N.Y. to Lose $125 Million in 9/11 Aid

New Orleans should stash any cash they get in an offshore account.--Dictynna

By DEVLIN BARRETT, Associated Press WriterWed Nov 16, 7:08 AM ET

Congressional budget negotiators have decided to take back $125 million in Sept. 11 aid from New York, which had fought to keep the money to treat sick and injured ground zero workers, lawmakers said Tuesday.

New York officials had sought for months to hold onto the funding, originally meant to cover increased worker compensation costs stemming from the 2001 terror attacks.

But a massive labor and health spending bill moving fitfully through House-Senate negotiations would take back that funding, lawmakers said.

"It seems that despite our efforts the rescission will stand, very sadly, and that is something of a promise broken," said Rep. Vito Fossella (news, bio, voting record), R-N.Y. "We will try hard in the coming weeks, but ultimately Congress will have something of a black eye over this."

A spokeswoman for Rep. John Sweeney (news, bio, voting record), R-N.Y., said the congressman also had been told New York would lose the funding in whatever compromise version of the spending bill finally reaches the floor.