[Congressional Record Volume 142, Number 3 (Friday, January 5, 1996)]
[Senate]
[Pages S102-S108]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       VETERANS' MEDICAL BENEFITS

  Mr. WARNER. Mr. President, I ask unanimous consent that the Senate 
now turn to consideration of calendar 264, S. 991.
  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the 
bill, which had been reported from the Committee on Veterans' Affairs, 
with an amendment to strike all after the enacting clause and inserting 
in lieu thereof the following:

     SECTION 1. EXTENSION OF EXPIRING AUTHORITIES.

       (a) Authority To Provide Priority Health Care for Certain 
     Veterans Exposed to Toxic Substances.--(1)(A) Effective June 
     29, 1995, section 1710(e)(3) of title 38, United States Code, 
     is amended by striking out ``after June 30, 1995,'' and all 
     that follows through ``December 31, 1995'' and inserting in 
     lieu thereof ``after December 31, 1996''.
       (B) Any hospital or nursing home care or medical services 
     furnished by the Secretary of Veterans Affairs by virtue of 
     section 1710(a)(1)(G) of title 38, United States Code, during 
     the period beginning on June 30, 1995, and ending on the date 
     of the enactment of this Act is hereby ratified.
       (2) Section 1712(a)(1)(D) of such title is amended by 
     striking out ``December 31, 1995,'' and inserting in lieu 
     thereof ``December 31, 1996,''.
       (b) Drug and Alcohol Abuse and Dependence.--Section 
     1720A(e) of such title is amended by striking out ``December 
     31, 1995'' and inserting in lieu thereof ``December 31, 
     1997''.
       (c) Pilot Program for Noninstitutional Alternatives to 
     Nursing Home Care.--Section 1720C(a) of such title is amended 
     by striking out ``September 30, 1995,'' and inserting in lieu 
     thereof ``December 31, 1996,''.
       (d) Demonstration Project to Guarantee Adjustable Rate 
     Mortgages.--Section 3707(a) of such title is amended by 
     striking out ``fiscal years 1993, 1994, and 1995'' and 
     inserting in lieu thereof ``fiscal years 1993 through 1997''.
       (e) Agreements for Housing Assistance for Homeless 
     Veterans.--Section 3735(c) of such title is amended by 
     striking out ``December 31, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (f) Use of Data on Compensation for Certified Registered 
     Nurse Anesthetists.--(1) Effective March 31, 1995, section 
     7451(d)(3)(C)(iii) of such title is amended by striking out 
     ``April 1, 1995'' and inserting in lieu thereof ``December 
     31, 1999''.
       (2) The use of any director of a Department of Veterans 
     Affairs health-care facility of data on rates of compensation 
     paid to certified nurse anesthetists in a labor market area 
     under section 7451(d)(3)(C) of title 38, United States Code, 
     during the period beginning on April 1, 1995, and ending on 
     the date of the enactment of this Act is hereby ratified.
       (g) Health Professional Scholarship Program.--Section 7618 
     of such title is amended by striking out ``December 31, 
     1995'' and inserting in lieu thereof ``December 31, 1996''.
       (h) Enhanced-Use Leases of Real Property.--Section 8169 of 
     such title is amended by 

[[Page S103]]
     striking out ``December 31, 1995'' and inserting in lieu thereof 
     ``December 31, 1997''.
       (i) Authority for Community-Based Residential Care for 
     Homeless Chronically Mentally Ill Veterans and Other 
     Veterans.--Section 115(d) of the Veterans' Benefits and 
     Services Act of 1988 (38 U.S.C. 1712 note) is amended by 
     striking out ``September 30, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (j) Demonstration Program of Compensated Work Therapy.--
     Section 7(a) of Public Law 102-54 (38 U.S.C. 1718 note) is 
     amended by striking out ``fiscal years 1961 through 1995'' 
     and inserting in lieu thereof ``the period beginning on 
     October 1, 1991, and ending on December 31, 1997,''.
       (k) Authority To Make Grants for Assistance in Furnishing 
     Services and Assistance to Homeless Veterans.--(1) Section 
     3(a) of the Homeless Veterans Comprehensive Service Programs 
     Act of 1992 (Public Law 102-590; 106 Stat. 5136; 38 U.S.C. 
     7721 note) is amended by striking out ``fiscal years 1993, 
     1994, and 1995,'' and inserting in lieu thereof ``fiscal 
     years 1993 through 1997,''.
       (2) Section 12 of such Act (106 Stat. 5142) is amended by 
     striking out ``each of the fiscal years 1993, 1994, and 
     1995'' and inserting in lieu thereof ``each of fiscal years 
     1993 through 1997''.
       (l) Homeless Veterans' Reintegration Projects.--(1) Section 
     738(e)(1) of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11448(e)(1)) is amended by adding at the end the 
     following:
       ``(D) $10,000,000 for fiscal year 1996.''.
       (2) Section 741 of such Act (42 U.S.C. 11450) is amended by 
     striking out ``October 1, 1995'' and inserting in lieu 
     thereof ``October 1, 1996''.
       (m) Effective Date.--Except as provided in subsections 
     (a)(1) and (f)(1), the amendments made by this section shall 
     take effect on October 1, 1995.

  Mr. SIMPSON. Mr. President, I am pleased to rise to comment briefly 
today, as chairman of the Veterans' Affairs Committee, on an important 
and, I think, non-controversial piece of legislation to extend the 
effective dates of certain legal authorities under which the Department 
of Veterans Affairs [VA] operates. Several of these authorities have 
expired recently. Except as I will discuss in a moment, each of these 
``extender'' provisions was approved by the Veterans' Affairs 
Committee, by a unanimous voice vote, when the Committee marked up S. 
991 on September 20, 1995, and ordered that that bill be favorably 
reported without written report.
  In explaining this bill, Mr. President, let me first itemize the 
provisions of the bill as reported by the Veterans' Affairs Committee 
on September 20, 1995. Then I will explain the amendments to those 
provisions contained within a substitute amendment which I have offered 
today with the concurrence of the committee's ranking minority member, 
Senator Jay Rockefeller. To summarize, I introduced S. 991 as a ``by 
request'' bill on behalf of the administration on June 29, 1995. It was 
reported in amended form by the Veterans' Affairs Committee on 
September 20, 1995. The bill would be further amended today--to 
incorporate, for example, extender provisions contained in legislation 
introduced in the other body--in order to facilitate the other body's 
approval of this legislation before the current year ends.
  As for the bill as approved by the Veterans' Committee on September 
20, the first section of that bill would extend through next year 
extant legal authorities which grant to so-called ``environmental 
veterans''--specifically, those who were exposed to ionizing radiation 
during service; those who served in the Republic of Vietnam and who 
are, therefore, presumed to have been exposed to dioxin; and those who 
served in the Persian Gulf war and who are thought, therefore, to have 
been exposed to toxic substances and other environmental hazards--to 
priority access to VA hospital care services. That section would also 
extend through this year a similar ``priority access'' provision 
applicable to outpatient care services that applies to Persian Gulf 
veterans due to the apparently extraordinary--and, to date, still 
inadequately understood--maladies suffered by those veterans.
  The Veterans' Affairs Committee intends to hold extensive hearings in 
1996 on an issue that is commonly referred to as ``eligibility 
reform,'' that is, the proposed recodification--and, we hope, 
simplification if possible--of very complex rules which presently 
govern which veterans shall have priority access to which categories of 
health care services. A number of eligibility reform proposals have 
been advanced--by the other body; by the VA; and by Veterans Service 
Organizations--all of which would, in some way, effect the relative 
priority given now to ``environmental veterans'' who have priority 
access to VA health care services under the rules we would extend 
today.
  My thinking on the question of moving now to change substantively the 
eligibility rules for ``environmental veterans''--an action which the 
other body would apparently like to take now in isolation from other 
eligibility reform issues--is this: the committee will be looking into 
this question, and related questions, in considerable depth in 1996 
when it takes up the broader issue of eligibility reform. That being 
the case, it is appropriate for us now to extend for one year the 
current rules as they are currently in force until we have a chance to 
study the House proposal to scale back special eligibility rules for 
some, or all, ``environmental veterans.'' That study will be part of 
the analysis which we will undertake on the entire gamut of health care 
eligibility issues.
  While I think it is appropriate to defer consideration of 
environmental veterans' eligibility rules for a period, I also think it 
would be wholly inappropriate for the Congress now to allow some or all 
of these priority access rules to ``die a quiet death'' by simply 
declining to consider extending them further. Allowing these special 
access rules to expire--or making significant amendments to them--may 
be appropriate actions for the Congress to take. But they will not be 
appropriate until the Senate Veterans Affairs Committee has given such 
proposals the serious and thoughtful consideration they merit.

  The Senate Committee will arrive at its own judgments on eligibility 
reform matters after it holds hearings, builds a record, and debates 
the issues. It will not take up such issues prematurely. And it will 
not take up such issues prematurely. And it will not take them up on a 
piecemeal basis. There will be time in 1996 to study the current rules 
governing access to VA health care by Persian Gulf, Vietnam and 
radiation-exposed veterans. In the interim, we should extend the 
current standards until such time as that study can take place.
  The other provisions of law which we would extend today are far less 
controversial than those pertaining to the relative access of some 
classes of veterans to health care services. This bill would also, for 
example, extend VA's legal authority to contract for drug and alcohol 
abuse treatment services. It would, in addition, extend a number of 
legal authorities under which VA either itself provides, or contracts 
for others to provide, health care and other services to homeless 
veterans. It would extend VA's current pilot program on 
noninstitutional alternatives to nursing home care. Finally, it would 
extend: VA's Health Professional Scholarship Program; VA's authority to 
use local pay surveys to determine the appropriate level of locality 
pay for VA nurse anesthetists; and VA's authority to enter into certain 
property leasing transactions.
  As I have noted, Mr. President, these provisions are relatively non-
controversial. All on the Committee were willing, at minimum, to allow 
the programs authorized by these provisions of law to continue--at 
least for a period while they are subjected to further analysis. The 
Senate Committee is unwilling at this time to ``kill'' any such 
provision of law, through inaction, as opposed to making an affirmative 
determination that the program ought to be terminated.
  There has been, however, one unanticipated exception to the ``rule'' 
that the Veterans Committee would not terminate programs or benefits by 
declining to extend legal authorities previously enacted. That 
exception is the extension of VA authority to guarantee adjustable rate 
home mortgage loans (so-called ``ARMs'') which was approved by the 
Committee at markup but which would be excised from the bill under the 
amendment that I offer today.
  The Congress approved a 3-year ``demonstration project'' in 1992 
which authorized VA, for the first time, to include adjustable rate 
mortgages in its home loan guaranty program. It appears that the 
program has been a success, and I had hoped, therefore, to extend it. 
As distinguished from the other body, however--which proposed to make 
VA's authority to guarantee ARMs permanent--I had proposed when I 
introduced S. 991 to extend the ARM 

[[Page S104]]
``demonstration project'' for 2 more years before considering giving it 
permanent status so that the committee might have an opportunity to 
view the performance of such loans over a wider range of interest 
rates. The Veterans' Committee concurred with that judgment when it 
approved such a 2-year extension on September 20.
  When the committee acted, however, it was relying on a preliminary, 
informal cost estimate provided by the Congressional Budget Office 
[CBO]. That informal cost estimate indicated, in effect, that 
adjustable rate mortgages--at least the relatively conservative 
adjustable rate mortgages guaranteed by VA--are not significantly more 
likely than fixed rate mortgages to go into default and that, 
therefore, an extension in VA's authority to guarantee such loans would 
not subject the Government to significantly higher exposure to loss--
and, in turn, costs--than fixed rate home loans.
  CBO, however, reconsidered its preliminary, informal view on the 
potential cost of VA guarantees of adjustable rate mortgage loans. By 
letter issued on October 25, 1995--which I request, Mr. President, be 
made part of this Record in its entirety--CBO concluded as follows:

       Adjustable-rate mortgages involve a greater subsidy cost to 
     the federal government than fixed rate mortgages (FPMs) 
     because they have a higher likelihood of default. ARMs are 
     more risky than FPMs, not only because interest rates can 
     rise, but because home buyers with a given amount of income 
     usually can qualify to borrow more money with an ARM than 
     with a FPM, thereby becoming more financially leveraged. 
     Thus, borrowers with the greatest risk can opt for an ARM 
     over a FPM. This greater risk results in higher delinquency 
     and foreclosure rates.

  Based on this analysis, Mr. President, CBO estimated that an 
extension of VA's authority to guarantee ARMs would cost VA $36 million 
in fiscal year 1996 and $33 million in fiscal year 1997.
  I was surprised, Mr. President, to learn of this cost estimate from 
CBO, especially since CBO did not so ``cost'' the legislation that 
enacted the ARM guarantee ``demonstration project'' just 3 years ago. 
As I understand it, VA guaranteed ARMs have more conservative 
underwriting standards than other ARMs. In addition, the monthly 
payments to be made by borrowers using VA guaranteed adjustable rate 
financing fluctuate less than payments under other ARMs since annual 
interest rate increases on VA-guaranteed ARMs are ``capped'' at 1 
percent, rather than at 2 percent as is common practice. In light of 
these distinctions, the Veterans Affairs Committee has operated under 
the belief that VA guarantee ARMs would ``perform'' better than other 
ARM's--and that the Government, therefore, would not be exposed to 
inordinate loss. We had hoped to extend this ``demonstration project'' 
to see, through a review of VA's actual loss data, if that belief was 
well grounded.
  Be that as it may, Mr. President, CBO's cost estimate makes such an 
extension impossible for all practical purposes. If this legislation 
were to propose an extension in this ``demonstration project,'' it 
would also have to propose money-saving legislation to ``offset'' the 
costs which CBO estimates would be incurred if the ARM extension were 
to be enacted. The committee has no such legislation to propose at this 
time; all cost-saving measures the committee was able to approve are 
already contained in the Veterans' Committee's portion of the budget 
reconciliation Balanced Budget Act now before the Congress. 
Accordingly, the chairman's amendment which I have proposed today would 
remove the ARM extender from S. 991.
  There is another aspect of my substitute amendment that merits 
explanation. As I have discussed, the substitute would remove one home 
loan provision--the one which would have extended VA's ARM authority--
but one which would have extended VA's ARM authority--but it would also 
add to the bill four other home loan-related authorities. These 
provisions are drawn from legislation introduced in the other body. 
They are not controversial.
  First, my amendment would extend for a 2 year period VA's authority 
to guarantee home loans having interest rates negotiated by the 
borrower with the lender. Until 1992, VA established, by administrative 
action, maximum permissible mortgage interest rates to be allowed on VA 
guaranteed mortgages are a given point in time. VA attempted to 
``track'' market-set interest rates, but despite its best efforts, 
there often were differentials between market rates and VA-set rates, 
if only due to delays in administrative action.
  Such differentials did not necessarily result in veteran-borrowers 
getting a ``good deal.'' More typically, when VA ceilings were set 
below prevailing rates, the ``spread'' was offset by the charging of 
so-called ``points.'' Those points were assessed to the seller--not the 
veteran-borrower--but again, that did not mean that the veteran got a 
``good deal.'' Sellers' points were typically recovered by sellers 
through increases in the selling prices of homes. In short, they were 
``passed through'' to the veteran-buyer; veteran-buyers gained no 
advantage, typically, even though the interest rates they were being 
charged appeared to be ``below market.'' Rather, they paid for the 
interest rate differential ``up front'' through higher purchase prices. 
My amendment's extension of the allowance of market-set interest 
rates--as is the result when rates are negotiated by the borrower in 
today's competitive marketplace--eliminates such distortions.
  My amendment, in addition, would extend VA authority to guarantee 
``energy efficient'' mortgages. Most would agree that improvements to 
homes to achieve energy efficiency are desirable. Since 1992, VA has 
permitted the costs incurred in adding such improvements to a home--
which improvements can, and often do, enhance the value of a property 
in the marketplace--to be ``rolled in'' to the mortgage loan-financed 
costs of the home. This program appears to have had some social 
utility, and insofar as the committee has been able to determine, it 
has not resulted in losses to the Government. Therefore, I propose 
today that this program be extended for 2 more years.
  My amendment would, in addition, extend for 2 years VA's authority to 
allow lenders access to appraisals on the properties they finance. This 
provision, of course, is only reasonable; there is no reason for 
lenders not to have access to such information.
  All three of these extenders--an extension in VA's authority to 
guarantee marketplace-set interest rate loans; an extension in VA's 
authority to guarantee ``energy efficient'' mortgages; and an extension 
in VA's allowance of access to property appraisals by lenders--seem, 
perhaps, to be ``no brainers'' to use a current vernacular. They are 
extensions of law, however, that rely on analysis that the Senate 
Committee has not had opportunity to evaluate. In addition, they are 
``extenders'' which VA-proposed legislations--S. 991 as introduced by 
me on June 29, 1995, on the administration's behalf-did not request. I 
expect that the committee will study these provisions over the next 2 
years. At that time, I expect that the committee will be in better 
position to consider permanent authorizations. In the meantime, I would 
suggest that these measures, which CBO has concluded would have no 
significant budgetary impact when it ``costed'' them for the other 
body, ought to be extended for 2 years.
  My proposed amendment would also extend, for a 1-year period, VA's 
``enhanced loan asset sale authority.'' This authority--which, in 
summary, facilitates the marketing of instruments by which sales of 
foreclosed VA-owned properties are financed--has already been approved 
by the committee, and the Congress, as part of the Balanced Budget Act. 
This provision, which will save the Government $35 million over a 7-
year period, will expire at the end of the year. We surely hope that 
the Balanced Budget Act will be approved before then, and that that 
legislation will affect an extension in this authority. Because, 
however, a lapse in such authority would be disruptive to VA's efforts 
to ``bundle'' and sell its mortgage-backed securities, my amendment 
would extend that authority through this legislation while the Congress 
considers further changes in the Balanced Budget Act.
  Finally, Mr. President, my amendment would modify four of the 
expiration time frames approved by the Senate Committee when it 
considered this legislation in September. It would propose to extend 
through 1997--rather than through 1996, as approved by the committee--
VA's pilot program for 

[[Page S105]]
noninstitutional alternatives to nursing home care. It would extend 
VA's authority to survey local communities for appropriate 
comparability pay data for nurse anesthetists through 1997 rather than 
through 1999. It would extend VA's Health professional Scholarship 
Program through 1997 rather than through 1996. And it would extend the 
McKinney Act's Homeless Veterans' Reintegration Project through 1997 
rather than through 1996.
  The purpose of these modifications, Mr. President, is to conform our 
bill more closely to the time frames approved by the other body and, 
thereby, to promote the prospects for agreement. I might also note that 
the fourth of these time frame modifications--the expansion of the 
McKinney Act's Homeless Veterans' Reintegration Project extension from 
1 year to 2 years--is a matter that I know is one of deep personal 
concern to my good friend, the Senator from Minnesota.
  In closing, Mr. President, let me say that I hope the Senate will 
approve S. 991 as favorably reported by the Veterans' Affairs Committee 
on September 20, 1995, and as further amended today. Let me say, as 
well, that I hope the other body will approve it expeditiously. It is 
good, sound legislation; there should be no controversy on it. Other 
matters can be resolved in this new year--and they will be resolved--so 
long as all who are concerned about the needs of the Nation's veterans 
continue to approach this serious business in the cooperative spirit 
that has been so productive in the past.
  Mr. President, I appreciate the time that has been afforded me.
  I ask unanimous consent a CBO cost estimate and an October 25, 1995, 
cover letter from June O`Neill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, October 25, 1995.
     Hon. Alan K. Simpson,
     Chairman, Committee on Veterans' Affairs, U.S. Senate, 
         Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office (CBO) 
     has reviewed S. 991, a bill to amend title 38, United States 
     Code, and other statutes to extend VA's authority to operate 
     certain programs, collect copayments associated with 
     provision of medical benefits, and obtain reimbursements from 
     insurance companies for care furnished, as ordered reported 
     by the Senate Committee on Veterans' Affairs on September 20, 
     1995.
       The bill would affect direct spending and thus would be 
     subject to pay-as-you go procedures under section 252 of the 
     Balanced Budget and Emergency Deficit Control Act of 1985. 
     The bill would not affect the budgets of state of local 
     governments.
       If you wish further details on this estimate, we will be 
     pleased to provide them.
           Sincerely,
                                                  June E. O'Neill,
                                                         Director.
       Enclosure.

               Congressional Budget Office Cost Estimate

       1. Bill number: S. 991.
       2. Bill title: A bill to amend title 38, United States 
     Code, and other statutes to extend VA's authority to operate 
     certain programs, collect copayments associated with 
     provisions of medical benefits, and obtain reimbursements 
     from insurance companies for care furnished.
       3. Bill status: As ordered reported by the Senate Committee 
     on Veterans' Affairs on September 20, 1995.
       4. Bill purpose: The bill would extend certain expiring 
     authorities of the Department of Veterans Affairs. Contrary 
     to the title of the bill, it would not affect copayments or 
     reimbursements from insurance companies.
       5. Estimated cost to the Federal Government: The following 
     table summarizes the estimated budgetary impact of S. 991.

------------------------------------------------------------------------
                                 1995   1996   1997   1998   1999   2000
------------------------------------------------------------------------
                             DIRECT SPENDING                            
                                                                        
Spending Under Current Law:                                             
    Estimated budget authority     37      0      0      0      0      0
    Estimated outlays.........     37      0      0      0      0      0
Proposed Changes:                                                       
    Estimated budget authority      0     36     33      0      0      0
    Estimated outlays.........      0     36     33      0      0      0
Spending Under S. 991:                                                  
    Estimated budget authority     37     36     33      0      0      0
    Estimated outlays.........     37     36     33      0      0      0
                                                                        
                SPENDING SUBJECT TO APPROPRIATIONS ACTION               
                                                                        
Spending Under Current Law:                                             
    Budget authority 1,2......    177     25      0      0      0      0
    Estimated outlays.........    190     46      2      0      0      0
Proposed Changes:                                                       
    Estimated authorization                                             
     level....................      0    144     79     13      0      0
    Estimated outlays.........      0    117     93     26      0      0
Spending Under S. 991:                                                  
    Estimated authorization                                             
     level 1,2................    177    168     79     13      0      0
    Estimated outlays.........    190    163     95     26      0      0
------------------------------------------------------------------------
\1\ The 1995 figure is the amount already appropriated.                 
\2\ Amounts for fiscal years 1996 through 2000 are authorizations       
  subject to appropriations action.                                     

       6. Basis of estimate: The estimate assumes enactment of the 
     bill and appropriation of the authorized amounts for each 
     fiscal year. CBO used historic spending rates for estimating 
     outlays. The following section-by-section cost analysis 
     addresses only those sections of the bill that would have a 
     significant budgetary impact.


                            direct spending

       Section 1(d) would give VA authority to guarantee 
     adjustable-rate mortgages (ARMs) through 1997; previous 
     authority expired on September 30, 1995. CBO estimates that 
     this extension would cost $36 million in 1996 and $33 million 
     in 1997.
       Adjustable-rate mortgages involve a greater subsidy cost to 
     the federal government than fixed-rate mortgages (FRMs) 
     because they have a higher likelihood of default. ARMs are 
     more risky than FRMs, not only because interest rates can 
     rise, but because home buyers with a given amount of income 
     can usually qualify to borrow more money with an ARM than 
     with a FRM, thereby becoming more financially leveraged. 
     Thus, the borrowers with the greatest risk can opt for an ARM 
     over a FRM. This greater risk results in higher delinquency 
     and foreclosure rates.
       CBO bases its esimate on recent loan delinquencies reported 
     by the Federal National Mortgage Association (Fannie Mae), 
     the federal agency that has the most experience tracking the 
     performance of adjustable-rate mortgages. Although data 
     regarding the rate at which Fannie Mae forecloses on 
     mortgages are not available, the delinquency rate for the 
     ARMs Fannie Mae had purchased has been almost 2.5 times that 
     of fixed-rate mortgages over the past 12 months. Because of 
     VA's supplemental servicing program, the easy conversion 
     option to a fixed-rate program, and the lower cap on annual 
     interest rate increases (1 percent compared to 2 percent for 
     Fannie Mae), the difference in foreclosure rates between VA 
     ARMs and FRMs is likely to be less than the difference in 
     delinquency rates between Fannie Mae ARMs and FRMs. CBO 
     estimates that VA ARMs have a foreclosure rate 1.75 times the 
     rate for VA FRMs. We also assume that the percentage of ARMS 
     guaranteed by VA would be the same as it was in 1994, about 
     12 percent of all VA originations. Based on a baseline 
     foreclosure rate of 10.3 percent for FRMs for 1996, the 
     estimated foreclosure rate for VA ARMs would be 18 percent. 
     Thus, the subsidy cost for VA ARM loans would be about $36 
     million in 1996 and $33 million in 1997 based on annual loan 
     volumes of 27,000 and 23,000 in 1996 and 1997, respectively.
       VA has had the authority to guarantee ARMs only since 1993, 
     and as a result, the available data are not very useful for 
     projecting defaults. Recent data from the Federal Housing 
     Administration (FHA), the model for the VA ARM program, shows 
     that the ARMs it guarantees have foreclosure rates similar to 
     those of FRMs it guarantees. Nevertheless, there is strong 
     reason to believe that this is a short-term phenomenon and 
     that FHA ARMs, like Fannie Mae ARMs, will prove to have 
     higher foreclosure rates than FRMs. First, the data from FHA 
     are too sparse to use for estimating relative foreclosure 
     rates. FHA has been guaranteeing ARMs for ten years but only 
     in the last few years have these loans made up a significant 
     portion of FHA's originations. Second, during this period, 
     mortgage rates have been quite low by historical standards.


               spending subject to appropriations action

       This bill contains several provisions that would be subject 
     to appropriations action.
       Medical Treatment for Persian Gulf Veterans. Section 1(a) 
     would extend from December 31, 1995, to December 31, 1996, 
     VA's authority to provide medical treatment to veterans who 
     may have been exposed to toxic substances while serving in 
     the Persian Gulf War. Since 1992, about 180,000 veterans have 
     sought outpatient care for ailments believed to have resulted 
     from exposure to toxic substances while serving in the Gulf 
     War.
       Based on estimates from VA, the cost of treating and 
     testing these veterans would be $60 million for the final 
     nine months of fiscal year 1996 and $20 million for the first 
     three months of 1997.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...      60      20       0       0       0
Estimated outlays...............      52      28       0       0       0
------------------------------------------------------------------------

       Drug and Alcohol Abuse and Dependence. For about 15 years 
     VA has been authorized to contract with third parties to 
     treat veterans suffering from alcohol and drug abuse. Section 
     9(b) would extend authority to provide contract care from 
     December 31, 1995 to December 331, 1997. At the discretion of 
     the Secretary of Veterans Affairs, VA would be able to 
     contract with halfway houses and other community-based 
     organizations to provide short-term care and therapeutic 
     services to veterans with alcohol and drug dependencies. In 
     1994, VA spent almost $9 million on contracts with 
     organizations that helped veterans suffering from substance 
     abuse. Under this section, VA would spend over $6 million in 
     the last three quarters of 1996 and help more than 6,000 
     veterans during the entire fiscal year.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...       7       9       2       0       0
Estimated outlays...............       6       9       4       0       0
------------------------------------------------------------------------


[[Page S106]]


       Noninstitutional Alternatives to Nursing Home Care. Section 
     1(c) would extend until December 31, 1996, a pilot program on 
     nursing homes that allows the Secretary of Veterans Affairs 
     to pay for alternatives to nursing home care. At present, VA 
     can contract with private and community providers of non-
     institutional nursing home care to provide homemaker and home 
     health services to eligible veterans. Certain criteria must 
     be met by veterans in order to qualify for the program. In 
     general, veterans with a service-connected rating of more 
     than 50 percent and veterans needing nursing home care for 
     service-connected disabilities have priority in receiving 
     this care. Participants must be at least 75 years old and 
     meet other specific requirements pertaining to health and 
     ability to live independently. The cost of non-institutional 
     care cannot exceed 65 percent of what it costs VA to provide 
     each individual nursing care at its facilities ($32,371 in 
     1994).

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...      18       5       0       0       0
Estimated outlays...............      16       7       0       0       0
------------------------------------------------------------------------

       In 1994, VA spent almost $10 million and provided 
     noninstitutional care to 1,500 veterans. The number of 
     veterans participating in the program is expected to grow to 
     2,700 in 1996 and would cost $18 million for that year.
       Health Professional Scholarship Program. In 1994, VA 
     awarded scholarships to 374 VA nurses and other health 
     professionals. These competitive scholarships allowed VA 
     health care professionals to enroll in a full-time course of 
     study leading to either an associate, baccalaureate, or 
     master's degree. Award winners receive payments for tuition, 
     educational expenses, and a monthly stipend--all tax free. 
     The program helps VA recruit and retain nurses and other 
     health care professionals, particularly for health care 
     disciplines in which VA is experiencing recruitment 
     difficulties. In return for the award, recipients incur a 
     service obligation of two years to the VA.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...       8       3       0       0       0
Estimated outlays...............       8       3       0       0       0
------------------------------------------------------------------------

       Section 1(g) would extend the authorization of the program 
     from December 31, 1995, to December 31, 1996. For 1996, the 
     cost of the program would be almost $8 million for the last 
     nine months of the year. VA anticipates that this amount of 
     funding would pay for 427 awards.
       Enhanced-Use Leases of Real Property. Section 1(h) would 
     extend for two years the authorization for VA to use 
     enhanced-use leases of real property and would result in no 
     significant costs. Enhanced-use leases of real property allow 
     VA to enter into contracts with private companies to develop 
     or employ underutilized land or other assets under the 
     control of VA. In most instances, VA would allow a private 
     developer to build on property owned by VA, and in return the 
     developer would allow VA partial use of the newly developed 
     facility at below market price. In the past, VA has 
     contracted for child care centers and cafeterias where VA 
     received below market prices for its employees who use the 
     facility.
       With the exception of leases made to provide child-care 
     services, no more than 20 enhanced-use leases may be entered 
     into at any one time. Current law permits VA to make payments 
     only for those enhanced-use leases that provide space or 
     services for which funds have been appropriated in advance.
       Community-Based Residential Care for Chronically Mentally 
     Ill Veterans. In 1994, VA spent just over $24.5 million to 
     provide 9,000 Homeless Chronically Mentally Ill (HCMI) 
     veterans community-based residential care. The HCMI program 
     began in 1987 and has been reauthorized periodically. The 
     program operates out of 71 VA facilities and targets homeless 
     veterans with psychiatric or drug abuse problems. VA 
     estimates that the number of homeless veterans on any given 
     night varies from 150,000 to 250,000. Case workers seek out 
     these veterans at homeless shelters or on the street and help 
     them find appropriate health care and social services. These 
     veterans are usually placed in community programs under 
     contract with VA. The average cost of providing this service 
     was $39 per day per veteran in 1994. The average stay was 71 
     days.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...      28      29       8       0       0
Estimated outlays...............      25      28      11       0       0
------------------------------------------------------------------------

       VA anticipates that in 1996 it would be able to help almost 
     9,700 of the several hundred thousand homeless veterans at a 
     cost of over $28 million. Section 1(i) would extend this 
     program through December 1997.
       Compensated Work Therapy and Therapeutic Transitional 
     Housing (CWT). Section 1(j) would continue a demonstration 
     program aimed at helping eligible veterans with severe mental 
     illness and drug and alcohol problems return to mainstream 
     society. The program offers veterans treatment while employed 
     in the CWT program. This program differs from therapy 
     programs because veterans pay rent to offset the cost of 
     acquiring and maintaining the property in which they reside. 
     VA has purchased 46 residences which will have 404 beds when 
     fully operational. An additional four residences with a total 
     of 60 beds are planned. Expansion beyond 50 residences would 
     require a change in current law. To serve 316 veterans in 
     1994, VA spent about $3 million.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...       4       4       1       0       0
Estimated outlays...............       3       4       1       0       0
------------------------------------------------------------------------

       Grants for Assistance in Furnishing Services and Assistance 
     to Homeless Veterans. Section 1(k) expands VA's authority to 
     work with community and public groups to provide services to 
     homeless veterans. This program provides seven comprehensive 
     homeless shelters, authorizes placement of counselors in 12 
     homeless shelters, allows for grants to public and community 
     organizations to provide transitional assistance to veterans, 
     and authorizes VA to make per diem payments to organizations 
     eligible to receive grants. This program would be authorized 
     until December 31, 1997. Reauthorization of the program is 
     needed only to continue the homeless grant and per diem 
     programs.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Estimated authorization level...       9       9       2       0       0
Estimated outlays...............       7       9       4       0       0
------------------------------------------------------------------------

       In 1994, $8 million was appropriated for this program, $5.6 
     million of which was used for the grant program. The number 
     of veterans affected by the program is uncertain, and VA is 
     developing a plan to evaluate its effectiveness. CBO 
     estimates the cost of the program in 1996 would be about $9 
     million.
       Homeless Veterans Reintegration Projects. Section 1(l) 
     would authorize appropriations for Homeless Veterans 
     Reintegration Projects. The provision specifies an 
     authorization level of $10 million in 1996.

------------------------------------------------------------------------
                                   1996    1997    1998    1999    2000 
------------------------------------------------------------------------
Authorization level.............      10       0       0       0       0
Estimated outlays...............       1       4       5       0       0
------------------------------------------------------------------------

       7. Pay-as-you-go considerations: The Balanced Budget and 
     Emergency Deficit Control Act of 1985 sets up pay-as-you-go 
     procedures for legislation affecting direct spending or 
     receipts through 1998. The bill would have the following pay-
     as-you-go impact:

------------------------------------------------------------------------
                                                   1996    1997    1998 
------------------------------------------------------------------------
Change in outlays...............................      36      33       0
Change in receipts..............................   (\1\)   (\1\)   (\1\)
------------------------------------------------------------------------
\1\ Not applicable.                                                     

       8. Estimated cost to State and local governments: None
       9. Estimate Comparison: None
       10. Previous CBO estimate: On October 5, 1995, CBO prepared 
     a cost estimate for H.R. 2289 as ordered reported by the 
     House Committee on Veterans' Affairs (HVAC) on September 20, 
     1995. The estimate included the cost of extending permanently 
     the VA ARM program and extending for three years the homeless 
     veterans job training program. CBO's cost estimate for H.R. 
     2353 as ordered reported by HVAC on September 20, 1995, 
     included estimates for several other provisions that are also 
     part of S. 991.
       11. Estimate prepared by: Michael Groarke.
       12. Estimate approved by: Paul N. Van de Water, Assistant 
     Director, for Budget Analysis.
  Mr. ROCKEFELLER. Mr. President, as the ranking minority member of the 
Committee on Veterans' Affairs, I urge the Senate to give its unanimous 
support to the pending measure, S. 991, legislation that would extend a 
variety of veterans programs and authorities that have expired. The 
proposed extensions are relatively short-term ones--1 or 2 years--to 
ensure that the program or authority remains in place while the 
committee takes the opportunity to review the various issues in more 
detail.
  Consideration of this measure was sought late last month so that it 
might have been enacted before a number of the programs and authorities 
actually expired, but we were blocked from acting at that time by an 
objection unrelated to any provision in the bill. I truly regret that 
the Senate was delayed in considering this measure, but am pleased that 
we are now about to act on it. My sincere hope is that our colleagues 
in the House will take it up as soon as possible so as to remove any 
question about the programs and authorities covered by this 
legislation.
  Mr. President, this measure was ordered reported, without written 
report, by the Veterans' Affairs Committee on September 20, 1995, and 
comes before the Senate today with an amendment offered by the 
committee chairman, Senator Simpson. The chairman's amendment, which I 
support, deletes one provision from the bill as ordered reported--
relating to VA's authority to guarantee home loans involving adjustable 
rate mortgages--because of unanticipated costs being attributed to the 
enactment of that provision by the 

[[Page S107]]
Congressional Budget Office. In addition, his amendment adds four 
additional extension provisions--all relating to VA's home loan 
guaranty program--that came to the committee's attention after the 
committee meeting in September.
  There is no objection as far as I know to any of the provisions in 
the bill as it will be amended, and I urge its swift enactment so that 
it can reach the House as soon as possible for action in that Chamber.


                         SUMMARY OF PROVISIONS

  Mr. President, the bill, as amended, contains 16 provisions which 
would provide for the following extensions of programs and authorities:
  First, extend until December 31, 1996, the special eligibility for VA 
inpatient care which is accorded to certain veterans--those exposed to 
ionizing radiation from nuclear weapons tests or the occupation of 
Japan following World War II; Vietnam veterans exposed to herbicides 
during their service; and Persian Gulf war veterans exposed to 
environmental hazards during their service. Any care furnished to 
veterans exposed to radiation or herbicides pursuant to this authority 
between its expiration on June 30 of this year and the date of 
enactment of this measure would be ratified.
  Second, extend until December 31, 1996, the special eligibility for 
VA outpatient care accorded to Persian Gulf war veterans.
  Third, extend until December 31, 1997, VA's authority to contract for 
community-based drug and alcohol care.
  Fourth, extend until December 31, 1997, VA's pilot program of non-
institutional alternatives to nursing home care.
  Fifth, extend until December 31, 1997, VA's authority to guarantee 
loans which bear an interest rate negotiated between the veteran and 
the lender.
  Sixth, extend until December 31, 1997, VA's authority to guarantee 
loans that include costs related to making energy efficiency 
improvements to the dwelling that is the object of the loan.
  Seventh, extend until December 31, 1996, VA's enhanced loan asset 
sale authority pursuant to which VA guarantees the timely payment of 
principal and interest to purchasers of real estate mortgage investment 
conduits.
  Eighth, extend until December 31, 1997, VA's authority to permit a 
lender who is authorized to make loans which are automatically 
guaranteed to review appraisals.
  Ninth, extend until December 31, 1997, VA's authority to enter into 
agreements with nonprofit organizations and State and local governments 
whereby such entities acquire real property, or the use of such 
property, from VA in order to furnish services to homeless veterans.
  Tenth, extend until December 31, 1997, VA's authority to use data on 
compensation paid to nurse anesthetists who work on a contract basis 
for non-VA entities in determining appropriate locality pay for nurse 
anesthetists who work for VA.
  Eleventh, extend until December 31, 1997, VA's Health Professional 
Scholarship Program.
  Twelfth, extend until December 31, 1997, VA's authority to enter into 
enhanced-use leases with non-VA entities.
  Thirteenth, extend until December 31, 1997, VA's program of 
community-based residential care for homeless chronically mentally ill 
veterans.
  Fourteenth, extend until December 31, 1997, VA's authority to carry 
out a demonstration program of compensated work therapy and therapeutic 
transitional housing.
  Fifteenth, extend until September 30, 1997, VA's authority to make 
grants to entities for the purpose of furnishing services and 
assistance to homeless veterans.
  Sixteenth, extend until September 30, 1997, the Department of Labor's 
homeless veterans' reintegration projects and authorize appropriations 
of $10 million for this program.


                               CONCLUSION

  Mr. President, this legislation would extend a number of important 
authorities and programs, and I urge all of my Senate colleagues to 
support it. As I noted at the outset, our consideration of this bill 
was delayed because of unrelated concerns and it is vital that we act 
as quickly as possible to reauthorize the various programs and 
authorities.
  Mr. President, I express my appreciation to the chairman of our 
committee, Mr. Simpson, and all other members of the committee, for 
their work on this measure. I look forward to working with my 
colleagues in the Senate, as well as members of the House Committee on 
Veterans' Affairs, on its enactment.
  Mr. President, I urge the Senate to give its unanimous approval to 
this measure.
  Mr. WARNER. Mr. President, I ask unanimous consent that the amendment 
I now send to the desk be agreed to, the committee substitute, as 
amended be agreed to, the motion to reconsider be laid on the table, 
and the bill then be read a third time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3116) was agreed to as follows:
       Strike out all after the enacting clause and insert in lieu 
     thereof the following:

     SECTION 1. EXTENSION OF EXPIRING AUTHORITIES.

       (a) Authority To Provide Priority Health Care for Certain 
     Veterans Exposed to Toxic Substances.--(1) Effective June 29, 
     1995, section 1710(e)(3) of title 38, United States Code, is 
     amended by striking out ``after June 30, 1995,'' and all that 
     follows through ``December 31, 1995'' and inserting in lieu 
     thereof ``after December 31, 1996''.
       (2) Section 1712(a)(1)(D) of such title is amended by 
     striking out ``December 31, 1995,'' and inserting in lieu 
     thereof ``December 31, 1996,''.
       (b) Drug and Alcohol Abuse and Dependence.--Section 
     1720A(e) of such title is amended by striking out ``December 
     31, 1995'' and inserting in lieu thereof ``December 31, 
     1997''.
       (c) Pilot Program for Noninstitutional Alternatives to 
     Nursing Home Care.--Section 1720C(a) of such title is amended 
     by striking out ``September 30, 1995,'' and inserting in lieu 
     thereof ``December 31, 1997,''.
       (d) Negotiated Interest Rates.--Section 3703(c)(4)(D) of 
     such title is amended by striking out ``December 31, 1995'' 
     and inserting in lieu thereof ``December 31, 1997''.
       (e) Mortgages for Energy Efficient Improvements.--Section 
     3710(d)(7) of such title is amended by striking out 
     ``December 31, 1995'' and inserting in lieu thereof 
     ``December 31, 1997''.
       (f) Enhanced Loan Asset Sale Authority.--Section 3720(h)(2) 
     of such title is amended by striking out ``December 31, 
     1995'' and inserting in lieu thereof ``December 31, 1996''.
       (g) Authority of Lenders of Automatically Guaranteed Loans 
     To Review Appraisals.--Section 3731(f)(3) of such title is 
     amended by striking out ``December 31, 1995'' and inserting 
     in lieu thereof ``December 31, 1997''.
       (h) Agreements for Housing Assistance for Homeless 
     Veterans.--Section 3735(c) of such title is amended by 
     striking out ``December 31, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (i) Use of Data on Compensation for Certified Registered 
     Nurse Anesthetists.--Effective March 31, 1995, section 
     7451(d)(3)(C)(iii) of such title is amended by striking out 
     ``April 1, 1995'' and inserting in lieu thereof ``December 
     31, 1997''.
       (j) Health Professional Scholarship Program.--Section 7618 
     of such title is amended by striking out ``December 31, 
     1995'' and inserting in lieu thereof ``December 31, 1997''.
       (k) Enhanced-Use Leases of Real Property.--Section 8169 of 
     such title is amended by striking out ``December 31, 1995'' 
     and inserting in lieu thereof ``December 31, 1997''.
       (l) Authority for Community-Based Residential Care for 
     Homeless Chronically Mentally Ill Veterans and Other 
     Veterans.--Section 115(d) of the Veterans' Benefits and 
     Services Act of 1988 (38 U.S.C. 1712 note) is amended by 
     striking out ``September 30, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (m) Demonstration Program of Compensated Work Therapy.--
     Section 7(a) of Public Law 102-54 (38 U.S.C. 1718 note) is 
     amended by striking out ``fiscal years 1991 through 1995'' 
     and inserting in lieu thereof ``the period beginning on 
     October 1, 1991, and ending on December 31, 1997,''.
       (n) Authority To Make Grants for Assistance in Furnishing 
     Services and Assistance to Homeless Veterans.--(1) Section 
     3(a) of the Homeless Veterans Comprehensive Service Programs 
     Act of 1992 (Public Law 102-590; 106 Stat. 5136; 38 U.S.C. 
     7721 note) is amended by striking out ``fiscal years 1993, 
     1994, and 1995,'' and inserting in lieu thereof ``fiscal 
     years 1993 through 1997,''.
       (2) Section 12 of such Act (106 Stat. 5142) is amended by 
     striking out ``each of the fiscal years 1993, 1994, and 
     1995'' and inserting in lieu thereof ``each of fiscal years 
     1993 through 1997''.
       (o) Homeless Veterans' Reintegration Projects.--(1) Section 
     738(e)(1) of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11448(e)(1)) is amended by adding at the end the 
     following:
       ``(D) $10,000,000 for fiscal year 1996.
       ``(E) $10,000,000 for fiscal year 1997.''.
       (2) Section 741 of such Act (42 U.S.C. 11450) is amended by 
     striking out ``October 1, 1995'' and inserting in lieu 
     thereof ``October 1, 1997''.
     
[[Page S108]]

       (p) Effective Date.--Except as provided in subsections 
     (a)(1) and (i), the amendments made by this section shall 
     take effect on October 1, 1995.
       (q) Ratification of Actions.--The following actions are 
     hereby ratified:
       (1) The furnishing by the Secretary of Veterans Affairs of 
     care and services by virtue of section 1710(a)(1)(G) of title 
     38, United States Code, during the period beginning on July 
     1, 1995, and ending on the date of the enactment of this Act.
       (2) The furnishing by the Secretary of services in 
     noninstitutional settings by virtue of section 1720C of such 
     title during the period beginning on October 1, 1995, and 
     ending on the date of the enactment of this Act.
       (3) The use by any director of a Department of Veterans 
     Affairs health-care facility of data on rates of compensation 
     paid to certified nurse anesthetists in a labor market area 
     under section 7451(d)(3)(C) of such title during the period 
     beginning on April 1, 1995, and ending on the date of the 
     enactment of this Act.
       (4) The furnishing by the Secretary of care for homeless 
     chronically mentally ill and other veterans by virtue of 
     section 115 of the Veterans' Benefits and Services Act of 
     1988 (38 U.S.C. 1712 note) during the period beginning on 
     October 1, 1995, and ending on the date of the enactment of 
     this Act.
       (5) The furnishing by the Secretary of work therapy and 
     therapeutic transitional housing by virtue of section 7 of 
     Public Law 102-54 (38 U.S.C. 1718 note) during the period 
     beginning on October 1, 1995, and ending on the date of the 
     enactment of this Act.
       (6) Grants made by the Secretary to furnish services to 
     veterans under section 3 of the Homeless Veterans 
     Comprehensive Services Programs Act of 1992 (38 U.S.C. 7721 
     note) during the period beginning on October 1, 1995, and 
     ending on the date of the enactment of this Act.
  The committee amendment, as amended, was agreed to.
  The bill was ordered to be engrossed for a third reading, and was 
read the third time.
  Mr. WARNER. Mr. President, I now ask unanimous consent that the 
Veterans' Affairs Committee be discharged from further consideration of 
H.R. 2353, that the Senate proceed to its immediate consideration, that 
all after the enacting clause be stricken, and the text of S. 991, as 
amended, be inserted in lieu thereof, that the bill as thus amended be 
passed, and the motion to reconsider be laid upon the table, and S. 991 
be then returned to the calendar.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (H.R. 2353), as amended, was passed, as follows:
       Resolved, That the bill from the House of Representatives 
     (H.R. 2353) entitled ``An Act to amend title 38, United 
     States Code, to extend certain expiring authorities of the 
     Department of Veterans Affairs relating to delivery of health 
     and medical care, and for other purposes.'', do pass with the 
     following amendments:

  Strike out all after the enacting clause and insert:

     SECTION 1. EXTENSION OF EXPIRING AUTHORITIES.

       (a) Authority To Provide Priority Health Care for Certain 
     Veterans Exposed to Toxic Substances.--(1) Effective June 29, 
     1995, section 1710(e)(3) of title 38, United States Code, is 
     amended by striking out ``after June 30, 1995,'' and all that 
     follows through ``December 31, 1995'' and inserting in lieu 
     thereof ``after December 31, 1996''.
       (2) Section 1712(a)(1)(D) of such title is amended by 
     striking out ``December 31, 1995,'' and inserting in lieu 
     thereof ``December 31, 1996,''.
       (b) Drug and Alcohol Abuse and Dependence.--Section 
     1720A(e) of such title is amended by striking out ``December 
     31, 1995'' and inserting in lieu thereof ``December 31, 
     1997''.
       (c) Pilot Program for Noninstitutional Alternatives to 
     Nursing Home Care.--Section 1720C(a) of such title is amended 
     by striking out ``September 30, 1995,'' and inserting in lieu 
     thereof ``December 31, 1997,''.
       (d) Negotiated Interest Rates.--Section 3703(c)(4)(D) of 
     such title is amended by striking out ``December 31, 1995'' 
     and inserting in lieu thereof ``December 31, 1997''.
       (e) Mortgages for Energy Efficient Improvements.--Section 
     3710(d)(7) of such title is amended by striking out 
     ``December 31, 1995'' and inserting in lieu thereof 
     ``December 31, 1997''.
       (f) Enhanced Loan Asset Sale Authority.--Section 3720(h)(2) 
     of such title is amended by striking out ``December 31, 
     1995'' and inserting in lieu thereof ``December 31, 1996''.
       (g) Authority of Lenders of Automatically Guaranteed Loans 
     To Review Appraisals.--Section 3731(f)(3) of such title is 
     amended by striking out ``December 31, 1995'' and inserting 
     in lieu thereof ``December 31, 1997''.
       (h) Agreements for Housing Assistance for Homeless 
     Veterans.--Section 3735(c) of such title is amended by 
     striking out ``December 31, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (i) Use of Data on Compensation for Certified Registered 
     Nurse Anesthetists.--Effective March 31, 1995, section 
     7451(d)(3)(C)(iii) of such title is amended by striking out 
     ``April 1, 1995'' and inserting in lieu thereof ``December 
     31, 1997''.
       (j) Health Professional Scholarship Program.--Section 7618 
     of such title is amended by striking out ``December 31, 
     1995'' and inserting in lieu thereof ``December 31, 1997''.
       (k) Enhanced-Use Leases of Real Property.--Section 8169 of 
     such title is amended by striking out ``December 31, 1995'' 
     and inserting in lieu thereof ``December 31, 1997''.
       (l) Authority for Community-Based Residential Care for 
     Homeless Chronically Mentally Ill Veterans and Other 
     Veterans.--Section 115(d) of the Veterans' Benefits and 
     Services Act of 1988 (38 U.S.C. 1712 note) is amended by 
     striking out ``September 30, 1995'' and inserting in lieu 
     thereof ``December 31, 1997''.
       (m) Demonstration Program of Compensated Work Therapy.--
     Section 7(a) of Public Law 102-54 (38 U.S.C. 1718 note) is 
     amended by striking out ``fiscal years 1991 through 1995'' 
     and inserting in lieu thereof ``the period beginning on 
     October 1, 1991, and ending on December 31, 1997,''.
       (n) Authority To Make Grants for Assistance in Furnishing 
     Services and Assistance to Homeless Veterans.--(1) Section 
     3(a) of the Homeless Veterans Comprehensive Service Programs 
     Act of 1992 (Public Law 102-590; 106 Stat. 5136; 38 U.S.C. 
     7721 note) is amended by striking out ``fiscal years 1993, 
     1994, and 1995,'' and inserting in lieu thereof ``fiscal 
     years 1993 through 1997,''.
       (2) Section 12 of such Act (106 Stat. 5142) is amended by 
     striking out ``each of the fiscal years 1993, 1994, and 
     1995'' and inserting in lieu thereof ``each of fiscal years 
     1993 through 1997''.
       (o) Homeless Veterans' Reintegration Projects.--(1) Section 
     738(e)(1) of the Stewart B. McKinney Homeless Assistance Act 
     (42 U.S.C. 11448(e)(1)) is amended by adding at the end the 
     following:
       ``(D) $10,000,000 for fiscal year 1996.
       ``(E) $10,000,000 for fiscal year 1997.''.
       (2) Section 741 of such Act (42 U.S.C. 11450) is amended by 
     striking out ``October 1, 1995'' and inserting in lieu 
     thereof ``October 1, 1997''.
       (p) Effective Date.--Except as provided in subsections 
     (a)(1) and (i), the amendments made by this section shall 
     take effect on October 1, 1995.
       (q) Ratification of Actions.--The following actions are 
     hereby ratified:
       (1) The furnishing by the Secretary of Veterans Affairs of 
     care and services by virtue of section 1710(a)(1)(G) of title 
     38, United States Code, during the period beginning on July 
     1, 1995, and ending on the date of the enactment of this Act.
       (2) The furnishing by the Secretary of services in 
     noninstitutional settings by virtue of section 1720C of such 
     title during the period beginning on October 1, 1995, and 
     ending on the date of the enactment of this Act.
       (3) The use by any director of a Department of Veterans 
     Affairs health-care facility of data on rates of compensation 
     paid to certified nurse anesthetists in a labor market area 
     under section 7451(d)(3)(C) of such title during the period 
     beginning on April 1, 1995, and ending on the date of the 
     enactment of this Act.
       (4) The furnishing by the Secretary of care for homeless 
     chronically mentally ill and other veterans by virtue of 
     section 115 of the Veterans' Benefits and Services Act of 
     1988 (38 U.S.C. 1712 note) during the period beginning on 
     October 1, 1995, and ending on the date of the enactment of 
     this Act.
       (5) The furnishing by the Secretary of work therapy and 
     therapeutic transitional housing by virtue of section 7 of 
     Public Law 102-54 (38 U.S.C. 1718 note) during the period 
     beginning on October 1, 1995, and ending on the date of the 
     enactment of this Act.
       (6) Grants made by the Secretary to furnish services to 
     veterans under section 3 of the Homeless Veterans 
     Comprehensive Services Programs Act of 1992 (38 U.S.C. 7721 
     note) during the period beginning on October 1, 1995, and 
     ending on the date of the enactment of this Act.

  The title was amended so as to read: ``To amend title 38, United 
States Code, to extend the authority of the Secretary of Veterans 
Affairs to carry out certain programs and activities, and for other 
purposes.''.

                          ____________________