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NEW YORK, NY April 02, 2008 —The city’s top attorney told a Congressional panel that the federal government should re-open the September 11th Victims Compensation Fund to pay for the healthcare needs of rescue and recovery workers from the World Trade Center site.

WNYC’s Fred Mogul reports.

The city has long maintained that a federal grant of $1 billion made after 9/11 is basically a liability insurance policy against lawsuits that can not be awarded for claims.

Yesterday, before a sub-committee chaired by local U.S. Rep. Jerrold Nadler, City Attorney Michael Cardozo said that even if that money were turned over to victims, it wouldn’t get very far in compensating the more than 10,000 people who are suing the city.

Instead, the city supports a bill submitted by several members of the New York congressional delegation, calling for more generous and open-ended federal relief.

Also testifying was a researcher from the U.S. General Accountability Office, who reported on prior compensation funds, including one set up for miners and another for people exposed to radiation. She said the common denominator is that these funding programs typically last longer and cost much more than expected.

For WNYC, I’m Fred Mogul.