[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Veterans Affairs]
[From the U.S. Government Printing Office, www.gpo.gov]


                     THE BUDGET FOR FISCAL YEAR 1999

[[Page 813]]

 
                     DEPARTMENT OF VETERANS AFFAIRS

    The 1999 Budget provides $18,895 million in discretionary budget 
authority for veterans' health, benefits, and other services.

    DEPARTMENT OF VETERANS AFFAIRS' IMPLEMENTATION OF THE GOVERNMENT 
                       PERFORMANCE AND RESULTS ACT

    Fiscal Year 1999 will mark the first year of full implementation of 
the Government Performance and Results Act (GPRA). In preparing to meet 
this time line, in Fiscal Year 1997 the Department of Veterans Affairs 
(VA) completed a strategic plan covering Fiscal Years 1998 through 2003. 
The efforts required to prepare this plan helped strengthen VA's 
planning process. The Department's strategic plan was submitted to the 
Congress in September, 1997. In addition to providing general goals for 
each of VA's major programs, the plan looks across all VA programs to 
articulate department-wide cross-cutting goals. The strategic plan 
provides a comprehensive picture of what VA is striving to achieve and 
how progress will be measured.

    The 1999 Budget contains VA's initial annual performance plan, as 
required by GPRA. Performance information that was previously contained 
in the budget appendix is now contained in the VA performance plan. The 
performance plan contains specific performance goals within each program 
that support the broader general goals in the strategic plan. VA has 
integrated the annual performance plan requirements into its budget 
request to begin to draw a closer relationship between resources and 
performance. Resources to accomplish performance goals for a particular 
program may be provided through more than one appropriation account.

                                


 
                     VETERANS HEALTH ADMINISTRATION

                              Federal Funds

General and special funds:

                              Medical Care

                      (including transfer of funds)

    For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities; for furnishing, as 
authorized by law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs, including care and 
treatment in facilities not under the jurisdiction of the Department; 
and furnishing recreational facilities, supplies, and equipment; 
funeral, burial, and other expenses incidental thereto for beneficiaries 
receiving care in the Department; administrative expenses in support of 
planning, design, project management, real property acquisition and 
disposition, construction and renovation of any facility under the 
jurisdiction or for the use of the Department; oversight, engineering 
and architectural activities not charged to project cost; repairing, 
altering, improving or providing facilities in the several hospitals and 
homes under the jurisdiction of the Department, not otherwise provided 
for, either by contract or by the hire of temporary employees and 
purchase of materials; uniforms or allowances therefor, as authorized by 
5 U.S.C. 5901-5902; aid to State homes as authorized by 38 U.S.C. 1741; 
administrative and legal expenses of the Department for collecting and 
recovering amounts owed the Department as authorized under 38 U.S.C. 
chapter 17, and the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et 
seq.; and not to exceed $8,000,000 to fund cost comparison studies as 
referred to in 38 U.S.C. 8110(a)(5); [$17,057,396,000] $17,027,975,000, 
plus reimbursements: Provided, That of the funds made available under 
this heading, [$570,000,000] $635,000,000 is for the equipment and land 
and structures object classifications only, which amount shall not 
become available for obligation until August 1, [1998] 1999, and shall 
remain available until September 30, [1999] 2000: Provided further, That 
[of the amount made available under this heading, not to exceed 
$5,000,000 shall be for a study on the cost-effectiveness of contracting 
with local hospitals in east central Florida for the provision of non-
emergent inpatient health care needs of veterans] not to exceed 8.3 
percent of the funds available under this heading shall remain available 
until September 30, 2000.
     In addition, in conformance with Public Law 105-33 establishing the 
Department of Veterans Affairs Medical Care Collections Fund, such sums 
as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be 
transferred to this account, to remain available until expended for the 
purposes of this account. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1998.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............                       1           1
    Receipts:
02.01 Medical care collections..........                     688         677
                                           ---------   ---------  ----------
03.00 Offsetting collections............           1
04.00 Total: Balances and collections...           1         689         678
    Appropriation:
05.01 Medical care......................                    -688        -677
07.99 Total balance, end of year........           1           1           1
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01       Acute hospital care.........       5,038       4,820       4,458
00.02       Rehabilitative care.........         375         325         298
00.03       Psychiatric care............       1,384       1,294       1,200
00.04       Nursing home care...........       1,659       1,780       1,869
00.05       Subacute care...............         470         413         382
00.06       Residential care............         265         280         290
00.07       Outpatient care.............       5,851       6,807       7,600
00.08       Miscellaneous benefits and 
              services..................         707         714         725
00.09     CHAMPVA.......................          94          97         100
                                           ---------   ---------  ----------
00.91       Total operating expenses....      15,843      16,530      16,922
        Capital investment:
          Provision of veterans health 
              care:
01.01       Acute hospital care.........         418         412         298
01.02       Rehabilitative care.........          30          29          21
01.03       Psychiatric care............         106         104          75
01.04       Nursing home care...........          84          82          60
01.05       Subacute care...............          43          42          31
01.06       Residential care............          26          26          19
01.07       Outpatient care.............         481         472         341
01.08       Miscellaneous benefits and 
              services..................          40          39          28
01.09     CHAMPVA.......................           3           3           2
                                           ---------   ---------  ----------
01.91       Total capital investment....       1,231       1,209         875
                                           ---------   ---------  ----------
01.92     Total direct program..........      17,074      17,739      17,797
09.01 Reimbursable program..............          75         104         147
                                           ---------   ---------  ----------
10.00   Total obligations...............      17,149      17,843      17,944
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......         731         664         673
22.00 New budget authority (gross)......      17,088      17,849      17,852
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1           3           3
22.30 Unobligated balance expiring......          -8
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      17,812      18,516      18,528

[[Page 814]]

23.95 New obligations...................     -17,149     -17,843     -17,944
24.40 Unobligated balance available, end 
        of year: Uninvested.............         664         673         583
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................      17,013      17,057      17,028
40.25   Appropriation (special fund, 
          indefinite)...................                     688         677
                                           ---------   ---------  ----------
43.00     Appropriation (total).........      17,013      17,745      17,705
      Permanent:

        Spending authority from 
            offsetting collections:
68.00     Offsetting collections (cash).          76         104         147
68.45     Portion not available for 
            obligation (limitation on 
            obligations)................          -1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total)...................          75         104         147
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      17,088      17,849      17,852
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...       2,394       2,764       2,681
73.10 New obligations...................      17,149      17,843      17,944
73.20 Total outlays (gross).............     -16,677     -17,923     -17,822
73.40 Adjustments in expired accounts...        -102
73.45 Adjustments in unexpired accounts.          -1          -3          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...       2,764       2,681       2,800
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority      14,455      15,472      15,369
86.93 Outlays from current balances.....       2,147       2,347       2,306
86.97 Outlays from new permanent 
        authority.......................          75         104         147
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      16,677      17,923      17,822
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -40         -53         -75
88.40     Non-Federal sources...........         -36         -51         -72
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -76        -104        -147
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      17,012      17,745      17,705
90.00 Outlays...........................      16,602      17,819      17,675
---------------------------------------------------------------------------

    In accordance with the Government Performance and Results Act, VA 
Medical Care measures its performance through associated domains of 
value including: cost; access; technical quality; customer satisfaction; 
and functional status. Detailed performance goals can be found in the 
annual performance plan in VA's Budget Submission.

    Public Law 105-33, the Balanced Budget Act of 1997, established the 
Department of Veterans Affairs Medical Care Collection Fund (MCCF) and 
allowed VA to retain all collections from third party insurance 
companies, other copayments and related medical fees. The ability for VA 
to retain these nonappropriated funds is critical to VA's success in 
providing care to veterans. As the collections are earned and deposited 
in the fund, they are transferred to this account, as provided for by 
the appropriation, and used to enhance medical care provided to 
veterans. For 1999, VA estimates that over $677 million will be 
collected through this effort with revenues growing to over $993 million 
by 2003. To accomplish this growth, VA will begin to bill usual and 
customary charges for inpatient and outpatient procedures, identify more 
patients having insurance, and improve its debt collection efforts. The 
1999 budget includes a legislative proposal which will permanently 
extend current legal provisions due to expire in FY 2003. These 
provisions provide for: the collection of third party health insurance 
payments for care provided by the VA for service-connected veterans with 
nonservice connected conditions, copayments, and income verification 
provisions.

                                WORKLOAD

    Provision of Veterans Health Care--
        Acute hospital care.--Costs for 1999 are estimated to decrease 
    by $464 million for operating medical, neurological, surgical, 
    contract and State home hospital beds, reflecting the shift to 
    increased use of ambulatory care.
        Estimated operating levels are:

                                     1997 actual  1998 est.   1999 est.
  Patients treated..................     497,547     440,985     399,409
  Average daily census..............      10,461       8,523       6,964
  Average employment................      61,756      55,913      50,858

        Rehabilitative care.--A decrease of $34 million in 1999 is 
    estimated for the provision of rehabilitative care, including spinal 
    cord injury care.
        Estimated operating levels are:

                                     1997 actual  1998 est.   1999 est.
  Patients treated..................      18,224      16,142      14,563
  Average daily census..............       1,423       1,154         933
  Average employment................       5,293       4,653       4,068

        Psychiatric care.--A decrease of $121 million is estimated in 
    1999 for the inpatient care of veterans with problems related to 
    mental illness, including alcohol and drug problems.

                                     1997 actual  I997 est.   1999 est.
  Patients treated..................     147,117      13,312     117,564
  Average daily census..............       7,919       6,424       5,192
  Average employment................      21,064      18,907      16,852

        Nursing home care.--In 1999, an increase of $70 million is 
    estimated for the care of residents in VA nursing homes, contract 
    nursing homes and State nursing homes.
        Estimated operating levels are:

                                     1997 actual  1998 est.   1999 est.
  Patients treated..................      88,657      92,370      93,935
  Average daily census..............      33,805      34,088      34,611
  Average employment................      19,708      19,636      19,911

        Subacute care.--A decrease of $41 million is estimated in 1999 
    for the treatment of veterans who require a level of care between 
    acute and long-term care, as provided in VA hospital intermediate 
    bed sections.

                                     1997 actual  1998 est.   1999 est.
Patients treated....................      36,651      32,464      29,288
Average daily census................       3,844       3,118       2,520
Average employment..................       7,736       6,705       5,690

        Residential care.--An increase of $3 million is estimated in 
    1999 for the care of veterans in locations other than their own 
    homes, such as residential rehabilitation and domiciliary care 
    programs.

                                     1997 actual  1998 est.   1999 est.
Patients treated....................      38,650      40,282      40,282
Average daily census................       9,901      10,139      10,139
Average employment..................       3,766       3,853       3,808

        Outpatient care.--An increase of $686 million is estimated in 
    1999 for the cost of outpatient medical and dental care provided by 
    staff, physicians, and dentists participating under a fee basis 
    arrangement for certain eligible veterans.

              NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS

                                     1997 actual  1998 est.   1999 est.
  Medical visits (in thousands):
  Staff visits......................      30,436      32,761      34,703
  Fee visits........................       1,483       1,550       1,550
  Readjustment counseling...........         729         767         774
                                    ------------------------------------
        Total.......................      32,648      35,078      37,027
                                    ====================================

[[Page 815]]


  Dental:
    Staff:
      Examinations..................     270,743     275,000     275,000
      Treatments....................     152,955     155,000     155,000
                                    ------------------------------------
        Total.......................     423,698     430,000     430,000
                                    ====================================
    Fee: Cases completed............      17,577      18,000      18,000
                                    ====================================
  Average employment................      60,059      66,692      72,694
                                    ====================================

        Miscellaneous benefits and services.--This activity includes 
    items of nondirect medical care and treatment such as beneficiary 
    travel, care of the dead, operation of personnel quarters at medical 
    facilities, and the cost of furnishing supply, engineering, 
    housekeeping, and other administrative support services to other 
    departments on a nonreimbursable basis. No funding change is 
    estimated for 1999.

                                     1997 actual  1998 est.   1999 est.
  Average employment................       6,607       6,495       6,384

        Civilian health and medical program of the Department of 
    Veterans Affairs (CHAMPVA).--An increase of $2 million is estimated 
    in 1999 for private hospital and outpatient care for dependents and 
    survivors of certain veterans.

                                     1997 actual  1998 est.   1999 est.
  Average daily hospital census.....         154         150         150
  Outpatient (in thousands).........         838         840         840
  Average employment................         146         146         146

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       6,434       6,614       6,723
11.3      Other than full-time permanent         832         704         717
11.5      Other personnel compensation..         791         805         810
                                           ---------   ---------  ----------
11.9        Total personnel compensation       8,057       8,123       8,250
12.1    Civilian personnel benefits.....       1,894       1,958       2,006
13.0    Benefits for former personnel...         140         106          18
        Travel and transportation of 
            persons:
21.0      Employee travel...............          41          55          56
21.0      Beneficiary travel............         108         112         116
21.0      Interagency motor pool 
            payments....................          13          14          14
21.0      All other.....................          31          31          32
22.0    Transportation of things........          23          23          24
23.1    Rental payments to GSA..........          12          13          20
23.2    Rental payments to others.......          59          64          67
23.3    Communications, utilities, and 
          miscellaneous charges.........         469         509         528
24.0    Printing and reproduction.......           9          10          10
25.2    Other contractual services......       1,301       1,508       1,591
        Medical care:
25.6      Outpatient dental fees........          12          13          14
25.6      Medical and nursing fees......         285         297         309
25.6      Community nursing homes.......         284         296         318
25.6      Contract hospitalization......         145         151         157
25.6      Civilian Health and Medical 
            Program of the Department of 
            Veterans Affairs............          90          93          95
        Supplies and materials:
26.0      Supplies and materials........       2,551       2,817       2,929
26.0      Provisions....................          84          87          89
31.0    Equipment.......................         876         861         605
32.0    Land and structures.............         355         348         270
        Grants, subsidies, and 
            contributions:
41.0      Grants, subsidies, and 
            contributions...............         230         241         271
41.0      Grants to private 
            organizations...............           4           7           7
43.0    Interest and dividends..........           1           2           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      17,074      17,739      17,797
99.0  Reimbursable obligations..........          75         104         147
                                           ---------   ---------  ----------
99.9    Total obligations...............      17,149      17,843      17,944
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......     185,260     181,791     178,744
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         875       1,209       1,667
---------------------------------------------------------------------------

                                

                    Other Medical, Smoking Cessation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0166-2-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        25.2)...........................                                  87
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  87
23.95 New obligations...................                                 -87
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  87
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                  87
73.20 Total outlays (gross).............                                 -87
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  87
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  87
90.00 Outlays...........................                                  87
---------------------------------------------------------------------------

    This legislative proposal would authorize a new smoking-cessation 
program for any honorably discharged veteran who began smoking in the 
military. The program would be delivered by private providers on a per 
capita basis. Any veteran who began smoking in the military would be 
eligible for this new program to the extent that resources are 
available.

    A legislative proposal to authorize this program will be transmitted 
with the FY 1999 budget. Once this program is authorized, the 
Administration will submit a budget amendment requesting an 
appropriation of $87 million for this new activity.

                                

                     Medical and Prosthetic Research

    For necessary expenses in carrying out programs of medical and 
prosthetic research and development as authorized by 38 U.S.C. chapter 
73, to remain available until September 30, [1999, $272,000,000] 2000, 
$300,000,000, plus reimbursements. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
00.01     Medical research..............         193         230         229
00.02     Rehabilitation research.......          24          29          29
00.03     Health services research......          26          30          31
                                           ---------   ---------  ----------
00.91       Total operating expenses....         243         289         289
        Capital investment:
01.01     Medical research..............           7           7           8
01.02     Rehabilitation research.......           1           1           1
01.03     Health services research......           2           2           2
                                           ---------   ---------  ----------
01.91       Total capital investment....          10          10          11
                                           ---------   ---------  ----------

[[Page 816]]


01.92     Total direct program..........         253         299         300
09.01 Reimbursable program..............          46          46          46
                                           ---------   ---------  ----------
10.00   Total obligations...............         299         345         346
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          20          28           1
22.00 New budget authority (gross)......         309         318         346
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.30 Unobligated balance expiring......          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         328         346         347
23.95 New obligations...................        -299        -345        -346
24.40 Unobligated balance available, end 
        of year: Uninvested.............          28           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         262         272         300
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          47          46          46
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         309         318         346
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          79          94         124
73.10 New obligations...................         299         345         346
73.20 Total outlays (gross).............        -282        -315        -338
73.45 Adjustments in unexpired accounts.          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          94         124         132
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         183         200         220
86.93 Outlays from current balances.....          52          69          72
86.97 Outlays from new permanent 
        authority.......................          47          46          46
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         282         315         338
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -47         -46         -46
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         262         272         300
90.00 Outlays...........................         235         269         292
---------------------------------------------------------------------------

    Funding for Medical and Prosthetic Research is proposed as part of 
the Research Fund for America. This proposal highlights the 
Administration's priority of providing needed and sustained investments 
in important Federal research programs on a deficit neutral basis. A 
discussion of the Research Fund for America, and two other funds for the 
environment and transportation, can be found in Section II of the 
Budget.

    The Medical and Prosthetic Research account is comprised of the 
following three programs:

    Medical research.--This program is comprised of investigator-
initiated and special research. In addition to the broad spectrum of 
biomedical research projects, priority is given to research Acquired 
Immune Deficiency Syndrome and conditions that frequently occur among 
veterans such as aging, alcoholism, schizophrenia, delayed stress 
disorders and other mental illness, and spinal cord injury and tissue 
regeneration. Cooperative studies include surgical treatment of angina 
pectoris, adjunct treatment of diabetes, and relative potency and side-
effect liability of new and marketed sedatives.

    Rehabilitation research.--This program is dedicated to the 
development and application of science and technology to improve the 
care of physically disabled veterans through prostheses for the amputee, 
improved wheelchairs for the paralyzed, and better joint functions for 
the arthritic. It also includes care for those with visual, hearing, and 
speech disorders.

    Health services research.--This program provides support for health 
services projects at Department of Veterans Affairs medical centers for 
improving the effectiveness and economy of delivery of health services 
and improving the accessibility of services to veterans.

    In support of the research activities of these three programs, VA 
applies a variety of budgetary resources including: appropriations from 
the Medical Care account and reimbursements from the Department of 
Defense; grants from the National Institutes of Health; private 
proprietary sources; and, voluntary agencies which provide additional 
support for VA's researchers. The following table summarizes all 
budgetary resources for the Medical and Prosthetic Research account. 
Specific performance goals relating to Medical and Prosthetic Research 
are contained in VA's annual performance plan.

                     SUMMARY OF BUDGETARY RESOURCES

                        [In millions of dollars]

                                     1997 actual  1998 est.   1999 est.
Medical and prosthetic research 
appropriation.......................         262         272         300
Medical care appropriation..........         320         332         366
Federal grants (NIH)................         226         234         258
Other grants (voluntary agencies, 
private proprietary)................         156         162         179
DOD reimbursements..................          15          15          0*
                                    ------------------------------------
      Total budgetary resources.....         979       1,015       1,103
                                    ====================================
    *DoD reimbursements for FY 1999 are unknown.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          34          36          39
11.3      Other than full-time permanent          67          67          75
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         105         107         118
12.1    Civilian personnel benefits.....          26          26          29
13.0    Benefits for former personnel...           1           1           1
21.0    Employee travel.................           2           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
24.0    Printing and reproduction.......           1           1           1
25.5    Research and development 
          contracts.....................          86         115         106
26.0    Supplies and materials..........          21          34          31
31.0    Equipment.......................          10          12          11
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         253         299         300
99.0  Reimbursable obligations..........          46          46          46
                                           ---------   ---------  ----------
99.9    Total obligations...............         299         345         346
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,430       2,428       2,580
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         527         570         579
---------------------------------------------------------------------------

                                

       Medical Administration and Miscellaneous Operating Expenses

    For necessary expenses in the administration of the medical, 
hospital, nursing home, domiciliary, construction, supply, and research 
activities, as authorized by law; administrative expenses in support of 
planning, design, project management, architectural, engineering, real 
property acquisition and disposition, construction and renovation of any 
facility under the jurisdiction or for the use of the Department

[[Page 817]]

of Veterans Affairs, including site acquisition; engineering and 
architectural activities not charged to project cost; and research and 
development in building construction technology; [$59,860,000] 
$60,000,000, plus reimbursements. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: Integrated 
        health care system 
        administration..................          61          60          60
                                           ---------   ---------  ----------
10.00   Total obligations...............          61          60          60
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          61          60          60
23.95 New obligations...................         -61         -60         -60
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          61          60          60
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          13          10          10
73.10 New obligations...................          61          60          60
73.20 Total outlays (gross).............         -63         -60         -60
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          10          10          10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          53          55          55
86.93 Outlays from current balances.....          10           5           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          63          60          60
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          61          60          60
90.00 Outlays...........................          63          60          60
---------------------------------------------------------------------------

    Supervision and administration of VA's comprehensive and integrated 
healthcare system.--Central office staff elements provide executive 
direction for all Departmental medical and construction programs through 
program development, implementation, and the administration of policies, 
plans, and objectives.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          35          37          37
11.3    Other than full-time permanent..           2           3           3
11.5    Other personnel compensation....           2           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          39          42          42
12.1  Civilian personnel benefits.......           8           6           7
13.0  Benefits for former personnel.....           2
21.0  Travel and transportation of 
        persons: employee travel........           1           1           1
23.1  Rental payments to GSA............           5           5           5
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1
25.2  Other services....................           3           3           3
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          61          60          60
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         569         556         540
---------------------------------------------------------------------------

                                

                 Health Professional Scholarship Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0163-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           4           2
73.20 Total outlays (gross).............          -2          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           2           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2           2
---------------------------------------------------------------------------

    Health professional scholarship.--To assist in the recruitment and 
retention of staff, this program provided grants for tuition, stipend, 
and other educational expenses for eligible students in programs leading 
to a degree in nursing or other allied health disciplines.

    No appropriation for this account was requested in FY 1998 and none 
is requested for FY 1999.

                                

                    Medical Care Cost Recovery Fund 

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         528         486
    Receipts:
02.01 Medical cost recovery.............          65        -486
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         593
    Appropriation:
05.01 Medical care cost recovery fund...        -107
07.99 Total balance, end of year........         486
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Operating expenses................         111
00.10 Capital investment................           2
                                           ---------   ---------  ----------
10.00   Total obligations...............         113
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          14           9
22.00 New budget authority (gross)......         107
22.40 Capital transfer to general fund..                      -9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         121
23.95 New obligations...................        -113
24.40 Unobligated balance available, end 
        of year: Uninvested.............           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.25 Appropriation (special fund, 
        indefinite).....................         107
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          23          13
73.10 New obligations...................         113
73.20 Total outlays (gross).............        -123
73.40 Adjustments in expired accounts...          -1         -13
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          16
86.97 Outlays from new permanent 
        authority.......................         107
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         123
----------------------------------------------------------------------------

[[Page 818]]



    Net budget authority and outlays:
89.00 Budget authority..................         107
90.00 Outlays...........................         123
---------------------------------------------------------------------------

    The Medical Care Cost Recovery (MCCR) Fund was established by the 
Omnibus Budget Reconciliation Act of 1990, P.L. 100-508. This Fund 
served as a depository for all third-party insurance collections. Of 
these funds, a portion was utilized to provide for FTE and other 
administrative costs associated with medical care cost recovery efforts. 
After providing the estimated cost of operations for the ensuing year, 
remaining funds were transferred to the Department of Treasury before 
January of the next year. Public Law 105-33, the Balanced Budget Act of 
1997, established the Medical Care Collections Fund (MCCF) and 
terminated MCCR and required that amounts collected or recovered after 
June 30, 1997 be deposited in the new fund. The amounts collected will 
be available only for: (1) furnishing VA medical care and services 
during any fiscal year, and (2) for VA expenses for identification, 
billing, auditing and collections of amounts owed the government.

    While the MCCR Fund reflects the program costs of both third-party 
and copayment activities, the receipts only reflect third-party 
recoveries. The table below presents the complete relationship between 
the costs of MCCR activities and the total collections, regardless of 
source, resulting from these activities.

                        [In millions of dollars]

                                         1997 actual   1998 est.   1999 est.
            Program activity

Third-party recoveries..................         450
Copayments and other collections........          70
                                           ---------   ---------  ----------
      Total collections.................         520
      Total program costs...............         113
Ratio of costs to collections (in 
 percent)...............................        21.7

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          57
11.5    Other personnel compensation....          15
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          72
12.1  Civilian personnel benefits.......          17
21.0  Travel and transportation of 
        persons.........................           3
23.3  Communications, utilities, and 
        miscellaneous charges...........           3
25.2  Other services....................           8
26.0  Supplies and materials............           8
31.0  Equipment.........................           2
                                           ---------   ---------  ----------
99.9    Total obligations...............         113
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
1011  Total compensable workyears: 
        Exempt Full-time equivalent 
        employment......................       2,239
---------------------------------------------------------------------------

                                

Public enterprise funds:

                    Medical Facilities Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating costs......           1           2           1
09.02 Reimbursable capital expenses.....           1           2           2
                                           ---------   ---------  ----------
09.09   Total reimbursable program......           2           4           3
                                           ---------   ---------  ----------
10.00   Total obligations...............           2           4           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           6           6           3
22.00 New budget authority (gross)......           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           8           6           3
23.95 New obligations...................          -2          -4          -3
24.40 Unobligated balance available, end 
        of year: Uninvested.............           6           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............           2
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...                                   2
73.10 New obligations...................           2           4           3
73.20 Total outlays (gross).............          -2          -2          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...                       2           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...           2           2           2
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                       2           2
---------------------------------------------------------------------------

    This account provides funds for the operating expenses of VA medical 
facilities furnishing nursing home care to certain veterans in receipt 
of pensions. Title 38 provides that a veteran with no spouse or child 
will only receive $90 per month in pension beginning the third full 
month following the month of admission to VA furnished nursing home 
care. The difference between the $90 the veteran receives and the amount 
otherwise authorized is transferred to this fund to assist in covering 
expenses at the facility furnishing the nursing care.

    Legislation authorizing the transfer of pension funds in excess of 
$90 per month from the Compensation and Pension (C&P) account, in 
accordance with the provisions of Title 38 U.S.C., Section 
5503(a)(1)(B), expired on September 30, 1997. Veterans' pensions will 
continue to be reduced in accordance with the law and those funds will 
remain in the C&P account. Funds cannot be transferred to the Medical 
Facilities Revolving Fund until Congress reauthorizes an extension.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
26.0  Supplies and materials............           1           2           1
31.0  Equipment.........................           1           2           2
                                           ---------   ---------  ----------
99.9    Total obligations...............           2           4           3
---------------------------------------------------------------------------

[[Page 819]]



                                

                     Canteen Service Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating expenses...         121         132         133
09.02 Reimbursable direct operations....          81          88          88
                                           ---------   ---------  ----------
09.09   Total reimbursable program......         202         220         221
09.10 Reimbursable capital investment: 
        Sales program: Purchase of 
        equipment and leasehold.........           6           6           6
                                           ---------   ---------  ----------
10.00   Total obligations...............         208         226         227
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
      Unobligated balance available, start of year:

21.40   Uninvested......................         -14         -22         -21
21.41   U.S. Securities: Par value......          42          38          39
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............          28          16          18
22.00 New budget authority (gross)......         195         228         229
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         223         244         247
23.95 New obligations...................        -208        -226        -227
      Unobligated balance available, end of year:

24.40   Uninvested......................         -22         -21         -20
24.41   U.S. Securities: Par value......          38          39          40
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................          16          18          20
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         195         228         229
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          14          23          23
73.10 New obligations...................         208         226         227
73.20 Total outlays (gross).............        -198        -226        -226
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          23          23          24
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         195         225         225
86.98 Outlays from permanent balances...           3           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         198         226         226
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2          -2          -2
88.40     Non-Federal sources...........        -193        -226        -227
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -195        -228        -229
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           3          -2          -3
---------------------------------------------------------------------------

    The Veterans Canteen Service was established to furnish, at 
reasonable prices, merchandise and services necessary to the comfort and 
well-being of veterans in VA medical facilities.

    Financing.--Operations will be financed from current revenues.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4014-0-3-705    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         209            195           226            225
0102  Expense...........................        -206           -193          -222           -223
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           3              2             4              2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4014-0-3-705    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....                          1             5              4
        Investments in US securities:
1102      Treasury securities, par......          40             38            39             40
1106      Receivables, net..............           1              1             2              2
1107      Advances and prepayments......           2              2             1              1
1206  Non-Federal assets: Receivables, 
        net.............................                          2             1              1
      Other Federal assets:

1802    Inventories and related 
          properties....................          24             25            26             27
1803    Property, plant and equipment, 
          net...........................          28             28            28             30
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          95             97           102            105
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2104    Resources payable to Treasury...           1              2             2              2
      Non-Federal liabilities:

2201    Accounts payable................           9              9             8              9
2207    Other...........................           8              7             7              7
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          18             18            17             18
    NET POSITION:
3200  Invested capital..................          42             47            48             48
3600  Other.............................          35             32            37             39
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          77             79            85             87
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          95             97           102            105
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          40          43          42
11.3    Other than full-time permanent..          15          16          19
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          55          59          61
12.1  Civilian personnel benefits.......          14          17          14
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................           3           6           7
26.0  Supplies and materials............         128         136         137
31.0  Equipment.........................           7           7           7
                                           ---------   ---------  ----------
99.9    Total obligations...............         208         226         227
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
2011  Total compensable workyears: 
        Exempt Full-time equivalent 
        employment......................       2,979       3,000       3,020
---------------------------------------------------------------------------

                                

         Special Therapeutic and Rehabilitation Activities Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Contracts.........................          23          25          26
09.02 Education and training............           1           2           2
09.03 Operating expenses................          12          13          13
                                           ---------   ---------  ----------
10.00   Total obligations...............          36          40          41
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           8           9           9
22.00 New budget authority (gross)......          37          40          41
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          45          49          50
23.95 New obligations...................         -36         -40         -41
24.40 Unobligated balance available, end 
        of year: Uninvested.............           9           9           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          37          40          41
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           1           2           4
73.10 New obligations...................          36          40          41
73.20 Total outlays (gross).............         -35         -38         -39
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           2           4           6
----------------------------------------------------------------------------

[[Page 820]]



    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          35          38          39
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -37         -40         -41
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -2          -2          -2
---------------------------------------------------------------------------

    This revolving fund, established pursuant to the Veterans Omnibus 
Health Care Act of 1976, Public Law 94-581, provides a mechanism for the 
furnishing of rehabilitative services to certain veteran beneficiaries 
who are receiving medical care and treatment from the Department of 
Veterans Affairs.

    Funds to operate the various rehabilitative activities and provide 
for the therapeutic work for remuneration for patients and members in VA 
health care facilities are derived from contractual arrangements with 
private industry or nonprofit entities. Public Law 102-54 authorizes VA 
to contract with any Federal agency, including VA, and authorizes the 
Fund to cover the training, education, and travel costs of employees 
associated with the rehabilitative programs. This is a self-sustaining 
fund, and therefore no appropriation is required to support these 
activities. 

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          32             38            40             41
0102  Expense...........................         -27            -36           -40            -41
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           5              2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          10             11            14             16
        Investments in US securities:
1106      Receivables, net..............           1              1             1              1
1206  Non-Federal assets: Receivables, 
        net.............................           1              2             2              2
1803  Other Federal assets: Property, 
        plant and equipment, net........           1              1             1              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          13             15            18             20
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................           1              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           1              1             1              1
    NET POSITION:
3200  Invested capital..................           1              1             1              1
3300  Cumulative results of operations..          11             13            16             18
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          12             14            17             19
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          13             15            18             20
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.2  Other services....................          32          36          37
26.0  Supplies and materials............           3           3           3
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          36          40          41
---------------------------------------------------------------------------

                                

                  Medical Center Research Organizations

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Operating expenses................          26          26          27
09.02 Capital investments...............           3           3           3
                                           ---------   ---------  ----------
10.00   Total obligations...............          29          29          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          18          18          18
22.00 New budget authority (gross)......          29          29          30
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          47          47          48
23.95 New obligations...................         -29         -29         -30
24.40 Unobligated balance available, end 
        of year: Uninvested.............          18          18          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          29          29          30
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................          29          29          30
73.20 Total outlays (gross).............         -29         -29         -30
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          29          29          30
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1          -1          -1
88.40     Non-Federal sources...........         -28         -28         -29
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -29         -29         -30
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    These nonprofit corporations provide a flexible funding mechanism 
for the conduct of approved research at Department of Veterans Affairs 
medical centers. These organizations will derive funds to operate 
various research activities from Federal and non-Federal sources. No 
appropriation is required to support these activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.2  Other services....................          18          18          19
26.0  Supplies and materials............           8           8           8
31.0  Equipment.........................           3           3           3
                                           ---------   ---------  ----------
99.9    Total obligations...............          29          29          30
---------------------------------------------------------------------------

                                

                               Trust Funds

                    General Post Fund, National Homes

                      (including transfer of funds)

    For the cost of direct loans, $7,000, as authorized by Public Law 
102-54, section 8, which shall be transferred from the ``General post 
fund'': Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize gross obligations for the principal amount of 
direct loans not to exceed $70,000.
    In addition, for administrative expenses to carry out the direct 
loan programs, $54,000, which shall be transferred from the ``General 
post fund'', as authorized by Public Law 102-54, section 8. (Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998.)

[[Page 821]]

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           2           2           2
    Receipts:
02.01 General post fund, national homes, 
        deposits........................          27          28          29
02.02 General post fund, national homes, 
        interest on investments.........           3           3           3
                                           ---------   ---------  ----------
02.99   Total receipts..................          30          31          32
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          32          33          34
    Appropriation:
05.01 General post fund, national homes.         -30         -31         -32
07.99 Total balance, end of year........           2           2           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Religious, recreational, and 
        entertainment activities........          21          21          22
00.02 Research activities...............           3           4           4
00.03 Therapeutic residence maintenance.           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............          25          26          27
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
      Unobligated balance available, start of year:

21.40   Uninvested......................          -3           4           3
21.41   U.S. Securities: Par value......          40          37          42
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............          37          41          45
22.00 New budget authority (gross)......          30          31          32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          67          72          77
23.95 New obligations...................         -25         -26         -27
      Unobligated balance available, end of year:

24.40   Uninvested......................           4           3           2
24.41   U.S. Securities: Par value......          37          42          48
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................          41          45          50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................          30          31          32
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           5           4           4
73.10 New obligations...................          25          26          27
73.20 Total outlays (gross).............         -27         -26         -26
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           4           4           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          24          23          24
86.98 Outlays from permanent balances...           3           3           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          27          26          26
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          30          31          32
90.00 Outlays...........................          27          26          26
---------------------------------------------------------------------------

    This fund consists of: gifts, bequests, and proceeds from the sale 
of property left in the care of the facilities by former beneficiaries; 
patients' fund balances; and, proceeds from the sale of effects of 
beneficiaries who die leaving no heirs or without having otherwise 
disposed of their estate. Such funds are used to promote the comfort and 
welfare of veterans at hospitals, nursing homes, and domiciliaries where 
no general appropriation is available. Public Law 102-54 authorizes 
compensation work therapy and therapeutic transitional housing and loan 
programs to be funded from the General post fund. In addition, donations 
from pharmaceutical companies, non-profit corporations, and individuals 
to support VA medical research are deposited into this fund. (38 U.S.C. 
chs. 83 and 85.)

    Also under this heading are the activities of the Transitional 
housing loan program. This program provides loans to nonprofit 
organizations to assist them in leasing housing units exclusively for 
use as a transitional group residence for veterans who are in (or who 
have recently been in) a program for the treatment of substance abuse. 
The amount of the loan cannot exceed $4,500 for any single residential 
unit and each loan must be repaid within two years through monthly 
installments. The total amount of loans outstanding at any time may not 
exceed $100,000.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................          10          11          11
26.0  Supplies and materials............          10          10          11
31.0  Equipment.........................           3           3           3
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          25          26          27
---------------------------------------------------------------------------

                                


 
                    VETERANS BENEFITS ADMINISTRATION

                              Federal Funds

General and special funds:

                       [Compensation and Pensions]

    [For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as authorized 
by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension 
benefits to or on behalf of veterans as authorized by law (38 U.S.C. 
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, 
emergency and other officers' retirement pay, adjusted-service credits 
and certificates, payment of premiums due on commercial life insurance 
policies guaranteed under the provisions of Article IV of the Soldiers' 
and Sailors' Civil Relief Act of 1940, as amended, and for other 
benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, 
chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 
123; 45 Stat. 735; 76 Stat. 1198); $19,932,997,000, to remain available 
until expended: Provided, That not to exceed $26,380,000 of the amount 
appropriated shall be reimbursed to ``General operating expenses'' and 
``Medical care'' for necessary expenses in implementing those provisions 
authorized in the Omnibus Budget Reconciliation Act of 1990, and in the 
Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the 
funding source for which is specifically provided as the ``Compensation 
and pensions'' appropriation: Provided further, That such sums as may be 
earned on an actual qualifying patient basis, shall be reimbursed to 
``Medical facilities revolving fund'' to augment the funding of 
individual medical facilities for nursing home care provided to 
pensioners as authorized by the Veterans' Benefits Act of 1992 (38 
U.S.C. chapter 55).] (Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1998.)

    Activities formerly included in this account are proposed to be 
financed by three separate appropriation accounts in 1999 and are 
presented below in the ``Compensation'', ``Pensions'', and ``Burial 
benefits and miscellaneous assistance'' accounts. Amounts for 1997, 
1998, and 1999 are shown on a comparable basis. The following table 
shows the distribution of the amounts (dollars in millions) appropriated 
in 1997 and 1998 and requested in 1999.

                                     1997 actual  1998 est.   1999 est.
Distribution of budget authority by 
    account:
  Compensation......................      16,418      16,724      18,663
  Pensions..........................       3,066       3,075       3,070
  Burial benefits...................         115         133         123
Distribution of outlays by account:
  Compensation......................      16,218      16,912      18,649
  Pensions..........................       3,055       3,087       3,073
  Burial benefits...................         116         133         123

                              Compensation

    For the payment of compensation benefits to or on behalf of veterans 
and a pilot program for disability examinations as authorized by law, 
$18,663,401,000, to remain available until expended, of which not to 
exceed $1,472,000 shall be reimbursed to ``General operating

[[Page 822]]

expenses'' for necessary expenses, as authorized by chapters 11, 13, 18, 
51, 53, 55 and 61 of title 38, United States Code.
    For the payment, after June 30 of the current fiscal year, of 
compensation benefits to or on behalf of veterans as authorized by law, 
for unanticipated costs incurred for the current fiscal year, such sums 
as may be necessary. (38 U.S.C. 107, and chapters 11, 13, and 61, 38 
U.S.C.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.02     World War I...................           2           2           1
00.03     World War II..................       3,356       3,290       3,389
00.04     Korean conflict...............       1,190       1,192       1,258
00.05     Vietnam era...................       5,148       5,481       6,333
00.06     Peacetime service.............       2,672       2,797       3,295
00.07     Persian Gulf conflict.........         636         798         994
                                           ---------   ---------  ----------
00.91       Total veterans..............      13,004      13,560      15,270
        Survivors:
01.04     World War I...................          55          48          42
01.05     World War II..................       1,288       1,275       1,286
01.06     Korean conflict...............         393         391         396
01.07     Vietnam era...................         991       1,010       1,045
01.08     Peacetime service.............         454         449         469
01.09     Persian Gulf conflict.........          54          67          75
                                           ---------   ---------  ----------
01.91       Total survivors.............       3,235       3,240       3,313
02.01   Clothing allowance..............          38          39          40
                                           ---------   ---------  ----------
02.93     Total compensation............      16,277      16,839      18,623
      Children:

03.02   Vietnam era.....................                      19          19
03.03   Ch. 18 vocational rehabilitation                       3           3
                                           ---------   ---------  ----------
03.91     Total children................                      22          22
      Other expenses:

07.01   Payment to general operating 
          expense.......................           2           1           1
07.02   Medical exam pilot program......                       8          17
                                           ---------   ---------  ----------
07.91   Total other expenses............           2           9          18
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................      16,279      16,870      18,663
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           8         146
22.00 New budget authority (gross)......      16,418      16,724      18,663
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      16,426      16,870      18,663
23.95 New obligations...................     -16,279     -16,870     -18,663
24.40 Unobligated balance available, end 
        of year: Uninvested.............         146
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................      16,598      16,724      18,663
41.00 Transferred to other accounts.....        -180
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........      16,418      16,724      18,663
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      16,418      16,724      18,663
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...       1,232       1,293       1,251
73.10 New obligations...................      16,279      16,870      18,663
73.20 Total outlays (gross).............     -16,218     -16,912     -18,649
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...       1,293       1,251       1,265
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority      14,986      15,619      17,398
86.93 Outlays from current balances.....       1,232       1,293       1,251
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      16,218      16,912      18,649
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      16,418      16,724      18,663
90.00 Outlays...........................      16,218      16,912      18,649
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1997 actual  1998 est.   1999 est.
Enacted/requested:
  Budget Authority..................      16,418      16,724      18,663
  Outlays...........................      16,218      16,912      18,649
Supplemental proposal:
  Budget Authority..................                     550
  Outlays...........................                     550
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 287
  Outlays...........................                                 259
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                -736
  Outlays...........................                                -736
                                    ------------------------------------
Total:
  Budget Authority..................      16,418      17,274      18,214
  Outlays...........................      16,218      17,462      18,172
                                    ====================================

    This appropriation would provide for the payment of compensation 
benefits to veterans and survivors. Compensation is paid to veterans for 
disabilities incurred in or aggravated during active military service. 
Total compensation costs are current law baseline amounts and include 
the effect of paying compensation benefits based solely on tobacco use 
during military service. Dependency and Indemnity Compensation is paid 
to survivors of servicepersons or veterans whose death occurred while on 
active duty or as a result of service-connected disabilities. 
Compensation and vocational rehabilitation is provided to the children 
of Vietnam veterans who were born with the birth defect spina bifida.

    The Secretary may pay a clothing allowance to each veteran who uses 
a prescribed medication for a service-connected skin condition or wears 
a prosthetic or orthopedic appliance (including a wheelchair) which, in 
the judgment of the Secretary, tends to damage or tear the clothing of 
such veteran.

    Caseload and cost tables shown below do not include proposed 
legislation.

            AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                     1997 actual  1998 est.   1999 est.
Veterans:
  Mexican border period.............          10           9           7
  World War I.......................         296         208         150
  World War II......................     632,890     610,400     600,856
  Korean conflict...................     184,279     180,159     180,441
  Vietnam era.......................     718,912     729,680     758,465
  Peacetime service.................     534,080     546,921     579,199
  Persian Gulf conflict.............     185,378     216,384     242,744
                                    ------------------------------------
      Total.........................   2,255,845   2,283,761   2,361,862
  Average payment per case, per year      $5,765      $6,153      $6,465
      Total obligations (in 
        millions)...................     $13,004     $14,052     $15,269
                                    ====================================
Children of Vietnam era veterans:
  Children..........................                   2,000       2,000
  Average payment per case, per year                 $10,500      $9,500
      Total obligations (in 
        millions)...................                     $21         $19
Chapter 18 Vocational 
    rehabilitations:
  Rehabilitations...................                     860         870
  Average payment per case, per year                  $3,095      $3,448
      Total obligations (in 
        millions)...................                      $3          $3
Survivors:
  Prior to Spanish-American War.....           1           1           1
  Spanish-American War..............          17          17          17
  Mexican border period.............           2           2           1
  World War I.......................       5,260       4,570       3,971
  World War II......................     121,924     120,144     118,470
  Korean conflict...................      36,963      36,565      36,198
  Vietnam era.......................      92,887      94,752      96,582
  Peacetime service.................      43,726      43,194      44,239
  Persian Gulf conflict.............       4,404       5,439       5,960
                                    ------------------------------------
      Total.........................     305,184     304,684     305,439
  Average payment per case, per year     $10,600     $10,824     $10,847
      Total obligations (in 
        millions)...................      $3,235      $3,298      $3,313
                                    ====================================
Clothing allowance:
  Number of veterans................      73,571      74,384      75,252
  Average payment per case, per year        $518        $528        $532
      Total obligations (in 
        millions)...................         $38         $39         $40
                                    ====================================

[[Page 823]]



                                

                              Compensation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-2-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 World War II......................                                  52
00.02 Korean conflict...................                                  18
00.03 Vietnam era.......................                                  96
00.04 Peacetime service.................                                  49
00.05 Persian Gulf......................                                  15
                                           ---------   ---------  ----------
00.91   Total veterans..................                                 230
01.04 World War 1.......................                                   1
01.05 World War II......................                                  21
01.06 Korean conflict...................                                   7
01.07 Vietnam era.......................                                  18
01.08 Peacetime service.................                                   8
01.09 Persian Gulf......................                                   1
                                           ---------   ---------  ----------
01.91   Total survivors.................                                  56
02.01 Clothing allowance................                                   1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................                                 287
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 287
23.95 New obligations...................                                -287
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 287
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                 287
73.20 Total outlays (gross).............                                -259
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...                                  28
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 259
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 287
90.00 Outlays...........................                                 259
---------------------------------------------------------------------------

    Legislation will be proposed to provided a cost-of-living adjustment 
(COLA) to all compensation beneficiaries, including spouses and 
children. This increase, effective December 1, 1998, is expected to be 
2.2 percent and cost $287 million in fiscal year 1999.

                                

                              Compensation

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-4-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Restrict tobacco-related 
        compensation....................                                -741
00.02 Extend full benefits to certain 
        Filipino veterans...............                                   5
                                           ---------   ---------  ----------
02.93   Total compensation..............                                -736
                                           ---------   ---------  ----------
10.00   Total obligations...............                                -736
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                -736
23.95 New obligations...................                                 736
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                -736
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                -736
73.20 Total outlays (gross).............                                 736
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                -736
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -736
90.00 Outlays...........................                                -736
---------------------------------------------------------------------------

    Legislation will be proposed to restrict service-connected 
disability compensation benefits for tobacco-related conditions, 
becoming manifest after service discharge and beyond any applicable 
presumptive period, based solely on tobacco use during military service.

    Legislation will also be proposed to pay full disability 
compensation benefits to Filipino veterans and their survivors residing 
in the U.S. and currently receiving benefits at half the level that U.S. 
counterparts receive.

                                

                                Pensions

    For the payment of pension benefits to or on behalf of veterans as 
authorized by law, $3,070,612,000, to remain available until expended; 
of which not to exceed $23,062,000 shall be reimbursed to ``General 
operating expenses'' and ``Medical care'' for necessary expenses as 
authorized by chapters 51, 53, 55, and 61 of title 38, United States 
Code; and of which such sums as may be earned on an actual qualifying 
patient basis, shall be reimbursed to ``Medical facilities revolving 
fund'' to augment the funding of individual medical facilities for 
nursing home care provided to pensioners, as authorized by chapter 55 of 
such title.
    For the payment, after June 30 of the current fiscal year, of 
pension benefits to or on behalf of veterans as authorized by law, for 
unanticipated costs incurred for the current fiscal year, such sums as 
may be necessary. (38 U.S.C. chapters 15 and 61.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0154-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Pensions:
          Veterans:
04.01       Improved law................       2,207       2,249       2,277
04.02       Prior law...................          67          57          49
04.03       Old law.....................           1
                                           ---------   ---------  ----------
04.91         Total veterans............       2,275       2,306       2,326
          Survivors:
05.01       Improved law................         653         639         626
05.02       Prior law...................         114         103          93
05.03       Old law.....................           2           2           1
                                           ---------   ---------  ----------
05.91         Total survivors...........         769         744         720
                                           ---------   ---------  ----------
06.93       Total pensions..............       3,044       3,050       3,046
        Other expenses:
07.01     Medical facility expenses.....           2
07.02     Reimbursement to GOE and VHA..          20          25          24
                                           ---------   ---------  ----------
07.91       Total other expenses........          22          25          24
                                           ---------   ---------  ----------
08.00     Total direct program..........       3,066       3,075       3,070
      Reimbursable program:

09.01   Minimum income for widows 
          program.......................                       3           6
                                           ---------   ---------  ----------
10.00   Total obligations...............       3,066       3,078       3,076
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,066       3,078       3,076
23.95 New obligations...................      -3,066      -3,078      -3,076
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       2,885       3,075       3,070
42.00   Transferred from other accounts.         181
                                           ---------   ---------  ----------
43.00     Appropriation (total).........       3,066       3,075       3,070
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                       3           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,066       3,078       3,076
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         254         265         254

[[Page 824]]

73.10 New obligations...................       3,066       3,078       3,076
73.20 Total outlays (gross).............      -3,055      -3,087      -3,073
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         265         254         257
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       2,801       2,819       2,813
86.93 Outlays from current balances.....         254         265         254
86.97 Outlays from new permanent 
        authority.......................                       3           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,055       3,087       3,073
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -3          -6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,066       3,075       3,070
90.00 Outlays...........................       3,055       3,084       3,067
---------------------------------------------------------------------------

    Pension benefits may be paid to veterans or their survivors. A 
veteran's entitlement is based on active duty service of a specific 
length (normally 90 days or more) during a designated war period, 
disabilities considered permanent and total, and countable income below 
established levels. There is no disability requirement for survivor 
cases. Income support is provided at established benefit levels.

    Veterans who are under the age of 45 and are in receipt of a 
disability pension will be evaluated to determine whether a vocational 
goal is reasonably feasible. Those for whom a vocational goal is 
feasible are eligible for a program of vocational training.

    An automatic annual cost-of-living increase comparable to the annual 
social security increase is provided for those pensioners in the 
improved program and to parents receiving dependency and indemnity 
compensation. The increase, effective with payments made on January 1, 
1999, is expected to be 2.2 percent.

              AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                     1997 actual  1998 est.   1999 est.
Veterans:
  Improved law......................     367,586     363,231     359,875
  Prior law.........................      41,433      35,126      29,809
  Old law and service...............         526         445         379
                                    ------------------------------------
      Total.........................     409,545     398,802     390,063
  Average payment per case, per year 
    (in dollars)....................      $5,556      $5,783      $5,964
                                    ------------------------------------
      Total obligations (in 
        millions)...................      $2,275      $2,306      $2,326
                                    ====================================
Survivors:
  Improved law......................     202,153     195,475     189,460
  Prior law.........................     114,024     101,988      91,388
  Old law and service...............       3,085       2,566       2,136
                                    ------------------------------------
      Total.........................     319,262     300,029     282,984
  Average payment per case, per year      $2,408      $2,479      $2,546
                                    ------------------------------------
      Total obligations (in 
        millions)...................        $769        $744        $720
                                    ====================================
Minimum Income for Widows Program:
  Widows............................                     397         782
Average benefit per case, per year..                  $7,083      $7,248
                                    ------------------------------------
      Total obligations (in 
        millions)...................                      $3          $6
                                    ====================================
Vocational training:
  Trainees..........................          86          85
  Average benefit per year..........      $2,453      $2,753
                                    ------------------------------------
      Total obligations (in 
        millions) 1......
                                    ====================================
    1 Amounts round to less than $1 million.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0154-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........       3,066       3,075       3,070
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                       3           6
                                           ---------   ---------  ----------
99.9    Total obligations...............       3,066       3,078       3,076
---------------------------------------------------------------------------

                                

              Burial Benefits and Miscellaneous Assistance

    For the payment of burial benefits, emergency and other officers' 
retirement pay, adjusted-service credits and certificates, payment of 
premiums due on commercial life insurance policies guaranteed under 
Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as 
amended, and for other benefits as authorized by law, $123,045,000, to 
remain available until expended. (38 U.S.C. 107, 1312, 1977, and 2106, 
chapters 23, 51, 53, 55, and 61, 38 U.S.C.; 50 U.S.C. App. 540-548; 43 
Stat. 122, 123; 45 Stat. 735; Stat. 76 Stat. 1198.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0155-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Burial benefits:

07.01   Burial allowances...............          37          35          34
07.02   Burial plots....................          12          11          11
07.03   Service-connected deaths........          13          13          12
07.04   Burial flags....................          16          17          18
07.05   Headstones and markers..........          29          32          33
07.07   Outer burial receptacles........           7          23          13
                                           ---------   ---------  ----------
07.91     Total burial benefits.........         114         131         121
08.03 Special allowance dependents......           1           1           1
08.04 Equal access to justice...........           1           1           1
                                           ---------   ---------  ----------
08.91   Total miscellaneous assistance..           2           2           2
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................         116         133         123
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         116         133         123
23.95 New obligations...................        -116        -133        -123
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         117         133         123
41.00 Transferred to other accounts.....          -1
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........         116         133         123
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         116         133         123
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................         116         133         123
73.20 Total outlays (gross).............        -116        -133        -123
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         116         133         123
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         116         133         123
90.00 Outlays...........................         116         133         123
---------------------------------------------------------------------------

    Burial benefits.--Provides for: (a) the payment of an allowance of 
$300 (plus transportation charges where death occurs under VA care) to 
reimburse, in part, the burial and funeral expense of an eligible 
deceased veteran; (b) the payment of $150 for a plot allowance where an 
eligible veteran is not buried in a national cemetery or other cemetery 
under the jurisdiction of the United States; (c) the payment of a burial 
allowance up to $1,500 when a veteran dies as the result of service-
connected disability; (d) furnishing a flag to drape the casket of each 
deceased veteran entitled thereto; (e) furnishing a headstone or marker 
for the grave of a veteran and, in certain cases, eligible dependents; 
and (f) authority to provide outer burial receptacles in the National 
Cemetery System.

[[Page 825]]

                        NUMBER OF BURIAL BENEFITS

                                     1997 actual  1998 est.   1999 est.
Burial allowance....................      88,023      87,500      83,200
Burial plot.........................      77,971      75,300      72,700
Service-connected death.............       9,724       9,800       9,200
Burial flags........................     457,809     457,200     465,000
Headstone markers...................     331,832     332,000     336,540
Headstone allowance.................           7
Outer burial receptacles............      47,263      95,184      71,009

    Miscellaneous assistance.--Provides for: (a) payments to emergency 
officers of World War I and certain officers of the Regular 
Establishment who have retired because of service-connected disability; 
(b) payments for claims made pursuant to the provision of the World War 
Adjusted Compensation Act of 1924, as amended; (c) a special allowance 
(38 U.S.C. 1312) to dependents of certain veterans who died after 
December 31, 1956, but who were not fully and currently insured under 
the Social Security Act; and (d) payments authorized by the Equal Access 
to Justice Act.

                    MISCELLANEOUS ASSISTANCE CASELOAD

                                     1997 actual  1998 est.   1999 est.
Retired Officers....................           3           2           2
Special allowance dependents........         138         138         138
Equal Access to Justice payments....         357         357         357

                                

                          Readjustment Benefits

    For the payment of readjustment and rehabilitation benefits to or on 
behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 34, 
35, 36, 39, 51, 53, 55, and 61, [$1,366,000,000] $1,175,000,000, to 
remain available until expended: Provided, That funds shall be available 
to pay any court order, court award or any compromise settlement arising 
from litigation involving the vocational training program authorized by 
section 18 of Public Law 98-77, as amended. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Sons and daughters............          94          95          97
00.02     Spouses.......................          11          11          12
                                           ---------   ---------  ----------
00.91       Total education and training         105         106         109
        Special assistance to disabled 
            veterans:
01.01     Vocational rehabilitation.....         401         403         403
01.02     Housing grants................          15          15          15
01.03     Automobiles, adaptive 
            equipment, maintenance and 
            repair......................          28          27          26
                                           ---------   ---------  ----------
01.91       Total special assistance to 
              disabled veterans.........         444         445         444
02.01   Work study......................          30          32          31
02.02   Payments to states..............          13          13          13
02.03   All-volunteer assistance: 
          Veterans' basic benefits......         690         724         736
                                           ---------   ---------  ----------
02.91     All-volunteer assistance and 
            other.......................         733         769         780
                                           ---------   ---------  ----------
02.93     Total direct program..........       1,282       1,320       1,333
09.01 Veterans' basic benefits..........          12          10           7
09.01 Veterans' supplementary benefits..          79          74          73
09.01 Reservists benefits...............          83          91         101
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,456       1,495       1,514
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          27         112         157
22.00 New budget authority (gross)......       1,551       1,541       1,356
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1           1
22.30 Unobligated balance expiring......         -12          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,567       1,652       1,513
23.95 New obligations...................      -1,456      -1,495      -1,514
24.40 Unobligated balance available, end 
        of year: Uninvested.............         112         157
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       1,377       1,366       1,175
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         174         175         181
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,551       1,541       1,356
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          60          53          27
73.10 New obligations...................       1,456       1,495       1,514
73.20 Total outlays (gross).............      -1,462      -1,520      -1,511
73.45 Adjustments in unexpired accounts.          -1          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          53          27          30
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,251       1,345       1,175
86.93 Outlays from current balances.....                                 155
86.97 Outlays from new permanent 
        authority.......................         174         175         181
86.98 Outlays from permanent balances...          37
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,462       1,520       1,511
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -174        -175        -181
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,377       1,366       1,175
90.00 Outlays...........................       1,288       1,345       1,330
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1997 actual  1998 est.   1999 est.
Enacted/requested:
  Budget Authority..................       1,377       1,366       1,175
  Outlays...........................       1,288       1,345       1,330
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                 291
  Outlays...........................                                 291
                                    ------------------------------------
Total:
  Budget Authority..................       1,377       1,366       1,466
  Outlays...........................       1,288       1,345       1,621
                                    ====================================

    This appropriation finances educational assistance allowances for 
certain peacetime veterans and for eligible dependents of those 
veterans: (a) who died from service-connected causes or have a total and 
permanent rated service-connected disability; and (b) servicepersons who 
were captured or missing in action. In addition, certain disabled 
veterans are provided with vocational rehabilitation, specially adapted 
housing grants, and automobile grants with the associated approved 
adaptive equipment. The funding level in 1999 will consist of 
appropriated funds of $1,175 million and available funds from 1998 of 
$157 million.

    The following table provides a comparison of trainees and costs for 
the Dependents Educational Assistance program.

                       NUMBER OF TRAINEES AND COST

                                     1997 actual  1998 est.   1999 est.
Sons and daughters:
  Number of trainees................      36,216      36,769      37,295
  Average cost per trainee (in 
    dollars)........................      $2,593      $2,591      $2,591
                                    ------------------------------------
      Total cost (in millions)......         $94         $95         $97
                                    ====================================
Spouses and widow(ers):
  Number of trainees................       5,232       5,484       5,748
  Average cost per trainee (in 
    dollars)........................      $,2066      $2,070      $2,070
                                    ------------------------------------
      Total cost (in millions)......         $11         $11         $12
                                    ====================================

    Special assistance to disabled veterans.--Service-disabled veterans 
requiring vocational rehabilitation receive assistance to cover the 
costs of subsistence, tuition, books, supplies, and equipment.

[[Page 826]]

    Specially adapted housing grants, up to a maximum of $38,000, are 
provided to certain severely disabled veterans. Veterans who suffer 
service-connected blindness or who have lost the use of both upper 
extremities can receive up to $6,500.

    An allowance, up to a maximum of $5,500, is provided to certain 
service-disabled veterans and servicepersons toward the purchase price 
of an automobile. Adaptive equipment and the maintenance and replacement 
of such equipment is also provided.

    The following table shows caseload for this program. Specific 
performance goals are contained in VA's annual performance plan.

                     CASELOAD AND AVERAGE COST DATA

                                     1997 actual  1998 est.   1999 est.
      Total number of trainees......      54,352      53,269      52,190
  Average cost per trainee..........      $7,386      $7,561      $7,720
                                    ------------------------------------
      Total cost (in millions)......        $401        $403        $403
                                    ====================================
Housing grants:
  Number of housing grants..........         458         458         458
  Average cost per grant............     $32,147     $32,147     $32,147
                                    ------------------------------------
      Total cost (in millions)......         $15         $15         $15
                                    ====================================
Automobiles or other conveyances:
  Number of conveyances.............         855         855         855
  Average cost per conveyance.......      $5,450      $5,450      $5,450
                                    ------------------------------------
      Total cost (in millions)......          $5          $5          $5
                                    ====================================
Adaptive equipment (including 
    maintenance, repair and 
    installation for automobiles):
  Number of items...................       6,435       6,100       5,800
  Average cost......................       3,551       3,623       3,707
                                    ------------------------------------
      Total cost (in millions)......         $23         $22         $22
                                    ====================================

    Work-Study.--Certain veterans pursuing a program of rehabilitation, 
education, or training, who are enrolled as a full-time student, can 
work up to 250 hours per semester, receiving the Federal ($5.15 on 9/1/
97) or State minimum wage rate, whichever is higher.

                                     1997 actual  1998 est.   1999 est.
  Number of contracts...............      36,357      35,700      34,700
                                    ------------------------------------
      Total cost (in millions)......         $30         $32         $31
                                    ====================================


    Payments to States.--State approving agencies are reimbursed for the 
costs of inspecting, approving, and supervising programs of education 
and training offered by educational institutions and training 
establishments in which veterans, dependents, and reservists are 
enrolled or are about to enter.

    All Volunteer Force educational assistance (Montgomery GI Bill).--
Public Law 98-525, enacted October 19, 1984, established two new 
peacetime educational programs: an assistance program for veterans who 
enter active duty during the period beginning July 1, 1985; and an 
assistance program for certain members of the Selected Reserve. The 
Readjustment benefits appropriation pays the basic benefit allowance for 
the peacetime veterans, except for certain Post-Vietnam Era Veterans 
Education participants who transferred to the Montgomery GI Bill 
program. Supplementary educational assistance and the basic benefit 
allowance for peacetime veterans, Post-Vietnam Era Veterans Education 
converters, and reservists are financed by payments from the Department 
of Defense and the Department of Transportation.

    The following table shows a caseload and cost comparison for these 
beneficiaries under existing legislation.

                     CASELOAD AND AVERAGE COST DATA

                                     1997 actual  1998 est.   1999 est.
Veterans:
  Number of trainees................     297,030     308,000     309,900
  Average cost per trainee..........      $2,629      $2,623      $2,636
                                    ------------------------------------
      Total cost (in millions)......    $781 \1\    $808 \2\    $817 \3\
                                    ====================================
Reservists:
  Number of trainees................      78,000      76,800      76,400
  Average cost per trainee..........      $1,059      $1,188      $1,319
                                    ------------------------------------
      Total cost (in millions)......         $83         $91        $101
                                    ====================================
    \1\ Includes $690 million of basic benefits (VA funded), $12 million 
of basic benefits (DOD funded), and $79 million of supplemental benefits 
(DOD funded).
    \2\ Includes $724 million of basic benefits (VA funded), $10 million 
of basic benefits, (DOD funded) and $74 million of supplemental benefits 
(DOD funded).
    \3\ Includes $737 million of basic benefits (VA funded), $7 million 
of basic benefits (DOD funded) and $73 million of supplemental benefits 
(DOD funded).

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       1,282       1,320       1,333
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         174         175         181
                                           ---------   ---------  ----------
99.9    Total obligations...............       1,456       1,495       1,514
---------------------------------------------------------------------------

                                

                          Readjustment Benefits

                (Legislative Proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-4-1-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Education rate increase.......                                 191
00.02     Payment to Department of 
            Labor: Veterans training 
            programs....................                                 100
                                           ---------   ---------  ----------
02.93     Total direct program..........                                 291
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................                                 291
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 291
23.95 New obligations...................                                -291
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 291
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                 291
73.20 Total outlays (gross).............                                -291
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 291
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 291
90.00 Outlays...........................                                 291
---------------------------------------------------------------------------

    Legislation will be proposed to provide a 20 percent rate increase 
for Montgomery GI Bill Education programs (Chapters 30 and 1606), as 
well as for Survivors' and Dependents' Education programs (Chapter 35). 
This legislation will also propose additional funds in the amount of 
$100 million to be used for veterans training programs administered by 
the Department of Labor under Title IV-C of the Job Training Partnership 
Act.

[[Page 827]]

                                

  Reinstated Entitlement Program for Survivors Under Public Law 97-377

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.00 Reimbursable program..............          17          18          17
09.00 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............          18          19          18
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          18          19          18
23.95 New obligations...................         -18         -19         -18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          18          19          18
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          12          16          16
73.10 New obligations...................          18          19          18
73.20 Total outlays (gross).............         -14         -19         -18
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          16          16          16
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          10          11          10
86.98 Outlays from permanent balances...           4           8           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          14          19          18
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -18         -19         -18
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -4
---------------------------------------------------------------------------

    In accordance with Public Law 97-377, this program restores social 
security benefits to certain surviving spouses or children of veterans 
who died of service-connected causes. Financing is provided in the form 
of offsetting collections from the Department of Defense.

                     CASELOAD AND AVERAGE COST DATA

                                     1997 actual  1998 est.   1999 est.
Spouses.............................         390         350         310
Average benefit.....................     $10,925     $11,167     $11,628
Obligations (in millions)...........          $4          $4          $4
Children............................       1,537       1,400       1,270
Average benefit.....................      $8,707      $9,986     $10,360
Obligations (in millions)...........         $13         $14         $13

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................          18          19          18
                                           ---------   ---------  ----------
99.9    Total obligations...............          18          19          18
---------------------------------------------------------------------------

                                

                   Veterans Insurance and Indemnities

    For military and naval insurance, national service life insurance, 
servicemen's indemnities, service-disabled veterans insurance, and 
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19; 
70 Stat. 887; 72 Stat. 487, [$51,360,000] $46,450,000, to remain 
available until expended. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.04   Payment to national service life 
          insurance fund................           2           2           2
00.05   Payment to service-disabled 
          veterans insurance fund.......          30          44          38
00.06   Total operating expenses........           8           9           9
                                           ---------   ---------  ----------
10.00   Total obligations...............          40          55          49
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......                       2
22.00 New budget authority (gross)......          41          53          48
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          41          55          48
23.95 New obligations...................         -40         -55         -49
24.40 Unobligated balance available, end 
        of year: Uninvested.............           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          39          51          46
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          41          53          48
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................          40          55          49
73.20 Total outlays (gross).............         -41         -53         -48
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          39          51          46
86.97 Outlays from new permanent 
        authority.......................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          41          53          48
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: VMLI premiums...........          -2          -2          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          39          51          46
90.00 Outlays...........................          38          53          46
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1997 actual  1998 est.   1999 est.
Enacted/requested:
  Budget Authority..................          39          51          46
  Outlays...........................          38          51          46
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                   5
  Outlays...........................                                   5
                                    ------------------------------------
Total:
  Budget Authority..................          39          51          51
  Outlays...........................          38          51          51
                                    ====================================
    Note.--The Department of Veterans Affairs insurance policy loans are 
not an extension of Federal credit. Credit schedules previously shown 
for this account have been discontinued.

    Military and naval insurance.--Payments are made to the U.S. 
Government life insurance fund for certain World War I veterans for 
extra hazards of military service and for claims on war risk insurance 
issued to servicemen and veterans of World War I.

    National service life insurance.--Payments are made to the national 
service life insurance fund for certain World War II veterans for: (a) 
the extra hazards of service; (b) gratuitous insurance granted to 
certain persons unable to apply for national service life insurance; and 
(c) death claims on policies under the waiver of a premium while the 
insured was on active duty.

    Payments are also made to policyholders and beneficiaries on 
nonparticipating national service life insurance policies issued to 
World War II veterans with service-connected disabilities.

[[Page 828]]

    Veterans mortgage life insurance (VMLI).--Payments are made to 
mortgage holders under this program which provides mortgage protection 
life insurance to veterans who have received a grant for specially 
adapted housing due to severe disabilities.

    The general decline in the number of policies and the amount of 
insurance in force is expected to continue in 1999 as indicated in the 
following table.

                     POLICIES AND INSURANCE IN FORCE

                                     1997 actual  1998 est.   1999 est.
National service life insurance 
    policies:
  Number of policies................       1,370       1,230       1,098
  Amount of insurance (dollars in 
    millions).......................          $7          $6          $5
VMLI policies:
  Number of policies................       3,747       3,616       3,468
  Amount of insurance (dollars in 
    millions).......................        $203        $203        $203

    Payment to service-disabled veterans insurance fund.--Payments are 
made to the service-disabled veterans insurance fund to supplement the 
premiums and other receipts of the fund in amounts necessary to pay 
claims on insurance policies issued to veterans with service-connected 
disabilities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          31          46          39
42.0  Insurance claims and indemnities..           9           9          10
                                           ---------   ---------  ----------
99.9    Total obligations...............          40          55          49
---------------------------------------------------------------------------

                   Veterans Insurance and Indemnities

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-4-1-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.04 Payment to national service life 
        insurance fund..................                                   5
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................                                   5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                   5
23.95 New obligations...................                                  -5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                   5
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                   5
73.20 Total outlays (gross).............                                  -5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                   5
90.00 Outlays...........................                                   5
---------------------------------------------------------------------------

    Legislation will be proposed to establish a reserve, from 
appropriated funds, to fully fund the ``H'' program and allow for the 
payments of future dividends. This legislation will require an initial 
transfer to the National Service Life Insurance fund of $4.5 million in 
1999. The $4.5 million estimated cost will be offset to the extent that 
annual appropriations to the VI&I fund to cover the costs associated 
with the ``H'' program will no longer be necessary.

                                

Public enterprise funds:

                Service-Disabled Veterans Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Capital investment................          13          14          13
09.01 Death claims......................          41          48          49
09.01 All other.........................          12          13          13
                                           ---------   ---------  ----------
10.00   Total obligations...............          66          75          75
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           6           6           8
22.00 New budget authority (gross)......          66          78          72
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          72          84          80
23.95 New obligations...................         -66         -75         -75
24.40 Unobligated balance available, end 
        of year: Uninvested.............           6           8           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          66          78          72
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           5           6           4
73.10 New obligations...................          66          75          75
73.20 Total outlays (gross).............         -66         -77         -75
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           6           4           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          61          71          72
86.98 Outlays from permanent balances...           5           6           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          66          77          75
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            VI and I....................         -30         -44         -39
          Non-Federal sources:
88.40       Interest on loans...........          -3          -3          -3
88.40       Insurance premiums earned...         -23         -22         -21
88.40       Repayments of loans.........         -10          -9          -9
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -66         -78         -72
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                      -1           3
---------------------------------------------------------------------------

    This fund finances the payment of claims on nonparticipating life 
insurance policies issued and currently is open for new issues to 
veterans having service-connected disabilities. The program provides 
insurance coverage for service-disabled veterans at standard rates. 
Administrative expenses are paid from the General operating expenses 
appropriation.

    Operating costs--
        Death claims.--Represents payments to designated beneficiaries.
        All other.--Represents payments to policyholders who surrender 
    their policies for their cash value and hold endowment policies 
    which have matured.

    Capital investment.--A policyholder may borrow up to 94 percent of 
the value of his policy.

    The trend in the number and amount of policies in force is indicated 
in the following table.

                     POLICIES AND INSURANCE IN FORCE

                                     1997 actual  1998 est.   1999 est.
Number of policies..................     159,941     156,471     152,771
Insurance in force (dollars in 
millions)...........................      $1,473      $1,448      $1,420

    Financing.--Operations are financed from premiums and other 
receipts. Additional funds are received by transfer from

[[Page 829]]

the veterans' insurance and indemnities appropriation, instead of direct 
appropriations to this fund.

    Operating results and financial condition.--Since premium and other 
receipts are insufficient to cover operations, the fund continues to 
project liabilities in excess of assets. The deficit is expected to 
reach an estimated $379 million by September 30, 1999.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4012-0-3-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          72             67            81             74
0102  Expense...........................         -67             17           -83            -77
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           5             84            -2             -3
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4012-0-3-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          11             12            13              9
1206  Non-Federal assets: Receivables, 
        net.............................           1              1             3              3
1601  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Direct loans, gross.............          55             58            63             67
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          67             71            79             79
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................           4              5             5              5
2206    Pension and other actuarial 
          liabilities...................         520            439           449            452
2207    Other...........................           1              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         525            445           455            458
    NET POSITION:
3100  Appropriated capital..............           6              6             8              5
3200  Invested capital..................        -463           -379          -384           -383
                                        ------------ --------------  ------------  -------------
3999    Total net position..............        -457           -373          -376           -378
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          68             72            79             80
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          13          14          13
42.0  Insurance claims and indemnities..          53          61          62
                                           ---------   ---------  ----------
99.9    Total obligations...............          66          75          75
---------------------------------------------------------------------------

                                

                    Veterans Reopened Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          33          39          42
09.01 Dividends.........................          28          29          27
09.01 All other.........................           9           9           8
09.01 Capital investment: policy loans..           7           7           7
                                           ---------   ---------  ----------
10.00   Total obligations...............          77          84          84
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
      Unobligated balance available, start of year:

21.40   Uninvested......................                       1           1
21.41   U.S. Securities: Par value......         493         483         465
                                           ---------   ---------  ----------
21.99     Total unobligated balance, 
            start of year...............         493         484         466
22.00 New budget authority (gross)......          68          67          63
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         561         551         529
23.95 New obligations...................         -77         -84         -84
      Unobligated balance available, end of year:

24.40   Uninvested......................           1           1           1
24.41   U.S. Securities: Par value......         483         465         445
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................         484         466         446
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          68          67          63
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.41 Unpaid obligations, start of year: 
        Obligated balance: U.S. 
        Securities: Par value...........          33          38          40
73.10 New obligations...................          77          84          84
73.20 Total outlays (gross).............         -71         -82         -81
74.41 Unpaid obligations, end of year: 
        Obligated balance: U.S. 
        Securities: Par value...........          38          40          43
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          36          44          41
86.98 Outlays from permanent balances...          35          38          40
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          71          82          81
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: interest on 
            U.S. securities.............         -44         -43         -39
          Non-Federal sources:
88.40       Interest on loans...........          -2          -2          -2
88.40       Insurance premiums earned...         -16         -16         -16
88.40       Repayments of loans.........          -6          -6          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -68         -67         -63
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           3          15          18
---------------------------------------------------------------------------
    Note.--The Department of Veterans Affairs insurance policy loans are 
not an extension of Federal credit. Credit schedules previously shown 
for this account have been discontinued.

    This fund pays claims and administrative costs on participating life 
insurance policies issued during the period May 1, 1965, through May 2, 
1966, under three life insurance programs: (1) service-disabled standard 
insurance; (2) service-disabled rated insurance; and (3) nonservice 
disabled insur- ance availing disabled World War II and Korean conflict 
veterans an opportunity to acquire life insurance coverage who were no 
longer eligible for other Government insurance.

    Budget program--
        Death claims.--Represents payments to designated beneficiaries.
        Dividends.--Policyholders participate in the distribution of 
    annual dividends.
        All other.--This represents payments to the General operating 
    expenses account for the administrative costs of processing claims 
    and maintaining the accounts, and to those policyholders who: (a) 
    surrender their policies for cash value; (b) hold endowment policies 
    which have matured; and (c) have purchased total disability income 
    coverage and subsequently become disabled.
        Policy loans made.--A policyholder may borrow up to 94 percent 
    of the cash value of his policy at an interest rate adjusted to 
    reflect private sector borrowing costs.
        The following table reflects the decrease in the number of 
    policies and the amount of insurance in force:

                     POLICIES AND INSURANCE IN FORCE

                                     1997 actual  1998 est.   1999 est.
  Number of policies................      92,582      87,392      81,962
  Insurance in force (dollars in 
    millions).......................        $727        $705        $680

    Financing.--Operations are financed from premiums collected from 
policyholders and interest on investments. Excess earnings of the fund 
are now distributed to the policyholders in the form of an annual 
dividend.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4010-0-3-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          68             63            61             58
0102  Expense...........................         -62            -64           -62            -59
                                        ------------ --------------  ------------  -------------

[[Page 830]]


0109  Net income or loss (-)............           6             -1            -1             -1
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4010-0-3-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....                          1             1              1
        Investments in US securities:
1102      Treasury securities, par......         525            521           506            488
1106      Receivables, net..............          12             10             9              9
1206  Non-Federal assets: Receivables, 
        net.............................                                        1              1
1601  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Direct loans, gross.............          28             28            29             30
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         565            560           546            529
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................          41             46            49             51
2206    Pension and other actuarial 
          liabilities...................         508            499           483            464
2207    Other...........................           2              2             2              2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         551            547           534            517
    NET POSITION:
3100  Appropriated capital..............         492            484           466            446
3200  Invested capital..................        -478           -470          -453           -433
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          14             14            13             12
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         565            561           547            530
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............           7           7           7
42.0  Insurance claims and indemnities..          38          44          47
43.0  Interest and dividends............          32          33          30
                                           ---------   ---------  ----------
99.9    Total obligations...............          77          84          84
---------------------------------------------------------------------------

                                

                Servicemembers' Group Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4009-0-3-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Premium payments..................         478         452         448
09.01 Payment to GOE account............           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         479         453         449
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.41 Unobligated balance available, 
        start of year: U.S. Securities: 
        Par value.......................           7           1           1
22.00 New budget authority (gross)......         473         453         449
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         480         454         450
23.95 New obligations...................        -479        -453        -449
24.41 Unobligated balance available, end 
        of year: U.S. Securities: Par 
        value...........................           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         473         453         449
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: offsetting 
        collections.....................           3           4           5
73.10 New obligations...................         479         453         449
73.20 Total outlays (gross).............        -478        -453        -449
74.40 Unpaid obligations, end of year: 
        Obligated balance: offsetting 
        collections.....................           4           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         473         449         445
86.98 Outlays from permanent balances...           5           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         478         453         449
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources: 
          Withholdings from serviceman's 
          pay...........................        -473        -453        -449
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           5
---------------------------------------------------------------------------

    Budget program.--This fund finances the payment of group life 
insurance premiums to private insurance companies under the 
Servicemembers' Group Life Insurance Act of 1965, as amended. 

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4009-0-3-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         467            473           493            493
0102  Expense...........................        -475           -479          -493           -493
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............          -8             -6
-----------------------------------------------------------------------------------------------

                                

Credit accounts:

          Veterans Housing Benefit Program Fund Program Account

                      (including transfer of funds)

    For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by 38 U.S.C. chapter 
37, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
during fiscal year [1998] 1999, within the resources available, not to 
exceed $300,000 in gross obligations for direct loans are authorized for 
specially adapted housing loans: Provided further, That during [1998] 
1999 any moneys that would be otherwise deposited into or paid from the 
Loan Guaranty Revolving Fund, the Guaranty and Indemnity Fund, or the 
Direct Loan Revolving Fund shall be deposited into or paid from the 
Veterans Housing Benefit Program Fund: Provided further, That any 
balances in the Loan Guaranty Revolving Fund, the Guaranty and Indemnity 
Fund, or the Direct Loan Revolving Fund on the effective date of this 
Act may be transferred to and merged with the Veterans Housing Benefit 
Program Fund.
     In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, [$160,437,000] $159,121,000, which may be 
transferred to and merged with the appropriation for ``General operating 
expenses''. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         170         867         907
    Receipts:
02.01 Downward reestimate of subsidies, 
        GIF direct loans................         838
02.02 Downward reestimate of subsidies, 
        guaranteed loans................                     206
02.03 Downward reestimate of subsidies, 
        loan guaranty direct loans......         109
                                           ---------   ---------  ----------
02.99   Total receipts..................         947         206
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       1,117       1,073         907
    Appropriation:
05.01 Veterans Housing Benefit Program..        -250        -166        -264
05.02 Legislative proposal subject to 
        PAYGO...........................                                   2
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............        -250        -166        -262
07.99 Total balance, end of year........         867         907         645
---------------------------------------------------------------------------

[[Page 831]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          25          44         156
00.02 Guaranteed loan subsidy...........         224         122         108
00.05 Reestimates of direct loan subsidy          73         376
00.06 Interest on reestimates of the 
        direct loan subsidy.............          12          89
00.07 Reestimates of guaranteed loan 
        subsidy.........................          74         212
00.08 Interest on reestimates of the 
        guaranteed loan subsidy.........           9          32
00.09 Administrative expenses...........         139         160         159
                                           ---------   ---------  ----------
10.00   Total obligations...............         556       1,035         423
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         556       1,035         423
23.95 New obligations...................        -556      -1,035        -423
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation (definite)........         139         160         159
40.25   Appropriation (special fund, 
          indefinite)...................         250         166         264
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         389         326         423
      Permanent:

60.05   Appropriation (indefinite)......         167         709
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         556       1,035         423
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................         556       1,035         423
73.20 Total outlays (gross).............        -556      -1,035        -423
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         389         326         423
86.97 Outlays from new permanent 
        authority.......................         167         709
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         556       1,035         423
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         556       1,035         423
90.00 Outlays...........................         556       1,035         423
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1997 actual  1998 est.   1999 est.
Enacted/requested:
  Budget Authority..................         556       1,035         423
  Outlays...........................         556       1,035         423
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  -2
  Outlays...........................                                  -2
                                    ------------------------------------
Total:
  Budget Authority..................         556       1,035         421
  Outlays...........................         556       1,035         421
                                    ====================================

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................       1,280       1,891       2,020
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,280       1,891       2,020
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        1.97        2.36        7.71
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        1.97        2.36        7.71
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........          25          44         156
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          25          44         156
    Direct loan subsidy outlays:
1340  Subsidy outlays...................         110         561         156
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         110         561         156
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............      24,287      24,844      23,440
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      24,287      24,844      23,440
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        0.36        0.49        0.46
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.36        0.49        0.46
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........         307         365         108
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         307         365         108
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................         307         122         108
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         307         122         108
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         139         160         159
3590  Outlays from new authority........         139         160         159
---------------------------------------------------------------------------



    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 1992 and beyond, 
(including modifications of direct loans or loan guarantees that 
resulted from obligations or commitments in any year) as well as for the 
administrative expenses of this program. The subsidy amounts are 
estimated on a net present value basis.

    The Federal guaranty for this program protects lenders against the 
following types of losses: (a) for loans of $45,000, or less, 50 percent 
of the loan is guaranteed; (b) for loans greater than $45,000, but not 
more than $56,250, $22,500; (c) for loans more than $56,250 but less 
than $144,000, the lesser of $36,000 or 40 percent of the loan; or (d) 
for loans greater than $144,000, the lesser of $50,750 or 25 percent of 
the loan.

    The Administration is proposing legislation to eliminate 
disbursements of vendee loans. VA will sell all foreclosed properties on 
a cash basis. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         139         161         159
41.0  Grants, subsidies, and 
        contributions...................         417         874         264
                                           ---------   ---------  ----------
99.9    Total obligations...............         556       1,035         423
---------------------------------------------------------------------------

                                

          Veterans Housing Benefit Program Fund Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-4-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............                                -100
00.02 Guaranteed loan subsidy...........                                  98
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................                                  -2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  -2
23.95 New obligations...................                                   2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.25 Appropriation (special fund, 
        indefinite).....................                                  -2
                                                                          -2
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                  -2
73.20 Total outlays (gross).............                                   2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  -2

[[Page 832]]

90.00 Outlays...........................                                  -2
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-4-1-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................                              -1,817
                                           ---------   ---------  ----------
1159    Total direct loan levels........                              -1,817
    Direct loan subsidy (in percent):
1320  Subsidy rate......................                               11.84
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...                               11.84
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........                                -100
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                                -100
    Direct loan subsidy outlays:
1340  Subsidy outlays...................                                -100
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                                -100
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................                                0.42
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                                0.42
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........                                  98
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                  98
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                                  98
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                  98
---------------------------------------------------------------------------

    The Administration is proposing legislation to eliminate 
disbursements of vendee loans. VA will sell all foreclosed properties on 
a cash basis.

                                

   Veterans Housing Benefit Program Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................       1,280       1,891       2,020
00.02 Interest on Treasury borrowing....         256          98         102
00.03 Property sales expense............           1           2           2
00.04 Property management/other expense.           4           5           4
00.05 Property improvement expense......           1           1           1
00.06 Reserve for losses on loan sales..          14          69          75
00.07 Payment of downward reestimate to 
        receipt account.................         120
00.08 Payment of excess interest earned 
        to receipt account..............          37
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,713       2,066       2,204
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...       1,713       2,067       2,204
23.95 New obligations...................      -1,713      -2,066      -2,204
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..       1,328       1,382       1,865
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,358       2,136       2,060
68.47   Portion applied to debt 
          reduction.....................        -973      -1,451      -1,721
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         385         685         339
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,713       2,067       2,204
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           1         -77         -93
73.10 New obligations...................       1,713       2,066       2,204
73.20 Total financing disbursements 
        (gross).........................      -1,791      -2,083      -2,210
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         -77         -93        -100
87.00 Total financing disbursements 
        (gross).........................       1,791       2,083       2,210
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources:Payments from 
            program account.............        -110        -510        -156
          Non-Federal sources:
            Non-Federal sources:

88.40         Repayments of principal...         -25         -36         -38
88.40         Interest received on loans         -62        -106        -122
88.40         Fees......................          -9         -38         -41
88.40         Interest from Treasury....        -126
88.40         Loan sale proceeds, net...      -1,010      -1,359      -1,607
88.40         Cash sale of properties...          -4         -35         -40
88.40         Other revenue.............         -12         -52         -56
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,358      -2,136      -2,060
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         355         -69         144
90.00 Financing disbursements...........         433         -53         150
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       1,280       1,891       2,020
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,280       1,891       2,020
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         723         992       1,405
1231  Disbursements: Direct loan 
        disbursements...................       1,280       1,891       2,020
      Repayments:

1251    Repayments and prepayments......         -69         -32         -38
1253    Proceeds from loan asset sales 
          to the public with recourse...      -1,010      -1,359      -1,607
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................          64         -77         -90
      Write-offs for default:

1263    Direct loans....................          -8         -10         -15
1264    Other adjustments, net..........          12
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         992       1,405       1,675
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4127-0-3-704    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         954          2,463         3,489          4,160
1206  Non-Federal assets: Receivables, 
        net.............................          29            160
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, net....         723            992         1,405          1,675
1403    Accounts receivable from 
          foreclosed property...........                        106
1404    Foreclosed property.............          58              9
        Net present value of assets 
            related to direct loans:
                                        ------------ --------------  ------------  -------------
1499        Net present value of assets 
              related to direct loans...         781          1,107         1,405          1,675
                                        ------------ --------------  ------------  -------------

[[Page 833]]


1499        Net present value of assets 
              related to direct loans...
1504  Net value of assets related to 
        post-1991 acquired defaulted 
        guaranteed loans receivable: 
        Foreclosed property.............
1603  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Allowance for estimated 
        uncollectible loans and interest 
        (-).............................          15
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,779          3,730         4,894          5,835
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           5              5
2104    Resources payable to Treasury...       1,768          1,768         4,891          5,832
      Non-Federal liabilities:

2201    Accounts payable................           7              7             3              3
2204    Liabilities for loan guarantees.          -1             -1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,779          1,779         4,894          5,835
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,779          1,779         4,894          5,835
-----------------------------------------------------------------------------------------------

                                

   Veterans Housing Benefit Program Fund Direct Loan Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-4-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................                              -1,817
00.02 Interest on Treasury borrowing....                                 -11
                                           ---------   ---------  ----------
10.00   Total obligations...............                              -1,828
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                              -1,828
23.95 New obligations...................                               1,828
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                              -1,716
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                              -1,448
68.47   Portion applied to debt 
          reduction.....................                               1,336
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                                -112
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                              -1,828
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                              -1,828
73.20 Total financing disbursements 
        (gross).........................                               1,911
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...                                  83
87.00 Total financing disbursements 
        (gross).........................                              -1,911
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources:Payments from 
            program account.............                                 100
          Non-Federal sources:
            Non-Federal sources:

88.40         Repayments of principal...                                   7
88.40         Interest received on loans                                  18
88.40         Fees......................                                  41
88.40         Loan sale proceeds, net...                               1,226
88.40         Other revenue.............                                  56
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                               1,448
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                -380
90.00 Financing disbursements...........                                -463
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-4-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
                                           ---------   ---------  ----------
1150    Total direct loan obligations...
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1231  Disbursements: Direct loan 
        disbursements...................                              -1,911
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                              -1,911
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4127-4-3-704    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                                                  -1,911
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                                                  -1,911
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                  -1,911
-----------------------------------------------------------------------------------------------

    This schedule shows the off-budget financing effects of the 
Administration's proposal to eliminate disbursements of vendee loans. VA 
will sell all foreclosed properties on a cash basis.

                                

 Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Acquisition of homes..............       1,078       1,727       1,955
00.02 Losses on defaulted loans.........         292         394         435
00.03 Property sales expense............          46          99         121
00.04 Property management expense.......          29          35          42
00.05 Property improvement expense......          29          34          38
00.06 Loans acquired....................         124         134         145
00.07 Payment of downward reestimate to 
        program account.................         684         172
00.08 Payment of excess interest to 
        program account.................         105          34
                                           ---------   ---------  ----------
10.00   Total obligations...............       2,387       2,629       2,736
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......       3,744       3,316       3,244
22.00 New financing authority (gross)...       1,959       2,557       2,601
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,703       5,873       5,845
23.95 New obligations...................      -2,387      -2,629      -2,736
24.40 Unobligated balance available, end 
        of year: Uninvested.............       3,316       3,244       3,110
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............       1,959       2,557       2,601
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          40        -165        -182
73.10 New obligations...................       2,387       2,629       2,736
73.20 Total financing disbursements 
        (gross).........................      -2,592      -2,645      -2,743
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...        -165        -182        -189
87.00 Total financing disbursements 
        (gross).........................       2,592       2,645       2,743
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from program 
              account...................        -308        -365        -108
88.25     Interest on uninvested funds..        -243        -157        -152

[[Page 834]]

          Non-Federal sources:
            Non-Federal sources:

88.40         Funding fees..............        -455        -472        -446
88.40         Cash sale of properties...        -177        -262        -317
88.40         Other collections.........         -13         -14         -16
88.40         Recoveries from loans.....        -763      -1,287      -1,562
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,959      -2,557      -2,601
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........         633          88         142
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2131  Guaranteed loan commitments exempt 
        from limitation.................      24,287      24,844      23,440
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      24,287      24,844      23,440
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     130,031     146,574     161,502
2231  Disbursements of new guaranteed 
        loans...........................      24,287      24,844      23,440
2232  Guarantees of loans sold to the 
        public with recourse............         979         820       1,074
2251  Repayments and prepayments........      -7,352      -8,287      -9,131
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -124        -395        -435
2262    Terminations for default that 
          result in acquisition of 
          property......................      -1,079      -1,727      -1,955
2263    Terminations for default that 
          result in claim payments......        -292        -327        -366
2264    Other adjustments, net..........         124
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     146,574     161,502     174,129
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      65,081      62,353      67,417
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......          61         103         127
2331    Disbursements for guaranteed 
          loan claims...................         339         395         435
2351    Repayments of loans receivable..          -6         -11         -13
2361    Write-offs of loans receivable..        -291        -360        -406
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         103         127         143
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and beyond (including 
modifications of guaranteed loans that resulted from commitments in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4129-0-3-704    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       3,785          3,151         3,063          2,921
1206  Non-Federal assets: Receivables, 
        net.............................          61            244           237            226
      Other Federal assets:

1801    Cash and other monetary assets..                        102           133            136
1803    Property, plant and equipment, 
          net...........................         415            718           809            891
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,261          4,215         4,242          4,174
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.       4,261          4,215         4,242          4,174
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,261          4,215         4,242          4,174
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,261          4,215         4,242          4,174
-----------------------------------------------------------------------------------------------

 Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-4-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                 101
24.40 Unobligated balance available, end 
        of year: Uninvested.............                                 101
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                 101
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from Program 
              Account...................                                 -98
88.25     Interest on uninvested funds..                                  -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                -101
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                -101
---------------------------------------------------------------------------

    This schedule shows the off-budget financing effects of the 
Administration's proposal to eliminate disbursements of vendee loans. VA 
will sell all foreclosed properties on a cash basis.

                                

        Veterans Housing Benefit Program Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investments:

00.01   Acquisition of homes............         415         404         339
00.02   Property improvements...........          21          19          16
00.03   Cash advances...................          23          18          13
00.04   Acquisition of defaulted 
          guaranteed loans..............          62          60          59
                                           ---------   ---------  ----------
00.91     Total capital investments.....         521         501         427
                                           ---------   ---------  ----------
01.00   Total capital investments.......         521         501         427
      Operating expenses:

01.02   Property management expense.....          29          28          21
01.03   Sales expense...................          36          43          31
01.04   Claims processed................         192         131         110
01.05   Other expenses..................          18          17          15
                                           ---------   ---------  ----------
01.91     Total operating expenses......         275         219         177
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................         796         720         604
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......         192          57
22.00 New budget authority (gross)......         873         840         638
22.40 Capital transfer to general fund..        -212        -177         -34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         853         720         604
23.95 New obligations...................        -796        -720        -604
24.40 Unobligated balance available, end 
        of year: Uninvested.............          57
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         100

[[Page 835]]

      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         773         840         638
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         873         840         638
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          67          42          38
73.10 New obligations...................         796         720         604
73.20 Total outlays (gross).............        -822        -724        -610
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          42          38          32
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         773         720         604
86.98 Outlays from permanent balances...          49           4           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         822         724         610
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            direct loan financing 
            account.....................        -499        -604        -458
          Non-Federal sources:
            Non-Federal sources:

88.40         Loan and other repayments.         -50         -40         -32
88.40         Loan sale proceeds, net...          -1
88.40         Sale of homes, cash.......        -119        -117         -86
88.40         Interest on loans.........         -67         -53         -43
88.40         Collection of claims 
                (veteran indebtedness)..         -51         -38         -29
88.40         Other revenue.............          14          12          10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -773        -840        -638
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         100
90.00 Outlays...........................          49        -116         -28
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         449         420         432
1231  Disbursements: Direct loan 
        disbursements...................          56          52          54
      Repayments:

1251    Repayments and prepayments......         -40         -37         -38
1253    Proceeds from loan asset sales 
          to the public with recourse...          -1          -1          -1
1261  Adjustments: Capitalized interest.          19
      Write-offs for default:

1263    Direct loans....................          -1          -1          -1
1264    Other adjustments, net..........         -62          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         420         432         445
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      24,731      23,896      23,058
2251  Repayments and prepayments........        -313        -303        -292
      Adjustments:

2262    Terminations for default that 
          result in acquisition of 
          property......................        -415        -404        -339
2263    Terminations for default that 
          result in claim payments......        -192        -131        -110
2264    Other adjustments, net..........          85
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      23,896      23,058      22,317
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      12,505      12,066      11,678
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......       1,350         665         633
2331    Disbursements for guaranteed 
          loan claims...................         228         194         165
2351    Repayments of loans receivable..         -84         -38         -29
2361    Write-offs of loans receivable..        -829        -188        -159
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         665         633         610
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         869            571           457            366
0102  Expense...........................        -441           -514          -411           -329
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............         428             57            46             37
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         238             99           177             34
1207  Non-Federal assets: Advances and 
        prepayments.....................           1             12
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1402    Interest receivable.............           7              4            53             42
1403    Credit program receivables and 
          related forclosed property, 
          net...........................         463            377           132            110
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         470            381           185            152
1706  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Foreclosed property.............
      Other Federal assets:

1803    Property, plant and equipment, 
          net...........................         643            539           348            290
1901    Other assets....................
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,352          1,031           710            476
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................         293             73            50             34
2207  Non-Federal liabilities: Other....          76            115            98             83
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         369            188           148            117
    NET POSITION:
3200  Invested capital..................       1,106            917           779            662
3300  Cumulative results of operations..         169            -74          -217           -303
3500  Future funding requirements.......        -292
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         983            843           562            359
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,352          1,031           710            476
-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records all cash flows to and from the Government resulting from direct 
loans obligated prior to 1992. All new activity in this program in 1992 
and beyond is recorded in the corresponding program and financing 
accounts.

                                

        Miscellaneous Veterans Programs Loan Fund Program Account

          Native American Veteran Housing Loan Program Account

                      (including transfer of funds)

    For administrative expenses to carry out the direct loan program 
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $515,000, 
which may be transferred to and merged with the appropriation for 
``General operating expenses''. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998.)

             Vocational Rehabilitation Loans Program Account

                      (including transfer of funds)

    For the cost of direct loans, [$44,000] $55,000, as authorized by 38 
U.S.C. chapter 31, as amended: Provided, That such costs, including the 
cost of modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed [$2,278,000] $2,401,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$388,000] $400,000, which may be transferred to 
and merged with the appropriation for ``General operating

[[Page 836]]

expenses''. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998.)

                   Education Loan Fund Program Account

                      (including transfer of funds)

    For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 
3698, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $3,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$200,000] $206,000; which may be transferred to 
and merged with the appropriation for ``General operating expenses''. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............                                   1
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           1           1           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           4           3           3
22.00 New budget authority (gross)......           1           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           4           4
23.95 New obligations...................          -1          -1          -2
24.40 Unobligated balance available, end 
        of year: Uninvested.............           3           3           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................           1           1           2
73.20 Total outlays (gross).............          -1          -1          -2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           1
86.93 Outlays from current balances.....                                   1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           1           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1           1           1
90.00 Outlays...........................           1           1           2
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels, vocational 
        rehabiliation...................           2           2           2
1150  Direct loan levels, education.....
1150  Direct loan levels, Native 
        American housing................           2           5           9
                                           ---------   ---------  ----------
1159    Total direct loan levels........           4           7          11
    Direct loan subsidy (in percent):
1320  Voc. Rehab. Loan subsidy rate.....        1.74        1.94        2.27
1320  Education Loan subsidy rate.......        0.00       34.11       32.75
1320  Native American subsidy rate......        7.72        7.72        7.72
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        4.52        5.97        6.73
    Direct loan subsidy budget authority:
1330  Subsidy budget authority, 
        vocational rehabilitation.......                                   1
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                                   1
    Direct loan subsidy outlays:
1340  Subsidy outlays, vocational 
        rehabilitation..................
1340  Subsidy outlays, education........
1340  Subsidy outlays, Native American..                                   1
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                                   1
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           1           1           1
3590  Outlays...........................           1           1           1
---------------------------------------------------------------------------

    All information from the Native American Veterans Home Loan Fund, 
Vocational Rehabilitation Loan Program and Education Loan Fund is 
consolidated in a single housing fund called the Miscellaneous Veterans 
Programs Loan Fund.

    The Native American Veterans Housing Loan program provides direct 
loans to veterans living on trust lands under 38 U.S.C. chapter 37, 
section 3761. These loans are available to purchase, construct or 
improve homes to be occupied as the veteran's residence. The principal 
amount of a loan under this authority is generally limited to $80,000, 
except in areas where housing costs are significantly higher than 
average costs nationwide. The Native American Veterans Housing Loan 
Program is a pilot program that began in 1993 and is authorized through 
December 31, 2001.

    The Vocational Rehabilitation Loan Fund provides loans of up to $815 
(based on indexed Chapter 31 Subsistence allowance rate) to veterans 
enrolled in a program of vocational rehabilitation who are temporarily 
in need of additional funds to meet their expenses.

    The Education Loan program provides loans of up to $2,500 to 
dependents of veterans who are eligible for training benefits under 
chapter 35, title 38, U.S.C. and who are without sufficient funds to 
meet their education related expenses.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for these programs, the subsidy costs associated with the 
direct loans obligated in 1992 and beyond, as well as the administrative 
expenses of these programs. The subsidy amounts are estimated on a 
present value basis; the administrative expenses are estimated on a cash 
basis. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
41.0  Grants, subsidies, and 
        contributions...................                                   1
                                           ---------   ---------  ----------
99.9    Total obligations...............           1           1           2
---------------------------------------------------------------------------

                                

 Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           5           7          11
00.02 Interest on Treasury borrowing....           2           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           7           8          12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           2
22.00 New financing authority (gross)...           7           9          12
22.60 Redemption of debt................          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           6           9          12
23.95 New obligations...................          -7          -8         -12
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           5           7          10
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           5           5           5
68.47   Portion applied to debt 
          reduction.....................          -3          -3          -3
                                           ---------   ---------  ----------

[[Page 837]]


68.90     Spending authority from 
            offsetting collections 
            (total).....................           2           2           2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           7           9          12
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           1           1           1
73.10 New obligations...................           7           8          12
73.20 Total financing disbursements 
        (gross).........................          -7          -8         -13
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           1           1
87.00 Total financing disbursements 
        (gross).........................           7           8          13
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                                  -1
88.25     Interest on uninvested funds..          -1
          Non-Federal sources:
88.40       Non-Federal sources.........          -3          -3          -2
88.40       Interest on loans...........          -1          -2          -2
88.40       Interest on uninvested funds
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -5          -5          -5
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           2           4           7
90.00 Financing disbursements...........           3           3           8
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................           5           7          11
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           5           7          11
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          13          15          19
1231  Disbursements: Direct loan 
        disbursements...................           5           7          11
1251  Repayments: Repayments and 
        prepayments.....................          -3          -3          -2
1264  Write-offs for default: Other 
        adjustments, net................
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          15          19          28
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4259-0-3-702    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           3
        Investments in US securities:
1106      Receivables, net..............                         10
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          13             15            19             28
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          13             15            19             28
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          16             25            19             28
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2103    Debt............................           3             24
2104    Resources payable to Treasury...                                        4             11
2203  Non-Federal liabilities: Debt.....          13
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          16             24             4             11
    NET POSITION:
3100  Appropriated capital..............                                       15             17
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                       15             17
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          16             24            19             28
-----------------------------------------------------------------------------------------------

    This account contains all information on the Native American 
Veterans Home Loan Fund, Vocational Rehabilitation Loan Program 
Education Loan Fund, and Transitional Housing Financing Account.

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond. The amounts in 
the account are means of financing and are not included in the budget 
totals.

                                

      Miscellaneous Veterans Programs Loan Fund Liquidating Account

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4260-0-3-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           3           1           1
1263  Write-offs for default: Direct 
        loans...........................          -2                      -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1           1
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4260-0-3-702    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           1              1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............           3              1             2              2
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -2
1604    Direct loans and interest 
          receivable, net...............           1              1             2              2
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................           1              1             2              2
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           2              2             2              2
    NET POSITION:
3100  Appropriated capital..............           1
3300  Cumulative results of operations..           1              1             2              2
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           2              1             2              2
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           2              1             2              2
-----------------------------------------------------------------------------------------------

    This account contains all information on the Vocational 
Rehabilitation Loan Program and Education Loan Fund on loans prior to 
1992.

    As required by the Federal Credit Reform Act of 1990, this account 
records all cash flows to and from the Government resulting from direct 
loans obligated prior to 1992. All new activity in this program in 1992 
and beyond is recorded in corresponding program and financing acounts.

                   WORKLOAD, AMOUNT LOANED AND REPAID

                                     1997 actual  1998 est.   1999 est.
Number of loans outstanding.........         991         870         680
Average amount per loan outstanding.        $772        $675        $679

                                

  

                               Trust Funds

               Post-Vietnam Era Veterans Education Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          64          64          64
    Receipts:
02.01 Deductions from military pay......           3           3           2
02.02 Contributions.....................          14           9           6
                                           ---------   ---------  ----------
02.99   Total receipts..................          17          12           8
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          81          76          72
    Appropriation:
05.01 Post-Vietnam era veterans 
        education account...............         -17         -12          -9
                                           ---------   ---------  ----------

[[Page 838]]


05.99 Subtotal appropriation............         -17         -12          -9
07.99 Total balance, end of year........          64          64          63
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to post-Vietnam era 
        trainees........................          16          12           9
00.02 Payment to section 901 trainees...           1
00.03 Participant disenrollments........          70          33          46
                                           ---------   ---------  ----------
10.00   Total obligations...............          87          45          55
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......         189         119          86
22.00 New budget authority (gross)......          17          12           9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         206         131          95
23.95 New obligations...................         -87         -45         -55
24.40 Unobligated balance available, end 
        of year: Uninvested.............         119          86          40
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................          20          15          11
60.45 Portion precluded from obligation.          -3          -3          -2
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........          17          12           9
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          17          12           9
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           4           5           4
73.10 New obligations...................          87          45          55
73.20 Total outlays (gross).............         -86         -46         -55
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           5           4           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          17          12           9
86.98 Outlays from permanent balances...          69          34          46
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          86          46          55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          17          12           9
90.00 Outlays...........................          86          46          55
---------------------------------------------------------------------------

    This account consists of voluntary contributions by eligible 
servicepersons and matching contributions provided by the Department of 
Defense. The fund provides educational assistance payments to 
participants who entered the service after December 31, 1976, and are 
pursuing training under chapter 32, title 38, U.S.C. Section 901 is a 
non-contributory program with educational assistance provided by the 
Department of Defense. Public Law 99-576, enacted October 28, 1986, 
closed the program permanently for new enrollments effective March 31, 
1987. The estimated activity in the fund follows:

    CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                        [In millions of dollars]

                                     1997 actual  1998 est.   1999 est.

Total budget authority..............         $17         $12          $9
  Servicepersons....................          $3          $3          $2
  Transferred from Department of 
    Defense (bonus).................          $8          $4          $3
  Transferred from Department of 
    Defense (matching)..............          $5          $5          $4
  Transferred from Department of 
    Defense (Section 901)...........          $1           0           0
  Transferred from Department of 
    Defense (Section 903)...........          $4           0           0
Total participants (end of year)....     284,676     259,660     222,969
Total contributors (end of year)....       2,995       2,484       1,709
Average contribution per contributor 
(actual dollars)....................      $1,138      $1,140      $1,140
Number of disenrollments............      60,751      27,500      38,400
Total refunds.......................         $70         $33         $46
Total trainees......................       9,653       6,700       4,700
Total trainee cost..................         $16         $12          $9
Average cost per trainee (actual 
dollars)............................      $1,639      $1,745      $1,746
Section 901 trainees................         215         180         151
Section 901 trainee cost............          $1

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          17          12           9
44.0  Refunds...........................          70          33          46
                                           ---------   ---------  ----------
99.9    Total obligations...............          87          45          55
---------------------------------------------------------------------------

                                

                  National Service Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Premium and other receipts........         231         224         210
02.02 Interest..........................       1,015         977         922
02.03 Payments from general and special 
        funds...........................           2           2           2
02.04 Payments from general and special 
        funds, legislative proposal 
        subject to PAYGO................                                   5
                                           ---------   ---------  ----------
02.99   Total receipts..................       1,248       1,203       1,139
    Appropriation:
05.01 National Service Life Insurance 
        fund............................      -1,248      -1,203      -1,134
07.99 Total balance, end of year........                                   5
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct:

        Operating expenses:
00.01     Death claims..................         560         608         631
00.02     Disability claims.............          18          19          19
00.03     Matured endowments............           7          13          15
00.04     Cash surrenders...............          30          30          31
00.05     Dividends.....................         523         512         478
00.06     Interest paid on dividend 
            credits and deposits........          56          62          57
00.07     Payment to general operating 
            expenses....................          21          22          25
                                           ---------   ---------  ----------
00.91       Total operating expenses....       1,215       1,266       1,256
02.01 Capital investment: Policy loans..         127         127         126
                                           ---------   ---------  ----------
02.93   Total direct obligations........       1,342       1,393       1,382
09.01 Death claims......................         253         254         254
09.01 Disability claims.................           9           8           8
09.01 Matured endowments................           9           6           6
09.01 Cash surrenders...................           7           8           8
09.01 Dividends.........................         218         202         202
09.01 Interest paid on dividend credits 
        and deposits....................          24          24          24
09.01 Payment to general operating 
        expenses........................           8           9           9
                                           ---------   ---------  ----------
09.09   Reimbursable program--subtotal 
          line..........................         528         511         511
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,870       1,904       1,893
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.41 Unobligated balance available, 
        start of year: U.S. Securities: 
        Par value.......................      10,824      10,783      10,650
22.00 New budget authority (gross)......       1,829       1,771       1,678
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      12,653      12,554      12,328
23.95 New obligations...................      -1,870      -1,904      -1,893
24.41 Unobligated balance available, end 
        of year: U.S. Securities: Par 
        value...........................      10,783      10,650      10,436
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................       1,248       1,203       1,134
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         581         568         544
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,829       1,771       1,678
----------------------------------------------------------------------------

[[Page 839]]



    Change in unpaid obligations:
      Unpaid obligations, start of year:

        Obligated balance:
72.40     Uninvested....................           4          10           5
72.41     U.S. Securities: Par value....       1,184       1,240       1,285
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,188       1,250       1,290
73.10 New obligations...................       1,870       1,904       1,893
73.20 Total outlays (gross).............      -1,808      -1,864      -1,854
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Uninvested....................          10           5           5
74.41     U.S. Securities: Par value....       1,240       1,285       1,323
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,250       1,290       1,328
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         581         568         544
86.98 Outlays from permanent balances...       1,227       1,296       1,310
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,808       1,864       1,854
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of loans.........        -130        -130        -130
88.40       Optional settlements........          -5          -5          -4
88.40       Net income offsets 
              adjustments...............        -446        -433        -410
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -581        -568        -544
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,248       1,203       1,134
90.00 Outlays...........................       1,227       1,296       1,310
---------------------------------------------------------------------------
    Note.--The Department of Veterans Affairs insurance policy loans are 
not an extension of Federal credit. Credit schedules previously shown 
for this account have been discontinued.

    This fund was established in 1940 for the World War II servicemen's 
and veterans' insurance program. Over 22 million policies have been 
issued under this program. Activity of the fund reflects a rising claim 
workload. The trend in the number and amount of policies in force is 
shown as follows:

                     POLICIES AND INSURANCE IN FORCE

                                     1995 actual  1996 est.   1997 est.

Number of policies..................   2,013,221   1,901,641   1,785,131
Insurance in force (dollars in 
millions)...........................     $18,826     $18,212     $17,557

    This fund is operated on a commercial basis to the extent possible. 
The income of the fund is derived from premium receipts, interest on 
investments, and payments which are made to the fund from the Veterans 
insurance and indemnities appropriation.

    Assets of the fund, which are largely invested in special interest-
bearing Treasury securities and in policy loans, are expected to 
decrease from $12,946 million as of September 30, 1998 to $12,754 
million as of September 30, 1999. The actuarial estimate of policy 
obligations as of September 30, 1999, total $12,669 million, leaving a 
balance of $84 million for contingency reserves.

    The status of the fund, excluding noncash transactions, is as 
follows:

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Uninvested balance [unavailable 
        collections]....................           5          10           5
0101  U.S. Securities: Par value........      12,007      12,023      11,935
                                           ---------   ---------  ----------
0199    Total balance, start of year....      12,012      12,033      11,940
    Cash income during the year:
      Proprietary receipts:

0220    NSLI fund, premium and other 
          receipts......................         231         224         210
      Intragovernmental transactions:

0240    NSLI fund,interest..............       1,015         977         922
0241    NSLI fund, payments from general 
          and special funds.............           2           2           2
0242    Intragovernmental transactions..                                   5
      Offsetting collections:

0289    Offsetting collections..........         581         568         544
0297  Income under present law..........       1,829       1,771       1,678
0298  Income under proposed legislation.                                   5
                                           ---------   ---------  ----------
0299    Total cash income...............       1,829       1,771       1,683
    Cash outgo during year:
0500  National service life insurance 
        fund............................      -1,808      -1,864      -1,854
    Unexpended balance, end of year:
0700  Uninvested balance................          10           5           5
0701  U.S. Securities: Par value........      12,023      11,935      11,764
                                           ---------   ---------  ----------
0799    Total balance, end of year......      12,033      11,940      11,769
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

33.0    Investments and loans...........          88          89          88
42.0    Insurance claims and indemnities         654         706         731
43.0    Interest and dividends..........         600         598         563
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,342       1,393       1,382
99.0  Reimbursable obligations..........         528         511         511
                                           ---------   ---------  ----------
99.9    Total obligations...............       1,870       1,904       1,893
---------------------------------------------------------------------------

                                

              United States Government Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Interest and profits on 
        investments in public debt 
        securities......................           6           6           6
    Appropriation:
05.01 United States government life 
        insurance fund..................          -6          -6          -6
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.01   Death claims....................           7           7           7
00.02   Cash surrenders.................           1           1           1
00.05   Dividends.......................           5           4           4
00.06   Interest paid on dividend 
          credits and deposits..........           1           1           1
                                           ---------   ---------  ----------
00.91     Total operating expenses......          14          13          13
                                           ---------   ---------  ----------
10.00   Total obligations...............          14          13          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.41 Unobligated balance available, 
        start of year: U.S. Securities: 
        Par value.......................          79          72          66
22.00 New budget authority (gross)......           8           7           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          87          79          73
23.95 New obligations...................         -14         -13         -13
24.41 Unobligated balance available, end 
        of year: U.S. Securities: Par 
        value...........................          72          66          60
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................           6           6           6
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           7           7           7
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.41 Unpaid obligations, start of year: 
        Obligated balance: U.S. 
        Securities: Par value...........          20          20          19
73.10 New obligations...................          14          13          13
73.20 Total outlays (gross).............         -13         -15         -13
74.41 Unpaid obligations, end of year: 
        Obligated balance: U.S. 
        Securities: Par value...........          20          19          19
----------------------------------------------------------------------------

[[Page 840]]



    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           1           1           1
86.98 Outlays from permanent balances...          12          14          12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13          15          13
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Repayments of loans.....          -1          -1          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           8           7           7
90.00 Outlays...........................          13          15          13
---------------------------------------------------------------------------
    Note.--The Department of Veterans Affairs insurance policy loans are 
not an extension of Federal credit. Credit schedules previously shown 
for this account have been discontinued.

    This fund was established in 1919 to receive premiums and pay claims 
on insurance issued under the provisions of the War Risk Insurance Act. 
The general decline in the activity of the fund is indicated in the 
following table:

                     POLICIES AND INSURANCE IN FORCE

                                     1997 actual  1998 est.   1999 est.
Number of policies..................      21,343      19,625      18,017
Insurance in force (dollars in 
millions)...........................         $71         $65         $59

    The fund is operated on a commercial basis to the extent possible. 
The income of the fund is derived from interest on investments and 
payments from the Veterans insurance and indemnities appropriation. 
Effective January 1, 1983, premiums were discontinued since reserves 
held in the fund were adequate to meet future liabilities of the 
program.

    Assets of the fund, which are largely invested in interest-bearing 
securities and policy loans, are estimated to decrease from $91 million 
as of September 30, 1998, to $84 million as of September 30, 1999, as an 
increasing number of policies mature through death or disability. The 
actuarial evaluation of policy obligations as of September 30, 1999, 
totals $82 million, leaving a balance of $2 million for contingency 
reserves.

    The status of the fund, excluding noncash transactions, is as 
follows:

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0101  U.S. Securities: Par value........          99          92          84
    Cash income during the year:
      Intragovernmental transactions:

0240    Interest and profits on 
          investments in public debt 
          securities, USGLI, VA.........           6           6           6
      Offsetting collections:

0289    Offsetting Collections..........           1           1           1
                                           ---------   ---------  ----------
0299    Total cash income...............           7           7           7
    Cash outgo during year:
0500  United States government life 
        insurance fund..................         -13         -15         -13
    Unexpended balance, end of year:
0701  U.S. Securities: Par value........          92          84          78
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
42.0  Insurance claims and indemnities..           8           8           7
43.0  Interest and dividends............           6           5           6
                                           ---------   ---------  ----------
99.9    Total obligations...............          14          13          13
---------------------------------------------------------------------------

                                

                  Veterans Special Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          45          54          57
09.01 Cash surrenders...................           6           7           7
09.01 Dividends.........................         104         104         101
09.01 All other.........................          50          65          55
09.01 Payment to general operating 
        expenses account................           4           5           5
09.02 Capital investment................          23          25          25
                                           ---------   ---------  ----------
10.00   Total obligations...............         232         260         250
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.41 Unobligated balance available, 
        start of year: U.S. Securities: 
        Par value.......................       1,412       1,425       1,409
22.00 New budget authority (gross)......         246         244         240
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,658       1,669       1,649
23.95 New obligations...................        -232        -260        -250
24.41 Unobligated balance available, end 
        of year: U.S. Securities: Par 
        value...........................       1,425       1,409       1,399
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         246         244         240
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

        Obligated balance:
72.40     Uninvested....................           1           2           2
72.41     U.S. Securities: Par value....         168         185         196
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         169         187         198
73.10 New obligations...................         232         260         250
73.20 Total outlays (gross).............        -216        -249        -239
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Uninvested....................           2           2           2
74.41     U.S. Securities: Par value....         185         196         207
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         187         198         209
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          47          62          41
86.98 Outlays from permanent balances...         169         187         198
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         216         249         239
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Interest on loans...........          -6          -7          -7
88.40       Insurance premiums earned...         -74         -72         -70
88.40       Optional settlements........          -2          -2          -3
88.40       Repayments of loans.........         -17         -18         -19
88.45     Offsetting governmental 
            collections.................        -147        -145        -141
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -246        -244        -240
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -30           5          -1
---------------------------------------------------------------------------
    Note.--The Department of Veterans Affairs insurance policy loans are 
not an extension of Federal credit. Credit schedules previously shown 
for this account have been discontinued.

    This fund finances the payment of claims on life insurance policies 
issued before January 3, 1957, to veterans who served in the Armed 
Forces subsequent to April 1, 1951. No new policies can be issued. 
Policyholders may elect to purchase total disability income coverage 
with the payment of additional premiums.

    Budget program--
        Death claims.--Represents payments to designated beneficiaries.
        Cash surrenders.--A policyholder may terminate his or her 
    insurance by cashing in the policy for its cash value.
        Dividends.--Policyholders participate in the distribution of 
    annual dividends.

[[Page 841]]

        All other.--Classified in this category are payments to 
    policyholders who: (a) hold endowment policies which have matured; 
    (b) have purchased total disability income coverage and subsequently 
    become disabled; and (c) are paid interest on dividend credits and 
    deposits.
        The following table reflects the decrease in the number of 
    policies and the amounts of insurance in force:

                     POLICIES AND INSURANCE IN FORCE

                                     1997 actual  1998 est.   1999 est.
Number of policies..................     248,997     240,777     233,347
Insurance in force (dollars in 
millions)...........................          $3          $3          $3

    Financing.--Payments from this fund are financed primarily  from  
premium  receipts  and  interest  on investments.

    Operating results and financial condition.--Favorable mortality 
experience on insurance written against this fund has kept death claim 
payments well below the amount of premium and interest receipts, thereby 
producing an annual increase in the total revenue of the fund. Excess 
earnings of the fund are now distributed to the policyholders in the 
form of an annual dividend. 

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-8455-0-8-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         231            231           229            224
0102  Expense...........................        -223           -225          -233           -226
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           8              6            -4             -2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-8455-0-8-701    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           1              2             2              2
        Investments in US securities:
1102      Treasury securities, par......       1,580          1,610         1,605          1,606
1106      Receivables, net..............          37             36            36             35
1206  Non-Federal assets: Receivables, 
        net.............................                                        4              4
1601  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Direct loans, gross.............         102            108           115            121
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,720          1,756         1,762          1,768
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................         187            204           219            230
2206    Pension and other actuarial 
          liabilities...................       1,481          1,494         1,488          1,487
2207    Other...........................          19             19            18             17
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,687          1,717         1,725          1,734
    NET POSITION:
3100  Appropriated capital..............       1,412          1,425         1,409          1,399
3200  Invested capital..................      -1,378         -1,385        -1,373         -1,365
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          34             40            36             34
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,721          1,757         1,761          1,768
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          23          25          25
42.0  Insurance claims and indemnities..          89         112         105
43.0  Interest and dividends............         120         123         120
                                           ---------   ---------  ----------
99.9    Total obligations...............         232         260         250
---------------------------------------------------------------------------

                                


 
                              CONSTRUCTION

                              Federal Funds

General and special funds:

                      Construction, Major Projects

    For constructing, altering, extending and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, or for any of the purposes set forth in sections 316, 
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of [title] 38, 
[United States Code] U.S.C., including planning, architectural and 
engineering services, maintenance or guarantee period services costs 
associated with equipment guarantees provided under the project, 
services of claims analysts, offsite utility and storm drainage system 
construction costs, and site acquisition, where the estimated cost of a 
project is $4,000,000 or more or where funds for a project were made 
available in a previous major project appropriation, [$177,900,000] 
$97,000,000, to remain available until expended: Provided, [That the 
$32,100,000 provided under this heading in Public Law 104-204 for the 
replacement hospital at Travis Air Force Base, Fairfield, California, 
shall not be obligated for that purpose but shall be available for any 
project approved by the Congress in the budgetary process: Provided 
further,] That except for advance planning of projects funded through 
the advance planning fund and the design of projects funded through the 
design fund, none of these funds shall be used for any project which has 
not been considered and approved by the Congress in the budgetary 
process: Provided further, That funds provided in this appropriation for 
fiscal year [1998] 1999, for each approved project shall be obligated: 
(1) by the awarding of a construction documents contract by September 
30, [1998] 1999; and (2) by the awarding of a construction contract by 
September 30, [1999] 2000: Provided further, That the Secretary shall 
promptly report in writing to the Committees on Appropriations any 
approved major construction project in which obligations are not 
incurred within the time limitations established above: Provided 
further, That no funds from any other account except the ``Parking 
revolving fund'', may be obligated for constructing, altering, 
extending, or improving a project which was approved in the budget 
process and funded in this account until one year after substantial 
completion and beneficial occupancy by the Department of Veterans 
Affairs of the project or any part thereof with respect to that part 
only. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Replacement and modernization.....          36          19          48
00.02 Nursing home care.................           1           1           1
00.06 Other improvements................         183         213         157
00.07 National cemeteries...............           4          78          19
00.08 Replacement or renovation of 
        regional offices................           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............         225         312         225
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......         595         588         485
22.00 New budget authority (gross)......         219         209          97
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         814         797         582
23.95 New obligations...................        -225        -312        -225
24.40 Unobligated balance available, end 
        of year: Uninvested.............         588         485         357
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         219         178          97
40.79   Line item veto cancellation.....                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         219         177          97
      Permanent:

65.00   Advance appropriation (definite)                      32
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         219         209          97
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         650         479         547

[[Page 842]]

73.10 New obligations...................         225         312         225
73.20 Total outlays (gross).............        -396        -244        -206
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         479         547         566
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          10           8           4
86.93 Outlays from current balances.....         386         236         193
86.98 Outlays from permanent balances...                                   9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         396         244         206
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         219         209          97
90.00 Outlays...........................         396         244         206
---------------------------------------------------------------------------

    Funds are requested for columbarium units at the Ft. Rosecrans and 
Florida National Cemeteries, seismic corrections project at San Juan, 
PR, and a clinical consolidation/seismic corrections project at Long 
beach, CA.

    Additional funds are provided to remove asbestos from Department-
owned buildings and to support advanced planning and design activities.

                  Budget Authority by Program Activity

                        [In millions of dollars]

                                     1997 actual  1998 est.   1999 est.
Replacement and modernization.......                      35
Research and Education..............          16
Outpatient and improvements.........          85          47
Seismic corrections.................                                  73
Patient environment.................          40          46
General.............................          32          14
Other departments...................          49          36          26
Advance appropriation provided under 
P.L. 104-204........................                      32
Design fund offset..................         (3)         (1)         (2)
                                    ------------------------------------
      Total budget authority........         219         209          97
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           1           1           1
25.2  Other services....................          24          25          25
26.0  Supplies and materials............           2           2           2
31.0  Equipment.........................           2           3           3
32.0  Land and structures...............         196         281         194
                                           ---------   ---------  ----------
99.9    Total obligations...............         225         312         225
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          25          50          50
---------------------------------------------------------------------------

                                

                      Construction, Minor Projects

    For constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, including planning, architectural and engineering 
services, maintenance or guarantee period services costs associated with 
equipment guarantees provided under the project, services of claims 
analysts, offsite utility and storm drainage system construction costs, 
and site acquisition, or for any of the purposes set forth in sections 
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of [title] 
38, [United States Code] U.S.C., where the estimated cost of a project 
is less than $4,000,000; [$175,000,000] $141,000,000, to remain 
available until expended, along with unobligated balances of previous 
``Construction, minor projects'' appropriations which are hereby made 
available for any project where the estimated cost is less than 
$4,000,000: Provided, That funds in this account shall be available for: 
(1) repairs to any of the nonmedical facilities under the jurisdiction 
or for the use of the Department which are necessary because of loss or 
damage caused by any natural disaster or catastrophe; and (2) temporary 
measures necessary to prevent or to minimize further loss by such 
causes. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Medical programs..................         144         156         136
00.06 National cemeteries...............          15          20          15
00.07 Computer centers, additions and 
        alterations.....................           3           9           3
00.08 Replacement or renovation of 
        regional offices................           5           9           6
                                           ---------   ---------  ----------
10.00   Total obligations...............         167         194         160
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          59          67          48
22.00 New budget authority (gross)......         175         175         141
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         234         242         189
23.95 New obligations...................        -167        -194        -160
24.40 Unobligated balance available, end 
        of year: Uninvested.............          67          48          29
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         175         175         141
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         171         189         206
73.10 New obligations...................         167         194         160
73.20 Total outlays (gross).............        -149        -177        -167
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         189         206         199
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          18          46          37
86.93 Outlays from current balances.....         131         131         130
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         149         177         167
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         175         175         141
90.00 Outlays...........................         149         177         167
---------------------------------------------------------------------------

    The Construction, Minor Projects appropriation, which funds 
construction projects costing less than $4 million, is used to reduce 
risks to patient life and safety, correct code deficiencies, improve 
ambulatory care settings, and improve national cemeteries.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           3           4           3
25.2  Other services....................          32          37          26
26.0  Supplies and materials............           1           1           1
32.0  Land and structures...............         131         152         130
                                           ---------   ---------  ----------
99.9    Total obligations...............         167         194         160
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          50          80          80
---------------------------------------------------------------------------

[[Page 843]]



                                

        Grants for Construction of State Extended Care Facilities

    For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter existing 
hospital, nursing home and domiciliary facilities in State homes, for 
furnishing care to veterans as authorized by 38 U.S.C. 8131-8137, 
[$80,000,000] $37,000,000, to remain available until expended. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0181-0-1-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................          37          90          37
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          37          90          37
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......                      10
22.00 New budget authority (gross)......          47          80          37
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          47          90          37
23.95 New obligations...................         -37         -90         -37
24.40 Unobligated balance available, end 
        of year: Uninvested.............          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          47          80          37
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         124         120         163
73.10 New obligations...................          37          90          37
73.20 Total outlays (gross).............         -41         -47         -52
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         120         163         148
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          41          47          52
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          47          80          37
90.00 Outlays...........................          41          47          52
---------------------------------------------------------------------------

    In 1998, the Department plans to obligate $80 million to assist 
seven States to acquire or construct State home facilities for 
furnishing domiciliary or nursing home care to veterans and expand, 
remodel, or alter existing buildings for furnishing domiciliary, nursing 
home, or hospital care to veterans.

                                

        Grants for the Construction of State Veterans Cemeteries

    For grants to aid States in establishing, expanding, or improving 
State veteran cemeteries as authorized by 38 U.S.C. 2408, $10,000,000, 
to remain available until expended. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0183-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................           5          10          10
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................           5          10          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           4
22.00 New budget authority (gross)......           1          10          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5          10          10
23.95 New obligations...................          -5         -10         -10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................           1          10          10
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          14          13          21
73.10 New obligations...................           5          10          10
73.20 Total outlays (gross).............          -6          -2          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          13          21          27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           6           2           5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1          10          10
90.00 Outlays...........................           6           2           5
---------------------------------------------------------------------------

    This program enables the Department to assist States in 
establishing, expanding, or improving State-operated veterans 
cemeteries.

                                

Public enterprise funds:

                         Parking Revolving Fund

    For the parking revolving fund as authorized by 38 U.S.C. 8109, 
income from fees collected, to remain available until expended, which 
shall be available for all authorized expenses except operations and 
maintenance costs, which will be funded from ``Medical care''. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: parking leases           1           1           1
09.01 Capital Investment: parking 
        construction program............          19          11           9
                                           ---------   ---------  ----------
10.00   Total obligations...............          20          12          10
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          35          30          21
22.00 New budget authority (gross)......          15           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          50          33          24
23.95 New obligations...................         -20         -12         -10
24.40 Unobligated balance available, end 
        of year: Uninvested.............          30          21          14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          12
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          15           3           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           8          20          21
73.10 New obligations...................          20          12          10
73.20 Total outlays (gross).............          -8         -11         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          20          21          21
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           5           8           7
86.97 Outlays from new permanent 
        authority.......................           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           8          11          10
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -3          -3          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          12
90.00 Outlays...........................           5           8           7
---------------------------------------------------------------------------



[[Page 844]]



    The Parking Revolving Fund provides funding for the construction and 
lease of parking facilities at various medical centers. Existing 
resources will be used to construct a parking garage at the Denver VA 
Medical Center.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
23.2  Direct obligations: Rental 
        payments to others..............           1           1           1
32.0  Reimbursable obligations: Land and 
        structures......................          19          11           9
                                           ---------   ---------  ----------
99.9    Total obligations...............          20          12          10
---------------------------------------------------------------------------

                                

                      Pershing Hall Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4018-0-3-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......           1           1           1
24.40 Unobligated balance available, end 
        of year: Uninvested.............           1           1           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           1           1           1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           1           1           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    The Pershing Hall Revolving Fund was created to operate and manage 
Pershing Hall, an asset of the United States, located in Paris, France. 
All operating expenses for Pershing Hall are borne by the Revolving Fund 
and all receipts generated by the operation of Pershing Hall are 
deposited in the Revolving Fund.

    To facilitate account restructuring and consolidation, the Pershing 
Hall Revolving Fund also reflects budget information for the Nursing 
Home Revolving Fund and Grants to the Republic of the Philippines. The 
Nursing Home Revolving Fund provides for the construction, alteration, 
and acquisition (including site acquisition) of nursing home facilities 
and is available only as provided in appropriations acts. The Grants to 
the Republic of the Philippines previously provided for the effective 
care and treatment of U.S. veterans in the Veterans Memorial Medical 
Center (VMMC). However, with the suspension of U.S. veteran admission to 
the VMMC, the continuing appropriation of U.S. funds to maintain and 
upgrade the physical plant at this facility was discontinued.

                                


 
                       DEPARTMENTAL ADMINISTRATION

                       General Operating Expenses

    For necessary operating expenses of the Department of Veterans 
Affairs, not otherwise provided for, including uniforms or allowances 
therefor; not to exceed $25,000 for official reception and 
representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security guard 
services, and the Department of Defense for the cost of overseas 
employee mail; [$786,135,000] $849,661,000: Provided, That funds under 
this heading shall be available to administer the Service Members 
Occupational Conversion and Training Act[: Provided further, That none 
of the funds made available under this heading may be used for the 
relocation of the loan guaranty divisions of the Department of Veterans 
Affairs Regional Office in St. Petersburg, Florida to the Department of 
Veterans Affairs Regional Office in Atlanta, Georgia]. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Veterans benefits:
00.04     Compensation and pensions.....         476         456         504
00.05     Education.....................          71          68          71
00.06     Vocational rehabilitation and 
            counseling..................          77          69          73
00.09     Insurance\1\..................           2           3           3
00.11     General administration........         201         190         199
09.01 Administration of housing credit 
        programs........................         139         161         160
09.02 Administration of other credit 
        programs........................           1           1           1
09.03 Administration of insurance 
        programs........................          34          36          39
09.04 Other reimbursable programs.......          77         136         174
                                           ---------   ---------  ----------
09.99   Total reimbursable program......         251         334         374
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,078       1,120       1,224
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,079       1,120       1,224
22.30 Unobligated balance expiring......          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,078       1,120       1,224
23.95 New obligations...................      -1,078      -1,120      -1,224
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         828         786         850
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         251         334         374
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,079       1,120       1,224
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         128         138          79
73.10 New obligations...................       1,078       1,120       1,224
73.20 Total outlays (gross).............      -1,067      -1,179      -1,217
73.40 Adjustments in expired accounts...          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         138          79          85
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         715         707         765
86.93 Outlays from current balances.....         101         138          79
86.97 Outlays from new permanent 
        authority.......................         251         334         374
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,067       1,179       1,217
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -251        -334        -374
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         828         786         850
90.00 Outlays...........................         816         845         843
---------------------------------------------------------------------------
    \1\ The total cost of administering veterans insurance programs is 
funded through direct appropriations to this account, and through 
reimbursements from the insurance trust fund.

    This appropriation provides for the administration of nonmedical 
veterans benefits through the Veterans Benefits Administration (VBA) and 
the Department's top management direction and administrative support, 
including data processing, fiscal, personnel, and legal services.

    Veterans benefits.--Determines eligibility and adjudicates all 
claims for compensation, pensions, educational assistance, housing loan 
assistance, and insurance awards. Administrative resources are based on 
the Presidential policy of not paying compensation benefits for tobacco-
related claims based solely on tobacco use during military service. A 
summary of VBA's program objectives and anticipated workload is included 
in the following paragraphs. Workload data for this program is shown 
below. Specific performance goals relating

[[Page 845]]

to the processing of veterans benefits are contained in VA's annual 
performance plan.

    Compensation and pensions.--Provides timely and efficient processing 
of claims for veterans and dependents relating to compensation and 
pension benefits under the various laws enacted by Congress.
          

                                WORKLOAD

                     [Claims completed in thousands]

                                     1997 actual    1998 
                                                  projected     1999 
                                                              projected
Compensation and Pension:
  Original and reopened compensation 
    claims..........................         510         571         600
  Original and reopened pension 
    claims..........................         166         170         176

    Education.--Provides timely and efficient processing of claims for 
veterans and dependents relating to education benefits under the various 
laws enacted by Congress.


                                WORKLOAD

                             [In thousands]

                                     1997 actual  1998 est.   1999 est.
Education:
  Original claims...................         146         144         144
  Adjustments/supplemental claims...       1,045       1,002       1,003

     Loan guaranty.--Facilitates the extension of private capital, on 
more liberal terms than generally available to nonveterans, to: assist 
veterans and servicepersons in obtaining housing credits; provide grants 
to aid permanently and totally disabled veterans in acquiring specially 
adapted housing; and assist veterans in retaining their homes during 
periods of temporary economic difficulty through intensive supplemental 
mortgage loan servicing.

                                WORKLOAD

                             [In thousands]

                                     1997 actual  1998 est.   1999 est.
Loan guaranty:
  Construction and valuation........         342         340         316
  Loan processing...................         725         720         670
  Loan service and claims...........         365         370         375
  Property management...............          50          55          58

    Vocational rehabilitation and counseling.--Provides counseling and 
assistance to enable veterans with service-connected disabilities to 
achieve maximum independence in daily living and, to the maximum extent 
feasible, obtain and maintain suitable employment.

                                WORKLOAD

                             [In thousands]

                                     1997 actual  1998 est.   1999 est.
Vocational rehabilitation and 
    counseling:
  Evaluation and planning...........          51          50          50
  Rehabilitation services...........          48          53          53
  Employment services status........          10           9           9
  Vocational/educational counseling.          15          14          14

    Insurance.--Provides life insurance protection for servicepersons 
and veterans. The VA administers five life insurance programs and 
supervises three others through contractual agreements with commercial 
companies.

                                WORKLOAD

                             [In thousands]

                                     1997 actual  1998 est.   1999 est.
Insurance:
  Policy service actions............       1,413       1,721       1,798
  Collections.......................       3,694       3,471       3,263
  Disability claims.................          40          12          10
  Insurance awards..................         573         608       1,260

    General administration.--Includes Departmental executive direction 
and supporting offices, the General Counsel, the Board of Veterans 
Appeals, and the Board of Contract Appeals.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         472         460         468
11.5      Other personnel compensation..          11           8          19
                                           ---------   ---------  ----------
11.9        Total personnel compensation         483         468         487
12.1    Civilian personnel benefits.....         100         100         104
13.0    Benefits for former personnel...          12          10           1
        Travel and transportation of 
            persons:
21.0      Employee travel...............           8           7           8
21.0      Interagency motor pool 
            payments....................           2           2           2
22.0    Transportation of things........           1           2           2
23.1    Rental payments to GSA..........          75          69          72
23.2    Rental payments to others.......           6           7           7
23.3    Communications, utilities, and 
          miscellaneous charges.........          32          28          47
24.0    Printing and reproduction.......           2           2           2
25.1    Advisory and assistance services           2           1
25.2    Other services..................          74          77          97
26.0    Supplies and materials..........          12           8          10
31.0    Equipment.......................          18           5          11
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         827         786         850
99.0  Reimbursable obligations..........         251         334         374
                                           ---------   ---------  ----------
99.9    Total obligations...............       1,078       1,120       1,224
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment\1\...      10,931      10,326      10,283
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       3,228       3,250       3,515
---------------------------------------------------------------------------
    \1\ Reflects FTE treated as reimbursements in all years and the 
effects of Credit Reform, per P.L. 101-508.

                                

                       Office of Inspector General

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
[$31,013,000] $32,702,000. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct program....................          31          31          33
01.01 Reimbursable program..............           1           2           2
                                           ---------   ---------  ----------
10.00   Total obligations...............          32          33          35
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          33          33          35
23.95 New obligations...................         -32         -33         -35
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          31          31          33
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          33          33          35
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...           5           5           7
73.10 New obligations...................          32          33          35
73.20 Total outlays (gross).............         -32         -31         -33
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           5           7           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          27          29          31

[[Page 846]]

86.93 Outlays from current balances.....           3           2           2
86.97 Outlays from new permanent 
        authority.......................           2           2           2
86.98 Outlays from permanent balances...           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          32          31          33
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2          -2          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          31          31          33
90.00 Outlays...........................          31          29          31
---------------------------------------------------------------------------

    This appropriation provides Department-wide audit, investigation, 
and essential inspection and support functions to identify and report 
weaknesses and deficiencies in VA programs and operations that create 
conditions for existing or potential instances of fraud, waste, and 
mismanagement. The audit function plans and conducts internal 
programmatic audits of all facets of VA operations. The investigative 
function conducts proactive and reactive investigations of improper and 
illegal activities involving VA programs, personnel, beneficiaries, and 
other third parties. The support function provides normal office 
administrative support as well as contract audit services for: all 
applicable Department contracts; personnel, and information security for 
the VA; and, legislatively mandated medical care quality assurance 
review and oversight.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          22          22          24
12.1    Civilian personnel benefits.....           4           5           5
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.1    Rental payments to GSA..........           2           1           1
25.2    Other services..................           1           1           1
31.0    Equipment.......................           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          32          31          33
99.0  Reimbursable obligations..........                       2           2
                                           ---------   ---------  ----------
99.9    Total obligations...............          32          33          35
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         322         323         317
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          17          20          23
---------------------------------------------------------------------------

                                

                        National Cemetery System

    For necessary expenses for the maintenance and operation of the 
National Cemetery System, not otherwise provided for, including uniforms 
or allowances therefor; cemeterial expenses as authorized by law; 
purchase of [three] six passenger motor vehicles for use in cemeterial 
operations; and hire of passenger motor vehicles, [$84,183,000] 
$92,006,000. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct obligations................          77          84          92
                                           ---------   ---------  ----------
10.00   Total obligations...............          77          84          92
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          77          84          92
23.95 New obligations...................         -77         -84         -92
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          77          84          92
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          12          10          11
73.10 New obligations...................          77          84          92
73.20 Total outlays (gross).............         -78         -83         -91
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          10          11          12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          69          76          83
86.93 Outlays from current balances.....           9           7           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          78          83          91
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          77          84          92
90.00 Outlays...........................          77          83          91
---------------------------------------------------------------------------

    Specific performance goals relating to the National Cemetery System 
are contained in VA's annual performance plan.

    The mission of the National Cemetary System is to honor the military 
service of our Nation's veterans. The National Cemetery System provides 
a dignified burial and lasting memorial for veterans and their eligible 
family members and it maintains all veterans' cemeteries as national 
shrines. The National Cemetery System's vision is to provide a lasting 
tribute to our national veterans by being mission-driven, results-
oriented, and customer-focused. There are four related programs managed 
by the National Cemetery System including: (1) burying eligible veterans 
and family members in national cemeteries and maintaining the graves and 
their environs as national shrines; (2) providing aid to States in 
establishing, expanding, or improving State veteran cemeteries; (3) 
providing headstones and markers for the graves of eligible persons in 
national, State, and private cemeteries; and (4) providing presidential 
memorial certificates to family and friends of deceased veterans, 
recognizing the veteran's contribution and service to the Nation.

    To facilitate account restructuring and consolidation, the National 
Cemetery System also reflects budget information for the National 
Cemetery Gift Fund. Through this Trust Fund, the Secretary is authorized 
to accept gifts and bequests which are made for the purpose of 
beautifying national cemeteries or are determined to be beneficial to 
such cemeteries, or are made for the purpose of the operation, 
maintenance, or improvement of the National Memorial Cemetery of 
Arizona.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          38          40          42
11.3    Other than full-time permanent..           5           6           6
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          43          46          48
12.1  Civilian personnel benefits.......          12          13          14
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           4           4           5
25.2  Other services....................           7           9          11
26.0  Supplies and materials............           6           6           7

[[Page 847]]

31.0  Equipment.........................           3           4           5
                                           ---------   ---------  ----------
99.9    Total obligations...............          77          84          92
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,283       1,348       1,369
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                               Supply Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Cost of goods sold................         443         554         578
09.01 Other.............................          40          47          47
09.02 Cost of goods sold................          10          10          10
09.02 Other.............................           1           1           1
09.03 Procurement, distribution, and 
        services program: Purchase of 
        equipment.......................          11           3           3
                                           ---------   ---------  ----------
10.00   Total obligations...............         505         615         639
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          58          83          83
22.00 New budget authority (gross)......         530         615         639
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         588         698         722
23.95 New obligations...................        -505        -615        -639
24.40 Unobligated balance available, end 
        of year: Uninvested.............          83          83          83
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         501         615         639
68.10   Change in orders on hand from 
          Federal sources...............          29
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         530         615         639
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         530         615         639
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

72.40   Obligated balance: Uninvested...          57          33          33
72.95   Orders on hand from Federal 
          sources.......................         203         232         232
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         260         265         265
73.10 New obligations...................         505         615         639
73.20 Total outlays (gross).............        -500        -615        -639
      Unpaid obligations, end of year:

74.40   Obligated balance: Uninvested...          33          33          33
74.95   Orders on hand from Federal 
          sources.......................         232         232         232
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         265         265         265
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         500         615         639
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -501        -615        -639
88.95 Change in orders on hand from 
        Federal sources.................         -29
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -1
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1997 actual  1998 est.   1999 est.
Enacted/requested:
  Budget Authority..................
  Outlays...........................          -1
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................
  Outlays...........................
                                    ------------------------------------
Total:
  Budget Authority..................
  Outlays...........................          -1
                                    ====================================

    Under the provisions of 38 U.S.C. 8121, the Supply Fund is 
responsible for the operation and maintenance of a supply system for VA. 
The Supply Fund is an intragovernmental revolving fund without fiscal 
year limitations.

    Budget program.--The fund provides financial support for: (1) a 
National Acquisition Center or central contracting office; (2) the 
maintenance of field station inventories; (3) a service and distribution 
center; (4) a service and reclamation program; (5) a national 
prosthetics distribution center; and (6) an asset management service.

    Costs for the administration of supply activities at VA field 
stations are not financed by the Supply Fund. These costs are charged 
directly to applicable appropriations accounts.

    Financing.--Costs of supplies, equipment, and services acquired 
through the Supply Fund and Supply Fund operating costs are recovered 
through reimbursements from the VA appropriations and other Government 
agencies receiving goods and services. For 1999, Supply Fund sales are 
estimated to reach $618 million. Average inventory needed to support 
those sales will be $39 million.

    Operating results.--The Fund operated at a profit of $9 million in 
1997. The new total of retained earnings is $61 million, which has been 
used to finance inventory growth. Operating expense as related to sales 
was 11 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          17          19          21
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          18          20          22
12.1  Civilian personnel benefits.......           3           4           4
21.0  Travel and transportation of 
        persons.........................           2           4           4
22.0  Transportation of things..........           1           1           1
23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           2           2
24.0  Printing and reproduction.........          10          10          10
25.1  Advisory and assistance services..          14          13          13
26.0  Supplies and materials............         235         308         322
31.0  Equipment.........................         220         252         260
                                           ---------   ---------  ----------
99.9    Total obligations...............         505         615         639
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         350         375         399
---------------------------------------------------------------------------

                                

                               Supply Fund

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-4-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.03 Procurement, distribution, and 
        services program: Purchase of 
        equipment.......................                                   5
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          31.0).........................                                   5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                   5
23.95 New obligations...................                                  -5
----------------------------------------------------------------------------

[[Page 848]]



    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                   5
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                                   5
73.20 Total outlays (gross).............                                  -5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                                   5
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                  -5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    In 1999, the budget proposes that VA be given the authority to 
charge lenders a fee of $25 for each VA loan that is guaranteed. VA will 
charge this fee for 3 years, and all fees collected would be earmarked 
for use in developing, maintaining, and enhancing a VA Loan Information 
System (VALIS) that would interact with the information systems used by 
lenders to make VA guaranteed loans. Collections would be deposited into 
the Supply Fund and be available solely for the VALIS system. VA may 
spend up to $15 million of its collections on this information system. 
After September 30, 2003, any unobligated collections would be 
transferred as miscellaneous receipts to the Treasury.

                                

                             Franchise Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............          56          68          74
                                           ---------   ---------  ----------
10.00   Total obligations...............          56          68          74
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......                       3           3
22.00 New budget authority (gross)......          59          68          74
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          59          71          77
23.95 New obligations...................         -56         -68         -74
24.40 Unobligated balance available, end 
        of year: Uninvested.............           3           3           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          59          68          74
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...                       8          12
73.10 New obligations...................          56          68          74
73.20 Total outlays (gross).............         -47         -64         -73
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...           8          12          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          47          56          61
86.98 Outlays from permanent balances...                       8          12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          47          64          73
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -59         -68         -74
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -11          -4          -1
---------------------------------------------------------------------------

    VA was chosen as a pilot Franchise Fund agency under the Government 
Management and Reform Act, P.L. 103-356, of 1994. Established in FY 
1997, administrative services included in the Franchise Fund are 
financed on a fee-for-service basis rather than through VA's General 
Operating Expenses Appropriation. VA's franchise fund is a revolving 
fund used to supply common administrative services on the basis of 
services supplied. Service Activities are expected to have net billings 
of about $73.8 million and employ 749 people, who were transferred from 
their parent organizations.

    The Franchise Fund concept is intended to increase competition for 
government administrative services resulting in lower costs and higher 
quality.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          21          30          30
12.1  Civilian personnel benefits.......           4           7           8
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           2           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........          19          23          23
25.2  Other services....................           6           4           8
26.0  Supplies and materials............           1           1           2
31.0  Equipment.........................           2
                                           ---------   ---------  ----------
99.9    Total obligations...............          56          68          74
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         422         664         742
---------------------------------------------------------------------------

                                


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  36-243100  Fees and other charges for 
    medical services, VA................         455           9
  36-247300  Contributions from military 
    personnel, Veteran's Educational 
    Assistance Act of 1984..............         185         248         249
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         640         257         249
---------------------------------------------------------------------------

                                

                        Administrative Provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for fiscal year [1998] 1999 for 
``Compensation and pensions'', ``Readjustment benefits'', and ``Veterans 
insurance and indemnities'' may be transferred to any other of the 
mentioned appropriations.
    Sec. 102. Appropriations available to the Department of Veterans 
Affairs for fiscal year [1998] 1999  for salaries and expenses shall be 
available for services authorized by 5 U.S.C. 3109.
    Sec. 103. No appropriations in this Act for the Department of 
Veterans Affairs (except the appropriations for ``Construction, major 
projects'', ``Construction, minor projects'', and the ``Parking 
revolving fund'') shall be available for the purchase of any site for or 
toward the construction of any new hospital or home.
    Sec. 104. No appropriations in this Act for the Department of 
Veterans Affairs shall be available for hospitalization or examination 
of any persons (except beneficiaries entitled under the laws bestowing

[[Page 849]]

such benefits to veterans, and persons receiving such treatment under 5 
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost 
is made to the ``Medical care'' account at such rates as may be fixed by 
the Secretary of Veterans Affairs.
    Sec. 105. Appropriations available to the Department of Veterans 
Affairs for fiscal year [1998] 1999 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and indemnities'' 
shall be available for payment of prior year accrued obligations 
required to be recorded by law against the corresponding prior year 
accounts within the last quarter of fiscal year [1997] 1998.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year [1998] 1999  shall be available to pay 
prior year obligations of corresponding prior year appropriations 
accounts resulting from title X of the Competitive Equality Banking Act, 
Public Law 100-86, except that if such obligations are from trust fund 
accounts they shall be payable from ``Compensation and pensions''.
    Sec. 107. Notwithstanding any other provision of law, during fiscal 
year [1998] 1999, the Secretary of Veterans Affairs shall, from the 
National Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' 
Special Life Insurance Fund (38 U.S.C. 1923), and the United States 
Government Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General 
operating expenses'' account for the cost of administration of the 
insurance programs financed through those accounts: Provided, That 
reimbursement shall be made only from the surplus earnings accumulated 
in an insurance program in fiscal year [1998] 1999, that are available 
for dividends in that program after claims have been paid and 
actuarially determined reserves have been set aside: Provided further, 
That if the cost of administration of an insurance program exceeds the 
amount of surplus earnings accumulated in that program, reimbursement 
shall be made only to the extent of such surplus earnings: Provided 
further, That the Secretary shall determine the cost of administration 
for fiscal year [1998] 1999, which is properly allocable to the 
provision of each insurance program and to the provision of any total 
disability income insurance included in such insurance program.
    [Sec. 108. Section 214(l)(1)(D) of the Immigration and Nationality 
Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the Immigration 
and Nationality Technical Corrections Act of 1994 and redesignated as 
subsection (l) by section 671(a)(3)(A) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996) is amended by inserting before 
the period at the end the following: ``, except that, in the case of a 
request by the Department of Veterans Affairs, the alien shall not be 
required to practice medicine in a geographic area designated by the 
Secretary''.]
    [Sec. 109. In accordance with section 1557 of title 31, United 
States Code, the following obligated balance shall be exempt from 
subchapter IV of chapter 15 of such title and shall remain available for 
expenditure without fiscal year limitation: Funds obligated by the 
Department of Veterans Affairs for lease number 757-084B-001-91 from 
funds made available in the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 1993 
(Public Law 102-389) under the heading ``Medical care''.]
    Sec. 108. In accordance with section 1557 of title 31, United States 
Code, the following obligated balances shall be exempt from subchapter 
IV of chapter 15 of such title and shall remain available for 
expenditure without fiscal year limitation: (1) funds obligated by the 
Department of Veterans Affairs for lease numbers 084B-05-94, 084B-07-94, 
and 084B-027-94 from funds made available in the Department of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1994 (Public Law 103-124) under the heading 
``Medical care''; and (2) funds obligated by the Department of Veterans 
Affairs for lease number 084B-002-96 from funds made available in the 
Department of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1995 (Public Law 103-327) under 
the heading ``Medical care''.
    Sec. 109. Beginning in fiscal year 1999, and thereafter, funds 
available in any Department of Veterans Affairs appropriation or fund 
for salaries and other administrative expenses shall also be available 
to reimburse the Office of Resolution Management and the Office of 
Employment Discrimination Complaint Adjudication for all services 
provided at rates which will recover actual costs. Payments may be made 
in advance for services to be furnished based on estimated costs. 
Amounts received shall be credited to the General Operating Expenses 
account for use by the office that provided the service. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1998.)
  

                                


 
                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of this Act 
are expendable for travel expenses and no specific limitation has been 
placed thereon, the expenditures for such travel expenses may not exceed 
the amounts set forth therefore in the budget estimates submitted for 
the appropriations: Provided, That this provision does not apply to 
accounts that do not contain an object classification for travel: 
Provided further, That this section shall not apply to travel performed 
by uncompensated officials of local boards and appeal boards of the 
Selective Service System; to travel performed directly in connection 
with care and treatment of medical beneficiaries of the Department of 
Veterans Affairs; to travel performed in connection with major disasters 
or emergencies declared or determined by the President under the 
provisions of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act; to travel performed by the Offices of Inspector General 
in connection with audits and investigations; or to payments to 
interagency motor pools where separately set forth in the budget 
schedules: Provided further, That if appropriations in titles I, II, and 
III exceed the amounts set forth in budget estimates initially submitted 
for such appropriations, the expenditures for travel may correspondingly 
exceed the amounts therefore set forth in the estimates in the same 
proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban Development and the 
Selective Service System shall be available in the current fiscal year 
for purchase of uniforms, or allowances therefor, as authorized by 5 
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as 
authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for services and 
facilities of Federal National Mortgage Association, Government National 
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal 
Financing Bank, Federal Reserve banks or any member thereof, Federal 
Home Loan banks, and any insured bank within the meaning of the Federal 
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
         (1) pursuant to a certification of an officer or employee of 
    the United States unless--
             (A) such certification is accompanied by, or is part of, a 
        voucher or abstract which describes the payee or payees and the 
        items or services for which such expenditure is being made; or
             (B) the expenditure of funds pursuant to such 
        certification, and without such a voucher or abstract, is 
        specifically authorized by law; and
         (2) unless such expenditure is subject to audit by the General 
    Accounting Office or is specifically exempt by law from such audit.
    Sec. 406. None of the funds provided in this Act to any department 
or agency may be expended for the transportation of any officer or 
employee of such department or agency between his domicile and his place 
of employment, with the exception of any officer or employee authorized 
such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
    Sec. 407. None of the funds provided in this Act may be used for 
payment, through grants or contracts, to recipients that do not share in 
the cost of conducting research resulting from proposals not 
specifically solicited by the Government: Provided, That the extent of 
cost sharing by the recipient shall reflect the mutuality of interest of 
the grantee or contractor and the Government in the research.
    Sec. 408. None of the funds in this Act may be used, directly or 
through grants, to pay or to provide reimbursement for payment of the 
salary of a consultant (whether retained by the Federal Government or a 
grantee) at more than the daily equivalent of the rate paid for level IV 
of the Executive Schedule, unless specifically authorized by law.

[[Page 850]]

    Sec. 409. None of the funds provided in this Act shall be used to 
pay the expenses of, or otherwise compensate, non-Federal parties 
intervening in regulatory or adjudicatory proceedings. Nothing herein 
affects the authority of the Consumer Product Safety Commission pursuant 
to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et 
seq.).
    Sec. 410. Except as otherwise provided under existing law or under 
an existing Executive order issued pursuant to an existing law, the 
obligation or expenditure of any appropriation under this Act for 
contracts for any consulting service shall be limited to contracts which 
are: (1) a matter of public record and available for public inspection; 
and (2) thereafter included in a publicly available list of all 
contracts entered into within 24 months prior to the date on which the 
list is made available to the public and of all contracts on which 
performance has not been completed by such date. The list required by 
the preceding sentence shall be updated quarterly and shall include a 
narrative description of the work to be performed under each such 
contract.
    Sec. 411. Except as otherwise provided by law, no part of any 
appropriation contained in this Act shall be obligated or expended by 
any executive agency, as referred to in the Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for 
services unless such executive agency: (1) has awarded and entered into 
such contract in full compliance with such Act and the regulations 
promulgated thereunder; and (2) requires any report prepared pursuant to 
such contract, including plans, evaluations, studies, analyses and 
manuals, and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared pursuant to 
such contract, to contain information concerning: (A) the contract 
pursuant to which the report was prepared; and (B) the contractor who 
prepared the report pursuant to such contract.
    Sec. 412. Except as otherwise provided in section 406, none of the 
funds provided in this Act to any department or agency shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of such department or 
agency.
    Sec. 413. None of the funds provided in this Act to any department 
or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per 
gallon average of less than 22 miles per gallon.
    Sec. 414. None of the funds appropriated in title I of this Act 
shall be used to enter into any new lease of real property if the 
estimated annual rental is more than $300,000 unless the Secretary 
submits, in writing, a report to the Committees on Appropriations of the 
Congress and a period of 30 days has expired following the date on which 
the report is received by the Committees on Appropriations.
    Sec. 415. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
     (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    Sec. 416. None of the funds appropriated in this Act may be used to 
implement any cap on reimbursements to grantees for indirect costs, 
except as published in Office of Management and Budget Circular A-21.
    Sec. 417. Such sums as may be necessary for fiscal year [1998] 1999 
pay raises for programs funded by this Act shall be absorbed within the 
levels appropriated in this Act.
    Sec. 418. None of the funds made available in this Act may be used 
for any program, project, or activity, when it is made known to the 
Federal entity or official to which the funds are made available that 
the program, project, or activity is not in compliance with any Federal 
law relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Sec. 419. Corporations and agencies of the Department of Housing and 
Urban Development which are subject to the Government Corporation 
Control Act, as amended, are hereby authorized to make such 
expenditures, within the limits of funds and borrowing authority 
available to each such corporation or agency and in accord with law, and 
to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Act as may be necessary in 
carrying out the programs set forth in the budget for [1998] 1999 for 
such corporation or agency except as hereinafter provided: Provided, 
That collections of these corporations and agencies may be used for new 
loan or mortgage purchase commitments only to the extent expressly 
provided for in this Act (unless such loans are in support of other 
forms of assistance provided for in this or prior appropriations Acts), 
except that this proviso shall not apply to the mortgage insurance or 
guaranty operations of these corporations, or where loans or mortgage 
purchases are necessary to protect the financial interest of the United 
States Government.
    Sec. 420. Notwithstanding section 320(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant 
to authorization under such section for fiscal year [1998] 1999 and 
prior fiscal years may be used for implementing comprehensive 
conservation and management plans.
    [Sec. 421. Such funds as may be necessary to carry out the orderly 
termination of the Office of Consumer Affairs shall be made available 
from funds appropriated to the Department of Health and Human Services 
for fiscal year 1998.]
    Sec. [422] 421. Notwithstanding any other provision of law, the term 
``qualified student loan'' with respect to national service education 
awards shall mean any loan made directly to a student by the Alaska 
Commission on Postsecondary Education, in addition to other meanings 
under section 148(b)(7) of the National and Community Service Act. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1998.)