[Congressional Record Volume 148, Number 65 (Monday, May 20, 2002)]
[House]
[Pages H2624-H2628]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        VETERANS' AND SURVIVORS' BENEFITS EXPANSION ACT OF 2002

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 4085) to increase, effective as of December 1, 
2002, the rates of disability compensation for veterans with service-
connected disabilities and the rates of dependency and indemnity 
compensation for survivors of certain service-connected disabled 
veterans, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 4085

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans' and Survivors' 
     Benefits Expansion Act of 2002''.

     SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND 
                   DEPENDENCY AND INDEMNITY COMPENSATION.

       (a) Rate Adjustment.--The Secretary of Veterans Affairs 
     shall, effective on December 1, 2002, increase the dollar 
     amounts in effect for the payment of disability compensation 
     and dependency and indemnity compensation by the Secretary, 
     as specified in subsection (b).
       (b) Amounts To Be Increased.--The dollar amounts to be 
     increased pursuant to subsection (a) are the following:
       (1) Compensation.--Each of the dollar amounts in effect 
     under section 1114 of title 38, United States Code.
       (2) Additional compensation for dependents.--Each of the 
     dollar amounts in effect under sections 1115(1) of such 
     title.
       (3) Clothing allowance.--The dollar amount in effect under 
     section 1162 of such title.
       (4) New dic rates.--The dollar amounts in effect under 
     paragraphs (1) and (2) of section 1311(a) of such title.
       (5) Old dic rates.--Each of the dollar amounts in effect 
     under section 1311(a)(3) of such title.
       (6) Additional dic for surviving spouses with minor 
     children.--The dollar amount in effect under section 1311(b) 
     of such title.
       (7) Additional dic for disability.--The dollar amounts in 
     effect under sections 1311(c) and 1311(d) of such title.
       (8) DIC for dependent children.--The dollar amounts in 
     effect under sections 1313(a) and 1314 of such title.
       (c) Determination of Increase.--(1) The increase under 
     subsection (a) shall be made in the dollar amounts specified 
     in subsection (b) as in effect on November 30, 2002.
       (2) Except as provided in paragraph (3), each such amount 
     shall be increased by the same percentage as the percentage 
     by which benefit amounts payable under title II of the Social 
     Security Act (42 U.S.C. 401 et seq.) are increased effective 
     December 1, 2002, as a result of a determination under 
     section 215(i) of such Act (42 U.S.C. 415(i)).
       (3) Each dollar amount increased pursuant to paragraph (2) 
     shall, if not a whole dollar amount, be rounded down to the 
     next lower whole dollar amount.
       (d) Special Rule.--The Secretary may adjust 
     administratively, consistent with the increases made under 
     subsection (a), the rates of disability compensation payable 
     to persons within the purview of section 10 of Public Law 85-
     857 (72 Stat. 1263) who are not in receipt of compensation 
     payable pursuant to chapter 11 of title 38, United States 
     Code.
       (e) Publication of Adjusted Rates.--At the same time as the 
     matters specified in section 215(i)(2)(D) of the Social 
     Security Act (42 U.S.C. 415(i)(2)(D)) are required to be 
     published by reason of a determination made under section 
     215(i) of such Act during fiscal year 2003, the Secretary of 
     Veterans Affairs shall publish in the Federal Register the 
     amounts specified in subsection (b), as increased pursuant to 
     that section.

     SEC. 3. RETENTION OF DEPENDENCY AND INDEMNITY COMPENSATION 
                   FOR SURVIVING SPOUSES REMARRYING AFTER AGE 65.

       (a) Exception to Termination of Benefits Upon Remarriage.--
     Paragraph (2) of section 103(d) of title 38, United States 
     Code, is amended by striking ``if the remarriage'' and all 
     that follows and inserting ``if--
       ``(A) the remarriage occurs after the surviving spouse 
     attains age 65 ;
       ``(B) the remarriage has been terminated by death; or
       ``(C) the remarriage has been terminated by divorce, unless 
     the Secretary determines that the divorce was secured through 
     fraud or collusion.''.
       (b) Conforming Amendments.--Paragraph (4) of such section 
     is amended--
       (1) by striking ``The first month'' and all the follows 
     through ``shall be'' and inserting the following ``When 
     eligibility for benefits for a surviving spouse is restored 
     by reason of this subsection, the first month of eligibility 
     for such benefits shall be''; and
       (2) in subparagraph (A), by striking ``described in'' and 
     inserting ``with a remarriage described in subparagraph (B) 
     or (C) of''.
       (c) Inclusion of Death Compensation Among Restored 
     Benefits.--Subparagraph (A) of paragraph (5) of such section 
     is amended to read as follows:
       ``(A) Sections 1121 and 1311, relating to death 
     compensation and dependency and indemnity compensation, 
     respectively.''.
       (d) Application for Benefits.--In the case of an individual 
     who but for having remarried would be eligible for dependency 
     and indemnity compensation under section 1311 of title 38, 
     United States Code, or death compensation under section 1121 
     of such title, and whose remarriage was before the date of 
     the enactment of this Act and after the individual had 
     attained age 65, the individual shall be eligible for such 
     compensation by reason of the amendments made by subsection 
     (a) only if the individual submits an application for such 
     compensation to the Secretary of Veterans Affairs not later 
     than the end of the one-year period beginning on the date of 
     the enactment of this Act.
       (e) Coordination of Benefits.--Section 1311 of such title 
     is amended by adding at the end the following new subsection:
       ``(e) In the case of an individual who is eligible for 
     dependency and indemnity compensation under this section by 
     reason of section 103(d)(2)(A) of this title who is also 
     eligible for benefits under another provision of law by 
     reason of such individual's status as the surviving spouse of 
     a veteran, then, notwithstanding any other provision of law, 
     no reduction in benefits under such other provision of law 
     shall be made by reason of such individual's eligibility for 
     benefits under this section.''.

     SEC. 4. UNIFORM HOME LOAN GUARANTY FEES FOR QUALIFYING 
                   MEMBERS OF THE SELECTED RESERVE AND ACTIVE DUTY 
                   VETERANS.

       (a) In General.--Paragraph (2) of section 3729(b) of title 
     38, United States Code, is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by inserting ``for any loan closed after September 30, 
     2005'' after ``paragraph (1)''; and
       (3) by adding at the end the following:
       ``(B) The loan fee table referred to in paragraph (1) for 
     any loan closed during the period beginning on October 1, 
     2002, and ending on September 30, 2005, is as follows:

                            ``LOAN FEE TABLE
------------------------------------------------------------------------
            Type of loan                   Veteran        Other obligor
------------------------------------------------------------------------
(A)(i) Initial loan described in                 2.00                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other initial loan described
 in section 3710(a) other than with
 5-down or 10-down (closed before
 October 1, 2008)...................
------------------------------------------------------------------------
(A)(ii) Initial loan described in                1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other initial loan described
 in section 3710(a) other than with
 5-down or 10-down (closed on or
 after October 1, 2008).............
------------------------------------------------------------------------
(B)(i) Subsequent loan described in              3.00                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other subsequent loan
 described in section 3710(a)
 (closed before October 1, 2008)....
------------------------------------------------------------------------
(B)(ii) Subsequent loan described in             1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down,
 or any other subsequent loan
 described in section 3710(a)
 (closed on or after October 1,
 2008)..............................
------------------------------------------------------------------------
(C)(i) Loan described in section                 1.50                NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 October 1, 2008)...................
------------------------------------------------------------------------
(C)(ii) Loan described in section                0.75                NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after October 1, 2008).............
------------------------------------------------------------------------

[[Page H2625]]

 
(D)(i) Initial loan described in                 1.25                NA
 section 3710(a) to purchase or
 construct a dwelling with 10-down
 (closed before October 1, 2008)....
------------------------------------------------------------------------
(D)(ii) Initial loan described in                0.50                NA
 section 3710(a) to purchase or
 construct a dwelling with 10-down
 (closed on or after October 1,
 2008)..............................
------------------------------------------------------------------------
(E) Interest rate reduction                      0.50                NA
 refinancing loan...................
------------------------------------------------------------------------
(F) Direct loan under section 3711..             1.00                NA
------------------------------------------------------------------------
(G) Manufactured home loan under                 1.00                NA
 section 3712 (other than an
 interest rate reduction refinancing
 loan)..............................
------------------------------------------------------------------------
(H) Loan to Native American veteran              1.25                NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan)..............................
------------------------------------------------------------------------
(I) Loan assumption under section                0.50              0.50
 3714...............................
------------------------------------------------------------------------
(J) Loan under section 3733(a)......             2.25           2.25''.
------------------------------------------------------------------------


       (b) Conforming Amendment.--Paragraph (4)(A) of such section 
     is amended by inserting before the period at the end the 
     following: ``, and the term `veteran' means any veteran 
     eligible for the benefits of this chapter''.

     SEC. 5. LIFE INSURANCE PROGRAMS.

       (a) Increase of Veterans' Mortgage Life Insurance Coverage 
     to $150,000.--(1) Section 2106(b) of title 38, United States 
     Code, is amended by striking ``$90,000'' and inserting 
     ``$150,000''.
       (2) The amendment made by paragraph (1) shall apply with 
     respect to insurance payable under section 2106 of title 38, 
     United States Code, in the case of a veteran insured under 
     that section who dies on or after the date of enactment of 
     this Act.
       (b) Authority for Veterans' Mortgage Life Insurance To Be 
     Carried Beyond Age 70.--Section 2106 of such title is 
     amended--
       (1) in subsection (a), by inserting ``age 69 or younger'' 
     after ``any eligible veteran''; and
       (2) in subsection (i), by striking paragraph (2) and 
     redesignating paragraphs (3) and (4) as paragraphs (2) and 
     (3), respectively.

     SEC. 6. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR 
                   STATE APPROVING AGENCIES FOR ADMINISTRATIVE 
                   EXPENSES FOR FISCAL YEARS 2003, 2004, AND 2005.

       Section 3674(a)(4) of title 38, United States Code, is 
     amended by inserting before the period at the end of the 
     first sentence the following: ``, and for each of fiscal 
     years 2003, 2004, and 2005, $18,000,000''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Illinois (Mr. Evans) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, H.R. 4085, the Veterans' and Survivors' Benefits 
Expansion Act of 2002 will expand and increase a number of important 
benefits for veterans and their surviving spouses. With more than 2.3 
million veterans relying on disability compensation payments, H.R. 4085 
provides a much-needed cost-of-living adjustment (COLA), the same as 
that which is given to Social Security recipients, currently estimated 
to be about 2.3 percent next year. Surviving spouses and children of 
veterans who qualify for dependency and indemnity compensation (DIC) 
would also see their payments increased by the same COLA amount.
  For a 100 percent service-connected disabled veteran, this increase 
would take effect December 1 and will total about $600 next year in 
increase. In total, H.R. 4085 will increase disability compensation 
payments by about $300 million next year and by more than $1.5 billion 
over the next 5 years.
  Mr. Speaker, H.R. 4085 would also make a historic change in current 
law to allow surviving spouses who remarry after the age of 65 to 
retain their dependency and indemnity compensation as well as health 
insurance, home loan, and education benefits. Under current law, a 
surviving spouse of a veteran who is currently eligible for dependency 
and indemnity compensation, and who remarries, loses his or her 
eligibility for this and other VA benefits. Sadly, this economic 
penalty has prevented thousands of older women from enjoying the 
comforts that come from marriage later in their lives.
  Mr. Speaker, as my colleagues know, when a man and woman serve our 
Nation in the Armed Forces, we not only benefit from their service, but 
also from that of their spouse, who make their own sacrifices 
supporting their family on the home front. We should stop penalizing 
these brave women and men who have already lost so much, and are now 
looking for companionship in their twilight years.
  This provision has been championed in the House by the Committee on 
Veterans' Affairs vice chairman, the gentleman from Florida (Mr. 
Bilirakis). I want to commend him for his continuing work, and his 
commitment on behalf of veterans and their spouses.
  Let me say to my colleagues that we had hoped to bring forward 
legislation that contained a lower age limit; we wanted to get to 55 
years, but budgetary constraints and questionable CBO scoring have 
prevented us from doing that. Instead, our legislation in essence would 
make a down payment to these Gold Star wives who have given our Nation 
so much. We will be monitoring the actual implementation costs of this 
provision so that we can revisit it in the future. While today's action 
is historic, let me assure these brave women that it is just the 
beginning of the process and not the end of the process. H.R. 4085 also 
contains several other provisions which the distinguished chairman of 
the Subcommittee on Benefits will be outlining in a moment.
  Finally, I just want to say that I am grateful to the chairman, the 
gentleman from Idaho (Mr. Simpson), gentleman from Texas (Mr. Reyes), 
the ranking member, and again my good friend, the gentleman from 
Illinois (Mr. Evans), for working with us on this legislation and for 
helping to bring it to the floor today.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Idaho (Mr. Simpson).
  Mr. SIMPSON. Mr. Speaker, I thank the gentleman from New Jersey for 
yielding me this time and for his unwavering support of our veterans.
  Mr. Speaker, many veterans and their survivors will be served as a 
result of the enhancements included in H.R. 4085, the Veterans' and 
Survivors' Benefits Expansion Act of 2002.
  Section 2 provides an annual cost-of-living adjustment effective 
December 1, 2002, to service-connected veterans as well as those 
survivors receiving dependency and indemnity compensation. The Congress 
has approved a COLA every fiscal year since 1976; and as in the past, 
the percentage increase will mirror the COLA the Social Security 
recipients receive.
  Section 3 would allow surviving spouses who remarry after age 65 to 
retain their dependency and indemnity compensation, death compensation, 
VA health insurance, and education and home loan benefits. 
Additionally, those spouses who remarry after age 65, but prior to 
enactment of this bill, will

[[Page H2626]]

have 1 year to reapply for their benefits. DIC is the only Federal 
survivor annuity that terminates when the spouse remarries.
  It is important, as the chairman stated, that I reiterate that this 
is the first step in enhancing the benefits for these spouses. The 
Subcommittee on Benefits considered a number of ways to enhance these 
benefits, including lowering the age at which spouses could remarry and 
retain benefits; but with the budget constraints we are working under, 
we just could not do more at this time. I want to thank the vice 
chairman of the committee, the gentleman from Florida (Mr. Bilirakis), 
for his leadership on this provision.
  Section 4 would lower the home loan fees that members of the Selected 
Reserve pay to equal the fees paid by the active duty veterans. Again, 
because of budget constraints, we have had to sunset this provision in 
fiscal year 2005. We will reexamine the policy at that time.
  Section 5 would increase coverage from $90,000 to $150,000 under the 
Veterans' Mortgage Life Insurance program, as well as permit coverage 
of this insurance to veterans beyond age 70. Currently, the coverage is 
terminated after the veteran's 69th birthday.
  Lastly, section 6 would increase the funding for State approving 
agencies from $14 million to $18 million for the next 3 fiscal years.
  Mr. Speaker, I want to recognize the subcommittee's ranking member, 
the gentleman from Texas (Mr. Reyes), for the opportunity to work with 
him in writing this bill. I also want to thank the gentleman from 
Illinois (Mr. Evans) and the gentleman from California (Mr. Filner) for 
their input on the home loan insurance provisions and, again, the 
gentleman from Florida (Mr. Bilirakis) for his support for the Gold 
Star Wives. I urge my colleagues to support H.R. 4085.
  Mr. SMITH of New Jersey. Mr. Speaker, I reserve the balance of my 
time.
  Mr. EVANS. Mr. Speaker, I yield myself such time as I may consume.
  I want to thank the gentleman from New Jersey (Mr. Smith), our 
committee chairman; and the gentleman from Idaho (Mr. Simpson), our 
Subcommittee on Benefits chairman; and the gentleman from Texas (Mr. 
Reyes), ranking member, for their important bipartisan work on this 
important measure. This is a bill strongly supported by Members of both 
sides of the aisle.
  Mr. Speaker, H.R. 4085, the Veterans' and Survivors' Benefits 
Expansion Act of 2002, provides a cost-of-living adjustment to veterans 
receiving service-connected disability compensation and the survivors 
in receipt of DIC. This ensures the value of their hard-earned benefits 
will not be reduced because of cost-of-living increases.
  The bill contains provisions derived from measures introduced by my 
colleagues, the gentleman from Florida (Mr. Bilirakis) and the 
gentleman from California (Mr. Filner), two outstanding advocates for 
our Nation's veterans.
  The bill also includes a provision of H.R. 2095, which I introduced. 
For the next 3 years, the additional funding fee now imposed upon 
members of the Selected Reserve for the use of the home loan guarantee 
program will be eliminated. In addition, the bill increases the maximum 
amount of VMLI to $150,000. This will enable about 90 percent of 
veterans' families to have their mortgage paid off in the event of a 
veteran's death.
  I am pleased to support additional funding for State approving 
agencies provided in this measure so that they can fulfill their 
responsibilities to ensure the quality of education and training 
provided by the Montgomery GI Bill.
  I want to thank the gentleman from new Jersey (Mr. Smith), our 
chairman; and the gentleman from Florida (Mr. Bilirakis), our vice 
chairman; and our chairman of the subcommittee, the gentleman from 
Idaho (Mr. Simpson); and the ranking member of the subcommittee, the 
gentleman from California (Mr. Filner) for their contributions to this 
very important legislation.
  Mr. Speaker, what we are seeing here today is the best of 
bipartisanship under the leadership that we have come together on to 
help our veterans. It not only is a reflection of this committee and 
its leadership, but also I think an example for the other committees; 
and I salute again our chairman and I thank him for his hard work.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I want to thank my good friend 
for his comments and for working so well with us on these important 
bills, the whole package.
  Mr. Speaker, I yield such time as he may consume to the distinguished 
gentleman from Florida (Mr. Bilirakis), the vice chairman of the 
Committee on Veterans' Affairs.
  Mr. BILIRAKIS. Mr. Speaker, I thank the chairman for yielding me this 
time, and I thank him and the gentleman from Idaho (Mr. Simpson) and 
the gentleman from Illinois (Mr. Evans) for their kind remarks.
  I rise in strong support, Mr. Speaker, of all of the veterans bills 
we are considering today; however, I do want to focus my remarks, as so 
many others already have done, on H.R. 4085, the bill at hand.
  In addition to providing an annual cost-of-living adjustment to 
disabled veterans and their survivors, this bill addresses an issue 
that I have been working on for a number of years. Dependency and 
indemnity compensation, DIC, is the benefit accorded to the surviving 
dependents of those members of the Armed Forces who died while on 
active duty or a service-connected cause. DIC is the only Federal 
annuity program that does not allow a widow who is receiving 
compensation to remarry at an older age and retain her annuity. Last 
year, I reintroduced legislation which provides that the remarriage of 
the surviving spouse of a veteran after age 55 should not result in 
termination of dependency and indemnity compensation.
  I have heard, and I am sure we all have, Mr. Speaker, from military 
widows from across the country who have found someone they would like 
to spend the rest of their lives with, but cannot afford to do so 
because of the current law. They have expressed deep frustrations about 
not being able to remarry. Mr. Speaker, these are people who have 
sacrificed, who have suffered. I have always said that it is the 
families who really sacrifice even more and have even more of a burden 
than the actual person in the military. Many of these women lost their 
husbands at a very young age and have been alone for a long, long time. 
They have finally found someone to share their lives with, but they are 
afraid to remarry because they will lose their DIC benefits.
  I would like to thank the gentleman from New Jersey (Mr. Smith), the 
chairman of the committee; the gentleman from Illinois (Mr. Evans), the 
ranking member; the gentleman from Idaho (Mr. Simpson), the chairman of 
the Subcommittee on Benefits; and the gentleman from Texas (Mr. Reyes), 
the ranking member of the subcommittee; and primarily the majority and 
minority staffs for working with me to include a DIC remarriage 
provision in H.R. 4085. Due to funding constraints, my original 
provision had to be modified. The legislation we are considering today 
provides that remarriage of a surviving spouse of a veteran after age 
65 should not result in termination of DIC or eligibility for CHAMPVA 
medical care, education and housing loan benefits.
  Those surviving spouses that remarried after age 65, prior to the 
enactment of this legislation, will have 1 year, and I hope that we 
will continue to get this word to them, will have 1 year from the date 
of enactment to reapply for benefits.
  While we all would have preferred to be able to allow for remarriage 
at an earlier age, I do believe that the bill before us will provide a 
significant benefit to the surviving spouses of veterans. As I 
understand it, there will be report language requiring the VA to track 
the number of spouses applying for reinstatement of benefits, which 
should provide our committee with more accurate data than is currently 
available.

                              {time}  1500

  It is my hope that we will be able to readdress this issue in the 
future, and adjust the remarriage age from 65 to 55 to bring the DIC 
program in line with other Federal annuity programs.

[[Page H2627]]

  I also urge my colleagues to support H.R. 4085 and other veterans' 
bills before us today.
  Mr. EVANS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as he may 
consume to the distinguished gentleman from New York (Mr. Gilman), 
chairman emeritus of the Committee on International Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I rise today in strong support of H.R. 4085, 
the Veterans Compensation Cost-of-Living Adjustment Act of 2002. I 
commend our distinguished chairman of the Committee on Veterans' 
Affairs, the gentleman from New Jersey (Mr. Smith), the ranking member 
of the committee, the gentleman from Illinois (Mr. Evans), and the 
gentleman from Florida (Mr. Bilirakis), for their strong support of 
this measure.
  This measure authorizes a cost-of-living adjustment to the veterans 
who receive disability compensation and dependency and indemnity 
compensation to the surviving spouses of our prisoners of war who 
received complete disability at time of death due to service-related 
injuries. This will be effective as of December 1 of this year.
  Congress has approved an annual cost-of-living adjustment to these 
veterans and survivors since 1976.
  This legislation also provides that remarriage of the surviving 
spouse of a veteran after age 65 will not result in any termination of 
any dependency and indemnity compensation eligibility for CHAMPVA 
medical care, education, and housing loan benefits.
  Those surviving spouses who remarried after age 65 prior to enactment 
of the bill will have 1 year from the date of enactment to reapply for 
these benefits.
  This measure also provides that, through fiscal year 2006, the home 
loan fees charged qualifying members of the selected reserve be equal 
to those fees charged to active duty veterans.
  Finally, the measure increases veterans' mortgage life insurance 
coverage from $90,000 to $150,000, allowing veterans over the age of 70 
to continue coverage under veterans' mortgage life insurance, a very 
important measure.
  Mr. Speaker, I believe this is meritorious legislation, and an 
appropriate and deserving response by this legislative body to the 
sacrifices made by our Nation's veterans and their families, especially 
those recently engaged in our war on terrorism.
  I urge my colleagues to fully support this measure.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I want to thank the gentleman from New York (Chairman 
Gilman) for his comments. Although not a member of the committee, he is 
ever faithful on veterans' legislation, always here, and we thank him 
for his contribution.


                             General Leave

  Mr. SMITH of New Jersey. Mr. Speaker, I ask unanimous consent that 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on H.R. 4085.
  The SPEAKER pro tempore (Mr. LaTourette). Is there objection to the 
request of the gentleman from New Jersey?
  There was no objection.
  Mr. HASTINGS of Florida. Mr. Speaker, this bill on the floor today 
will significantly improve the lives of the veterans who have served us 
so honorably. H.R. 4085, the Veterans Compensation Cost-of-Living 
Adjustment Act, provides an annual cost-of-living increase for 
veterans, and increases compensation for disabled veterans and their 
dependents and survivors. The committee estimates that the increase 
will be 2.3%. This bill also increases indemnity compensation for 
survivors of certain service-connected disabled veterans. Of 
significance in this legislation is the measure providing that the 
surviving spouse of a veteran who remarries after the age 65 would not 
lose his or her dependency and indemnity compensation payments, 
eligibility for medical care, or education and housing loan benefits. 
Also, that veterans over age 70 could maintain coverage under this 
program, which currently is canceled at age 70.
  This bill before us supports our veterans and I believe this 
legislation will significantly improve their lives. I urge my 
distinguished colleagues on both sides of the aisle to join me in 
supporting this legislation.
  Ms. CARSON of Indiana. Mr. Speaker, I would like to thank Chairman 
Smith and Ranking Member Evans for their hard work in corralling all 
these important and diverse provisions and including them into one bill 
that covers all aspects of veterans and their survivors life.
  Increasing the funding for the state approving agencies by $4 million 
a year will help the Indiana State Department of Veterans Affairs 
determine if the beneficiaries of the Montgomery GI Bill are getting 
the education promised to them when they entered service for our 
nation. The 5,216 Hoosier veterans who used GI Bill payments for their 
education deserve the best education we can give.
  Reservists would be offered VA home loans at the same cost that 
active duty military receive. Today's military is more dependent on our 
nation's citizen soldiers serving in the Reserves than ever. They could 
be called up to serve overseas or across the country, away from their 
families and their homes for extended periods of time. It is only right 
that all men and women who put their lives on the line for this country 
be eligible for these home loans. The men and women from Indiana, who 
live and work there, whose kids go to school and they pay taxes deserve 
the same rights as active duty military.
  The spouse of a veteran suffered and served for our country almost as 
much as the veteran. They took care of the family and moving the house 
from base to base across the country so the servicemember could focus 
on his or her job for this nation. If widowed, and they find someone 
special with whom to spend the rest of their days, one worry they 
should not have is about their benefits. This bill will rectify that 
worry by allowing surviving spouses to retain benefits if they remarry 
at 65.
  Most importantly, Mr. Speaker, is the increase in the cost of living 
adjustment for disabled veterans. The veterans of Indiana with service 
connected disabilities will appreciate an increase in their cost of 
living allowance, to allow them to be able to afford what could be 
considered the smaller things in life, but which make the quality of 
life more enjoyable. This increase will be tied to the increase in 
Social Security benefits, which is estimated to be 2.3% on December 1, 
2002, when this COLA will go into effect.
  Mr. Speaker, I support this bill and support the veterans of Indiana 
and this country.
  Mr. REYES. Mr. Speaker, I thank our Committee Chairman, Chris Smith, 
our Democratic Ranking Member, Lane Evans, and my good friend Mike 
Simpson, Chairman of the Subcommittee on Benefits, for their work in 
promptly bringing H.R. 4085 to the floor. It is always good to see 
members of this Committee from both sides of the aisle working together 
to improve benefits for our Nation's veterans and their family members.
  I am pleased that we will again be increasing the monthly benefit 
paid to disabled veterans and their survivors according to increases in 
the consumer price index. We must never allow the value of compensation 
paid to our Nation's veterans to decrease because of changes in the 
cost of living.
  I support the provision drawn from H.R. 1108 which would allow the 
surviving spouses of veterans who remarry after age 65 to retain their 
Dependency and Indemnity Compensation (DIC) and related benefits. I am 
pleased that the amended bill includes, as I requested, the small 
number of survivors receiving benefits under the older death 
compensation program. I also believe that surviving spouses who have 
already remarried after age 65 should have an opportunity to have 
benefits reinstated if they request reinstatement within one year after 
enactment of the bill. I would prefer that the age at which remarriage 
would be allowed be 55, as Mr. Bilirakis, the author of the original 
bill, requested. Nonetheless, I recognize the difficulty in obtaining 
accurate cost estimates from the Congressional Budget Office (CBO) when 
a new program, without historical data is proposed. As CBO stated the 
cost of this program ``could be much higher or much lower, depending 
upon the portion of eligible people that apply for this benefit.'' I 
believe that the cost will be much lower and expect that data 
concerning the new program will provide us with a more realistic basis 
on which to cost future legislation to make the age at which remarriage 
is allowed, consistent with other federal programs.
  I agree with my friend the distinguished Ranking Member of the Full 
Committee, Lane Evans, that Members of the Selected Reserve should not 
be required to pay an extra fee in order to qualify for a home loan 
through the Department of Veterans Affairs. As the attached sheet 
``Comparison of Fiscal Year Liquidation Rates Reservists vs All 
Others'' indicates, the foreclosure rates for reservists is more than a 
full percentage point lower than all others. As we ask Members of the 
Selected Reserve to assume more and more responsibility for national 
defense, we must provide

[[Page H2628]]

them with commensurate benefits. I support removing the additional and 
unjustified funding fee imposed on the Selected Reserve, as provided by 
H.R. 2095, for three years and hope that funding will enable us to make 
this reduction permanent in the future.
  Mr. Speaker, no one has a stronger claim on the public fisc, than 
those veterans who have been severely disabled as a result of their 
military service. The provisions in H.R. 4085, drawn from Mr. Filner's 
bill, H.R. 2222, will provide veterans who qualify for the Veterans' 
Mortgage Life Insurance (VMLI) programs, closer toward the goal of 
meeting the needs of these veterans in the 21st century. By increasing 
the amount of the mortgage insurance to $150,000, and by eliminating 
the current requirement that the insurance be terminated at age 70, our 
severely disabled veterans will be assured that in the event of their 
death, their home mortgage can be paid off. If we can not afford to 
help our Nation's most severely disabled veterans, who can we afford to 
help?
  As an original cosponsor with our Subcommittee Chairman, Mike 
Simpson, our Full Committee Chairman Chris Smith, and our Ranking 
Democratic Member, Lane Evans, I fully support additional funding for 
the State Approving Agencies. When we ask that agencies assume 
additional responsibilities, Congress must provide the resources to see 
that those responsibilities can be met.
  I urge all Members of the House to support our Nation's veterans and 
this bipartisan bill.

                                             COMPARISON OF FISCAL YEAR LIQUIDATION RATES RESERVISTS VERSUS ALL OTHERS AS OF END OF MONTH, MARCH 2002
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            All others                                          Reservists
                                                                       --------------------------------------------------------------------------------------------------------  Reservist rate
          Fiscal year*              Total        Total          %                                           Frcl                                                Frcl             compared to All
                                  guaranteed   foreclosed                Total No.    % of total --------------------------  Total No.    % of total --------------------------    Others Rate
                                                                                                      No.           %                                     No.           %
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2001...........................      265,306           83         0.03      256,858         96.8           82         0.03        8,448          3.2            1         0.01       62.9% Lower
2000...........................      184,494        1,227         0.67      177,645         96.3        1,196         0.67        6,849          3.7           31         0.45       32.8% Lower
1999...........................      403,936        5,508         1.36      391,069         96.8        5,385         1.38       12,867          3.2          123         0.96       30.6% Lower
1998...........................      408,930        9,946         2.43      395,332         96.7        9,707         2.46       13,598          3.3          239         1.76       28.4% Lower
1997...........................      260,326       10,946         4.20      250,310         96.2       10,668         4.26       10,016          3.8          278         2.78       34.9% Lower
1996...........................      314,825       19,427         6.17      303,878         96.5       18,939         6.23       10,947          3.5          488         4.46       28.5% Lower
1995...........................      249,670       17,110         6.85      240,345         96.3       16,645         6.93        9,325          3.7          465         4.99       28.0% Lower
1994...........................      493,441       29,018         5.88      483,474         98.0       28,534         5.90        9,967          2.0          484         4.86       17.7% Lower
1993...........................      475,038       27,593         5.81      469,346         98.8       27,327         5.82        5,692          1.2          266         4.67       19.7% Lower
                                --------------------------             -------------             -------------             -------------             -------------
                                   3,055,966      120,858         3.95    2,968,257         97.1      118,483         3.99       87,709          2.9        2,375         2.71       32.2% Lower
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
*Based on Date of Loan.      (AMH-26A2B) 5/02/2002.
Source: SAS GILFYLIQ.      File: H:/lgy-26/265/26A2b/excel/reservist and service frcl rates.xls

  Mr. SMITH of New Jersey. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Smith) that the House suspend the rules 
and pass the bill, H.R. 4085, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. SMITH of New Jersey. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________