A victim compensation program is a state-run fund that reimburses people harmed by violent crime for out-of-pocket costs like medical bills, counseling, lost wages, and funeral expenses. Every state operates one, and all of them draw partial funding from the federal Crime Victims Fund created by the Victims of Crime Act of 1984. The rules differ from state to state, but the federal statute sets a common floor that every participating program has to meet.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation If you were injured, if someone close to you was killed, or if you paid expenses for a victim, you can apply.
Who Can Apply
The clearest case is someone directly injured by a violent crime. Beyond that, surviving family members and dependents of a homicide victim can claim funeral costs and loss of financial support. Someone who paid out of pocket for a victim’s medical care usually qualifies even if they weren’t physically harmed. A parent filing for a minor, or a legal guardian filing for an incapacitated adult, is treated as an eligible claimant.
Federal law requires every program to cover victims of “criminal violence, including drunk driving and domestic violence.”1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation Aggravated assault, sexual assault, robbery, kidnapping, homicide, hit-and-run crashes, and child abuse qualify in virtually every state. Some states also cover stalking, human trafficking, and terrorism-related injuries. An arrest or conviction is not required. What matters is that the conduct would be prosecuted as a crime.
One point worth knowing if you share a home or family tie with the person who hurt you: federal law bars programs from denying a claim solely because the victim is related to the offender or lives in the same household. Programs can impose rules to keep the offender from benefiting, but a family connection alone is not disqualifying. Programs must also treat nonresidents the same as residents, so if you were visiting a state when the crime occurred, you file with that state.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation
Claims are denied when the applicant was involved in the criminal activity that produced the injury. Most states also reduce or deny awards when the victim’s own conduct substantially contributed to the incident.
What You Can Be Reimbursed For
Every state program must cover three categories at minimum: medical costs from physical injuries (including mental health counseling), lost wages tied to those injuries, and funeral expenses for victims who died.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation Most states add dental work, prescriptions, prosthetic devices, eyeglasses, rehabilitation, crime-scene cleanup, and relocation costs for victims who need to move for safety.
Mental health counseling is covered in every state and often represents the largest category of claims. Some states cap counseling at a set number of sessions or a dollar amount; others leave it open-ended as long as treatment relates to the crime. Confirm your state’s limits before starting treatment.
Lost wage reimbursement requires employer documentation of your normal pay rate and the time you missed. Most states cap the weekly payment and set an overall maximum. The program bridges a recovery gap. It isn’t long-term disability insurance.
What the Program Will Not Pay
Property damage is the biggest surprise. Federal law carves it out of the grant calculation, and state programs follow suit.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation If someone breaks into your home and steals electronics or damages your car during an assault, those losses are not reimbursable through victim compensation. Homeowner’s or auto insurance, or a civil suit against the offender, is the route for property. One exception: prosthetic devices, eyeglasses, and dental devices damaged during the crime are classed as medical expenses and are covered.
Pain and suffering, emotional distress damages, and attorney fees are also excluded from almost every program. These are reimbursement programs for documented costs, not awards for subjective harm.
Reporting the Crime and Cooperating With Police
You have to report the crime and cooperate with the investigation. The federal statute frames this as “promoting victim cooperation with the reasonable requests of law enforcement authorities.”1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation In practice that means filing a police report and being available to answer investigators’ questions.
Reporting deadlines run from 72 hours to 30 days in most states. Extensions are common for good cause, and federal law now requires programs to make exceptions when a victim’s age, physical condition, psychological state, cultural or linguistic barriers, or safety concerns made timely reporting difficult.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation A growing number of states have dropped the police reporting requirement entirely for sexual assault and domestic violence claims.
When You Have to File
Most states require applications within one to three years of the crime, with some allowing longer. This deadline is separate from the police reporting deadline. Missing it is one of the most common reasons claims are denied, and it is entirely preventable.
Extensions exist. Many states toll the clock for minors so it starts at age 18. Federal law now requires programs to waive filing deadlines when the delay resulted from pending DNA testing or a delayed DNA profile match.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation Physical or mental incapacity and other good-cause justifications can also support a late filing. If you think your window has closed, file anyway and explain the circumstances. The worst outcome is the same denial you would get by not filing.
Insurance and Other Sources Come First
Victim compensation is a payer of last resort. If health insurance covers a hospital bill, the program does not reimburse it. Workers’ compensation pays first when the crime happened on the job. Auto insurance pays first after a drunk driving crash. The program fills gaps: deductibles, copays, uncovered treatment, and expenses you incur when you have no coverage.
Your application has to show that you already submitted claims to every applicable insurer. The program reviews Explanation of Benefits statements and other records to confirm private coverage was applied before issuing payment. This slows the process. File those insurance claims early.
How Much You Can Receive
Every state sets a cap on total compensation per claim. Caps typically range from $25,000 to $75,000, and a handful of programs set a higher ceiling. Individual categories often have their own sub-limits. Funeral reimbursement, for example, is commonly capped separately from medical expenses. Check your state’s schedule of benefits before assuming what’s available.
What to Include in Your Application
A complete filing usually contains:
- The police report number, which the board uses to verify the crime and review the official narrative.
- Itemized medical bills from every hospital, clinic, therapist, dentist, and pharmacy that treated crime-related injuries.
- Insurance Explanation of Benefits documents showing you already sought payment from your primary insurer.
- Employer verification for lost wages, including pay rate and days missed.
- Itemized funeral invoices, if applicable.
- The signed application form from your state attorney general’s website or victim services portal.
Details on the application should match the police report and medical records. Inconsistencies between your incident description and the officer’s narrative create delays. Check dates, locations, and sequence before submitting.
After You Submit
Most states accept applications online, by mail, or in person at a victim services office. No filing fee is charged. The program assigns a claim number and a claims examiner reviews eligibility and documentation. Review typically takes 60 to 120 days, longer for complex cases or heavy claim volumes. You will receive written notice of the decision and the approved amount. Responding quickly to any request for additional documents keeps things on track.
Emergency Awards
Many programs offer expedited payments for immediate hardship: prescriptions, emergency relocation, lock replacement, funeral deposits. Emergency awards are capped well below the overall program maximum and are deducted from the final approved amount. Ask about emergency funding when you submit, or contact the claims intake unit directly. Decisions on emergency requests often come within days.
Appeals
If your claim is denied or the amount is lower than you expected, you can appeal. The process typically involves a written request for reconsideration or a hearing before the compensation board. Watch the appeal deadline in your denial letter closely; missing it can forfeit the right to challenge the decision. Common grounds include new documentation, correction of factual errors, and challenges to how eligibility rules were applied.
If You Also Get Restitution or Sue the Offender
Court-ordered restitution and victim compensation address the same expenses, and you cannot collect from both for the same loss. When a court orders restitution, those payments may reimburse the state program for amounts it already paid you. If you receive compensation first and later recover from the offender in a civil case, most programs require notice and have a subrogation right to recoup what they paid from your proceeds. This prevents double recovery.1Office of the Law Revision Counsel. 34 USC 20102 – Crime Victim Compensation
Is the Award Taxable
Compensation payments are not taxable income. The IRS treats them as welfare-type payments and states that payments from a state crime victims fund are not included in the recipient’s income.2Internal Revenue Service. Publication 525, Taxable and Nontaxable Income You don’t report the award on your federal return.
One wrinkle: if you already deducted a medical expense on a prior year’s return and later receive a compensation award covering that same expense, you may need to report the overlapping amount as income in the year you receive it. A tax professional can sort out the adjustment if this applies to you.
Why Benefit Levels Can Change
The Crime Victims Fund that partially finances state programs is paid for by fines, penalties, and forfeited bonds collected in federal criminal cases rather than by general tax revenue.3Office of the Law Revision Counsel. 34 USC 20101 – Crime Victims Fund Its balance has swung sharply, from $13.1 billion in fiscal year 2017 to roughly $1 billion by fiscal year 2023.4Congress.gov. The Fluctuating Balance of the Crime Victims Fund The balance has risen since 2023, but ongoing solvency concerns mean caps and covered-expense lists can tighten over time. None of this changes your right to file. It explains why some state programs have narrowed benefits recently, and why checking your state’s current schedule before you apply is worth the few minutes it takes.