Democrats Request Asbestos Fund Study

Democratic House Judiciary Committee members have asked that the Government Accountability Office assess possible problems with a proposed asbestos injury trust fund. The fund serves as the basis of legislation being drafted in the Senate to deal with asbestos litigation.

In a letter to the comptroller general, the committee members requested that the GAO “study the efficacy, fairness, and solvency of various trust funds and programs established to compensate individuals for harm caused by mass torts and other exposure to dangerous materials and products.” Specifically, the letter suggested a review of similar programs created by Congress to compensate victims, such as the Energy Employees Occupational Illness Compensation Program Act and the Radiation Compensation Act, as well as trust funds facilitated by legislative acts or bankruptcy court orders, such as the Johns-Manville Personal Injury Settlement Trust.

In May, the advocacy group, USAction, released a study similar to that which the Democrats are seeking. USAction examined three programs, the Black Lung program, RECA, and EEOICPA. In each case, it found that beneficiaries faced delays in receiving payment, often because lawmakers had underestimated the expenses of starting and maintaining the programs, or made their decisions based on inaccurate information supplied by supporters of such programs.