    [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 2006

    [[Page 893]]

                         DEPARTMENT OF VETERANS AFFAIRS

        The 2006 budget provides $30,852 million in discretionary funding
    for veterans health, benefits, and other services, including $33,440
    million in gross discretionary budget authority and $2,588 million in
    anticipated medical collections. For medical care, VA is submitting its
    2006 budget request using the three-appropriation account structure
    enacted in P.L. 108-447, the Consolidated Appropriations Act, 2005, with
    a few modifications. The medical care research support funding will be
    realigned from each of the three medical care appropriations to the
    Medical and Prosthetic Research appropriation. The benefit programs are
    separated into seven business lines--disability compensation, pension,
    education, housing, vocational rehabilitation and employment, insurance,
    and burial. The Construction, Major, Construction, Minor, and Grants for
    Construction of State Veterans Cemeteries, the Grants for Construction
    of State Extended Care appropriations will be realigned under the
    corresponding appropriations. This modified budget account structure
    will better position VA to more readily determine the full cost of each
    of our programs. This will allow the Department to more effectively
    evaluate the program results we achieve with the total resources
    associated with each program.

                                MEDICAL PROGRAMS

                                  Federal Funds

    General and special funds:

                                Medical Services

                          (including transfer of funds)

        For necessary expenses for furnishing, as authorized by law,
    inpatient and outpatient care and treatment to beneficiaries of the
    Department of Veterans Affairs and veterans described in paragraphs (1)
    through (8) of section 1705(a) of title 38, United States Code,
    including care and treatment in facilities not under the jurisdiction of
    the [department] Department, and including medical supplies and
    equipment and salaries and expenses of health-care employees hired under
    title 38, United States Code, and aid to State homes as authorized by
    section 1741 of title 38, United States Code; [$19,472,777,000]
    $19,789,141,000, plus reimbursements: Provided, That of the funds made
    available under this heading, not to exceed $1,100,000,000 shall be
    available until September 30, [2006: Provided further, That,
    notwithstanding any other provision of law, the Secretary of Veterans
    Affairs shall establish a priority for treatment for veterans who are
    service-connected disabled, lower income, or have special needs:
    Provided further, That, notwithstanding any other provision of law, the
    Secretary of Veterans Affairs shall give priority funding for the
    provision of basic medical benefits to veterans in enrollment priority
    groups 1 through 6: Provided further, That of the funds made available
    under this heading, the Secretary may transfer up to $400,000,000, to
    remain available until expended, to ``Construction, major projects'' for
    purposes of implementing CARES subject to a determination by the
    Secretary that such funds will improve access and quality of veteran's
    health care needs: Provided further, That, during the fiscal year ending
    September 30, 2005, the Secretary may transfer not more than
    $125,000,000 of the unobligated balances in this account and amounts
    made available under this heading to ``General operating expenses'' for
    costs associated with processing claims where the basis of the
    entitlement is claimed disability incurred as a result of a veteran's
    service, subject to a determination by the Secretary of Veterans Affairs
    that such additional funds are necessary: Provided further, That,
    notwithstanding any other provision of law, the Secretary of Veterans
    Affairs may authorize the dispensing of prescription drugs from Veterans
    Health Administration facilities to enrolled veterans with privately
    written prescriptions based on requirements established by the
    Secretary: Provided further, That the implementation of the program
    described in the previous proviso shall incur no additional cost to the
    Department of Veterans Affairs] 2007: Provided further, That [for] the
    DOD VA Health Care Sharing Incentive Fund, as authorized by section 721
    of Public Law 107-314, [a minimum of] shall transfer not less than
    $15,000,000, to remain available until expended, for [any purpose] the
    purposes authorized by 38 U.S.C. 8111. In addition, such sums as may be
    deposited to the Medical Care Collections Fund pursuant to 38 U.S.C.
    1729A (except any sums in Enrollment Fee, and the Pharmaceutical
    Copayments, Increase from PL 7/8 subaccounts of such Fund) may be
    transferred to ``Medical services'', 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, 2005.)
        [For an additional amount for ``Medical services'' for expenses
    related to recent natural disasters in the Southeast, $38,283,000, to
    remain available until September 30, 2005: Provided, That the amounts
    provided herein are designated as an emergency requirement pursuant to
    section 402 of S. Con. Res. 95 (108th Congress), as made applicable to
    the House of Representatives by H. Res. 649 (108th Congress) and
    applicable to the Senate by section 14007 of Public Law 108-287.]
    (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         115         153         137
        Receipts:
    02.20 First party collections, MCCF.....         114         131         166
    02.21 Third party collections, MCCF.....         960       1,018       1,175
    02.23 Enhanced-use lease proceeds,
            veterans health services
            improvemen......................                      29           1
    02.25 Compensated work therapy, MCCF....                      41          44
    02.26 MCCF, Long-term care copayments...                       7           1
    02.27 Parking fees, MCCF................                       4           4
    02.28 Pharmaceutical copayments, MCCF...         623         722         773
    02.29 Enrollment fee, MCCF--Legislative
            proposal, subject to PAYGO......                                 248
    02.30 Pharmaceutical copayments,
            increase from PL 7/8--
            Legislative proposal subject to
            PAYGO...........................                                 176
    02.40 Payments from compensation and
            pension, MCCF...................                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       1,697       1,953       2,589
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,812       2,106       2,726
        Appropriations:
    05.00 Medical care......................      -1,659      -1,969      -2,164
    05.01 Enrollment fee, MCCF--Legislative
            proposal, not subject to PAYGO..                                -248
    05.02 Pharmaceutical copayments,
            increase from PL 7/8--
            Legislative proposal not subject
            to PAYGO........................                                -176
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -1,659      -1,969      -2,588
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         153         137         138
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Acute hospital care...............       4,791       5,323       5,155
    00.02 Rehabilitative care...............         297         301         303
    00.03 Psychiatric care..................         722         765       1,000
    00.04 Nursing home care.................       1,776       1,761       1,414
    00.05 Subacute care.....................         133         117          96
    00.06 Residential care..................         160         188         208
    00.07 Outpatient care...................      11,229      11,878      12,418
    00.08 Miscellaneous benefits and
            services........................         510         539         564
    00.09 CHAMPVA...........................         437         515         627
                                               ---------   ---------  ----------
    00.91   Total operating expenses........      20,055      21,387      21,785
    01.01 Acute hospital care...............         127         111         129
    01.02 Rehabilitative care...............          15          14          15

    [[Page 894]]

    01.03 Psychiatric care..................          45          41          46
    01.04 Nursing home care.................          56          50          46
    01.05 Subacute care.....................          10           9          15
    01.06 Residential care..................          15          14          10
    01.07 Outpatient care...................         212         190         227
    01.08 Miscellaneous benefits and
            services........................          25          23          26
                                               ---------   ---------  ----------
    01.91   Total capital investment........         505         452         514
                                               ---------   ---------  ----------
    02.93   Total direct program............      20,560      21,839      22,299
    09.01 Reimbursable program..............         282         172         179
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      20,842      22,011      22,478
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         820         619         369
    22.00 New budget authority (gross)......      20,394      21,788      22,132
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         270
    22.21 Unobligated balance transferred to
            other accounts..................          -1         -27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      21,483      22,380      22,501
    23.95 Total new obligations.............     -20,842     -22,011     -22,478
    23.98 Unobligated balance expiring or
            withdrawn.......................         -22
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         619         369          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      17,309      19,272      19,789
    40.20   Appropriation (special fund)....       1,659       1,969       2,164
    40.35   Appropriation permanently
              reduced (P.L. 108-199)........        -104
    40.35   Appropriation permanently
              reduced (P.L. 108-447)........                    -154
    40.35   Appropriation permanently
              reduced (P.L. 108-447)........                     -16
    41.00   Transferred to other accounts...        -415        -140
    42.00   Transferred from other accounts.       1,663         685
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      20,112      21,616      21,953
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         227         172         179
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          14
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         241         172         179
          Mandatory:

    69.00   Offsetting collections (cash)...          41
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      20,394      21,788      22,132
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,448       2,145       3,569
    73.10 Total new obligations.............      20,842      22,011      22,478
    73.20 Total outlays (gross).............     -21,872     -20,587     -21,825
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................        -270
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -14
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          14
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,145       3,569       4,222
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      18,112      18,537      18,770
    86.93 Outlays from discretionary
            balances........................       3,720       2,050       3,055
    86.97 Outlays from new mandatory
            authority.......................          40
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      21,872      20,587      21,825
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -123         -91         -95
    88.40     Non-Federal sources...........        -159         -81         -84
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -282        -172        -179
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -14
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      20,112      21,616      21,953
    90.00 Outlays...........................      21,590      20,415      21,646
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................      20,112      21,616      21,953
      Outlays...........................      21,590      20,415      21,646
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 424
      Outlays...........................                                 199
                                        ------------------------------------
    Total:
      Budget Authority..................      20,112      21,616      22,377
      Outlays...........................      21,590      20,415      21,845
                                        ====================================

        For 2006, the budget requests total resources for the VA Medical
    Services appropriation of $22.4 billion, an increase of $659 million
    ($25 million in appropriation and $635 million in collections) over the
    2005 level. This includes $19.8 billion in appropriated budget authority
    and $2.6 billion to be collected in the Medical Care Collections Fund.

        The budget request also includes a comprehensive set of legislative
    and regulatory proposals that will continue to concentrate VA's health
    care resources to meet the needs of our highest priority core veterans--
    those with service-connected conditions, those with lower incomes, and
    veterans with special health care needs. These proposals are discussed
    in the Medical Services legislative proposal section.

        Medical Services.--Provides for a comprehensive, integrated health
    care delivery system that addresses the needs of eligible veterans and
    beneficiaries (except non-service-connected veterans and veterans
    exceeding the income threshold) in VA medical centers, outpatient clinic
    facilities, contract hospitals, State homes, and outpatient programs on
    a fee basis. Hospital and outpatient care is also provided by the
    private sector for certain dependents and survivors of veterans under
    the Civilian Health and Medical Programs for the Department of Veterans
    Affairs (CHAMPVA).

        Medical Care Collections Fund (MCCF).--VA estimates collections of
    more than $2.6 billion, representing 8-percent of available resources.
    VA has the authority to collect inpatient and outpatient co-payments,
    medication co-payments, and nursing home co-payments; authority for
    certain income verification; authority to recover third-party insurance
    payments from veterans for nonservice-connected conditions; and
    authority to collect revenue from enhanced use leases. Public Law 108-
    199, the Consolidated Appropriations Act, 2004, also requires revenue
    from the following accounts to be deposited into the MCCF beginning in
    FY 2004.
            (1) Long-Term Care Co-payments (formerly Veterans Extended
        Revolving Fund).--Long-term co-payments of $97 a day are collected
        from non-service connected veterans receiving extended care services
        such as geriatric evaluation; nursing home care; domiciliary
        services; adult day health care; other noninstitutional alternatives
        to nursing home care; and respite care.
            (2) Compensated Work Therapy Program (formerly Special
        Therapeutic and Rehabilitation Activities Fund).--These funds are
        derived from actual work performed by patients and members in VA
        health care facilities under contracts developed with private
        industry, non-profit organizations, and state and federal entities
        and are used to support the program. This program provides a
        transition-working environment for veterans living in community
        assisted living

    [[Page 895]]

        arrangements under VA psychiatric care to help them become self-
        sufficient.
            (3) Compensation and Pension Living Expenses Program (formerly
        Medical Facilities Revolving Fund).--Veterans who do not have either
        a spouse or child may have their monthly pension payments reduced to
        $90. The difference between the veteran's regular monthly pension
        payment and the $90 is transferred from the Compensation and Pension
        account to the Compensation and Pension Living Expenses Program.
            (4) Parking Program (formerly Parking Revolving Fund).--VA
        collects parking fees for the use of parking facilities at VA
        facilities.

                                    WORKLOAD

        Provision of Veterans Health Care--
            Acute hospital care.--Costs for 2006 are estimated to decrease
        by $150 million for operating medical, neurological, surgical,
        contract and State home hospital beds.
            Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................     496,150     508,631     521,966
      Average daily census..............       8,591       8,610       8,660
      Average employment................      35,619      35,836      35,323

            Rehabilitative care.--An increase of $3 million in 2006 is
        estimated for the provision of rehabilitative care, including spinal
        cord injury care.
            Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................      15,280      15,491      15,588
      Average daily census..............       1,215       1,210       1,210
      Average employment................       3,259       3,422       3,593

            Psychiatric care.--An increase of $240 million is estimated in
        2006 for the inpatient care of veterans with problems related to
        mental illness, including alcohol and drug problems.
            Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................     110,925     110,925     130,634
      Average daily census..............       4,519       4,519       5,332
      Average employment................       7,881       7,881       8,508

            Nursing home care.--In 2006, a decrease of $351 million is
        estimated for the care of residents in VA nursing homes, contract
        nursing homes and State nursing homes.
            Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................      93,271      89,961      61,110
      Average daily census..............      33,984      34,302      21,189
      Average employment................      14,499      14,499      11,200

            Noninstitutional extended care.--Included in outpatient
        estimates in 2006 is an increase of $61 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:
                                         2004 actual  2005 est.   2006 est.
      Average daily census..............      25,523      30,118      35,540

            Subacute care.--A decrease of $15 million is estimated in 2006
        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:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................      14,676      13,942      13,384
      Average daily census..............         488         463         445
      Average employment................       1,518       1,245       1,021

            Residential care.--An increase of $16 million is estimated in
        2006 for the care of veterans in locations other than their own
        homes, such as domiciliary care programs.
            Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Patients treated..................      30,217      29,701      29,081
      Average daily census..............      11,083      11,142      11,075
      Average employment................       1,558       1,589       1,621

            Outpatient care.--An increase of $523 million is estimated in
        2006 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

                                         2004 actual  2005 est.   2006 est.
      Medical visits (in thousands):
      Staff visits......................      49,966      52,817      55,857
      Fee visits........................       3,779       4,170       4,623
      Readjustment counseling...........       1,031       1,050       1,075
                                        ------------------------------------
            Total.......................      54,776      58,037      61,555
                                        ====================================
      Dental:
        Staff:
          Examinations..................     530,293     550,000     570,000
          Treatments....................     158,214     165,000     172,000
                                        ------------------------------------
            Total.......................     688,507     715,000     742,000
                                        ====================================
        Fee: Cases completed............      22,589      29,000      36,000
                                        ====================================
      Average employment................      61,901      65,275      65,809
                                        ====================================

            Miscellaneous benefits and services.--An increase of $28 million
        is estimated in 2006 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.

                                         2004 actual  2005 est.   2006 est.
      Average employment................       2,797       2,797       2,797

            Civilian health and medical program of the Department of
        Veterans Affairs (CHAMPVA).--An increase of $112 million is
        estimated in 2006 for private hospital and outpatient care for
        dependents and survivors of certain veterans.

        Estimated operating levels are:

                                         2004 actual  2005 est.   2006 est.
      Average daily hospital census.....         210         228         249
      Outpatient (in thousands).........       4,503       5,554       6,659

                              PERFORMANCE MEASURES

            Provide High Quality Health Care.--Use of clinical practice
        guidelines in treating patients 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. VHA's strategy to monitor
        satisfaction through patient surveys will identify areas of
        improvement in all medical services.

                                         2004 actual  2005 est.   2006 est.
      Clinical Practice Guidelines Index         77%         77%         77%
      Prevention Index II...............         88%         88%         88%
      Percent of patients rating VA
        health care service as very good
        or excellent:...................
        Inpatient.......................         74%         74%         74%
        Outpatient......................         72%         73%         73%

            Access to Medical Care.--VA's strategy is to improve access and
        timeliness of service by reducing waiting times in specialty and
        primary care clinics in medical centers nationwide, and by relying
        more extensively on non-institutional forms of long-term care.

                                         2004 actual  2005 est.   2006 est.
      Percentage of primary care
        appointments scheduled within 30
        days of desired date............         94%         94%         94%
      Percentage of specialty care
        appointments scheduled within 30
        days of desired date............         93%         93%         93%

    [[Page 896]]

      Increase non-institutional long-
        term care as expressed by
        average daily census............      25,523      30,118      35,540

            VA DoD Sharing.--VA's strategy is to improve collaboration and
        exchange with DoD.

                                         2004 actual  2005 est.   2006 est.
      Documented increases in the use of
        joint procurement contracts.....          NA          NA       $150M
      Develop implementation guides for
        consolidated health informatics
        standards adopted by VA and DoD.          NA          NA     2 of 9
                                                                   standards

            Revenue Cycle Improvement.--VHA is seeking to improve its
        performance in the area of medical care collections. The revenue
        cycle improvement plan includes initiatives that will improve
        efficiency and accuracy.
                                         2004 actual  2005 est.   2006 est.
      Ratio of collections to billings..         41%         41%         41%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       7,155       7,740       7,652
    11.3      Other than full-time permanent         163         127         125
    11.5      Other personnel compensation..         813         883         872
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       8,131       8,750       8,649
    12.1    Civilian personnel benefits.....       2,158       2,241       2,215
    13.0    Benefits for former personnel...                       5           5
    21.0    Employee travel.................          21          22          24
    21.0    Beneficiary travel..............         170         170         167
    21.0    Interagency motor pool payments.           1          19          22
    21.0    All other.......................          39          22          20
    22.0    Transportation of things........          12          13          13
    23.2    Rental payments to others.......           5
    23.3    Communications, utilities, and
              miscellaneous charges.........         110         112         113
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other contractual services......       1,696       1,631       1,587
    25.6    Outpatient dental fees..........          25          34          43
    25.6    Medical and nursing fees........         710         738         751
    25.6    Community nursing homes.........         277         314         312
    25.6    Contract hospitalization........         494         499         545
    25.6    Civilian Health and Medical
              Program of the Department of
              Veterans Affairs (CHAMPVA)....         437         515         627
    26.0    Medical supplies and materials..       5,302       5,809       6,436
    31.0    Equipment.......................         499         449         502
    32.0    Medical land and structures.....           6           2           3
    41.0    Medical grants, subsidies, and
              contributions.................         439         493         264
    41.0    Medical grants to private
              organizations.................          27
                                               ---------   ---------  ----------
    99.0      Direct obligations............      20,560      21,839      22,299
    99.0  Reimbursable obligations..........         282         172         179
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      20,842      22,011      22,478
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................     127,313     130,753     125,497
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,719       1,791       1,865
    ---------------------------------------------------------------------------

                                Medical Services

                  (Legislative proposal, not subject to PAYGO)

        Such sums as may be deposited to the Enrollment Fee, and the
    Pharmaceutical Copayments, Increase from PL 7/8 subaccounts of the
    Medical Care Collections Fund may be transferred to ``Medical
    Services,'' to remain available until expended for the purposes of this
    account.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-2-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Health care for veterans..........                                 424
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 424
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 424
    23.95 Total new obligations.............                                -424
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Enrollment fee, MCCF--
              Legislative proposal not
              subject to PAYGO..............                                 248
    40.20   Pharmaceutical copayments,
              increase from PL 7/8--
              Legislative proposal not
              subject to PAYGO..............                                 176
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                 424
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                 424
    73.20 Total outlays (gross).............                                -199
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 225
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 199
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 424
    90.00 Outlays...........................                                 199
    ---------------------------------------------------------------------------

        Legislation will be proposed to allow the Department of Veterans
    Affairs to collect two user fees from priority level 7 and 8 (PL7/8)
    veterans. The agency will be able to use the fees to the extent provided
    in appropriations acts.

        The first user fee proposal will establish an annual enrollment fee
    of $250, and the second will increase pharmacy copayments from $7 to $15
    for a 30 day supply of drugs. Both of these user fees will be charged to
    PL 7/8 veterans only. These proposals will continue to concentrate VA's
    health care resources to meet the needs of our highest priority core
    veterans--those with service-connected conditions, lower incomes, and
    special health care needs.

        The Administration proposes to offset these fees against
    discretionary beginning in 2007. Discretionary totals in those years
    will be reduced by these fees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-2-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                 154
    11.3    Other than full-time permanent..                                   3
    11.5    Other personnel compensation....                                  18
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                 175
    12.1  Civilian personnel benefits.......                                  45
    21.0  Beneficiary travel................                                   3
    23.3  Communications, utilities, and
            miscellaneous charges...........                                   2
    25.2  Other contractual services........                                  32
    25.6  Medical and nursing fees..........                                  15
    25.6  Community nursing homes...........                                   6
    25.6  Contract hospitalization..........                                  10
    26.0  Medical supplies and materials....                                 127
    31.0  Equipment.........................                                   9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 424
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0160-2-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                               2,510
    ---------------------------------------------------------------------------

    [[Page 897]]

                    DOD-VA Health Care Sharing Incentive Fund

                          (including transfer of funds)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0165-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                      17          30
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                      17          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      30          43
    22.00 New budget authority (gross)......          30          30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          60          43
    23.95 Total new obligations.............                     -17         -30
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          30          43          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.          30          30
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          30          30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   1
    73.10 Total new obligations.............                      17          30
    73.20 Total outlays (gross).............                     -16         -15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       1          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                      16          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          30
    90.00 Outlays...........................                      16          15
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0165-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                       4           6
    25.1  Advisory and assistance services..                       8          13
    26.0  Supplies and materials............                       1           3
    31.0  Equipment.........................                       3           6
    32.0  Land and structures...............                       1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                      17          30
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0165-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                      50          75
    ---------------------------------------------------------------------------

        The purpose of the fund is to enable the Departments to carry out a
    program to identify and provide incentives to implement creative sharing
    initiatives at the facility, intra-regional and nationwide levels. The
    Departments have established the fund and developed processes and
    criteria to solicit and select projects. Section 721 of the FY 2003
    National Defense Authorization Act, Public Law 107-314, established the
    fund and requires VA and Department of Defense (DoD) to establish a
    joint incentive program. Each Secretary shall annually contribute a
    minimum of $15 million to the fund.

                             Medical Administration

                          (including transfer of funds)

        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; information technology hardware and software;
    uniforms or allowances therefor, as authorized by sections 5901-5902 of
    title 5, United States Code; administrative and legal expenses of the
    department for collecting and recovering amounts owed the department as
    authorized under chapter 17 of title 38, United States Code, Federal
    Medical Care Recovery Act (42 U.S.C. 2651 et seq.); and such sums as
    necessary to fund cost comparison studies as referred to in 38 U.S.C.
    8110(a)(5); [$4,705,000,000] $4,439,124,000, of which $250,000,000 shall
    be available until September 30, 2007, plus reimbursements.
        [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; information technology hardware and software;
    uniforms or allowances therefor, as authorized by sections 5901-5902 of
    title 5, United States Code; and administrative and legal expenses of
    the department for collecting and recovering amounts owed the department
    as authorized under chapter 17 of title 38, United States Code, and the
    Federal Medical Care Recovery Act (42 U.S.C. 2651 et seq.);
    $4,705,000,000, of which $250,000,000 shall be available until September
    30, 2006, plus reimbursements.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2005.)
        [For an additional amount for ``Medical administration'' for
    expenses related to recent natural disasters in the Southeast,
    $1,940,000, to remain available until September 30, 2005: Provided, That
    the amounts provided herein are designated as an emergency requirement
    pursuant to section 402 of S. Con. Res. 95 (108th Congress), as made
    applicable to the House of Representatives by H. Res. 649 (108th
    Congress) and applicable to the Senate by section 14007 of Public Law
    108-287.] (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
              Provision of veterans health
                  care:
    00.01       Acute hospital care.........         737         735         753
    00.02       Rehabilitative care.........          25          24          25
    00.03       Psychiatric care............         226         226         232
    00.04       Nursing home care...........         232         224         225
    00.05       Subacute care...............          43          31          22
    00.06       Residential care............          48          48          49
    00.07       Outpatient care.............       1,140       1,431       1,457
    00.08       Miscellaneous benefits and
                  services..................       1,165       1,210       1,259
    00.09       CHAMPVA.....................          30          40          45
                                               ---------   ---------  ----------
    00.91       Total operating expenses....       3,646       3,969       4,067
            Capital investment:
              Provision of veterans health
                  care:
    01.01       Acute hospital care.........          88         103          99
    01.02       Rehabilitative care.........          10          12          12
    01.03       Psychiatric care............          31          37          36
    01.04       Nursing home care...........          38          45          44
    01.05       Subacute care...............           7           8           8
    01.06       Residential care............          10          12          12
    01.07       Outpatient care.............         146         172         167
    01.08       Miscellaneous benefits and
                  services..................          17          20          20
    01.09       CHAMPVA.....................           3           4           4
                                               ---------   ---------  ----------
    01.91       Total capital investment....         350         413         402
                                               ---------   ---------  ----------
    02.93   Total direct program............       3,996       4,382       4,469
    09.01 Reimbursable program..............          23          25          26
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,019       4,407       4,495
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3          33          30
    22.00 New budget authority (gross)......       4,050       4,404       4,465
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,053       4,437       4,495
    23.95 Total new obligations.............      -4,019      -4,407      -4,495
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          33          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,932       4,648       4,439
    40.35   Appropriation permanently
              reduced (P.L. 108-199)........         -30

    [[Page 898]]

    40.35   Appropriation permanently
              reduced (P.L. 108-447)........                     -37
    41.00   Transferred to other accounts...        -875        -232
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,027       4,379       4,439
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          16          25          26
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           7
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          23          25          26
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,050       4,404       4,465
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13         657       1,270
    73.10 Total new obligations.............       4,019       4,407       4,495
    73.20 Total outlays (gross).............      -3,367      -3,794      -4,379
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         657       1,270       1,386
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,358       3,623       3,705
    86.93 Outlays from discretionary
            balances........................           9         171         674
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,367       3,794       4,379
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15         -23         -24
    88.40     Non-Federal sources...........          -1          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -16         -25         -26
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,027       4,379       4,439
    90.00 Outlays...........................       3,351       3,769       4,353
    ---------------------------------------------------------------------------

        For 2006, the budget requests total resources for the VA Medical
    Administration appropriation of $4.4 billion, an increase of $62 million
    over the 2005 level.

        The Medical Administration appropriation finances the expenses of
    management, security, and administration of the VA health care system
    through the operation of VA medical centers, other facilities, Veterans
    Integrated Service Networks offices and facility director offices, chief
    of staff operations, quality of care oversight, all information
    technology hardware and software, legal services, billing and coding
    activities, procurement, financial management, and human resource
    management. This appropriation also finances the National Program
    Administration, VHA headquarters, which provides corporate leadership
    and support to VA's comprehensive and integrated health care system with
    a Headquarters' staff that includes a capital facilities management and
    development process.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       1,585       1,797       1,856
    11.3      Other than full-time permanent          36          29          30
    11.5      Other personnel compensation..         180         205         211
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       1,801       2,031       2,097
    12.1    Civilian personnel benefits.....         539         520         538
    13.0    Benefits for former personnel...           8           1           1
    21.0    Employee travel.................          33          35          36
    21.0    All other.......................           1
    22.0    Transportation of things........          19          19          20
    23.3    Communications, utilities, and
              miscellaneous charges.........         199         204         212
    24.0    Printing and reproduction.......          10          11          11
    25.2    Other contractual services......         927       1,002         999
    25.6    Medical and nursing fees........           5
    26.0    Medical supplies and materials..          86         137         141
    26.0    Provisions......................           6
    31.0    Equipment.......................         340         395         393
    32.0    Medical land and structures.....          10          14           9
    43.0    Interest and dividends..........          12          13          13
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,996       4,382       4,470
    99.0  Reimbursable obligations..........          23          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,019       4,407       4,495
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      33,326      34,008      33,997
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         245         265         276
    ---------------------------------------------------------------------------

                               Medical Facilities

                         [(including transfer of funds)]

        For necessary expenses for the maintenance and operation of
    hospitals, nursing homes, and domiciliary facilities and other necessary
    facilities for the Veterans Health Administration; for 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; for
    oversight, engineering and architectural activities not charged to
    project costs; for 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; for leases of
    facilities; and for laundry and food services, [$3,745,000,000]
    $3,888,469,000, of which $250,000,000 shall be available until September
    30, [2006] 2007: Provided, That $699,800,000, to remain available until
    expended, shall be for implementation of the Capital Asset Realignment
    for Enhanced Services activities. In addition, That such sums as may be
    deposited to the Department of Veterans Affairs Capital Asset Fund
    pursuant to 38 U.S.C. 8118 may be transferred to ``Medical facilities'',
    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, 2005.)
        [For an additional amount for ``Medical facilities'' for expenses
    related to recent natural disasters, $46,909,000, to remain available
    until September 30, 2006: Provided, That the amounts provided herein are
    designated as an emergency requirement pursuant to section 402 of S.
    Con. Res. 95 (108th Congress), as made applicable to the House of
    Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
              Provision of veterans health
                  care:
    00.01       Acute hospital care.........         782         898         929
    00.02       Rehabilitative care.........          77          84          88
    00.03       Psychiatric care............         339         370         389
    00.04       Nursing home care...........         462         463         365

    [[Page 899]]

    00.05       Subacute care...............          59          55          47
    00.06       Residential care............         125         133         137
    00.07       Outpatient care.............         649         679         670
    00.08       Miscellaneous benefits and
                  services..................         103         110         110
    00.09       CHAMPVA.....................           2           3           3
    00.10       Construction, major projects           3          29          37
    00.11       Construction, minor projects          31          35          24
                                               ---------   ---------  ----------
    00.91       Total operating expenses....       2,632       2,859       2,799
            Capital investment:
              Provision of veterans health
                  care:
    01.01       Acute hospital care.........         106         106         133
    01.02       Rehabilitative care.........          13          13          16
    01.03       Psychiatric care............          39          38          48
    01.04       Nursing home care...........          47          46          59
    01.05       Subacute care...............           9           8          11
    01.06       Residential care............          13          13          16
    01.07       Outpatient care.............         180         178         224
    01.08       Miscellaneous benefits and
                  services..................          21          21          27
    01.10       Construction, major projects         129         396         498
    01.11       Construction, minor projects         171         211         141
                                               ---------   ---------  ----------
    01.91       Total capital investment....         728       1,030       1,173
          Grant Program:

    02.01   Grants to States................         147         114          12
                                               ---------   ---------  ----------
    02.93     Total direct program..........       3,507       4,003       3,984
    09.01 Reimbursable program..............          11          13          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,518       4,016       3,998
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         438         936         923
    22.00 New budget authority (gross)......       4,015       3,976       3,902
    22.22 Unobligated balance transferred
            from other accounts.............           1          27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,454       4,939       4,825
    23.95 Total new obligations.............      -3,518      -4,016      -3,998
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         936         923         827
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,419       4,428       3,888
    40.35   Appropriation permanently
              reduced (P.L. 108-199)........         -27
    40.35   Appropriation permanently
              reduced (P.L. 108-XXX)........                     -35
    41.00   Transferred to other accounts...        -788        -452
    42.00   Transferred from other accounts.         400
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,004       3,941       3,888
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          11          35          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,015       3,976       3,902
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         497       1,316       1,758
    73.10 Total new obligations.............       3,518       4,016       3,998
    73.20 Total outlays (gross).............      -2,699      -3,574      -3,712
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,316       1,758       2,044
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,397       2,860       2,841
    86.93 Outlays from discretionary
            balances........................         302         714         871
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,699       3,574       3,712
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4          -5          -5
    88.40     Non-Federal sources...........          -7         -30          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -11         -35         -14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,004       3,941       3,888
    90.00 Outlays...........................       2,688       3,539       3,698
    ---------------------------------------------------------------------------

        For 2006, the budget requests total resources for the VA Medical
    Facilities appropriation of $3.9 billion, an increase of $30.2 million
    over the 2005 level.

        The Medical Facilities appropriation finances the operations,
    maintenance, construction, and alteration of the VA health care systems'
    vast capital infrastructure.

        Medical Facilities.--Provides for the operations and maintenance of
    the capital infrastructure required to provide health care to the
    Nation's veterans. These costs include utilities, engineering, capital
    planning, leases, laundry and food services, grounds maintenance, trash
    removal, housekeeping, fire protection, pest management, facility
    repair, and property disposition and acquisition. The capital investment
    accounts necessary to ensure VA's infrastructure is adequate to support
    the delivery of quality health care are within the Medical Facilities
    appropriation. These capital investment programs finance the following
    activities:
            (1) Major Construction.--Provides for constructing, altering,
        extending, and improving any VA facility for the provision of
        health-care services. This includes planning, architectural and
        engineering services, Capital Asset Realignment for Enhanced
        Services (CARES) activities, assessments, and site acquisition where
        the estimated cost of a project is $7,000,000 or more for major
        construction.
            (2) Minor Construction.--Provides for constructing, altering,
        extending, and improving any VA facility for the provision of
        health-care services. This includes planning, architectural and
        engineering services, Capital Asset Realignment for Enhanced
        Services (CARES) activities, assessments, and site acquisition where
        the estimated cost of a project is less than $7,000,000 for minor
        construction.
            (3) Grants for Construction of State Extended Care Facilities.--
        Provides 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. VA intends to complete
        a nationwide infrastructure assessment study for institutional long-
        term care, an area that was not included in the recent study of
        medical care facility needs (CARES). The 2006 budget temporarily
        halts grants to fund construction of new state extended care
        facilities to ensure that future construction aligns with the
        conclusions of the study.
            (4) Department of Veterans Affairs Capital Asset Fund.--Provides
        for costs associated with the transfer and future transfers of real
        property; enhancing medical care services to veterans by improving
        patient care facilities through construction projects; and transfer,
        lease, or adaptive use of a National Register of Historic Places
        properties. Receipts to this account will be realized from the
        transfer of real property in accordance with P.L. 108-422.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         989       1,107       1,137
    11.3      Other than full-time permanent          22          18          19
    11.5      Other personnel compensation..         112         126         129
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       1,123       1,251       1,285
    12.1    Civilian personnel benefits.....         320         321         329
    13.0    Benefits for former personnel...                       1           1
    21.0    Employee travel.................           4           6           6
    21.0    All other.......................          18          19          19
    22.0    Transportation of things........          13          13          13
    23.1    Rental payments to GSA..........          14          16          16
    23.2    Rental payments to others.......          87          98         104
    23.3    Communications, utilities, and
              miscellaneous charges.........         360         369         385
    25.2    Other contractual services......         388         396         284
    25.2    Other construction services.....          32          57          54
    25.6    Medical and nursing fees........           1
    26.0    Medical supplies and materials..         192         208         219
    26.0    Provisions......................          79          81          83
    31.0    Equipment.......................          81          84         164
    32.0    Medical land and structures.....         347         361         370
    32.0    Construction, major projects,
              land and structures...........         129         396         498
    32.0    Construction, minor projects,
              land and structures...........         171         211         141
    41.0    Grants for construction of State
              extended care facilities......         147         114          12

    [[Page 900]]

    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,507       4,003       3,984
    99.0  Reimbursable obligations..........          11          13          14
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,518       4,016       3,998
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      28,023      27,006      25,931
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         118         138         148
    ---------------------------------------------------------------------------

                         Medical and Prosthetic Research

        For necessary expenses in carrying out programs of medical and
    prosthetic research and development as authorized by chapter 73 of title
    38, United States Code, to remain available until September 30, [2006,
    $405,593,000] 2007, $786,000,000, plus reimbursements. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
    00.01     Bio-medical laboratory science
                research....................         434         405         403
    00.02     Rehabilitation research.......          93          87          87
    00.03     Health services research......         123         116         115
    00.04     Clinical science research.....         129         122         121
                                               ---------   ---------  ----------
    00.91       Total operating expenses....         779         730         726
            Capital investment:
    01.01     Bio-medical laboratory science
                research....................          52          49          49
    01.02     Rehabilitation research.......          12          12          12
    01.03     Health services research......           5           5           5
    01.04     Clinical science research.....           8           7           7
                                               ---------   ---------  ----------
    01.91       Total capital investment....          77          73          73
                                               ---------   ---------  ----------
    01.92     Total direct program..........         856         803         799
    09.01 Reimbursable program..............          41          50          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         897         853         849
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          47          57          38
    22.00 New budget authority (gross)......         909         834         836
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         956         891         874
    23.95 Total new obligations.............        -897        -853        -849
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          57          38          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         868         790         786
    40.35   Appropriation permanently
              reduced.......................          -2          -6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         866         784         786
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          43          50          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         909         834         836
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         123         124         134
    73.10 Total new obligations.............         897         853         849
    73.20 Total outlays (gross).............        -894        -843        -827
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         124         134         156
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         787         705         710
    86.93 Outlays from discretionary
            balances........................         107         138         117
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         894         843         827
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -32         -38         -38
    88.40     Non-Federal sources...........         -11         -12         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -43         -50         -50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         866         784         786
    90.00 Outlays...........................         850         793         777
    ---------------------------------------------------------------------------

        For 2006, the total budgetary resources of $1.7 billion remain
    essentially unchanged. These resources are comprised of direct
    appropriations of $786 million and federal and private sector grants of
    $866 million, which represents 52 percent of the total resources.

        The 2006 budget request reflects a new account structure that will
    better position VA to more readily determine the full cost of a
    comprehensive research program leading the Nation's efforts to promote
    the health care of veterans. The Medical and Prosthetic Research
    Business Line includes the consolidation of what was the Medical and
    Prosthetic Research appropriation and the medical care research support
    funding formerly appropriated in the Medical Care appropriation.

        This 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 and the medical
    care research support required for these programs:

        Bio-medical Laboratory Research and Development Service.--This
    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 and Development Service.--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 and Development Service.--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 prac

    [[Page 901]]

    tices for all veteran patients. Particular contributions are made in the
    areas of aging, substance abuse, health systems, and special
    populations.

        Clinical Science Research and Development Service.--Clinical Science
    Research will encompass interventional and observational studies in
    humans, including pharmacological and surgical studies.

        Medical Research Support.--Provides the indirect costs of the VA
    Research and Development program which includes such costs as the
    facility utility costs associated with laboratory space; administrative
    costs of human resources support, fiscal service, and supply service
    attributable to research; research's portions of a medical center's
    hazardous waste disposal and nuclear medicine licenses; and, most
    importantly, the funding for the time clinicians devote to their
    research activities.

        VA's Medical and Prosthetic Research programs are included in the
    Federal Science & Technology (FS&T) budget.

        Focus on Training Clinical Researchers.--The objective of the Career
    Development program is to train an appropriate number of VA clinicians
    who can conduct research in areas of high relevance to the health care
    of veterans.

                              PERFORMANCE MEASURES

        The VA Research program has adopted three new performance measures
    to assess its effectiveness in both retaining clinicians and
    transferring research results to advance veterans' health care.

         The percentage of clinicians who remain paid VA employees
            at least three years after completion of their career
            development award.

         The annual number of patent disclosures filed by VA
            investigators.

         The annual number of peer-review publications that show VA
            listed as the affiliated institution.

                                           Performance Measure
                                                        2004        2005        2006     Strategic
                                                                                           Target
      Percentage of paid clinicians.................          NA    Baseline         58%         70%
      Number of patents filed.......................          NA    Baseline         169         217
      Number of published peer-reviews..............          NA    Baseline       2,590       2,700

                          SUMMARY OF PROGRAM RESOURCES

                            [In millions of dollars]

                                         2004 actual  2005 est.   2006 est.
    Medical and prosthetic research
    appropriation.......................         866         784         786
    Federal resources...................         610         625         662
    Other non-federal resources.........         177         195         204
                                        ------------------------------------
          Total program resources.......       1,612       1,604       1,652
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         334         312         311
    11.3      Other than full-time permanent          36          33          31
    11.5      Other personnel compensation..          69          65          64
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         439         410         406
    12.1    Civilian personnel benefits.....         113         106         105
    13.0    Benefits for former personnel...           1           1           1
    21.0    Employee travel.................           6           5           5
    21.0    Travel and transportation of
              persons.......................           1
    23.1    Rental payments to GSA..........           3           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................         194         179         179
    26.0    Supplies and materials..........          56          55          55
    31.0    Equipment.......................          41          41          41
    32.0    Land and structures.............                       1           1
    92.0    Undistributed...................                                   1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         856         803         799
    99.0  Reimbursable obligations..........          41          50          50
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         897         853         849
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       6,538       5,941       5,671
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         260         260         260
    ---------------------------------------------------------------------------

        In addition to research staff shown above, 5,100 staff carry out
    research at VA supported by other Federal and non-Federal resources.

                         Canteen Service Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable operating expenses...         146         148         150
    09.02 Reimbursable direct operations....          97          98          99
    09.10 Reimbursable capital investment:
            Sales program: Purchase of
            equipment and leasehold.........           6           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         249         251         254
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18           9           1
    22.00 New budget authority (gross)......         240         243         254
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         258         252         255
    23.95 Total new obligations.............        -249        -251        -254
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           9           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         240         243         246
    69.00   Offsetting collections (from
              investment)...................                                   8
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         240         243         254
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          22          28
    73.10 Total new obligations.............         249         251         254
    73.20 Total outlays (gross).............        -243        -245        -254
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          22          28          28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         240         242         253
    86.98 Outlays from mandatory balances...           3           3           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         243         245         254
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -240        -243        -254
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          31          30          30
    92.02 Total investments, end of year:
            Federal securities: Par value...          30          30          22
    ---------------------------------------------------------------------------

        The Veterans Canteen Service was established to furnish, at
    reasonable prices, merchandise and services necessary for

    [[Page 902]]

    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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          37          38          39
    11.3    Other than full-time permanent..          36          36          36
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          73          74          75
    12.1  Civilian personnel benefits.......          18          18          19
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................           4           4           4
    26.0  Supplies and materials............         149         149         150
    31.0  Equipment.........................           3           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         249         251         254
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,890       2,900       2,900
    ---------------------------------------------------------------------------

                      Medical Center Research Organizations

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operating expenses................         160         162         161
    09.02 Capital investments...............          19          19          19
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         179         181         180
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          16          16
    22.00 New budget authority (gross)......         179         181         180
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         195         197         196
    23.95 Total new obligations.............        -179        -181        -180
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          16          16          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         179         181         180
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         179         181         180
    73.20 Total outlays (gross).............        -179        -181        -180
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         179         181         180
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -179        -181        -180
    ----------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................         111         113         112
    26.0  Supplies and materials............          46          47          47
    31.0  Equipment.........................          20          19          19
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         179         181         180
    ---------------------------------------------------------------------------

                                   Trust Funds

                        General Post Fund, National Homes

                          (including transfer of funds)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           1           1           4
        Receipts:
    02.00 General post fund, national homes,
            Deposits........................          29          31          32
    02.40 General post fund, national homes,
            Interest on investments.........           2           3           3
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          31          34          35
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          32          35          39
        Appropriations:
    05.00 General post fund, national homes.         -31         -31         -32
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           1           4           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Religious, recreational, and
            entertainment activities........          25          28          28
    00.02 Research activities...............           2           2           3
    00.03 Therapeutic residence maintenance.           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          28          31          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          59          62          62
    22.00 New budget authority (gross)......          31          31          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          90          93          94
    23.95 Total new obligations.............         -28         -31         -32
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          62          62          62
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          31          31          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           5
    73.10 Total new obligations.............          28          31          32
    73.20 Total outlays (gross).............         -27         -31         -35
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           5           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          27          28          32
    86.98 Outlays from mandatory balances...                       3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          27          31          35
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          31          31          32
    90.00 Outlays...........................          27          31          35
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          62          67          63
    92.02 Total investments, end of year:
            Federal securities: Par value...          67          63          63
    ---------------------------------------------------------------------------

    [[Page 903]]

        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. (38 U.S.C. chs. 83 and
    85.)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................          13          15          17
    26.0  Supplies and materials............           9          10          10
    31.0  Equipment.........................           3           3           2
    32.0  Land and structures...............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          28          31          32
    ---------------------------------------------------------------------------

                                BENEFITS PROGRAMS

                                  Federal Funds

    General and special funds:

                        Disability Compensation Benefits

                          (including transfer of funds)

        For the payment of compensation benefits to or on behalf of veterans
    and a pilot program for disability examinations, adjusted-service
    credits and certificates, payment of premiums due on commercial life
    insurance policies, the Reinstated Entitlement Program for Survivors,
    and for other benefits as authorized by law $29,771,942,000; of which,
    not to exceed $1,656,000 may be transferred to ``Disability Compensation
    Administration'' and ``Medical Administration'' for the administrative
    expenses authorized by the Omnibus Budget Reconciliation Act of 1990 and
    the Veterans' Benefits Act of 1992. In addition, for making payments
    after June 30, 2006 for the disability compensation program administered
    by the Department, such sums as may be necessary. (38 U.S.C. 107, 1312,
    1977, and 2106, chapters 11, 13, 18, 51, 53, 55, and 61; 42 U.S.C. 402,
    chapter 7; 50 U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 735; 76
    Stat. 1198).
        [For the payment of compensation benefits to or on behalf of
    veterans and a pilot program for disability examinations as authorized
    by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension
    benefits to or on behalf of veterans as authorized by law (38 U.S.C.
    chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial benefits,
    emergency and other officers' retirement pay, adjusted-service credits
    and certificates, payment of premiums due on commercial life insurance
    policies guaranteed under the provisions of article IV of the Soldiers'
    and Sailors' Civil Relief Act of 1940 (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), $32,607,688,000, to remain
    available until expended: Provided, That not to exceed $20,703,000 of
    the amount appropriated under this heading shall be reimbursed to
    ``General operating expenses'' and ``Medical services'' for necessary
    expenses in implementing those provisions authorized in the Omnibus
    Budget Reconciliation Act of 1990, and in the Veterans' Benefits Act of
    1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which
    is specifically provided as the ``Compensation and pensions''
    appropriation: Provided further, That such sums as may be earned on an
    actual qualifying patient basis, shall be reimbursed to ``Medical
    facilities revolving fund'' to augment the funding of individual medical
    facilities for nursing home care provided to pensioners as authorized.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Veterans..........................      22,323      24,619      26,015
    01.02 Survivors.........................       4,008       4,269       4,464
                                               ---------   ---------  ----------
    01.91   Direct Program by Activities--
              Subtotal......................      26,331      28,888      30,479
                                               ---------   ---------  ----------
    02.93   Total compensation..............      26,331      28,888      30,479
    03.01 Chapter 18........................          16          17          18
    03.02 Clothing allowance................          49          51          54
    03.04 Misc Assistance (EAJ, SAFD).......           5           6           6
    03.05 Medical exam pilot program........          63          67          81
    03.06 OBRA payment to VBA...............           1           2           2
    03.07 Reinstated Entitlement Program for
            Survivors.......................                                   6
                                               ---------   ---------  ----------
    03.91   Total other compensation
              expenses......................         134         143         167
    09.02 Reinstated Entitlement for
            Suvivors........................           7           7
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      26,472      29,038      30,646
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,112         945         874
    22.00 New budget authority (gross)......      26,306      28,967      29,772
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      27,418      29,912      30,646
    23.95 Total new obligations.............     -26,472     -29,038     -30,646
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         945         874
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      26,301      29,246      29,294
    60.00   Appropriation...................                                 478
    61.00   Transferred to other accounts...          -3        -286
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      26,298      28,960      29,772
    69.00 Offsetting collections (cash) REPS           8           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      26,306      28,967      29,772
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,002       2,171          49
    73.10 Total new obligations.............      26,472      29,038      30,646
    73.20 Total outlays (gross).............     -26,305     -31,160     -30,643
    73.40 Adjustments in expired accounts
            (net)...........................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,171          49          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      23,191      28,045      29,720
    86.98 Outlays from mandatory balances...       3,114       3,115         923
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      26,305      31,160      30,643
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -8          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      26,298      28,960      29,772
    90.00 Outlays...........................      26,297      31,153      30,643
    ---------------------------------------------------------------------------

        This appropriation provides for the payment of compensation 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 certain birth defects. 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.

        Miscellaneous benefits provided for are:

    [[Page 904]]

            (a) payments for claims made pursuant to the provision of the
        World War Adjusted Compensation Act of 1924, as amended;
            (b) 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
            (c) payments authorized by the Equal Access to Justice Act.

        The appropriation also provides for a pilot program authorizing VA
    to contract out medical examinations to determine service-connected
    disabilities of veterans who are potential applicants of compensation
    benefits and a program to allow VA to perform income matches for certain
    compensation recipients.

        In accordance with Public Law 97-377, the Reinstated Entitlement
    Program for Survivors (REPS) program restores social security benefits
    to certain surviving spouses or children of veterans who died of
    service-connected causes.

        Legislation is proposed to provide a cost-of-living adjustment
    comparable to the annual social security increase to recipients of
    disability compensation, dependency and indemnity compensation, and
    clothing allowances. The increase, effective with payments made on
    January 1, 2006, is expected to be 2.3 percent.

                AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                         2004 actual  2005 est.   2006 est.
    Veterans:
      Cases.............................   2,518,464   2,593,783   2,688,248
      Average payment per case, per year      $8,863      $9,492      $9,677
                                        ------------------------------------
          Total obligations (in
            millions)...................     $22,322     $24,619     $26,015
                                        ====================================
    Survivors:
      Total.............................     315,800     327,735     335,081
      Average payment per case, per year     $12,692     $13,026     $13,322
                                        ------------------------------------
          Total obligations (in
            millions)...................      $4,008      $4,269      $4,464
                                        ====================================
    Chapter 18:
      Children..........................       1,147       1,194       1,219
      Average payment per case, per year     $14,037     $14,388     $14,728
                                        ------------------------------------
          Total obligations (in
            millions)...................         $16         $17         $18
                                        ====================================
    Clothing allowance:
      Number of veterans................      82,074      82,945      85,273
      Average payment per case, per year        $597        $615        $633
                                        ------------------------------------
          Total obligations (in
            millions)...................         $49         $51         $54
                                        ====================================
    Other compensation caseload:
      Special allowance dependents......          76          68          60
      Equal Access to Justice payments..       1,097       1,363       1,363
                                        ====================================
    REPS:
      Spouses...........................          15          22          12
      Average benefit...................     $56,722     $28,678     $34,510
                                        ------------------------------------
      Children..........................         291         345         257
      Average benefit...................     $20,945     $17,590     $18,201
                                        ------------------------------------
          Obligations (in millions).....          $7          $7          $6
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........      26,465      29,031      30,646
    99.0  Reimbursable obligations:
            Reimbursable obligations........           7           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      26,472      29,038      30,646
    ---------------------------------------------------------------------------

                     Disability Compensation Administration

        For operating expenses associated with the provision of compensation
    benefits; reimbursement of the Department of Defense for the cost of
    overseas employee mail; and purchase of two passenger motor vehicles for
    use by the Veterans Benefits Administration in Manila, Philippines,
    $701,343,700, including no more than $11,892,000 for construction.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0134-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    03.01 Administrative expenses...........         698         760         739
    03.02 Construction, major projects......                       2
    03.03 Construction, minor projects......          13          13          12
                                               ---------   ---------  ----------
    03.92   Total other direct expenses.....         711         775         751
    09.02 Administrative expense............          78          78          97
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......          78          78          97
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         789         853         848
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          40          53          50
    22.00 New budget authority (gross)......         738         850         798
    22.22 Unobligated balance of FY2003
            emergency sup transferred from
            Gen Ad..........................          63
    22.30 Expired unobligated balance
            transfer to unexpired account...           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         846         903         848
    23.95 Total new obligations.............        -789        -853        -848
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          53          50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         664         658         701
    40.35   Appropriation permanently
              reduced pursuant to H.R. 2673.          -4
    40.35   Appropriation reduced pursuant
              to P.L. 108-447...............                      -5
    42.00   Transferred from other accounts.                     119
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         660         772         701
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          78          78          97
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         738         850         798
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          53          87         146
    73.10 Total new obligations.............         789         853         848
    73.20 Total outlays (gross).............        -746        -794        -822
    73.40 Adjustments in expired accounts
            (net)...........................          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          87         146         172
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         601         664         653
    86.93 Outlays from discretionary
            balances........................         145         130         169
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         746         794         822
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -78         -78         -97
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         660         772         701
    90.00 Outlays...........................         668         716         725
    ---------------------------------------------------------------------------

        This appropriation provides for the corporate leadership and
    operational support to VA's Disability Compensation business line.
    Additionally, funding is provided for capital asset investments.

        The Veterans Benefits Administration determines eligibility and
    adjudicates all claims for compensation awards. Workload data for this
    program are shown below. Specific performance goals relating to the
    processing of veterans benefits are contained in VA's congressional
    budget. The Disability Com

    [[Page 905]]

    pensation business line provides processing of claims for veterans and
    dependents relating to compensation benefits under the various laws
    enacted by Congress.

                                    WORKLOAD

                                         2004 actual  2005 est.   2006 est.

    Compensation:
      Rating-Related Actions............     683,758     704,272     725,399
      Non Rating Actions................     261,551     269,398     277,480

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0134-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         386         376         395
    11.5      Other personnel compensation..          50          74          82
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         436         450         477
    12.1    Civilian personnel benefits.....         101         119         133
    21.0    Employee travel.................           5           6           5
    22.0    Transportation of things........           1           1           2
    23.1    Rental payments to GSA..........          55          62          67
    23.2    Rental payments to others.......           7           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........          23          20          21
    24.0    Printing and reproduction.......           2           1           1
    25.2    Other services..................          59          82          18
    26.0    Supplies and materials..........           4           4           4
    31.0    Equipment.......................           5           9           5
    32.0    Land and structures.............          13          15          12
                                               ---------   ---------  ----------
    99.0      Direct obligations............         711         775         751
    99.0  Reimbursable obligations..........          78          78          97
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         789         853         848
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0134-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       7,316       7,269       7,380
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         252         246         248
    ---------------------------------------------------------------------------

                               Education Benefits

                          (including transfer of funds)

        For the payment of education and training benefits to or on behalf
    of veterans as authorized by law, including any payment for associated
    activities authorized by 38 U.S.C. 3034(e), 3674, 3684(c), and 3697,
    $2,580,115,000. In addition, for making payments after June 30, 2006 for
    the education program administered by the Department, such sums as may
    be necessary. (38 U.S.C. chapters 21, 30, 34, 35, 36, 39, 51, 53, 55,
    and 61).
        [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), $2,556,232,000, to remain
    available until expended: Provided, That expenses for rehabilitation
    program services and assistance which the Secretary is authorized to
    provide under section 3104(a) of title 38, United States Code, other
    than under subsection (a)(1), (2), (5), and (11) of that section, shall
    be charged to this account.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    01.01   Veterans/servicepersons.........       1,674       1,829       1,976
    01.03   Dependents......................         332         405         443
    01.04   Tuition Assistance..............          17          18          18
    01.05   Licensing and Certification.....           2           2           2
    01.06   Work study......................          19          21          21
    01.07   Payments to states..............          18          18          19
    01.08   Reporting fees..................           3           3           3
    01.09   Special Assistance..............          76          95          96
                                               ---------   ---------  ----------
    01.91     Direct Program by Activities--
                Subtotal....................       2,141       2,391       2,578
                                               ---------   ---------  ----------
    01.92   Total education program.........       2,141       2,391       2,578
    02.02 Administrative expenses...........           1           8           2
                                               ---------   ---------  ----------
    03.93   Total Direct Program............       2,142       2,399       2,580
          Reimbursable education program:

    09.01   Veterans' basic benefits........           7           8           8
    09.02   Veterans' supplementary benefits          87          89          99
    09.03   Reservists benefits.............         124         251         284
    09.04   Reservists supplementary
              benefits......................          53          37          36
    09.05   National Call to Service........                                   1
                                               ---------   ---------  ----------
    09.09     Reimbursable program--subtotal
                line........................         271         385         428
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,413       2,784       3,008
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         401         227
    22.00 New budget authority (gross)......       2,239       2,557       3,008
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,640       2,784       3,008
    23.95 Total new obligations.............      -2,413      -2,784      -3,008
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         227
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,968       1,991       2,580
    62.00   Transferred from other accounts.                     181
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       1,968       2,172       2,580
    69.00 Offsetting collections (cash).....         271         385         428
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,239       2,557       3,008
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          56          65          13
    73.10 Total new obligations.............       2,413       2,784       3,008
    73.20 Total outlays (gross).............      -2,404      -2,836      -2,998
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          65          13          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,947       2,544       2,985
    86.98 Outlays from mandatory balances...         457         292          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,404       2,836       2,998
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -271        -385        -428
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,968       2,172       2,580
    90.00 Outlays...........................       2,133       2,451       2,570
    ---------------------------------------------------------------------------

        This appropriation finances educational assistance allowances for
    certain service persons, 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. Voluntary contributions by eligible
    servicepersons and matching contributions provided by the Department of
    Defense are included in the Post-Vietnam Era Veterans Education Account.

        All Volunteer Force educational assistance (Montgomery GI Bill).--
    Public Law 98-525, enacted October 19, 1984, established two new
    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. Public Law 108-375
    established a program to provide educational assistance to members of
    the reserve components called or ordered to active service in response
    to a war or national emergency declared by the President or the
    Congress, in recognition of the sacrifices that those members make in
    answering the call to duty. The Education appropriation pays the basic
    benefit al

    [[Page 906]]

    lowance for veterans, except for certain Post-Vietnam Era Veterans
    Education participants who transferred to the Montgomery GI Bill
    program. Supplementary educational assistance, Post-Vietnam Era Veterans
    Education converters, reservists, and the National Call to Service
    Program are financed by payments from the Department of Defense and the
    Department of Homeland Security.

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

                         CASELOAD AND AVERAGE COST DATA

                                         2004 actual  2005 est.   2006 est.

    Veterans/Servicemembers:
      Number of trainees................     332,031     351,450     367,658
      Average cost per trainee..........      $5,326      $5,421      $5,603
                                        ------------------------------------
          Total cost (in millions)......      $1,768      $1,905      $2,060
                                        ====================================
    Reservists (1606):
      Number of trainees................      89,136      59,934      57,725
      Average cost per trainee..........      $1,958      $1,997      $2,068
                                        ------------------------------------
          Total cost (in millions)......        $175        $120        $119
                                        ====================================
    Reservists (1607):
      Number of trainees................                  46,346      54,103
      Average cost per trainee..........                  $3,559      $3,648
                                        ------------------------------------
          Total cost (in millions)......                    $165        $197
                                        ====================================

        Dependents' education and training.--This program provides benefits
    to children and spouses of veterans who died of a service-connected
    disability or whose service-connected disability is rated permanent and
    total. In addition, dependents of servicepersons missing in action or
    interned by a hostile foreign government for more than 90 days are also
    eligible. The following table provides a comparison of trainees and
    costs for the Dependents Educational Assistance program.

                           NUMBER OF TRAINEES AND COST

                                         2004 actual  2005 est.   2006 est.

    Sons and daughters:
      Number of trainees................      59,372      64,479      68,809
      Average cost per trainee (in
        dollars)........................      $4,966      $5,564      $5,701
                                        ------------------------------------
          Total cost (in millions)......        $295        $359        $392
                                        ====================================
    Spouses and widow(ers):
      Number of trainees................       9,644      10,593      11,285
      Average cost per trainee (in
        dollars)........................      $3,868      $4,340      $4,450
                                        ------------------------------------
          Total cost (in millions)......         $37         $46         $50
                                        ====================================

        Special Assistance to Disabled Veterans.--Certain disabled veterans
    are provided with automobile grants with the associated approved
    adaptive equipment. An allowance, up to a maximum of $11,000 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.

        Specially adapted housing grants.--Specially adapted housing grants,
    up to a maximum of $50,000, 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 $10,000. The
    following table shows caseload for this program. Specific performance
    goals are contained in VA's congressional budget.

        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. Public Law 108-
    454 established a program that provides availability of education
    benefits for payment for national admissions exams and national exams
    for credit at institutions of higher education.

        Licensing and certification test payments.--Under Public Law 106-
    419, 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.

        National Call to Service.--The 2003 National Defense Authorization
    Act directs the Department of Defense to offer an active duty enlistment
    option of 15 months plus training time to facilitate interest in
    National Service. Program participants will be given the opportunity to
    select one of the following incentives: a $5,000 enlistment bonus,
    repayment of student loans up to $18,000, or one of two education
    allowances.

                         CASELOAD AND AVERAGE COST DATA

                                         2004 actual  2005 est.   2006 est.

    Automobiles or other conveyances:
      Number of Conveyances.............       1,585       1,585       1,585
                                        ------------------------------------
      Average benefit...................      $9,253     $11,000     $11,000
                                        ------------------------------------
          Obligations (in millions).....         $15         $17         $17
                                        ====================================
    Adaptive equipment (including
        maintenance, repair: and
        installation for automobiles)
      Number of items...................       8,133       8,133       8,133
      Average benefit...................      $4,059      $4,278      $4,510
                                        ------------------------------------
          Obligations (in millions).....         $33         $35         $37
                                        ====================================
    Housing grants:
      Number of housing grants..........         846         846         846
      Average cost per grant............     $33,043     $50,000     $50,000
                                        ------------------------------------
          Total cost (in millions)......         $28         $42         $42
                                        ====================================
    Tuition Assistance:
      Number of trainees................      21,277      22,000      22,000
      Average cost per trainee..........        $792        $808        $831
                                        ------------------------------------
          Total cost (in millions)......         $17         $18         $18
                                        ====================================
    Education Benefits for Payment for
        National Admissions Exams:
      Number of trainees................                 102,516     106,180
          Total cost (in millions)......                     $12         $12
                                        ====================================
    Licensing and Certification:
      Number of payments................       6,424       6,745       7,082
      Average cost per trainee..........        $283        $311        $342
                                        ------------------------------------
          Total cost (in millions)......          $2          $2          $2
    National Call to Service:
      Number of trainees................           0          50         200
                                        ------------------------------------
          Total cost (in millions)......          $0          $0          $1
                                        ====================================

        Work-Study.--Certain veterans, reservists, and dependents pursuing a
    program of 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 September 1, 1997) or state minimum wage rate, whichever is
    higher.

                                         2004 actual  2005 est.   2006 est.

      Number of contracts...............      14,815      14,855      14,855
                                        ------------------------------------
          Total cost (in millions)......         $22         $24         $25
                                        ====================================

        Payments to States.--State approving agencies are reimbursed for the
    costs of inspecting, approving, and supervising programs of education
    and training offered by educational

    [[Page 907]]

    institutions and training establishments in which veterans, dependents,
    and reservists are enrolled or are about to enter.

        Reporting fees.--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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       2,142       2,399       2,580
    99.0  Reimbursable obligations:
            Reimbursable obligations........         271         385         428
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,413       2,784       3,008
    ---------------------------------------------------------------------------

                            Education Administration

        For operating expenses of education and training benefits and
    reimbursement of the Department of Defense for the cost of overseas
    employee mail, $100,340,000, including no more than $775,000 for
    construction.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0133-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    03.01 Administrative expenses...........          76          92          99
    03.03 Construction, minor projects......           1           1           1
                                               ---------   ---------  ----------
    03.92   Total other direct expenses.....          77          93         100
    09.02 Administrative expense............           1           8           3
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......           1           8           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          78         101         103
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           3
    22.00 New budget authority (gross)......          77          98         103
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          81         101         103
    23.95 Total new obligations.............         -78        -101        -103
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          77          91         100
    40.35   Appropriation permanently
              reduced pursuant to H.R. 2673.          -1
    40.35   Appropriation reduced pursuant
              to P.L. 108-447...............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          76          90         100
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           8           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          77          98         103
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7          12          19
    73.10 Total new obligations.............          78         101         103
    73.20 Total outlays (gross).............         -73         -94         -98
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          12          19          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          62          80          83
    86.93 Outlays from discretionary
            balances........................          11          14          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          73          94          98
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -8          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          76          90         100
    90.00 Outlays...........................          72          86          95
    ---------------------------------------------------------------------------

        This appropriation provides for the corporate leadership and
    operational support to VA's Education business line. Additionally,
    funding is provided for capital asset investments.

                                    WORKLOAD

                                         2004 actual  2005 est.   2006 est.

    Original claims.....................     192,948     194,619     211,874
    Adjustments/supplemental claims.....   1,070,203   1,104,594   1,202,529

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0133-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          39          43          44
    11.5      Other personnel compensation..           6           8           8
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          45          51          52
    12.1    Civilian personnel benefits.....          12          14          15
    21.0    Employee travel.................           1           3           1
    23.1    Rental payments to GSA..........           7           7           8
    23.2    Rental payments to others.......                       1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           3           3
    24.0    Printing and reproduction.......                       1
    25.2    Other services..................           9           8          17
    26.0    Supplies and materials..........                       1           1
    31.0    Equipment.......................                       3           1
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          77          93         100
    99.0  Reimbursable obligations..........           1           8           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          78         101         103
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0133-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         841         888         874
    ---------------------------------------------------------------------------

                Vocational Rehabilitation and Employment Benefits

        For the provision of vocational rehabilitation and employment
    benefits (including independent living services and assistance) to or on
    behalf of veterans, as authorized by law, $634,130,000. In addition, for
    making payments after June 30, 2006 for the vocational rehabilitation
    and employment program administered by the Department, such sums as may
    be necessary. (38 U.S.C. chapters 31, 36, 51, 53, 55, and 61).

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0135-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Vocational rehabilitation training         314         342         372
    01.02 Subsistence allowance.............         228         239         252
    01.04 Work study........................          10           9          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         552         590         634
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          20
    22.00 New budget authority (gross)......         561         570         634
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         572         590         634
    23.95 Total new obligations.............        -552        -590        -634
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         561         565         634
    62.00   Transferred from other accounts.                       5
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         561         570         634
    ----------------------------------------------------------------------------

    [[Page 908]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          17           3
    73.10 Total new obligations.............         552         590         634
    73.20 Total outlays (gross).............        -551        -604        -632
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          17           3           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         525         567         629
    86.98 Outlays from mandatory balances...          26          37           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         551         604         632
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         561         570         634
    90.00 Outlays...........................         551         604         632
    ---------------------------------------------------------------------------

        This appropriation finances assistance allowances for certain
    disabled veterans who are provided with vocational rehabilitation and
    employment services.

        In compliance with the Federal Credit Reform Act of 1990, the
    Vocational Rehabilitation Loan Fund Program account is reported
    separately under the Vocational Rehabilitation Loans Program Account.
    The Vocational Rehabilitation Loans program provides loans (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.

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

        Work-Study.--Certain veterans pursuing a program of rehabilitation,
    who are enrolled as a full-time student, can work up to 250 hours per
    semester, receiving the Federal ($5.15 on September 1, 1997) or state
    minimum wage rate, whichever is higher.

        The following table shows caseload for this program. We are now
    including individuals in the category of Rehabilitation Evaluation
    Planning and Service Delivery. Although these cases are receiving VR&E
    services, they are not receiving monetary benefits. Specific performance
    goals are contained in VA's congressional budget.

                         CASELOAD AND AVERAGE COST DATA

                                         2004 actual  2005 est.   2006 est.

    Special assistance to disabled
        veterans:
      Rehabilitation Evaluation Planning
        and Service cases...............      24,782      25,464      26,164
      Number of participants............      70,069      71,956      73,935
      Average cost......................      $7,728      $8,062      $8,443
                                        ------------------------------------
    Work-study:
      Number of contracts...............       6,924       6,884       6,884
      Cost (in millions)................         $10         $91         $10
          Total cost (in millions)......        $552        $590        $634
                                        ====================================

             Vocational Rehabilitation and Employment Administration

        For operating expenses of vocational rehabilitation and employment
    benefits (including administrative expenses incurred under section
    3104(a) (1), (2), (5), and (11) of title 38, United States Code); and
    reimbursement of the Department of Defense for the cost of overseas
    employee mail, $147,079,000, including no more than $1,886,000 for
    construction, and including no more than $305,000 for administering the
    direct loan program.

                 Vocational Rehabilitation Loans Program Account

        For the cost of direct loans, [$47,000] $53,000, as authorized by 38
    U.S.C. chapter 31, as amended: Provided, That such costs, including the
    cost of modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That
    these funds under this heading are available to subsidize gross
    obligations for the principal amount of direct loans not to exceed
    [$4,108,000] $4,242,000.
        [In addition, for administrative expenses necessary to carry out the
    direct loan program, $311,000, 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, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0132-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    03.01 Administrative expenses...........         122         146         145
    03.03 Construction, minor projects......           2           3           2
                                               ---------   ---------  ----------
    03.92   Total other direct expenses.....         124         149         147
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         124         149         147
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4
    22.00 New budget authority (gross)......         124         145         147
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         127         149         147
    23.95 Total new obligations.............        -124        -149        -147
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         125         140         147
    40.35   Appropriation permanently
              reduced pursuant to H.R. 2673.          -1
    40.35   Appropriation reduced pursuant
              to P.L. 108-447...............                      -1
    42.00   Transferred from other accounts.                       6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         124         145         147
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          17          32
    73.10 Total new obligations.............         124         149         147
    73.20 Total outlays (gross).............        -117        -134        -141
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          17          32          38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          97         115         117
    86.93 Outlays from discretionary
            balances........................          20          19          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         117         134         141
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         124         145         147
    90.00 Outlays...........................         117         134         141
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 36-0132-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct loan levels................           3           4           4
                                               ---------   ---------  ----------
    115901Total direct loan levels..........           3           4           4
        Direct loan subsidy (in percent):
    132001Subsidy rate......................        1.33        1.14        1.59
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        1.14        1.59
        Direct loan subsidy budget authority:
    133001Subsidy budget authority..........
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Subsidy outlays...................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ---------------------------------------------------------------------------

    [[Page 909]]

        This appropriation provides for the corporate leadership and
    operational support to VA's VR&E business line. Additionally, funding is
    provided for capital asset investments.

        The VBA VR&E service 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.

        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 in 1992 and beyond, as well as the administrative
    expenses of this program. The subsidy amounts are estimated on a net
    present value basis.

                                  WORKLOAD \1\

                                         2004 actual  2005 est.   2006 est.

      Evaluation and planning...........      28,183      30,438      31,960
      Rehabilitation services...........      61,346      66,254      69,567
      Employment services status........       6,480       6,998       7,348
      Vocational/educational counseling.      12,500      13,500      14,175

        \1\ Veterans may be in more than one category.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0132-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          58          62          65
    11.5    Other personnel compensation....           7          10          11
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          65          72          76
    12.1  Civilian personnel benefits.......          22          21          23
    21.0  Employee travel...................           1           2           2
    23.1  Rental payments to GSA............           8           8           9
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           3           3           4
    25.2  Other services....................          20          35          27
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           3           2
    32.0  Land and structures...............           2           3           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         124         149         147
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0132-0-1-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,105       1,102       1,123
    ---------------------------------------------------------------------------

                               Insurance Benefits

        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, [$44,380,000] $45,907,000, to remain
    available until expended. In addition, for making payments after June
    30, 2006 for the insurance program administered by the Department, such
    sums as may be necessary. (Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to NSLI...................           1           1           1
    00.10 VMLI death claims.................           8           9           9
    00.12 Payment to service-disabled
            veterans insurance..............          25          37          37
                                               ---------   ---------  ----------
    01.00   Total direct expenses...........          34          47          47
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          47          47
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......          34          46          48
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          47          48
    23.95 Total new obligations.............         -34         -47         -47
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1                       1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          29          44          46
    62.00   Transferred from Compensation
              Benefits accounts.............           3
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          32          44          46
    69.00 Offsetting collections (cash).....           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          34          46          48
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          34          47          47
    73.20 Total outlays (gross).............         -34         -47         -48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          33          46          48
    86.98 Outlays from mandatory balances...           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          34          47          48
    ----------------------------------------------------------------------------

        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..................          32          44          46
    90.00 Outlays...........................          32          45          46
    ---------------------------------------------------------------------------
        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.

        The Insurance business line administers six life insurance programs,
    including two trust funds, two public enterprise funds, a trust
    revolving fund, and Veteran's Mortgage Life Insurance (VMLI), and
    supervises two additional programs for the benefit of servicepersons,
    veterans, and their beneficiaries through contracts with a commercial
    company. All programs are operated on a commercial basis, to the extent
    possible, consistent with all applicable statutes. The Insurance
    appropriation is the funding mechanism for the following administration
    of the Government life insurance activities: U.S. Government Life
    Insurance Fund (USGLI); National Service Life Insurance (NSLI); Service-
    Disabled Veterans Insurance Fund (S-DVI); and Veterans Mortgage Life
    Insurance (VMLI).

        Military and naval insurance.--Payments are made to the USGLI 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 (NSLI).--Payments are made to the
    NSLI 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.

        Payment to service-disabled veterans insurance fund (S-DVI).--
    Payments are made to the S-DVI 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.

        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 2006 as indicated in the following table.

    [[Page 910]]

                         POLICIES AND INSURANCE IN FORCE

                                         2004 actual  2005 est.   2006 est.

    VMLI policies:
      Number of policies................       2,625       2,560       2,470
      Amount of insurance (dollars in
        millions).......................        $170        $170        $169

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........          34          45          45
    99.0  Reimbursable obligations:
            Reimbursable obligations........                       2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          47          47
    ---------------------------------------------------------------------------

                            Insurance Administration

        For operating expenses associated with the provision of insurance
    programs; and reimbursement of the Department of Defense for the cost of
    overseas employee mail, $4,632,000, including no more than $211,000 for
    construction.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0141-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    03.01 Administrative expenses...........           4           4           5
                                               ---------   ---------  ----------
    03.92   Total other direct expenses.....           4           4           5
    09.02 Administrative expense............          38          41          41
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......          38          41          41
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          42          45          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......          42          45          46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          43          45          46
    23.95 Total new obligations.............         -42         -45         -46
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           4           4           5
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          38          41          41
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          42          45          46
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           3           4
    73.10 Total new obligations.............          42          45          46
    73.20 Total outlays (gross).............         -40         -44         -45
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           3           4           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          34          38          39
    86.93 Outlays from discretionary
            balances........................           6           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          40          44          45
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -38         -41         -41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           4           5
    90.00 Outlays...........................           3           3           4
    ---------------------------------------------------------------------------

        This appropriation provides for the corporate leadership and
    operational support to VA's Insurance business line. Additionally,
    funding is provided for capital asset investments.

                                    WORKLOAD

                                         2004 actual  2005 est.   2006 est.

      Policy service actions............     756,270     739,000     716,990
      Collections.......................   2,137,372    2,071,00   2,004,628
      Disability claims.................      35,551      38,000      37,280
      Insurance awards..................     532,169     530,000     523,640
        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0141-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           2           2           3
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation           3           3           4
    12.1    Civilian personnel benefits.....           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           4           4           5
    99.0  Reimbursable obligations..........          38          41          41
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          42          45          46
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0141-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          45          45          65
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         445         468         442
    ---------------------------------------------------------------------------

                                Pensions Benefits

                          (including transfer of funds)

        For the payment of pension benefits to or on behalf of veterans, a
    pilot program for disability examinations, payment of premiums due on
    commercial life insurance policies, and for other benefits as authorized
    by law, $3,470,360,000; of which not to exceed $21,835,000 may be
    transferred to ``Pension Administration'' and ``Medical Administration''
    for the administrative expenses authorized by the Omnibus Budget
    Reconciliation Act of 1990 and the Veterans' Benefits Act of 1992:
    Provided, That such sums as may be earned on an actual qualifying
    patient basis, shall be reimbursed to ``Medical Services'' to augment
    the funding of individual medical facilities for nursing home care
    provided to pensioners as authorized. In addition, for making payments
    after June 30, 2006 for the pension programs administered by the
    Department, such sums as may be necessary. (38 U.S.C. 107, 1312, 1977,
    and 2106, chapters 15, 23, 51, 53, 55, 61; 50 U.S.C. App. 540-548; 43
    Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198; 92 Stat. 2508).

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0154-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.03 Improved law......................       2,579       2,631       2,685
    01.04 Prior law.........................          24          20          17
                                               ---------   ---------  ----------
    01.91   Total veterans..................       2,603       2,651       2,702
    02.01 Improved law......................         667         685         698
    02.02 Prior law.........................          54          50          46
    02.03 Old law...........................           1           1           1
                                               ---------   ---------  ----------
    02.91   Total survivors.................         722         736         745
                                               ---------   ---------  ----------
    02.92   Total pensions..................       3,325       3,387       3,447
    03.01 OBRA payment to VBA...............           7           8           8
    03.02 OBRA payment to VHA...............           9          11          14
    03.03 Contract Medical exams............           1           1           1
                                               ---------   ---------  ----------
    03.91   Direct Program by Activities....          17          20          23
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................       3,342       3,407       3,470
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65         114           1

    [[Page 911]]

    22.00 New budget authority (gross)......       3,391       3,294       3,470
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,456       3,408       3,471
    23.95 Total new obligations.............      -3,342      -3,407      -3,470
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         114           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       3,391       3,194       3,470
    62.00   Transferred from other accounts.                     100
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       3,391       3,294       3,470
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         264         272           5
    73.10 Total new obligations.............       3,342       3,407       3,470
    73.20 Total outlays (gross).............      -3,334      -3,674      -3,470
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         272           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,005       3,288       3,464
    86.98 Outlays from mandatory balances...         329         386           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,334       3,674       3,470
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,391       3,294       3,470
    90.00 Outlays...........................       3,334       3,674       3,470
    ---------------------------------------------------------------------------

        This appropriation provides for the payment of pensions 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, 2006, is expected to be 2.3
    percent.

                  AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                         2004 actual  2005 est.   2006 est.

    Veterans:
      Improved law......................     329,662     324,500     320,082
      Prior law.........................      13,026      11,125       9,513
      Old law and service...............         173         153         135
                                        ------------------------------------
          Total.........................     342,861     335,778     329,730
      Average payment per case, per year
        (in dollars)....................      $7,594      $7,896      $8,195
                                        ------------------------------------
          Total obligations (in
            millions)...................      $2,604      $2,651      $2,702
                                        ====================================
    Survivors:
      Improved law......................     166,415     163,544     160,404
      Prior law.........................      51,521      46,438      41,900
      Old law and service...............         584         470         379
                                        ------------------------------------
          Total.........................     218,520     210,452     202,683
      Average payment per case, per year
        (in dollars)....................      $3,304      $3,498      $3,676
                                        ------------------------------------
          Total obligations (in
            millions)...................        $722        $736        $745
                                        ====================================

                             Pensions Administration

        For operating expenses associated with the provision of pension
    benefits and reimbursement of the Department of Defense for the cost of
    overseas employee mail, $147,742,800, including no more than $3,093,000
    for construction.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0143-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    03.01 Administrative expenses...........         142         135         145
    03.02 Construction, major projects......                       1
    03.03 Construction, minor projects......           4           3           3
                                               ---------   ---------  ----------
    03.92   Total other direct expenses.....         146         139         148
    09.02 Administrative expense............           7           9           9
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......           7           9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         153         148         157
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           1
    22.00 New budget authority (gross)......         150         147         157
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         154         148         157
    23.95 Total new obligations.............        -153        -148        -157
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         144         139         148
    40.35   Appropriation permanently
              reduced pursuant to HR 2673...          -1
    40.35   Appropriation reduced pursuant
              to P.L. 108-447...............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         143         138         148
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7           9           9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         150         147         157
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          26          33
    73.10 Total new obligations.............         153         148         157
    73.20 Total outlays (gross).............        -142        -141        -151
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          26          33          39
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         110         118         127
    86.93 Outlays from discretionary
            balances........................          32          23          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         142         141         151
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -9          -9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         143         138         148
    90.00 Outlays...........................         135         132         142
    ---------------------------------------------------------------------------

        This appropriation provides for the corporate leadership and
    operational support to VA's Pension business line. Additionally, funding
    is provided for capital asset investments.

        The Veterans Benefits Administration determines eligibility and
    adjudicates all claims for pensions awards. Workload data for this
    program are shown below. Specific performance goals relating to the
    processing of veterans benefits are contained in VA's congressional
    budget. The Pension business line provides processing of claims for
    veterans and dependents relating to pension benefits under the various
    laws enacted by Congress.

                                    WORKLOAD

                                         2004 actual  2005 est.   2006 est.

    Pension:
      Rating-Related Actions............      87,357      89,978      92,677
      Non Rating Actions................     283,233     291,730     300,481

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0143-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          75          67          71
    11.5      Other personnel compensation..           9          14          16
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          84          81          87

    [[Page 912]]

    12.1    Civilian personnel benefits.....          20          21          23
    21.0    Employee travel.................           1           2           1
    23.1    Rental payments to GSA..........          10          11          12
    23.2    Rental payments to others.......           1           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           4           5
    25.2    Other services..................          22          11          12
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           2           2
    32.0    Land and structures.............           4           4           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............         146         139         148
    99.0  Reimbursable obligations..........           7           9           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         153         148         157
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0143-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,435       1,344       1,351
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         100         100         108
    ---------------------------------------------------------------------------

                                 Burial Benefits

                       [national cemetery administration]

        For the provision of burial benefits and payments as authorized by
    law, $170,577,000. In addition, for making payments after June 30, 2006
    for the burial benefits program administered by the Department, such
    sums as may be necessary. (38 U.S.C. 107, chapters 23, 51, 53, 55, and
    61).
        [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, $148,925,000:
    Provided, That of the funds made available under this heading, not to
    exceed $7,400,000 shall be available until September 30, 2006.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2005.)
        [For an additional amount for ``National Cemetery Administration'',
    for expenses related to recent natural disasters in the Southeast,
    $50,000, to remain available until September 30, 2005: Provided, That
    the amounts provided herein are designated as an emergency requirement
    pursuant to section 402 of S. Con. Res. 95 (108th Congress), as made
    applicable to the House of Representatives by H. Res. 649 (108th
    Congress) and applicable to the Senate by section 14007 of Public Law
    108-287.] (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0139-0-1-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Burial allowance..................          32          36          37
    01.02 Burial plots......................          18          19          20
    01.03 Service-connected deaths..........          22          27          28
    01.04 Burial flags......................          17          18          19
    01.05 Headstones and markers............          43          36          36
    01.06 Graveliners.......................          10           9           8
    01.07 Pre-placed crypts.................          11          23          23
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................         153         168         171
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         153         168         171
    23.95 Total new obligations.............        -153        -168        -171
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         153         168         171
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         153         168         171
    73.20 Total outlays (gross).............        -153        -168        -171
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         153         168         171
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         153         168         171
    90.00 Outlays...........................         153         168         171
    ---------------------------------------------------------------------------

        The Department of Veterans Affairs administers a range of burial
    programs to benefit eligible veterans and family members. The
    responsibility for these programs is divided between two VA
    organizations. Most monetary benefits and the burial flags program are
    administered by the Veterans Benefits Administration (VBA). Cemetery
    programs and other in-kind benefits are administered by the National
    Cemetery Administration (NCA). Funding for the provision of burial
    benefits and services in VA is provided from the Burial Benefits
    Appropriation and the National Cemetery Gift Fund.

        This appropriation provides burial benefits 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 Administration.

                            NUMBER OF BURIAL BENEFITS

                                         2004 actual  2005 est.   2006 est.
    Burial allowance....................      75,731      81,254      82,033
    Burial plot.........................      62,152      63,769      65,581
    Service-connected death.............      13,323      13,578      13,938
    Burial flags........................     499,470     540,000     542,415
    Headstone markers...................     355,054     341,000     343,000
    Graveliners.........................      54,579      43,648      39,038
    Preplaced crypts....................      29,802      69,000      67,000

                              Burial Administration

        For operating expenses for burial benefits, for administrative
    expenses of the National Cemetery Administration, and for cemeterial
    expenses, including purchase of one passenger motor vehicle,
    $289,709,000; of which no more than $32,000,000, to remain available
    until expended, is for grants to aid States in establishing, expanding,
    or improving State veterans cemeteries, as authorized by 38 U.S.C. 2408;
    and of which no more than $90,300,000 for construction.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.01 Administrative expenses...........         155         162         168
    02.02 Construction, major projects......          49         111          65
    02.03 Construction, minor projects......          14          35          25
    02.04 Grants to states..................          34          36          32
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         252         344         290
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         175         188         118
    22.00 New budget authority (gross)......         265         273         290
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1           1
                                               ---------   ---------  ----------

    [[Page 913]]

    23.90   Total budgetary resources
              available for obligation......         441         462         408
    23.95 Total new obligations.............        -252        -344        -290
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         188         118         118
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         267         275         290
    40.35   Appropriation permanently
              reduced pursuant to P.L. 108-
              447...........................          -2          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         265         273         290
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         126         144         234
    73.10 Total new obligations.............         252         344         290
    73.20 Total outlays (gross).............        -233        -253        -259
    73.45 Recoveries of prior year
            obligations.....................          -1          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         144         234         265
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         160         151         157
    86.93 Outlays from discretionary
            balances........................          73         102         102
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         233         253         259
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         265         273         290
    90.00 Outlays...........................         233         253         259
    ---------------------------------------------------------------------------

        This appropriation provides for the corporate leadership and support
    to VA's Burial business line and for 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 veterans
    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. Additionally, funding is provided for capital asset
    investments.

        Specific performance goals relating to the Burial business line are
    contained in VA's congressional budget. 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. 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 36-0129-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          65          70          72
    11.3    Other than full-time permanent..           4           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          69          74          76
    12.1  Civilian personnel benefits.......          19          21          22
    13.0  Benefits for former personnel.....           2           3           2
    21.0  Travel and transportation of
            persons.........................           2           3           3
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           5           5           6
    25.2  Other services....................          43          40          42
    26.0  Supplies and materials............           7           7           8
    31.0  Equipment.........................           6           7           7
    32.0  Land and structures...............          63         146          90
    41.0  Grants, subsidies, and
            contributions...................          34          36          32
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         252         344         290
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,492       1,553       1,566
    ---------------------------------------------------------------------------

    Public enterprise funds:

                    Service-Disabled Veterans Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Capital investment................          12          12          13
    09.02 Death Claims......................          54          62          64
    09.03 All Other.........................           6           8           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          72          82          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           5           5
    22.00 New budget authority (gross)......          68          82          84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          77          87          89
    23.95 Total new obligations.............         -72         -82         -84
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          68          82          84
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          10          10
    73.10 Total new obligations.............          72          82          84
    73.20 Total outlays (gross).............         -71         -82         -84
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          68          78          84
    86.98 Outlays from mandatory balances...           3           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          71          82          84
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Insurance
                account.....................         -25         -38         -37
    88.40     Interest on loans.............          -3          -3          -3
    88.40     Insurance premiums earned.....         -28         -30         -32
    88.40     Repayments of loans...........         -11         -10         -11
    88.40     Other income..................          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -68         -82         -84
    ----------------------------------------------------------------------------

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

        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.

        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.

    [[Page 914]]

        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

                                         2004 actual  2005 est.   2006 est.
    Number of policies..................     165,651     175,944     183,047
    Insurance in force (dollars in
    millions)...........................      $1,615      $1,692      $1,761

        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 $552 million by September 30, 2006.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          12          12          13
    42.0  Insurance claims and indemnities..          60          70          71
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......          72          82          84
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          72          82          84
    ---------------------------------------------------------------------------

                        Veterans Reopened Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          38          41          41
    09.02 Dividends.........................          15          13          11
    09.03 All other.........................           7           7           8
    09.04 Capital investment: policy loans..           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          63          64          63
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         409         391         368
    22.00 New budget authority (gross)......          45          41          37
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         454         432         405
    23.95 Total new obligations.............         -63         -64         -63
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         391         368         342
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          45          41          37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          52          51
    73.10 Total new obligations.............          63          64          63
    73.20 Total outlays (gross).............         -63         -65         -63
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          52          51          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          45          41          37
    86.98 Outlays from mandatory balances...          18          24          26
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          63          65          63
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities         -30         -27         -25
    88.40     Interest on loans.............          -1          -1          -1
    88.40     Insurance premiums earned.....          -9          -8          -7
    88.40     Repayments of loans...........          -5          -5          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -45         -41         -37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          18          24          26
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         460         442         418
    92.02 Total investments, end of year:
            Federal securities: Par value...         442         418         393
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund pays claims and administrative costs on participating life
    insurance policies issued during the period May 1, 1965, through May 2,
    1966, under three life insurance programs: (1) service-disabled standard
    insurance; (2) service-disabled rated insurance; and (3) nonservice
    disabled insur- ance availing disabled World War II and Korean conflict
    veterans an opportunity to acquire life insurance coverage who were no
    longer eligible for other Government insurance.

        Budget program--
            Death claims.--Represents payments to designated beneficiaries.
            Dividends.--Policyholders participate in the distribution of
        annual dividends.
            All other.--This represents resources 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

                                         2004 actual  2005 est.   2006 est.
      Number of policies................      57,757      52,820      47,900
      Insurance in force (dollars in
        millions).......................        $523        $485        $448

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............           3           3           3
    42.0  Insurance claims and indemnities..          42          45          47
    43.0  Interest and dividends............          18          16          13
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          63          64          63
    ---------------------------------------------------------------------------

                    Servicemembers' Group Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4009-0-3-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Premium payments..................         532         543         541
    09.02 Payments to carrier...............          13         100
    09.03 Payment to GOE....................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         546         644         542
    ----------------------------------------------------------------------------

    [[Page 915]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         546         644         542
    23.95 Total new obligations.............        -546        -644        -542
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         546         644         542
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5
    73.10 Total new obligations.............         546         644         542
    73.20 Total outlays (gross).............        -551        -644        -542
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         546         644         542
    86.98 Outlays from mandatory balances...           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         551         644         542
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Withholdings from serviceman's
              pay...........................        -546        -644        -542
    ----------------------------------------------------------------------------

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

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

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4009-0-3-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................         546         644         542
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......         546         644         542
    ---------------------------------------------------------------------------

    Credit accounts:

                             Housing 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, subchapters I through III, 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 2006, not to exceed $500,000 in gross
    obligations for direct loans for specially adapted housing loans, 38
    U.S.C. 3711(i): Provided further, That no new Native American housing
    loans in excess of $30,000,000 may be made in 2006, including interest
    rate refinancing, 38 U.S.C. 3762(h).
        For operating expenses associated with the housing program, as
    authorized by 38 U.S.C., chapter 37, $156,675,500 to carry out the grant
    program and the direct and guaranteed loan programs, of which $4,815,500
    may be transferred to and merged with the appropriation, ``General
    Administration'', and of which no more than $1,771,000 is available for
    construction: Provided, That of the amount provided for housing
    operating expenses, (1) $750,000 is for administering the Transitional
    Housing program as authorized by 38 U.S.C. chapter 20, subchapter VI;
    and (2) $579,500 is for administering the Native American housing
    program as authorized by 38 U.S.C. chapter 37, subchapter V, as amended.
        [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 2005, within the resources available, not to exceed
    $500,000 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, $154,075,000, 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, 2005.)

             [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, $571,000,
    which may be transferred to and merged with the appropriation for
    ``General operating expenses'': Provided, That no new loans in excess of
    $50,000,000 may be made in fiscal year 2005.] (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2005.)

      [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
    administration'' may be expended.] (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Appropriations:
    05.00 Housing program account...........          -1      -1,889
    ---------------------------------------------------------------------------

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................       2,259       1,020
    0102  Negative subsidies/subsidy
            reestimates.....................           3         187         229
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           3          22          37
    00.02 Guaranteed loan subsidy...........         199          15          43
    00.05 Reestimates of direct loan subsidy           1       1,066
    00.06 Interest on reestimates of the
            direct loan subsidy.............                     604
    00.07 Reestimates of guaranteed loan
            subsidy.........................                     111
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........                     107
    00.09 Administrative expenses...........         155         154         155
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         358       2,079         235
    01.12 Construction, minor projects......           3           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         361       2,081         237
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          52          52          31
    22.00 New budget authority (gross)......         361       2,060         222
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         413       2,112         253
    23.95 Total new obligations.............        -361      -2,081        -237
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          52          31          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         158         157         157
    40.35   Appropriation permanently
              reduced pursuant to H.R. 2673.          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         157         156         157
          Mandatory:

    60.00   Appropriation...................         203          15          65
    60.20   Appropriation (special fund)....           1       1,889
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         204       1,904          65
                                               ---------   ---------  ----------

    [[Page 916]]

    70.00   Total new budget authority
              (gross).......................         361       2,060         222
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          32          19          50
    73.10 Total new obligations.............         361       2,081         237
    73.20 Total outlays (gross).............        -374      -2,050        -216
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          19          50          71
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         140         131         131
    86.93 Outlays from discretionary
            balances........................          16          15          20
    86.97 Outlays from new mandatory
            authority.......................         204       1,904          65
    86.98 Outlays from mandatory balances...          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         374       2,050         216
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         361       2,060         222
    90.00 Outlays...........................         375       2,050         216
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Acquired Direct Loans.............         121         214         239
    115002Native American Direct Loans......           6           2           2
    115003Transitional Housing Direct Loan..                      26          21
    115004Vendee Direct Loans...............                     699       1,434
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         127         941       1,696
        Direct loan subsidy (in percent):
    132001Acquired Direct Loans.............        0.86       -5.12        9.18
    132002Native American Direct Loan.......        0.28       -7.75      -13.79
    132003Transitional Housing Direct Loan..        0.00       82.16       71.55
    132004Vendee Direct Loans...............        0.86       -5.12       -5.64
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.83       -2.71       -2.61
        Direct loan subsidy budget authority:
    133001Acquired Direct Loans.............           3         -47          22
    133002Native American Direct Loans......
    133003Transitional Housing Direct Loans.                      22          15
    133004Vendee Direct Loans...............          -2                     -81
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           1         -25         -44
        Direct loan subsidy outlays:
    134001Acquired Direct Loans.............           3         -47          22
    134002Native American Direct Loans......
    134003Transitional Housing Direct Loan..                       5          18
    134004Vendee Direct Loans...............          -2                     -81
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1         -42         -41
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Acquired Direct Loan..............                   1,668
    135002Native American Direct Loan.......           1           3
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           1       1,671
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Acquired Direct Loans.............        -222        -181
    137002Native American Direct Loan.......          -1          -2
    137004Vendee Direct Loans...............                     -19
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -223        -202
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Veterans Housing Benefit Program..      35,315      43,802      46,173
    215002Guaranteed Loan Sale Securities...         298         404       1,035
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......      35,613      44,206      47,208
        Guaranteed loan subsidy (in percent):
    232001Veterans Housing Benefit Program..        0.50       -0.32       -0.32
    232002Guaranteed Loan Sale Securities...        5.65        3.69        4.12
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.54       -0.28       -0.22
        Guaranteed loan subsidy budget authority:
    233001Veterans Housing Benefit Program..         183        -140        -148
    233002Guaranteed Loan Sale Securities...          17          15          43
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         200        -125        -105
        Guaranteed loan subsidy outlays:
    234001Veterans Housing Benefit Program..         197        -140        -148
    234002Guaranteed Loan Sale Securities...          17          15          43
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         214        -125        -105
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Guaranteed Loan...................                       4
    235002Guaranteed Loan Sales.............                     214
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................                     218
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Veterans Housing Benefit Program..      -1,878        -787
    237002Guaranteed Loan Sale Securities...        -159         -31
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................      -2,037        -818
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         157         156         157
    359001Outlays from new authority........         157         147         131
    ---------------------------------------------------------------------------

        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 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 these programs. The subsidy amounts are
    estimated on a net present value basis.

        Veterans housing benefit program fund program account.--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, an amount equal to 25 percent of the
    Freddie Mac conforming loan limit limitation determined under section
    305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
    1454(a)(2)) for a single family residence, as adjusted for the year
    involved.

        Native American veterans housing loan program account.--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, 2008.

        Guaranteed transitional housing loans for homeless veterans program
    account.--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. 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.

        This appropriation provides for the corporate leadership and
    operational support to VA's housing business line. Additionally, funding
    is provided for capital asset investments.

        The Housing program facilitates the extension of private capital, on
    more liberal terms than generally available to nonveterans, to: assist
    veterans and servicepersons in obtain

    [[Page 917]]

    ing housing credits; and assist veterans in retaining their homes during
    periods of temporary economic difficulty through intensive supplemental
    mortgage loan servicing.

                                    WORKLOAD

                                 [In thousands]

                                         2004 actual  2005 est.   2006 est.

      Construction and valuation........         219         210         200
      Loan processing...................         628         600         580
      Loan service and claims...........         349         340         320

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          64          68          60
    11.5    Other personnel compensation....          10          11          11
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          74          79          71
    12.1  Civilian personnel benefits.......          19          21          19
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.1  Rental payments to GSA............           7          10          11
    23.2  Rental payments to others.........           2           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           7           4           4
    25.2  Other services....................          40          34          43
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           2           2           2
    32.0  Land and structures...............           3           2           2
    41.0  Grants, subsidies, and
            contributions...................         203       1,924          80
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         361       2,081         237
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,256       1,281       1,076
    ---------------------------------------------------------------------------

                      Housing Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         122         913       1,673
    00.02 Interest on Treasury borrowing....         214         182         202
    00.03 Property sales expense............           5           5           5
    00.04 Property management/other expense.           6           4           4
    00.05 Property improvement expense......                       2           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         347       1,106       1,886
    08.01 Payment of negative subsidy to
            receipt account.................           2          47          81
    08.02 Payment of downward reestimate to
            receipt account.................         178          78
    08.04 Payment of excess interest earned
            to receipt account..............          43         122
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         223         247          81
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         570       1,353       1,967
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         220         203
    22.00 New financing authority (gross)...         553       1,150       1,967
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         773       1,353       1,967
    23.95 Total new obligations.............        -570      -1,353      -1,967
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         203
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,111        -757       1,652
    69.00 Offsetting collections (cash).....         781       2,839       1,984
    69.47 Portion applied to repay debt.....      -1,339        -932      -1,669
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................        -558       1,907         315
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         553       1,150       1,967
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          78          71          71
    73.10 Total new obligations.............         570       1,353       1,967
    73.20 Total financing disbursements
            (gross).........................        -577      -1,353      -1,991
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          71          71          47
    87.00 Total financing disbursements
            (gross).........................         577       1,353       1,991
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources:Payments from
                program account.............          -3      -1,668         -22
    88.00     Transfer of loan sales from
                LSSA........................        -297        -404      -1,034
    88.00     Reimbursements from DLFA......                     -98        -169
    88.25     Interest on uninvested funds..         -73
    88.40     Repayments of principal.......        -282        -357        -408
    88.40     Interest received on loans....         -68         -88        -104
    88.40     Fees..........................                     -15         -31
    88.40     Cash sale of properties.......         -56        -206        -213
    88.40     Other.........................          -2          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -781      -2,839      -1,984
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -228      -1,689         -17
    90.00 Financing disbursements...........        -204      -1,486           7
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         122         913       1,673
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         122         913       1,673
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,567       1,032       1,118
    1231  Disbursements: Direct loan
            disbursements...................         121         913       1,673
          Repayments:

    1251    Repayments and prepayments......        -282        -357        -408
    1253    Proceeds from loan asset sales
              to the public with recourse...        -297        -404      -1,035
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................
          Write-offs for default:

    1263    Direct loans....................          -5          -3          -4
    1264    Other adjustments, Data
              Reconciliation................         -72         -63         -50
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,032       1,118       1,294
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    299

    274

            Investments in US securities:
    1106

    Receivables, net

    2,208

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    1,567

    1,032

    1402

    Interest receivable

    28

    19

    1405

    Other

    1,217

    -680

    1499

    Net present value of assets related to direct loans

    2,812

    371

    1999

    Total assets

    3,111

    2,853

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    2,811

    2,582

    2105

    Other

    300

    271

    [[Page 918]]

    2999

    Total liabilities

    3,111

    2,853

    4999

    Total liabilities and net position

    3,111

    2,853

    -----------------------------------------------------------------------------------------------

                    Housing Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Acquisition of homes..............         918       1,917       1,908
    00.02 Losses on defaulted loans.........         284         594         591
    00.03 Interest on Treasury borrowing....           1           1           1
    00.04 Reimburse DLFA for loan sales.....         298         404       1,035
    00.05 Payment to trustee reserve........          33          27          69
    00.06 Reimburse Liquidating for
            subordination certificate.......          18          21          19
    00.07 Loan Sale Closing Costs...........          16          22          56
    00.09 Property sales expense............          70         120         120
    00.10 Property management expense.......          53         103         102
    00.11 Property improvement expense......           4          37          37
    00.12 Loans acquired....................         123         210         236
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,818       3,456       4,174
    08.01 Payment of negative subsidy to
            receipt account.................                     140         148
    08.02 Payment of downward reestimate to
            receipt account.................       1,515         573
    08.04 Payment of excess interest to
            receipt account.................         522         246
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............       2,037         959         148
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,855       4,415       4,322
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       5,962       4,273       3,501
    22.00 New financing authority (gross)...       2,166       3,643       4,910
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       8,128       7,916       8,411
    23.95 Total new obligations.............      -3,855      -4,415      -4,322
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       4,273       3,501       4,089
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       2,183       3,643       4,910
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -8
    69.47   Portion applied to repay debt...          -9
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,166       3,643       4,910
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          21          22
    73.10 Total new obligations.............       3,855       4,415       4,322
    73.20 Total financing disbursements
            (gross).........................      -3,862      -4,414      -4,326
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          21          22          18
    87.00 Total financing disbursements
            (gross).........................       3,862       4,414       4,326
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -214        -233         -43
    88.00     Recoveries from DLFA..........        -123        -888      -1,653
    88.25     Interest on uninvested funds..        -257        -210        -211
    88.40     Funding fees..................        -482        -777        -822
    88.40     Cash sale of properties.......        -762      -1,095      -1,090
    88.40     Refunds from Trust............         -31         -11         -28
    88.40     Redemption of properties and
                other.......................          -6
    88.40     Subordinate Certificate
                Deposits....................                     -21         -19
    88.45     Loan sale proceeds............        -308        -408      -1,044
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,183      -3,643      -4,910
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           8
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          -9
    90.00 Financing disbursements...........       1,679         771        -584
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................      35,315      43,802      46,173
    2132  Guaranteed loan commitments for
            loan asset sales with recourse..         298         404       1,035
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      35,613      44,206      47,208
    2199  Guaranteed amount of guaranteed
            loan commitments................      11,632      14,462      15,854
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     318,222     347,251     383,675
    2231  Disbursements of new guaranteed
            loans...........................      35,315      43,802      46,173
    2232  Guarantees of loans sold to the
            public with recourse............         149         404       1,035
    2251  Repayments and prepayments........      -5,078      -5,034      -5,538
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -283        -594        -592
    2262    Terminations for default that
              result in acquisition of
              property......................        -918      -1,917      -1,908
    2263    Terminations for default that
              result in claim payments......        -156        -237        -305
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     347,251     383,675     422,540
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     116,355     127,668     140,094
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         841       1,071       1,482
    2331    Disbursements for guaranteed
              loan claims...................         283         594         592
    2351    Repayments of loans receivable..         -52         -66         -92
    2361    Write-offs of loans receivable..         -79        -117        -146
    2364    Other adjustments, net..........          78
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,071       1,482       1,836
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    5,733

    4,276

            Investments in US securities:
    1106

    Receivables, net

    87

    296

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    840

    1,071

    1504

    Accounts receivable from foreclosed property

    5

    4

    1505

    Other Assets (LSSA Cash)

    19

    1599

    Net present value of assets related to defaulted guaranteed loans

    845

    1,094

    1999

    Total assets

    6,665

    5,666

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    6

    [[Page 919]]

    2105

    Other liabilities

    1,959

    1,158

          Non-Federal liabilities:

    2201

    Accounts payable

    27

    17

    2204

    Non-federal liabilities for loan guarantees

    4,679

    4,485

    2999

    Total liabilities

    6,665

    5,666

    4999

    Total liabilities and net position

    6,665

    5,666

    -----------------------------------------------------------------------------------------------

                           Housing Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Acquisition of homes..............          21          17          14
    00.04 Acquisition of defaulted
            guaranteed loans................           5           4           3
    00.05 Repurchase of loans sold..........           2           2           2
                                               ---------   ---------  ----------
    00.91   Total capital investments.......          28          23          19
                                               ---------   ---------  ----------
    01.00   Total capital investments.......          28          23          19
    01.02 Property management expense.......           4           3           3
    01.03 Sales expense.....................           6           6           5
    01.04 Claims processed..................          -7          -6          -6
    01.05 Other operating expenses..........           1           1           1
                                               ---------   ---------  ----------
    01.91   Total operating expenses........           4           4           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          32          27          22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          28          28
    22.00 New budget authority (gross)......          60          27          22
    22.40 Capital transfer to general fund..         -28         -28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          60          27          22
    23.95 Total new obligations.............         -32         -27         -22
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         125          82          64
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -25
    69.27   Capital transfer to general fund         -40         -55         -42
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          60          27          22
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -23           2
    73.10 Total new obligations.............          32          27          22
    73.20 Total outlays (gross).............         -33         -29         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          25
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          10          27          22
    86.98 Outlays from mandatory balances...          23           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          29          22
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                direct loan financing
                account.....................         -46         -15         -11
    88.40     Loan and other repayments.....         -27         -20         -15
    88.40     Sale of homes, cash...........         -34         -31         -24
    88.40     Interest on loans.............         -15         -13         -12
    88.40     Other revenues................          -3          -3          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -125         -82         -64
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -40         -55         -42
    90.00 Outlays...........................         -93         -53         -42
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         113          79          56
    1232  Disbursements: Purchase of loans
            assets from the public..........           2           2           2
    1251  Repayments: Repayments and
            prepayments.....................         -27         -20         -15
          Write-offs for default:

    1263    Direct loans....................          -8          -5          -4
    1264    Other adjustments, net\1\.......          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          79          56          39
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,908       3,601       2,640
    2251  Repayments and prepayments........      -1,290        -946        -694
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -4          -4          -3
    2262    Terminations for default that
              result in acquisition of
              property......................         -20         -17         -14
    2263    Terminations for default that
              result in claim payments......           7           6           6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,601       2,640       1,935
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,629       1,194         875
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         284         285         286
    2331    Disbursements for guaranteed
              loan claims...................           5           4           3
    2361    Write-offs of loans receivable..          -4          -3          -2
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         285         286         287
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4025-0-3-704

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    5

    28

            Investments in US securities:
    1106

    Receivables, net

    27

    5

    1201

    Non-Federal assets: Investments in non-Federal securities, net

    191

    186

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    184

    84

    1402

    Interest receivable

    5

    4

    1405

    Other

    -2

    1499

    Net present value of assets related to direct loans

    189

    86

    1602

    Net value of assets related to pre-1992 direct loans receivable and
    acquired defaulted guaranteed loans receivable: Interest receivable

    66

    1999

    Total assets

    412

    371

        LIABILITIES:
    2103

    Federal liabilities: Debt

    405

    364

    2207

    Non-Federal liabilities: Other

    7

    7

    2999

    Total liabilities

    412

    371

    4999

    Total liabilities and net position

    412

    371

    -----------------------------------------------------------------------------------------------

        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.

    [[Page 920]]

     Native American and Transitional Housing Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans\1\...................           6          29          23
    00.03 Interest on Treasury borrowing....           4           1           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................          10          30          25
    08.02 Payment of downward reestimate to
            receipt account.................           1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          32          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          11          32          25
    23.95 Total new obligations.............         -11         -32         -25
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          55          22           5
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           8          10          20
    68.47   Portion applied to repay debt...         -52
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         -44          10          20
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          11          32          25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  20
    73.10 Total new obligations.............          11          32          25
    73.20 Total financing disbursements
            (gross).........................         -11         -12         -28
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      20          17
    87.00 Total financing disbursements
            (gross).........................          11          12          28
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources:
                Reimbursements from NADL....          -2          -8         -18
    88.25     Interest on uninvested funds..          -3
    88.40     Non-federal sources--
                Repayments and prepayments
                of principal................          -2
    88.40     Non-Federal sources--Interest
                received on loans...........          -1          -2          -2
    88.40     Cash sale of property.........
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8         -10         -20
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           3          22           5
    90.00 Financing disbursements...........           3           2           8
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                      50          30
    1121  Limitation available from carry-
            forward.........................         100         100          73
    1121  Limitation available from carry-
            forward.........................           2           2           2
    1131  Direct loan obligations exempt
            from limitation.................           6
    1142  Unobligated direct loan limitation
            (-).............................                     -48         -28
    1143  Unobligated limitation carried
            forward (P.L. 105-368)..........        -100         -73         -52
    1143  Unobligated limitation carried
            forward (P.L. 102-389) (-)......          -2          -2          -2
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                      27          21
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           6           2           2
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          25          23          32
    1231  Disbursements: Direct loan
            disbursements...................           6           9          26
    1251  Repayments: Repayments and
            prepayments.....................          -1
    1264  Write-offs for default: Data
            Reconciliation..................          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          23          32          58
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4130-0-3-704

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106

    Federal assets: Receivables, net

    1

    3

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    25

    22

    1499

    Net present value of assets related to direct loans

    25

    22

    1901

    Other Federal assets: Other assets

    1

    5

    1999

    Total assets

    27

    30

        LIABILITIES:
          Federal liabilities:

    2103

    Federal liabilities debt

    25

    28

    2105

    Other liabilities

    2

    2

    2999

    Total liabilities

    27

    30

    4999

    Total liabilities and net position

    27

    30

    -----------------------------------------------------------------------------------------------

        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 obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in the account are means of financing and are not
    included in the budget totals.

             Vocational Rehabilitation Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4259-0-3-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           3           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           4           4
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow (indefinite)           3           4           4
          Spending authority from offsetting
              collections:

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

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

    [[Page 921]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Repayments and
              prepayments of principal......          -3          -4          -4
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4259-0-3-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           3           4           4
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           3           4           4
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           1
    1231  Disbursements: Direct loan
            disbursements...................           3           4           4
    1251  Repayments: Repayments and
            prepayments (-).................          -3          -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1           1           1
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4259-0-3-702

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106

    Federal assets: Fund assets: Fund Balance with Treasury

    4

    1

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    1

    1

    1499

    Net present value of assets related to direct loans

    1

    1

    1999

    Total assets

    5

    2

        LIABILITIES:
    2103

    Federal liabilities: Debt

    5

    2

    2999

    Total liabilities

    5

    2

    4999

    Total liabilities and net position

    5

    2

    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                   Post-Vietnam Era Veterans Education Account

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           1           1           1
        Receipts:
    02.20 Deductions from military pay,
            Post-Vietnam era veterans
            educatio........................           1
    02.40 Contributions, Post-Vietnam era
            veterans education account......                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           2           2           2
        Appropriations:
    05.00 Post-Vietnam era veterans
            education account...............          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to post-Vietnam era
            trainees........................           1           1           8
    00.03 Participant disenrollments........           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           3          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          76          73          71
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          77          74          72
    23.95 Total new obligations.............          -3          -3         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          73          71          62
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           3           3          10
    73.20 Total outlays (gross).............          -4          -3          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1           1           1
    86.98 Outlays from mandatory balances...           3           2           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           3           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           4           3           9
    ---------------------------------------------------------------------------

        This account consists of voluntary contributions by eligible
    servicepersons and matching contributions provided by the Department of
    Defense. The fund provides educational assistance payments to
    participants who entered the service after December 31, 1976, and are
    pursuing training under chapter 32, title 38, U.S.C. Section 901 is a
    non-contributory program with educational assistance provided by the
    Department of Defense. Public Law 99-576, enacted October 28, 1986,
    closed the program permanently for new enrollments effective March 31,
    1987. Public Law 106-419, enacted November 1, 2000, provides qualified
    participants in this program another opportunity (through October 31,
    2001) to convert to the All-Volunteer Force Educational Assistance
    program (Montgomery GI Bill). The estimated activity in the fund
    follows:

        CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                            [In millions of dollars]

                                         2004 actual  2005 est.   2006 est.

    Total budget authority..............          $1          $1          $1
      Servicepersons contributions......          $1          $0          $0
      Transferred from Department of
        Defense (bonus).................          $0          $1          $1
      Transferred from Department of
        Defense (matching)..............          $0          $0          $0
      Transferred from Department of
        Defense (section 901)...........          $0          $0          $0
    Total participants (end of year)....     197,774     195,738     193,257
    Total contributors (end of year)....         382         264         269
    Average contribution per contributor
    (actual dollars)....................      $1,832        $989        $923
    Number of disenrollments............       1,853       1,600       1,400
    Total refunds.......................          $3          $3          $9
    Total trainees......................         796         712       1,335
    Total trainee cost..................          $1          $1          $1
    Average cost per trainee (actual
    dollars)............................      $1,312      $1,360      $1,335
    Section 901 trainees................          32          30          28

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................           1           1           8
    44.0  Refunds...........................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           3           3          10
    ---------------------------------------------------------------------------

                      National Service Life Insurance Fund

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............       9,795       9,492       9,100
        Receipts:
    02.20 NSLI fund, Premium and other
            receipts........................         204         176         163

    [[Page 922]]

    02.40 NSLI fund, Interest...............         730         672         621
    02.41 NSLI fund, Payments from general
            and special funds...............           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         935         849         785
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      10,730      10,341       9,885
        Appropriations:
    05.00 National service life insurance
            fund............................        -934        -852        -785
    05.01 National service life insurance
            fund............................        -304        -389        -461
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -1,238      -1,241      -1,246
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       9,492       9,100       8,639
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Death claims......................         675         698         714
    00.02 Disability claims.................          11          10           9
    00.03 Matured endowments................           7           8          11
    00.04 Cash surrenders...................          28          27          27
    00.05 Dividends.........................         305         262         232
    00.06 Interest paid on dividend credits
            and deposits....................          59          56          55
    00.07 Payment to Insurance account......          22          23          23
                                               ---------   ---------  ----------
    00.91   Total operating expenses........       1,107       1,084       1,071
    02.01 Capital investment: Policy loans..          64          65          65
                                               ---------   ---------  ----------
    02.93   Total direct obligations........       1,171       1,149       1,136
    09.01 Death claims......................         264         271         273
    09.02 Disability Claims.................           4           4           4
    09.03 Matured Endowments................           3           3           4
    09.04 Cash Surrenders...................          11          11          10
    09.05 Dividends.........................         119         101          89
    09.06 Interest paid on dividend credits
            and deposits....................          23          22          20
    09.07 Payment to Insurance account......           8           9           9
                                               ---------   ---------  ----------
    09.09   Reimbursable program............         432         421         409
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,603       1,570       1,545
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   1
    22.00 New budget authority (gross)......       1,603       1,571       1,546
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,603       1,571       1,547
    23.95 Total new obligations.............      -1,603      -1,570      -1,545
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                       1           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         934         852         785
    69.00 Offsetting collections (cash).....         365         330         300
    69.26 From offsetting collections
            (unavailable balances)..........         304         389         461
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         669         719         761
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,603       1,571       1,546
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,461       1,469       1,463
    73.10 Total new obligations.............       1,603       1,570       1,545
    73.20 Total outlays (gross).............      -1,595      -1,576      -1,562
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,469       1,463       1,446
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,299       1,182       1,085
    86.98 Outlays from mandatory balances...         296         394         477
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,595       1,576       1,562
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Repayments of loans...........        -112        -105         -97
    88.40     Optional settlements..........          -2          -2          -3
    88.40     Net income offsets adjustments        -251        -223        -200
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -365        -330        -300
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,238       1,241       1,246
    90.00 Outlays...........................       1,231       1,246       1,262
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      11,246      10,949      10,554
    92.02 Total investments, end of year:
            Federal securities: Par value...      10,949      10,554      10,078
    ---------------------------------------------------------------------------
        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
    were 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

                                         2004 actual  2005 est.   2006 est.

    Number of policies..................   1,300,404   1,198,010   1,097,110
    Insurance in force (dollars in
    millions)...........................     $14,013     $13,112     $12,215

        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 $11,157 million as of September 30, 2005 to $10,631
    million as of September 30, 2006. The actuarial estimate of policy
    obligations as of September 30, 2006, totals $10,401 million, leaving a
    balance of $230 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    0100  Uninvested balance................      11,256      10,961      10,564
                                               ---------   ---------  ----------
    0199    Total balance, start of year....      11,256      10,961      10,564
        Cash income during the year:
          Current law:

            Offsetting receipts
                (proprietary):
    1220      NSLI fund, premium and other
                receipts....................         204         176         163
            Offsetting receipts
                (intragovernmental):
    1240      NSLI fund,interest............         730         672         621
    1241      NSLI fund, payments from
                general and special funds...           1           1           1
            Offsetting collections:
    1280      NSLI fund, offsetting
                collections.................         251         223         200
    1281      Offsetting collections........           2           2           3
    1282      Offsetting collections........         112         105          97
    1299    Income under present law........       1,300       1,179       1,085
                                               ---------   ---------  ----------
    3299    Total cash income...............       1,300       1,179       1,085
        Cash outgo during year:
          Current law:

    4500    National service life insurance
              fund..........................      -1,595      -1,576      -1,562
    4599    Outgo under current law (-).....      -1,595      -1,576      -1,562
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............      -1,595      -1,576      -1,562
        Unexpended balance, end of year:
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      10,961      10,564      10,087
    ---------------------------------------------------------------------------

    [[Page 923]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    33.0    Investments and loans...........          64          65          65
    42.0    Insurance claims and indemnities         721         743         761
    43.0    Interest and dividends..........         386         341         310
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,171       1,149       1,136
    99.0  Reimbursable obligations..........         432         421         409
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,603       1,570       1,545
    ---------------------------------------------------------------------------

                  United States Government Life Insurance Fund

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          39          34          29
        Receipts:
    02.40 Interest and profits on
            investments in public debt
            securities, U...................           3           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          42          37          32
        Appropriations:
    05.00 United States Government life
            insurance fund..................          -5          -5          -4
    05.01 United States Government life
            insurance fund..................          -3          -3          -3
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -8          -8          -7
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          34          29          25
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Death claims......................           4           4           4
    00.06 Interest paid on dividend credits
            and deposits....................           1           1           1
    00.07 Other Costs.......................           1           1           1
    09.01 Death Claims......................           1           1           1
    09.02 Dividends.........................           2           2           2
                                               ---------   ---------  ----------
    09.09   Reimbursable program............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           9           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           9           7
    23.95 Total new obligations.............          -9          -9          -9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           3           3           3
    69.00 Offsetting collections (cash).....           1           1
    69.26 Offsetting collections (previously
            unavailable)....................           5           5           4
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           6           6           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           9           9           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          16          15
    73.10 Total new obligations.............           9           9           9
    73.20 Total outlays (gross).............         -10         -10          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          16          15          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           4           4           3
    86.98 Outlays from mandatory balances...           6           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          10           9
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           8           8           7
    90.00 Outlays...........................           9           9           9
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          56          50          44
    92.02 Total investments, end of year:
            Federal securities: Par value...          50          44          44
    ---------------------------------------------------------------------------
        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

                                         2004 actual  2005 est.   2006 est.
    Number of policies..................      10,390       9,040       7,760
    Insurance in force (dollars in
    millions)...........................         $33         $28         $24

        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 $46 million
    as of September 30, 2005, to $44 million as of September 30, 2006, as an
    increasing number of policies mature through death or disability. The
    actuarial evaluation of policy obligations as of September 30, 2006,
    totals $40 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    0100  Uninvested balance................          56          50          44
                                               ---------   ---------  ----------
    0199    Total balance, start of year....          56          50          44
        Cash income during the year:
          Current law:

            Offsetting receipts
                (intragovernmental):
    1240      Interest and profits on
                investments in public debt
                securities, USGLI, VA.......           3           3           3
            Offsetting collections:
    1280      Offsetting collections, USGLI.           1           1
    1299    Income under present law........           4           4           3
                                               ---------   ---------  ----------
    3299    Total cash income...............           4           4           3
        Cash outgo during year:
          Current law:

    4500    United States government life
              insurance fund................         -10         -10          -9
    4599    Outgo under current law (-).....         -10         -10          -9
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............         -10         -10          -9
        Unexpended balance, end of year:
                                               ---------   ---------  ----------
    8799    Total balance, end of year......          50          44          38
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    42.0    Insurance claims and indemnities           4           4           4
    43.0    Interest and dividends..........           2           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............           6           6           6
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9           9           9
    ---------------------------------------------------------------------------

    [[Page 924]]

                      Veterans Special Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          67          76          84
    09.02 Cash surrenders...................           4           4           4
    09.03 Dividends.........................          84          81          77
    09.04 All other.........................          38          27          30
    09.05 Payments to Insurance account.....           5           6           6
    09.06 Capital investment................          14          14          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         212         208         215
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,540       1,556       1,569
    22.00 New budget authority (gross)......         228         221         216
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,768       1,777       1,785
    23.95 Total new obligations.............        -212        -208        -215
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,556       1,569       1,570
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         228         221         216
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         312         333         346
    73.10 Total new obligations.............         212         208         215
    73.20 Total outlays (gross).............        -191        -195        -203
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         333         346         358
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         170         191         200
    86.98 Outlays from mandatory balances...          21           4           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         191         195         203
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -141        -139        -136
    88.40     Interest on loans.............          -5          -5          -5
    88.40     Insurance premiums earned.....         -63         -60         -58
    88.40     Repayments of loans...........         -19         -17         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -228        -221        -216
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -37         -26         -13
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       1,850       1,888       1,914
    92.02 Total investments, end of year:
            Federal securities: Par value...       1,888       1,914       1,926
    ---------------------------------------------------------------------------
        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

                                         2004 actual  2005 est.   2006 est.
    Number of policies..................     213,454     206,130     198,180
    Insurance in force (dollars in
    millions)...........................      $2,525      $2,466      $2,404

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          14          14          14
    42.0  Insurance claims and indemnities..          90          91          97
    43.0  Interest and dividends............         108         103         104
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         212         208         215
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

               [general operating expenses] General Administration

        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, $1,324,753,000: Provided, That expenses for
    services and assistance authorized under 38 U.S.C. 3104(a)(1), (2), (5),
    and (11) that the Secretary determines are necessary to enable entitled
    veterans: (1) to the maximum extent feasible, to become employable and
    to obtain and maintain suitable employment; or (2) to achieve maximum
    independence in daily living, shall be charged to this account: Provided
    further, That the Veterans Benefits Administration shall be funded at
    not less than $1,027,193,000: Provided further, That of the funds made
    available under this heading, not to exceed $66,000,000 shall be
    available for obligation until September 30, 2006: Provided further,
    That from the funds made available under this heading, the Veterans
    Benefits Administration may purchase up to two passenger motor vehicles
    for use in operations of that Administration in Manila, Philippines].
    $330,466,000, including no more than $5,577,000 for construction.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2005.)
        [For an additional amount for ``General operating expenses'', for
    expenses related to recent natural disasters, $545,000, to remain
    available until September 30, 2005: Provided, That the amounts provided
    herein are designated as an emergency requirement pursuant to section
    402 of S. Con. Res. 95 (108th Congress), as made applicable to the House
    of Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                         [construction, major projects]

        [For constructing, altering, extending and improving any of the
    facilities including parking projects under the jurisdiction or for the
    use of the Department of Veterans Affairs, or for any of the purposes
    set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109,
    8110, and 8122 of title 38, United States Code, including planning,
    architectural and engineering services, maintenance or guarantee period
    services costs associated with equipment guarantees provided

    [[Page 925]]

    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 more than the amount set forth in 38
    U.S.C. 8104(a)(3)(A) or where funds for a project were made available in
    a previous major project appropriation, $458,800,000, to remain
    available until expended, of which $370,709,000 shall be for Capital
    Asset Realignment for Enhanced Services (CARES) activities; and of which
    $8,091,000 shall be to make reimbursements as provided in 41 U.S.C. 612
    for claims paid for contract disputes: Provided, 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 2005, for each approved project
    (except those for CARES activities referenced above) shall be obligated:
    (1) by the awarding of a construction documents contract by September
    30, 2005; and (2) by the awarding of a construction contract by
    September 30, 2006: 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.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2005.)

                         [construction, minor projects]

        [For constructing, altering, extending, and improving any of the
    facilities including parking projects 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 equal to or less than the amount set
    forth in 38 U.S.C. 8104(a)(3)(A), $230,779,000, to remain available
    until expended, along with unobligated balances of previous
    ``Construction, minor projects'' appropriations which are hereby made
    available for any project where the estimated cost is equal to or less
    than the amount set forth in 38 U.S.C. 8104(a)(3)(A), of which
    $182,100,000 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, 2005.)
        [For an additional amount for ``Construction, minor projects'', for
    expenses related to recent natural disasters, $36,343,000, to remain
    available until expended: Provided, That the amounts provided herein are
    designated as an emergency requirement pursuant to section 402 of S.
    Con. Res. 95 (108th Congress), as made applicable to the House of
    Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.11 General administration............         275         309         324
    00.12 Major Construction................                       4           2
    00.30 Minor Construction................           5           5           4
                                               ---------   ---------  ----------
    01.00   Total Direct Program............         280         318         330
    09.04 Other reimbursable programs.......         251         304         347
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         251         304         347
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         531         622         677
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          80          17
    22.00 New budget authority (gross)......         531         605         677
    22.21 Unobligated balance of FY 2003
            emergency supp transferred to
            Compensation....................         -63
    22.30 Expired unobligated balance
            transfer to unexpired account...           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         551         622         677
    23.95 Total new obligations.............        -531        -622        -677
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         282         303         330
    40.35   Appropriation permanently
              reduced pursuant to P.L. 108-7          -2
    40.35   Appropriation permanently
              reduced pursuant to P.L. 108-
              447...........................                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         280         301         330
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         251         304         347
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         531         605         677
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         180         186         212
    73.10 Total new obligations.............         531         622         677
    73.20 Total outlays (gross).............        -522        -596        -666
    73.40 Adjustments in expired accounts
            (net)...........................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         186         212         223
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         352         543         611
    86.93 Outlays from discretionary
            balances........................         170          53          55
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         522         596         666
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -251        -304        -347
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         280         301         330
    90.00 Outlays...........................         271         292         319
    ---------------------------------------------------------------------------
        \1\ The total cost of administering veterans insurance programs is
    funded through direct appropriations to this account and through
    reimbursements from the insurance trust fund.

        This appropriation provides for the Department's top management
    direction and administrative support, including data processing, fiscal,
    personnel, and legal services.

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

        Additionally, funding is provided for capital asset investments.

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         155         175         183

    [[Page 926]]

    11.5      Other personnel compensation..           6           8           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         161         183         190
    12.1    Civilian personnel benefits.....          37          43          44
    21.0    Employee travel.................           4           4           5
    23.1    Rental payments to GSA..........          17          18          21
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          44          52          53
    26.0    Supplies and materials..........           3           2           3
    31.0    Equipment.......................           5           3           4
    32.0    Land and structures.............           5           9           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............         280         318         330
    99.0  Reimbursable obligations..........         251         304         347
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         531         622         677
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-700      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment\1\...................       1,939       2,073       2,107
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         492         623         675
    ---------------------------------------------------------------------------
        \1\ Reflects FTE treated as reimbursements in all years and the
    effects of Credit Reform, per P.L. 101-508.

                           Office of Inspector General

        For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act of 1978, as
    amended, [$69,711,000, to remain available until September 30, 2006]
    $70,906,000, of which not to exceed $732,000 is for construction.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Direct program....................          64          71          70
    01.03 Construction, minor projects......                       1           1
                                               ---------   ---------  ----------
    01.92   Total direct program............          64          72          71
    09.01 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          67          75          74
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           2
    22.00 New budget authority (gross)......          65          73          74
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          69          75          74
    23.95 Total new obligations.............         -67         -75         -74
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          62          71          71
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          62          70          71
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          65          73          74
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          14          19
    73.10 Total new obligations.............          67          75          74
    73.20 Total outlays (gross).............         -62         -70         -72
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14          19          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          52          60          61
    86.93 Outlays from discretionary
            balances........................          10          10          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          62          70          72
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          62          70          71
    90.00 Outlays...........................          59          67          69
    ---------------------------------------------------------------------------

        This appropriation provides Department-wide audit, investigation,
    and health care 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 criminal activity,
    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 criminal and administrative
    investigations of improper and illegal activities involving VA programs,
    personnel, beneficiaries, and other third parties. The health care
    inspection function performs legislatively mandated medical care quality
    assurance reviews and oversight. The support function provides office
    administration.

        Additionally, funding is provided for capital asset investments.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          38          42          43
    12.1    Civilian personnel benefits.....          10          12          11
    21.0    Employee Travel.................           4           4           4
    23.1    Rental payments to GSA..........           3           4           4
    25.2    Other services..................           5           8           7
    31.0    Equipment.......................           3           1           1
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          64          72          71
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          67          75          74
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         409         443         443
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          25          25          25
    ---------------------------------------------------------------------------

                                   Supply Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program-COGS-
            Merchandizing...................       2,018       2,238       2,492
    09.02 Reimbursable program-Other-
            Operations......................          76          87          82
    09.03 Reimbursable program-COGS-Printing
            and Publications................           8           8           8
    09.04 Reimbursable program-Other........           2           2           2
    09.05 Reimbursable program-Equipment-
            Procurement Services and
            Distribution....................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,107       2,338       2,587
    ----------------------------------------------------------------------------

    [[Page 927]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         478         278         278
    22.00 New budget authority (gross)......       1,907       2,338       2,587
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,385       2,616       2,865
    23.95 Total new obligations.............      -2,107      -2,338      -2,587
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         278         278         278
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       1,805       2,338       2,587
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         102
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       1,907       2,338       2,587
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         298         643         643
    73.10 Total new obligations.............       2,107       2,338       2,587
    73.20 Total outlays (gross).............      -1,659      -2,338      -2,587
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -102
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         643         643         643
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,659       2,338       2,587
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........      -1,805      -2,338      -2,587
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -102
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -146
    ---------------------------------------------------------------------------

        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 2006, Supply Fund sales are
    estimated to reach $1.01 billion. Average inventory needed to support
    those sales will be $35 million.

        Operating results.--The Fund operated at a profit of $17.8 million
    in 2004. The new total of retained earnings is $97 million. Operating
    expense as related to sales was 6 percent.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          30          33          33
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          31          34          34
    12.1  Civilian personnel benefits.......           7           7           7
    21.0  Travel and transportation of
            persons.........................           4           5           5
    22.0  Transportation of things..........           5           5           5
    23.1  Rental payments to GSA............           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           3           3
    24.0  Printing and reproduction.........           8           8           8
    25.1  Advisory and assistance services..       1,032       1,126       1,215
    26.0  Supplies and materials............         530         598         675
    31.0  Equipment.........................         486         550         633
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,107       2,338       2,587
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         421         451         451
    ---------------------------------------------------------------------------

                                 Franchise Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         232         332         369
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         232         332         369
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          73          76          76
    22.00 New budget authority (gross)......         235         332         369
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         308         408         445
    23.95 Total new obligations.............        -232        -332        -369
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          76          76          76
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         235         332         369
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          20          20
    73.10 Total new obligations.............         232         332         369
    73.20 Total outlays (gross).............        -230        -332        -369
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          20          20          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         230         332         369
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -235        -332        -369
    ----------------------------------------------------------------------------

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

        VA was chosen as a pilot Franchise Fund agency under the Government
    Management and Reform Act, P.L. 103-356, of 1994. This budget's general
    provisions extends the authority under that Act. Established in 1997,
    administrative services included in the Franchise Fund are financed on a
    fee-for-service basis rather than through VA's General Administration
    appropriation. VA Enterprise Centers are the lines of business within
    the VA Franchise Fund and are expected to have net billings of about
    $369 million and employ 1,013.

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          44          51          60
    12.1  Civilian personnel benefits.......          10           9          11
    21.0  Travel and transportation of
            persons.........................           2           3           3
    23.1  Rental payments to GSA............           5           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          32          39          40
    24.0  Printing and reproduction.........           2           6           6
    25.2  Other services....................         119         206         233
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................          16          14          12
                                               ---------   ---------  ----------

    [[Page 928]]

    99.9    Total new obligations...........         232         332         369
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         705         832       1,013
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      36-247300  Contributions from military
        personnel, Veteran's Educational
        Assistance Act of 1984..............         211         212         212
      36-273330  Housing downward
        reestimates.........................       2,259       1,020
      36-275510  Housing negative subsidies.           3         187         229
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       2,473       1,419         441
    ---------------------------------------------------------------------------

                            Administrative Provisions

                          (including transfer of funds)

        [Sec. 101. Any appropriation for fiscal year 2005 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 [2005] 2006 for salaries and expenses
    shall be available for services authorized by 5 U.S.C. 3109 hire of
    passenger motor vehicles; lease of a facility or land or both; and
    uniforms or allowances therefore, as authorized by 5 U.S.C. 5901-5902.
        [Sec. 103. No appropriations in this Act for the Department of
    Veterans Affairs (except the appropriations for ``Construction, major
    projects'', ``Construction, minor projects'', and the ``Parking
    revolving fund'') shall be available for the purchase of any site for or
    toward the construction of any new hospital or home.]
        Sec. [104.] 102. 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 services'' 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 2005 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 2004.]
        Sec. [106.] 103. Appropriations accounts available to the Department
    of Veterans Affairs for fiscal year [2005] 2006 shall be available to
    pay prior year obligations of corresponding prior year appropriations
    accounts resulting from title X of the Competitive Equality Banking Act,
    Public Law 100-86, except that if such obligations are from trust fund
    accounts they shall be payable from ``Compensation and pensions''.
        Sec. [107.] 104. Notwithstanding any other provision of law, during
    fiscal year [2005] 2006, 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 [2005] 2006 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 [2005] 2006 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.] 105. 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, [2005] 2006: 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,
    [2005] 2006.
        Sec. [109.] 106. 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.] 107. Funds available in any Department of Veterans
    Affairs appropriation for fiscal year [2005] 2006 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 [$29,318,000] $29,758,000
    for the Office of Resolution Management and $3,059,000 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. No appropriations in this Act for the Department of
    Veterans Affairs shall be available 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 the Committees on Appropriations of the
    Congress approve within 30 days following the date on which the report
    is received.]
        Sec. [112.] 108. No funds of the Department of Veterans Affairs
    shall be available for hospital care, nursing home care, or medical
    services provided to any person under chapter 17 of title 38, United
    States Code, for a non-service-connected disability described in section
    1729(a)(2) of such title, unless that person has disclosed to the
    Secretary of Veterans Affairs, in such form as the Secretary may
    require, current, accurate third-party reimbursement information for
    purposes of section 1729 of such title: Provided, That the Secretary may
    recover, in the same manner as any other debt due the United States, the
    reasonable charges for such care or services from any person who does
    not make such disclosure as required: Provided further, That any amounts
    so recovered for care or services provided in a prior fiscal year may be
    obligated by the Secretary during the fiscal year in which amounts are
    received.
        [Sec. 113. Of the amounts provided in this Act, $25,000,000 shall be
    for information technology initiatives to support the enterprise
    architecture of the Department of Veterans Affairs.]
        Sec. [114.] 109. None of the funds made available to the Department
    in this Act, or any other Act, may be used to implement sections 2 and 5
    of Public Law 107-287 and section 303 of Public Law 108-422.
        [Sec. 115. (a) Hereafter receipts that would otherwise be credited
    to the accounts listed in subsection (c) shall be deposited into the
    Medical Care Collections Fund, and shall be transferred to and merged
    with the ``Medical services'' account, in fiscal year 2005 and
    subsequent years, to remain available until expended, to carry out the
    purposes of the ``Medical services'' account.
        (b) The unobligated balances in the accounts listed in subsection
    (c), shall be transferred to and merged with the ``Medical services''
    account in fiscal year 2005 and subsequent years, and remain available
    until expended, to carry out the purposes of the ``Medical services''
    account: Provided, That the obligated balances in these accounts may be
    transferred to the ``Medical services'' account at the discretion of the
    Secretary of Veterans Affairs and shall remain available until expended.
        (c) Veterans Extended Care Revolving Fund; Medical Facilities
    Revolving Fund; Special Therapeutic and Rehabilitation Fund; Nursing

    [[Page 929]]

    Home Revolving Fund; Veterans Health Services Improvement Fund; and
    Parking Revolving Fund.]
        [Sec. 116. (a) 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.
    Notwithstanding section 3302(b) of title 31, United States Code, 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 ``Medical services'' and the purposes of
    paying a contractor a percent of the amount collected as a result of an
    audit carried out by the contractor.
        (b) All amounts so collected under subsection (a) with respect to a
    designated health care region (as that term is defined in section
    1729A(d)(2) of title 38, United States Code) shall be allocated, net of
    payments to the contractor, to that region.]
        [Sec. 117. Notwithstanding any other provision of law, at the
    discretion of the Secretary of Veterans Affairs, proceeds or revenues
    derived from enhanced-use leasing activities (including disposal) that
    are deposited into the Medical Care Collections Fund may be transferred
    and merged with ``Construction, major projects'' and ``Construction,
    minor projects'' accounts and be used for construction (including site
    acquisition and disposition), alterations and improvements of any
    medical facility under the jurisdiction or for the use of the Department
    of Veterans Affairs. Such sums as realized are in addition to the amount
    provided for in ``Construction, major projects'' and ``Construction,
    minor projects''.]
        Sec. [118.] 110. Amounts made available under ``Medical services''
    are available--
            (1) for furnishing recreational facilities, supplies, and
        equipment; and
            (2) for funeral expenses, burial expenses, and other expenses
        incidental to funerals and burials for beneficiaries receiving care
        in the department.
        Sec. 111. Of the amounts in this title provided for operating
    expenses in the Department's appropriations accounts, except for the
    ``Medical Services'', ``Medical Administration'', ``Medical
    Facilities'', and ``Medical and Prosthetic Research'' accounts, five
    percent is available until September 30, 2007.
        Sec. 112. In order to correct for assumptions used to restructure
    the VA's budget request and subject to subsection (d), transfers are
    authorized to be made between accounts within each subsection. Transfers
    shall become effective five days after notice thereof is transmitted to
    the Appropriations Committees of the House and Senate:
        (a) appropriations available for fiscal years 2006 and 2007 for
    operating expenses in the ``Disability Compensation Administration'',
    ``Pensions Administration'', ``Burial Administration'', ``Insurance
    Administration'', ``Education Administration'', and ``Vocational
    Rehabilitation and Employment Administration'' accounts;
        (b) appropriations available for fiscal years 2006 and 2007 for
    purposes of construction (non-grants) in the ``Disability Compensation
    Administration'', ``Pensions Administration'', ``Insurance
    Administration'', ``Education Administration'', ``Vocational
    Rehabilitation and Employment Administration'', and ``Housing''
    accounts;
        (c) appropriations available for operating expenses in the ``Medical
    Services'', ``Medical Administration'', ``Medical Facilities'', and
    ``Medical and Prosthetic Research'' accounts;
        (d) the total amount transferred from or into any single account may
    not exceed twenty percent in 2006 and five percent in 2007.
        Sec. 113. Appropriations available to the Department of Veterans
    Affairs for construction are available until expended.
        Sec. 114. Construction funds (non-grants) provided in this title are
    available for constructing, altering, extending and improving any of the
    facilities under the jurisdiction of, or for the use of, the Department
    of Veterans Affairs, or for any of the purposes set forth in sections
    316, 2404, 2406, 8102 (excluding lease of a facility or land or both),
    8103, 8106, 8108, 8109, 8110, 8122, and 8162 of title 38, United States
    Code, as appropriate to each account, 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. Such construction funds are
    also available for: (1) repairs to any of the nonmedical facilities
    under the jurisdiction of, or for the use of the Department, which are
    necessary because of loss or damage caused by any natural disaster; and
    (2) temporary measures necessary to prevent or to minimize further loss
    by such causes. Except for advance planning activities, including needs
    assessments, other capital asset management related activities,
    investment strategy studies, design of projects and planning and design
    activities, including needs assessments, none of the funds appropriated
    for construction shall be used for any project where the estimated cost
    is $7,000,000 or more, pursuant to section 8104 of title 38, U.S.C.
    Construction funds provided in each account for fiscal year 2006 for
    projects where the estimated cost is $7,000,000 or more, shall be
    obligated: (1) by the awarding of construction documents contract by
    September 30, 2006; and (2) by the awarding of a design-build or
    construction contract by September 30, 2007. The Secretary shall
    promptly report in writing to the Committees on Appropriations any
    approved construction project of $7,000,000 or more in which obligations
    are not incurred within the time limitations established above.
        Sec. 115. Section 1703(d)(2) of title 38, United States Code, is
    amended by striking ``shall be available for the purposes'' and
    inserting ``shall be available, without fiscal year limitation, for the
    purposes''.
        Sec. 116. At the discretion of the Secretary of Veterans Affairs,
    proceeds or revenues derived from enhanced-use leasing activities that
    are deposited into the Medical Care Collections Fund may be transferred
    to and merged with the ``Medical Facilities'' account, to be used for
    construction (including site acquisition and disposition), alterations
    and improvements of any medical facility under the jurisdiction of, or
    for the use of the Department of Veterans Affairs. Such sums as realized
    are in addition to the amount provided for in such account.
        Sec. 117. The balances in the ``Construction, Major Projects'',
    ``Construction, Minor Projects'', ``Grants for Construction of State
    Extended Care Facilities'', and the ``Department of Veterans Affairs
    Capital Asset Fund'' shall be transferred to each appropriation provided
    in this Act as appropriate, and shall remain available under the terms
    under which originally appropriated.
        Sec. 118. Appropriations available to the Department of Veterans
    Affairs for fiscal year 2006 for ``Disability Compensation Benefits,''
    ``Pensions Benefits,'' ``Education Benefits,'' ``Vocational
    Rehabilitation and Employment Benefits,'' and ``Insurance Benefits''
    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 2005.
        [Sec. 119. That such sums as may be deposited to the Medical Care
    Collections Fund pursuant to 38 U.S.C. 1729A may be transferred to
    ``Medical services'', to remain available until expended for the
    purposes of this account.]
        [Sec. 120. Amounts made available for fiscal year 2005 under the
    ``Medical services'', ``Medical administration'', and ``Medical
    facilities'' accounts may be transferred between the accounts to the
    extent necessary to implement the restructuring of the Veterans Health
    Administration accounts after notice of the amount and purpose of the
    transfer is provided to the Committees on Appropriations of the Senate
    and House of Representatives and a period of 30 days has elapsed:
    Provided, That the limitation on transfers is 20 percent in fiscal year
    2005.]
        [Sec. 121. Any appropriation for fiscal year 2005 for the Veterans
    Benefits Administration made available under the heading ``General
    operating expenses'' may be transferred to the ``Veterans Housing
    Benefit Program Fund Program Account'' for the purpose of providing
    funds for the nationwide property management contract if the
    administrative costs of such contract exceed $8,800,000 in the budget
    year.]
        [Sec. 122. The Department of Veterans Affairs is authorized to
    expend such sums as are available in the unobligated balances of the
    funds originally appropriated to ``Medical Care'' for emergency expenses
    resulting from the January 1994 earthquake in southern California in
    Public Law 103-211, Emergency Supplemental Appropriations Act of 1994,
    for the same purposes of the ``Medical Services'' account, to remain
    available until expended.]
        [Sec. 123. Notwithstanding any other provision of law, the Secretary
    of Veterans Affairs (Secretary) shall allow veterans eligible under
    existing VA Medical Care requirements and who reside in Alaska to obtain
    medical care services from medical facilities supported by the Indian
    Health Services or tribal organizations. The Secretary shall: (1) limit
    the application of this provision to rural Alaskan veterans in areas
    where an existing VA facility or VA-contracted service is unavailable;
    (2) require participating veterans and facilities to comply with all
    appropriate rules and regulations, as established by the Secretary; (3)
    require this provision to be consistent with CARES; and (4) result in no
    additional cost to the Department of Veterans Affairs or the Indian
    Health Service.]
        [Sec. 124. Of the funds made available under the heading
    ``Construction, minor projects'' in chapter 11 of division B of the
    Military

    [[Page 930]]

    Construction Appropriations and Emergency Hurricane Supplemental
    Appropriations Act, 2005, Public Law 108-324, the Secretary of Veterans
    Affairs may transfer up to $19,800,000 to the ``Medical Facilities''
    account for non-recurring maintenance expenses related to hurricane and
    tropical storm damage.] (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2005.)

                          TITLE IV--GENERAL PROVISIONS

        Sec. 401. 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. 402. 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 Officer or is specifically exempt by law from such
        audit.]
        [Sec. 403. None of the funds provided in this Act to any department
    or agency may be obligated or expended for: (1) 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; or (2) to provide a cook,
    chauffeur, or other personal servants to any officer or employee of such
    department or agency.]
        [Sec. 404. 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. [405.] 402. 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. [406.] 403. 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. [407.] 404. Except as otherwise provided under existing law, or
    under an existing Executive order issued pursuant to an existing law,
    the obligation or expenditure of any appropriation under this Act for
    contracts for any consulting service shall be limited to contracts which
    are: (1) a matter of public record and available for public inspection;
    and (2) thereafter included in a publicly available list of all
    contracts entered into within 24 months prior to the date on which the
    list is made available to the public and of all contracts on which
    performance has not been completed by such date. The list required by
    the preceding sentence shall be updated quarterly and shall include a
    narrative description of the work to be performed under each such
    contract.
        Sec. [408.] 405. 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. [409.] 406. Such sums as may be necessary for fiscal year
    [2005] 2006 pay raises for programs funded by this Act shall be absorbed
    within the levels appropriated in this Act.
        Sec. [410.] 407. (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 Congress.
        Sec. [411.] 408. 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. [412.] 409. 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. [413.] 410. 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
    Congress, except in presentation to Congress itself.
        Sec. [414.] 411. 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. [415.] 412. None of the funds made available in this Act may be
    transferred to any department, agency, or instrumentality of the United
    States Government except pursuant to a transfer made by, or transfer
    authority provided in, this Act or any other appropriation Act.
        Sec. [416.] 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. 417. Section 313 of the National Aeronautics and Space Act of
    1958, as amended, is further amended in subsection (a)--
            (1) by striking ``2004'' and inserting ``2005''; and
            (2) by striking ``Space flight capabilities'' and inserting
        ``Exploration capabilities''.]
        [Sec. 418. None of the funds made available in this Act may be used
    to implement any policy prohibiting the Directors of the Veterans
    Integrated Service Networks from conducting outreach or marketing to
    enroll new veterans within their respective Networks.]
        [Sec. 419. It is the sense of Congress that no veteran should wait
    more than 30 days for an initial doctor's appointment.]
        [Sec. 420. None of the funds made available to NASA in this Act may
    be used for voluntary separation incentive payments as provided for in
    subchapter II of chapter 35 of title 5, United States Code, unless the
    Administrator of NASA has first certified to Congress that such payments
    would not result in the loss of skills related to the safety of the
    Space Shuttle or the International Space Station or to the conduct of
    independent safety oversight in the National Aeronautics and Space
    Administration.]
        [Sec. 421. (a) Treatment of Pioneer Homes in Alaska as State Home
    for Veterans.--For this fiscal year and each fiscal year hereafter, the
    Secretary of Veterans Affairs may--
            (1) treat the Pioneer Homes in the State of Alaska collectively
        as a single State home for veterans for purposes of section 1741 of
        title 38, United States Code; and
            (2) make per diem payments to the State of Alaska for care
        provided to veterans in the Pioneer Homes in accordance with the
        provisions of that section.
        (b) Treatment Notwithstanding Non-Veteran Residency.--The Secretary
    may treat the Pioneer Homes as a State home under subsection (a)
    notwithstanding the residency of non-veterans in one or more of the
    Pioneer Homes.

    [[Page 931]]

        (c) Pioneer Homes Defined.--In this section, the term ``Pioneer
    Homes'' means the six regional homes in the State of Alaska known as
    Pioneer Homes, which are located in the following:
            (1) Anchorage, Alaska.
            (2) Fairbanks, Alaska.
            (3) Juneau, Alaska.
            (4) Ketchikan, Alaska.
            (5) Palmer, Alaska.
            (6) Sitka, Alaska.
        (d) Limitation.--The number of beds occupied by veterans
    collectively in the six Pioneer Homes listed under subsection (c) for
    which per diem would be paid under this authority shall not exceed the
    number of veterans in State beds that otherwise would be permitted in
    Alaska under the Department of Veterans Affairs State home regulations
    governing the number of beds per veteran population.]
        [Sec. 422. Of the amounts available to the National Aeronautics and
    Space Administration, such sums as may be necessary for the benefit of
    the families of the astronauts who died on board the Space Shuttle
    Columbia on February 1, 2003, are available under the terms of section
    203(c)(13) of the National Aeronautics and Space Act of 1958, as
    amended, independent of the limitations established therein.]
        [Sec. 423. Section 428 of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2004 is amended--
            (1) in subsection (c), by inserting ``new'' before ``spark
        ignition engines''; and
            (2) in subsection (d), by striking ``The prohibition in
        subsection (e)'' and inserting ``The prohibition in subsection
        (c)''.]
        [Sec. 424. In addition to the amounts otherwise provided in this or
    any other Act for fiscal year 2005, for ``Department of Housing and
    Urban Development, Community Development Fund'', $31,000,000 to remain
    available until expended for a grant to The Hudson River Park Trust for
    planning, design and reconstruction of Pier 86 in New York City.]
        [Sec. 425. From within funds available to the Secretary of Veterans
    Affairs, $200,000 shall be made available until expended to Eric and
    Brian Simon of Minneapolis, Minnesota, to be divided evenly between the
    individuals.]
        [Sec. 426. (a) Waiver of Requirements.--Subject to subsection (b),
    the limitation on the release of funds in section 104(g)(2) of the
    Housing and Community Development Act of 1974 (42 U.S.C. 5304) shall not
    apply to the Village of Chickasaw Sewer Collection and Treatment System,
    located in the Village of Chickasaw, Mercer County, Ohio.
        (b) Applicability.--Subsection (a) only applies to the grant that
    was awarded to the Village of Chickasaw (Ohio Small Cities CDBG Grant #
    C-W-03-283-1), for the period beginning September 1, 2003, and ending
    October 31, 2005, and in the amount of $600,000.
        (c) Environmental Reviews.--Notwithstanding the provisions of this
    section, the Village of Chickasaw must complete all appropriate
    environment reviews in a timely manner and to the satisfaction of the
    State of Ohio.]
        Sec. 414. Notwithstanding 40 U.S.C. 524, 571, and 572, the
    Administrator of the National Aeronautics and Space Administration may
    sell the National Aeronautics and Space Administration-owned property on
    the Camp Parks Military Reservation, Alameda County, California, and
    credit the net proceeds of such sales as offsetting collections to its
    Exploration, science and aeronautics account. Such funds shall be
    available until expended; to be used to replace the facilities at Camp
    Parks that are still required, to improve other National Aeronautics and
    Space Administration-owned facilities, or both. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2005.)