Tax for black lung benefits to go down without Build Back Better passage

Dec. 22—PIKEVILLE — The future of black lung benefits is in question after U.S. Sen. Joe Manchin announced Sunday he would not support the Build Back Better Act.

The legislation includes a four-year extension of the Black Lung Excise Tax, which is a source of revenue for the Black Lung Disability Trust Fund. The fund pays for medical benefits and provides a small monthly stipend to coal miners who are disabled by black lung disease, and to their surviving dependents.

In 2020, Kentucky families received $41 million from the Black Lung Disability Trust Fund.

The current Black Lung Excise Tax rate is set to expire at the end of 2021. Without an extension, the excise tax would be cut in half. The current rate coal companies must pay is 55 cents per ton of surface mined coal and $1.10 per ton of coal mined underground.

The fund is already more than $4 billion in debt.

Manchin, of West Virginia, also introduced the Black Lung Benefits Disability Trust Fund Act of 2021 in September. The act would extend the excise tax for 10 years, but the legislation hasn't moved.

For the last several years, the excise tax has gotten one-year extensions.

"If we don't get an extension through the Build Back Better Act, then it is going to be a struggle for those of us with black lung to see what happens to the fund. We don't know what will happen since we don't have a one year extension," said Gary Hairston, the president of the National Black Lung Association and a former coal miner with black lung in West Virginia.

Rebecca Shelton, director of policy and organizing for Appalachian Citizens' Law Center, represents miners trying to get black lung benefits. She said those miners are feeling disappointed and frustrated, and that the miners needing black lung benefits have been strung along.

Shelton said she and the miners are still hoping Build Back Better or other legislation to extend black lung benefits passes by the end of the year or early next year.

"Allowing the only source of revenue for the trust fund to lapse is really unacceptable. If BBBA doesn't pass, we urgently need all our lawmakers to get on board to get the ten-year extension bill over the finish line as soon as possible," Shelton said.

Shelton said the responsibility for the trust fund's revenue will shift from coal operators to general taxpayers if the extension isn't passed. If the fund has a short fall, it can borrow from the treasury, she said. Some of the fund's debt has already been forgiven, which was paid by taxpayers.

Shelton said she doesn't know what would sway Manchin to support Build Back Better to get the excise tax extended.

United Mine Workers of America released a statement in support of the black lung benefits included in the Build Back Better legislation.

"We are disappointed that the bill will not pass," UMWA International President Cecil E. Roberts said. "We urge Sen. Manchin to revisit his opposition to this legislation and work with his colleagues to pass something that will help keep coal miners working, and have a meaningful impact on our members, their families, and their communities."

West Virginia AFL-CIO President Josh Sword said the legislation preserves the strained Black Lung Disability Trust Fund, and said he hopes Manchin will continue to negotiate with leaders in Washington.

Shelton said continuous efforts to get the excise tax extended has prevented her from focusing on other policies to support those with black lung. One is the long-term solvency of the trust fund, since as the coal industry declines, the fund declines. She said even though fewer people are filing for black lung claims, there is still a need for long-term benefits.

Black lung is a progressive disease and may not show up until years after leaving the coal mine, she said. In Eastern Kentucky and Central Appalachia, higher levels of silica dust in the mines has increased the number of black lung incidents in the region and has caused a severe form of black lung disease in younger miners. Those with black lung are likely to need benefits for many years to come, she said.

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