[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.)