New Discovery: White House, For First Time, Rescinds Part Of Ny's $20 Billion For Ground Zero - Schumer Demands Full Reinstatement

NEW DISCOVERY: WHITE HOUSE, FOR FIRST TIME, RESCINDS PART OF NY'S $20 BILLION FOR GROUND ZERO - SCHUMER DEMANDS FULL REINSTATEMENT

Hidden Line Item in President's Budget Cuts $125 Million from Ground Zero Injured Worker Fund

Schumer to Call for Redirection of Funding to First Responders who Still Need Help and Other Ground Zero Needs

As a new discovery in the President's Budget found a hidden provision that rescinds $125 million of funding for ground zero workers compensation, U.S. Senator Charles E. Schumer today called on the White House to reinstate that money. Schumer stood with Dennis Hughes, President of the AFL-CIO and Peter Gorman, head of the United Fire Officers Association.

"Until now Washington has been doing the right thing by New York when it comes to funding and flexibility so that we can rebuild," said Schumer. "Its a crying shame that now this Administration is trying to sneak an item into the budget and cheat New York out of money that it still desperately needs."

In the aftermath of the September 11th attacks, the government, due in large part to lobbying by Senator Schumer, agreed to give more than $20 billion to help New York recover and rebuild. A portion of that was $175 million for New York's workers compensation program for Ground Zero responders who suffer from injuries and job loss as a result of their efforts. While about $50 million has been spent over the past few years, the Office of Management and Budget (OMB) has argued that the funds are no longer needed. But, after the first round of federally funded medical screenings, thousands of responders were left in need and half of the already screened responders are expected to warrant physical or mental heath treatment.

When the funding was originally allocated to New York, the agreement was, that if some of the money was not to be used for the purpose that it was originally earmarked, New York could redirect the money toward other pressing needs. This rescission would renege on that agreement.

In an effort to get this money reinstated, today U.S. Senator Charles E. Schumer called on the Administration to reinstate the funding in the budget for 2006. The Senator also called for a full actuarial review of the projected cost of current claims and anticipated future claims. If the review concludes that the compensation needs are met, Schumer will demand that the money be reprogrammed to help those that may still be suffering from illness and injury or other Ground Zero needs.

"Providing health care for the heroes who selflessly gave of themselves after 9/11 is absolutely consistent with the promise by our government to do whatever it takes to get New York back on its feet," Schumer said. "There is no sensible explanation for taking money away from Ground Zero, if we find that its not needed for workers compensation claims we can certainly find another place for it."

Next week, when Congress reconvenes, a House Committee will consider the funding rescission.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR41698.Ground%20Zero.060205.html