Opening Statement of the Hon. J.D. Hayworth, a Representative in Congress from the State of Arizona

Testimony Before the Subcommittee on Oversight
of the House Committee on Ways and Means

Hearing on Response by Charitable Organizations to the Recent Terrorist Attacks

November 8, 2001

Thank you, Mr. Chairman, for allowing me to participate in today’s hearing. As a former member of the Oversight Subcommittee, it is a pleasure to be here. I commend you for your outstanding leadership in investigating whether charities that are supposed to help the victims of the 9/11 terrorist attacks on our nation are actually fulfilling their mission.

Following the 9/11 terrorist attacks, Americans lifted their generosity to new heights, contributing over a billion dollars to relief funds for victims and their families. Yet it soon became clear that there were serious problems with the distribution of these funds.

Media reports suggest that of the over $1.2 billion raised by charities to date, only a small percentage - some estimate 10 percent or less - of those funds have reached the intended recipients. While the distribution of these funds is no doubt a complicated problem that defies simplistic solutions, it is equally true that many families are hurting and need help now. They are not getting it.

Countless Americans are asking why widows should have to beg for money from the charities that are supposed to be helping them. It’s a good question, one I hope we can help answer today.

Now there are lots of other difficult questions involved, many of which reflect a concern over how to balance the competing demands for speed and fairness. They include the important questions of how to calculate economic and noneconomic losses and how to determine which relatives will be entitled to submit a claim as the "personal representative" of the victim.

Still, even with these challenges, from my perspective, it is clear that charities haven’t done enough to help the victims and families of 9/11.

However, it is also clear that the public spotlight from the media, most notably Bill O’Reilly, and the prospect of congressional hearings have already caused some movement in the right direction. Involved charities have agreed to participate in a database set up by the New York Attorney General, who joins us here today. The Red Cross, which suggested it might use some of the funds that it received for victims and their families for other purposes, has apparently decided to increase payments to affected people.

Certainly, more can and should be done to ensure that those who were supposed to be the beneficiaries of this unprecedented charitable outpouring will be supported through this extremely difficult time in their lives. We have made some progress, and I look forward to the testimony and to hearing ideas for what else can be done to speed the donations to those who need them.

Thank you again, Mr. Chairman, for allowing me to participate in today’s hearing, and I yield back the balance of my time.