Feds Fix Terrorism Victim Expense Reimbursement—Wait, That Exists?
Published Date: 1/21/2025
Proposed Rule
Summary
The Justice Department wants to update the rules for the International Terrorism Victim Expense Reimbursement Program, which helps victims of terrorism get money back for certain expenses. These changes will make the program easier to use, clarify policies, and adjust spending limits. If you want to share your thoughts, you have until March 24, 2025, to comment!
Analyzed Economic Effects
13 provisions identified: 11 benefits, 1 costs, 1 mixed.
Overall per-claimant cap raised
The program's overall reimbursement cap would increase from $105,000 to $175,000 per claimant. This change would apply to claims pending determination and to all initial and supplemental claims filed after the final rule's effective date.
Mental health coverage expanded
The mental health care category cap would increase from $5,000 to $20,000 and the prior time limit on reimbursing mental health costs would be eliminated. The appendix explicitly allows up to $20,000 for victim mental health counseling, including for certain family members when the victim is minor, incapacitated, deceased, or otherwise unable to submit a claim due to the act of terrorism.
Bigger medical expense limit
The medical expense category cap would increase from $50,000 to $80,000. The revised chart in the appendix reflects this new $80,000 limit for medical, dental, rehabilitation, and replacement medical devices.
Funeral support expanded
Funeral and burial expense limits would increase from $25,000 to $35,000. Separately, the rule also amends definitions to allow reimbursement of travel costs for up to five family members (changed from two) to attend funerals or related travel.
Miscellaneous expense cap raised
The miscellaneous expense cap would increase from $15,000 to $25,000 and the appendix continues to list covered items such as temporary lodging (up to 30 days), local transportation, and telephone costs. Emergency travel provisions are retained in the miscellaneous category.
Supplemental claims can capture higher caps
OVC clarifies that claimants may submit an initial application and later submit supplemental applications for additional expenses, and the cap in effect when each application is received applies to awards under that application. OVC estimates a one-time potential cost of about $637,328 if all prior claimants who hit a cap file supplemental claims, and about $39,833 in additional payments per year based on historical excesses.
New victim eligibility for missing persons' families
The rule adds that surviving spouses, children, parents, and siblings may be considered victims for purposes of the program when an individual is rendered missing due to an act of international terrorism and "is otherwise unable to submit a claim as a result of the act of terrorism."
Military pay presumed to offset awards
For claimants who are U.S. military members and whose incident occurred in an officially designated combat zone or qualified hazardous duty area, OVC will presume hostile fire or imminent danger pay (under 37 U.S.C. 310) is a collateral source that offsets claimed expenses unless the claimant demonstrates otherwise.
Limits on collateral-source offsets and subrogation
OVC revised the collateral-sources rule to state that an award will not be reduced by amounts received from a collateral source nor require subrogation, except when combined reimbursement from ITVERP and the collateral source would exceed the actual expense.
Property loss cap increased
The property loss, repair, and replacement cap would increase from $10,000 to $15,000. The appendix lists up to $15,000 to cover repair or replacement of personal property lost, destroyed, or held as evidence (not including most medical devices).
Caps indexed to inflation every 5 years
Expense category caps will be adjusted on October 1, 2028, and every five years thereafter to reflect the five-year change in the Consumer Price Index for All Urban Consumers. Caps may also be adjusted by rulemaking at other times.
Application documentation and perjury certification
Claimants must submit a detailed itemized list of expenses with copies of receipts or, if permitted by the Director, alternative documentation. Claimants must certify under penalty of perjury that items and amounts submitted are true and correct; false certifications may trigger recovery actions or criminal prosecution.
Mental health eligible for conditional payments
The rule renames "interim emergency payment" to "conditional payment" and adds mental health care to services that could be provided under a conditional payment, though conditional payments are described as rare.
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Key Dates
Department and Agencies
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