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


                     THE BUDGET FOR FISCAL YEAR 2002

 
                     DEPARTMENT OF VETERANS AFFAIRS

    The 2002 budget provides $23,378 million in discretionary funding 
for veterans health, benefits, and other services, including $23,998 
million in gross discretionary budget authority and $620 million in 
anticipated discretionary medical collections.

    This funding level recognizes that an estimated $235 million of 
current medical care liabilities will shift to the Department of Defense 
due to new benefits available to military retirees over age 64.

    The account by account information provided in the following budget 
schedules is supplemented by a department-wide strategic plan, published 
in September 2000, a performance plan submitted annually with the 
Budget, and an annual performance 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 plan 
highlights approximately 35 key measures that VA's top executives 
consider critical to the success of the Department. The performance 
report includes actual program performance as measured against goals.

                                


 
                     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., [$20,281,587,000] $20,979,742,000, plus reimbursements[: Provided, 
That of the funds made available under this heading, $900,000,000], of 
which $675,000,000 is for the equipment and land and structures object 
classifications only, which amount shall not become available for 
obligation until August 1, [2001] 2002, and shall remain available until 
September 30, [2002: Provided further, That of the funds made available 
under this heading,] 2003; of which not to exceed [$500,000,000] 
$900,000,000 shall be available until September 30, [2002: Provided 
further, That of the funds made available under this heading, not to 
exceed $28,134,000 may be transferred to and merged with the 
appropriation for ``General operating expenses''] 2003; and of which, in 
addition to other funds made available under this heading for non-
recurring maintenance and repair (NRM) activities, $30,000,000 shall be 
available without fiscal year limitation to support the NRM activities 
necessary to implement Capital Asset Realignment for Enhanced Services 
(CARES) activities: Provided, That from amounts appropriated under this 
heading, additional amounts, as designated by the Secretary no later 
than September 30, 2002, may be used for CARES activities without fiscal 
year limitation: Provided further, That the Secretary of Veterans 
Affairs 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.
    [None of the foregoing funds may be transferred to the Department of 
Justice for the purposes of supporting tobacco litigation.] (Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 
106-377.)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............          51          60          60
    Receipts:
02.20 Medical care collections..........         573
02.21 MCCF first party collections......                     203         207
02.22 MCCF third party collections......                     405         413
02.23 Pharmaceutical copayments.........                                 120
02.24 Enhanced-use lease proceeds.......                                   1
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         573         608         741
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         624         668         801
    Appropriations:
05.00 Medical care......................        -564        -608        -741
                                           ---------   ---------  ----------
05.99   Total appropriations............        -564        -608        -741
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          60          60          60
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01       Acute hospital care.........       4,806       5,277       5,661
00.02       Rehabilitative care.........         363         381         394
00.03       Psychiatric care............       1,132       1,186       1,223
00.04       Nursing home care...........       1,807       1,940       2,106
00.05       Subacute care...............         347         325         303
00.06       Residential care............         357         391         424
00.07       Outpatient care.............       8,328       9,440       9,838
00.08       Miscellaneous benefits and 
              services..................         988       1,039       1,109
00.09     CHAMPVA.......................         125         142         172
                                           ---------   ---------  ----------
00.91       Total operating expenses....      18,253      20,121      21,230
        Capital investment:
          Provision of veterans health 
              care:
01.01       Acute hospital care.........         298         283         252
01.02       Rehabilitative care.........          21          21          18
01.03       Psychiatric care............          61          64          54
01.04       Nursing home care...........          61         104          94
01.05       Subacute care...............          18          18          13
01.06       Residential care............          15          21          19
01.07       Outpatient care.............         460         508         437
01.08       Miscellaneous benefits and 
              services..................          28          56          49
01.09     CHAMPVA (GPRA)................           2
                                           ---------   ---------  ----------

[[Page 882]]


01.91       Total capital investment....         964       1,075         936
                                           ---------   ---------  ----------
01.92     Total direct program..........      19,217      21,196      22,166
09.01 Reimbursable program..............         110         119         127
                                           ---------   ---------  ----------
10.00   Total new obligations...........      19,327      21,315      22,293
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,082       1,324         941
22.00 New budget authority (gross)......      19,572      20,929      21,848
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      20,654      22,256      22,792
23.95 Total new obligations.............     -19,327     -21,315     -22,293
23.98 Unobligated balance expiring or 
        withdrawn.......................          -3
24.40 Unobligated balance carried 
        forward, end of year............       1,324         941         499
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................      19,006      20,282      20,980
40.25   Appropriation (MCCF, indefinite)         564         608         620
40.75   Reduction pursuant to P.L. 106-
          113...........................         -80
40.77   Reduction pursuant to P.L. 106-
          554 (0.22 percent)............                     -46
41.00   Transferred to other accounts...         -28         -34
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............      19,462      20,810      21,600
      Mandatory:

60.25   Appropriation (special fund, 
          indefinite) Health Services 
          Improvement Fund).............                                 121
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         110         119         127
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      19,572      20,929      21,848
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................       2,572       2,448       3,034
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................       2,572       2,448       3,034
73.10 Total new obligations.............      19,327      21,315      22,293
73.20 Total outlays (gross).............     -19,359     -20,726     -21,859
73.40 Adjustments in expired accounts 
        (net)...........................         -91
73.45 Recoveries of prior year 
        obligations.....................                      -3          -3
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.       2,448       3,034       3,465
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year       2,448       3,034       3,465
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................      16,476      17,722      18,592
86.93 Outlays from discretionary 
        balances........................       2,883       3,004       3,158
86.97 Outlays from new mandatory 
        authority.......................                                 109
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      19,359      20,726      21,859
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -47         -51         -54
88.40     Non-Federal sources...........         -63         -68         -73
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -110        -119        -127
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      19,462      20,810      21,721
90.00 Outlays...........................      19,250      20,607      21,732
---------------------------------------------------------------------------

    For 2002, the budget process provides total resources for the VA 
Medical Care program of $21.7 billion, an increase of $1 billion ($0.8 
billion in medical care and $0.2 billion in collections) over the 2001 
level. This includes $21.0 billion in appropriated budget authority, 
$620 million to be collected in the Medical Care Collections Fund, $121 
million in anticipated collections from the Health Services Improvement 
Fund, and other available resources.

    The Veterans Millennium Health Care and Benefits Act, Public Law 
106-117, established the Health Services Improvement Fund. This fund 
serves as a depository for amounts received or collected under the 
following areas as authorized by 38 U.S.C. 1729B: (1) reimbursement from 
DoD for TRICARE--eligible military retirees; (2) enhanced-use lease 
proceeds; and (3) receipts attributable to increase in medication 
copayments. Amounts in the fund are intended to be used: (1) to 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.

                                WORKLOAD

    Provision of Veterans Health Care--
        Acute hospital care.--Costs for 2002 are estimated to increase 
    by $356 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:

                                     2000 actual  2001 est.   2002 est.
  Patients treated..................     423,570     415,357     408,387
  Average daily census..............       7,948       7,713       7,591
  Average employment................      51,082      49,323      47,897

        Rehabilitative care.--An increase of $10 million in 2002 is 
    estimated for the provision of rehabilitative care, including spinal 
    cord injury care.
        Estimated operating levels are:

                                     2000 actual  2001 est.   2002 est.
  Patients treated..................      14,837      14,095      13,531
  Average daily census..............       1,174       1,104       1,038
  Average employment................       4,482       4,220       3,960

        Psychiatric care.--An increase of $28 million is estimated in 
    2002 for the inpatient care of veterans with problems related to 
    mental illness, including alcohol and drug problems.
        Estimated operating levels are:

                                     2000 actual  2001 est.   2002 est.
  Patients treated..................     102,354      96,213      92,364
  Average daily census..............       4,517       4,200       3,900
  Average employment................      14,846      13,835      12,846

        Nursing home care.--In 2002, an increase of $156 million is 
    estimated for the care of residents in VA nursing homes, contract 
    nursing homes and State nursing homes.
        Estimated operating levels are:

                                     2000 actual  2001 est.   2002 est.
  Patients treated..................      84,136      83,276      84,733
  Average daily census..............      30,740      31,632      33,391
  Average employment................      20,081      20,440      20,766

        Noninstitutional extended care.--Included in outpatient 
    estimates in 2002 is an increase of $43 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:
                                     2000 actual  2001 est.   2002 est.
Average daily census................      21,582      23,546      28,812

        Subacute care.--A decrease of $28 million is estimated in 2002 
    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:

                                     2000 actual  2001 est.   2002 est.
Patients treated....................      44,097      37,482      33,500
Average daily census................       1,977       1,582       1,345
Average employment..................       4,881       3,907       3,322

        Residential care.--An increase of $31 million is estimated in 
    2002 for the care of veterans in locations other than their own 
    homes, such as residential rehabilitation and domiciliary care 
    programs.

[[Page 883]]

        Estimated operating levels are:

                                     2000 actual  2001 est.   2002 est.
Patients treated....................      48,876      48,007      48,044
Average daily census................      10,407      10,763      11,120
Average employment..................       4,628       4,643       4,718

        Outpatient care.--An increase of $330 million is estimated in 
    2002 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

                                     2000 actual  2001 est.   2002 est.
  Medical visits (in thousands):
  Staff visits......................      36,448      37,699      37,600
  Fee visits........................       1,922       2,120       2,184
  Readjustment counseling...........         896         850         850
                                    ------------------------------------
        Total.......................      39,266      40,669      40,634
                                    ====================================
  Dental:
    Staff:
      Examinations..................     292,396     293,000     293,000
      Treatments....................     143,880     144,000     144,000
                                    ------------------------------------
        Total.......................     436,276     437,000     437,000
                                    ====================================
    Fee: Cases completed............      12,049      12,650      12,650
                                    ====================================
  Average employment................      72,028      77,932      78,796
                                    ====================================

        Miscellaneous benefits and services.--An increase of $64 million 
    is estimated in 2002 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.

                                     2000 actual  2001 est.   2002 est.
  Average employment................       7,312       7,020       6,809

        Civilian health and medical program of the Department of 
    Veterans Affairs (CHAMPVA).--An increase of $30 million is estimated 
    in 2002 for private hospital and outpatient care for dependents and 
    survivors of certain veterans.
        Estimated operating levels are:

                                     2000 actual  2001 est.   2002 est.
  Average daily hospital census.....         137         122         117
  Outpatient (in thousands).........   1,155,059   1,197,792   1,372,161
  Average employment................         180         180         186

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       6,950       7,352       7,598
11.3      Other than full-time permanent         907         959         991
11.5      Other personnel compensation..         857         906         936
                                           ---------   ---------  ----------
11.9        Total personnel compensation       8,714       9,217       9,525
12.1    Civilian personnel benefits.....       2,157       2,343       2,416
13.0    Benefits for former personnel...          61          66          68
        Travel and transportation of 
            persons:
21.0      Employee travel...............          52          55          65
21.0      Beneficiary travel............         114         123         123
21.0      Interagency motor pool 
            payments....................          16          16          17
21.0      All other.....................          34          37          38
22.0    Transportation of things........          22          26          27
23.1    Rental payments to GSA..........          11          12          12
23.2    Rental payments to others.......          62          65          69
23.3    Communications, utilities, and 
          miscellaneous charges.........         522         598         616
24.0    Printing and reproduction.......          12          14          14
25.2    Other contractual services......       1,730       2,068       2,165
        Medical care:
25.6      Outpatient dental fees........          13          14          14
25.6      Medical and nursing fees......         355         416         433
25.6      Community nursing homes.......         202         223         261
25.6      Contract hospitalization......         215         242         263
25.6      Civilian Health and Medical 
            Program of the Department of 
            Veterans Affairs............         116         130         160
        Supplies and materials:
26.0      Supplies and materials........       3,436       4,005       4,467
26.0      Provisions....................          75          75          73
31.0    Equipment.......................         687         775         606
32.0    Land and structures.............         276         300         330
        Grants, subsidies, and 
            contributions:
41.0      Grants, subsidies, and 
            contributions...............         318         343         369
41.0      Grants to private 
            organizations...............          15          31          33
43.0    Interest and dividends..........           2           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..      19,217      21,196      22,166
99.0  Reimbursable obligations..........         110         119         127
                                           ---------   ---------  ----------
99.9    Total new obligations...........      19,327      21,315      22,293
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......     178,462     180,372     178,154
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       1,058       1,128       1,146
---------------------------------------------------------------------------

                                

                     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, [2002, $351,000,000] 2003, 
$360,237,000, plus reimbursements. (Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Operating expenses:
00.01     Medical research..............         209         219         218
00.02     Rehabilitation research.......          25          30          31
00.03     Health services research......          41          43          45
00.04     Cooperative studies research..          37          45          45
                                           ---------   ---------  ----------
00.91       Total operating expenses....         312         337         339
        Capital investment:
01.01     Medical research..............           7          12          12
01.02     Rehabilitation research.......           2           3           3
01.03     Health services research......           2           3           2
01.04     Cooperative studies research..           2           4           4
                                           ---------   ---------  ----------
01.91       Total capital investment....          13          22          21
                                           ---------   ---------  ----------
01.92     Total direct program..........         325         359         360
09.01 Reimbursable program..............          27          33          33
                                           ---------   ---------  ----------
10.00   Total new obligations...........         352         392         393
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          28          23          15
22.00 New budget authority (gross)......         348         383         393
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         376         406         408
23.95 Total new obligations.............        -352        -392        -393
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............          23          15          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         321         351         360
40.77   Reduction pursuant to P.L. 106-
          554 (0.22 percent)............                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         321         350         360
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          27          33          33
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         348         383         393
----------------------------------------------------------------------------

[[Page 884]]



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

72.40   Unpaid obligations, start of 
          year..........................         110         102         119
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         110         102         119
73.10 Total new obligations.............         352         392         393
73.20 Total outlays (gross).............        -357        -375        -390
73.40 Adjustments in expired accounts 
        (net)...........................          -3
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         102         119         122
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         102         119         122
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         258         290         297
86.93 Outlays from discretionary 
        balances........................          99          85          93
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         357         375         390
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -27         -33         -33
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         321         350         360
90.00 Outlays...........................         329         342         357
---------------------------------------------------------------------------

    The Medical and Prosthetic Research account is an intramural program 
whose mission is to acquire 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 
Federal Science & Technology (FS&T) budget.

                     SUMMARY OF BUDGETARY RESOURCES

                        [In millions of dollars]

                                     2000 actual  2001 est.   2002 est.
Medical and prosthetic research 
appropriation.......................         321         350         360
Medical care appropriation..........         345         376         387
Federal grants (NIH)................         356         349         351
Other grants (voluntary agencies, 
private proprietary)................         148         150         151
                                    ------------------------------------
      Total budgetary resources.....       1,170       1,225       1,249
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          51          52          53
11.3      Other than full-time permanent          89          90          91
11.5      Other personnel compensation..           5           5           5
                                           ---------   ---------  ----------
11.9        Total personnel compensation         145         147         149
12.1    Civilian personnel benefits.....          32          43          43
21.0    Employee travel.................           2           4           4
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.5    Research and development 
          contracts.....................         101         107         107
26.0    Supplies and materials..........          31          36          35
31.0    Equipment.......................          13          21          21
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         325         359         360
99.0  Reimbursable obligations..........          27          33          33
                                           ---------   ---------  ----------
99.9    Total new obligations...........         352         392         393
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,779       2,976       2,907
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......         235         270         260
---------------------------------------------------------------------------

                                

       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, [$62,000,000] $67,628,000, plus 
reimbursements: Provided, That technical and consulting services offered 
by the Facilities Management Field Service, including project management 
and 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, [2001] 2002. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: Integrated 
        health care system 
        administration..................          57          60          66
00.02 Capital investment................           3           2           2
                                           ---------   ---------  ----------
01.00   Total direct program............          60          62          68
09.01 Reimbursable program..............           7           7           7
                                           ---------   ---------  ----------

[[Page 885]]


10.00   Total new obligations...........          67          69          75
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          67          69          75
23.95 Total new obligations.............         -67         -69         -75
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          60          62          68
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           7           7           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          67          69          75
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          13          14          14
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          13          14          14
73.10 Total new obligations.............          67          69          75
73.20 Total outlays (gross).............         -66         -69         -74
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          14          14          14
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          14          14          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          64          62          67
86.93 Outlays from discretionary 
        balances........................           1           7           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          66          69          74
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................          60          62          68
90.00 Outlays...........................          59          62          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. 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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          35          37          41
11.3      Other than full-time permanent           2           3           3
11.5      Other personnel compensation..           3           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation          40          43          47
12.1    Civilian personnel benefits.....           7           7           8
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons: employee travel......           1           1           2
23.1    Rental payments to GSA..........           6           5           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           2           1           1
31.0    Equipment.......................           2           2           2
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          60          61          68
99.0  Reimbursable obligations..........           7           7           7
99.5  Below reporting threshold.........                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          67          69          75
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         457         493         508
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          57          57          57
---------------------------------------------------------------------------

                                

                     Medical Care Cost Recovery Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-5014-0-2-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

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

                                

Public enterprise funds:

                  Veterans Extended Care Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4032-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............                                  22
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.6)...................                                  22
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  24
23.95 Total new obligations.............                                 -22
24.40 Unobligated balance carried 
        forward, end of year............                                   2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                  24
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  22
73.20 Total outlays (gross).............                                 -22
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.                                   2
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year                                   2
----------------------------------------------------------------------------

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

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                 -24
----------------------------------------------------------------------------

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

    This fund was authorized by the Millennium Health Care and Benefits 
Act P.L. 106-117 section 101(a) to credit collections for long-term care 
for utilization by VA of extended care services. VA anticipates $24 
million from this effort in 2002.

                                

                    Medical Facilities Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4138-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.02 Reimbursable capital expenses.....           1           1           1
                                           ---------   ---------  ----------

[[Page 886]]


10.00   Total new obligations (object 
          class 31.0)...................           1           1           1
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           1           1           1
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           1
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           1
73.10 Total new obligations.............           1           1           1
73.20 Total outlays (gross).............          -1          -1          -1
----------------------------------------------------------------------------

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

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -1          -1          -1
----------------------------------------------------------------------------

    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.

                                

                     Canteen Service Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable operating expenses...         130         134         136
09.02 Reimbursable direct operations....          87          88          90
09.10 Reimbursable capital investment: 
        Sales program: Purchase of 
        equipment and leasehold.........           3           6           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         220         228         230
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          14          14          16
22.00 New budget authority (gross)......         220         229         232
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         234         243         248
23.95 Total new obligations.............        -220        -228        -230
24.40 Unobligated balance carried 
        forward, end of year............          14          16          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         220         229         232
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          25          26          23
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          25          26          23
73.10 Total new obligations.............         220         228         230
73.20 Total outlays (gross).............        -218        -231        -234
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          26          23          20
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          26          23          20
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         215         228         231
86.98 Outlays from mandatory balances...           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         218         231         234
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2          -2          -2
88.40     Non-Federal sources...........        -218        -227        -230
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -220        -229        -232
----------------------------------------------------------------------------

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

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

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          40          39          40
11.3    Other than full-time permanent..          22          26          27
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          62          65          67
12.1  Civilian personnel benefits.......          15          15          16
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................           1           2           2
26.0  Supplies and materials............         137         139         139
31.0  Equipment.........................           3           5           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         220         228         230
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......       2,933       3,010       3,025
---------------------------------------------------------------------------

                                

         Special Therapeutic and Rehabilitation Activities Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Contracts.........................          24          26          26
09.02 Education and training............           1           2           2
09.03 Operating expenses................          13          12          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........          38          40          40
----------------------------------------------------------------------------

[[Page 887]]



    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          13          14          16
22.00 New budget authority (gross)......          39          42          41
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          52          56          57
23.95 Total new obligations.............         -38         -40         -40
24.40 Unobligated balance carried 
        forward, end of year............          14          16          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          39          42          41
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           2           2           3
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           2           2           3
73.10 Total new obligations.............          38          40          40
73.20 Total outlays (gross).............         -37         -40         -39
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           2           3           4
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           2           3           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          37          40          39
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -39         -42         -41
----------------------------------------------------------------------------

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

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

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

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          40             39            41             41
0102  Expense...........................         -38            -38           -40            -40
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............           2              1             1              1
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4048-0-3-703    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          15             17            19             22
        Investments in US securities:
1106      Receivables, net..............           2              1             1              1
1206  Non-Federal assets: Receivables, 
        net.............................           2              2             2              2
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          20             20            22             25
    LIABILITIES:
2105  Federal liabilities: Other........           1              2             2              2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           1              2             2              2
    NET POSITION:
3300  Cumulative results of operations..          17             17            19             22
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          17             17            19             22
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          18             19            21             24
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4048-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................          35          36          37
26.0  Supplies and materials............           2           2           1
31.0  Equipment.........................                       1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          38          40          40
---------------------------------------------------------------------------

                                

                  Medical Center Research Organizations

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Operating expenses................         119         122         125
09.02 Capital investments...............          14          14          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........         133         136         140
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          18          18          18
22.00 New budget authority (gross)......         133         136         140
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         151         154         158
23.95 Total new obligations.............        -133        -136        -140
24.40 Unobligated balance carried 
        forward, end of year............          18          18          18
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         133         136         140
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............         133         136         140
73.20 Total outlays (gross).............        -133        -136        -140
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         133         136         140
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -26         -26         -27
88.40     Non-Federal sources...........        -107        -110        -113
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -133        -136        -140
----------------------------------------------------------------------------

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

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................          83          85          87
26.0  Supplies and materials............          34          35          36
31.0  Equipment.........................          14          14          15
                                           ---------   ---------  ----------
99.9    Total new obligations...........         133         136         140
---------------------------------------------------------------------------

[[Page 888]]



                                

  

                               Trust Funds

                    General Post Fund, National Homes

                      (including transfer of funds)

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.00 General post fund, national homes, 
        deposits........................          31          29          31
02.40 General post fund, national homes, 
        interest on investments.........           2           3           3
                                           ---------   ---------  ----------
02.99   Total receipts and collections..          33          32          34
    Appropriations:
05.00 General post fund, national homes.         -32         -32         -34
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Religious, recreational, and 
        entertainment activities........          23          24          25
00.02 Research activities...............           3           3           3
00.03 Therapeutic residence maintenance.           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          27          28          29
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          45          50          54
22.00 New budget authority (gross)......          32          32          34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          77          82          88
23.95 Total new obligations.............         -27         -28         -29
24.40 Unobligated balance carried 
        forward, end of year............          50          54          59
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................          32          32          34
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           7           6           6
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           7           6           6
73.10 Total new obligations.............          27          28          29
73.20 Total outlays (gross).............         -28         -28         -29
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           6           6           6
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           6           6           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          26          25          24
86.98 Outlays from mandatory balances...           3           3           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          28          28          29
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          32          32          34
90.00 Outlays...........................          28          28          29
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          51          57          53
92.02 Total investments, end of year: 
        Federal securities: Par value...          57          53          55
---------------------------------------------------------------------------

    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.)

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................          10          11          12
26.0  Supplies and materials............          11          11          11
31.0  Equipment.........................           3           3           3
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          27          28          29
---------------------------------------------------------------------------

                                


 
                    VETERANS BENEFITS ADMINISTRATION

                              Federal Funds

General and special funds:

                        Compensation and Pensions

    For the payment of compensation benefits to or on behalf of veterans 
and a pilot program for disability examinations as authorized by law (38 
U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension benefits 
to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15, 
51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and 
other officers' retirement pay, adjusted-service credits and 
certificates, payment of premiums due on commercial life insurance 
policies guaranteed under the provisions of Article IV of the Soldiers' 
and Sailors' Civil Relief Act of 1940, as amended, and for other 
benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, 
chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 
123; 45 Stat. 735; 76 Stat. 1198), [$22,766,276,000, to remain available 
until expended] such sums as may be necessary: Provided, That not to 
exceed [$17,419,000] $17,940,000 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. 
In addition, such sums as may be necessary to provide for any cost-of-
living adjustment authorized by 38 U.S.C. 1104. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

           Summary of Budget Authority and Outlays by Program

                        [In thousands of dollars]

                                     2000 actual  2001 est.   2002 est.
Distribution of budget authority by 
    program:
  Compensation......................  18,488,274  20,209,593  21,830,522
  Pensions..........................   2,967,771   3,014,634   2,979,714
  Burial benefits...................     112,318     131,049     133,521
Distribution of outlays by program:
  Compensation......................  19,004,846  18,095,962  21,753,663
  Pensions..........................   4,702,725   3,010,994   2,968,214
  Burial benefits...................     112,318     131,049     133,521

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0102-0-1-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.01     World War II..................       3,212       3,099       3,131
00.02     Korean conflict...............       1,268       1,266       1,321
00.03     Vietnam era...................       6,367       6,695       7,609
00.04     Peacetime service.............       3,275       3,429       3,792
00.05     Persian Gulf conflict.........       1,366       1,649       2,086
                                           ---------   ---------  ----------
00.91       Total veterans..............      15,488      16,138      17,939
        Survivors:
01.01     World War I...................          34          29          26

[[Page 889]]

01.02     World War II..................       1,343       1,341       1,400
01.03     Korean conflict...............         428         433         460
01.04     Vietnam era...................       1,178       1,229       1,341
01.05     Peacetime service.............         451         441         454
01.06     Persian Gulf conflict.........          87         102         123
                                           ---------   ---------  ----------
01.91       Total survivors.............       3,521       3,575       3,804
                                           ---------   ---------  ----------
02.93     Total compensation............      19,009      19,713      21,743
        Other compensation expenses:
03.01     Payment to general operating 
            expense.....................           1           1           1
03.02     Medical exam pilot program....          20          27          29
03.03     Clothing allowance............          42          42          42
03.04     Children of Vietnam Era.......          12          12          15
                                           ---------   ---------  ----------
03.91       Total other compensation 
              expenses..................          75          82          87
      Pensions:

        Veterans:
04.03     Improved Law..................       2,228       2,277       2,278
04.04     Prior Law.....................          41          34          28
                                           ---------   ---------  ----------
04.91       Total veterans..............       2,269       2,311       2,306
        Survivors:
05.01     Improved Law..................         602         608         590
05.02     Prior Law.....................          81          73          66
05.03     Old Law.......................           1           1           1
                                           ---------   ---------  ----------
05.91     Total survivors...............         684         682         657
                                           ---------   ---------  ----------
05.92     Total pensions................       2,953       2,993       2,963
        Other pension expenses:
06.02     Reimbursement to GOE and VHA..          16          18          18
      Burial benefits:

07.01   Burial allowance................          34          34          35
07.02   Burial plots....................          10          10          10
07.03   Service-connected deaths........          12          12          13
07.04   Burial flags....................          14          24          22
07.05   Headstones and markers..........          30          34          36
07.06   Graveliners.....................           7           9           8
07.07   Pre-placed crypts...............           1           5           6
                                           ---------   ---------  ----------
07.91     Total burial benefits.........         108         128         130
08.01   Equal access to justice.........           3           3           3
      Reimbursable pension program:

09.01   Minimum income for widows 
          program.......................                       4           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........      22,164      22,941      24,947
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         768         171
22.00 New budget authority (gross)......      21,568      22,770      24,947
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      22,336      22,941      24,947
23.95 Total new obligations.............     -22,164     -22,941     -24,947
24.40 Unobligated balance carried 
        forward, end of year............         171
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      21,568      22,766
        Appropriation (indefinite):
60.05     Appropriation (indefinite)....                                 376
60.05     Appropriation (indefinite)....                              24,568
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      21,568      22,766      24,944
69.00 Offsetting collections (cash).....                       4           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      21,568      22,770      24,947
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................       1,697          43       2,329
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................       1,697          43       2,329
73.10 Total new obligations.............      22,164      22,941      24,947
73.20 Total outlays (gross).............     -23,820     -20,653     -24,856
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          43       2,329       2,420
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          43       2,329       2,420
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      21,568      20,441      22,529
86.98 Outlays from mandatory balances...       2,252         212       2,329
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      23,820      20,653      24,856
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -4          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      21,568      22,766      24,944
90.00 Outlays...........................      23,820      20,649      24,853
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2000 actual  2001 est.   2002 est.
Enacted/requested:
  Budget Authority..................      21,568      22,766      24,944
  Outlays...........................      23,820      20,649      24,855
Appropriaton language to be 
    transmitted later:
  Budget Authority..................                     589
  Outlays...........................                     589
                                    ------------------------------------
Total:
  Budget Authority..................      21,568      23,355      24,944
  Outlays...........................      23,820      21,238      24,855
                                    ====================================

    This appropriation provides for the payment of compensation, 
pensions, and burial 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.

            AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                     2000 actual  2001 est.   2002 est.
Veterans:
  Mexican border period.............           7           6           5
  World War I.......................          56          39          27
  World War II......................     521,325     484,735     448,755
  Korean conflict...................     172,542     168,217     163,653
  Vietnam era.......................     738,247     747,699     780,848
  Peacetime service.................     564,002     574,345     583,298
  Persian Gulf conflict.............     304,463     349,184     395,248
                                    ------------------------------------
      Total.........................   2,300,642   2,324,225   2,371,834
  Average payment per case, per year      $6,732      $7,152      $7,563
      Total obligations (in 
        millions)...................     $15,488     $16,622     $17,939
                                    ====================================
Children of Vietnam era veterans:
  Children..........................         890         936         982
  Average payment per case, per year         $13         $14         $15
      Total obligations (in 
        millions)...................         $12         $13         $15
Chapter 18 Vocational 
    rehabilitations:
  Rehabilitations...................          18          19          20
  Average payment per case, per year      $2,944      $1,004      $1,259
      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..............          15          15          12
  Mexican border period.............           2           2           2
  World War I.......................       3,073       2,569       2,148
  World War II......................     115,533     113,798     111,787
  Korean conflict...................      36,699      36,797      36,896
  Vietnam era.......................     102,552     106,182     109,941
  Peacetime service.................      40,560      39,616      38,658
  Persian Gulf conflict.............       6,831       7,862       8,871
                                    ------------------------------------
      Total.........................     305,266     306,842     308,316
  Average payment per case, per year     $11,534     $11,980     $12,338
      Total obligations (in 
        millions)...................      $3,521      $3,676      $3,804
                                    ====================================
Clothing allowance:
  Number of veterans................      76,349      76,285      76,234
  Average payment per case, per year        $550        $550        $550
      Total obligations (in 
        millions)...................         $42         $42         $42
                                    ====================================

                                                            

[[Page 890]]



    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, 
2002, is expected to be 2.5 percent.

              AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                     2000 actual  2001 est.   2002 est.
Veterans:
  Improved law......................     344,509     338,669     333,249
  Prior law.........................      25,603      21,776      18,543
  Old law and service...............         324         279         241
                                    ------------------------------------
      Total.........................     370,436     360,724     352,033
  Average payment per case, per year 
    (in dollars)....................      $6,125      $6,412      $6,550
                                    ------------------------------------
      Total obligations (in 
        millions)...................      $2,269      $2,313      $2,306
                                    ====================================
Survivors:
  Improved law......................     182,949     176,516     170,504
  Prior law.........................      79,872      71,398      63,930
  Old law and service...............       1,540       1,228         981
                                    ------------------------------------
      Total.........................     264,361     249,142     235,415
  Average payment per case, per year      $2,587      $2,745      $2,791
                                    ------------------------------------
      Total obligations (in 
        millions)...................        $684        $684        $657
                                    ====================================
Minimum Income for Widows Program:
  Widows............................                     558         523
Average benefit per case, per year..                  $7,168      $5,736
                                    ------------------------------------
      Total obligations (in 
        millions)...................                      $4          $3
                                    ====================================
Vocational training:
  Trainees..........................           8           5           3
  Average benefit per year..........      $1,625      $1,200      $1,333
                                    ------------------------------------
      Total obligations (in 
        millions) 1......
                                    ====================================
    1 Amounts round to less than $1 million.

    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

                                     2000 actual  2001 est.   2002 est.
Burial allowance....................      81,190      82,200      84,000
Burial plot.........................      68,422      69,422      70,422
Service-connected death.............       9,445       9,540       9,740
Burial flags........................     404,360     600,000     532,000
Headstone markers...................     327,514     348,840     355,260
Headstone allowance.................
Graveliners.........................      49,301      50,362      45,961
Preplaced crypts....................       3,998      15,773      19,650

    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

                                     2000 actual  2001 est.   2002 est.
Retired Officers....................           2           1           1
Special allowance dependents........         120         120         120
Equal Access to Justice payments....         685         685         685

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0102-0-1-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........      22,164      22,937      24,944
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                       4           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........      22,164      22,941      24,947
---------------------------------------------------------------------------

                                

                        Compensation and Pensions

                (Legislative proposal, subject to PAYGO)

    The Administration is proposing legislation that would permanently 
extend the following legal provisions that will otherwise expire over 
the next several years: (1) rounding down the annual compensation COLA 
increase, (2) authorization for the Internal Revenue Service to provide 
VA with access to data for determining eligibility for means-tested 
benefits, and (3) limiting pensions to Medicaid-eligible recipients in 
nursing homes.

                                

                        Compensation and Pensions

            (Appropriations language to be transmitted later)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0102-3-1-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Compensation:

        Veterans:
00.01     World War II..................                      88
00.02     Korean conflict...............                      34
00.03     Vietnam era...................                     176
00.04     Peacetime service.............                     116
00.05     Persian Gulf conflict.........                      69
                                           ---------   ---------  ----------
00.91       Total veterans..............                     483
        Survivors:
01.01     World War I...................                       1
01.02     World War II..................                      38
01.03     Korean conflict...............                      11
01.04     Vietnam era...................                      36
01.05     Peacetime service.............                      13
01.06     Persian Gulf conflict.........                       2
                                           ---------   ---------  ----------
01.91       Total survivors.............                     101
                                           ---------   ---------  ----------
02.93   Total compensation..............                     584
      Other compensation expenses:

03.01   Children of Vietnam Era.........                       2
      Veterans:

04.03   Improved Law....................                       3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................                     589
----------------------------------------------------------------------------

[[Page 891]]



    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     589
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     589
23.95 Total new obligations.............                    -589
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                     589
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                     589
73.20 Total outlays (gross).............                    -589
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                     589
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     589
90.00 Outlays...........................                     589
---------------------------------------------------------------------------

    The Administration will transmit legislation that would provide $523 
million for increased benefit costs affected by the 3.5 percent rate 
increase for veterans with service-connected disabilities and the rates 
of dependency and indemnity compensation for the survivors of certain 
disabled veterans, as enacted by Public Law 106-413, the ``Veterans' 
Compensation Cost-of-Living Adjustment Act of 2000.'' This request also 
would provide $12 million to meet additional benefit costs due to 
program enhancements afforded by Public Law 106-419, the ``Veterans 
Benefits and Health Care Improvement Act of 2000.'' Additionally, this 
request would provide $17 million for benefit costs arising from the 
addition of diabetes to the list of diseases associated with exposure to 
certain herbicide agents as provided by the Agent Orange Act of 1991, 
Public Law 102-4. Lastly, this request would provide $38 million for 
rate adjustments due to the Consumer Price Index (CPI) computation error 
of 1999, as authorized by Public Law 106-554, the Omnibus Consolidated 
Appropriations Act.

                                

                          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, [$1,634,000,000, to remain available 
until expended] such sums as may be necessary: 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, 2001, as 
enacted by section 1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Sons and daughters............         123         132         157
00.02     Spouses.......................          15          17          29
                                           ---------   ---------  ----------
00.91       Total education and training         138         149         186
        Special assistance to disabled 
            veterans:
01.01     Vocational rehabilitation.....         439         392         432
01.02     Housing grants................          22          21          23
01.03     Automobiles, adaptive 
            equipment, maintenance and 
            repair......................          35          31          35
                                           ---------   ---------  ----------
01.91       Total special assistance to 
              disabled veterans.........         496         444         490
02.01   Work study......................          32          35          50
02.02   Payments to states..............          13          13          14
02.03   All-volunteer assistance: 
          Veterans' basic benefits......         794       1,227       1,339
02.04   Reporting fees..................           3           4           4
02.05   Tuition Assistance..............                                  35
02.06   Licensing and Certification.....                                  17
                                           ---------   ---------  ----------
02.91     All-volunteer assistance and 
            other.......................         842       1,279       1,459
                                           ---------   ---------  ----------
02.93     Total direct program..........       1,476       1,872       2,135
09.01 Veterans' basic benefits..........           8           7           5
09.01 Veterans' supplementary benefits..          73          90          99
09.01 Reservists benefits...............         103         100         103
09.02 Reservist supplementary benefits..           7          14          20
09.03 Reimbursement to GOE..............                       1           1
                                           ---------   ---------  ----------
09.09   Reimbursable programs--subtotal.         191         212         228
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,667       2,084       2,363
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          35          26
22.00 New budget authority (gross)......       1,660       1,846       2,363
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                     212
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,695       2,084       2,363
23.95 Total new obligations.............      -1,667      -2,084      -2,363
23.98 Unobligated balance expiring or 
        withdrawn.......................          -3
24.40 Unobligated balance carried 
        forward, end of year............          26
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       1,469       1,634
60.05   Appropriation (indefinite)......                               2,135
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       1,469       1,634       2,135
69.00 Offsetting collections (cash).....         191         212         228
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,660       1,846       2,363
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          58          37           8
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          58          37           8
73.10 Total new obligations.............       1,667       2,084       2,363
73.20 Total outlays (gross).............      -1,688      -1,901      -2,301
73.45 Recoveries of prior year 
        obligations.....................                    -212
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          37           8          70
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          37           8          70
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,595       1,835       2,293
86.98 Outlays from mandatory balances...          93          63           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,688       1,901       2,301
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -191        -212        -228
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,469       1,634       2,135
90.00 Outlays...........................       1,497       1,689       2,073
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2000 actual  2001 est.   2002 est.
Enacted/requested:
  Budget Authority..................       1,469       1,634       2,135
  Outlays...........................       1,497       1,686       2,073
Appropriaton language to be 
    transmitted later:
  Budget Authority..................                     347
  Outlays...........................                     284          63
                                    ------------------------------------
Total:
  Budget Authority..................       1,469       1,981       2,135
  Outlays...........................       1,497       1,970       2,136
                                    ====================================

    This appropriation finances educational assistance allowances for 
certain service persons, peacetime veterans and for eligible dependents 
of those veterans: (a) who died from service-connected causes or have a 
total and permanent rated

[[Page 892]]

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. This appropriation provides such sums as may be necessary in 
2002 to meet program obligations which are currently estimated to be 
$2,135 million.

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

                       NUMBER OF TRAINEES AND COST

                                     2000 actual  2001 est.   2002 est.
Sons and daughters:
  Number of trainees................      38,965      39,891      41,373
  Average cost per trainee (in 
    dollars)........................      $3,159      $3,774      $3,785
                                    ------------------------------------
      Total cost (in millions)......        $123        $151        $157
                                    ====================================
Spouses and widow(ers):
  Number of trainees................       5,855       7,216       8,947
  Average cost per trainee (in 
    dollars)........................      $2,538      $3,210      $3,290
                                    ------------------------------------
      Total cost (in millions)......         $15         $23         $29
                                    ====================================

    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

                                     2000 actual  2001 est.   2002 est.
      Total number of trainees......      52,786      53,250      53,400
  Average cost per trainee..........      $8,310      $7,872      $8,092
                                    ------------------------------------
      Total cost (in millions)......        $439        $419        $432
                                    ====================================
Housing grants:
  Number of housing grants..........         574         600         600
  Average cost per grant............     $38,009     $38,009     $38,009
                                    ------------------------------------
      Total cost (in millions)......         $22         $23         $23
                                    ====================================
Automobiles or other conveyances:
  Number of conveyances.............         987       1,000       1,000
  Average cost per conveyance.......      $7,947      $7,947      $7,947
                                    ------------------------------------
      Total cost (in millions)......          $8          $8          $8
                                    ====================================
Adaptive equipment (including 
    maintenance, repair and 
    installation for automobiles):
  Number of items...................       8,459       8,300       8,100
  Average cost......................      $3,218      $3,311      $3,394
                                    ------------------------------------
      Total cost (in millions)......         $27         $27         $27
                                    ====================================

    Tuition Assistance.--Public Law 106-398, enacted October 30, 2000, 
allows the military services to pay up to 100 percent of tuition and 
expenses charged by a school for service members. If a service 
department pays less than 100 percent, a service member eligible for the 
Montgomery GI Bill--Active-duty (MGIB) can elect to receive MGIB 
benefits for all or a portion of the remaining expenses.

    Licensing and certification test payments.--Under Public Law 106-
419, enacted November 1, 2000, veterans and other eligible persons may 
receive up to $2,000 to pay fees required for civilian occupational 
licensing and certification examinations needed to enter, maintain, or 
advance in employment in a vocation or profession--effective March 1, 
2001.

                     CASELOAD AND AVERAGE COST DATA

                                     2000 actual  2001 est.   2002 est.

Tuition Assistance:
  Number of trainees................         N/A     161,000     214,000
  Average cost per trainee..........         N/A        $155        $161
                                    ------------------------------------
      Total cost (in millions)......         N/A         $25         $35
                                    ====================================
Licensing and Certification:
  Number of individuals.............         N/A      26,800     101,800
  Average cost per trainee..........         N/A        $112        $167
                                    ------------------------------------
      Total cost (in millions)......         N/A          $3         $17
                                    ====================================

    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.

                                     2000 actual  2001 est.   2002 est.
  Number of contracts...............      21,511      28,400      28,900
                                    ------------------------------------
      Total cost (in millions)......         $32         $51         $50
                                    ====================================

    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.

    Reporting fees.--Public Law 105-368, enacted November 11, 1998, 
transferred the reporting fee payments from the General Operating 
Expenses appropriation (GOE). Reporting fees are paid to education and 
training institutions to help defray the costs of certifying education 
enrollment for veterans enrolled in training during a calendar year.

    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

                                     2000 actual  2001 est.   2002 est.
Veterans:
  Number of trainees................     279,949     324,300     334,300
  Average cost per trainee..........      $3,133      $4,181      $4,316
                                    ------------------------------------
      Total cost (in millions)......        $877      $1,356      $1,443
                                    ====================================
Reservists:
  Number of trainees................      70,299      71,500      70,500
  Average cost per trainee..........      $1,531      $1,620      $1,752
                                    ------------------------------------
      Total cost (in millions)......        $108        $116        $124
                                    ====================================

[[Page 893]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       1,476       1,872       2,135
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................         191         212         228
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,667       2,084       2,363
---------------------------------------------------------------------------

                                

                          Readjustment Benefits

            (Appropriations language to be transmitted later)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-3-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Education and training:
00.01     Sons and daughters............                      19
00.02     Spouses.......................                       6
                                           ---------   ---------  ----------
00.91       Total education and training                      25
        Special assistance to disabled 
            veterans:
01.01     Vocational rehabilitation.....                      27
01.02     Housing grants................                       2
01.03     Automobiles, adaptive 
            equipment, maintenance and 
            repair......................                       4
01.04     Tuition Assistance............                      25
01.05     Licensing and Certification...                       3
                                           ---------   ---------  ----------
01.91       Total special assistance to 
              disabled veterans.........                      61
02.01   Work study......................                      15
02.02   Payments to states..............                       1
02.03   All-volunteer assistance: 
          Veterans' basic benefits......                     242
02.04   Reporting fees..................                      -1
                                           ---------   ---------  ----------
02.91     All-volunteer assistance and 
            other.......................                     257
                                           ---------   ---------  ----------
02.93     Total direct program..........                     343
09.03 Reimbursement to GOE..............                       4
                                           ---------   ---------  ----------
09.09   Reimbursable programs--subtotal.                       4
                                           ---------   ---------  ----------
10.00   Total new obligations...........                     347
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     347
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     347
23.95 Total new obligations.............                    -347
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                     347
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................                                  63
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................                                  63
73.10 Total new obligations.............                     347
73.20 Total outlays (gross).............                    -284         -63
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.                      63
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year                      63
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                     284
86.98 Outlays from mandatory balances...                                  63
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                     284          63
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     347
90.00 Outlays...........................                     284          63
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-3-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....                     343
99.0  Reimbursable obligations: 
        Subtotal, reimbursable 
        obligations.....................                       4
                                           ---------   ---------  ----------
99.9    Total new obligations...........                     347
---------------------------------------------------------------------------

    The Administration will transmit legislation that would provide $347 
million for program increases that are required by recently-enacted 
legislation and greater than expected numbers of trainees and average 
costs per trainee. Public Law 106-398, the ``Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001'' authorizes Montgomery 
GI Bill (MGIB) payments to active-duty personnel to supplement their 
military tuition assistance. Public Law 106-419, the ``Veterans Benefits 
and Health Care Improvement Act of 2000'' also expanded educational 
assistance. It includes provisions that: increased basic full-time 
monthly benefit rates under MGIB from $552 to $650, effective November 
1, 2000 (an increase of 21 percent over rates for 2000 when previously 
only a 3 percent cost-of-living adjustment had been authorized); 
increased monthly rates for Survivors' and Dependents' Educational 
Assistance from $485 to $588, effective November 1, 2000 (an increase of 
21 percent over rates for 2000 when previously none had been 
authorized); and provide up to $2,000 for licensing and certification 
testing under MGIB, effective March 1, 2001.

                                

  Reinstated Entitlement Program for Survivors Under Public Law 97-377

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0200-0-1-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Return of overpayment.............           2
                                           ---------   ---------  ----------
01.00   Total Direct Program............           2
09.01 Reimbursables.....................          16          15          14
                                           ---------   ---------  ----------
09.99   Total reimbursable program......          16          15          14
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................          18          15          14
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          16          15          14
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          16          15          14
23.95 Total new obligations.............         -18         -15         -14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          16          15          14
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          18          15          14
73.20 Total outlays (gross).............         -16         -15         -14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          16          15          14
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -16         -15         -14
----------------------------------------------------------------------------

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

    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.

[[Page 894]]

Financing is provided in the form of offsetting collections from the 
Department of Defense.

                     CASELOAD AND AVERAGE COST DATA

                                     2000 actual  2001 est.   2002 est.
Spouses.............................         227         210         184
Average benefit.....................     $13,215     $14,285     $16,304
Obligations (in millions)...........          $3          $3          $3
Children............................         911         840         783
Average benefit.....................     $10,978     $14,285     $14,049
Obligations (in millions)...........         $10         $12         $11

                                

                   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[, $19,850,000, to remain available until 
expended] such sums as may be necessary. (Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.04   Payment to national service life 
          insurance fund................           1           1           1
00.05   Payment to service-disabled 
          veterans insurance fund.......          19          18          19
00.06   Total operating expenses........           8           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........          28          27          28
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           5
22.00 New budget authority (gross)......          31          22          28
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          27          28
23.95 Total new obligations.............         -28         -27         -28
24.40 Unobligated balance carried 
        forward, end of year............           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          29          20          26
69.00 Offsetting collections (cash).....           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          31          22          28
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          28          27          28
73.20 Total outlays (gross).............         -28         -27         -28
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          28          22          28
86.98 Outlays from mandatory balances...                       5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          28          27          28
----------------------------------------------------------------------------

    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..................          29          20          28
90.00 Outlays...........................          26          25          26
---------------------------------------------------------------------------
    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.

    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 2002 as indicated in the 
following table.

                     POLICIES AND INSURANCE IN FORCE

                                     2000 actual  2001 est.   2002 est.

VMLI policies:
  Number of policies................       3,457       3,340       3,250
  Amount of insurance (dollars in 
    millions).......................         198         198         198

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................          20          19          20
42.0  Insurance claims and indemnities..           8           8           8
                                           ---------   ---------  ----------
99.9    Total new obligations...........          28          27          28
---------------------------------------------------------------------------

                                

Public enterprise funds:

                Service-Disabled Veterans Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............          34          27          18
    Appropriations:
05.00 Service-disabled veterans 
        insurance fund..................          -7          -9         -13
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          27          18           5
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Capital investment................          12          12          12
09.01 Death claims......................          43          44          46
09.01 All other.........................           9           9          10
                                           ---------   ---------  ----------
10.00   Total new obligations...........          64          65          68
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          64          65          68
23.95 Total new obligations.............         -64         -65         -68
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          57          56          55
69.26   From offsetting collections 
          (unavailable balances)........           7           9          13
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          64          65          68
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           8           8           6
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           8           8           6

[[Page 895]]

73.10 Total new obligations.............          64          65          68
73.20 Total outlays (gross).............         -64         -67         -68
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           8           6           6
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           8           6           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          57          59          62
86.98 Outlays from mandatory balances...           7           8           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          64          67          68
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            VI and I....................         -19         -18         -18
          Non-Federal sources:
88.40       Interest on loans...........          -3          -3          -3
88.40       Insurance premiums earned...         -23         -23         -22
88.40       Repayments of loans.........         -12         -12         -12
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -57         -56         -55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           7           9          13
90.00 Outlays...........................           7          11          13
---------------------------------------------------------------------------

    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

                                     2000 actual  2001 est.   2002 est.
Number of policies..................     151,315     147,935     144,450
Insurance in force (dollars in 
millions)...........................       1,418       1,398       1,375

    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 $461 million by September 30, 2002.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          12          12          12
42.0  Insurance claims and indemnities..          52          53          56
                                           ---------   ---------  ----------
99.9    Total new obligations...........          64          65          68
---------------------------------------------------------------------------

                                

                    Veterans Reopened Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............         466         454         437
    Appropriations:
05.00 Veterans reopened insurance fund..         -12         -17         -18
                                           ---------   ---------  ----------
07.99 Balance, end of year..............         454         437         419
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          35          38          39
09.01 Dividends.........................          22          21          18
09.01 All other.........................           8           8           8
09.01 Capital investment: policy loans..           5           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          70          72          70
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          70          72          70
23.95 Total new obligations.............         -70         -72         -70
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          58          55          52
69.26   From offsetting collections 
          (unavailable balances)........          12          17          18
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          70          72          70
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          44          46          48
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          44          46          48
73.10 Total new obligations.............          70          72          70
73.20 Total outlays (gross).............         -68         -70         -69
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          46          48          49
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          46          48          49
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          24          46          48
86.98 Outlays from mandatory balances...          44          24          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          68          70          69
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: interest on 
            U.S. securities.............         -38         -36         -34
          Non-Federal sources:
88.40       Interest on loans...........          -1          -2          -1
88.40       Insurance premiums earned...         -13         -12         -11
88.40       Repayments of loans.........          -6          -5          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -58         -55         -52
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          12          17          18
90.00 Outlays...........................          10          15          17
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...         509         500         485
92.02 Total investments, end of year: 
        Federal securities: Par value...         500         485         467
---------------------------------------------------------------------------
    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

[[Page 896]]

    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

                                     2000 actual  2001 est.   2002 est.
  Number of policies................      77,638      72,300      66,890
  Insurance in force (dollars in 
    millions).......................         648         617         584

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............           5           5           5
42.0  Insurance claims and indemnities..          39          42          43
43.0  Interest and dividends............          26          25          22
                                           ---------   ---------  ----------
99.9    Total new obligations...........          70          72          70
---------------------------------------------------------------------------

                                

                Servicemembers' Group Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4009-0-3-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Premium payments..................         377         441         489
09.01 Payment to GOE account............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         378         442         490
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1           1
22.00 New budget authority (gross)......         378         442         490
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         379         443         491
23.95 Total new obligations.............        -378        -442        -490
24.40 Unobligated balance carried 
        forward, end of year............           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         378         442         490
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           5           5           5
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           5           5           5
73.10 Total new obligations.............         378         442         490
73.20 Total outlays (gross).............        -378        -442        -490
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           5           5           5
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           5           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         373         437         485
86.98 Outlays from mandatory balances...           5           5           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         378         442         490
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources: 
          Withholdings from serviceman's 
          pay...........................        -378        -442        -490
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...           5           5           5
92.02 Total investments, end of year: 
        Federal securities: Par value...           5           5           5
---------------------------------------------------------------------------

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

                                

Credit accounts:

          Veterans Housing Benefit Program Fund Program Account

                      (including transfer of funds)

    For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by 38 U.S.C. chapter 
37, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
during fiscal year [2001] 2002, within the resources available, not to 
exceed $300,000 in gross obligations for direct loans are authorized for 
specially adapted housing loans: Provided further, that no funds shall 
be available for costs of new loans for purchasers of Federally-owned 
property, ``Vendee Home Loans.''
    In addition, for administrative expenses to carry out the direct and 
guaranteed loan programs, [$162,000,000] $164,497,000, which may be 
transferred to and merged with the appropriation for ``General operating 
expenses'': Provided, that no funds shall be available for 
administrative costs of new ``Vendee Home Loans''. (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 
106-377.)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
0101  GIF direct loans, downward 
        reestimate of subsidies.........       1,064       1,420
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          40          37          15
00.02 Guaranteed loan subsidy...........         217         143         188
00.05 Reestimates of direct loan subsidy           6          19
00.06 Interest on reestimates of the 
        direct loan subsidy.............           3           5
00.07 Reestimates of guaranteed loan 
        subsidy.........................         890         123
00.08 Interest on reestimates of the 
        guaranteed loan subsidy.........         347          24
00.11 Administrative expenses...........         157         162         166
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,660         513         369
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,660         513         369
23.95 Total new obligations.............      -1,660        -513        -369
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (definite)........         157         162         166
      Mandatory:

60.05   Appropriation (indefinite)......       1,503         351         203
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,660         513         369
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............       1,660         513         369

[[Page 897]]

73.20 Total outlays (gross).............      -1,660        -513        -369
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         157         162         166
86.97 Outlays from new mandatory 
        authority.......................       1,503         351         203
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,660         513         369
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,660         513         369
90.00 Outlays...........................       1,660         513         369
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2000 actual  2001 est.   2002 est.
Enacted/requested:
  Budget Authority..................       1,660         513         369
  Outlays...........................       1,660         513         369
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  -1
  Outlays...........................                                  -1
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                 -15
  Outlays...........................                                 -15
                                    ------------------------------------
Total:
  Budget Authority..................       1,660         513         353
  Outlays...........................       1,660         513         353
                                    ====================================

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

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................       1,435       1,697       1,710
                                           ---------   ---------  ----------
1159    Total direct loan levels........       1,435       1,697       1,710
    Direct loan subsidy (in percent):
1320  Subsidy rate......................        1.81        2.16        0.86
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        1.81        2.16        0.86
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........          40          37          15
1330  Subsidy budget authority for 
        downward reestimates............         -67        -163
1330  Subsidy budget authority for 
        upward reestimates..............           9          24
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         -18        -102          15
    Direct loan subsidy outlays:
1340  Subsidy outlays...................          40          37          15
1340  Subsidy outlays for downward 
        reestimates.....................         -67        -163
1340  Subsidy outlays for upward 
        reestimates.....................           9          24
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         -18        -102          15
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Guaranteed loan...................      20,159      29,535      28,949
2150  Guaranteed loan sales.............       1,457       1,108       1,498
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      21,616      30,643      30,447
    Guaranteed loan subsidy (in percent):
2320  Guaranteed loan subsidy rate......        0.49        0.29        0.39
2320  Guaranteed loan sales subsidy rate        3.60        5.21        5.05
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        0.70        0.47        0.62
    Guaranteed loan subsidy budget authority:
2330  Guaranteed loan budget authority..         137          86         113
2330  Guaranteed loan sale budget 
        authority.......................          79          58          75
2330  Subsidy budget authority downward 
        reestimates.....................        -997      -1,257
2330  Subsidy budget authority upward 
        reestimates.....................       1,237         147
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         456        -966         188
    Guaranteed loan subsidy outlays:
2340  Guaranteed loan subsidy outlay....         137          86         113
2340  Guaranteed loan sale subsidy 
        outlay..........................          79          58          75
2340  Subsidy outlays for downward 
        reestimates.....................        -997      -1,257
2340  Subsidy outlays for upward 
        reestimates.....................       1,237         147
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         456        -966         188
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         157         162         166
3590  Outlays from new authority........         157         162         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 2001.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
25.3  Purchases of goods and services 
        from Government accounts........         157         162         166
41.0  Grants, subsidies, and 
        contributions...................       1,503         351         203
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,660         513         369
---------------------------------------------------------------------------

                                

          Veterans Housing Benefit Program Fund Program Account

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-2-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

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

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

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (definite)........                                  -1
                                                                          -1
----------------------------------------------------------------------------

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

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

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

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

----------------------------------------------------------------------------
Identification code 36-1119-2-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
    Direct loan subsidy (in percent):
1320  Subsidy rate......................                                0.00
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...                                0.00
    Guaranteed loan subsidy (in percent):
2320  Guaranteed loan subsidy rate......                                0.00

[[Page 898]]

2320  Guaranteed loan sales subsidy rate                                0.00
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                                0.00
----------------------------------------------------------------------------

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

                                

          Veterans Housing Benefit Program Fund Program Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-4-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............                                  15
00.02 Guaranteed loan subsidy...........                                 -30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                 -15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -15
23.95 Total new obligations.............                                  15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.05   Appropriation (indefinite)......                                 -15
                                                                         -15
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                 -15
73.20 Total outlays (gross).............                                  15
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 -15
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 36-1119-4-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................                              -1,591
                                           ---------   ---------  ----------
1159    Total direct loan levels........                              -1,591
    Direct loan subsidy (in percent):
1320  Subsidy rate......................                               23.83
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...                               23.83
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........                                  15
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                                  15
    Direct loan subsidy outlays:
1340  Subsidy outlays...................                                  15
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                                  15
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  Guaranteed loan sales.............                              -1,130
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....                              -1,130
    Guaranteed loan subsidy (in percent):
2320  Guaranteed loan subsidy rate......                                0.09
2320  Guaranteed loan sales subsidy rate                                0.25
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                               -0.08
    Guaranteed loan subsidy budget authority:
2330  Guaranteed loan budget authority..                                  26
2330  Guaranteed loan sale budget 
        authority.......................                                 -57
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                 -31
    Guaranteed loan subsidy outlays:
2340  Guaranteed loan subsidy outlay....                                  26
2340  Guaranteed loan sale subsidy 
        outlay..........................                                 -57
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                 -31
---------------------------------------------------------------------------

                                

   Veterans Housing Benefit Program Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................       1,435       1,696       1,710
00.02 Interest on Treasury borrowing....         249         136         161
00.03 Property sales expense............           2           2           2
00.04 Property management/other expense.           4           1           1
00.05 Property improvement expense......           4           1           1
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,694       1,836       1,875
08.02 Payment of downward reestimate to 
        receipt account.................          58         127
08.04 Payment of excess interest earned 
        to receipt account..............           9          36
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............          67         163
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,761       1,999       1,875
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         908         279
22.00 New financing authority (gross)...       1,132       1,720       1,875
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,040       1,999       1,875
23.95 Total new obligations.............      -1,761      -1,999      -1,875
24.40 Unobligated balance carried 
        forward, end of year............         279
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)       1,150       1,519       1,695
69.00 Offsetting collections (cash).....       1,820       1,372       1,715
69.47 Portion applied to repay debt.....      -1,838      -1,171      -1,535
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         -18         201         180
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,132       1,720       1,875
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          -1           9          11
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          -1           9          11
73.10 Total new obligations.............       1,761       1,999       1,875
73.20 Total financing disbursements 
        (gross).........................      -1,751      -1,998      -1,875
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           9          11          10
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           9          11          10
87.00 Total financing disbursements 
        (gross).........................       1,751       1,998       1,875
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources:Payments 
              from program account......         -50         -61         -15
88.00       Transfer of loan sales from 
              LSSA......................      -1,454      -1,048      -1,418
          Non-Federal sources:
            Non-Federal sources:

88.40         Repayments of principal...         -82         -80        -105
88.40         Interest received on loans         -87         -88         -82
88.40         Fees......................         -21         -26         -26
88.40         Downpayment on Vendee 
                loan/other..............         -19         -36         -36
88.40         Cash sale of properties...         -15         -33         -33
88.40         Other revenue.............         -92
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,820      -1,372      -1,715
----------------------------------------------------------------------------

[[Page 899]]



    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............        -688         348         160
90.00 Financing disbursements...........         -70         626         160
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................       1,435       1,697       1,710
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,435       1,697       1,710
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,600       1,556       2,060
1231  Disbursements: Direct loan 
        disbursements...................       1,435       1,697       1,710
      Repayments:

1251    Repayments and prepayments......         -82         -80        -105
1253    Proceeds from loan asset sales 
          to the public with recourse...      -1,454      -1,048      -1,419
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................          -4         -59         -80
      Write-offs for default:

1263    Direct loans....................          -6          -6          -8
1264    Other adjustments, net..........          67
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,556       2,060       2,158
---------------------------------------------------------------------------

    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    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       1,014            312           422            283
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       1,588          1,556         2,060          2,158
1402    Interest receivable.............                        121           160            167
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,588          1,677         2,220          2,325
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,602          1,989         2,642          2,608
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       1,944          1,778         2,353          2,465
      Non-Federal liabilities:

2201    Accounts payable................         103
2204    Liabilities for loan guarantees.         555            211           288            143
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,602          1,989         2,641          2,608
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,602          1,989         2,641          2,608
-----------------------------------------------------------------------------------------------

                                

 Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Acquisition of homes..............       1,341       1,623       2,017
00.02 Losses on defaulted loans.........         485         497         518
00.03 Interest on Treasury borrowing....           2           2           2
00.04 Reimburse DLFA for loan sales.....       1,454       1,049       1,419
00.05 Payment to trustee reserve........          76          72          75
00.06 Reimburse Liquidating for 
        subordination certificate.......          37          36          30
00.07 Loan Sale Closing Costs...........           3           6           7
00.09 Property sales expense............         103         128         161
00.10 Property management expense.......          47          70          83
00.11 Property improvement expense......          58          49          53
00.12 Loans acquired....................         236         103          92
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       3,842       3,635       4,457
08.02 Payment of downward reestimate to 
        receipt account.................         661         893
08.04 Payment of excess interest to 
        receipt account.................         336         364
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         997       1,257
                                           ---------   ---------  ----------
10.00   Total new obligations...........       4,839       4,892       4,457
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       4,438       5,128       4,346
22.00 New financing authority (gross)...       5,529       4,111       4,501
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       9,967       9,239       8,847
23.95 Total new obligations.............      -4,839      -4,892      -4,457
24.40 Unobligated balance carried 
        forward, end of year............       5,128       4,346       4,390
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       5,565       4,111       4,501
69.47   Portion applied to repay debt...         -36
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       5,529       4,111       4,501
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       5,529       4,111       4,501
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         166          22          25
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         166          22          25
73.10 Total new obligations.............       4,839       4,892       4,457
73.20 Total financing disbursements 
        (gross).........................      -4,982      -4,889      -4,462
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          22          25          20
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          22          25          20
87.00 Total financing disbursements 
        (gross).........................       4,982       4,889       4,462
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.00         Payments from program 
                account.................      -1,454        -290        -188
88.00         Recoveries from DLFA......      -1,233      -1,435      -1,472
88.25     Interest on uninvested funds..        -298        -233        -213
          Non-Federal sources:
            Non-Federal sources:

88.40         Funding fees..............        -423        -577        -567
88.40         Cash sale of properties...        -633        -468        -588
88.40         Redemption of properties 
                and other...............                     -23         -25
88.40         Refunds from Trust........         -26
88.40         Subordinate certificate 
                deposits................         -37         -37         -30
88.45     Loan sale proceeds............      -1,461      -1,048      -1,418
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -5,565      -4,111      -4,501
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         -36
90.00 Financing disbursements...........        -583         778         -39
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................      20,159      29,535      28,949
2132  Guaranteed loan commitments for 
        loan asset sales with recourse..       1,457       1,108       1,498
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      21,616      30,643      30,447
2199  Guaranteed amount of guaranteed 
        loan commitments................       7,993      10,682      10,883
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     203,651     211,568     225,644
2231  Disbursements of new guaranteed 
        loans...........................      20,159      29,535      28,949
2232  Guarantees of loans sold to the 
        public with recourse............       1,457       1,108       1,499
2251  Repayments and prepayments........     -12,203     -13,532     -14,732
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -177        -140        -145
2262    Terminations for default that 
          result in acquisition of 
          property......................      -1,341      -1,623      -2,017

[[Page 900]]

2263    Terminations for default that 
          result in claim payments......        -462        -510        -526
2264    Other adjustments, net..........         484        -762        -735
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     211,568     225,644     237,937
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      73,959      78,391      82,478
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         197           9         122
2331    Disbursements for guaranteed 
          loan claims...................         177         140         145
2351    Repayments of loans receivable..         -12          -1          -8
2361    Write-offs of loans receivable..         -66         -26         -47
2364    Other adjustments, net..........        -287
                                           ---------   ---------  ----------
2390      Outstanding, end of year......           9         122         212
---------------------------------------------------------------------------

    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    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       4,603          5,150         4,347          4,641
        Investments in US securities:
1106      Receivables, net..............         823            114            95            102
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............         197              9           122            212
1502    Interest receivable.............                          9             9             10
1504    Accounts receivable from 
          foreclosed property...........         966            806           837            896
1505    Other assets....................                        196           195            207
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       1,163          1,020         1,163          1,325
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       6,627          6,284         5,605          6,068
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................         166             38            18             20
2105    Other...........................         403          1,296           445            558
2204  Non-Federal liabilities: Non-
        federal liabilities.............       6,058          4,950         5,142          5,490
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       6,627          6,284         5,605          6,068
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       6,627          6,284         5,605          6,068
-----------------------------------------------------------------------------------------------

                                

        Veterans Housing Benefit Program Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investments:

00.01   Acquisition of homes............         190         175         148
00.02   Property improvements...........           8          16          13
00.03   Cash advances...................          11          10           9
00.04   Acquisition of defaulted 
          guaranteed loans..............          27          37          35
00.05   Repurchase of loans sold........          12           9           8
                                           ---------   ---------  ----------
00.91     Total capital investments.....         248         247         213
                                           ---------   ---------  ----------
01.00   Total capital investments.......         248         247         213
      Operating expenses:

01.02   Property management expense.....          15          22          19
01.03   Sales expense...................          19          20          18
01.04   Claims processed................          59          57          56
01.05   Other operating expenses........                       2           2
                                           ---------   ---------  ----------
01.91     Total operating expenses......          93         101          95
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................         341         348         308
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         114         244
22.00 New budget authority (gross)......         547         433         390
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         138
22.40 Capital transfer to general fund..        -215        -329         -82
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         584         348         308
23.95 Total new obligations.............        -341        -348        -308
24.40 Unobligated balance carried 
        forward, end of year............         244
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         132
69.00 Offsetting collections (cash).....         415         433         390
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         547         433         390
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          45          88          90
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          45          88          90
73.10 Total new obligations.............         341         348         308
73.20 Total outlays (gross).............        -160        -346        -319
73.45 Recoveries of prior year 
        obligations.....................        -138
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          88          90          79
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          88          90          79
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         115         258         229
86.98 Outlays from mandatory balances...          45          88          90
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         160         346         319
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources: Payments 
              from direct loan financing 
              account...................        -181        -262        -238
88.00       Federal sources: Payments 
              from loan sales...........         -37         -36         -30
          Non-Federal sources:
            Non-Federal sources:

88.40         Loan and other repayments.         -46         -24         -21
88.40         Sale of homes, cash.......         -95         -69         -62
88.40         Interest on loans.........         -35         -32         -29
88.40         Collection of claims 
                (veteran indebtedness)..         -20         -10         -10
88.40         Other revenue.............          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -415        -433        -390
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         132
90.00 Outlays...........................        -255         -87         -71
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2000 actual  2001 est.   2002 est.
Enacted/requested:
  Budget Authority..................         132
  Outlays...........................        -255         -87         -71
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................
  Outlays...........................                                  34
                                    ------------------------------------
Total:
  Budget Authority..................         132

[[Page 901]]

  Outlays...........................        -255         -87         -37
                                    ====================================

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         317         164         148
1232  Disbursements: Purchase of loans 
        assets from the public..........          12           9           8
      Repayments:

1251    Repayments and prepayments......         -46         -24         -21
1253    Proceeds from loan asset sales 
          to the public with recourse...          -9         -13         -12
1261  Adjustments: Capitalized interest.          23          12          11
1264  Write-offs for default: Other 
        adjustments, net................        -133
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         164         148         134
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      17,638      12,740       9,132
2232  Guarantees of loans sold to the 
        public with recourse............           1
2251  Repayments and prepayments........      -4,623      -3,339      -2,393
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -27         -36         -35
2262    Terminations for default that 
          result in acquisition of 
          property......................        -190        -175        -148
2263    Terminations for default that 
          result in claim payments......         -59         -58         -56
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      12,740       9,132       6,500
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       5,763       4,131       2,941
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         574         286         286
2331    Disbursements for guaranteed 
          loan claims...................          27          36          35
2351    Repayments of loans receivable..         -20         -10         -10
2361    Write-offs of loans receivable..        -116         -26         -25
2364    Other adjustments, net..........        -179
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         286         286         286
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         393             93           101             81
0102  Expense...........................        -168            -93          -101            -95
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............         225                                         -14
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4025-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         160
        Investments in US securities:
          Receivables, net:
1106        Receivables, net............          93
1106        Receivables, net............                        165           148            134
      Non-Federal assets:

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

1401    Direct loans receivable, gross..         377
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         377
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         870            165           148            134
    LIABILITIES:
      Federal liabilities:

2103    Debt............................                        165           148            134
2105    Federal liabilities: Other......         731
      Non-Federal liabilities:

2201    Accounts payable................         149
2207    Other...........................         -10
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         870            165           148            134
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         870            165           148            134
-----------------------------------------------------------------------------------------------

    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.

                                

        Veterans Housing Benefit Program Fund Liquidating Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-4-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -34
22.40 Capital transfer to general fund..                                  34
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                 -34
                                                                         -34
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            direct loan financing 
            account.....................                                 203
          Non-Federal sources:
            Non-Federal sources:

88.40         Loan and other repayments.                                  -1
88.40         Sale of homes, cash.......                                -168
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                  34
----------------------------------------------------------------------------

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

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

                                

          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, [$532,000] 
$544,000, 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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

  guaranteed transitional housing loans for homeless veterans program 
                                 account

                      (including transfer of funds)

    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, 2001, as enacted by section 1(a)(1) of P.L. 
106-377.)

[[Page 902]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........                       6          10
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................           1           7          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           6          51          45
22.00 New budget authority (gross)......          46           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          52          52          46
23.95 Total new obligations.............          -1          -7         -11
24.40 Unobligated balance carried 
        forward, end of year............          51          45          35
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

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

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

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

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.98 Outlays from mandatory balances...                       6          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           7          11
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 36-0128-0-1-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................           2           3           3
                                           ---------   ---------  ----------
1159    Total direct loan levels........           2           3           3
    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.............          93          13          20
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....          93          13          20
    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..........          45
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..          45
    Guaranteed loan subsidy outlays:
2340  Subsidy outlays...................                       6          10
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                       6          10
----------------------------------------------------------------------------

    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.

                                

   Miscellaneous Veterans Housing Loans Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

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

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

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)           3           2           3
      Spending authority from offsetting 
          collections:

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

    Change in unpaid obligations:
73.10 Total new obligations.............           3           4           4
73.20 Total financing disbursements 
        (gross).........................          -3          -4          -4
87.00 Total financing disbursements 
        (gross).........................           3           4           4
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

[[Page 903]]



    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           1           1           2
90.00 Financing disbursements...........           1           2           2
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................           2           3           3
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           2           3           3
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          16          17          19
1231  Disbursements: Direct loan 
        disbursements...................           2           3           3
1251  Repayments: Repayments and 
        prepayments.....................          -2          -1          -2
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................           1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          17          19          20
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4130-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

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

1401    Direct loans receivable, gross..          17             17            19             20
1402    Interest receivable.............                         -1
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          17             16            19             20
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          18             17            19             21
    LIABILITIES:
      Federal liabilities:

2103    Federal liabilities debt........                         17            19             17
2104    Resources payable to Treasury...          18
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          18             17            19             17
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          18             17            19             17
-----------------------------------------------------------------------------------------------

    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.

                                

 Miscellaneous Veterans Housing Loans Guaranteed Loan Financing Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                   6
22.00 New financing authority (gross)...                       6          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                       6          16
24.40 Unobligated balance carried 
        forward, end of year............                       6          16
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections 
          (gross): Offsetting 
          collections (cash)............                       6          10
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Sources: Payments from 
            Program Account.............                      -6         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                      -6         -10
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                      -6         -10
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................                      13          20
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                      13          20
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                  13
2231  Disbursements of new guaranteed 
        loans...........................                      13          20
2251  Repayments and prepayments........                                  -2
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                      13          31
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                      13          31
---------------------------------------------------------------------------

    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.

                                

        Miscellaneous Veterans Programs Loan Fund Program Account

             Vocational Rehabilitation Loans Program Account

                      (including transfer of funds)

    For the cost of direct loans, [$52,000] $72,000, 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 [$2,726,000] $3,301,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$432,000] $274,000, 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, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

                   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 $3,400.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, [$220,000] $64,000, 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, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0140-0-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Administrative expenses...........           1           1
                                           ---------   ---------  ----------

[[Page 904]]


10.00   Total new obligations (object 
          class 25.3)...................           1           1
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1           1
----------------------------------------------------------------------------

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

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

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

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

----------------------------------------------------------------------------
Identification code 36-0140-0-1-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels, vocational 
        rehabiliation...................           2           3           3
                                           ---------   ---------  ----------
1159    Total direct loan levels........           2           3           3
    Direct loan subsidy (in percent):
1320  Voc. Rehab. Loan subsidy rate.....        2.23        1.88        2.18
1320  Education Loan subsidy rate.......       29.68       13.93        7.81
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...        2.23        1.88        2.18
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           1           1
3590  Outlays...........................           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 $866 
(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.

                                

 Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           4           6           6
22.60 Portion applied to repay debt.....          -2          -3          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           3           3
23.95 Total new obligations.............          -2          -3          -3
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.15   Authority to borrow (indefinite)           2           3           3
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           3           3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4           6           6
----------------------------------------------------------------------------

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

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4259-0-3-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........           2           3           3
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           2           3           3
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           1           1           1
1231  Disbursements: Direct loan 
        disbursements...................           2           3           3
1251  Repayments: Repayments and 
        prepayments.....................          -2          -3          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           1           1           1
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   36-4259-0-3-702    1999 actual    2000 actual     2001 est.      2002 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

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

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

[[Page 905]]

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.

                                

  

                               Trust Funds

               Post-Vietnam Era Veterans Education Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Receipts:
02.20 Deductions from military pay......           2           1           1
02.40 Contributions.....................           2           1           1
                                           ---------   ---------  ----------
02.99   Total receipts and collections..           4           2           2
    Appropriations:
05.00 Post-Vietnam era veterans 
        education account...............          -4          -2          -2
                                           ---------   ---------  ----------
05.99   Total appropriations............          -4          -2          -2
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to post-Vietnam era 
        trainees........................           4           4           4
00.03 Participant disenrollments........           9          11           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........          13          15          13
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         106          97          84
22.00 New budget authority (gross)......           4           2           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         110          99          86
23.95 Total new obligations.............         -13         -15         -13
24.40 Unobligated balance carried 
        forward, end of year............          97          84          73
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................          13          13          11
60.45   Portion precluded from 
          obligation....................          -9         -11          -9
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           4           2           2
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           2           1           1
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           2           1           1
73.10 Total new obligations.............          13          15          13
73.20 Total outlays (gross).............         -13         -15         -12
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           1           1           2
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           1           1           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           4           2           2
86.98 Outlays from mandatory balances...           9          13          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13          15          12
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           4           2           2
90.00 Outlays...........................          13          15          12
---------------------------------------------------------------------------

    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. Public Law 106-419, enacted November 1, 2000, provides qualified 
participants in this program another opportunity (through October 31, 
2001) to convert to the All-Volunteer Force Educational Assistance 
program (Montgomery GI Bill). The estimated activity in the fund 
follows:

    CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                        [In millions of dollars]

                                     2000 actual  2001 est.   2002 est.

Total budget authority..............          $4          $2          $2
  Servicepersons....................          $2          $1          $1
  Transferred from Department of 
    Defense (bonus).................          $0          $1          $1
  Transferred from Department of 
    Defense (matching)..............          $1          $1          $0
  Transferred from Department of 
    Defense (section 901)...........          $1          $0          $0
Total participants (end of year)....     221,385     210,385     200,385
Total contributors (end of year)....       2,382       1,600         700
Average contribution per contributor 
(actual dollars)....................        $923        $923        $923
Number of disenrollments............      10,646      12,600      10,700
Total refunds.......................          $9         $11          $9
Total trainees......................       2,522       1,680       1,180
Total trainee cost..................          $4          $4          $4
Average cost per trainee (actual 
dollars)............................      $1,506      $2,476      $2,966
Section 901 trainees................          23          20          20

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................           4           4           4
44.0  Refunds...........................           9          11           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........          13          15          13
---------------------------------------------------------------------------

                                

                  National Service Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............      10,572      10,425      10,188
    Receipts:
02.20 Premium and other receipts........         201         190         179
02.40 Interest..........................         887         854         816
02.41 Payments from general and special 
        funds...........................           1           1           1
02.80 National Service Life Insurance 
        fund, offsetting collections....         497         481         454
                                           ---------   ---------  ----------
02.99   Total receipts and collections..       1,586       1,526       1,450
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...      12,158      11,951      11,638
    Appropriations:
05.00 National Service Life Insurance 
        fund............................      -1,733      -1,763      -1,768
                                           ---------   ---------  ----------
05.99   Total appropriations............      -1,733      -1,763      -1,768
                                           ---------   ---------  ----------
07.99 Balance, end of year..............      10,425      10,188       9,870
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct:

        Operating expenses:
00.01     Death claims..................         612         658         703
00.02     Disability claims.............          15          14          13
00.03     Matured endowments............           7           6           8
00.04     Cash surrenders...............          27          30          32
00.05     Dividends.....................         408         388         369
00.06     Interest paid on dividend 
            credits and deposits........          38          57          59
00.07     Payment to general operating 
            expenses....................          21          22          22
                                           ---------   ---------  ----------
00.91       Total operating expenses....       1,128       1,175       1,206
02.01 Capital investment: Policy loans..         108         107         107
                                           ---------   ---------  ----------
02.93   Total direct obligations........       1,236       1,282       1,313
      Reimbursable program:

09.01   Death claims....................         261         243         225
09.01   Disability claims...............           7           6           6
09.01   Matured endowments..............           3           3           4
09.01   Cash surrenders.................          13          14          15
09.01   Dividends.......................         186         179         168
09.01   Interest paid on dividend 
          credits and deposits..........          17          26          27

[[Page 906]]

09.01   Payment to general operating 
          expenses......................          10          10          10
                                           ---------   ---------  ----------
09.09     Reimbursable program..........         497         481         455
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,733       1,763       1,768
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,733       1,763       1,768
23.95 Total new obligations.............      -1,733      -1,763      -1,768
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................       1,090       1,046         996
69.00 Offsetting collections (cash).....         497         481         454
69.26 From offsetting collections 
        (unavailable balances)..........         146         236         318
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         643         717         772
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,733       1,763       1,768
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................       1,390       1,385       1,377
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................       1,390       1,385       1,377
73.10 Total new obligations.............       1,733       1,763       1,768
73.20 Total outlays (gross).............      -1,738      -1,771      -1,776
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.       1,385       1,377       1,369
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year       1,385       1,377       1,369
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,587       1,527       1,450
86.98 Outlays from mandatory balances...         151         244         326
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,738       1,771       1,776
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of loans.........        -123        -119        -117
88.40       Optional settlements........          -3          -2          -2
88.40       Net income offsets 
              adjustments...............        -371        -360        -335
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -497        -481        -454
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,236       1,282       1,314
90.00 Outlays...........................       1,242       1,290       1,322
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      11,954      11,804      11,561
92.02 Total investments, end of year: 
        Federal securities: Par value...      11,804      11,561      11,234
---------------------------------------------------------------------------
    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. It is 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

                                     2000 actual  2001 est.   2002 est.

Number of policies..................   1,715,536   1,609,680   1,503,100
Insurance in force (dollars in 
millions)...........................      17,013      16,269      15,502

    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 $12,507 million as of September 30, 2001 to $12,209 
million as of September 30, 2002. The actuarial estimate of policy 
obligations as of September 30, 2002, total $11,193 million, leaving a 
balance of $296 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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Uninvested balance [unavailable 
        collections]....................           9           6           4
0101  U.S. Securities: Par value........      11,954      11,804      11,561
                                           ---------   ---------  ----------
0199    Total balance, start of year....      11,962      11,810      11,565
    Cash income during the year:
      Current law:

        Offsetting receipts 
            (proprietary):
1220      NSLI fund, premium and other 
            receipts....................         201         190         179
        Offsetting receipts 
            (intragovernmental):
1240      NSLI fund,interest............         887         854         816
1241      NSLI fund, payments from 
            general and special funds...           1           1           1
        Offsetting collections:
1280      NSLI fund, offsetting 
            collections.................         497         481         454
1299    Income under present law........       1,586       1,526       1,450
    Cash outgo during year:
      Current law:

4500    National service life insurance 
          fund..........................      -1,738      -1,771      -1,776
    Unexpended balance, end of year:
8700  Uninvested balance................           6           4           5
8701  Federal securities: Par value.....      11,804      11,561      11,234
                                           ---------   ---------  ----------
8799    Total balance, end of year......      11,810      11,565      11,239
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

33.0    Investments and loans...........         108         107         107
42.0    Insurance claims and indemnities         661         708         756
43.0    Interest and dividends..........         467         467         450
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       1,236       1,282       1,313
99.0  Reimbursable obligations..........         497         481         455
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,733       1,763       1,768
---------------------------------------------------------------------------

                                

              United States Government Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............          61          55          50
    Receipts:
02.40 Interest and profits on 
        investments in public debt 
        securities......................           5           5           4
02.80 United States government life 
        insurance fund, offsetting 
        collections.....................           1           1           1
                                           ---------   ---------  ----------
02.99   Total receipts and collections..           6           6           5
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          67          61          55
    Appropriations:
05.00 United States government life 
        insurance fund..................         -12         -11         -11
                                           ---------   ---------  ----------
05.99   Total appropriations............         -12         -11         -11
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          55          50          44
---------------------------------------------------------------------------

[[Page 907]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

00.01   Death claims....................           2           2           2
00.05   Dividends.......................           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......................           4           4           4
09.02 Dividends.........................           3           2           3
                                           ---------   ---------  ----------
09.09   Reimbursable program............           7           6           7
                                           ---------   ---------  ----------
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)...................           5           5           4
69.00 Offsetting collections (cash).....           1           1           1
69.26 From offsetting collections 
        (unavailable balances)..........           6           5           6
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................           7           6           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12          11          11
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          19          19          18
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          19          19          18
73.10 Total new obligations.............          12          11          11
73.20 Total outlays (gross).............         -12         -12         -12
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          19          18          17
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          19          18          17
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           6           6           5
86.98 Outlays from mandatory balances...           6           6           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          12          12
----------------------------------------------------------------------------

    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...........................          11          11          11
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          80          73          68
92.02 Total investments, end of year: 
        Federal securities: Par value...          73          68          62
---------------------------------------------------------------------------
    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

                                     2000 actual  2001 est.   2002 est.
Number of policies..................      16,280      14,600      12,970
Insurance in force (dollars in 
millions)...........................          53          48          42

    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 $72 million 
as of September 30, 2001, to $65 million as of September 30, 2002, as an 
increasing number of policies mature through death or disability. The 
actuarial evaluation of policy obligations as of September 30, 2002, 
totals $63 million, leaving a balance of $2 million for contingency 
reserves.

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

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0101  U.S. Securities: Par value........          80          73          68
                                           ---------   ---------  ----------
0199    Total balance, start of year....          80          74          68
    Cash income during the year:
      Current law:

        Offsetting receipts 
            (intragovernmental):
1240      Interest and profits on 
            investments in public debt 
            securities, USGLI, VA.......           5           5           4
        Offsetting collections:
1280      Offsetting collections, USGLI.           1           1           1
1299    Income under present law........           6           6           5
    Cash outgo during year:
      Current law:

4500    United States government life 
          insurance fund................         -12         -12         -12
    Unexpended balance, end of year:
8701  Federal securities: Par value.....          73          68          62
                                           ---------   ---------  ----------
8799    Total balance, end of year......          74          68          61
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

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

                                

                  Veterans Special Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............       1,439       1,462       1,481
    Receipts:
02.80 Veterans special life insurance 
        fund, offsetting collections....         235         232         228
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       1,674       1,694       1,709
    Appropriations:
05.00 Veterans special life insurance 
        fund............................        -212        -213        -214
                                           ---------   ---------  ----------
05.99   Total appropriations............        -212        -213        -214
                                           ---------   ---------  ----------
07.99 Balance, end of year..............       1,462       1,481       1,495
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Death claims......................          53          58          58
09.01 Cash surrenders...................           5           5           5
09.01 Dividends.........................          96          94          94
09.01 All other.........................          33          31          32
09.01 Payment to general operating 
        expenses account................           5           5           5
09.02 Capital investment................          20          20          20
                                           ---------   ---------  ----------
10.00   Total new obligations...........         212         213         214
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         212         213         214

[[Page 908]]

23.95 Total new obligations.............        -212        -213        -214
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         235         232         228
69.26   From offsetting collections 
          (unavailable balances)........         -23         -19         -14
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         212         213         214
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         229         249         264
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         229         249         264
73.10 Total new obligations.............         212         213         214
73.20 Total outlays (gross).............        -192        -198        -197
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         249         264         281
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         249         264         281
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          17          19          14
86.98 Outlays from mandatory balances...         175         180         183
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         192         198         197
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Interest on loans...........          -5          -6          -6
88.40       Insurance premiums earned...         -68         -66         -64
88.40       Optional settlements........                      -1
88.40       Repayments of loans.........         -17         -17         -17
88.45     Offsetting governmental 
            collections from the public.        -145        -142        -141
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -235        -232        -228
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -23         -19         -14
90.00 Outlays...........................         -43         -34         -31
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       1,666       1,709       1,743
92.02 Total investments, end of year: 
        Federal securities: Par value...       1,709       1,743       1,777
---------------------------------------------------------------------------
    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

                                     2000 actual  2001 est.   2002 est.
Number of policies..................     242,608     237,160     231,670
Insurance in force (dollars in 
millions)...........................       2,669       2,635       2,595

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

    Operating results and financial condition.--Lower than expected 
death rates 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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............          20          20          20
42.0  Insurance claims and indemnities..          76          78          79
43.0  Interest and dividends............         116         115         115
                                           ---------   ---------  ----------
99.9    Total new obligations...........         212         213         214
---------------------------------------------------------------------------

                                


 
                              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, [$66,040,000] $183,180,000, to 
remain available until expended, of which $60,000,000 shall be for 
Capital Asset Realignment for Enhanced Services (CARES) activities; and 
of which not to exceed $20,000,000 shall be for costs associated with 
land acquisitions for national cemeteries in the vicinity of Sacramento, 
California, Pittsburgh, Pennsylvania, and Detroit, Michigan: Provided, 
That except for advance planning [of projects] activities (including 
market-based and other 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, and planning and design activities funded through the CARES fund 
(including market-based and other assessments of needs which may lead to 
capital investments), 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 [2001] 2002, for each approved project 
(except those for CARES activities and the three land acquisitions 
referenced above) shall be obligated: (1) by the awarding of a 
construction documents contract by September 30, [2001] 2002; and (2) by 
the awarding of a construction contract by September 30, [2002] 2003: 
Provided further, That the Secretary shall promptly report in writing to 
the Committees on Appropriations any approved major construction project 
in which obligations are not incurred within the time limitations 
established above: Provided further, That no funds from any other 
account except the ``Parking revolving fund'', may be obligated for 
constructing, altering, extending, or improving a project which was 
approved in the budget process and funded in this account until one year 
after substantial completion and beneficial occupancy by the Department 
of Veterans Affairs of the project or any part thereof with respect to 
that part only. (Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2001, as 
enacted by section 1(a)(1) of P.L. 106-377.)

[[Page 909]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Replacement and modernization.....          38          15          23
00.02 Clinical Improvements.............          34           1           1
00.06 Other improvements................         121         135          98
00.07 National cemeteries...............          19           9          65
00.08 Replacement or renovation of 
        regional offices................           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         213         161         188
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         565         417         322
22.00 New budget authority (gross)......          65          66         183
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         630         483         505
23.95 Total new obligations.............        -213        -161        -188
24.40 Unobligated balance carried 
        forward, end of year............         417         322         317
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          65          66         183
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          65          66         183
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         258         299         318
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         258         299         318
73.10 Total new obligations.............         213         161         188
73.20 Total outlays (gross).............        -172        -142        -107
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         299         318         399
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         299         318         399
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           3           8
86.93 Outlays from discretionary 
        balances........................         169         138          99
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         172         142         107
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          65          66         183
90.00 Outlays...........................         172         142         107
---------------------------------------------------------------------------

    Funds are requested for: an emergency electrical project at Miami, 
Florida; activities related to CARES; a new cemetery at Atlanta, 
Georgia; cemetery expansion projects at Massachusetts National Cemetery 
and Tahoma, Washington; and land acquisition for new cemeteries in the 
vicinity of Sacramento, California; Pittsburgh, Pennsylvania; and 
Detroit, Michigan.

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

                     Department of Veterans Affairs

                  Budget Authority by Program Activity

                        [In millions of dollars]

                                     2000 actual  2001 est.   2002 est.
Clinical improvements...............          31
General.............................                                  78
Patient environment.................          18           1
Other departments...................          24          68         105
Design fund offset..................         (1)         (1)
Less rescission.....................
Reprogramming.......................         (7)         (2)
                                    ------------------------------------
      Total budget authority........          65          66
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           2           2           2
25.2  Other services....................          45          40          45
26.0  Supplies and materials............           2           3           3
31.0  Equipment.........................           2           2           3
32.0  Land and structures...............         162         114         135
                                           ---------   ---------  ----------
99.9    Total new obligations...........         213         161         188
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          21          50          50
---------------------------------------------------------------------------

                                

                      Construction, Minor Projects

    For constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, including planning and assessments of needs which may 
lead to capital investments, 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, 8122, and 8162 of title 38, 
United States Code, where the estimated cost of a project is less than 
$4,000,000, [$162,000,000] $178,900,000, 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, of which 
$25,000,000 shall be for Capital Asset Realignment for Enhanced Services 
(CARES) activities: Provided, That from amounts appropriated under this 
heading, additional amounts may be used for CARES activities: Provided 
further, 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, 2001, as 
enacted by section 1(a)(1) of P.L. 106-377.)
    [For an additional amount for ``Construction, minor projects'', 
$8,840,000, to remain available until expended.] (Division A, 
Miscellaneous Appropriations Act, 2001, as enacted by section 1(a)(4) of 
P.L. 106-554.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Medical programs..................         128         136         154
00.06 National cemeteries...............          11          28          20
00.07 Staff Offices.....................           4           7           8
00.08 Replacement or renovation of 
        regional offices................           4          10          11
                                           ---------   ---------  ----------
10.00   Total new obligations...........         147         181         193
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          44          56          41
22.00 New budget authority (gross)......         160         166         179
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         204         222         220
23.95 Total new obligations.............        -147        -181        -193
24.40 Unobligated balance carried 
        forward, end of year............          56          41          27
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

        Appropriation:
40.00     Appropriation.................         160         162         179
40.00     Appropriation (omnibus 
            legislation)................                       9
41.00   Transferred to other accounts...                      -5
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         160         166         179
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         231         215         231
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         231         215         231
73.10 Total new obligations.............         147         181         193

[[Page 910]]

73.20 Total outlays (gross).............        -164        -167        -168
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         215         231         256
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         215         231         256
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          42          43          47
86.93 Outlays from discretionary 
        balances........................         121         124         122
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         164         167         168
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         160         166         179
90.00 Outlays...........................         164         167         168
---------------------------------------------------------------------------

    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 and regional 
and staff offices.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
11.3  Personnel compensation: Other than 
        full-time permanent.............           2           2           2
25.2  Other services....................          15          16          18
26.0  Supplies and materials............           2           2           2
32.0  Land and structures...............         128         161         171
                                           ---------   ---------  ----------
99.9    Total new obligations...........         147         181         193
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          50          80          80
---------------------------------------------------------------------------

                                

        Grants for Construction of State Extended Care Facilities

    For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter existing 
hospital, nursing home and domiciliary facilities in State homes, for 
furnishing care to veterans as authorized by 38 U.S.C. 8131-8137, 
[$100,000,000] $50,000,000, to remain available until expended. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0181-0-1-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................          16         203          74
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          16         203          74
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          53         127          24
22.00 New budget authority (gross)......          90         100          50
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         143         227          74
23.95 Total new obligations.............         -16        -203         -74
24.40 Unobligated balance carried 
        forward, end of year............         127          24
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          90         100          50
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          90         100          50
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         150          62         181
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         150          62         181
73.10 Total new obligations.............          16         203          74
73.20 Total outlays (gross).............        -104         -85         -91
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          62         181         163
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          62         181         163
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................         104          85          91
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          90         100          50
90.00 Outlays...........................         104          85          91
---------------------------------------------------------------------------

    In 2001, the Department plans to obligate $203 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.

                                

        Grants for the Construction of State Veterans Cemeteries

    For grants to aid States in establishing, expanding, or improving 
State veterans 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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0183-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to States..................          19          41          25
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          19          41          25
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           9          16
22.00 New budget authority (gross)......          25          25          25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          34          41          25
23.95 Total new obligations.............         -19         -41         -25
24.40 Unobligated balance carried 
        forward, end of year............          16
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

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

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

72.40   Unpaid obligations, start of 
          year..........................          15          22          45
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          15          22          45
73.10 Total new obligations.............          19          41          25
73.20 Total outlays (gross).............         -12         -17         -21
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          22          45          49
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          22          45          49
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3
86.93 Outlays from discretionary 
        balances........................           9          16          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          17          21
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          25          25          25
90.00 Outlays...........................          12          17          21
---------------------------------------------------------------------------

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

[[Page 911]]

                                

Public enterprise funds:

                         Parking Revolving Fund

    For the parking revolving fund as authorized by 38 U.S.C. 8109, 
income from fees collected[,] and $4,000,000 from the General Fund, both 
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, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating expenses: parking leases           2           2           3
09.01 Capital Investment: parking 
        construction program............           3           6           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5           8          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          14          12          14
22.00 New budget authority (gross)......           3          10           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          17          22          21
23.95 Total new obligations.............          -5          -8         -11
24.40 Unobligated balance carried 
        forward, end of year............          12          14          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                   4
42.00   Transferred from other accounts.                       7
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                       7           4
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           3           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           3          10           7
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          16           3           4
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          16           3           4
73.10 Total new obligations.............           5           8          11
73.20 Total outlays (gross).............         -18          -7          -7
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           3           4           8
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           3           4           8
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           3           3
86.93 Outlays from discretionary 
        balances........................          15           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          18           7           7
----------------------------------------------------------------------------

    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..................                       7           4
90.00 Outlays...........................          15           4           4
---------------------------------------------------------------------------

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4538-0-3-703      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
23.2  Direct obligations: Rental 
        payments to others..............           2           2           2
32.0  Reimbursable obligations: Land and 
        structures......................           3           6           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........           5           8          11
---------------------------------------------------------------------------

                                

                      Pershing Hall Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4018-0-3-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1           1
24.40 Unobligated balance carried 
        forward, 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.

                                


 
                       DEPARTMENTAL ADMINISTRATION

                       General Operating Expenses

    For necessary operating expenses of the Department of Veterans 
Affairs, not otherwise provided for, including uniforms or allowances 
therefor; not to exceed $25,000 for official reception and 
representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security guard 
services, and the Department of Defense for the cost of overseas 
employee mail, [$1,050,000,000] $1,194,831,000: 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 [$45,000,000] $60,000,000 shall be available 
until September 30, [2002: Provided further, That funds under this 
heading shall be available to administer the Service Members 
Occupational Conversion and Training Act] 2003: Provided further, That 
of the funds made available under this heading, the Veterans Benefits 
Administration may purchase up to four passenger motor vehicles for use 
in their Manila, Philippines operation. (Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Veterans benefits:
00.04     Compensation and pensions.....         553         639         733
00.05     Education.....................          65          68          91
00.06     Vocational rehabilitation and 
            counseling..................          80         117         128
00.09     Insurance\1\..................           3           3           4
00.11     General administration........         235         258         239
                                           ---------   ---------  ----------
01.00   Total Direct Program............         936       1,085       1,195
      Reimbursable program:

09.01   Administration of housing credit 
          programs......................         157         162         164
09.02   Administration of other credit 
          programs......................           1           1           1
09.03   Administration of insurance 
          programs......................          37          39          39
09.04   Other reimbursable programs.....          94         175         191
                                           ---------   ---------  ----------
09.99     Total reimbursable program....         289         377         395
                                           ---------   ---------  ----------

[[Page 912]]


10.00   Total new obligations...........       1,225       1,462       1,590
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       4
22.00 New budget authority (gross)......       1,230       1,457       1,590
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,230       1,461       1,590
23.95 Total new obligations.............      -1,225      -1,462      -1,590
24.40 Unobligated balance carried 
        forward, end of year............           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         913       1,050       1,195
40.77   Reduction pursuant to P.L. 106-
          554 (0.22 percent)............                      -2
42.00   Transferred from other accounts.          28          32
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         941       1,080       1,195
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         289         377         395
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         289         377         395
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,230       1,457       1,590
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         142         190         108
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         142         190         108
73.10 Total new obligations.............       1,225       1,462       1,590
73.20 Total outlays (gross).............      -1,170      -1,543      -1,578
73.40 Adjustments in expired accounts 
        (net)...........................          -8
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         190         108         119
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         190         108         119
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,036       1,349       1,471
86.93 Outlays from discretionary 
        balances........................         134         194         108
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,170       1,543       1,578
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -289        -377        -395
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         941       1,080       1,195
90.00 Outlays...........................         881       1,166       1,183
---------------------------------------------------------------------------
    \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 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 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]

                                     2000 actual  2001 est.   2002 est.
Compensation:
  Rating-Related Actions \1\........         500         485         471
  Non Rating Actions \2\............         203         199         195
Pension:
  Rating-Related Actions \1\........         101          98          95
  Non Rating Actions \2\............         575         564         552
    \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]

                                     2000 actual  2001 est.   2002 est.
Education:
  Original claims...................         128         199         241
  Adjustments/supplemental claims...         810       1,015       1,225

     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]

                                     2000 actual  2001 est.   2002 est.
Loan guaranty:
  Construction and valuation (number 
    of reviews).....................         286         280         275
  Loan processing (number of loans).         608         668         660
  Loan service and claims (number of 
    loans and claims)...............         260         265         270
  Property management (number of 
    properties).....................          61          60          58

    Vocational rehabilitation and employment.--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]

                                     2000 actual  2001 est.   2002 est.
Vocational rehabilitation and 
    employment:
  Evaluation and planning...........          57          58          59
  Rehabilitation services...........          64          66          67
  Employment services status........          16          16          16
  Vocational/educational counseling.          10          10          10

    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]

                                     2000 actual  2001 est.   2002 est.
Insurance:
  Policy service actions............       1,043       1,011         979
  Collections.......................       2,905       2,769       2,648
  Disability claims.................          11          12          11
  Insurance awards..................       1,168         912         461

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

[[Page 913]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         538         574         663
11.5      Other personnel compensation..          15          12          13
                                           ---------   ---------  ----------
11.9        Total personnel compensation         553         586         676
12.1    Civilian personnel benefits.....         121         129         153
13.0    Benefits for former personnel...           4           3           2
        Travel and transportation of 
            persons:
21.0      Employee travel...............          12          12          12
21.0      Interagency motor pool 
            payments....................           2           2           2
22.0    Transportation of things........           1           2           2
23.1    Rental payments to GSA..........          73          78          90
23.2    Rental payments to others.......           6           7           9
23.3    Communications, utilities, and 
          miscellaneous charges.........          56          74          42
24.0    Printing and reproduction.......           3           2           3
25.2    Other services..................          82         138         165
26.0    Supplies and materials..........          12          13           9
31.0    Equipment.......................          11          39          30
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         936       1,085       1,195
99.0  Reimbursable obligations..........         289         377         395
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,225       1,462       1,590
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment\1\...      10,677      11,583      12,245
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......       3,138       2,975       3,242
---------------------------------------------------------------------------
    \1\ Reflects FTE treated as reimbursements in all years and the 
effects of Credit Reform, per P.L. 101-508.

                                

                       Office of Inspector General

                     [(including transfer of funds)]

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
[$46,464,000: Provided, That of the amount made available under this 
heading, not to exceed $28,000 may be transferred to and merged with the 
appropriation for ``General operating expenses''] $48,308,000. 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct program....................          43          46          48
09.00 Reimbursable program..............           2           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          45          49          51
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          45          49          51
23.95 Total new obligations.............         -45         -49         -51
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          43          46          48
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           2           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          45          49          51
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           8          11           7
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           8          11           7
73.10 Total new obligations.............          45          49          51
73.20 Total outlays (gross).............         -41         -53         -51
73.40 Adjustments in expired accounts 
        (net)...........................          -1
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          11           7           7
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          11           7           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          38          47          49
86.93 Outlays from discretionary 
        balances........................           5           6           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          41          53          51
----------------------------------------------------------------------------

    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..................          43          46          48
90.00 Outlays...........................          39          50          48
---------------------------------------------------------------------------

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          25          29          31
12.1    Civilian personnel benefits.....           6           6           7
21.0    Travel and transportation of 
          persons.......................           2           2           3
23.1    Rental payments to GSA..........           2           2           2
25.2    Other services..................           8           7           5
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          43          46          48
99.0  Reimbursable obligations..........           2           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          45          49          51
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......         335         369         366
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          19          24          24
---------------------------------------------------------------------------

                                

                    National Cemetery Administration

                     [(including transfer of funds)]

    For necessary expenses [for the maintenance and operation of the 
National Cemetery Administration] of the National Cemetery 
Administration for operations and maintenance, not otherwise provided 
for, including uniforms or allowances therefor; cemeterial expenses as 
authorized by law; purchase of [two] one passenger motor [vehicles] 
vehicle for use in cemeterial operations; and hire of passenger motor 
vehicles, [$109,889,000: Provided, That travel expenses shall not exceed 
$1,125,000: Provided further, That of the amount made available under 
this heading, not to exceed $125,000 may be transferred to and merged 
with the appropriation for ``General operating expenses''] $121,169,000. 
(Departments of Veterans Affairs and Housing and

[[Page 914]]

Urban Development, and Independent Agencies Appropriations Act, 2001, as 
enacted by section 1(a)(1) of P.L. 106-377.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct obligations................          97         110         121
                                           ---------   ---------  ----------
10.00   Total new obligations...........          97         110         121
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          97         110         121
23.95 Total new obligations.............         -97        -110        -121
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          97         110         121
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          15          16          17
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          15          16          17
73.10 Total new obligations.............          97         110         121
73.20 Total outlays (gross).............         -95        -109        -120
73.40 Adjustments in expired accounts 
        (net)...........................          -1
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          16          17          18
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          16          17          18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          83          99         109
86.93 Outlays from discretionary 
        balances........................          12          10          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          95         109         120
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          97         110         121
90.00 Outlays...........................          95         109         120
---------------------------------------------------------------------------

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          44          48          50
11.3    Other than full-time permanent..           8           9           9
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          52          57          59
12.1  Civilian personnel benefits.......          14          16          17
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           4           4           5
25.2  Other services....................          13          19          25
26.0  Supplies and materials............           7           7           7
31.0  Equipment.........................           5           5           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........          97         110         121
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       1,399       1,466       1,499
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                               Supply Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program-COGS-
        Merchandizing...................         586         721         777
09.02 Reimbursable program-Other-
        Operations......................          38          47          50
09.03 Reimbursable program-COGS-Printing 
        and Publications................           6           7           8
09.04 Reimbursable program-Other........           2           2           2
09.05 Reimbursable program-Equipment-
        Procurement Services and 
        Distribution....................           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........         635         780         840
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         152         188         188
22.00 New budget authority (gross)......         671         780         840
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         823         968       1,028
23.95 Total new obligations.............        -635        -780        -840
24.40 Unobligated balance carried 
        forward, end of year............         188         188         188
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         647         780         840
69.10   Change in uncollected customer 
          payments from Federal sources.          24
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         671         780         840
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         271         350         350
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................        -294        -318        -318
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         -23          32          32
73.10 Total new obligations.............         635         780         840
73.20 Total outlays (gross).............        -555        -780        -840
74.00 Change in uncollected customer 
        payments from Federal sources...         -24
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         350         350         350
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................        -318        -318        -318
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          32          32          32
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         555         780         840
----------------------------------------------------------------------------

[[Page 915]]



    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -647        -780        -840
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources.         -24
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -92
---------------------------------------------------------------------------

    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 2002, Supply Fund sales are 
estimated to reach $715 million. Average inventory needed to support 
those sales will be $25 million.

    Operating results.--The Fund operated at a loss of $3 million in 
2000. The new total of retained earnings is $59 million. Operating 
expense as related to sales was 8 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          21          24          27
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          22          25          28
12.1  Civilian personnel benefits.......           4           5           6
21.0  Travel and transportation of 
        persons.........................           2           3           4
23.1  Rental payments to GSA............           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           2           3           3
24.0  Printing and reproduction.........           6           7           8
25.1  Advisory and assistance services..         135         167         179
26.0  Supplies and materials............         279         343         367
31.0  Equipment.........................         184         226         244
                                           ---------   ---------  ----------
99.9    Total new obligations...........         635         780         840
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         358         378         382
---------------------------------------------------------------------------

                                

                             Franchise Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............         159         120         155
                                           ---------   ---------  ----------
10.00   Total new obligations...........         159         120         155
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          18           6           6
22.00 New budget authority (gross)......         147         120         158
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         165         126         164
23.95 Total new obligations.............        -159        -120        -155
24.40 Unobligated balance carried 
        forward, end of year............           6           6           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         147         120         158
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          16          39          41
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          16          39          41
73.10 Total new obligations.............         159         120         155
73.20 Total outlays (gross).............        -134        -120        -158
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          39          41          39
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          39          41          39
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         134         120         158
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -147        -120        -158
----------------------------------------------------------------------------

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

    VA was chosen as a pilot Franchise Fund agency under the Government 
Management and Reform Act, P.L. 103-356, of 1994. This budget extends 
through September 30, 2002, the authority under that Act for franchise 
fund pilots in agencies including VA. 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 $156 million and 
employ 705 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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          34          33          39
12.1  Civilian personnel benefits.......           7          13           8
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           3           4           4
23.3  Communications, utilities, and 
        miscellaneous charges...........          21          24          25
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................          76          42          74
26.0  Supplies and materials............           2           1           2
31.0  Equipment.........................          14           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         159         120         155
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         643         679         705
---------------------------------------------------------------------------
  

                                


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  36-243100  Fees and other charges for 
    medical services....................           1           1           1

[[Page 916]]

  36-247300  Contributions from military 
    personnel, Veteran's Educational 
    Assistance Act of 1984..............          99         296         211
  36-273330  GIF direct loans, Downward 
    reestimates of subsidies............       1,064       1,420
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................       1,164       1,717         212
---------------------------------------------------------------------------

                                

                        Administrative Provisions

                      (including transfer of funds)

    [Sec. 101. Any appropriation for fiscal year 2001 for ``Compensation 
and pensions'', ``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' may be transferred to any other of the mentioned 
appropriations.]
    Sec. [102] 101. Appropriations available to the Department of 
Veterans Affairs for fiscal year [2001] 2002 for salaries and expenses 
shall be available for services authorized by 5 U.S.C. 3109.
    Sec. [103] 102. 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] 103. 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] 104. Appropriations available to the Department of 
Veterans Affairs for fiscal year [2001] 2002 for ``Compensation and 
pensions'', ``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' shall be available for payment of prior year accrued 
obligations required to be recorded by law against the corresponding 
prior year accounts within the last quarter of fiscal year [2000] 2001.
    Sec. [106] 105. Appropriations accounts available to the Department 
of Veterans Affairs for fiscal year [2001] 2002 shall be available to 
pay prior year obligations of corresponding prior year appropriations 
accounts resulting from title X of the Competitive Equality Banking Act, 
Public Law 100-86, except that if such obligations are from trust fund 
accounts they shall be payable from ``Compensation and pensions''.
    Sec. [107] 106. Notwithstanding any other provision of law, during 
fiscal year [2001] 2002, 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 [2001] 2002, 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 [2001] 2002, 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. 107. Beginning in fiscal year 2002 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. Total resources 
available to these offices for fiscal year 2002 shall not exceed 
$28,550,000 for the Office of Resolution Management and $2,383,000 for 
the Office of Employment and Discrimination Complaint Adjudication.
    [Sec. 108. Notwithstanding any other provision of law, collections 
authorized by the Veterans Millennium Health Care and Benefits Act 
(Public Law 106-117) and credited to the appropriate Department of 
Veterans Affairs accounts in fiscal year 2001, shall not be available 
for obligation or expenditure unless appropriation language making such 
funds available is enacted.]
    [Sec. 109. In accordance with section 1557 of title 31, United 
States Code, the following obligated balance shall be exempt from 
subchapter IV of chapter 15 of such title and shall remain available for 
expenditure until September 30, 2003: funds obligated by the Department 
of Veterans Affairs for a contract with the Institute for Clinical 
Research to study the application of artificial neural networks to the 
diagnosis and treatment of prostate cancer through the Cooperative DoD/
VA Medical Research program from funds made available to the Department 
of Veterans Affairs by the Department of Defense Appropriations Act, 
1995 (Public Law 103-335) under the heading ``Research, Development, 
Test and Evaluation, Defense-Wide''.]
    [Sec. 110. As HR LINK$ will not be part of the Franchise Fund in 
fiscal year 2001, funds budgeted in customer accounts to purchase HR 
LINK$ services from the Franchise Fund shall be transferred to the 
General Administration portion of the ``General operating expenses'' 
appropriation in the following amounts: $78,000 from the ``Office of 
Inspector General'', $358,000 from the ``National cemetery 
administration'', $1,106,000 from ``Medical care'', $84,000 from 
``Medical administration and miscellaneous operating expenses'', and 
$38,000 shall be reprogrammed within the ``General operating expenses'' 
appropriation from the Veterans Benefits Administration to General 
Administration for the same purpose.]
    [Sec. 111. Not to exceed $1,600,000 from the ``Medical care'' 
appropriation shall be transferred to the ``General operating expenses'' 
appropriation to fund personnel services costs of employees providing 
legal services and administrative support for the Office of General 
Counsel.]
    [Sec. 112. Not to exceed $1,200,000 may be transferred from the 
``Medical care'' appropriation to the ``General operating expenses'' 
appropriation to fund contracts and services in support of the Veterans 
Benefits Administration's Benefits Delivery Center, Systems Development 
Center, and Finance Center, located at the Department of Veterans 
Affairs Medical Center, Hines, Illinois.]
    [Sec. 113. Not to exceed $4,500,000 from the ``Construction, minor 
projects'' appropriation and not to exceed $2,000,000 from the ``Medical 
care'' appropriation may be transferred to and merged with the Parking 
Revolving Fund for surface parking lot projects.]
    [Sec. 114. Notwithstanding any other provision of this Act, none of 
the funds appropriated or otherwise made available in this Act for 
``Medical care'' appropriations of the Department of Veterans Affairs 
may be obligated for the realignment of the health care delivery system 
in Veterans Integrated Service Network 12 (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.] 
(Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2001, as enacted by section 
1(a)(1) of P.L. 106-377.)

                                


 
                      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

[[Page 917]]

Relief and Emergency Assistance Act; to travel performed by the Offices 
of Inspector General in connection with audits and investigations; or to 
payments to interagency motor pools where separately set forth in the 
budget schedules: Provided further, That if appropriations in titles I, 
II, and III exceed the amounts set forth in budget estimates initially 
submitted for such appropriations, the expenditures for travel may 
correspondingly exceed the amounts therefore set forth in the estimates 
in the same proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban Development and the 
Selective Service System shall be available in the current fiscal year 
for purchase of uniforms, or allowances therefor, as authorized by 5 
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as 
authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a contract 
or fee basis, and for utilizing and making payment for services and 
facilities of Federal National Mortgage Association, Government National 
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal 
Financing Bank, Federal Reserve banks or any member thereof, Federal 
Home Loan banks, and any insured bank within the meaning of the Federal 
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
        (1) pursuant to a certification of an officer or employee of the 
    United States unless--
            (A) such certification is accompanied by, or is part of, a 
        voucher or abstract which describes the payee or payees and the 
        items or services for which such expenditure is being made; or
            (B) the expenditure of funds pursuant to such certification, 
        and without such a voucher or abstract, is specifically 
        authorized by law; and
        (2) unless such expenditure is subject to audit by the General 
    Accounting Office or is specifically exempt by law from such audit.
    Sec. 406. None of the funds provided in this Act to any department 
or agency may be expended for the transportation of any officer or 
employee of such department or agency between 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. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
    (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    Sec. 416. None of the funds appropriated in this Act may be used to 
implement any cap on reimbursements to grantees for indirect costs, 
except as published in Office of Management and Budget Circular A-21.
    Sec. 417. Such sums as may be necessary for fiscal year [2001] 2002 
pay raises for programs funded by this Act shall be absorbed within the 
levels appropriated in this Act.
    Sec. 418. None of the funds made available in this Act may be used 
for any program, project, or activity, when it is made known to the 
Federal entity or official to which the funds are made available that 
the program, project, or activity is not in compliance with any Federal 
law relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Sec. 419. Corporations and agencies of the Department of Housing and 
Urban Development which are subject to the Government Corporation 
Control Act, as amended, are hereby authorized to make such 
expenditures, within the limits of funds and borrowing authority 
available to each such corporation or agency and in accord with law, and 
to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Act as may be necessary in 
carrying out the programs set forth in the budget for [2001] 2002 for 
such corporation or agency except as hereinafter provided: Provided, 
That collections of these corporations and agencies may be used for new 
loan or mortgage purchase commitments only to the extent expressly 
provided for in this Act (unless such loans are in support of other 
forms of assistance provided for in this or prior appropriations Acts), 
except that this proviso shall not apply to the mortgage insurance or 
guaranty operations of these corporations, or where loans or mortgage 
purchases are necessary to protect the financial interest of the United 
States Government.
    [Sec. 420. Notwithstanding section 320(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant 
to authorization under such section for fiscal year 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,] determined by an institution of 
higher education to be necessary to cover a student's cost of attendance 
at such institution and made directly to a student

[[Page 918]]

by a state agency, in addition to other meanings under section 148(b)(7) 
of the National and Community Service Act.
    Sec. [422] 421. 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 to the Congress.
    [Sec. 423. 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. [424] 422. 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. [425] 423. 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. 426. None of the funds provided in title II for technical 
assistance, training, or management improvements may be obligated or 
expended unless HUD provides to the Committees on Appropriations a 
description of each proposed activity and a detailed budget estimate of 
the costs associated with each activity as part of the Budget 
Justifications. For fiscal year 2001, HUD shall transmit this 
information to the Committees by December 1, 2000, for 30 days of 
review.]
    [Sec. 427. None of the funds made available in this Act may be used 
for the designation, or approval of the designation, of any area as an 
ozone nonattainment area under the Clean Air Act pursuant to the 8-hour 
national ambient air quality standard for ozone that was promulgated by 
the Environmental Protection Agency on July 18, 1997 (62 Fed. Reg. 
38,356, p. 38855) and remanded by the District of Columbia Court of 
Appeals on May 14, 1999, in the case, American Trucking Ass'ns. v. EPA 
(No. 97-1440, 1999 Westlaw 300618) prior to June 15, 2001 or final 
adjudication of this case by the Supreme Court of the United States, 
whichever occurs first.]
    [Sec. 428. Section 432 of Public Law 104-204 (110 Stat. 2874) is 
amended--
        (a) in subsection (c) by inserting ``or to restructure and 
    improve the efficiency of the workforce'' after ``the National 
    Aeronautics and Space Administration'' and before ``the 
    Administrator'';
        (b) by deleting paragraph (4) of subsection (h) and inserting in 
    lieu thereof--
                ``(4) The provisions of subsections (1) and (3) of this 
            section may be waived upon a determination by the 
            Administrator that use of the incentive satisfactorily 
            demonstrates downsizing or other restructuring within the 
            Agency that would improve the efficiency of agency 
            operations or contribute directly to evolving mission 
            requirements.''
        (c) by deleting subsection (i) and inserting in lieu thereof--
    ``(i) Reports.--The Administrator shall submit a report on NASA's 
restructuring activities to the Committee on Appropriations of the House 
of Representatives and the Committee on Appropriations of the Senate not 
later than September 30, 2001. This report shall include--
        ``(1) an outline of a timetable for restructuring the workforce 
    at NASA Headquarters and field Centers;
        ``(2) annual Full Time Equivalent (FTE) targets by broad 
    occupational categories and a summary of how these targets reflect 
    the respective missions of Headquarters and the field Centers;
        ``(3) a description of personnel initiatives, such as relocation 
    assistance, early retirement incentives, and career transition 
    assistance, which NASA will use to achieve personnel reductions or 
    to rebalance the workforce; and
        ``(4) a description of efficiencies in operations achieved 
    through the use of the voluntary separation incentive.''; and
        (d) in subsection (j), by deleting ``September 30, 2000'' and 
    inserting in lieu thereof ``September 30, 2002''.]
    [Sec. 429. Section 70113(f) of title 49, United States Code, is 
amended by striking ``December 31, 2000'', and inserting ``December 31, 
2001''.]
    Sec. [430] 424. All Departments and agencies funded under this Act 
are encouraged, within the limits of the existing statutory authorities 
and funding, to expand their use of ``E-Commerce'' technologies and 
procedures in the conduct of their business practices and public service 
activities.
    [Sec. 431. Title III of the National Aeronautics and Space Act of 
1958, Public Law 85-568, is amended by adding the following new section 
at the end:
    ``Sec. 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 2 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 `Human space flight' 
and `Science, aeronautics and technology' accounts, and remain available 
for the period of which originally appropriated.''.] (Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 
106-377.)
