    [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 2003

                         DEPARTMENT OF VETERANS AFFAIRS

        The 2003 budget provides $27,531 million in discretionary funding
    for veterans health, benefits, and other services, including $26,447
    million in gross discretionary budget authority and $1,084 million in
    anticipated discretionary medical collections.

        This funding level recognizes that VA will administer a new state
    grant program that consolidates several training grant programs
    previously administered by the Department of Labor. The funding level
    also recognizes a new annual medical care deductible charged to higher-
    income non-disabled veterans.

        The account by account information provided in the following budget
    schedules is supplemented by a department-wide strategic plan, published
    in September 2001, 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 24 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., [$21,331,164,000] $23,537,183,000, plus reimbursements: Provided,
    That of the funds made available under this heading, [$675,000,000]
    $500,000,000 is for the equipment and land and structures object
    classifications only, which amount shall not become available for
    obligation until August 1, [2002] 2003, and shall remain available until
    September 30, [2003] 2004: Provided further, That of the funds made
    available under this heading, not to exceed $900,000,000 shall be
    available until September 30, [2003: Provided further, That of the funds
    made available under this heading for non-recurring maintenance and
    repair (NRM) activities, $15,000,000 shall be available without fiscal
    year limitation to support the NRM activities necessary to implement
    Capital Asset Realignment for Enhanced Services (CARES) activities:
    Provided further, 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]2004: 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. (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    2002; additional authorizing legislation required.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          59          62          62
        Receipts:
    02.20 Medical care collections..........         771
    02.21 MCCF first party collections......                     228         192
    02.22 MCCF third party collections......                     577         529
    02.23 Pharmaceutical copayments.........                     225         364
    02.24 Enhanced-use lease proceeds.......                       1           1
    02.25 Deductibles, MCCF.................                                 363
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         771       1,031       1,449
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         830       1,093       1,511
        Appropriations:
    05.00 Medical care......................        -768      -1,031      -1,449
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -768      -1,031      -1,449
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          62          62          62
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
              Provision of veterans health
                  care:
    00.01       Acute hospital care.........       5,257       5,456       5,644
    00.02       Rehabilitative care.........         421         447         464
    00.03       Psychiatric care............       1,203       1,187       1,159
    00.04       Nursing home care...........       2,044       2,129       2,247
    00.05       Subacute care...............         371         357         339
    00.06       Residential care............         402         416         415
    00.07       Outpatient care.............       9,970      11,070      12,479
    00.08       Miscellaneous benefits and
                  services..................       1,112       1,210       1,289
    00.09     CHAMPVA.......................         158         236         394
                                               ---------   ---------  ----------
    00.91       Total operating expenses....      20,938      22,508      24,430
            Capital investment:
              Provision of veterans health
                  care:
    01.01       Acute hospital care.........         269         222         196
    01.02       Rehabilitative care.........          20          20          20
    01.03       Psychiatric care............          55          55          55
    01.04       Nursing home care...........          59          59          59
    01.05       Subacute care...............          16          16          16
    01.06       Residential care............          19          19          19
    01.07       Outpatient care.............         481         481         481
    01.08       Miscellaneous benefits and
                  services..................          33          33          33
    01.09     CHAMPVA (GPRA)................           3           3           3
                                               ---------   ---------  ----------
    01.91       Total capital investment....         955         908         882
                                               ---------   ---------  ----------

    [[Page 850]]

    01.92     Total direct program..........      21,893      23,416      25,312
    09.01 Reimbursable program..............         128         156         181
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,021      23,572      25,493
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,324       1,083         771
    22.00 New budget authority (gross)......      21,783      23,257      25,167
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                       3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,107      24,343      25,941
    23.95 Total new obligations.............     -22,021     -23,572     -25,493
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance carried
            forward, end of year............       1,083         771         448
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      20,986      22,071      23,537
    40.20   Appropriation (special fund)....         768         805       1,084
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............         -46
    41.00   Transferred to other accounts...         -53          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      21,655      22,875      24,621
          Mandatory:

    60.20   Appropriation (special fund)....                     226         365
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         117         156         181
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          11
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         128         156         181
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      21,783      23,257      25,167
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,448       2,647       3,008
    73.10 Total new obligations.............      22,021      23,572      25,493
    73.20 Total outlays (gross).............     -21,760     -23,208     -25,080
    73.40 Adjustments in expired accounts
            (net)...........................         -64
    73.45 Recoveries of prior year
            obligations.....................                      -3          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -11
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          13
    74.40 Obligated balance, end of year....       2,647       3,008       3,418
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      18,550      19,763      21,400
    86.93 Outlays from discretionary
            balances........................       3,209       3,242       3,329
    86.97 Outlays from new mandatory
            authority.......................                     203         329
    86.98 Outlays from mandatory balances...                                  23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      21,760      23,208      25,080
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -50         -62         -72
    88.40     Non-Federal sources...........         -79         -94        -109
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -129        -156        -181
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -11
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,655      23,101      24,986
    90.00 Outlays...........................      21,631      23,052      24,899
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      20,951      22,361      24,193
    90.00 Outlays...........................      20,927      22,312      24,106
    ---------------------------------------------------------------------------

        For 2003, the budget process provides total resources for the VA
    Medical Care program of $25.0 billion, an increase of $1.9 billion ($1.5
    billion in medical care and $0.4 billion in collections) over the 2002
    level. This includes $23.5 billion in appropriated budget authority,
    $1.1 billion to be collected in the Medical Care Collections Fund, $365
    million in anticipated collections from the Health Services Improvement
    Fund, and other available resources.

        The budget request also includes a proposal to establish a $1,500
    annual deductible for priority level 7 veterans (non-disabled, higher-
    income). This proposal is in response to the significant growth in
    enrollment and usage by priority level 7 veterans over the last 3 years,
    as well as anticipated future growth. The objective is to have these
    veterans pay a larger portion of the cost of their health care. Coupled
    with the recent increase in pharmacy co-payments and decrease in
    outpatient care co-payments, this proposal makes certain that VA's
    health care system is able to continue providing high-quality health
    care to VHA's core population--disabled and low-income veterans.

        Veterans will be assessed the deductible for their inpatient and
    outpatient care at a rate of 45 percent of the reasonable charges, which
    equals VA's cost to provide this care, up to a $1,500 annual ceiling.
    This legislative proposal is included in the general provisions of the
    appropriation request. Obligation estimates in this section include the
    net cost and revenue associated with this copayment.

                                    WORKLOAD

        Provision of Veterans Health Care--
            Acute hospital care.--Costs for 2003 are estimated to increase
        by $166 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:

                                         2001 actual  2002 est.   2003 est.
      Patients treated..................     438,735     441,450     443,028
      Average daily census..............       8,066       8,046       8,035
      Average employment................      49,586      48,307      47,303

            Rehabilitative care.--An increase of $18 million in 2003 is
        estimated for the provision of rehabilitative care, including spinal
        cord injury care.
            Estimated operating levels are:

                                         2001 actual  2002 est.   2003 est.
      Patients treated..................      14,705      14,705      14,852
      Average daily census..............       1,173       1,170       1,168
      Average employment................       4,782       4,878       4,976

            Psychiatric care.--A decrease of $28 million is estimated in
        2003 for the inpatient care of veterans with problems related to
        mental illness, including alcohol and drug problems.
            Estimated operating levels are:

                                         2001 actual  2002 est.   2003 est.
      Patients treated..................     101,831     101,338     100,852
      Average daily census..............       4,214       4,029       3,843
      Average employment................      14,177      13,524      12,931

            Nursing home care.--In 2003, an increase of $120 million is
        estimated for the care of residents in VA nursing homes, contract
        nursing homes and State nursing homes.
            Estimated operating levels are:

                                         2001 actual  2002 est.   2003 est.
      Patients treated..................      87,232      90,351      97,492
      Average daily census..............      31,941      31,963      33,168
      Average employment................      20,766      21,684      22,529

    [[Page 851]]

            Noninstitutional extended care.--Included in outpatient
        estimates in 2003 is an increase of $103 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:
                                         2001 actual  2002 est.   2003 est.
    Average daily census................      24,734      30,633      35,907

            Subacute care.--A decrease of $18 million is estimated in 2003
        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:

                                         2001 actual  2002 est.   2003 est.
    Patients treated....................      41,451      39,946      39,147
    Average daily census................       1,701       1,543       1,435
    Average employment..................       4,651       4,206       3,916

            Residential care.--A decrease of $1 million is estimated in 2003
        for the care of veterans in locations other than their own homes,
        such as residential rehabilitation and domiciliary care programs.
            Estimated operating levels are:

                                         2001 actual  2002 est.   2003 est.
    Patients treated....................      45,495      44,676      44,367
    Average daily census................      10,697      10,771      10,712
    Average employment..................       4,752       4,682       4,565

            Outpatient care.--An increase of $1,426 million is estimated in
        2003 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

                                         2001 actual  2002 est.   2003 est.
      Medical visits (in thousands):
      Staff visits......................      40,506      43,246      45,003
      Fee visits........................       2,395       2,814       3,309
      Readjustment counseling...........         907         910         910
                                        ------------------------------------
            Total.......................      43,808      46,970      49,222
                                        ====================================
      Dental:
        Staff:
          Examinations..................     402,966     403,000     403,000
          Treatments....................     134,628     140,000     140,000
                                        ------------------------------------
            Total.......................     537,594     543,000     543,000
                                        ====================================
        Fee: Cases completed............      11,875      12,000      12,000
                                        ====================================
      Average employment................      76,386      75,971      79,802
                                        ====================================

            Miscellaneous benefits and services.--An increase of $80 million
        is estimated in 2003 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.

                                         2001 actual  2002 est.   2003 est.
      Average employment................       7,660       7,967       8,286

            Civilian health and medical program of the Department of
        Veterans Affairs (CHAMPVA).--An increase of $158 million is
        estimated in 2003 for private hospital and outpatient care for
        dependents and survivors of certain veterans.
            Estimated operating levels are:

                                         2001 actual  2002 est.   2003 est.
      Average daily hospital census.....         155         156         157
      Outpatient (in thousands).........       1,320       2,647       3,530
      Average employment................         186         281         313

                              PERFORMANCE MEASURES

            Chronic Disease Care Index II and Prevention Index II.--
        Investment in effective chronic disease management results in
        improved health of veterans and reduced use of services. The
        prevention index spotlights and summarizes a variety of evidenced
        based measures for high quality preventive health care.

                                         2001 actual  2002 est.   2003 est.
      Chronic Disease Care Index II.....         77%         78%         79%
      Prevention Index II...............         80%         80%         80%

            Waiting Time for Scheduled Appointments.--VA's strategy is to
        improve access and timeliness of service by reducing waiting times
        in specific clinics as well as primary care clinics in medical
        centers nationwide.

                                         2001 actual  2002 est.   2003 est.
      Precent of patients seen within 20
        minutes of a scheduled
        appointment.....................         63%         70%         72%
      Percent of primary care
        appointments scheduled within 30
        days of desired date............         87%         88%       88.5%
      Percent of specialist appointments
        scheduled within 30 days of
        desired date....................         84%         85%       86.5%

            Hepatitis C.--VA's stragety is to improve the screening,
        testing, and treatment of hepatitis C in the veteran population. As
        a result, VA has developed three performance measures to track the
        hepatitis C program.

                                             2001
                                            actual     2002 est.   2003 est.

    Percent of patients screened and/or          51%         56%         61%
     tested for the risk factors for
     hepatitis C........................
    Percent of patients tested for               48%         61%         65%
     hepatitis C subsequent to a
     positive hepatitis C risk factor
     screening..........................
    Percent of patients with hepatitis C
     who have annual assessments of
     liver function.....................  Baseline to be established in 2002

            CARES.--VA is seeking to right-size its infrastructure through
        the CARES process. Its goal is to eliminate excess space (as defined
        by the CARES study) in a VISN four years after a Secretarial
        decision is made.

                                         2001 actual  2002 est.   2003 est.
      Percent cumulative reduction in
        excess space as a result of
        CARES...........................         N/A         10%         30%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       7,357       7,466       7,909
    11.3      Other than full-time permanent         979         994       1,053
    11.5      Other personnel compensation..         941         955       1,012
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       9,277       9,415       9,974
    12.1    Civilian personnel benefits.....       3,023       3,365       3,516
    13.0    Benefits for former personnel...          32          35          40
            Travel and transportation of
                persons:
    21.0      Employee travel...............          50          56          60
    21.0      Beneficiary travel............         127         129         132
    21.0      Interagency motor pool
                payments....................          18          19          21
    21.0      All other.....................          42          43          46
    22.0    Transportation of things........          23          25          26
    23.1    Rental payments to GSA..........          10          10          11
    23.2    Rental payments to others.......          49          52          55
    23.3    Communications, utilities, and
              miscellaneous charges.........         647         764         852
    24.0    Printing and reproduction.......          11          13          14
    25.2    Other contractual services......       2,041       2,274       2,550
            Medical care:
    25.6      Outpatient dental fees........          13          14          14
    25.6      Medical and nursing fees......         428         489         533
    25.6      Community nursing homes.......         231         179         217
    25.6      Contract hospitalization......         327         339         352
    25.6      Civilian Health and Medical
                Program of the Department of
                Veterans Affairs............         145         215         375
            Supplies and materials:
    26.0      Supplies and materials........       4,022       4,610       5,139
    26.0      Provisions....................          75          75          76
    31.0    Equipment.......................         653         606         610
    32.0    Land and structures.............         302         302         272

    [[Page 852]]

            Grants, subsidies, and
                contributions:
    41.0      Grants, subsidies, and
                contributions...............         328         367         406
    41.0      Grants to private
                organizations...............          18          18          19
    43.0    Interest and dividends..........           1           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............      21,893      23,416      25,312
    99.0  Reimbursable obligations..........         128         156         181
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,021      23,572      25,493
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......     181,854     180,230     180,500
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       1,092       1,270       1,323
    ---------------------------------------------------------------------------

                         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, [2003, $371,000,000], 2004,
    $409,075,000, plus reimbursements. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
    00.01     Medical research..............         224         249         250
    00.02     Rehabilitation research.......          32          36          37
    00.03     Health services research......          45          48          48
    00.04     Cooperative studies research..          31          51          50
                                               ---------   ---------  ----------
    00.91       Total operating expenses....         332         384         385
            Capital investment:
    01.01     Medical research..............          11          16          14
    01.02     Rehabilitation research.......           3           5           4
    01.03     Health services research......           2           4           4
    01.04     Cooperative studies research..           2           2           2
                                               ---------   ---------  ----------
    01.91       Total capital investment....          18          27          24
                                               ---------   ---------  ----------
    01.92     Total direct program..........         350         411         409
    09.01 Reimbursable program..............          27          33          33
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         377         444         442
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23          36           9
    22.00 New budget authority (gross)......         390         417         442
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         413         453         451
    23.95 Total new obligations.............        -377        -444        -442
    24.40 Unobligated balance carried
            forward, end of year............          36           9           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         364         384         409
    40.35   Appropriation rescinded.........          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         363         384         409
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          27          33          33
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         390         417         442
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         102          97         130
    73.10 Total new obligations.............         377         444         442
    73.20 Total outlays (gross).............        -378        -411        -436
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Obligated balance, end of year....          97         130         136
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         284         310         329
    86.93 Outlays from discretionary
            balances........................          95         101         107
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         378         411         436
    ----------------------------------------------------------------------------

        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..................         363         384         409
    90.00 Outlays...........................         352         378         403
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         350         371         394
    90.00 Outlays...........................         339         365         388
    ---------------------------------------------------------------------------

        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 popu

    [[Page 853]]

    lation 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]

                                         2001 actual  2002 est.   2003 est.
    Medical and prosthetic research
    appropriation.......................         363         384         409
    Medical care appropriation..........         355         377         400
    Federal grants (NIH)................         417         438         460
    Other grants (voluntary agencies,
    private proprietary)................         178         186         196
                                        ------------------------------------
          Total budgetary resources.....       1,313       1,385       1,465
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          46          52          54
    11.3      Other than full-time permanent          76          86          89
    11.5      Other personnel compensation..          22          24          25
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         144         162         168
    12.1    Civilian personnel benefits.....          50          54          57
    21.0    Employee travel.................           3           4           5
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           2           1
    24.0    Printing and reproduction.......           1           1           1
    25.5    Research and development
              contracts.....................         101         120         119
    26.0    Supplies and materials..........          32          41          37
    31.0    Equipment.......................          18          27          21
                                               ---------   ---------  ----------
    99.0      Direct obligations............         350         411         409
    99.0  Reimbursable obligations..........          27          33          33
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         377         444         442
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,796       2,723       2,907
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         223         260         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, [$66,731,000] $77,214,000, of which
    $3,861,000 should be available until September 30, 2004, 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, [2002] 2003.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses: Integrated
            health care system
            administration..................          68          73          76
    00.02 Capital investment................           1           1           1
                                               ---------   ---------  ----------
    01.00   Total direct program............          69          74          77
    09.01 Reimbursable program..............           7           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          76          81          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          76          81          84
    23.95 Total new obligations.............         -76         -81         -84
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          69          74          77
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7           7           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          76          81          84
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          14          10          10
    73.10 Total new obligations.............          76          81          84
    73.20 Total outlays (gross).............         -79         -81         -84
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          10          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          69          73          76
    86.93 Outlays from discretionary
            balances........................          10           9           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          79          81          84
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          69          74          77
    90.00 Outlays...........................          71          74          77
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          62          67          70
    90.00 Outlays...........................          64          67          70
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          35          37          38
    11.3      Other than full-time permanent           2           3           3
    11.5      Other personnel compensation..           6           7           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          43          47          48
    12.1    Civilian personnel benefits.....          15          15          16
    21.0    Travel and transportation of
              persons: employee travel......           1           2           2
    23.1    Rental payments to GSA..........           5           5           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           3           3           3
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          69          74          77

    [[Page 854]]

    99.0  Reimbursable obligations..........           7           7           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          76          81          84
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         477         494         494
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          51          51          51
    ---------------------------------------------------------------------------

    Public enterprise funds:

                      Veterans Extended Care Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4032-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............                      20          40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................                      20          40
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      20          40
    23.95 Total new obligations.............                     -20         -40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                      20          40
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      20          40
    73.20 Total outlays (gross).............                     -20         -40
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      20          40
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                     -20         -40
    ----------------------------------------------------------------------------

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

        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 $40
    million from this effort in 2003.

                        Medical Facilities Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4138-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.02 Reimbursable capital expenses.....           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 31.0)...................           2           2           2
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

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

        Change in obligated balances:
    73.10 Total new obligations.............           2           2           2
    73.20 Total outlays (gross).............          -2          -2          -2
    ----------------------------------------------------------------------------

        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)...........           2           2           2
    ----------------------------------------------------------------------------

        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           1           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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable operating expenses...         135         144         140
    09.02 Reimbursable direct operations....          86          87          87
    09.10 Reimbursable capital investment:
            Sales program: Purchase of
            equipment and leasehold.........           5           5           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         226         236         231
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          16          18
    22.00 New budget authority (gross)......         227         238         234
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         241         254         252
    23.95 Total new obligations.............        -226        -236        -231
    24.40 Unobligated balance carried
            forward, end of year............          16          18          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         227         238         234
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          26          19          15
    73.10 Total new obligations.............         226         236         231
    73.20 Total outlays (gross).............        -233        -240        -234
    74.40 Obligated balance, end of year....          19          15          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         231         237         233
    86.98 Outlays from mandatory balances...           2           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         233         240         234
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities                      -2          -2

    [[Page 855]]

    88.40     Non-Federal sources...........        -227        -236        -232
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -227        -238        -234
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          39          32          34
    92.02 Total investments, end of year:
            Federal securities: Par value...          32          34          35
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          36          41          41
    11.3    Other than full-time permanent..          29          28          28
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          65          69          69
    12.1  Civilian personnel benefits.......          22          24          25
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           4           5           3
    26.0  Supplies and materials............         128         131         128
    31.0  Equipment.........................           5           5           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         226         236         231
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......       2,933       3,025       3,000
    ---------------------------------------------------------------------------

             Special Therapeutic and Rehabilitation Activities Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4048-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Contracts.........................          22          23          24
    09.02 Education and training............           1           1           1
    09.03 Operating expenses................          12          12          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          35          36          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          16          17
    22.00 New budget authority (gross)......          36          37          38
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          53          55
    23.95 Total new obligations.............         -35         -36         -37
    24.40 Unobligated balance carried
            forward, end of year............          16          17          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          36          37          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           3           3
    73.10 Total new obligations.............          35          36          37
    73.20 Total outlays (gross).............         -34         -35         -36
    74.40 Obligated balance, end of year....           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          34          35          36
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -36         -37         -38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -1          -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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          39             37            37             38
    0102  Expense...........................         -38            -35           -36            -37
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           1              2             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4048-0-3-703    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          17             18            20             21
            Investments in US securities:
    1106      Receivables, net..............           1              1             1              1
    1206  Non-Federal assets: Receivables,
            net.............................           2              3             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          20             22            24             25
        LIABILITIES:
    2105  Federal liabilities: Other........           3              3             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              3             3              3
        NET POSITION:
    3300  Cumulative results of operations..          17             19            21             22
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          17             19            21             22
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          20             22            24             25
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4048-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................          33          33          34
    26.0  Supplies and materials............           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          35          36          37
    ---------------------------------------------------------------------------

                      Medical Center Research Organizations

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operating expenses................         141         144         148
    09.02 Capital investments...............          16          17          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         157         161         166
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          16          17

    [[Page 856]]

    22.00 New budget authority (gross)......         157         161         166
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         173         177         183
    23.95 Total new obligations.............        -157        -161        -166
    24.40 Unobligated balance carried
            forward, end of year............          16          17          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         157         161         166
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         157         161         166
    73.20 Total outlays (gross).............        -157        -161        -166
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         157         161         166
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -157        -161        -166
    ----------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................          97         100         103
    26.0  Supplies and materials............          41          42          43
    31.0  Equipment.........................          17          17          18
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         157         161         166
    ---------------------------------------------------------------------------

                                   Trust Funds

                        General Post Fund, National Homes

                          (including transfer of funds)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 General post fund, national homes,
            deposits........................          32          33          34
    02.40 General post fund, national homes,
            interest on investments.........           3           3           3
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          35          36          37
        Appropriations:
    05.00 General post fund, national homes.         -35         -36         -37
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Religious, recreational, and
            entertainment activities........          28          29          29
    00.02 Research activities...............           2           2           2
    00.03 Therapeutic residence maintenance.           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          31          32          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          50          54          59
    22.00 New budget authority (gross)......          35          36          37
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          85          90          96
    23.95 Total new obligations.............         -31         -32         -32
    24.40 Unobligated balance carried
            forward, end of year............          54          59          63
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          35          36          37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           5           4
    73.10 Total new obligations.............          31          32          32
    73.20 Total outlays (gross).............         -32         -33         -33
    74.40 Obligated balance, end of year....           5           4           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          30          30          30
    86.98 Outlays from mandatory balances...           2           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          32          33          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          35          36          37
    90.00 Outlays...........................          32          33          33
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          57          57          55
    92.02 Total investments, end of year:
            Federal securities: Par value...          57          55          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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................          14          14          14
    26.0  Supplies and materials............          11          12          12
    31.0  Equipment.........................           3           3           3
    32.0  Land and structures...............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          31          32          32
    ---------------------------------------------------------------------------

                        VETERANS BENEFITS ADMINISTRATION

                                  Federal Funds

    General and special funds:

                            Compensation and Pensions

                          (including transfer of funds)

        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

    [[Page 857]]

    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 (50 U.S.C. App. 540 et
    seq.) 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), [$24,944,288,000, to
    remain available until expended] such sums as may be necessary:
    Provided, That not to exceed [$17,940,000] $17,138,000 of the amount
    appropriated under this heading 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, 2002.)

               Summary of Budget Authority and Outlays by Program

                            [In thousands of dollars]

                                         2001 actual  2002 est.   2003 est.
    Distribution of budget authority by
        program:
      Compensation......................  20,223,100  21,741,188  23,287,680
      Pensions..........................   3,018,066   3,059,357   3,081,708
      Burial benefits...................     114,523     143,743     154,912
    Distribution of outlays by program:
      Compensation......................  18,545,183  21,721,487  23,200,679
      Pensions..........................   2,760,014   3,040,413   3,065,197
      Burial benefits...................     114,523     143,743     154,912

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Compensation:

            Veterans:
    00.01     World War II..................       3,174       3,096       2,994
    00.02     Korean conflict...............       1,293       1,337       1,347
    00.03     Vietnam era...................       6,946       7,824       8,756
    00.04     Peacetime service.............       3,454       3,708       3,883
    00.05     Persian Gulf conflict.........       1,662       1,992       2,323
                                               ---------   ---------  ----------
    00.91       Total veterans..............      16,529      17,957      19,303
            Survivors:
    01.01     World War I...................          28          23          17
    01.02     World War II..................       1,387       1,409       1,429
    01.03     Korean conflict...............         442         457         466
    01.04     Vietnam era...................       1,244       1,345       1,434
    01.05     Peacetime service.............         452         453         448
    01.06     Persian Gulf conflict.........          98         113         127
                                               ---------   ---------  ----------
    01.91       Total survivors.............       3,651       3,800       3,921
                                               ---------   ---------  ----------
    02.93     Total compensation............      20,180      21,757      23,224
            Other compensation expenses:
    03.01     Payment to general operating
                expense.....................           1           1           1
    03.02     Medical exam pilot program....          27          29          29
    03.03     Clothing allowance............          43          43          44
    03.04     Children of Vietnam Era.......          13          14          15
                                               ---------   ---------  ----------
    03.91       Total other compensation
                  expenses..................          84          87          89
          Pensions:

            Veterans:
    04.03     Improved Law..................       2,281       2,327       2,362
    04.04     Prior Law.....................          36          31          27
                                               ---------   ---------  ----------
    04.91       Total veterans..............       2,317       2,358       2,389
            Survivors:
    05.01     Improved Law..................         609         618         618
    05.02     Prior Law.....................          74          65          57
    05.03     Old Law.......................           1           1
                                               ---------   ---------  ----------
    05.91     Total survivors...............         684         684         675
                                               ---------   ---------  ----------
    05.92     Total pensions................       3,001       3,042       3,064
            Other pension expenses:
    06.02     Reimbursement to GOE and VHA..          16          18          18
          Burial benefits:

    07.01   Burial allowance................          33          34          36
    07.02   Burial plots....................          10          18          21
    07.03   Service-connected deaths........          11          18          18
    07.04   Burial flags....................          17          18          19
    07.05   Headstones and markers..........          27          35          36
    07.06   Graveliners.....................           9           9           8
    07.07   Pre-placed crypts...............           4           8          13
                                               ---------   ---------  ----------
    07.91     Total burial benefits.........         111         140         151
    08.01   Equal access to justice.........           3           3           3
          Reimbursable pension program:

    09.01   Minimum income for widows
              program.......................                       3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      23,396      25,050      26,552
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         171         130          26
    22.00 New budget authority (gross)......      23,356      24,948      26,527
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,527      25,078      26,553
    23.95 Total new obligations.............     -23,396     -25,050     -26,552
    24.40 Unobligated balance carried
            forward, end of year............         130          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Appropriation:
    60.00     Appropriation.................      23,356      24,945      26,246
    60.00     Appropriation.................                                 279
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      23,356      24,945      26,525
    69.00 Offsetting collections (cash).....                       3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      23,356      24,948      26,528
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          43       2,020       2,162
    73.10 Total new obligations.............      23,396      25,050      26,552
    73.20 Total outlays (gross).............     -21,420     -24,908     -26,424
    74.40 Obligated balance, end of year....       2,020       2,162       2,292
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      21,420      24,908      26,424
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................      23,356      24,945      26,525
    90.00 Outlays...........................      21,420      24,906      26,421
    ---------------------------------------------------------------------------

        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

                                         2001 actual  2002 est.   2003 est.
    Veterans:
      Mexican border period.............           7           5           4
      World War I.......................          31          17           8
      World War II......................     485,635     449,120     416,655
      Korean conflict...................     168,212     164,060     159,789
      Vietnam era.......................     743,555     784,899     837,818
      Peacetime service.................     567,870     577,593     585,277
      Persian Gulf conflict.............     345,570     388,543     431,772
                                        ------------------------------------
          Total.........................   2,310,880   2,364,237   2,431,323
      Average payment per case, per year      $7,153      $7,596      $7,940
          Total obligations (in
            millions)...................     $16,529     $17,958     $19,304
                                        ====================================
    Children of Vietnam era veterans:
      Children..........................         929         949         959

    [[Page 858]]

      Average payment per case, per year     $14,451     $14,851     $15,220
          Total obligations (in
            millions)...................         $13         $14         $15
    Chapter 18 Vocational
        rehabilitations:
      Rehabilitations...................          15          19          19
      Average payment per case, per year      $9,933     $10,158     $10,421
          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..............          12          11          10
      Mexican border period.............           3           3           3
      World War I.......................       2,545       1,955       1,406
      World War II......................     114,883     113,702     112,875
      Korean conflict...................      36,775      36,866      36,947
      Vietnam era.......................     105,464     110,715     116,384
      Peacetime service.................      39,470      38,437      37,366
      Persian Gulf conflict.............       7,685       8,538       9,392
                                        ------------------------------------
          Total.........................     306,838     310,228     314,384
      Average payment per case, per year     $11,899     $12,249     $12,473
          Total obligations (in
            millions)...................      $3,651      $3,800      $3,921
                                        ====================================
    Clothing allowance:
      Number of veterans................      78,073      79,144      80,650
      Average payment per case, per year        $546        $548        $542
          Total obligations (in
            millions)...................         $43         $43         $44
                                        ====================================

        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 or veterans age 65 or older. Income support is provided at
    established benefit levels.

        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,
    2003, is expected to be 1.8 percent.

                  AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                         2001 actual  2002 est.   2003 est.
    Veterans:
      Improved law......................     332,027     326,382     322,076
      Prior law.........................      21,547      18,985      16,306
      Old law and service...............         282         247         217
                                        ------------------------------------
          Total.........................     353,856     345,614     338,599
      Average payment per case, per year
        (in dollars)....................      $6,548      $6,822      $7,056
                                        ------------------------------------
          Total obligations (in
            millions)...................      $2,317      $2,358      $2,389
                                        ====================================
    Survivors:
      Improved law......................     175,122     168,633     162,775
      Prior law.........................      71,454      63,257      56,029
      Old law and service...............       1,208         875         652
                                        ------------------------------------
          Total.........................     247,784     232,765     219,456
      Average payment per case, per year      $2,765      $2,939      $3,080
                                        ------------------------------------
          Total obligations (in
            millions)...................        $685        $684        $676
                                        ====================================
    Minimum Income for Widows Program:
      Widows............................                     523         488
    Average benefit per case, per year..                  $6,585      $6,746
                                        ------------------------------------
          Total obligations (in
            millions)...................                      $3          $3
                                        ====================================
        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 $300 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 $2,000 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

                                         2001 actual  2002 est.   2003 est.
    Burial allowance....................      79,989      81,989      84,039
    Burial plot.........................      65,777      67,421      69,107
    Service-connected death.............       8,740       8,959       9,183
    Burial flags........................     502,883     515,455     528,341
    Headstone markers...................     304,296     351,046     354,150
    Headstone allowance.................
    Graveliners.........................      51,877      48,306      45,187
    Preplaced crypts....................      11,056      26,800      41,000

        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

                                         2001 actual  2002 est.   2003 est.
    Retired Officers....................           1           1           1
    Special allowance dependents........         110         100          90
    Equal Access to Justice payments....       1,125       1,100       1,100

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........      23,396      25,047      26,549
    99.0  Reimbursable obligations:
            Reimbursable obligations........                       3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      23,396      25,050      26,552
    ---------------------------------------------------------------------------

                            Compensation and Pensions

                    (Legislative proposal, subject to PAYGO)

        The Administration will transmit legislation that would permanently
    extend the Internal Revenue Service's authority to provide VA with
    access to data for determining eligibility for means-tested programs.

                         Grants for Veterans Employment

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0136-2-1-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to States for veterans
            employment......................                                 177
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 177
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 177
    23.95 Total new obligations.............                                -177
    ----------------------------------------------------------------------------

    [[Page 859]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 177
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 177
    73.20 Total outlays (gross).............                                -159
    74.40 Obligated balance, end of year....                                  18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 159
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 177
    90.00 Outlays...........................                                 159
    ---------------------------------------------------------------------------
                                                 -------

        The Administration will transmit legislation that will establish a
    new competitive grant program in the Department of Veterans Affairs,
    subject to Congressional authorization, which will enable the Department
    to assist States in establishing, expanding, or improving employment and
    training services for veterans. The Department will set clear
    employment-based outcome measures for these grants and judge grantee
    performance on this basis. The emphasis will be on serving those
    veterans who most need employment assistance, including disabled or
    homeless veterans.

        This new competitive grant program will replace a similar set of
    programs now in the Department of Labor's Veterans Employment and
    Training Service.

                              Readjustment Benefits

        For the payment of readjustment and rehabilitation benefits to or on
    behalf of veterans as authorized by law (38 U.S.C. chapters 21, 30, 31,
    34, 35, 36, 39, 51, 53, 55, and 61), [$2,135,000,000, 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 this account. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Education and training:
    00.01     Sons and daughters............         157         182         192
    00.02     Spouses.......................          19          24          25
                                               ---------   ---------  ----------
    00.91       Total education and training         176         206         217
            Special assistance to disabled
                veterans:
    01.01     Vocational rehabilitation.....         426         441         452
    01.02     Housing grants................          20          25          25
    01.03     Automobiles, adaptive
                equipment, maintenance and
                repair......................          34          36          36
                                               ---------   ---------  ----------
    01.91       Total special assistance to
                  disabled veterans.........         480         502         513
    02.01   Work study......................          32          46          51
    02.02   Payments to states..............          14          14          13
    02.03   All-volunteer assistance: Basic
              benefits and all other........         914       1,367       1,662
    02.04   Reporting fees..................           3           4           4
    02.05   Tuition Assistance..............           6          79          79
    02.06   Licensing and Certification.....                       6          19
                                               ---------   ---------  ----------
    02.91     All-volunteer assistance and
                other.......................         969       1,516       1,828
                                               ---------   ---------  ----------
    02.93     Total direct program..........       1,625       2,224       2,558
    09.01 Veterans' basic benefits..........           8          10          11
    09.02 Veterans' supplementary benefits..          70          81          86
    09.03 Reservists benefits...............         116         115         110
    09.04 Reservists supplementary benefits.          20          21          33
    09.05 Reimbursement to GOE..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,839       2,452       2,799
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26         383         293
    22.00 New budget authority (gross)......       2,197       2,363       2,506
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,223       2,746       2,799
    23.95 Total new obligations.............      -1,839      -2,452      -2,799
    24.40 Unobligated balance carried
            forward, end of year............         383         293
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,981       2,135       2,265
    69.00 Offsetting collections (cash).....         216         228         241
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,197       2,363       2,506
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          37          52          54
    73.10 Total new obligations.............       1,839       2,452       2,799
    73.20 Total outlays (gross).............      -1,824      -2,450      -2,798
    74.40 Obligated balance, end of year....          52          54          55
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,772       2,015       2,450
    86.98 Outlays from mandatory balances...          52         436         348
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,824       2,450       2,798
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -216        -228        -241
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,981       2,135       2,265
    90.00 Outlays...........................       1,608       2,222       2,557
    ---------------------------------------------------------------------------

        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 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 2003 to meet program obligations which are
    currently estimated to be $2,265 million.

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

                           NUMBER OF TRAINEES AND COST

                                         2001 actual  2002 est.   2003 est.
    Sons and daughters:
      Number of trainees................      40,742      42,916      44,455
      Average cost per trainee (in
        dollars)........................      $3,842      $4,247      $4,324
                                        ------------------------------------
          Total cost (in millions)......        $157        $182        $192
                                        ====================================
    Spouses and widow(ers):
      Number of trainees................       6,175       7,033       7,291
      Average cost per trainee (in
        dollars)........................      $3,077      $3,395      $3,455
                                        ------------------------------------
          Total cost (in millions)......         $19         $24         $25
                                        ====================================

        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 $48,000, 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 $9,000, 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.

    [[Page 860]]

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

                         CASELOAD AND AVERAGE COST DATA

                                         2001 actual  2002 est.   2003 est.
          Total number of trainees......      64,235      64,556      64,879
      Average cost per trainee..........      $6,639      $6,830      $6,967
                                        ------------------------------------
          Total cost (in millions)......        $426        $441        $452
                                        ====================================
    Housing grants:
      Number of housing grants..........         548         600         600
      Average cost per grant............     $35,978     $41,600     $41,600
                                        ------------------------------------
          Total cost (in millions)......         $20         $25         $25
                                        ====================================
    Automobiles or other conveyances:
      Number of conveyances.............         875       1,000       1,000
      Average cost per conveyance.......      $7,994      $8,750      $8,995
                                        ------------------------------------
          Total cost (in millions)......          $7          $9          $9
                                        ====================================
    Adaptive equipment (including
        maintenance, repair and
        installation for automobiles):
      Number of items...................       8,036       8,000       7,800
      Average cost......................      $3,314      $3,394      $3,469
                                        ------------------------------------
          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

                                         2001 actual  2002 est.   2003 est.

    Tuition Assistance:
      Number of trainees................      12,006     160,000     160,000
      Average cost per trainee..........        $494        $494        $494
                                        ------------------------------------
          Total cost (in millions)......      $5,926         $79         $79
                                        ====================================
    Licensing and Certification:
      Number of individuals.............         141      25,000      80,000
      Average cost per trainee..........        $234        $235        $235
                                        ------------------------------------
          Total cost (in millions)......         N/A          $6         $19
                                        ====================================

        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.

                                         2001 actual  2002 est.   2003 est.
      Number of contracts...............      27,690      25,500      28,560
                                        ------------------------------------
          Total cost (in millions)......         $32         $46         $51
                                        ====================================

        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

                                         2001 actual  2002 est.   2003 est.
    Veterans:
      Number of trainees................     263,490     311,309     310,269
      Average cost per trainee..........      $3,642      $4,557      $5,458
                                        ------------------------------------
          Total cost (in millions)......        $960      $1,419      $1,694
                                        ====================================
    Reservists:
      Number of trainees................      82,283      79,000      81,721
      Average cost per trainee..........      $1,653      $1,718      $1,748
                                        ------------------------------------
          Total cost (in millions)......        $136        $136        $143
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       1,623       2,224       2,558
    99.0  Reimbursable obligations:
            Reimbursable obligations........         216         228         241
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,839       2,452       2,799
    ---------------------------------------------------------------------------

      Reinstated Entitlement Program for Survivors Under Public Law 97-377

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0200-0-1-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Return of overpayment.............           3
                                               ---------   ---------  ----------
    01.00   Total Direct Program............           3
    09.01 Reimbursables.....................          13          15          12
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......          13          15          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16          15          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          16          15          12
    23.95 Total new obligations.............         -16         -15         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          16          15          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          16          15          12
    73.20 Total outlays (gross).............         -16         -15         -12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          16          15          12
    ----------------------------------------------------------------------------

    [[Page 861]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -15         -12
    ----------------------------------------------------------------------------

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

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

                         CASELOAD AND AVERAGE COST DATA

                                         2001 actual  2002 est.   2003 est.
    Spouses.............................         187         176         145
    Average benefit.....................     $12,362     $15,858     $13,020
    Obligations (in millions)...........          $2          $3          $2
    Children............................         696         777         686
    Average benefit.....................     $14,056     $15,151     $14,781
    Obligations (in millions)...........         $10         $12         $10

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0200-0-1-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    99.0  Reimbursable obligations:
            Reimbursable obligations........          13          15          12
    44.0  Allocation Account: Refunds.......           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          16          15          12
    ---------------------------------------------------------------------------

                       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, [$26,200,000, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2001 actual   2002 est.   2003 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.......          16          19          19
    00.06   Total operating expenses........           9           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          26          28          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           1           1
    22.00 New budget authority (gross)......          22          28          30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          27          29          31
    23.95 Total new obligations.............         -26         -28         -28
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          20          26          28
    69.00 Offsetting collections (cash).....           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          22          28          30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          26          28          28
    73.20 Total outlays (gross).............         -26         -28         -28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          22          28          28
    86.98 Outlays from mandatory balances...           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          26          28          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..................          20          26          28
    90.00 Outlays...........................          24          26          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 2003 as indicated in the
    following table.

                         POLICIES AND INSURANCE IN FORCE

                                         2001 actual  2002 est.   2003 est.

    VMLI policies:
      Number of policies................       3,300       3,120       2,970
      Amount of insurance (dollars in
        millions).......................        $193        $187        $183

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................          17          20          20
    42.0  Insurance claims and indemnities..           9           8           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          26          28          28
    ---------------------------------------------------------------------------

    Public enterprise funds:

                    Service-Disabled Veterans Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          27          19           6
        Appropriations:
    05.00 Service-disabled veterans
            insurance fund..................          -8         -13          -6
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          19           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Capital investment................          12          12          11
    09.02 Death Claims......................          43          46          45
    09.03 All Other.........................           8          10           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          63          68          64
    ----------------------------------------------------------------------------

    [[Page 862]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          63          70          64
    23.95 Total new obligations.............         -63         -68         -64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          55          57          58
    69.26   From offsetting collections
              (unavailable balances)........           8          13           6
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          63          70          64
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8           8           6
    73.10 Total new obligations.............          63          68          64
    73.20 Total outlays (gross).............         -63         -68         -68
    74.40 Obligated balance, end of year....           8           6           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          55          62          64
    86.98 Outlays from mandatory balances...           8           6           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          63          68          68
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                VI and I....................         -16         -18         -19
              Non-Federal sources:
    88.40       Interest on loans...........          -3          -3          -3
    88.40       Insurance premiums earned...         -24         -24         -24
    88.40       Repayments of loans.........         -12         -12         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -55         -57         -58
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           8          13           7
    90.00 Outlays...........................           8          11          10
    ---------------------------------------------------------------------------

        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

                                         2001 actual  2002 est.   2003 est.
    Number of policies..................     148,674     145,324     141,730
    Insurance in force (dollars in
    millions)...........................      $1,401      $1,376      $1,348

        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 $458 million by September 30, 2003.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          12          12          11
    42.0  Insurance claims and indemnities..          51          56          53
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          63          68          64
    ---------------------------------------------------------------------------

                        Veterans Reopened Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         454         440         422
        Appropriations:
    05.00 Veterans reopened insurance fund..         -14         -18         -21
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         440         422         401
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          36          38          39
    09.02 Dividends.........................          20          20          18
    09.03 All other.........................           8           8           8
    09.04 Capital investment: policy loans..           5           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          69          70          69
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          69          70          69
    23.95 Total new obligations.............         -69         -70         -69
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          55          52          48
    69.26   From offsetting collections
              (unavailable balances)........          14          18          21
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          69          70          69
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          46          48          49
    73.10 Total new obligations.............          69          70          69
    73.20 Total outlays (gross).............         -67         -69         -68
    74.40 Obligated balance, end of year....          48          49          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          55          49          49
    86.98 Outlays from mandatory balances...          12          21          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          67          69          68
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: interest on
                U.S. securities.............         -36         -34         -32
              Non-Federal sources:
    88.40       Interest on loans...........          -1          -1          -1
    88.40       Insurance premiums earned...         -12         -11         -10
    88.40       Repayments of loans.........          -6          -6          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -55         -52         -48
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          14          18          21
    90.00 Outlays...........................          12          18          20
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         500         488         470
    92.02 Total investments, end of year:
            Federal securities: Par value...         488         470         450
    ---------------------------------------------------------------------------
        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

    [[Page 863]]

    1, 1965, through May 2, 1966, under three life insurance programs: (1)
    service-disabled standard insurance; (2) service-disabled rated
    insurance; and (3) nonservice disabled insur- ance availing disabled
    World War II and Korean conflict veterans an opportunity to acquire life
    insurance coverage who were no longer eligible for other Government
    insurance.

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

                         POLICIES AND INSURANCE IN FORCE

                                         2001 actual  2002 est.   2003 est.
      Number of policies................      72,581      67,430      62,230
      Insurance in force (dollars in
        millions).......................        $618        $584        $551

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............           5           4           4
    42.0  Insurance claims and indemnities..          40          42          43
    43.0  Interest and dividends............          24          24          22
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          69          70          69
    ---------------------------------------------------------------------------

                    Servicemembers' Group Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4009-0-3-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Premium payments..................         460         659         683
    09.02 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         461         660         684
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         461         660         684
    23.95 Total new obligations.............        -461        -660        -684
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         461         660         684
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           5
    73.10 Total new obligations.............         461         660         684
    73.20 Total outlays (gross).............        -461        -660        -684
    74.40 Obligated balance, end of year....           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         457         655         679
    86.98 Outlays from mandatory balances...           5           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         461         660         684
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Withholdings from serviceman's
              pay...........................        -461        -660        -684
    ----------------------------------------------------------------------------

        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 [2002] 2003, within the resources available, not to
    exceed $300,000 in gross obligations for direct loans are authorized for
    specially adapted housing loans.
        In addition, for administrative expenses to carry out the direct and
    guaranteed loan programs, [$164,497,000] $175,677,000, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          32          16
    00.02 Guaranteed loan subsidy...........         132         186         437
    00.05 Reestimates of direct loan subsidy          20          17
    00.06 Interest on reestimates of the
            direct loan subsidy.............           5           3
    00.07 Reestimates of guaranteed loan
            subsidy.........................         123         417
    00.08 Interest on reestimates of the
            guaranteed loan subsidy.........          24         115
    00.09 Administrative expenses...........         169         171         176
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         505         925         613
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         505         925         613
    23.95 Total new obligations.............        -505        -925        -613
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation (definite)........         169         171         176
          Mandatory:

    60.00   Appropriation...................         336         754         437
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         505         925         613
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         505         925         613
    73.20 Total outlays (gross).............        -505        -925        -613
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         169         171         176
    86.97 Outlays from new mandatory
            authority.......................         336         754         437
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         505         925         613
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         505         925         613
    90.00 Outlays...........................         505         925         613
    ---------------------------------------------------------------------------

    [[Page 864]]

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         498         918         606
    90.00 Outlays...........................         498         918         606
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Acquired and Vendee Loans.........       1,463       1,809       1,917
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,463       1,809       1,917
        Direct loan subsidy (in percent):
    132001Direct loan levels................        2.16        0.86       -5.09
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        2.16        0.86       -5.09
        Direct loan subsidy budget authority:
    133001Direct loan levels................          32          16         -98
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          32          16         -98
        Direct loan subsidy outlays:
    134001Direct loan levels................          32          16         -98
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          32          16         -98
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct loan levels................          25          20
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          25          20
        Direct loan upward reestimate subsidy outlays:
    136001Direct loan levels................          25          20
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...          25          20
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct loan levels................        -163      -1,068
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -163      -1,068
        Direct loan downward reestimate subsidy
                    outlays:
    138001Direct loan levels................        -163      -1,068
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -163      -1,068
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Veterans Housing Benefit Program..      31,138      32,067      32,665
    215002Guaranteed Loan Sale Securities...         810       1,219       1,699
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......      31,948      33,286      34,364
        Guaranteed loan subsidy (in percent):
    232001Guaranteed loan...................        0.29        0.39        1.07
    232002Guaranteed loan sales.............        5.21        5.05        5.18
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.41        0.56        1.27
        Guaranteed loan subsidy budget authority:
    233001Guaranteed loan...................          90         125         349
    233002Guaranteed Loan Sale Securities...          42          62          88
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         132         187         437
        Guaranteed loan subsidy outlays:
    234001Guaranteed loan...................          90         125         349
    234002Guaranteed Loan Sale Securities...          42          62          88
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         132         187         437
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Guaranteed loan...................         147         532
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         147         532
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Guaranteed loan...................         147         532
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................         147         532
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Guaranteed loan...................      -1,257        -727
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................      -1,257        -727
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Guaranteed loan...................      -1,257        -727
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................      -1,257        -727
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         169         171         183
    359001Outlays from new authority........         169         171         183
    ---------------------------------------------------------------------------

        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 $60,000 or 25 percent of
    the loan.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         169         171         176
    41.0  Grants, subsidies, and
            contributions...................         336         754         437
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         505         925         613
    ---------------------------------------------------------------------------

       Veterans Housing Benefit Program Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       1,463       1,809       1,917
    00.02 Interest on Treasury borrowing....         244         163         192
    00.03 Property sales expense............           3           3           3
    00.04 Property management/other expense.           7           1
    00.05 Property improvement expense......           2           1           1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,719       1,977       2,113
    08.01 Payment of negative subsidy to
            receipt account.................                                  98
    08.02 Payment of downward reestimate to
            receipt account.................         127         714
    08.04 Payment of excess interest earned
            to receipt account..............          36         354
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         163       1,068          98
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,882       3,045       2,211
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         279          45
    22.00 New financing authority (gross)...       1,647       3,001       2,211
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,926       3,046       2,211
    23.95 Total new obligations.............      -1,882      -3,045      -2,211
    24.40 Unobligated balance carried
            forward, end of year............          45
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,660       2,797       1,917
    69.00 Offsetting collections (cash).....       1,546       1,844       2,427
    69.47 Portion applied to repay debt.....      -1,559      -1,640      -2,133
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         -13         204         294
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,647       3,001       2,211
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          52          85

    [[Page 865]]

    73.10 Total new obligations.............       1,882       3,045       2,211
    73.20 Total financing disbursements
            (gross).........................      -1,839      -3,013      -2,234
    74.40 Obligated balance, end of year....          52          85          62
    87.00 Total financing disbursements
            (gross).........................       1,839       3,013       2,234
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources:Payments
                  from program account......         -57         -35
    88.00       Transfer of loan sales from
                  LSSA......................        -809      -1,154      -1,699
              Non-Federal sources:
                Non-Federal sources:

    88.40         Repayments of principal...        -406        -465        -491
    88.40         Interest received on loans         -86         -87         -86
    88.40         Fees......................         -22         -23         -35
    88.40         Downpayment on Vendee
                    loan/other..............          -3         -38         -74
    88.40         Interest income--Treasury.        -144
    88.40         Cash sale of properties...         -19         -42         -42
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,546      -1,844      -2,427
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         101       1,157        -216
    90.00 Financing disbursements...........         292       1,169        -193
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1131  Direct loan obligations exempt
            from limitation.................       1,463       1,809       1,917
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,463       1,809       1,917
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,556       1,782       1,883
    1231  Disbursements: Direct loan
            disbursements...................       1,463       1,809       1,917
          Repayments:

    1251    Repayments and prepayments......        -406        -465        -491
    1253    Proceeds from loan asset sales
              to the public with recourse...        -809      -1,154      -1,699
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................          -1         -65
    1263  Write-offs for default: Direct
            loans...........................         -21         -24         -25
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,782       1,883       1,585
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         312            133           296            293
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,556          1,782         1,883          1,585
    1402    Interest receivable.............         121
    1403    Accounts receivable from
              foreclosed property...........                          1
    1405    Other assets....................                      1,102
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,677          2,885         1,883          1,585
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,989          3,018         2,179          1,878
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................                      1,878         1,985          1,671
    2104    Resources payable to Treasury...       1,778
    2105    Other...........................                      1,140           194            207
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         211
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,989          3,018         2,179          1,878
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,989          3,018         2,179          1,878
    -----------------------------------------------------------------------------------------------

     Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Acquisition of homes..............       1,126       1,760       1,996
    00.02 Losses on defaulted loans.........         365         506         479
    00.03 Interest on Treasury borrowing....           2           2           2
    00.04 Reimburse DLFA for loan sales.....         809       1,154       1,699
    00.05 Payment to trustee reserve........          50          51          58
    00.06 Reimburse Liquidating for
            subordination certificate.......          28          36          30
    00.07 Loan Sale Closing Costs...........           2           6           8
    00.09 Property sales expense............         100         113         140
    00.10 Property management expense.......          55          50          75
    00.11 Property improvement expense......          69          53          53
    00.12 Loans acquired....................         333          94          96
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       2,939       3,825       4,636
    08.02 Payment of downward reestimate to
            receipt account.................         893         580
    08.04 Payment of excess interest to
            receipt account.................         364         147
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............       1,257         727
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,196       4,552       4,636
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       5,128       4,634       4,975
    22.00 New financing authority (gross)...       3,702       4,894       5,490
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       8,830       9,528      10,465
    23.95 Total new obligations.............      -4,196      -4,552      -4,636
    24.40 Unobligated balance carried
            forward, end of year............       4,634       4,975       5,829
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       3,702       4,894       5,490
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          62          63
    73.10 Total new obligations.............       4,196       4,552       4,636
    73.20 Total financing disbursements
            (gross).........................      -4,156      -4,551      -4,645
    74.40 Obligated balance, end of year....          62          63          54
    87.00 Total financing disbursements
            (gross).........................       4,156       4,551       4,645
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.00         Payments from program
                    account.................        -279        -719        -437
    88.00         Recoveries from DLFA......      -1,135      -1,558      -1,651
    88.25     Interest on uninvested funds..        -299        -244        -280
              Non-Federal sources:
                Non-Federal sources:

    88.40         Funding fees..............        -506        -534        -597
    88.40         Cash sale of properties...        -610        -624        -772
    88.40         Redemption of properties
                    and other...............          -5         -25         -24
    88.40         Subordinate certificate
                    deposits................         -28         -36         -30
    88.45     Loan sale proceeds............        -840      -1,154      -1,699
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,702      -4,894      -5,490
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         455        -343        -845
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................      31,138      32,067      32,665
    2132  Guaranteed loan commitments for
            loan asset sales with recourse..         810       1,219       1,699
                                               ---------   ---------  ----------

    [[Page 866]]

    2150    Total guaranteed loan
              commitments...................      31,948      33,286      34,364
    2199  Guaranteed amount of guaranteed
            loan commitments................      10,804      11,510      12,183
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     211,568     227,705     238,843
    2231  Disbursements of new guaranteed
            loans...........................      31,138      32,067      32,665
    2232  Guarantees of loans sold to the
            public with recourse............         810       1,219       1,699
    2251  Repayments and prepayments........     -13,936     -19,788     -19,830
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -362        -129        -126
    2262    Terminations for default that
              result in acquisition of
              property......................      -1,126      -1,760      -1,996
    2263    Terminations for default that
              result in claim payments......         -53        -377        -353
    2264    Other adjustments, net..........        -334         -94         -96
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     227,705     238,843     250,806
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      78,251      82,625      87,529
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......           9         344         418
    2331    Disbursements for guaranteed
              loan claims...................         362         129         126
    2351    Repayments of loans receivable..          -1         -22         -26
    2361    Write-offs of loans receivable..         -26         -33         -38
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         344         418         480
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       5,150          4,696         4,975          5,223
            Investments in US securities:
    1106      Receivables, net..............         114            594           578            604
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............           9            344           418            480
    1502    Interest receivable.............           9              9            10             10
    1504    Accounts receivable from
              foreclosed property...........         806            830           896            937
    1505    Other assets....................         196             43            49             55
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       1,020          1,226         1,373          1,482
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       6,284          6,516         6,926          7,309
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          38             26            29             30
    2105    Other...........................       1,296          1,129         1,143          1,238
    2204  Non-Federal liabilities: Non-
            federal liabilities.............       4,950          5,361         5,754          6,041
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       6,284          6,516         6,926          7,309
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       6,284          6,516         6,926          7,309
    -----------------------------------------------------------------------------------------------

            Veterans Housing Benefit Program Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investments:

    00.01   Acquisition of homes............          83          63          49
    00.02   Direct Program Activity.........           6           4           3
    00.03   Cash advances...................         -82           4           3
    00.04   Acquisition of defaulted
              guaranteed loans..............          30          29          27
    00.05   Repurchase of loans sold........           7           6           6
                                               ---------   ---------  ----------
    00.91     Total capital investments.....          44         106          88
                                               ---------   ---------  ----------
    01.00   Total capital investments.......          44         106          88
          Operating expenses:

    01.02   Property management expense.....          16          17          18
    01.03   Sales expense...................          17          10          10
    01.04   Claims processed................         106          74          68
    01.05   Other operating expenses........           1
                                               ---------   ---------  ----------
    01.91     Total operating expenses......         140         101          96
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................         184         207         184
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         244         115
    22.00 New budget authority (gross)......         299         210         188
    22.40 Capital transfer to general fund..        -244        -118          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         299         207         184
    23.95 Total new obligations.............        -184        -207        -184
    24.40 Unobligated balance carried
            forward, end of year............         115
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         263         210         188
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          36
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         299         210         188
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          88         -24          21
    73.10 Total new obligations.............         184         207         184
    73.20 Total outlays (gross).............        -260        -162        -186
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -36
    74.40 Obligated balance, end of year....         -24          21          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         260         162         186
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources: Payments
                  from direct loan financing
                  account...................        -100        -126        -119
    88.00       Federal sources: Payments
                  from loan sales...........         -21         -11         -10
              Non-Federal sources:
                Non-Federal sources:

    88.40         Loan and other repayments.         -44         -34         -25
    88.40         Sale of homes, cash.......         -78         -28         -26
    88.40         Interest on loans.........         -15         -11          -8
    88.45     Offsetting governmental
                collections (from non-
                Federal sources)............          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -263        -210        -188
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -36
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -4         -48          -2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         164         128          94

    [[Page 867]]

    1232  Disbursements: Purchase of loans
            assets from the public..........           7           6           5
          Repayments:

    1251    Repayments and prepayments......         -44         -34         -25
    1253    Proceeds from loan asset sales
              to the public with recourse...                      -6          -6
    1264  Write-offs for default: Other
            adjustments, net................           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         128          94          68
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      12,740       9,182       6,611
    2251  Repayments and prepayments........      -3,339      -2,406      -1,732
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -30         -29         -27
    2262    Terminations for default that
              result in acquisition of
              property......................         -83         -62         -50
    2263    Terminations for default that
              result in claim payments......        -106         -74         -67
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       9,182       6,611       4,735
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,154       2,990       2,142
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         286         274         282
    2331    Disbursements for guaranteed
              loan claims...................          30          29          27
    2361    Write-offs of loans receivable..         -22         -21         -19
    2364    Other adjustments, net..........         -20
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         274         282         290
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4025-0-3-704    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          93            140           112             89
    0102  Expense...........................         -93           -140          -101            -96
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............                                       11             -7
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4025-0-3-704    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net         165            128            93             68
    1201  Non-Federal assets: Investments in
            non-Federal securities, net.....                        452           407            366
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         165            580           500            434
        LIABILITIES:
    2103  Federal liabilities: Debt.........         165            567           500            434
    2207  Non-Federal liabilities: Other....                         13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         165            580           500            434
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         165            580           500            434
    -----------------------------------------------------------------------------------------------

        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.

              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, [$544,000]
    $565,000, which may be transferred to and merged with the appropriation
    for ``General operating expenses'' Provided, that no new loans in excess
    of $5,000,000 may be made in fiscal year 2003. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2002.)

      guaranteed transitional housing loans for homeless veterans program
                                     account

        For the administrative expenses to carry out the guaranteed
    transitional housing loan program authorized by 38 U.S.C. chapter 37,
    subchapter VI, not to exceed $750,000 of the amounts appropriated by
    this Act for ``General operating expenses'' and ``Medical care'' may be
    expended. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0128-0-1-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Subsidy...............                                   9
    00.09 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           1           1          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          51          51          51
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          52          52
    23.95 Total new obligations.............          -1          -1         -10
    24.40 Unobligated balance carried
            forward, end of year............          51          51          42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    73.10 Total new obligations.............           1           1          10
    73.20 Total outlays (gross).............          -1          -1          -5
    74.40 Obligated balance, end of year....                                   5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.98 Outlays from mandatory balances...                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           1           5
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 36-0128-0-1-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Native American...................           1                       3
    115002Transitional Housing..............                                  20
                                               ---------   ---------  ----------
    115901Total direct loan levels..........           1                      23
        Direct loan subsidy (in percent):
    132001Native American...................        7.72        7.72       -8.96
    132002Transitional Housing..............        0.00        0.00       48.25
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        7.72        7.72       43.48
        Direct loan subsidy budget authority:
    133001Native American...................
    133002Transitional Housing..............                                  10
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....                                  10
        Direct loan subsidy outlays:
    134001Native American...................
    134002Transitional Housing..............                                   4
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                                   4
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Native American...................                      -2
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                      -2

    [[Page 868]]

        Direct loan downward reestimate subsidy
                    outlays:
    138001Native American...................                      -2
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                      -2
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Transitional Housing..............
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......
        Guaranteed loan subsidy (in percent):
    232001Transitional Housing..............       48.25       48.25        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       48.25       48.25        0.00
        Guaranteed loan subsidy budget authority:
    233001Transitional Housing..............
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....
        Guaranteed loan subsidy outlays:
    234001Transitional Housing..............
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           1           1           1
    358001Outlays from balances.............
    359001Outlays 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, 2005.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           2           3          13
    00.03 Interest on Treasury borrowing....           1           1           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............           3           4          15
    08.02 Payment of downward reestimate to
            receipt account.................                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           6          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...           2           6          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           6          20
    23.95 Total new obligations.............          -3          -6         -15
    24.40 Unobligated balance carried
            forward, end of year............                                   5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           3           5          13
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           2           2           8
    68.47     Portion applied to repay debt.          -3          -1          -1
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          -1           1           7
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           2           6          20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           3           6          15
    73.20 Total financing disbursements
            (gross).........................          -3          -6         -15
    87.00 Total financing disbursements
            (gross).........................           3           6          15
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                                  -5
              Non-Federal sources:
    88.40       Repayment of principal......          -1          -1          -1
    88.40       Interest received on loans..          -1          -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -2          -8
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                       4          12
    90.00 Financing disbursements...........           1           4           7
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                                   5
    1121  Limitation available from carry-
            forward.........................                                 100
    1131  Direct loan obligations exempt
            from limitation.................           2           3
    1143  Unobligated limitation carried
            forward (P.L. 105-368)..........                                 -90
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           2           3          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          17          19          21
    1231  Disbursements: Direct loan
            disbursements...................           2           3          15
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -1
    1264  Write-offs for default: Other
            adjustments, net................           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          19          21          35
    ---------------------------------------------------------------------------

    [[Page 869]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4130-0-3-704    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net           1                                           5
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          17             19            21             34
    1402    Interest receivable.............          -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          16             19            21             34
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          17             19            21             39
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................                                                      10
    2103    Federal liabilities debt........          17             19            21             29
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          17             19            21             39
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          17             19            21             39
    -----------------------------------------------------------------------------------------------

        This account contains information on the Native American Veterans
    Housing Loan program and the Guaranteed Transitional Housing Loans for
    Homeless Veterans program. The Transitional Housing loans are 100%
    guaranteed and use the Federal Financing Bank (FFB) as the lending
    institution. For budget purposes, all FFB loans shall be treated as
    direct loans.

        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 Programs Loan Fund Program Account

                 Vocational Rehabilitation Loans Program Account

                          (including transfer of funds)

        For the cost of direct loans, [$72,000] $55,000, as authorized by 38
    U.S.C. chapter 31, as amended: Provided, That such costs, including the
    cost of modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That
    funds made available under this heading are available to subsidize gross
    obligations for the principal amount of direct loans not to exceed
    [$3,301,000] $3,626,000.
        In addition, for administrative expenses necessary to carry out the
    direct loan program, [$274,000] $293,000, 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, 2002.)

                       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, [$64,000] $71,000, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0140-0-1-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Change in obligated balances:
    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 36-0140-0-1-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct loan levels, vocational
            rehabiliation...................           2           3           3
    115002Direct loan levels, education.....
                                               ---------   ---------  ----------
    115901Total direct loan levels..........           2           3           3
        Direct loan subsidy (in percent):
    132001Direct loan levels, vocational
            rehabiliation...................        1.88        2.18        1.50
    132002Direct loan levels, education.....       13.93        7.81        6.49
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        1.88        2.18        1.50
        Direct loan subsidy budget authority:
    133001Direct loan levels, vocational
            rehabiliation...................
    133002Direct loan levels, education.....
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Direct loan levels, vocational
            rehabiliation...................
    134002Direct loan levels, education.....
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           1
    358001Outlays from balances.............
    359001Outlays...........................           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 $896
    (based on indexed Chapter 31 Subsistence allowance rate) to veterans
    enrolled in a program of vocational rehabilitation who are temporarily
    in need of additional funds to meet their expenses.

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

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

    [[Page 870]]

     Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4259-0-3-702      2001 actual   2002 est.   2003 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:
          Discretionary:

    47.00   Authority to borrow.............           2
          Mandatory:

    67.10   Authority to borrow.............                       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 obligated balances:
    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:

    88.40   Offsetting collections (cash)
              from: Interest on loans.......          -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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           3           3           3
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           3           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    2000 actual    2001 actual     2002 est.      2003 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
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................
    -----------------------------------------------------------------------------------------------

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

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

                                   Trust Funds

                   Post-Vietnam Era Veterans Education Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deductions from military pay......           2           1
    02.40 Contributions.....................           1           1           2
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           3           2           2
        Appropriations:
    05.00 Post-Vietnam era veterans
            education account...............          -3          -2          -2
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -3          -2          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to post-Vietnam era
            trainees........................           4           4           3
    00.03 Participant disenrollments........          11           9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          15          13          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          97          84          74
    22.00 New budget authority (gross)......           3           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100          86          76
    23.95 Total new obligations.............         -15         -13         -12
    24.40 Unobligated balance carried
            forward, end of year............          84          74          64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          18          14          14
    60.45   Portion precluded from
              obligation....................         -15         -12         -12
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           3           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           2
    73.10 Total new obligations.............          15          13          12
    73.20 Total outlays (gross).............         -15         -12         -12
    74.40 Obligated balance, end of year....           1           2           2
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................           3           2           2
    90.00 Outlays...........................          14          12          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:

    [[Page 871]]

        CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                            [In millions of dollars]

                                         2001 actual  2002 est.   2003 est.

    Total budget authority..............          $4          $2          $2
      Servicepersons....................          $1          $1          $1
      Transferred from Department of
        Defense (bonus).................          $1          $1          $1
      Transferred from Department of
        Defense (matching)..............          $2          $1          $0
      Transferred from Department of
        Defense (section 901)...........          $0          $0          $0
    Total participants (end of year)....     210,385     200,385     189,785
    Total contributors (end of year)....       1,600         700         200
    Average contribution per contributor
    (actual dollars)....................        $923        $923        $923
    Number of disenrollments............      12,600      10,700      10,800
    Total refunds.......................         $11          $9          $9
    Total trainees......................       1,680       1,180         980
    Total trainee cost..................          $4          $4          $4
    Average cost per trainee (actual
    dollars)............................      $2,298      $2,966      $3,286
    Section 901 trainees................          20          20          20

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................           4           4           3
    44.0  Refunds...........................          11           9           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          15          13          12
    ---------------------------------------------------------------------------

                      National Service Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............      10,426      10,236       9,989
        Receipts:
    02.20 Premium and other receipts........         194         198         184
    02.40 Interest..........................         855         828         780
    02.41 Payments from general and special
            funds...........................           1           1           2
    02.80 National Service Life Insurance
            fund, offsetting collections....         493         472         451
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       1,543       1,499       1,417
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      11,969      11,735      11,406
        Appropriations:
    05.00 National Service Life Insurance
            fund............................      -1,733      -1,746      -1,733
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -1,733      -1,746      -1,733
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      10,236       9,989       9,673
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct:

            Operating expenses:
    00.01     Death claims..................         653         638         649
    00.02     Disability claims.............          14          13          11
    00.03     Matured endowments............           5           7           9
    00.04     Cash surrenders...............          32          34          35
    00.05     Dividends.....................         375         363         335
    00.06     Interest paid on dividend
                credits and deposits........          55          55          55
    00.07     Payment to general operating
                expenses....................          21          22          22
                                               ---------   ---------  ----------
    00.91       Total operating expenses....       1,155       1,132       1,116
    02.01 Capital investment: Policy loans..          96          94          96
                                               ---------   ---------  ----------
    02.93   Total direct obligations........       1,251       1,226       1,212
          Reimbursable program:

    09.01   Death claims....................         247         293         303
    09.02   Disability Claims...............           6           6           5
    09.03   Matured Endowments..............           2           3           4
    09.04   Cash Surrenders.................          15          16          16
    09.05   Dividends.......................         176         167         156
    09.06   Interest paid on dividend
              credits and deposits..........          26          25          26
    09.07   Payment to general operating
              expenses......................          10          10          10
                                               ---------   ---------  ----------
    09.09     Reimbursable program..........         482         520         520
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,733       1,746       1,732
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,733       1,746       1,732
    23.95 Total new obligations.............      -1,733      -1,746      -1,732
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......       1,050       1,027         965
    69.00 Offsetting collections (cash).....         493         472         451
    69.26 From offsetting collections
            (unavailable balances)..........         190         247         317
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         683         719         768
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,733       1,746       1,733
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,385       1,403       1,417
    73.10 Total new obligations.............       1,733       1,746       1,732
    73.20 Total outlays (gross).............      -1,715      -1,730      -1,722
    74.40 Obligated balance, end of year....       1,403       1,417       1,427
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,543       1,499       1,416
    86.98 Outlays from mandatory balances...         171         230         306
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,715       1,730       1,722
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of loans.........        -128        -124        -118
    88.40       Optional settlements........          -2          -1          -1
    88.40       Net income offsets
                  adjustments...............        -363        -347        -332
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -493        -472        -451
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,240       1,274       1,281
    90.00 Outlays...........................       1,221       1,258       1,271
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      11,804      11,639      11,406
    92.02 Total investments, end of year:
            Federal securities: Par value...      11,639      11,406      11,099
    ---------------------------------------------------------------------------
        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

                                         2001 actual  2002 est.   2003 est.

    Number of policies..................   1,606,590   1,495,800   1,384,620
    Insurance in force (dollars in
    millions)...........................     $16,288     $15,540     $14,756

        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 $12,225 million as of September 30, 2002 to $11,861
    million as of September 30, 2003. The actuarial estimate of policy
    obligations as of September 30, 2003, total $11,581 million, leaving a
    balance of $280 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Uninvested balance [unavailable
            collections]....................           6           1           1

    [[Page 872]]

    0101  U.S. Securities: Par value........      11,804      11,639      11,406
                                               ---------   ---------  ----------
    0199    Total balance, start of year....      11,811      11,639      11,406
        Cash income during the year:
          Current law:

            Offsetting receipts
                (proprietary):
    1220      NSLI fund, premium and other
                receipts....................         194         198         184
            Offsetting receipts
                (intragovernmental):
    1240      NSLI fund,interest............         855         828         780
    1241      NSLI fund, payments from
                general and special funds...           1           1           2
            Offsetting collections:
    1280      NSLI fund, offsetting
                collections.................         493         472         451
    1299    Income under present law........       1,543       1,499       1,417
        Cash outgo during year:
          Current law:

    4500    National service life insurance
              fund..........................      -1,715      -1,730      -1,722
        Unexpended balance, end of year:
    8700  Uninvested balance................           1           1           1
    8701  Federal securities: Par value.....      11,639      11,406      11,099
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      11,639      11,406      11,100
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    33.0    Investments and loans...........          96          94          96
    42.0    Insurance claims and indemnities         704         692         704
    43.0    Interest and dividends..........         451         440         412
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,251       1,226       1,212
    99.0  Reimbursable obligations..........         482         520         520
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,733       1,746       1,732
    ---------------------------------------------------------------------------

                  United States Government Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          55          50          44
        Receipts:
    02.40 Interest and profits on
            investments in public debt
            securities......................           5           4           4
    02.80 United States government life
            insurance fund, offsetting
            collections.....................           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           6           5           5
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          61          55          49
        Appropriations:
    05.00 United States government life
            insurance fund..................         -11         -11         -10
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -11         -11         -10
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          50          44          39
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2001 actual   2002 est.   2003 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.........................           2           2           2
                                               ---------   ---------  ----------
    09.09   Reimbursable program............           6           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          11          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11          11          10
    23.95 Total new obligations.............         -11         -11         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           5           4           4
    69.00 Offsetting collections (cash).....           1           1           1
    69.26 From offsetting collections
            (unavailable balances)..........           5           6           5
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           6           7           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11          11          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          19          18          16
    73.10 Total new obligations.............          11          11          10
    73.20 Total outlays (gross).............         -12         -13         -12
    74.40 Obligated balance, end of year....          18          16          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           5           5
    86.98 Outlays from mandatory balances...           6           7           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          13          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          12          11
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          74          68          61
    92.02 Total investments, end of year:
            Federal securities: Par value...          68          61          54
    ---------------------------------------------------------------------------
        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

                                         2001 actual  2002 est.   2003 est.
    Number of policies..................      14,683      13,040      11,440
    Insurance in force (dollars in
    millions)...........................         $48         $42         $37

        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 $65 million
    as of September 30, 2002, to $58 million as of September 30, 2003, as an
    increasing number of policies mature through death or disability. The
    actuarial evaluation of policy obligations as of September 30, 2003,
    totals $57 million, leaving a balance of $1 million for contingency
    reserves.

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

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0101  U.S. Securities: Par value........          73          68          61
                                               ---------   ---------  ----------
    0199    Total balance, start of year....          74          68          60
        Cash income during the year:
          Current law:

            Offsetting receipts
                (intragovernmental):
    1240      Interest and profits on
                investments in public debt
                securities, USGLI, VA.......           5           4           4

    [[Page 873]]

            Offsetting collections:
    1280      Offsetting collections, USGLI.           1           1           1
    1299    Income under present law........           6           5           5
        Cash outgo during year:
          Current law:

    4500    United States government life
              insurance fund................         -12         -13         -12
        Unexpended balance, end of year:
    8701  Federal securities: Par value.....          67          61          54
                                               ---------   ---------  ----------
    8799    Total balance, end of year......          68          60          53
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    42.0    Insurance claims and indemnities           2           2           2
    43.0    Interest and dividends..........           3           3           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............           5           5           4
    99.0  Reimbursable obligations..........           6           6           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11          11          10
    ---------------------------------------------------------------------------

                      Veterans Special Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............       1,462       1,488       1,507
        Receipts:
    02.80 Veterans special life insurance
            fund, offsetting collections....         235         234         230
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,697       1,722       1,737
        Appropriations:
    05.00 Veterans special life insurance
            fund............................        -209        -215        -221
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -209        -215        -221
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       1,488       1,507       1,516
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          56          61          66
    09.02 Cash surrenders...................           6           6           6
    09.03 Dividends.........................          93          93          88
    09.04 All other.........................          30          33          38
    09.05 Payments to GOE account...........           5           5           5
    09.06 Capital investment................          18          17          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         209         215         221
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         209         215         221
    23.95 Total new obligations.............        -209        -215        -221
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         235         234         230
    69.26   From offsetting collections
              (unavailable balances)........         -26         -19          -9
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         209         215         221
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         249         270         287
    73.10 Total new obligations.............         209         215         221
    73.20 Total outlays (gross).............        -188        -198        -207
    74.40 Obligated balance, end of year....         270         287         301
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          19          20          21
    86.98 Outlays from mandatory balances...         170         178         186
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         188         198         207
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -143        -143        -141
              Non-Federal sources:
    88.40       Interest on loans...........          -6          -6          -6
    88.40       Insurance premiums earned...         -68         -67         -65
    88.40       Repayments of loans.........         -18         -18         -18
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -235        -234        -230
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -26         -19          -9
    90.00 Outlays...........................         -47         -36         -23
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       1,710       1,756       1,793
    92.02 Total investments, end of year:
            Federal securities: Par value...       1,756       1,793       1,816
    ---------------------------------------------------------------------------
        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

                                         2001 actual  2002 est.   2003 est.
    Number of policies..................     233,335     223,460     212,890
    Insurance in force (dollars in
    millions)...........................      $2,635      $2,598      $2,556

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          18          17          18
    42.0  Insurance claims and indemnities..          77          84          93
    43.0  Interest and dividends............         114         114         110
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         209         215         221
    ---------------------------------------------------------------------------

                                  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

    [[Page 874]]

    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, [$183,180,000]
    $193,740,000, to remain available until expended, of which [$60,000,000]
    $5,000,000 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 of the amount made available under
    this heading for CARES activities, up to $40,000,000 shall be for
    construction of a blind and spinal cord injury center at the Hines
    Veterans Affairs Medical Center pursuant to the Veterans Integrated
    Service Network (VISN) 12 CARES study, and construction of such center
    is hereby deemed authorized pursuant to title 38, United States Code:
    Provided further, That the amounts designated in the previous proviso
    shall be available for obligation only after the Secretary of Veterans
    Affairs has initiated all actions necessary to implement fully Option B
    of the July 19, 2001 VISN 12 Service Delivery Options after consulting
    with interested and affected parties, and has initiated Phase II of the
    CARES process] $10,000,000 shall be to make reimbursements as provided
    in 41 U.S.C. 612 for claims paid for contract disputes: Provided
    further, That except for advance planning activities, including needs
    assessments which may or may not lead to capital investments, and other
    capital asset management related activities, such as portfolio
    development and management activities, and investment strategy studies
    funded through the advance planning fund and the planning and design
    activities funded through the design fund and CARES funds, including
    needs assessments which may or may not lead to capital investments, none
    of the funds appropriated under this heading shall be used for any
    project which has not been approved by the Congress in the budgetary
    process: Provided further, That funds provided in this appropriation for
    fiscal year [2002] 2003, 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, [2002] 2003; and (2) by the awarding of a
    construction contract by September 30, [2003] 2004: Provided further,
    That the Secretary of Veterans Affairs shall promptly report in writing
    to the Committees on Appropriations any approved major construction
    project in which obligations are not incurred within the time
    limitations established above: Provided further, That no funds from any
    other account except the ``Parking revolving fund'', may be obligated
    for constructing, altering, extending, or improving a project which was
    approved in the budget process and funded in this account until 1 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Medical program...................          75          93         199
    00.02 National cemeteries...............          11          82          88
    00.03 Replacement or renovation of
            regional offices................           2           1           2
    00.04 Other.............................                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          88         177         290
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         417         395         401
    22.00 New budget authority (gross)......          66         183         194
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         483         578         595
    23.95 Total new obligations.............         -88        -177        -290
    24.40 Unobligated balance carried
            forward, end of year............         395         401         305
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          66         183         194
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         299         208         278
    73.10 Total new obligations.............          88         177         290
    73.20 Total outlays (gross).............        -179        -107        -114
    74.40 Obligated balance, end of year....         208         278         454
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           8           8
    86.93 Outlays from discretionary
            balances........................         177          98         106
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         179         107         114
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          66         183         194
    90.00 Outlays...........................         179         107         114
    ---------------------------------------------------------------------------

        Funds are requested for new cemeteries in the vicinity of Miami,
    Florida and Pittsburgh, Pennsylvania; cemetery improvement and expansion
    in Willamette, Oregon; activities related to CARES; and seismic
    corrections to two medical facilities in Palo Alto, CA, one in San
    Francisco, CA, and one in West Los Angeles, CA.

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

                      Budget Authority by Program Activity

                            [In millions of dollars]

                                         2001 actual  2002 est.   2003 est.
    General.............................          17         112          30
    Seismic.............................           0           0          94
    Patient environment.................           1
    Other departments...................          51          71          69
    Design fund offset..................         (1)
    Reprogramming.......................         (2)
                                        ------------------------------------
          Total budget authority........          66         183         194
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.3  Personnel compensation: Other than
            full-time permanent.............           2           2           2
    25.2  Other services....................          32          35          45
    26.0  Supplies and materials............           2           3           3
    31.0  Equipment.........................           2           4           3
    32.0  Land and structures...............          50         133         237
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          88         177         290
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2001 actual   2002 est.   2003 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, [$210,900,000] $210,700,000,

    [[Page 875]]

    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] $35,000,000 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 upon notification of [and approval by]
    the Committees on Appropriations: 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Medical programs..................         111         191         175
    00.06 National cemeteries...............          22          27          21
    00.07 Staff Offices.....................           5          12           5
    00.08 Replacement or renovation of
            regional offices................          12          21          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         150         251         216
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          56          72          32
    22.00 New budget authority (gross)......         166         211         211
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         222         283         243
    23.95 Total new obligations.............        -150        -251        -216
    24.40 Unobligated balance carried
            forward, end of year............          72          32          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         171         211         211
    41.00   Transferred to other accounts...          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         166         211         211
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         215         208         282
    73.10 Total new obligations.............         150         251         216
    73.20 Total outlays (gross).............        -157        -177        -194
    74.40 Obligated balance, end of year....         208         282         304
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          43          55          55
    86.93 Outlays from discretionary
            balances........................         114         122         139
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         157         177         194
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         166         211         211
    90.00 Outlays...........................         157         177         194
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.3  Personnel compensation: Other than
            full-time permanent.............           2           2           2
    25.2  Other services....................          26          37          45
    26.0  Supplies and materials............           5           5           5
    32.0  Land and structures...............         117         207         164
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         150         251         216
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          43          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, to remain available until expended. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0181-0-1-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to States..................          85         242         100
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          85         242         100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         127         142
    22.00 New budget authority (gross)......         100         100         100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         227         242         100
    23.95 Total new obligations.............         -85        -242        -100
    24.40 Unobligated balance carried
            forward, end of year............         142
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          62          87         238
    73.10 Total new obligations.............          85         242         100
    73.20 Total outlays (gross).............         -60         -91         -95
    74.40 Obligated balance, end of year....          87         238         243
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          60          91          95
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100         100         100
    90.00 Outlays...........................          60          91          95
    ---------------------------------------------------------------------------

        In 2002, the Department plans to obligate $242 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]
    $32,000,000, to remain available until expended. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0183-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to States..................          24          42          32
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          24          42          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          17
    22.00 New budget authority (gross)......          25          25          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          41          42          32

    [[Page 876]]

    23.95 Total new obligations.............         -24         -42         -32
    24.40 Unobligated balance carried
            forward, end of year............          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          25          46
    73.10 Total new obligations.............          24          42          32
    73.20 Total outlays (gross).............         -20         -21         -25
    74.40 Obligated balance, end of year....          25          46          53
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4
    86.93 Outlays from discretionary
            balances........................          16          21          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          21          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25          32
    90.00 Outlays...........................          20          21          25
    ---------------------------------------------------------------------------

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

    Public enterprise funds:

                             Parking Revolving Fund

        For the parking revolving fund as authorized by 38 U.S.C. 8109,
    income from fees collected [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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4538-0-3-703      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses: parking leases           3           3           3
    09.01 Capital Investment: parking
            construction program............           3          12           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6          15           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          17           9
    22.00 New budget authority (gross)......          10           7           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          22          24          12
    23.95 Total new obligations.............          -6         -15          -8
    24.40 Unobligated balance carried
            forward, end of year............          17           9           4
    ----------------------------------------------------------------------------

        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).......................          10           7           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           1          10
    73.10 Total new obligations.............           6          15           8
    73.20 Total outlays (gross).............          -8          -6          -7
    74.40 Obligated balance, end of year....           1          10           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           3           3
    86.93 Outlays from discretionary
            balances........................           6           3           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           6           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...........................           5           3           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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    23.2  Rental payments to others.........           3           3           3
    32.0  Land and structures...............           3          12           5
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......           6          15           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           6          15           8
    ---------------------------------------------------------------------------

                          Pershing Hall Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4018-0-3-705      2001 actual   2002 est.   2003 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 administrative expenses
    in support of Department-wide capital planning, management and policy
    activities, 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, [$1,195,728,000] $1,316,765,000: 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

    [[Page 877]]

    further, That of the funds made available under this heading, [not to
    exceed $60,000,000] $65,800,000 shall be available for obligation until
    September 30, [2003] 2004: Provided further, That from the funds made
    available under this heading, the Veterans Benefits Administration may
    purchase up to [four] two passenger motor vehicles for use in operations
    of that Administration in Manila, Philippines[: Provided further, That
    travel expenses for this account shall not exceed $15,665,000].
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States for ``General operating
    expenses'', $2,000,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38.] (Emergency
    Supplemental Act, 2002)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Veterans benefits:
    00.04     Compensation and pensions.....         696         787         798
    00.05     Education.....................          66          89         103
    00.06     Vocational rehabilitation and
                counseling..................         112         130         134
    00.09     Insurance\1\..................           3           4           4
    00.11     General administration........         265         259         278
                                               ---------   ---------  ----------
    01.00   Total Direct Program............       1,142       1,269       1,317
          Reimbursable program:

    09.01   Administration of housing credit
              programs......................         169         171         176
    09.02   Administration of other credit
              programs......................           1           1           1
    09.03   Administration of insurance
              programs......................          39          39          40
    09.04   Other reimbursable programs.....         163         252         212
                                               ---------   ---------  ----------
    09.99     Total reimbursable program....         372         463         429
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,514       1,732       1,746
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5          14
    22.00 New budget authority (gross)......       1,524       1,718       1,746
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,529       1,732       1,746
    23.95 Total new obligations.............      -1,514      -1,732      -1,746
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................       1,102       1,252       1,317
    40.00     Appropriation.................                       2
    40.35   Appropriation rescinded.........          -2
    42.00   Transferred from other accounts.          52           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,152       1,255       1,317
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         372         463         429
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,524       1,718       1,746
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         190         201         215
    73.10 Total new obligations.............       1,514       1,732       1,746
    73.20 Total outlays (gross).............      -1,495      -1,718      -1,735
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    74.40 Obligated balance, end of year....         201         215         226
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,301       1,502       1,520
    86.93 Outlays from discretionary
            balances........................         194         215         216
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,495       1,718       1,735
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -372        -463        -429
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,152       1,255       1,317
    90.00 Outlays...........................       1,123       1,255       1,306
    ---------------------------------------------------------------------------
        \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.

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,100       1,199       1,256
    90.00 Outlays...........................       1,071       1,199       1,245
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................       1,152       1,255       1,317
      Outlays...........................       1,123       1,254       1,307
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  20
      Outlays...........................                                  20
                                        ------------------------------------
    Total:
      Budget Authority..................       1,152       1,255       1,337
      Outlays...........................       1,123       1,254       1,327
                                        ====================================

        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]

                                         2001 actual  2002 est.   2003 est.
    Compensation:
      Rating-Related Actions \1\........         398         656         682
      Non Rating Actions \2\............         264         337         346
    Pension:
      Rating-Related Actions \1\........          84         144         150
      Non Rating Actions \2\............         418         550         564
        \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]

                                         2001 actual  2002 est.   2003 est.
    Education:
      Original claims...................         162         200         218
      Adjustments/supplemental claims...         843       1,020       1,105

         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.

    [[Page 878]]

                                    WORKLOAD

                                 [In thousands]

                                         2001 actual  2002 est.   2003 est.
    Loan guaranty:
      Construction and valuation (number
        of reviews).....................         304         319         335
      Loan processing (number of loans).         699         734         771
      Loan service and claims (number of
        loans and claims)...............         287         301         316
      Property management (number of
        properties).....................          49          51          54

        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]

                                         2001 actual  2002 est.   2003 est.
    Vocational rehabilitation and
        employment:
      Evaluation and planning...........          53          55          56
      Rehabilitation services...........          61          63          64
      Employment services status........          14          14          15
      Vocational/educational counseling.          11          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]

                                         2001 actual  2002 est.   2003 est.
    Insurance:
      Policy service actions............         963         947         917
      Collections.......................       2,656       2,497       2,322
      Disability claims.................          11          11          11
      Insurance awards..................         773         479         453

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         598         662         694
    11.5      Other personnel compensation..          20          15          15
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         618         677         709
    12.1    Civilian personnel benefits.....         190         201         231
    13.0    Benefits for former personnel...           4           6           4
            Travel and transportation of
                persons:
    21.0      Employee travel...............          16          16          17
    21.0      Travel and transportation of
                persons.....................           2           2           2
    22.0    Transportation of things........           1           3           3
    23.1    Rental payments to GSA..........          86          79          87
    23.2    Rental payments to others.......           7           9           9
    23.3    Communications, utilities, and
              miscellaneous charges.........          24          37          45
    24.0    Printing and reproduction.......           3           3           3
    25.2    Other services..................         141         186         165
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           3           3
    26.0    Supplies and materials..........          11          12          11
    31.0    Equipment.......................          36          35          28
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,142       1,269       1,317
    99.0  Reimbursable obligations..........         372         463         429
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,514       1,732       1,746
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment\1\...      11,523      12,581      12,776
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       3,184       3,239       3,229
    ---------------------------------------------------------------------------
        \1\ Reflects FTE treated as reimbursements in all years and the
    effects of Credit Reform, per P.L. 101-508.

                           General Operating Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-2-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Veterans benefits:
    00.06     Vocational rehabilitation and
                counseling..................                                  20
                                               ---------   ---------  ----------
    01.00   Total Direct Program............                                  20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  20
    23.95 Total new obligations.............                                 -20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  20
    73.20 Total outlays (gross).............                                 -20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  20
    90.00 Outlays...........................                                  20
    ---------------------------------------------------------------------------

        The Administration will transmit legislation that will establish a
    new competitive grant program in the Department of Veterans Affairs,
    subject to Congressional authorization, which will enable the Department
    to assist States in establishing, expanding, or improving employment and
    training services for veterans. The Department will set clear
    employment-based outcome measures for these grants and judge grantee
    performance on this basis. The emphasis will be on serving those
    veterans who most need employment assistance, including disabled or
    homeless veterans.

        This new competitive grant program will replace a similar set of
    programs now in the Department of Labor's Veterans Employment and
    Training Service.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-2-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                                  10
    12.1  Civilian personnel benefits.......                                   2
    21.0  Employee travel...................                                   1
    23.1  Rental payments to GSA............                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........                                   1
    25.2  Other services....................                                   4
    31.0  Equipment.........................                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  20
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0151-2-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                 199
    ---------------------------------------------------------------------------

    [[Page 879]]

                           Office of Inspector General

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended,
    [$52,308,000] $58,338,000, of which $2,917,000 shall remain available
    until September 30, 2004. (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct program....................          48          55          58
    09.00 Reimbursable program..............           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          50          58          61
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          50          58          61
    23.95 Total new obligations.............         -50         -58         -61
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          48          55          58
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          50          58          61
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11          10           5
    73.10 Total new obligations.............          50          58          61
    73.20 Total outlays (gross).............         -51         -58         -61
    73.40 Adjustments in expired accounts
            (net)...........................          -1          -5          -5
    74.40 Obligated balance, end of year....          10           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          48          53          56
    86.93 Outlays from discretionary
            balances........................           3           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          51          58          61
    ----------------------------------------------------------------------------

        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..................          48          55          58
    90.00 Outlays...........................          49          55          58
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          52          55
    90.00 Outlays...........................          47          52          55
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          27          32          33
    12.1    Civilian personnel benefits.....           9          11          11
    21.0    Travel and transportation of
              persons.......................           2           3           3
    23.1    Rental payments to GSA..........           2           2           3
    25.2    Other services..................           8           7           8
                                               ---------   ---------  ----------
    99.0      Direct obligations............          48          55          58
    99.0  Reimbursable obligations..........           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          50          58          61
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         350         405         402
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          20          24          24
    ---------------------------------------------------------------------------

                        National Cemetery Administration

        For necessary expenses 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 one passenger motor vehicle for use in cemeterial
    operations; and hire of passenger motor vehicles, [$121,169,000]
    $138,323,000, of which $6,912,000 shall be available until September 30,
    2004. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct obligations................         113         126         138
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         113         126         138
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         113         126         138
    23.95 Total new obligations.............        -113        -126        -138
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         114         126         138
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         113         126         138
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          21          22
    73.10 Total new obligations.............         113         126         138
    73.20 Total outlays (gross).............        -108        -125        -137
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          21          22          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          95         114         125
    86.93 Outlays from discretionary
            balances........................          13          11          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         108         125         137
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         113         126         138
    90.00 Outlays...........................         107         125         137
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         109         121         133

    [[Page 880]]

    90.00 Outlays...........................         103         120         132
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          48          51          55
    11.3    Other than full-time permanent..           6           7           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          54          58          62
    12.1  Civilian personnel benefits.......          19          22          23
    21.0  Travel and transportation of
            persons.........................           1           2           2
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           5           5           6
    25.2  Other services....................          20          25          28
    26.0  Supplies and materials............           7           7           8
    31.0  Equipment.........................           6           6           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         113         126         138
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,385       1,460       1,519
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                                   Supply Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program-COGS-
            Merchandizing...................         895         934         987
    09.02 Reimbursable program-Other-
            Operations......................          46          56          58
    09.03 Reimbursable program-COGS-Printing
            and Publications................           7           7           7
    09.04 Reimbursable program-Other........           2           2           2
    09.05 Reimbursable program-Equipment-
            Procurement Services and
            Distribution....................           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         952       1,002       1,057
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         188         151         151
    22.00 New budget authority (gross)......         915       1,002       1,057
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,103       1,153       1,208
    23.95 Total new obligations.............        -952      -1,002      -1,057
    24.40 Unobligated balance carried
            forward, end of year............         151         151         151
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         862       1,002       1,057
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          53
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         915       1,002       1,057
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          32         118         118
    73.10 Total new obligations.............         952       1,002       1,057
    73.20 Total outlays (gross).............        -813      -1,002      -1,057
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -53
    74.40 Obligated balance, end of year....         118         118         118
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         813       1,002       1,057
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -862      -1,002      -1,057
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -53
    ----------------------------------------------------------------------------

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

        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 2003, Supply Fund sales are
    estimated to reach $893 million. Average inventory needed to support
    those sales will be $40 million.

        Operating results.--The Fund operated at a loss of $7.4 million in
    2000. The new total of retained earnings is $52 million. Operating
    expense as related to sales was 6 percent.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          21          23          25
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          22          24          26
    12.1  Civilian personnel benefits.......           7           8           8
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.1  Rental payments to GSA............           1           1           1

    [[Page 881]]

    23.3  Communications, utilities, and
            miscellaneous charges...........           3           3           3
    24.0  Printing and reproduction.........           7           7           7
    25.1  Advisory and assistance services..         316         331         403
    26.0  Supplies and materials............         287         308         300
    31.0  Equipment.........................         306         317         306
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         952       1,002       1,057
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         952       1,002       1,057
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         361         387         391
    ---------------------------------------------------------------------------

                                 Franchise Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         113         145         146
    09.02 Reimbursable program..............           3           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         116         149         150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6          38          44
    22.00 New budget authority (gross)......         148         155         157
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         154         193         201
    23.95 Total new obligations.............        -116        -149        -150
    24.40 Unobligated balance carried
            forward, end of year............          38          44          51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         144         152         154
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           4           3           3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         148         155         157
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          39          14          11
    73.10 Total new obligations.............         116         149         150
    73.20 Total outlays (gross).............        -137        -149        -150
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -4          -3          -3
    74.40 Obligated balance, end of year....          14          11           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         137         149         150
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -144        -152        -154
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -4          -3          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -7          -3          -4
    ---------------------------------------------------------------------------

        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, 2003, the authority under that Act for franchise
    fund pilots in agencies including VA. Established in 1997,
    administrative services included in the Franchise Fund were to be
    financed on a fee-for-service basis rather than through VA's General
    Operating Expenses appropriation. VA 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          35          42          43
    12.1  Civilian personnel benefits.......          11          13          13
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           4           4           4
    23.3  Communications, utilities, and
            miscellaneous charges...........          24          26          26
    24.0  Printing and reproduction.........           2           1           1
    25.2  Other services....................          29          59          59
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           8           1           1
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         116         149         150
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         116         149         150
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         636         740         740
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      36-247300  Contributions from military
        personnel, Veteran's Educational
        Assistance Act of 1984..............         286         192         196
      36-273330  GIF direct loans, Downward
        reestimates of subsidies............       1,420       1,795
      36-275130  Native American direct
        loans, downward reestimate of
        subsidies...........................                       2
      36-275510  Negative subsidies,
        Veterans housing benefit program....                                  98
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       1,706       1,989         294
    ---------------------------------------------------------------------------

                            Administrative Provisions

                          (including transfer of funds)

        [Sec. 101. Any appropriation for fiscal year 2002 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 [2002] 2003 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. Appropriations available to the Department of Veterans
    Affairs for fiscal year 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 2001.]
        Sec. [106] 104. Appropriations accounts available to the Department
    of Veterans Affairs for fiscal year [2002] 2003 shall be available to
    pay prior year obligations of corresponding prior year appro

    [[Page 882]]

    priations 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] 105. Notwithstanding any other provision of law, during
    fiscal year [2002] 2003, 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 [2002] 2003, 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 [2002] 2003, which is properly allocable to the
    provision of each insurance program and to the provision of any total
    disability income insurance included in such insurance program.
        Sec. [108] 106. Notwithstanding any other provision of law, the
    Department of Veterans Affairs shall continue the Franchise Fund pilot
    program authorized to be established by section 403 of Public Law 103-
    356 until October 1, [2002] 2003: Provided, That the Franchise Fund,
    established by title I of Public Law 104-204 to finance the operations
    of the Franchise Fund pilot program, shall continue until October 1,
    [2002] 2003.
        Sec. [109] 107. Amounts deducted from enhanced-use lease proceeds to
    reimburse an account for expenses incurred by that account during a
    prior fiscal year for providing enhanced-use lease services, may be
    obligated during the fiscal year in which the proceeds are received.
        Sec. [110] 108. Funds available in any Department of Veterans
    Affairs appropriation for fiscal year [2002] 2003 or funds 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 but not exceed [$28,555,000] $29,318,000
    for the Office of Resolution Management and [$2,383,000] $3,010,000 for
    the Office of Employment and Discrimination Complaint Adjudication:
    Provided, That payments may be made in advance for services to be
    furnished based on estimated costs: Provided further, That amounts
    received shall be credited to ``General operating expenses'' for use by
    the office that provided the service.
        [Sec. 111. The Secretary of Veterans Affairs shall treat the North
    Dakota Veterans Cemetery, Mandan, North Dakota, as a veterans cemetery
    owned by the State of North Dakota for purposes of making grants to
    States in expanding or improving veterans cemeteries under section 2408
    of title 38, United States Code. This section shall take effect on the
    date of enactment of this Act, and shall apply with respect to grants
    under section 2408 of title 38, United States Code, that occur on or
    after that date.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)

                          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 therefor in the budget estimates submitted for the
    appropriations: Provided, That this provision does not apply to accounts
    that do not contain an object classification for travel: Provided
    further, That this section shall not apply to travel performed by
    uncompensated officials of local boards and appeal boards of the
    Selective Service System; to travel performed directly in connection
    with care and treatment of medical beneficiaries of the Department of
    Veterans Affairs; to travel performed in connection with major disasters
    or emergencies declared or determined by the President under the
    provisions of the Robert T. Stafford Disaster Relief and Emergency
    Assistance Act; to travel performed by the Offices of Inspector General
    in connection with audits and investigations; to travel performed by the
    U.S. Consumer Product Safety Commission in connection with ligitations;
    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 therefor set forth in the
    estimates only to the extent notice of such an increase is [approved by]
    transmitted to the Committees on Appropriations.
        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 the 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 the domicile and the place
    of employment of the officer or employee, with the exception of an
    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 provided 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 may 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

    [[Page 883]]

    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 a report which] until 30 days after notice thereof is
    transmitted to the Committees on Appropriations of the Congress [approve
    within 30 days following the date on which the report is received].
        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 [2002] 2003
    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 such Act as may be necessary
    in carrying out the programs set forth in the budget for [2002] 2003 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 any other provision of law, the term
    ``qualified student loan'' with respect to national service education
    awards shall mean any loan 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 by a State agency, in
    addition to other meanings under section 148(b)(7) of the National and
    Community Service Act.
        [Sec. 421. Unless otherwise provided for in this Act or through a
    reprogramming of funds, 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
    Congress.]
        [Sec. 422. 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. 423. The Environmental Protection Agency may not use any of
    the funds appropriated or otherwise made available by this Act to
    implement the Registration Fee system codified at 40 Code of Federal
    Regulations Subpart U (sections 152.400 et seq.) if its authority to
    collect maintenance fees pursuant to FIFRA section 4(i)(5) is extended
    for at least 1 year beyond September 30, 2001.]
        Sec. [424] 421. 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] 422. 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. 423. Title 38 of the United States Code is amended by adding
    the following new section 1722B:
        ``Deductible for certain veterans who do not have a service-
    connected disability and higher incomes
        ``(a) Subject to subsection (d) of this section, the Secretary may
    not furnish care or services authorized by this chapter (other than by
    sections 1708, 1711(a), 1712A, 1712B, 1718, 1720D, 1720E) to a veteran
    eligible for care under section 1710(a)(3), unless the veteran agrees to
    pay the United States an amount determined in subsection (b) of this
    section.
        ``(b) A veteran who agrees to pay an amount under subsection (a)
    shall be liable to the United States for an amount equal to forty-five
    percent of the amount of the reasonable charges, established by the
    Secretary under section 1729(a)(1) for each specific type of care or
    service the veteran receives for which the Secretary has established a
    reasonable charge, up to a maximum of $1500 in any calendar year.
        ``(c) A veteran shall not be liable to the United States for any
    amount under subsections (f) and (g) of section 1710, and subsection (c)
    of section 1710B for care or services for which the veteran agrees to
    pay the amount determined under subsection (b).
        ``(d) Amounts collected under this section shall be deposited in the
    Department of Veterans Affairs Medical Care Collections Fund.''.
        [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 2002, HUD shall transmit this
    information to the Committees by January 8, 2002 for 30 days of review.]
        [Sec. 427. 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. 428. Section 104(n)(4) of the Cerro Grande Fire Assistance Act
    (Public Law 106-246) is amended by striking ``beginning not later than
    the expiration of the 1-year period beginning on the date of the
    enactment of this Act.'' and inserting ``within 120 days after the
    Director issues the report required by subsection (n) in 2002 and
    2003.''.]
        [Sec. 429. None of the funds provided by this Act may be used for
    the purpose of implementing any administrative proposal that would
    require military retirees to make an ``irrevocable choice'' for any
    specified period of time between Department of Veterans Affairs

    [[Page 884]]

    or military health care under the new TRICARE for Life plan authorized
    in the Floyd D. Spence National Defense Authorization Act for Fiscal
    Year 2001 (as enacted into law by Public Law 106-398).]
        [Sec. 430. None of the funds appropriated by this Act may be used to
    delay the national primary drinking water regulation for Arsenic
    published on January 22, 2001, in the Federal Register (66 Fed. Reg.
    pages 6976 through 7066, amending parts 141 through 142 of title 40 of
    the Code of Federal Regulations).]
        [Sec. 431. Subtitle B of title VI of the Robert T. Stafford Disaster
    Relief and Emergency Assistance Act (42 U.S.C. 5197-5197g) is amended by
    adding at the end the following:

    ``SEC. 629. MINORITY EMERGENCY PREPAREDNESS DEMONSTRATION PROGRAM.

        ``(a) In General.--The Director shall establish a minority emergency
    preparedness demonstration program to research and promote the capacity
    of minority communities to provide data, information, and awareness
    education by providing grants to or executing contracts or cooperative
    agreements with eligible nonprofit organizations to establish and
    conduct such programs.
        ``(b) Activities Supported.--An eligible nonprofit organization may
    use a grant, contract, or cooperative agreement awarded under this
    section--
            ``(1) to conduct research into the status of emergency
        preparedness and disaster response awareness in African American and
        Hispanic households located in urban, suburban, and rural
        communities, particularly in those States and regions most impacted
        by natural and manmade disasters and emergencies; and
            ``(2) to develop and promote awareness of emergency preparedness
        education programs within minority communities, including
        development and preparation of culturally competent educational and
        awareness materials that can be used to disseminate information to
        minority organizations and institutions.
        ``(c) Eligible Organizations.--A nonprofit organization is eligible
    to be awarded a grant, contract, or cooperative agreement under this
    section with respect to a program if the organization is a nonprofit
    organization that is described in section 501(c)(3) of the Internal
    Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and exempt from tax under
    section 501(a) of such Code, whose primary mission is to provide
    services to communities predominately populated by minority citizens,
    and that can demonstrate a partnership with a minority-owned business
    enterprise or minority business located in a HUBZone (as defined in
    section 3(p) of the Small Business Act (15 U.S.C. 632(p))) with respect
    to the program.
        ``(d) Use of Funds.--A recipient of a grant, contract, or
    cooperative agreement awarded under this section may only use the
    proceeds of the grant, contract, or agreement to--
            ``(1) acquire expert professional services necessary to conduct
        research in communities predominately populated by minority
        citizens, with a primary emphasis on African American and Hispanic
        communities;
            ``(2) develop and prepare informational materials to promote
        awareness among minority communities about emergency preparedness
        and how to protect their households and communities in advance of
        disasters;
            ``(3) establish consortia with minority national organizations,
        minority institutions of higher education, and faith-based
        institutions to disseminate information about emergency preparedness
        to minority communities; and
            ``(4) implement a joint project with a minority serving
        institution, including a part B institution (as defined in section
        322(2) of the Higher Education Act of 1965 (20 U.S.C. 1061(2))), an
        institution described in subparagraph (A), (B), or (C) of section
        326 of that Act (20 U.S.C. 1063b(e)(1)(A), (B), or (C)), and a
        Hispanic-serving institution (as defined in section 502(a)(5) of
        that Act (20 U.S.C. 1101a(a)(5))).
        ``(e) Application and Review Procedure.--To be eligible to receive a
    grant, contract, or cooperative agreement under this section, an
    organization must submit an application to the Director at such time, in
    such manner, and accompanied by such information as the Director may
    reasonably require. The Director shall establish a procedure by which to
    accept such applications.
        ``(f) Authorization of Appropriation.--There is authorized to be
    appropriated to carry out this section $1,500,000 for fiscal year 2002
    and such funds as may be necessary for fiscal years 2003 through 2007.
    Such sums shall remain available until expended.''.]
        [Sec. 432. None of the funds made available by this Act may be used
    to implement or enforce the requirement under section 12(c) of the
    United States Housing Act of 1937, as amended (42 U.S.C. 1437j(c))
    relating to community service, except with respect to any resident of a
    public housing project funded with any amounts provided under section 24
    of the United States Housing Act of 1937, as amended, or any predecessor
    program for the revitalization of severely distressed public housing
    (HOPE VI).]
        [Sec. 433. Section 1301 of title XIII of division B of H.R. 5666, as
    enacted by section 1(a)(4) of Public Law 106-554, is amended by striking
    ``facilities'' and inserting in lieu thereof ``facilities, including the
    design and construction of such facilities,''.]
        [Sec. 434. The amounts subject to the fifth proviso under the
    heading, ``Emergency Response Fund'', in Public Law 107-38, which are
    available for transfer to the Department of Housing and Urban
    Development 15 days after the Director of the Office of Management and
    Budget has submitted to the House and Senate Committees on
    Appropriations a proposed allocation and plan for use of the funds for
    the Department, may be used for purposes of ``Community Development
    Block Grants'', as authorized by title I of the Housing and Community
    Development Act of 1974, as amended: Provided, That such funds may be
    awarded to the State of New York for assistance for properties and
    businesses damaged by, and for economic revitalization related to, the
    September 11, 2001 terrorist attacks on New York City, for the affected
    area of New York City, and for reimbursement to the State and City of
    New York for expenditures incurred from the regular Community
    Development Block Grant formula allocation used to achieve these same
    purposes: Provided further, That the State of New York is authorized to
    provide such assistance to the City of New York: Provided further, That
    in administering these funds and funds under section 108 of such Act
    used for economic revitalization activities in New York City, the
    Secretary may waive, or specify alternative requirements for, any
    provision of any statute or regulation that the Secretary administers in
    connection with the obligation by the Secretary or the use by the
    recipient of these funds or guarantees (except for requirements related
    to fair housing, nondiscrimination, labor standards, and the
    environment), upon a finding that such waiver is required to facilitate
    the use of such funds or guarantees, and would not be inconsistent with
    the overall purpose of the statute or regulation: Provided further, That
    such funds shall not adversely affect the amount of any formula
    assistance received by the State of New York, New York City, or any
    categorical application for other Federal assistance: Provided further,
    That the Secretary shall publish in the Federal Register any waiver of
    any statute or regulation that the Secretary administers pursuant to
    title I of the Housing and Community Development Act of 1974, as
    amended, no later than 5 days before the effective date of such waiver:
    Provided further, That the Secretary shall notify the Committees on
    Appropriations on the proposed allocation of any funds and any related
    waivers pursuant to this section no later than 5 days before such
    allocation.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2002.)