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


[[Page 859]]

 
                     DEPARTMENT OF VETERANS AFFAIRS

    The 2000 budget provides $19,995 million in discretionary funding 
for veterans health, benefits, and other services, including $19,246 
million in gross discretionary budget authority and $749 million in 
anticipated medical collections.

    The account by account information provided in the following budget 
schedules is supplemented by a department-wide strategic plan, published 
in September 1997, a performance plan submitted annually with the 
Budget, and an annual accountability report. The performance plan 
contains annual goals for each of the Department of Veterans Affairs' 
(VA) programs along with historic performance data, where available. The 
accountability report includes audited financial statements along with 
actual program performance as measured against goals.

    VA published an initial strategic plan in September, 1997. The 
Department will publish a new strategic plan in 2000.

    The 2000 performance plan highlights 24 key measures determined by 
the VA's top executives as overall measures of departmental performance. 
In addition, the performance plan identifies the total budgetary 
resources, including FTE, associated with each of VA's major programs.

                                


 
                     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), $17,306,000,000, plus 
reimbursements: Provided, That of the funds made available under this 
heading, [$778,000,000] $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, [1999] 2000, and shall remain 
available until September 30, [2000] 2001: Provided further, That of the 
funds made available under this heading, not to exceed [$27,420,000 may 
be transferred to and merged with the appropriation for ``General 
operating expenses'': Provided further, That of the funds made available 
under this heading, up to $10,000,000 shall be for implementation of the 
Primary Care Providers Incentive Act, contingent upon enactment of 
authorizing legislation.] $833,550,000 shall be available until 
September 30, 2001.
    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, 
1999.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           1          54          67
    Receipts:
02.01 Medical care collections..........         700         638         762
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         701         692         829
    Appropriation:
05.01 Medical care......................        -647        -625        -749
07.99 Total balance, end of year........          54          67          80
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01       Acute hospital care.........       4,657       4,458       4,024
00.02       Rehabilitative care.........         362         353         337
00.03       Psychiatric care............       1,223       1,011         873
00.04       Nursing home care...........       1,698       1,859       2,018
00.05       Subacute care...............         384         311         267
00.06       Residential care............         304         349         379
00.07       Outpatient care.............       6,759       7,906       8,567
00.08       Miscellaneous benefits and 
              services..................         834         843         859
00.09     CHAMPVA.......................         113         119         129
                                           ---------   ---------  ----------
00.91       Total operating expenses....      16,334      17,209      17,453
        Capital investment:
          Provision of veterans health 
              care:
01.01       Acute hospital care.........         356         260         168
01.02       Rehabilitative care.........          28          20          14
01.03       Psychiatric care............          16          59          37
01.04       Nursing home care...........          75         108          84
01.05       Subacute care...............          23          18          11
01.06       Residential care............          20          20          16
01.07       Outpatient care.............         464         460         359
01.08       Miscellaneous benefits and 
              services..................          33          49          36
                                           ---------   ---------  ----------
01.91       Total capital investment....       1,015         994         725
                                           ---------   ---------  ----------
01.92     Total direct program..........      17,349      18,203      18,178
09.01 Reimbursable program..............          92         147         186
                                           ---------   ---------  ----------
10.00   Total new obligations...........      17,441      18,350      18,364
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         664       1,039         742
22.00 New budget authority (gross)......      17,816      18,051      18,241
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      18,480      19,093      18,986
23.95 Total new obligations.............     -17,441     -18,350     -18,364
23.98 Unobligated balance expiring......          -1
24.40 Unobligated balance available, end 
        of year.........................       1,039         742         622
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................      17,077      17,306      17,306
        Appropriation (special fund, 
            indefinite):
40.25     Appropriation (special fund, 
            indefinite).................         507         625         749
40.25     Appropriation (special fund, 
            indefinite).................         140
41.00   Transferred to other accounts...                     -27
                                           ---------   ---------  ----------
43.00     Appropriation (total).........      17,724      17,904      18,055

[[Page 860]]

      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          92         147         186
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      17,816      18,051      18,241
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       2,764       2,734       3,176
73.10 Total new obligations.............      17,441      18,350      18,364
73.20 Total outlays (gross).............     -17,363     -17,906     -17,895
73.40 Adjustments in expired accounts...        -108
73.45 Adjustments in unexpired accounts.                      -3          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       2,734       3,176       3,642
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority      14,872      15,153      15,029
86.93 Outlays from current balances.....       2,399       2,607       2,680
86.97 Outlays from new permanent 
        authority.......................          92         147         186
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      17,363      17,906      17,895
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -52         -82        -104
88.40     Non-Federal sources...........         -40         -65         -82
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -92        -147        -186
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      17,724      17,904      18,055
90.00 Outlays...........................      17,271      17,759      17,709
---------------------------------------------------------------------------

    For 2000, the budget provides a total VA Medical Care program level 
of $18,055 million, an increase of $124 million over the 1999 level. 
This includes $17,306 million in appropriated budget authority and $749 
million in anticipated medical collections. VA's authority to retain all 
collections from third party insurance companies, other copayments, and 
related medical fees is relatively uncommon in the federal government 
and critical to VA's success in providing care to veterans. As a result 
of this flexibility, VA will treat an estimated 1.7 percent more 
patients in 2000 than in 1999.

    The 2000 budget includes a legislative proposal to authorize VA to 
cover the cost of out-of-network emergency care for enrolled veterans 
with disabilities related to military service. Under law, these veterans 
have top priority for VA medical services. This legislation would ensure 
that these veterans have access to emergency care when treatment in VA 
facilities is not an option.

    The 2000 budget also includes a legislative proposal to permanently 
extend current legal provisions due to expire in 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 2000 are estimated to decrease 
    by $523 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:

                                     1998 actual  1999 est.   2000 est.
  Patients treated..................     441,735     388,947     338,874
  Average daily census..............       9,030       7,817       6,546
  Average employment................      55,446      48,449      40,271

        Rehabilitative care.--A decrease of $21 million in 2000 is 
    estimated for the provision of rehabilitative care, including spinal 
    cord injury care.
        Estimated operating levels are:

                                     1998 actual  1999 est.   2000 est.
  Patients treated..................      17,303      15,827      14,719
  Average daily census..............       1,346       1,225       1,127
  Average employment................       4,944       4,525       4,155

        Psychiatric care.--A decrease of $159 million is estimated in 
    2000 for the inpatient care of veterans with problems related to 
    mental illness, including alcohol and drug problems.

                                     1998 actual  I997 est.   2000 est.
  Patients treated..................     126,693     107,175      93,392
  Average daily census..............       6,324       4,933       3,993
  Average employment................      18,213      15,407      13,075

        Nursing home care.--In 2000, an increase of $140 million is 
    estimated for the care of residents in VA nursing homes, contract 
    nursing homes and State nursing homes.
        Estimated operating levels are:

                                     1998 actual  1999 est.   2000 est.
  Patients treated..................      96,568     106,723     111,953
  Average daily census..............      33,670      34,427      35,132
  Average employment................      20,365      22,060      22,536

        Subacute care.--A decrease of $51 million is estimated in 2000 
    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.

                                     1998 actual  1999 est.   2000 est.
Patients treated....................      45,850      48,733      48,771
Average daily census................       2,937       2,203       1,842
Average employment..................       6,177       4,933       4,092

        Residential care.--An increase of $27 million is estimated in 
    2000 for the care of veterans in locations other than their own 
    homes, such as residential rehabilitation and domiciliary care 
    programs. This increase and the following workload figures do not 
    reflect initiatives to expand services to homeless veterans in 2000.

                                     1998 actual  1999 est.   2000 est.
Patients treated....................      49,987      60,307      65,295
Average daily census................      10,662      11,360      11,586
Average employment..................       4,348       4,963       5,278

        Outpatient care.--An increase of $587 million is estimated in 
    2000 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

                                     1998 actual  1999 est.   2000 est.
  Medical visits (in thousands):
  Staff visits......................      33,417      35,857      37,645
  Fee visits........................       1,555       1,585       1,742
  Readjustment counseling...........         805         810         840
                                    ------------------------------------
        Total.......................      35,777      38,252      40,227
                                    ====================================
  Dental:
    Staff:
      Examinations..................     287,308     296,000     296,000
      Treatments....................     159,754     165,000     165,000
                                    ------------------------------------
        Total.......................     447,062     461,000     461,000
                                    ====================================
    Fee: Cases completed............      14,593      16,000      16,000
                                    ====================================
  Average employment................      67,783      73,644      77,636
                                    ====================================

        Miscellaneous benefits and services.--An increase of $5 million 
    is estimated in 2000 for the cost of this activity which 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.


[[Page 861]]


                                     1998 actual  1999 est.   2000 est.
  Average employment................       7,323       8,100       8,788

        Civilian health and medical program of the Department of 
    Veterans Affairs (CHAMPVA).--An increase of $10 million is estimated 
    in 2000 for private hospital and outpatient care for dependents and 
    survivors of certain veterans.

                                     1998 actual  1999 est.   2000 est.
  Average daily hospital census.....         146         146         146
  Outpatient (in thousands).........         982       1,076       1,178
  Average employment................         169         169         169

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       6,472       6,636       6,580
11.3      Other than full-time permanent         870         892         913
11.5      Other personnel compensation..         852         874         895
                                           ---------   ---------  ----------
11.9        Total personnel compensation       8,194       8,402       8,388
12.1    Civilian personnel benefits.....       1,965       2,022       2,089
13.0    Benefits for former personnel...          60          11          11
        Travel and transportation of 
            persons:
21.0      Employee travel...............          45          55          55
21.0      Beneficiary travel............         110         115         116
21.0      Interagency motor pool 
            payments....................          14          18          16
21.0      All other.....................          32          32          36
22.0    Transportation of things........          22          22          21
23.1    Rental payments to GSA..........          10          18          19
23.2    Rental payments to others.......          56          60          64
23.3    Communications, utilities, and 
          miscellaneous charges.........         457         474         480
24.0    Printing and reproduction.......          12          14          14
25.2    Other contractual services......       1,432       1,560       1,515
        Medical care:
25.6      Outpatient dental fees........          12          14          15
25.6      Medical and nursing fees......         301         319         365
25.6      Community nursing homes.......         255         275         303
25.6      Contract hospitalization......         165         185         213
25.6      Civilian Health and Medical 
            Program of the Department of 
            Veterans Affairs............         100         106         116
        Supplies and materials:
26.0      Supplies and materials........       2,768       3,134       3,190
26.0      Provisions....................          81          78          73
31.0    Equipment.......................         700         684         500
32.0    Land and structures.............         315         310         225
        Grants, subsidies, and 
            contributions:
41.0      Grants, subsidies, and 
            contributions...............         235         273         321
41.0      Grants to private 
            organizations...............           6          20          32
43.0    Interest and dividends..........           2           2           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      17,349      18,203      18,178
99.0  Reimbursable obligations..........          92         147         186
                                           ---------   ---------  ----------
99.9    Total new obligations...........      17,441      18,350      18,364
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......     183,743     180,692     174,107
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       1,025       1,558       1,893
---------------------------------------------------------------------------

                                

                              Medical Care

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-2-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01       Acute hospital care.........                                 -78
00.02       Rehabilitative care.........                                  -6
00.03       Psychiatric care............                                 -17
00.05       Subacute care...............                                  -5
00.07       Outpatient care.............                                -138
00.10     Emergency Care................                                 244
                                           ---------   ---------  ----------
10.00   Total new obligations...........
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............
----------------------------------------------------------------------------

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

    The 2000 budget includes a legislative proposal to authorize VA to 
cover the cost of out-of-network emergency care for enrolled veterans 
with compensable disabilities related to military service (Priority 
groups 1-3). Under law, these veterans have top priority for VA medical 
services. This legislation would ensure that these veterans have access 
to emergency care when treatment in VA facilities is not an option.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-2-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............                                 -98
11.3    Other than full-time permanent..                                 -10
11.5    Other personnel compensation....                                 -10
                                           ---------   ---------  ----------
11.9      Total personnel compensation..                                -118
12.1  Civilian personnel benefits.......                                 -28
25.2  Other contractual services........                                 244
26.0  Supplies and materials............                                 -98
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0160-2-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......                              -1,580
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......
---------------------------------------------------------------------------

                                

                    Other Medical, Smoking Cessation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0166-2-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 25.2).....................                                  56
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  56
23.95 Total new obligations.............                                 -56
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  56
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  56
73.20 Total outlays (gross).............                                 -56
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  56
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  56
90.00 Outlays...........................                                  56
---------------------------------------------------------------------------

    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 deliv

[[Page 862]]

ered 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 2000 budget. Once this program is authorized, the 
Administration will submit a budget amendment requesting an 
appropriation of $56 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, [2000] 2001, $316,000,000, 
plus reimbursements[: Provided, That of the funds made available under 
this heading, $6,000,000 is for the Musculoskeletal Disease Center, 
which amount shall remain available for obligation until expended]. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
00.01     Medical research..............         159         203         203
00.02     Rehabilitation research.......          24          31          30
00.03     Health services research......          31          40          40
00.04     Cooperative studies research..          24          31          31
                                           ---------   ---------  ----------
00.91       Total operating expenses....         238         305         304
        Capital investment:
01.01     Medical research..............          25           9           7
01.02     Rehabilitation research.......           6           3           2
01.03     Health services research......           5           2           2
01.04     Cooperative studies research..           3           1           1
                                           ---------   ---------  ----------
01.91       Total capital investment....          39          15          12
                                           ---------   ---------  ----------
01.92     Total direct program..........         277         320         316
09.01 Reimbursable program..............          52          35          29
                                           ---------   ---------  ----------
10.00   Total new obligations...........         329         355         345
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          28          19          15
22.00 New budget authority (gross)......         324         351         345
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         352         370         360
23.95 Total new obligations.............        -329        -355        -345
23.98 Unobligated balance expiring......          -4
24.40 Unobligated balance available, end 
        of year.........................          19          15          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         272         316         316
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          52          35          29
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         324         351         345
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          94         122         138
73.10 Total new obligations.............         329         355         345
73.20 Total outlays (gross).............        -299        -339        -344
73.40 Adjustments in expired accounts...          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         122         138         140
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         171         232         232
86.93 Outlays from current balances.....          76          72          83
86.97 Outlays from new permanent 
        authority.......................          52          35          29
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         299         339         344
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -52         -35         -29
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         272         316         316
90.00 Outlays...........................         247         304         315
---------------------------------------------------------------------------

    The Medical and Prosthetic Research account is an intramural program 
whose mission is to discover knowledge and create innovations that 
advance the health and care of veterans and the Nation. Veterans health 
issues are addressed comprehensively in the following four program 
divisions:

    Medical Research.--Medical Research strives to understand the 
disease process so that efficient, rational interventions can be made to 
cure or alleviate the effects of disease. The program supports 
investigator-initiated research projects, the training of clinicians in 
basic and clinical research, and centers of excellence devoted to 
specific diseases. The research is done in areas particularly relevant 
to the veteran population--aging, chronic disease, mental illness, 
substance abuse, military occupations, and environmental exposures.

    Rehabilitation Research.--Rehabilitation Research is dedicated to 
the development and application of science and engineering to improve 
the care and quality of life for the physically disabled. The program 
supports investigator-initiated research projects, the training of 
clinicians and engineers in rehabilitation research, centers of 
excellence devoted to specific disabilities, and technology transfer. 
The research is done in areas particularly relevant to the disabled 
veteran population--aging, sensory loss, and trauma related illness.

    Health Services Research.--Health Services Research is directed 
toward improving the outcome effectiveness and cost efficiency of health 
care delivery for the veteran population. The program supports 
investigator-initiated research projects, the training of clinicians in 
applied clinical research, centers of excellence devoted to specific 
aspects of health care delivery, and service-directed projects 
addressing clinical management needs. The research focuses on the 
translation of research findings to clinical best practices for all 
veteran patients. Particular contributions are made in the areas of 
aging, substance abuse, health systems, and special populations.

    Cooperative Studies.--Cooperative Studies Research has recently been 
separated from the Medical Research and Health Services Research 
programs and is directed toward large multi-site clinical trials. 
Cooperative Studies supports the clinical trials with its own 
statistical support centers and its own FDA-approved pharmacy. The 
research determines the efficacy and cost effectiveness of new 
medications and new treatment strategies of direct benefit to the 
veteran population in the areas of aging, chronic disease, mental 
illness, special populations, and military occupations and environmental 
exposures.

    VA's Medical and Prosthetic Research programs are included in the 
21st Century Research Fund.

                     SUMMARY OF BUDGETARY RESOURCES

                        [In millions of dollars]

                                     1998 actual  1999 est.   2000 est.
Medical and prosthetic research 
appropriation.......................         272         316         316
Medical care appropriation..........         311         354         343
Federal grants (NIH)................         286         323         333
Other grants (voluntary agencies, 
private proprietary)................         129         146         150
DOD reimbursements..................          15           6          0*
                                    ------------------------------------
      Total budgetary resources.....       1,013       1,145       1,142
                                    ====================================
    *DoD reimbursements for FY 1999 are unknown.

[[Page 863]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          38          44          44
11.3      Other than full-time permanent          65          74          74
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation         105         120         120
12.1    Civilian personnel benefits.....          24          29          29
13.0    Benefits for former personnel...           1           1           1
21.0    Employee travel.................           2           2           3
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
24.0    Printing and reproduction.......           2           2           1
25.5    Research and development 
          contracts.....................          74         116         116
26.0    Supplies and materials..........          31          35          34
31.0    Equipment.......................          39          16          11
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         279         322         316
99.0  Reimbursable obligations..........          50          33          29
                                           ---------   ---------  ----------
99.9    Total new obligations...........         329         355         345
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,157       2,549       2,532
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         601         387         306
---------------------------------------------------------------------------

                                

       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 of 
Veterans Affairs, including site acquisition; engineering and 
architectural activities not charged to project cost; and research and 
development in building construction technology, $63,000,000] capital 
policy activities, $61,200,000 plus reimbursements, of which $311,000 
may be transferred and merged with ``National Cemetery Administration,'' 
and up to $104,000 may be transferred and merged with ``General 
Operating Expenses'': Provided, That project technical and consulting 
services offered by the Facilities Management Service Delivery Office, 
including technical consulting services, project management, real 
property administration (including leases, site acquisition and disposal 
activities directly supporting projects), shall be provided to 
Department of Veterans Affairs components only on a reimbursable basis, 
and such amounts will remain available until September 30, 2000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: Integrated 
        health care system 
        administration..................          58          62          60
00.02 Capital investment................           2           1           1
                                           ---------   ---------  ----------
01.00   Total direct program............          60          63          61
09.01 Reimbursable program..............                                   7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          60          63          68
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          60          63          68
23.95 Total new obligations.............         -60         -63         -68
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          60          63          61
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                   7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          60          63          68
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          10          12          12
73.10 Total new obligations.............          60          63          68
73.20 Total outlays (gross).............         -57         -63         -67
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          12          12           5
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                                   7
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          12          12          12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          55          57          55
86.93 Outlays from current balances.....           3           6           6
86.97 Outlays from new permanent 
        authority.......................                                   6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          57          63          67
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.45   Offsetting collections (cash) 
          from: Offsetting governmental 
          collections...................                                  -7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          60          63          61
90.00 Outlays...........................          57          63          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. In 2000, the Facilities Management Service 
Delivery Office will be directly reimbursed from organizations utilizing 
its services. The funding for tactical management and support activities 
is being aligned with organizations that directly utilize its services.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          37          38          37
11.3      Other than full-time permanent           3           3           3
11.5      Other personnel compensation..           2           3           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          42          44          42
12.1    Civilian personnel benefits.....           6           7           7
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           1
25.2    Other services..................           3           3           3
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          60          63          61
99.0  Reimbursable obligations..........                                   7
                                           ---------   ---------  ----------
99.9    Total new obligations...........          60          63          68
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         522         540         516
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                                  57
---------------------------------------------------------------------------

[[Page 864]]



                                

                 Health Professional Scholarship Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0163-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2
----------------------------------------------------------------------------

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

    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 1998 through 
2000.

                                

                    Medical Care Cost Recovery Fund 

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         486
    Receipts:
02.01 Medical cost recovery.............        -494
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          -8
06.10 Unobligated balance returned to 
        receipts........................           9
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           9
23.98 Unobligated balance expiring......          -9
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          13           1
73.20 Total outlays (gross).............         -11          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          11           1
----------------------------------------------------------------------------

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

    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.

                                

Public enterprise funds:

                    Medical Facilities Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating costs......                       4           2
09.02 Reimbursable capital expenses.....           1           1           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           5           4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           6           5           4
22.00 New budget authority (gross)......                       5           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           6          10           6
23.95 Total new obligations.............          -1          -5          -4
24.40 Unobligated balance available, end 
        of year.........................           5           4           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                       5           2
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           1           5           4
73.20 Total outlays (gross).............          -2          -5          -4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................                       2           2
86.98 Outlays from permanent balances...           2           3           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           2           5           4
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                      -5          -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 from the Compensation 
and Pension account to assist in covering expenses at the facility 
furnishing the nursing care.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................                                   1
26.0  Supplies and materials............                       2           1
31.0  Equipment.........................           1           3           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........           1           5           4
---------------------------------------------------------------------------

                                

                     Canteen Service Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating expenses...         122         130         132

[[Page 865]]

09.02 Reimbursable direct operations....          82          86          88
09.10 Reimbursable capital investment: 
        Sales program: Purchase of 
        equipment and leasehold.........           5           6           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........         209         222         227
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          16          15          16
22.00 New budget authority (gross)......         209         223         228
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         225         238         244
23.95 Total new obligations.............        -209        -222        -227
24.40 Unobligated balance available, end 
        of year.........................          15          16          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         209         223         228
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          23          24          22
73.10 Total new obligations.............         209         222         227
73.20 Total outlays (gross).............        -209        -223        -229
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          24          22          20
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         206         220         226
86.98 Outlays from permanent balances...           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         209         223         229
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2          -2          -2
88.40     Non-Federal sources...........        -207        -221        -226
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -209        -223        -228
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          38          38          42
92.02 Total investments, end of year: 
        U.S. securities: Par value......          38          42          42
---------------------------------------------------------------------------

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          38          37          37
11.3    Other than full-time permanent..          19          22          24
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          57          59          61
12.1  Civilian personnel benefits.......          14          14          14
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................           4           4           3
26.0  Supplies and materials............         128         138         141
31.0  Equipment.........................           5           6           7
                                           ---------   ---------  ----------
99.9    Total new obligations...........         209         222         227
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Total compensable workyears:
2001  Full-time equivalent employment...                               3,050
2011  Exempt Full-time equivalent 
        employment......................       2,977       3,000
---------------------------------------------------------------------------

                                

         Special Therapeutic and Rehabilitation Activities Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Contracts.........................          25          28          31
09.02 Education and training............           1           2           2
09.03 Operating expenses................          13          15          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........          39          45          49
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           9          12          12
22.00 New budget authority (gross)......          42          45          49
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          57          61
23.95 Total new obligations.............         -39         -45         -49
24.40 Unobligated balance available, end 
        of year.........................          12          12          12
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          42          45          49
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           1           3
73.10 Total new obligations.............          39          45          49
73.20 Total outlays (gross).............         -39         -43         -47
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           3           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          39          43          47
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -42         -45         -49
----------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          38             41            45             49
0102  Expense...........................         -36            -39           -45            -49
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           2              2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          11             13            15             17
        Investments in US securities:
1106      Receivables, net..............           1              2             2              2
1206  Non-Federal assets: Receivables, 
        net.............................           2              1             1              1
1803  Other Federal assets: Property, 
        plant and equipment, net........           1              1             1              1
                                        ------------ --------------  ------------  -------------

[[Page 866]]


1999    Total assets....................          15             17            19             21
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................           1              1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           1              1             1              1
    NET POSITION:
3200  Invested capital..................           1
3300  Cumulative results of operations..          13             16            18             19
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          14             16            18             19
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          15             17            19             20
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................          35          40          44
26.0  Supplies and materials............           3           4           4
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          39          45          49
---------------------------------------------------------------------------

                                

                  Medical Center Research Organizations

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Operating expenses................          76          81          80
09.02 Capital investments...............           9           6           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........          85          87          89
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          18          18          18
22.00 New budget authority (gross)......          85          87          89
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         103         105         107
23.95 Total new obligations.............         -85         -87         -89
24.40 Unobligated balance available, end 
        of year.........................          18          18          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          85          87          89
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          85          87          89
73.20 Total outlays (gross).............         -85         -87         -89
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          85          87          89
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -16         -17         -17
88.40     Non-Federal sources...........         -69         -70         -72
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -85         -87         -89
----------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................          53          56          55
26.0  Supplies and materials............          22          24          24
31.0  Equipment.........................           9           6           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........          85          87          89
---------------------------------------------------------------------------

                                

                               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, 1999.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           2           2           2
    Receipts:
02.01 General post fund, national homes, 
        deposits........................          28          29          29
02.02 General post fund, national homes, 
        interest on investments.........           3           3           3
                                           ---------   ---------  ----------
02.99   Total receipts..................          31          32          32
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          33          34          34
    Appropriation:
05.01 General post fund, national homes.         -31         -32         -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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Religious, recreational, and 
        entertainment activities........          24          24          25
00.02 Research activities...............           4           4           4
00.03 Therapeutic residence maintenance.           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          29          29          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          41          43          45
22.00 New budget authority (gross)......          31          32          32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          72          75          77
23.95 Total new obligations.............         -29         -29         -30
24.40 Unobligated balance available, end 
        of year.........................          43          45          48
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           4           5
73.10 Total new obligations.............          29          29          30
73.20 Total outlays (gross).............         -28         -29         -29
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           5           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          23          26          27
86.98 Outlays from permanent balances...           3           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          28          29          29
----------------------------------------------------------------------------

[[Page 867]]



    Net budget authority and outlays:
89.00 Budget authority..................          31          32          32
90.00 Outlays...........................          28          29          29
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          37          45          45
92.02 Total investments, end of year: 
        U.S. securities: Par value......          45          45          46
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................          12          12          12
26.0  Supplies and materials............          12          12          13
31.0  Equipment.........................           3           3           3
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          29          29          30
---------------------------------------------------------------------------

                                


 
                    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), $21,857,058,000, to remain available 
until expended: Provided, That not to exceed $24,534,000 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.] (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1999.)

    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 1998, 
1999, and 2000 are shown on a comparable basis. The following table 
shows the distribution of the amounts (dollars in millions) appropriated 
in 1998 and 1999 and requested in 2000.

                                     1998 actual  1999 est.   2000 est.
Distribution of budget authority by 
    account:
  Compensation......................     $17,295     $18,623     $18,310
  Pensions..........................      $3,071      $3,106      $3,136
  Burial benefits...................        $117        $129        $123
Distribution of outlays by account:
  Compensation......................     $17,114     $18,295     $18,658
  Pensions..........................      $3,059      $3,102      $3,135
  Burial benefits...................        $117        $129        $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, 
$18,310,271,000, to remain available until expended, of which not to 
exceed $1,388,000 shall be reimbursed to ``General operating 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.02     World War I...................           1           1           1
00.03     World War II..................       3,313       3,350       3,189
00.04     Korean conflict...............       1,214       1,213       1,215
00.05     Vietnam era...................       5,540       6,082       6,292
00.06     Peacetime service.............       2,870       3,181       3,363
00.07     Persian Gulf conflict.........         853         971       1,060
                                           ---------   ---------  ----------
00.91       Total veterans..............      13,791      14,798      15,120
        Survivors:
01.04     World War I...................          48          42          38
01.05     World War II..................       1,304       1,348       1,382
01.06     Korean conflict...............         403         420         430
01.07     Vietnam era...................       1,046       1,127       1,180
01.08     Peacetime service.............         454         458         458
01.09     Persian Gulf conflict.........          65          75          83
                                           ---------   ---------  ----------
01.91       Total survivors.............       3,320       3,470       3,571
02.01   Clothing allowance..............          40          40          40
                                           ---------   ---------  ----------
02.93     Total compensation............      17,151      18,308      18,731
      Children:

03.02   Vietnam era.....................           7           7           8
      Other expenses:

07.01   Payment to general operating 
          expense.......................           1           1           1
07.02   Medical exam pilot program......           9          17          20
                                           ---------   ---------  ----------
07.91   Total other expenses............          10          18          21
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................      17,168      18,333      18,760
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         146         274         450
22.00 New budget authority (gross)......      17,295      18,623      18,310
22.21 Unobligated balance transferred to 
        other accounts..................                    -113
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      17,441      18,784      18,760
23.95 Total new obligations.............     -17,168     -18,333     -18,760
24.40 Unobligated balance available, end 
        of year.........................         274         450
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................      17,295      18,623      18,310
----------------------------------------------------------------------------

[[Page 868]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,293       1,347       1,386
73.10 Total new obligations.............      17,168      18,333      18,760
73.20 Total outlays (gross).............     -17,114     -18,295     -18,658
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,347       1,386       1,488
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority      15,821      16,948      17,272
86.93 Outlays from current balances.....       1,293       1,347       1,386
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      17,114      18,295      18,658
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      17,295      18,623      18,310
90.00 Outlays...........................      17,114      18,295      18,658
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................      17,295      18,623      18,310
  Outlays...........................      17,114      18,295      18,658
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 293
  Outlays...........................                                 264
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                   5
  Outlays...........................                                   5
                                    ------------------------------------
Total:
  Budget Authority..................      17,295      18,623      18,608
  Outlays...........................      17,114      18,295      18,927
                                    ====================================

    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. 
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

                                     1998 actual  1999 est.   2000 est.
Veterans:
  Mexican border period.............           9           7           6
  World War I.......................         190         130          80
  World War II......................     595,220     559,100     521,200
  Korean conflict...................     180,383     176,700     172,800
  Vietnam era.......................     726,655     733,364     741,034
  Peacetime service.................     544,556     558,600     576,000
  Persian Gulf conflict.............     222,690     246,000     256,500
                                    ------------------------------------
      Total.........................   2,269,703   2,273,901   2,267,620
  Average payment per case, per year      $6,076      $6,507      $6,668
      Total obligations (in 
        millions)...................     $13,791     $14,797     $15,120
                                    ====================================
Children of Vietnam era veterans:
  Children..........................         633         633         633
  Average payment per case, per year     $11,739     $11,787     $12,137
      Total obligations (in 
        millions)...................          $7          $7          $8
Chapter 18 Vocational 
    rehabilitations:
  Rehabilitations...................          14          14          14
  Average payment per case, per year        $125        $130        $133
      Total obligations (in 
        millions) \1\...............          $0          $0          $0
------------------------------------------------------------------------
\1\ Amounts round to less than $1 
  million.
Survivors:
  Prior to Spanish-American War.....           1           1           1
  Spanish-American War..............          17          17          17
  Mexican border period.............           2           1           1
  World War I.......................       4,432       3,734       3,147
  World War II......................     119,083     116,394     113,834
  Korean conflict...................      36,682      36,438      36,222
  Vietnam era.......................      95,866      98,940     100,134
  Peacetime service.................      42,634      41,572      40,539
  Persian Gulf conflict.............       5,157       5,651       6,106
                                    ------------------------------------
      Total.........................     303,874     302,748     300,001
  Average payment per case, per year     $10,926     $11,462     $11,902
      Total obligations (in 
        millions)...................      $3,320      $3,470      $3,571
                                    ====================================
Clothing allowance:
  Number of veterans................      76,486      76,627      76,416
  Average payment per case, per year        $518        $528        $528
      Total obligations (in 
        millions)...................         $40         $40         $40
                                    ====================================

                                

                              Compensation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-2-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.03     World War II..................                                  47
00.04     Korean conflict...............                                  17
00.05     Vietnam era...................                                  93
00.06     Peacetime service.............                                  49
00.07     Persian Gulf conflict.........                                  15
                                           ---------   ---------  ----------
00.91       Total veterans..............                                 221
        Survivors:
01.05     World War II..................                                  27
01.06     Korean conflict...............                                   9
01.07     Vietnam era...................                                  24
01.08     Peacetime service.............                                   9
01.09     Persian Gulf conflict.........                                   2
                                           ---------   ---------  ----------
01.91       Total survivors.............                                  71
02.01   Clothing allowance..............                                   1
                                           ---------   ---------  ----------
02.93     Total compensation............                                 293
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................                                 293
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 293
23.95 Total new obligations.............                                -293
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                 293
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 293
73.20 Total outlays (gross).............                                -264
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                 264
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 293
90.00 Outlays...........................                                 264
---------------------------------------------------------------------------

    Legislation will be proposed to provide a cost-of-living adjustment 
(COLA) to all compensation beneficiaries including spouses and children. 
This increase, effective December 1, 1999, is expected to be 2.4 percent 
and cost $293 million in 2000.

[[Page 869]]

                                

                              Compensation

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-4-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Extend Full Benefits to Certain 
        Filipino Veterans...............                                   5
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................                                   5
----------------------------------------------------------------------------

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

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

    Change in unpaid obligations:
73.10 Total 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 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.

    The Administration is proposing legislation which will extend a 
current legal provision due to expire in 2002 which rounds down the 
annual COLA increase.

                                

                                Pensions

    For the payment of pension benefits to or on behalf of veterans as 
authorized by law, $3,135,550,000, to remain available until expended; 
of which not to exceed $18,979,000 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Pensions:
          Veterans:
04.01       Improved law................       2,234       2,317       2,376
04.02       Prior law...................          57          49          42
04.03       Old law.....................           1
                                           ---------   ---------  ----------
04.91         Total veterans............       2,292       2,366       2,418
          Survivors:
05.01       Improved law................         658         624         613
05.02       Prior law...................         101          92          84
05.03       Old law.....................           2           1           1
                                           ---------   ---------  ----------
05.91         Total survivors...........         761         717         698
                                           ---------   ---------  ----------
06.93       Total pensions..............       3,053       3,083       3,116
        Other expenses:
07.01     Medical facility expenses.....                       5           2
07.02     Reimbursement to GOE and VHA..          18          18          18
                                           ---------   ---------  ----------
07.91       Total other expenses........          18          23          20
                                           ---------   ---------  ----------
08.00     Total direct program..........       3,071       3,106       3,136
      Reimbursable program:

09.01   Minimum income for widows 
          program.......................                       3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,071       3,109       3,139
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,071       3,109       3,139
23.95 Total new obligations.............      -3,071      -3,109      -3,139
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       3,071       3,106       3,136
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                       3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,071       3,109       3,139
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         266         278         282
73.10 Total new obligations.............       3,071       3,109       3,139
73.20 Total outlays (gross).............      -3,059      -3,105      -3,138
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         278         282         283
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       2,793       2,824       2,854
86.93 Outlays from current balances.....         266         278         281
86.97 Outlays from new permanent 
        authority.......................                       3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,059       3,105       3,138
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................       3,071       3,106       3,136
90.00 Outlays...........................       3,059       3,102       3,135
---------------------------------------------------------------------------

    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, 
2000, is expected to be 2.4 percent.

              AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                     1998 actual  1999 est.   2000 est.
Veterans:
  Improved law......................     360,647     357,473     355,103
  Prior law.........................      35,473      30,103      25,571
  Old law and service...............         443         376         321
                                    ------------------------------------
      Total.........................     396,563     387,952     380,995
  Average payment per case, per year 
    (in dollars)....................      $5,780      $6,100      $6,349
                                    ------------------------------------
      Total obligations (in 
        millions)...................      $2,292      $2,367      $2,419
                                    ====================================
Survivors:
  Improved law......................     196,575     190,654     185,411
  Prior law.........................     100,437      90,020      80,825
  Old law and service...............       2,443       2,041       1,709
                                    ------------------------------------
      Total.........................     299,455     282,715     267,945
  Average payment per case, per year      $2,544      $2,538      $2,603
                                    ------------------------------------

[[Page 870]]


      Total obligations (in 
        millions)...................        $762        $718        $697
                                    ====================================
Minimum Income for Widows Program:
  Widows............................           0         675         670
Average benefit per case, per year..           0      $5,080      $5,193
                                    ------------------------------------
      Total obligations (in 
        millions)...................           0          $3          $3
                                    ====================================
Vocational training:
  Trainees..........................          29          15           8
  Average benefit per year..........      $3,578      $2,800       2,875
                                    ------------------------------------
      Total obligations (in 
        millions) 1......           0           0           0
                                    ====================================
    1 Amounts round to less than $1 million.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0154-0-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........       3,071       3,106       3,136
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                       3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,071       3,109       3,139
---------------------------------------------------------------------------

    The Administration is proposing legislation which will extend two 
provisions of the Balanced Budget Act of 1997 due to expire in 2002: (1) 
authorization of VA access to certain Internal Revenue Service data for 
determining eligibility for veterans pension benefits; and (2) limiting 
pension benefits to Medicaid-eligible beneficiaries in nursing homes.

                                

              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, $122,543,000, 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Burial benefits:

07.01   Burial allowances...............          33          34          33
07.02   Burial plots....................          11          10          10
07.03   Service-connected deaths........          12          12          12
07.04   Burial flags....................          15          18          19
07.05   Headstones and markers..........          32          33          34
07.06   Graveliners.....................           7           8           8
07.07   Pre-placed crypts...............           4          11           4
                                           ---------   ---------  ----------
07.91     Total burial benefits.........         114         126         120
08.03 Special allowance dependents......           1           1           1
08.04 Equal access to justice...........           2           2           2
                                           ---------   ---------  ----------
08.91   Total miscellaneous assistance..           3           3           3
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................         117         129         123
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         117         129         123
23.95 Total new obligations.............        -117        -129        -123
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         117         129         123
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............         117         129         123
73.20 Total outlays (gross).............        -117        -129        -123
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         117         129         123
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         117         129         123
90.00 Outlays...........................         117         129         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.

                        NUMBER OF BURIAL BENEFITS

                                     1998 actual  1999 est.   2000 est.
Burial allowance....................      83,948      83,000      82,100
Burial plot.........................      73,344      69,000      64,900
Service-connected death.............       9,293       9,310       9,280
Burial flags........................     466,462     476,090     482,060
Headstone markers...................     326,096     336,540     342,960
Headstone allowance.................           9           0           0
Graveliners.........................      40,226      46,667      46,142
Preplaced crypts....................      12,488      37,086      12,200

    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

                                     1998 actual  1999 est.   2000 est.
Retired Officers....................           2           2           1
Special allowance dependents........         138         138         138
Equal Access to Justice payments....         517         517         517

                                

                          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, [$1,175,000,000], $1,469,000,000, 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, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Sons and daughters............          95         118         121
00.02     Spouses.......................          11          14          15
                                           ---------   ---------  ----------
00.91       Total education and training         106         132         136
        Special assistance to disabled 
            veterans:
01.01     Vocational rehabilitation.....         406         403         406
01.02     Housing grants................          16          19          19
01.03     Automobiles, adaptive 
            equipment, maintenance and 
            repair......................          27          33          38
                                           ---------   ---------  ----------

[[Page 871]]


01.91       Total special assistance to 
              disabled veterans.........         449         455         463
02.01   Work study......................          35          35          40
02.02   Payments to states..............          13          13          13
02.03   All-volunteer assistance: 
          Veterans' basic benefits......         711         814         813
02.04   Reporting fees..................                                   4
                                           ---------   ---------  ----------
02.91     All-volunteer assistance and 
            other.......................         759         862         870
                                           ---------   ---------  ----------
02.93     Total direct program..........       1,314       1,449       1,469
09.01 Veterans' basic benefits..........           9           8           6
09.01 Veterans' supplementary benefits..          76          80          78
09.01 Reservists benefits...............          87         103         103
09.02 Reservist supplementary benefits..                       3           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,486       1,643       1,661
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         112         165           3
22.00 New budget authority (gross)......       1,538       1,369       1,661
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2          -1
22.22 Unobligated balance transferred 
        from other accounts.............                     113
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,652       1,646       1,664
23.95 Total new obligations.............      -1,486      -1,643      -1,661
24.40 Unobligated balance available, end 
        of year.........................         165           3           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       1,366       1,175       1,469
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         172         194         192
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,538       1,369       1,661
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          53          55          30
73.10 Total new obligations.............       1,486       1,643       1,661
73.20 Total outlays (gross).............      -1,482      -1,668      -1,658
73.45 Adjustments in unexpired accounts.          -2           1
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          55          30          33
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,200       1,145       1,436
86.93 Outlays from current balances.....         112         330          30
86.97 Outlays from new permanent 
        authority.......................         170         194         192
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,482       1,668       1,658
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -172        -194        -192
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,366       1,175       1,469
90.00 Outlays...........................       1,310       1,474       1,466
---------------------------------------------------------------------------

    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 2000 will consist of 
appropriated funds of $1,469 million.

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

                       NUMBER OF TRAINEES AND COST

                                     1998 actual  1999 est.   2000 est.
Sons and daughters:
  Number of trainees................      37,200      38,300      39,400
  Average cost per trainee (in 
    dollars)........................      $2,563      $3,074      $3,074
                                    ------------------------------------
      Total cost (in millions)......         $95        $118        $121
                                    ====================================
Spouses and widow(ers):
  Number of trainees................       5,506       5,800       6,200
  Average cost per trainee (in 
    dollars)........................      $2,074      $2,494      $2,494
                                    ------------------------------------
      Total cost (in millions)......         $11         $14         $15
                                    ====================================

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

    Specially adapted housing grants, up to a maximum of $43,000, 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 $8,250.

    An allowance, up to a maximum of $8,000, 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

                                     1998 actual  1999 est.   2000 est.
      Total number of trainees......      53,004      51,440      50,726
  Average cost per trainee..........      $7,659      $7,838      $8,001
                                    ------------------------------------
      Total cost (in millions)......        $406        $403        $406
                                    ====================================
Housing grants:
  Number of housing grants..........         478         525         525
  Average cost per grant............     $33,188     $36,900     $36,900
                                    ------------------------------------
      Total cost (in millions)......         $16         $19         $19
                                    ====================================
Automobiles or other conveyances:
  Number of conveyances.............         779         822         822
  Average cost per conveyance.......      $5,481      $7,900      $7,900
                                    ------------------------------------
      Total cost (in millions)......          $4          $6          $6
                                    ====================================
Adaptive equipment (including 
    maintenance, repair and 
    installation for automobiles):
  Number of items...................       8,849       9,960      11,600
  Average cost......................      $2,616      $2,668      $2,729
                                    ------------------------------------
      Total cost (in millions)......         $23         $27         $32
                                    ====================================

    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.

                                     1998 actual  1999 est.   2000 est.
  Number of contracts...............      29,112      28,200      27,500
                                    ------------------------------------
      Total cost (in millions)......         $35         $35         $40
                                    ====================================

    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-Viet

[[Page 872]]

nam 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

                                     1998 actual  1999 est.   2000 est.

Veterans:
  Number of trainees................     296,791     289,000     281,000
  Average cost per trainee..........      $2,679      $3,131      $3,189
                                    ------------------------------------
      Total cost (in millions)......    $795 \1\    $905 \2\    $896 \3\
                                    ====================================
Reservists:
  Number of trainees................      75,219      74,200      73,000
  Average cost per trainee..........      $1,156      $1,427      $1,479
                                    ------------------------------------
      Total cost (in millions)......         $87        $106        $108
                                    ====================================
    \1\ Includes $710 million of basic benefits (VA funded), $9 million 
of basic benefits (DOD funded), and $76 million of supplemental benefits 
(DOD funded).
    \2\ Includes $817 million of basic benefits (VA funded), $8 million 
of basic benefits, (DOD funded) and $80 million of supplemental benefits 
(DOD funded).
    \3\ Includes $812 million of basic benefits (VA funded), $6 million 
of basic benefits (DOD funded) and $78 million of supplemental benefits 
(DOD funded).

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       1,314       1,449       1,469
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         172         194         192
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,486       1,643       1,661
---------------------------------------------------------------------------

                                

  Reinstated Entitlement Program for Survivors Under Public Law 97-377

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Return of Overpayment.............           4
                                           ---------   ---------  ----------
01.00   Total Direct Program............           4
09.01 Reimbursables.....................          14          16          15
09.02 Reimbursables.....................           1           1           1
                                           ---------   ---------  ----------
09.99   Total reimbursable program......          15          17          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........          19          17          16
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          25          17          16
23.95 Total new obligations.............         -19         -17         -16
23.98 Unobligated balance expiring......          -4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          25          17          16
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          15           1
73.10 Total new obligations.............          19          17          16
73.20 Total outlays (gross).............         -34         -17         -16
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          19          17          16
86.98 Outlays from permanent balances...          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          34          17          16
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -25         -17         -16
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           9
---------------------------------------------------------------------------

    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

                                     1998 actual  1999 est.   2000 est.
Spouses.............................         336         302         250
Average benefit.....................      $9,954     $10,760     $11,126
Obligations (in millions)...........          $3          $3          $3
Children............................       1,275       1,190       1,060
Average benefit.....................      $9,021     $11,583     $11,885
Obligations (in millions)...........         $12         $14         $13

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
44.0  Direct obligations: Refunds.......           4
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................          15          17          16
                                           ---------   ---------  ----------
99.9    Total new obligations...........          19          17          16
---------------------------------------------------------------------------

                                

                   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, [$46,450,000] $28,670,000, to remain 
available until expended. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.04   Payment to national service life 
          insurance fund................           2           6           2
00.05   Payment to service-disabled 
          veterans insurance fund.......          44          36          20
00.06   Total operating expenses........           7           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........          53          50          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           2
22.00 New budget authority (gross)......          53          48          31
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          55          50          31
23.95 Total new obligations.............         -53         -50         -30
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          51          46          29
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          53          48          31
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          53          50          30
73.20 Total outlays (gross).............         -53         -48         -29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          51          46          27
86.97 Outlays from new permanent 
        authority.......................           2           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          53          48          29
----------------------------------------------------------------------------

[[Page 873]]



    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..................          53          46          29
90.00 Outlays...........................          51          48          29
---------------------------------------------------------------------------
    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.

    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 2000 as indicated in the 
following table.

                     POLICIES AND INSURANCE IN FORCE

                                     1998 actual  1999 est.   2000 est.
National service life insurance 
    policies:
  Number of policies................       1,246       (\1\)       (\1\)
  Amount of insurance (dollars in 
    millions).......................          $6
VMLI policies:
  Number of policies................       3,702       3,582       3,472
  Amount of insurance (dollars in 
    millions).......................        $232        $233        $235

    1 In 1999, these payments and the associated policies 
will be transferred to the NSLI Fund.

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          45          41          22
42.0  Insurance claims and indemnities..           8           9           8
                                           ---------   ---------  ----------
99.9    Total new obligations...........          53          50          30
---------------------------------------------------------------------------

                                

Public enterprise funds:

                Service-Disabled Veterans Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Capital investment................          12          14          14
09.01 Death claims......................          43          47          49
09.01 All other.........................          11          12          13
                                           ---------   ---------  ----------
10.00   Total new obligations...........          66          73          76
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           6          24          24
22.00 New budget authority (gross)......          83          73          58
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          89          97          82
23.95 Total new obligations.............         -66         -73         -76
24.40 Unobligated balance available, end 
        of year.........................          24          24           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          83          73          58
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           6           7           5
73.10 Total new obligations.............          66          73          76
73.20 Total outlays (gross).............         -64         -75         -76
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           7           5           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          58          68          58
86.98 Outlays from permanent balances...           6           7          18
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          64          75          76
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            VI and I....................         -45         -36         -20
          Non-Federal sources:
88.40       Interest on loans...........          -3          -3          -3
88.40       Insurance premiums earned...         -24         -23         -25
88.40       Repayments of loans.........         -11         -11         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -83         -73         -58
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -19           2          18
---------------------------------------------------------------------------

    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

                                     1998 actual  1999 est.   2000 est.
Number of policies..................     156,745     153,095     149,145
Insurance in force (dollars in 
millions)...........................      $1,452      $1,425      $1,392

    Financing.--Operations are financed from premiums and other 
receipts. Additional funds are received by transfer from 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 $439 million by September 30, 2000.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          11          14          14
42.0  Insurance claims and indemnities..          55          59          62
                                           ---------   ---------  ----------
99.9    Total new obligations...........          66          73          76
---------------------------------------------------------------------------

[[Page 874]]



                                

                    Veterans Reopened Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          35          39          39
09.01 Dividends.........................          26          25          23
09.01 All other.........................           8           8           8
09.01 Capital investment: policy loans..           6           7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          75          79          77
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         484         476         461
22.00 New budget authority (gross)......          67          63          59
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         551         539         520
23.95 Total new obligations.............         -75         -79         -77
24.40 Unobligated balance available, end 
        of year.........................         476         461         443
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          67          63          59
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          38          41          43
73.10 Total new obligations.............          75          79          76
73.20 Total outlays (gross).............         -73         -76         -74
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          41          43          46
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          43          35          31
86.98 Outlays from permanent balances...          30          41          43
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          73          76          74
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: interest on 
            U.S. securities.............         -45         -41         -37
          Non-Federal sources:
88.40       Interest on loans...........          -2          -1          -2
88.40       Insurance premiums earned...         -14         -15         -14
88.40       Repayments of loans.........          -6          -6          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -67         -63         -59
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           6          13          15
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......         521         516         493
92.02 Total investments, end of year: 
        U.S. securities: Par value......         516         503         488
---------------------------------------------------------------------------
    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

                                     1998 actual  1999 est.   2000 est.
  Number of policies................      87,590      82,250      76,740
  Insurance in force (dollars in 
    millions).......................        $701        $661        $616

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............           6           7           7
42.0  Insurance claims and indemnities..          39          43          44
43.0  Interest and dividends............          30          29          26
                                           ---------   ---------  ----------
99.9    Total new obligations...........          75          79          77
---------------------------------------------------------------------------

                                

                Servicemembers' Group Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4009-0-3-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Premium payments..................         433         412         406
09.01 Payment to GOE account............           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         434         413         407
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
22.00 New budget authority (gross)......         434         413         407
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         435         414         408
23.95 Total new obligations.............        -434        -413        -407
24.40 Unobligated balance available, end 
        of year.........................           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         434         413         407
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           4           5
73.10 Total new obligations.............         434         413         407
73.20 Total outlays (gross).............        -434        -413        -407
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         430         409         402
86.98 Outlays from permanent balances...           4           4           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         434         413         407
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources: 
          Withholdings from serviceman's 
          pay...........................        -434        -413        -407
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......           4           4           1

[[Page 875]]

92.02 Total investments, end of year: 
        U.S. securities: Par value......           4           1           1
---------------------------------------------------------------------------

    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.

                                

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 [1999] 2000, 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 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, [$159,121,000] $156,958,000, 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, 1999.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         867         862         997
    Receipts:
02.01 Downward reestimate of subsidies, 
        guaranteed loans................         206
02.02 Downward reestimate of subsidies, 
        guaranteed loans................                     324
02.03 Downward reestimate of subsidies, 
        direct loans....................                     111
                                           ---------   ---------  ----------
02.99   Total receipts..................         206         435
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       1,073       1,297         997
    Appropriation:
05.01 Veterans Housing Benefit Program..        -211        -300        -282
07.99 Total balance, end of year........         862         997         715
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          16         150          70
00.02 Guaranteed loan subsidy...........         195         150         212
00.05 Upward reestimates of direct loan 
        subsidy.........................         376          74
00.06 Interest on reestimates of the 
        direct loan subsidy.............          89          15
00.07 Upward reestimates of guaranteed 
        loan subsidy....................         212         314
00.08 Interest on reestimates of the 
        guaranteed loan subsidy.........          32          44
00.09 Administrative expenses...........         160         159         157
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,080         906         439
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,080         905         439
23.95 Total new obligations.............      -1,080        -906        -439
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation (definite)........         160         159         157
40.25   Appropriation (special fund, 
          indefinite)...................         211         300         282
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         371         459         439
      Permanent:

60.05   Appropriation (indefinite)......         709         446
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,080         905         439
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       1
73.10 Total new obligations.............       1,080         906         439
73.20 Total outlays (gross).............      -1,079        -907        -439
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         371         459         439
86.93 Outlays from current balances.....                       1
86.97 Outlays from new permanent 
        authority.......................         709         446
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,079         907         439
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,080         905         439
90.00 Outlays...........................       1,079         907         439
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................       1,339       1,947         648
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,339       1,947         648
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        1.20        7.71       10.79
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        1.20        7.71       10.79
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........         481         239          70
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         481         239          70
    Direct loan subsidy outlays:
1340  Subsidy outlays...................         481         239          70
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         481         239          70
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............      39,862      32,634      31,237
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      39,862      32,634      31,237
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        0.49        0.46        0.68
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.49        0.46        0.68
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........         439         508         212
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         439         508         212
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................         439         508         212
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         439         508         212
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         160         159         157
3590  Outlays from new authority........         159         159         157
---------------------------------------------------------------------------



    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

[[Page 876]]

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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         160         159         157
41.0  Grants, subsidies, and 
        contributions...................         920         747         282
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,080         906         439
---------------------------------------------------------------------------

                                

    The Administration is proposing legislation that would permanently 
extend three provisions of the Balanced Budget Act of 1997 due to expire 
in 2002: (1) the loan origination fee increase of .75 percent; (2) the 
three-percent fee for multiple home loans with less than five percent 
down; and (3) the current law on resale losses on loans.

    The 2000 Budget outsources the property management function by the 
end of 2000. It also includes $5 million to fund career transition 
activities related to this initiative.

   Veterans Housing Benefit Program Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................       1,339       1,947         648
00.02 Interest on Treasury borrowing....         232          86          86
00.03 Property sales expense............           1           2           2
00.04 Property management/other expense.           1           1           1
00.05 Property improvement expense......           1           2           2
00.06 Reserve for losses on loan sales..          40          75          79
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,614       2,113         818
08.02 Payment of downward reestimate to 
        receipt account.................                      83
08.03 Payment of excess interest earned 
        to receipt account..............                      28
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............                     111
                                           ---------   ---------  ----------
10.00   Total obligations...............       1,614       2,224         818
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...       1,614       2,225         817
23.95 Total new obligations.............      -1,614      -2,224        -818
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         752       1,908         578
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,880       2,099       1,165
68.47   Portion applied to debt 
          reduction.....................      -1,018      -1,782        -926
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         862         317         239
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,614       2,225         817
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         -77          -7          -9
73.10 Total new obligations.............       1,614       2,224         818
73.20 Total financing disbursements 
        (gross).........................      -1,544      -2,226        -812
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          -7          -9          -3
87.00 Total financing disbursements 
        (gross).........................       1,544       2,226         812
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources:Payments from 
            program account.............        -481        -239         -70
88.25     Interest on uninvested funds..        -106
          Non-Federal sources:
            Non-Federal sources:

88.40         Repayments of principal...         -45         -55         -54
88.40         Interest received on loans         -61        -126        -124
88.40         Fees......................         -24         -40         -11
88.40         Loan sale proceeds, net...      -1,147      -1,517        -844
88.40         Cash sale of properties...          -3         -85         -47
88.40         Other revenue.............         -13         -37         -15
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,880      -2,099      -1,165
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............        -266         126        -348
90.00 Financing disbursements...........        -336         127        -353
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       1,339       1,947         648
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,339       1,947         648
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         992       1,122       1,449
1231  Disbursements: Direct loan 
        disbursements...................       1,339       1,947         648
      Repayments:

1251    Repayments and prepayments......        -101         -54         -54
1253    Proceeds from loan asset sales 
          to the public with recourse...      -1,118      -1,517        -844
      Adjustments:

1261    Capitalized interest............          48
1262    Discount on loan asset sales to 
          the public or discounted......         -29         -47         -47
      Write-offs for default:

1263    Direct loans....................          -2          -2          -3
1264    Other adjustments, net..........          -7
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,122       1,449       1,149
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       2,463            878         1,134            899
        Investments in US securities:
1106      Receivables, net..............                         93           120             95
1206  Non-Federal assets: Receivables, 
        net.............................         160             26            34             27
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, net....         992            874         1,358          1,058
1403    Accounts receivable from 
          foreclosed property...........         106
1404    Foreclosed property.............           9
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,107            874         1,358          1,058
1901  Other Federal assets: Other assets                          5             6              4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,730          1,876         2,652          2,083
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           5
2104    Resources payable to Treasury...       1,768          1,870         2,645          2,077
      Non-Federal liabilities:

2201    Accounts payable................           7              1             1              1
2204    Liabilities for loan guarantees.          -1              5             6              5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,779          1,876         2,652          2,083
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,779          1,876         2,652          2,083
-----------------------------------------------------------------------------------------------

[[Page 877]]



                                

 Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Acquisition of homes..............       1,466       1,970       2,198
00.02 Losses on defaulted loans.........         501         439         475
00.03 Property sales expense............          67         122         137
00.04 Property management expense.......          47          42          45
00.05 Property improvement expense......          50          38          43
00.06 Loans acquired....................         107          96         101
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       2,238       2,707       2,999
08.02 Payment of downward reestimate to 
        receipt account.................         172         198
08.03 Payment of excess interest to 
        receipt account.................          34         126
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         206         324
                                           ---------   ---------  ----------
10.00   Total obligations...............       2,444       3,031       2,999
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       3,316       3,480       3,232
22.00 New financing authority (gross)...       2,607       2,784       2,819
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,923       6,264       6,051
23.95 Total new obligations.............      -2,444      -3,031      -2,999
24.40 Unobligated balance available, end 
        of year.........................       3,480       3,232       3,052
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............       2,607       2,784       2,819
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year        -165         139         144
73.10 Total new obligations.............       2,444       3,031       2,999
73.20 Total financing disbursements 
        (gross).........................      -2,140      -3,026      -2,998
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         139         144         146
87.00 Total financing disbursements 
        (gross).........................       2,140       3,026       2,998
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
            Federal sources:

88.00         Payments from program 
                account.................        -439        -508        -212
88.00         Recoveries from DLFA......      -1,005      -1,519        -503
88.25     Interest on uninvested funds..        -236        -178        -169
          Non-Federal sources:
            Non-Federal sources:

88.40         Funding fees..............        -579        -603        -555
88.40         Cash sale of properties...        -329        -318      -1,361
88.40         Other collections.........         -19         -16         -19
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,607      -3,142      -2,819
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                    -358
90.00 Financing disbursements...........        -467        -116         179
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1998 actual   1999 est.   2000 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.................      39,862      32,635      31,237
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      39,862      32,635      31,237
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     146,575     176,777     196,637
2231  Disbursements of new guaranteed 
        loans...........................      39,862      32,635      31,237
2232  Guarantees of loans sold to the 
        public with recourse............       1,118         820       1,074
2251  Repayments and prepayments........      -8,810     -10,625     -11,819
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -107        -439        -475
2262    Terminations for default that 
          result in acquisition of 
          property......................      -1,466      -1,970      -2,199
2263    Terminations for default that 
          result in claim payments......        -502        -561        -629
2264    Other adjustments, net..........         107
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     176,777     196,637     213,826
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..     102,869      75,739      82,542
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         103         156         142
2331    Disbursements for guaranteed 
          loan claims...................         546         439         475
2351    Repayments of loans receivable..          -8         -12         -11
2361    Write-offs of loans receivable..        -485        -441        -458
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         156         142         148
---------------------------------------------------------------------------

    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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       3,151          3,618         3,099          2,920
        Investments in US securities:
1106      Receivables, net..............                        358
1206  Non-Federal assets: Receivables, 
        net.............................         244
1401  Net value of assets related to 
        post-1991 direct loans 
        receivable: Direct loans 
        receivable, gross...............                      1,154         1,956          2,204
      Other Federal assets:

1801    Cash and other monetary assets..         102
1803    Property, plant and equipment, 
          net...........................         718
1901    Other assets....................                         38            64             72
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,215          5,168         5,119          5,196
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                         24            23             24
2105    Other...........................                        324
      Non-Federal liabilities:

2201    Accounts payable................                        115            56             61
2204    Liabilities for loan guarantees.       4,215          4,705         5,040          5,111
2207    Other...........................
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,215          5,168         5,119          5,196
    NET POSITION:
3200  Invested capital..................
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,215          5,168         5,119          5,196
-----------------------------------------------------------------------------------------------

                                

        Veterans Housing Benefit Program Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investments:

00.01   Acquisition of homes............         335         326         272
00.02   Property improvements...........          23          29          24
00.03   Cash advances...................         -20         -15         -11
00.04   Acquisition of defaulted 
          guaranteed loans..............          26          59          57
                                           ---------   ---------  ----------
00.91     Total capital investments.....         364         399         342
                                           ---------   ---------  ----------
01.00   Total capital investments.......         364         399         342
      Operating expenses:

01.02   Property management expense.....          25          31          30
01.03   Sales expense...................          28          35          34

[[Page 878]]

01.04   Claims processed................         146         128         107
01.05   Other expenses..................          16          21          19
                                           ---------   ---------  ----------
01.91     Total operating expenses......         215         215         190
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................         579         614         532
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          57          41
22.00 New budget authority (gross)......         872         621         560
22.40 Capital transfer to general fund..        -309         -48         -28
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         620         614         532
23.95 Total new obligations.............        -579        -614        -532
24.40 Unobligated balance available, end 
        of year.........................          41
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         270
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         602         621         560
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         872         621         560
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          42          57          55
73.10 Total new obligations.............         579         614         532
73.20 Total outlays (gross).............        -564        -617        -539
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          57          55          47
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         602         614         532
86.98 Outlays from permanent balances...         -38           3           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         564         617         539
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            direct loan financing 
            account.....................        -323        -428        -145
          Non-Federal sources:
            Non-Federal sources:

88.40         Loan and other repayments.         -65         -39         -31
88.40         Sale of homes, cash.......        -107         -94        -336
88.40         Interest on loans.........         -56         -34         -26
88.40         Collection of claims 
                (veteran indebtedness)..         -52         -34         -29
88.40         Other revenue.............           1           8           7
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -602        -621        -560
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         270
90.00 Outlays...........................         -39          -4         -21
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         420         326         217
1231  Disbursements: Direct loan 
        disbursements...................
      Repayments:

1251    Repayments and prepayments......         -47         -37         -29
1253    Proceeds from loan asset sales 
          to the public with recourse...          -9          -7          -6
1261  Adjustments: Capitalized interest.          21
      Write-offs for default:

1263    Direct loans....................         -47         -47         -21
1264    Other adjustments, net..........         -12         -18
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         326         217         161
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      23,896      23,408      22,954
2232  Guarantees of loans sold to the 
        public with recourse............           9
2251  Repayments and prepayments........
      Adjustments:

2262    Terminations for default that 
          result in acquisition of 
          property......................        -335        -326        -272
2263    Terminations for default that 
          result in claim payments......        -134        -128        -107
2264    Other adjustments, net..........         -28
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      23,408      22,954      22,575
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      12,035      11,801      11,607
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         665         620         588
2331    Disbursements for guaranteed 
          loan claims...................         121         103          88
2351    Repayments of loans receivable..         -84         -35         -29
2361    Write-offs of loans receivable..         -82        -100         -86
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         620         588         561
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         571            469           375            300
0102  Expense...........................        -514           -552          -442           -353
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............          57            -83           -67            -53
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          99             98            48             28
        Investments in US securities:
1106      Investments...................                          9             4              3
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............                        239           214            193
1206    Accounts Receivable, net........                          1             1              1
1207    Advances and prepayments........          12
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                        529           437            602
1403    Credit program receivables and 
          related forclosed property, 
          net...........................         377
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         377            529           437            602
      Other Federal assets:

1803    Property, plant and equipment, 
          Incestments...................         539
1901    Other assets....................           4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,031            876           704            827
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          73              1             1              1
2105    Federal liabilities: Other......                        810           648            781
      Non-Federal liabilities:

2201    Accounts payable................                         67            57             47
2207    Other...........................         115             -2            -2             -2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         188            876           704            827
    NET POSITION:
3200  Invested capital..................         917            779           662            563
3300  Cumulative results of operations..         -74           -779          -662           -563
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         843
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,031            876           704            827
-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records all cash flows to and from the Govern

[[Page 879]]

ment 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 Housing Loans 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] 
$520,000, 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, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............                                   2
00.02 Guaranteed loan subsidy...........                                   3
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           1           1           6
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           3           2
22.00 New budget authority (gross)......           1           1           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4           4           6
23.95 Total new obligations.............          -1          -1          -6
24.40 Unobligated balance available, end 
        of year.........................           3           2           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation (definite)........           1           1           1
      Permanent:

60.00   Appropriation...................                                   3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           1           1           4
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           1           1           6
73.20 Total outlays (gross).............          -1          -1          -6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           1
86.93 Outlays from current balances.....                                   1
86.97 Outlays from new permanent 
        authority.......................                                   3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           1           6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1           1           4
90.00 Outlays...........................           1           1           6
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................           3          11          21
                                           ---------   ---------  ----------
1159    Total direct loan levels........           3          11          21
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        7.72        7.72        7.72
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        7.72        7.72        7.72
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..
    Direct loan subsidy outlays:
1340  Subsidy outlays...................                                   1
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                                   1
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............                                   7
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....                                   7
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................        0.00        0.00       48.25
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.00        0.00       48.25
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........                                   3
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                   3
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                                   3
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                   3
----------------------------------------------------------------------------

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

    All information from the Native American Veterans Housing Loan 
Program and the Transitional Housing Loans for Homeless Veterans Program 
is consolidated in a single housing fund called the Miscellaneous 
Veterans Housing Loans 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. This is a pilot program that began in 1993 and 
is authorized through December 31, 2001.

    Public Law 105-368, the ``Veterans Benefits Improvement Act of 
1998,'' established a pilot program for VA to guarantee up to 15 loans, 
of which not more than five could be made in the first three years of 
the program, for multifamily transitional housing projects for homeless 
veterans. The projects guaranteed must provide supportive services and 
counseling as well as housing.

    The Guaranteed Transitional Housing Loans for Homeless Veterans 
Program Account reflects appropriations for the payment of subsidies to 
the Guaranteed Transitional Housing Loans for Homeless Veterans 
Guaranteed Loan Financing Account.

    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 and the guaranteed loans made 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 36-0128-0-1-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
41.0  Grants, subsidies, and 
        contributions...................                                   5
                                           ---------   ---------  ----------
99.9    Total new obligations...........           1           1           6
---------------------------------------------------------------------------

                                

   Miscellaneous Veterans Housing Loans Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           3          11          21
00.02 Interest on Treasury borrowing....           1           1           2
                                           ---------   ---------  ----------

[[Page 880]]


10.00   Total new obligations...........           4          12          23
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           4          12          23
23.95 Total new obligations.............          -4         -12         -23
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           3          10          20
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           2           3           5
68.47   Portion applied to debt 
          reduction.....................          -1          -1          -2
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................           1           2           3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4          12          23
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          -1                      -2
73.10 Total new obligations.............           4          12          23
73.20 Total financing disbursements 
        (gross).........................          -3         -13         -25
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                      -2          -3
87.00 Total financing disbursements 
        (gross).........................           3          13          25
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            program account.............                      -1          -2
          Non-Federal sources:
88.40       Repayment of principal......          -1
88.40       Interest received on loans..          -1          -2          -3
88.40       Other revenue...............
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -2          -3          -5
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           2           9          18
90.00 Financing disbursements...........           1          10          20
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................           3          11          22
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           3          11          22
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          14          16          26
1231  Disbursements: Direct loan 
        disbursements...................           3          10          22
1251  Repayments: Repayments and 
        prepayments.....................          -1                      -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          16          26          47
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4130-0-3-704    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....                          1             1              2
        Investments in US securities:
1106      Receivables, net..............           9
1206  Non-Federal assets: Receivables, 
        net.............................           1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          13             14            24             43
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          13             14            24             43
1504  Net value of assets related to 
        post-1991 acquired defaulted 
        guaranteed loans receivable: 
        Foreclosed property.............                          1                            1
1901  Other Federal assets: Other assets                         -1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          23             15            25             46
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............                         15            25             46
2201  Non-Federal liabilities: Accounts 
        payable.........................          23
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          23             15            25             46
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          23             15            25             46
-----------------------------------------------------------------------------------------------

    This account contains all the information on the Native American 
Veterans Housing Loan 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 obligation in 1992 and beyond. The amounts 
in the account are means of financing and are not included in the budget 
totals.

                                

 Miscellaneous Veterans Housing Loans Guaranteed Loan Financing Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.01   Other program costs.............
                                           ---------   ---------  ----------
10.00   Total new obligations...........
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                   3
23.95 Total new obligations.............
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                   3
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............
73.20 Total financing disbursements 
        (gross).........................
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                  -3
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      1998 actual   1999 est.   2000 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.................                                   7
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                                   7
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2231  Disbursements of new guaranteed 
        loans...........................                                   7
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                                   7
----------------------------------------------------------------------------

[[Page 881]]


    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                                   7
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......
                                           ---------   ---------  ----------
2390      Outstanding, end of year......
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4258-0-3-704    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                                       1
1901  Other Federal assets: Other assets
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                       1
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                                                       1
2105    Other...........................
2207  Non-Federal liabilities: Other....
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                                       1
    NET POSITION:
3200  Invested capital..................
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                                       1
-----------------------------------------------------------------------------------------------

    This account contains all the information on the Transitional 
Housing for Homeless Veterans Guaranteed Loan 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 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.

                                

        Miscellaneous Veterans Programs Loan Fund Program Account

             Vocational Rehabilitation Loans Program Account

                      (including transfer of funds)

    For the cost of direct loans, [$55,000] $57,000, 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 [$2,401,000] $2,531,000.

    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$400,000] $415,000, 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, 1999.)

                   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, [$206,000] $214,000, 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, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-1-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................           1           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           1           1           1
23.95 Total new obligations.............          -1          -1          -1
----------------------------------------------------------------------------

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

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

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           1
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 36-0140-0-1-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels, vocational 
        rehabiliation...................           2           2           3
                                           ---------   ---------  ----------
1159    Total direct loan levels........           2           2           3
    Direct loan subsidy (in percent):
1320  Voc. Rehab. Loan subsidy rate.....        1.74        1.94        2.27
1320  Education Loan subsidy rate.......       42.94       34.11       32.75
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       44.68       36.05       35.02
    Direct loan subsidy budget authority:
1330  Subsidy budget authority, 
        vocational rehabilitation.......
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..
    Direct loan subsidy outlays:
1349  Total subsidy outlays.............
----------------------------------------------------------------------------

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

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

    The Vocational Rehabilitation Loan Fund provides loans of up to $827 
(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.

[[Page 882]]

                                

 Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           2           2           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2           2           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................
22.00 New financing authority (gross)...           2           2           3
22.60 Redemption of debt................          -2          -2          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
23.95 Total new obligations.............          -2          -2          -3
24.40 Unobligated balance available, end 
        of year.........................
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           2           2           2
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          -2          -2          -3
68.47   Portion applied to debt 
          reduction.....................           2           2           4
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................                                   1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           2           2           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           2           2           3
73.20 Total financing disbursements 
        (gross).........................          -2          -2          -3
87.00 Total financing disbursements 
        (gross).........................           2           2           3
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Non-Federal sources.........
88.40       Interest on loans...........           2           2           3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........           2           2           3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           4           4           6
90.00 Financing disbursements...........                       4           6
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................           2           2           3
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           2           2           3
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........
1231  Disbursements: Direct loan 
        disbursements...................           2           2           2
1251  Repayments: Repayments and 
        prepayments.....................          -2          -2          -2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4259-0-3-702    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1106    Federal assets: Receivables, net                         -1            -1             -1
1401  Net value of assets related to 
        post-1991 direct loans 
        receivable: Direct loans 
        receivable, gross...............                          1             1              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................
-----------------------------------------------------------------------------------------------

    This account contains all information on the Vocational 
Rehabilitation Loan Program and Education Loan Fund.

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           1           1           1
1263  Write-offs for default: Direct 
        loans...........................
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1           1           1
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4260-0-3-702    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

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

    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 accounts.

                   WORKLOAD, AMOUNT LOANED AND REPAID

                                     1998 actual  1999 est.   2000 est.
Number of loans outstanding.........       4,926       5,008       4,858
Average amount per loan outstanding.        $539        $544        $561

                                

  

                               Trust Funds

               Post-Vietnam Era Veterans Education Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          64          65          65
    Receipts:
02.01 Deductions from military pay......           3           2           1
02.02 Contributions.....................          36                       2
                                           ---------   ---------  ----------
02.99   Total receipts..................          39           2           3
                                           ---------   ---------  ----------

[[Page 883]]


04.00 Total: Balances and collections...         103          67          68
    Appropriation:
05.01 Post-Vietnam era veterans 
        education account...............         -38          -2          -3
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............         -38          -2          -3
07.99 Total balance, end of year........          65          65          65
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to post-Vietnam era 
        trainees........................           9           8           5
00.03 Participant disenrollments........          29          29          30
                                           ---------   ---------  ----------
10.00   Total new obligations...........          38          37          35
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         119         120          85
22.00 New budget authority (gross)......          38           2           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         157         122          88
23.95 Total new obligations.............         -38         -37         -35
24.40 Unobligated balance available, end 
        of year.........................         120          85          54
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................          67           4           4
60.45 Portion precluded from obligation.         -29          -2          -1
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........          38           2           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           3           2
73.10 Total new obligations.............          38          37          35
73.20 Total outlays (gross).............         -39         -39         -35
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           2           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          38           2           3
86.98 Outlays from permanent balances...           1          37          32
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          39          39          35
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          38           2           3
90.00 Outlays...........................          39          39          35
---------------------------------------------------------------------------

    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]

                                     1998 actual  1999 est.   2000 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
  Transferred from Department of 
    Defense (Section 903)...........          $4
Total participants (end of year)....     250,483     221,956     192,056
Total contributors (end of year)....       2,798       2,168       1,302
Average contribution per contributor 
(actual dollars)....................      $1,138      $1,100      $1,100
Number of disenrollments............
Total refunds.......................         $29         $31         $30
Total trainees......................
Total trainee cost..................         $16          $7          $4
Average cost per trainee (actual 
dollars)............................      $1,639      $1,683      $1,705
Section 901 trainees................
Section 901 trainee cost............          $1

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................           9           8           5
44.0  Refunds...........................          29          29          30
                                           ---------   ---------  ----------
99.9    Total new obligations...........          38          37          35
---------------------------------------------------------------------------

                                

                  National Service Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............
    Receipts:
02.01 Premium and other receipts........         217         207         196
02.02 Interest..........................         977         909         853
02.03 Payments from general and special 
        funds...........................           2           6           2
                                           ---------   ---------  ----------
02.99   Total receipts..................       1,196       1,122       1,051
    Appropriation:
05.01 National Service Life Insurance 
        fund............................      -1,196      -1,122      -1,050
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct:

        Operating expenses:
00.01     Death claims..................         581         590         604
00.02     Disability claims.............          17          17          16
00.03     Matured endowments............          10          13          12
00.04     Cash surrenders...............          25          26          25
00.05     Dividends.....................         476         452         413
00.06     Interest paid on dividend 
            credits and deposits........          60          55          55
00.07     Payment to general operating 
            expenses....................          21          23          20
                                           ---------   ---------  ----------
00.91       Total operating expenses....       1,190       1,177       1,146
02.01 Capital investment: Policy loans..         116         122         121
                                           ---------   ---------  ----------
02.93   Total direct obligations........       1,306       1,298       1,266
09.01 Death claims......................         259         274         293
09.01 Disability claims.................           8           8           8
09.01 Matured endowments................           5           6           6
09.01 Cash surrenders...................          11          12          12
09.01 Dividends.........................         213         210         200
09.01 Interest paid on dividend credits 
        and deposits....................          27          26          26
09.01 Payment to general operating 
        expenses........................           9          11          10
                                           ---------   ---------  ----------
09.09   Reimbursable program--subtotal 
          line..........................         532         547         555
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,838       1,845       1,821
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................      10,783      10,675      10,474
22.00 New budget authority (gross)......       1,730       1,643       1,560
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      12,513      12,318      12,034
23.95 Total new obligations.............      -1,838      -1,845      -1,821
24.40 Unobligated balance available, end 
        of year.........................      10,675      10,474      10,211
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................       1,196       1,122       1,050
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         535         521         509
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,731       1,643       1,559
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,250       1,343       1,405
73.10 Total new obligations.............       1,838       1,845       1,821
73.20 Total outlays (gross).............      -1,745      -1,783      -1,782
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,343       1,405       1,444
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         495         440         377
86.98 Outlays from permanent balances...       1,250       1,343       1,405
                                           ---------   ---------  ----------

[[Page 884]]


87.00   Total outlays (gross)...........       1,745       1,783       1,782
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of loans.........        -131        -129        -128
88.40       Optional settlements........          -4          -4          -4
88.40       Net income offsets 
              adjustments...............        -400        -388        -377
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -535        -521        -509
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,196       1,122       1,050
90.00 Outlays...........................       1,210       1,262       1,273
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......      12,023      12,008      11,874
92.02 Total investments, end of year: 
        U.S. securities: Par value......      12,008      11,874      11,651
---------------------------------------------------------------------------
    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

                                     1998 actual  1999 est.   2000 est.

Number of policies..................   1,906,825   1,794,802   1,677,552
Insurance in force (dollars in 
millions)...........................     $18,264      $1,614     $16,894

    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 $12,851 million as of September 30, 1999 to $12,611 
million as of September 30, 2000. The actuarial estimate of policy 
obligations as of September 30, 2000, total $12,553 million, leaving a 
balance of $58 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Uninvested balance [unavailable 
        collections]....................          10          10           5
0101  U.S. Securities: Par value........      12,023      12,008      11,874
                                           ---------   ---------  ----------
0199    Total balance, start of year....      12,033      12,018      11,879
    Cash income during the year:
      Proprietary receipts:

0220    NSLI fund, premium and other 
          receipts......................         217         207         196
      Intragovernmental transactions:

0240    NSLI fund,interest..............         977         909         853
0241    NSLI fund, payments from general 
          and special funds.............           2           6           2
0242    Intragovernmental transactions..
      Offsetting collections:

0289    Offsetting collections..........         535         521         509
0297  Income under present law..........       1,731       1,643       1,560
0298  Income under proposed legislation.
                                           ---------   ---------  ----------
0299    Total cash income...............       1,731       1,643       1,560
    Cash outgo during year:
0500  National service life insurance 
        fund............................      -1,745      -1,783      -1,782
    Unexpended balance, end of year:
0700  Uninvested balance................          10           5           5
0701  U.S. Securities: Par value........      12,008      11,874      11,651
                                           ---------   ---------  ----------
0799    Total balance, end of year......      12,018      11,879      11,656
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

33.0    Investments and loans...........         116         122         121
42.0    Insurance claims and indemnities         631         646         657
43.0    Interest and dividends..........         559         530         488
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,306       1,298       1,266
99.0  Reimbursable obligations..........         532         547         555
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,838       1,845       1,821
---------------------------------------------------------------------------

                                

              United States Government Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1998 actual   1999 est.   2000 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           5
    Appropriation:
05.01 United States government life 
        insurance fund..................          -6          -6          -5
07.99 Total balance, end of year........
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.01   Death claims....................           7           6           6
00.02   Cash surrenders.................           1
00.05   Dividends.......................           4           4           4
00.06   Interest paid on dividend 
          credits and deposits..........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          13          11          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          72          66          61
22.00 New budget authority (gross)......           7           7           6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          79          73          67
23.95 Total new obligations.............         -13         -11         -11
24.40 Unobligated balance available, end 
        of year.........................          66          61          55
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................           6           6           5
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           7           7           6
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          20          19          18
73.10 Total new obligations.............          13          11          11
73.20 Total outlays (gross).............         -13         -14         -12
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          19          18          18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................           1           1           1
86.98 Outlays from permanent balances...          12          13          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13          14          12
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

[[Page 885]]



    Net budget authority and outlays:
89.00 Budget authority..................           7           7           5
90.00 Outlays...........................          12          14          12
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          92          85          79
92.02 Total investments, end of year: 
        U.S. securities: Par value......          86          79          73
---------------------------------------------------------------------------
    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

                                     1998 actual  1999 est.   2000 est.
Number of policies..................      19,660      18,062      16,504
Insurance in force (dollars in 
millions)...........................         $65         $59         $54

    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 $84 million 
as of September 30, 1999, to $78 million as of September 30, 2000, as an 
increasing number of policies mature through death or disability. The 
actuarial evaluation of policy obligations as of September 30, 2000, 
totals $77 million, leaving a balance of $1 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0101  U.S. Securities: Par value........          92          85          79
    Cash income during the year:
      Intragovernmental transactions:

0240    Interest and profits on 
          investments in public debt 
          securities, USGLI, VA.........           6           6           5
      Offsetting collections:

0289    Offsetting Collections..........           1           1           1
                                           ---------   ---------  ----------
0299    Total cash income...............           7           7           6
    Cash outgo during year:
0500  United States government life 
        insurance fund..................         -13         -14         -12
    Unexpended balance, end of year:
0701  U.S. Securities: Par value........          86          79          73
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
42.0  Insurance claims and indemnities..           8           7           7
43.0  Interest and dividends............           5           4           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........          13          11          11
---------------------------------------------------------------------------

                                

                  Veterans Special Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          48          54          58
09.01 Cash surrenders...................           5           6           7
09.01 Dividends.........................         105         105         100
09.01 All other.........................          62          54          37
09.01 Payment to general operating 
        expenses account................           5           5           5
09.02 Capital investment................          21          24          23
                                           ---------   ---------  ----------
10.00   Total new obligations...........         246         248         230
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       1,425       1,420       1,408
22.00 New budget authority (gross)......         240         236         233
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,665       1,656       1,641
23.95 Total new obligations.............        -246        -248        -230
24.40 Unobligated balance available, end 
        of year.........................       1,420       1,408       1,410
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         240         236         233
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         187         210         231
73.10 Total new obligations.............         246         248         230
73.20 Total outlays (gross).............        -222        -227        -217
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         210         231         244
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          35          16          12
86.98 Outlays from permanent balances...         187         211         206
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         222         227         217
----------------------------------------------------------------------------

    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...         -67         -66         -65
88.40       Optional settlements........          -2          -2          -3
88.40       Repayments of loans.........         -19         -20         -21
88.45     Offsetting governmental 
            collections.................        -146        -141        -137
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -240        -236        -233
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -18          -9         -15
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......       1,610       1,630       1,640
92.02 Total investments, end of year: 
        U.S. securities: Par value......       1,628       1,640       1,655
---------------------------------------------------------------------------
    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.
        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

                                     1998 actual  1999 est.   2000 est.
Number of policies..................     240,394     233,274     226,474
Insurance in force (dollars in 
millions)...........................          $3          $3          $3


[[Page 886]]



    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. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          21          23          23
42.0  Insurance claims and indemnities..         102         100          88
43.0  Interest and dividends............         123         125         119
                                           ---------   ---------  ----------
99.9    Total new obligations...........         246         248         230
---------------------------------------------------------------------------

                                


 
                              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, 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, [$142,300,000] $60,140,000, to 
remain available until expended: Provided, 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 [1999] 2000, for each 
approved project shall be obligated: (1) by the awarding of a 
construction documents contract by September 30, [1999] 2000; and (2) by 
the awarding of a construction contract by September 30, [2000] 2001: 
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: [Provided further, That not to exceed $125,000 may be 
transferred to the Pershing Hall Revolving Fund, codified at section 
493(d) of title 36, United States Code: Provided further, That during 
fiscal year 1999, or in subsequent fiscal years, the ``Construction, 
major projects'' account shall be reimbursed, in the amount transferred, 
from other funds as they become part of the Pershing Hall Revolving 
Fund]. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Replacement and modernization.....          14          74           7
00.02 Nursing home care.................           1           1           1
00.06 Other improvements................         128         196         187
00.07 National cemeteries...............          66          23          29
00.08 Replacement or renovation of 
        regional offices................           2
09.01 Reimbursable Program (Joint 
        Project with State of TN.)......          14           3           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         225         297         225
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         588         592         437
22.00 New budget authority (gross)......         228         142          60
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         816         734         497
23.95 Total new obligations.............        -225        -297        -225
24.40 Unobligated balance available, end 
        of year.........................         592         437         272
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         178         142          60
      Permanent:

65.00   Advance appropriation (definite)          32
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          18
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         228         142          60
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         479         378         466
73.10 Total new obligations.............         225         297         225
73.20 Total outlays (gross).............        -325        -209        -184
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         378         466         507
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           9           6           3
86.93 Outlays from current balances.....         316         186         165
86.98 Outlays from permanent balances...                      17          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         325         209         184
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -18
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         210         142          60
90.00 Outlays...........................         307         209         184
---------------------------------------------------------------------------

    Funds are requested for a clinical improvement project at Kansas 
City, MO, a spinal cord injury and rehabilitation project at Tampa, FL, 
a patient environment project at Murfreesburo, TN, and a facility right 
sizing and development project at Leavenworth, KS.

    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]

                                     1998 actual  1999 est.   2000 est.
Replacement and modernization.......          35
Research and Education..............
Outpatient and improvements.........          47          46          31
Seismic corrections.................                      73
Patient environment.................          46          10          13
General.............................          14          12           5
Other departments...................          37          21          12
Advance appropriation provided under 
P.L. 104-204........................          32
Design fund offset..................          -1          -2          -1
Reprogramming.......................                     -18
                                    ------------------------------------
      Total budget authority........         210         142          60
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.3    Personnel compensation: Other 
          than full-time permanent......           1           1           1
25.2    Other services..................          24          32          25
26.0    Supplies and materials..........           2           2           2

[[Page 887]]

31.0    Equipment.......................          -2           3           3
32.0    Land and structures.............         186         256         193
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         211         294         224
99.0  Reimbursable obligations..........          14           3           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         225         297         225
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          26          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, where the estimated cost of a project is less 
than $4,000,000, $175,000,000, 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, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Medical programs..................         163         157         153
00.06 National cemeteries...............          13          23          15
00.07 Computer centers, additions and 
        alterations.....................           6           8           3
00.08 Replacement or renovation of 
        regional offices................           7           9           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........         189         197         177
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          67          53          31
22.00 New budget authority (gross)......         175         175         175
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         242         228         206
23.95 Total new obligations.............        -189        -197        -177
24.40 Unobligated balance available, end 
        of year.........................          53          31          27
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         190         223         244
73.10 Total new obligations.............         189         197         177
73.20 Total outlays (gross).............        -155        -176        -175
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         223         244         246
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          45          46          46
86.93 Outlays from current balances.....         110         131         130
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         155         176         175
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         175         175         175
90.00 Outlays...........................         156         176         175
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           4           5           4
25.2  Other services....................          37          35          32
26.0  Supplies and materials............           1           2           1
32.0  Land and structures...............         147         155         140
                                           ---------   ---------  ----------
99.9    Total new obligations...........         189         197         177
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          57          80          80
---------------------------------------------------------------------------

                                

        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, 
[$90,000,000] $40,000,000, to remain available until expended. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0181-0-1-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................          90          90          40
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          90          90          40
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          10
22.00 New budget authority (gross)......          80          90          40
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          90          90          40
23.95 Total new obligations.............         -90         -90         -40
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          80          90          40
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         120         155         193
73.10 Total new obligations.............          90          90          40
73.20 Total outlays (gross).............         -50         -52         -64
73.40 Adjustments in expired accounts...          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         155         193         169
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          50          52          64
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          80          90          40
90.00 Outlays...........................          49          52          64
---------------------------------------------------------------------------

    In 1999, the Department plans to obligate $90 million to assist ten 
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.

[[Page 888]]

                                

        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] 
$11,000,000, to remain available until expended. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0183-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................           6          14          11
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................           6          14          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                       4
22.00 New budget authority (gross)......          10          10          11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          10          14          11
23.95 Total new obligations.............          -6         -14         -11
24.40 Unobligated balance available, end 
        of year.........................           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          10          10          11
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          13          16          25
73.10 Total new obligations.............           6          14          11
73.20 Total outlays (gross).............          -3          -5          -8
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          16          25          27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           3           5           8
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          10          10          11
90.00 Outlays...........................           3           5           8
---------------------------------------------------------------------------

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

                                

                           Capital Asset Fund

    For the administrative start-up costs of the Capital Asset Fund, 
subject to enactment of authorizing legislation, $10,000,000, to remain 
available until five years from the date of enactment, at which time any 
unobligated funds shall be transferred to and merged with the 
Construction, Minor Projects account.

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5459-2-2-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Capital Asset Fund................                                   6
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                   6
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  10
23.95 Total new obligations.............                                  -6
24.40 Unobligated balance available, end 
        of year.........................                                   3
----------------------------------------------------------------------------

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

    Change in unpaid obligations:
73.10 Total new obligations.............                                   6
73.20 Total outlays (gross).............                                  -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                   3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                   3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  10
90.00 Outlays...........................                                   3
---------------------------------------------------------------------------

    This legislative proposal would authorize the establishment of a new 
five-year pilot that would allow the VA to sell, transfer, or exchange 
its excess properties, retain ninety percent of the proceeds, and 
reinvest those proceeds in other non-recurring capital needs to benefit 
veterans. This pilot would also direct ten percent of the net proceeds 
to supplement continuum of care homeless projects in local areas.

    A legislative proposal to authorize this program will be transmitted 
with the FY 2000 budget. The Administration also requests $10 million in 
appropriation to fund the administrative start-up costs of this new 
activity. The Administration estimates collections from the sale of 
surplus properties to be $18 million annually from 2001 to 2004. Total 
collections under this pilot are estimated at $72 million. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5459-2-2-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................                                   3
32.0  Land and structures...............                                   3
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                   6
---------------------------------------------------------------------------

                                

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, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: parking leases           2           3           1
09.01 Capital Investment: parking 
        construction program............           2          26           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........           4          29           5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          31          30           4
22.00 New budget authority (gross)......           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          34          33           7
23.95 Total new obligations.............          -4         -29          -5
24.40 Unobligated balance available, end 
        of year.........................          30           4           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............           3           3           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          20          12          31
73.10 Total new obligations.............           4          29           5
73.20 Total outlays (gross).............         -12         -10          -7
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          12          31          29
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           9           7           4
86.97 Outlays from new permanent 
        authority.......................           3           3           3
86.98 Outlays from permanent balances...                                   1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          10           7
----------------------------------------------------------------------------

[[Page 889]]



    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..................
90.00 Outlays...........................           9           7           4
---------------------------------------------------------------------------

    The Parking Revolving Fund provides funding for the construction and 
lease of parking facilities at various medical centers.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
23.2  Direct obligations: Rental 
        payments to others..............           2           3           1
32.0  Reimbursable obligations: Land and 
        structures......................           2          26           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........           4          29           5
---------------------------------------------------------------------------

                                

                      Pershing Hall Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4018-0-3-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
24.40 Unobligated balance available, end 
        of year.........................           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] $35,000 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, [$855,661,000] $912,353,000: Provided, That funds under 
this heading shall be available to administer the Service Members 
Occupational Conversion and Training Act. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Veterans benefits:
00.04     Compensation and pensions.....         462         509         560
00.05     Education.....................          65          71          65
00.06     Vocational rehabilitation and 
            counseling..................          67          72          78
00.09     Insurance\1\..................           3           3           3
00.11     General administration........         190         228         206
09.01 Administration of housing credit 
        programs........................         161         159         157
09.02 Administration of other credit 
        programs........................           1           1           1
09.03 Administration of insurance 
        programs........................          35          39          37
09.04 Other reimbursable programs.......         105         128         148
                                           ---------   ---------  ----------
09.99   Total reimbursable program......         302         327         343
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,089       1,210       1,255
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,089       1,210       1,255
23.95 Total new obligations.............      -1,089      -1,210      -1,255
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         787         856         912
42.00   Transferred from other accounts.                      27
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         787         883         912
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         302         327         343
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,089       1,210       1,255
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         138         136          88
73.10 Total new obligations.............       1,089       1,210       1,255
73.20 Total outlays (gross).............      -1,088      -1,258      -1,253
73.40 Adjustments in expired accounts...          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         136          88          91
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         676         795         821
86.93 Outlays from current balances.....         108         136          88
86.97 Outlays from new permanent 
        authority.......................         300         327         343
86.98 Outlays from permanent balances...           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,088       1,258       1,253
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -302        -327        -343
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         787         883         912
90.00 Outlays...........................         786         931         910
---------------------------------------------------------------------------
    \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. The 
2000 budget assumes an increase of more than 10% in FTE devoted to 
claims adjudication, which is accomplished by redirecting resources away 
from obsolete information technology and the property management 
function in Loan Guarantee. All Year 2000 computer conversion efforts 
are fully funded.

    Veterans benefits.--Determines eligibility and adjudicates all 
claims for compensation, pensions, educational assistance, housing loan 
assistance, and insurance awards. 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 to the processing of veterans benefits are contained in 
VA's annual performance plan.

[[Page 890]]

    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]

                                     1998 actual    1999 
                                                  projected     2000 
                                                              projected
Compensation:
  Rating-Related Actions \1\........         537         537         540
  Non Rating Actions \2\............         281         278         277
Pension:
  Rating-Related Actions \1\........         126         125         125
  Non Rating Actions \2\............         649         649         651
    \1\ Rating related actions include original compensation claims (EP 
010/110), original DIC claims (EP 140), original pensions claims (EP 
180), reopened compensation claims (EP 020), reopened pension claims (EP 
120), routine examinations (EP 310), and reviews due to hospitalizations 
(EP 320).
    \2\ Non Rating actions include dependency issues (EP 130), income 
issues (EP 150), IVM (EP 154), EVR (EP 155, burial/plot claims (EP 160), 
claims for accrued benefits (EP 165), original death pension claims (EP 
190), and special eligibility determinations (EP 290).

    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]

                                     1998 actual  1999 est.   2000 est.
Education:
  Original claims...................         145         143         136
  Adjustments/supplemental claims...         917         906         917

     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]

                                     1998 actual  1999 est.   2000 est.
Loan guaranty:
  Construction and valuation........         396         356         320
  Loan processing...................         882         795         715
  Loan service and claims...........         259         274         290
  Property management...............          57          60          63

    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]

                                     1998 actual  1999 est.   2000 est.
Vocational rehabilitation and 
    counseling:
  Evaluation and planning...........          49          48          46
  Rehabilitation services...........          53          51          50
  Employment services status........          10          11          11
  Vocational/educational counseling.          13          13          13

    Insurance.--Provides life insurance protection for servicepersons 
and veterans. The VA administers six life insurance programs and 
supervises two others through a contractual agreement with a commercial 
company.

                                WORKLOAD

                             [In thousands]

                                     1998 actual  1999 est.   2000 est.
Insurance:
  Policy service actions............       1,229       1,221       1,189
  Collections.......................       3,390       3,206       3,016
  Disability claims.................          15          13          12
  Insurance awards..................         534       1,069         804

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         465         495         523
11.5      Other personnel compensation..          10           9          11
11.8      Special personal services 
            payments....................           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation         476         504         534
12.1    Civilian personnel benefits.....         104         108         114
13.0    Benefits for former personnel...          10
        Travel and transportation of 
            persons:
21.0      Employee travel...............           7          12          14
21.0      Interagency motor pool 
            payments....................           2           2           1
22.0    Transportation of things........           2           3           2
23.1    Rental payments to GSA..........          68          71          75
23.2    Rental payments to others.......           6           7           9
23.3    Communications, utilities, and 
          miscellaneous charges.........          19          50          35
24.0    Printing and reproduction.......           3           3           4
25.2    Other services..................          64          92         102
26.0    Supplies and materials..........          10           8          11
31.0    Equipment.......................          16          23          11
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         787         883         912
99.0  Reimbursable obligations..........         302         327         343
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,089       1,210       1,255
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment\1\...      10,152      10,318      10,689
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       3,255       3,445       3,350
---------------------------------------------------------------------------
    \1\ Reflects FTE treated as reimbursements in all years and the 
effects of Credit Reform, per P.L. 101-508.

                                

                       Office of Inspector General

                     [(including transfer of funds)]

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
[$36,000,000: Provided, That of the amount made available under this 
heading, not to exceed $30,000 may be transferred to and merged with the 
appropriation for ``General operating expenses''] $43,200,000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct program....................          31          36          43
09.00 Reimbursable program..............           2           2           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          33          38          46
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          33          38          46
23.95 Total new obligations.............         -33         -38         -46
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          31          36          43
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           3
                                           ---------   ---------  ----------

[[Page 891]]


70.00   Total new budget authority 
          (gross).......................          33          38          46
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           5           7           8
73.10 Total new obligations.............          33          38          46
73.20 Total outlays (gross).............         -33         -38         -46
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           7           8          10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          26          34          41
86.93 Outlays from current balances.....           3           4           2
86.97 Outlays from new permanent 
        authority.......................           2           2           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          33          38          46
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2          -2          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          31          36          43
90.00 Outlays...........................          29          36          43
---------------------------------------------------------------------------

    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 as well as contract 
audit services for all applicable Department contracts. The 
investigative function conducts proactive and reactive criminal and 
administrative investigations of improper and illegal activities 
involving VA programs, personnel, beneficiaries, and other third 
parties. The healthcare inspection function performs legislatively 
mandated medical care quality assurance reviews and oversight. The 
support function provides normal office administrative support.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          20          24          26
12.1    Civilian personnel benefits.....           5           5           6
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.1    Rental payments to GSA..........           2           3           3
25.2    Other services..................           1           2           6
31.0    Equipment.......................           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          31          36          43
99.0  Reimbursable obligations..........           2           2           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          33          38          46
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         302         339         350
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          20          23          24
---------------------------------------------------------------------------

                                

                National Cemetery [System] Administration

                     [(including transfer of funds)]

    For necessary expenses for the maintenance and operation of the 
National Cemetery [System] Administration, not otherwise provided for, 
including uniforms or allowances therefor; cemeterial expenses as 
authorized by law; purchase of [six] two passenger motor vehicles for 
use in cemeterial operations; and hire of passenger motor vehicles, 
[$92,006,000: Provided, That of the amount made available under this 
heading, not to exceed $90,000 may be transferred to and merged with the 
appropriation for ``General operating expenses''] $97,000,000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1999.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct obligations................          84          92          97
                                           ---------   ---------  ----------
10.00   Total new obligations...........          84          92          97
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          84          92          97
23.95 Total new obligations.............         -84         -92         -97
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          84          92          97
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          10          13          14
73.10 Total new obligations.............          84          92          97
73.20 Total outlays (gross).............         -81         -91         -97
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          13          14          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          73          83          87
86.93 Outlays from current balances.....           8           8           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          81          91          97
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          84          92          97
90.00 Outlays...........................          81          91          97
---------------------------------------------------------------------------

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

    The mission of the National Cemetery Administration is to honor 
veterans with a final resting place and lasting memorials that 
commemorate their service to our Nation. The National Cemetery 
Administration'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 Administration 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 Administration 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          39          42          45
11.3    Other than full-time permanent..           6           7           7
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          45          49          52
12.1  Civilian personnel benefits.......          13          13          14
21.0  Travel and transportation of 
        persons.........................           1           1           1

[[Page 892]]

23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           4           5           6
25.2  Other services....................           8          10          12
26.0  Supplies and materials............           6           7           7
31.0  Equipment.........................           6           6           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........          84          92          97
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,328       1,369       1,406
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                               Supply Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Cost of goods sold................         462         675         701
09.01 Other.............................          40          47          49
09.02 Cost of goods sold................           5          10          10
09.02 Other.............................           3           2           2
09.03 Procurement, distribution, and 
        services program: Purchase of 
        equipment.......................          17           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         527         736         764
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          83         132         132
22.00 New budget authority (gross)......         576         736         764
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         659         868         896
23.95 Total new obligations.............        -527        -736        -764
24.40 Unobligated balance available, end 
        of year.........................         132         132         132
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...         478         736         764
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          98
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         576         736         764
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          33         -32         -32
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         268         366         366
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         301         334         334
73.10 Total new obligations.............         527         736         764
73.20 Total outlays (gross).............        -494        -736        -764
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         -32         -32         -33
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         366         366         366
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         334         334         333
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         494         736         764
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -478        -736        -764
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................         -98
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          16
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................
  Outlays...........................          16
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................
  Outlays...........................
                                    ------------------------------------
Total:
  Budget Authority..................
  Outlays...........................          16
                                    ====================================

    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 2000, Supply Fund sales are 
estimated to reach $763 million. Average inventory needed to support 
those sales will be $42 million.

    Operating results.--The Fund operated at a loss of $11 million in 
1998. The new total of retained earnings is $82 million. Operating 
expense as related to sales was 11 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          18          21          21
11.5    Other personnel compensation....           1           1           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          19          22          23
12.1  Civilian personnel benefits.......           4           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...........           3           3           3
24.0  Printing and reproduction.........           6          10          10
25.1  Advisory and assistance services..          10          13          14
26.0  Supplies and materials............         268         319         331
31.0  Equipment.........................         213         359         373
                                           ---------   ---------  ----------
99.9    Total new obligations...........         527         736         764
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         355         380         399
---------------------------------------------------------------------------

                                

                               Supply Fund

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-4-4-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.03 Procurement, distribution, and 
        services program: Purchase of 
        equipment.......................                                   5
                                           ---------   ---------  ----------

[[Page 893]]


10.00   Total new obligations (object 
          class 31.0)...................                                   5
----------------------------------------------------------------------------

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

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

    Change in unpaid obligations:
73.10 Total 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 2000, 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 4 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 
collect and spend up to $15 million on this information system. After 
September 30, 2005, 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............          86          96          97
                                           ---------   ---------  ----------
10.00   Total new obligations...........          86          96          97
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           7           7
22.00 New budget authority (gross)......          87          96          97
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          92         103         104
23.95 Total new obligations.............         -86         -96         -97
24.40 Unobligated balance available, end 
        of year.........................           7           7           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............          87          96          97
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           8          26          26
73.10 Total new obligations.............          86          96          97
73.20 Total outlays (gross).............         -68         -96         -97
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          26          26          26
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          60          96          97
86.98 Outlays from permanent balances...           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          68          96          97
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -87         -96         -97
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -19
---------------------------------------------------------------------------

    VA was chosen as a pilot Franchise Fund agency under the Government 
Management and Reform Act, P.L. 103-356, of 1994. Established in 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. 
Enterprise Centers are the lines of business within the VA Franchise 
Fund and are expected to have net billings of about $97 million and 
employ 680 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          29          30          30
12.1  Civilian personnel benefits.......           6           6           6
21.0  Travel and transportation of 
        persons.........................           1           1           1
22.0  Transportation of things..........                       1           4
23.1  Rental payments to GSA............           3           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........          12          26          26
25.2  Other services....................          30          27          23
26.0  Supplies and materials............           1           2           1
31.0  Equipment.........................           4                       3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          86          96          97
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         546         683         680
---------------------------------------------------------------------------

                                


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  36-243100  Fees and other charges for 
    medical services, VA................         356
  36-247300  Contributions from military 
    personnel, Veteran's Educational 
    Assistance Act of 1984..............         164         173         181
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         520         173         181
---------------------------------------------------------------------------

                                

                        Administrative Provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for fiscal year [1999] 2000 for 
[``Compensation and pensions''], ``Compensation'', ``Pension'', 
``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 [1999] 2000 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 
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

[[Page 894]]

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 [1999] 2000 for [``Compensation and pensions'',] 
``Compensation'', ``Pension'', ``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 
[1998] 1999.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year [1999] 2000 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 [1999] 2000, 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 [1999] 2000, 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 [1999] 2000, 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. [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 Departments 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 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1995 (Public Law 103-327) under 
the heading ``Medical care''.]
    Sec. 108. Beginning in fiscal year 2000 and thereafter, funds 
available in any Department of Veterans Affairs appropriation or fund 
for salaries and expenses shall also be available to reimburse the 
Office of Resolution Management and the Office of Employment 
Discrimination Complaint Adjudication for all services provided by such 
office 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.
    [Sec. 109. (a) The Department of Veterans Affairs medical center in 
Salisbury, North Carolina, is hereby designated as the ``W.G. (Bill) 
Hefner Salisbury Department of Veterans Affairs Medical Center''. Any 
reference to such center in any law, regulation, map, document, record 
or other paper of the United States shall be considered to be a 
reference to the ``W.G. (Bill) Hefner Salisbury Department of Veterans 
Affairs Medical Center''.
    (b) The provisions of subsection (a) are effective on the latter of 
the first day of the 106th Congress or January 3, 1999.]
    [Sec. 110. Land Conveyance, Ridgecrest Children's Center, Alabama. 
(a) Conveyance.--The Secretary of Veterans Affairs may convey, without 
consideration, to the Board of Trustees of the University of Alabama, 
all right, title, and interest of the United States in and to the parcel 
of real property, including any improvements thereon, described in 
subsection (b).
    (b) Covered Parcel.--The parcel of real property to be conveyed 
under subsection (a) is the following: A parcel of property lying in the 
northeast quarter of the southwest quarter, section 28, township 21 
south, range 9 west, Tuscaloosa County, Alabama, lying along and 
adjacent to Ridgecrest (Brewer's Porch) Children's Center being more 
particularly described as follows: As a point of commencement start at 
the southeast corner of the north half of the southwest quarter run in 
an easterly direction along an easterly projection of the north boundary 
of the southeast quarter of the southwest quarter for a distance of 
888.52 feet to a point; thence with a deflection angle to the left of 
134 degrees 41 minutes run in a northwesterly direction for a distance 
of 1164.38 feet to an iron pipe; thence with a deflection angle to the 
left of 75 degrees 03 minutes run in a southwesterly direction for a 
distance of 37.13 feet to the point of beginning of this parcel of 
property; thence continue in this same southwesterly direction along the 
projection of the chainlink fence for a distance of 169.68 feet to a 
point; thence with an interior angle to the left of 63 degrees 16 
minutes run in a northerly direction for a distance of 233.70 feet to a 
point; thence with an interior angle to the left of 43 degrees 55 
minutes run in a southeasterly direction for a distance of 218.48 feet 
to the point of beginning, said parcel having an interior angle of 
closure of 72 degrees 49 minutes, said parcel containing 0.40 acres more 
or less, said parcel of property is also subject to all rights-of-way, 
easements, and conveyances heretofore given for this parcel of property.
    (c) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.]
    [Sec. 111. (a) The Department of Veterans Affairs medical center in 
Cleveland, Ohio, is hereby designated as the ``Louis Stokes Cleveland 
Department of Veterans Affairs Medical Center''. Any reference to such 
center in any law, regulation, map, document, record or other paper of 
the United States shall be considered to be a reference to the ``Louis 
Stokes Cleveland Department of Veterans Affairs Medical Center''.
    (b) The provisions of subsection (a) are effective on the latter of 
the first day of the 106th Congress or January 3, 1999.] (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1999.)

                                


 
                      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

[[Page 895]]

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 their domicile and their 
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.
    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 twenty-four 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] 414. (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] 415. 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] 416. Such sums as may be necessary for fiscal year [1999] 
2000 pay raises for programs funded by this Act shall be absorbed within 
the levels appropriated in this Act.
    Sec. [418] 417. 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] 418. 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 [1999] 2000 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] 419. 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 [1999 and prior 
fiscal years] 2000 may be used for implementing comprehensive 
conservation and management plans.
    Sec. [421] 420. 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.
    Sec. [422] 421. Notwithstanding any other law, funds made available 
by this or any other Act or previous Acts for the United States/Mexico 
Foundation for Science may be used for the endowment of such 
Foundation[.]: Provided, That funds from the U.S. Government shall be 
matched in equal amounts with funds from Mexico: Provided further, That 
the accounts of such Foundation shall be subject to U.S. Government 
administrative and audit requirements concerning grants and requirements 
concerning cost principles for nonprofit organizations.
    [Sec. 423. (a) Within 90 days of the enactment of this Act, the 
Consumer Product Safety Commission shall make all necessary arrangements 
for the Committee on Toxicology of the National Academy of Sciences 
(NAS) to conduct an independent 12-month study of the potential 
toxicologic risks of all flame-retardant chemicals identified by the NAS 
and the Commission as likely candidates for use in residential 
upholstered furniture for the purpose of meeting regulations proposed by 
the Commission for flame resistance of residential upholstered 
furniture.
    (b) Upon completion of its report, the Academy shall send the report 
to the Commission, which shall provide it to the Congress.
    (c) The Commission, before promulgating any notice of proposed 
rulemaking or final rulemaking setting flammability standards for

[[Page 896]]

residential upholstered furniture, shall consider fully the findings and 
conclusions of the Academy.]
    [Sec. 424. None of the funds made available in this Act may be used 
for researching methods to reduce methane emissions from cows, sheep, or 
any other ruminant livestock.]
    Sec. [425] 422. None of the funds made available in this Act may be 
used to carry out Executive Order No. 13083.
    [Sec. 426. Unless otherwise provided for in this Act, no part of any 
appropriation for the Department of Housing and Urban Development shall 
be available for any activity in excess of amounts set forth in the 
budget estimates submitted for the appropriations.]
    [Sec. 427. National Fallen Firefighters Foundation. (a) 
Establishment and Purposes.--Section 202 of the National Fallen 
Firefighters Foundation Act (36 U.S.C. 5201) is amended--
        (1) by striking paragraph (1) and inserting the following:
        ``(1) primarily--
            ``(A) to encourage, accept, and administer private gifts of 
        property for the benefit of the National Fallen Firefighters' 
        Memorial and the annual memorial service associated with the 
        memorial; and
            ``(B) to, in coordination with the Federal Government and 
        fire services (as that term is defined in section 4 of the 
        Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
        2203)), plan, direct, and manage the memorial service referred 
        to in subparagraph (A) and related activities;'';
        (2) in paragraph (2), by inserting ``and Federal'' after ``non-
    Federal'';
        (3) in paragraph (3)--
            (A) by striking ``State and local'' and inserting ``Federal, 
        State, and local''; and
            (B) by striking ``and'' at the end;
        (4) in paragraph (4), by striking the period at the end and 
    inserting a semicolon; and
        (5) by adding at the end the following:
        ``(5) to provide for a national program to assist families of 
    fallen firefighters and fire departments in dealing with line-of-
    duty deaths of those firefighters; and
        ``(6) to promote national, State, and local initiatives to 
    increase public awareness of fire and life safety.''.
    (b) Board of Directors of Foundation.--Section 203(g)(1) of the 
National Fallen Firefighters Foundation Act (36 U.S.C. 5202(g)(1)) is 
amended by striking subparagraph (A) and inserting the following:
            ``(A) appointing officers or employees;''.
    (c) Administrative Services and Support.--Section 205 of the 
National Fallen Firefighters Foundation Act (36 U.S.C. 5204) is amended 
to read as follows:

``SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.

    ``(a) In General.--During the 10-year period beginning on the date 
of the enactment of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1999, 
the Administrator may--
        ``(1) provide personnel, facilities, and other required services 
    for the operation of the Foundation; and
        ``(2) accept reimbursement for the assistance provided under 
    paragraph (1).
    ``(b) Reimbursement.--Any amounts received under subsection (a)(2) 
as reimbursement for assistance shall be deposited in the Treasury to 
the credit of the appropriations then current and chargeable for the 
cost of providing that assistance.
    ``(c) Prohibition.--Notwithstanding any other provision of law, no 
Federal personnel or stationery may be used to solicit funding for the 
Foundation.''.]
    [Sec. 428. Ineligibility of Individuals Convicted of Manufacturing 
or Producing Methamphetamine for Certain Housing Assistance.--Section 16 
of the United States Housing Act of 1937 (42 U.S.C. 1437n) is amended by 
adding at the end the following:
    ``(f ) Ineligibility of Individuals Convicted of Manufacturing or 
Producing Methamphetamine on the Premises.--Notwithstanding any other 
provision of law, a public housing agency shall establish standards for 
occupancy in public housing dwelling units and assistance under section 
8 that--
        ``(1) permanently prohibit occupancy in any public housing 
    dwelling unit by, and assistance under section 8 for, any person who 
    has been convicted of manufacturing or otherwise producing 
    methamphetamine on the premises in violation of any Federal or State 
    law; and
        ``(2) immediately and permanently terminate the tenancy in any 
    public housing unit of, and the assistance under section 8 for, any 
    person who is convicted of manufacturing or otherwise producing 
    methamphetamine on the premises in violation of any Federal or State 
    law.''.]
    [Sec. 429. (a) Not later than 90 days after the date of the 
enactment of this Act, the Consumer Product Safety Commission shall 
propose for comment a revocation of the amendments to the standards for 
the flammability of children's sleepwear sizes 0 through 6X (contained 
in regulations published at 16 CFR part 1615) and 7 through 14 
(contained in regulations published at 16 CFR part 1616) issued by the 
Commission on September 9, 1996 (61 FR 47634), and any subsequent 
amendments thereto.
    (b) The General Accounting Office shall undertake a review of 
children's burn incident data relating to burns from the ignition of 
children's sleepwear from small open flame sources for the period July 
1, 1997 through January 1, 1999. Such review shall be completed by April 
1, 1999 and shall be submitted to the Congress and to the Consumer 
Product Safety Commission.
    (c) Not later than July 1, 1999, the Consumer Product Safety 
Commission shall promulgate a final rule revoking, maintaining or 
modifying the amendments issued by the Commission on September 9, 1996 
(61 FR 47634) and any subsequent amendments thereto amending the 
Flammable Fabrics Act standards for the flammability of children's 
sleepwear, considering and substantively addressing the findings of the 
General Accounting Office and other information available to the 
Commission.
    (d) None of the following shall apply with respect to the 
promulgation of the amendment prescribed by subsection (a):
        (1) The Consumer Product Safety Act (15 U.S.C. 2051 et seq.).
        (2) The Flammable Fabrics Act (15 U.S.C. 1191 et seq.).
        (3) Chapter 6 of title 5, United States Code.
        (4) The National Environmental Policy Act of 1969 (42 U.S.C. 
    4321 et seq.).
        (5) The Small Business Regulatory Enforcement Fairness Act of 
    1996 (Public Law 104-121).
        (6) Any other statute or Executive order.]
    [Sec. 430. Comprehensive Accountability Study for Federally-Funded 
Research. (a) Study.--The Director of the Office of Science and 
Technology Policy, in consultation with the Director of the Office of 
Management and Budget, may enter into an agreement with the National 
Academy of Sciences for the Academy to conduct a comprehensive study to 
develop methods for evaluating federally-funded research and development 
programs. This study shall--
        (1) recommend processes to determine an acceptable level of 
    success for federally-funded research and development programs by--
            (A) describing the research process in the various 
        scientific and engineering disciplines;
            (B) describing in the different sciences what measures and 
        what criteria each community uses to evaluate the success or 
        failure of a program, and on what time scales these measures are 
        considered reliable--both for exploratory long-range work and 
        for short-range goals; and
            (C) recommending how these measures may be adapted for use 
        by the Federal Government to evaluate federally-funded research 
        and development programs;
        (2) assess the extent to which agencies incorporate independent 
    merit-based evaluation into the formulation of the strategic plans 
    of funding agencies and if the quantity or quality of this type of 
    input is unsatisfactory;
        (3) recommend mechanisms for identifying federally-funded 
    research and development programs which are unsuccessful or 
    unproductive;
        (4) evaluate the extent to which independent, merit-based 
    evaluation of federally-funded research and development programs and 
    projects achieves the goal of eliminating unsuccessful or 
    unproductive programs and projects; and
        (5) investigate and report on the validity of using quantitative 
    performance goals for aspects of programs which relate to 
    administrative management of the program and for which such goals 
    would be appropriate, including aspects related to--
            (A) administrative burden on contractors and recipients of 
        financial assistance awards;
            (B) administrative burdens on external participants in 
        independent, merit-based evaluations;
            (C) cost and schedule control for construction projects 
        funded by the program;
            (D) the ratio of overhead costs of the program relative to 
        the amounts expended through the program for equipment and 
        direct funding of research; and

[[Page 897]]

            (E) the timeliness of program responses to requests for 
        funding, participation, or equipment use.
    (b) Independent Merit-Based Evaluation Defined.--The term 
``independent merit-based evaluation'' means review of the scientific or 
technical quality of research or development, conducted by experts who 
are chosen for their knowledge of scientific and technical fields 
relevant to the evaluation and who--
        (1) in the case of the review of a program activity, do not 
    derive long-term support from the program activity; or
        (2) in the case of the review of a project proposal, are not 
    seeking funds in competition with the proposal.]
    [Sec. 431. Insurance; Indemnification; Liability. (a) In General.--
The Administrator may provide liability insurance for, or 
indemnification to, the developer of an experimental aerospace vehicle 
developed or used in execution of an agreement between the 
Administration and the developer.
    (b) Terms and Conditions.--
        (1) In general.--Except as otherwise provided in this section, 
    the insurance and indemnification provided by the Administration 
    under subsection (a) to a developer shall be provided on the same 
    terms and conditions as insurance and indemnification is provided by 
    the Administration under section 308 of the National Aeronautics and 
    Space Act of 1958 (42 U.S.C. 2458b) to the user of a space vehicle.
        (2) Insurance.--
            (A) In general.--A developer shall obtain liability 
        insurance or demonstrate financial responsibility in amounts to 
        compensate for the maximum probable loss from claims by--
                (i) a third party for death, bodily injury, or property 
            damage, or loss resulting from an activity carried out in 
            connection with the development or use of an experimental 
            aerospace vehicle; and
                (ii) the United States Government for damage or loss to 
            Government property resulting from such an activity.
            (B) Maximum required.--The Administrator shall determine the 
        amount of insurance required, but, except as provided in 
        subparagraph (C), that amount shall not be greater than the 
        amount required under section 70112(a)(3) of title 49, United 
        States Code, for a launch. The Administrator shall publish 
        notice of the Administrator's determination and the applicable 
        amount or amounts in the Federal Register within 10 days after 
        making the determination.
            (C) Increase in dollar amounts.--The Administrator may 
        increase the dollar amounts set forth in section 70112(a)(3)(A) 
        of title 49, United States Code, for the purpose of applying 
        that section under this section to a developer after 
        consultation with the Comptroller General and such experts and 
        consultants as may be appropriate, and after publishing notice 
        of the increase in the Federal Register not less than 180 days 
        before the increase goes into effect. The Administrator shall 
        make available for public inspection, not later than the date of 
        publication of such notice, a complete record of any 
        correspondence received by the Administration, and a transcript 
        of any meetings in which the Administration participated, 
        regarding the proposed increase.
            (D) Safety review required before administrator provides 
        insurance.--The Administrator may not provide liability 
        insurance or indemnification under subsection (a) unless the 
        developer establishes to the satisfaction of the Administrator 
        that appropriate safety procedures and practices are being 
        followed in the development of the experimental aerospace 
        vehicle.
        (3) No indemnification without cross-waiver.--Notwithstanding 
    subsection (a), the Administrator may not indemnify a developer of 
    an experimental aerospace vehicle under this section unless there is 
    an agreement between the Administration and the developer described 
    in subsection (c).
        (4) Application of certain procedures.--If the Administrator 
    requests additional appropriations to make payments under this 
    section, like the payments that may be made under section 308(b) of 
    the National Aeronautics and Space Act of 1958 (42 U.S.C. 2458b(b)), 
    then the request for those appropriations shall be made in 
    accordance with the procedures established by subsections (d) and 
    (e) of section 70113 of title 49, United States Code.
    (c) Cross-Waivers.--
        (1) Administrator authorized to waive.--The Administrator, on 
    behalf of the United States, and its departments, agencies, and 
    related entities, may reciprocally waive claims with a developer and 
    with the related entities of that developer under which each party 
    to the waiver agrees to be responsible, and agrees to ensure that 
    its own related entities are responsible, for damage or loss to its 
    property for which it is responsible, or for losses resulting from 
    any injury or death sustained by its own employees or agents, as a 
    result of activities connected to the agreement or use of the 
    experimental aerospace vehicle.
        (2) Limitations.--
            (A) Claims.--A reciprocal waiver under paragraph (1) may not 
        preclude a claim by any natural person (including, but not 
        limited to, a natural person who is an employee of the United 
        States, the developer, or the developer's subcontractors) or 
        that natural person's estate, survivors, or subrogees for injury 
        or death, except with respect to a subrogee that is a party to 
        the waiver or has otherwise agreed to be bound by the terms of 
        the waiver.
            (B) Liability for negligence.--A reciprocal waiver under 
        paragraph (1) may not absolve any party of liability to any 
        natural person (including, but not limited to, a natural person 
        who is an employee of the United States, the developer, or the 
        developer's subcontractors) or such a natural person's estate, 
        survivors, or subrogees for negligence, except with respect to a 
        subrogee that is a party to the waiver or has otherwise agreed 
        to be bound by the terms of the waiver.
            (C) Indemnification for damages.--A reciprocal waiver under 
        paragraph (1) may not be used as the basis of a claim by the 
        Administration or the developer for indemnification against the 
        other for damages paid to a natural person, or that natural 
        person's estate, survivors, or subrogees, for injury or death 
        sustained by that natural person as a result of activities 
        connected to the agreement or use of the experimental aerospace 
        vehicle.
        (3) Effect on previous waivers.--Subsection (c) applies to any 
    waiver of claims entered into by the Administration without regard 
    to whether it was entered into before, on, or after the date of the 
    enactment of this Act.
    (d) Definitions.--In this section:
        (1) Administration.--The term ``Administration'' means the 
    National Aeronautics and Space Administration.
        (2) Administrator.--The term ``Administrator'' means the 
    Administrator of the National Aeronautics and Space Administration.
        (3) Common terms.--Any term used in this section that is defined 
    in the National Aeronautics and Space Act of 1958 (42 U.S.C. 2451 et 
    seq.) has the same meaning in this section as when it is used in 
    that Act.
        (4) Developer.--The term ``developer'' means a United States 
    person (other than a natural person) who--
            (A) is a party to an agreement that was in effect before the 
        date of the enactment of this Act with the Administration for 
        the purpose of developing new technology for an experimental 
        aerospace vehicle;
            (B) owns or provides property to be flown or situated on 
        that vehicle; or
            (C) employs a natural person to be flown on that vehicle.
        (5) Experimental aerospace vehicle.--The term ``experimental 
    aerospace vehicle'' means an object intended to be flown in, or 
    launched into, suborbital flight for the purpose of demonstrating 
    technologies necessary for a reusable launch vehicle, developed 
    under an agreement between the Administration and a developer that 
    was in effect before the date of the enactment of this Act.
        (6) Related entity.--The term ``related entity'' includes a 
    contractor or subcontractor at any tier, a supplier, a grantee, and 
    an investigator or detailee.
    (e) Relationship to Other Laws.--
        (1) Section 308 of national aeronautics and space act of 1958.--
    This section does not apply to any object, transaction, or operation 
    to which section 308 of the National Aeronautics and Space Act of 
    1958 (42 U.S.C. 2458b) applies.
        (2) Chapter 701 of title 49, united states code.--The 
    Administrator may not provide indemnification to a developer under 
    this section for launches subject to license under section 
    70117(g)(1) of title 49, United States Code.
    (f ) Termination.--
        (1) In general.--The provisions of this section shall terminate 
    on December 31, 2002, except that the Administrator may extend the 
    termination date to a date not later than September 30, 2005, if the 
    Administrator determines that such an extension is necessary to 
    cover the operation of an experimental aerospace vehicle.
        (2) Effect of termination on agreements.--The termination of 
    this section does not terminate or otherwise affect a cross-waiver 
    agreement, insurance agreement, indemnification agreement, or

[[Page 898]]

    any other agreement entered into under this section except as may be 
    provided in that agreement.]
    [Sec. 432. Vietnam Veterans Allotment. The Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.) is amended by adding at the end:

     ``OPEN SEASON FOR CERTAIN ALASKA NATIVE VETERANS FOR ALLOTMENTS

    ``Sec. 41. (a) In General.--(1) During the eighteen month period 
following promulgation of implementing rules pursuant to subsection (e), 
a person described in subsection (b) shall be eligible for an allotment 
of not more than two parcels of federal land totaling 160 acres or less 
under the Act of May 17, 1906 (chapter 2469; 34 Stat. 197), as such Act 
was in effect before December 18, 1971.
    ``(2) Allotments may be selected only from lands that were vacant, 
unappropriated, and unreserved on the date when the person eligible for 
the allotment first used and occupied those lands.
    ``(3) The Secretary may not convey allotments containing any of the 
following--
        ``(A) lands upon which a native or non-native campsite is 
    located, except for a campsite used primarily by the person 
    selecting the allotment;
        ``(B) lands selected by, but not conveyed to, the State of 
    Alaska pursuant to the Alaska Statehood Act or any other provision 
    of law;
        ``(C) lands selected by, but not conveyed to, a Village or 
    Regional Corporation;
        ``(D) lands designated as wilderness by statute;
        ``(E) acquired lands;
        ``(F) lands containing a building, permanent structure, or other 
    development owned or controlled by the United States, another unit 
    of government, or a person other than the person selecting the 
    allotment;
        ``(G) lands withdrawn or reserved for national defense purposes 
    other than National Petroleum Reserve-Alaska;
        ``(H) National Forest Lands; and
        ``(I) lands selected or claimed, but not conveyed, under a 
    public land law, including but not limited to the following:
            ``(1) Lands within a recorded mining claim.
            ``(2) Home sites.
            ``(3) Trade and Manufacturing sites.
            ``(4) Reindeer sites and Reindeer headquarters sites.
            ``(5) Cemetery sites.
    ``(4) A person who qualifies for an allotment on lands prohibited 
from conveyance by a provision of subsection (a)(3) may select an 
alternative allotment from the following lands located within the 
geographic boundaries of the same Regional Corporation as the excluded 
allotment--
        ``(A) lands withdrawn pursuant to section 11(a)(1) of this Act 
    which were not selected, or were relinquished after selection;
        ``(B) lands contiguous to the outer boundary of lands withdrawn 
    pursuant to section 11(a)(1)(C) of this Act, except lands excluded 
    from selection by a provision of subsection (a)(3) and lands within 
    a National Park; and
        ``(C) vacant, unappropriated and unreserved lands.
    ``(5) After consultation with a person entitled to an allotment 
within a Conservation System Unit, the Secretary may convey alternative 
lands of equal acreage, including lands within a Conservation System 
Unit, to that person if the Secretary determines that the allotment 
would be incompatible with a purpose for which the Conservation System 
Unit was established.
    ``(6) All conveyances under this section shall--
        ``(A) be subject to valid existing rights, including any right 
    of the United States to income derived, directly or indirectly, from 
    a lease, license, permit, right-of-way or easement; and
        ``(B) reserve to the United States deposits of oil, gas and 
    coal, together with the right to explore, mine, and remove these 
    minerals, on lands which the Secretary determines to be 
    prospectively valuable for development.
    ``(b) Eligible Person.--(1) A person is eligible to select an 
allotment under this section if that person--
        ``(A) would have been eligible for an allotment under the Act of 
    May 17, 1906 (chapter 2469; 34 Stat. 197), as that Act was in effect 
    before December 18, 1971; and
        ``(B) is a veteran who served during the period between January 
    1, 1969 and December 31, 1971 and--
            ``(i) served at least 6 months between January 1, 1969 and 
        June 2, 1971; or
            ``(ii) enlisted or was drafted into military service after 
        June 2, 1971 but before December 3, 1971.
    ``(2) The personal representative of the estate of a decedent who 
was eligible under subsection (b)(1) may, for the benefit of the heirs, 
select an allotment if, during the period specified in subsection 
(b)(1)(B), the decedent--
        ``(A) was killed in action;
        ``(B) was wounded in action and subsequently died as a direct 
    consequence of that wound, as determined by the Department of 
    Veterans Affairs; or
        ``(C) died while a prisoner of war.
    ``(3) No person who received an allotment or has a pending allotment 
under the Act of May 17, 1906 may receive an allotment under this 
section.
    ``(c) Study and Report.--(1) The Secretary of the Interior shall 
conduct a study to identify and assess the circumstances of veterans of 
the Vietnam era who--
        ``(A) served during a period other than that specified in 
    subsection (b)(1)(B);
        ``(B) were eligible for an allotment under the Act of May 17, 
    1906; and
        ``(C) did not apply for an allotment under that Act.
    ``(2) The Secretary shall, within one year of the enactment of this 
section, issue a written report on the study, including findings and 
recommendations, to the Committee on Appropriations and the Committee on 
Energy and Natural Resources in the Senate and the Committee on 
Appropriations and the Committee on Resources in the House of 
Representatives.
    ``(d) Definitions.--For the purposes of this section, the terms 
`veteran' and `Vietnam era' have the meanings given those terms by 
paragraphs (2) and (29), respectively, of section 101 of title 38, 
United States Code.
    ``(e) Regulations.--No later than 18 months after enactment of this 
section, the Secretary of the Interior shall promulgate, after 
consultation with Alaska Natives groups, rules to carry out this 
section.''.]
    [Sec. 433. The Administrator of the National Aeronautics and Space 
Administration shall develop and deliver to the House and Senate 
Committees on Appropriations, no later than 60 days after the date of 
the enactment of this Act, a study of alternative approaches whereby 
NASA could contract with a Russian entity or entities for goods and 
services related to the International Space Station. The study shall 
evaluate, at a minimum, government-to-government, government-to-
industry, and industry-to-industry arrangements. The study shall 
evaluate the pros and cons of each possible approach, addressing the 
following requirements: (1) ensure that NASA receives value for each 
dollar spent; (2) ensure that the funds provided can be audited; (3) 
define appropriate milestones; and, (4) adhere to all relevant 
technology transfer and export control laws.]
    [Sec. 434. The National Aeronautics and Space Administration Lewis 
Research Center in Cleveland, Ohio, shall be redesignated as the 
``National Aeronautics and Space Administration John H. Glenn Research 
Center at Lewis Field''. Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the National 
Aeronautics and Space Administration Lewis Research Center in Ohio shall 
be deemed to be a reference to the ``National Aeronautics and Space 
Administration John H. Glenn Research Center at Lewis Field''.]
    [Sec. 435. The proposed Amendments to Accounting for Property, 
Plant, and Equipment (February 1998) (Amending Statements of Federal 
Financial Accounting Standards Nos. 6 and 8, ``Accounting for Property, 
Plant, and Equipment'' and ``Supplementary Stewardship Reporting'') may 
be adopted without the prior notification and waiting period required by 
section 307 of the Chief Financial Officers Act of 1990 (Public Law 101-
576).] (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1999.)
    [Sec. 121. In addition to amounts provided in the conference report 
accompanying H.R. 4194 (H. Rept. 105-769), the following funds are 
hereby appropriated: $10,000,000 for ``Housing opportunities for persons 
with AIDS'', to remain available until expended; $45,000,000 to the 
Secretary of Housing and Urban Development for ``Urban Empowerment 
Zones'' for grants in connection with a second round of the empowerment 
zones program in urban areas, designated by the Secretary of Housing and 
Urban Development in fiscal year 1999 pursuant to the Taxpayer Relief 
Act of 1997, including $3,000,000 for each empowerment zone for use in 
conjunction with economic

[[Page 899]]

development activities consistent with the strategic plan of each 
empowerment zone, to remain available until expended; $20,000,000 for 
``State and tribal assistance grants'' for a grant for construction and 
related activities for wastewater treatment for Boston, Massachusetts, 
to remain available until expended; $10,000,000 for ``National and 
community service programs operating expenses'' for grants under the 
National Service Trust program authorized under subtitle C of title I of 
the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.) 
(relating to activities including the AmeriCorps program), to remain 
available until September 30, 2000: Provided, That none of the funds 
provided herein for ``National and community service programs operating 
expenses'' may be used to administer, reimburse, or support any national 
service program authorized under section 121(d)(2) of the aforementioned 
Act; $10,000,000 for ``Science and technology'', for research associated 
with the Climate Change Technology Initiative, to remain available until 
September 30, 2000: Provided further, That the obligated balance of such 
$10,000,000 shall remain available through September 30, 2007 for 
liquidating obligations made in fiscal years 1999 and 2000; and 
$15,000,000 for ``Community development financial institutions fund 
program account'', to remain available until September 30, 2000.
    Of the amount appropriated in H.R. 4194, the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999, under the heading ``Community development 
block grants'', $4,750,000 shall be available as a grant to Cayuga 
County, New York, to repair and rehabilitate the seawalls at the Owasco 
Lake outlet, and $250,000 shall be available as a grant to Jackson, 
Michigan, to remove a portion of the Grand River culvert in Jackson, 
Michigan.]
    [Sec. 126. If the President makes the appointment to the position of 
Under Secretary for Health of the Department of Veterans Affairs 
authorized by section 907 of the Veterans Programs Enhancement Act of 
1998, the individual appointed shall receive the pay and allowances 
authorized for that position as if the appointment had been made on 
September 29, 1998, except that the amount of such pay and allowances 
that is attributable to the period beginning on September 29, 1998, and 
ending on the day before the date of that appointment shall be reduced 
by any amount paid that individual by the United States for personal 
services performed during that period.] (Omnibus Consolidated and 
Emergency Supplemental Appropriations Act, 1999, as included in Public 
Law 105-277, Division A.)