Sheila L. Birnbaum, the special master for the federal September 11th Victim Compensation Fund, has published draft rules for the administration of the $2.8 billion fund to compensate those who suffered health problems as a result of the 2001 terrorist attacks. Individuals in an expanded area of lower Manhattan would be eligible for compensation under the proposed rules. Only claimants present at a crash site were eligible for the original $7 billion fund. The fund, which was reopened by the James Zadroga 9/11 Health and Compensation Act of 2010, would cover claimants who were south of Reade Street and the Brooklyn Bridge under the proposal by Ms. Birnbaum, a partner at Skadden, Arps, Slate, Meagher & Flom.

The proposed rules also stipulate that individuals who submitted a claim under the first fund would be able to amend their claims to identify a new injury. The fund, however, continues to limit injuries to “physical harm,” and will not compensate those who suffered only from mental illnesses, such as post-traumatic stress disorder.

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