On December 23, Congress passed the final Fiscal Year 2023 appropriations bill just in time to avert a government shutdown. In a major win for NAPO and 9/11 responders and survivors across the country, an additional $1 billion in funding for the 9/11 World Trade Center Health Program (WTCHP) was included in the spending measure.  While this is short of the $3 billion we have been calling for, this money will allow the program to avert any cuts to services until at least FY 2027 and give us more time to achieve an agreement on long-term funding that will make the WTCHP whole.

NAPO worked with Senator Kirsten Gillibrand (D-NY) on an amendment to the Consolidated Appropriations Act, brokered with Senate Majority Leader Charles Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY), to provide $1 billion for the program and provide for research on the emerging mental and physical impacts of 9/11 on children.  The Senate considered a total of 17 amendments, including Gillibrand amendment, in the debate over the appropriations bill. The amendment passed by an overwhelming vote of 90-6. 

NAPO fought hard for the passage of the James Zadroga 9/11 Health and Compensation Act in 2010 and its reauthorization in 2015 to ensure our nation took care of the victims and first responders who are coping with 9/11-related chronic health conditions. James Zadroga, a New York City Police Department Detective and member of NAPO, died of respiratory disease caused by his exposure to toxic chemicals during rescue and recovery efforts at Ground Zero. Today, the WTCHP provides medical treatment and monitoring for over 120,000 9/11 responders and survivors who live in every State and in 434 out of 435 Congressional Districts.

Costs for the program and increases in participation by injured 9/11 responders and survivors have increased beyond what was projected in the 2015 extension. The WTCHP now faces a projected funding shortfall of $3.064 billion dollars over the next ten years because of those increased costs. This $1 billion in additional funding will delay any cuts to services through Fiscal 2027.  For the time being, 9/11 responders and survivors, who experienced and responded to the worst terrorist attack on our nation’s soil, will not have to worry about losing the health care they depend on.

NAPO thanks Senator Gillibrand for her dogged and steadfast efforts to get this vital funding for the WTCHP across the finish line.  We will work closely with the Senator next year to start laying the groundwork yet again for a permanent solution to address the remaining funding shortfall before the program has to consider service cuts.

NAPO’s Priority Retirement Provisions Included in FY 2023 Consolidated Appropriations Act

On December 23, Congress passed the Fiscal 2023 Consolidated Appropriations Act, which funds the federal government and all its departments, agencies, and programs through the rest of this fiscal year.  In a significant victory for NAPO and our members, our priority retirement provisions were passed as part of bill: the Putting First Responders First Act, the Police and Fire Healthcare Protection Act, and the Protecting Public Safety Employees’ Timely Retirement Act.

The Putting First Responders First Act codifies existing IRS regulations making public safety service-connected disability compensation exempt from Federal income taxes. While we pressed for this provision to be immediately enacted, the spending measure delays its enactment until the taxable years after December 31, 2026.

The Police and Fire Healthcare Protection Act improves the HELPS Retirees provision of the Pension Protection Act to help ensure all public pension plans are able to implement it to the benefit of their public safety retirees by removing the direct payment requirement.

Under the HELPS Retirees provision, qualified, retired public safety officers can use up to $3,000 annually from their pension funds tax-free, including defined benefit plans and defined contribution plans, to pay for qualified health insurance and long-term care insurance premiums. However, the money must go directly from the pension fund to the health or insurance company in order to get the tax-free benefit. This direct payment requirement has been a hindrance for many pension plans to participating in HELPS.  By removing the direct payment requirement, the pension fund can now send the money directly to the retiree to help pay for health and long-term care insurance premiums.

The Protecting Public Safety Employees' Timely Retirement Act modifies the eligible age for the exemption from the retirement plan early withdrawal penalty for public safety officers. It establishes the age eligibility at age 50 or 25 years of service under the plan, whichever is earlier.

Currently, the amounts a retired public safety officer withdraws from a retirement plan before reaching age 50 are called “early” or “premature” distributions and are subject to an additional 10 percent early withdrawal tax. The Protecting Public Safety Employees’ Timely Retirement Act allows an officer who has retired after 25 years of service, even if it is before age 50, to be exempt from the 10 percent withdrawal penalty.

While NAPO celebrates the inclusion of these provisions in the omnibus spending measure, we did not get a win on WEP reform, which was not included in this bill.  We will continue the fight to repeal both the GPO and WEP or at the very least achieve WEP reform next Congress.