submission of
the report that is to follow this notice, the Special
Master is to authorize lump sum catch-up payments
from the reserve fund in amounts equal to those
estimated by GAO. 34 U.S.C. 20144(d)(4)(D)(iv)(II).
Not later than 1 year after the Special Master
disburses all lump sum catch-up payments from the
reserve fund the reserve fund is to terminate; all
amounts remaining in the reserve fund in excess of
proposed lump sum catch-up payments shall be
deposited into the Fund. 34 U.S.C.
20144(d)(4)(D)(iv)(IV).
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bombing victims in ‘‘amounts that, after
receiving the lump sum catch-up
payments, would result in the
percentage of the claims of such victims
received from the Fund being equal to
the percentage of the claims of non-9/11
victims of state sponsored terrorism
received from the Fund, as of December
29, 2022.’’ 22 The language used in
section 101 to describe the percentage
resulting from the receipt of lump sum
catch-up payments for 1983 Beirut
barracks bombing victims and 1996
Khobar Towers bombing victims is
equivalent to the language in the Sudan
Claims Resolution Act, which directed
us to estimate lump sum catch-up
payments to 9/11 victims, spouses, and
dependents.23 Section 101 further
provides for GAO to conduct this audit
in accordance with 34 U.S.C.
20144(d)(3)(A), which requires that
distributions be made ‘‘on a pro rata
basis, based on the amounts outstanding
and unpaid on eligible claims, until
such amounts have been paid in full or
the Fund is closed.’’ 24 Additionally, 34
U.S.C. 20144(d)(3)(A) places limits on
the amount of eligible claims (referred
22 34 U.S.C. 20144(d)(4)(D)(i). The Fairness Act
required GAO, by Dec. 28, 2023, to conduct an
audit and publish a notice in the Federal Register.
The act further required GAO to provide a 30-day
period for public comment and to submit a report
to congressional committees and the Special Master
not later than 30 days after the expiration of the
comment period. Id. 20144(d)(4)(D)(ii)–(iii). We
acknowledge that we did not meet the date
identified in the statute for submitting a report to
congressional committees and the Special Master.
We also acknowledge that the Fairness Act does not
contain a provision for GAO to publish a second
Federal Register notice on this topic. We believe
that we need to issue this notice to ensure an
accurate and transparent methodology for claimants
to receive the correct amounts of lump sum catchup payments. In response to the first Federal
Register notice, we received numerous comments
that raised disparate and considered views, and it
is critical that we fully consider and address them.
In addition, this second notice considers certain
claimant data that were not available in December
2023 when we issued the first notice to meet the
date required by the Fairness Act.
23 See Public Law 116–260, div. FF, tit. XVII, sec.
1705(b)(2), 134 Stat. 1182, 3293–3294 (pertinent
portion codified at 34 U.S.C. 20144(d)(4)(C)(i)
(‘‘[T]he Comptroller General of the United States
shall conduct an audit and publish in the Federal
Register a notice of proposed lump sum catch-up
payments to 9/11 victims, 9/11 spouses, and 9/11
dependents who have submitted applications in
accordance with subparagraph (B) 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 December 27,
2020.’’)).
24 See 34 U.S.C. 20144(d)(3)(A)(i) (requiring the
division of funds on a pro rata basis, subject to
minimum payments provisions in 34 U.S.C.
20144(d)(3)(B) and limitations in 34 U.S.C.
20144(d)(3)(A)(ii)).
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to as ‘‘individual and family statutory
caps’’).25
Summary of Comments
GAO received a total of 319 comments
by the closing date of January 29, 2024.
GAO received 310 comments from
individuals and 9 comments from law
firms representing victims of statesponsored terrorism.26 GAO received
316 comments by email; the remaining
3 comments were received in voicemails
or letters. In general, comments from
individuals were from 1983 Beirut
barracks bombing victims and 1996
Khobar Towers bombing victims, 9/11
victims and their family members, and
Members of Congress; 27 and comments
from law firms were from attorneys
representing 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims.
GAO has carefully considered all
comments received. Below is a
summary of the types of comments GAO
received and GAO’s responses.28
Equity Issues Related to U.S. Victims of
State Sponsored Terrorism Fund and
Lump Sum Catch-Up Payments
Some comments expressed concern
with certain groups of victims within
the Fund being prioritized and stated
that all victims should be treated
equally and fairly. Some commenters
also stated that since 1983 Beirut
barracks bombing victims and 1996
Khobar Towers bombing victims were
never excluded from the Fund, they
should not receive catch-up payments.
GAO Response: Section 101 of the
Fairness Act includes a provision for
GAO to conduct an audit and publish a
notice of proposed lump sum catch-up
payments for 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims who submitted
eligible applications to the Fund during
the statutory application time frame. As
25 34 U.S.C. 20144(d)(3)(A)(ii). For example, for
individuals, the cap is $20,000,000 and for claims
of non-9/11 family members when aggregated, the
cap is $35,000,000.
26 GAO counted comments received multiple
times with the same content and sender as one
comment.
27 We received a comment letter signed by three
Members of Congress. According to the comment
letter, they are members of the United States Senate
who worked on the Fairness Act and on S. 5156,
the Fairness for American Victims of StateSponsored Terrorism Act (which later became the
catch-up payment provision in the Fairness Act).
The Members of Congress provided comments
stating their views that all eligible claimants should
be referred to GAO from the Special Master, GAO
should use the Fund’s payment percentage for
purposes of lump sum catch-up payments, and
GAO should exclude offsets from claimants’ net
eligible claims.
28 Some comments fell into multiple categories
and are included in all applicable categories.
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such, GAO is carrying out the processes
directed by that provision and is not
otherwise taking a position with respect
to who should receive lump sum catchup payments.
Eligibility Criteria for a Lump Sum
Catch-Up Payment
GAO received comments regarding
the eligibility criteria for a lump sum
catch-up payment. Many of the
comments on this topic related to the
timing of applications to the Fund by
1983 Beirut barracks bombing victims
and 1996 Khobar Towers bombing
victims. Specifically, commenters raised
issues related to prior applicants to the
Fund who either withdrew their prior
applications or were already deemed
eligible claimants by the Fund, and
reapplied within the statutory
application time frame. One group of
commenters stated that applicants who
withdrew prior applications and
subsequently reapplied to the Fund
within the statutory application time
frame should be considered ineligible
for a lump sum catch-up payment,
describing them as ‘‘late filers.’’ A
second group of commenters who
submitted a comment letter stated that
claimants who applied to the Fund
previously, as conditional claimants or
otherwise, and then subsequently
applied to the Fund within the statutory
application time frame should be
eligible for a lump sum catch-up
payment. These commenters stated that
section 101 of the Fairness Act does not
prohibit successive applications or
further define the term ‘‘application’’ in
a way that would disqualify claimants
who previously applied to the Fund and
then applied subsequently within the
statutory application time frame. Some
commenters also raised concerns that
the Fund had administratively closed
claimants’ applications, or did not
permit claimants to apply under the
Fund’s procedures.29
29 According to Fund officials, the Fund
administratively closed applications submitted by
claimants previously found eligible because it
cannot and does not accept successive or duplicate
applications. See ‘‘Justice for United States Victims
of State Sponsored Terrorism Act,’’ 81 FR 45535,
45537 (July 14, 2016) (stating that ‘‘[o]nly one
application may be submitted for each claim’’). On
Feb. 7, 2023, during the statutory application time
frame, the Fund updated the frequently asked
questions section of its website, adding language
that 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims ‘‘who are not
eligible for lump sum catch-up payments under the
Fairness Act, such as USVSST Fund claimants
previously found eligible, may still be eligible for
compensation in the USVSST Fund’s other
statutory distributions.’’ U.S. Victims of State
Sponsored Terrorism Fund, Frequently Asked
Questions, https://www.usvsst.com/Home/Faq (last
accessed June 25, 2024) (Frequently Asked
Question (FAQ) 7.3 Which 1983 Beirut barracks
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GAO Response: GAO’s view is that
the provision for lump sum catch-up
payments in section 101 of the Fairness
Act does not disqualify claimants who
previously applied to the Fund and then
subsequently applied within the
statutory application time frame.30 The
Comptroller General’s mandate to
determine amounts of lump sum catchup payments does not state that
successive applications cannot be
submitted for lump sum catch-up
payments, and we do not read such a
prohibition in the related provision
regarding the deadline for application
submission.31 Accordingly, we are
updating our methodology to include all
eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers
bombing victims who submitted an
application to the Fund within the
statutory application time frame,
including those who submitted
successive applications to the Fund.32
bombing victims and 1996 Khobar Towers bombing
victims are included in the Fairness Act’s lump
sum catch-up payment provision and how do these
victims file a claim with the USVSST Fund?).
Further, on July 28, 2023, the Fund updated FAQ
7.1 What are lump sum catch-up payments? and
FAQ 7.3 to add language stating that ‘‘[e]ach
claimant has one claim before the USVSST Fund for
all compensation, including lump sum catch-up
payments. The USVSST Fund cannot accept
duplicative filings.’’ According to Fund officials,
claimants may have refrained from filing an
application after contacting the Fund or reviewing
the application procedures based on the advice
received from their counsel or the Fund. For good
cause shown, the Special Master may grant a
claimant a reasonable extension of the section
20144(c)(3)(A)(ii)(II) deadline. 34 U.S.C.
20144(c)(3)(B) (applying to deadlines under (c)(3),
as enacted by the Victims Act, Public Law 114–113,
129 Stat. at 3010).
30 GAO’s view is for purposes of implementing
the Comptroller General’s responsibilities under 34
U.S.C. 20144(d)(4)(D)(i)–(iii) to conduct an audit
and calculate amounts for the Special Master to
allocate lump sum catch-up payments.
31 See 34 U.S.C. 20144(c)(3)(A)(ii)(II); 34 U.S.C.
20144(d)(4)(D)(i) (conditioning eligibility for lump
sum catch-up payments on those individuals filing
applications for payment between Dec. 29, 2022,
and June 27, 2023). Interpreting the statute in this
way also aligns with another provision of the
Fairness Act, related to litigation involving certain
1983 Beirut barracks bombing victims and 1996
Khobar Towers victims. See Public Law 117–328,
136 Stat. at 6109 (pertinent portion codified at 34
U.S.C. 20144(e)(2)(B)(v) (providing that statutory
provisions regarding elections by plaintiffs in
Peterson v. Islamic Republic of Iran and In Re 650
Fifth Avenue and Related Properties shall not apply
with respect to 1983 Beirut barracks bombing
victims and 1996 Khobar Towers victims who
submit an application during the statutory
application time frame)).
32 This includes claimants who, within the
statutory application time frame, submitted
applications to the Fund, including those who
submitted a letter to the Fund expressing the
claimants’ intent to apply for lump sum catch-up
payments, regardless of a previous determination of
eligibility by the Fund or administrative closure of
their applications. As discussed in further detail
below, this comprises 512 claimants (which
includes 78 conditional claimants who were
Peterson judgment creditors).
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In accordance with section 101 of the
Fairness Act, we will not include
claimants who did not have a final
judgment awarded as of the date of
enactment of the Fairness Act and will
not include claimants who did not
submit an application to the Fund
within the statutory application time
frame.33
Support for GAO’s Percentage
Calculation Methodology
Comments received expressed
support for GAO’s percentage
calculation methodology as described in
our December 28, 2023, notice (88 FR
89693). These commenters noted that
the methodology we outlined was the
same formula used to calculate the 9/11
lump sum catch-up payments, and also
noted that since the relevant statutory
language for that calculation and this
calculation are identical, they find this
approach appropriate. These
commenters also generally stated that
employing a different formula or
methodology would potentially give
prioritization or preferential treatment
to one group of victims over another.
GAO’s Response: We agree that the
language used in section 101 of the
Fairness Act to describe the percentage
that we are to calculate to estimate lump
sum catch-up payments for 1983 Beirut
barracks bombing victims and 1996
Khobar Towers bombing victims is
equivalent to the language in the Sudan
Claims Resolution Act, which directed
us to estimate lump sum catch-up
payments to 9/11 victims, spouses, and
dependents.34 Thus, we plan to use the
33 Section 101 of the Fairness Act requires that
applications be submitted on or after Dec. 29, 2022,
and by June 27, 2023. In contrast, the Sudan Claims
Resolution Act provided 9/11 victims, spouses, and
dependents 90 days from the date of enactment to
submit an application for a payment. Public Law
116–260, 134 Stat. at 3293–3294 (pertinent portion
codified at 34 U.S.C. 20144(d)(4)(C)(i)). Therefore,
GAO could calculate lump sum catch-up payments
for 9/11 victims, spouses, and dependents who
submitted applications to the Fund prior to the date
of enactment of the Sudan Claims Resolution Act,
while GAO cannot calculate lump sum catch-up
payments to 1983 Beirut barracks bombing victims
and 1996 Khobar Towers bombing victims unless
they have submitted an application during the 180day period from the date of enactment of the
Fairness Act.
34 Compare 34 U.S.C. 20144(d)(4)(D)(i) (‘‘in
amounts that, after receiving the lump sum catchup payments, would result in the percentage of the
claims of such victims received from the Fund
being equal to the percentage of the claims of non9/11 victims of state sponsored terrorism received
from the Fund, as of December 29, 2022’’), with 34
U.S.C. 20144(d)(4)(C)(i) (‘‘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 December 27, 2020.’’).
The Fairness Act directed the Special Master to
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56379
same methodology that we used to
calculate ‘‘GAO’s percentage
calculation’’ for the 9/11 lump sum
catch-up payments for this population.
Request To Use the Fund’s Payment
Percentage
GAO received comments about the
use of the Fund’s payment percentage
for our estimation of lump sum catchup payments. For example, commenters
suggested that GAO add the payment
percentages calculated by the Fund in
the first through fourth rounds to
determine the percentage needed for
catch-up payments.35
GAO’s Response: Section 101 of the
Fairness Act calls for GAO to estimate
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 such
victims received from the Fund being
equal to the percentage of the claims of
non-9/11 victims of state sponsored
terrorism received from the Fund, as of
December 29, 2022.’’ 36 Consistent with
our approach pursuant to equivalent
language in the Sudan Claims
Resolution Act and outlined in a prior
notice (86 FR 31312, June 11, 2021) and
report,37 GAO estimated the amount
needed to provide lump sum catch-up
payments to 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims who submitted
authorize lump sum catch-up payments to 9/11
victims, spouses, and dependents in amounts equal
to those previously estimated by GAO and
appropriated funds for that purpose. Public Law
117–328, 136 Stat. at 6107; GAO, U.S. Victims of
State Sponsored Terrorism Fund: Estimated Lump
Sum Catch-Up Payments, GAO–21–105306 (Aug.
11, 2021).
35 The Fund’s ‘‘payment percentage’’ is the
amount of funds available to pay all eligible
claimants in a given round divided by
compensatory damages after accounting for the
individual and family statutory caps, compensation
from other sources, and prior payments from the
Fund. The payment percentage for the initial round
of payments was 13.6561 percent (generally
rounded to 13.66 percent in USVSST Fund
communications). The payment percentage for the
second round of payments was 4.1955 percent
(rounded to 4.2 percent in USVSST Fund
communications). The payment percentage for non9/11-related claimants in the third round of
payments was 5.8385 percent (rounded to 5.84
percent in USVSST Fund communications). The
non-9/11-related payment percentage for the fourth
round was 0.4047 percent (rounded to 0.4 percent
in USVSST Fund communications). The payment
percentage total for all four rounds is 24.0948
percent, rounded here to 24 percent. See U.S.
Victims of State Sponsored Terrorism Fund,
‘‘Payment Calculation Explanation for Non-9/11Related Claims,’’ at 5 (December 2022).
36 34 U.S.C. 20144(d)(4)(D)(i).
37 GAO, U.S. Victims of State Sponsored
Terrorism Fund: Estimated Lump Sum Catch-Up
Payments, GAO–21–105306 (Aug. 11, 2021) (see
Enclosure II for further discussion of the Fund’s
payment percentage and GAO’s percentage
calculation).
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potentially eligible applications within
the statutory application time frame in
an equal percentage to that of the
payments that have been made to non9/11 claimants in the Fund’s first three
payment rounds.38
We note that there are key differences
in how the Fund calculated its payment
percentage and how GAO calculated the
percentage of lump sum catch-up
payments for 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims. In particular,
the Fund and GAO calculated
percentages in different ways to fulfill
distinct purposes. The Fund’s mission
in each payment round is to distribute
the available money in the Fund—a
known amount—among Fund
claimants. Section 101 of the Fairness
Act, however, directs GAO to estimate
the amount of money that is needed to
catch up eligible 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims in an equal
percentage to that of the payments that
have been made to non-9/11 claimants
in the Fund’s first three payment
rounds.39
Offsetting Eligible Claims With
Compensation From Other Sources for
Lump Sum Catch-Up Payments
GAO received comments regarding
our planned approach of estimating two
amounts in this notice: (1) the total
amount needed to provide lump sum
catch-up payments to potentially
eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers
bombing victims based on these victims’
net eligible claims; and (2) the total
amount needed to provide lump sum
catch-up payments to potentially
eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers
bombing victims based on these victims’
net eligible claims offset by
compensation from other sources. Some
commenters advocated for the final
lump sum catch-up payment estimates
provided by GAO to be offset by
compensation from other sources for
this population. These commenters
stated that the statute governing the
Fund and section 101 of the Fairness
Act support an approach that is based
on an individual’s unpaid compensatory
damages claim, which is an applicant’s
claim value after moneys received from
sources other than the Fund are
deducted. These commenters also noted
that certain 1983 Beirut barracks
38 We did not include the Fund’s fourth payment
round because, according to the Fund, it did not
begin issuing fourth-round payments until Jan. 4,
2023, after the Fairness Act was enacted.
39 See our methodology section below for more
details of the calculation of the GAO percentage.
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bombing victims and 1996 Khobar
Towers bombing victims have received
compensation from other sources that
are to be offset by the Fund pursuant to
the statute governing the Fund.40
In contrast, other commenters
advocated for the final lump sum catchup payment estimates provided by GAO
to not be offset by compensation from
other sources for this population. These
commenters stated that section 101 of
the Fairness Act’s use of the phrase
‘‘received from the Fund’’ should be
read to modify the employment of 34
U.S.C. 20144(d)(3)(A) such that claims
should not be offset other than from
amounts received from the Fund. These
commenters acknowledged 34 U.S.C.
20144(d)(3)(A)(i) provides that
payments should be ‘‘based on the
amounts outstanding and unpaid on
eligible claims,’’ but stated that this
language does not apply to catch-up
payments because the focus of the
directive to GAO is on amounts received
from the Fund. They further stated that
the exemption for eligible 1983 Beirut
barracks bombing victims and 1996
Khobar Towers bombing victims from
the 30 percent rule for the purposes of
receiving a lump sum catch-up payment
indicates congressional intent that, for
the purposes of these catch-up
payments, the normal Fund rules
offsetting payments should not apply.
Some commenters also raised
concerns about GAO’s planned
approach of estimating two amounts
and that GAO should provide only one
estimated amount.
GAO’s Response: Section 101 of the
Fairness Act requires GAO to conduct
this audit ‘‘in accordance with clauses
(i) and (ii) of [34 U.S.C.
20144(d)(3)(A)].’’ Consistent with our
prior lump sum catch-up payment
calculation for 9/11 victims, spouses,
and dependents, and in accordance with
clause (ii) of 34 U.S.C. 20144(d)(3)(A),
we plan to estimate lump sum catch-up
payments for this population using their
‘‘net eligible claims,’’ 41 that is, the
amount of their claims after the
application of individual and family
statutory caps.42
40 See 34 U.S.C. 20144(d)(3)(A)(i). These
commenters stated that while the Fairness Act
explicitly exempts 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims
from the 30 percent rule for the purposes of
receiving a lump sum catch-up payment, the statute
governing the Fund still requires that their total
compensatory damages be offset of the moneys they
have already received or are scheduled to receive.
41 For the purposes of our analysis, ‘‘net eligible
claims’’ refers to the monetary amount of all eligible
claims after the application of individual and
family statutory caps. 34 U.S.C. 20144(d)(3)(A)(ii).
42 34 U.S.C. 20144(d)(3)(A)(ii). For example, for
individuals, the cap is $20,000,000 and for claims
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Section 101 also requires us to
conduct our work in accordance with
clause (i) of 34 U.S.C. 20144(d)(3)(A),
which requires that payments be made
‘‘based on the amounts outstanding and
unpaid on eligible claims.’’ In order to
give effect to this provision,
compensatory damages from other
sources received by the claimant under
their final judgment must be subtracted
to produce the amount ‘‘outstanding
and unpaid’’ on their claims. In our
prior work, we did not offset eligible 9/
11 victims, spouses, and dependents’
net eligible claims with compensation
from other sources because that
population did not have qualifying
compensation from other sources.43
Since certain 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims do have
qualifying compensation from other
sources, our reading of section 101’s
directive for us to conduct our work in
accordance with clause (i) of 34 U.S.C.
20144(d)(3)(A) requires us to offset their
net eligible claims by the amounts paid
on eligible claims in the final lump sum
catch-up payment estimates provided in
our report.44
In light of the language of clause (i) of
34 U.S.C. 20144(d)(3)(A), the comments
of non-9/11 family members when aggregated, the
cap is $35,000,000.
43 See 34 U.S.C. 20144(d)(3)(A)(i)(III), (d)(3)(B).
44 This provision is different than the minimum
payments provisions in 34 U.S.C. 20144(d)(3)(B),
under which any applicant with an eligible claim
who has received, or is entitled or scheduled to
receive, any payment that is equal to, or in excess
of, 30 percent of the total compensatory damages
owed to such applicant on the applicant’s claim
from any source other than the Fund shall not
receive any payment from the Fund until such time
as all other eligible applicants have received from
the Fund an amount equal to 30 percent of the
covered compensatory damages awarded to those
applicants. See 34 U.S.C. 20144(d)(3)(A)(i) (‘‘Except
as provided in subparagraph (B) [minimum
payments provisions] and subject to the limitations
described in clause (ii) [individual and family
statutory caps], the Special Master shall carry out
paragraph (1), by . . . further dividing the funds
allocated to non-9/11 related victims of state
sponsored terrorism on a pro rata basis, based on
the amounts outstanding and unpaid on eligible
claims, until such amounts have been paid in full
or the Fund is closed.’’). The Fairness Act added a
new provision, codified at 34 U.S.C.
20144(d)(3)(B)(iii), stating that compensatory
damages received or entitled or scheduled to be
received by an applicant who is a 1983 Beirut
barracks bombing victim or a 1996 Khobar Towers
bombing victim as a result of or in connection with
Peterson or In Re 650 Fifth Avenue and Related
Properties are excepted for purposes of lump sum
catch-up payments. In using the term ‘‘offsets,’’ we
refer to compensation from sources other than the
Fund for the purposes of applying clause (i) of 34
U.S.C. 20144(d)(3)(A) and the minimum payments
provisions. GAO’s view is for purposes of
implementing the Comptroller General’s
responsibilities under 34 U.S.C. 20144(d)(4)(D)(i)–
(iii) to conduct an audit and calculate amounts for
the Special Master to allocate lump sum catch-up
payments.
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we received on this issue, and concerns
by some commenters about our
approach of providing two amounts, we
will provide in this notice one estimate:
the total amount needed to provide
lump sum catch-up payments to
potentially eligible 1983 Beirut barracks
bombing victims and 1996 Khobar
Towers bombing victims based on these
victims’ net eligible claims offset by
compensation from other sources.
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Methodology To Produce Estimates for
Lump Sum Catch-Up Payments
To estimate the amount(s) called for
in section 101, GAO used the following
data from the Fund: (1) payments from
the Fund received by non-9/11
claimants in the first through third
payment rounds; 45 (2) net eligible
claims 46 of these non-9/11 claimants;
(3) compensation from other sources
received by these non-9/11 claimants; 47
(4) net eligible claims 48 of the 1983
45 As discussed in footnote 9, this includes some
1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims who were eligible
for payment from the Fund in prior rounds. We did
not include in this group 1983 Beirut barracks
bombing victims and 1996 Khobar Towers bombing
victims who did not receive any payment in the
first through third payment rounds. We used this
information to help us identify the percentage of
claims of non-9/11 victims of state sponsored
terrorism received from the Fund, as of the Fairness
Act’s enactment date (Dec. 29, 2022). See 34 U.S.C.
20144(d)(4)(D)(i). Given this reference to the act’s
enactment date, we omitted fourth-round payments
from the calculation of the payment percentage
because non-9/11 victims of state sponsored
terrorism received them after that date. The Fund
notified eligible claimants of their fourth-round
payment amounts on Dec. 30, 2022, and began
issuing the fourth-round payments on a rolling
basis on Jan. 4, 2023, after the Fairness Act was
enacted. U.S. Victims of State Sponsored Terrorism
Fund, ‘‘Special Master’s Report Regarding the
Fourth Distribution,’’ at 3 (January 2023).
46 For the purposes of our analysis, ‘‘net eligible
claims’’ refers to the monetary amount of all eligible
claims after the application of individual and
family statutory caps by the Fund, if applicable. 34
U.S.C. 20144(d)(3)(A)(ii).
47 Not all compensation from other sources is
necessarily offset against claimants’ net eligible
claims. When referring to ‘‘compensation from
other sources’’ for purposes of our methodology and
estimates, we are referring to compensation from
other sources that the Fund would offset from its
awards under its calculation methodology, which
the Fund provided to GAO.
48 As of March 2024, data from the Fund on the
claim amounts after the application of individual
and family statutory caps (‘‘net eligible claims’’) for
1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims who are
potentially eligible for lump sum catch-up
payments were not available for new applicants to
the Fund. This is because these new claimants have
not been included in a payment distribution that
would require the application of individual and
family statutory caps by the Fund. GAO used Fund
methodology to apply the individual and family
statutory caps to these claims. See U.S. Victims of
State Sponsored Terrorism Fund, Payment
Calculation Explanation for Non-9/11-Related
Claims at 2–3 (December 2022). Before applying the
$35 million family statutory cap, we first treated
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Beirut barracks bombing victims and
1996 Khobar Towers bombing victims
who submitted eligible applications to
the Fund within the statutory
application time frame (between
December 29, 2022, and June 27,
2023); 49 and (5) compensation from
other sources received by the 1983
Beirut barracks bombing victims and
1996 Khobar Towers bombing victims
who submitted eligible applications to
the Fund within the statutory
application time frame.50
any individual claim that exceeded the $20 million
individual statutory cap as $20 million. For
purposes of the $35 million family statutory cap,
GAO summed individual claims for those claims
that indicated a family relationship in the data by
a family identification number. Once summed, if
claims within a family identification number
exceeded the $35 million family statutory cap, we
then allocated the $35 million family statutory cap
among the family members in proportion to their
individual claims. We provided our analysis to the
Fund for review and they confirmed that based on
their review our approach appeared consistent with
their methodology. While this analysis enabled us
to determine the ‘‘net eligible claims’’ for the
purposes of estimating lump sum catch-up
payments for our population, we recognize that the
Fund may receive additional information or data in
the future that might impact these amounts if these
claimants are included in a future payment
distribution.
49 We received data from the Fund as of May 2024
for 1,778 claimants for the 1983 Beirut barracks
bombing and 308 claimants for the 1996 Khobar
Towers bombing who submitted eligible
applications to the Fund and applied in the
statutory application time frame. Of those, 512 had
received a prior eligibility determination from the
Fund and 1,559 were new applicants. We also
received data on 14 victims of these attacks who
submitted applications during the statutory
application time frame whose eligibility is still
being determined by the Fund as of June 2024.
Because eligibility for some of these victims is still
being determined, we refer to the group as a whole
as ‘‘potentially eligible’’ for catch-up payments.
These applications are pending because the Fund
is awaiting additional documentation from these
individuals that is needed to determine their
claims’ eligibility. We encourage applicants with
pending applications to provide requested
documentation to the Fund that is needed to
determine their claims’ eligibility. For purposes of
estimating lump sum catch-up payments in this
notice, we are including all of the potentially
eligible claims. However, in our final report, to be
issued no later than 30 days following the close of
the comment period, we will only include the total
amount needed to provide lump sum catch-up
payments to 1983 Beirut barracks bombing victims
and 1986 Khobar Towers bombing victims who
submitted claims that the Fund has deemed
eligible.
50 We obtained from the Fund information on
compensation from other sources as of March 2024
for claimants who have eligibility for regular
distributions from the Fund. Fund officials
confirmed that, based on information included in
these applications, all applicants who reported
compensation from other sources are Peterson
judgment creditors whose offsets are the amounts
recovered in Peterson. After GAO informed the
Fund that it would include claimants who
previously had eligibility determinations made by
the Fund in its estimated lump sum catch-up
payment calculations, on May 31, 2024, the Fund
provided the remaining offset information that the
78 conditional claimants who were Peterson
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56381
To carry out our mandate under
section 101 of the Fairness Act, using
data from the Fund described above, we
estimated the amount of payments that
non-9/11 claimants received in the first
three rounds of Fund payments, as a
percentage of their net eligible claims
offset by compensation from other
sources.51 We first determined the
payment amounts received by non-9/11
claimants from the Fund in the first
through third payment rounds.52 We
then summed the payments for the three
payment rounds across all non-9/11
claimants. Next, we determined the net
eligible claims of the non-9/11
claimants as of the third round that they
received a payment, offset by
compensation from other sources, and
summed across all claimants. We
divided the amount of payments by the
net eligible claims offset by
compensation from other sources to
determine the percentage called for in
our mandate of 16.0353 percent (GAO’s
percentage calculation).53
Estimates for Lump Sum Catch-Up
Payments
Using GAO’s percentage calculation,
we estimated the total amount needed to
provide lump sum catch-up payments to
the 2,086 potentially eligible 1983
judgment creditors included in their applications
for lump sum catch-up payments, for purposes of
our audit and calculations. In order to apply the
minimum payments provisions in 34 U.S.C.
20144(d)(3)(B), before issuing our final report, we
will need to confirm the source of the offsets for
these 78 conditional claimants. The Fund does not
use information contained in duplicate applications
administratively closed by the Fund for Fund
purposes, according to the Fund officials.
51 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.
52 The non-9/11 claimants included 1983 Beirut
barracks bombing victims and 1996 Khobar Towers
bombing victims who received payments from the
Fund. See 34 U.S.C. 20144(j)(9). In applying this
standard, we excluded three types of claims: (1)
those where the victim received no payments
because they were conditional claimants; (2) those
where the victim never received payment in any of
the first through third rounds of distribution
because compensation from other sources (offsets)
exceeded 30 percent of the compensatory damages
(before applying the individual and family statutory
caps); and (3) those where the offsets exceeded the
percentage of compensatory damages awarded to
other eligible applicants in each of the first through
third rounds of distribution for which these claims
were eligible. See id. 20144(d)(4)(D)(i).
53 We reported 4.6122 percent in the first notice.
The percentage changed due to a data programming
error that occurred in our initial estimate and has
now been corrected. Specifically, the net eligible
claims were inadvertently included in the initial
round that the payment was received as well as in
the subsequent rounds, resulting in a larger
summed net eligible claims and a lower calculated
percentage. Furthermore, the calculation included
the fourth payment round which, as indicated in
footnote 35, had a very low payment percentage
among the four rounds.
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Beirut barracks bombing victims and
1996 Khobar Towers bombing victims
based on these victims’ net eligible
claims offset by compensation from
other sources.54 In the data provided,
1,495 of the potentially eligible 1983
Beirut barracks bombing victims and
1996 Khobar Towers bombing victims
reported compensation from other
sources of some non-zero amount, such
as court-awarded compensation.55 To
identify a claimant’s lump sum catch-up
payment, the calculated GAO
percentage will be applied to the
claimant’s net eligible claims offset by
compensation from other sources. Then,
to identify a net lump sum catch-up
payment, we will subtract any amount
of money a claimant had previously
received from the Fund.56 Our
calculation produced $614,988,012.55,
the total amount needed to provide
lump sum catch-up payments for Beirut
barracks and Khobar Towers bombing
victims who submitted eligible
applications to the Fund within the
statutory application time frame.57
After consideration of the comments
from this notice, we will issue a report
using data from the Fund to report
estimated lump sum catch-up payments
based on this methodology with any
changes we determine appropriate. We
invite comments on all aspects of the
planned methodology and lump sum
catch-up payments proposed in this
notice. Our final report will be available
on gao.gov.
Authority: Pub. L. 117–328, div. MM,
sec. 101(b)(3)(B)(iii), 136 Stat. 4459,
54 In our prior work, we did not offset eligible 9/
11 victims, spouses, and dependents’ net eligible
claims with compensation from other sources
because this population did not have qualifying
compensation from other sources. Although some
9/11 claimants may have received awards from the
September 11th Victim Compensation Fund (VCF),
money received from the VCF is not considered an
offset for the Fund’s award calculations. See U.S.
Victims of State Sponsored Terrorism Fund,
Frequently Asked Questions, https://
www.usvsst.com/Home/Faq (last accessed June 18,
2024) (see 4.8 What is a source of compensation
other than the USVSST Fund?).
55 The Fund provided information about
compensation from other sources for all potentially
eligible 1983 Beirut barracks bombing victims and
1996 Khobar Towers bombing victims. According to
Fund data, the reported compensation from other
sources for some of these potentially eligible
claimants was $0. For potentially eligible claimants
who received compensation from other sources of
some non-zero amount, that compensation ranged
from approximately $65,000 to approximately $5
million.
56 The payments previously received from the
Fund will include all the payment rounds—first
through fourth rounds—as applicable.
57 The net lump sum catch-up payment is the
difference between the calculated lump sum catchup and the compensation already received from the
Fund (it would be zero if the compensation already
received from the Fund is equal to or exceeds the
calculated lump sum catch-up).
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6108–6109 (pertinent portion codified at
34 U.S.C. 20144(d)(4)(D)).
Triana McNeil,
Director, Homeland Security and Justice, U.S.
Government Accountability Office.
[FR Doc. 2024–15016 Filed 7–8–24; 8:45 am]
BILLING CODE 1610–02–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
[Document Identifiers: CMS–855B]
Agency Information Collection
Activities: Proposed Collection;
Comment Request
Centers for Medicare &
Medicaid Services, Health and Human
Services (HHS).
ACTION: Notice.
AGENCY:
The Centers for Medicare &
Medicaid Services (CMS) is announcing
an opportunity for the public to
comment on CMS’ intention to collect
information from the public. Under the
Paperwork Reduction Act of 1995
(PRA), Federal agencies are required to
publish notice in the Federal Register
concerning each proposed collection of
information (including each proposed
extension or reinstatement of an existing
collection of information) and to allow
60 days for public comment on the
proposed action. Interested persons are
invited to send comments regarding our
burden estimates or any other aspect of
this collection of information, including
the necessity and utility of the proposed
information collection for the proper
performance of the agency’s functions,
the accuracy of the estimated burden,
ways to enhance the quality, utility, and
clarity of the information to be
collected, and the use of automated
collection techniques or other forms of
information technology to minimize the
information collection burden.
DATES: Comments must be received by
September 9, 2024.
ADDRESSES: When commenting, please
reference the document identifier or
OMB control number. To be assured
consideration, comments and
recommendations must be submitted in
any one of the following ways:
1. Electronically. You may send your
comments electronically to https://
www.regulations.gov. Follow the
instructions for ‘‘Comment or
Submission’’ or ‘‘More Search Options’’
to find the information collection
document(s) that are accepting
comments.
SUMMARY:
PO 00000
Frm 00107
Fmt 4703
Sfmt 4703
2. By regular mail. You may mail
written comments to the following
address: CMS, Office of Strategic
Operations and Regulatory Affairs,
Division of Regulations Development,
Attention: Document Identifier/OMB
Control Number: ll, Room C4–26–05,
7500 Security Boulevard, Baltimore,
Maryland 21244–1850.
To obtain copies of a supporting
statement and any related forms for the
proposed collection(s) summarized in
this notice, please access the CMS PRA
website by copying and pasting the
following web address into your web
browser: https://www.cms.gov/
Regulations-and-Guidance/Legislation/
PaperworkReductionActof1995/PRAListing.
FOR FURTHER INFORMATION CONTACT:
William N. Parham at (410) 786–4669.
SUPPLEMENTARY INFORMATION:
Contents
This notice sets out a summary of the
use and burden associated with the
following information collections. More
detailed information can be found in
each collection’s supporting statement
and associated materials (see
ADDRESSES).
CMS–855B Medicare Enrollment
Application for Clinics/Group
Practices and Other Suppliers
Under the PRA (44 U.S.C. 3501–
3520), Federal agencies must obtain
approval from the Office of Management
and Budget (OMB) for each collection of
information they conduct or sponsor.
The term ‘‘collection of information’’ is
defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes agency requests
or requirements that members of the
public submit reports, keep records, or
provide information to a third party.
Section 3506(c)(2)(A) of the PRA
requires Federal agencies to publish a
60-day notice in the Federal Register
concerning each proposed collection of
information, including each proposed
extension or reinstatement of an existing
collection of information, before
submitting the collection to OMB for
approval. To comply with this
requirement, CMS is publishing this
notice.
Information Collections
1. Type of Information Collection
Request: Reinstatement with change of a
previously approved collection; Title of
Information Collection: Medicare
Enrollment Application for Clinics/
Group Practices and Other Suppliers;
Use: Various sections of the Act, the
United States Code (U.S.C.), Internal
Revenue Service (IRS) Code, and the
CFR require providers and suppliers to
E:\FR\FM\09JYN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 131 (Tuesday, July 9, 2024)]
[Notices]
[Pages 56376-56382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15016]
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GOVERNMENT ACCOUNTABILITY OFFICE
Notice of Estimated Lump Sum Catch-Up Payments to Eligible 1983
Beirut Barracks Bombing Victims and 1996 Khobar Towers Bombing Victims
and Planned Methodology; Request for Comment
AGENCY: U.S. Government Accountability Office (GAO).
ACTION: Notice of estimated lump sum catch-up payments and planned
methodology; request for comment.
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SUMMARY: GAO is now accepting comments on proposed lump sum catch-up
payments to certain 1983 Beirut barracks bombing victims and certain
1996 Khobar Towers bombing victims who have submitted eligible
applications for payment to the United States Victims of State
Sponsored Terrorism Fund. GAO is publishing this notice pursuant to the
requirements of the Fairness for 9/11 Families Act. Comments should be
sent to the email address below.
DATES: Interested persons are invited to submit comments on or before
August 8, 2024.
ADDRESSES: Submit comments to gao.gov">FundPaymentComments@gao.gov or by U.S.
mail to Ms. Triana McNeil at 441 G Street NW, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT: David Lutter, at 202-512-7500 or
gao.gov">LutterD@gao.gov, if you need additional information. For general
information, contact GAO's Office of Public Affairs, 202-512-4800.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to section 101 of the Fairness for 9/11 Families Act
(Fairness Act), GAO is conducting a review and publishing a notice of
proposed lump sum catch-up payments to certain 1983 Beirut barracks
bombing victims \1\ and certain 1996 Khobar Towers bombing victims \2\
who have submitted eligible applications to the United States Victims
of State Sponsored Terrorism Fund (Fund), on or after December 29,
2022, and by June 27, 2023.\3\ On December 28, 2023, GAO published a
notice (88 FR 89693) of our methodology for estimating certain lump sum
catch-up payments. In this notice, we are providing a summary of
comments and our responses to comments on the December notice, our
revised proposed methodology, and the estimated amount needed to
provide lump sum catch-up payments to certain 1983 Beirut barracks
bombing victims and certain 1996 Khobar Towers bombing victims who have
submitted eligible applications for payment to the Fund, and we are
accepting comments on updates to our planned methodology.
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\1\ For the purposes of this analysis and consistent with the
Fairness Act, ``1983 Beirut barracks bombing victim'' means ``a
plaintiff, or estate or successor in interest thereof, who has an
eligible claim [to the Fund] that arises out of the October 23,
1983, bombing of the United States Marine Corps barracks in Beirut,
Lebanon; and includes a plaintiff, estate, or successor in interest
[ ] who is a judgment creditor [in] Peterson v. Islamic Republic of
Iran [ ] or a Settling Judgment Creditor as identified in the order
dated May 27, 2014, [in] In Re 650 Fifth Avenue & Related
Properties.'' 34 U.S.C. 20144(j)(15).
\2\ The term ``1996 Khobar Towers bombing victim'' means ``a
plaintiff, or estate or successor in interest thereof, who has an
eligible claim [to the Fund] that arises out of the June 25, 1996
bombing of the Khobar Tower housing complex in Saudi Arabia; and
includes a plaintiff, estate, or successor in interest [ ] who is a
judgment creditor [in] Peterson v. Islamic Republic of Iran [ ] or a
Settling Judgment Creditor as identified in the order dated May 27,
2014, [in] In Re 650 Fifth Avenue & Related Properties.'' 34 U.S.C.
20144(j)(16).
\3\ Public Law 117-328, div. MM, sec. 101(b)(3)(B)(iii), 136
Stat. 4459, 6108-6109 (pertinent portion codified at 34 U.S.C.
20144(d)(4)(D)). Section 101 directs us to estimate catch-up
payments for those who submitted eligible applications to the Fund
between the date of enactment (Dec. 29, 2022), and June 27, 2023,
which is the date by which claimants must have applied to the Fund
to be considered for catch-up payments. We refer to this time frame,
Dec. 29, 2022 through June 27, 2023, as the ``statutory application
time frame'' throughout the remainder of this notice. In general,
the deadline for submitting a claim to the Fund is not later than 90
days after obtaining a final judgment. However, the Fairness Act
established a new application period for all 1983 Beirut barracks
bombing victims and 1996 Khobar Towers bombing victims awarded final
judgments before Dec. 29, 2022, providing that these victims had 180
days from the date of enactment of the Fairness Act (June 27, 2023)
to submit an application for payment to the Fund. Public Law 117-
328, 136 Stat. at 6106-6107 (pertinent portion codified at 34 U.S.C.
20144(c)(3)(A)(ii)).
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The Fund, which is administered by a Special Master and supported
by Department of Justice (DOJ) personnel,\4\ was established in 2015 by
the Justice for United States Victims of State Sponsored Terrorism Act
(Victims Act).\5\ 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 qualifying final judgment.\6\ These judgments
are issued by a United States district court under state or federal law
against a foreign state that was designated as a state sponsor of
terrorism at the time certain acts of international terrorism occurred
or was so designated as a result of such acts,
[[Page 56377]]
and arising from acts of international terrorism.\7\ 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 application for payment was
submitted timely.\8\ As of January 2023, the Fund has allocated to
eligible claimants approximately $3.4 billion in four payment rounds,
which were distributed in 2017, 2019, 2020, and 2023. Claimants in
these four payment rounds included 1983 Beirut barracks bombing victims
and 1996 Khobar Towers bombing victims.\9\
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\4\ See 34 U.S.C. 20144(b)(1).
\5\ Public Law 114-113, div. O, tit. IV, sec. 404, 129 Stat.
2242, 3007-3017 (codified as amended at 34 U.S.C. 20144).
\6\ 34 U.S.C. 20144(c)(2).
\7\ 34 U.S.C. 20144(c)(2).
\8\ 34 U.S.C. 20144(c)(1). All decisions made by the Special
Master with regard to compensation from the Fund are final and
generally not subject to administrative or judicial review. See 34
U.S.C. 20144(b)(3). A claimant whose claim is denied in whole or in
part by the Special Master may request a hearing before the Special
Master not later than 30 days after receipt of a written decision.
Id. 20144(b)(4)(A). Not later than 90 days after any such hearing,
the Special Master must issue a final written decision affirming or
amending the original decision, and that written decision is final
and nonreviewable. Id. 20144(b)(4)(B).
\9\ According to Fund data, 12 1983 Beirut barracks bombing
victims or 1996 Khobar Towers bombing victims were eligible for Fund
payment for the first time in round 1, 141 in round 2, 423 in round
3, and 708 in round 4. Claimants continue to receive payment in
future rounds, so the numbers of claimants receiving payment in
rounds two, three, and four are cumulative.
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Additionally, at the time the Fund was established, the law allowed
plaintiffs in two identified lawsuits, Peterson v. Islamic Republic of
Iran (Peterson) and In Re 650 Fifth Avenue and Related Properties \10\
to elect to participate in the Fund and irrevocably assign all rights,
title, and interest in the actions for the purposes of participating in
the Fund.\11\ Plaintiffs in these actions who did not elect to
participate in the Fund were also permitted to submit an application
for conditional payment from the Fund in which payment amounts would be
determined and set aside, pending a final determination in these
actions.\12\ In the event that a final judgment was entered in favor of
the plaintiffs in the Peterson action and funds were distributed, the
payments allocated to claimants who applied for a conditional payment
were to be considered void, and any funds previously allocated to such
conditional payments be made available and distributed to all other
eligible claimants.\13\ A final judgment in favor of plaintiffs in
Peterson was entered, appealed to the United States Court of Appeals
for the Second Circuit, and ultimately affirmed by the United States
Supreme Court on April 20, 2016.\14\ Distributions to the judgment
creditor plaintiffs in Peterson commenced on October 19, 2016.\15\
Accordingly, conditional claimants who were judgment creditors in
Peterson did not receive award payments from the Fund, and the Fund did
not include them in award calculations in 2017 for the first round of
payments or subsequent payment rounds.\16\
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\10\ Peterson v. Islamic Republic of Iran, No. 10 Civ. 4518
(S.D.N.Y.) and In Re 650 Fifth Avenue and Related Properties, No. 08
Civ. 10934 (S.D.N.Y. filed Dec. 17, 2008).
\11\ Public Law 114-113, 129 Stat. at 3013 (pertinent portion
codified at 34 U.S.C. 20144(e)(2)(B)(iii)).
\12\ Public Law 114-113, 129 Stat. at 3013-3014 (pertinent
portion codified at 34 U.S.C. 20144(e)(2)(B)(iv)).
\13\ Public Law 114-113, 129 Stat. at 3014 (pertinent portion
codified at 34 U.S.C. 20144(e)(2)(B)(iv)(II)(bb)).
\14\ See Bank Markazi aka Central Bank of Iran v. Peterson, 578
U.S. 212 (2016); U.S. Victims of State Sponsored Terrorism Fund,
``Supplemental Report from the Special Master,'' at 6 (August 2017).
\15\ U.S. Victims of State Sponsored Terrorism Fund,
``Supplemental Report from the Special Master,'' at 6 (August 2017).
\16\ Id. There were 78 conditional claimants who were Peterson
judgment creditors. Id.
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The Victims Act outlines minimum payments requirements in which any
applicant with an eligible claim who has received, or is entitled or
scheduled to receive, any payment that is equal to, or in excess of, 30
percent of the total compensatory damages owed on the applicant's claim
from any source other than the Fund \17\ shall not receive any payment
from the Fund until all other eligible applicants generally have
received from the Fund an amount equal to 30 percent of the
compensatory damages awarded to those applicants pursuant to their
final judgments (referred to as the ``30 percent rule'').\18\ The
Fairness Act amended the Victims Act to provide that the minimum
payments requirements include the total amount received by applicants
who are 1983 Beirut barracks bombing victims or 1996 Khobar Towers
bombing victims as a result of or in connection with Peterson or In Re
650 Fifth Avenue and Related Properties. It further provides that any
such applicant who has received or is entitled or scheduled to receive
30 percent or more of such applicant's compensatory damages judgment as
a result of or in connection with such proceedings shall not receive
any payment from the Fund, except as consistent with minimum payments
requirements or as part of a lump sum catch-up payment under section
101 of the Fairness Act.\19\
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\17\ The statute requires that as part of the procedures to
apply and establish eligibility for payment, the Special Master must
require applicants to provide the Special Master with information
regarding compensation from any source other than this Fund that the
claimant (or, in the case of a personal representative, the victim's
beneficiaries) has received or is entitled or scheduled to receive
as a result of the act of international terrorism that gave rise to
a claimant's final judgment, including information identifying the
amount, nature, and source of such compensation. Public Law 114-113,
129 Stat. at 3008 (pertinent portion codified at 34 U.S.C.
20144(b)(2)(B)). Those procedures require applicants to provide
information and documentation regarding the amount, nature, and
source of any payment they received or are entitled or scheduled to
receive, and state that applicants must update that information
throughout the period of the Fund. ``Justice for United States
Victims of State Sponsored Terrorism Act,'' 81 FR 45535, 45538 (July
14, 2016).
\18\ Public Law 114-113, 129 Stat. at 3011 (pertinent portion
codified at 34 U.S.C. 20144(d)(3)(B)(i)).
\19\ Public Law 117-328, 136 Stat. at 6107 (pertinent portion
codified at 34 U.S.C. 20144(d)(3)(B)(iii)).
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Section 101 of the Fairness Act contains a provision for GAO to
conduct an audit and publish a notice of proposed lump sum catch-up
payments for 1983 Beirut barracks bombing victims and 1996 Khobar
Towers bombing victims who submitted eligible applications to the Fund
during the statutory application time frame (December 29, 2022, and by
June 27, 2023).\20\ This section also established a lump sum catch-up
payment reserve fund within the Fund and appropriated $3 billion to
this reserve fund.\21\
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\20\ Public Law 117-328, 136 Stat. at 6108 (pertinent portion
codified at 34 U.S.C. 20144(d)(4)(D)(i)). As discussed in footnote
3, section 101 directs us to estimate lump sum catch-up payments for
those who submitted eligible applications to the Fund between the
date of enactment (Dec. 29, 2022) and June 27, 2023, which is the
date the application period closed for catch-up payments. See Public
Law 117-328, 136 Stat. at 6106-6107 (pertinent portion codified at
34 U.S.C. 20144(c)(3)(A)(ii)). GAO's methodology for the estimation
of lump sum catch-up payments is only for the purposes of carrying
out the provisions directed to the Comptroller General under the
Fairness Act.
\21\ Public Law 117-328, 136 Stat. at 6108-6109 (pertinent
portion codified at 34 U.S.C. 20144(d)(4)(D)(iv)). Additionally, not
earlier than 90 days and not later than 1 year after submission of
the report that is to follow this notice, the Special Master is to
authorize lump sum catch-up payments from the reserve fund in
amounts equal to those estimated by GAO. 34 U.S.C.
20144(d)(4)(D)(iv)(II). Not later than 1 year after the Special
Master disburses all lump sum catch-up payments from the reserve
fund the reserve fund is to terminate; all amounts remaining in the
reserve fund in excess of proposed lump sum catch-up payments shall
be deposited into the Fund. 34 U.S.C. 20144(d)(4)(D)(iv)(IV).
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We published our initial planned methodology for comment on
December 28, 2023 (88 FR 89693). We are now publishing for comment our
updated planned methodology for estimating lump sum catch-up payments
pursuant to section 101 of the Fairness Act for eligible 1983 Beirut
barracks bombing victims and 1996 Khobar Towers
[[Page 56378]]
bombing victims in ``amounts that, after receiving the lump sum catch-
up payments, would result in the percentage of the claims of such
victims received from the Fund being equal to the percentage of the
claims of non-9/11 victims of state sponsored terrorism received from
the Fund, as of December 29, 2022.'' \22\ The language used in section
101 to describe the percentage resulting from the receipt of lump sum
catch-up payments for 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims is equivalent to the language in the
Sudan Claims Resolution Act, which directed us to estimate lump sum
catch-up payments to 9/11 victims, spouses, and dependents.\23\ Section
101 further provides for GAO to conduct this audit in accordance with
34 U.S.C. 20144(d)(3)(A), which requires that distributions be made
``on a pro rata basis, based on the amounts outstanding and unpaid on
eligible claims, until such amounts have been paid in full or the Fund
is closed.'' \24\ Additionally, 34 U.S.C. 20144(d)(3)(A) places limits
on the amount of eligible claims (referred to as ``individual and
family statutory caps'').\25\
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\22\ 34 U.S.C. 20144(d)(4)(D)(i). The Fairness Act required GAO,
by Dec. 28, 2023, to conduct an audit and publish a notice in the
Federal Register. The act further required GAO to provide a 30-day
period for public comment and to submit a report to congressional
committees and the Special Master not later than 30 days after the
expiration of the comment period. Id. 20144(d)(4)(D)(ii)-(iii). We
acknowledge that we did not meet the date identified in the statute
for submitting a report to congressional committees and the Special
Master. We also acknowledge that the Fairness Act does not contain a
provision for GAO to publish a second Federal Register notice on
this topic. We believe that we need to issue this notice to ensure
an accurate and transparent methodology for claimants to receive the
correct amounts of lump sum catch-up payments. In response to the
first Federal Register notice, we received numerous comments that
raised disparate and considered views, and it is critical that we
fully consider and address them. In addition, this second notice
considers certain claimant data that were not available in December
2023 when we issued the first notice to meet the date required by
the Fairness Act.
\23\ See Public Law 116-260, div. FF, tit. XVII, sec.
1705(b)(2), 134 Stat. 1182, 3293-3294 (pertinent portion codified at
34 U.S.C. 20144(d)(4)(C)(i) (``[T]he Comptroller General of the
United States shall conduct an audit and publish in the Federal
Register a notice of proposed lump sum catch-up payments to 9/11
victims, 9/11 spouses, and 9/11 dependents who have submitted
applications in accordance with subparagraph (B) 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
December 27, 2020.'')).
\24\ See 34 U.S.C. 20144(d)(3)(A)(i) (requiring the division of
funds on a pro rata basis, subject to minimum payments provisions in
34 U.S.C. 20144(d)(3)(B) and limitations in 34 U.S.C.
20144(d)(3)(A)(ii)).
\25\ 34 U.S.C. 20144(d)(3)(A)(ii). For example, for individuals,
the cap is $20,000,000 and for claims of non-9/11 family members
when aggregated, the cap is $35,000,000.
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Summary of Comments
GAO received a total of 319 comments by the closing date of January
29, 2024. GAO received 310 comments from individuals and 9 comments
from law firms representing victims of state-sponsored terrorism.\26\
GAO received 316 comments by email; the remaining 3 comments were
received in voicemails or letters. In general, comments from
individuals were from 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims, 9/11 victims and their family members,
and Members of Congress; \27\ and comments from law firms were from
attorneys representing 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims.
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\26\ GAO counted comments received multiple times with the same
content and sender as one comment.
\27\ We received a comment letter signed by three Members of
Congress. According to the comment letter, they are members of the
United States Senate who worked on the Fairness Act and on S. 5156,
the Fairness for American Victims of State-Sponsored Terrorism Act
(which later became the catch-up payment provision in the Fairness
Act). The Members of Congress provided comments stating their views
that all eligible claimants should be referred to GAO from the
Special Master, GAO should use the Fund's payment percentage for
purposes of lump sum catch-up payments, and GAO should exclude
offsets from claimants' net eligible claims.
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GAO has carefully considered all comments received. Below is a
summary of the types of comments GAO received and GAO's responses.\28\
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\28\ Some comments fell into multiple categories and are
included in all applicable categories.
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Equity Issues Related to U.S. Victims of State Sponsored Terrorism Fund
and Lump Sum Catch-Up Payments
Some comments expressed concern with certain groups of victims
within the Fund being prioritized and stated that all victims should be
treated equally and fairly. Some commenters also stated that since 1983
Beirut barracks bombing victims and 1996 Khobar Towers bombing victims
were never excluded from the Fund, they should not receive catch-up
payments.
GAO Response: Section 101 of the Fairness Act includes a provision
for GAO to conduct an audit and publish a notice of proposed lump sum
catch-up payments for 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims who submitted eligible applications to
the Fund during the statutory application time frame. As such, GAO is
carrying out the processes directed by that provision and is not
otherwise taking a position with respect to who should receive lump sum
catch-up payments.
Eligibility Criteria for a Lump Sum Catch-Up Payment
GAO received comments regarding the eligibility criteria for a lump
sum catch-up payment. Many of the comments on this topic related to the
timing of applications to the Fund by 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims. Specifically,
commenters raised issues related to prior applicants to the Fund who
either withdrew their prior applications or were already deemed
eligible claimants by the Fund, and reapplied within the statutory
application time frame. One group of commenters stated that applicants
who withdrew prior applications and subsequently reapplied to the Fund
within the statutory application time frame should be considered
ineligible for a lump sum catch-up payment, describing them as ``late
filers.'' A second group of commenters who submitted a comment letter
stated that claimants who applied to the Fund previously, as
conditional claimants or otherwise, and then subsequently applied to
the Fund within the statutory application time frame should be eligible
for a lump sum catch-up payment. These commenters stated that section
101 of the Fairness Act does not prohibit successive applications or
further define the term ``application'' in a way that would disqualify
claimants who previously applied to the Fund and then applied
subsequently within the statutory application time frame. Some
commenters also raised concerns that the Fund had administratively
closed claimants' applications, or did not permit claimants to apply
under the Fund's procedures.\29\
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\29\ According to Fund officials, the Fund administratively
closed applications submitted by claimants previously found eligible
because it cannot and does not accept successive or duplicate
applications. See ``Justice for United States Victims of State
Sponsored Terrorism Act,'' 81 FR 45535, 45537 (July 14, 2016)
(stating that ``[o]nly one application may be submitted for each
claim''). On Feb. 7, 2023, during the statutory application time
frame, the Fund updated the frequently asked questions section of
its website, adding language that 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims ``who are not
eligible for lump sum catch-up payments under the Fairness Act, such
as USVSST Fund claimants previously found eligible, may still be
eligible for compensation in the USVSST Fund's other statutory
distributions.'' U.S. Victims of State Sponsored Terrorism Fund,
Frequently Asked Questions, https://www.usvsst.com/Home/Faq (last
accessed June 25, 2024) (Frequently Asked Question (FAQ) 7.3 Which
1983 Beirut barracks bombing victims and 1996 Khobar Towers bombing
victims are included in the Fairness Act's lump sum catch-up payment
provision and how do these victims file a claim with the USVSST
Fund?). Further, on July 28, 2023, the Fund updated FAQ 7.1 What are
lump sum catch-up payments? and FAQ 7.3 to add language stating that
``[e]ach claimant has one claim before the USVSST Fund for all
compensation, including lump sum catch-up payments. The USVSST Fund
cannot accept duplicative filings.'' According to Fund officials,
claimants may have refrained from filing an application after
contacting the Fund or reviewing the application procedures based on
the advice received from their counsel or the Fund. For good cause
shown, the Special Master may grant a claimant a reasonable
extension of the section 20144(c)(3)(A)(ii)(II) deadline. 34 U.S.C.
20144(c)(3)(B) (applying to deadlines under (c)(3), as enacted by
the Victims Act, Public Law 114-113, 129 Stat. at 3010).
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[[Page 56379]]
GAO Response: GAO's view is that the provision for lump sum catch-
up payments in section 101 of the Fairness Act does not disqualify
claimants who previously applied to the Fund and then subsequently
applied within the statutory application time frame.\30\ The
Comptroller General's mandate to determine amounts of lump sum catch-up
payments does not state that successive applications cannot be
submitted for lump sum catch-up payments, and we do not read such a
prohibition in the related provision regarding the deadline for
application submission.\31\ Accordingly, we are updating our
methodology to include all eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims who submitted an
application to the Fund within the statutory application time frame,
including those who submitted successive applications to the Fund.\32\
In accordance with section 101 of the Fairness Act, we will not include
claimants who did not have a final judgment awarded as of the date of
enactment of the Fairness Act and will not include claimants who did
not submit an application to the Fund within the statutory application
time frame.\33\
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\30\ GAO's view is for purposes of implementing the Comptroller
General's responsibilities under 34 U.S.C. 20144(d)(4)(D)(i)-(iii)
to conduct an audit and calculate amounts for the Special Master to
allocate lump sum catch-up payments.
\31\ See 34 U.S.C. 20144(c)(3)(A)(ii)(II); 34 U.S.C.
20144(d)(4)(D)(i) (conditioning eligibility for lump sum catch-up
payments on those individuals filing applications for payment
between Dec. 29, 2022, and June 27, 2023). Interpreting the statute
in this way also aligns with another provision of the Fairness Act,
related to litigation involving certain 1983 Beirut barracks bombing
victims and 1996 Khobar Towers victims. See Public Law 117-328, 136
Stat. at 6109 (pertinent portion codified at 34 U.S.C.
20144(e)(2)(B)(v) (providing that statutory provisions regarding
elections by plaintiffs in Peterson v. Islamic Republic of Iran and
In Re 650 Fifth Avenue and Related Properties shall not apply with
respect to 1983 Beirut barracks bombing victims and 1996 Khobar
Towers victims who submit an application during the statutory
application time frame)).
\32\ This includes claimants who, within the statutory
application time frame, submitted applications to the Fund,
including those who submitted a letter to the Fund expressing the
claimants' intent to apply for lump sum catch-up payments,
regardless of a previous determination of eligibility by the Fund or
administrative closure of their applications. As discussed in
further detail below, this comprises 512 claimants (which includes
78 conditional claimants who were Peterson judgment creditors).
\33\ Section 101 of the Fairness Act requires that applications
be submitted on or after Dec. 29, 2022, and by June 27, 2023. In
contrast, the Sudan Claims Resolution Act provided 9/11 victims,
spouses, and dependents 90 days from the date of enactment to submit
an application for a payment. Public Law 116-260, 134 Stat. at 3293-
3294 (pertinent portion codified at 34 U.S.C. 20144(d)(4)(C)(i)).
Therefore, GAO could calculate lump sum catch-up payments for 9/11
victims, spouses, and dependents who submitted applications to the
Fund prior to the date of enactment of the Sudan Claims Resolution
Act, while GAO cannot calculate lump sum catch-up payments to 1983
Beirut barracks bombing victims and 1996 Khobar Towers bombing
victims unless they have submitted an application during the 180-day
period from the date of enactment of the Fairness Act.
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Support for GAO's Percentage Calculation Methodology
Comments received expressed support for GAO's percentage
calculation methodology as described in our December 28, 2023, notice
(88 FR 89693). These commenters noted that the methodology we outlined
was the same formula used to calculate the 9/11 lump sum catch-up
payments, and also noted that since the relevant statutory language for
that calculation and this calculation are identical, they find this
approach appropriate. These commenters also generally stated that
employing a different formula or methodology would potentially give
prioritization or preferential treatment to one group of victims over
another.
GAO's Response: We agree that the language used in section 101 of
the Fairness Act to describe the percentage that we are to calculate to
estimate lump sum catch-up payments for 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims is equivalent to the
language in the Sudan Claims Resolution Act, which directed us to
estimate lump sum catch-up payments to 9/11 victims, spouses, and
dependents.\34\ Thus, we plan to use the same methodology that we used
to calculate ``GAO's percentage calculation'' for the 9/11 lump sum
catch-up payments for this population.
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\34\ Compare 34 U.S.C. 20144(d)(4)(D)(i) (``in amounts that,
after receiving the lump sum catch-up payments, would result in the
percentage of the claims of such victims received from the Fund
being equal to the percentage of the claims of non-9/11 victims of
state sponsored terrorism received from the Fund, as of December 29,
2022''), with 34 U.S.C. 20144(d)(4)(C)(i) (``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
December 27, 2020.''). The Fairness Act directed the Special Master
to authorize lump sum catch-up payments to 9/11 victims, spouses,
and dependents in amounts equal to those previously estimated by GAO
and appropriated funds for that purpose. Public Law 117-328, 136
Stat. at 6107; GAO, U.S. Victims of State Sponsored Terrorism Fund:
Estimated Lump Sum Catch-Up Payments, GAO-21-105306 (Aug. 11, 2021).
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Request To Use the Fund's Payment Percentage
GAO received comments about the use of the Fund's payment
percentage for our estimation of lump sum catch-up payments. For
example, commenters suggested that GAO add the payment percentages
calculated by the Fund in the first through fourth rounds to determine
the percentage needed for catch-up payments.\35\
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\35\ The Fund's ``payment percentage'' is the amount of funds
available to pay all eligible claimants in a given round divided by
compensatory damages after accounting for the individual and family
statutory caps, compensation from other sources, and prior payments
from the Fund. The payment percentage for the initial round of
payments was 13.6561 percent (generally rounded to 13.66 percent in
USVSST Fund communications). The payment percentage for the second
round of payments was 4.1955 percent (rounded to 4.2 percent in
USVSST Fund communications). The payment percentage for non-9/11-
related claimants in the third round of payments was 5.8385 percent
(rounded to 5.84 percent in USVSST Fund communications). The non-9/
11-related payment percentage for the fourth round was 0.4047
percent (rounded to 0.4 percent in USVSST Fund communications). The
payment percentage total for all four rounds is 24.0948 percent,
rounded here to 24 percent. See U.S. Victims of State Sponsored
Terrorism Fund, ``Payment Calculation Explanation for Non-9/11-
Related Claims,'' at 5 (December 2022).
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GAO's Response: Section 101 of the Fairness Act calls for GAO to
estimate 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 such victims received from the Fund being equal to the
percentage of the claims of non-9/11 victims of state sponsored
terrorism received from the Fund, as of December 29, 2022.'' \36\
Consistent with our approach pursuant to equivalent language in the
Sudan Claims Resolution Act and outlined in a prior notice (86 FR
31312, June 11, 2021) and report,\37\ GAO estimated the amount needed
to provide lump sum catch-up payments to 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims who submitted
[[Page 56380]]
potentially eligible applications within the statutory application time
frame in an equal percentage to that of the payments that have been
made to non-9/11 claimants in the Fund's first three payment
rounds.\38\
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\36\ 34 U.S.C. 20144(d)(4)(D)(i).
\37\ GAO, U.S. Victims of State Sponsored Terrorism Fund:
Estimated Lump Sum Catch-Up Payments, GAO-21-105306 (Aug. 11, 2021)
(see Enclosure II for further discussion of the Fund's payment
percentage and GAO's percentage calculation).
\38\ We did not include the Fund's fourth payment round because,
according to the Fund, it did not begin issuing fourth-round
payments until Jan. 4, 2023, after the Fairness Act was enacted.
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We note that there are key differences in how the Fund calculated
its payment percentage and how GAO calculated the percentage of lump
sum catch-up payments for 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims. In particular, the Fund and GAO
calculated percentages in different ways to fulfill distinct purposes.
The Fund's mission in each payment round is to distribute the available
money in the Fund--a known amount--among Fund claimants. Section 101 of
the Fairness Act, however, directs GAO to estimate the amount of money
that is needed to catch up eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims in an equal percentage
to that of the payments that have been made to non-9/11 claimants in
the Fund's first three payment rounds.\39\
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\39\ See our methodology section below for more details of the
calculation of the GAO percentage.
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Offsetting Eligible Claims With Compensation From Other Sources for
Lump Sum Catch-Up Payments
GAO received comments regarding our planned approach of estimating
two amounts in this notice: (1) the total amount needed to provide lump
sum catch-up payments to potentially eligible 1983 Beirut barracks
bombing victims and 1996 Khobar Towers bombing victims based on these
victims' net eligible claims; and (2) the total amount needed to
provide lump sum catch-up payments to potentially eligible 1983 Beirut
barracks bombing victims and 1996 Khobar Towers bombing victims based
on these victims' net eligible claims offset by compensation from other
sources. Some commenters advocated for the final lump sum catch-up
payment estimates provided by GAO to be offset by compensation from
other sources for this population. These commenters stated that the
statute governing the Fund and section 101 of the Fairness Act support
an approach that is based on an individual's unpaid compensatory
damages claim, which is an applicant's claim value after moneys
received from sources other than the Fund are deducted. These
commenters also noted that certain 1983 Beirut barracks bombing victims
and 1996 Khobar Towers bombing victims have received compensation from
other sources that are to be offset by the Fund pursuant to the statute
governing the Fund.\40\
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\40\ See 34 U.S.C. 20144(d)(3)(A)(i). These commenters stated
that while the Fairness Act explicitly exempts 1983 Beirut barracks
bombing victims and 1996 Khobar Towers bombing victims from the 30
percent rule for the purposes of receiving a lump sum catch-up
payment, the statute governing the Fund still requires that their
total compensatory damages be offset of the moneys they have already
received or are scheduled to receive.
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In contrast, other commenters advocated for the final lump sum
catch-up payment estimates provided by GAO to not be offset by
compensation from other sources for this population. These commenters
stated that section 101 of the Fairness Act's use of the phrase
``received from the Fund'' should be read to modify the employment of
34 U.S.C. 20144(d)(3)(A) such that claims should not be offset other
than from amounts received from the Fund. These commenters acknowledged
34 U.S.C. 20144(d)(3)(A)(i) provides that payments should be ``based on
the amounts outstanding and unpaid on eligible claims,'' but stated
that this language does not apply to catch-up payments because the
focus of the directive to GAO is on amounts received from the Fund.
They further stated that the exemption for eligible 1983 Beirut
barracks bombing victims and 1996 Khobar Towers bombing victims from
the 30 percent rule for the purposes of receiving a lump sum catch-up
payment indicates congressional intent that, for the purposes of these
catch-up payments, the normal Fund rules offsetting payments should not
apply.
Some commenters also raised concerns about GAO's planned approach
of estimating two amounts and that GAO should provide only one
estimated amount.
GAO's Response: Section 101 of the Fairness Act requires GAO to
conduct this audit ``in accordance with clauses (i) and (ii) of [34
U.S.C. 20144(d)(3)(A)].'' Consistent with our prior lump sum catch-up
payment calculation for 9/11 victims, spouses, and dependents, and in
accordance with clause (ii) of 34 U.S.C. 20144(d)(3)(A), we plan to
estimate lump sum catch-up payments for this population using their
``net eligible claims,'' \41\ that is, the amount of their claims after
the application of individual and family statutory caps.\42\
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\41\ For the purposes of our analysis, ``net eligible claims''
refers to the monetary amount of all eligible claims after the
application of individual and family statutory caps. 34 U.S.C.
20144(d)(3)(A)(ii).
\42\ 34 U.S.C. 20144(d)(3)(A)(ii). For example, for individuals,
the cap is $20,000,000 and for claims of non-9/11 family members
when aggregated, the cap is $35,000,000.
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Section 101 also requires us to conduct our work in accordance with
clause (i) of 34 U.S.C. 20144(d)(3)(A), which requires that payments be
made ``based on the amounts outstanding and unpaid on eligible
claims.'' In order to give effect to this provision, compensatory
damages from other sources received by the claimant under their final
judgment must be subtracted to produce the amount ``outstanding and
unpaid'' on their claims. In our prior work, we did not offset eligible
9/11 victims, spouses, and dependents' net eligible claims with
compensation from other sources because that population did not have
qualifying compensation from other sources.\43\ Since certain 1983
Beirut barracks bombing victims and 1996 Khobar Towers bombing victims
do have qualifying compensation from other sources, our reading of
section 101's directive for us to conduct our work in accordance with
clause (i) of 34 U.S.C. 20144(d)(3)(A) requires us to offset their net
eligible claims by the amounts paid on eligible claims in the final
lump sum catch-up payment estimates provided in our report.\44\
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\43\ See 34 U.S.C. 20144(d)(3)(A)(i)(III), (d)(3)(B).
\44\ This provision is different than the minimum payments
provisions in 34 U.S.C. 20144(d)(3)(B), under which any applicant
with an eligible claim who has received, or is entitled or scheduled
to receive, any payment that is equal to, or in excess of, 30
percent of the total compensatory damages owed to such applicant on
the applicant's claim from any source other than the Fund shall not
receive any payment from the Fund until such time as all other
eligible applicants have received from the Fund an amount equal to
30 percent of the covered compensatory damages awarded to those
applicants. See 34 U.S.C. 20144(d)(3)(A)(i) (``Except as provided in
subparagraph (B) [minimum payments provisions] and subject to the
limitations described in clause (ii) [individual and family
statutory caps], the Special Master shall carry out paragraph (1),
by . . . further dividing the funds allocated to non-9/11 related
victims of state sponsored terrorism on a pro rata basis, based on
the amounts outstanding and unpaid on eligible claims, until such
amounts have been paid in full or the Fund is closed.''). The
Fairness Act added a new provision, codified at 34 U.S.C.
20144(d)(3)(B)(iii), stating that compensatory damages received or
entitled or scheduled to be received by an applicant who is a 1983
Beirut barracks bombing victim or a 1996 Khobar Towers bombing
victim as a result of or in connection with Peterson or In Re 650
Fifth Avenue and Related Properties are excepted for purposes of
lump sum catch-up payments. In using the term ``offsets,'' we refer
to compensation from sources other than the Fund for the purposes of
applying clause (i) of 34 U.S.C. 20144(d)(3)(A) and the minimum
payments provisions. GAO's view is for purposes of implementing the
Comptroller General's responsibilities under 34 U.S.C.
20144(d)(4)(D)(i)-(iii) to conduct an audit and calculate amounts
for the Special Master to allocate lump sum catch-up payments.
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In light of the language of clause (i) of 34 U.S.C. 20144(d)(3)(A),
the comments
[[Page 56381]]
we received on this issue, and concerns by some commenters about our
approach of providing two amounts, we will provide in this notice one
estimate: the total amount needed to provide lump sum catch-up payments
to potentially eligible 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims based on these victims' net eligible
claims offset by compensation from other sources.
Methodology To Produce Estimates for Lump Sum Catch-Up Payments
To estimate the amount(s) called for in section 101, GAO used the
following data from the Fund: (1) payments from the Fund received by
non-9/11 claimants in the first through third payment rounds; \45\ (2)
net eligible claims \46\ of these non-9/11 claimants; (3) compensation
from other sources received by these non-9/11 claimants; \47\ (4) net
eligible claims \48\ of the 1983 Beirut barracks bombing victims and
1996 Khobar Towers bombing victims who submitted eligible applications
to the Fund within the statutory application time frame (between
December 29, 2022, and June 27, 2023); \49\ and (5) compensation from
other sources received by the 1983 Beirut barracks bombing victims and
1996 Khobar Towers bombing victims who submitted eligible applications
to the Fund within the statutory application time frame.\50\
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\45\ As discussed in footnote 9, this includes some 1983 Beirut
barracks bombing victims and 1996 Khobar Towers bombing victims who
were eligible for payment from the Fund in prior rounds. We did not
include in this group 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims who did not receive any payment in the
first through third payment rounds. We used this information to help
us identify the percentage of claims of non-9/11 victims of state
sponsored terrorism received from the Fund, as of the Fairness Act's
enactment date (Dec. 29, 2022). See 34 U.S.C. 20144(d)(4)(D)(i).
Given this reference to the act's enactment date, we omitted fourth-
round payments from the calculation of the payment percentage
because non-9/11 victims of state sponsored terrorism received them
after that date. The Fund notified eligible claimants of their
fourth-round payment amounts on Dec. 30, 2022, and began issuing the
fourth-round payments on a rolling basis on Jan. 4, 2023, after the
Fairness Act was enacted. U.S. Victims of State Sponsored Terrorism
Fund, ``Special Master's Report Regarding the Fourth Distribution,''
at 3 (January 2023).
\46\ For the purposes of our analysis, ``net eligible claims''
refers to the monetary amount of all eligible claims after the
application of individual and family statutory caps by the Fund, if
applicable. 34 U.S.C. 20144(d)(3)(A)(ii).
\47\ Not all compensation from other sources is necessarily
offset against claimants' net eligible claims. When referring to
``compensation from other sources'' for purposes of our methodology
and estimates, we are referring to compensation from other sources
that the Fund would offset from its awards under its calculation
methodology, which the Fund provided to GAO.
\48\ As of March 2024, data from the Fund on the claim amounts
after the application of individual and family statutory caps (``net
eligible claims'') for 1983 Beirut barracks bombing victims and 1996
Khobar Towers bombing victims who are potentially eligible for lump
sum catch-up payments were not available for new applicants to the
Fund. This is because these new claimants have not been included in
a payment distribution that would require the application of
individual and family statutory caps by the Fund. GAO used Fund
methodology to apply the individual and family statutory caps to
these claims. See U.S. Victims of State Sponsored Terrorism Fund,
Payment Calculation Explanation for Non-9/11-Related Claims at 2-3
(December 2022). Before applying the $35 million family statutory
cap, we first treated any individual claim that exceeded the $20
million individual statutory cap as $20 million. For purposes of the
$35 million family statutory cap, GAO summed individual claims for
those claims that indicated a family relationship in the data by a
family identification number. Once summed, if claims within a family
identification number exceeded the $35 million family statutory cap,
we then allocated the $35 million family statutory cap among the
family members in proportion to their individual claims. We provided
our analysis to the Fund for review and they confirmed that based on
their review our approach appeared consistent with their
methodology. While this analysis enabled us to determine the ``net
eligible claims'' for the purposes of estimating lump sum catch-up
payments for our population, we recognize that the Fund may receive
additional information or data in the future that might impact these
amounts if these claimants are included in a future payment
distribution.
\49\ We received data from the Fund as of May 2024 for 1,778
claimants for the 1983 Beirut barracks bombing and 308 claimants for
the 1996 Khobar Towers bombing who submitted eligible applications
to the Fund and applied in the statutory application time frame. Of
those, 512 had received a prior eligibility determination from the
Fund and 1,559 were new applicants. We also received data on 14
victims of these attacks who submitted applications during the
statutory application time frame whose eligibility is still being
determined by the Fund as of June 2024. Because eligibility for some
of these victims is still being determined, we refer to the group as
a whole as ``potentially eligible'' for catch-up payments. These
applications are pending because the Fund is awaiting additional
documentation from these individuals that is needed to determine
their claims' eligibility. We encourage applicants with pending
applications to provide requested documentation to the Fund that is
needed to determine their claims' eligibility. For purposes of
estimating lump sum catch-up payments in this notice, we are
including all of the potentially eligible claims. However, in our
final report, to be issued no later than 30 days following the close
of the comment period, we will only include the total amount needed
to provide lump sum catch-up payments to 1983 Beirut barracks
bombing victims and 1986 Khobar Towers bombing victims who submitted
claims that the Fund has deemed eligible.
\50\ We obtained from the Fund information on compensation from
other sources as of March 2024 for claimants who have eligibility
for regular distributions from the Fund. Fund officials confirmed
that, based on information included in these applications, all
applicants who reported compensation from other sources are Peterson
judgment creditors whose offsets are the amounts recovered in
Peterson. After GAO informed the Fund that it would include
claimants who previously had eligibility determinations made by the
Fund in its estimated lump sum catch-up payment calculations, on May
31, 2024, the Fund provided the remaining offset information that
the 78 conditional claimants who were Peterson judgment creditors
included in their applications for lump sum catch-up payments, for
purposes of our audit and calculations. In order to apply the
minimum payments provisions in 34 U.S.C. 20144(d)(3)(B), before
issuing our final report, we will need to confirm the source of the
offsets for these 78 conditional claimants. The Fund does not use
information contained in duplicate applications administratively
closed by the Fund for Fund purposes, according to the Fund
officials.
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To carry out our mandate under section 101 of the Fairness Act,
using data from the Fund described above, we estimated the amount of
payments that non-9/11 claimants received in the first three rounds of
Fund payments, as a percentage of their net eligible claims offset by
compensation from other sources.\51\ We first determined the payment
amounts received by non-9/11 claimants from the Fund in the first
through third payment rounds.\52\ We then summed the payments for the
three payment rounds across all non-9/11 claimants. Next, we determined
the net eligible claims of the non-9/11 claimants as of the third round
that they received a payment, offset by compensation from other
sources, and summed across all claimants. We divided the amount of
payments by the net eligible claims offset by compensation from other
sources to determine the percentage called for in our mandate of
16.0353 percent (GAO's percentage calculation).\53\
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\51\ 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.
\52\ The non-9/11 claimants included 1983 Beirut barracks
bombing victims and 1996 Khobar Towers bombing victims who received
payments from the Fund. See 34 U.S.C. 20144(j)(9). In applying this
standard, we excluded three types of claims: (1) those where the
victim received no payments because they were conditional claimants;
(2) those where the victim never received payment in any of the
first through third rounds of distribution because compensation from
other sources (offsets) exceeded 30 percent of the compensatory
damages (before applying the individual and family statutory caps);
and (3) those where the offsets exceeded the percentage of
compensatory damages awarded to other eligible applicants in each of
the first through third rounds of distribution for which these
claims were eligible. See id. 20144(d)(4)(D)(i).
\53\ We reported 4.6122 percent in the first notice. The
percentage changed due to a data programming error that occurred in
our initial estimate and has now been corrected. Specifically, the
net eligible claims were inadvertently included in the initial round
that the payment was received as well as in the subsequent rounds,
resulting in a larger summed net eligible claims and a lower
calculated percentage. Furthermore, the calculation included the
fourth payment round which, as indicated in footnote 35, had a very
low payment percentage among the four rounds.
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Estimates for Lump Sum Catch-Up Payments
Using GAO's percentage calculation, we estimated the total amount
needed to provide lump sum catch-up payments to the 2,086 potentially
eligible 1983
[[Page 56382]]
Beirut barracks bombing victims and 1996 Khobar Towers bombing victims
based on these victims' net eligible claims offset by compensation from
other sources.\54\ In the data provided, 1,495 of the potentially
eligible 1983 Beirut barracks bombing victims and 1996 Khobar Towers
bombing victims reported compensation from other sources of some non-
zero amount, such as court-awarded compensation.\55\ To identify a
claimant's lump sum catch-up payment, the calculated GAO percentage
will be applied to the claimant's net eligible claims offset by
compensation from other sources. Then, to identify a net lump sum
catch-up payment, we will subtract any amount of money a claimant had
previously received from the Fund.\56\ Our calculation produced
$614,988,012.55, the total amount needed to provide lump sum catch-up
payments for Beirut barracks and Khobar Towers bombing victims who
submitted eligible applications to the Fund within the statutory
application time frame.\57\
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\54\ In our prior work, we did not offset eligible 9/11 victims,
spouses, and dependents' net eligible claims with compensation from
other sources because this population did not have qualifying
compensation from other sources. Although some 9/11 claimants may
have received awards from the September 11th Victim Compensation
Fund (VCF), money received from the VCF is not considered an offset
for the Fund's award calculations. See U.S. Victims of State
Sponsored Terrorism Fund, Frequently Asked Questions, https://www.usvsst.com/Home/Faq (last accessed June 18, 2024) (see 4.8 What
is a source of compensation other than the USVSST Fund?).
\55\ The Fund provided information about compensation from other
sources for all potentially eligible 1983 Beirut barracks bombing
victims and 1996 Khobar Towers bombing victims. According to Fund
data, the reported compensation from other sources for some of these
potentially eligible claimants was $0. For potentially eligible
claimants who received compensation from other sources of some non-
zero amount, that compensation ranged from approximately $65,000 to
approximately $5 million.
\56\ The payments previously received from the Fund will include
all the payment rounds--first through fourth rounds--as applicable.
\57\ The net lump sum catch-up payment is the difference between
the calculated lump sum catch-up and the compensation already
received from the Fund (it would be zero if the compensation already
received from the Fund is equal to or exceeds the calculated lump
sum catch-up).
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After consideration of the comments from this notice, we will issue
a report using data from the Fund to report estimated lump sum catch-up
payments based on this methodology with any changes we determine
appropriate. We invite comments on all aspects of the planned
methodology and lump sum catch-up payments proposed in this notice. Our
final report will be available on gao.gov.
Authority: Pub. L. 117-328, div. MM, sec. 101(b)(3)(B)(iii), 136
Stat. 4459, 6108-6109 (pertinent portion codified at 34 U.S.C.
20144(d)(4)(D)).
Triana McNeil,
Director, Homeland Security and Justice, U.S. Government Accountability
Office.
[FR Doc. 2024-15016 Filed 7-8-24; 8:45 am]
BILLING CODE 1610-02-P
