[Congressional Record Volume 172, Number 113 (Monday, July 13, 2026)]
[Senate]
[Pages S3820-S3821]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 6615. Ms. DUCKWORTH submitted an amendment intended to be proposed 
by her to the bill S. 4784, to authorize appropriations for fiscal year 
2027 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:
        At the end of subtitle D of title VII, add the following:

     SEC. 771. CODIFICATION OF AUTHORITY FOR JOINT DEPARTMENT OF 
                   DEFENSE-DEPARTMENT OF VETERANS AFFAIRS MEDICAL 
                   FACILITY DEMONSTRATION FUND.

       (a) In General.--Chapter 55 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1110c. Joint Medical Facility Demonstration Fund

       ``(a) Establishment.--There is established on the books of 
     the Treasury under the Department of Veterans Affairs a fund 
     to be known as the `Joint Department of Defense-Department of 
     Veterans Affairs Medical Facility Demonstration Fund' (in 
     this section referred to as the `Fund' ).
       ``(b) Use of Amounts.--Amounts in the Fund shall be used to 
     facilitate the joint funding of designated combined Federal 
     medical facilities of the Department of Defense and the 
     Department of Veterans Affairs.
       ``(c) Transfers to Fund.--
       ``(1) In general.--Amounts may be transferred to the Fund 
     by the Secretary of Defense only from amounts first 
     authorized and appropriated specifically for that purpose on 
     and after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2027 for the Department of 
     Defense and by the Secretary of Veterans Affairs only from 
     amounts first authorized and appropriated specifically for 
     that purpose on and after such date for the Department of 
     Veterans Affairs, and as determined by a methodology jointly 
     established by the Secretary of Defense and the Secretary of 
     Veterans Affairs that reflects the mission-specific 
     activities, workload, and costs of provision of health care 
     at the facilities of the Department of Defense and the 
     Department of Veterans Affairs, respectively.
       ``(2) Transfers of amounts from medical care collections.--
     Amounts may be transferred to the Fund from medical care 
     collections under the following authorities for health care 
     provided at designated combined Federal medical facilities of 
     the Department of Defense and the Department of Veterans 
     Affairs:
       ``(A) Section 1095 of this title.
       ``(B) Section 1729 of title 38.
       ``(C) The Act entitled `An Act to provide for the recovery 
     from tortiously liable third persons of the cost of hospital 
     and medical care and treatment furnished by the United 
     States' (Public Law 87-693; 42 U.S.C. 2651 et seq.; commonly 
     known as the `Federal Medical Care Recovery Act').''.
       ``(d) Availability of Amounts in Fund.--
       ``(1) In general.--Amounts transferred to the Fund under 
     subsection (c) shall be available to fund the operations of 
     designated combined Federal medical facilities of the 
     Department of Defense and the Department of Veterans Affairs, 
     including capital equipment, real property maintenance, and 
     minor construction projects that are not required to be 
     specifically authorized by law under section 2805 of this 
     title or section 8104 of title 38.
       ``(2) Captain james a. lovell federal health care center.--
     Amounts transferred to the Fund by the Secretary of Defense 
     under subsection (c) may be used for facility operations of 
     the Captain James A. Lovell Federal Health Care Center, 
     consisting of the North Chicago Veterans Affairs Medical 
     Center, the Navy Ambulatory Care Center, and supporting 
     facilities designated as a combined Federal medical facility 
     under an operational agreement covered by section 706 of the 
     Duncan Hunter National Defense Authorization Act for Fiscal 
     Year 2009 (Public Law 110-417; 122 Stat. 4500).
       ``(3) Limitation.--The availability of amounts transferred 
     to the Fund under subsection (c)(2) shall be subject to the 
     provisions of section 1729A of title 38.
       ``(4) Period of availability.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     amounts transferred to the Fund under subsection (c) shall 
     remain available under this subsection until the end of the 
     first fiscal year beginning after the date of the transfer.
       ``(B) Exception.--Of the amount transferred to the Fund 
     under subsection (c) in a fiscal year, an amount not to 
     exceed two percent of such amount shall remain available

[[Page S3821]]

     under this subsection until the end of the second fiscal year 
     beginning after the date of the transfer.
       ``(e) Executive Agreement.--
       ``(1) Fund administration.--
       ``(A) In general.--The Fund shall be administered in 
     accordance with an executive agreement between the Secretary 
     of Defense and the Secretary of Veterans Affairs.
       ``(B) Guidelines.--The executive agreement under 
     subparagraph (A) shall be consistent with section 706 of the 
     Duncan Hunter National Defense Authorization Act for Fiscal 
     Year 2009 (Public Law 110-417; 122 Stat. 4500) and shall 
     provide for an independent review of the methodology 
     established under subsection (c)(1).
       ``(2) Financial reconciliation.--
       ``(A) In general.--The executive agreement between the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     under paragraph (1)(A) shall provide for the development and 
     implementation of an integrated financial reconciliation 
     process that meets the fiscal reconciliation requirements of 
     the Department of Defense and the Department of Veterans 
     Affairs.
       ``(B) Identification of contributions.--The process under 
     subparagraph (A) shall permit the Department of Defense and 
     the Department of Veterans Affairs to identify their fiscal 
     contributions to the Fund, taking into consideration 
     accounting, workload, and financial management 
     differences.''.
       (b) Conforming Repeal.--Section 1704 of the National 
     Defense Authorization Act for Fiscal Year 2010 (Public Law 
     111-84; 123 Stat. 2571), as most recently amended by section 
     1421 of the Servicemember Quality of Life Improvement and 
     National Defense Authorization Act for Fiscal Year 2025 
     (Public Law 118-159; 138 Stat. 2129), is repealed.
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense and the 
     Secretary of Veterans Affairs shall jointly submit to the 
     Committee on Veterans' Affairs and the Committee on 
     Appropriations of the Senate and the Committee on Veterans' 
     Affairs and the Committee on Appropriations of the House of 
     Representatives a report indicating medical facilities of the 
     Department of Defense or the Department of Veterans Affairs 
     that either Secretary, or both, considers appropriate to be 
     designated as combined Federal medical facilities of the 
     Department of Defense and the Department of Veterans Affairs.
                                 ______