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


[[Page 871]]

 
                     DEPARTMENT OF VETERANS AFFAIRS

    The 2001 budget provides $22,363 million in discretionary funding 
for veterans health, benefits, and other services, including $22,971 
million in gross discretionary budget authority and $608 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 2001, performance plan highlights approximately 25 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.

                                [F-dash]


 
                     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] $16,000,000 to fund cost comparison 
studies as referred to in 38 U.S.C. 8110(a)(5), [$19,006,000,000] 
$20,281,587,000, plus reimbursements: Provided, That of the funds made 
available under this heading, $900,000,000 is for the equipment and land 
and structures object classifications only, which amount shall not 
become available for obligation until August 1, [2000] 2001, and shall 
remain available until September 30, [2001] 2002: Provided further, That 
of the funds made available under this heading, not to exceed 
$900,000,000 shall be available until September 30, [2001: Provided 
further, That of the funds made available under this heading, not to 
exceed $27,907,000 may be transferred to and merged with the 
appropriation for ``General operating expenses''] 2002: Provided 
further, That the department shall conduct by contract a program of 
recovery audits for the fee basis and other medical services contracts 
with respect to payments for hospital care; and, notwithstanding 31 
U.S.C. 3302(b), amounts collected, by setoff or otherwise, as the result 
of such audits shall be available, without fiscal year limitation, for 
the purposes for which funds are appropriated under this heading and the 
purposes of paying a contractor a percent of the amount collected as a 
result of an audit carried out by the contractor: Provided further, That 
all amounts so collected under the preceding proviso with respect to a 
designated health care region (as that term is defined in 38 U.S.C. 
1729A(d)(2)) shall be allocated, net of payments to the contractor, to 
that region.
    [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, 
2000.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          54          51          51
    Receipts:
02.01 Medical care collections..........         574         600
02.08 MCCF first party collections......                                 203
02.09 MCCF third party collections......                                 290
02.10 DOD tricare reimbursement.........                                 115
                                           ---------   ---------  ----------
02.99   Total receipts..................         574         600         608
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         628         651         659
    Appropriation:
05.01 Medical care......................        -577        -600        -608
                                           ---------   ---------  ----------
07.99 Total balance, end of year........          51          51          51
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01       Acute hospital care.........       4,587       4,963       5,173
00.02       Rehabilitative care.........         359         375         392
00.03       Psychiatric care............       1,129       1,124       1,134
00.04       Nursing home care...........       1,727       1,884       1,976
00.05       Subacute care...............         370         361         357
00.06       Residential care............         337         375         395
00.07       Outpatient care.............       7,499       8,600       9,557
00.08       Miscellaneous benefits and 
              services..................         908         956         966
00.09     CHAMPVA.......................         118         128         139
                                           ---------   ---------  ----------
00.91       Total operating expenses....      17,034      18,766      20,089
        Capital investment:
          Provision of veterans health 
              care:
01.01       Acute hospital care.........         254         217         233
01.02       Rehabilitative care.........          19          16          18
01.03       Psychiatric care............          50          49          51
01.04       Nursing home care...........          52          82          89
01.05       Subacute care...............          15          16          16
01.06       Residential care............          14          16          18
01.07       Outpatient care.............         310         375         431
01.08       Miscellaneous benefits and 
              services..................          25          42          44
                                           ---------   ---------  ----------
01.91       Total capital investment....         739         813         900
                                           ---------   ---------  ----------
01.92     Total direct program..........      17,773      19,579      20,989
09.01 Reimbursable program..............         103         117         126
                                           ---------   ---------  ----------
10.00   Total new obligations...........      17,876      19,696      21,115
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       1,039       1,082       1,005
22.00 New budget authority (gross)......      17,923      19,615      21,016

[[Page 872]]

22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      18,962      20,700      22,024
23.95 Total new obligations.............     -17,876     -19,696     -21,115
23.98 Unobligated balance expiring or 
        withdrawn.......................          -3
24.40 Unobligated balance available, end 
        of year.........................       1,082       1,005         909
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................      17,306      19,006      20,282
        Appropriation (special fund, 
            indefinite):
40.25     Appropriation (special fund, 
            indefinite).................         577         600
40.25     Appropriation (special fund, 
            indefinite).................                                 608
40.75   Reduction pursuant to P.L. 106-
          51............................         -35
40.76   Reduction pursuant to P.L. 106-
          113...........................                     -80
41.00   Transferred to other accounts...         -28         -28
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............      17,820      19,498      20,890
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         103         117         126
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      17,923      19,615      21,016
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       2,734       2,572       3,712
73.10 Total new obligations.............      17,876      19,696      21,115
73.20 Total outlays (gross).............     -17,950     -18,553     -21,193
73.40 Adjustments in expired accounts 
        (net)...........................         -88
73.45 Adjustments in unexpired accounts.                      -3          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       2,572       3,712       3,631
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................      15,018      15,902      17,233
86.93 Outlays from discretionary 
        balances........................       2,932       2,651       3,688
86.97 Outlays from new mandatory 
        authority.......................                                 272
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      17,950      18,553      21,193
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -51         -58         -66
88.40     Non-Federal sources...........         -52         -59         -60
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -103        -117        -126
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      17,820      19,498      20,890
90.00 Outlays...........................      17,846      18,436      21,067
---------------------------------------------------------------------------

    For 2001, the budget provides a total VA Medical Care program level 
of $20,890 million, an increase of $1,392 million over the 2000 level. 
This includes $20,282 million in appropriated budget authority and $608 
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.

    The 2001 budget includes a proposal to consolidate the Health 
Services Improvement Fund and the Extended Care Revolving Fund with the 
Medical Care Collections Fund. The Health Services Improvement Fund was 
established by the Veterans Millennium Health Care and Benefits Act, 
P.L. 106-117. This fund serves as a depository for amounts received or 
collected under the following areas as authorized by title 38, U.S.C. 
1729B: (1) reimbursement from DoD for Tricare-eligible military 
retirees; (2) enhanced-use lease proceeds; and (3) receipts attributable 
to increases in medication copayments. Amounts in the fund are intended 
to be used to: (1) furnish medical care services and (2) for VA expenses 
for identification, billing, auditing and collections of amounts owed 
the Government. These funds are available without fiscal year 
limitation.

    The Extended Care Revolving Fund was also established by the 
Veterans Millennium Health Care and Benefits Act, P.L. 106-117. This 
fund receives per diems and co-pays from certain patients receiving 
extended care services as authorized in title 38, U.S.C. 1710B. Amounts 
deposited in the fund are used to provide extended care services. The 
proposal would also return one half of the first $700,000,000 
($350,000,000), in collections received by the consolidated fund to the 
Treasury.

    The 2001 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 2001 are estimated to increase 
    by $227 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:

                                     1999 actual  2000 est.   2001 est.
  Patients treated..................     434,468     425,500     411,640
  Average daily census..............       8,371       7,484       6,725
  Average employment................      52,526      49,322      46,359

        Rehabilitative care.--An increase of $20 million in 2001 is 
    estimated for the provision of rehabilitative care, including spinal 
    cord injury care.
        Estimated operating levels are:

                                     1999 actual  2000 est.   2001 est.
  Patients treated..................      16,274      15,470      14,656
  Average daily census..............       1,259       1,156       1,052
  Average employment................       4,848       4,700       4,465

        Psychiatric care.--An increase of $12 million is estimated in 
    2001 for the inpatient care of veterans with problems related to 
    mental illness, including alcohol and drug problems.
        Estimated operating levels are:

                                     1999 actual  2000 est.   2001 est.
  Patients treated..................     111,726     100,000      86,200
  Average daily census..............       5,144       4,269       3,586
  Average employment................      16,447      15,000      13,800

        Nursing home care.--In 2001, an increase of $99 million is 
    estimated for the care of residents in VA nursing homes, contract 
    nursing homes and State nursing homes.
        Estimated operating levels are:

                                     1999 actual  2000 est.   2001 est.
  Patients treated..................      89,217      93,030      98,929
  Average daily census..............      32,204      32,552      32,769
  Average employment................      21,018      21,762      22,539

        Noninstitutional extended care.--Included in estimates above in 
    2001 is an increase of $278 million estimated for noninstitutional 
    extended care programs such as adult day care; home based primary 
    care, skilled nursing and rehabilitation care; and home health aids.
        Estimated operating levels are:
                                     1999 actual  2000 est.   2001 est.
Patients treated....................
Average daily census................      21,371      26,905      53,240
Average employment..................
        Subacute care.--A decrease of $4 million is estimated in 2001 
    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.
        Estimated operating levels are:


[[Page 873]]


                                     1999 actual  2000 est.   2001 est.
Patients treated....................      50,332      54,000      59,268
Average daily census................       2,562       2,254       2,006
Average employment..................       5,697       5,298       4,953

        Residential care.--An increase of $22 million is estimated in 
    2001 for the care of veterans in locations other than their own 
    homes, such as residential rehabilitation and domiciliary care 
    programs.
        Estimated operating levels are:

                                     1999 actual  2000 est.   2001 est.
Patients treated....................      49,774      50,008      50,490
Average daily census................      10,496      10,386      10,231
Average employment..................       4,696       4,784       4,890

        Outpatient care.--An increase of $1,020 million is estimated in 
    2001 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.
        Estimated operating levels are:

              NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS

                                     1999 actual  2000 est.   2001 est.
  Medical visits (in thousands):
  Staff visits......................      35,236      37,700      39,000
  Fee visits........................       1,692       1,861       2,010
  Readjustment counseling...........         871         827         827
                                    ------------------------------------
        Total.......................      37,799      40,388      41,837
                                    ====================================
  Dental:
    Staff:
      Examinations..................     284,425     287,000     287,000
      Treatments....................     155,336     159,000     159,000
                                    ------------------------------------
        Total.......................     439,761     446,000     446,000
                                    ====================================
    Fee: Cases completed............      11,648      14,000      14,000
                                    ====================================
  Average employment................      69,503      71,486      73,883
                                    ====================================

        Miscellaneous benefits and services.--An increase of $12 million 
    is estimated in 2001 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.

                                     1999 actual  2000 est.   2001 est.
  Average employment................       7,737       7,969       8,128

        Civilian health and medical program of the Department of 
    Veterans Affairs (CHAMPVA).--An increase of $11 million is estimated 
    in 2001 for private hospital and outpatient care for dependents and 
    survivors of certain veterans.
        Estimated operating levels are:

                                     1999 actual  2000 est.   2001 est.
  Average daily hospital census.....         140         140         140
  Outpatient (in thousands).........       1,076       1,178       1,290
  Average employment................         189         189         189

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       6,709       6,964       7,338
11.3      Other than full-time permanent         884         918         967
11.5      Other personnel compensation..         798         828         873
                                           ---------   ---------  ----------
11.9        Total personnel compensation       8,391       8,710       9,178
12.1    Civilian personnel benefits.....       2,043       2,183       2,235
13.0    Benefits for former personnel...           9         132          10
        Travel and transportation of 
            persons:
21.0      Employee travel...............          46          55          55
21.0      Beneficiary travel............         115         120         120
21.0      Interagency motor pool 
            payments....................          15          16          16
21.0      All other.....................          32          32          32
22.0    Transportation of things........          20          20          20
23.1    Rental payments to GSA..........          11          12          13
23.2    Rental payments to others.......          61          65          68
23.3    Communications, utilities, and 
          miscellaneous charges.........         485         533         531
24.0    Printing and reproduction.......          10          10          10
25.2    Other contractual services......       1,476       1,771       2,160
        Medical care:
25.6      Outpatient dental fees........          11          14          14
25.6      Medical and nursing fees......         319         363         380
25.6      Community nursing homes.......         205         229         239
25.6      Contract hospitalization......         189         217         225
25.6      Civilian Health and Medical 
            Program of the Department of 
            Veterans Affairs............         106         116         126
        Supplies and materials:
26.0      Supplies and materials........       3,123       3,733       4,196
26.0      Provisions....................          76          76          79
31.0    Equipment.......................         486         550         626
32.0    Land and structures.............         253         263         274
        Grants, subsidies, and 
            contributions:
41.0      Grants, subsidies, and 
            contributions...............         273         325         347
41.0      Grants to private 
            organizations...............          16          32          33
43.0    Interest and dividends..........           2           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      17,773      19,579      20,989
99.0  Reimbursable obligations..........         103         117         126
                                           ---------   ---------  ----------
99.9    Total new obligations...........      17,876      19,696      21,115
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......     181,605     179,382     178,060
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       1,056       1,128       1,146
---------------------------------------------------------------------------

                                [F-dash]

                     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, [2001, $321,000,000] 2002, 
$321,000,000, plus reimbursements. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
00.01     Medical research..............         167         185         175
00.02     Rehabilitation research.......          24          27          27
00.03     Health services research......          39          43          43
00.04     Cooperative studies research..          52          58          58
                                           ---------   ---------  ----------
00.91       Total operating expenses....         282         313         303
        Capital investment:
01.01     Medical research..............          17          14          13
01.02     Rehabilitation research.......           3           2           2
01.03     Health services research......           2           2           1
01.04     Cooperative studies research..           3           3           2
                                           ---------   ---------  ----------
01.91       Total capital investment....          25          21          18
                                           ---------   ---------  ----------
01.92     Total direct program..........         307         334         321
09.01 Reimbursable program..............          41          33          40
                                           ---------   ---------  ----------
10.00   Total new obligations...........         348         367         361
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          19          28          15
22.00 New budget authority (gross)......         357         354         361
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         376         382         376
23.95 Total new obligations.............        -348        -367        -361
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance available, end 
        of year.........................          28          15          15
----------------------------------------------------------------------------

[[Page 874]]



    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         316         321         321
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          41          33          40
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         357         354         361
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         122         110         132
73.10 Total new obligations.............         348         367         361
73.20 Total outlays (gross).............        -358        -345        -366
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         110         132         125
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         249         261         275
86.93 Outlays from discretionary 
        balances........................         109          83          91
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         358         345         366
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -41         -33         -40
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         316         321         321
90.00 Outlays...........................         316         312         326
---------------------------------------------------------------------------

    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]

                                     1999 actual  2000 est.   2001 est.
Medical and prosthetic research 
appropriation.......................         316         321         321
Medical care appropriation..........         326         331         331
Federal grants (NIH)................         337         343         348
Other grants (voluntary agencies, 
private proprietary)................         143         145         147
                                    ------------------------------------
      Total budgetary resources.....       1,122       1,140       1,147
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          41          44          43
11.3      Other than full-time permanent          76          89          86
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         121         137         133
12.1    Civilian personnel benefits.....          29          35          34
21.0    Employee travel.................           3           3           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.5    Research and development 
          contracts.....................         101         104         100
26.0    Supplies and materials..........          32          34          31
31.0    Equipment.......................          20          20          20
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         307         334         321
99.0  Reimbursable obligations..........          41          33          40
                                           ---------   ---------  ----------
99.9    Total new obligations...........         348         367         361
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,486       2,707       2,552
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         488         283         331
---------------------------------------------------------------------------

                                [F-dash]

       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 
capital policy activities, [$59,703,000] $64,884,000 plus 
reimbursements: Provided, That [project] technical and consulting 
services offered by the Facilities Management [Service Delivery Office] 
Field Service, 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] 2001. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
2000.)

[[Page 875]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: Integrated 
        health care system 
        administration..................          58          59          64
00.02 Capital investment................           5           1           1
                                           ---------   ---------  ----------
01.00   Total direct program............          63          60          65
09.01 Reimbursable program..............                       7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          63          67          72
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          63          67          72
23.95 Total new obligations.............         -63         -67         -72
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          63          60          65
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       7           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          63          67          72
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          12          13          14
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                                   1
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          12          13          15
73.10 Total new obligations.............          63          67          72
73.20 Total outlays (gross).............         -61         -64         -74
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          13          14          12
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                       1           1
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          13          15          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          52          58          65
86.93 Outlays from discretionary 
        balances........................           9           6           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          61          64          74
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................          63          60          65
90.00 Outlays...........................          61          57          67
---------------------------------------------------------------------------

    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 2001, 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          34          37          43
11.3      Other than full-time permanent           3           1           1
11.5      Other personnel compensation..           2           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation          39          41          47
12.1    Civilian personnel benefits.....           7           7           8
21.0    Travel and transportation of 
          persons: employee travel......           1           1           1
23.1    Rental payments to GSA..........           5           5           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           4           3           1
26.0    Supplies and materials..........           1           1
31.0    Equipment.......................           5           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          63          60          65
99.0  Reimbursable obligations..........                       7           7
                                           ---------   ---------  ----------
99.9    Total new obligations...........          63          67          72
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         488         484         527
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                      57          57
---------------------------------------------------------------------------

                                [F-dash]

                 Health Professional Scholarship Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0163-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start 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 1999 through 
2001.

                                [F-dash]

                    Medical Care Cost Recovery Fund 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           1
----------------------------------------------------------------------------

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

[[Page 876]]

and services during any fiscal year, and (2) for VA expenses for 
identification, billing, auditing and collections of amounts owed the 
government.

                                [F-dash]

Public enterprise funds:

                    Medical Facilities Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           5           4
22.00 New budget authority (gross)......           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           8           8           7
23.95 Total new obligations.............          -3          -4          -4
24.40 Unobligated balance available, end 
        of year.........................           5           4           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           3           3           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       1           1
73.10 Total new obligations.............           3           4           4
73.20 Total outlays (gross).............          -3          -3          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

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

    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...........................                                   1
---------------------------------------------------------------------------

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
25.2  Other services....................                       1           1
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3           4           4
---------------------------------------------------------------------------

                                [F-dash]

                     Canteen Service Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating expenses...         129         132         134
09.02 Reimbursable direct operations....          85          89          88
09.10 Reimbursable capital investment: 
        Sales program: Purchase of 
        equipment and leasehold.........           5           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........         219         227         228
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          15          14          17
22.00 New budget authority (gross)......         218         228         229
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         233         242         246
23.95 Total new obligations.............        -219        -227        -228
24.40 Unobligated balance available, end 
        of year.........................          14          17          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         218         228         229
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          24          25          23
73.10 Total new obligations.............         219         227         228
73.20 Total outlays (gross).............        -218        -229        -231
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          25          23          20
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         215         225         226
86.98 Outlays from mandatory balances...           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         218         229         231
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1          -2          -2
88.40     Non-Federal sources...........        -217        -226        -227
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -218        -228        -229
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          38          37          42
92.02 Total investments, end of year: 
        U.S. securities: Par value......          37          42          40
---------------------------------------------------------------------------

    The Veterans Canteen Service was established to furnish, at 
reasonable prices, merchandise and services necessary for 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          38          37          38
11.3    Other than full-time permanent..          21          25          25
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          59          62          63
12.1  Civilian personnel benefits.......          15          15          15
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................           3           3           3
26.0  Supplies and materials............         135         139         139
31.0  Equipment.........................           5           6           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........         219         227         228
---------------------------------------------------------------------------

[[Page 877]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Total compensable workyears:
2001  Full-time equivalent employment...                   3,025       3,025
2011  Exempt Full-time equivalent 
        employment......................       3,010
---------------------------------------------------------------------------

                                [F-dash]

         Special Therapeutic and Rehabilitation Activities Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Contracts.........................          24          25          25
09.02 Education and training............           2           2           2
09.03 Operating expenses................          13          13          13
                                           ---------   ---------  ----------
10.00   Total new obligations...........          39          40          40
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          12          13          15
22.00 New budget authority (gross)......          40          41          42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          52          54          57
23.95 Total new obligations.............         -39         -40         -40
24.40 Unobligated balance available, end 
        of year.........................          13          15          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          40          41          42
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1           2           2
73.10 Total new obligations.............          39          40          40
73.20 Total outlays (gross).............         -38         -39         -40
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           2           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          38          39          40
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -40         -41         -42
----------------------------------------------------------------------------

    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    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          41             40            41             42
0102  Expense...........................         -39            -38           -39            -40
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............           2              2             2              2
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          13             15            17             20
        Investments in US securities:
1106      Receivables, net..............           2              2             1              1
1206  Non-Federal assets: Receivables, 
        net.............................           1              2             2              2
1803  Other Federal assets: Property, 
        plant and equipment, net........           1              1             1              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          17             20            21             24
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           1
2105    Other...........................                          1             1              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           1              1             1              1
    NET POSITION:
3300  Cumulative results of operations..          16             17            20             23
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          16             17            20             23
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          17             18            21             24
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................          36          37          37
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          39          40          40
---------------------------------------------------------------------------

                                [F-dash]

                  Medical Center Research Organizations

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Operating expenses................          94          96          99
09.02 Capital investments...............          11          11          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........         105         107         111
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          18          18          18
22.00 New budget authority (gross)......         105         108         110
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         123         126         128
23.95 Total new obligations.............        -105        -107        -111
24.40 Unobligated balance available, end 
        of year.........................          18          18          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         105         108         110
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............         105         107         111
73.20 Total outlays (gross).............        -105        -108        -110
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         105         108         110
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -20         -21         -21
88.40     Non-Federal sources...........         -85         -87         -89
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -105        -108        -110
----------------------------------------------------------------------------

    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 Depart

[[Page 878]]

ment 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................          66          67          68
26.0  Supplies and materials............          27          28          30
31.0  Equipment.........................          11          11          12
                                           ---------   ---------  ----------
99.9    Total new obligations...........         105         107         111
---------------------------------------------------------------------------

                                [F-dash]

                               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, 2000.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............           2           2           1
    Receipts:
02.01 General post fund, national homes, 
        deposits........................          30          30          30
02.02 General post fund, national homes, 
        interest on investments.........           3           3           3
                                           ---------   ---------  ----------
02.99   Total receipts..................          33          33          33
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          35          35          34
    Appropriation:
05.01 General post fund, national homes.         -33         -34         -35
                                           ---------   ---------  ----------
07.99 Total balance, end of year........           2           1          -1
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Religious, recreational, and 
        entertainment activities........          28          28          29
00.02 Research activities...............           3           3           3
00.03 Therapeutic residence maintenance.           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          32          32          33
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          43          45          48
22.00 New budget authority (gross)......          33          34          35
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          76          79          83
23.95 Total new obligations.............         -32         -32         -33
24.40 Unobligated balance available, end 
        of year.........................          45          48          48
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................          33          34          35
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           7          10
73.10 Total new obligations.............          32          32          33
73.20 Total outlays (gross).............         -29         -29         -29
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           7          10          13
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................          33          34          35
90.00 Outlays...........................          29          29          29
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          45          51          46
92.02 Total investments, end of year: 
        U.S. securities: Par value......          51          46          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.

    Legislation will be proposed to eliminate this program which has had 
no utilization to date, and for which new programs have filled the need.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................          13          13          14
26.0  Supplies and materials............          13          13          13
31.0  Equipment.........................           3           3           3
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          32          32          33
---------------------------------------------------------------------------

                                [F-dash]


 
                    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,

[[Page 879]]

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), $21,568,364,000, to remain 
available until expended: Provided, That not to exceed $17,932,000 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, 2000.)

    Activities formerly included in this account are proposed to be 
financed by three separate appropriation accounts in 2001 and are 
presented below in the ``Compensation'', ``Pensions'', and ``Burial 
benefits and miscellaneous assistance'' accounts. Amounts for 1999, 
2000, and 2001 are shown on a comparable basis. The following table 
shows the distribution of the amounts (dollars in millions) appropriated 
in 1999 and 2000 and requested in 2001.

                                     1999 actual  2000 est.   2001 est.
Distribution of budget authority by 
    account:
  Compensation......................  18,663,234  18,375,028  19,567,055
  Pensions..........................   3,084,495   3,063,637   3,066,127
  Burial benefits...................     109,329     129,699     133,094
Distribution of outlays by account:
  Compensation......................  17,962,565  18,957,135  19,672,390
  Pensions..........................   3,075,728   3,054,451   3,065,127
  Burial benefits...................     109,329     129,699     133,094

                              Compensation

    For the payment of compensation benefits to or on behalf of veterans 
and a pilot program for disability examinations as authorized by law, 
$19,567,055,000, to remain available until expended, of which not to 
exceed $1,266,000 shall be reimbursed to ``General operating expenses'' 
for necessary expenses, as authorized by chapter 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.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.02     World War I...................           1           1
00.03     World War II..................       3,280       3,221       3,086
00.04     Korean conflict...............       1,231       1,261       1,267
00.05     Vietnam era...................       5,912       6,398       6,793
00.06     Peacetime service.............       3,036       3,250       3,430
00.07     Persian Gulf conflict.........       1,081       1,291       1,434
                                           ---------   ---------  ----------
00.91       Total veterans..............      14,541      15,422      16,010
        Survivors:
01.04     World War I...................          40          34          29
01.05     World War II..................       1,332       1,379       1,414
01.06     Korean conflict...............         412         424         433
01.07     Vietnam era...................       1,103       1,149       1,187
01.08     Peacetime service.............         450         453         449
01.09     Persian Gulf conflict.........          75          83          88
                                           ---------   ---------  ----------
01.91       Total survivors.............       3,412       3,522       3,600
02.01   Clothing allowance..............          41          40          40
                                           ---------   ---------  ----------
02.93     Total compensation............      17,994      18,984      19,650
      Children:

03.02   Vietnam era.....................          13           9          10
      Other expenses:

07.01   Payment to general operating 
          expense.......................           1           1           1
07.02   Medical exam pilot program......          17          26          28
                                           ---------   ---------  ----------
07.91   Total other expenses............          18          27          29
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................      18,025      19,020      19,689
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         274         769         122
22.00 New budget authority (gross)......      18,663      18,375      19,567
22.21 Unobligated balance transferred to 
        other accounts..................        -143
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      18,794      19,144      19,689
23.95 Total new obligations.............     -18,025     -19,020     -19,689
24.40 Unobligated balance available, end 
        of year.........................         769         122
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      18,663      18,375      19,567
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,347       1,410       1,474
73.10 Total new obligations.............      18,025      19,020      19,689
73.20 Total outlays (gross).............     -17,963     -18,957     -19,672
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,410       1,474       1,491
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      16,616      17,547      18,198
86.98 Outlays from mandatory balances...       1,347       1,410       1,474
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      17,963      18,957      19,672
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      18,663      18,375      19,567
90.00 Outlays...........................      17,963      18,957      19,672
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1999 actual  2000 est.   2001 est.
Enacted/requested:
  Budget Authority..................      18,663      18,375      19,567
  Outlays...........................      17,963      18,957      19,672
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 345
  Outlays...........................                                 311
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                   1,800      -1,795
  Outlays...........................                   1,800      -1,795
                                    ------------------------------------
Total:
  Budget Authority..................      18,663      20,175      18,117
  Outlays...........................      17,963      20,757      18,188
                                    ====================================

    This appropriation provides 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

                                     1999 actual  2000 est.   2001 est.
Veterans:
  Mexican border period.............           8           7           6
  World War I.......................         109          70          40
  World War II......................     558,252     522,560     485,762
  Korean conflict...................     176,605     172,900     169,100
  Vietnam era.......................     732,590     739,113     747,305
  Peacetime service.................     555,502     567,860     582,462
  Persian Gulf conflict.............     262,057     288,200     300,400
                                    ------------------------------------
      Total.........................   2,285,123   2,290,710   2,285,075
  Average payment per case, per year      $6,382      $6,750      $7,024
      Total obligations (in 
        millions)...................     $14,541     $15,421     $16,010
                                    ====================================
Children of Vietnam era veterans:
  Children..........................         844         864         864

[[Page 880]]

  Average payment per case, per year         $15         $11         $11
      Total obligations (in 
        millions)...................         $13          $9         $10
Chapter 18 Vocational 
    rehabilitations:
  Rehabilitations...................          18          29          29
  Average payment per case, per year        $628        $225        $225
      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          16
  Mexican border period.............           3           1           1
  World War I.......................       3,694       3,079       2,565
  World War II......................     116,979     115,258     113,426
  Korean conflict...................      36,601      36,563      36,549
  Vietnam era.......................      99,117     100,497     101,895
  Peacetime service.................      41,565      40,697      39,698
  Persian Gulf conflict.............       5,979       6,461       6,721
                                    ------------------------------------
      Total.........................     303,956     302,574     300,872
  Average payment per case, per year     $11,227     $11,641     $11,965
      Total obligations (in 
        millions)...................      $3,412      $3,522      $3,600
                                    ====================================
Clothing allowance:
  Number of veterans................      75,604      75,785      75,598
  Average payment per case, per year        $543        $528        $528
      Total obligations (in 
        millions)...................         $41         $40         $40
                                    ====================================

                                [F-dash]

                              Compensation

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-2-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.03     World War II..................                                  51
00.04     Korean conflict...............                                  21
00.05     Vietnam era...................                                 111
00.06     Peacetime service.............                                  57
00.07     Persian Gulf conflict.........                                  24
                                           ---------   ---------  ----------
00.91       Total veterans..............                                 264
        Survivors:
01.04     World War I...................                                   1
01.05     World War II..................                                  31
01.06     Korean conflict...............                                  10
01.07     Vietnam era...................                                  26
01.08     Peacetime service.............                                  10
01.09     Persian Gulf conflict.........                                   2
                                           ---------   ---------  ----------
01.91       Total survivors.............                                  80
02.01   Clothing allowance..............                                   1
                                           ---------   ---------  ----------
02.93     Total compensation............                                 345
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................                                 345
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 345
23.95 Total new obligations.............                                -345
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                 345
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 345
73.20 Total outlays (gross).............                                -311
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  34
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 311
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 345
90.00 Outlays...........................                                 311
---------------------------------------------------------------------------

    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, 2000, is expected to be 2.5 percent 
and cost $345 million in 2001.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0153-4-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.03     Benefits for Fillipino 
            veterans....................                                   5
00.04     Repeal delay of compensation 
            benefits....................                   1,800      -1,800
                                           ---------   ---------  ----------
02.93     Total compensation............                   1,800      -1,795
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................                   1,800      -1,795
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                   1,800      -1,795
23.95 Total new obligations.............                  -1,800       1,795
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                   1,800      -1,795
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                   1,800      -1,795
73.20 Total outlays (gross).............                  -1,800       1,795
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                   1,800      -1,795
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                   1,800      -1,795
90.00 Outlays...........................                   1,800      -1,795
---------------------------------------------------------------------------

                                [F-dash]

                              Compensation

                (Legislative proposal, subject to PAYGO)

    The Balanced Budget Act of 1997 requires VA to delay the issuing of 
October 2000 benefit payment from September 29, 2000 to October 2, 2000. 
Legislation will be proposed to repeal this delay.

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

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

                                [F-dash]

                                Pensions

    For the payment of pension benefits to or on behalf of veterans as 
authorized by law, $3,066,127,000, to remain available until expended; 
of which not to exceed $16,153,000 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.)


[[Page 881]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0154-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Pensions:
          Veterans:
04.01       Improved law................       2,282       2,299       2,330
04.02       Prior law...................          50          43          37
                                           ---------   ---------  ----------
04.91         Total veterans............       2,332       2,342       2,367
          Survivors:
05.01       Improved law................         645         623         608
05.02       Prior law...................          92          83          74
05.03       Old law.....................           1           1           1
                                           ---------   ---------  ----------
05.91         Total survivors...........         738         707         683
                                           ---------   ---------  ----------
06.93       Total pensions..............       3,070       3,049       3,050
        Other expenses:
07.02     Reimbursement to GOE and VHA..          15          14          16
                                           ---------   ---------  ----------
08.00     Total direct program..........       3,085       3,063       3,066
      Reimbursable program:

09.01   Minimum income for widows 
          program.......................                       4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,085       3,067       3,070
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,085       3,067       3,070
23.95 Total new obligations.............      -3,085      -3,067      -3,070
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       3,085       3,063       3,066
69.00 Offsetting collections (cash).....                       4           4
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,085       3,067       3,070
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         278         287         297
73.10 Total new obligations.............       3,085       3,067       3,070
73.20 Total outlays (gross).............      -3,076      -3,057      -3,065
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         287         297         302
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       2,798       2,770       2,769
86.98 Outlays from mandatory balances...         278         287         296
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,076       3,057       3,065
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -4          -4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,085       3,063       3,066
90.00 Outlays...........................       3,076       3,053       3,061
---------------------------------------------------------------------------

    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, 
2001, is expected to be 2.5 percent.

              AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                     1999 actual  2000 est.   2001 est.
Veterans:
  Improved law......................     352,233     346,349     340,553
  Prior law.........................      30,353      25,968      22,236
  Old law and service...............         372         318         271
                                    ------------------------------------
      Total.........................     382,958     372,635     363,060
  Average payment per case, per year 
    (in dollars)....................      $6,088      $6,286      $6,519
                                    ------------------------------------
      Total obligations (in 
        millions)...................      $2,332      $2,342      $2,367
                                    ====================================
Survivors:
  Improved law......................     189,921     184,550     180,094
  Prior law.........................      89,577      79,930      71,457
  Old law and service...............       1,952       1,621       1,347
                                    ------------------------------------
      Total.........................     281,450     266,101     252,898
  Average payment per case, per year      $2,622      $2,657      $2,701
                                    ------------------------------------
      Total obligations (in 
        millions)...................        $738        $707        $683
                                    ====================================
Minimum Income for Widows Program:
  Widows............................                     594         562
Average benefit per case, per year..                  $6,224      $6,372
                                    ------------------------------------
      Total obligations (in 
        millions)...................                      $4          $4
                                    ====================================
Vocational training:
  Trainees..........................           8           7           5
  Average benefit per year..........      $4,625      $2,857      $3,000
                                    ------------------------------------
      Total obligations (in 
        millions) 1......
                                    ====================================
    1 Amounts round to less than $1 million.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0154-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........       3,085       3,063       3,066
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                       4           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,085       3,067       3,070
---------------------------------------------------------------------------

    The Administration is proposing legislation which will extend a 
current legal provision due to expire in 2002 which authorizes VA access 
to certain Internal Revenue Service data for determining eligibility for 
veterans pension benefits.

                                [F-dash]

              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, $133,094,000, to 
remain available until expended. (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.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0155-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Burial benefits:

07.01   Burial allowances...............          35          35          35
07.02   Burial plots....................          11          11          12
07.03   Service-connected deaths........          13          13          13
07.04   Burial flags....................          12          12          13
07.05   Headstones and markers..........          24          34          34
07.06   Graveliners.....................           8           9           9
07.07   Pre-placed crypts...............           3          13          14
                                           ---------   ---------  ----------
07.91     Total burial benefits.........         106         127         130
08.04 Equal access to justice...........           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................         109         130         133
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         109         130         133

[[Page 882]]

23.95 Total new obligations.............        -109        -130        -133
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         109         130         133
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............         109         130         133
73.20 Total outlays (gross).............        -109        -130        -133
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         109         130         133
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         109         130         133
90.00 Outlays...........................         109         130         133
---------------------------------------------------------------------------

    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

                                     1999 actual  2000 est.   2001 est.
Burial allowance....................      86,405      85,300      84,200
Burial plot.........................      75,061      76,800      78,600
Service-connected death.............       9,901       9,880       9,850
Burial flags........................     549,018     519,400     526,200
Headstone markers...................     345,389     342,960     348,840
Headstone allowance.................           3
Graveliners.........................      49,738      49,583      50,362
Preplaced crypts....................      11,571      42,000      46,500

    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

                                     1999 actual  2000 est.   2001 est.
Retired Officers....................           2           1           1
Special allowance dependents........         138         138         138
Equal Access to Justice payments....         716         716         716

                                [F-dash]

                          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, [$1,469,000,000] $1,634,000,000, to 
remain available until expended: Provided, That expenses for 
rehabilitation program services and assistance which the Secretary is 
authorized to provide under section 3104(a) of title 38, United States 
Code, other than under subsection (a)(1), (2), (5) and (11) of that 
section, shall be charged to the account: Provided further, 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, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Sons and daughters............         121         126         131
00.02     Spouses.......................          14          15          17
                                           ---------   ---------  ----------
00.91       Total education and training         135         141         148
        Special assistance to disabled 
            veterans:
01.01     Vocational rehabilitation.....         412         417         392
01.02     Housing grants................          20          21          21
01.03     Automobiles, adaptive 
            equipment, maintenance and 
            repair......................          31          31          31
                                           ---------   ---------  ----------
01.91       Total special assistance to 
              disabled veterans.........         463         469         444
02.01   Work study......................          34          33          35
02.02   Payments to states..............          13          13          13
02.03   All-volunteer assistance: 
          Veterans' basic benefits......         803         806       1,025
02.04   Reporting fees..................                       4           4
                                           ---------   ---------  ----------
02.91     All-volunteer assistance and 
            other.......................         850         856       1,077
                                           ---------   ---------  ----------
02.93     Total direct program..........       1,448       1,466       1,669
09.01 Veterans' basic benefits..........           9           7           4
09.01 Veterans' supplementary benefits..          75          76          89
09.01 Reservists benefits...............         103         102         106
09.02 Reservist supplementary benefits..           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,636       1,652       1,869
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         165          35          35
22.00 New budget authority (gross)......       1,362       1,654       1,834
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       2
22.22 Unobligated balance transferred 
        from other accounts.............         143
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,670       1,691       1,869
23.95 Total new obligations.............      -1,636      -1,652      -1,869
23.98 Unobligated balance expiring or 
        withdrawn.......................                      -4
24.40 Unobligated balance available, end 
        of year.........................          35          35
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Change for certain vocational 
          rehabilitation activities.....                                 -30
      Mandatory:

60.00   Appropriation...................       1,175       1,469       1,664
69.00 Offsetting collections (cash).....         187         185         200
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,362       1,654       1,834
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          55          59          34
73.10 Total new obligations.............       1,636       1,652       1,869
73.20 Total outlays (gross).............      -1,632      -1,675      -1,889
73.45 Adjustments in unexpired accounts.                      -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          59          34          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -30
86.97 Outlays from new mandatory 
        authority.......................       1,270       1,582       1,850
86.98 Outlays from mandatory balances...         362          94          69
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,632       1,675       1,889
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -187        -185        -200
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,175       1,469       1,634
90.00 Outlays...........................       1,445       1,490       1,689
---------------------------------------------------------------------------



[[Page 883]]



    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 2001 will consist of 
appropriated funds of $1,634 million.

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

                       NUMBER OF TRAINEES AND COST

                                     1999 actual  2000 est.   2001 est.
Sons and daughters:
  Number of trainees................      38,700      40,300      41,900
  Average cost per trainee (in 
    dollars)........................      $3,135      $3,135      $3,135
                                    ------------------------------------
      Total cost (in millions)......        $121        $126        $131
                                    ====================================
Spouses and widow(ers):
  Number of trainees................       5,723       6,120       6,630
  Average cost per trainee (in 
    dollars)........................      $2,526      $2,526      $2,526
                                    ------------------------------------
      Total cost (in millions)......         $14         $15         $17
                                    ====================================

    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

                                     1999 actual  2000 est.   2001 est.
      Total number of trainees......      52,284      51,630      50,985
  Average cost per trainee..........      $7,872      $8,071      $7,686
                                    ------------------------------------
      Total cost (in millions)......        $412        $417        $392
                                    ====================================
Housing grants:
  Number of housing grants..........         770         800         800
  Average cost per grant............     $26,331     $26,331     $26,331
                                    ------------------------------------
      Total cost (in millions)......         $20         $21         $21
                                    ====================================
Automobiles or other conveyances:
  Number of conveyances.............       1,023       1,030       1,030
  Average cost per conveyance.......      $7,368      $7,368      $7,368
                                    ------------------------------------
      Total cost (in millions)......          $8          $8          $8
                                    ====================================
Adaptive equipment (including 
    maintenance, repair and 
    installation for automobiles):
  Number of items...................       8,593       8,344       8,102
  Average cost......................      $2,775      $2,842      $2,910
                                    ------------------------------------
      Total cost (in millions)......         $24         $24         $24
                                    ====================================

    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.

                                     1999 actual  2000 est.   2001 est.
  Number of contracts...............      26,543      26,500      27,400
                                    ------------------------------------
      Total cost (in millions)......         $34         $33         $35
                                    ====================================

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

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

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

                     CASELOAD AND AVERAGE COST DATA

                                     1999 actual  2000 est.   2001 est.

Veterans:
  Number of trainees................     288,052     279,100     309,300
  Average cost per trainee..........      $3,079      $3,192      $3,618
                                    ------------------------------------
      Total cost (in millions)......        $887        $891      $1,119
                                    ====================================
Reservists:
  Number of trainees................      73,580      71,300      70,900
  Average cost per trainee..........      $1,395      $1,415      $1,493
                                    ------------------------------------
      Total cost (in millions)......        $103        $101        $106
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       1,449       1,467       1,669
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         187         185         200
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,636       1,652       1,869
---------------------------------------------------------------------------

                                [F-dash]

  Reinstated Entitlement Program for Survivors Under Public Law 97-377

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Return of overpayment.............           2
                                           ---------   ---------  ----------
01.00   Total Direct Program............           2
09.01 Reimbursables.....................          18          16          13
                                           ---------   ---------  ----------
09.99   Total reimbursable program......          18          16          13
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................          20          16          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           5           2
22.00 New budget authority (gross)......          19          15          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          24          17          13
23.95 Total new obligations.............         -20         -16         -13
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

[[Page 884]]



    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          19          15          13
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           2           1
73.10 Total new obligations.............          20          16          13
73.20 Total outlays (gross).............         -19         -16         -13
73.40 Adjustments in expired accounts 
        (net)...........................          -4
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          19          15          13
86.98 Outlays from mandatory balances...                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          19          16          13
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -19         -15         -13
----------------------------------------------------------------------------

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

    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

                                     1999 actual  2000 est.   2001 est.
Spouses.............................         259         225         190
Average benefit.....................     $11,838     $12,844     $13,158
Obligations (in millions)...........          $3          $3          $2
Children............................       1,098         970         840
Average benefit.....................     $11,062     $11,969     $12,381
Obligations (in millions)...........         $12         $12         $10

                                [F-dash]

                   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, [$28,670,000] $19,850,000, to remain 
available until expended. (Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.04   Payment to national service life 
          insurance fund................           6           2           1
00.05   Payment to service-disabled 
          veterans insurance fund.......          34          22          12
00.06   Total operating expenses........           9           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........          49          33          22
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           2
22.00 New budget authority (gross)......          49          31          22
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          33          22
23.95 Total new obligations.............         -49         -33         -22
24.40 Unobligated balance available, end 
        of year.........................           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          46          29          20
69.00 Offsetting collections (cash).....           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          48          31          22
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          49          33          22
73.20 Total outlays (gross).............         -47         -31         -22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          47          31          22
----------------------------------------------------------------------------

    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..................          46          29          20
90.00 Outlays...........................          47          31          20
---------------------------------------------------------------------------
    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 2001 as indicated in the 
following table.

                     POLICIES AND INSURANCE IN FORCE

                                     1999 actual  2000 est.   2001 est.
National service life insurance 
    policies: \1\

  Number of policies................           0           0           0
  Amount of insurance (dollars in 
    millions).......................           0           0           0
VMLI policies:
  Number of policies................       3,518       3,430       3,310
  Amount of insurance (dollars in 
    millions).......................         201         209         207
  \1\ All of the National Service Life Insurance (NSLI) policies issued 
to veterans with service-connected disabilities were merged with the 
National Service Life Insurance Program.

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          40          24          13
42.0  Insurance claims and indemnities..           9           9           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........          49          33          22
---------------------------------------------------------------------------

[[Page 885]]



                                [F-dash]

Public enterprise funds:

                Service-Disabled Veterans Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          24          34          22
03.00 Offsetting Collections............          10
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          34          34          22
    Appropriation:
05.01 Service-disabled veterans 
        insurance fund..................                     -12         -18
                                           ---------   ---------  ----------
07.99 Total balance, end of year........          34          22           4
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Capital investment................          12          13          12
09.01 Death claims......................          41          48          47
09.01 All other.........................           8          10           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........          61          71          68
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          61          71          68
23.95 Total new obligations.............         -61         -71         -68
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          71          59          50
69.26   Offsetting collections 
          (unavailable balances)........                      12          18
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          61          71          68
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           7           7           6
73.10 Total new obligations.............          61          71          68
73.20 Total outlays (gross).............         -61         -72         -68
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           7           6           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          54          65          62
86.98 Outlays from mandatory balances...           7           7           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          61          72          68
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            VI and I....................         -34         -22         -12
          Non-Federal sources:
88.40       Interest on loans...........          -3          -3          -4
88.40       Insurance premiums earned...         -23         -24         -24
88.40       Repayments of loans.........         -11         -10         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -71         -59         -50
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -10          12          18
90.00 Outlays...........................         -11          13          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

                                     1999 actual  2000 est.   2001 est.
Number of policies..................     154,410     151,250     147,870
Insurance in force (dollars in 
millions)...........................       1,440       1,406       1,372

    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 $454 million by September 30, 2001.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          12          13          12
42.0  Insurance claims and indemnities..          49          58          56
                                           ---------   ---------  ----------
99.9    Total new obligations...........          61          71          68
---------------------------------------------------------------------------

                                [F-dash]

                    Veterans Reopened Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............         476         466         452
    Appropriation:
05.01 Veterans reopened insurance fund..         -10         -14         -16
                                           ---------   ---------  ----------
07.99 Total balance, end of year........         466         452         436
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          35          37          38
09.01 Dividends.........................          24          23          22
09.01 All other.........................           8           8           7
09.01 Capital investment: policy loans..           5           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          72          73          72
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          72          73          72
23.95 Total new obligations.............         -72         -73         -72
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          62          59          56
69.26   Offsetting collections 
          (unavailable balances)........          10          14          16
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          72          73          72
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          41          44          46
73.10 Total new obligations.............          72          73          72
73.20 Total outlays (gross).............         -68         -72         -72
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          44          46          46
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          27          59          56
86.98 Outlays from mandatory balances...          41          13          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          68          72          72
----------------------------------------------------------------------------

[[Page 886]]



    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: interest on 
            U.S. securities.............         -40         -39         -36
          Non-Federal sources:
88.40       Interest on loans...........          -1          -1          -2
88.40       Insurance premiums earned...         -14         -13         -12
88.40       Repayments of loans.........          -7          -6          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -62         -59         -56
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          10          14          16
90.00 Outlays...........................           7          13          16
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......         516         509         496
92.02 Total investments, end of year: 
        U.S. securities: Par value......         509         496         481
---------------------------------------------------------------------------
    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

                                     1999 actual  2000 est.   2001 est.
  Number of policies................      82,545      77,335      71,944
  Insurance in force (dollars in 
    millions).......................         675         645         614

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............           5           5           5
42.0  Insurance claims and indemnities..          39          41          42
43.0  Interest and dividends............          28          27          25
                                           ---------   ---------  ----------
99.9    Total new obligations...........          72          73          72
---------------------------------------------------------------------------

                                [F-dash]

                Servicemembers' Group Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4009-0-3-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Premium payments..................         401         398         396
09.01 Payment to GOE account............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         402         399         397
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
22.00 New budget authority (gross)......         402         399         397
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         403         400         398
23.95 Total new obligations.............        -402        -399        -397
24.40 Unobligated balance available, end 
        of year.........................           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         402         399         397
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           4           4           4
73.10 Total new obligations.............         402         399         397
73.20 Total outlays (gross).............        -402        -399        -397
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           4           4           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         400         395         393
86.98 Outlays from mandatory balances...           2           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         402         399         397
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources: 
          Withholdings from serviceman's 
          pay...........................        -402        -399        -397
----------------------------------------------------------------------------

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

    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.

                                [F-dash]

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 [2000] 2001, within the resources available, not to 
exceed $300,000 in gross obligations for direct loans are authorized for 
specially adapted housing loans.
    In addition, for administrative expenses to carry out the direct and 
guaranteed loan programs, [$156,958,000] $166,484,000, 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, 2000.)

[[Page 887]]

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
0101  GIF direct loans, downward 
        reestimate of subsidies.........         619         730
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         127          56          12
00.02 Guaranteed loan subsidy...........         250         324         154
00.05 Reestimates of direct loan subsidy         107          67
00.06 Interest on reestimates of the 
        direct loan subsidy.............          41          39
00.07 Reestimates of guaranteed loan 
        subsidy.........................         691         658
00.08 Interest on reestimates of the 
        guaranteed loan subsidy.........         173         165
00.11 Administrative expenses...........         159         157         166
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,548       1,466         332
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,548       1,467         332
23.95 Total new obligations.............      -1,548      -1,466        -332
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (definite)........         159         157         166
      Mandatory:

60.05   Appropriation (indefinite)......       1,389       1,310         166
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,548       1,467         332
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           1
73.10 Total new obligations.............       1,548       1,466         332
73.20 Total outlays (gross).............      -1,549      -1,467        -332
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         159         157         166
86.97 Outlays from new mandatory 
        authority.......................       1,389       1,310         166
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,549       1,467         332
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,548       1,467         332
90.00 Outlays...........................       1,549       1,467         332
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................       1,648       1,992         649
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,648       1,992         649
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        7.71        2.79        1.82
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        7.71        2.79        1.82
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........         127          56          12
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         127          56          12
    Direct loan subsidy outlays:
1340  Subsidy outlays...................         275         162          12
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         275         162          12
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Guaranteed loan...................      43,091      32,116      29,535
2150  Guaranteed loan sales.............         970       1,988         799
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      44,061      34,104      30,334
    Guaranteed loan subsidy (in percent):
2320  Guaranteed loan subsidy rate......        0.46        0.68        0.38
2320  Guaranteed loan sales subsidy rate        5.36        5.34        5.22
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.57        0.95        0.51
    Guaranteed loan subsidy budget authority:
2330  Guaranteed loan budget authority..         198         218         112
2330  Guaranteed loan sale budget 
        authority.......................          52         106          42
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         250         324         154
    Guaranteed loan subsidy outlays:
2340  Guaranteed loan subsidy outlay....         556         999         112
2340  Guaranteed loan sale subsidy 
        outlay..........................         558         149          42
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........       1,114       1,148         154
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         159         157         166
3590  Outlays from new authority........         159         157         166
---------------------------------------------------------------------------

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

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

    As part of a continuing effort to reduce administrative costs, in 
addition to restructuring and consolidations, VA is conducting a study 
of the property management function to determine whether it would be 
more cost effective to contract out this activity. The study will be 
complete at the end of 2000.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         159         157         166
41.0  Grants, subsidies, and 
        contributions...................       1,389       1,309         166
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,548       1,466         332
---------------------------------------------------------------------------

                                [F-dash]

   Veterans Housing Benefit Program Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................       1,648       1,992         649
00.02 Interest on Treasury borrowing....         234         117         109
00.03 Property sales expense............           1           1           2
00.04 Property management/other expense.         105           1           1
00.05 Property improvement expense......           1           1           1
00.07 Reimburse LSSA for loan sale 
        premium.........................                      54
08.02 Payment of downward reestimate to 
        receipt account.................         218          80
08.04 Payment of excess interest earned 
        to receipt account..............          76          21
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,283       2,267         762
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         885         908
22.00 New financing authority (gross)...       2,307       1,359         762
22.60 Portion applied to repay debt.....
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,192       2,267         762
23.95 Total new obligations.............      -2,283      -2,267        -762
24.40 Unobligated balance available, end 
        of year.........................         908
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)       1,944         117         109
69.00 Offsetting collections (cash).....       1,599       2,376       1,000
69.10 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................           1

[[Page 888]]

69.47 Portion applied to repay debt.....      -1,237      -1,134        -347
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         363       1,242         653
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       2,307       1,359         762
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          -7          -1
72.95   Receivables from federal sources                       1           1
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          -7                       1
73.10 Total new obligations.............       2,283       2,267         762
73.20 Total financing disbursements 
        (gross).........................      -2,277      -2,266        -762
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          -1
74.95   Receivables from federal sources           1           1           1
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................                       1           1
87.00 Total financing disbursements 
        (gross).........................       2,277       2,266         762
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources:Payments 
              from program account......        -275        -162         -12
88.00       Transfer of loan sales from 
              LSSA......................                  -1,883        -731
88.00       Reimbursement and 
              prepayments from LSSA 
              sales for trustee reserve.         -54
          Non-Federal sources:
            Non-Federal sources:

88.40         Repayments of principal...         -69         -52         -55
88.40         Proceeds from sale of 
                loans...................        -949
88.40         Interest received on loans         -99        -155        -142
88.40         Fees......................         -27         -42         -11
88.40         Downpayment on Vendee 
                loan/other..............         -19         -57         -16
88.40         Cash sale of properties...          -4         -25         -33
88.40         Other revenue.............        -103
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,599      -2,376      -1,000
      Against gross budget authority only:

88.95   Change in receivables from 
          program accounts..............          -1
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         707      -1,017        -238
90.00 Financing disbursements...........         678        -110        -238
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................       1,648       1,992         649
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,648       1,992         649
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,104       1,588       1,459
1231  Disbursements: Direct loan 
        disbursements...................       1,648       1,992         649
      Repayments:

1251    Repayments and prepayments......         -69         -52         -55
1253    Proceeds from loan asset sales 
          to the public with recourse...                  -1,883        -731
      Adjustments:

1261    Capitalized interest............          57
1262    Discount on loan asset sales to 
          the public or discounted......        -979        -105         -67
      Write-offs for default:

1263    Direct loans....................         -73         -81         -86
1264    Other adjustments, net..........        -100
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,588       1,459       1,169
---------------------------------------------------------------------------

    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    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         878          1,014           686            760
        Investments in US securities:
1106      Receivables, net..............          93
1206  Non-Federal assets: Receivables, 
        net.............................          26
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, net....         874          1,588         1,459          1,168
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         874          1,588         1,459          1,168
1901  Other Federal assets: Other assets           5
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,876          2,602         2,145          1,928
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       1,870          1,944         1,588          1,758
      Non-Federal liabilities:

2201    Accounts payable................           1            103            84             92
2204    Liabilities for loan guarantees.           5            555           474             78
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,876          2,602         2,146          1,928
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,876          2,602         2,146          1,928
-----------------------------------------------------------------------------------------------

                                [F-dash]

 Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Acquisition of homes..............       1,348       2,120       2,429
00.02 Losses on defaulted loans.........         842         508         530
00.03 Interest on Treasury borrowing....           4
00.04 Reimburse DLFA for loan sales.....          54       1,883         731
00.05 Payment to trustee reserve........          68          19           7
00.06 Reimburse Liquidating for 
        subordination certificate.......         232          39          37
00.07 Loan Sale Closing Costs...........          27          28          24
00.09 Property sales expense............          86         102         127
00.10 Property management expense.......          62          46          67
00.11 Property improvement expense......          53          41          47
00.12 Loans acquired....................         239         102         102
08.02 Payment of downward reestimate to 
        receipt account.................         199         416
08.04 Payment of excess interest to 
        receipt account.................         126         213
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,340       5,517       4,101
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       3,480       4,438       5,011
22.00 New financing authority (gross)...       4,299       6,090       3,798
22.60 Portion applied to repay debt.....
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       7,779      10,528       8,809
23.95 Total new obligations.............      -3,340      -5,517      -4,101
24.40 Unobligated balance available, end 
        of year.........................       4,438       5,011       4,709
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)          57          19           7
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).       4,242       6,077       3,799
68.47     Portion applied to repay debt.                      -6          -8
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....       4,242       6,071       3,791
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       4,299       6,090       3,798
----------------------------------------------------------------------------

[[Page 889]]



    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         139         166         384
73.10 Total new obligations.............       3,340       5,517       4,101
73.20 Total financing disbursements 
        (gross).........................      -3,313      -5,299      -4,284
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         166         384         201
87.00 Total financing disbursements 
        (gross).........................       3,313       5,299       4,284
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.00         Payments from program 
                account.................      -1,114      -1,148        -154
88.00         Recoveries from DLFA......      -1,351      -1,716        -556
88.00         Recoveries from 
                Liquidating acct........        -232         -39         -36
88.25     Interest on uninvested funds..        -257        -247        -255
          Non-Federal sources:
            Non-Federal sources:

88.40         Funding fees..............        -613        -625        -577
88.40         Cash sale of properties...        -491        -340      -1,460
88.40         Redemption of properties 
                and other...............         -10         -19         -22
88.40         Refunds from Trust........                      -6          -7
88.40         Reimburse for prior loan 
                sale premiums...........        -166         -54
88.45     Loan sale proceeds............          -8      -1,883        -732
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -4,242      -6,077      -3,799
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          57          13          -1
90.00 Financing disbursements...........        -928        -778         485
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      1999 actual   2000 est.   2001 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.................      43,091      32,116      29,535
2132  Guaranteed loan commitments for 
        loan asset sales with recourse..         970       1,988         799
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      44,061      34,104      30,334
2199  Guaranteed amount of guaranteed 
        loan commitments................      20,361      16,440      14,089
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     187,388     203,651     206,298
2231  Disbursements of new guaranteed 
        loans...........................      43,091      32,116      29,535
2232  Guarantees of loans sold to the 
        public with recourse............         970       1,988         799
2251  Repayments and prepayments........     -10,586     -12,220     -13,712
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -114        -121        -136
2262    Terminations for default that 
          result in acquisition of 
          property......................      -1,348      -2,120      -2,429
2263    Terminations for default that 
          result in claim payments......        -555        -465        -506
2264    Other adjustments, net..........     -15,195     -16,531     -16,636
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     203,651     206,298     203,213
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      71,968      73,775      72,871
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         103         197         286
2331    Disbursements for guaranteed 
          loan claims...................         114         121         136
2351    Repayments of loans receivable..          -8         -15         -22
2361    Write-offs of loans receivable..         -12         -17         -23
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         197         286         377
---------------------------------------------------------------------------

    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, and from the guarantee of loans sold through the securitization 
programs. 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    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       3,618          4,603         5,301          4,814
        Investments in US securities:
1106      Receivables, net..............         358            823
      Non-Federal assets:

1206    Receivables, net................                         38            41             24
1207    Advances and prepayments........          38
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............       1,154            197           286            377
1504    Foreclosed property.............                        966           846            776
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       1,154          1,163         1,132          1,153
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       5,168          6,627         6,474          5,991
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          24            166           384            201
2105    Other...........................         324            403           413            405
2204  Non-Federal liabilities: Non-
        federal liabilities.............       4,820          6,058         5,677          5,385
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       5,168          6,627         6,474          5,991
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       5,168          6,627         6,474          5,991
-----------------------------------------------------------------------------------------------

                                [F-dash]

        Veterans Housing Benefit Program Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investments:

00.01   Acquisition of homes............         200         184         175
00.02   Property improvements...........          17          16          16
00.03   Cash advances...................         -43         -32         -24
00.04   Acquisition of defaulted 
          guaranteed loans..............          47          38          36
                                           ---------   ---------  ----------
00.91     Total capital investments.....         221         206         203
                                           ---------   ---------  ----------
01.00   Total capital investments.......         221         206         203
      Operating expenses:

01.02   Property management expense.....          27          23          22
01.03   Sales expense...................          24          21          19
01.04   Claims processed................         117         102          88
01.05   Other expenses..................          13          12          12
                                           ---------   ---------  ----------
01.91     Total operating expenses......         181         158         141
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................         402         364         344
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          41         114
22.00 New budget authority (gross)......         938         514         440
22.40 Capital transfer to general fund..        -463        -265         -96
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         516         363         344
23.95 Total new obligations.............        -402        -364        -344
24.40 Unobligated balance available, end 
        of year.........................         114
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         154
69.00 Offsetting collections (cash).....         700         514         440
69.10 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          84
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         784         514         440
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         938         514         440
----------------------------------------------------------------------------

[[Page 890]]



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

72.40   Obligated balance, start of year          57          45          33
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............                      84          84
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          57         129         117
73.10 Total new obligations.............         402         364         344
73.20 Total outlays (gross).............        -330        -376        -350
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          45          33          27
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............          84          84          84
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         129         117         111
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         273         376         350
86.98 Outlays from mandatory balances...          57
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         330         376         350
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            direct loan financing 
            account.....................        -283        -276         -93
          Non-Federal sources:
            Non-Federal sources:

88.40         Loan and other repayments.         -66         -53         -42
88.40         Sale of homes, cash.......        -101         -73        -209
88.40         Interest on loans.........         -59         -47         -38
88.40         Collection of claims 
                (veteran indebtedness)..         -49         -40         -33
88.40         Interest--Subordinate 
                Certificates............        -204         -38         -36
88.40         Other revenue.............          62          13          11
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -700        -514        -440
      Against gross budget authority only:

88.95   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -84
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         154
90.00 Outlays...........................        -371        -138         -90
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         327         317         289
      Disbursements:

1231    Direct loan disbursements.......
1232    Purchase of loans assets from 
          the public....................          10           9           9
      Repayments:

1251    Repayments and prepayments......         -37         -36         -33
1253    Proceeds from loan asset sales 
          to the public with recourse...         -38
      Write-offs for default:

1263    Direct loans....................          -1          -1          -1
1264    Other adjustments, net..........          56
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         317         289         264
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      23,408      17,638      13,213
2232  Guarantees of loans sold to the 
        public with recourse............          38
2251  Repayments and prepayments........      -5,444      -4,101      -3,073
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -47         -38         -36
2262    Terminations for default that 
          result in acquisition of 
          property......................        -200        -184        -175
2263    Terminations for default that 
          result in claim payments......        -117        -102         -88
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      17,638      13,213       9,841
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       7,709       5,775       4,301
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         620         574         555
2331    Disbursements for guaranteed 
          loan claims...................         103          87          75
2351    Repayments of loans receivable..         -48         -40         -33
2361    Write-offs of loans receivable..        -101         -66         -56
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         574         555         541
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         469            393            -6             45
0102  Expense...........................        -552           -168          -146           -129
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............         -83            225          -152            -84
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          98            160           144            130
        Investments in US securities:
1106      Investments...................           9             93            84             75
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............         239            239           201            164
1206    Accounts Receivable, net........           1              1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         529            377           289            265
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         529            377           289            265
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         876            870           718            634
    LIABILITIES:
2105  Federal liabilities: Federal 
        liabilities: Other..............         811            731           548            408
      Non-Federal liabilities:

2201    Accounts payable................          67            149           179            233
2207    Other...........................          -2            -10            -9             -7
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         876            870           718            634
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         876            870           718            634
-----------------------------------------------------------------------------------------------

    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 and loan guarantees committed prior to 1992. All new 
activity in this program in 1992 and beyond is recorded in the 
corresponding program and financing accounts.

                                [F-dash]

          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, [$520,000] 
$532,000, 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, 2000.)

[[Page 891]]

  guaranteed transitional housing loans for homeless veterans program 
                                 account

                      (including transfer of funds)

    For the cost, as defined in section 13201 of the Budget Enforcement 
Act of 1990, including the cost of modifying loans, of guaranteed loans 
as authorized by 38 U.S.C. chapter 37 subchapter VI, $48,250,000, to 
remain available until expended: Provided, That no more than five loans 
may be guaranteed under this program prior to November 11, 2001: 
Provided further, That no more than 15 loans may be guaranteed under 
this program: Provided further, That the total principal amount of loans 
guaranteed under this program may not exceed $100,000,000: Provided 
further, That not] Not to exceed $750,000 of the amounts appropriated by 
this Act for ``General operating expenses'' and ``Medical care'' may be 
expended for the administrative expenses to carry out the guaranteed 
loan program authorized by 38 U.S.C. chapter 37, subchapter VI. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........                      10           6
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1          11           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3           6          41
22.00 New budget authority (gross)......           4          46           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7          52          42
23.95 Total new obligations.............          -1         -11          -7
24.40 Unobligated balance available, end 
        of year.........................           6          41          35
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1           1           1
      Mandatory:

60.00   Appropriation...................           3          45
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           4          46           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............           1          11           7
73.20 Total outlays (gross).............          -1         -11          -7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.97 Outlays from new mandatory 
        authority.......................                       7
86.98 Outlays from mandatory balances...                       3           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1          11           7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           4          46           1
90.00 Outlays...........................           1          11           7
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................           2           2           2
                                           ---------   ---------  ----------
1159    Total direct loan levels........           2           2           2
    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
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Loan guarantee levels.............                      20          13
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....                      20          13
    Guaranteed loan subsidy (in percent):
2320  Subsidy rate......................       48.25       48.25       48.25
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...       48.25       48.25       48.25
    Guaranteed loan subsidy budget authority:
2330  Subsidy budget authority..........           3          10           6
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..           3          10           6
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                      10           6
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                      10           6
----------------------------------------------------------------------------

    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 Guaranteed 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 project designed to expand the supply of 
transitional housing for homeless veterans and to guarantee up to 15 
investment loans with a maximum aggregate value of $100 million. Not 
more than five loans may be guaranteed in the first three years of the 
program. The project must enforce sobriety standards and provide a wide 
range of supportive services such as counseling for substance abuse and 
job readiness skills. Residents will be required to pay a reasonable 
fee.

    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 committed 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........           1           1           1
41.0  Grants, subsidies, and 
        contributions...................                      10           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........           1          11           7
---------------------------------------------------------------------------

                                [F-dash]

   Miscellaneous Veterans Housing Loans Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................           2           2           2
00.02 Interest on Treasury borrowing....           2           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           4           3           3
----------------------------------------------------------------------------

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

[[Page 892]]



    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)          10           2           2
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).           3           2           2
68.47     Portion applied to repay debt.          -9          -1          -1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          -6           1           1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4           3           3
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                                  -3
73.10 Total new obligations.............           4           3           3
73.20 Total financing disbursements 
        (gross).........................          -4          -6          -3
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                      -3          -3
87.00 Total financing disbursements 
        (gross).........................           4           6           3
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           1           1           1
90.00 Financing disbursements...........           1           4           1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................           2           2           2
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           2           2           2
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          16          17          19
1231  Disbursements: Direct loan 
        disbursements...................           2           2           1
1264  Write-offs for default: Other 
        adjustments, net................          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          17          19          20
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4130-0-3-704    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           1              1             1              1
1206  Non-Federal assets: Receivables, 
        net.............................                                                       1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          14             17            19             20
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          14             17            19             20
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          15             18            20             22
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          15             18            20             22
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          15             18            20             22
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          15             18            20             22
-----------------------------------------------------------------------------------------------

    This account contains information on the Native American Veterans 
Housing Loan program.

    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.

                                [F-dash]

 Miscellaneous Veterans Housing Loans Guaranteed Loan Financing Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                                  10
22.00 New financing authority (gross)...                      10           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      10          17
24.40 Unobligated balance available, end 
        of year.........................                      10          16
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections 
          (gross): Offsetting 
          collections (cash)............                      10           7
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Sources: Payments from 
            Program Account.............                     -10          -6
88.25     Interest on uninvested funds..                                  -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -10          -7
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                     -10          -7
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      1999 actual   2000 est.   2001 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.................                      20          13
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                      20          13
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                  20
2231  Disbursements of new guaranteed 
        loans...........................                      20          13
2251  Repayments and prepayments........                                  -2
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                      20          31
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                      18          25
---------------------------------------------------------------------------

    This account contains information on the Guaranteed Transitional 
Housing Loans for Homeless Veterans program.

    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.

[[Page 893]]

                                [F-dash]

        Miscellaneous Veterans Programs Loan Fund Program Account

             Vocational Rehabilitation Loans Program Account

                      (including transfer of funds)

    For the cost of direct loans, [$57,000] $52,000, 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 [$2,531,000] $2,726,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$415,000] $432,000, 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, 2000.)

                   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] $3,400.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$214,000] $220,000, 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, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-1-702      1999 actual   2000 est.   2001 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:
21.40 Unobligated balance available, 
        start of year...................           1
22.00 New budget authority (gross)......           1           1           1
22.40 Capital transfer to general fund..          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1           1
23.95 Total new obligations.............          -1          -1          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

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 discretionary 
        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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels, vocational 
        rehabiliation...................           2           3           3
1150  Direct loan levels, education loan
                                           ---------   ---------  ----------
1159    Total direct loan levels........           2           3           3
    Direct loan subsidy (in percent):
1320  Voc. Rehab. Loan subsidy rate.....        2.27        2.23        1.88
1320  Education Loan subsidy rate.......       32.75       29.68       18.89
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       36.05       35.02       35.02
----------------------------------------------------------------------------

    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 $840 
(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.

                                [F-dash]

 Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           2           2           2
22.60 Portion applied to repay debt.....          -2          -2          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
23.95 Total new obligations.............          -2          -2          -2
24.40 Unobligated balance available, end 
        of year.........................
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)           2           2           2
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).           2           2           2
68.47     Portion applied to repay debt.          -2          -2          -2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           2           2           2
----------------------------------------------------------------------------

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.40   Offsetting collections (cash) 
          from: Interest on loans.......          -2          -2          -2
----------------------------------------------------------------------------

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................           2           3           3
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           2           3           3
----------------------------------------------------------------------------

[[Page 894]]


    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           1           1           1
1251  Repayments: Repayments and 
        prepayments.....................          -2          -2          -2
1264  Write-offs for default: Other 
        adjustments, net................           2           2           2
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1           1           1
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4259-0-3-702    1998 actual    1999 actual     2000 est.      2001 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

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

    This account contains 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.

                                [F-dash]

      
  

                               Trust Funds

               Post-Vietnam Era Veterans Education Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          65          66          66
    Receipts:
02.01 Deductions from military pay......           3           2           1
02.02 Contributions.....................           3
                                           ---------   ---------  ----------
02.99   Total receipts..................           6           2           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          71          68          67
    Appropriation:
05.01 Post-Vietnam era veterans 
        education account...............          -5          -2          -1
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............          -5          -2          -1
                                           ---------   ---------  ----------
07.99 Total balance, end of year........          66          66          66
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to post-Vietnam era 
        trainees........................           4           4           3
00.03 Participant disenrollments........          15          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........          19          19          18
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         120         106          88
22.00 New budget authority (gross)......           5           2           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         125         108          89
23.95 Total new obligations.............         -19         -19         -18
24.40 Unobligated balance available, end 
        of year.........................         106          88          72
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................          20          17          16
60.45   Portion precluded from 
          obligation....................         -15         -15         -15
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           5           2           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           2           1
73.10 Total new obligations.............          19          19          18
73.20 Total outlays (gross).............         -20         -20         -18
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           2           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           5           2           1
86.98 Outlays from mandatory balances...          15          18          17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          20          20          18
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           5           2           1
90.00 Outlays...........................          20          20          18
---------------------------------------------------------------------------

    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]

                                     1999 actual  2000 est.   2001 est.

Total budget authority..............           5           2           1
  Servicepersons....................           3           2           1
  Transferred from Department of 
    Defense (matching)..............           2
Total participants (end of year)....     231,785     209,785     189,185
Total contributors (end of year)....       2,528       1,800         900
Average contribution per contributor 
(actual dollars)....................       1,011       1,011       1,011
Number of disenrollments............      22,553      22,000      21,500
Total refunds.......................          15          15          15
Total trainees......................       3,939       2,800       1,900
Total trainee cost..................           5           5           4
Average cost per trainee (actual 
dollars)............................         928       1,359       1,576
Section 901 trainees................          36          40          30

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................           4           4           3
44.0  Refunds...........................          15          15          15
                                           ---------   ---------  ----------
99.9    Total new obligations...........          19          19          18
---------------------------------------------------------------------------

                                [F-dash]

                  National Service Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............      10,675      10,572      10,369
    Receipts:
02.01 Premium and other receipts........         204         189         179
02.02 Interest..........................         936         907         879
02.03 Payments from general and special 
        funds...........................           6           2           1
                                           ---------   ---------  ----------
02.99   Total receipts..................       1,146       1,098       1,059
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...      11,821      11,670      11,428
    Appropriation:
05.01 National Service Life Insurance 
        fund............................      -1,249      -1,301      -1,292
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............      -1,249      -1,301      -1,292
                                           ---------   ---------  ----------
07.99 Total balance, end of year........      10,572      10,369      10,136
---------------------------------------------------------------------------

[[Page 895]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct:

        Operating expenses:
00.01     Death claims..................         581         608         623
00.02     Disability claims.............          16          16          14
00.03     Matured endowments............          12          11           7
00.04     Cash surrenders...............          25          25          26
00.05     Dividends.....................         432         422         395
00.06     Interest paid on dividend 
            credits and deposits........          54          56          57
00.07     Payment to general operating 
            expenses....................          21          22          21
                                           ---------   ---------  ----------
00.91       Total operating expenses....       1,141       1,160       1,143
02.01 Capital investment: Policy loans..         111         113         110
                                           ---------   ---------  ----------
02.93   Total direct obligations........       1,252       1,273       1,253
      Reimbursable program:

09.01   Death claims....................         269         276         290
09.01   Disability claims...............           7           7           7
09.01   Matured endowments..............           5           5           3
09.01   Cash surrenders.................          11          12          12
09.01   Dividends.......................         200         191         183
09.01   Interest paid on dividend 
          credits and deposits..........          25          25          26
09.01   Payment to general operating 
          expenses......................          10          10          10
                                           ---------   ---------  ----------
09.09     Reimbursable program..........         527         526         531
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,779       1,799       1,784
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,780       1,798       1,784
23.95 Total new obligations.............      -1,779      -1,799      -1,784
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................       1,146       1,098       1,059
69.00 Offsetting collections (cash).....         531         497         492
69.26 Offsetting collections 
        (unavailable balances)..........         103         203         233
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         634         700         725
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,780       1,798       1,784
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       1,343       1,390       1,432
73.10 Total new obligations.............       1,779       1,799       1,784
73.20 Total outlays (gross).............      -1,732      -1,756      -1,759
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       1,390       1,432       1,459
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         531         497         491
86.98 Outlays from mandatory balances...       1,201       1,259       1,268
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,732       1,756       1,759
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of loans.........        -127        -125        -123
88.40       Optional settlements........          -3          -3          -3
88.40       Net income offsets 
              adjustments...............        -401        -369        -366
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -531        -497        -492
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,249       1,301       1,292
90.00 Outlays...........................       1,201       1,259       1,267
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......      12,008      11,954      11,793
92.02 Total investments, end of year: 
        U.S. securities: Par value......      11,954      11,793      11,584
---------------------------------------------------------------------------
    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

                                     1999 actual  2000 est.   2001 est.

Number of policies..................   1,802,101   1,694,591   1,586,821
Insurance in force (dollars in 
millions)...........................      17,662      16,921      16,177

    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 $12,825 million as of September 30, 2000 to $12,609 
million as of September 30, 2001. The actuarial estimate of policy 
obligations as of September 30, 2001, total $12,205 million, leaving a 
balance of $404 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Uninvested balance [unavailable 
        collections]....................          10           9           9
0101  U.S. Securities: Par value........      12,008      11,954      11,793
                                           ---------   ---------  ----------
0199    Total balance, start of year....      12,018      11,962      11,801
    Cash income during the year:
      Proprietary receipts:

0220    NSLI fund, premium and other 
          receipts......................         204         189         179
      Intragovernmental transactions:

0240    NSLI fund,interest..............         936         907         879
0241    NSLI fund, payments from general 
          and special funds.............           6           2           1
      Offsetting collections:

0280    NSLI fund, offsetting 
          collections...................         531         497         492
                                           ---------   ---------  ----------
0299    Total cash income...............       1,677       1,595       1,551
    Cash outgo during year:
0500  National service life insurance 
        fund............................      -1,732      -1,756      -1,759
    Unexpended balance, end of year:
0700  Uninvested balance................           9           9           9
0701  U.S. Securities: Par value........      11,954      11,793      11,584
                                           ---------   ---------  ----------
0799    Total balance, end of year......      11,962      11,801      11,595
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

33.0    Investments and loans...........         111         113         110
42.0    Insurance claims and indemnities         634         661         669
43.0    Interest and dividends..........         507         500         473
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,252       1,274       1,252
99.0  Reimbursable obligations..........         527         525         532
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,779       1,799       1,784
---------------------------------------------------------------------------

                                [F-dash]

              United States Government Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............          66          61          56
    Receipts:
02.01 Interest and profits on 
        investments in public debt 
        securities......................           6           5           5
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          72          66          61

[[Page 896]]

    Appropriation:
05.01 United States government life 
        insurance fund..................         -11         -10         -10
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............         -11         -10         -10
                                           ---------   ---------  ----------
07.99 Total balance, end of year........          61          56          51
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.01   Death claims....................           4           3           3
00.05   Dividends.......................           2           1           1
00.06   Interest paid on dividend 
          credits and deposits..........           1           1           1
00.07   Other costs.....................           1           1           1
09.01 Death Claims......................           2           3           3
09.02 Dividends.........................           2           2           2
                                           ---------   ---------  ----------
09.09   Reimbursable program............           4           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12          11          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          12          11          11
23.95 Total new obligations.............         -12         -11         -11
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................           6           5           5
69.00 Offsetting collections (cash).....           1           1           1
69.26 Offsetting collections 
        (unavailable balances)..........           5           5           5
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................           6           6           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12          11          11
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          19          19          18
73.10 Total new obligations.............          12          11          11
73.20 Total outlays (gross).............         -12         -13         -13
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          19          18          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           2           1           1
86.98 Outlays from mandatory balances...          10          11          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          13          13
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................          11          10          10
90.00 Outlays...........................          12          12          12
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......          86          80          74
92.02 Total investments, end of year: 
        U.S. securities: Par value......          80          74          69
---------------------------------------------------------------------------
    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

                                     1999 actual  2000 est.   2001 est.
Number of policies..................      17,973      16,263      14,583
Insurance in force (dollars in 
millions)...........................          59          53          48

    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 because 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 $78 million 
as of September 30, 2000, to $72 million as of September 30, 2001, as an 
increasing number of policies mature through death or disability. The 
actuarial evaluation of policy obligations as of September 30, 2001, 
totals $69 million, leaving a balance of $3 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0101  U.S. Securities: Par value........          86          80          74
                                           ---------   ---------  ----------
0199    Total balance, start of year....          85          80          74
    Cash income during the year:
      Intragovernmental transactions:

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

0280    Offsetting collections, USGLI...           1           1           1
                                           ---------   ---------  ----------
0299    Total cash income...............           7           6           6
    Cash outgo during year:
0500  United States government life 
        insurance fund..................         -12         -13         -13
    Unexpended balance, end of year:
0701  U.S. Securities: Par value........          80          74          69
                                           ---------   ---------  ----------
0799    Total balance, end of year......          80          74          68
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

42.0    Insurance claims and indemnities           4           4           4
43.0    Interest and dividends..........           3           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           7           6           6
99.0  Reimbursable obligations..........           5           5           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........          12          11          11
---------------------------------------------------------------------------

                                [F-dash]

                  Veterans Special Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............       1,420       1,439       1,454
03.00 Offsetting Collections............          19
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       1,439       1,439       1,454
    Appropriation:
05.01 Veterans special life insurance 
        fund............................                      15          22
                                           ---------   ---------  ----------
07.99 Total balance, end of year........       1,439       1,454       1,476
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          50          57          58

[[Page 897]]

09.01 Cash surrenders...................           5           5           5
09.01 Dividends.........................         101         100          96
09.01 All other.........................          41          36          30
09.01 Payment to general operating 
        expenses account................           5           5           5
09.02 Capital investment................          18          20          20
                                           ---------   ---------  ----------
10.00   Total new obligations...........         220         223         214
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         220         223         214
23.95 Total new obligations.............        -220        -223        -214
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         239         238         236
69.26   Offsetting collections 
          (unavailable balances)........                     -15         -22
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         220         223         214
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         210         229         244
73.10 Total new obligations.............         220         223         214
73.20 Total outlays (gross).............        -201        -207        -199
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         229         244         259
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          17          17          19
86.98 Outlays from mandatory balances...         184         190         180
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         201         207         199
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Interest on loans...........          -6          -6          -7
88.40       Insurance premiums earned...         -70         -68         -66
88.40       Optional settlements........          -1          -1          -1
88.40       Repayments of loans.........         -17         -18         -19
88.45     Offsetting governmental 
            collections from the public.        -145        -145        -143
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -239        -238        -236
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -19         -15         -22
90.00 Outlays...........................         -37         -31         -37
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......       1,628       1,666       1,696
92.02 Total investments, end of year: 
        U.S. securities: Par value......       1,666       1,696       1,733
---------------------------------------------------------------------------
    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

                                     1999 actual  2000 est.   2001 est.
Number of policies..................     233,893     228,143     222,393
Insurance in force (dollars in 
millions)...........................       2,699       2,668       2,630

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          19          20          20
42.0  Insurance claims and indemnities..          82          84          79
43.0  Interest and dividends............         119         119         115
                                           ---------   ---------  ----------
99.9    Total new obligations...........         220         223         214
---------------------------------------------------------------------------

                                [F-dash]


 
                              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, [$65,140,000] $62,140,000, to 
remain available until expended: Provided, That except for advance 
planning of projects (including market-based assessments of health care 
needs which may or may not lead to capital investments) 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 [2000] 2001, for each approved project, shall be obligated: 
(1) by the awarding of a construction documents contract by September 
30, [2000] 2001; and (2) by the awarding of a construction contract by 
September 30, [2001] 2002: 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 [1] one year after substantial 
completion and beneficial occupancy by the Department of Veterans 
Affairs of the project or any part thereof with respect to that part 
only. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Replacement and modernization.....          30          32          27
00.02 Nursing home care.................           1           1           1
00.06 Other improvements................         136         130         140
00.07 National cemeteries...............           3          21          27
00.08 Replacement or renovation of 
        regional offices................                       1           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........         170         185         198
----------------------------------------------------------------------------

[[Page 898]]



    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         592         565         445
22.00 New budget authority (gross)......         142          65          62
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         734         630         507
23.95 Total new obligations.............        -170        -185        -198
24.40 Unobligated balance available, end 
        of year.........................         565         445         309
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         142          65          62
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         378         258         259
73.10 Total new obligations.............         170         185         198
73.20 Total outlays (gross).............        -290        -184        -142
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         258         259         315
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8           3           3
86.93 Outlays from discretionary 
        balances........................         282         181         139
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         290         184         142
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         142          65          62
90.00 Outlays...........................         290         184         142
---------------------------------------------------------------------------

    Funds are requested for a seismic corrections project at Palo Alto, 
CA and a gravesite development project at Ft. Logan National Cemetery.

    Additional funds are provided to remove asbestos from Department-
owned buildings and to support advanced planning (including market based 
assessments of health care needs) and design activities.

                  Budget Authority by Program Activity

                        [In millions of dollars]

                                     1999 actual  2000 est.   2001 est.
Clinical improvements...............                  30,500
Ambulatory care.....................      46,000
Seismic corrections.................      73,200                  26,600
Patient environment.................                  12,700
Other departments...................      42,560      29,685      37,675
Design fund offset..................     (1,760)     (1,245)     (2,135)
Less rescission.....................        (13)
Reprogramming.......................    (17,700)     (6,500)
                                    ------------------------------------
      Total budget authority........     142,287      65,140      62,140
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           2           2           2
25.2  Other services....................          42          45          43
26.0  Supplies and materials............           2           2           3
31.0  Equipment.........................           1           2           2
32.0  Land and structures...............         123         134         148
                                           ---------   ---------  ----------
99.9    Total new obligations...........         170         185         198
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          34          50          50
---------------------------------------------------------------------------

                                [F-dash]

                      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, and 
8162 of title 38, United States Code, where the estimated cost of a 
project is less than $4,000,000, [$160,000,000] $162,000,000, 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, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Medical programs..................         159         144         132
00.06 National cemeteries...............          18          22          18
00.07 Staff Offices.....................           3           5           5
00.08 Replacement or renovation of 
        regional offices................           4           5           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........         184         176         163
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          53          44          28
22.00 New budget authority (gross)......         175         160         162
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         228         204         190
23.95 Total new obligations.............        -184        -176        -163
24.40 Unobligated balance available, end 
        of year.........................          44          28          27
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         175         160         162
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         223         231         236
73.10 Total new obligations.............         184         176         163
73.20 Total outlays (gross).............        -176        -171        -166
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         231         236         233
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          46          42          42
86.93 Outlays from discretionary 
        balances........................         130         129         124
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         176         171         166
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         175         160         162
90.00 Outlays...........................         176         171         166
---------------------------------------------------------------------------

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           2           2           2
25.2  Other services....................          19          17          14
26.0  Supplies and materials............           1           1           1
32.0  Land and structures...............         162         156         146
                                           ---------   ---------  ----------

[[Page 899]]


99.9    Total new obligations...........         184         176         163
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          45          80          80
---------------------------------------------------------------------------

                                [F-dash]

        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] $60,000,000, to remain available until expended. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0181-0-1-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................          37         143          60
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          37         143          60
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................                      53
22.00 New budget authority (gross)......          90          90          60
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          90         143          60
23.95 Total new obligations.............         -37        -143         -60
24.40 Unobligated balance available, end 
        of year.........................          53
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          90          90          60
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         155         150         229
73.10 Total new obligations.............          37         143          60
73.20 Total outlays (gross).............         -40         -64         -85
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         150         229         204
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          40          64          85
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          90          90          60
90.00 Outlays...........................          40          64          85
---------------------------------------------------------------------------

    In 2000, the Department plans to obligate $143 million 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.

                                [F-dash]

        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, $25,000,000, 
to remain available until expended. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0183-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................           5          34          25
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           5          34          25
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           4           9
22.00 New budget authority (gross)......          10          25          25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          14          34          25
23.95 Total new obligations.............          -5         -34         -25
24.40 Unobligated balance available, end 
        of year.........................           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          10          25          25
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          16          15          43
73.10 Total new obligations.............           5          34          25
73.20 Total outlays (gross).............          -4          -8         -17
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          15          43          51
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           4           8          17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          10          25          25
90.00 Outlays...........................           4           8          17
---------------------------------------------------------------------------

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

                                [F-dash]

      

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, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: parking leases           2           2           2
09.01 Capital Investment: parking 
        construction program............          16           3           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........          18           5           8
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          30          14          12
22.00 New budget authority (gross)......           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          17          15
23.95 Total new obligations.............         -18          -5          -8
24.40 Unobligated balance available, end 
        of year.........................          14          12           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

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          12          16          14
73.10 Total new obligations.............          18           5           8
73.20 Total outlays (gross).............         -15          -7          -7
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          16          14          15
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           3           3
86.93 Outlays from discretionary 
        balances........................          12           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          15           7           7
----------------------------------------------------------------------------

[[Page 900]]



    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...........................          12           4           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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
23.2  Direct obligations: Rental 
        payments to others..............           2           2           2
32.0  Reimbursable obligations: Land and 
        structures......................          16           3           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........          18           5           8
---------------------------------------------------------------------------

                                [F-dash]

                      Pershing Hall Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4018-0-3-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1           1           1
23.95 Total new obligations.............
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. 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.

                                [F-dash]


 
                       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, [$912,594,000] $1,061,854,000: Provided, That expenses 
for services and assistance authorized under 38 U.S.C. 3104(a)(1), (2), 
(5) and (11) that the Secretary determines are necessary to enable 
entitled veterans (1) to the maximum extent feasible, to become 
employable and to obtain and maintain suitable employment; or (2) to 
achieve maximum independence in daily living, shall be charged to this 
account: Provided further, That of the funds made available under this 
heading, not to exceed [$45,600,000] $53,093,000 shall be available 
until September 30, [2001] 2002: Provided further, 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, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Veterans benefits:
00.04     Compensation and pensions.....         510         555         645
00.05     Education.....................          68          65          69
00.06     Vocational rehabilitation and 
            counseling..................          72          82         118
00.09     Insurance\1\..................           3           3           3
00.11     General administration........         227         236         227
                                           ---------   ---------  ----------
01.00   Total Direct Program............         880         941       1,062
      Reimbursable program:

09.01   Administration of housing credit 
          programs......................         160         157         167
09.02   Administration of other credit 
          programs......................           1           1           1
09.03   Administration of insurance 
          programs......................          35          37          37
09.04   Other reimbursable programs.....          99         120          91
                                           ---------   ---------  ----------
09.99     Total reimbursable program....         295         315         296
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,175       1,256       1,358
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,177       1,256       1,358
23.95 Total new obligations.............      -1,175      -1,256      -1,358
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

        Appropriation:
40.00     Appropriation.................         856         913       1,032
40.00     Discretionary appropriation 
            for certain vocational 
            rehabilitation and 
            employment activities.......                                  30
40.75   Reduction pursuant to P.L. 106-
          51............................          -2
42.00   Transferred from other accounts.          28          28
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         882         941       1,062
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         295         315         296
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,177       1,256       1,358
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         136         142         139
73.10 Total new obligations.............       1,175       1,256       1,358
73.20 Total outlays (gross).............      -1,161      -1,261      -1,369
73.40 Adjustments in expired accounts 
        (net)...........................          -8
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         142         139         127
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,034       1,118       1,231
86.93 Outlays from discretionary 
        balances........................         128         142         138
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,161       1,261       1,369
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -295        -315        -296
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         882         941       1,062
90.00 Outlays...........................         867         946       1,073
---------------------------------------------------------------------------
    \1\ The total cost of administering veterans insurance programs is 
funded through direct appropriations to this account, and through 
reimbursements from the insurance trust fund.

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

    Veterans benefits.--Determines eligibility and adjudicates all 
claims for compensation, pensions, educational assistance, housing loan 
assistance, and insurance awards. A summary

[[Page 901]]

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.

    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]

                                     1999 actual  2000 est.   2001 est.
Compensation:
  Rating-Related Actions \1\........         520         515         510
  Non Rating Actions \2\............         234         233         232
Pension:
  Rating-Related Actions \1\........         110         109         107
  Non Rating Actions \2\............         599         596         593
    \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]

                                     1999 actual  2000 est.   2001 est.
Education:
  Original claims...................         140         137         149
  Adjustments/supplemental claims...         872         851         937

     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]

                                     1999 actual  2000 est.   2001 est.
Loan guaranty:
  Construction and valuation........         334         315         290
  Loan processing...................       1,039         821         790
  Loan service and claims...........         265         275         290
  Property management...............          62          64          65

    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]

                                     1999 actual  2000 est.   2001 est.
Vocational rehabilitation and 
    counseling:
  Evaluation and planning...........          50          50          49
  Rehabilitation services...........          52          52          51
  Employment services status........          11          12          12
  Vocational/educational counseling.          12          12          12

    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]

                                     1999 actual  2000 est.   2001 est.
Insurance:
  Policy service actions............       1,080       1,084       1,013
  Collections.......................       3,217       3,085       2,911
  Disability claims.................          12          11          11
  Insurance awards..................         930       1,201         558

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         494         543         580
11.5      Other personnel compensation..          12          12          12
                                           ---------   ---------  ----------
11.9        Total personnel compensation         506         555         592
12.1    Civilian personnel benefits.....         110         122         136
13.0    Benefits for former personnel...           1           1           2
        Travel and transportation of 
            persons:
21.0      Employee travel...............          10          15          14
21.0      Interagency motor pool 
            payments....................           2           2           2
22.0    Transportation of things........           2           2           2
23.1    Rental payments to GSA..........          69          77          79
23.2    Rental payments to others.......          14           7           6
23.3    Communications, utilities, and 
          miscellaneous charges.........          23          37          47
24.0    Printing and reproduction.......           2           2           3
25.2    Other services..................         101          97         140
26.0    Supplies and materials..........          11          11          10
31.0    Equipment.......................          29          13          29
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         880         941       1,062
99.0  Reimbursable obligations..........         295         315         296
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,175       1,256       1,358
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment\1\...      10,510      10,907      11,317
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       3,125       3,157       2,941
---------------------------------------------------------------------------
    \1\ Reflects FTE treated as reimbursements in all years and the 
effects of Credit Reform, per P.L. 101-508.

                                [F-dash]

                       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, 
[$43,200,000: 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''] $46,464,000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct program....................          36          43          46
09.00 Reimbursable program..............           2           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          38          46          49
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          38          46          49
23.95 Total new obligations.............         -38         -46         -49
----------------------------------------------------------------------------

[[Page 902]]



    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          36          43          46
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           2           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          38          46          49
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           7           8           8
73.10 Total new obligations.............          38          46          49
73.20 Total outlays (gross).............         -37         -46         -50
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           8           8           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          34          43          47
86.93 Outlays from discretionary 
        balances........................           3           2           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          37          46          50
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................          36          43          46
90.00 Outlays...........................          35          43          47
---------------------------------------------------------------------------

    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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          23          27          29
12.1    Civilian personnel benefits.....           5           6           7
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.1    Rental payments to GSA..........           2           2           2
25.2    Other services..................           2           6           6
31.0    Equipment.......................           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          36          43          46
99.0  Reimbursable obligations..........           2           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          38          46          49
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         319         360         369
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          23          24          24
---------------------------------------------------------------------------

                                [F-dash]

                    National Cemetery Administration

                     [(including transfer of funds)]

    For necessary expenses for the maintenance and operation of the 
National Cemetery Administration, not otherwise provided for, including 
uniforms or allowances therefor; cemeterial expenses as authorized by 
law; purchase of two passenger motor vehicles for use in cemeterial 
operations; and hire of passenger motor vehicles, [$97,256,000: 
Provided, That of the amount made available under this heading, not to 
exceed $117,000 may be transferred to and merged with the appropriation 
for ``General operating expenses''] $109,889,000. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2000.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct obligations................          92          97         110
                                           ---------   ---------  ----------
10.00   Total new obligations...........          92          97         110
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          92          97         110
23.95 Total new obligations.............         -92         -97        -110
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          92          97         110
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          13          15          17
73.10 Total new obligations.............          92          97         110
73.20 Total outlays (gross).............         -89         -94        -111
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          15          17          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          79          83          97
86.93 Outlays from discretionary 
        balances........................          10          11          14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          89          94         111
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          92          97         110
90.00 Outlays...........................          89          94         111
---------------------------------------------------------------------------

    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 Nation's 
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.

    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.

[[Page 903]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          41          44          47
11.3    Other than full-time permanent..           7           8           9
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          48          52          56
12.1  Civilian personnel benefits.......          13          14          15
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           5           6           5
25.2  Other services....................           9          12          19
26.0  Supplies and materials............           7           7           8
31.0  Equipment.........................           8           4           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........          92          97         110
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,357       1,406       1,453
---------------------------------------------------------------------------

                                [F-dash]

Intragovernmental funds:

                               Supply Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program-COGS-
        Merchandizing...................         425         603         627
09.02 Reimbursable program-Other-
        Operations......................          40          48          48
09.03 Reimbursable program-COGS-Printing 
        and Publications................           6          10          10
09.04 Reimbursable program-Other........           1           1           1
09.05 Reimbursable program-Equipment-
        Procurement Services and 
        Distribution....................           5           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         477         664         688
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         132         152         152
22.00 New budget authority (gross)......         495         664         688
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         627         816         840
23.95 Total new obligations.............        -477        -664        -688
24.40 Unobligated balance available, end 
        of year.........................         152         152         152
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         573         664         688
69.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -78
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         495         664         688
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year         -32         -23         -23
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         366         288         288
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         334         265         265
73.10 Total new obligations.............         477         664         688
73.20 Total outlays (gross).............        -546        -664        -688
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         -23         -23         -23
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         288         288         288
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         265         265         265
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         495         664         688
86.98 Outlays from mandatory balances...          51
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         546         664         688
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -573        -664        -688
      Against gross budget authority only:

88.95   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............          78
----------------------------------------------------------------------------

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

    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 2001, Supply Fund sales are 
estimated to reach $650 million. Average inventory needed to support 
those sales will be $30 million.

    Operating results.--The Fund operated at a loss of $4 million in 
1999. The new total of retained earnings is $67 million. Operating 
expense as related to sales was 9 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          19          22          22
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          20          23          23
12.1  Civilian personnel benefits.......           4           4           5
21.0  Travel and transportation of 
        persons.........................           3           3           3
22.0  Transportation of things..........           1           1           2
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          12          11
26.0  Supplies and materials............         277         327         340
31.0  Equipment.........................         152         280         290
                                           ---------   ---------  ----------
99.9    Total new obligations...........         477         664         688
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         357         385         385
---------------------------------------------------------------------------

                                [F-dash]

                             Franchise Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............         102         135         150
                                           ---------   ---------  ----------
10.00   Total new obligations...........         102         135         150
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           7          18          18
22.00 New budget authority (gross)......         113         135         150
                                           ---------   ---------  ----------

[[Page 904]]


23.90   Total budgetary resources 
          available for obligation......         120         153         168
23.95 Total new obligations.............        -102        -135        -150
24.40 Unobligated balance available, end 
        of year.........................          18          18          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         113         135         150
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          26          16          16
73.10 Total new obligations.............         102         135         150
73.20 Total outlays (gross).............        -111        -135        -150
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          16          16          16
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         111         135         150
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -113        -135        -150
----------------------------------------------------------------------------

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

    VA was chosen as a pilot Franchise Fund agency under the Government 
Management and Reform Act, P.L. 103-356, of 1994. Established in 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 $150 million and 
employ 1,034 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      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          31          41          46
12.1  Civilian personnel benefits.......           6           8           9
21.0  Travel and transportation of 
        persons.........................           1           1           1
22.0  Transportation of things..........                       1           1
23.1  Rental payments to GSA............           3           4           4
23.3  Communications, utilities, and 
        miscellaneous charges...........          21          27          30
25.2  Other services....................          34          45          50
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................           5           6           7
                                           ---------   ---------  ----------
99.9    Total new obligations...........         102         135         150
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         644         679       1,034
---------------------------------------------------------------------------

                                [F-dash]


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         1999 actual   2000 est.   2001 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  36-246800  Pharmaceutical copayments..                                 167
  36-247300  Contributions from military 
    personnel, Veteran's Educational 
    Assistance Act of 1984..............         168         186         189
  36-273330  GIF direct loans, downward 
    reestimate of subsidies.............         619         730
  36-310400  Medical care collections...                                 116
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         787         916         472
----------------------------------------------------------------------------
Intragovernmental payments:
  36-246400  DOD tricare reimbursement..                                  67
                                           ---------   ---------  ----------
General Fund Intragovernmental payments.                                  67
---------------------------------------------------------------------------

                                [F-dash]

                        Administrative Provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for fiscal year [2000] 2001 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 PVeterans 
Affairs for fiscal year [2000] 2001 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 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 PVeterans 
Affairs for fiscal year [2000] 2001 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 
[1999] 2000.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year [2000] 2001 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''] 
and ``Pension''.
    Sec. 107. Notwithstanding any other provision of law, during fiscal 
year [2000] 2001, 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 [2000] 2001, 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 [2000] 2001, 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. Beginning in fiscal year 2001, and thereafter, funds 
available in any Department of Veterans Affairs appropriation or fund 
for salaries and other administrative expenses shall also be available 
to reimburse the Office of Resolution Management and the Office of 
Employment Discrimination Complaint Adjudication for all services 
provided at rates which will recover actual costs. Payments may be made 
in advance for services to be furnished based on estimated costs. 
Amounts received shall be credited to the General Operating Expenses 
account for use by the office that provided the service.

[[Page 905]]

    [Sec. 108. (a) In General.--The Congress supports efforts to 
implement improvements in health care services for veterans in rural 
areas.
    (b) Report Required.--(1) Not later than 6 months after the date of 
the enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committees on Veterans' Affairs of the Senate and the 
House of Representatives a report on the impact of the allocation of 
funds under the Veterans Equitable Resource Allocation (VERA) funding 
formula on the rural subregions of the health care system administered 
by the Veterans Health Administration.
    (2) The report shall include the following:
        (A) An assessment of impact of the allocation of funds under the 
    VERA formula on--
                (i) travel times to veterans health care in rural areas;
                (ii) waiting periods for appointments for veterans 
            health care in rural areas;
                (iii) the cost associated with additional community-
            based outpatient clinics;
                (iv) transportation costs; and
                (v) the unique challenges that Department of Veterans 
            Affairs medical centers in rural, low-population subregions 
            face in attempting to increase efficiency without large 
            economies of scale.
        (B) The recommendations of the Secretary, if any, on how rural 
    veterans' access to health care services might be enhanced.]
    [Sec. 109. The Secretary of Veterans Affairs may carry out a major 
medical facility project to renovate and construct facilities at the 
Olin E. Teague Department of Veterans Affairs Medical Center, Temple, 
Texas, for a joint venture Cardiovascular Institute, in an amount not to 
exceed $11,500,000. In order to carry out that project, the amount of 
$11,500,000 appropriated for fiscal year 1998 and programmed for the 
renovation of Building 9 at the Waco, Texas, Department of Veterans 
Affairs Medical Center is hereby made available for that project.]
    [Sec. 110. Notwithstanding any other provision of this Act, none of 
the funds appropriated or otherwise made available in this Act for the 
Medical Care appropriation of the Department of Veterans Affairs may be 
obligated for the realignment of the health care delivery system in VISN 
12 until 60 days after the Secretary of Veterans Affairs certifies that 
the department has: (1) consulted with veterans organizations, medical 
school affiliates, employee representatives, State veterans and health 
associations, and other interested parties with respect to the 
realignment plan to be implemented; and (2) made available to the 
Congress and the public information from the consultations regarding 
possible impacts on the accessibility of veterans health care services 
to affected veterans.]
    Sec. 109. Title 38, United States Code, is amended as follows:
    (a) Section 1710B(e) is amended to read:
    ``(e) All amounts received by the Department under this section 
shall be deposited in the Department of Veterans Affairs Medical Care 
Collections Fund.''.
    (b) Section 1722A(c), as amended, is further amended by deleting the 
second sentence.
    (c) Section 1729A is amended:
        (1) in subsection (b) by:
            (A) redesignating paragraphs (3), (4), (5), and (6) as (4), 
        (5), (6), and (8) respectively:
            (B) inserting a new paragraph (3) to read:
                ``(3) Section 1710B of this title.'';
            (C) inserting a new paragraph (7) after paragraph (6) (as 
        redesignated above), to read:
                ``(7) Section 8165(a) of this title.''; and
            (D) inserting a new paragraph (9) at the end, to read:
                ``(9) Section 113 of Public Law 106-117, the Veterans 
            Millennium Health Care and Benefits Act.''.
        (2) in subsection (c)(1) by: (a) deleting the phrase, ``Subject 
    to the provisions of appropriation Acts, amounts''; (b) inserting in 
    lieu thereof, ``Fifty percent of the first $700,000,000 received or 
    collected each fiscal year under the provisions referred to in 
    subsection (b), shall be transferred to the general fund of the 
    Treasury. Remaining amounts''; and (c) inserting ``and without 
    further appropriation'' after ``limitation.''
        (3) deleting subsection (f).
    (d)(1) Section 1729B is repealed.
    (2) The table of sections at the beginning of chapter 17 is amended 
by striking out the item relating to section 1729B.
    (e) Section 8165(a) is amended to read:
    ``(a)(1) Funds received by the Department under an enhanced-use 
lease and remaining after any deduction from those funds under 
subsection (b) shall be deposited in the Department of Veterans Affairs 
Medical Care Collections Fund.
        ``(2) Funds received by the Department from a disposal of leased 
    property under section 8164 of this title and remaining after any 
    deduction from such funds under the laws referred to in subsection 
    (c) shall be deposited in the Department of Veterans Affairs Medical 
    Care Collections Fund.''.
    (f) Section 113(b) of the Veterans Millennium Health Care and 
Benefits Act, Pub. L. No. 106-117, is amended by striking ``Health 
Services Improvement Fund established under section 1729B of title 38, 
United States Code, as added by section 202'' and inserting in lieu 
thereof, ``Department of Veterans Affairs Medical Care Collections 
Fund''.
    (g) Any amounts deposited in the Department of Veterans Affairs 
Health Services Improvement Fund or the Extended Care Fund shall be 
transferred to and merged with the Medical Care Collections Fund, to be 
available subject to the terms and conditions of such Fund. (Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2000.)

                                [F-dash]


 
                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of this Act 
are expendable for travel expenses and no specific limitation has been 
placed thereon, the expenditures for such travel expenses may not exceed 
the amounts set forth therefore in the budget estimates submitted for 
the appropriations: Provided, That this provision does not apply to 
accounts that do not contain an object classification for travel: 
Provided further, That this section shall not apply to travel performed 
by uncompensated officials of local boards and appeal boards of the 
Selective Service System; to travel performed directly in connection 
with care and treatment of medical beneficiaries of the Department of 
Veterans Affairs; to travel performed in connection with major disasters 
or emergencies declared or determined by the President under the 
provisions of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act; to travel performed by the Offices of Inspector General 
in connection with audits and investigations; or to payments to 
interagency motor pools where separately set forth in the budget 
schedules: Provided further, That if appropriations in titles I, II, and 
III exceed the amounts set forth in budget estimates initially submitted 
for such appropriations, the expenditures for travel may correspondingly 
exceed the amounts therefore set forth in the estimates in the same 
proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban Development and the 
Selective Service System shall be available in the current fiscal year 
for purchase of uniforms, or allowances therefor, as authorized by 5 
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as 
authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for services and 
facilities of Federal National Mortgage Association, Government National 
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal 
Financing Bank, Federal Reserve banks or any member thereof, Federal 
Home Loan banks, and any insured bank within the meaning of the Federal 
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
        (1) pursuant to a certification of an officer or employee of the 
    United States unless--
                (A) such certification is accompanied by, or is part of, 
            a voucher or abstract which describes the payee or payees 
            and the items or services for which such expenditure is 
            being made; or
                (B) the expenditure of funds pursuant to such 
            certification, and without such a voucher or abstract, is 
            specifically authorized by law; and
        (2) unless such expenditure is subject to audit by the PGeneral 
    Accounting Office or is specifically exempt by law from such audit.

[[Page 906]]

    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 24 months prior to the date on which the 
list is made available to the public and of all contracts on which 
performance has not been completed by such date. The list required by 
the preceding sentence shall be updated quarterly and shall include a 
narrative description of the work to be performed under each such 
contract.
    Sec. 411. Except as otherwise provided by law, no part of any 
appropriation contained in this Act shall be obligated or expended by 
any executive agency, as referred to in the Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for 
services unless such executive agency: (1) has awarded and entered into 
such contract in full compliance with such Act and the regulations 
promulgated thereunder; and (2) requires any report prepared pursuant to 
such contract, including plans, evaluations, studies, analyses and 
manuals, and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared pursuant to 
such contract, to contain information concerning: (A) the contract 
pursuant to which the report was prepared; and (B) the contractor who 
prepared the report pursuant to such contract.
    Sec. 412. Except as otherwise provided in section 406, none of the 
funds provided in this Act to any department or agency shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of such department or 
agency.
    Sec. 413. None of the funds provided in this Act to any department 
or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per 
gallon average of less than 22 miles per gallon.
    [Sec. 414. None of the funds appropriated in title I of this Act 
shall be used to enter into any new lease of real property if the 
estimated annual rental is more than $300,000 unless the Secretary 
submits, in writing, a report to the Committees on Appropriations of the 
Congress and a period of 30 days has expired following the date on which 
the report is received by the Committees on Appropriations.]
    Sec. [415] 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 [2000] 
2001 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 [2000] 2001 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 [2000] 2001 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. It is the sense of the Congress that, along with 
health care, housing, education, and other benefits, the presence of an 
honor guard at a veteran's funeral is a benefit that a veteran has 
earned, and, therefore, the executive branch should provide funeral 
honor details for the funerals of veterans when requested, in accordance 
with law.
    Sec. [423] 422. Notwithstanding any other law, funds made available 
by this or any other Act or previous Acts for the George E. Brown United 
States/Mexico Foundation for Science may be used for the endowment of 
such Foundation: Provided, That funds from the United States Government 
shall be matched in equal amounts with funds from Mexico: Provided 
further, That the accounts of such Foundation shall be subject to United 
States Government administrative and audit requirements concerning 
grants and requirements concerning cost principles for nonprofit 
organizations[: Provided further, That the United States/Mexico 
Foundation for Science is renamed the ``George E. Brown United States/
Mexico Foundation for Science''].
    Sec. 423. NASA Full Cost Accounting. Title III of the National 
Aeronautics and Space Act of 1958, P.L. 85-568, is amended by adding the 
following new section at the end:
    ``Section 312. (a) Appropriations for the Administration for fiscal 
year 2002 and thereafter shall be made in three accounts, ``Human Space 
Flight'', ``Science, Aeronautics and Technology,'' and an account for 
amounts appropriated for the necessary expenses of the Office of 
Inspector General. Appropriations shall remain available for two fiscal 
years. Each account shall include the planned full costs of the 
Administration's related activities.
    ``(b) To ensure the safe, timely, and successful accomplishment of 
Administration missions, the Administration may transfer amounts for 
Federal salaries and benefits; training, travel and awards; facility and 
related costs; information technology services; publishing services; 
science, engineering, fabricating and testing services; and other 
administrative services among accounts, as necessary.
    ``(c) The Administrator, in consultation with the Director of the 
Office of Management and Budget, shall determine what balances from the 
``Mission Support'' account are to be transferred to the ``Human Space 
Flight'' and ``Science, Aeronautics, and Technology'' accounts. Such 
balances shall be transferred and merged with the

[[Page 907]]

``Human Space Flight'' and ``Science, Aeronautics, and Technology'' 
accounts, and remain available for the period of which originally 
appropriated.''
    [Sec. 424. None of the funds made available in this Act may be used 
to carry out Executive Order No. 13083.]
    [Sec. 425. 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. 426. Except in the case of entities that are funded solely 
with Federal funds or any natural persons that are funded under this 
Act, none of the funds in this Act shall be used for the planning or 
execution of any program to pay the expenses of, or otherwise 
compensate, non-Federal parties to lobby or litigate in respect to 
adjudicatory proceedings funded in this Act. A chief executive officer 
of any entity receiving funds under this Act shall certify that none of 
these funds have been used to engage in the lobbying of the Federal 
Government or in litigation against the United States unless authorized 
under existing law.]
    [Sec. 427. Law Enforcement Agencies Not Included as Owner or 
Operator. Section 101(20)(D) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601(20)(D)) is amended by inserting ``through seizure or otherwise in 
connection with law enforcement activity'' before ``involuntary'' the 
first place it appears.]
    [Sec. 428. No part of any funds appropriated in this Act shall be 
used by an agency of the executive branch, other than for normal and 
recognized executive-legislative relationships, for publicity or 
propaganda purposes, and for the preparation, distribution or use of any 
kit, pamphlet, booklet, publication, radio, television or film 
presentation designed to support or defeat legislation pending before 
the Congress, except in presentation to the Congress itself.]
    [Sec. 429. The comment period on the proposed rules related to 
section 303(d) of the Clean Water Act published at 64 Federal Register 
46012 and 46058 (August 23, 1999) shall be extended from October 22, 
1999, for a period of 90 additional calendar days.]
    [Sec. 430. Section 4(a) of the Act of August 9, 1950 (16 U.S.C. 
777c(a)), is amended in the second sentence by striking ``1999'' and 
inserting ``2000''.]
    [Sec. 431. Promulgation of Stormwater Regulations. (a) Stormwater 
Regulations.--The Administrator of the Environmental Protection Agency 
shall not promulgate the Phase II stormwater regulations until the 
Administrator submits to the Committee on Environment and Public Works 
of the Senate and the Committee on Transportation and Infrastructure of 
the House of Representatives a report containing--
        (1) an in-depth impact analysis on the effect the final 
    regulations will have on urban, suburban, and rural local 
    governments subject to the regulations, including an estimate of--
                (A) the costs of complying with the six minimum control 
            measures described in the regulations; and
                (B) the costs resulting from the lowering of the 
            construction threshold from 5 acres to 1 acre;
        (2) an explanation of the rationale of the Administrator for 
    lowering the construction site threshold from 5 acres to 1 acre, 
    including--
                (A) an explanation, in light of recent court decisions, 
            of why a 1-acre measure is any less arbitrarily determined 
            than a 5-acre measure; and
                (B) all qualitative information used in determining an 
            acre threshold for a construction site;
        (3) documentation demonstrating that stormwater runoff is 
    generally a problem in communities with populations of 50,000 to 
    100,000 (including an explanation of why the coverage of the 
    regulation is based on a census-determined population instead of a 
    water quality threshold); and
        (4) information that supports the position of the Administrator 
    that the Phase II stormwater program should be administered as part 
    of the National Pollutant Discharge Elimination System under section 
    402 of the Federal Water Pollution Control Act (33 U.S.C. 1342).]
    [(b) Phase I Regulations.--No later than 120 days after the 
enactment of this Act, the Environmental Protection Agency shall submit 
to the Environment and Public Works Committee of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report containing a detailed explanation of the 
impact, if any, that the Phase I program has had in improving water 
quality in the United States (including a description of specific 
measures that have been successful and those that have been 
unsuccessful).
    (c) Federal Register.--The reports described in subsections (a) and 
(b) shall be published in the Federal Register for public comment.
    Sec. 432. Pesticide Tolerance Fees. None of the funds appropriated 
or otherwise made available by this Act shall be used to promulgate a 
final regulation to implement changes in the payment of pesticide 
tolerance processing fees as proposed at 64 Fed. Reg. 31040, or any 
similar proposals. The Environmental Protection Agency may proceed with 
the development of such a rule.
    Sec. 433. Commercial Space Launch Indemnification Extension. Section 
70113(f ) of title 49, United States Code, is amended by striking 
``December 31, 1999'', and inserting ``December 31, 2000''.
    Sec. 434. Space Station Commercial Development PDemonstration 
Program. (a) Purpose.--The purpose of this section is to establish a 
demonstration regarding the commercial feasibility and economic 
viability of private sector business operations involving the 
International Space Station and its related infrastructure. The goal 
will be furthered by the early use of the International Space Station by 
United States commercial entities committing private capital to 
commercial enterprises on the International Space Station. In 
conjunction with this demonstration program, the National Aeronautics 
and Space Administration (NASA) shall establish and publish a price 
policy designed to eliminate price uncertainty for those planning to 
utilize the International Space Station and its related facilities for 
United States commercial use.
    (b) Use of Receipts for Commercial Use.--Any receipts collected by 
NASA from the commercial use of the International Space Station shall 
first be used to offset any costs incurred by NASA in support of the 
United States commercial use of the International Space Station. Any 
receipts collected in excess of the costs identified pursuant to the 
prior sentence may be retained by NASA for use without fiscal year 
limitation in promoting the commercial use of the International Space 
Station.]
    [(c) Report.--NASA shall submit an annual report to the PCongress 
that identifies all receipts that are collected under this section, the 
use of the receipts and the status of the demonstration. NASA shall 
submit a final report on the status of the demonstration, including any 
recommendation for expansion, within 120 days of the completion of the 
assembly of the International Space Station or the end of fiscal year 
2004, whichever is earlier.]
    [(d) Definitions.--As used in this section, the term ``United States 
commercial use'' means private commercial projects that are designed to 
benefit the United States through the sales of goods or services or the 
creation of jobs, or both.]
    [(e) Termination.--The demonstration program established under this 
section shall apply to United States commercial use agreements that are 
entered into prior to the date of the completion of the International 
Space Station or the end of the fiscal year 2004, whichever is earlier.]
    [Sec. 435. Insurance; Indemnification; Liability. (a) Amendment.--
The National Aeronautics and Space Act of 1958 (42 U.S.C. 2451 et seq.) 
is amended by inserting after section 308 the following new section:]

                   [``experimental aerospace vehicle]

        [``(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 this Act 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

[[Page 908]]

            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.--
    PNotwithstanding 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 
    this Act, 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 or 
    cooperating party and with the related entities of that developer or 
    cooperating party 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, the cooperating party, or 
            their respective 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, the cooperating party, or their respective 
            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 or cooperating 
            party, 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) Cooperating party.--The term `cooperating party' means any 
    person who enters into an agreement with the Administration for the 
    performance of cooperative scientific, aeronautical, or space 
    activities to carry out the purposes of this Act.
        ``(2) Developer.--The term `developer' means a United States 
    person (other than a natural person) who--]
                [``(A) is a party to an agreement 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.]
        [``(3) Experimental aerospace vehicle.--The term `experimental 
    aerospace vehicle' means an object intended to be flown in, or 
    launched into, orbital or suborbital flight for the purpose of 
    demonstrating technologies necessary for a reusable launch vehicle, 
    developed under an agreement between the Administration and a 
    developer.]
        [``(4) 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.--This section does not apply to any object, 
    transaction, or operation to which section 308 of this Act 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.''.]
    (b) Repeal.--Section 431 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1999 (Public Law 105-276) is repealed. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2000.)
    [Sec. 242. (a) The seventh paragraph under the heading ``Community 
Development Block Grants'' in title II of H.R. 2684 (Public Law 106-74) 
is amended by striking the figure making individual grants for targeted 
economic investments and inserting ``$250,175,000'' in lieu thereof.]
    [(b) The statement of the managers of the committee of conference 
accompanying H.R. 2684 (Public Law 106-74; House Report No. 106-379) is 
deemed to be amended under the heading ``Community Development Block 
Grants'' to include in the description of targeted economic development 
initiatives the following:
        ``--$500,000 to Saint John's County, Florida for water, 
    wastewater, and sewer system improvements;
        ``--$1,000,000 to the City of San Dimas, California for 
    structural improvements, earthquake reinforcement, and compliance 
    with the Americans with Disabilities Act, to the Walker House;
        ``--$2,000,000 to the City of Youngstown in Youngstown, Ohio for 
    site acquisition, planning, architectural design, and preliminary 
    construction activities of a convocation/community center;
        ``--$875,000 to Chippewa County, Wisconsin for development of 
    the Lake Wissota Business Park;
        ``--$1,500,000 to Lake Marion Regional Water Agency in South 
    Carolina, for continued development of water supply needs;
        ``--$650,000 to Santa Fe County, New Mexico, for the Santa Fe 
    Regional Water Management and River Restoration Strategy (including 
    activities of partner governments and agencies);
        ``--$650,000 to the Dunbar Community Center in Springfield, 
    Massachusetts to expand its facilities''.] (Miscellaneous 
    Appropriations, 2000 as enacted by section 1000(a)(5) of the 
    Consolidated Appropriations Act, 2000 (P.L. 106-113.).