White House, N.Y. Face Off Over 9/11 Funds
By DEVLIN BARRETT, Associated Press Writer
Wed Jun 1, 5:52 PM ET

WASHINGTON - New York has yet to spend $125 million for workers injured in the attacks of Sept. 11, 2001, and their aftermath. Tired of waiting, the federal government wants the money back.

New York lawmakers are trying to hold on to the funds ahead of a House committee meeting next week to consider reclaiming the money as the Bush administration has proposed for the budget year that begins Oct. 1.
Twenty-one lawmakers from the state, including Democratic Sens.
Hillary Rodham and Charles Schumer, want the White House to redirect the money toward health programs for ground zero workers affected with long-term lung problems that might not appear for years.
So far, the administration has resisted.

The federal government agreed to give more than $20 billion to help New York recover from the attacks. That money included $175 million for the state's workers compensation program.

But as the claims were processed, the bulk of the money was not spent.

A report last year by the Government Accountability Office, the investigative arm of Congress, found that the state spent $44 million to pay out money quickly through other state agencies.
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