[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.)