[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 2008


 
                     DEPARTMENT OF VETERANS AFFAIRS

    The 2008 budget provides $41,769 million in gross discretionary 
funding for veterans health, benefits, and other services, including 
$39,417 million in net discretionary budget authority and $2,352 million 
in anticipated medical collections. The 2008 budget estimates reflect 
the reorganization of Information Technology (IT) functions within VA to 
improve the management of the IT program. The reorganization 
consolidates all IT personnel performing operations and maintenance 
functions throughout VA under the control of the VA Chief Information 
Officer. Based on the funding authority under the continuing resolution, 
this IT realignment is not reflected in the 2007 estimates.

                                


 
                     VETERANS HEALTH ADMINISTRATION

                              Federal 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 38 U.S.C. 
1705(a), including care and treatment in facilities not under the 
jurisdiction of the Department, and including medical supplies and 
equipment, food services, and salaries and expenses of health-care 
employees hired under title 38, United States Code, and aid to State 
homes as authorized by 38 U.S.C. 1741; $27,167,671,000, plus 
reimbursements of which not to exceed $1,100,000,000 shall be available 
until September 30, 2009: Provided further, That, notwithstanding 38 
U.S.C. 1705, 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 38 U.S.C. 1710, 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 notwithstanding 38 U.S.C. 1710, 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: Provided further, That for the Department of Defense/
Department of Veterans Affairs Health Care Sharing Incentive Fund, as 
authorized by 38 U.S.C. 8111(d), a minimum of $15,000,000, to remain 
available until expended, for any purpose authorized by 38 U.S.C. 8111.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............         156         169         169
                                           ---------   ---------  ----------
01.99 Balance, start of year............         156         169         169
    Receipts:
02.20 Pharmaceutical co-payments, MCCF..         723         842         915
02.21 Enhanced-use lease proceeds, MCCF.           3           1           1
02.22 First party collections, MCCF.....         136         138         138
02.23 Third party collections, MCCF.....       1,096       1,173       1,254
02.24 Parking fees, MCCF................           3           3           3
02.25 Compensated work therapy, MCCF....          40          36          36
02.26 MCCF, Long-term care copayments...           4           4           4
02.40 Payments from compensation and 
        pension, MCCF...................           2           1           1
                                           ---------   ---------  ----------
02.99   Total receipts and collections..       2,007       2,198       2,352
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       2,163       2,367       2,521
    Appropriations:
05.00 Medical services..................      -1,994      -2,198      -2,352
                                           ---------   ---------  ----------
07.99 Balance, end of year..............         169         169         169
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Acute hospital care...............       4,906       6,600       6,858
00.02 Rehabilitative care...............         313         355         365
00.03 Psychiatric care..................         796         962       1,014
00.04 Nursing home care.................       2,265       2,450       2,590
00.05 Subacute care.....................          91         122         129
00.06 Residential care..................         212         256         265
00.07 Outpatient care...................      14,469      14,116      16,819
00.08 CHAMPVA...........................         631         765         913
                                           ---------   ---------  ----------
00.91   Total operating expenses........      23,683      25,626      28,953
01.01 Acute hospital care...............         223          23         126
01.02 Rehabilitative care...............          17           2           9
01.03 Psychiatric care..................          36           4          20
01.04 Nursing home care.................          82           8          47
01.05 Subacute care.....................           5           1           3
01.06 Residential care..................           8           1           5
01.07 Outpatient care...................         631          63         357
                                           ---------   ---------  ----------
01.91   Total capital investment........       1,002         102         567
                                           ---------   ---------  ----------
02.93   Total direct program............      24,685      25,728      29,520
09.01 Reimbursable program..............         148         156         163
                                           ---------   ---------  ----------
10.00   Total new obligations...........      24,833      25,884      29,683
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         949         401
22.00 New budget authority (gross)......      24,287      25,483      29,683
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      25,236      25,884      29,683
23.95 Total new obligations.............     -24,833     -25,884     -29,683
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         401
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................      22,970      23,129      27,168
40.20   Appropriation (special fund)....       1,994       2,198       2,352
40.35   Appropriation permanently 
          reduced (P.L. 109-234)........        -198
41.00   Transferred to other accounts...        -627
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............      24,139      25,327      29,520
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).         138         156         163
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          10
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         148         156         163
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      24,287      25,483      29,683
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       2,717       3,474       4,005
73.10 Total new obligations.............      24,833      25,884      29,683
73.20 Total outlays (gross).............     -24,015     -25,353     -29,113
73.40 Adjustments in expired accounts 
        (net)...........................         -73
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -10
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          22
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       3,474       4,005       4,575
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................      19,628      21,821      25,598
86.93 Outlays from discretionary 
        balances........................       4,387       3,532       3,515
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      24,015      25,353      29,113
----------------------------------------------------------------------------

[[Page 890]]



    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -80         -78         -82
88.40     Non-Federal sources...........         -80         -78         -81
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -160        -156        -163
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -10
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          22
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      24,139      25,327      29,520
90.00 Outlays...........................      23,855      25,197      28,950
---------------------------------------------------------------------------

    For 2008, the budget requests total resources for the VA Medical 
Services appropriation of $29.5 billion. This includes $27.2 billion in 
appropriated budget authority and $2.3 billion to be collected in the 
Medical Care Collections Fund.

    The budget is proposing a set of revenue legislative proposals that 
are not reflected in the Medical Services appropriation request. These 
proposals are discussed at the end of the narrative for Medical 
Services. The appropriation request reflects the full funding request 
for Medical Services to care for our veterans.

    Medical Services.--Provides for a comprehensive, integrated health 
care delivery system that addresses the needs of eligible veterans and 
beneficiaries 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).

    In 2008, VA will realign 5,689 full-time equivalents and $400 
million for food service operations from the Medical Facilities 
appropriation to the Medical Services appropriation. The cost for food 
service operations will support hospital food service workers, 
provisions, and supplies which are related to the direct care of our 
patients rather than the operations of the VA medical facilities.

    Medical Care Collections Fund (MCCF).--VA estimates collections of 
more than $2.3 billion, representing 6 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. These collections 
also include those collected from the Compensated Work Therapy Program, 
Compensation and Living Expenses Program, and the Parking Program.

                                WORKLOAD

    Provision of Veterans Health Care.--
        Acute hospital care.--Costs for 2008 are estimated to be $6,984 
    million for operating medical, neurological, surgical, contract and 
    State home hospital beds.
        Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............        528,143        548,470         553,521
  Average daily census........          8,426          8,874           8,925
  Average employment..........         31,304         31,560          34,469

        Rehabilitative care.--Costs for 2008 are estimated to be $374 
    million for the provision of rehabilitative care, including spinal 
    cord injury care.
        Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............         14,175         14,431          14,262
  Average daily census........          1,119          1,138           1,126
  Average employment..........          3,045          3,070           3,498

        Psychiatric care.--Costs for 2008 are estimated to be $1,034 
    million for the inpatient care of veterans with problems related to 
    mental illness, including alcohol and drug problems.
        Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............        101,895        104,194         102,807
  Average daily census........          4,394          4,141           4,038
  Average employment..........          7,507          7,876           8,392

        Nursing home care.--Costs for 2008 are estimated to be $2,637 
    million for the care of residents in VA nursing homes, contract 
    nursing homes and State nursing homes.
        Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............         87,945         90,729          90,104
  Average daily census........         34,137         34,040          34,175
  Average employment..........         16,148         16,279          17,496

        Noninstitutional extended care.--Costs for 2008 are estimated to 
    be $491 million 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:

                                     2006 actual  2007 est.   2008 est.
  Average daily census........         29,489         37,237          44,336

        Subacute care.--Costs for 2008 are estimated to be $132 million 
    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:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............         12,726         12,062          11,820
  Average daily census........            372            324             314
  Average employment..........            833            833             833

        Residential care.--Costs for 2008 are estimated to be $270 
    million for the care of veterans in locations other than their own 
    homes, such as domiciliary care programs.
        Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Patients treated............         28,715         29,653          29,307
  Average daily census........           8483          8,380           8,297
  Average employment..........          1,653          1,667           2,286

        Outpatient care.--Costs for 2008 are estimated to be $16,847 
    million for 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

                                     2006 actual  2007 est.   2008 est.
  Medical visits (in thousands):
  Staff visits................         53,381         57,279          59,619
  Fee visits..................          5,643          5,949           6,604
  Readjustment counseling.....          1,170          1,185           1,200
                                    ------------------------------------
        Total.......................   60,194         64,413          67,423
                                    ====================================
  Dental:
    Staff:
      Examinations............        507,812        588,000         630,000
      Treatments..............        336,402        392,658         420,144
                                    ------------------------------------
        Total.......................  844,214        980,658       1,050,144
                                    ====================================

[[Page 891]]


    Fee: Cases completed......         37,707         42,000          42,000
                                    ====================================
  Average employment..........         74,696         76,363          76,840
                                    ====================================

        Civilian health and medical program of the Department of 
    Veterans Affairs (CHAMPVA).--Costs for 2008 are estimated to be $913 
    million for private hospital and outpatient care for dependents and 
    survivors of certain veterans.

    Estimated operating levels are:

                                     2006 actual  2007 est.   2008 est.
  Average daily hospital 
    census....................            628            683             743
  Outpatient (in thousands)...          5,724          6,175           6,728

                          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.

                                     2006 actual  2007 est.   2008 est.
  Clinical Practice Guidelines 
    Index II..................            83%            84%             85%
  Prevention Index III........            88%            88%             88%
  Percent of patients rating VA 
    health care service as very good 
    or excellent:
  Inpatient...................            78%            78%             79%
  Outpatient..................            78%            78%             79%

        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.

                                     2006 actual  2007 est.   2008 est.
  Percentage of primary care 
    appointments scheduled 
    within 30 days of desired 
    date......................            96%            96%             96%
  Percentage of specialty care 
    appointments scheduled 
    within 30 days of desired 
    date......................            94%            95%             95%
  Annual percent increase of 
    non-institutional, long-
    term care average daily 
    census using 2006 as the 
    baseline..................       baseline          26.3%           19.1%

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

                                     2006 actual  2007 est.   2008 est.
  Documented increases in the 
    use of joint procurement 
    contracts.................           152M           170M            200M


    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.

                 MEDICAL SERVICES LEGISLATIVE PROPOSALS

    The budget is proposing a set of legislative proposals that are not 
reflected in the Medical Services appropriation request. Authorizing 
legislation for these proposals will be transmitted separately from the 
budget to the authorizing committees of Congress. This legislation will 
propose three changes to VA's fee structure that will result in 
additional receipts to the Treasury. These additional receipts will be 
classified as mandatory and will not reduce the Medical Services 
appropriation request, which has been made in full.

    These proposals will: assess a tiered annual enrollment fee based on 
the family income of the veteran; increase the pharmacy co-payment from 
$8 to $15 for all Priority 7 and Priority 8 veterans; and eliminate the 
third-party offset to first-party debt.

    The first proposal is the tiered annual enrollment fee which is 
structured to charge $250 for veterans with family incomes from $50,000 
to $74,999; $500 for those with family incomes from $75,000 to $99,999; 
and $750 for those with family incomes equal to or greater than 
$100,000. This proposal is estimated to contribute over $138 million to 
the Treasury annually, beginning in 2009, and will increase receipts 
over five years by $526 million.

    The second proposal is the pharmacy co-payment proposal which is 
projected to contribute $311 million to the Treasury beginning in 2008 
and will increase receipts by $1.6 billion over five years.

    The third proposal eliminates the current practice of VA offsetting 
or reducing third-party billings to insurance companies based upon the 
direct co-payment responsibilities of the veteran. This proposal will 
increase receipts by $44 million beginning in FY 2008 and $217 million 
over five years.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       8,381       9,092      10,309
11.3      Other than full-time permanent         176         192         219
11.5      Other personnel compensation..         963       1,044       1,183
                                           ---------   ---------  ----------
11.9      Total personnel compensation..       9,520      10,328      11,711
12.1    Civilian personnel benefits.....       2,597       2,815       3,166
13.0    Benefits for former personnel...          12          20          47
21.0    Employee travel.................          35          37          38
21.0    Beneficiary travel..............         199         207         215
21.0    All other.......................          43          44          46
22.0    Transportation of things........          13          14          14
23.3    Communications, utilities, and 
          miscellaneous charges.........         175         182         190
24.0    Printing and reproduction.......           1           1           1
25.2    Other contractual services......       2,193       2,449       2,840
25.6    Outpatient dental fees..........          73         100         140
25.6    Medical and nursing fees........         707         735         764
25.6    Community nursing homes.........         317         343         363
25.6    Contract hospitalization........         672         699         783
25.6    Civilian Health and Medical 
          Program of the Department of 
          Veterans Affairs (CHAMPVA)....         457         574         685
26.0    Medical supplies and materials..       6,139       6,485       7,280
31.0    Equipment.......................       1,000         102         567
32.0    Medical land and structures.....           2
41.0    Medical grants, subsidies, and 
          contributions.................         466         501         563
41.0    Medical grants to private 
          organizations.................          64          92         107
                                           ---------   ---------  ----------
99.0      Direct obligations............      24,685      25,728      29,520
99.0  Reimbursable obligations..........         148         156         163
                                           ---------   ---------  ----------
99.9    Total new obligations...........      24,833      25,884      29,683
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................     133,145     135,570     141,642
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       2,041       2,078       2,172
---------------------------------------------------------------------------

                                

                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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........          28          32          20
                                           ---------   ---------  ----------
10.00   Total new obligations...........          28          32          20
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          55          57          25
22.00 New budget authority (gross)......          30
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          85          57          25
23.95 Total new obligations.............         -28         -32         -20
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          57          25           5
----------------------------------------------------------------------------

[[Page 892]]



    New budget authority (gross), detail:
      Discretionary:

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

    Change in obligated balances:
72.40 Obligated balance, start of year..           4          25          34
73.10 Total new obligations.............          28          32          20
73.20 Total outlays (gross).............          -7         -23         -15
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          25          34          39
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           7          23          15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          30
90.00 Outlays...........................           7          23          15
---------------------------------------------------------------------------

    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. In FY 2008, each Secretary shall contribute a 
minimum of $15 million to the fund after the appropriation is enacted.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0165-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
25.1  Advisory and assistance services..           8           9           5
26.0  Supplies and materials............                       1           2
31.0  Equipment.........................          19          20          12
32.0  Land and structures...............           1           2           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          28          32          20
---------------------------------------------------------------------------

                                

                          Medical Administration

     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; 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.); 
$3,442,000,000, plus reimbursements, of which $250,000,000 shall be 
available until September 30, 2009.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
      Direct program:

        Operating expenses:
          Provision of veterans health 
              care:
00.01     Acute hospital care...........         712         934         978
00.02     Rehabilitative care...........          61          66          69
00.03     Psychiatric care..............         162         199         212
00.04     Nursing home care.............         346         365         362
00.05     Subacute care.................          18          23          25
00.06     Residential care..............          53          65          68
00.07     Outpatient care...............       1,995       1,309       1,697
                                           ---------   ---------  ----------
00.91     Total operating expenses......       3,347       2,961       3,411
        Capital investment:
          Provision of veterans health 
              care:
01.01     Acute hospital care...........           7                       7
01.02     Rehabilitative care...........           1                       1
01.03     Psychiatric care..............           1                       1
01.04     Nursing home care.............           3                       3
01.05     Residential care..............           1                       1
01.06     Outpatient care...............          17           2          18
                                           ---------   ---------  ----------
01.91     Total capital investment......          30           2          31
                                           ---------   ---------  ----------
02.93   Total direct program............       3,377       2,963       3,442
09.01 Reimbursable program..............          40          42          44
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,417       3,005       3,486
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          98         152
22.00 New budget authority (gross)......       3,471       2,853       3,486
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,569       3,005       3,486
23.95 Total new obligations.............      -3,417      -3,005      -3,486
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         152
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,858       2,811       3,442
42.00   Transferred from other accounts.         573
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       3,431       2,811       3,442
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).          39          42          44
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          40          42          44
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,471       2,853       3,486
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         840         489         648
73.10 Total new obligations.............       3,417       3,005       3,486
73.20 Total outlays (gross).............      -3,739      -2,846      -3,359
73.40 Adjustments in expired accounts 
        (net)...........................         -31
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         489         648         775
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       2,974       2,292       2,847
86.93 Outlays from discretionary 
        balances........................         765         554         512
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,739       2,846       3,359
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -40         -40         -42
88.40     Non-Federal sources...........          -3          -2          -2
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -43         -42         -44
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,431       2,811       3,442
90.00 Outlays...........................       3,696       2,804       3,315
---------------------------------------------------------------------------

    For 2008, the budget requests total resources for the VA Medical 
Administration appropriation of $3.4 billion.

    The Medical Administration appropriation finances the expenses of 
management, security, and administration of the VA health care system 
through the operation of VA medical

[[Page 893]]

centers, other facilities, Veterans Integrated Service Network offices 
and facility director offices, chief of staff operations, quality of 
care oversight, 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.
                                     2006 actual  2007 est.   2008 est.
Average employment............         36,244         36,240          32,653


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       1,857       1,946       1,839
11.3      Other than full-time permanent          42          44          42
11.5      Other personnel compensation..         211         221         209
                                           ---------   ---------  ----------
11.9      Total personnel compensation..       2,110       2,211       2,090
12.1    Civilian personnel benefits.....         597         638         588
13.0    Benefits for former personnel...           4           2           9
21.0    Employee travel.................          44          20          45
21.0    All other.......................           1           1           1
22.0    Transportation of things........           8           3           8
23.3    Communications, utilities, and 
          miscellaneous charges.........          80          12          83
24.0    Printing and reproduction.......          11           7          12
25.2    Other contractual services......         428          47         498
25.6    Medical and nursing fees........           3           2           3
26.0    Medical supplies and materials..          61          18          74
31.0    Equipment.......................          29           1          31
32.0    Medical land and structures.....           1
43.0    Interest and dividends..........                       1
                                           ---------   ---------  ----------
99.0      Direct obligations............       3,377       2,963       3,442
99.0  Reimbursable obligations..........          40          42          44
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,417       3,005       3,486
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................      35,972      35,968      32,408
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         272         272         245
---------------------------------------------------------------------------

                                

                            Medical Facilities

     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 services, $3,592,000,000, plus 
reimbursements, of which $250,000,000 shall be available until September 
30, 2009.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Acute hospital care...............         628         867         831
00.02 Rehabilitative care...............          65          79          74
00.03 Psychiatric care..................         182         238         232
00.04 Nursing home care.................         410         457         405
00.05 Subacute care.....................          19          28          27
00.06 Residential care..................          79         104          99
00.07 Outpatient care...................       1,514       1,334       1,230
                                           ---------   ---------  ----------
00.91   Total operating expenses........       2,897       3,107       2,898
      Capital investment:

        Provision of veterans health 
            care:
01.01     Acute hospital care...........         115          67         154
01.02     Rehabilitative care...........          13           8          17
01.03     Psychiatric care..............          32          18          42
01.04     Nursing home care.............          70          41          93
01.05     Subacute care.................           4           2           5
01.06     Residential care..............          15           9          20
01.07     Outpatient care...............         275         159         363
                                           ---------   ---------  ----------
01.91     Total capital investment......         524         304         694
      Grant Program:

02.93     Total direct program..........       3,421       3,411       3,592
09.01 Reimbursable program..............          26          27          28
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,447       3,438       3,620
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         102          38
22.00 New budget authority (gross)......       3,384       3,400       3,620
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,486       3,438       3,620
23.95 Total new obligations.............      -3,447      -3,438      -3,620
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          38
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       3,298       3,373       3,592
42.00   Transferred from other accounts.          60
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       3,358       3,373       3,592
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          26          27          28
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,384       3,400       3,620
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         921         990       1,054
73.10 Total new obligations.............       3,447       3,438       3,620
73.20 Total outlays (gross).............      -3,367      -3,374      -3,577
73.40 Adjustments in expired accounts 
        (net)...........................         -12
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         990       1,054       1,097
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       2,593       2,991       3,192
86.93 Outlays from discretionary 
        balances........................         774         383         385
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,367       3,374       3,577
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -10         -10         -10
88.40     Non-Federal sources...........         -16         -17         -18
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -26         -27         -28
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,358       3,373       3,592
90.00 Outlays...........................       3,341       3,347       3,549
---------------------------------------------------------------------------

    For 2008, the budget requests total resources for the VA Medical 
Facilities appropriation of $3.6 billion. 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 
services, grounds maintenance, trash removal, housekeeping, fire 
protection, pest management, facility repair, and property disposition 
and acquisition.

    In 2008, VA will realign 5,689 full-time equivalents and $400 
million for food service operations from the Medical Facilities 
appropriation to the Medical Services appropriation.

[[Page 894]]

The cost for food service operations will support hospital food service 
workers, provisions, and supplies which are related to the direct care 
of patients rather than the operation of the VA medical facilities.

                                     2006 actual  2007 est.   2008 est.
Average employment............         26,470         26,348          20,650


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         992       1,032         830
11.3      Other than full-time permanent          23          23          19
11.5      Other personnel compensation..         111         116          93
                                           ---------   ---------  ----------
11.9      Total personnel compensation..       1,126       1,171         942
12.1    Civilian personnel benefits.....         338         348         298
13.0    Benefits for former personnel...           3           1           1
21.0    Employee travel.................           7           8           8
21.0    All other.......................          23          24          25
22.0    Transportation of things........          14          15          15
23.1    Rental payments to GSA..........          15          15          16
23.2    Rental payments to others.......         115         120         125
23.3    Communications, utilities, and 
          miscellaneous charges.........         488         559         620
25.2    Other contractual services......         474         546         564
26.0    Medical supplies and materials..         212         217         228
26.0    Provisions......................          81          82
31.0    Equipment.......................         103         133         166
32.0    Medical land and structures.....         421         171         583
43.0    Interest and dividends..........           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............       3,421       3,411       3,592
99.0  Reimbursable obligations..........          26          27          28
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,447       3,438       3,620
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................      26,293      26,171      20,512
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         177         177         138
---------------------------------------------------------------------------

                                

                     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, 2009, 
$411,000,000, plus reimbursements.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Bio-medical laboratory science 
        research........................         204         222         206
00.02 Rehabilitation research...........          45          48          45
00.03 Health services research..........          59          65          60
00.04 Clinical science research.........          63          68          63
                                           ---------   ---------  ----------
00.91   Total operating expenses........         371         403         374
      Capital investment:

01.01   Bio-medical laboratory science 
          research......................          25          27          25
01.02   Rehabilitation research.........           6           6           6
01.03   Health services research........           2           3           2
01.04   Clinical science research.......           4           4           4
                                           ---------   ---------  ----------
01.91     Total capital investment......          37          40          37
                                           ---------   ---------  ----------
01.92   Total direct program............         408         443         411
09.01 Reimbursable program..............          56          55          55
                                           ---------   ---------  ----------
10.00   Total new obligations...........         464         498         466
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          41          44          10
22.00 New budget authority (gross)......         468         464         466
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         509         508         476
23.95 Total new obligations.............        -464        -498        -466
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          44          10          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         412         409         411
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          56          55          55
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         468         464         466
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         140         138         178
73.10 Total new obligations.............         464         498         466
73.20 Total outlays (gross).............        -462        -458        -459
73.40 Adjustments in expired accounts 
        (net)...........................          -4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         138         178         185
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         287         331         333
86.93 Outlays from discretionary 
        balances........................         175         127         126
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         462         458         459
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -45         -55         -55
88.40     Non-Federal sources...........         -11
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -56         -55         -55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         412         409         411
90.00 Outlays...........................         406         403         404
---------------------------------------------------------------------------

    For 2008, the total budgetary resources of $1.8 billion are 
comprised of $411 million in direct appropriations, $411 million in 
medical care support and $975 million in federal and private sector 
grants. The Research program will support 3,000 FTE through direct 
appropriation and a total of 15,400 research staff through all funding 
sources.

    This account is an intramural program whose mission is to conduct 
research focused on the special health care needs of veterans and to 
balance the discovery of new knowledge and the application of these 
discoveries to advance the health and care of veterans and the Nation. 
VA research brings scientific discovery from bedside to bench and then 
back to the bedside, making this program one of our most effective tools 
to improve the quality of care. Embedding research within an integrated 
health care system with a state-of-the-art electronic health record 
creates a national laboratory for the discovery of new medical knowledge 
and the translation of that knowledge into improved health. 
Additionally, VA Research & Development (VA R&D) has a unique program, 
the Quality Enhancement Research Initiative, which creates durable 
partnerships between VA researchers, policy-makers, and clinical 
researchers to accelerate the implementation of research evidence into 
routine practice. Although VA R&D is an intramural program, through VA's 
academic affiliations as well as collaborations with other federal 
agencies, it is fully integrated with the larger biomedical research 
community. Veterans' health issues are addressed comprehensively in the 
following four program divisions and the medical care research support 
required for these programs:

    Biomedical Laboratory.--Supports preclinical research to understand 
life processes from a molecular, genomic, and physiological level in 
regard to diseases affecting veterans.

[[Page 895]]

    Clinical Science.--Administers investigations (i.e., human subject 
research such as drug, surgical, single subject, pilot and multi-center 
cooperative studies as well as feasibility trials) aimed at instituting 
new, more effective clinical care.

    Health Services.--Supports studies to identify and promote effective 
and efficient strategies to improve the delivery of health care to 
veterans.

    Rehabilitation.--Develops novel approaches to restoring veterans 
with traumatic amputation, central nervous system injuries, loss of 
sight and/or hearing, or other physical and cognitive impairments to 
full and productive lives.

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

                                                    2006        2007        2008     Strategic 
                                                                                       Target
Progress towards development of one new 
    treatment for post-traumatic stress disorder 
    (PTSD) over a 5 year period.................         47%         67%         80%        100%
Progress towards development of a standard 
    clinical practice for pressure ulcers over a 
    6 year period...............................         61%         74%         78%        100%
Study subject accrual rate for multi-site 
    clinical trials.............................         40%         35%        38%*         50%
    *The most challenging phases for recruitment for some on-going trials is 
anticipated to be in 2007 and 2008.

                      SUMMARY OF PROGRAM RESOURCES

                        [In millions of dollars]

                                     2006 actual  2007 est.   2008 est.
Medical and prosthetic 
research appropriation........            412            409             411
Federal resources.............          1,041          1,133           1,180
Other non-federal resources...            198            202             206
                                    ------------------------------------
      Total program resources.          1,651          1,744           1,797
                                    ====================================


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         133         140         135
11.3      Other than full-time permanent          14          15          14
11.5      Other personnel compensation..          28          29          28
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         175         184         177
12.1    Civilian personnel benefits.....          50          53          51
21.0    Employee travel.................           4           4           4
21.0    Travel and transportation of 
          persons.......................
23.1    Rental payments to GSA..........           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................         126         145         126
26.0    Supplies and materials..........          31          33          31
31.0    Equipment.......................          19          21          19
                                           ---------   ---------  ----------
99.0      Direct obligations............         408         443         411
99.0  Reimbursable obligations..........          56          55          55
                                           ---------   ---------  ----------
99.9    Total new obligations...........         464         498         466
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       2,813       2,841       2,664
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         380         352         336
---------------------------------------------------------------------------

                                

                      Canteen Service Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable operating expenses...         146         149         149
09.02 Reimbursable direct operations....          98          99         100
09.10 Reimbursable capital investment: 
        Sales program: Purchase of 
        equipment and leasehold.........           8           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........         252         253         254
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           7           2           2
22.00 New budget authority (gross)......         247         253         253
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         254         255         255
23.95 Total new obligations.............        -252        -253        -254
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         247         253         253
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          30          32          31
73.10 Total new obligations.............         252         253         254
73.20 Total outlays (gross).............        -250        -254        -254
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          32          31          31
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         247         252         252
86.98 Outlays from mandatory balances...           3           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         250         254         254
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -247        -253        -253
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          26          26          26
92.02 Total investments, end of year: 
        Federal securities: Par value...          26          26          26
---------------------------------------------------------------------------

    The Veterans Canteen Service was established to furnish, at 
reasonable prices, meals, merchandise, and services necessary for the 
comfort and well-being of veterans in VA medical facilities.

    Financing.--Operations will be financed from current revenues.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............          45          45          46
11.3    Other than full-time permanent..          36          37          38
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          81          82          84
12.1  Civilian personnel benefits.......          22          22          22
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................           3           4           3
26.0  Supplies and materials............         136         137         137
31.0  Equipment.........................           8           6           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........         252         253         254
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       2,965       2,970       2,975
---------------------------------------------------------------------------

[[Page 896]]



                                

                  Medical Center Research Organizations

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4026-0-3-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Operating expenses................         202         215         225
09.02 Capital investments...............           2           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........         204         218         228
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          23          46          28
22.00 New budget authority (gross)......         227         200         215
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         250         246         243
23.95 Total new obligations.............        -204        -218        -228
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          46          28          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         227         200         215
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                                  18
73.10 Total new obligations.............         204         218         228
73.20 Total outlays (gross).............        -204        -200        -215
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                      18          31
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         204         200         215
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -204        -200        -215
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............         -23
----------------------------------------------------------------------------

    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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
21.0  Travel and transportation of 
        persons.........................           5           5           6
25.2  Other services....................         180         192         199
26.0  Supplies and materials............          17          18          20
31.0  Equipment.........................           2           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         204         218         228
---------------------------------------------------------------------------

                                

  

                               Trust Funds

                    General Post Fund, National Homes

                      (including transfer of funds)

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............           1           1           3
                                           ---------   ---------  ----------
01.99 Balance, start of year............           1           1           3
    Receipts:
02.00 General post fund, national homes, 
        Interest on investments.........           2           3           3
02.60 General post fund, national homes, 
        Deposits........................          30          33          34
                                           ---------   ---------  ----------
02.99   Total receipts and collections..          32          36          37
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          33          37          40
    Appropriations:
05.00 General post fund, national homes.         -32         -34         -34
                                           ---------   ---------  ----------
05.99   Total appropriations............         -32         -34         -34
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           1           3           6
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8180-0-7-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Religious, recreational, and 
        entertainment activities........          29          29          28
00.03 Therapeutic residence maintenance.           1           2           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          30          31          29
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          63          65          68
22.00 New budget authority (gross)......          32          34          34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          95          99         102
23.95 Total new obligations.............         -30         -31         -29
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          65          68          73
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......          32          34          34
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           5           5           6
73.10 Total new obligations.............          30          31          29
73.20 Total outlays (gross).............         -30         -30         -30
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           5           6           5
----------------------------------------------------------------------------

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

    Net budget authority and outlays:
89.00 Budget authority..................          32          34          34
90.00 Outlays...........................          30          30          30
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          64          66          66
92.02 Total investments, end of year: 
        Federal securities: Par value...          66          66          66
---------------------------------------------------------------------------

    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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................          11          11          11
26.0  Supplies and materials............          14          15          14
31.0  Equipment.........................           3           3           2
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          30          31          29
---------------------------------------------------------------------------

[[Page 897]]



                                


 
                            BENEFITS PROGRAMS

                              Federal Funds

                        Compensation and Pensions

                      (including transfer of funds)

     For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as authorized 
by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension 
benefits to or on behalf of veterans as authorized by law (38 U.S.C. 
chapters 15, 51, 53, 55, and 61); and burial benefits, the Reinstated 
Entitlement Program for Survivors, 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 title IV of the Servicemembers Civil Relief Act (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), 
$41,236,322,000, to remain available until expended: Provided, That not 
to exceed $25,033,000 of the amount appropriated under this heading 
shall be reimbursed to ``General operating expenses'' and ``Medical 
administration'' for necessary expenses in implementing the provisions 
of chapters 51, 53, and 55 of title 38, United States Code, 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 care collections fund'' to augment the funding of individual 
medical facilities for nursing home care provided to pensioners as 
authorized.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0102-0-1-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
01.01 Veterans..........................      26,470      30,368      32,416
01.02 Survivors.........................       4,363       4,506       4,666
                                           ---------   ---------  ----------
01.91   Compensation sub-total..........      30,833      34,874      37,082
                                           ---------   ---------  ----------
02.00   Other compensation expenses.....      30,833      34,874      37,082
02.01 Chapter 18........................          18          18          19
02.02 Clothing allowance................          53          58          61
02.03 Misc Assistance (EAJ, SAFD).......           6           4           3
02.04 Medical exam pilot program........          80          87          88
02.05 OBRA payment to VBA...............           2           2           2
02.06 Reinstated Entitlement Program for 
        Survivors.......................           4           4           4
                                           ---------   ---------  ----------
02.91   Total other compensation 
          expenses......................         163         173         177
                                           ---------   ---------  ----------
02.93   Total compensation..............      30,996      35,047      37,259
03.02 Veterans..........................       2,747       2,814       2,883
03.03 Survivors.........................         778         831         890
                                           ---------   ---------  ----------
03.91   Pensions sub total..............       3,525       3,645       3,773
04.01 Reimbursements to GOE and VHA.....          22          26          24
                                           ---------   ---------  ----------
04.92   Total pensions..................       3,547       3,671       3,797
06.02 Burial allowance..................          29          35          37
06.03 Burial plots......................          15          21          21
06.04 Service-connected deaths..........          22          29          31
06.05 Burial flags......................          16          19          19
06.06 Headstones and markers............          37          42          43
06.07 Graveliners/Pre-placed crypts.....          23          54          29
                                           ---------   ---------  ----------
06.91   Total burial program............         142         200         180
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................      34,685      38,918      41,236
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,083         296
22.00 New budget authority (gross)......      33,898      38,622      41,236
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      34,981      38,918      41,236
23.95 Total new obligations.............     -34,685     -38,918     -41,236
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         296
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      33,898      38,172      40,888
60.00   Appropriaton COLA...............                                 348
62.00   Transferred from other accounts.                     450
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      33,898      38,622      41,236
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          87          92       3,161
73.10 Total new obligations.............      34,685      38,918      41,236
73.20 Total outlays (gross).............     -34,680     -35,849     -41,046
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          92       3,161       3,351
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      33,512      35,452      37,586
86.98 Outlays from mandatory balances...       1,168         397       3,460
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      34,680      35,849      41,046
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      33,898      38,622      41,236
90.00 Outlays...........................      34,680      35,849      41,046
---------------------------------------------------------------------------

                                WORKLOAD

                                     2006 actual  2007 est.   2008 est.
Compensation:
  Rating-Related Actions......        720,988        720,000         720,000
  Non Rating Actions..........        233,954        232,993         232,993

Pension:
  Rating-Related Actions......         85,394         80,000          80,000
  Non Rating Actions..........        308,925        321,299         321,299

    This appropriation provides for the payment of compensation, 
pension, and burial benefits to veterans and survivors.

    Compensation is paid to veterans for disabilities incurred in or 
aggravated during active military service. Dependency and Indemnity 
Compensation is paid to survivors of servicepersons or veterans whose 
death occurred while on active duty or as a result of service-connected 
disabilities. Compensation and vocational rehabilitation is provided to 
the children of Vietnam veterans who were born with 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:
        (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, 2008, is expected to be 1.4 percent.


[[Page 898]]



            AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                     2006 actual  2007 est.   2008 est.
Veterans:
  Cases.......................      2,683,380      2,782,296       2,879,329
  Average payment per case, 
    per year..................         $9,864        $10,915         $11,258
                                    ------------------------------------
      Total obligations (in 
        millions).............        $26,470        $30,368         $32,416
                                    ====================================
Survivors:
  Cases.......................        329,710        334,432         340,702
  Average payment per case, 
    per year..................        $13,234        $13,476         $13,695
                                    ------------------------------------
      Total obligations (in 
        millions).............         $4,363         $4,507          $4,666
                                    ====================================
Chapter 18:
  Children....................          1,192          1,203           1,207
  Average payment per case, 
    per year..................        $15,136        $15,638         $15,857
                                    ------------------------------------
      Total obligations (in 
        millions).............            $18            $18             $19
                                    ====================================
Clothing allowance:
  Number of veterans..........         84,990         88,123          91,196
  Average payment per case, 
    per year..................           $640           $661            $671
                                    ------------------------------------
      Total obligations (in 
        millions).............            $54            $58             $61
                                    ====================================
Other compensation caseload:
  Special allowance dependents             75             75              75
  Equal Access to Justice 
    payments..................          1,079            803             803
                                    ====================================
REPS:
  Cases.......................            186            149             120
  Average benefit.............        $22,425        $27,501         $29,947
                                    ------------------------------------
      Obligations (in 
        millions).............             $4             $4              $4
                                    ====================================

    Pension benefits may be paid to veterans or their survivors. A 
veteran's entitlement is based on active duty service of a specific 
length (normally 90 days or more) during a designated war period, 
disabilities considered permanent and total, and countable income below 
established levels. There is no disability requirement for survivor 
cases or veterans age 65 or older. Income support is provided at 
established benefit levels.

    An automatic annual cost-of-living increase comparable to the annual 
social security increase is provided for those pensioners in the 
improved program and to parents receiving dependency and indemnity 
compensation. The increase, effective with payments made on January 1, 
2008, is expected to be 1.4 percent.

              AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                     2006 actual  2007 est.   2008 est.
Veterans:
  Cases.......................        332,034        326,154         320,378
  Average payment per case, 
    per year..................         $8,274         $8,629          $8,999
                                    ------------------------------------
      Total obligations (in 
        millions).............         $2,747         $2,814          $2,883
                                    ====================================
Survivors:
  Cases.......................        203,346        197,670         192,656
  Average payment per case, 
    per year..................         $3,825         $4,205          $4,619
                                    ------------------------------------
      Total obligations (in 
        millions).............           $778           $831            $890
                                    ====================================

    Burial benefits provides for: (a) the payment of an allowance of 
$300 (plus transportation charges where death occurs under VA care) to 
reimburse, in part, the burial and funeral expense of an eligible 
deceased veteran; (b) the payment of $300 for a plot allowance where an 
eligible veteran is not buried in a national cemetery or other cemetery 
under the jurisdiction of the United States; (c) the payment of a burial 
allowance up to $2,000 when a veteran dies as a 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

                                     2006 actual  2007 est.   2008 est.
Burial allowance..............         62,474         87,050          89,214
Burial plot...................         50,330         69,870          71,608
Service-connected deaths......         13,020         14,591          15,288
Burial flags..................        486,117        518,213         515,579
Headstones and markers........        335,172        354,973         353,169
Graveliners...................         46,779         60,862          62,543
Preplaced crypts..............         17,824         99,600          35,100


                                

                          Readjustment Benefits

     For the payment of readjustment and rehabilitation benefits to or 
on behalf of veterans as authorized by law (38 U.S.C. chapters 21, 30, 
31, 34, 35, 36, 39, 51, 53, 55, and 61), $3,300,289,000, 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.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0137-0-1-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
01.01 Sons and daughters................         361         394         419
01.02 Spouses...........................          52          56          60
                                           ---------   ---------  ----------
01.91   Total education and training....         413         450         479
02.01 Vocational rehabilitation training         340         377         410
02.02 Subsistence allowance.............         226         241         253
02.03 Automobiles and adaptive equipment          51          52          53
02.04 Housing Grants....................          26          27          27
                                           ---------   ---------  ----------
02.91   Total special assistance to 
          disabled veterans.............         643         697         743
03.01 Work study........................          20          21          22
03.02 Payments to States................          18          19          13
03.03 All-volunteer assistance: Basic 
        benefits and all other..........       1,833       2,104       2,014
03.04 Tuition Assistance................          20          20          21
03.05 Licensing and Certification.......           1           1           2
03.06 Reporting fees....................           5           4           4
03.09 Reimbursement to GOE..............           2           7           2
                                           ---------   ---------  ----------
03.91   Total All-volunteer assistance 
          and other.....................       1,899       2,176       2,078
                                           ---------   ---------  ----------
03.93   Total Readjustment Benefits 
          Direct Program................       2,955       3,323       3,300
09.01 Veterans' and Servicepersons basic 
        benefits........................           3           3           3
09.02 Veterans' and Servicepersons 
        supplementary benefits..........         100          93          90
09.03 Chapter 1606 Reservists benefits..          87         154         180
09.04 Chapter 1606 Reservists 
        supplementary benefits..........          35          63          73
09.05 Chapter 1607 Reservists benefits..         153         197         179
09.06 National Call to Service..........                       1           1
                                           ---------   ---------  ----------
09.09   Total Reimbursable education 
          program.......................         378         511         526
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,333       3,834       3,826
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         157         511
22.00 New budget authority (gross)......       3,687       3,323       3,826
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,844       3,834       3,826
23.95 Total new obligations.............      -3,333      -3,834      -3,826
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         511
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       3,309       3,262       3,300
61.00   Transferred to other accounts...                    -450
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       3,309       2,812       3,300
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         378         511         526
                                           ---------   ---------  ----------

[[Page 899]]


70.00   Total new budget authority 
          (gross).......................       3,687       3,323       3,826
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          37          43          88
73.10 Total new obligations.............       3,333       3,834       3,826
73.20 Total outlays (gross).............      -3,327      -3,789      -3,814
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          43          88         100
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       3,133       3,235       3,726
86.98 Outlays from mandatory balances...         194         554          88
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,327       3,789       3,814
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -378        -511        -526
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,309       2,812       3,300
90.00 Outlays...........................       2,949       3,278       3,288
---------------------------------------------------------------------------

                                WORKLOAD

                                     2006 actual  2007 est.   2008 est.
Evaluation and planning.......         63,799         65,553          67,191
Rehabilitation services.......         63,539         65,286          66,918
Employment services status....         18,559         19,069          19,545
Vocational/educational 
counseling....................         15,918         16,355          16,763

                                WORKLOAD

                                     2006 actual  2007 est.   2008 est.
Original claims...............        231,104        212,349         217,445
Adjustments/supplemental 
claims........................      1,134,822      1,186,525       1,215,001

    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. In addition, certain disabled 
veterans are provided with vocational rehabilitation, specially adapted 
housing grants, and automobile grants with the associated approval 
adaptive equipment. 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 Readjustment Benefit appropriation pays 
the basic benefit allowance 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.

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

                     CASELOAD AND AVERAGE COST DATA

                                     2006 actual  2007 est.   2008 est.
Veterans/Servicemembers:
  Number of trainees..........        331,557        340,813         340,912
  Average cost per trainee....         $5,842         $6,386          $6,096
                                    ------------------------------------
      Total cost (in millions)         $1,937         $2,177          $2,078
                                    ====================================
Reservists (1606):
  Number of trainees..........         66,579        113,932         130,913
  Average cost per trainee....         $1,801         $1,885          $1,928
                                    ------------------------------------
      Total cost (in millions)           $121           $217            $254
                                    ====================================
Reservists (1607):
  Number of trainees..........         23,751         52,024          45,794
  Average cost per trainee....         $6,457         $3,794          $3,904
                                    ------------------------------------
      Total cost (in millions)           $153           $197            $179
                                    ====================================

    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

                                     2006 actual  2007 est.   2008 est.
Sons and daughters:
  Number of trainees..........         64,517         67,620          70,227
  Average cost per trainee (in 
    dollars)..................         $5,601         $5,826          $5,960
                                    ------------------------------------
      Total cost (in millions)           $361           $394            $419
                                    ====================================
Spouses and widow(ers):
  Number of trainees..........         11,017         11,513          11,947
  Average cost per trainee (in 
    dollars)..................         $4,699         $4,890          $5,005
                                    ------------------------------------
      Total cost (in millions)            $52            $56             $60
                                    ====================================

    Special Assistance to Disabled Veterans.--Service-disabled veterans 
requiring vocational rehabilitation receive assistance to cover the 
costs of subsistence, tuition, books, supplies, and equipment. In 
addition to monetary benefits, individuals may also receive 
rehabilitation evaluation, planning, and delivery services designed to 
move the veteran into a suitable job.

    Automobile Grants and Adaptive Equipment.--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.

    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 par

[[Page 900]]

ticipants 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

                                     2006 actual  2007 est.   2008 est.
Special assistance to disabled 
    veterans:
  Rehabilitation Evaluation 
    Planning and Service cases         22,180         22,790          23,360
  Number of participants......         67,611         69,406          71,141
  Average cost................         $8,377         $8,913          $9,319
                                    ------------------------------------
      Total cost (in millions)           $566           $619            $663
                                    ====================================
Automobiles or other conveyances:
  Number of conveyances.......          1,317          1,317           1,317
  Average benefit.............        $10,817        $10,817         $10,817
                                    ------------------------------------
      Obligations (in 
        millions).............            $14            $14             $14
                                    ====================================
Adaptive equipment (including 
    maintenance, repair, and 
    installation for automobiles):
  Number of items.............          7,508          7,508           7,508
  Average benefit.............         $4,860         $5,011          $5,166
                                    ------------------------------------
      Obligations (in 
        millions).............            $36            $38             $39
                                    ====================================
Housing grants:
  Number of housing grants....            593            620             620
  Average cost per grant......        $43,474        $42,774         $42,774
                                    ------------------------------------
      Total cost (in millions)            $26            $27             $27
                                    ====================================
Tuition Assistance:
  Number of trainees..........         22,362         22,362          22,362
  Average cost per trainee....           $881           $917            $938
                                    ------------------------------------
      Total cost (in millions)            $20            $20             $21
                                    ====================================
Education Benefits for Payment for 
    National Admissions Exams:
  Number of tests.............             89            445             445
      Total cost (in millions)             $0             $0              $0
                                    ====================================
Licensing and Certification:
  Number of payments..........          3,820          3,820           3,820
  Average cost per trainee....           $370           $385            $394
                                    ------------------------------------
      Total cost (in millions)             $1             $1              $2
National Call to Service:
  Number of trainees..........              0            200             200
                                    ------------------------------------
      Total cost (in millions)             $0             $1              $1
                                    ====================================

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

                                     2006 actual  2007 est.   2008 est.
  Number of contracts.........         15,732         16,236          16,756
                                    ------------------------------------
      Total cost (in millions)            $21            $23             $24
                                    ====================================

    Payments to States.--State approving agencies are reimbursed for the 
costs of inspecting, approving, and supervising programs of education 
and training offered by educational institutions and training 
establishments in which veterans, dependents, and reservists are 
enrolled or are about to enter.

    Reporting Fees.--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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       2,955       3,323       3,300
99.0    Reimbursable obligations: 
          reimbursable obligations......         378         511         526
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,333       3,834       3,826
---------------------------------------------------------------------------

                                

                    Veterans Insurance and Indemnities

     For military and naval insurance, national service life insurance, 
servicemen's indemnities, service-disabled veterans insurance, and 
veterans mortgage life insurance as authorized by title 38, United 
States Code, chapters 19 and 21, $41,250,000, to remain available until 
expended.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Payment to NSLI...................           1           1           1
00.10 VMLI death claims.................          10          10          10
00.12 Payment to service-disabled 
        veterans insurance..............          37          42          32
                                           ---------   ---------  ----------
01.00   Total direct expenses...........          48          53          43
                                           ---------   ---------  ----------
10.00   Total new obligations...........          48          53          43
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1
22.00 New budget authority (gross)......          48          52          43
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          49          53          43
23.95 Total new obligations.............         -48         -53         -43
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          46          50          41
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          48          52          43
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                                   1
73.10 Total new obligations.............          48          53          43
73.20 Total outlays (gross).............         -48         -52         -43
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                       1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          48          52          43
----------------------------------------------------------------------------

    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..................          46          50          41
90.00 Outlays...........................          46          50          41
---------------------------------------------------------------------------

                                WORKLOAD

                                     2006 actual  2007 est.   2008 est.
Policy service actions........        768,000        717,986         667,547
Collections...................      1,781,551      1,665,500       1,548,200
Disability claims.............         25,828         25,537          25,527
Insurance awards..............        502,019        497,880         484,096

    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

[[Page 901]]

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 2008 as indicated in the following table.

                     POLICIES AND INSURANCE IN FORCE

                                     2006 actual  2007 est.   2008 est.
VMLI policies:
  Number of policies..........          2,438          2,370           2,310
  Amount of insurance (dollars 
    in millions)..............           $166           $165            $165


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0120-0-1-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........          46          51          41
99.0    Reimbursable obligations: 
          reimbursable obligations......           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          48          53          43
---------------------------------------------------------------------------

                                

                 Service-Disabled Veterans Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Capital investment................          13          14          14
09.02 Death Claims......................          61          70          75
09.03 All Other.........................           7           7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          81          91          96
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          11          16          17
22.00 New budget authority (gross)......          86          92          84
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          97         108         101
23.95 Total new obligations.............         -81         -91         -96
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          16          17           5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          86          92          84
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          10          11          10
73.10 Total new obligations.............          81          91          96
73.20 Total outlays (gross).............         -80         -92         -96
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          11          10          10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          79          91          84
86.98 Outlays from mandatory balances...           1           1          12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          80          92          96
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Insurance 
            account.....................         -37         -42         -32
88.40     Interest on loans.............          -3          -3          -3
88.40     Insurance premiums earned.....         -34         -35         -37
88.40     Repayments of loans...........         -12         -12         -12
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -86         -92         -84
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -6                      12
---------------------------------------------------------------------------

    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.

    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

                                     2006 actual  2007 est.   2008 est.
Number of policies............        181,093        186,380         190,230
Insurance in force (dollars in 
millions).....................         $1,802         $1,864          $1,911

    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 $700 million by September 30, 2008.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4012-0-3-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
33.0  Investments and loans.............          13          14          14
42.0  Insurance claims and indemnities..          68          77          82
                                           ---------   ---------  ----------
99.0    Reimbursable obligations........          81          91          96
                                           ---------   ---------  ----------
99.9    Total new obligations...........          81          91          96
---------------------------------------------------------------------------

[[Page 902]]



                                

                     Veterans Reopened Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4010-0-3-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Death claims......................          36          41          40
09.02 Dividends.........................          12          10           8
09.03 All other.........................           7           7           6
09.04 Capital investment: policy loans..           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          58          61          57
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         371         351         326
22.00 New budget authority (gross)......          38          36          32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         409         387         358
23.95 Total new obligations.............         -58         -61         -57
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         351         326         301
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          38          36          32
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          52          51          50
73.10 Total new obligations.............          58          61          57
73.20 Total outlays (gross).............         -59         -62         -59
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          51          50          48
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          38          36          32
86.98 Outlays from mandatory balances...          21          26          27
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          59          62          59
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities         -26         -24         -21
88.40     Interest on loans.............          -1          -1          -1
88.40     Insurance premiums earned.....          -7          -7          -6
88.40     Repayments of loans...........          -4          -4          -4
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -38         -36         -32
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          21          26          27
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...         422         402         375
92.02 Total investments, end of year: 
        Federal securities: Par value...         402         375         348
---------------------------------------------------------------------------

    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

                                     2006 actual  2007 est.   2008 est.
  Number of policies..........         48,206         43,360          38,660
  Insurance in force (dollars 
    in millions)..............           $453           $415            $376

    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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
33.0  Investments and loans.............           3           3           3
42.0  Insurance claims and indemnities..          40          45          44
43.0  Interest and dividends............          15          13          10
                                           ---------   ---------  ----------
99.9    Total new obligations...........          58          61          57
---------------------------------------------------------------------------

                                

                Servicemembers' Group Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4009-0-3-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Premium payments..................         819         862         860
09.02 Payments to carrier...............         608         623
09.03 Payment to GOE....................           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,429       1,487         862
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,429       1,487         862
23.95 Total new obligations.............      -1,429      -1,487        -862
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).       1,429       1,487         862
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       1,429       1,487         862
73.20 Total outlays (gross).............      -1,429      -1,487        -862
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,429       1,487         862
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources: 
          Withholdings from serviceman's 
          pay...........................      -1,429      -1,487        -862
----------------------------------------------------------------------------

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

    Memorandum (non-add) entries:
92.03 Total investments, start of year: 
        non-Federal securities: Market 
        value...........................         203
---------------------------------------------------------------------------

    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.

    This includes premiums for the new Traumatic Servicemembers' Group 
Life Insurance (TSGLI) that became

[[Page 903]]

effective December 1, 2005. TSGLI provides for payment between $25,000 
and $100,000 (depending on the type of injury) to any member of the 
uniformed services covered by SGLI who sustains a traumatic injury that 
results in certain serious losses.

                                

                         Housing Program Account

     For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by subchapters I 
through III of chapter 37 of title 38, United States Code: 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: Provided 
further, That during fiscal year 2008, 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, $154,562,000.

   Guaranteed Transitional Housing Loans for Homeless Veterans Program 
                                 Account

     For the administrative expenses to carry out the guaranteed 
transitional housing loan program authorized by subchapter VI of chapter 
20 of title 38, United States Code, not to exceed $750,000 of the 
amounts appropriated by this Act for ``General operating expenses'' and 
``Medical administration'' may be expended.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loan subsidy...............           7          22          17
00.02 Transitional housing guaranteed 
        loan subsidy....................                                   8
00.05 Upward reestimate of direct loan 
        subsidy.........................          36           4
00.06 Interest on reestimate direct loan 
        subsidy.........................           3
00.07 Upward reestimate of loan 
        guarantee subsidy...............                      30
00.08 Interest on reestimate of loan 
        guarantee subsidy...............                       7
00.09 Administrative expenses...........         151         153         155
                                           ---------   ---------  ----------
10.00   Total new obligations...........         197         216         180
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          43          45          46
22.00 New budget authority (gross)......         201         217         172
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         244         262         218
23.95 Total new obligations.............        -197        -216        -180
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          45          46          38
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         154         153         155
      Mandatory:

60.00   Appropriation...................          47          64          17
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         201         217         172
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           5           4           3
73.10 Total new obligations.............         197         216         180
73.20 Total outlays (gross).............        -198        -217        -174
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           4           3           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         152         153         155
86.97 Outlays from new mandatory 
        authority.......................          46          64          17
86.98 Outlays from mandatory balances...                                   2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         198         217         174
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         201         217         172
90.00 Outlays...........................         198         217         174
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Acquired Direct Loans.............          87         210         197
115003Transitional Housing Direct Loan..                                  12
115004Vendee Direct Loans...............          76         125         330
                                           ---------   ---------  ----------
115999Total direct loan levels..........         163         335         539
    Direct loan subsidy (in percent):
132001Acquired Direct Loans.............        9.18       10.43        8.84
132003Transitional Housing Direct Loan..        0.00        0.00       72.10
132004Vendee Direct Loans...............       -5.64       -3.46       -1.59
                                           ---------   ---------  ----------
132999Weighted average subsidy rate.....        2.27        5.25        3.86
    Direct loan subsidy budget authority:
133001Acquired Direct Loans.............           7          22          17
133003Transitional Housing Direct Loan..                                   8
133004Vendee Direct Loans...............          -4          -4          -5
                                           ---------   ---------  ----------
133999Total subsidy budget authority....           3          18          20
    Direct loan subsidy outlays:
134001Acquired Direct Loans.............           7          22          17
134003Transitional Housing Direct Loan..           2           2           2
134004Vendee Direct Loans...............          -4          -4          -5
                                           ---------   ---------  ----------
134999Total subsidy outlays.............           5          20          14
    Direct loan upward reestimates:
135001Acquired Direct Loans.............          39           4
                                           ---------   ---------  ----------
135999Total upward reestimate budget 
        authority.......................          39           4
    Direct loan downward reestimates:
137001Acquired Direct Loans.............        -113        -102
                                           ---------   ---------  ----------
137999Total downward reestimate budget 
        authority.......................        -113        -102
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Vetrans Housing Benefit Program...      23,500      28,260      29,104
                                           ---------   ---------  ----------
215999Total loan guarantee levels.......      23,500      28,260      29,104
    Guaranteed loan subsidy (in percent):
232001Vetrans Housing Benefit Program...       -0.32       -0.36       -0.37
232002Guaranteed Loan Sale Securities...        4.12        0.00        0.00
                                           ---------   ---------  ----------
232999Weighted average subsidy rate.....       -0.32       -0.36       -0.37
    Guaranteed loan subsidy budget authority:
233001Vetrans Housing Benefit Program...         -73        -102        -108
                                           ---------   ---------  ----------
233999Total subsidy budget authority....         -73        -102        -108
    Guaranteed loan subsidy outlays:
234001Vetrans Housing Benefit Program...         -73        -102        -108
                                           ---------   ---------  ----------
234999Total subsidy outlays.............         -73        -102        -108
    Guaranteed loan upward reestimates:
235001Vetrans Housing Benefit Program...                      28
235002Guaranteed Loan Sale Securities...           1           9
                                           ---------   ---------  ----------
235999Total upward reestimate budget 
        authority.......................           1          37
    Guaranteed loan downward reestimates:
237001Vetrans Housing Benefit Program...      -1,108        -764
237002Guaranteed Loan Sale Securities...         -68         -94
                                           ---------   ---------  ----------
237999Total downward reestimate subsidy 
        budget authority................      -1,176        -858
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         151         153         155
3590  Outlays from new authority........         151         153         155
---------------------------------------------------------------------------

    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;

[[Page 904]]

(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 in excess of 
$144,000 the guarantee will be the lesser of: 25 percent of the Freddie 
Mac conforming loan limit for a single family residence, as adjusted for 
the year involved; or 25 percent of the loan; or the veteran's available 
entitlement.

    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.

    The Housing program facilitates the extension of private capital, on 
more liberal terms than generally available to nonveterans, to: assist 
veterans and servicepersons in obtaining housing credit; and assist 
veterans in retaining their homes during periods of temporary economic 
difficulty through intensive supplemental mortgage loan servicing.

                                WORKLOAD

                             [In thousands]

                                     2006 actual  2007 est.   2008 est.
  Construction and valuation..            186            232             230
  Loan processing.............            363            453             455
  Loan service and claims.....            324            340             380


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
25.2  Other services....................         151         153         155
41.0  Grants, subsidies, and 
        contributions...................          47          64          17
                                           ---------   ---------  ----------
99.9    Total new obligations...........         198         217         172
---------------------------------------------------------------------------

                                

                  Housing Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loans......................         163         335         527
00.02 Interest on Treasury borrowing....          98         124         148
00.03 Property sales expense............           3           4           4
00.04 Property management/other expense.           6           7           7
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         270         470         686
08.01 Payment of negative subsidy to 
        receipt account.................           4           3           5
08.02 Payment of downward reestimate to 
        receipt account.................         113          80
08.04 Payment of excess interest earned 
        to receipt account..............                      22
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         117         105           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........         387         575         691
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,274          44
22.00 New financing authority (gross)...        -843         531         691
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         431         575         691
23.95 Total new obligations.............        -387        -575        -691
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          44
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............         484         348         514
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).         373         183         221
69.47     Portion applied to repay debt.      -1,700                     -44
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........      -1,327         183         177
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................        -843         531         691
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          69          95          95
73.10 Total new obligations.............         387         575         691
73.20 Total financing disbursements 
        (gross).........................        -361        -575        -691
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          95          95          95
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................         361         575         691
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources:Payments from 
            program account.............         -46         -25         -17
88.00     Reimbursements from DLFA......          -2          -1         -10
88.25     Interest on uninvested funds..         -52
88.40     Repayments of principal.......        -189         -57         -62
88.40     Interest received on loans....         -51         -65         -86
88.40     Fees..........................          -2          -2          -6
88.40     Cash sale of properties.......         -30         -33         -40
88.40     Other.........................          -1
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -373        -183        -221
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............      -1,216         348         470
90.00 Financing disbursements...........         -12         392         470
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4127-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................         163         335         527
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         163         335         527
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         934         863       1,139
1231  Disbursements: Direct loan 
        disbursements...................         163         335         527
      Repayments:

1251    Repayments and prepayments......        -189         -57         -62
1253    Proceeds from loan asset sales 
          to the public with recourse...
      Write-offs for default:

1263    Direct loans....................         -30          -2          -2
1264    Other adjustments, Data 
          Reconciliation................         -15
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         863       1,139       1,602
---------------------------------------------------------------------------

    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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

1,344

139

        Investments in US securities:
1106

Receivables, net

39

4

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

1401

Direct loans receivable, gross

934

864

[[Page 905]]

1402

Interest receivable

22

16

1405

Other

1

112





1499

Net present value of assets related to direct loans

957

992





1999

Total assets

2,340

1,135

    LIABILITIES:
      Federal liabilities:

2103

Debt

2,157

941

2105

Other

183

194





2999

Total liabilities

2,340

1,135





4999

Negative subsidy BA total [36-1119]

2,340

1,135

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

                                

                Housing Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Acquisition of homes..............         620       1,698       1,578
00.03 Losses on defaulted loans.........         174         475         442
00.04 Reimburse DLFA for loan sales.....                      17          17
00.05 Payment to trustee reserve........          14          20          15
00.07 Loan Sale Closing Costs...........          27
00.09 Property sales expense............          53         125         116
00.10 Property management expense.......          43         109         101
00.11 Property improvement expense......          31          50          46
00.12 Loans acquired....................         111         207         194
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,073       2,701       2,509
08.01 Payment of negative subsidy to 
        receipt account.................          73         102         108
08.02 Payment of downward reestimate 
        receipt account.................       1,176         555
08.04 Payment of excess interest earned 
        to receipt account..............                     303
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............       1,249         960         108
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,322       3,661       2,617
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       4,426       3,515       2,429
22.00 New financing authority (gross)...       1,411       2,575       2,611
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,837       6,090       5,040
23.95 Total new obligations.............      -2,322      -3,661      -2,617
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........       3,515       2,429       2,423
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............                     102         108
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).       1,387       2,473       2,503
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          25
69.47     Portion applied to repay debt.          -1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       1,411       2,473       2,503
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,411       2,575       2,611
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          12          33          53
73.10 Total new obligations.............       2,322       3,661       2,617
73.20 Total financing disbursements 
        (gross).........................      -2,276      -3,641      -2,632
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -25
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          33          53          38
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................       2,276       3,641       2,632
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.          -1         -38
88.00     Recoveries from DLFA..........        -131        -326        -520
88.25     Interest on uninvested funds..        -203        -167        -139
88.40     Funding fees..................        -438        -479        -485
88.40     Cash sale of properties.......        -585      -1,443      -1,342
88.40     Refunds from Trust............         -27         -20         -17
88.40     Redemption of properties and 
            other.......................          -2
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................      -1,387      -2,473      -2,503
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............         -25
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          -1         102         108
90.00 Financing disbursements...........         890       1,168         129
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4129-0-3-704      2006 actual   2007 est.   2008 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.................      23,500      28,260      29,104
2132  Guaranteed loan commitments for 
        loan asset sales with recourse..
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      23,500      28,260      29,104
2199  Guaranteed amount of guaranteed 
        loan commitments................       6,486       7,800       8,033
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........     195,107     198,146     217,311
2231  Disbursements of new guaranteed 
        loans...........................      23,500      28,260      29,104
2232  Guarantees of loans sold to the 
        public with recourse............
2251  Repayments and prepayments........     -25,255      -3,369      -3,875
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....      -1,402      -3,821      -3,550
2262    Terminations for default that 
          result in acquisition of 
          property......................        -620      -1,698      -1,578
2263    Terminations for default that 
          result in claim payments......        -111        -207        -194
2264    Other adjustments, net..........       6,927
                                           ---------   ---------  ----------
2290    Outstanding, end of year........     198,146     217,311     237,218
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      58,410      71,569      77,232
----------------------------------------------------------------------------

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

2331    Disbursements for guaranteed 
          loan claims...................         188         495         457
---------------------------------------------------------------------------

    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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

4,403

3,524

        Investments in US securities:
1106

Receivables, net

64

126

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

1501

Accounts Receivable from Foreclosed Property

3

2

1504

Accounts receivable from foreclosed property

553

579

1505

Other Assets

35

23





1599

Net present value of assets related to defaulted guaranteed loans

591

604





1999

Total assets

5,058

4,254

    LIABILITIES:
      Federal liabilities:

2103

Debt

3

2

2105

Other liabilities

1,577

858

      Non-Federal liabilities:

2201

Accounts payable

13

8

[[Page 906]]

2204

Non-federal liabilities for loan guarantees

3,465

3,386





2999

Total liabilities

5,058

4,254





4999

Negative subsidy BA total [36-1119]

5,058

4,254

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

                                

                       Housing Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Acquisition of homes..............           7           6           4
00.04 Acquisition of defaulted 
        guaranteed loans................           6           4           3
00.05 Repurchase of loans sold..........                       1           2
                                           ---------   ---------  ----------
00.91   Total capital investments.......          13          11           9
                                           ---------   ---------  ----------
01.00   Total capital investments.......          13          11           9
01.02 Property management expense.......           3           3           2
01.03 Sales expense.....................           1           1           1
01.04 Claims Processed and Repaid 
        Default Claims..................          -8          -7          -7
01.05 Other operating expenses..........           2           2           2
                                           ---------   ---------  ----------
01.91   Total operating expenses........          -2          -1          -2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 33.0)...................          11          10           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          32          22
22.00 New budget authority (gross)......          33          10           7
22.40 Capital transfer to general fund..         -32         -22
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          33          10           7
23.95 Total new obligations.............         -11         -10          -7
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          22
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).          82          69          58
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1
69.27     Capital transfer to general 
            fund........................         -50         -59         -51
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          33          10           7
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           2
73.10 Total new obligations.............          11          10           7
73.20 Total outlays (gross).............         -10         -12          -7
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           9          10           7
86.98 Outlays from mandatory balances...           1           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10          12           7
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            direct loan financing 
            account.....................         -51         -46         -41
88.40     Loan and other repayments.....         -14         -10          -6
88.40     Sale of homes, cash...........         -16         -13         -10
88.40     Interest on loans.............          -1          -1          -1
88.40     Other revenues................
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -82         -70         -58
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         -50         -60         -51
90.00 Outlays...........................         -72         -58         -51
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.03 Total investments, start of year: 
        non-Federal securities: Market 
        value...........................                     138         138
92.04 Total investments, end of year: 
        non-Federal securities: Market 
        value...........................         138         138         138
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          75          45          35
1232  Disbursements: Purchase of loans 
        assets from the public..........           1
1251  Repayments: Repayments and 
        prepayments.....................         -14          -9          -6
      Write-offs for default:

1263    Direct loans....................          -1          -1          -1
1264    Other adjustments, net..........         -16
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          45          35          28
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      10,992      12,919      10,177
2251  Repayments and prepayments........      -1,112      -2,676      -1,875
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....          -6          -5          -5
2262    Terminations for default that 
          result in acquisition of 
          property......................         -68         -61         -55
2264    Other adjustments, net..........       3,113
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      12,919      10,177       8,242
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       5,828       4,591       3,719
----------------------------------------------------------------------------

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

2331    Disbursements for guaranteed 
          loan claims...................           8           7           5
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

33

23

        Investments in US securities:
1106

Receivables, net

6

6

1201

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

178

137

1601

Direct loans, gross

74

45

1602

Interest receivable

1

5





1604

Direct loans and interest receivable, net

75

50

1605

Accounts receivable



1

1606

Other



27





1699

Value of assets related to direct loans

75

78

1703

Allowance for estimated uncollectible loans and interest (-)

-287



1705

Accounts receivable from foreclosed property

287



1706

Foreclosed property

17







1799

Value of assets related to loan guarantees

17







1999

Total assets

309

244

    LIABILITIES:
2103

Federal liabilities: Debt

302

237

[[Page 907]]

2207

Non-Federal liabilities: Other

7

7





2999

Total liabilities

309

244





4999

Total liabilities and net position

309

244

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

                                

           Native American Veteran Housing Loan Program Account



     For administrative expenses to carry out the direct loan program 
authorized by subchapter V of chapter 37 of title 38, United States 
Code, $628,000.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-1120-0-1-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.05 Upward reestimate and interest 
        onreestimate for direct loan 
        subsidy.........................                       3
00.09 Administrative expenses...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           1           4           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           2           2
22.00 New budget authority (gross)......           1           4           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           6           3
23.95 Total new obligations.............          -1          -4          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

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

60.00   Appropriation...................                       3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           1           4           1
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.97 Outlays from new mandatory 
        authority.......................                       3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           4           1
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 36-1120-0-1-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115002Native American Direct Loans......           4           4           4
                                           ---------   ---------  ----------
115999Total direct loan levels..........           4           4           4
    Direct loan subsidy (in percent):
132002Native American Direct Loans......      -13.79      -13.46      -14.48
                                           ---------   ---------  ----------
132999Weighted average subsidy rate.....      -13.79      -13.46      -14.48
    Direct loan subsidy budget authority:
133002Native American Direct Loans......          -1          -1          -1
                                           ---------   ---------  ----------
133999Total subsidy budget authority....          -1          -1          -1
    Direct loan subsidy outlays:
134002Native American Direct Loans......                      -1          -1
                                           ---------   ---------  ----------
134999Total subsidy outlays.............                      -1          -1
    Direct loan upward reestimates:
135002Native American Direct Loans......                       3
                                           ---------   ---------  ----------
135999Total upward reestimate budget 
        authority.......................                       3
    Direct loan downward reestimates:
137002Native American Direct Loans......          -3          -1
                                           ---------   ---------  ----------
137999Total downward reestimate budget 
        authority.......................          -3          -1
----------------------------------------------------------------------------

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

    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. This program began as a pilot in 
1993 and was made permanent on June 15, 2006 through Public Law 109-233.

                                

              Native American Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loans......................           4           4           4
00.02 Interest on Treasury borrowing....           3           2           2
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................           7           6           6
08.01 Negative Subsidies Obligated......                       1           1
08.02 Payment of downward reestimate to 
        receipt account.................           3           1
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............           3           2           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          10           8           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1
22.00 New financing authority (gross)...          38           8           7
22.60 Portion applied to repay debt.....         -29
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          10           8           7
23.95 Total new obligations.............         -10          -8          -7
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          33           5           5
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).           5           6           3
69.47     Portion applied to repay debt.                      -3          -1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........           5           3           2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          38           8           7
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1
73.10 Total new obligations.............          10           8           7
73.20 Total financing disbursements 
        (gross).........................         -11          -9          -7
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................          11           9           7
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                      -3
88.25     Interest on uninvested funds..          -2
88.40     Non-federal sources--
            Repayments and prepayments 
            of principal................          -2          -1          -1
88.40     Non-Federal sources--Interest 
            received on loans...........          -1          -2          -2
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................          -5          -6          -3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          33           2           4

[[Page 908]]

90.00 Financing disbursements...........           6           3           4
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4130-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          30          30
1121  Limitation available from carry-
        forward.........................
1131  Direct loan obligations exempt 
        from limitation.................                                   4
1142  Unobligated direct loan limitation 
        (-).............................         -26         -26
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           4           4           4
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          27          30          33
1231  Disbursements: Direct loan 
        disbursements...................           5           4           4
1251  Repayments: Repayments and 
        prepayments.....................          -2          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          30          33          36
---------------------------------------------------------------------------

    The account preceding this section contains information on the 
Native American Veterans Housing Loan program, and the account following 
this section contains information on 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, these non-
budgetary accounts record 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 accounts are a means of financing and are not 
included in the budget totals.

                             Balance Sheet (in millions of dollars)

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

2005 actual

2006 actual

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

1101

Fund balances with Treasury

2

1

        Investments in US securities:
1106

Receivables, net



3

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

1401

Direct loans receivable, gross

27

30





1499

Net present value of assets related to direct loans

27

30

1901

Other Federal assets: Other assets

3

4





1999

Total assets

32

38

    LIABILITIES:
      Federal liabilities:

2101

Accounts payable (Liabilities)

-3



2103

Federal liabilities debt

32

36

2105

Other liabilities

3

2





2999

Total liabilities

32

38





4999

Negative subsidy BA total [36-1120]

32

38

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

                                

            Transitional Housing Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Guaranteed (Direct) Loans.........                                  12
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5           5           5
22.00 New financing authority (gross)...                                  21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           5          26
23.95 Total new obligations.............                                 -12
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           5           5          14
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............                                  12
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).           2           2           3
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          -2          -2           6
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........                                   9
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                                  21
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  12
73.20 Total financing disbursements 
        (gross).........................          -2          -2          -3
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           2           2          -6
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                                   3
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................           2           2           3
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2          -2          -2
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............           2           2          -6
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                  13
90.00 Financing disbursements...........           2                       1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4258-0-3-704      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1121  Limitation available from carry-
        forward.........................          95          95          95
1143  Unobligated limitation carried 
        forward (P.L. xx) (-)...........         -95         -95         -83
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                                  12
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                       2           4
1231  Disbursements: Direct loan 
        disbursements...................           2           2           3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           2           4           7
---------------------------------------------------------------------------


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 36-4258-0-
3-704

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets: Investments in US 
          securities:

1106

Receivables, net



5

1206

Non-Federal assets: Receivables, net



2





1999

Total assets



7

    LIABILITIES:
2103

Federal liabilities: Debt



2

2207

Non-Federal liabilities: Loan guarantee



5





2999

Total liabilities



7





4999

Negative subsidy BA total [36-1119]



7

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

[[Page 909]]



                                

         Vocational Rehabilitation Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4112-0-3-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loans......................           3           3           3
00.02 Interest on Treasury borrowing....
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............           3           3           3
08.01 Negative subsidies obligated......
08.02 Downward Reestimate to Receipt 
        Acct............................           1
08.04 Downward Interest Reestimate to 
        Receipt Acct....................
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           4           3           3
----------------------------------------------------------------------------

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

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow (indefinite)           3           3           3
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).           3           3           3
69.47     Portion applied to repay debt.          -3          -3          -3
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           3           3           3
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           4           3           3
73.20 Total financing disbursements 
        (gross).........................          -4          -3          -3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................           4           3           3
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from Program Account, 
            Upward Reestimate...........                      -1
88.40     Repayments and prepayments of 
            principal...................          -3          -3          -3
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................          -3          -4          -3
----------------------------------------------------------------------------

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

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4112-0-3-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........           3           3           3
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           3           3           3
----------------------------------------------------------------------------

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


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 36-4112-0-
3-702

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets: Investments in US 
          securities:

1107

Other (Assets)



1

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

1401

Direct loans receivable, gross



1





1499

Net present value of assets related to direct loans



1





1999

Total assets



2

    LIABILITIES:
2103

Federal liabilities: Debt



2





2999

Total liabilities



2





4999

Total direct loan levels [36-0151]



2

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

                                

  

                               Trust Funds

               Post-Vietnam Era Veterans Education Account

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............           1           1           1
                                           ---------   ---------  ----------
01.99 Balance, start of year............           1           1           1
    Receipts:
02.00 Contributions, Post-Vietnam era 
        veterans education account......                                   1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           1           1           2
    Appropriations:
05.00 Post-Vietnam era veterans 
        education account...............                                  -1
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           1           1           1
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Payment to post-Vietnam era 
        trainees........................           1           1           1
00.03 Participant disenrollments........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2           2           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          71          69          67
22.00 New budget authority (gross)......                                   1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          71          69          68
23.95 Total new obligations.............          -2          -2          -2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          69          67          66
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

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

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

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

    Net budget authority and outlays:
89.00 Budget authority..................                                   1
90.00 Outlays...........................           2           2           2
---------------------------------------------------------------------------

    This account consists of voluntary contributions by eligible 
servicepersons and matching contributions provided by the Department of 
Defense. The fund provides educational assist

[[Page 910]]

ance 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]

                                     2006 actual  2007 est.   2008 est.
Total budget authority........             $0             $0              $1
  Servicepersons contributions             $0             $0              $0
  Transferred from Department 
    of Defense (bonus)........             $0             $0              $0
  Transferred from Department 
    of Defense (matching).....             $0             $0              $0
  Transferred from Department 
    of Defense (section 901)..             $0             $0              $0
Total participants (end of 
year).........................        195,862        194,918         194,196
Total contributors (end of 
year).........................             72            156             128
Average contribution per 
contributor (actual dollars)..         $4,625         $2,632          $2,632
Number of disenrollments......            816            500             300
Total refunds.................             $1             $1              $0
Total trainees................            627            600             550
Total trainee cost............             $1             $1              $1
Average cost per trainee 
(actual dollars)..............         $1,552         $1,618          $1,728
Section 901 trainees..........             39             31              31


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
41.0  Grants, subsidies, and 
        contributions...................           1           1           1
44.0  Refunds...........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           2           2           2
---------------------------------------------------------------------------

                                

                   National Service Life Insurance Fund

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............       9,134       8,735       8,285
                                           ---------   ---------  ----------
01.99 Balance, start of year............       9,134       8,735       8,285
    Receipts:
02.00 NSLI fund, Interest...............         632         587         552
02.01 NSLI fund, Payments from general 
        and special funds...............           1           1           1
02.20 NSLI fund, Premium and other 
        receipts........................         154         141         128
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         787         729         681
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...       9,921       9,464       8,966
    Appropriations:
05.00 National service life insurance 
        fund............................        -788        -729        -681
05.01 National service life insurance 
        fund............................        -398        -450        -497
                                           ---------   ---------  ----------
05.99   Total appropriations............      -1,186      -1,179      -1,178
                                           ---------   ---------  ----------
07.99 Balance, end of year..............       8,735       8,285       7,788
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Death claims......................         664         673         680
00.02 Disability claims.................           9           8           7
00.03 Matured endowments................          11          12          15
00.04 Cash surrenders...................          32          30          29
00.05 Dividends.........................         240         214         196
00.06 Interest paid on dividend credits 
        and deposits....................          55          50          49
00.07 Payment to Insurance account......          22          25          24
                                           ---------   ---------  ----------
00.91   Total operating expenses........       1,033       1,012       1,000
02.01 Capital investment: Policy loans..          62          61          59
                                           ---------   ---------  ----------
02.93   Total direct obligations........       1,095       1,073       1,059
09.01 Death claims......................         246         256         254
09.02 Disability Claims.................           3           3           3
09.03 Matured Endowments................           4           4           6
09.04 Cash Surrenders...................          12          11          11
09.05 Dividends.........................          89          81          73
09.06 Interest paid on dividend credits 
        and deposits....................          20          19          18
09.07 Payment to Insurance account......           8           9           9
                                           ---------   ---------  ----------
09.09   Reimbursable program............         382         383         374
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,477       1,456       1,433
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,478       1,456       1,432
23.95 Total new obligations.............      -1,477      -1,456      -1,433
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......         788         729         681
60.28   Appropriation (previously 
          unavailable)..................         398         450         497
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       1,186       1,179       1,178
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         292         277         254
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,478       1,456       1,432
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,472       1,457       1,430
73.10 Total new obligations.............       1,477       1,456       1,433
73.20 Total outlays (gross).............      -1,492      -1,483      -1,465
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..       1,457       1,430       1,398
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,080       1,006         935
86.98 Outlays from mandatory balances...         412         477         530
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,492       1,483       1,465
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1
88.40     Repayments of loans...........         -94         -88         -83
88.40     Optional settlements..........          -1          -1          -1
88.40     Net income offsets adjustments        -196        -188        -170
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -292        -277        -254
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,186       1,179       1,178
90.00 Outlays...........................       1,200       1,206       1,211
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      10,597      10,189       9,711
92.02 Total investments, end of year: 
        Federal securities: Par value...      10,189       9,711       9,180
---------------------------------------------------------------------------

    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 
declining claim workload. The trend in the number and amount of policies 
in force is shown as follows:

                     POLICIES AND INSURANCE IN FORCE

                                     2006 actual  2007 est.   2008 est.
Number of policies............      1,106,597      1,010,380         915,630
Insurance in force (dollars in 
millions).....................        $12,360        $11,443         $10,553

    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

[[Page 911]]

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 $10,306 million as of September 30, 2007 to $9,732 million 
as of September 30, 2008. The actuarial estimate of policy obligations 
as of September 30, 2008, totals $9,484 million, leaving a balance of 
$248 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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Balance, start of year............      10,606      10,193       9,716
                                           ---------   ---------  ----------
0199    Total balance, start of year....      10,606      10,193       9,716
    Cash income during the year:
      Current law:

        Receipts:
1200      NSLI fund, Interest...........         632         587         552
1201      NSLI fund, Payments from 
            general and special funds...           1           1           1
        Offsetting receipts 
            (proprietary):
1220      NSLI fund, Premium and other 
            receipts....................         154         141         128
        Offsetting collections:
1280      National service life 
            insurance fund..............           1           1           1
1281      National service life 
            insurance fund..............         196         188         170
1282      National service life 
            insurance fund..............          94          88          83
1283      National service life 
            insurance fund..............           1
1299    Income under present law........       1,079       1,006         935
                                           ---------   ---------  ----------
3299    Total cash income...............       1,079       1,006         935
    Cash outgo during year:
      Current law:

4500    National service life insurance 
          fund..........................      -1,492      -1,483      -1,465
4599    Outgo under current law (-).....      -1,492      -1,483      -1,465
                                           ---------   ---------  ----------
6599    Total cash outgo (-)............      -1,492      -1,483      -1,465
    Unexpended balance, end of year:
8700  Uninvested balance (net), end of 
        year............................           4           5           6
8701  Invested balance, end of year.....      10,189       9,711       9,180
                                           ---------   ---------  ----------
8799    Total balance, end of year......      10,193       9,716       9,186
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

33.0    Investments and loans...........          62          61          59
42.0    Insurance claims and indemnities         716         723         731
43.0    Interest and dividends..........         317         289         269
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,095       1,073       1,059
99.0  Reimbursable obligations..........         382         383         374
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,477       1,456       1,433
---------------------------------------------------------------------------

                                

               United States Government Life Insurance Fund

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............          29          25          21
                                           ---------   ---------  ----------
01.99 Balance, start of year............          29          25          21
    Receipts:
02.00 Interest and profits on 
        investments in public debt 
        securities, USGLI...............           3           2           2
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          32          27          23
    Appropriations:
05.00 United States Government life 
        insurance fund..................          -3          -2          -2
05.01 United States Government life 
        insurance fund..................          -4          -4          -4
                                           ---------   ---------  ----------
05.99   Total appropriations............          -7          -6          -6
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          25          21          17
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 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
09.02 Dividends.........................           1           1           1
                                           ---------   ---------  ----------
09.09   Reimbursable program............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           7           7           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           7           6           6
23.95 Total new obligations.............          -7          -7          -7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......           3           2           2
60.28   Appropriation (previously 
          unavailable)..................           4           4           4
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           7           6           6
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          15          14          13
73.10 Total new obligations.............           7           7           7
73.20 Total outlays (gross).............          -8          -8          -8
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          14          13          12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           3           2           2
86.98 Outlays from mandatory balances...           5           6           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           8           8           8
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           7           6           6
90.00 Outlays...........................           8           8           8
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          45          39          34
92.02 Total investments, end of year: 
        Federal securities: Par value...          39          34          29
---------------------------------------------------------------------------

    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

                                     2006 actual  2007 est.   2008 est.
Number of policies............          7,841          6,660           5,560
Insurance in force (dollars in 
millions).....................            $24            $20             $16

    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 $35 million 
as of September 30, 2007, to $30 million as of September 30, 2008, as an 
increasing number of policies mature through death or disability. The 
actuarial evaluation of policy obligations as of September 30, 2008, 
totals $29 million, leaving a balance of $1 million for contingency 
reserves.

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


[[Page 912]]



                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Balance, start of year............          44          39          33
                                           ---------   ---------  ----------
0199    Total balance, start of year....          44          39          33
    Cash income during the year:
      Current law:

        Receipts:
1200      Interest and profits on 
            investments in public debt 
            securities, USGLI...........           3           2           2
1299    Income under present law........           3           2           2
                                           ---------   ---------  ----------
3299    Total cash income...............           3           2           2
    Cash outgo during year:
      Current law:

4500    United States Government life 
          insurance fund................          -8          -8          -8
4599    Outgo under current law (-).....          -8          -8          -8
                                           ---------   ---------  ----------
6599    Total cash outgo (-)............          -8          -8          -8
    Unexpended balance, end of year:
8700  Uninvested balance (net), end of 
        year............................                      -1          -2
8701  Invested balance, end of year.....          39          34          29
                                           ---------   ---------  ----------
8799    Total balance, end of year......          39          33          27
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 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..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           7           7           7
---------------------------------------------------------------------------

                                

                   Veterans Special Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-8455-0-8-701      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Death claims......................          71          82          88
09.02 Cash surrenders...................           4           4           4
09.03 Dividends.........................          79          79          72
09.04 All other.........................          30          32          34
09.05 Payments to Insurance account.....           6           6           7
09.06 Capital investment................          15          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........         205         218         220
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,577       1,590       1,583
22.00 New budget authority (gross)......         218         211         205
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,795       1,801       1,788
23.95 Total new obligations.............        -205        -218        -220
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........       1,590       1,583       1,568
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         218         211         205
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         352         371         390
73.10 Total new obligations.............         205         218         220
73.20 Total outlays (gross).............        -186        -199        -203
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         371         390         407
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         186         199         203
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities        -138        -134        -130
88.40     Interest on loans.............          -5          -5          -5
88.40     Insurance premiums earned.....         -59         -57         -55
88.40     Repayments of loans...........         -16         -15         -15
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -218        -211        -205
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -32         -12          -2
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       1,928       1,960       1,972
92.02 Total investments, end of year: 
        Federal securities: Par value...       1,960       1,972       1,955
---------------------------------------------------------------------------

    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

                                     2006 actual  2007 est.   2008 est.
Number of policies............        199,262        191,250         182,800
Insurance in force (dollars in 
millions).....................         $2,453         $2,406          $2,350

    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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
33.0  Investments and loans.............          15          15          15
42.0  Insurance claims and indemnities..          86          99         107
43.0  Interest and dividends............         104         104          98
                                           ---------   ---------  ----------
99.9    Total new obligations...........         205         218         220
---------------------------------------------------------------------------

                                


 
                       DEPARTMENTAL ADMINISTRATION

                              Federal Funds

                       Construction, Major Projects

     For constructing, altering, extending and improving any of the 
facilities including parking projects under the jurisdiction or for the

[[Page 913]]

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, construction management 
services, maintenance or guarantee period services costs associated with 
equipment guarantees provided under the project, services of claims 
analysts, offsite utility and storm drainage system construction costs, 
and site acquisition, where the estimated cost of a project is more than 
the amount set forth in section 8104(a)(3)(A) of title 38, United States 
Code, or where funds for a project were made available in a previous 
major project appropriation, $727,400,000, to remain available until 
expended, of which $2,000,000 shall be to make reimbursements as 
provided in section 13 of the Contract Disputes Act of 1978 (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 
reviewed by the Congress in the budgetary process: Provided further, 
That funds provided in this appropriation for fiscal year 2008, 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, 2008; and (2) by the awarding of a 
construction contract by September 30, 2009: Provided further, That the 
Secretary of Veterans Affairs shall promptly report in writing to the 
Committees on Appropriations of both Houses of Congress any approved 
major construction project in which obligations are not incurred within 
the time limitations established above.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Medical Programs..................         333         578       1,327
00.02 National Cemeteries...............          54         149         167
00.05 Staff Offices.....................           4           6          29
09.01 Reimbursable program..............          29
                                           ---------   ---------  ----------
10.00   Total new obligations...........         420         733       1,523
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         996       2,166       1,717
22.00 New budget authority (gross)......       1,590         284         728
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,586       2,450       2,445
23.95 Total new obligations.............        -420        -733      -1,523
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........       2,166       1,717         922
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         607         284         728
40.30   Appropriations adjusted pursuant 
          to PL109-148;234..............         954
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,561         284         728
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          29
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,590         284         728
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         478         660         790
73.10 Total new obligations.............         420         733       1,523
73.20 Total outlays (gross).............        -238        -603        -741
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         660         790       1,572
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          29           2           5
86.93 Outlays from discretionary 
        balances........................         209         601         736
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         238         603         741
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -6
88.40     Non-Federal sources...........         -23
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -29
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,561         284         728
90.00 Outlays...........................         209         603         741
---------------------------------------------------------------------------

    Major
        The ``Construction, major projects'' appropriations, fund 
    construction projects costing more than $10 million, and support new 
    cemeteries in the vicinity of Bakersfield, CA; Birmingham, AL; 
    Columbia/Greenville, SC; Jacksonville, FL; Philadelphia, PA; 
    Sarasota County, FL; and Southeastern, PA; cemetery expansion in 
    Fort Sam Houston, TX; fund facility improvements, realignments, and 
    support seismic corrections as related to CARES in Pittsburgh, PA; 
    Denver, CO; Orlando, FL; Las Vegas, NV; Lee County, FL; Syracuse, 
    NY.
        Additional funds are provided to abate asbestos and other 
    hazardous materials from Department-owned buildings, reimburse the 
    Judgment Fund, improve facility security at Department-owned 
    buildings, Base Realignment and Closure (BRAC) activities, and 
    support advance planning and design activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0110-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

25.2    Other services..................           4           5           6
26.0    Supplies and materials..........           1           2           3
31.0    Equipment.......................           1           2           3
32.0    Land and structures.............         385         724       1,511
                                           ---------   ---------  ----------
99.0      Direct obligations............         391         733       1,523
99.0  Reimbursable obligations..........          29
                                           ---------   ---------  ----------
99.9    Total new obligations...........         420         733       1,523
---------------------------------------------------------------------------

                                

                       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 section 8104(a)(3)(A) of title 38, United States Code, 
$233,396,000, 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 such section, 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.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:

[[Page 914]]

00.01 Medical Programs..................         142         145         180
00.02 National Cemeteries...............          27          31          24
00.03 Regional Offices..................          13          10          13
00.04 Staff Offices.....................           6           9          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........         188         195         233
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          62         107          80
22.00 New budget authority (gross)......         233         168         233
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         295         275         313
23.95 Total new obligations.............        -188        -195        -233
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         107          80          80
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         201         168         233
42.00   Transferred from other accounts.          32
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         233         168         233
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         403         332         306
73.10 Total new obligations.............         188         195         233
73.20 Total outlays (gross).............        -259        -221        -198
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         332         306         341
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          27          30          42
86.93 Outlays from discretionary 
        balances........................         232         191         156
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         259         221         198
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         233         168         233
90.00 Outlays...........................         259         221         198
---------------------------------------------------------------------------

    Minor
        The ``Construction minor projects'' appropriation, which funds 
    construction projects costing less than $10 million with a minor 
    improvement component costing $500,000 or more is used to improve 
    the infrastructure of medical facilities and other Department owned 
    facilities to reduce the risk to patient life and safety, correct 
    code deficiencies, improve national cemeteries and regional and 
    staff offices.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
25.2  Other services....................          29          28          27
26.0  Supplies and materials............           2           3           3
31.0  Equipment.........................           1           1           1
32.0  Land and structures...............         156         163         202
                                           ---------   ---------  ----------
99.9    Total new obligations...........         188         195         233
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................          19          19          19
---------------------------------------------------------------------------

                                

        Grants for Construction of State Extended Care Facilities

     For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter existing 
hospital, nursing home and domiciliary facilities in State homes, for 
furnishing care to veterans as authorized by sections 8131-8137 of title 
38, United States Code, $85,000,000, to remain available until expended.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0181-0-1-703      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........          88          84          85
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          88          84          85
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3                       1
22.00 New budget authority (gross)......          85          85          85
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          88          85          86
23.95 Total new obligations.............         -88         -84         -85
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                       1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          85          85          85
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         287         253         245
73.10 Total new obligations.............          88          84          85
73.20 Total outlays (gross).............        -122         -92         -86
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         253         245         244
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       2           2
86.93 Outlays from discretionary 
        balances........................         122          90          84
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         122          92          86
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          85          85          85
90.00 Outlays...........................         122          92          86
---------------------------------------------------------------------------


                                

           Grants for Construction of State Veterans Cemeteries

     For grants to aid States in establishing, expanding, or improving 
State veterans cemeteries as authorized by section 2408 of title 38, 
United States Code, $32,000,000, to remain available until expended.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0183-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........          18          32          32
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          18          32          32
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                      14
22.00 New budget authority (gross)......          32          18          32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          32          32          32
23.95 Total new obligations.............         -18         -32         -32
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          32          18          32
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          46          27          44
73.10 Total new obligations.............          18          32          32
73.20 Total outlays (gross).............         -37         -15         -20
                                           ---------   ---------  ----------

[[Page 915]]


74.40   Obligated balance, end of year..          27          44          56
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      10          17
86.93 Outlays from discretionary 
        balances........................          37           5           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          37          15          20
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          32          18          32
90.00 Outlays...........................          37          15          20
---------------------------------------------------------------------------


                                

                       General Operating Expenses

    For necessary operating expenses of the Department of Veterans 
Affairs, not otherwise provided for, including administrative expenses 
in support of Department-wide capital planning, management and policy 
activities, uniforms or allowances therefor; not to exceed $25,000 for 
official reception and representation expenses; hire of passenger motor 
vehicles; and reimbursement of the General Services Administration for 
security guard services, and the Department of Defense for the cost of 
overseas employee mail, $1,471,837,000: Provided, That expenses for 
services and assistance authorized under paragraphs (1), (2), (5), and 
(11) of section 3104(a) of title 38, United States Code, that the 
Secretary of Veterans Affairs 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 $1,198,294,000: Provided further, That 
of the funds made available under this heading, not to exceed 
$75,000,000 shall be available for obligation until September 30, 2009: 
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.

             Vocational Rehabilitation Loans Program Account

                      (including transfer of funds)

    For the cost of direct loans, $71,000, as authorized by chapter 31 
of title 38, United States Code: 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: Provided further, That funds made 
available under this heading are available to subsidize gross 
obligations for the principal amount of direct loans not to exceed 
$3,287,000.
    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''.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Compensation and pensions.........         887         919         941
00.02 Education.........................          82          90          93
00.03 Vocational rehabilitation and 
        counseling......................         127         149         159
00.04 Insurance.........................           4           4           5
00.06 General administration............         301         335         274
                                           ---------   ---------  ----------
01.00   Direct Program by Activities--
          Subtotal (running)............       1,401       1,497       1,472
09.01 Compensation and pensions.........          94         103         102
09.02 Education.........................           1           2           3
09.04 Insurance.........................          35          40          36
09.05 Housing...........................         129         127         118
09.06 General administration............          62          62          64
                                           ---------   ---------  ----------
09.99   Total reimbursable program......         321         334         323
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,722       1,831       1,795
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          86          59
22.00 New budget authority (gross)......       1,697       1,772       1,795
22.30 Expired unobligated balance 
        transfer to unexpired account...           9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,792       1,831       1,795
23.95 Total new obligations.............      -1,722      -1,831      -1,795
23.98 Unobligated balance expiring or 
        withdrawn.......................         -11
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          59
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,411       1,439       1,472
40.30   Appropriations adjusted pursuant 
          to PL 109-148 (Hurricane 
          Supplemental).................          25
41.00   Transferred to other accounts...         -63          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,373       1,438       1,472
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).         321         334         323
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           3
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         324         334         323
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,697       1,772       1,795
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         432         270         365
73.10 Total new obligations.............       1,722       1,831       1,795
73.20 Total outlays (gross).............      -1,866      -1,736      -1,793
73.40 Adjustments in expired accounts 
        (net)...........................         -15
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         270         365         367
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,500       1,490       1,507
86.93 Outlays from discretionary 
        balances........................         366         246         286
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,866       1,736       1,793
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -321        -334        -323
      Against gross budget authority only:

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

    Net budget authority and outlays:
89.00 Budget authority..................       1,373       1,438       1,472
90.00 Outlays...........................       1,545       1,402       1,470
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Vocational Rehabilitation.........           3           3           3
                                           ---------   ---------  ----------
115999Total direct loan levels..........           3           3           3
    Direct loan subsidy (in percent):
132001Vocational Rehabilitation.........        1.59        2.00        2.16
                                           ---------   ---------  ----------
132999Weighted average subsidy rate.....        1.59        2.00        2.16
    Direct loan downward reestimates:
137001Vocational Rehabilitation.........          -1
                                           ---------   ---------  ----------
137999Total downward reestimate budget 
        authority.......................          -1
---------------------------------------------------------------------------

    Note.--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 fiscal, personnel, and 
legal services.

    General Administration.--Includes departmental executive direction, 
departmental support offices, the General Counsel, and the Board of 
Veterans' Appeals.

[[Page 916]]

                  General Operating Expenses--Continued

    Funding for non-personal services Information Technology is included 
in VA's central IT fund beginning in FY2006.

    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.

    Note.--Reflects FTE treated as reimbursements in all years and the 
effects of Credit Reform, per P.L. 101-508.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         792         803         813
11.5      Other personnel compensation..          36          40          41
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         828         843         854
12.1    Civilian personnel benefits.....         222         225         226
21.0    Travel and transportation of 
          persons.......................          15          17          17
22.0    Transportation of things........           5           6           6
23.1    Rent............................         109         115         117
23.3    Communications, utilities, and 
          miscellaneous charges.........          22          25          26
24.0    Printing and reproduction.......           4           5           6
25.2    Other services..................         172         234         193
26.0    Supplies and materials..........          11          12          12
31.0    Equipment.......................          13          15          15
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,401       1,497       1,472
99.0  Reimbursable obligations..........         321         334         323
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,722       1,831       1,795
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................      13,288      13,623      13,432
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       2,111       2,070       1,900
---------------------------------------------------------------------------

                                

                       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, 
$72,599,000, of which $3,630,000 shall remain available until September 
30, 2009.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
01.01 Direct program....................          72          69          73
                                           ---------   ---------  ----------
01.92   Total direct program............          72          69          73
09.01 Reimbursable program..............           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          75          72          76
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3
22.00 New budget authority (gross)......          72          72          76
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          75          72          76
23.95 Total new obligations.............         -75         -72         -76
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          70          69          73
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          69          69          73
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          72          72          76
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          16          15          17
73.10 Total new obligations.............          75          72          76
73.20 Total outlays (gross).............         -76         -70         -74
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          15          17          19
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          63          60          64
86.93 Outlays from discretionary 
        balances........................          13          10          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          76          70          74
----------------------------------------------------------------------------

    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..................          69          69          73
90.00 Outlays...........................          73          67          71
---------------------------------------------------------------------------

    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. 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          41          44          40
11.5      Other personnel compensation..           4                       4
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          45          44          44
12.1    Civilian personnel benefits.....          12          13          13
21.0    Employee Travel.................           4           3           4
23.1    Rental payments to GSA..........           3           4           3
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           4           3           7
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           2
                                           ---------   ---------  ----------
99.0      Direct obligations............          72          69          73
99.0  Reimbursable obligations..........           3           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          75          72          76
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         455         458         445
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................          25          25          25
---------------------------------------------------------------------------

                                

                      Information Technology Systems

     For necessary expenses for information technology systems and 
telecommunications support, including developmental information systems 
and operational information systems; including pay and associated cost 
for operations and maintenance associated staff; for the capital asset 
acquisition of information technology systems, including

[[Page 917]]

management and related contractual costs of said acquisitions, including 
contractual costs associated with operations authorized by chapter 3109 
of title 5, United States Code, $1,859,217,000, to remain available 
until September 30, 2009: Provided, That none of these funds may be 
obligated until the Department of Veterans Affairs submits to the 
Committees on Appropriations of both Houses of Congress a plan for 
expenditure that: (1) meets the capital planning and investment control 
review requirements established by the Office of Management and Budget; 
(2) complies with the Department of Veterans Affairs enterprise 
architecture; (3) conforms with an established enterprise life cycle 
methodology; and (4) complies with the acquisition rules, requirements, 
guidelines, and systems acquisition management practices of the Federal 
Government: Provided further, That within 60 days of enactment of this 
Act, the Secretary of Veterans Affairs shall submit to the Committees on 
Appropriations of both Houses of Congress a reprogramming base letter 
which provides, by project, the costs included in this appropriation.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Veterans Health Administration....         781         440         463
00.02 Veterans Benefits Administration..          68          48          66
00.03 National Cemetery Administration..           5           1           1
00.04 General administration and other..         237         728       1,329
                                           ---------   ---------  ----------
01.00   Direct Program by Activities--
          Subtotal......................       1,091       1,217       1,859
09.01 Credit administration.............          19          22          32
09.02 Insurance administration..........           3           4           6
09.03 Education administration..........           1           5
09.04 Veterans Health Administration....           2           3           4
09.05 General administration and other..           4           4           9
                                           ---------   ---------  ----------
09.09   Reimbursable program--Subtotal..          29          38          51
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,120       1,255       1,910
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                     140
22.00 New budget authority (gross)......       1,260       1,115       1,910
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,260       1,255       1,910
23.95 Total new obligations.............      -1,120      -1,255      -1,910
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         140
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,213       1,077       1,859
42.00   Transferred from other accounts.          18
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,231       1,077       1,859
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          29          38          51
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,260       1,115       1,910
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                     469         609
73.10 Total new obligations.............       1,120       1,255       1,910
73.20 Total outlays (gross).............        -651      -1,115      -1,743
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         469         609         776
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         651         685       1,304
86.93 Outlays from discretionary 
        balances........................                     430         439
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         651       1,115       1,743
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -29         -38         -51
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,231       1,077       1,859
90.00 Outlays...........................         622       1,077       1,692
---------------------------------------------------------------------------

     This account was established by Congress in 2005 under P.L. 109-114 
in order to support the Department's reorganization and centralization 
of information technology activities. For FY 2008, this account includes 
the operations and maintenance personnel and related support required to 
execute the majority of information technology projects, especially 
those associated with the provision of veterans' health care and the 
processing of veterans' benefits.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................                                 502
21.0    Travel and transportation of 
          persons.......................                                  12
23.2    Rental payments to others.......          20          22          23
23.3    Communications, utilities, and 
          miscellaneous charges.........         145         160         166
25.2    Other services..................         385         430         520
25.3    Other purchases of goods and 
          services from Government 
          accounts......................         182         210         253
26.0    Supplies and materials..........          11          12          25
31.0    Equipment.......................         339         373         348
32.0    Land and structures.............           9          10          10
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,091       1,217       1,859
99.0  Reimbursable obligations..........          29          38          51
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,120       1,255       1,910
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................                               5,391
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................                                 138
---------------------------------------------------------------------------

                                

                    National Cemetery Administration

    For necessary expenses of the National Cemetery Administration for 
operations and maintenance, not otherwise provided for, including 
uniforms or allowances therefor; cemeterial expenses as authorized by 
law; purchase of one passenger motor vehicle for use in cemeterial 
operations; and hire of passenger motor vehicles, $166,809,000, of which 
not to exceed $8,340,000 shall be available until September 30, 2009.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
02.01 Administrative expenses...........         151         159         167
                                           ---------   ---------  ----------
10.00   Total new obligations...........         151         159         167
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           3
22.00 New budget authority (gross)......         151         156         167
22.30 Expired unobligated balance 
        transfer to unexpired account...           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         155         159         167
23.95 Total new obligations.............        -151        -159        -167
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         157         156         167
41.00   Transferred to other accounts...          -7
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         150         156         167

[[Page 918]]

58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         151         156         167
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          29          28          35
73.10 Total new obligations.............         151         159         167
73.20 Total outlays (gross).............        -150        -152        -161
73.40 Adjustments in expired accounts 
        (net)...........................          -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          28          35          41
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         127         126         134
86.93 Outlays from discretionary 
        balances........................          23          26          27
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         150         152         161
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................         150         156         167
90.00 Outlays...........................         149         152         161
---------------------------------------------------------------------------

    The mission of the National Cemetery Administration is to honor 
veterans with final resting places in national shrines and with lasting 
tributes that commemorate their service to our Nation. The National 
Cemetery Administration's vision is to serve all veterans and their 
families with the utmost dignity, respect, and compassion. Every 
national cemetery will be a place that inspires visitors to understand 
and appreciate the service and sacrifice of our Nation's veterans. There 
are four related programs managed by the National Cemetery 
Administration including: (1) burying eligible veterans and their family 
members in national cemeteries and maintaining the graves and their 
environs as national shrines; (2) administering grants to States in 
establishing, expanding, or improving State veteran cemeteries; (3) 
providing headstones and markers for the graves of eligible veterans in 
national, State, and private cemeteries; and (4) providing presidential 
memorial certificates to family and friends of deceased veterans, 
recognizing the veterans' contribution and service to the Nation.

    The National Cemetery Administration also reflects budget 
information for the National Cemetery Gift Fund and the National 
Cemetery Administration Facilities Operation Fund. Through the Gift 
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. Through the Facilities Operation Fund, the 
Secretary is authorized to lease any undeveloped land and unused or 
underutilized buildings of the National Cemetery Administration, or 
parts or parcels thereof, for a term not to exceed 10 years. Proceeds 
from such leases are deposited in the Facilities Operation Fund, and are 
available to cover costs incurred by the National Cemetery 
Administration in the operation and maintenance of property of the 
Administration.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          74          77          78
11.3      Other than full-time permanent           2           2           3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          76          79          81
12.1    Civilian personnel benefits.....          23          26          27
21.0    Travel and transportation of 
          persons.......................           2           2           3
22.0    Transportation of things........           1           1           1
23.1    Rent............................           2           1           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           4           4           4
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          29          33          34
26.0    Supplies and materials..........           7           7           8
31.0    Equipment.......................           5           5           6
                                           ---------   ---------  ----------
99.0      Direct obligations............         150         159         167
99.0  Reimbursable obligations..........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         151         159         167
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       1,527       1,573       1,582
---------------------------------------------------------------------------

                                

                               Supply Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable program-COGS-
        Merchandizing...................       1,880       2,588       2,692
09.02 Reimbursable program-Other-
        Operations......................          83          91          91
09.03 Reimbursable program-COGS-Printing 
        and Publications................          15          12          15
09.04 Reimbursable program-Other........                       1           1
09.05 Reimbursable program-Equipment-
        Procurement Services and 
        Distribution....................                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,978       2,693       2,800
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         658       1,392       1,392
22.00 New budget authority (gross)......       2,712       2,693       2,800
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,370       4,085       4,192
23.95 Total new obligations.............      -1,978      -2,693      -2,800
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........       1,392       1,392       1,392
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).       1,586       2,693       2,800
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........       1,126
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       2,712       2,693       2,800
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         -95      -1,090      -1,090
73.10 Total new obligations.............       1,978       2,693       2,800
73.20 Total outlays (gross).............      -1,847      -2,693      -2,800
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................      -1,126
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..      -1,090      -1,090      -1,090
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,847       2,693       2,800
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............      -1,432      -2,693      -2,800
88.40     Non-Federal sources...........        -154
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................      -1,586      -2,693      -2,800
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................      -1,126
----------------------------------------------------------------------------

[[Page 919]]



    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         261
---------------------------------------------------------------------------

    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 2008, Supply Fund sales are 
estimated to reach $1.4 billion.

    Operating results.--The Fund operated at a profit of $25 million in 
2006. The new total of retained earnings is $118 million. Operating 
expense as related to sales was 5 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............          32          37          38
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          33          38          39
12.1  Civilian personnel benefits.......           8           7           8
21.0  Travel and transportation of 
        persons.........................           4           6           7
22.0  Transportation of things..........           5          10          10
23.1  Rental payments to GSA............           3           2           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           2           2
24.0  Printing and reproduction.........          15           9          10
25.1  Advisory and assistance services..         300       1,421       1,477
26.0  Supplies and materials............       1,136         744         773
31.0  Equipment.........................         473         454         472
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,978       2,693       2,800
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         433         480         480
---------------------------------------------------------------------------

                                

                              Franchise Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable program..............         291         271
                                           ---------   ---------  ----------
10.00   Total new obligations...........         291         271
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          89         150         200
22.00 New budget authority (gross)......         352         321
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         441         471         200
23.95 Total new obligations.............        -291        -271
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         150         200         200
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).         311         321
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          41
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         352         321
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          22          -2          -2
73.10 Total new obligations.............         291         271
73.20 Total outlays (gross).............        -274        -271
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -41
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          -2          -2          -2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         274         321
86.98 Outlays from mandatory balances...                     -50
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         274         271
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -311        -321
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -41
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -37         -50
---------------------------------------------------------------------------

    VA Franchise Fund has permanent authority under P.L. 104-204, as 
amended by P.L. 109-114. Established in 1997, administrative services 
included in the Franchise Fund are financed on a fee-for-service basis. 
VA Enterprise Centers are the lines of business within the VA Franchise 
Fund and are expected to have net billings of about $298 million and 
employ 709 in 2008.

    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      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................          45          49
12.1  Civilian personnel benefits.......          11          12
21.0  Travel and transportation of 
        persons.........................           1           2
23.1  Rental payments to GSA............           5           5
23.3  Communications, utilities, and 
        miscellaneous charges...........          29          27
24.0  Printing and reproduction.........           3           4
25.2  Other services....................         178         166
26.0  Supplies and materials............           2           2
31.0  Equipment.........................          17           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         291         271
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 36-4539-0-4-705      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         670         744
---------------------------------------------------------------------------

                                


 
                     GENERAL FUND RECEIPT ACCOUNTS 

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  36-143500  General fund proprietary 
    interest receipts, not otherwise 
    classified..........................           2           2           2
  36-246800  Pharmaceutical copayments, 
    increase from PL 7/8................                                 311
  36-247300  Contributions from military 
    personnel, Veteran's Educational 
    Assistance Act of 1984..............         187         198         198

[[Page 920]]

  36-247600  Enrollment fee for PL 7/8..
  36-247700  Eliminate third party 
    offset..............................                                  44
  36-273330  Housing downward 
    reestimates.........................       1,292         961
  36-275510  Housing negative subsidies.          77         106         113
  36-322000  All other general fund 
    proprietary receipts including 
    budget clearing accounts............          40          16          16
General Fund Offsetting receipts from 
 the public.............................       1,598       1,283         684
----------------------------------------------------------------------------

Intragovernmental payments:.............
  36-388500  All other general fund 
    proprietary receipts including 
    budget clearing accounts............           6           6           6
                                           ---------   ---------  ----------
General Fund Intragovernmental payments.           6           6           6
---------------------------------------------------------------------------


                                


 
                        ADMINISTRATIVE PROVISIONS

                      (including transfer of funds)

    Sec. 201.  Any appropriation for fiscal year 2008 for ``Compensation 
and pensions'', ``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' may be transferred as necessary to any other of the 
mentioned appropriations: Provided, That before a transfer may take 
place, the Secretary of Veterans Affairs shall submit notice thereof to 
the Committees on Appropriations of both Houses of Congress and a period 
of 30 days has elapsed.
    Sec. 202.  Appropriations available in this title for salaries and 
expenses shall be available for services authorized by section 3109 of 
title 5, United States Code, hire of passenger motor vehicles; lease of 
a facility or land or both; and uniforms or allowances therefore, as 
authorized by sections 5901-5902 of title 5, United States Code.
    Sec. 203. No appropriations in this title 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 sections 7901-7904 of title 5, United 
States Code or the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.)), 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. 204. Appropriations available in this title 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 2007.
    Sec. 205. Appropriations available in this title shall be available 
to pay prior year obligations of corresponding prior year appropriations 
accounts resulting from sections 3328(a), 3334, and 3712(a) of title 31, 
United States Code, except that if such obligations are from trust fund 
accounts they shall be payable from ``Compensation and pensions''.
    Sec. 206.  Notwithstanding any other provision of law, during fiscal 
year 2008, 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 2008 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 
2008 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. 207.  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. 208.  Funds available in this title 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 $32,067,000 for the 
Office of Resolution Management and $3,148,000 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. 209.  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. 210.  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) may be 
deposited into the ``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. 211.  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.

                      (including transfer of funds)

    Sec. 212.  Such sums as may be deposited to the Medical Care 
Collections Fund pursuant to section 1729A of title 38, United States 
Code, may be transferred to ``Medical services'', to remain available 
until expended for the purposes of this account.

                      (including transfer of funds)

    Sec. 213.  Amounts made available for fiscal year 2008 under the 
``Medical services'', ``Medical administration'', and ``Medical 
facilities'' accounts may be transferred among the accounts to the 
extent necessary to implement the restructuring of the Veterans Health 
Administration accounts: Provided, That before a transfer may take 
place, the Secretary of Veterans Affairs shall submit notice thereof to 
the Committees on Appropriations of both Houses of Congress.
    Sec. 214.  Notwithstanding any other provision of law, the Secretary 
of Veterans Affairs shall allow veterans eligible under existing 
Department of Veterans Affairs medical care requirements and who reside 
in Alaska to obtain medical care services from medical facilities 
supported by the Indian Health Service or tribal organizations. The 
Secretary shall: (1) limit the application of this provision to rural 
Alaskan veterans in areas where an existing Department of Veterans 
Affairs facility or Veterans Affairs-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 Capital Asset Realignment 
for Enhanced Services activities; and (4) result in no additional cost 
to the Department of Veterans Affairs or the Indian Health Service.

                      (including transfer of funds)

    Sec. 215.  Such sums as may be deposited to the Department of 
Veterans Affairs Capital Asset Fund pursuant to section 8118 of title 
38, United States Code, may be transferred to the ``Construction, major 
projects'' and ``Construction, minor projects'' accounts, to remain 
available until expended for the purposes of these accounts.

                      (including transfer of funds)

    Sec. 216.  Amounts made available for the ``Information technology 
systems'' account may be reprogrammed between projects: Provided,

[[Page 921]]

That no project may be increased or decreased by more than $5,000,000 of 
cost prior to submitting notice thereof to the Committees on 
Appropriations of both Houses of Congress and a period of 30 days has 
elapsed.
    Sec. 217.  Amounts made available under the ``Medical 
administration'', ``Medical services'', ``Medical facilities'', 
``General operating expenses'', ``National Cemetery Administration'', 
and ``Office of Inspector General'' accounts for fiscal year 2008, in 
this Act or any other Act, may be transferred to or from the 
``Information technology systems'' account: Provided, That before a 
transfer may take place, the Secretary of Veterans Affairs shall submit 
notice thereof to the Committees on Appropriations of both Houses of 
Congress and a period of 30 days has elapsed.
    Sec. 218.  Any balances in prior year accounts established for the 
payment of benefits under the Reinstated Entitlement Program for 
Survivors shall be transferred to and merged with amounts available 
under the ``Compensation and pensions'' account, and receipts that would 
otherwise be credited to the accounts established for the payment of 
benefits under the Reinstated Entitlement Program for Survivors program 
shall be credited to amounts available under the ``Compensation and 
pensions'' account.

                                


 
                      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.  Such sums as may be necessary for fiscal year 2008 pay 
raises for programs funded by this Act shall be absorbed within the 
levels appropriated in this Act.
    Sec. 403.  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. 404.  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. 405.  Unless stated otherwise, all reports and notifications 
required by this Act shall be submitted to the Subcommittee on Military 
Quality of Life and Veterans Affairs, and Related Agencies of the 
Committee on Appropriations of the House of Representatives and the 
Subcommittee on Military Construction and Veterans Affairs, and Related 
Agencies of the Committee on Appropriations of the Senate.