WASHINGTON -- A bill that would have provided up to $7.4 billion in aid to people sickened by World Trade Center dust fell short in the House on Thursday, raising the possibility that the bulk of compensation for the ill will come from a legal settlement hammered out in the federal courts.

The bill would have provided free health care and compensation payments to 9/11 rescue and recovery workers who fell ill after working in the trade center ruins.

It failed to win the needed two-thirds majority, 255-159.

For weeks now, a judge and teams of lawyers have been urging 10,000 former ground zero workers to sign on to a court-supervised settlement that would split $713 million among people who developed respiratory problems and other illnesses after inhaling trade center ash.

The court deal shares some similarities with the aid program that the federal legislation would have created, but it involves far less money.