Air Transportation Safety and System Stabilization Act
PL 107-42 (H.R.2926), enacted 09/22/2001

115 STAT. 230 
PUBLIC LAW 107-42—SEPT. 22, 2001 
Sept. 22, 2001 
[H.R. 2926] 
Air 
Transportation 
Safety and 
System 
Stabilization Act. 
49 u s e 40101 
note. 
Public Law 107-42 
107th Congress 
An Act 
To preserve the continued viability of the United States air transportation system. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Air Transportation Safety and 
System Stabilization Act". 
TITLE I—AIRLINE STABILIZATION 
49 u s e 40101 
note. 
President. 
Terrorism. 
SEC. 101. AVIATION DISASTER RELIEF. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
the President shall take the following actions to compensate air 
carriers for losses incurred by the air carriers as a result of the 
terrorist attacks on the United States that occurred on September 
11, 2001: 
(1) Subject to such terms and conditions as the President 
deems necessary, issue Federal credit instruments to air car-
riers that do not, in the aggregate, exceed $10,000,000,000 
and 
provide 
the 
subsidy 
amounts 
necessary 
for 
such 
instruments in accordance with the provisions of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 
(2) Compensate air carriers in an aggregate amount equal 
to $5,000,000,000 for— 
(A) direct losses incurred beginning on September 11, 
2001, by air carriers as a result of any Federal ground 
stop order issued by the Secretary of Transportation or 
any subsequent order which continues or renews such a 
stoppage; and 
(B) the incremental losses incurred beginning Sep-
tember 11, 2001, and ending December 31, 2001, by air 
carriers as a direct result of such attacks. 
(b) 
EMERGENCY 
DESIGNATION.—Congress 
designates 
the 
amount of new budget authority and outlays in all fiscal years 
resulting from this title as an emergency requirement pursuant 
to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901(e)). Such amount shall be avail-
able only to the extent that a request, that includes designation 
of such amount as an emergency requirement as defined in such 
Act, is transmitted by the President to Congress. 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 231 
SEC. 102. Am TRANSPORTATION STABILIZATION BOARD. 
49 USC 40101 
(a) DEFINITIONS.—In this section, the following definitions 
apply: 
(1) BOARD.—The term "Board" means the Air Transpor-
tation Stabilization Board established under subsection (b). 
(2) FINANCIAL OBLIGATION.—^The term "financial obligation" 
means any note, bond, debenture, or other debt obligation 
issued by an obligor in connection with financing under this 
section and section 101(a)(1). 
(3) LENDER.—^The term "lender" means any non-Federal 
qualified institutional buyer (as defined by section 230.144A(a) 
of title 17, Code of Federal Regulations (or any successor regula-
tion) known as Rule 144A(a) of the Securities and Exchange 
Commission smd issued under the Security Act of 1933, 
including— 
(A) a qualified retirement plan (as defined in section 
4974(c) of the Internal Revenue Code of 1986 (26 U.S.C. 
4974(c)) that is a qualified institutional buyer; and 
(B) a governmental plan (as defined in section 414(d) 
of the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) 
that is a qualified institutional buyer. 
(4) OBLIGOR.—The term "obligor" means a party primarily 
liable for payment of ihe principal of or interest on a Federal 
credit instrument, which party may be a corporation, partner-
ship, joint venture, trust, or governmental entity, agency, or 
instrumentaUty. 
(b) AIR TRANSPORTATION STABILIZATION BOARD.— 
(1) ESTABLISHMENT.—^There is established a board (to be 
known as the "Air Transportation Stabilization Board") to 
review and decide on applications for Federal 
credit 
instruments under section 101(a)(1). 
(2) COMPOSITION.—The Board shall consist of— 
(A) the Secretary of Transportation or the designee 
of the Secretary; 
(B) the Chairman of the Board of Governors of the 
Federal Reserve System, or the designee of the Chairman, 
who shall be the Chair of the Board; 
(C) the Secretary of the Treasury or the designee of 
the Secretary; and 
(D) the Comptroller General of the United States, or 
the designee of the Comptroller General, as a nonvoting 
member of the Board. 
(c) FEDERAL CREDIT INSTRUMENTS.— 
-
(1) IN GENERAL.—The Board may enter into agreements 
with 1 or more obligors to issue Federal credit instruments 
under section 101(a)(1) if the Board determines, in its discre-
tion, that— 
(A) the obligor is an air carrier for which credit is 
not reasonably available at the time of the transaction; 
(B) the intended obligation by the obligor is prudently 
incurred; and 
(C) such agreement is a necessary part of maintaining 
a safe, efficient, and viable commercial aviation system 
in the United States. 
(2) TERMS AND LIMITATIONS.— 
(A) FORMS; TERMS AND CONDITIONS.—A Federal credit 
instrument shall be issued under section lOl(aXl) in such 
115 STAT. 232 
PUBLIC LAW 107-42—SEPT. 22, 2001 
Deadline. 
Regulations. 
49 use 40101 
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form and on such terms and conditions and contain such 
covenants, representatives, warranties, and requirements 
(including requirements for audits) as the Board deter-
mines appropriate. 
(B) PROCEDURES.—Not later than 14 days after the 
date of enactment of this Act, the Director of the Office 
of Management and Budget shall issue regulations setting 
forth procedures for application and minimum require-
ments, which may be supplemented by the Board in its 
discretion, for the issuance of Federal credit instruments 
under section 101(a)(1). 
(d) FINANCIAL PROTECTION OF GOVERNMENT.— 
(1) IN GENERAL.—To the extent feasible and practicable, 
the Board shall ensure that the Government is compensated 
for the risk assumed in making guarantees under this title. 
(2) GOVERNMENT PARTICIPATION IN GAINS.—To the extent 
to which any participating corporation accepts financial assist-
ance, in the form of accepting the proceeds of any loans guaran-
teed by the Government under this title, the Board is author-
ized to enter into contracts under which the Government, 
contingent on the financial success of the participating corpora-
tion, would participate in the gains of the participating corpora-
tion or its security holders through the use of such instruments 
as warrants, stock options, common or preferred stock, or other 
appropriate equity instruments. 
(3) DEPOSIT IN TREASURY.—All amounts collected by the 
Secretary of the Treasury under this subsection shall be depos-
ited in the Treasury as miscellaneous receipts. 
SEC. 103. SPECIAL RULES FOR COMPENSATION. 
(a) DOCUMENTATION.—Subject to subsection (b), the amount 
of compensation payable to an air carrier under section 101(a)(2) 
may not exceed the amount of losses described in section 101(a)(2) 
that the air carrier demonstrates to the satisfaction of the President, 
using sworn financial statements or other appropriate data, that 
the air carrier incurred. The Secretary of Transportation and the 
Comptroller General of the United States may audit such state-
ments and may request any information that the Secretary and 
the Comptroller General deems necessary to conduct such audit. 
(b) MAXIMUM AMOUNT OF COMPENSATION PAYABLE PER AIR 
CARRIER.—The maximum total amount of compensation payable 
to an air carrier under section 101(a)(2) may not exceed the lesser 
of— 
(1) the amount of such air carrier's direct and incremental 
losses described in section 101(a)(2); or 
(2) in the case of— 
(A) flights involving passenger-only or combined pas-
senger and cargo transportation, the product of— 
(i) $4,500,000,000; and 
(ii) the ratio of— 
(I) the available seat miles of the air carrier 
for the month of August 2001 as reported to the 
Secretary; to 
(II) the total available seat miles of all such 
air carriers for such month as reported to the 
Secretary; and 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 233 
(B) flights involving cargo-only transportation, the 
product of— 
(i) $500,000,000; and 
(ii) the ratio of— 
(I) the revenue ton miles or other auditable 
measure of the air carrier for cargo for the latest 
quarter for which data is available as reported 
to the Secretary; to 
(II) the total revenue ton miles or other 
auditable measure of all such air carriers for cargo 
for such quarter as reported to the Secretary. 
(c) PAYMENTS.—^The President may provide compensation to 
air carriers under section 101(a)(2) in 1 or more payments up 
to the amount authorized by this title. 
SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION. 
(a) IN GENERAL.—The President may only issue a Federal credit 
instrument under section 101(a)(1) to an air carrier after the air 
carrier enters into a legally binding agreement with the President 
that, during the 2-year period beginning September 11, 2001, and 
ending September 11, 2003, no officer or employee of the air carrier 
whose total compensation exceeded $300,000 in calendar year 2000 
(other than an employee whose compensation is determined through 
an existing collective bargaining agreement entered into prior to 
September 11, 2001>— 
(1) will receive from the air carrier total compensation 
which exceeds, during any 12 consecutive months of such 2-
year period, the total compensation received by the officer or 
employee from the air carrier in calendar year 2000; and 
(2) will receive from the air carrier severance pay or other 
benefits upon termination of employment with the air carrier 
which exceeds twice the maximum total compensation received 
by the officer or employee from the air carrier in calendar 
year 2000. 
(b) TOTAL COMPENSATION DEFINED.—In this section, the term 
"total compensation" includes salary, bonuses, awards of stock, and 
other financial benefits provided by an air carrier to an officer 
or employee of the air carrier. 
SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE. 
(a) ACTION OF SECRETARY.—The Secretary of Transportation 
should take appropriate action to ensure that all communities that 
had scheduled air service before September 11, 2001, continue 
to receive adequate air transportation service and that essential 
air service to small communities continues without interruption. 
(b) ESSENTIAL AIR SERVICE.—There is authorized to be appro-
priated to the Secretary to carry out the essential air service pro-
gram under subchapter II of chapter 417 of title 49, United States 
Code, $120,000,000 for fiscal year 2002. 
(c) SECRETARIAL OVERSIGHT.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, the Secretary is authorized to require an air carrier 
receiving direct financial assistance under this Act to maintain 
scheduled air service to any point served by that carrier before 
September 11, 2001. 
(2) AGREEMENTS.—In appl5dng paragraph (1), the Secretary 
may require air carriers receiving direct financial assistance 
under this Act to enter into agreements which will ensure, 
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Appropri>>tion 
authorization. 
115 STAT. 234 
PUBLIC LAW 107-42—SEPT. 22, 2001 
to the maximum extent practicable, that all communities that 
had scheduled air service before September 11, 2001, continue 
to receive adequate air transportation service. 
Deadlines. 
SEC. 106. REPORTS. 
PrGsidGiit' 
49 use 40101 
(a) REPORT.—^Not later than February 1, 2001, the President 
note. 
shall transmit to the Committee on Transportation and Infrastruc-
ture, the Committee on Appropriations, and the Committee on 
the Budget of the House of Representatives and the Committee 
on Commerce, Science, and Transportation, the Committee on 
Appropriations, and the Committee on the Budget of the Senate 
a report on the financial status of the air carrier industry and 
the amounts of assistance provided under this title to each air 
carrier. 
(b) UPDATE.—Not later than the last day of the 7-month period 
following the date of enactment of this Act, the President shall 
update and transmit the report to the Committees. 
SEC. 107. DEFINITIONS. 
In this title, the following definitions apply: 
(1) AIR CARRIER.—The term "air carrier" has the meaning 
such term has under section 40102 of title 49, United States 
Code. 
(2) FEDERAL 
CREDIT INSTRUMENT.—^The term "Federal 
credit instrument" means any guarantee or other pledge by 
the Board issued under section 101(a)(1) to pledge the full 
faith and credit of the United States to pay all or part of 
any of the principal of and interest on a loan or other debt 
obligation issued by an obligor and funded by a lender. 
(3) INCREMENTAL LOSS.—The term "incremental loss" does 
not include any loss that the President determines would have 
been incurred if the terrorist attacks on the United States 
that occurred on September 11, 2001, had not occurred. 
TITLE II—AVIATION INSURANCE 
SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF INSUR-
ANCE COSTS. 
(a) IN GENERAL.—Section 44302 of title 49, United States Code, 
is amended— 
(1) in subsection (a)(1)— 
(A) by striking "subsection (b)" and inserting "sub-
section (c)"; and 
(B) by striking "foreign-flag aircraft—" and all that 
follows through the period at the end of subparagraph 
(B) and inserting "foreign-flag aircraft."; 
(2) by redesignating subsections (b), (c), and (d) as sub-
sections (c), (d), and (e), respectively; 
(3) by inserting after subsection (a) the following: 
"(b) REIMBURSEMENT OF INSURANCE COST INCREASES.— 
"(1) IN GENERAL.—The Secretary may reimburse an air 
carrier for the increase in the cost of insurance, with respect 
to a premium for coverage ending before October 1, 2002, 
against loss or damage arising out of any risk from the oper-
ation of an American aircraft over the insurance premium 
that was in effect for a comparable operation during the period 
beginning September 4, 2001, and ending September 10, 2001, 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 235 
as the Secretary may determine. Such reimbursement is subject 
to subsections (a)(2), (c), and (d) of this section and to section 
44303. 
"(2) PAYMENT FROM REVOLVING FUND.—^A reimbursement 
under this subsection shall be paid from the revolving fund 
established by section 44307. 
"(3) FURTHER CONDITIONS.—^The Secretary may impose 
such further conditions on insurance for which the increase 
in premium is subject to reimbursement under this subsection 
as the Secretary may deem appropriate in the interest of air 
commerce. 
"(4) 
TERMINATION 
OF AUTHORITY.—The 
authority 
to 
reimburse air carriers under this subsection shall expire 180 
days after the date of enactment of this paragraph."; 
(4) in subsection (c) (as so redesignated)— 
(A) in the first sentence by inserting ", or reimburse 
an air carrier under subsection (b) of this section," before 
"only with the approval"; and 
(B) in the second sentence— 
(i) by inserting "or the reimbursement" before "only 
after deciding"; and 
(ii) by inserting "in the interest of air commerce 
or national security or" before "to carry out the foreign 
policy"; and 
(5) in subsection (d) (as so redesignated) by inserting "or 
reimbursing an air carrier" before "under this chapter". 
(b) COVERAGE.— 
(1) IN GENERAL.—Section 44303 of such title is amended— 
(A) in the matter preceding paragraph (1) by inserting 
", or reimburse insurance costs, as" after "insurance and 
reinsurance"; and 
(B) in paragraph (1) by inserting "in the interest of 
air commerce or national security or" before "to carry out 
the foreign policy". 
(2) DISCRETION OF THE SECRETARY.—For acts of terrorism 
committed on or to an air carrier during the 180-day period 
following the date of enactment of this Act, the Secretary of 
Transportation may certify that the air carrier was a victim 
of an act of terrorism and in the Secretary's judgment, based 
on the Secretary's analysis and conclusions regarding the facts 
and circumstances of each case, shall not be responsible for 
losses suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that exceed 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act. If the Secretary so certifies, the air 
carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be responsible 
for any liability above such amount. No punitive damages may 
be awarded against an air carrier (or the Government taking 
responsibility for an air carrier under this paragraph) under 
a cause of action arising out of such act. 
(c) REINSURANCE.—Section 44304 of such title is amended— 
(1) by striking "(a) GENERAL AUTHORITY.—"; and 
(2) by striking subsection (b). 
(d) PREMIUMS.—Section 44306 of such title is amended— 
89-194 O - 03 - 9 QL 3 Part 1 
115 STAT. 236 
PUBLIC LAW 107-42—SEPT. 22, 2001 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; and 
(2) by inserting after subsection (a) the following: 
"(b) ALLOWANCES IN SETTING PREMIUM RATES FOR REINSUR-
ANCE.—In setting premium rates for reinsurance, the Secretary 
may make allowances to the insurance carrier for expenses incurred 
in providing services and facilities that the Secretary considers 
good business practices, except for payments by the air carrier 
for the stimulation or solicitation of insurance business.". 
(e) CONFORMING AMENDMENT.—Section 44305(b) of such title 
is amended by striking "44302(b)" and inserting "44302(c)". 
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SEC. 202. EXTENSION OF PROVISIONS TO VENDORS, AGENTS, AND SUB-
°ote. 
CONTRACTORS OF AIR CARRIERS. 
Notwithstanding any other provision of this title, the Secretary 
may extend any provision of chapter 443 of title 49, United States 
Code, as amended by this title, and the provisions of this title, 
to vendors, agents, and subcontractors of air carriers. For the 180-
day period beginning on the date of enactment of this Act, the 
Secretary may extend or amend any such provisions so as to ensure 
that the entities referred to in the preceding sentence are not 
responsible in cases of acts of terrorism for losses suffered by 
third parties that exceed the amount of such entities' liability 
coverage, as determined by the Secretary. 
TITLE III—TAX PROVISIONS 
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SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS; TREAT-
note. 
MENT OF LOSS COMPENSATION. 
(a) EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS.— 
(1) IN GENERAL.—In the case of an eligible air carrier, 
any airline-related deposit required under section 6302 of the 
Internal Revenue Code of 1986 to be made after September 
10, 2001, and before November 15, 2001, shall be treated for 
purposes of such Code as timely made if such deposit is made 
on or before November 15, 2001. If the Secretary of the Treasury 
so prescribes, the preceding sentence shall be applied by sub-
stituting for "November 15, 2001" each place it appears— 
(A) "January 15, 2002"; or 
(B) such earlier date after November 15, 2001, as such 
Secretary may prescribe. 
(2) ELIGIBLE AIR CARRIER.—^For purposes of this subsection, 
the term "eligible air carrier" means any domestic corporation 
engaged in the trade or business of transporting (for hire) 
persons by air if such transportation is available to the general 
public. 
(3) AIRLINE-RELATED DEPOSIT.—For purposes of this sub-
section, the term "airline-related deposit" means any deposit 
of— 
(A) taxes imposed by subchapter C of chapter 33 of 
such Code (relating to transportation by air); and 
(B) taxes imposed by chapters 21, 22, and 24 with 
respect to employees engaged in a trade or business 
referred to in paragraph (2). 
(b) TREATMENT OF LOSS COMPENSATION.—Nothing in any provi-
sion of law shall be construed to exclude from gross income under 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 237 
the Internal Revenue Code of 1986 any compensation received 
under section 101(a)(2) of this Act. 
TITLE IV—VICTIM COMPENSATION 
SEC. 401. SHORT TITLE. 
This title may be cited as the "September 11th Victim Com-
pensation Fund of 2001". 
SEC. 402. DEFINITIONS. 
In this title, the following definitions apply: 
(1) AIR CARRIER.—TTie term "air carrier" means a citizen 
of the United States undertaking by any means, directly or 
indirectly, to provide air transportation and includes employees 
and agents of such citizen. 
(2) AIR TRANSPORTATION.—^The term "air transportation" 
means foreign air transportation, interstate air transportation, 
or the transportation of mail by aircraft. 
(3) CLAIMANT.—The term "claimant" means an individual 
filing a claim for compensation under section 405(a)(1). 
(4) COLLATERAL SOURCE.—^The term "collateral source" 
means all collateral sources, including life insurance, pension 
funds, death benefit programs, and payments by Federal, State, 
or local governments related to the terrorist-related aircraft 
crashes of September 11, 2001. 
(5) ECONOMIC LOSS.—^The term "economic loss" means any 
pecuniary loss resulting from harm (including the loss of 
earnings or other benefits related to emplojnnent, medical 
expense loss, replacement services loss, loss due to death, burial 
costs, and loss of business or employment opportunities) to 
the extent recovery for such loss is aJlowed under applicable 
State law. 
(6) ELIGIBLE INDIVIDUAL.—^The term "eligible individual" 
means an individual determined to be eligible for compensation 
under section 405(c). 
(7) NONECONOMIC LOSSES.—The term "noneconomic losses" 
means losses for physical and emotional pain, 
suffering, 
inconvenience, physical impairment, mental anguish, disfigure-
ment, loss of enjojrment of life, loss of society and companion-
ship, loss of consortium (other than loss of domestic service), 
hedonic damages, injury to reputation, and all other nonpecu-
niary losses of any kind or nature. 
(8) SPECIAL MASTER.—The term "Special Master" means 
the Special Master appointed under section 404(a). 
SEC. 403. PURPOSE. 
It is the purpose of this title to provide compensation to any 
individual (or relatives of a deceased individual) who was physically 
injured or killed as a result of the terrorist-related aircraft crashes 
of September 11, 2001. 
I^C. 404. ADMINISTRATION. 
(a) IN GENERAL.—^The Attorney General, acting through a Spe-
cial Master appointed by the Attorney General, shall— 
(1) administer the compensation program established under 
this title; 
September 11th 
Victim 
Compensation 
Fund of 2001. 
Terrorism. 
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115 STAT. 238 
PUBLIC LAW 107-42—SEPT. 22, 2001 
(2) promulgate all procedural and substantive rules for 
the administration of this title; and 
(3) employ and supervise hearing officers and other 
administrative personnel to perform the duties of the Special 
Master under this title. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to pay the 
administrative and support costs for the Special Master in carrying 
out this title. 
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SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION. 
(a) FILING OF CLAIM.— 
(1) IN GENERAL.—^A claimant may file a claim for compensa-
tion under this title with the Special Master. The claim shall 
be on the form developed under paragraph (2) and shall state 
the factual basis for eligibility for compensation and the amount 
of compensation sought. 
(2) CLAIM FORM.— 
(A) IN GENERAL.—The Special Master shall develop 
a claim form that claimants shall use when submitting 
Electronic 
claims Under paragraph (1). The Special Master shall 
document. 
ensure that such form can be filed electronically, if deter-
mined to be practicable. 
(B) CONTENTS.—The form developed under subpara-
graph (A) shall request— 
(i) information from the claimant concerning the 
physical harm that the claimant suffered, or in the 
. case of a claim filed on behalf of a decedent information 
confirming the decedent's death, as a result of the 
terrorist-related aircraft crashes of September 11, 
2001; 
(ii) information from the claimant concerning any 
possible economic and noneconomic losses that the 
claimant suffered as a result of such crashes; and 
(iii) information regarding collateral sources of 
compensation the claimant has received or is entitled 
to receive as a result of such crashes. 
(3) LIMITATION.—No claim may be filed under paragraph 
(1) after the date that is 2 years after the date on which 
regulations are promulgated under section 407. 
(b) REVIEW AND DETERMINATION.— 
(1) REVIEW.—The Special Master shall review a claim sub-
mitted under subsection (a) and determine— 
(A) whether the claimant is an eligible individual under 
subsection (c); 
(B) with respect to a claimant determined to be an 
eligible individual— 
(i) the extent of the harm to the claimant, including 
any economic and noneconomic losses; and 
(ii) the amount of compensation to which the claim-
ant is entitled based on the harm to the claimant, 
the facts of the claim, and the individual circumstances 
of the claimant. 
(2) NEGLIGENCE.—^With respect to a claimant, the Special 
Master shall not consider negligence or any other theory of 
liability. 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 239 
(3) DETERMINATION.—Not later than 120 days after that Deadline. 
date on which a claim is filed under subsection (a), the Special Notification. 
Master shall complete a review, make a determination, and 
provide written notice to the claimant, with respect to the 
matters that were the subject of the claim under review. Such 
a determination shall be final and not subject to judicial review. 
(4) RIGHTS OF CLAIMANT.—^A claimant in a review under 
paragraph (1) shall have— 
(A) the right to be represented by an attorney; 
(B) the right to present evidence, including the presen-
tation of witnesses and documents; and 
(C) any other due process rights determined appro-
priate by the Special Master. 
(5) No PUNITIVE DAMAGES.—The Special Master may not 
include amounts for punitive damages in any compensation 
paid under a claim under this title. 
(6) COLLATERAL COMPENSATION.—The Special Master shall 
reduce the amount of compensation determined under para-
graph (l)(B)(ii) by the amount of the collateral source compensa-
tion the claimant has received or is entitled to receive as 
a result of the terrorist-related aircraft crashes of September 
11, 2001. 
(c) ELIGIBILITY.— 
(1) IN GENERAL.—^A claimant shall be determined to be 
an eligible individual for purposes of this subsection if the 
Special Master determines that such claimant— 
(A) is an individual described in paragraph (2); and 
(B) meets the requirements of paragraph (3). 
(2) INDIVIDUALS.—^A claimant is an individual described 
in this paragraph if the claimant is— 
(A) an individual who— 
(i) was present at the World Trade Center, (New 
York, New York), the Pentagon (Arlington, Virginia), 
or the site of the aircraft crash at Shanksville, Pennsyl-
vania at the time, or in the immediate aftermath, 
of the terrorist-related aircraft crashes of September 
11, 2001; and 
(ii) suffered physical harm or death as a result 
of such an air crash; 
(B) an individual who was a member of the flight 
crew or a passenger on American Airlines flight 11 or 
77 or United Airlines flight 93 or 175, except that an 
individual identified by the Attorney General to have been 
a participant or conspirator in the terrorist-related aircraft 
crashes of September 11, 2001, or a representative of such 
individual shall not be eligible to receive compensation 
under this title; or 
(C) in the case of a decedent who is an individual 
described in subparagraph (A) or (B), the personal rep-
resentative of the decedent who files a claim on behalf 
of the decedent. 
(3) REQUIREMENTS.— 
(A) SINGLE CLAIM.—Not more than one claim may be 
submitted under this title by an individual or on behalf 
of a deceased individual. 
(B) LIMITATION ON CIVIL ACTION.— 
115 STAT. 240 
PUBLIC LAW 107-42—SEPT. 22, 2001 
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(i) IN GENERAL.—Upon the submission of a claim 
under this title, the claimant waives the right to file 
' a civil action (or to be a party to an action) in any 
Federal or State court for damages sustained as a 
result of the terrorist-related aircraft crashes of Sep-
tember 11, 2001. The preceding sentence does not apply 
to a civil action to recover collateral source obligations. 
(ii) PENDING ACTIONS.—In the case of an individual 
who is a party to a civil action described in clause 
(i), such individual may not submit a claim under 
this title unless such individual withdraws from such 
action by the date that is 90 days after the date on 
which regulations are promulgated under section 407. 
SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Not later than 20 days after the date on 
which a determination is made by the Special Master regarding 
the amount of compensation due a claimant under this title, the 
Special Master shall authorize payment to such claimant of the 
amount determined with respect to the claimant. 
(b) 
PAYMENT 
AUTHORITY.—This 
title 
constitutes 
budget 
authority in advance of appropriations Acts and represents the 
obligation of the Federal Government to provide for the payment 
of amounts for compensation under this title. 
(c) ADDITIONAL FUNDING.— 
(1) IN GENERAL.—The Attorney General is authorized to 
accept such amounts as may be contributed by individuals, 
business concerns, or other entities to carry out this title, 
under such terms and conditions as the Attorney General may 
impose. 
(2) USE OF SEPARATE ACCOUNT.—In making payments 
under this section, amounts contained in any account containing 
funds provided under paragraph (1) shall be used prior to 
using appropriated amounts. 
SEC. 407. REGULATIONS. 
Not later than 90 days after the date of enactment of this 
Act, the Attorney General, in consultation with the Special Master, 
shall promulgate regulations to carry out this title, including regula-
tions with respect to— 
(1) forms to be used in submitting claims under this title; 
(2) the information to be included in such forms; 
(3) procedures for hearing and the presentation of evidence; 
(4) procedures to assist an individual in filing and pursuing 
claims under this title; and 
(5) other matters determined appropriate by the Attorney 
General. 
SEC. 408. LIMITATION ON AIR CARRIER LIABILITY. 
(a) IN GENERAL.—^Notwithstanding any other provision of law, 
liability for all claims, whether for compensatory or punitive dam-
ages, arising from the terrorist-related aircraft crashes of September 
11, 2001, against any air carrier shall not be in an amount greater 
than the limits of the liability coverage maintained by the air 
carrier. 
(b) FEDERAL CAUSE OF ACTION.— 
(1) AVAILABILITY OF ACTION.—There shall exist a Federal 
cause of action for damages arising out of the hijacking and 
PUBLIC LAW 107-42—SEPT. 22, 2001 
115 STAT. 241 
subsequent crashes of American Airlines flights 11 and 77, 
£ind United Airlines flights 93 and 175, on September 11, 
2001. Notwithstanding section 40120(c) of title 49, United 
States Code, this cause of action shall be the exclusive remedy 
for damages arising out of the hijacking £uid subsequent crashes 
of such flights. 
(2) SUBSTANTIVE LAW.—The substantive law for decision 
in any such suit shall be derived from the law, including 
choice of law principles, of the State in which the crash occurred 
unless such law is inconsistent with or preempted by Federal 
law. 
(3) JURISDICTION.—The United States District Court for 
the Southern District of New York shall have original and 
exclusive jurisdiction over all actions brought for any claim 
(including any claim for loss of property, personal injury, or 
death) resulting from or relating to the terrorist-related aircraft 
crashes of September 11, 2001. 
(c) EXCLUSION.—Nothing in this section shall in any way limit 
£uiy liabiUty of any person who is a knowing participant in any 
conspiracy to hijack any aircraft or commit any terrorist act. 
SEC. 409. RIGHT OF SUBROGATION. 
The United States shall have the right of subrogation with 
respect to any claim paid by the United States under this title. 
49 use 40101 
note. 
TITLE V—AIR TRANSPORTATION 
SAFETY 
SEC. 
501. 
INCREASED 
AIR 
TRANSPORTATION 
SAFETY. 
Congress 
affirms 
the 
President's 
decision 
to 
spend 
$3,000,000,000 on eiirline safety and security in conjunction with 
this Act in order to restore public confidence in the airline industry. 
SEC. 502. CONGRESSIONAL COMMITMENT. 
Congress is committed to act expeditiously, in consultation 
with the Secretary of Trguisportation, to strengthen airport security 
and take further measures to enhance the security of air travel. 
49 use 40101 
note. 
49 use 40101 
note. 
TITLE VI—SEPARABILITY 
SEC. 601. SEPARABILITY. 
If any provision of this Act (including any amendment made 
by this Act) or the application thereof to any person or circumstance 
is held invalid, the remsiinder of this Act (including any amendment 
49 use 40101 
note. 
115 STAT. 242 
PUBLIC LAW 107-42—SEPT. 22, 2001 
made by this Act) and the application thereof to other persons 
or circumstances shall not be affected thereby. 
Approved September 22, 2001. 
LEGISLATIVE HISTORY—H.R. 2926 (S. 1450): 
CONGRESSIONAL RECORD, Vol. 147 (2001): 
Sept. 21, considered and passed House and Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 37 (2001): 
Sept. 22, Presidential statement.