Improving pilot program on acceptance by the Department of Veterans Affairs of donated facilities and related improvements

(a)

In general

Section 2 of the Communities Helping Invest through Property and Improvements Needed for Veterans Act of 2016 (Public Law 114–294; 38 U.S.C. 8103 note) is amended—(1)in subsection (b)(1)(A), by inserting or for which funds are available from the Construction, Minor Projects, or Construction, Major Projects appropriations accounts;(2)in subsection (e)(1)—(A)in subparagraph (A)—(i)by striking The Secretary and inserting Except as otherwise provided in this paragraph, the Secretary; and(ii)by inserting or funds already generally available in the Construction, Minor Projects, or Construction, Major Projects appropriations accounts after that are in addition to the funds appropriated for the facility;(B)in subparagraph (B), by striking subparagraph (A) and inserting this paragraph;(C)by redesignating subparagraph (B) as subparagraph (F); and(D)by inserting after subparagraph (A) the following new subparagraphs:

(B)

Unobligated amounts

The Secretary may provide additional funds to help an entity described in subsection (a)(2) finance, design, or construct a facility in connection with real property and improvements to be donated under the pilot program and proposed to be accepted by the Secretary under subsection (b)(1)(B) if—(i)the Secretary determines that doing so is in the best interest of the Department and consistent with the mission of the Department; and(ii)funding provided under this subparagraph—(I)is in addition to amounts that have been appropriated for the facility before the date on which the Secretary and the entity enter into a formal agreement under subsection (c) for the construction and donation of the real property and improvements; and(II)is derived only from amounts that—(aa)are unobligated balances available in the Construction, Minor Projects, or Construction, Major Projects appropriations accounts of the Department that—(AA)are not associated with a specific project; or(BB)are amounts that are associated with a specific project, but are unobligated because they are the result of bid savings; and(bb)were appropriated to such an account before the date described in subclause (I).(C)

Escalation clauses

(i)

In general

The Secretary may include an escalation clause in a formal agreement under subsection (c) that authorizes an escalation of not more than an annual amount based on a rate established in the formal agreement and mutually agreed upon by the Secretary and an entity to account for inflation for an area if the Secretary determines, after consultation with the head of an appropriate Federal entity that is not part of the Department, that such escalation is necessary and in the best interest of the Department.(ii)

Use of existing amounts

The Secretary may obligate funds pursuant to clause (i) in connection with a formal agreement under subsection (c) using amounts that—(I)are unobligated balances available in the Construction, Minor Projects, or Construction, Major Projects appropriations accounts of the Department that—(aa)are not associated with a specific project; or(bb)are amounts that are associated with a specific project, but are unobligated because they are the result of bid savings; and(II)were appropriated to such an account before the date on which the Secretary and the entity entered into the formal agreement.(D)

Availability

Unobligated amounts shall be available pursuant to subparagraphs (B) and (C) only to the extent and in such amounts as provided in advance in appropriations Acts subsequent to date of the enactment of the CHIP-IN Improvement Act of 2022, subject to subparagraph (E).(E)

Limitation

Unobligated amounts made available pursuant to subparagraphs (B) and (C) may not exceed 40 percent of the amount appropriated for the facility before the date on which the Secretary and the entity entered into a formal agreement under subsection (c).

; and

(3)in subsection (j)—(A)by striking

Rule

and inserting

Rules

;(B)by striking Nothing in and inserting the following:

(1)

Entering arrangements and agreements

Nothing in

; and

(C)by adding at the end the following new paragraph:

(2)

Treatment of assistance

Nothing provided under this section shall be treated as Federal financial assistance as defined in section 200.40 of title 2, Code of Federal Regulations, as in effect on February 21, 2021.

(b)

Amendments to existing agreements

Each agreement entered into under section (2)(c) of such Act before the date of the enactment of this Act that was in effect on the date of the enactment of this Act may be amended to incorporate terms authorized by subparagraphs (B) and (C) of section 2(e)(1) of such Act, as added by subsection (a)(2)(D) of this section.