[House Report 104-869]
[From the U.S. Government Publishing Office]




                                                 Union Calendar No. 472

104th Congress, 2d Session -  -  -  -  -  -  -  -  House Report 104-869

 
         ACTIVITIES REPORT OF THE COMMITTEE ON VETERANS' AFFAIRS

                        HOUSE OF REPRESENTATIVES

                      ONE HUNDRED FOURTH CONGRESS

                               __________

                             first session

                        Convened January 4, 1995

                       Adjourned January 3, 1996

                             second session

                        Convened January 3, 1996

                       Adjourned January 3, 1997


                                     



December 18, 1996--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                     COMMITTEE ON VETERANS' AFFAIRS

   BOB STUMP, Arizona, Chairman
G.V. (SONNY) MONTGOMERY, Mississippi CHRISTOPHER H. SMITH, New Jersey
LANE EVANS, Illinois                 MICHAEL BILIRAKIS, Florida
JOSEPH P. KENNEDY II, Massachusetts  FLOYD SPENCE, South Carolina
CHET EDWARDS, Texas                  TIM HUTCHINSON, Arkansas
MAXINE WATERS, California 1     TERRY EVERETT, Alabama
BOB CLEMENT, Tennessee               STEVE BUYER, Indiana
BOB FILNER, California               JACK QUINN, New York
FRANK TEJEDA, Texas                  SPENCER BACHUS, Alabama
LUIS V. GUTIERREZ, Illinois          CLIFF STEARNS, Florida
SCOTTY BAESLER, Kentucky             BOB NEY, Ohio
SANFORD BISHOP, Georgia              JON FOX, Pennsylvania
JAMES E. CLYBURN, South Carolina     MIKE FLANAGAN, Illinois
CORRINE BROWN, Florida               BOB BARR, Georgia
MIKE DOYLE, Pennsylvania             JERRY WELLER, Illinois
FRANK MASCARA, Pennsylvania          J.D. HAYWORTH, Arizona
COLLIN C. PETERSON, Minnesota 2 WES COOLEY, Oregon
                                     DAN SCHAEFER, Colorado
Carl D. Commenator, Chief Counsel 
        and Staff Director
                               __________

               SUBCOMMITTEE ON HOSPITALS AND HEALTH CARE

TIM HUTCHINSON, Arkansas, Chairman
CHET EDWARDS, Texas                  BOB STUMP, Arizona
JOSEPH P. KENNEDY II, Massachusetts  CHRISTOPHER H. SMITH, New Jersey
BOB CLEMENT, Tennessee               MICHAEL BILIRAKIS, Florida
FRANK TEJEDA, Texas                  FLOYD SPENCE, South Carolina
LUIS V. GUTIERREZ, Illinois          JACK QUINN, New York
SCOTTY BAESLER, Kentucky             SPENCER BACHUS, Alabama
SANFORD BISHOP, Georgia              CLIFF STEARNS, Florida
CORRINE BROWN, Florida               BOB NEY, Ohio
MIKE DOYLE, Pennsylvania             JON FOX, Pennsylvania
                                     MIKE FLANAGAN, Illinois
                               __________

 SUBCOMMITTEE ON COMPENSATION, PENSION, INSURANCE AND MEMORIAL AFFAIRS

 TERRY EVERETT, Alabama, Chairman
LANE EVANS, Illinois                 JERRY WELLER, Illinois
G.V. (SONNY) MONTGOMERY, Mississippi J.D. HAYWORTH, Arizona
JOSEPH P. KENNEDY II, Massachusetts  BOB BARR, Georgia
BOB CLEMENT, Tennessee               BOB NEY, Ohio

      SUBCOMMITTEE ON EDUCATION, TRAINING, EMPLOYMENT AND HOUSING

  STEVE BUYER, Indiana, Chairman
BOB FILNER, California               BOB BARR, Georgia
MAXINE WATERS, California 1     WES COOLEY, Oregon
JAMES E. CLYBURN, South Carolina     TIM HUTCHINSON, Arkansas
FRANK MASCARA, Pennsylvania          DAN SCHAEFER, Colorado
COLLIN C. PETERSON, Minnesota 2
                               __________
1 April 1, 1996--Rep. Maxine Waters resigned from the Committee.
2 September 17, 1996--Rep. Collin C. Peterson was appointed to the 
Committee.

                            Committee Staff

Carl D. Commenator, Chief Counsel 
         & Staff Director
Kingston E. Smith, General Counsel 
      & Deputy Staff Director
Patrick E. Ryan, Democratic Chief 
     Counsel & Staff Director
 Michael F. Brinck, Subcommittee 
          Staff Director
   Jill T. Cochran, Democratic 
     Professional Staff Member
  Daniel C. Devine, Professional 
           Staff Member
 Sally A. Elliott, Staff Assistant
  Loretta I. Fertal, Democratic 
     Professional Staff Member
  Allison Clarke, Staff Assistant
 Ira B. Greenspan, Staff Assistant
   Joel P. Hinzman, Director of 
       Information Services
    Ralph J. Ibson, Democratic 
     Professional Staff Member
  Richard A. Jones, Professional 
           Staff Member
   D. Mark Katz, Communications 
             Director
 Elizabeth A. Kilker, Democratic 
     Professional Staff Member
   Mary S. McDermott, Financial 
             Assistant
  Paige E. McManus, Professional 
           Staff Member
  Jeanne M. McNally, Legislative 
            Coordinator
 Thomas A. O'Donnell, Democratic 
     Professional Staff Member
  Sloan W. Rappoport, Assistant 
          General Counsel
John P. Roerty, Professional Staff 
              Member
   Deborah A. Smith, Democratic 
     Professional Staff Member
  Jeremiah B. Tan, Printing Clerk
   Patricia Lee Tippett, Staff 
             Assistant
JoAnn K. Webb, Subcommittee Staff 
             Director
    Angela E. West, Democratic 
     Professional Staff Member
 Arthur K. Wu, Professional Staff 
              Member


                          LETTER OF SUBMITTAL

                              ----------                              

                          House of Representatives,
                            Committee on Veterans' Affairs,
                                  Washington, DC, December 18, 1996

Hon. Robin H. Carle,
Clerk, House of Representatives,
Washington, D.C.

    Dear Ms. Carle:
    In accordance with Clause 1(d) of Rule XI of the Rules of 
the House of Representatives, I submit herewith the report of 
the Committee on Veterans' Affairs setting forth its activities 
in reviewing and studying the application, administration, and 
execution of those laws, the subject matter of which is within 
the jurisdiction of our committee.

                                                 Bob Stump,
                                                           Chairman

                                FOREWORD

                              ----------                              

    The 104th Congress achieved historic veterans' health care 
eligibility reform and significant improvements in veterans' 
benefits. The House of Representatives passed 14 bills reported 
by the Committee on Veterans' Affairs, and the Committee and 
its subcommittees held 24 oversight hearings. The Congress 
passed legislation to create six public laws solely related to 
veterans. Three of the public laws came from omnibus bills 
combining many provisions of House-passed bills.
    Legislative proposals enacted into law during the 104th 
Congress include:

           Reforming eligibility for veterans' health 
        care provided by the Department of Veterans Affairs 
        (VA).
           Directing VA to establish and manage health 
        care programs to promote the cost-effective delivery of 
        health services to eligible veterans.
           Requiring VA to develop five-year strategic 
        health care plans to guide system operations as well as 
        construction prioritization.
           Authorizing 18 major medical construction 
        projects totaling $358.15 million.
           Extending VA's authority to provide priority 
        health care to veterans exposed to ionizing radiation, 
        herbicide-exposed veterans, and Persian Gulf veterans.
           Lifting restrictions on title 38 employees 
        to work in their professional capacity in outside 
        employment while employed full-time by VA.
           Providing full cost-of-living adjustments 
        for 1996 and 1997 for service-connected disabled 
        veterans and survivors of certain veterans.
           Extending the date of the Vietnam era to 
        February 28, 1961, and extending eligibility for 
        certain health benefits to those serving on or after 
        January 9, 1962.
           Allowing conversion of Veterans Group Life 
        Insurance policies to commercial policies at any time.
           Requiring VA to pay a veteran's surviving 
        spouse an entire month's compensation or pension 
        payment for the month in which a veteran dies.
           Increasing the period for which accrued 
        benefits are payable for veterans' survivors from one 
        year to two years.
           Making permanent a pilot program authorizing 
        VA education benefits for participation in alternative 
        teacher certification programs.
           Authorizing transfer of active-duty VEAP 
        participants to the Montgomery GI Bill.
           Authorizing those active-duty members of the 
        Army and Air Force National Guard who enlisted between 
        June 30, 1985, and November 29, 1989, to participate in 
        the Montgomery GI Bill.
           Improving administrative functions within 
        the VA education service, the National Cemetery System, 
        the VA life insurance program, and the Veterans 
        Benefits Administration.
           Establishing a commission to evaluate the 
        programs of the Federal Government that assist members 
        of the Armed Forces and veterans in readjusting to 
        civilian life.
           Re-establishing the requirement that a 
        veteran's employment handicap must be a result of a 
        service-connected disability in order to receive VA 
        vocational rehabilitation benefits.

    Federal expenditures for veterans in fiscal year 1996 
amounted to $36.9 billion, and in fiscal year 1997 will amount 
to approximately $39.8 billion. This funding provides health 
care services to eligible veterans through a Department of 
Veterans Affairs (VA) system of 173 hospitals, 398 outpatient 
clinics, 132 nursing home care units and 39 domiciliaries, and 
through private providers under contract arrangements. This 
funding also provides compensation, pension, insurance, 
memorial affairs, education, training, employment and housing 
programs for veterans. As a result, the United States continues 
to have the most generous and comprehensive veterans' benefits 
of any nation in the world.
    I especially thank the Honorable G.V. (Sonny) Montgomery, 
the Ranking Minority Member and former chairman of our 
Committee, for his lifetime of work on behalf of veterans. He 
retires at the end of this Congress. My good friend is widely 
known as ``Mr. Veteran'' because of his prominence in veterans' 
affairs. The education program named for him, the Montgomery GI 
Bill, is probably his greatest and best known legislative 
achievement. This program is of immense benefit to veterans and 
to America. No member is more respected and popular among his 
colleagues than Mr. Montgomery. As chairman of the Committee 
for fourteen years, he became the paradigm for its bipartisan 
tradition, and as ranking minority member he continued it. It 
has been an honor and a pleasure to have served in the House 
with the distinguished gentleman from Mississippi.
    I also greatly appreciate the diligence of the subcommittee 
chairmen and ranking minority members in holding the many 
hearings and markups so necessary to the accomplishment of the 
Committee's oversight and legislative agendas for veterans. 
They are: the Honorable Tim Hutchinson, Chairman of the 
Subcommittee on Hospitals and Health Care, and the Honorable 
Chet Edwards, the Subcommittee's Ranking Minority Member; the 
Honorable Terry Everett, Chairman of the Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs, and the 
Honorable Lane Evans, the Subcommittee's Ranking Minority 
Member; the Honorable Steve Buyer, Chairman of the Subcommittee 
on Education, Training, Employment and Housing, and the 
Honorable Bob Filner, the Subcommittee's Ranking Minority 
Member.
    The House and Senate Veterans' Affairs Committees have 
continued their cooperative relationship during the 104th 
Congress, keeping the needs of our nation's veterans in the 
forefront. What differences have arisen were resolved through a 
constructive process of compromise which I believe resulted in 
the most beneficial legislation possible for veterans. I 
particularly acknowledge the leadership of the Honorable Alan 
Simpson of Wyoming, Chairman of the Senate Committee, who is 
also retiring at the end of this Congress. His insightful 
analysis of the issues and his keen wit will be greatly missed. 
Additionally, I express my appreciation to the Honorable John 
D. Rockefeller of West Virginia, the Ranking Minority Member of 
the Senate Committee, for his hard work on our veterans' 
legislation and I look forward to a continuation of our efforts 
on behalf of veterans.
    For those members of this Committee who, in addition to the 
Honorable G.V. (Sonny) Montgomery, will be leaving their 
assignments here at the end of this Congress, I commend their 
faithful and dedicated service to veterans. They are: the 
Honorable Tim Hutchinson, the Honorable Chet Edwards, the 
Honorable Robert W. Ney, the Honorable Jon D. Fox, the 
Honorable Michael Flanagan, the Honorable Jerry Weller, the 
Honorable J.D. Hayworth, and the Honorable Wes Cooley.
    Finally, I thank the staff of the Committee on Veterans' 
Affairs for their constancy and attention to the daily tasks of 
committee business. Together with our Committee members and our 
Senate colleagues, their work on our legislative and oversight 
agendas was invaluable to the Committee's success in reaching 
its objectives for veterans.

                                                 Bob Stump,
                                                           Chairman


                            C O N T E N T S

                               __________
                                                                   Page

Jurisdiction of the House Committee on Veterans' Affairs.........     1
Activities under jurisdiction of the committee as administered 
  by:
    The Department of Veterans Affairs...........................     2
          Medical care...........................................     2
          Medical research.......................................     3
          Compensation and pension...............................     4
          Insurance..............................................     4
          National cemeteries....................................     4
          Education..............................................     5
          Home loan assistance...................................     5
          Employees..............................................     5
          History of the Department of Veterans Affairs..........     6
    The Department of Labor......................................     7
    The American Battle Monuments Commission.....................     9
Messages from the President and other Executive Branch 
  communications.................................................    10
Summary of action by the Committee on Veterans' Affairs..........    18
Hearings and Executive Sessions..................................    19
Legislation enacted into law:
    Public Law 104-57............................................    23
    Public Law 104-110...........................................    24
    Public Law 104-262...........................................    26
    Public Law 104-263...........................................    30
    Public Law 104-275...........................................    31
    Public Law 104-202...........................................    34
Activities of the subcommittees:
    Subcommittee on Hospitals and Health Care....................    35
    Subcommittee on Compensation, Pension, Insurance and Memorial 
      Affairs....................................................    41
    Subcommittee on Education, Training, Employment and Housing..    48
Budget activities................................................    58
Committee web site...............................................    59
Oversight Plan for the 104th Congress............................    61
    Subcommittee on Hospitals and Health Care....................    61
    Subcommittee on Compensation, Pension, Insurance and Memorial 
      Affairs....................................................    64
    Subcommittee on Education, Training, Employment and Housing..    65
Report on the budget for fiscal year 1996........................    67
Report on the budget for fiscal year 1997........................    99
Statistical data--war veterans and dependents....................   113
                                     

                                                 Union Calendar No. 472
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-869
_______________________________________________________________________



ACTIVITIES OF THE COMMITTEE ON VETERANS' AFFAIRS FOR THE 104TH CONGRESS

                                _______
                                

December 18, 1996--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


Mr. Stump, from the Committee on Veterans' Affairs, pursuant to Clause 
                1(d) of Rule XI, submitted the following

                              R E P O R T

                              Jurisdiction

    Rule X of the Rules of the House of Representatives 
establishes the standing committees of the House and their 
jurisdiction. Under that rule, all bills, resolutions, and 
other matters relating to the subjects within the jurisdiction 
of any standing committee shall be referred to such committee. 
Clause 1(r) of Rule X establishes the jurisdiction of the 
Committee on Veterans' Affairs as follows:

          (1) Veterans' measures generally.
          (2) Cemeteries of the United States in which veterans 
        of any war or conflict are or may be buried, whether in 
        the United States or abroad, except cemeteries 
        administered by the Secretary of the Interior.
          (3) Compensation, vocational rehabilitation, and 
        education of veterans.
          (4) Life insurance issued by the government on 
        account of service in the armed forces.
          (5) Pensions of all the wars of the United States, 
        general and special.
          (6) Readjustment of servicemen to civil life.
          (7) Soldiers' and sailors' civil relief.
          (8) Veterans' hospitals, medical care, and treatment 
        of veterans.

    This committee was established January 2, 1947, as a part 
of the Legislative Reorganization Act of 1946 (60 Stat. 812), 
and was vested with jurisdiction formerly exercised by the 
Committee on World War Veterans' Legislation, Invalid Pensions, 
and Pensions. Jurisdiction over veterans' cemeteries 
administered by the Department of Defense was transferred from 
the Committee on Interior and Insular Affairs on October 20, 
1967, by H. Res. 241, 90th Congress.

                     DEPARTMENT OF VETERANS AFFAIRS

    The U.S. Department of Veterans Affairs was established 
March 15, 1989, with Cabinet rank, succeeding the Veterans 
Administration (VA), and assumed responsibility for providing 
federal benefits to veterans and their dependents. Headed by 
the Secretary of Veterans Affairs, VA is the second largest of 
the 14 cabinet departments and operates nationwide programs of 
health care, assistance services and national cemeteries.
    The present veteran population is estimated at 26 million, 
as of September 30, 1996. Nearly 80 of every 100 living 
veterans served during defined periods of armed hostilities. 
Altogether, more than one-fourth of the nation's population--
approximately 70 million persons who are veterans, dependents 
and survivors of deceased veterans--are potentially eligible 
for VA benefits and services.

                              Medical Care

    The largest and most visible component of the Department of 
Veterans Affairs is its health care system. The system has 
grown from 54 hospitals in 1930, when the Veterans 
Administration was formed, to 173 today. VA operates at least 
one medical center in each of the 48 contiguous states, Puerto 
Rico, and the District of Columbia, however, a concerted effort 
has been made to move away from the ``bricks and mortar'' 
approach to health care. Accordingly, only one new VA 
hospital--at Palm Beach, Florida--has been constructed in the 
recent past.
    In 1996, with 45,804 medical center beds, VA treated 
834,511 patients in VA hospitals, 35,929 in nursing home care 
units, and 19,229 in domiciliary facilities. VA's outpatient 
clinics register approximately 28.4 million visits each year. 
An estimated three million individual veterans receive care 
annually.
    VA currently is affiliated with 105 medical schools, 85 
dental schools and 1,196 other schools across the nation. More 
than one-half of all practicing physicians in the United States 
had part of their professional education in the VA health care 
system. Each year, approximately 110,000 health professionals 
receive training in VA medical centers.
    Since 1979, VA has operated Vietnam Veteran Outreach 
Centers (Vet Centers), which provide readjustment counseling 
services to Vietnam-era veterans. With the advent of the 
Persian Gulf War, eligibility for Vet Center counseling was 
expanded to include those veterans as well as veterans who 
served during other periods of armed hostilities following the 
Vietnam era--Lebanon, Grenada and Panama. Additionally, Public 
Law 104-262 expands eligibility for Vet Center counseling to 
combat veterans of conflicts prior to the Vietnam era. However, 
Public Law 104-262 also places a deadline on non-theater 
Vietnam-era veterans to seek VA readjustment counseling by 
January 1, 2000.
    Currently, there are 206 Vet Centers nationwide. 
Approximately 8 million veterans have visited Vet Centers since 
the program began. Counseling is provided for a variety of 
reasons, including employment problems, marital difficulties, 
and post-traumatic stress disorder (PTSD). VA also conducts a 
variety of special programs to assist homeless veterans. Both 
alcohol and drug abuse rehabilitation and PTSD programs were 
expanded in recent years.
    In addition to outreach programs for homeless veterans, VA 
utilizes the contributions of time and energy of volunteers 
from all walks of life. More than 95,000 volunteers through 
VA's Voluntary Service donate more than 13 million hours of 
service each year to bring companionship and additional care to 
hospitalized veterans.

                            Medical Research

    While providing high quality health care to the nation's 
veterans, VA also conducts an array of research activities 
concentrating on some of the most difficult research challenges 
facing medical science today. VA is a world leader in such 
areas as aging, women veterans' health issues, AIDS, post-
traumatic stress disorder (PTSD) and other mental health 
issues. VA research has improved medical care not only for the 
veteran population but also for the entire population.
    VA researchers played key roles in improving artificial 
limbs and eradicating tuberculosis, and in developing the 
cardiac pacemaker, the CT scan, and magnetic source imaging, 
which permits safe removal of brain tumors. The first kidney 
transplant in the United States was performed at a VA medical 
facility, and the first successful drug treatments for high 
blood pressure and schizophrenia were pioneered by VA 
researchers. The ``Seattle Foot'' was created by VA to give 
amputees the push-off needed to run and jump, as well as walk. 
VA contributions to medical knowledge have won VA scientists 
many prestigious awards, including the Nobel prize.
    Recent advances by VA researchers showed that prostate 
cancer can now be treated with laser surgery, which is faster, 
less painful and more cost-efficient. In treating high blood 
pressure, doctors are now able to choose the most beneficial 
treatments based on patient characteristics such as age and 
race. VA researchers also showed that low doses of the drug 
warfarin reduce the risk of stroke by 79 percent in patients 
who suffer from an irregular heartbeat, with minimal risk of 
side effects. A new diagnostic tool for Alzheimer's disease can 
predict dementia outcomes during a six to eight year period 
with an accuracy rate of from 80 to 90 percent. Through 
``compassionate use'' drug trials, veterans with AIDS have 
access to investigational drugs before they are available to 
the public for clinical use.
    Early research by VA with animals gives hope that spinal 
cord regeneration may be possible after paralysis. Rheumatoid 
arthritis, an autoimmune disease, can be genetically cured in 
mice; this is the first step toward a treatment in humans. VA 
researchers also found the substance responsible for the 
breakdown of bones in osteoporosis. In cancer research, VA 
researchers are developing new ``suicide genes'' that would 
seek out cancerous cells and identify them so that drugs would 
affect cancer cells but not healthy ones.
    Research topics identified as the result of the Vietnam 
experience such as PTSD and the health effects of Agent Orange 
exposure are continuing, with new topics relating to the 
Persian Gulf War. VA researchers are now examining the early 
effects of war trauma, including the aspect of gender 
differences. VA is involved in a number of Persian Gulf War-
related research projects and recently established three 
environmental hazards research centers, with an initial focus 
on the possible health effects of environmental exposures of 
Persian Gulf veterans.

                        Compensation and Pension

    More than 2.6 million veterans receive disability 
compensation or pension payments from VA. Some 680,585 widows, 
children and parents of deceased veterans are being paid 
survivor compensation or death pension benefits. VA disability 
and death compensation and pension payments were more than $18 
billion for fiscal year 1996.

                               Insurance

    VA operates one of the largest life insurance programs in 
the world and the fourth largest in the United States. VA 
administers seven life insurance programs under which 2.7 
million policies with a value of $24.7 billion remained in 
force at the end of fiscal year 1996. In addition, VA 
supervises the Servicemembers' Group Life Insurance and 
Veterans' Group Life Insurance programs, which provide some 
$540 billion in insurance coverage to approximately 3 million 
veterans and members of the uniformed services. The 1996 GI 
life insurance dividend will return almost $912 million to more 
than 2.2 million policyholders.

                          National Cemeteries

    Since 1973, when VA assumed responsibility for the National 
Cemetery System, 12 new national cemeteries have been 
established. Today the system is composed of 114 cemeteries in 
38 states and Puerto Rico. Of these, 56 have unassigned grave 
sites for complete interments (those which include a casket).
    VA is continuing to actively pursue the development of new 
cemeteries in those metropolitan areas which are presently not 
served by a national cemetery. The most recent construction of 
these new cemeteries is the San Joaquin Valley National 
Cemetery in northern California. It serves the greater San 
Francisco Bay area and opened in 1992. Since then, VA has 
acquired a site in the Seattle/Tacoma, Washington area and 
construction of that national cemetery is well underway. In 
addition, acreage has been acquired by VA for the establishment 
of national cemeteries at the following locations: a Saratoga 
site near Albany, New York; a Joliet site near Chicago, 
Illinois; a Medina site near Cleveland, Ohio; and a Mountain 
Creek site intended to serve the Dallas/Ft. Worth, Texas area.
    Since July 30, 1973, when VA assumed management of the 
cemetery system from the Department of the Army, total acreage 
in the system increased from 4,139 to the present 13,118.5 
acres (although this does not include the acreage in 34 
soldiers' lots, monument sites and confederate cemeteries 
administered by NCS). Interments are expected to increase from 
71,786 in fiscal year 1996 to more than 106,300 in 2008.
    In fiscal year 1996, VA provided nearly 319,758 headstones 
or markers to mark the graves of veterans buried in private, 
state veterans, and national cemeteries.

                               Education

    Since 1944, when the first GI Bill became law, more than 20 
million beneficiaries have participated in GI Bill education 
and training programs. This includes 7.8 million World War II 
veterans, 2.4 million Korean War veterans, and 8.2 million post 
Korean and Vietnam era veterans and active duty service 
personnel.
    Proportionally, Vietnam era veterans were the greatest 
participants in GI Bill training. Approximately 76 percent of 
those eligible took training, compared with 50.5 percent for 
World War II veterans and 43.4 percent for Korean era veterans.
    The All-Volunteer Force Educational Assistance Program 
provides benefits for veterans, service personnel and members 
of the Selected Reserve who train under the Montgomery GI Bill. 
In 1995, 274,606 veterans, 17,352 service personnel and 97,246 
reservists received these benefits. In 1996, 271,592 veterans, 
15,159 service personnel and 83,639 reservists were projected 
to receive training. In 1997, projected trainees are expected 
to number 304,901 veterans, 13,228 service personnel, and 
81,714 reservists. Since the inception of the Orphan's 
Educational Assistance Act of 1956, VA has assisted in the 
education of nearly 575,000 eligible dependents of veterans 
whose deaths or permanent and total disabilities were service-
connected. Since the enactment of the Servicemen's Readjustment 
Act of 1944, the cost of educational benefits has totaled 
nearly $73 billion.

                          Home Loan Assistance

    VA's 52 year old loan guarantee program has benefited more 
than 15 million veterans and their dependents. From 1944, when 
this program was established as part of the original GI Bill, 
through September 1996, VA home loan guarantees totaled more 
than $534 billion. In fiscal year 1996, VA guaranteed 320,767 
loans valued at $32.6 billion and assisted 449 disabled 
veterans with grants totaling $15.2 million for specially 
adapted housing.

                Department of Veterans Affairs Employees

    As of September 30, 1996, VA personnel consisted of 221,868 
employees. Among all the departments and agencies of the 
federal government, only the Department of Defense has a larger 
work force. Of the total number of VA employees, 199,050 work 
in the Veterans Health Administration, 12,603 are employed in 
the Veterans Benefits Administration, 1,287 are within the 
National Cemetery System, and 3,065 work in the Veterans 
Canteen Service. The remainder, 5,863 employees, are in various 
staff offices.
    Women account for 54.5 percent of VA employees and the 
Department is a leader in hiring veterans. Approximately 49 
percent of all male employees are veterans and as of September 
30, 1996, VA employed 7,041 women veterans. Of those employees 
who are veterans, 70.1 percent of the men and 48.5 percent of 
the women served during the Vietnam era. Of VA's total 
workforce, 5.8 percent are disabled veterans.

           History of the Department of Veterans Affairs (VA)

1930--The Veterans Administration was created by Executive 
        Order 5398, signed by President Herbert Hoover on July 
        21, 1930. At the time, there were 54 hospitals, 4.7 
        million living veterans, and 31,600 VA employees.
1933--The Board of Veterans' Appeals was established.
1944--On June 22, President Roosevelt Franklin Roosevelt signed 
        the ``Servicemen's Readjustment Act of 1944'' (Public 
        Law 346, passed unanimously by the 78th Congress).
1946--The Department of Medicine & Surgery was established, 
        succeeded in 1989 by the Veterans Health Services and 
        Research Administration, renamed the Veterans Health 
        Administration in 1991.
1953--The Department of Veterans Benefits was established, 
        succeeded in 1989 by the Veterans Benefits 
        Administration.
1973--The National Cemetery System (except for Arlington 
        National Cemetery) was transferred by the Army to VA.
1988--Legislation to elevate VA to Cabinet status was signed by 
        President Ronald Reagan.
1989--On March 15, VA became the 14th Department in the 
        President's Cabinet.

                                Secretaries of the Department of Veterans Affairs                               
                                                                                                                
                                                                                                                
                                                                                                                
Jesse Brown                                                        1993--Present                                
Edward J. Derwinski                                                1989-1992                                    
                                                                                                                


                                  Administrators of the Veterans Administration                                 
                                                                                                                
                                                                                                                
                                                                                                                
Thomas K. Turnage                                                  1986-1989                                    
Harry N. Walters                                                   1982-1986                                    
Robert P. Nimmo                                                    1981-1982                                    
Max Cleland                                                        1977-1981                                    
Richard L. Roudebush                                               1974-1977                                    
Donald E. Johnson                                                  1969-1974                                    
William J. Driver                                                  1965-1969                                    
John S. Gleason                                                    1961-1964                                    
Sumner G. Whittier                                                 1957-1961                                    
Harvey V. Higley                                                   1953-1957                                    
Carl N. Gray                                                       1948-1953                                    
Omar N. Bradley                                                    1945-1947                                    
Frank T. Hines                                                     1930-1945                                    
                                                                                                                

                          DEPARTMENT OF LABOR

               Veterans' Employment and Training Service

    The Department of Labor (DOL) engages in a variety of 
activities to assist veterans obtain a job or the training and 
other employment development services they need to become 
employable. In accordance with Chapter 41 of title 38, United 
States Code, the highest priority is given to disabled veterans 
and veterans of the Vietnam era.
    The Assistant Secretary for Veterans' Employment and 
Training (ASVET) is the principal advisor to the Secretary of 
Labor regarding DOL policies and programs to meet the 
employment and training needs of veterans, to protect the 
reemployment rights of protected individuals in the uniformed 
services, and to facilitate the transition of military 
servicemembers to the civilian work force. The Office of the 
ASVET, through the Veterans' Employment and Training Service 
(VETS), administers grants to States and local government 
entities primarily to support veterans' employment specialist 
staffing, provides reemployment rights complaint investigation 
and mediation services, formulates and implements inter-agency 
agreements to ensure the seamless provision of services to 
veterans, provides technical assistance and training to 
veterans services providers' staff, monitors the performance of 
state job service agencies for veterans, conducts pilot 
projects to develop and test new approaches to serving 
veterans, and conducts pilot projects for veterans' hiring by 
public and private sector employers.
    The field staff of the VETS is stationed in a nationwide 
network of regional, state and area offices. There is at least 
one VETS representative in every state and DOL Regional Office 
(Boston, New York, Philadelphia, Atlanta, Chicago, Dallas, 
Kansas City, Denver, San Francisco and Seattle). Other than the 
regional office staff, most VETS staff are located in state job 
service agency offices.
    The major activities and programs for veterans, Reservists, 
National Guard members, and transitioners conducted by the 
Office of the ASVET are:
    Job Service and One Stop Service Centers. The state job 
service agencies are funded primarily by DOL grants. Each must 
give priority to veterans for job counseling, job development, 
job referral, and other employment services they offer to the 
public. Nearly all job service offices have at least one 
specially trained state employee known as the Local Veterans' 
Employment Representative (LVER), funded by a VETS grant. LVERs 
work directly with veterans, assist local office management in 
maintaining veterans' priority, act as case manager for 
veterans in need of intensive service, and network with other 
service providers.
    Disabled Veterans Outreach Program. DVOP staff also are 
state employees funded by a VETS grant and are located in most 
Job Service offices. About one in four are stationed at 
locations where disabled and other disadvantaged veterans in 
need of intensive job placement assistance have better access, 
e.g., at Departments of Veterans Affairs offices, Job Training 
Partnership Act program centers, One Stop Service Centers and 
military base transition centers. The specially trained DVOP 
staff provides intensive job development, vocational guidance, 
outreach, community networking and post-placement follow-up 
services to veterans with serious barriers to employment to 
help them become employed.
    Transition Assistance Program. TAP is a joint effort by the 
Departments of Labor, Defense and Veterans Affairs to 
facilitate the transition of separating military personnel into 
the civilian work force. At approximately 200 military bases 
nationwide, DOL-funded staff (either LVERs, DVOPS, VETS or 
contractor staff) deliver three-day workshops to personnel up 
to 180 days prior to separation. Workshop participants receive 
labor market information and are taught job search skills.
    Unemployment Compensation for Ex-servicemembers. 
Unemployment compensation is available to certain veterans 
immediately following separation from active duty while they 
are looking for work. Federally funded, this program is 
administered by the State Employment Security Agencies' 
unemployment insurance divisions. Such offices are usually co-
located with the State Job Service offices or One Stop Service 
Centers. Veterans filing for or collecting unemployment 
compensation are generally referred to the Local Veterans' 
Employment Representative for help in obtaining employment.
    Veterans Affirmative Action. Chapter 42 of title 38 of the 
United States Code prohibits employers who are federal 
contractors from discriminating against qualified disabled or 
Vietnam era veterans in hiring or promotional actions, and 
requires them to list virtually all of their job openings with 
the Job Service agency for priority referral of target-group 
veterans. Employers may list directly with the local office, or 
electronically with ``America's Job Bank,'' DOL's nationwide 
labor exchange operated in cooperation with the States. Subject 
employers must submit an annual report to the VETS that 
enumerates their hiring record relative to this statute. Also, 
federal agencies must include in their affirmative action plans 
specific provisions for disabled veterans, and must submit an 
annual report to the Office of Personnel Management.
    Training Programs. As authorized by title IV of the Job 
Training Partnership Act (JTPA), VETS awards grants to State 
and local government entities and non-profit organizations 
specifically for training leading to job placement of disabled, 
Vietnam era and recently separated veterans. The majority of 
these grants are awarded through a competitive process to the 
applicants whose project proposals best meet the special 
emphasis and performance goal criteria set forth by the ASVET, 
and are renewed for a second year if the performance goals are 
met in the first year. Also, VETS staff at the local level 
promotes inclusion of goals for veterans in training programs 
funded by other DOL sources, for example, the JTPA grants 
administered by the Employment and Training Administration.
    Reemployment Rights. The Uniformed Services Employment and 
Reemployment Rights Act (USERRA) of 1994 amended chapter 43 of 
title 38 of the United States Code. Among other improvements, 
it expanded the purview of DOL to include federal employers. 
Under USERRA, most recently separated veterans, Reservists, and 
National Guard members upon completion of active duty are 
entitled to reinstatement to their pre-service employment, with 
all attendant rights and benefits, as if they had never left to 
perform the active duty. Also, the statute prohibits 
discrimination against Reservists and National Guard members by 
employers. The VETS staff is responsible for investigating 
complaints, mediating settlements, referring cases that cannot 
be settled to the Department of Justice for litigation, and 
providing information and technical assistance to employers to 
prevent inadvertent violations of the statute.
    Veterans' Preference and Federal Contractor Non-Compliance 
Complaints. VETS is responsible under the provisions of chapter 
41 of title 38 of the United States Code for monitoring federal 
agencies' implementation of veterans' preference requirements 
applicable to hiring, and to report to the Office of Personnel 
Management (OPM) for remedial action any evidence of non-
compliance. Under the inter-agency agreement with OPM, upon 
receipt of a complaint, VETS staff completes a fact-finding 
process, attempts to resolve the complaint, and reports the 
matter to OPM for remedial action if not settled. Similarly, 
VETS staff follow up on complaints from veterans alleging non-
compliance by federal contractors, and try to settle the 
complaints through fact-finding and mediation. If not settled, 
the complaint goes to the DOL's Office of Federal Contract 
Compliance Program (OFCCP) for enforcement of the statute.
    National Veterans' Training Institute. Through a 
competitively awarded contract with the University of Colorado 
at Denver, VETS administers a training institute for service 
provider staff. The multi-course curriculum is continually 
refined so that staff such as DVOPS and LVERs may acquire the 
basic and advanced knowledge and skills needed to effectively 
serve their customers. Courses are delivered in both 
residential and distance learning modes.

                  AMERICAN BATTLE MONUMENTS COMMISSION

    The American Battle Monuments Commission (ABMC), created by 
an Act of Congress in 1923 (36 U.S.C. 121-138B), is a federal 
agency responsible for the construction and permanent 
maintenance of military cemeteries and memorials on foreign 
soil, as well as certain memorials in the United States. Its 
principal functions are to commemorate, through the erection 
and maintenance of suitable memorial shrines, the sacrifices 
and achievements of American armed forces where they served 
since April 6, 1917; to design, construct, operate, and 
maintain permanent American military burial grounds and 
memorials in foreign countries; to control the design and 
construction on foreign soil of U.S. military monuments and 
markers by other U.S. citizens and organizations, both public 
and private; and to encourage U.S. governmental agencies and 
private individuals and organizations to maintain adequately 
the monuments and markers erected by them on foreign soils. 
When directed by Congress, the Commission develops and erects 
national military monuments in the United States, such as the 
Korean War Veterans Memorial and the World War II Memorial.
    In the performance of these functions, ABMC administers, 
operates and maintains 24 permanent American military cemetery 
memorials and 53 monuments, memorials, markers and separate 
chapels in fourteen foreign countries, the Commonwealth of the 
Northern Mariana Islands, Gibraltar, and four memorials in the 
United States.
    Interred in the cemeteries are 124,912 U.S. war dead--750 
from the Mexican War, 30,921 from World War I, and 93,241 from 
World War II. Additionally, 6,573 American veterans and others 
are interred in the Mexico City and Corozal cemeteries. The 
Mexico City cemetery and those of the World Wars are closed to 
future burials except for the remains of U.S. war dead yet to 
be found in the battle areas of World Wars I and II. In 
addition to burials at the cemeteries and tablets of the 
missing at the cemeteries overseas, three memorials on U.S. 
soil commemorate those who were missing in action, lost or 
buried at sea during the World Wars, the Korean Conflict and 
the Vietnam era. Those 94,100 war dead are listed individually 
on the Tablets of the Missing.
    In addition to its other activities, the ABMC provides 
information and assistance, on request, to relatives and 
friends of the war dead interred or commemorated at its 
facilities.

        MESSAGES FROM THE PRESIDENT AND EXECUTIVE COMMUNICATIONS

    A letter from the Secretary, Department of Labor, 
transmitting a report on the labor market situation for certain 
disabled veterans and Vietnam Theater veterans, pursuant to 38 
U.S.C. 2010A.

    A letter from the Secretary of Veterans Affairs, 
transmitting a report on the Montgomery GI Bill, pursuant to 38 
U.S.C. 3036.

    A letter from the Secretaries of Defense and Veterans 
Affairs, transmitting a report on the implementation of the 
health resources sharing portion of the ``Department of 
Veterans Affairs and Department of Defense Health Resources 
Sharing and Emergency Operations Act'' for Fiscal Year 1994, 
pursuant to 38 U.S.C. 8111(f).

    A letter from the Secretary of Veterans Affairs, 
transmitting a report on contract care and services, furnished 
to eligible veterans, pursuant to Public Law 100-322, sec. 
112(a).

    A letter from the Secretary, Department of Veterans 
Affairs, transmitting the 1994 Annual Report, pursuant to 38 
U.S.C. 214, 221(c), 664.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to increase, effective as of December 1, 
1995, the rates of disability compensation for veterans with 
service-connected disabilities and the rates of dependency and 
indemnity compensation for survivors of such veterans, and for 
other purposes.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to provide for cost-savings in the housing 
loan program for veterans, to limit cost-of-living increases 
for Montgomery GI Bill benefits, and for other purposes.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, and other statutes, to extend VA's 
authority to operate various programs, collect copayments 
associated with provision of medical benefits, and obtain 
reimbursement from insurance companies for care furnished.

    A letter from the Secretary of Labor, transmitting the 
annual report on employment and training programs for veterans 
during program year 1992 (July 1, 1992 through June 30, 1993) 
and fiscal year 1993 (October 1, 1992 through September 30, 
1993), pursuant to 38 U.S.C. 2009(b).

    A letter from the Secretary of Veterans Affairs, 
transmitting a report covering the disposition of cases granted 
relief from administrative error, overpayment and forfeiture by 
the Administrator in 1994, pursuant to 38 U.S.C. 210(c)(3)(B).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to clarify the eligibility of certain 
minors for burial in national cemeteries.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to restrict payment of a clothing allowance 
to incarcerated veterans and to create a presumption of 
permanent and total disability for pension purposes for certain 
veterans who are patients in a nursing home.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to change the name of Servicemen's Group 
Life Insurance program to Servicemembers' Group Life Insurance, 
to merge the Retired Reservists' Servicemembers' Group Life 
Insurance program into the Veterans' Group Life Insurance 
program, to extend Veterans' Group Life Insurance coverage to 
members of the Ready Reserve of a uniformed service who retire 
with less than 20 years of service, to permit an insured to 
convert a Veterans' Group Life Insurance policy to an 
individual policy of life insurance with a commercial insurance 
company at any time, and to permit an insured to convert a 
Servicemember's Group Life Insurance policy.

    A letter from the General Counsel, Department of Defense, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to authorize the termination of 
Servicemen's Group Life Insurance when premiums are not paid.

    A letter from the Chief Judge, United States Court of 
Veterans Appeals, transmitting the annual estimate of the 
expenditures and appropriations necessary for the maintenance 
and operation of the Court of Veterans Appeals Retirement Fund, 
pursuant to 31 U.S.C. 9503(a)(1)(B).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to permit the 
Secretary of Veterans Affairs to reorganize the Veterans Health 
Administration notwithstanding the notice and wait requirements 
of section 510 of title 38, United States Code, and to amend 
title 38, United States Code, to facilitate the reorganization 
of the headquarters of the Veterans Health Administration.

    A letter from the Secretary of Labor, transmitting the 
Department's report entitled, ``Transition Assistance Program: 
Phase III Impact Analysis'', pursuant to Public Law 101-237, 
Section 408(d) (103 Stat. 2084).

    A letter from the Director, Office of Personnel Management, 
transmitting the 1993 and 1994 combined annual report on 
Veteran's Employment in the Federal Government, pursuant to 38 
U.S.C. 4214(e)(1).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation entitled the 
``Department of Veterans Affairs Improvement and Reinvention 
Act of 1995''.

    A letter from the Secretary, Department of Veterans 
Affairs, transmitting a draft of proposed legislation to amend 
title 38, sections 810(2) and 810(h)(3)(B), U.S.C.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to modify disbursement agreement authority 
to include residents and interns serving in any Department 
facility providing hospital care or medical services.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to revise the procedures for providing 
claimants and their representatives with copies of Board of 
Veterans' Appeals decisions and to protect the right of 
claimants to appoint veterans service organizations as their 
representatives in claims before the Department of Veterans 
Affairs.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to expand the authority of the Secretary of 
Veterans Affairs to suspend a special pay agreement for 
physicians and dentists who enter residency training programs.

    A letter from THE NATIONAL ADJUTANT, THE DISABLED AMERICAN 
VETERANS, transmitting the report of the proceedings of the 
organization's 74th National Convention, including their annual 
audit report of receipts and expenditures as of December 31, 
1994, pursuant to 36 U.S.C. 90i and 44 U.S.C. 1332.

    A letter from THE DIRECTOR, NATIONAL LEGISLATIVE 
COMMISSION, THE AMERICAN LEGION, transmitting the proceedings 
of the 77th National Convention of the American Legion, held in 
Indianapolis, Indiana, September 4, 5, and 6, 1995, as well as 
a report on the Organization's activities for the year 
preceding the Convention, pursuant to 36 U.S.C. 49.

    A letter from the Secretaries of Veterans Affairs and 
Defense, transmitting a report on the implementation of the 
health resources sharing portion of the ``Department of 
Veterans Affairs and Department of Defense Health Resources 
Sharing and Emergency Operations Act'' for Fiscal Year 1995, 
pursuant to 38 U.S.C. 8111(f).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to exempt full-time registered nurses, 
physician assistants, and expanded-function dental auxiliaries 
from restrictions on remunerated outside professional 
activities.

    A letter from the Secretary of Health and Human Services, 
transmitting the Department's report on Medicaid Drug Rebate 
Program Best Price Changes and Rebates Claimed for 4th quarter 
calendar year 1992 through 2nd quarter calendar year 1994, 
pursuant to Public Law 102-585, Section 602(b)(2) (106 Stat. 
4970).

    A letter from the Secretary of Veterans Affairs, 
transmitting a report covering the disposition of cases granted 
relief from administrative error, overpayment and forfeiture by 
the Administrator in 1995, pursuant to 38 U.S.C. 503.

    A letter from the Secretary of Veterans Affairs 
transmitting the Department's report on the evaluation of 
health status of spouses and children of Persian Gulf War 
veterans, pursuant to 38 U.S.C. 1117nt.

    A letter from the Secretary of Veterans Affairs, 
transmitting the Department's sixth report describing the 
administration of the Montgomery GI Bill--Active Duty 
educational assistance program, pursuant to 38 U.S.C. 3036.

    A letter from the Director, Office of Management and 
Budget, transmitting a draft of proposed legislation entitled 
the ``Work First and Personal Responsibility Act of 1996''.

    A letter from the Secretary of Veterans Affairs, 
transmitting the Fiscal Year 1995 Annual Report of the 
Secretary of Veterans Affairs, pursuant to 38 U.S.C. 529.

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--VA Acquisition Regulations: Loan 
Guaranty and Vocational Rehabilitation and Counseling Programs 
(RIN: 2900-AG65) Received May 3, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule --Delegation of Authority to Order 
Advertising for Use in Recruitment (RIN: 2900-AH74) Received 
May 3, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Servicemen's and Veterans' Group Life 
Insurance (RIN: 2900-AH50) Received May 3, 1996, pursuant to 5 
U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Schedule for Rating Disabilities; 
Fibromyalgia (RIN: 2900-AH05) Received May 6, 1996, pursuant to 
5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Appeals Regulations; Rules of 
Practice: Single Member and Panel Decisions; Reconsiderations; 
Order of Consideration (RIN: 2900 AH16) Received May 6, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Removal of references to ``vicious 
habits'' (RIN: 2900-AH87) Received May 6, 1996, pursuant to 5 
U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--VA Acquisition Regulations: 
Miscellaneous Amendments (RIN: 2900-AI02) Received May 7, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Adjudication Regulations: 
Miscellaneous (RIN: 2900-AH83) Received May 8, 1996, pursuant 
to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Medical; Nonsubstantive Miscellaneous 
Changes (RIN: 2900-AH95) Received May 9, 1996, pursuant to 5 
U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Medical; VA Health Professional 
Scholarship Program, Correction (RIN: 2900-AH99) Received May 
9, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Veterans Education: Increase in Rates 
Payable Under the Montgomery GI Bill--Active Duty, 1995-96 
(RIN: 2900-AH79) Received May 14, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Compensation for Disability Resulting 
from Hospitalization, Treatment, Examination, or Vocational 
Rehabilitation (RIN: 2900-AH44) Received May 22, 1996, pursuant 
to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Schedule for Rating Disabilities; 
Endocrine System Disabilities (RIN: 2900-AH41) Received May 22, 
1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Veterans and Dependents Education: 
Miscellaneous (RIN: 2900-AH60) Received May 22, 1996, pursuant 
to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--National Cemeteries (RIN: 2900-AI06) 
Received May 29, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Delegations of Authority; Tort Claims 
and Debt Collection (RIN: 2900-AI13) Received May 30, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Gender Policy for VA Publications and 
Other Communications (RIN: 2900-AI09) Received May 30, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Loan Guaranty: Miscellaneous (RIN: 
2900-AI01) Received May 31, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Rules of Practice: Elimination of 
unnecessary provisions relating to representation, witnesses, 
and access to Board records (RIN: 2900-AI15) Received June 5, 
1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Veterans Mortgage Life Insurance (RIN: 
2900-AH54) Received June 5, 1996 pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Soldiers' and Sailors' Civil Relief 
(RIN: 2900-AH53) Received June 5, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--United States Government Life 
Insurance (RIN: 2900-AH52) Received June 5, 1996, pursuant to 5 
U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Post-Vietnam Era Veterans' Educational 
Assistance: Miscellaneous (RIN: 2900-AH64) Received June 7, 
1996 Pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Autopsies (RIN: 2900-AI07) Received 
June 10, 1996 pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Investigation Regulations (RIN: 2900-
AI25) Received June 11, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Information Law; Miscellaneous (RIN: 
2900-AI23) Received June 11, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

     A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Educational Assistance Programs and 
Service Members Occupational Conversion and Training Act 
Program (RIN: 2900-AH31) Received June 11, 1996, pursuant to 5 
U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Inventions by Employees of the 
Department of Veterans Affairs (38 CFR Part1) (RIN: 2900-AI03) 
Received June 13, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Veterans Education: Course Measurement 
for Graduate Courses (RIN: 2900-AH39) Received June 11, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--National Service Life Insurance (RIN: 
2900-AH55) Received June 24, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to ensure that 
appropriated funds are not used for operation of golf courses 
on real property controlled by the Department of Veterans 
Affairs.

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to redesignate the 
title of the National Cemetery System and the position of the 
Director of the National Cemetery System.

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Re-establishing Rulemaking Procedures 
(RIN: 2900-AI32) Received June 28, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Part-Time Career Employment Program 
(RIN: 2900-AH75) Received July 25, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to amend title 38, 
United States Code, to provide benefits for certain children of 
Vietnam veterans who are born with spina bifida.

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Schedule for Rating Disabilities; 
Infectious Diseases, Immune Disorders and Nutritional 
Deficiencies (Systemic Conditions) (RIN: 2900-AE95) Received 
July 30, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Appeals Regulations, Rules of 
Practice: Hearings before the Board of Veterans' Appeals at 
Department of Veterans Affairs Field Facilities (RIN: 2900-
AI11) Received August 21, 1996, pursuant to 5 U.S.C. 
801(a)(1)(A).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation to require the 
Secretary of Veterans Affairs and the Secretary of Health and 
Human Services to carry out a model project to provide the 
Department of Veterans Affairs with Medicare reimbursement for 
Medicare health care services provided to certain Medicare-
eligible veterans.

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Schedule for Rating Disabilities; 
Respiratory System (RIN: 2900-AE94) Received September 3, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Secretary of Veterans Affairs, 
transmitting a draft of proposed legislation entitled, 
``Department of Veterans Affairs Employment Reduction 
Assistance Act of 1996''.

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Schedule for Rating Disabilities; 
Mental Disorders (RIN: 2900-AF01) Received October 3, 1996, 
pursuant to 5 U.S.C. 801(a)(1)(A).

    A letter from the Director, Office of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule-- VA Acquisition Regulation: Service 
Contracting(RIN: 2900-AG67) Received October 2, 1996, pursuant 
to 5 U.S.C. 801(a)(1)(A).

    A Communication from the President of the United States, 
transmitting the Administration's 1996 National Drug Control 
Strategy, pursuant to 21 U.S.C. 1504.

                                                                          SUMMARY OF VETERANS' AFFAIRS COMMITTEE ACTION                                                                         
                                                           BILLS AND RESOLUTIONS REFERRED AND HEARINGS / EXECUTIVE SESSIONS CONDUCTED                                                           
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                                                                                                                 Congress                                                                       
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                                           86th    87th    88th    89th    90th    91st     92d     93d    94th    95th    96th    97th    98th    99th    100th   101st   102d    103d    104th
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Bills and resolutions referred..........     628     592     508     791     685     740     693     839     719     709     339     273     229     198     147     194     215     174     128
Hearing sessions........................      55      45      50      71      46      43      37      44      58      72      84      89      71      76      44      72      67      71      39
Meetings and mark-up sessions...........      21      15      21      32      13      27      21      16      30      26      19      18      16      20      16      26      20      23      19
Bills reported..........................      42      52      41      47  \8\ 19      34      26  \9\ 14      23      32      11      16      15      17      14      33      21      25      15
Bills in House..........................       2   \1\ 8   \5\ 5   \6\ 4       4       1       4       1  ......       1       1       1       3       3       1       4       3      11  ......
Pending in Senate committees............       6  \2\ 13       7  \7\ 12       3       9       7       2  \10\ 9      17       3       6       6       8       9      23       7      11      10
Bills on Senate Calendar or in Senate...       1   \3\ 2  ......       1  ......  ......  ......  ......  ......       1       1       1  ......       1       3       1       3       3  ......
Recommitted.............................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......
Bills vetoed............................  ......  ......  ......  ......  ......  ......       2       1  ......  ......       1  ......  ......  ......  ......  ......  ......  ......  ......
Bills passed over veto..................  ......  ......  ......  ......  ......  ......  ......       1  ......  ......       1  ......  ......  ......  ......  ......  ......  ......  ......
Laws enacted............................      33  \4\ 32      29      30      15      24      15      15      15      13       6       8       8       6       4       8      24      15       6
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Including 4 bills enacted as amendment in other legislation; 1 left in House when similar Senate bill returned to Senate; and 1 similar to another bill enacted (Public Law 87-645).        
\2\ Includes 2 bills enacted as amendments to other bills.                                                                                                                                      
\3\ Includes 1 bill enacted as amendment to another bill.                                                                                                                                       
\4\ Some laws include the substance of more than 1 bill reported separately. 39 separately reported bills were enacted, 7 as amendments to other legislation.                                   
\5\ Provisions of 3 of these bills were passed by the House as separate bills, and the provisions of 1 bill were included as an amendment to another bill which became public law.              
\6\ \7\ One bill in a Senate committee had purpose accomplished administratively; 5 other were enacted as sections of another bill; and portions of 1 bill left in the House were enacted as    
  part of another bill.                                                                                                                                                                         
\8\ Includes S.J. Res. 197 making technical correction to law, which was brought to House floor for immediate consideration and passage by unanimous consent.                                   
\9\ The difference in number of bills reported (14) and laws enacted (15) is due to the fact that S. 3705 did not go to the House Committee. However, the subject matter was included in H.R.   
  12628.                                                                                                                                                                                        
\10\ Includes H.R. 9576 subject matter of which was contained in S. 969, passed in lieu.                                                                                                        

                    HEARINGS AND EXECUTIVE SESSIONS

    (All hearings and executive sessions of the Committee are 
held in the Committee hearing room, 334 Cannon House Office 
Building, unless otherwise designated.)

    Jan. 11, 1995. OPEN. 10:00 a.m. Full Committee. Meeting. 
Organizational.

    Feb. 9, 1995. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative 
agenda of the Paralyzed Veterans of America; Jewish War 
Veterans; The Retired Officers Association; Association of the 
U.S. Army; and Non Commissioned Officers Association.

    Feb. 14, 1995. OPEN. 9:00 a.m. Full Committee. Meeting. 
Oversight Plan.

    Feb. 24, 1995. OPEN. 9:00 a.m. Full Committee. Hearing. FY 
96 Department of Veterans Affairs budget. (Serial No. 104-1).

    Mar. 1, 1995. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative 
agenda of the Disabled American Veterans.

    Mar. 7, 1995. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative 
agenda of the Veterans of Foreign Wars.

    Mar. 9, 1995. OPEN. 9:00 a.m. Subcommittee on Hospitals and 
Health Care. Hearing. Progress of Research on Undiagnosed 
Illnesses of Persian Gulf War Veterans. (Serial No. 104-2).

    Mar. 16, 1995. OPEN. 9:30 a.m. Full Committee. Meeting. 
Reviewing the President's Budget.

    Mar. 30, 1995. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative 
agenda of the Veterans of World War I; Blinded Veterans 
Association; American Ex-Prisoners of War; AMVETS; Vietnam 
Veterans of America; and the Military Order of the Purple 
Heart.

    Apr. 6, 1995. OPEN. 9:00 a.m. Subcommittee on Hospitals and 
Health Care. Hearing. Veterans Health Administration 
Reorganization. (Serial No. 104-3).

    May 3, 1995. OPEN. 9:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. Room 340 Cannon HOB. 
Veterans Vocational Rehabilitation and Counseling Service 
(VR&C) and the Veterans Employment and Training Services 
(VETS). (Serial No. 104-4).

    May 11, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals and 
Health Care. Markup. H.R. 1384, 1536, and 1565.

    May 12, 1995. OPEN. 9:30 a.m. Subcommittee on Compensation, 
Pension, Insurance and Memorial Affairs. Hearing. Veterans 
Benefits Administration's processing of compensation claims, 
with an emphasis on Persian Gulf War claims; oversight of P.L. 
103-446, Veterans' Benefits Improvements Act of 1994. (Serial 
No. 104-5).

    June 15, 1995. OPEN. 9:30 a.m. Full Committee. Markup. H.R. 
1384, 1536, and 1565.

    June 22, 1995. OPEN. 9:00 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Hearing. 
Veterans Benefits Administration's Computer Modernization. 
(Serial No. 104-6)

    June 29, 1995. OPEN. 9:30 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. Veterans Employment 
and Training Service (VETS) reorganization; implementation of 
the Uniformed Services Employment and Reemployment Act (USERRA) 
and One-Stop Employment Centers. (Serial No. 104-7)

    July 19, 1995. OPEN. 10:00 a.m. Full Committee. Hearing. 
Eligibility Reform Initiatives. (Serial No. 104-8)

    Aug. 2, 1995. OPEN. 9:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. H.R. 1941 (USSERA), 
draft bill on Housing Loan Programs and Veterans Small 
Business, and a discussion draft on LVER/DVOP issues. (Serial 
No. 104-9)

    Sep. 7, 1995. OPEN. 9:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Markup. Draft bill including 
provisions of USERRA (Uniformed Services Employment and 
Reemployment Rights Act), VA Home Loan programs and the 
Department of Labor's VETS program.

    Sep. 7, 1995. OPEN. 10:30 a.m. Subcommittee on Hospitals 
and Health Care. Markup. H.R. 2219.

    Sep. 19, 1995. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. The 1995 legislative agenda of The American 
Legion.

    Sep. 20, 1995. OPEN. 10:00 a.m. Full Committee. Markup. 
H.R. 2289 and H.R. 2353.

    Sep. 27, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Department of Veterans Affairs 
Medical Center, Brooklyn. (Serial No. 104-10)

    Sep. 28, 1995. OPEN. 9:30 a.m. Full Committee. Markup. 
Budget Reconciliation instructions; H.R. 2394.

    Oct. 12, 1995. OPEN. 10:00 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Hearing. 
H.R. 109, H.R. 368, H.R. 1482, H.R. 1483, H.R. 1609, H.R. 1809, 
H.R. 2155, H.R. 2156, and H.R. 2157. (Serial No. 104-11)

    Oct. 18, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. VA/DOD Sharing. (Serial No. 104-12)

    Oct. 25, 1995. OPEN. 9:30 a.m. Subcommittee on Hospital and 
Health Care. Hearing. Issues relating to the Harry S. Truman 
Veterans Affairs Medical Center in Columbia, Missouri. (Serial 
No. 104-13)

    Dec. 21, 1995. OPEN. 10:00 a.m. Full Committee. Markup. 
H.R. 2814.

    Feb. 28, 1996. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The 
1996 legislative agenda of the Disabled American Veterans.

    Mar. 5, 1996. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The 
1996 legislative agenda of the Veterans of Foreign Wars.

    Mar. 7, 1996. OPEN. 9:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. Montgomery GI Bill. 
(Serial No. 104-14)

    Mar. 14, 1996. OPEN. 3:00 p.m. Full Committee. Meeting. To 
approve Committee's views and estimates for the FY 1997 budget 
for submission to the Budget Committee.

    Mar. 14, 1996. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Room 345 Cannon HOB. The 1996 legislative 
agenda of the Paralyzed Veterans of America; Jewish War 
Veterans; The Retired Officers Association; Association of the 
U.S. Army; Non Commissioned Officers Association; and Blinded 
Veterans Association.

    Mar. 21, 1996. OPEN. 11:30 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Department of Veterans Affairs 
Medical Care Budget and Construction Priorities for FY 1997. 
(Serial No. 104-15)

    Mar. 27, 1996. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The 
1996 legislative agenda of the Veterans of World War I; AMVETS; 
American Ex-Prisoners of War; Vietnam Veterans of America; and 
Military Order of the Purple Heart.

    Mar. 29, 1996. OPEN. 10:00 a.m. Full Committee. Hearing. FY 
1997 Budget for the Department of Veterans Affairs. (Serial No. 
104-16)

    Apr. 16, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Results of the recent Study by the 
Institute of Medicine on Health Effects in Children of 
Individuals exposed to Agent Orange in Vietnam. (Serial No. 
104-17)

    Apr. 17, 1996. OPEN. 9:30 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Markup. 
H.R. 2843, H.R. 2850, H.R. 3248 and H.R. 1483.

    Apr. 18, 1996. OPEN. 9:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. H.R. 2851, H.R. 
2868, H.R. 3036, Homeless Veterans Reintegration Project; and 
Transition Assistance Program (TAP). (Serial No. 104-18)

    Apr. 22, 1996. OPEN. 9:00 a.m. VFW Hall, LaSalle, Illinois. 
Hearing. Subcommittee on Hospitals and Health Care. Outpatient 
Services in LaSalle County, Illinois. (Serial No. 104-19)

    Apr. 24, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Effectiveness of Community Care 
Clinics. (Serial No. 104-20)

    Apr. 30, 1996. OPEN. 9:30 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Hearing. 
Access to Treatment and Compensation for Veterans exposed to 
Ionizing Radiation. (Serial No. 104-21)

    May 8, 1996. OPEN. 10:00 a.m. Subcommittee on Education, 
Training, Employment and Housing and Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Joint 
Hearing. Davenport v. Brown court decision; Veterans' Cost-of-
Living Adjustments (COLAs); and the U.S. Court of Veterans 
Appeals Pro Bono Program. (Serial No. 104-22)

    May 8, 1996. OPEN. 1:30 p.m. Subcommittee on Hospitals and 
Health Care. Markup. H.R. 3118 and H.R. 3376.

    May 8, 1996. OPEN. 2:00 p.m. Full Committee. Markup. H.R. 
1483, H.R. 3118, H.R. 3373 and H.R. 3376.

    May 22, 1996. OPEN. 10:30 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Markup. 
H.R. 2513, H.R. 3458, H.R. 3493 and H.R. 3495.

    May 30, 1996. OPEN. 9:30 a.m. Subcommittee on Education, 
Training, Employment and Housing. Markup. H.R. 2851, H.R. 3459.

    May 30, 1996. OPEN. 10:00 a.m. Subcommittee on Education, 
Training, Employment and Housing. Hearing. Uniformed Services 
Employment and Reemployment Rights Act; Veterans' Preference; 
and the VA Education Services Draft Discussion Bill. (Serial 
No. 104-23)

    June 11, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. VA Pharmacy Program with Emphasis on 
Over-the-Counter (OTC) Drugs, Medical Supplies and Dietary 
Supplements. (Serial No. 104-24)

    June 12, 1996. OPEN. 10:00 a.m. Subcommittee on Education, 
Training, Employment and Housing and Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Joint 
Hearing. Customer Service Standards at the Department of 
Veterans Affairs and the Veterans' Employment and Training 
Service. (Serial No. 104-25)

    June 18, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Markup. H.R. 3643.

    June 19, 1996. OPEN. 10:00 a.m. Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs. Hearing. 
Department of Veterans Affairs Computer Modernization Effort as 
it relates to an overall Strategic Plan within the Department. 
(Serial No. 104-26)

    June 20, 1996. OPEN. 9:30 a.m. Full Committee. Markup. H.R. 
3458, H.R. 3643, amended, H.R. 3673, H.R. 3674.

    June 26, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Future of the Veterans Health 
Administration. (Serial No. 104-27)

    June 27, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals 
and Health Care. Hearing. Future of the Veterans Health 
Administration. (Serial No. 104-27)

    July 31, 1996. OPEN. 10:00 a.m. Subcommittee on Education, 
Training, Employment and Housing, Veterans' Affairs Committee 
and Subcommittee on Government Programs, Small Business 
Committee. Joint Hearing. Room 2359 Rayburn HOB. Veterans' 
Small Business Issues.

    Sep. 17, 1996. OPEN. 9:30 a.m. House and Senate Veterans 
Affairs Committees. The annual legislative presentation of The 
American Legion.

    Sep. 18, 1996. OPEN. 9:00 a.m. Full Committee. Markup. H.R. 
4068.

                      LEGISLATION ENACTED INTO LAW

      VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 1995

                           Public Law 104-57

                        (H.R. 2394, AS AMENDED)

    Title: To increase, effective December 1, 1995, the rates 
of compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnity 
compensation for the survivors of certain disabled veterans.
    Summary: H.R. 2394 would:
    1. LIncrease, effective December 1, 1995, the rates of 
compensation for veterans with service-connected disabilities 
and the rates of dependency and indemnity compensation for the 
survivors of certain disabled veterans. The rate of increase 
would follow Social Security Administration figures.
    2. LRound down to the next lower dollar amount all 
compensation and DIC benefits, when the amount is not a whole 
dollar amount.
    Effective date: December 1, 1995
    Cost: The Congressional Budget Office estimates the savings 
of H.R. 2394 to be $15 million in fiscal year 1996, $19 million 
in fiscal year 1997 and $20 million in fiscal year 1998.
    Legislative history: CONGRESSIONAL RECORD (1995)
    Sep. 28, 1995: H.R. 2394 ordered reported by Committee on 
Veterans' Affairs.
    Oct. 6, 1995: H.R. 2394 reported by Committee on Veterans' 
Affairs. H. Rept. 104-273.
    Oct. 10, 1995: Passed the House under suspension by voice 
vote.
    Oct. 11, 1995: Referred to Senate Committee on Veterans' 
Affairs.
    Nov. 9, 1995: Passed the Senate with an amendment in the 
nature of a substitute.
    Nov. 10, 1995: House agreed to Senate amendment.
    Nov. 22, 1995: Signed by the President.
                                ------                                


 TO EXTEND THE AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS TO CARRY 
 OUT CERTAIN PROGRAMS AND ACTIVITIES, TO REQUIRE CERTAIN REPORTS FROM 
       THE SECRETARY OF VETERANS AFFAIRS, AND FOR OTHER PURPOSES

                           Public Law 104-110

                        (H.R. 2353, AS AMENDED)

    Title: An Act to amend title 38, United States Code, to 
extend the authority of the Secretary of Veterans Affairs to 
carry out certain programs and activities, to require certain 
reports from the Secretary of Veterans Affairs, and for other 
purposes.
    Summary: H.R. 2353, as amended, would:

Title I--Extensions of Authority

     1. LAuthorize VA to provide health care until December 31, 
1996, on a priority basis for certain veterans exposed to toxic 
substances; and those with service in the Persian Gulf;
     2. LProvide contract authority for alcohol and drug abuse 
care until December 31, 1997;
     3. LAuthorize the non-institutional Nursing Home Care 
Alternatives Program until December 31, 1997;
     4. LPermanently authorize negotiated interest rates 
between veterans and lenders on home loans;
     5. LPermanently authorize energy efficient mortgages 
covering the costs of energy-efficiency improvements to a 
veteran's home or a dwelling owned by a veteran;
     6. LAuthorize enhanced loan asset sales until December 31, 
1996, to improve the secondary market value of VA-backed 
mortgages, eliminate the need for future VA servicing, and 
convert long-term receivables into cash assets;
     7. LPermanently authorize lenders of automatically 
guaranteed loans to directly review appraisal reports and 
determine the value of property bought with a VA-guaranteed 
loan;
     8. LAuthorize housing assistance for homeless veterans 
with a program in which VA-owned properties are made available 
to homeless veterans and their families by allowing agreements 
between the Secretary and community based organizations or 
states through December 31, 1997;
     9. LPermit VAMC directors to use nurse anesthetist 
contract agency data to adjust to locality-based nurse pay 
rates where a VA locality survey provides insufficient data, 
until January 1, 1998;
    10. LAuthorize the Health Scholarships Program until 
December 31, 1997;
    11. LAuthorize the Enhanced-Use Leases of Real Property 
Program until December 31, 1997;
    12. LAuthorize the Community-Based Residential Care for 
Homeless Chronically Mentally Ill-Veterans Program until 
December 31, 1997;
    13. LAuthorize the Demonstration Program of Compensated 
Work Therapy and Therapeutic Transitional Housing until 
December 31, 1997;
    14. LAuthorize the Homeless Veterans Pilot Program until 
September 30, 1997; and
    15. LAuthorize $10 million for the ``Homeless Veterans' 
Reintegration Program (HVRP)'' for fiscal year 1996.

Title II--Other Provisions

    1. LRequire the Secretary of Veterans Affairs to submit 
reports to Congress on the following:
          a) Lthe above-named VA housing programs every 2 
        years, instead of annually;
          b) Lthe advantages and disadvantages of consolidating 
        into one program the Alcohol and Drug Abuse Program, 
        the Community-Based Residential Care for Homeless 
        Chronically Mentally Ill-Veterans Program, and the 
        Demonstration Program of Compensated Work Therapy and 
        Therapeutic Transitional Housing;
          c) Lthe efficacy of the Health Professional 
        Scholarship Program with respect to recruitment and 
        retention of health care personnel for the VA, along 
        with a cost comparison of the program and alternative 
        methods; and
          d) Lthe operation of the Enhanced-Use Leases program.
    2. LAuthorize the VA to enter into a 35-year contract for 
utilities at the Audie L. Murphy Memorial Hospital in San 
Antonio, Texas.
    Effective date: Date of Enactment
    Cost: The Congressional Budget Office estimates H.R. 2353, 
as amended, would affect direct spending or receipts and thus 
would have pay-as-you-go savings of $4.0 million in fiscal year 
1996 and $1.0 million in fiscal year 1997. In addition, CBO 
estimates the bill would have discretionary program costs of 
$146.6 million in authorization levels and $118.0 million in 
outlays for fiscal year 1996, $101.2 million in authorization 
levels and $115.0 million in outlays for fiscal year 1997, 
$18.6 million in authorization levels and $33.4 million in 
outlays for fiscal year 1998. CBO estimates zero dollars in 
authorizations and outlays for fiscal years 1999 and 2000. H.R. 
2353, as amended, would not affect the budgets of state or 
local governments.
    Legislative history: CONGRESSIONAL RECORD (1995-1996)
    Sep. 20, 1995: H.R. 2353 ordered reported, as amended, by 
Committee on Veterans' Affairs.
    Oct. 12, 1995: H.R. 2353 reported by Committee on Veterans' 
Affairs. H.Rept. 104-275.
    Oct. 17, 1995: Passed the House amended under suspension by 
vote of 403-0.
    Oct. 18, 1995: Referred to Senate Committee on Veterans' 
Affairs.
    Jan. 5, 1996: Passed the Senate with amendment in the 
nature of a substitute (S.991).
    Jan. 25, 1996: Passed the House with amendments to the 
Senate amendments by unanimous consent (consists of portions of 
H.R. 1536, H.R. 1565, H.R. 2219, H.R. 2289 and H.R. 2353 as 
originally passed by the House).
    Jan. 30, 1996: Senate concurred in the amendments of the 
House to the amendments of the Senate to H.R. 2353.
    Feb. 13, 1996: Signed by the President.
                                ------                                


        THE VETERANS' HEALTH CARE ELIGIBILITY REFORM ACT OF 1996

                           Public Law 104-262

                        (H.R. 3118, AS AMENDED)

    Title: An Act to amend title 38, United States Code, to 
reform eligibility for health care provided by the Department 
of Veterans Affairs, and for other purposes.
    Summary: H.R. 3118, as amended, would:

Title I--Eligibility Reform

    1. LWithin appropriations, direct the VA to provide all 
needed hospital and medical care services and establish and 
manage health care programs to promote the cost-effective 
delivery of health services to veterans with compensable 
service-connected disabilities, former prisoners of war, 
veterans exposed to toxic substances and environmental hazards, 
veterans meeting the ``means test'' as provided under existing 
law, and veterans of World War I.
    2. LRequire the VA to manage the provision of health care 
services through an annual patient enrollment system that is 
reflective of the priority system, which provides the highest 
priority for enrollment to those with service-connected 
conditions and also requires that effective October 1, 1998, 
veterans enroll in a VA-managed care plan to receive health 
care services. Veterans in need of care for a service-connected 
condition or 50 percent or more service-connected disabled are 
exempt from the enrollment requirement.
    3. LRevise and extend special health care eligibility for 
veterans exposed to ionizing radiation indefinitely; for 
herbicide exposed veterans through December 31, 2002; and for 
Persian Gulf veterans through December 31, 1998.
    4. LEliminate restrictions on VA providing prosthetics, but 
require VA to establish guidelines for providing hearing aids 
and eyeglasses.
    5. LDirect the VA to maintain its capacity for specialized 
rehabilitative and treatment programs (such as SCI care) at the 
current level and within distinct programs and facilities 
dedicated to the specialized needs of those veterans.
    6. LRequire VA to consult with the Advisory Committee on 
Prosthetics and Special Disabilities Programs and the Committee 
on Care of Severely Chronically Mentally Ill Veterans in the 
assessment of these activities.
    7. LRequire the VA to report to the House and Senate 
Veterans' Affairs Committees by April 1 of the years 1997, 
1998, and 1999 on VA's compliance with the specialized services 
provisions of the bill.
    8. LLimit any excess costs associated with the eligibility 
reform provisions of this bill by establishing an authorization 
for appropriations for VA medical care capped at the following 
amounts: $17.25 billion for FY 1997 and $17.9 billion for FY 
1998.
    9. LRequire that no later than March 1, 1998, the VA report 
to the House and Senate Veterans' Affairs Committees on the 
impact of the implementation of eligibility reform.

Title II--Construction Authorization

    1. LAuthorize the following major projects for a total 
amount of $358.15 million:
          a) LAmbulatory care addition, Tripler Army Hospital, 
        Honolulu, HI, $43 million;
          b) Ambulatory care addition, Brockton, MA, $13.5 
        million;
          c) Ambulatory care addition, Shreveport, LA, $25 
        million;
          d) Ambulatory care addition, Lyons, NJ, $21.1 
        million;
          e) Ambulatory care addition, Tomah, WI, $12.7 
        million;
          f) Ambulatory care addition, Asheville, NC, $26.3 
        million;
          g) Ambulatory care addition, Temple, TX, $9.8 
        million;
          h) Ambulatory care addition, Tucson, AZ, $35.5 
        million;
          i) LAmbulatory care addition, Leavenworth, KS, $27.75 
        million;
          j) Environmental improvements, Lebanon, PA, $9.5 
        million;
          k) Environmental improvements, Marion, IL, $11.5 
        million;
          l) Environmental improvements, Omaha, NE, $7.7 
        million;
          m) LEnvironmental improvements, Pittsburgh, PA, $17.4 
        million;
          n) Environmental improvements, Waco, TX, $26 million;
          o) Environmental improvements, Marion, IN, $17.3 
        million;
          p) LEnvironmental improvements, Perry Point, MD, 
        $15.1 million;
          q) LEnvironmental enhancement, Salisbury, NC, $18.2 
        million; and
          r) LSeismic corrections, Palo Alto, CA, $20.8 million
    2. LAuthorize the following major medical facility leases 
for a total of $12.236 million:
          a) Allentown, PA, $2.159 million;
          b. Beaumont, TX, $1.94 million;
          c. Boston, MA, $2.358 million;
          d. Cleveland, OH, $1.3 million;
          e. San Antonio, TX, $2.256 million; and
          f. Toledo, OH, $2.223 million.
    3. LRequire the VA to develop a five-year strategic plan 
for its health care system which specifically addresses the 
integration of planning efforts at the grassroots level, 
coordinated within the prescribed geographic network and then 
formulated into a national plan.
    4. LRequire the VA to submit to Congress an annual report 
on the top 20 major medical construction projects of the 
Department.
    5. LExpand the required documentation and justification of 
each major project and major facility lease proposed in the 
President's budget.
    6. LRedefine a major medical construction project as 
costing at least $4 million and repeal, effective FY 1998, a 
provision of law exempting certain previously funded 
construction projects from the law's authorization requirement.
    7. LProvide that amounts in excess of $500,000 may not be 
obligated from the VA's Advance Planning Fund until VA reports 
such proposed obligation to the House and Senate Veterans' 
Affairs Committees.

Title III--Health Care Administration

            Subtitle A--Health Care Sharing and Administration
    1. LBroaden and expand VA's ability to share health care 
resources while ensuring that services to veterans are not 
adversely affected.
    2. LMake permanent VA's ability to enter into sharing 
agreements with the Department of Defense under provisions of 
DOD's CHAMPUS program.
    3. LExempt those personnel involved in providing care under 
this provision and other sharing authorities from personnel 
ceilings.
    4. LReduce the effective date for the implementation of an 
administrative reorganization from 90 to 45 days during which 
Congress has been in continuous session.
    5. LRequire the VA to report annually to Congress on those 
activities which it proposes to study for possible contracting 
out and those which have been contracted out.
            Subtitle B--Care of Women Veterans
    1. LStipulate that mammography standards for the VA be as 
stringent as those prescribed in current law for other health 
care providers, both public and private.
    2. LRequire the VA to conduct annual surveys through 1999 
of all VAMCs to identify women veterans' patient privacy 
deficiencies.
            Subtitle C--Readjustment Counseling and Mental Health Care
    1. LSet a deadline of January 1, 2000, for non-theater 
Vietnam-era veterans to seek readjustment counseling with the 
VA.
    2. LExpand eligibility for Vet Center counseling services 
for combat veterans of conflicts prior to the Vietnam era.
    3. LRequire the VA to submit to Congress a report on the 
feasibility and desirability of collocating Vet Centers with 
other VA health care facilities.
    4. LEstablish an 18-member Advisory Committee on the 
Readjustment of Veterans.
    5. LAuthorize appropriations for the establishment of up to 
five centers of excellence in mental health research, 
education, and clinical care activities (MIRECCs).
    6. LAuthorize appropriations for MIRECCs of $3.125 million 
for FY 1998 and $6.25 million for FY 1999-2001.
    7. LRequire the VA to establish a Committee on the Care of 
Severely Chronically Mentally Ill Veterans.
            Subtitle D--Other Provisions
     1. LRequire the VA to conduct an in-house research and 
evaluation study on the most effective way of providing hospice 
care to veterans.
     2. LAuthorize the VA to make per diem payments to state 
veterans' homes in conjunction with adult day care provided at 
such homes and authorize construction grants for such purposes.
     3. LRenew the VA's authority to establish additional 
research corporations through the year 2000.
     4. LRequire that the Office of the Under Secretary be 
staffed to include designated clinicians to provide expertise 
and direct policy guidance on VA's specialized service programs 
and that the latter be responsible for management of the 
readjustment counseling program.
     5. LAuthorize the VA to make disbursement agreements for 
residents who train at outpatient clinics, nursing homes or 
other VA medical facilities.
     6. LSuspend special pay agreements for VA physicians and 
dentists who enter residency training programs.
     7. LLift current law restrictions on title 38 health care 
professionals working in their professional capacity in outside 
employment while employed full-time by the VA.
     8. LAuthorize the VA to modify conditions under which land 
previously transferred to Milwaukee County, Wisconsin for civic 
and recreational purposes may be re-transferred.
     9. LAuthorize the VA to modify conditions under which land 
previously transferred to the City of Cheyenne for park and 
recreational use may be re-transferred. The re-transfer would 
permit the First Cheyenne Federal Credit Union to construct a 
building that would benefit VA employees and beneficiaries.
    10. LRename the VA medical center in Johnson City, 
Tennessee the ``James H. Quillen Department of Veterans Affairs 
Medical Center.''
    11. LRequire the VA to report to Congress on the health 
care needs of east Florida veterans before it may obligate 
funds to convert the former Orlando Naval Training Center 
Hospital to a nursing home care unit.
    12. LExtend to December 31, 1998 VA's authority to offer 
diagnostic exams to Persian Gulf War spouses and children.
    Effective date: Date of enactment, except the following 
sections in Title III: sections 301 through 305, relating to 
VA/DOD sharing, shall take effect October 1, 1996; section 350 
shall take effect at noon on January 3, 1997; and section 352, 
regarding the evaluation of the health status of spouses and 
children of Persian Gulf veterans, shall take effect October 1, 
1996.
    Cost: The Congressional Budget Office estimates H.R. 3118, 
as amended, does not affect direct spending and thus would not 
be subject to pay-as-you-go procedures under the Balanced 
Budget and Emergency Deficit Control Act of 1985. As regards 
discretionary authorization levels, which are subject to the 
annual appropriations process, the bill caps authorization 
levels for eligibility reform provisions at $17.25 billion for 
fiscal year 1997 and $17.9 billion for fiscal year 1998. In 
addition, the bill authorizes, subject to appropriations, 
$358.15 million for major construction projects for fiscal 
years 1997 and 1998. The bill authorizes $12.236 million for 
major medical facility leases without fiscal year limitation. 
No significant costs result from the exemption of certain full-
time health care professionals of the Department of Veterans 
Affairs from restrictions on remunerated outside activities, 
the extension of authority to provide priority treatment to 
Persian Gulf veterans and those exposed to Agent Orange, or 
other provisions of the bill. H.R. 3118, as amended, would not 
affect the budgets of state, local, or tribal governments and 
contains no intergovernmental or private-sector mandates.
    Legislative history: CONGRESSIONAL RECORD (1996)
    May 8, 1996: H.R. 3118 ordered reported by Committee on 
Veterans' Affairs.
    July 18, 1996: H.R. 3118 reported by Committee on Veterans' 
Affairs. H.Rept. 104-690.
    July 30, 1996: Passed the House amended under suspension by 
vote of 416-0.
    July 31, 1996: Referred to Senate Committee on Veterans' 
Affairs.
    Sept. 28, 1996: Passed the Senate amended by unanimous 
consent (consists of provisions from H.R. 1384, H.R. 3376, H.R. 
3643 and S. 1359).
    Sept. 28, 1996: House agreed to Senate amendments by 
unanimous consent.
    Oct. 9, 1996: Signed by the President.
                                ------                                


      VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 1996

                           Public Law 104-263

                        (H.R. 3458, AS AMENDED)

    Title: An Act to increase, effective as of December 1, 
1996, the rates of compensation for veterans with service-
connected disabilities and the rates of dependency and 
indemnity compensation for the survivors of certain disabled 
veterans.
    Mr. EVERETT (for himself, Mr. STUMP, Mr. MONTGOMERY and Mr. 
EVANS) introduced H.R. 3458 on May 15, 1996; which was referred 
to the Committee on Veterans' Affairs.
    ADDITIONAL COSPONSORS: Mr. WELLER, Mr. DEAL of Georgia, Mr. 
EDWARDS, Mr. WATTS of Oklahoma, Mr. TEJEDA, Mr. SMITH of New 
Jersey, Mr. BILIRAKIS, Mr. CLEMENT, Mr. FOX, Mr. MASCARA, Mr. 
FLANAGAN, Mr. STEARNS, and Mr. HUTCHINSON.
    Summary: H.R. 3458, as amended, would:
    Increase, effective December 1, 1996, the rates of 
compensation for veterans with service-connected disabilities, 
the rates of dependency and indemnity compensation for the 
survivors of certain disabled veterans, and other related 
benefits. The rate of increase would follow Social Security 
Administration figures.
    Effective date: December 1, 1996
    Cost: The table below summarizes the bill's pay-as-you-go 
impact as estimated by the Congressional Budget Office:

                                          PAY-AS-YOU-GO CONSIDERATIONS                                          
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                                      1997                         1998         
----------------------------------------------------------------------------------------------------------------
Change in Outlays.....................................                    0                            0        
Change in Receipts....................................                       Not Applicable                     

    The bill would increase the rates of disability 
compensation for veterans and dependency and indemnity 
compensation for survivors of veterans by a cost-of-living 
allowance (COLA). Because the COLA is assumed in the budget 
resolution baseline, as specified by section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, this 
bill would have no cost relative to that baseline.
    Legislative history: CONGRESSIONAL RECORD (1996)
    June 20, 1996: H.R. 3458 ordered reported by Committee on 
Veterans' Affairs.
    June 27, 1996: H.R. 3458 reported by Committee on Veterans' 
Affairs. H. Rept. 104-647.
    July 16, 1996: Passed the House under suspension by voice 
vote.
    July 17, 1996: Referred to Senate Committee on Veterans' 
Affairs.
    Sept. 26, 1996: Passed the Senate amended with language of 
S. 1791 by unanimous consent.
    Sept. 28, 1996: House agreed to Senate amendments by 
unanimous consent.
    Oct. 9, 1996: Signed by the President.
                                ------                                


            THE VETERANS' BENEFITS IMPROVEMENTS ACT OF 1996

                           Public Law 104-275

                               (S. 1711)

    Title: An Act to amend title 38, United States Code, to 
improve the benefits programs administered by the Secretary of 
Veterans Affairs, to provide for a study of the Federal 
programs for veterans, and for other purposes.
    Summary: S. 1711 would:

Title I

    1. LRe-establish the requirement that a veteran's 
employment handicap must be as a result of a service-connected 
disability in order to receive VA vocational rehabilitation 
benefits.
    2. LMake permanent a pilot program authorizing VA education 
benefits for participation in alternative teacher certification 
programs.
    3. LRemove the requirement that a degree-granting 
institution of higher learning be in operation for two years to 
qualify for attendance under the GI Bill.
    4. LEliminate the requirement that a veteran participate in 
a resident course in order to qualify for benefits for courses 
taken over open circuit TV.
    5. LRaise the benefit reimbursement rate for cooperative 
courses taken under the GI Bill from 80 percent to 100 percent 
of the benefit rate.
    6. LAuthorize transfer of active-duty VEAP participants to 
the Montgomery GI Bill.
    7. LAuthorize those active-duty members of the Army and Air 
Force National Guard who enlisted between June 30, 1985 and 
November 29, 1989, to participate in the Montgomery GI Bill.

Title II

    1. LExtend for one year, the VA's enhanced authority to 
sell Real Estate Mortgage Investment Conduits on the secondary 
mortgage market.
    2. LAuthorize VA to refinance direct loans made under the 
Native American Housing Loan pilot program.
    3. LClarify VA's authority to provide burial for dependents 
of veterans up to the age of 23 if enrolled in school full 
time.
    4. LAuthorize VA to reimburse state veterans homes for 
transportation and up to $300 in expenses incurred in providing 
burial for veterans who die while being cared for in a state 
home.
    5. LAuthorize VA to partially reimburse families for outer 
burial receptacles used in lieu of VA-provided grave liners.

Title III

    1. LRequire Regional Administrators of the Veterans 
Employment and Training Service appointed after enactment to be 
veterans.
    2. LAuthorize state-based Veterans Employment and Training 
Service clerical support staff to be assigned broadened 
professional duties.
    3. LAuthorize a pilot program to evaluate the 
responsibilities of Local Veterans Employment Representatives 
under diverse employment service operations including ``one-
stop shop'' delivery sites.
    4. LMake technical amendments to the Uniformed Services 
Employment and Reemployment Rights Act (USERRA) of 1994 to 
clarify the rights and responsibilities of veterans and their 
employers.

Title IV

    1. LMerge the Retired Reserve Servicemembers' Group Life 
Insurance and Veterans' Group Life Insurance (VGLI) programs 
and extend VGLI to members of the Ready Reserve.
    2. LAllow conversion of Veterans' Group Life Insurance 
policies to commercial policies at any time.
    3. LProvide information regarding coverage under 
Servicemember's Group Life Insurance.
    4. LRename the Servicemen's Group Life Insurance the 
Servicemember's Group Life Insurance.

Title V

     1. LClarify the responsibilities of the VA's Centers for 
Women and Minority Veterans.
     2. LLimit the clothing allowance for veterans incarcerated 
for over 60 days if they receive clothing at no cost from the 
penal institution.
     3. LExtend the final reporting date of the Veterans Claims 
Adjudication Commission to December 31, 1996 and provides an 
additional $150,000 in funding.
     4. LAuthorize the Veterans Benefits Administration to 
conduct a pilot program using contract physicians to perform 
disability examinations.
     5. LExtend the date of the Vietnam Era to February 28, 
1961, and extend eligibility for certain health benefits to 
those serving on or after January 9, 1962.
     6. LRequire VA to pay a veteran's surviving spouse an 
entire month's compensation or pension payment for the month in 
which a veteran dies.
     7. LIncrease the period for which accrued benefits are 
payable from one year to two years.
     8. LRevise the rules regarding the appointment of 
veterans' claims representatives to presume appointment of the 
entire organization in pursuit of a veteran's claim.
     9. LRevise rules regarding the delivery of decisions by 
the Board of Veterans Appeals to revise the requirement to use 
the U.S. Postal Service.
    10. Prohibit, until January 1, 1998, the expenditure of 
appropriated funds to move the Education Service functions or 
personnel from Washington, DC including the Service Director 
and the Directors immediate staff.

Title VI

    1. LExtend the authority of the Veterans Employment and 
Training Service to conduct the Homeless Veterans Reintegration 
Project through fiscal year 1998 and authorizing up to $10 
million per year.
    2. LAuthorize the American Battle Monuments Commission to 
accept and expend private funds to maintain overseas war 
memorials for which they have accepted responsibility. It would 
also requires ABMC to have an acceptable set of financial 
controls in place before expending such funds.

Title VII

    Establish a commission to review the effectiveness of 
programs to assist servicemembers transitioning to civilian 
life and other veterans programs.
    Effective date: Date of enactment, except: Title III, the 
technical amendments relating to USERRA, shall take effect 
retroactively as of October 13, 1994; section 505, the 
expansion of the period of Vietnam era for certain veterans 
shall take effect January 1, 1997; and section 506, payment of 
benefit to surviving spouse for month in which veteran dies, 
shall take effect December 31, 1996.
    Cost: The table below summarizes the bill's pay-as-you-go 
impact as estimated by the Congressional Budget Office:

     DIRECT SPENDING IN THE CONFERENCE AGREEMENT ON S. 1711, THE VETERANS' BENEFITS IMPROVEMENTS ACT OF 1996    
                                [Outlays by fiscal year, in millions of dollars]                                
----------------------------------------------------------------------------------------------------------------
                 Section                               Description of Provisions                1997      1998  
----------------------------------------------------------------------------------------------------------------
101                                        Vocational rehabilitation benefits...............       -20       -39
506                                        Compensation benefit for surviving spouse........        13        19
504                                        Use of contract physicians for disability                 7         9
                                            examinations.                                                       
106                                        Enrollment of VEAP participants in Montgomery Gl          5         2
                                            Bill.                                                               
107                                        Eligibility of certain reserve personnel for             -4         4
                                            Montgomery GI Bill.                                                 
507                                        Accrued benefits.................................         3         3
201                                        Extension of authority to sell certain loans.....        -4        -1
102                                        Alternative teacher certification programs.......         1         1
502                                        Limitation on clothing allowance for incarcerated        -1        -1
                                            veterans.                                                           
103,104,105                                Education benefits...............................         *         *
211, 212, 213                              Burial benefits..................................         *         *
Title IV                                   Veterans' insurance programs.....................         0         0
505                                        Expand Vietnam era...............................         *         *
503                                        Veterans' Claims Adjudication Commission.........         *         0
508                                        Representation before Board of Veterans Appeals..         0         0
509                                        Provision of copies of Board of Veterans Appeals          0         0
                                            decisions.                                                          
602                                        Repair and maintenance of war memorials..........         *         *
                                          ----------------------------------------------------------------------
                                                   Total....................................         0        -3
----------------------------------------------------------------------------------------------------------------
* Less than $500,000.                                                                                           

    Legislative history: CONGRESSIONAL RECORD (1995-1996)
    Sept. 28, 1996: Passed the Senate under unanimous consent 
(consists of provisions from S. 281, S. 749, S. 994, S. 995, S. 
996, S. 1342, S. 1751, H.R. 2289, H.R. 3373, H.R. 3673 and H.R. 
3674.)
    Sept. 28, 1996: Passed the House under unanimous consent by 
voice vote.
    Oct. 9, 1996: Signed by the President.
                                ------                                


TO RENAME THE VA MEDICAL CENTER IN JACKSON, MISSISSIPPI, AS THE ``G.V. 
   (SONNY) MONTGOMERY DEPARTMENT OF VETERANS AFFAIRS MEDICAL CENTER''

                           PUBLIC LAW 104-202

                               (S. 1669)

    Title: An Act to name the Department of Veterans Affairs 
medical center in Jackson, Mississippi, as the ``G.V. (Sonny) 
Montgomery Department of Veterans Affairs Medical Center''.
    Summary: Public Law 104-202 will:
    1. LChange the name of the Department of Veterans Affairs 
Medical Center in Jackson, Mississippi, to the ``G.V. (Sonny) 
Montgomery Department of Veterans Affairs Medical Center''.
    2. LRequire that any reference to this medical center in 
any law, regulation, map, document, record, or other paper of 
the United States be considered to be a reference to the G.V. 
(Sonny) Montgomery Department of Veterans Affairs Medical 
Center.
    Effective date: January 3, 1997 at Noon
    Cost: The Congressional Budget Office advises that S. 1669 
would not affect direct spending or receipts.
    Legislative history: CONGRESSIONAL RECORD (1996)
    June 4, 1996: H.R. 3376, containing similar provision, 
passed the House amended under suspension by voice vote.
    Sept. 10, 1996: S. 1669 passed the Senate by unanimous 
consent.
    Sept. 11, 1996: S. 1669 passed the House by unanimous 
consent.
    Sept. 24, 1996: S. 1669 signed by the President.

                    ACTIVITIES OF THE SUBCOMMITTEES

               Subcommittee on Hospitals and Health Care

    The Subcommittee on Hospitals and Health Care has 
legislative and oversight jurisdiction over the Department of 
Veterans Affairs' health care programs and the Veterans Health 
Administration's 173 hospitals, 398 outpatient clinics, and 
other health facilities such as nursing homes and 
domiciliaries. The subcommittee also conducts oversight of the 
VA medical care budget and initiates legislation to authorize 
VA's major medical construction projects.

                         LEGISLATIVE ACTIVITIES

First Session

    On May 11, 1995, the subcommittee held a markup on three 
bills, H.R. 1384, H.R. 1536, and H.R. 1565. These measures were 
reported by the subcommittee by unanimous voice vote.
    H.R. 1384 proposed to exempt registered professional 
nurses, physician assistants and expanded-duty dental 
auxiliaries from the title 38 limitation restricting full-time 
VA health professionals from remunerated outside professional 
activities involving provision of patient care. H.R. 1384 would 
have left in effect the limitation on other VA health 
professions, however, that measure was eventually included in 
H.R. 3118, as amended, the Veterans' Health Care Eligibility 
Reform Act of 1996, Public Law 104-262, and eliminated the 
``moonlighting'' restriction altogether. (See summary of Public 
Law 104-262, p. 26.)
    H.R. 1536 proposed to extend until December 31, 1997, the 
authority of the VA Secretary to permit VA Medical Center 
directors to use nurse anesthetist contract agency compensation 
data to adjust locality-based nurse pay rates where a VA 
locality survey provides insufficient data. Similar language 
was included in H.R. 2353, as amended, (House Report 104-275) 
which became Public Law 104-110. (See summary of Public Law 
104-110, p. 24.)
    In the face of the expiration of special authorities for VA 
to provide care to veterans who may have been exposed to Agent 
Orange or ionizing radiation, H.R. 1565 called for VA to 
provide priority health care for: (1) herbicide-exposed 
veterans for those diseases for which the National Academy of 
Sciences in its reviews of scientific literature found either 
(a) sufficient evidence of an association with herbicide 
exposure, (b) limited/suggestive evidence of association with 
herbicide exposure, or (c) inadequate/insufficient evidence to 
determine whether an association exists with herbicide 
exposure; (2) radiation-exposed veterans suffering from certain 
cancers; and (3) other veterans exposed to those substances who 
had been treated for other health problems in the past.
    The full Committee unanimously ordered H.R. 1565, as 
amended, (House Report 104-158) reported by a vote of 29-0 on 
June 15, 1995. H.R. 1565, as amended, was passed by the House 
on June 27, 1995. (Provisions of Public Law 104-110 extended 
then-existing law authorizing care for herbicide and radiation-
exposed veterans until December 31, 1996.)
    On September 7, 1995, the subcommittee reported H.R. 2291, 
an omnibus bill to extend expiring health care authorities, by 
unanimous voice vote. Among its provisions, the bill proposed 
extension of VA's contract authority for alcohol and drug abuse 
care, the non-institutional Nursing Home Care Alternatives 
Program, the Health Scholarships Program, Enhanced-Use Leasing, 
Community-Based Residential Care for Homeless Chronically 
Mentally Ill Veterans, and the Demonstration Program of 
Compensated Work Therapy and Therapeutic Transitional Housing. 
In addition, the bill proposed to extend VA's authority to 
provide care to veterans of Persian Gulf War service until 
December 31, 1998.
    Provisions of H.R. 2219, modified in some instances as to 
duration of the program extension, were incorporated into H.R. 
2353, as amended, an omnibus program extension bill. The full 
Committee ordered H.R. 2353, as amended, (House Report 104-275) 
reported by unanimous voice vote on September 20, 1995, and the 
House passed the bill by a vote of 403-0 on October 17, 1995. 
(See summary of Public Law 104-110, p. 24.)
    On September 28, 1995, the full Committee voted 29-0 to 
include in its budget reconciliation recommendations for the 
fiscal year 1996 budget draft legislation derived in part from 
H.R. 1385, which proposed amendments to reform provisions of 
law governing VA health care eligibility. The Committee then 
voted to approve its recommendations on reconciliation by a 
vote of 21-8. These eligibility reform provisions were 
incorporated into the House-passed reconciliation bill, H.R. 
2491 (House Report 104-350.)

Second Session

    A similar measure providing for VA health care eligibility 
reform, protection of special disability programs and expanded 
authority to share health care resources, was reintroduced as 
H.R. 3118. -On May 8, 1996, the subcommittee by unanimous voice 
vote approved H.R. 3118 and H.R. 3376 (House Report 104-574), a 
major medical construction authorization bill for fiscal year 
1997. The full Committee met the same day and ordered these 
bills reported to the House, along with legislation reported by 
other subcommittees. On July 30, 1996, the House passed H.R. 
3118 by a vote of 416-0.
    The subcommittee met on June 18, 1996, to consider H.R. 
3643, legislation to extend VA's authority to provide priority 
health care to veterans exposed to Agent Orange and ionizing 
radiation, as well as to Persian Gulf veterans who suffer from 
undiagnosed illnesses related to their service. H.R. 3643 was 
reported by unanimous voice vote, and the full Committee 
ordered it reported by unanimous voice vote on June 20, 1996 
(House Report 104-360), along with several bills from other 
subcommittees.
    Many of the provisions included in these bills, along with 
other initiatives, were included in a compromise version of 
H.R. 3118, which passed the Senate by unanimous consent on 
September 28, 1996. The same day, the House agreed to this 
amended version, also by unanimous consent. On October 9, 1996, 
the President signed H.R. 3118 into law as Public Law 104-262. 
(See summary of Public Law 104-262, p. 26.)

                           OVERSIGHT HEARINGS

First Session

    On March 9, 1995, the subcommittee heard testimony on the 
progress of research on undiagnosed illnesses of Persian Gulf 
War veterans from officials at the Department of Veterans 
Affairs, the Department of Defense, the Centers for Disease 
Control, the Institute of Medicine and The American Legion.
    Subsequent to this hearing, Chairman Hutchinson introduced 
H.R. 2353, which, among other things, called for the Department 
of Veterans Affairs to provide health care until December 31, 
1996, on a priority basis for veterans who served in the 
Persian Gulf. H.R. 2353, as amended, became law on February 13, 
1996. Later legislation, included as part of the Veterans' 
Health Care Eligibility Reform Act of 1996, authorized a 
further extension of that authority to December 31, 1998. This 
bill was signed into law on October 9, 1996.
    The Committee continues to be concerned about these 
undiagnosed illnesses and VA's role in ensuring appropriate 
care for veterans. It recommends that further oversight take 
place during the 105th Congress. (See Oversight Plan, page 62, 
paragraph 8.)
    The subcommittee, on April 6, 1995, held a hearing to 
examine the ramifications of the Veterans Health 
Administration's reorganization plan. The proposed 
reorganization called for the creation of 21 Veterans 
Integrated Service Networks (VISNs) in an attempt to bring 
decision-making on VA health care to a more local level. Those 
testifying at the hearing included officials from the 
Department of Veterans Affairs, a private health care provider, 
various VA employee organizations, and Veterans Service 
Organizations.
    Witnesses generally expressed support for the 
reorganization plan as an effective way for VA to deal with 
health care's changing methods. Based on that hearing, the 
Committee did not interpose objections to the plan. Because of 
concerns articulated at this hearing, the Committee included in 
its eligibility reform legislation a provision to protect 
``special disability'' programs which it deemed vulnerable 
under the reorganization plan. A part of the Veterans' Health 
Care Eligibility Reform Act of 1996 decreased the number of 
days Congress must be in continuous session in order for such a 
reorganization to go into effect. The Committee recommends that 
oversight regarding changes in the VA health care system 
stemming from the reorganization be undertaken in the 105th 
Congress. (See Oversight Plan, page 62, paragraph 2.)
    On June 5, 1995, Subcommittee Chairman Hutchinson asked the 
General Accounting Office to review the Department's Third 
Party Recovery Program. Questions exist about VA's 
effectiveness in recovering from insurers costs of providing 
nonservice-connected care. On April 1, 1996, the General 
Accounting Office briefed subcommittee staff on this issue. 
Further study of this issue by GAO is ongoing and oversight 
into the 105th Congress is merited.
    On July 19, 1996, the full Veterans' Affairs Committee held 
a hearing which focused on the patchwork of laws governing 
eligibility for VA health care and the barriers those laws 
create for veterans seeking access to needed care, particularly 
outpatient care. A multitude of witnesses, including officials 
from the Department of Veterans Affairs, the General Accounting 
Office, the Association of American Medical Colleges, the 
Nurses Organization of VA, and various veterans service 
organizations, testified to the need for eligibility reform.
    This hearing helped pave the way for passage and enactment 
of an eligibility reform bill, H.R. 3118. This legislation, 
which was formulated on a bipartisan basis with the full 
support of most veterans service organizations and VA, 
significantly changes the way VA provides health care to 
eligible veterans.
    As ultimately enacted, this legislation calls for VA to 
provide, within appropriations, all needed hospital and medical 
care services, and to establish and manage health care programs 
to promote the cost-effective delivery of health services for 
veterans who enroll for VA care. Those with highest enrollment 
priorities are veterans with compensable service-connected 
disabilities, former prisoners of war, veterans exposed to 
toxic substances and environmental hazards, veterans meeting 
the ``means test'' as provided under existing law, and veterans 
of World War I. In order to address concerns raised by the 
Congressional Budget Office, the law caps authorization levels 
for eligibility reform provisions at $17.25 billion for fiscal 
year 1997 and $17.9 billion for fiscal year 1998. The Committee 
intends to monitor implementation of this important law. (See 
Oversight Plan, page 63, paragraphs 9, 10, 15 and 16.)
    On September 27, 1995, the subcommittee heard testimony 
relating specifically to drug arrests at the Brooklyn VA 
Medical Center, but also relating to the issue of drug use at 
VA facilities in general. On September 13, 1995, 12 VA 
employees and a VA police sergeant were arrested for the 
selling of illegal drugs, loan-sharking and bribery at the 
medical facility. John Baffa, Deputy Assistant Secretary for 
Security and Law Enforcement at the Department of Veterans 
Affairs, testified about the Department's procedures in 
handling such incidences. Also testifying at the hearing were 
James Farsetta, Director of the Brooklyn VAMC and VA Inspector 
General Stephen Trodden. The Committee believes further 
oversight on drug-related activities should continue, but the 
Brooklyn situation has been rectified for the time being. The 
battle to solve the problems at Brooklyn highlighted the 
effective partnering of VA, VHA and Inspector General elements.
    The subcommittee held an oversight hearing on October 18, 
1995, to examine the extent to which VA and DOD health care 
facilities were effectively sharing health care resources. 
Statutory provisions enacted in Public Law 97-174 authorized 
VA/DOD sharing. They were intended to maximize utilization of 
Federal health care resources between the two departments. The 
subcommittee heard firsthand testimony from VA medical center 
directors, who commented on the effectiveness of the program 
and what it means to their facilities. Also, officials from 
GAO, VA and DOD and members of veterans service organizations 
testified. Several unresolved issues reflecting continued 
impediments to full sharing warrant further oversight in the 
105th Congress. (See Oversight Plan, page 62, paragraph 3.)
    The subcommittee found that there remained further 
opportunities for VA to provide services under the DOD's 
TRICARE program, but that the law was due to expire. In order 
to enable VA to continue and expand such sharing, the 
subcommittee advanced legislation to lift the ``sunset'' 
provision of the law. That language was included in the 
Veterans' Health Care Eligibility Reform Act of 1996, signed 
into law on October 9, 1996.
    On October 25, 1995, the subcommittee held a hearing on 
issues relating to the unexplained rise in the death rate of 
veterans on a ward at the Harry S. Truman VA Medical Center in 
Columbia, Missouri, and VA's subsequent handling of findings 
regarding those deaths.
    Since the time of the deaths in 1992, Dr. Gordon 
Christensen, a member of the medical center's staff, has been 
investigating these deaths. Internal and external statistical 
studies indicated a high probability that the deaths were not 
merely coincidental, although to this date, no one has been 
charged with any crime. The hospital director was slow to 
respond to allegations of foul play and, according to Dr. 
Christensen, participated in a cover-up by ordering him to not 
disseminate his findings. VA defended itself by noting that the 
director has retired, two Inspector General audits were 
conducted, and steps have been taken since this incident to 
shore up the hospital's internal review mechanisms.
    In 1996, the subcommittee turned its attention to the FBI's 
handling of the case. Earlier this year, a contract for a 
medical examiner to perform specialized pathological tests on 
some of the deceased veterans was awarded by the FBI. These 
tests have not yet been completed. The Committee recommends 
that oversight continue on this matter.

Second Session

    On March 21, 1996, the subcommittee held a hearing on VA's 
medical care budget for fiscal year 1997 and its construction 
priorities. VA Under Secretary for Health Dr. Kenneth Kizer 
testified in favor of the Administration's budget request. Dr. 
Kizer noted that the increase in the medical care budget 
requested by the Administration should be taken into context by 
comparing it to the budget increases in the other federal 
health care programs, such as Medicare and Medicaid. He also 
addressed questions regarding VA's major construction request 
and its proposal to build two additional hospitals, one in 
Brevard, Florida, and the other in Travis, California.
    Submission of the Administration's major construction 
budget for fiscal year 1997 solidified concerns regarding VA 
construction planning. Public Law 104-262 requires VA to 
develop a strategic planning process and provide an annual 
report thereon to Congress, as well as additional provisions to 
improve its planning, reporting and construction prioritization 
efforts. The Committee believes that ongoing oversight on the 
construction prioritization process is warranted and should 
continue into the 105th Congress and beyond. (See Oversight 
Plan, page 61, paragraph 1, and summary of Public Law 104-262, 
page 26.)
    The subcommittee heard testimony on April 16, 1996, 
regarding the Institute of Medicine's recent findings on Agent 
Orange and its effects on veterans. Dr. David Tollerud, 
Chairman of the IOM's Committee to Review the Health Effects of 
Agent Orange on Vietnam Veterans and their Families, and Dr. 
Andrew Olshan, a member of that committee, testified that 
recent findings suggest that two diseases, peripheral 
neuropathy and spina bifida, show a limited or suggestive link 
with herbicide or dioxin exposure. They stressed, however, that 
these findings were preliminary and further tests should be 
conducted.
    Public Law 104-262 includes a provision which incorporates 
the findings of the Institute of Medicine in determining the 
diseases which VA may treat in providing care to herbicide-
exposed veterans. (See summary of Public Law 104-262, page 26.)
    The subcommittee conducted a field hearing in LaSalle, 
Illinois, on April 22, 1996, to examine outpatient services for 
veterans living in and around the LaSalle County, Illinois, 
area. Witnesses testified to the lack of services available to 
veterans in the area and the distance necessary to be traveled 
in order to receive VA care. According to some who testified, 
the fee basis program was not adequate to meet the veterans' 
needs. Also, local hospitals were willing to work with VA to 
provide services, but VA witnesses testified that VA lacked 
authority to enter into the kind of arrangements proposed.
    Public Law 104-262 addressed a key issue raised at this 
hearing in expanding VA's ability to share health care 
resources with outside entities. The Committee recommends that 
further oversight take place not only on the implementation of 
Public Law 104-262, but also on access to care of veterans who 
do not live close to VA medical facilities. (See Oversight 
Plan, pages 62-63, paragraphs 2, 9, 13 and 16.)
    On April 24, 1996, the subcommittee held an oversight 
hearing to explore the effectiveness of community care clinics. 
In response to a request made by the subcommittee to examine VA 
efforts to create new points of access to care, David Baine of 
GAO testified that VA is doing a commendable job in 
establishing community care clinics for the convenience of 
veterans across the country. However, he testified that GAO 
encountered several instances where VA ignored the letter of 
the law on eligibility in providing health care to these 
veterans.
    VA Under Secretary for Health Kenneth Kizer stressed VA's 
commitment to providing veterans with accessible health care, 
and stated that the development of ``access points'' will 
continue. The Committee believes that it is necessary to 
continue providing convenient health care to eligible veterans, 
regardless of their residence, and recommends continued work 
with VA in this regard. The Committee also believes that 
oversight on the location and number of these access points 
should continue into and beyond the 105th Congress. (See 
Oversight Plan, pages 62-63, paragraphs 2 and 9.)
    VA's pharmacy program was the subject of a subcommittee 
oversight hearing on June 11, 1996. Testifying for GAO, David 
Baine described how a number of VA medical facilities prescribe 
over-the-counter drugs for veterans, a practice which costs VA 
more than $150 million per year. VA, represented by VA Pharmacy 
Service Director John Ogden, countered that it is taking 
responsible steps to ensure that the system is not being abused 
but that eligible veterans receive appropriate pharmaceutical 
care. He testified that VA is moving toward a national 
formulary system that will result in a more uniform method of 
providing over-the-counter pharmaceuticals.
    The Committee believes that further consideration should be 
given to the development of the proposed national formulary 
system. (See Oversight Plan, page 63, paragraph 12.)
    The final subcommittee oversight hearing took place on June 
26 and 27, 1996, and dealt with the future of the Veterans 
Health Administration. A broad array of health care officials, 
including representatives from VA, DOD, GAO, and various other 
organizations, testified on the future of veterans' health care 
as the population ages and diminishes, but while aging 
veterans' health care needs increase.
    Most witnesses testified that VA's shift to ambulatory care 
is a significant step in the right direction. The high cost of 
inpatient care has precipitated a marked change in the way most 
health care entities operate. VA's shift, while late, is much 
needed.
    Not all ideas were universally applauded. Some witnesses 
advocated a system, similar to the Base Realignment Commission 
process, which could result in the closure of VA hospitals. 
Others called for privatization of the VA health care system 
and institution of a system of vouchers.
    VHA's success in providing high quality health care to 
veterans as the Nation approaches the 21st Century is of great 
importance to the Committee, and continuing oversight of its 
ability to provide for veterans' health care needs is vital.

 Subcommittee on Compensation, Pension, Insurance and Memorial Affairs

    The Subcommittee on Compensation, Pension, Insurance, and 
Memorial Affairs has jurisdiction over veterans' matters 
affecting the service-connected disability and death 
compensation programs, the nonservice-connected disability and 
death pension programs, various life insurance programs 
administered or supervised by the Department of Veterans 
Affairs, the National Cemetery System, burial benefits, and 
overseas cemeteries under the jurisdiction of the American 
Battle Monuments Commission.

                         LEGISLATIVE ACTIVITIES

First Session

    On September 28, 1995, the full Committee marked up a 
subcommittee bill, H.R. 2394, the Veterans' Compensation Cost-
of-Living Adjustment Act of 1995. H.R. 2394 proposed to provide 
for a cost-of-living adjustment for 1996, effective December 1, 
1995, to the rates of disability compensation and dependency 
and indemnity compensation for the survivors of certain 
disabled veterans. H.R. 2394 was ordered reported by the 
Committee by unanimous voice vote. (See House Report 104-273.) 
On November 10, 1995, the House agreed to a Senate amendment on 
the COLA bill by unanimous consent, and H.R. 2394 was signed 
into law as Public Law 104-57 on November 22, 1995. (See 
summary of Public Law 104-57, page 23.)
    On October 12, 1995, the subcommittee held a legislative 
hearing to receive testimony on nine bills: H.R. 109, a bill to 
provide for pro rata payments of deceased veterans' final 
monthly compensation awards; H.R. 368, a bill to add 
bronchiolo-alveolar carcinoma to the list for which 
presumptions of service-connection are applicable with respect 
to radiation exposure; H.R. 1482, a bill to provide for 
improvements in services concerning veterans' benefits; H.R. 
1483, a bill to provide the Board of Veterans' Appeals the 
authority to reverse or revise a decision based on clear and 
unmistakable error; H.R. 1609, a bill to provide for the 
transfer of information between the Social Security 
Administration and the Department of Veterans Affairs when the 
Commissioner determines that a veteran is eligible for 
supplemental security income; H.R. 1809, a bill to provide the 
American Battle Monuments Commission authority to assume 
responsibility for overseas war memorials and accept private 
funds for maintenance; H.R. 2155, a bill to provide reforms for 
certain veteran's programs; H.R. 2156, a bill to provide for 
termination of Servicemen's Group Life Insurance when premiums 
are not paid within 60 days of the date on which such 
remittance is due; and H.R. 2157, a bill to provide 
improvements to veterans' insurance programs.
    Two members of Congress testified on behalf of their 
respective bills, Honorable Chris Smith (R-NJ), in support of 
H.R. 368 and Honorable Mike Bilirakis (R-FL), in support of 
H.R. 109. There was minimal opposition from the veterans 
service organization representatives who testified on the nine 
bills before the subcommittee. Lt. General Samuel Ebbesen, 
Deputy Assistant Secretary of Defense, testified in support of 
H.R. 2156 and H.R. 2157. The Chairman of the Board of Veterans' 
Appeals, Honorable Charles Cragin, expressed strong opposition 
to H.R. 1483.

Second Session

    On April 17, 1996, the subcommittee marked up several 
bills, each previously considered in the subcommittee 
legislative hearing on October 12, 1995. The bills before the 
subcommittee were H.R. 2843, the Veterans' Insurance Reform Act 
of 1996; H.R. 2850, a bill clarifying the eligibility of 
certain minors for burial in national cemeteries; H.R. 1483, to 
allow revision of veterans benefits decisions based on clear 
and unmistakable error; and H.R. 3248, the Veterans' Programs 
Amendments of 1996. H.R. 2843 is a compilation of provisions 
previously included in H.R. 2156 and H.R. 2157. H.R. 3248 
included provisions from H.R. 109, H.R. 368, H.R. 1482, H.R. 
1809, and H.R. 2155. The four bills were reported to the full 
committee. Prior to being marked up by full committee, several 
of the bills were combined. H.R. 2843, H.R. 2850 and H.R. 3036 
(Education, Training, Employment and Housing Subcommittee 
legislation) were consolidated and introduced on May 1, 1996, 
and became H.R. 3373. The full committee considered H.R. 3373 
(House Report 104-572) and H.R. 1483 (House Report 104-571) on 
May 8, 1996, and reported favorably thereon to the House. The 
House passed both bills by voice vote on May 21, 1996. Several 
provisions of H.R. 3373 were contained in Public Law 104-275 
(see summary of Public Law 104-275, page 31).
    On May 22, 1996, the subcommittee marked up four bills: 
H.R. 2513, to expand eligibility for burial benefits to include 
certain veterans who die in State nursing homes; H.R. 3458, to 
provide for a cost-of-living adjustment (COLA), effective 
December 1, 1996, to the rates of compensation for veterans 
with service-connected disabilities and the rates of dependency 
and indemnity compensation for the survivors of certain 
disabled veterans; H.R. 3493, to authorize financial assistance 
by grant or contract to legal assistance entities for 
representing financially needy veterans in connection with 
proceedings before the United States Court of Veterans Appeals; 
and H.R. 3495, to extend the time for the submission of the 
final report from the Veterans' Claims Adjudication Commission 
and to provide for an additional $150,000 to complete their 
activities.
    H.R. 3458, the COLA bill for 1997, was reported 
unanimously. H.R. 3493, reintroduced with identical language on 
May 22, 1996, as H.R. 3506, but with additional sponsors, was 
also reported to the full Committee.
    H.R. 2513 and H.R. 3495 were both reported by unanimous 
voice vote to the full Committee. On June 19, 1996, H.R. 2513 
and H.R. 3506 were combined with H.R. 3673. The full committee 
considered H.R. 3458 (House Report 104-647) and H.R. 3673 
(House Report 104-649) on June 20, 1996 and reported favorably 
thereon to the House. The House passed both bills by voice vote 
on May 21, 1996. The COLA bill, H.R. 3458, was signed into law 
as Public Law 104-263. H.R. 2513 was contained in Public Law 
104-275 (see summary of Public Law 104-275, page 31).

                           OVERSIGHT HEARINGS

First Session

    On May 12, 1995, the subcommittee held an oversight hearing 
on the Veterans Benefits Administration's processing of 
veterans' compensation claims with an emphasis on Persian Gulf 
War claims. The subcommittee also focused on the challenges VA 
is facing in processing veterans' claims and the efforts made 
to find remedies to the current backlog at VA. The subcommittee 
also received testimony on the effect of Public Law 103-446, 
the Veterans' Benefits Improvements Act of 1994. In addition to 
representatives of the Department of Veterans Affairs, 
including five VA Regional Office Directors, testimony was 
heard from representatives of the major veterans service 
organizations. During the hearing, each of the veterans service 
organizations' representatives agreed that VA had made little 
improvement in the delivery and processing of benefits for 
Persian Gulf veterans. The VA witness, Mr. R. John Vogel, Under 
Secretary for Benefits, testified to seeing significant 
improvements in timeliness and workload, and attributed both to 
the combined effect of many VBA management and technological 
initiatives. Each witness testified that it was too early to 
thoroughly evaluate the effects of Public Law 103-446. The 
Committee continues to be concerned about the problems 
encountered by Persian Gulf War veterans. In light of recent 
disclosures by the Department of Defense about possible 
exposure of Persian Gulf veterans to chemical weapons and the 
continuing controversies surrounding the use of anti-nerve 
agent drugs, the Committee recommends further review of these 
issues. (See Oversight Plan, page 64, paragraphs 1 and 2.)
    On June 22, 1995, the subcommittee conducted a hearing on 
the Veterans Benefits Administration's computer modernization 
program, focusing on VA's Information Resources Management 
structure and its performance objectives. Witnesses included 
representatives from the General Accounting Office (GAO) and 
the Department of Veterans Affairs. Mr. Frank Reilly, Director 
of Information Management and Technology at GAO, testified that 
there is support for VBA's computer modernization goals, but 
raised serious questions about VBA's approach to modernization 
and implementation. He further testified that VBA is 
implementing modernization along with many other initiatives 
without an overall implementation strategy or an adequate 
approach to evaluate key initiatives. According to GAO, other 
agencies agreed that VA's life-cycle modernization costs were 
indeterminate and that performance measures were lacking. Mr. 
Raymond Avent, the VA witness, testified that with outside 
help, VBA was assessing changes necessary to improve their 
modernization plans. VBA acknowledged that their original plans 
for modernization had not fully anticipated the degree and rate 
of the required changes. (See Oversight Plan, page 64, 
paragraph 3.)

Second Session

    On April 30, 1996, the subcommittee held an oversight 
hearing on veterans exposed to ionizing radiation. Witnesses 
included representatives from several atomic veterans 
organizations: National Association of Atomic Veterans, 
National Association of Radiation Survivors, and Alliance for 
Atomic Veterans. Mr. R. John Vogel of VA and Ms. Joan Ma Pierre 
of the Defense Nuclear Agency were the government 
representatives. Dr. Ruth Faden, chairwoman of the President's 
Advisory Committee on Human Radiation Experiments, testified on 
the Advisory Committee's recommendations. The Advisory 
Committee published its final report in October 1995, and has 
since disbanded. (See Oversight Plan, page 65, paragraph 7.)
    The subcommittee has requested briefings on the findings 
from studies of Operation Crossroads and Operation Hardtack. 
These studies were done by the Institute of Medicine and VA 
respectively.
    The Committee recommends further oversight on Agent Orange 
and Ionizing Radiation.
    On June 19, 1996, the subcommittee conducted its second 
oversight hearing on VA computer modernization efforts. The 
focus of the hearing was a review of VA's progress in computer 
modernization as a part of the overall strategic plans. Mr. R. 
John Vogel, Under Secretary for Benefits, Veterans Benefits 
Administration, testified for VA, and Mr. Gene Dodaro, 
Assistant Comptroller General, Accounting and Management 
Division, represented the General Accounting Office. Ms. Rhoda 
Davis, a member of the Veterans' Claims Adjudication 
Commission, submitted for the record her views on VA's progress 
in computer modernization and its relationship to overall 
strategic management.
    Mr. Dodaro testified on the many fundamental management and 
technical problems that have prevented VA from realizing the 
benefits expected from substantial investments in information 
technology. GAO also presented its views on what VBA needs to 
do to increase the likelihood of success. GAO stressed the 
importance of VA immediately addressing the year-2000 issue for 
its computers and how a lack of planning will affect claims 
benefits processing.
    Mr. Vogel provided an update on VBA's strategic planning 
progress, which included information technology and business 
planning activities. While acknowledging several problems, Mr. 
Vogel outlined the areas in which he believed the Department 
had made real progress since the June 22, 1995, subcommittee 
hearing.
    Staff members also held regular briefing sessions with VBA 
computer modernization personnel and GAO, with special emphasis 
on the costs and benefits of modernization efforts. Staff 
members made site visits to Hines Data Center in Chicago, the 
Austin Automation Center in Texas, the Regional Office in St. 
Louis, MO, and the St. Petersburg, FL Regional Office to 
observe automation initiatives. (See Oversight Plan, page 64, 
paragraph 3.)
    The Committee remains concerned about the management of 
VBA's computer modernization and strongly recommends continuing 
oversight of these activities.

                    ADDITIONAL OVERSIGHT ACTIVITIES

First Session

    On October 2, 1995, Chairman Bob Stump and Ranking Member 
G.V. (Sonny) Montgomery, along with Senate Veterans Affairs 
Committee Chairman Alan Simpson and Ranking Member John 
Rockefeller, transmitted a letter to VA Secretary Jesse Brown 
regarding VA's report on the feasibility of reorganization and 
consolidation of adjudication divisions in VBA regional 
offices. The joint letter stated that the report, made pursuant 
to section 304 of Public Law 103-446, did not fulfill the law's 
requirements. The joint letter informed the Department that its 
report, submitted on July 11, 1995, did not answer the three 
central questions Congress intended: (1) Could VBA consolidate 
adjudication divisions in a manner that would improve 
efficiency? (2) How many adjudication divisions would there be? 
and (3) What would be the overall impact of consolidation on 
VBA operations?
    The Committee requested a revised report from VA no later 
than November 1, 1995, that addressed the issues. Subsequently, 
through a series of briefings and reports, VA met the mandates 
of section 304 of Public Law 103-446. VBA provided a 
restructuring plan that addressed functional consolidation of 
some regional offices. The plan included a reduction in 
adjudication divisions at several regional offices and 
quantified personnel and fiscal savings. The Committee 
recommends no further oversight on this specific issue but 
recommends continued monitoring of VBA's business process 
reengineering.
    On October 12, 1995, the subcommittee began an examination 
of the merits of H.R. 1483, a bill to allow revision of 
veterans benefits decisions based on grounds of clear and 
unmistakable error (CUE). An appeal based on CUE alleges an 
error in VA's claim decision that is so obvious and compelling 
that a reversal of a decision is warranted. Chairman Terry 
Everett transmitted a letter to Mr. R. John Vogel, Under 
Secretary for Benefits, Veterans Benefits Administration, which 
requested statistics on the number of CUE cases that had been 
appealed to the Board of Veterans' Appeals and the Court of 
Veterans Appeals. Mr. Vogel responded in writing that the 
Veterans Benefits Administration did not keep the statistical 
information requested, but in letters, briefings, and hearings, 
VA opposed the legislation on the grounds that it would create 
an unnecessary burden on the claims process and add to the 
backlog of pending claims. (See Oversight Plan, page 64, 
paragraph 4.)
    While claims production at the Board of Veterans Appeals 
has increased, a significant backlog continues to exist. The 
Committee recommends continuing oversight in this area.
    On October 30, 1995, the subcommittee transmitted a letter 
to VA Secretary Jesse Brown which requested a 20-year life 
cycle cost study from the National Cemetery System (NCS) to 
measure the effectiveness of VA's national cemetery 
construction plans. The subcommittee desired a comparison study 
detailing the costs of planning, constructing, and operating a 
cemetery providing full casket burials versus one providing 
interment of cremated remains only in columbaria. On February 
13, 1996, in response to the subcommittee, NCS provided a study 
which concluded that the total base construction costs for the 
columbaria would be higher than the full casket cemetery, but 
the total life cycle cost of the full casket cemetery would be 
$6.7 million more than the columbaria cemetery. Throughout the 
104th Congress, the NCS staff has met with the subcommittee 
staff and submitted briefing papers on a number of issues, 
including budget matters, present and future site construction 
projects, expansion efforts, headstone and grave marker costs, 
and the State Cemetery Grant program. (See Oversight Plan, page 
65, paragraph 8.)
    The Committee remains concerned about the future viability 
of the National Cemetery System and recommends continued 
oversight regarding NCS's strategic planning.

Second Session

    In March 1996, the Committee received the report of the 
National Academy of Sciences regarding the effects of exposure 
to Agent Orange and other herbicides. The report found that 
there was ``limited and suggestive evidence'' of an association 
between the occurrence of spina bifida and Vietnam veterans' 
exposure to Agent Orange. (See Oversight Plan, page 65, 
paragraph 7.)
    On March 21, 1996, the subcommittee requested by letter 
VA's position on awarding service-connected disability for 
smoking related diseases, including any proposed regulations. 
The Department responded by forwarding a copy of a January 
1993, VA General Counsel opinion holding that direct service-
connection of disability or death may be established if the 
evidence establishes that injury or disease resulted from 
tobacco use in the line of duty. The Department also related 
that they were developing regulations addressing service-
connection for disability caused by smoking during service, but 
that the regulations were under review by the agency and not 
final. The Committee recommends continuing oversight on this 
issue. (See Oversight Plan, page 64, paragraph 2.)
    On March 21, 1996, the subcommittee transmitted a letter to 
VA which requested a review of the adjudication process for 
Post Traumatic Stress Disorder claims, including statistical 
data on the number of claims filed in 1995 and the approval 
rate for such claims. VA provided the subcommittee with a 
multi-page fact sheet addressing the inquiry and enclosed 
training directives sent to the regional offices by the 
Compensation and Pension Service. (See Oversight Plan, page 64, 
paragraph 5.) The Committee recommends continued oversight of 
this issue as part of its oversight of the overall claims 
process.
    On April 3, 1996, the subcommittee transmitted a letter to 
VA Secretary Brown which requested comments on the 
restructuring plans for the Veterans Benefits Administration, 
and on the manner in which provisions outlined in section 510 
of title 38 of the United States Code applied to those plans. 
The Department responded with an assurance that it would fully 
comply with the requirements of 38 U.S.C. 510 and that it would 
keep the oversight committees fully informed of restructuring 
plans. Throughout the 104th Congress, VA briefed the 
subcommittee staff on VBA's reorganization. The Committee 
recommends continued oversight on this matter.
    On April 16, 1996, the subcommittee transmitted a letter to 
VA which requested data on the claims adjudication process for 
veterans who suffered cold weather injuries in the line of duty 
and the directives conveyed to regional offices regarding the 
adjudication of those claims. VA responded with a Clinical 
Programs Information Letter outlining the residual disabilities 
that could result from cold weather injuries, along with 
training letters from the Compensation and Pension Service to 
the adjudication divisions which addressed the evidence 
necessary to establish service-connection for such 
disabilities.
    The Committee remains concerned about several issues 
involving claims processing such as the inconsistency of 
adjudication, continued delays in processing time, and the 
restructuring of the Regional Office system, and recommends 
additional oversight in these areas.
    On October 1, 1996, the subcommittee requested from the 
Congressional Research Service (CRS) an analysis of the VA 
pension program as compared to other needs-based programs. CRS 
responded with a report, Cash and Noncash Benefits for Persons 
with Limited Income: Eligibility Rules, Recipient and 
Expenditure Data, FYs 1992-1994, which consisted of a catalog 
of 81 need-based programs providing the funding formula, 
eligibility requirements, and benefit levels for each program. 
(See Oversight Plan, page 65, paragraph 10.) Based on the 
report findings, the Committee recommends continued routine 
oversight on this matter.

      Subcommittee on Education, Training, Employment, and Housing

    The Subcommittee on Education, Training, Employment, and 
Housing is responsible for the following programs: the 
Montgomery GI Bill; veterans training and rehabilitation; the 
Post-Vietnam era Veterans' Educational Assistance; the Vietnam 
era GI Bill; and survivors and dependents educational 
assistance. Veterans housing and small business matters come 
under the purview of the subcommittee as well as job 
counseling, training, and placement services for veterans; 
employment and training of disabled, Vietnam-era and post-
Vietnam era veterans; and Veterans Reemployment Rights. The 
subcommittee also has oversight responsibilities for programs 
such as veterans' preference which affect veterans, but are 
under the legislative jurisdiction of another committee.

                         LEGISLATIVE ACTIVITIES

First Session

    On August 2, 1995, the subcommittee held a legislative 
hearing on draft legislation on technical changes to the 
Uniformed Services Employment and Reemployment Rights Act 
(USERRA), extension of VA housing programs, Department of 
Labor's Veterans' Employment and Training Service (VETS) 
program and the transfer of the Office of Veterans Affairs 
(OVA) at the Small Business Administration (SBA) to the 
Department of Veterans Affairs.
    The subcommittee considered H.R. 1941, introduced by Mr. 
Montgomery, which contained several technical amendments to 
strengthen and clarify USERRA. USERRA was designed to protect a 
veteran's ability to return to the workforce following active 
duty service, while at the same time not overburdening 
employers. Development of amendments to strengthen this 
important protection of veterans employment rights was a result 
of legislative work with VETS.
    The major veterans service organizations, The American 
Legion, Veterans of Foreign Wars, AMVETS, Disabled American 
Veterans, and the Association For Service Disabled Veterans 
testified on the bill. The Mortgage Bankers Association of 
America also testified and discussed the housing provisions. 
The administration was represented by Mr. R. John Vogel, Under 
Secretary for Veterans Benefits, accompanied by Mr. Keith 
Pedigo and Mr. Scott Denniston; Ms. Patricia R. Forbes, Acting 
Associate Deputy Administrator for Economic Development, Small 
Business Administration, accompanied by Mr. Leon Bechet (OVA); 
and Mr. Preston Taylor, Assistant Secretary of Labor, Veterans 
Employment and Training.
    The subcommittee also received testimony on various 
discussion drafts developed by the Chairman. The drafts 
contained provisions designed to streamline VETS operations, 
and was strongly supported by VETS and the major veterans 
service organizations.
    The subcommittee considered a discussion draft of a bill to 
extend VA housing programs due to sunset at the end of the 
calendar year. The draft bill was strongly supported by all 
witnesses.
    The proposal to merge the Office of Veterans Affairs at the 
SBA with the Office of Small and Disadvantaged Business 
Utilization at VA sought to establish efficient management of 
assistance for veteran-owned operations seeking to do business 
with the federal government. Among the major veterans 
organizations, only the Veterans of Foreign Wars opposed such a 
transfer of responsibilities.
    On September 7, 1995, the subcommittee held a markup on a 
comprehensive discussion draft bill to amend title 38 of United 
States Code with clarifying and technical amendments regarding 
the Uniformed Services Employment and Reemployment Rights Act 
of 1994, by further defining the responsibilities of members of 
the uniformed services as well as those of their employers. The 
draft also contained provisions streamlining VETS, as well as 
extending several VA home loan programs, and reauthorizing the 
Homeless Veterans Reintegration Projects (HVRP) for three 
additional years. The discussion draft under consideration was 
a compilation of the various discussion drafts reviewed by the 
subcommittee during the August 2, 1995, hearing.
    Following the markup, on September 8, 1995, the 
Subcommittee Chairman introduced H.R. 2289, ``Veterans Housing, 
Employment Programs, and Employment Rights Benefits Act of 
1995'' to amend title 38 of United States Code, to extend 
permanently certain housing programs, to improve the veterans 
employment and training system, and to make technical 
amendments to further clarify the employment and reemployment 
rights and responsibilities of members of the uniformed 
services.
    The full Committee met on September 20, 1995, and ordered 
H.R. 2289 reported favorably to the House by unanimous voice 
vote. (See House Report 104-397.) Several of the Title I VA 
Home Loan provisions were incorporated into Public Law 104-110. 
(See summary of Public Law 104-110, page 24.)

Second Session

    On April 18, 1996, the subcommittee held a hearing to 
review legislation affecting veterans education services, 
including H.R. 2851, H.R. 2868 and H.R. 3036.
    Mr. Don Sweeney, legislative director, National Association 
of State Approving Agencies, testified on H.R. 2851, which 
would change VA's two-year rule regarding extensions and branch 
campuses of learning institutions. The state approving agencies 
are VA's state partners in the administration of veterans 
programs.
    Dr. Stephen Lemons, Deputy Under Secretary of Veterans 
Benefits Administration, accompanied by Ms. Celia Dollarhide, 
Director, VA Education Service, testified in support of H.R 
2851. However, Dr. Lemons strongly opposed H.R. 3036, which 
would require the management, policy and other functions 
associated with VA educational programs to remain in the 
Washington, DC area.
    Congressman Tejeda discussed the value of the alternative 
teacher certification program which his bill, H.R. 2868, would 
make permanent. The program aims to help veterans receive 
teaching certification with Montgomery GI Bill benefits.
    On May 30, 1996, the subcommittee held a markup on H.R. 
2851 and H.R. 3459. The subcommittee introduced an amendment in 
the nature of a substitute to H.R. 2851, to modify the GI 
Bill's ``two-year rule'' restricting veterans' access to 
institutions of higher learning. The subcommittee also 
considered H.R. 3459, which proposed to extend VA's authority 
for the enhanced loan asset sale to guarantee the real estate 
mortgage investment conduits (REMICs) that are used to market 
vendee loans on the secondary market. This authorization would 
guarantee timely payments of principal and interest on the 
certificates issued by the REMICs for an additional year, thus 
lowering the interest rate paid by VA. Both measures passed by 
voice vote and were incorporated into H.R. 3673, which was 
ordered reported by the Committee on June 27, 1996. (See House 
Report 104-649.) Both measures were incorporated into S.1711, 
which on October 9, 1996, became Public Law 104-275 (See 
summary of Public Law 104-275, page 31.)

                       JOINT LEGISLATIVE HEARINGS

    On May 8, 1996, the Subcommittee on Education, Training, 
Employment and Housing, along with the Subcommittee on 
Compensation, Pension, Insurance and Memorial Affairs, 
conducted a joint legislative hearing to consider several 
proposals which would affect veterans benefits. Witnesses 
included Dr. Stephen Lemons, Deputy Under Secretary for 
Benefits at the Veterans Benefits Administration; 
representatives of the Disabled American Veterans, Paralyzed 
Veterans of America, Veterans of Foreign Wars, the American 
Legion, and Gold Star Wives; Chief Judge Frank Nebeker of the 
Court of Veterans Appeals and David Isbell, Esq., Advisory 
Committee Chairman of the Veterans Consortium Pro Bono Program.
    The first proposal, under the jurisdiction of the 
Education, Training, Employment and Housing Subcommittee, was a 
draft bill to repeal the effects of Davenport v. Brown, 7 Vet. 
App. 476 (1995). The proposal would require a veteran's 
service-connected disability to be responsible for an 
employment handicap in order to qualify for VA vocational 
rehabilitation benefits. VA and several major veterans 
organizations supported the bill, while Paralyzed Veterans of 
America supports the Court's original Davenport decision.
    The second proposal was a draft cost-of-living adjustment 
bill to provide an increase in the rates of compensation and 
Dependency and Indemnity Compensation equal to the percentage 
given to Social Security recipients. This proposal was widely 
supported.
    Finally, the subcommittees received testimony on a draft 
bill to ensure the continuation of the veterans Pro Bono 
Program at the Court of Veterans Appeals. VA did not object to 
the bill, and the veterans service organizations supported the 
proposal. The Court of Veterans Appeals opposed the bill as 
drafted, but offered changes. The Veterans Consortium offered 
minor changes but supported the proposal.

                           OVERSIGHT HEARINGS

First Session

    On May 3, 1995, the subcommittee held an oversight hearing 
on the cooperation between VA's Vocational Rehabilitation and 
Counseling Service (VR&C) and DOL's Veterans Employment and 
Training Service (VETS). The Vocational Rehabilitation program, 
contained in chapter 31, title 38, United States Code, provides 
rehabilitation training to disabled veterans to enable them to 
obtain and maintain suitable employment and live independently. 
In addition, VR&C provides educational and vocational 
counseling to active duty servicemembers who are within six 
months of separation, veterans who have been out of service not 
more than 12 months, and individuals who are participating in 
various VA administered programs. VR&C staff also play an 
important role in the Transition Assistance Program and 
Disabled Transition Assistance Program.
    The Assistant Secretary of Labor for Veterans Employment 
and Training (ASVET) is responsible for Veterans Training & 
Employment under chapter 41, title 38, United States Code. 
Local Veterans Employment Representatives (LVERs) and Disabled 
Veteran Outreach Program Specialists (DVOPS) are federally-
funded state veteran employment specialists and the primary 
contacts providing direct services to assist veterans seeking 
employment. Members and witnesses discussed the DVOPS' role in 
assisting the graduates of VA's VR&C programs and examined the 
effectiveness of the cooperation between VA and VETS.
    Witnesses represented The Disabled American Veterans; 
Paralyzed Veterans of America; Vietnam Veterans of America; and 
The American Legion. Mr. R. John Vogel, Under Secretary for 
Benefits, Department of Veterans Affairs, accompanied by Mr. 
Raymond Avent, VA Deputy Under Secretary for Benefits; Mr. 
Larry Woodard, Director, VR&C Services, accompanied by Ms. 
Sharon Bunger, VR&C Contract Counselor, Rehabilitative Service 
& Vocational Placement, Inc., Richmond, VA., testified for VA. 
The Department of Labor was represented by the Honorable 
Preston Taylor, Assistant Secretary of Labor, Veterans 
Employment and Training, accompanied by Mr. Allan Perkins, 
Disabled Veterans Outreach Program Specialist, Houston, TX, and 
Mr. Tom Pifer, Disabled Veterans Outreach Program Specialist, 
St. Petersburg, FL.
    Witnesses from the veterans service organizations testified 
to serious shortcomings in the cooperation between VA and VETS. 
The Subcommittee Chairman noted that it may be appropriate to 
move VETS to VA to ensure aggressive program management. VA and 
VETS witnesses opposed such a move while some of the VSO 
witnesses voiced support for the idea. As a result of the 
hearing, Mr. Vogel and Mr. Taylor signed an August 1, 1995, 
Memorandum of Understanding outlining levels of cooperation to 
improve the services to disabled veterans. The Committee 
remains concerned about the Vocational Rehabilitation and 
Counseling Service and recommends continued examination of the 
service. (See Oversight Plan, page 65, paragraph 1.)
    On June 29, 1995, the subcommittee held an oversight 
hearing to review the reorganization of the Veterans' 
Employment and Training Service, as well as the implementation 
of the Uniformed Services Employment and Reemployment Rights 
Act (USERRA). The subcommittee also discussed the benefits of 
the ``one-stop shop'' employment office concept.
    The subcommittee was interested in how VETS expanded their 
reinvention efforts to assure compliance as directed by the 
National Performance Review and the executive memorandum dated 
September 11, 1993, regarding the streamlining of the federal 
bureaucracy. Along with the concerns for streamlining were the 
adjustments necessary for VETS to assume its role in the ``one-
stop shop'' employment environment which seeks to consolidate a 
wide range of benefits and services at one location.
    Witnesses represented the Disabled American Veterans, 
Paralyzed Veterans of America, Vietnam Veterans of America, The 
American Legion, AMVETS, Veterans of Foreign Wars, Enlisted 
Association of the National Guard, and Mr. Wayne Spruell, 
Acting Deputy Assistant Secretary of Defense for Reserve 
Affairs, Manpower and Personnel. Also appearing were the 
Honorable Preston Taylor, Assistant Secretary of Labor, 
Veterans Employment and Training, accompanied by Mr. Jeffrey 
Crandall, Director of Field Operations, VETS; and Mr. Richard 
Larson, Director for Planning, Policy and Quality, VETS. 
Witnesses noted the necessity for downsizing while maintaining 
core services and continuing oversight of the VETS program. 
USERRA enforcement should remain a prime concern during the 
105th Congress, and the Committee recommends additional 
oversight on this issue. (See Oversight Plan, page 65, 
paragraph 2.)

Second Session

    On May 30, 1996, the subcommittee held an oversight hearing 
on Veterans' Preference, Reduction-in-Force, and the Uniformed 
Services Employment and Reemployment Rights Act (USERRA).
    Congressman John Mica, Chairman of the Civil Service 
Subcommittee, Government Reform and Oversight Committee, 
appeared before the panel to discuss his bill, H.R. 3586, The 
Veterans Employment Opportunities Act of 1996.
    Mr. Jonathan R. Siegel, Associate Professor of Law, The 
George Washington University Law School, testified on the 
impact of the Supreme Court decision in Seminole Tribe of 
Florida v. Florida, No. 94-12 (U.S. Mar. 27, 1996), which held 
that the Commerce Clause of the United States Constitution does 
not empower Congress to abrogate a state's Eleventh Amendment 
immunity by enacting statutes providing for private rights of 
action against states in federal court. Professor Siegel 
testified that this decision may create potential problems for 
USERRA enforcement.
    Representatives of veterans service organizations 
testified, including witnesses from the Veterans Economic 
Action Coalition, The American Legion, the Disabled American 
Veterans, and the Vietnam Veterans of America.
    The Honorable Preston Taylor, Assistant Secretary of Labor, 
Veterans Employment and Training, testified on USERRA 
provisions and the applicability of USERRA to Reserve Component 
personnel employed outside the United States. Assistant 
Secretary Taylor also testified on the impact of the Seminole 
decision. Assistant Secretary Taylor discussed the Atlanta 
regional lead center's (RLC) role in USERRA issues to research 
and provide technical assistance to field offices and provide 
information to the national office in the development of 
policy.
    The Honorable James B. King, Director, Office of Personnel 
Management, testified on veterans employment in the federal 
government. Ms. Celia Dollarhide; Director of VA Education 
Services, addressed H.R. 2851, the proposed changes to VA's 
``two-year rule.''
    Concerns remain about employment of veterans and the 
Committee recommends a thorough review of the VETS-100 form for 
federal contractors. (See Oversight Plan, pages 65-66, 
paragraph 3.)
    On March 7, 1996, the subcommittee held an oversight 
hearing to review the Montgomery GI Bill and entertain 
suggestions on how to increase the buying power of veterans 
education benefits. The subcommittee noted that veterans 
education benefits serve two purposes: first, to increase a 
veteran's earning power through higher education and training 
following service; and second, to provide a recruiting 
incentive.
    Witnesses included U.S. Army Lt. Gen. Samuel E. Ebbesen, 
Deputy Assistant Secretary of Defense for Military Personnel 
Policy; Honorable Al Bemis, Deputy Assistant Secretary for 
Manpower and Personnel, Office of Reserve Affairs; Mr. Charles 
Turpin, U.S. Marine Corps Reserve, Prince George's Community 
College (Chapter 1606 user); Lt. Col. Thomas Adams, American 
University (Active Duty); Ms. Kelly Mayo (University of 
Maryland student with an initial claim concern); Mr. Jim Abell 
(University of Maryland continuing education student); Mrs. 
Noelle Atwell, Veteran Student Services, University of 
Maryland; the Honorable Ray Avent Deputy Under Secretary of 
Veterans Benefits Administration, accompanied by Ms. Celia 
Dollarhide, Director, VA Education Service.
    Witnesses testified that the benefit has failed to keep 
pace with the rapidly escalating cost of tuition, which is 
currently rising at twice the rate of overall inflation. As a 
result, the decline in purchasing power of the Montgomery GI 
Bill may no longer serve the needs of the veteran as a 
readjustment tool, and will ultimately fail to attract a 
sufficiently high quality pool of applicants for the military. 
DOD witnesses stated the current benefit level met the 
services' requirements as a recruiting tool.
    VA was questioned on their policy changes to facilitate 
education administration, and the difficulties they faced in 
the Regional Processing Offices tasked to handle veterans 
education claims. VA witnesses noted initiatives to consolidate 
and automate benefits processing would greatly improve 
performance in the near future. The subcommittee recommends 
continuing review of the progress made by the Education Service 
to improve their delivery of service. (See Oversight Plan, page 
66, paragraph 4.)
    On April 18, 1996, the subcommittee held an oversight 
hearing to review the Transitional Assistance Program (TAP), 
the Homeless Veterans Reintegration Project (HVRP), and 
legislation affecting veterans education services.
    Section 502 of Public Law 101-510 requires the Secretary of 
Labor, in conjunction with the Secretaries of Veterans Affairs 
and Defense, to provide a program of transition assistance, 
including counseling, job search training and information, 
placement assistance and other information and services to 
military personnel and their spouses who are within 180 days of 
separation from active duty.
    The Honorable Carolyn Becraft, Deputy Assistant Secretary 
of Defense, Personnel Support, Families and Education; and the 
Honorable Preston Taylor, Assistant Secretary of Labor for 
Veterans Employment and Training, testified that TAP is a 
success. Both noted that transition assistance is intended to 
be a permanent program to assist departing military personnel.
    Testimony was received from representatives of The American 
Legion, the Disabled American Veterans, the Vietnam Veterans of 
America, the Paralyzed Veterans of America, and the Veterans of 
Foreign Wars. The veterans organizations voiced strong support 
for the program and noted their participation as a transition 
source. The Committee recommends an aggressive review of TAP. 
(See Oversight Plan, page 66, paragraph 5.)

                        Joint Oversight Hearings

    On June 12, 1996, the Subcommittee on Compensation, 
Pension, Insurance and Memorial Affairs, along with the 
Subcommittee on Education, Training, Employment and Housing, 
held a joint oversight hearing on customer service standards at 
the Department of Veterans Affairs and the Veterans' Employment 
and Training Service. The subcommittees' focus was on customer 
expectations with actual service delivered, and the 
organizational measures being undertaken to improve the overall 
quality of service delivery.
    The subcommittees received testimony from the Vietnam 
Veterans of America, and the Disabled American Veterans. Mr. 
Robert Gardner, Chief Financial Officer for the Department of 
Veterans Affairs, and the Honorable Preston Taylor, Assistant 
Secretary for Veterans' Employment and Training also testified.
    The subcommittees expressed concern regarding strategic 
planning and customer service for both the larger agencies 
(Veterans Employment and Training Services) and the smaller 
agencies.
    The veterans service organizations were concerned about 
timeliness of claims and the effects of staff reductions on the 
claims process. The veteran service organizations supported a 
strategic planning process to lead to a more comprehensive, 
multi-year business plan. VA responded that they were working 
on their initial Business Plan, which will serve as the 
Secretary's fiscal year 1998 budget request.
    VETS testified that veterans are the customer and are the 
primary consideration. Much of the testimony was drawn from 
their April 1995 Customer Service Survey, which reflected some 
satisfaction with the customer service performance of the 
agency.
    The Committee remains very concerned about the 
effectiveness of VA's vocational rehabilitation program and its 
interaction with VETS and recommends additional oversight in 
this area. (See Oversight Plan, page 66, paragraph 6.)
    On July 31, 1996, the Subcommittee on Education, Training, 
Employment and Housing of the Committee on Veterans' Affairs 
held a joint oversight hearing with the Subcommittee on 
Government Programs of the Committee on Small Business and 
reviewed veterans small business programs. Testimony was 
received on various issues pertaining to veterans small 
business problems such as a definition of current small 
business rules and how they affect veterans, a review of past 
programs impact on veterans small business, and a review of the 
veracity of small business data.
    Witnesses represented the Veteran's Small Business 
Association, the Concerned Veterans, The American Legion, the 
Association for Service Disabled Veterans, and the William 
Joiner Center at the University of Massachusetts. Staff Sgt. 
Michael Hladky, U.S. Army, testified on his own behalf, and the 
Administration was represented by Mr. Leon Bechet, Deputy 
Administrator for Veterans Affairs. The Committee recommends 
continued oversight in this area. (See Oversight Plan, page 66, 
paragraph 8.)

                    Additional Oversight Activities

First Session

    On April 7, 1995, the subcommittee requested a General 
Accounting Office (GAO) study of the Department of Labor's two 
veterans' employment programs, the Local Veterans Employment 
Representatives (LVERs) and the Disabled Veterans Outreach 
Program Specialists (DVOPS). Very little was known about the 
performance of these state-administered veterans employment 
programs or how they integrated with other veterans' employment 
programs administered by VA. GAO delayed the study until 1996 
due to its pending workload. The study is currently underway. 
(See Oversight Plan, page 65, paragraph 1.)
    On April 19, 1995, the subcommittee requested a GAO 
evaluation of the costs associated with moving the Department 
of Labor's Veterans Employment and Training Service to an 
equivalent position under the auspices of the Secretary of 
Veterans Affairs. GAO responded on April 28, 1996, that the 
request had been forwarded to their Health, Education, and 
Human Services Division. The study is currently underway. (See 
Oversight Plan, page 65, paragraph 2.)
    On June 20, 1995, the Committee transmitted a letter to GAO 
and requested an evaluation of the Office of Personnel 
Management's policies and performance relating to veterans' 
preference hiring practices authorities. GAO replied on July 5, 
1995, that the request was forwarded to the General Government 
Division. Subsequently, a February 1, 1996, GAO report found 
that veterans represented a generally increasing share of the 
new hires made by OPM in recent years. The Committee recommends 
further oversight on this issue. (See Oversight Plan, pages 65-
66, paragraph 3.)
    On July 12, 1995, the subcommittee transmitted a letter to 
the Honorable Deborah R. Lee, Assistant Secretary of Defense, 
and requested the Administration's views on DOD's requirements 
for advance notification of pending military duty contained in 
the Uniformed Services Employment and Reemployment Rights Act 
(USERRA). In an August 24, 1995, letter, DOD stated that DOD 
and DOL were coordinating specific instructions on USERRA 
implementation. The Committee recommends that this issue 
continue to be reviewed. (See Oversight Plan, page 65, 
paragraph 2.)

Second Session

    On January 23, 1996, the subcommittee transmitted a letter 
to VA and requested a review of an allegation concerning VA 
Home Loan origination improprieties made against the Mortgage 
Investors Corporation. As a result, VA issued regulations to 
prohibit lendees from charging more than 2 points on VA-backed 
refinanced loans.
    On January 25, 1996, the subcommittee transmitted a letter 
to VA and requested data on its vocational rehabilitation 
program, including information on cost data, employment history 
of graduating students and history within the vocational 
rehabilitation system. A March 20, 1996, VA letter indicated 
that much of the data requested is no longer available or would 
be very costly to obtain. VA offered an alternative of a random 
sampling from graduates of the program during the last three 
years. The Committee recommends further review of the VA 
vocational rehabilitation program. (See Oversight Plan, page 
65, paragraph 1.)
    On January 29, 1996, the subcommittee transmitted a letter 
to DOL's VETS and requested comments from the Administration 
regarding implementation of veterans priority of services in 
the developing One-Stop Employment Centers. Additional comments 
regarding priority of service under the 1990 Memorandum of 
Understanding (MOU) with the Office of Personnel and Management 
(OPM) were also requested. DOL responded on February 15, 1996, 
outlining how DOL had provided clear guidance and direction to 
State Employment Security Agencies and the VETS staff on their 
responsibilities in implementing the MOU with OPM. The 
Committee recommends further oversight on this issue. (See 
Oversight Plan, page 65, paragraph 2.)
    On April 29, 1996, the subcommittee transmitted a letter to 
Assistant Secretary of Labor Taylor and requested additional 
information from VETS regarding funding for the Homeless 
Veterans Reintegration Projects (HVRP), and the agency's use of 
Job Training Partnership Act (JTPA) money to fund HVRP. The 
agency responded on July 2, 1996, with a list of HVRP projects 
funded by JTPA IV-C funds. Four of 26 applicants were funded at 
a total of $445,950. The Committee recommends continuing 
oversight on the issue because insufficient federal funding 
goes to homeless veterans programs.
    On May 21, 1996, the subcommittee transmitted a letter to 
the Secretary of Labor and requested the Administration's views 
on maintaining veterans priority of service in the evolving 
workforce development plans outlined in H.R. 1617. In response, 
a July 15, 1996, DOL letter stated that the VETS and the 
Employment and Training Administration are working with the 
States to develop complimentary means to ensure that veterans' 
needs are met in the present and future labor market. The 
Committee recommends continued oversight as the employment 
system is restructured. (See Oversight Plan, page 65, paragraph 
2.)
    On May 21, 1996, the Committee transmitted a letter to the 
Secretary of the Army and requested information regarding 
civilian personnel issues as they related to the U.S. Army 
Audit Agency's ``Restructuring 98'' program. Chairman Stump 
expressed concern regarding how veterans' preference issues 
would be implemented during any reduction in force action. The 
agency responded on July 19, 1996, outlining their policy. (See 
Oversight Plan, pages 65-66, paragraph 3.)
    On June 4, 1996, the subcommittee transmitted a letter to 
the Veterans Employment and Training Service and questioned the 
length of time to reach a resolution in the USERRA cases 
involving Ms. Karin Leperi at the Department of Agriculture and 
Mr. Hal Glassman at the Department of Labor. The Department 
responded on June 17, 1996, and met with the subcommittee in an 
executive session to discuss the two cases. The Committee 
recommends continuing oversight on USERRA case processing.
    On July 16, 1996, the subcommittee transmitted a letter to 
VA and requested the Administration's views on Ford Consumer 
Finance Co., a national mortgage lender that had recently 
agreed to settle a class action lawsuit involving alleged 
improper practices. The subcommittee was concerned that 
veterans may have been affected by improper practices. VA 
responded on August 6, 1996, that Ford Consumer Finance Company 
is not a participating VA lender. The Committee therefore 
recommends no further oversight.
    On August 13, 1996, Subcommittee Chairman Buyer transmitted 
copies of statements made by a former Bureau of Prisons 
employee, Mr. Joseph Monsivias, to VETS. The statements alleged 
that his former employer violated the Uniformed Services 
Employment and Reemployment Rights Act. VETS was requested to 
submit their findings and future plans on the case. The Agency 
responded on September 26, 1996, that the case was in the 
process of being referred to the Office of Special Counsel. The 
Committee recommends continued oversight.
    On September 3, 1996, a GAO report, VA Continues to Place 
Few Disabled Veterans in Jobs, found significant shortcomings 
in VA's implementation of the vocational rehabilitation 
program. The Committee recommends further oversight on this 
issue. (See Oversight Plan, page 65, paragraph 1.)
    On October 2, 1996, Chairman Stump transmitted a letter to 
the Secretary of Veterans Affairs regarding the Department's 
compliance with P.L. 103-446 and the proportional distribution 
of McKinney Act funds for homeless veteran service providers, 
and asked for an accounting of the Department's actions. The 
Committee recommends continued oversight.
    On October 21, 1996, the subcommittee transmitted a letter 
to DOL and requested further views from the Administration on 
plans regarding uses of technology for the VETS employment 
system. This request was a follow-up to a hearing held on May 
3, 1995, during which the Secretary noted that such a plan 
would be forthcoming. The Subcommittee Chairman also requested 
views from the Secretary on the current status of the VETS-100 
form, and the approach VETS would be taking to ensure 
compliance with employment requirements outlined in chapter 
4212, title 38 of United States Code. The Committee recommends 
further action on the VETS-100 form. (See Oversight Plan, page 
65, paragraph 1.)
    On October 21, 1996, a joint letter from Chairman Stump and 
Ranking Member Montgomery to the Secretary of Defense requested 
the Secretary's timeline for implementing education program 
changes resulting from the passage of Public Law 104-275. The 
law allows certain active duty members currently participating 
in Chapter 32 VEAP educational program to enroll into the 
Montgomery GI Bill. The law also authorizes certain active duty 
members of the Army and Air National Guard to participate in 
the Montgomery GI Bill. The Committee recommends continuing 
oversight of all education benefits. (See Oversight Plan, page 
66, paragraph 4.)

                           Budget Activities

First Session

    On February 24, 1995, the Full Committee met and Secretary 
of Veterans Affairs Jesse Brown presented the Administration's 
fiscal year 1996 budget request for the Department of Veterans 
Affairs. The Administration's budget proposal of $39.5 billion 
was an increase of $1.3 billion over fiscal year 1995. The 
request contained $16.96 billion for medical care, an increase 
of $747 million over fiscal year 1995, and $17.6 billion for 
the compensation and pension account. The proposal also 
contained an increase for research funding from $252 million in 
fiscal year 1995 to $257 million in fiscal year 1996. The 
Administration's request included an increase in funding for 
major construction from $354 million in fiscal year 1995 to 
$514 million and an increase in funding for minor construction 
from $76 million in fiscal year 1995 to $229 million.
    On March 20, 1995, the Veterans' Affairs Committee 
recommended to the Budget Committee the addition of $105.1 
million in discretionary funds to the amounts proposed by the 
Administration. This amount included an additional $57.5 
million for veterans' medical care and $25 million to improve 
claims processing and counseling for veterans seeking benefits. 
This amount also included $2.6 million for the National 
Cemetery System, $5 million for disabled veterans' vocational 
rehabilitation and an additional $23.1 million for the 
Department of Labor's discretionary funding for the Veterans' 
Employment and Training Service.

    (See the Committee's Report to the Committee on the Budget 
on the Budget Proposed for Fiscal Year 1996, p. 67.)

    Also, on September 28, 1995, the Full Committee voted 21 to 
8 to send its recommendations for federal deficit reduction to 
the Committee on the Budget. The recommendations included 
extensions of current laws, a modest increase in the 
prescription drug copayment schedule, a revision of liability 
under Gardner v. Derwinski, 115 S. Ct. 552 (1994), resulting 
from VA medical treatment, and other deficit reduction 
measures. The Committee approved as part of the recommendations 
a veterans' health care eligibility reform initiative which was 
similar to the eligibility reform later accomplished in the 
Veterans' Health Care Eligibility Reform Act of 1996. The 
recommendations would have resulted in savings of $6.4 billion 
over a seven year period and were incorporated into H.R. 2491, 
the Seven-Year Balanced Budget Reconciliation Act of 1995. (See 
House Report 104-280.) The President on December 6, 1995, 
vetoed the final version of H.R. 2491, the Balanced Budget Act 
of 1995. (See House Report 104-350.)

Second Session

    On March 18, 1996, pursuant to the House requirement that 
all Committees submit their budget recommendations by March 18, 
1996, the Veterans' Affairs Committee recommended to the Budget 
Committee a $39.889 billion budget for the Department. This 
amount included $17.069 billion for medical care, an increase 
of $505 million over the fiscal year 1996 conference level, and 
$57 million over the Administration's request. It also included 
$18.845 billion for the compensation and pension account, an 
increase of $514 million over the fiscal year 1996 conference 
level, and $354 million over the Administration's request. For 
fiscal year 1997, the Committee recommended a $10 million 
increase in funding from $257 million to $267 million for VA's 
research budget. The Committee also recommended increases in 
VA's major and minor construction budgets to $315 million and 
$200 million, respectively.

    (See the Committee's Report to the Committee on the Budget 
on the Budget Proposed for Fiscal Year 1997, p. 99.)

    On March 29, 1996, the Full Committee met and Secretary 
Jesse Brown presented the Administration's fiscal year 1997 
budget request for the Department of Veterans Affairs, which 
had been submitted on March 18, 1996. The Administration's 
budget proposal of $39.3 billion was an increase of $1 billion 
over fiscal year 1996. The request contained $17 billion for 
medical care, an increase of $448 million over the fiscal year 
1996 conference level, and $18.5 billion for the compensation 
and pension account. The proposal also contained a request for 
research of $257 million, the same level as fiscal year 1996. 
The Administration's request included $250 million for major 
construction and $190 million for minor construction.

                           COMMITTEE WEB SITE

    The Committee's web site (http://www.house.gov/va/) became 
active on June 1, 1996. Since its launch, it has been accessed 
over 4,000 times. The site contains 93 documents. The 
categories of documents are: legislative summaries, committee 
reports, hearing transcripts, press releases, committee rules, 
membership lists, hearing schedules, legislative calendar, and 
background on the Committee's jurisdiction. Included in the 
membership list are links to individual Committee members' home 
pages. The jurisdiction page is supplemented by links to other 
committees with jurisdiction over issues of interest to 
veterans.
    The primary focus of the site is on services for veterans. 
Consequently, the site contains links to veterans service 
organization web sites, including The American Legion, Vietnam 
Veterans of America, Disabled American Veterans, Fleet Reserve 
Association, Jewish War Veterans, and the Veterans of Foreign 
Wars. This is supplemented by a listing of government services 
available to veterans over the World Wide Web, such as services 
from the Department of Veterans Affairs, including access to 
The Federal Benefits for Veterans' and Dependents manual, and 
the Veterans' Employment and Training Service of the Department 
of Labor. The site also contains search mechanisms for finding 
all current legislation pertaining to veterans. Finally, links 
are provided to Thomas (legislative information on the 
Internet), and the Senate Committee on Veterans' Affairs.
  OVERSIGHT PLAN OF THE COMMITTEE ON VETERANS' AFFAIRS FOR THE 104TH 
                                CONGRESS

    In accordance with clause 2(d) of Rule X of the House of 
Representatives, the Committee on Veterans' Affairs has adopted 
by resolution of February 14, 1995, its oversight plan for the 
104th Congress.
    This oversight plan is directed at those matters which are 
most in need of oversight within the next two years. The 
committee is cognizant of the requirement that it conduct 
oversight on all significant laws, programs, or agencies within 
its jurisdictions at least every ten years. To ensure 
coordination and cooperation with other committees having 
jurisdiction over the same or related laws, the committee will 
conduct member and staff meetings as necessary with the 
Committee on National Security, the Committee on Economic and 
Educational Opportunities, and the Committee on Government 
Reform and Oversight. Additionally, the committee will explore 
with these committees possibilities for conducting joint 
hearings.
    The committee expects to conduct oversight through a 
variety of sources. They will include existing and requested 
reports, studies, estimates, investigations and audits by the 
Congressional Research Service, the Congressional Budget 
Office, the Office of Technology Assessment, the General 
Accounting Office, and the Offices of the Inspectors General of 
the Departments of Veterans Affairs and Labor. Additional 
sources of information will be veterans service organizations, 
military associations, other interest groups and private 
citizens. A series of joint hearings is scheduled with the 
Senate Committee on Veterans' Affairs at which veterans service 
organizations and military associations will present to the 
committees their national resolutions and agendas for veterans.
    Avenues of oversight will be committee and subcommittee 
hearings; field and site visits by members and staff; and 
meetings and correspondence with interested parties. While this 
oversight plan sets forth the areas in which the committee 
expects to conduct oversight, additional matters may be 
incorporated into the committee's plan as the need arises.

               Subcommittee on Hospitals and Health Care

    1. Major Construction Prioritization and Methodology. Over 
the years it has been difficult to gain an understanding of the 
construction methodology for prioritization of major 
construction projects. The oversight hearing would be used as a 
vehicle for developing legislation that would require the 
Department of Veterans Affairs (VA) to document the specific 
factors used in the determination of project rankings and 
provide a more comprehensive report to Congress on all major 
construction projects. Summer 1995.

    2. Management and Reorganization of Veterans Health 
Administration (VHA). Currently VHA is divided into four 
regions. The Under Secretary for Health has proposed a 
decentralized management structure of from 22 to 28 networks. 
The subcommittee will review the organizational design and 
reporting mechanisms of the proposed reorganization. To be 
included in this review will be an analysis of the potential 
effects of FTEE cuts on streamlining VHA, operating efficiency 
and patient care. Spring 1995.

    3. Enhanced Sharing between the Departments of Defense 
(DOD) and Veterans Affairs. Although the VA and DOD have worked 
closely in some areas, conversations with individuals 
representing both the active military and military associations 
indicate that there are many areas in which closer cooperation 
could result in cost efficiencies and enhanced delivery of 
service to both groups. Areas for consideration include the VA 
pharmacy programs and the potential inclusion of CHAMPUS-
eligible and retirees as part of the eligible dispensing pool, 
as well as expansion of the Asheville Program to areas 
scheduled for base closures. Summer 1995.

    4. State Health Reform Impacts. Although health care reform 
remains an issue within Congress, state health care reform 
appears to have slowed in recent months. The subcommittee will 
examine real and potential impacts of state reform efforts on 
the VA health care system. Spring 1995.

    5. VHA Research Corporations. Under legislation passed five 
years ago, VA was to establish mechanisms to facilitate the 
operation of these corporations under tight fiscal and 
administrative controls. However, management problems have 
surfaced in the operation of these entities. Atlanta and, 
recently, Syracuse are examples of problems. A report to be 
released by the VA on the Syracuse Research Corporation 
outlines several problematic issues. Summer 1995.

    6. Management Information Systems. The VA has developed a 
number of information systems to aid in decision-making. The 
subcommittee will explore the status of various systems such as 
the Decision Support System and other VA information systems to 
assess the VA's direction, potential costs, and long-term goals 
for the development and integration of these systems with other 
potential users, both internal and external to the VA. Winter 
1995.

    7. VA Procurement System. The VA operates a multi-billion 
dollar procurement system that contracts for every item that is 
used within the system. Attempts have been made to modernize 
the VA's procurement practices and allow it to operate with 
efficiencies found in the private sector. The subcommittee will 
examine VA practices and the proposed reorganization of 
acquisition and facilities. Spring 1996.

    8. Gulf War Syndrome (Possible Joint Hearing). The 
Committee will review the progress of VA research efforts on 
this controversial and complex issue. Because of related 
jurisdictions, it is anticipated that a joint hearing with the 
Subcommittee on Compensation, Pension, Insurance and Memorial 
Affairs will be scheduled. Spring 1995, Spring 1996.

    9. Contracting and Niche Marketing. Although the VA can 
contract for specialized medical resources under legislation 
that encourages sharing with other health care providers, this 
legislation is restrictive and does not permit the VA to enter 
into large volume contracts with health care groups. The 
subcommittee will examine the limitations of this legislation 
in light of major changes in the delivery of health services 
and the VA's ability to better utilize the services it 
provides. Fall 1995.

    10. The VA's Role in Long-term Care. The long-term care 
budget is a growing portion of the VA's medical care budget. 
The subcommittee will explore the VA's role and responsibility 
to provide long-term care services to veterans. It will also 
review community alternatives for the provision of less costly 
venues of care. Summer 1996.

    11. Surgical Service Utilization. The VA Inspector General 
has identified utilization and cost problems at certain medical 
centers. The subcommittee will investigate this issue and those 
related to delivery of surgical services in a rapidly changing 
market place. Currently 60 percent of all non-VA surgical 
procedures are performed in the outpatient setting. The VA, on 
the other hand, performs most of its surgical procedures in the 
inpatient setting. Winter 1995.

    12. Drug Management Issues. Drug management practices have 
been the subject of recent VA Inspector General and General 
Accounting Office (GAO) reviews. The subcommittee will explore 
the Consolidated Pharmacy Program and the possibility of 
increased sharing with DOD. It will also include inventory 
controls as part of its review. Summer 1996.

    13. Fee Basis for Service-Connected Veterans. Some veterans 
indicate dissatisfaction with the VHA's operation of the 
program. The subcommittee will review the management and fee 
structure of the program. Spring 1996.

    14. Prosthetics Management and Pricing. The VA is a leader 
in the supply and development of prosthetics. A recent decision 
to adopt Department of Health and Human Services pricing 
policies will add to the cost of VA prosthetics. The 
subcommittee will review the new policies and the cost 
implications for the VA. Winter 1995.

    15. Clinical Guidelines and Measurements of Quality Care. 
The development and use of clinical guidelines have gained 
acceptance in private sector medicine. The subcommittee will 
explore the use of guidelines and their applicability to the 
VA's patient base. The subcommittee will also review the VA's 
progress in the area of developing measurements of quality 
care. Fall 1995.

    16. Ambulatory Care Programming. Trends in medical care 
show rapid transformation of private sector health care into 
managed care with an emphasis upon delivery of services in the 
ambulatory care setting. The subcommittee will review the VA's 
resource allocation process as a potential barrier to change. 
It will also examine policies that negatively impact the VA's 
progress in this area. Fall 1995.

    17. VA Programs for Homeless Veterans. Veterans continue to 
comprise a high percentage of the homeless population. The VA 
now operates several programs for homeless veterans and 
recently completed a summit on the issue. The subcommittee will 
review the effectiveness of VA programs for homeless veterans 
and their interfaces with other public and private/not-for-
profit programs for the homeless. Fall 1995.

 Subcommittee on Compensation, Pension, Insurance and Memorial Affairs

    1. Compensation and Treatment of Persian Gulf War Veterans. 
VA continues to study the possible effects of service in 
Southwest Asia on the health of veterans. VA will begin paying 
compensation and is providing treatment for undiagnosed 
illnesses associated with that service. The hearings will track 
the VA's progress in determining causality and implementing 
Title I of Public Law 103-446. Spring 1995, Spring 1996.

    2. Claims Processing in Veterans Benefits Administration 
(VBA) Regional Offices. VBA is still experiencing significant 
delay in processing veterans claims for benefits at the 
Regional Office level. Hearings will explore VBA attempts to 
improve processing, including "best practices" being used in 
several regional offices as well as central office 
dissemination of these practices. Summer 1995, Spring 1996.

    3. VBA Computer Modernization. VBA is modernizing its 
benefits processing computer system. Questions have been raised 
concerning the use of technology to assist in reducing the 
claims backlog as well as the lack of progress in establishing 
a master veteran record accessible throughout VA. The 
subcommittee will hold a series of hearings which will review 
VBA's three-phase project and progress in developing a master 
veterans record. Summer 1995, Winter 1995, Spring 1996.

    4. Claims Processing at the Board of Veterans Appeals (BVA) 
and Court of Veterans Appeals (COVA). BVA has a large case 
backlog and the decisions of COVA have significant 
administrative and judicial impact on the operation of the 
entire claims processing system. The subcommittee will review 
BVA and COVA procedures and organization to address the 
backlog. Fall 1995, Summer 1996.

    5. Adjudication of Post Traumatic Stress Disorder (PTSD) 
Claims. A statistical analysis indicates there is wide 
variation among VBA Regional Offices in adjudicating PTSD 
claims. VBA has responded by offering additional training to 
its specialists. The subcommittee will review what changes have 
resulted from this approach. Summer 1995.

    6. Implementation of Brown v. Gardner, 115 S. Ct. 552 
(1994). A recent U.S. Supreme Court decision regarding VA 
patients who incur additional disabilities while under VA 
hospital care has created significant fiscal and administrative 
demands upon VA. The subcommittee will review implementation of 
the decision. Summer 1995.

    7. Agent Orange/Ionizing Radiation. There continues to be 
controversy surrounding access to treatment and compensation 
for veterans exposed to these environmental hazards. The 
subcommittee will review VA efforts to determine the effects of 
exposure. Winter 1995.

    8. National Cemetery System (NCS) Operations. NCS faces an 
escalating workload on a flat-line budget. The subcommittee 
will explore the system's capacity to absorb future increases 
in workload and options for ensuring that veterans have the 
opportunity to use their burial benefits. Summer 1996.

    9. VA Insurance Programs. VA operates several life and 
mortgage insurance programs for veterans. Many veterans rely 
upon these programs for their entire insurance needs. The 
subcommittee will review the solvency and operations of the 
programs. Summer 1996.

    10. VA Pension Programs. The subcommittee will explore the 
adequacy of pension benefits and how they relate to other 
disability benefits. Winter 1996.

    11. VA and Veterans Employment and Training Service (VETS) 
Customer Service Standards. Both VA and VETS have developed 
customer service standards. It is anticipated that the 
subcommittee will review the effectiveness of those standards 
jointly with the Subcommittee on Education, Training, 
Employment and Housing. Summer 1996.

      Subcommittee on Education, Training, Employment and Housing

    1. Adequacy of VA's Vocational Rehabilitation and 
Counseling Program; Coordination between the Veterans 
Vocational Rehabilitation and Counseling Service (VRCS) and the 
Veterans Employment and Training Service (VETS). VRCS and VETS 
are charged with assisting veterans and disabled veterans in 
finding employment. Coordination between the two agencies is 
important. The subcommittee will review VRCS and VETS efforts 
as well as the adequacy of the basic vocational rehabilitation 
and counseling program. Spring 1995.

    2. VETS Reorganization; Implementation of the Uniformed 
Services Employment and Reemployment Act (USERRA); and One Stop 
Employment Centers. VETS is reorganizing under the National 
Performance Review. The subcommittee will review VETS 
operations, its implementation of USERRA, and its functional 
roles in the Department of Labor's One Stop Centers to ensure 
continued priority of services to veterans. Spring 1995, Spring 
1996.

    3. Federal Employment of Veterans; Federal Contractor 
Employment of Veterans and its Enforcement by the Office of 
Federal Contract Compliance (OFCCP). Compliance with veterans' 
preference in Federal hiring has been questioned by veterans 
service organizations. The subcommittee will perform a 
comprehensive review of Federal hiring of veterans at all 
levels and functions of the executive, judicial and legislative 
branches. OFCCP is charged with enforcement of veterans hiring 
rules for certain Federal contractors. The subcommittee will 
review OFCCP enforcement activities. Summer 1995, Summer 1996.

    4. Adequacy of the Montgomery GI Bill (MGIB). Education 
costs continue to escalate. The subcommittee will review the 
operation of the MGIB and possible improvements, including a 
review of the functions of state approving agencies. Summer 
1995.

    5. Transition Assistance Programs/Disabled Transition 
Assistance Program (TAP/DTAP) Operations. Continuing military 
downsizing and a tight job market create a need for quality 
transition services for those leaving the military. The 
subcommittee will review TAP/DTAP programs for the various 
military services. TAP/DTAP are programs operated jointly by 
VA, DOL and DOD. Fall 1995, Summer 1996.

    6. Service Member's Occupational Conversion and Training 
Act (SMOCTA). SMOCTA is a joint program using DOD funds and 
administered by DOL and VA to assist in retraining veterans 
whose military occupations have no civilian equivalent. The 
program provides employer incentives to train and retain these 
veterans in long-term jobs. The subcommittee will review the 
program's performance. Winter 1996.

    7. VA and VETS Customer Service Standards (Possible Joint 
Hearing). Both VA and VETS have developed customer service 
standards. It is anticipated that the subcommittee will review 
the effectiveness of those standards jointly with the 
Subcommittee on Compensation, Pension, Insurance and Memorial 
Affairs. Summer 1996.

    8. Small Business Administration (SBA) Programs for 
Veterans. SBA is required to sponsor programs to assist 
veterans in starting up small businesses. The subcommittee will 
explore the agency's performance concerning veterans programs. 
Winter 1996.
 REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS' 
AFFAIRS ON THE BUDGET PROPOSED FOR FISCAL YEAR 1996, SUBMITTED ON MARCH 
                                20, 1995

                 Summary of President's Budget Proposal

    The President's Budget for fiscal year 1996 requests $39.5 
billion in budget authority and $37.9 billion in outlays for 
the Department of Veterans Affairs.
    The requested appropriation for medical care is $16.96 
billion, $747 million higher than the 1995 level.
    Average employment for the Department is projected to meet 
the requirements of the Veterans' Benefits Improvements Act of 
1994 (P.L. 103-446), which specifies that the number of full-
time equivalent positions may not be less than 224,377, unless 
required by reduction in funds or required by a new law.
    The Veterans Health Administration would receive an overall 
increase of 255 FTEE. Employees paid under the medical care 
account are projected to increase by 267 FTEE from the 1995 
level. Personnel under the Medical and Prosthetic Research 
account are projected to remain at the same level as fiscal 
year 1995. And, Medical Administration and Miscellaneous 
Operating Expenses staff would be reduced by 12 FTEE.
    The Veterans Benefits Administration, which processes 
benefit claims and assists veterans in obtaining benefits, 
would lose 188 FTEE, while the Central Office administrative 
staff would be cut by 19 FTEE.
    The National Cemetery System would remain at the fiscal 
year 1995 FTEE level of 1,340.
    The funds requested for Major Construction for VA health 
care facilities rise dramatically from an appropriated level of 
$354 million in fiscal year 1995 to $514 million. The Minor 
Construction account also would increase by $76 million to $229 
million.
    The Administration requests the authorizing committees to 
approve a fiscal year 1996 cost-of-living adjustment for 
compensation recipients of 3.1 percent.
    In addition, the proposal requests legislation to extend a 
number of expiring provisions contained in the Omnibus 
Reconciliation Act of 1993. These items include extension of 
monthly pension limitation for certain recipients of Medicaid-
covered nursing homes; extension of VA authority to verify 
income data with IRS and SSA information; extension of Home 
Loan Guaranty fees; extension of authority to recover costs 
from health insurers for treatment of non-service-connected 
disabilities; and extension of co-payments and per diems for 
medical care. The Administration is also proposing a round down 
of compensation COLAs and reduction by one-half of the COLA for 
old-law DIC recipients and provision of only a 50 percent COLA 
for GI Bill benefits.
    The budget proposal also requests new legislation to repeal 
restrictions on collection of loan guaranty debts and require a 
two percent fee and a ten percent down payment on manufactured 
home loans.
    The proposed legislative changes would reduce outlays by 
approximately $3.1 billion over five years.

     SUMMARY OF RECOMMENDED CHANGES IN THE PRESIDENT'S FY 96 BUDGET     
------------------------------------------------------------------------
        Department of Veterans Affairs            $ (mil)        FTEE   
------------------------------------------------------------------------
Medical Care                                                            
    toward the restoration of ``current                                 
     services''..............................         50             250
    expansion of PTSD, mental health,                                   
     homeless programs.......................          5              25
    state nursing home per diem rates........          2.5              
                                              --------------------------
      Subtotal for Medical Care..............         57.7           275
                                                                        
Research                                                                
    toward the restoration of ``current                                 
     services'' level........................          5                
    in support of health services research                              
     practice parameters.....................          1                
                                              --------------------------
      Subtotal for Research..................          6                
                                                                        
General Operating Expenses                                              
  Compensation, Pension and Education                                   
   Services                                                             
    toward the restoration of ``current                                 
     services'' in the benefits delivery                                
     system..................................         18             220
    disability rating automation in lieu                                
     additional FTEE.........................          2                
  Veterans Services                                                     
    to improve outreach and contact programs                            
     through equipment modernization at up to                           
     15 Regional Offices.....................          5                
  Vocational Rehabilitation                                             
    to address increased workload, decrease                             
     waiting times, and improve management                              
     systems.................................          5             100
                                              --------------------------
      Subtotal for General Operating Expenses         30             320
                                                                        
National Cemetery System                                                
    to keep pace with workload increases,                               
     maintenance and repair projects.........          1              25
    supplies and materials...................          0.6              
    equipment backlog/replacement............          1                
                                              --------------------------
      Subtotal for National Cemetery System..          2.6            25
                                                                        
Major Construction                                                      
    state nursing home priority 1 grants.....          9                
                                              --------------------------
      Subtotal for Major Construction........          9                
                                                                        
           VA Legislative Proposals                                     
Compensation (OBRA extension)                                           
    restore DIC COLA and eliminate round down                           
     of COLA.................................         29.5              
Montgomery GI Bill (OBRA extension)                                     
    restore COLA.............................         12.6              
                                              --------------------------
      Subtotal...............................         42.1              
                                              --------------------------
Total for Department of Veterans Affairs.....        147.2           620
                                              ==========================
------------------------------------------------------------------------


                                                                        
------------------------------------------------------------------------
             Department of Labor                  $ (mil)        FTEE   
------------------------------------------------------------------------
Disabled Veterans Outreach Program                                      
 specialists (DVOP)                                                     
    to maintain DVOPs at congressionally-                               
     mandated levels.........................         14.5           294
Local Veterans' Employment Representatives                              
 (LVER)                                                                 
    to maintain LVERs at congressionally-                               
     mandated staffing levels................          8.6           159
                                              --------------------------
Total for Department of Labor................         23.1           453
                                              ==========================
------------------------------------------------------------------------

                Background and Committee Recommendations

                     VETERANS HEALTH ADMINISTRATION

    The fiscal year 1996 budget request for medical care, while 
attempting to address a strategic redirection of the veterans' 
health care system, provides a minimal level of support with 
which to accomplish this necessary and worthwhile goal. The 
Department will face increasing challenges from the growing 
cohort of rapidly aging veterans and it will also face pressure 
to adjust services and resource levels within a high quality, 
cost-effective budgetary framework.
    The Committee is disappointed that the budget request did 
not include a legislative initiative for veterans' medical care 
delivery reform. The Committee's principal legislative 
objective for this session will be to remove the statutory bias 
toward inpatient care.
    The submission of the fiscal year 1996 budget request finds 
the VA health care system at a point of transition. VA health 
care facilities are reducing the number of operating beds and 
expanding beneficiaries' access to ambulatory care. This 
transformation, although applauded by the Committee, is slow in 
comparison to non-VA and other private sector entities. The 
fiscal year 1996 budget request generally supports and fosters 
a continuation of reforms underway in the VA, while recognizing 
that change must be constructive and not disruptive to the 
veteran patients and the staff who must function in this 
changing environment.
    The budget request recognizes that the VA must expand 
outpatient care delivery, although its fiscal investment in 
that process is relatively modest. Significantly, it allocates 
some $43 million in minor construction funding for outpatient 
improvements and provides for an additional 1,500 personnel 
slots and $108 million targeted to expand the number of unique 
patients the VA projects to treat in fiscal year 1996, 
particularly through provision of primary care services. At the 
same time, the VA is shifting patients from acute inpatient 
care to ambulatory care. Additionally, it is attempting to 
streamline the management of its operations, which are 
projected to reduce staffing of some 3,400 positions and an 
associated $335 million.
    The following sections detail the Committee's specific 
recommendations for the proposed medical care budget for fiscal 
year 1996.

             Toward the restoration of ``current services''

    The proposed budget of $16.961 billion for medical care 
represents an increase of $747 million over fiscal year 1995. 
In the process of negotiating with the Office of Management and 
Budget a budget figure targeted at maintaining the level of 
service delivery from the prior fiscal year, the VA was 
directed to identify $335 million and 3,429 FTEE in savings. 
Those items identified in the budget submission as sources of 
``savings'' can best be described as speculative. Savings can 
only be realized if certain consolidations, integrations, and 
realignments are accomplished rapidly without adding additional 
personnel expenses. It is important to address retraining and 
buyout costs, and increased contracting costs. It is also 
important to avoid constraining workload by establishing 
barriers or discouragements to care.
    It should be noted that site visits to and conversations 
with senior management officials at facilities targeted for 
consolidations found management to be generally supportive of 
the necessary changes. However, for consolidations to realize 
long-term, sustainable dividends, the savings they generate 
must be invested. Investments in high priority program 
initiatives such as DOD sharing and increases in community 
access clinics can assure that VA care is delivered at the 
lowest cost and highest efficiency possible. ``Savings'' should 
not be allowed to evaporate as a result of offsetting budget 
reductions. Such actions serve to penalize those who are 
efficient and negatively affect employee morale.
    The so-called ``management improvement'' savings are 
dependent upon reducing management layers at some VA 
facilities. Although the VA is to be commended in its efforts 
to eliminate bureaucratic levels and streamline non-clinical 
functions, there are costs associated with such an 
organizational transformation. Even if one assumes that the 
consolidations proceed without protracted delays, it is 
unrealistic to expect that organizational challenges such as 
service integrations and reductions of management layers can be 
achieved without costs to veteran patients and those whose 
positions will be eliminated or consolidated. Accordingly, the 
Committee recommends the restoration of $50 million and 250 
FTEE to ensure management redirections do not come at the 
expense of veterans.

    Expansion of PTSD, Mental Health, and Related Homeless Programs

    Adequate funding for mental health programs as one of VA's 
specialized programs is necessary. Over 33 percent of all VA 
inpatients at any given time are service-connected for 
psychiatric problems and 71 percent of veterans who are 
currently 100 percent disabled have diagnoses of schizophrenia 
and manic depressive disorders.
    Significant numbers of veterans turn to the VA for help 
with Post Traumatic Stress Disorder (PTSD), severe psychoses, 
substance abuse and homelessness. This patient population 
represents over 40 percent of the VA's acute care workload. 
Care for these conditions requires a coordinated and integrated 
response of various professional disciplines to effect a 
satisfactory result. The Robert Wood Johnson Foundation, a non-
profit organization which funds medical research, has stated 
that while services exist to care for the general chronically 
mentally ill population, these services are often fragmented or 
unavailable. It is only through a systems approach that 
combines housing and case management that the future of these 
individuals can be significantly improved.
    An array of specialized VA programs address the unique 
characteristics of these patients. Because these specialized 
services offer access to treatment that is often unavailable in 
the private sector, issues such as PTSD, homelessness, and 
substance abuse can be addressed within the context of a 
veteran's military experience. Because these programs often 
serve veterans who have little or no access to mental health 
care outside the VA system, it is important to ensure the 
integrity of these programs for veterans whose treatment 
options are severely limited.
    The VA budget requests $77.5 million for homeless care 
programs, $1.5 million above last year's budget. The total 
funding request, however, remains about 7 percent of the 
President's fiscal year 1996 proposal of $1.2 billion to create 
a single Homeless Assistance Fund program at the Department of 
Housing and Urban Development (HUD). The new grant program 
would consolidate the Stewart B. McKinney Homeless Assistance 
Act programs at HUD into a single fund for grants to states, 
local governments, nonprofit organizations, and Indian tribes. 
Providing the VA with so small a percentage of overall funding 
to assist homeless veterans is difficult to reconcile with the 
fact that veterans account for nearly one-third of the adult 
homeless population.
    Increasingly, these veterans, for whom the VA is a safety 
net, are at risk of homelessness or are homeless. Tuberculosis, 
HIV infection, pulmonary disease, hypertension, alcohol and 
drug abuse, and serious mental illness affect those who are 
homeless at a much higher rate than the general population. VA 
programs targeted at the homeless are critically important 
avenues to reach the multi-faceted problems afflicting this 
troubled population.
    The Committee recognizes the impact and the importance of 
these specialized program areas and recommends an increase of 
$5 million and an additional 25 FTEE to support necessary 
program initiatives. The Committee also encourages other 
committees of Congress with jurisdiction over Federal agencies 
with homeless assistance programs to remain cognizant of and 
act accordingly on the ``Sense of the Congress'' resolution 
contained in The Benefits Improvements Act of 1994, P.L. 103-
446, to ensure that these related homeless assistance programs 
make appropriate referral to homeless veterans to VA facilities 
for health care, counseling, and related assistance.

                   State Nursing Home Per Diem Rates

    Studies conducted by state agencies and the VA have shown 
that state nursing homes are extremely cost-effective; the 
fixed per diem cost to VA for state nursing home care is $35, 
compared to $215 for VA nursing home care. Given VA's 
commitment to expanding its average daily census of nursing 
home patients, state homes provide an attractive, cost-
effective way to achieve this goal. The benefits realized by 
placing veterans in less expensive state homes gives support to 
VA investment in this program. It also offers certain veterans 
the opportunity to obtain care in a facility that may be nearer 
to their homes and families. The Committee recommends an 
additional $2.5 million in support of this program.

                            Medical Research

    Toward the Restoration of ``Current Services'' Level--
Severe budget pressures on overall VA health care have taken 
their toll on the VA research budget. Deteriorating research 
budgets have shaken the research community's confidence in the 
VA as a stable resource that combines clinical practice and 
high-quality investigation.
    Research is a major component of the VA health care system. 
Opportunities to conduct research with direct clinical 
application in the VA attract hundreds of the Nation's most 
qualified physicians to the system each year. Successful VA 
research grant applicants must commit themselves to serving 
five-eighths to full-time in VA medical facilities, with a 
research focus that will directly benefit veteran patients. 
With the recent Administration re-direction of research dollars 
to high priority Persian Gulf research programs, VA's research 
program will shrink by some 60 projects in fiscal year 1996. 
For this reason, the Committee recommends an additional $5 
million to allow the program to remain at or near a current 
services level.
    In Support of Health Services Research Practice 
Parameters--The VA research program supports three distinct 
areas: medical research, rehabilitation research and 
development, and health services research. Of these three, 
health services research is the smallest. In order to identify 
the myriad of services necessary to provide quality care in 
specialty areas, the Committee strongly encourages the Veterans 
Health Administration to examine the body of work published by 
recognized medical professional groups in the field of practice 
parameters. The Committee believes that the use of practice 
parameters for specialized services could improve the quality 
of care, encourage conformity in the definition of specialized 
services, and assure the appropriate utilization of services. 
The Committee recommends an additional $1 million for 
contractual services from the Agency for Health Care Policy and 
Research to develop practice parameters for care of patients 
with specialized medical problems.

                          Medical Construction

    The Major Construction Program--In carrying out its multi-
faceted mission, the VA health care system provides care and 
treatment through a web of facilities ranging from small 
community clinics to complex institutions designed to serve 
veterans' specialized health care needs. Much of that 
infrastructure consists of older facilities, many of which fail 
to meet current expectations of patient privacy, comfort, and 
efficient medical practice.
    Modest VA construction budgets have for years reflected a 
competition among the system's diverse needs for construction 
dollars--modernization of aging facilities, expansion of unmet 
needs for ambulatory care and nursing home care, and new and 
replacement facilities. Available budget dollars have not kept 
pace with the system's construction needs.
    Given the breadth and extent of those needs and the funding 
level available, no single VA construction budget is likely to 
succeed in meeting all or even most observers' views regarding 
what should constitute the Administration's fiscal plan for 
achieving the system's ``highest construction priorities.'' 
VA's proposed fiscal year 1996 major construction budget can 
certainly be seen, however, as an attempt to advance those 
needs. It takes important steps toward improving the conditions 
under which care is provided at a number of VA's older 
facilities which have gone without major construction funding. 
It provides modest funding in support of ambulatory care, an 
area which won substantial funding support in fiscal year 1995.
    While this Committee hopes to continue to foster expansion 
of ambulatory care construction, it does not quarrel with 
deferring further expansion of that construction priority for 
one year in light of the decision to proceed with unique 
projects in Florida and Northern California included in the 
Committee's construction authorization legislation last 
session. In concurring with the need for those projects--unique 
in many respects--this Committee does not intend to signal 
encouragement for future new or replacement hospitals in other 
parts of the country.
    State Nursing Home ``Priority 1'' Grants--The state home 
program greatly enhances VA's extended care workload capacity. 
Under this appropriation, grants are awarded to help states 
acquire or construct state domiciliary and nursing homes for 
veterans. It also provides grants to assist in expanding, 
remodeling or altering existing facilities, including state 
home hospital facilities.
    The Grants to State Extended Care Facilities are beneficial 
not only to the VA, but also to the states. States benefit by 
receiving federal money to add nursing home capacity for state 
residents who have dual eligibility for VA and state programs 
such as Medicaid. Under these grants, states are responsible 
for at least 35 percent of nursing home construction costs. The 
VA also pays a portion of the per diem costs. States can be 
reimbursed through the veteran's Social Security income, which 
provides an extra revenue source to help cover state costs of 
veteran nursing home care.
    Each year the VA receives many more applications for state 
nursing home construction grants than it is able to fund. The 
Independent Budget has strongly recommended substantial 
increases to this appropriation because of its cost-
effectiveness and ability to increase overall nursing home 
placements for the VA.
    In support of this worthwhile program, the Committee 
recommends an additional $9 million to provide funding for all 
current applicants able to qualify as ``priority 1'' grants.

                    VETERANS BENEFITS ADMINISTRATION

                          Entitlement Programs

Compensation and Dependency and Indemnity Compensation
    The Administration requests appropriation of $14.6 billion 
to fund payments of service-connected disability compensation, 
clothing allowances, and dependency and indemnity compensation 
(DIC) during fiscal year 1996.
    The only legislative proposal to enhance compensation 
benefits for veterans or their survivors is a proposed cost-of-
living adjustment (COLA) which the Administration projects 
would be 3.1 percent, at a cost of $340 million in 1996. The 
COLA would be effective on December 1, 1995.
Pension
    The budget requests appropriation of $3.05 billion to fund 
payments of non-service-connected disability pension to needy 
wartime veterans during fiscal year 1996. The budget request 
includes $84.1 million in fiscal year 1996 for a 3.1 percent 
COLA in the indexed non-service-connected pension program, 
based on the anticipated change in the Consumer Price Index.

                       GENERAL OPERATING EXPENSES

              Compensation, Pension and Education Services

    The Administration's fiscal year 1996 budget calls for 
staffing of FTEE in the Compensation, Pension and Education 
Services, at a 1996 level of 4,558 FTEE, unchanged from 1995.
    The ability of the VA to provide timely and quality 
benefits delivery is heavily dependent on a combination of 
proper staffing levels, full funding for computer modernization 
initiatives, training and retention incentives, and inter-
departmental cooperation between the various VA agencies and 
military service departments. The Departments of the Army and 
Navy for example, have now agreed to directly transfer 
veterans' service medical records immediately upon discharge 
from active duty. It should be noted that, in the past, 
expectations of the impact of modernization, in terms of 
improvements in efficiency, have been overstated. Resulting 
productivity cuts in FTEE and funding levels were imposed with 
no review of impact on performance. As a result, the necessary 
levels of fully trained personnel have not been properly 
maintained. In fact, over the past decade the number of trained 
personnel in the adjudication division has declined by 
approximately 40 percent.
    During fiscal year 1994, an average level of 4,558 FTEE 
adjudicated approximately 3.4 million claims. During the same 
year, 3.29 million claims were received in addition to a 
pending workload of 538,000 claims. At the beginning of fiscal 
year 1995, approximately 470,000 claims were pending at the VA. 
The VA projects that the backlog of claims will decrease during 
fiscal year 1996 to 390,000. A major portion of the backlog 
reduction was accomplished through overtime amounting to over 
$7 million. The Committee appreciates the overtime spent to 
reduce the excessive backlog but notes its high cost. While the 
Committee supports the VA management's actions in this regard, 
it expects future improvements in the claims backlog to be 
accomplished through improvements in automation, basic business 
practices and regulatory reform.
    Over the years, inadequate staffing levels and questionable 
mangement practices have played a major role in the decline of 
both the quality and timeliness of claims processing. In fiscal 
year 1994, the average elapsed time between receipt and 
completion of an original compensation claim was 170 days, in 
comparison to the VA's goal of 106 days. In each other type of 
claim, timeliness has improved, but reductions in FTEE levels 
could adversely affect what progress has occurred to date.
    At the end of fiscal year 1994, the payment error rate was 
2.5 percent. Service errors have remained consistently high. At 
the end of fiscal year 1994, this error rate was 3.0 percent. 
Notification accuracy reports show a 5.5 percent error rate. 
These error rates will likely continue in fiscal years 1995 and 
1996.
    At a time when the VA's ability to provide timely and high 
quality services is crucial, a reduction in FTEE for this 
activity is not acceptable. In order to provide sufficient 
resources for the VA to maintain current levels of performance, 
the Committee recommends an additional 220 FTEE above the 
Administration's request. The cost associated with this 
recommendation is $18 million. The Committee also recommends an 
additional $2 million for a pilot program to demonstrate a 
fully automated disability rating and adjudication system, 
using artificial intelligence and expert systems.

                            Support Services

    The Administration's fiscal year 1996 budget reduces 
Support Services by 159 FTEE. There are three operating 
activities within Support Services--administrative, finance, 
and personnel. The Administrative activity provides traditional 
administrative support to all VBA programs. Of the 188 VBA FTEE 
the Administration proposes to cut, this activity would lose 
159 FTEE. Administrative support of the benefit programs is an 
integral part of the overall mission of providing compensation, 
pension, and education benefits to veterans. In view of the 
current state of the Compensation, Pension and Education 
Services, this proposed reduction is disappointing.

            Vocational Rehabilitation and Counseling Program

    Established in Chapter 31 of United States Code, Title 38, 
the Vocational Rehabilitation and Counseling Program (VR&C) 
provides rehabilitation and counseling services for eligible 
veterans, servicemembers, and their dependents. VR&C's primary 
mission is to provide all services and assistance necessary to 
enable service-connected disabled veterans to achieve maximum 
independence in daily living and, to the maximum extent 
feasible, become employable and obtain and maintain suitable 
employment. Additionally, VR&C is authorized to provide 
educational and vocational counseling services to eligible 
active duty members, veterans, and dependents.
    VR&C continues to experience an increase in applications 
for Chapter 31 benefits and educational/vocational counseling. 
This increase is due, at least in part, to the reduction in 
size of the Armed Forces and transition programs designed to 
fully inform separating servicemembers about VA benefits. Under 
the Transition Assistance Program/Disabled Transition 
Assistance Program (TAP/DTAP), counseling and other services 
are provided by the Departments of Veterans Affairs, Labor, and 
Defense to assist separating servicemembers in their transition 
from military service to civilian life. VR&C anticipates that 
Chapter 31 trainees will increase to 48,500, a one percent gain 
over the fiscal year 1995 level of 48,000. Requests for 
educational/vocational counseling are expected to increase to 
23,000 in fiscal year 1996, a two percent increase over the 
1995 level.
    Service-disabled veterans participating in programs of 
vocational rehabilitation proceed through a series of steps, or 
statuses, as they advance through the rehabilitation process. 
Three of these steps provide indicators of service delivery 
timeliness by VR&C staff.
    Step one, ``Applicant Status'', refers to the average 
number of days from the date of receipt of the veteran's 
application to the veteran's first appointment with the VR&C 
counselor. VR&C's goal is to meet with the veteran no later 
than 30 days after receipt of application. Currently, the 
average time spent in ``applicant status'' in fiscal year 1996 
is estimated to be 70 days. Although this is an unacceptable 
waiting period, it is nonetheless a reduction of eight days 
from fiscal year 1995.
    Step two, ``Evaluation and Planning Status'', refers to the 
time during which the veteran participates in a series of 
interviews and tests designed to identify individual strengths 
and weakness. The veteran then selects a viable vocational goal 
and with the VA's assistance, outlines specific services 
required to achieve rehabilitation. VR&C's goal for completion 
of the assessment activity is 30 days. The VA projects that in 
fiscal year 1996, the evaluation status will last 90 days, two 
days longer than in fiscal year 1995. Thus, a service-connected 
disabled veteran who desires to participate under Chapter 31 
will actually begin that program no sooner than five months 
after applying for the benefit.
    Step 3, ``Employment'', refers to the stage when a veteran 
completes the program, which may include training, and is 
determined to be ``job ready''. To ensure stability in 
employment, the veteran must be able to successfully maintain 
this status for a minimum of 60 days after becoming employed. 
VR&C's goal is to place the veteran in employment and progress 
through the employment maintenance period in a range of 90 to 
120 days. However, the VA estimates that the average time spent 
in employment status in fiscal year 1996 will be 196 days. 
Although this is a disappointing level of timeliness, it is a 
reduction of 22 days from fiscal year 1995.
    Despite increased VR&C staffing levels last fiscal year, 
the number of staff still cannot accommodate the workload. 
Accordingly, VR&C has found it necessary to exercise its 
authority to use contract counselors. For instance, the 
``Pending Counseling Psychologist (CP) Workload'' category is 
defined as the number of months necessary to complete all 
pending counseling cases. The VR&C goal is four months. For 
both fiscal year 1995 and fiscal year 1996, the VA projects the 
pending CP workload to be eight months. Vocational 
Rehabilitation Specialists (VRS), who work closely with each 
veteran throughout the rehabilitation period, are projected to 
have an average caseload of 256 in both fiscal year 1995 and 
1996. A VRS caseload of 125 is considered optimal and would 
enable VRS staff to provide the best possible services to 
disabled veterans training under Chapter 31.
    Targets established for workloads and timeliness standards 
clearly cannot be achieved with current staffing levels, and 
the unacceptable quality of service will likely deteriorate 
further until FTEE levels are increased. The following table 
illustrates staffing, workload, and timeliness trends in VR&C:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                                                          1996 (est.)           
                                                   1992      1993      1994       1995                    Goal  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
FTEE Field Staff...............................       693       697       679        674          674           
Veterans in CH. 31 Programs....................    36,548    40,701    44,215     48,000       48,500           
Avg. Days Applicant Status.....................        74        71        78         78           70         30
Avg. Days Evaluation Status....................        74        80        87         88           90           
Avg. Days Employment Status....................       243       243       218        218          196     90-120
Avg. Months Pending Counseling Workload........         7         8         8          8            8           
Avg. VRS Caseload..............................       229       229       242        256          256        125
----------------------------------------------------------------------------------------------------------------

    Vocational rehabilitation is cost effective. Fiscal year 
1994 data shows that the 4,978 veterans who achieved 
rehabilitation had a 415 percent increase in earned income, in 
comparison to earnings prior to entering rehabilitation. This 
results in significant tax revenues and decreased dependence on 
public assistance.
    VR&C's only purpose is to serve disabled service-connected 
veterans. The Committee cannot understand why the VA does not 
accord this program the priority and the resources it clearly 
deserves. The Committee rejects the Administrations proposed 
reduction of FTEE in fiscal year 1996 from 700 to 699. Instead, 
to improve the timeliness of service for disabled veterans in 
vocational rehabilitation programs, the Committee recommends an 
additional $5 million to fund 100 additional FTEE for a total 
of 800 FTEE.

                           Veterans Services

    The President's recommended funding level for the Veterans 
Service Program reduces the fiscal year 1995 level of 1996 FTEE 
by 2 positions.
    Veterans Services (VS) operates through the VA's 58 
regional offices, 15 veterans assistance offices, 172 medical 
centers, 29 outpatient clinics, and 41 outstations. Veterans, 
their dependents, and survivors may visit, write, or call toll-
free for information, advice, and assistance regarding the 
availability of benefits under laws administered by the VA and 
other agencies. Additionally, VS staff provide outreach to 
potential beneficiaries and conduct estate administration 
activities and field examinations for beneficiaries whose 
benefits are paid to fiduciaries.
    In fiscal year 1994, VS had 11.4 million public assistance 
contacts, 9.1 million of which were telephone interviews. 
Additionally, VS staff conducted over 79,000 field 
examinations, 27,653 fiduciary account audits, and 2,772 school 
compliance surveys. Fiscal year 1995 estimates predict 10.9 
million public assistance contacts while fiscal year 1996 
estimates project public assistance contacts numbering 10.9 
million. It should be noted that past budget estimates have 
often been lower than subsequent actual numbers. Accordingly, 
the Committee concluded that initial workload estimates are 
driven by available FTEE rather than by objective expectations 
of contacts.
    The telephone service program is the primary method for 
public access to information. Telephone interviews provide the 
largest volume of contact and the lowest cost per contact. 800-
service lines permit callers outside the local dialing area to 
access benefit information and assistance for the cost of a 
local call. To provide a uniform level of service and equal 
public access to information nationwide, an acceptable grade of 
service (not more than 10 percent blockage) and an acceptable 
quality level for timeliness (not to exceed 10 percent 
abandonment) were established by the VA.
    Traffic studies data in 1993 for 800-service lines, which 
is available for 57 stations served by the 800 toll-free 
network and 27 stations served by local telephone companies, 
shows, however, that VS staff are unable to meet the VA's grade 
and quality service goals. The average blocked call rate was an 
astounding 62 percent. The VA expects the blocked call rate to 
reach 70 percent in 1996. These studies clearly demonstrate 
that, because of inadequate telephone service resulting from 
insufficient equipment and staff, significant numbers of 
veterans seeking information and assistance are not receiving 
the service to which they are entitled.
    Frequently, a telephone call is the veteran's only contact 
with the VA and is the basis for the veteran's judgment about 
the quality of VA services. The blocked call rate is in 
conflict with the VA's announced customer service standards. 
The Committee finds this situation disturbing and expects the 
VA to take whatever administrative steps are necessary to 
reduce the blocked call rate to an acceptable level.
    The downsizing of the Armed Forces continues to generate 
increased requests for information and assistance. 
Additionally, issues which receive wide press coverage, such as 
reports of radiation testing during the 1940s, '50s, and '60s 
and concerns regarding possible illnesses related to service in 
the Persian Gulf, result in significantly increased telephone 
inquiries. In spite of this, recent statistics show a decline 
in the number of telephone interviews conducted. Fiscal year 
1994 statistics show that 9.1 million phone interviews were 
conducted. Fiscal year 1995 and 1996 estimates project that 8.7 
million telephone interviews will be conducted. These 
reductions in contact demonstrate that without adequate 
staffing and equipment, the VS cannot meet customer service 
goals.
    It is important to point out that VS staff are also an 
integral part of the Transition Assistance Program (TAP) and 
the Army Career Awareness Program (ACAP). These programs are 
designed to provide transition assistance to military personnel 
separating from the Armed Forces. In 1994, over 307,411 
servicemembers participated in more than 7,415 group briefings 
conducted by VS staff at military installations. In addition, 
more than 115,000 personal interviews were conducted with 
servicemembers nearing separation. If adequate funding is not 
provided to continue TAP, reduced staffing for other VS 
programs will result in order to operate the high priority 
military outreach services programs.
    The VA is legislatively required to provide outreach 
services. Because Veterans Services (VS) is the primary agent 
for outreach, adequate staffing and funding is essential. The 
implementation of the Administration's recommended reduction in 
FTEE would result in an increase in the current high level of 
unmet needs and demand for basic assistance in obtaining 
benefits. Accordingly, the Committee recommends an additional 
$5 million to improve the telephone system.
    The Committee notes that the President's budget comments on 
the effect of removing the field examiners' exemption from 
overtime pay requirements of the Fair Labor Standards Act. 
Because of this exemption, budget documents state that less VA-
to-veteran outreach will be possible due to the inability to 
work with outreach clients after normal working hours. The 
Committee believes that the VA should consider whether 
administrative adjustments are possible to overcome this 
problem.

                         Loan Guaranty Program

    The VA expects the number of home loan guarantees to 
decrease slightly during fiscal year 1995. This follows a 57 
percent increase in program activity in fiscal year 1994 and a 
44 percent increase in fiscal year 1993. The increased activity 
during those years reflected lower mortgage interest rates, the 
extension of VA home loan eligibility to Selected Component 
Reservists, and renewed borrower interest in refinancing 
existing loans. However, VA statistics for the first quarter of 
fiscal year 1995, indicate a modest trend toward decreasing 
activity. During this quarter, the VA guaranteed 83,000 loans. 
For fiscal year 1994, 602,244 loans were guaranteed and for 
fiscal year 1993, 383,303 loans were guaranteed. This 
anticipated decline in activity is largely attributable to an 
expected downturn in refinancing activity in fiscal years 1995 
and 1996. Fiscal year 1996 workload estimates do, however, 
indicate an increase in construction and valuation activity and 
loan processing. Defaults, foreclosures, and related property 
management activity are projected to decrease.
    Although an increase from the fiscal year 1994 FTEE level 
of 2,004 to a fiscal year 1995 level of 2,042 had been 
projected, the VA's revised estimate shows an FTEE level of 
1,938 in fiscal year 1995. This is a reduction of 66 FTEE from 
the fiscal year 1994 level and a reduction of 107 FTEE from the 
original fiscal year 1995 estimated level. The President's 
budget request for fiscal year 1996 includes a recommendation 
to further reduce Loan Guaranty staffing by 3 FTEE to 1,935. 
Although statistics demonstrate that quality and timeliness of 
the delivery of veterans' housing benefits have been good to 
excellent, the VA must carefully monitor the effect of any 
additional personnel cuts to ensure that the high quality of 
service delivery is not compromised.
    The Committee strongly believes the VA has an obligation to 
assist veteran homeowners avoid foreclosure whenever possible 
and retain the benefits of home ownership. VA Regional Office 
staff located throughout the country have several loan 
servicing options available to assist veteran borrowers, 
including the ability to intervene with the lender on behalf of 
the veteran to work out a realistic repayment plan to reinstate 
the loan. Timely and intensive outreach and loan servicing can 
be an effective way to assist loan guaranty program 
participants to avoid foreclosure. In addition to assisting 
veteran borrowers avoid foreclosure, savings totalling more 
than $200 million have been realized over the last three years 
from loan servicing efforts.
    Currently, each loan service representative is responsible 
for an average of 19 successful interventions, 6.1 refunded 
loans and 7.7 pre-foreclosure sales each year. This saves the 
Government approximately $304,000 per loan service 
representative. The loss of any staff costs the Government 
millions of dollars in additional claim payments and will 
likely result in more property acquisitions.
    The VA has achieved a dramatic reduction in its inventory 
of properties held for six months or more from 10,472 in 1987 
to 3,635 in 1994. The VA has also achieved a decrease in the 
average time a property is held from 6.9 months in 1987 to 5.7 
months in 1993. This has reduced the average loss per property, 
the difference between the acquisition cost and resale price, 
from $4,635 in 1987 to a gain of $1,892 in fiscal year 1994. 
The VA's property management section has been highly successful 
in reducing both inventory and the average time properties are 
held pending resale, while increasing the amount of capital 
investment recovered through resales. The combination of 
staffing reductions with increased property acquisitions could 
reverse these favorable trends. Therefore, the Committee 
supports the Administration's request.

                           Insurance Programs

    Veterans insurance programs provided $25.8 billion in 
coverage to 2.5 million veterans in 1994. Of the VA 
administered insurance programs, Serviceman's Group Life 
Insurance (SGLI), Veterans' Group Life Insurance (VGLI), 
Service-Disabled Veterans Insurance (SDVI) and Veterans 
Mortgage Life Insurance (VMLI) remain open to new issues. SGLI 
and VGLI alone account for 3.2 million policies valued at $481 
million. The VA's insurance programs remain among its most 
trouble-free. The Committee concurs with the administration 
request of 435 FTEE and $1.358 million in budget and 
reimbursement authority for 1996.

                       Board of Veterans' Appeals

    The Administration budget requests an average level of 477 
FTEE and $33,065,000 in support of the operation of the Board 
of Veterans' Appeals (BVA). This reflects an increase of 28 
FTEE and $4,096,000 for fiscal year 1996. The increase is due 
to a number of initiatives, both managerial and legislative, 
which have been developed in the past year to help address the 
Board's growing appeals backlog and deteriorating timeliness. 
Managerial measures included the implementation of new 
performance measurement standards for all BVA counsel, 
limitations on production of certified evidence lists, revised 
BVA decision formats, revised case docketing procedures, 
institution of a temporary hearing moratorium, and continued 
enhancement of automation.
    Legislative initiatives have included enactment of P.L. 
103-271 to provide for single Board member decision-making, and 
P.L. 103-446 to restore equity between salaries of Board 
members and Social Security administrative law judges. P.L. 
103-446 also provided for the establishment of performance 
standards for Board members and gave the Board authority to 
pre-screen appeals so that deficiencies in case records can be 
rectified earlier in the appellate process. These public laws 
have provided a new statutory framework for Board operations. 
During fiscal year 1995, the Board expects to implement an 
organizational realignment on the basis of this new framework 
that should produce further productivity improvements.
    During the first half of fiscal year 1994, 55 percent of 
all appeals to the BVA were being remanded to the regional 
offices for readjudication. At the end of fiscal year 1994, the 
remand rate was 48.3 percent. In fiscal year 1994, the BVA 
reversed 17.5 percent of the cases it received.
    During fiscal year 1995 an average employment level of 449 
FTEE is expected to support the Board's operations. During 
fiscal year 1994, this level was 442. During fiscal year 1994, 
the BVA received 35,465 appeals, in addition to 33,728 appeals 
which were pending at the beginning of the fiscal year. In 
fiscal year 1994, 22,045 appeals were decided by the BVA (down 
from 26,400 in fiscal year 1993), resulting in 47,148 pending 
appeals at the beginning of fiscal year 1995.
    In recent years, the average BVA response time for issuing 
appellate decisions has increased dramatically. In fiscal year 
1992, the average BVA response time was 240 days; in fiscal 
year 1993, it was 466 days; and at the end of fiscal year 1994, 
it was 781 days. The Board projects that by the end of fiscal 
year 1995, the response time will decrease to 745 days, and by 
the end of fiscal year 1996, that level is estimated at 642 
days. Further projections include 28,000 appellate decisions in 
fiscal year 1995. In fiscal year 1996, the BVA anticipates an 
appellate decision production increase to 33,600 with an 
improvement in BVA response time of more than 100 days.
    BVA decision production for the first four months of fiscal 
year 1995 improved by over 100 percent in comparison to the 
same period one year earlier as a combined result of the 
managerial and legislative initiatives described above. Despite 
this improvement, BVA's backlog of appeals continues to grow 
and projected waiting times for decisions on appeals are still 
too long. The Committee will carefully monitor whether 
additional resources are required before the VA's appellate 
timeliness problems can be solved. The Committee concurs in the 
Administration's budget request for the Board.

                     U.S. Court of Veterans Appeals

    The U.S. Court of Veterans Appeals budget for fiscal year 
1996 requests $9,142,000 for Court personnel and operational 
requirements, and $678,000 for its Pro Bono Representation 
Program. This request includes funding for 82 FTEEs, which 
represents a reduction of one (1) FTEE from the fiscal year 
1995 authorized level. The Court has reduced staffing by 
approximately 6 percent since fiscal year 1993, when it had 87 
FTEE.
    The Veterans' Judicial Review Act, P. L. No. 100-687, 
(1988), established the U.S. Court of Veterans Appeals as an 
executive branch court. The Court is empowered to review 
decisions of the Board of Veterans' Appeals and may affirm, 
vacate, reverse or remand such decisions as appropriate. The 
Court has the authority to decide all relevant questions of 
law, to interpret constitutional, statutory, and regulatory 
provisions, and to determine the meaning or applicability of 
the terms of an action by the Secretary of Veterans Affairs. 
The Court also has the authority to compel actions of the 
Secretary that are found to have been unlawfully withheld or 
unreasonably delayed.
    Appeals to the Court come from the pool of cases in which 
the BVA has denied some or all of the benefits sought by the 
claimants. That appellant pool has decreased in size since 
fiscal year 1990 because the BVA has issued fewer decisions in 
recent years. The number of decisions has steadily declined 
from 46,556 decisions in fiscal year 1990 to 22,045 in fiscal 
year 1994. Furthermore, for the fiscal years 1992, 1993, and 
1994, nearly half of the BVA's cases have been remanded to 
regional offices for additional work before they are decided.
    The substantial changes in the BVA's adjudication process 
and its realignment also affect the Court's caseload. The Court 
cites P.L. No. 103-271 (1994), which permits single-member 
decisions on appeals to the BVA and the BVA Chairman's 
estimation of at least a 10 percent increase in productivity, 
as measures which are likely to increase its caseload. 
Consequently, the Court maintains that it is unable to 
accurately predict the fiscal year 1996 caseload or other 
statistical data. In fiscal year 1994, the Court decided 1,264 
cases and reduced its pending caseload from 1,286 at the end of 
1993 to 1,152 at the end of 1994. The Court contends that the 
complexity of its caseload and case-related procedural work has 
more impact on the Court's staffing needs than the size of the 
caseload. Moreover, the Court projects an increase in caseload 
as the result of recent developments such as the U.S. Supreme 
Court decision in Brown v. Gardner, 115 S. Ct. 552 (1994), and 
new authority for compensation of Persian Gulf War veterans.
    The Court also noted in its budget request that the Legal 
Services Corporation (LSC) has included in its budget request 
the amount of $339,000 for the Pro Bono Representation Program. 
If LSC's request is approved, the Committee would support the 
split funding for the Program.
    Finally, the Committee is concerned that while the number 
of appeals filed with the Court has decreased slightly from 
1,265 in fiscal year 1993 to 1,131 in fiscal year 1994, the Pro 
Bono Representation Program's case screening cost per veteran 
has increased by 74 percent from $605.74 per case in fiscal 
year 1993 to $1056 per case in fiscal year 1994. The Committee 
plans to carefully monitor the Court's workload and the cost 
effectiveness of the Pro Bono Representation Program's 
screening process. The Committee supports the Court's budget 
request.

                        National Cemetery System

    A total of 147 cemeterial installations located in 39 
States, the District of Columbia and Puerto Rico, currently 
comprise the National Cemetery System (NCS). Since the system's 
establishment within the VA in 1973, approximately 1,086,000 
decedents have been interred in national cemeteries and 
approximately 5.9 million headstones and markers have been 
furnished.
    In fiscal year 1995, the VA expects to inter the remains of 
70,319 veterans, active duty servicemembers and dependents in 
national cemeteries. In fiscal year 1996, the VA estimates 
72,224 interments. The VA expects to process 346,000 
gravemarker applications in fiscal year 1995 and 340,000 
applications are projected for fiscal year 1996.

Operating Account

    Requested funding for fiscal year 1996 is $75.4 million 
with an estimated 1,340 FTEE available to operate the National 
Cemetery System. According to Independent Budget 
projections, to keep pace with workload increases, maintenance 
and repair projects, uncontrollable miscellaneous expenses, and 
inflation in fiscal year 1996, a budget baseline of $82 million 
and 1,370 FTEE would be necessary.
    The VA estimates that staffing shortages of over 244 wage 
grade FTEE and 41 general schedule FTEE exist in fiscal year 
1996 based on VA-approved methodologies. With this staffing 
shortage, priority is given to timely burial. Enhancements of 
cemetery appearance, such as filling in graves after rains, 
raising and re-aligning headstones, mowing and trimming, 
painting and upkeep of equipment become second in priority. In 
addition, funding for maintenance and repair of the National 
Cemetery System's approximately 400 buildings and 100 miles of 
roads to maintain the infrastructure of the national cemetery 
system remains a critical issue.
    With available funding in fiscal year 1996, the backlog for 
essential operating equipment will increase to $7.7 million. 
The NCS equipment inventory totals more than 8,000 pieces of 
equipment with an estimated value of $23 million. Through an 
extensive maintenance program, this equipment's longevity has 
been extended an average of 5 years beyond its scheduled 
replacement date. However, in many instances, it is no longer 
economical to maintain the equipment. The Committee supports 
the Administration's request but recommends the addition of $1 
million for equipment replacement, and $600,000 for additional 
supplies and materials.

Construction

    The VA's construction needs for new and existing cemeteries 
are addressed through the Major and Minor Construction 
appropriations. NCS has focused construction planning on 1) 
providing new cemeteries in areas of the country with the 
greatest veteran population unserved; 2) extending the life of 
existing cemeteries through grave site development; and 3) 
repairing and maintaining the infrastructure of the system. The 
Major Construction budget for fiscal year 1995 was $5.6 million 
to expand the existing Florida National Cemetery. No new 
cemetery construction is proposed in fiscal year 1996.
    In a 1987 Report to Congress and again in 1994, the VA 
identified the need to open 10 new cemetery sites. One of these 
ten sites, San Joaquin Valley National Cemetery, opened in June 
1992, while a second, located in Seattle, Washington, was 
funded in the fiscal year 1995 budget. To date, four of the 
remaining eight cemetery sites are further along than the 
others. Dallas received design funds in fiscal year 1995 and 
property has been purchased for the Albany site. Chicago and 
Cleveland still require both design and construction funds, if 
progress is to continue.
    Minor Construction projects are those costing less than $3 
million. This permits each VA organizational element to 
prioritize and determine how best to spend these limited 
resources. For the next five years, NCS has identified $90 
million in minor construction projects system-wide, although 
NCS has budgeted only $9.5 million for these projects in fiscal 
year 1996.
    NCS' minor construction program is an on-going, recurring 
effort to maintain national cemeteries at a level befitting 
their stature as national shrines. A more consistent level of 
minor construction funding approaching $20 million, would 
prevent further reallocations of limited minor construction 
funds within the VA and permit NCS to meet its minor 
construction project needs.
    Nationally, the number of interments will continue to 
increase to another annual record of 72,224 per year in fiscal 
year 1996, a 55 percent increase over the fiscal year 1984 
level. Similarly, the number of grave sites maintained is 
estimated to reach 2,147,588 by fiscal year 1996, a 35 percent 
increase over the fiscal year 1984 level. During this same 
period, wage grade FTEE will have increased by 3 percent. 
Because the increase in workload is unmatched by FTEE 
increases, NCS is continuing to lose ground with its increased 
workload.
    Failure to fund NCS at a reasonable level will only 
exacerbate future staffing deficiencies and cause additional 
delays in equipment backlogs at a time when the number of 
interments in the National Cemetery System are projected to 
drastically increase due to an aging veteran population. 
Therefore, the Committee recommends an additional $1 million to 
fund 25 additional FTEE, or a similar amount in additional 
contracting authority.

                 State Veterans' Cemetery Grant Program

    The State Veterans' Cemetery Grant Program makes grants 
available to assist the states to establish, expand, or improve 
state-owned veterans' cemeteries. The State Cemetery Grant 
Program is funded at $1 million for fiscal year 1996. Since its 
establishment in 1980, a total of $40.331 million has been 
obligated through fiscal year 1994. More than 74 grants have 
been awarded to 18 states and Guam. The Committee supports the 
President's request.

                          Department of Labor

               VETERANS' EMPLOYMENT AND TRAINING SERVICE

    Congress has determined that our nation has a 
responsibility to meet the employment and training needs of 
veterans. In order to meet those needs, the Secretary of Labor 
is required to effectively and vigorously implement policies 
and programs which increase opportunities for veterans to 
obtain employment, job training, counseling, and job placement 
services. Such implementation is accomplished through the 
Assistant Secretary of Labor for Veterans' Employment and 
Training (ASVET). The ASVET is the principal advisor to the 
Secretary of Labor with respect to the formulation and 
implementation of all departmental policies and procedures 
which affect veterans.

                  DISABLED VETERANS' OUTREACH PROGRAM

    The Disabled Veterans' Outreach Program (DVOP) was 
established by Congress to provide intensive employment and 
training services to service-connected disabled veterans and 
other veterans in need of job search and placement assistance. 
DVOPs serve as workshop facilitators for the Transition 
Assistance Program (TAP), a 3-day program that provides 
transition counseling, job-search training and information, 
placement assistance, and other information and services to 
servicemembers who are within 180 days of separation from 
active duty. DVOPs develop job and job-training opportunities 
for veterans through contacts with employers. And, further, 
DVOPs provide assistance to community-based organizations and 
grantees who provide services to veterans under other federal 
and federally-funded employment and training programs, such as 
JTPA and the Stewart McKinney Act program for homeless 
veterans.
    Under Section 4103A, Title 38, United States Code, the 
Secretary of Labor is clearly required to annually make 
available for use in each State sufficient funds to support the 
appointment of one DVOP specialist for each of the 6,900 
veterans residing in the State who are either veterans of the 
Vietnam era, veterans who entered active duty as a member of 
the Armed Forces after May 7, 1975, or service-disabled 
veterans. This formula provides an indicator of anticipated 
workload and the number of DVOPs required to provide an 
acceptable level of service to veterans seeking employment 
assistance. DVOPs are located in employment service offices and 
outstation sites such as Department of Veterans Affairs 
regional offices and Vet Centers.
    The Administration's budget includes a request of $83.6 
million for the DVOP program which would support 1,705 DVOPs. 
To meet the congressionally-mandated staffing level of 1,999 
DVOPs in fiscal year 1996, $98.1 million is required. This 
increased number of DVOP staff would facilitate the 
continuation of TAP services without reducing services provided 
to veterans in local employment service offices. Accordingly, 
the Committee recommends that the Department of Labor be 
provided an additional $14.5 million over the level recommended 
by the Administration to fund an additional 294 DVOP positions, 
for a total of $98.1 million.

               LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES

    The Local Veterans' Employment Representative (LVER) 
program was established to functionally supervise the provision 
of job counseling, testing, job development, referral, and 
placement to veterans in local employment services offices. 
LVERs participate in TAP workshops and maintain regular contact 
with community leaders, employers, labor unions, training 
programs, and veterans service organizations in order to keep 
them advised of eligible veterans available for employment and 
training. LVERs also provide labor exchange information to 
veterans and promote and monitor participation of veterans in 
federally-funded employment and training programs. Finally, 
LVERs monitor the listing of jobs by federal contractors and 
subsequent referrals of qualified veterans to these employment 
openings, refer eligible veterans to training, supportive 
services, and educational opportunities, and assist, through 
automated data processing, in securing and maintaining current 
information regarding available employment and training 
opportunities.
    Section 4104(a)(1), Title 38, United States Code, mandates 
that the Secretary of Labor make available funding to support 
the appointment of at least 1,600 full-time LVERs and the 
states' administrative expenses associated with the appointment 
of that number of LVERs.
    The President's budget includes a request of $77.6 million 
to support 1,441 LVERs in fiscal year 1996. In order to meet 
the congressionally-mandated LVER staffing level, the Committee 
recommends that the Department of Labor be provided an 
additional $8.6 million over the level recommended by the 
Administration, to fund 159 additional FTEE, for a total of 
$86.2 million.

 Legislative Proposals and Omnibus Budget Reconciliation Act Extensions

                      BENEFITS PROGRAMS PROPOSALS

    The Committee does not oppose several of the President's 
legislative proposals to extend expiring provisions of the 
Omnibus Reconciliation Act of 1993. They are extension of the 
$90 per month limit on pension benefits to beneficiaries in 
Medicaid funded nursing homes, the Internal Revenue Service and 
Social Security Administration income records matching for 
pension beneficiaries, the two percent fee on no down payment 
housing loans, the VA's revised net value calculation for 
property resale, and the three percent fee for multiple use 
home loans with less than five percent down.
    The Committee also does not oppose the President's new 
legislative proposal of a two percent fee and 10 percent down 
payment on manufactured home loans and will examine the 
restrictions on collection of loan guarantee debts.

                           MONTGOMERY GI BILL

    The Committee is disappointed that the Administration's 
budget includes a proposal to reduce the Montgomery GI Bill 
COLA by one-half, effective October 1, 1995, and to continue 
this reduction for five years.
    The current level of education benefits earned by members 
of our Armed Forces is too low. The average annual cost for 
tuition, room, and board at a public four-year college this 
year is over $6,000, while private institutions average over 
$16,000. The $14,575 basic benefit earned by those who agree to 
serve at least three years on active military duty obviously 
does not cover the costs of schooling. Accordingly, the 
Committee does not wish to see further reduction of the buying 
power of this earned benefit.
    Additionally, the Committee believes this proposal is 
inappropriate because the Administration's budget includes 
funding increases for Pell Grants, Perkins Loans, and the 
National Service program. In contrast, education benefits 
earned by those who volunteer to serve in our nation's armed 
services would be reduced. Educational assistance benefits 
earned through military service should not be reduced while 
education benefits for those who do not serve are increased. 
The Committee does not support a one-half COLA and recommends 
an additional $12.6 million to fund a full 3.1 percent COLA.

               DISABILITY COMPENSATION AND DIC ROUND DOWN

    Payments to disabled veterans and dependents of deceased 
disabled veterans were rounded down in fiscal year 1995 to fund 
disability compensation for Persian Gulf War veterans. 
Acceptance of the President's recommendation to extend the 
rounding down at the present time could result in the unfair 
treatment of veterans in comparison to other COLA recipients. 
Therefore, the Committee recommends an additional $29.5 million 
to fund a full COLA payment to those recipients for fiscal year 
1996.


 REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS' 
AFFAIRS ON THE BUDGET PROPOSED FOR FISCAL YEAR 1997, SUBMITTED ON MARCH 
                                18, 1996


                                                 SUMMARY TABLE:                                                 
                                   ESTIMATES OF COMMITTEE ON VETERANS' AFFAIRS                                  
                                           FOR FISCAL YEAR 1997 BUDGET                                          
                                                 [$ in millions]                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                        Change  
                                                                FY 1995      FY 1996      FY 1997     (Estimates
               Department of Veterans Affairs                   Enacted     Conference   Committee      minus   
                                                                              Action     Estimates   Conference)
----------------------------------------------------------------------------------------------------------------
Veterans Benefits Administration                                                                                
  Compensation and Pensions.................................      $17,627    a $18,331      $18,845         $514
  Readjustment Benefits.....................................        1,287        1,345        1,382           37
  Housing Programs..........................................          675          645          645            0
  All Others................................................           26           25           26            1
                                                             ---------------------------------------------------
  Total, Veterans Benefits..................................       19,616     a 20,346       20,898          552
                                                                                                                
Veterans Health Administration:                                                                                 
  Medical Care..............................................       16,165       16,564       17,069          505
  Medical & Prosthetic Research.............................          252          257          267           10
  MAMOE.....................................................           70           64           66            2
  Health Professional Scholarship...........................           10            0           10           10
                                                             ---------------------------------------------------
  Total, VHA................................................       16,497       16,885       17,412          527
                                                                                                                
Departmental Administration                                                                                     
  Construction, Major Projects..............................          354          136          315          179
  Construction, Minor Projects..............................          153          190          200           10
  Grants & Parking..........................................           69           48           51            3
                                                             ---------------------------------------------------
      Subtotal Construction.................................          576          374          566          192
                                                                                                                
  General Operating Expenses................................                                                    
    VBA.....................................................          676          666          684           18
    General Administration..................................          214          214          217            3
                                                             ---------------------------------------------------
      Subtotal GOE..........................................          890          880          901           21
                                                                                                                
  National Cemetery System..................................           73           73           80            7
  Office of Inspector General...............................           32           31           32            1
                                                             ---------------------------------------------------
      Subtotal NCS and OIG..................................          105          104          112            8
                                                                                                                
                                                             ---------------------------------------------------
  Total, Departmental Administration........................        1,571        1,358        1,579          221
                                                             ---------------------------------------------------
                                                                                                                
Total, Department of Veterans Affairs.......................      $37,684    a $38,589      $39,889       $1,300
                                                             ===================================================
                                                                                                                
----------------------------------------------------------------------------------------------------------------
a Reflects $681.6 million supplemental appropriation for compensation benefits mainly due to COLA increase      
  (Public Law 104-57).                                                                                          

                BACKGROUND AND COMMITTEE RECOMMENDATIONS

                     Department of Veterans Affairs

                     VETERANS HEALTH ADMINISTRATION

    The Committee begins its consideration of a fiscal year 
1997 budget for medical care at a time that VA medical care 
funding for the duration of fiscal year 1996 is not yet 
assured.
Veterans' Medical Care
    Despite funding uncertainties, the VA health care system is 
undergoing a strategic redirection. Changes are occurring at 
all levels, ranging from reorganization of its ``headquarters'' 
and regional offices to a far-reaching decentralization. An 
organization which has long attempted to be a hierarchical, 
centralized system of decision-making and operations is being 
transformed into a more functionally integrated and 
decentralized management entity. Re-engineering principles have 
been applied to identified patient referral networks resulting 
in the management consolidation of 17 VA medical centers. The 
transformation is not simply organizational. It is changing the 
way the VA delivers health care to veterans.

    An illustration of the Department's emphasis upon improved 
service-delivery is its expansion of ambulatory care through 
the use of primary care teams. The VA estimates that nearly 45 
percent of its patients have been assigned to primary care 
teams and aspires to 100 percent assignment of patients as a 
goal for fiscal year 1997. This can be accomplished through the 
expansion of telephone triaging systems and through the 
expanded use of primary care providers which would include 
greater reliance upon family practice physicians, nurse 
practitioners, physician assistants and other health care 
extenders. The pace of change to expanded ambulatory care will 
differ among VA facilities due to facility missions, patient 
population, geographic location and availability of trained 
ambulatory care providers, but the Committee is encouraged to 
learn that the VA will attempt to meet this goal to have all of 
its patients assigned to primary care services by the end of 
this calendar year.

    Mirroring changing practice patterns in the community, 
ambulatory care has become increasingly important in VA health 
care delivery. Since 1985, VA outpatient visits have increased 
40 percent, from 19.6 million to 27.5 million. During the same 
period, the VA has reduced the number of hospital beds it 
operates by 35 percent, from 78,357 to 50,788 and hospital 
discharges have dropped during that period from more than 1 
million to just under 874,000. Although the VA has made 
significant progress in this area, it should consider 
opportunities for further bed closures, where possible.

    As the VA moves toward managed care, these principles 
should also be applied to behavioral sciences programs and the 
delivery of mental health care. The VA should promote greater 
reliance upon outpatient care and look toward reduction of 
lengths of stay for certain psychiatric diagnoses, where 
appropriate.

    The newly implemented network structure, the Veterans 
Integrated Service Network (VISN), should provide the VA with a 
blueprint for further streamlining and improved service-
delivery. The VA's new networks are expected to be agents of 
change, replacing the individual medical center as the basic 
budgetary and planning unit of health delivery and function. 
The challenge is to manage that change so ``restructuring'' 
efforts do not compromise patient care. It is the Committee's 
view that medical care funding should continue at a level in 
fiscal year 1997 which allows the VA to continue its shift 
toward less costly and more efficient ambulatory care while 
maintaining the quality of care it delivers to eligible 
veterans. A substantial increase in funding above the level of 
the fiscal year 1996 conference report is needed, however, to 
enable the VA to make the positive changes needed to ensure the 
integrity of the VA health care system for current and future 
veteran patients. The Committee recommends a Medical Care 
funding level for fiscal year 1997 of $17 billion, $500 million 
above the conference report level.

    The VA has instituted substantial change even as it has 
reduced medical care staffing. Since 1993, the VA has reduced 
that staffing by some seven thousand positions. At the same 
time as the VA has been closing hospital wards and increasing 
its capacity to provide ambulatory care, the health care 
profile of the veteran population is changing. The veteran 
population is rapidly aging and declining. From 1996 until 
2000, the number of veterans who are 65 and older will increase 
3.3 percent, from 9 million to 9.3 million and the number who 
are 85 and older will increase 63 percent from 259,000 to 
422,000. However, during this period the total number of 
veterans will decline from 26 million to 24 million.

    Older veterans require more care and care that is more 
costly. While the VA has taken important steps to expand its 
ambulatory care capacity to treat its patients, the VA has not 
aggressively expanded programs needed by elderly, chronically 
ill populations, particularly programs which represent 
alternatives to institutionalization.

    In addition to VA's important role in serving a growing 
population of aging veterans, the Congress has increasingly 
looked to the VA to respond to the large numbers of veterans 
among the nation's homeless. To illustrate the scope of that 
problem, a national survey conducted by the Department and 
published last month shows that of the more than 29,700 
veterans hospitalized on September 30, 1995 by the VA, 6,880 
(23 percent) had been homeless at the time of their hospital 
admission; of those, 4,164 (14 percent) resided in shelters, 
the streets, or similar circumstances, and the remainder were 
temporarily ``doubled up'' with family or friends. Among the 
heralded homeless programs the VA has mounted or administered 
since 1987, there has been considerable community interest in 
and support for a grant program authorized by Congress in 
Public Law 102-590. Competitive grant awards (and per diem 
payments to grantees) under that initiative enable public, 
nonprofit and private organizations to establish new programs 
targeted to treatment, rehabilitation or other assistance for 
homeless veterans. The Committee recommends that an additional 
$5 million be dedicated to this grant and per diem program.

    The Congress has expected much from the VA health care 
system. The VA, in turn, must be given resources sufficient to 
meet its many responsibilities. The imperative of reaching a 
balanced budget lends weight to the importance of continued 
efforts to streamline and reduce unnecessary expenditures. 
Eligible veterans are owed, at least, a continuation of the 
level of services the VA has been providing them. (In that 
regard, the Committee continues to place a high priority on the 
enactment of legislation to reform provisions of law governing 
eligibility for VA care.) At the same time the Committee 
expects further system adjustments to remedy the relative 
imbalance in resource distribution among VA health care 
facilities. This maldistribution of resources was highlighted 
in a February 1996 GAO report, Facilities' Resource Allocations 
Could Be More Equitable.
Medical Research
    Research has been a major component of the VA health care 
system. Opportunities to conduct research with direct clinical 
application have attracted exceptional physicians to VA 
employment each year. Successful VA research grant applicants 
must commit themselves to serving five-eighths to full-time in 
VA medical facilities, with a research focus that will directly 
benefit veteran patients. However, budget levels which fail to 
keep pace with the increased costs of conducting research 
effectively shrink the number of new research proposals which 
can be funded, regardless of scientific merit. Funding 
uncertainties have shaken the confidence of clinician-
researchers in the VA as a stable environment in which to 
combine a clinical practice with high-quality investigation. 
The potential loss of, or inability to recruit, such physician-
researchers would be felt in the quality of care the VA 
delivers.

    The VA research program is not only valuable to the VA, but 
is also unique in its ability to leverage its funding support 
several-fold. VA researchers have historically competed very 
successfully for grant support from other funding sources, 
ranging from the National Institutes of Health to drug 
companies. If real spending power for VA research were to 
decline (as would occur, for example, simply in freezing an 
existing spending level), the VA could lose several times that 
amount and with it the augmented care afforded veteran-
patients.

    The Committee believes research initiatives directed toward 
patient-centered clinical research, cooperative studies 
utilizing combined therapies for the treatment of AIDS, and an 
increased focus on outcomes research are areas that not only 
will benefit veterans but could have wide application to 
provision of cost-effective care in both the public and private 
health arenas. The VA, because of its aging and special 
populations, should also consider in its overall research 
efforts the evaluation of emerging technologies in the field of 
cancer research such as radioimmunodetection (RAID) and 
radioimmunotherapy (RAIT).

    In light of budgetary constraints, the Committee looks 
forward to the recommendations of the recently established VA 
Research Realignment Advisory Committee which has been charged 
with conducting a comprehensive review of the veteran research 
program. For these reasons, the Committee recommends for fiscal 
year 1997 an additional $10 million above the fiscal year 1996 
conference report level of $257 million to allow the program to 
remain at or near a current services level.
Major Medical Construction
    In carrying out its multi-faceted mission, the VA provides 
care and treatment through networks of facilities which range 
from small community clinics to complex institutions designed 
to serve veterans' specialized health care needs. Much of its 
infrastructure consists of older facilities, many of which fail 
to meet current expectations of patient privacy, comfort and 
efficient medical practice.

    Modest budgets for major VA construction have for years 
reflected a competition among the system's diverse needs for 
construction dollars--modernization of aging facilities, 
expansion of unmet needs for ambulatory care and nursing home 
care and new and replacement facilities. Available budget 
dollars have not kept pace with the system's construction 
needs, but the Committee believes that VA construction planning 
should be strengthened and integrated with VISN planning and 
operations. The Committee continues to support legislation 
which, in the case of projects that would expand ambulatory 
care capacity, would raise from $3 million to $5 million the 
current limit on a minor construction project. Given the 
importance of ambulatory care projects and other facility 
renovations, the Committee recommends a minor construction 
level of $200 million.

    The Major Construction budget should receive funding at a 
level which would allow the Department to address the most 
serious needs, especially projects which improve ambulatory 
care capacity, upgrade patient environment, and remedy seismic 
problems. Thus, the Committee recommends a major construction 
funding level of $300 million.

    Looking beyond fiscal year 1997, as the VA moves 
increasingly into managed care and away from bed based care, 
the Committee expects the VISN Directors to play a pivotal role 
in the development of strategic plans to address the future 
construction planning needs of the system. This should be 
accomplished for the fiscal year 1998 Construction Budget.

    In highlighting the role of construction funding in 
assuring the provision of needed care to veterans, the 
Committee underscores as well the importance of the State home 
construction program. In providing construction funding for up 
to 65 percent of the cost of high-priority projects, VA grant 
support helps assure that the States can be effective partners 
in providing critically needed long-term care capacity for our 
nation's aging veterans. The Committee recommends $50 million 
in funding for this program.

                    VETERANS BENEFITS ADMINISTRATION

    The Veterans Benefits Administration (VBA), which processes 
benefit claims and assists veterans in obtaining benefits, is 
currently beginning a restructuring program to streamline its 
operations. The VBA estimates savings will amount to 470 FTEE 
and $60 million over six years. The Committee encourages those 
efforts.
Entitlement Programs
    Compensation and Dependency and Indemnity Compensation.--
The Committee supports a cost-of-living adjustment (COLA) for 
compensation and Dependency and Indemnity Compensation 
recipients based on the COLA calculation for Social Security 
recipients.

    Compensation & Pension Service.--The ability of the VA to 
provide timely and quality benefits delivery is heavily 
dependent on a combination of proper staffing levels, full 
funding for computer modernization initiatives, training and 
retention incentives, and inter-departmental cooperation 
between the various VA agencies and military service 
departments. Over the past decade the number of trained 
personnel in the adjudication division has declined by 
approximately 40 percent.

    The VA is making progress in the direct acquisition of 
service records from the Armed Forces immediately following 
separation. The computer modernization project has been subject 
to significant internal and external scrutiny and the Committee 
is hopeful that progress will continue. However, the Committee 
remains concerned about the VA's ability to procure and 
modernize its benefits information management system without 
significant outside assistance. The Committee is also concerned 
about the VA's management structure which does not have the 
effect of placing overall authority for all the VA computer 
programs in one individual. The VA has yet to demonstrate that 
internal changes will ensure modernization is pursued in an 
efficient and effective manner and in a way that will ensure 
maximum interface between VBA and VHA information systems. 
Without a significant improvement in communications, the 
benefits delivery system will not operate efficiently.

    During fiscal year 1995, an average level of 4,558 FTEE 
adjudicated approximately 2.5 million benefit claims. During 
the same year, VBA received 2.4 million claims. At the 
beginning of fiscal year 1995, approximately 385,000 claims 
were pending at the VA. The VA projects that the backlog of 
claims will decrease during the current fiscal year to 352,000. 
In past years, the VA has used significant overtime to reduce 
the claims backlog. The Committee appreciates the amount of 
overtime spent to reduce the excessive backlog but notes the 
high cost associated with such management practices. While the 
Committee supports the VA management's actions in this regard, 
it expects future reductions in the claims backlog to be 
accomplished through improvements in automation, basic business 
practices and regulatory reform. The Committee notes that the 
VA predicts a claims processing productivity loss of about 16 
percent with a decrease in work hours of less than 8.4 percent 
as a result of the government shutdown and inclement weather.

    Due to Congressional concern regarding the timeliness of 
claims processing, Public Law 103-446 established the Veterans 
Claims Adjudication Commission to make recommendations on ways 
to improve the entire adjudication system. The Committee has 
received the Commission's initial findings and looks forward to 
its final recommendations. The Committee intends to move 
vigorously, in concert with the VA, to improve the system.

    At the end of fiscal year 1995, the payment error rate was 
2.6 percent. Service errors also remained consistently high at 
3.0 percent in fiscal year 1995. Notification accuracy reports 
show a 4.8 percent error rate. These error rates are likely to 
continue through the current fiscal year and into fiscal years 
1997 and 1998.

    At a time when the VA's ability to provide timely and high 
quality services is crucial, a reduction in FTEE for fiscal 
year 1997 beyond that accomplished through restructuring for 
modernization is not acceptable. The Committee also recommends 
an additional $2 million for a pilot program to demonstrate a 
fully automated disability rating and adjudication system, 
using artificial intelligence and expert systems.

    Vocational Rehabilitation and Counseling Program.--The 
Vocational Rehabilitation and Counseling Program (VR&C) 
provides rehabilitation and counseling services for eligible 
veterans, servicemembers, and their dependents. VR&C's primary 
mission is to provide all services and assistance necessary to 
enable service-connected disabled veterans to achieve maximum 
independence in daily living and, to the maximum extent 
feasible, become employable and obtain and maintain suitable 
employment. Additionally, VR&C is authorized to provide 
educational and vocational counseling services to eligible 
active duty members, veterans, and dependents.

    VR&C continues to experience a high volume in applications 
for Chapter 31 benefits and educational/vocational counseling. 
This is due, at least in part, to the reduction in size of the 
Armed Forces and transition programs designed to fully inform 
separating servicemembers about the VA benefits. Under the 
Transition Assistance Program/Disabled Transition Assistance 
Program (TAP/DTAP), counseling and other services are provided 
by the Departments of Veterans Affairs, Labor, and Defense to 
assist separating servicemembers in their transition from 
military service to civilian life. Requests for educational/
vocational counseling are expected to increase to 23,000 in the 
current fiscal year, a two percent increase over the 1995 
level.

    Despite increased VR&C staffing levels in the last fiscal 
year, the number of staff still cannot accommodate the 
workload. Accordingly, VR&C has found it necessary to exercise 
its authority to use contract counselors. For instance, the 
``Pending Counseling Psychologist (CP) Workload'' category is 
defined as the number of months necessary to complete all 
pending counseling cases. The VR&C goal is four months. For 
fiscal year 1996, the VA projected the pending CP workload to 
be eight months. Vocational Rehabilitation Specialists (VRS), 
who work closely with each veteran throughout the 
rehabilitation period, are projected to have an average 
caseload of 256 in fiscal year 1996. A VRS caseload of 125 is 
considered optimal and would enable VRS staff to provide the 
best possible services to disabled veterans training under 
Chapter 31.

    VR&C's primary purpose is to serve service-connected 
disabled veterans. The Committee has previously stated and 
reiterates that it cannot understand why the VA does not accord 
this program the priority and the resources it clearly 
deserves. Should the Administration propose reductions in FTEE, 
the Committee would reject any such proposal. Targets 
established for workloads and timeliness standards obviously 
cannot be achieved with current staffing levels, and the 
unacceptable quality of service will likely deteriorate further 
until FTEE levels are increased. Therefore, the Committee 
recommends an additional $4.5 million for fiscal year 1997 to 
fund an additional 86 FTEE for a total of 800 FTEE.

    Education Service.--VA's Education Service is responsible 
for several programs, most notably the Montgomery GI Bill 
(MGIB) which provides education assistance benefits to 
veterans, active duty and National Guard and Reserve personnel.

    Consolidation of education claims processing at four 
Regional Processing Offices (RPO) is nearly complete. However, 
while fully supportive of the VA's efforts to streamline 
education operations, the Committee is concerned about the 
growing backlog of education claims at some RPO's. Further, the 
VA proposes to move the entire Education Service headquarters 
staff from Washington to St. Louis, a move the Committee feels 
would have a highly negative impact on program management and 
policy development. The Committee recommends funding education 
program FTEE at a level which would accommodate a four percent 
increase in workload for fiscal year 1997, but does not support 
funds for movement of central office staff to St. Louis.
General Operating Expenses
    The General Operating Expenses account funds both VBA and 
the VA's Central Office. VBA administers a broad range of non-
medical benefits to veterans, their dependents, and survivors 
through 60 regional offices or medical and regional office 
centers. General Administration includes most of the central 
office functions located in Washington, DC. The Committee 
recommends for 1997 an appropriation of $901 million, an 
increase of $21 million above the 1996 level. Included in the 
$21 million increase is the Committee's recommendation that $3 
million be specifically ear-marked for a Survey of Veterans to 
allow the VA to continue its series of surveys aimed at 
delineating the characteristics of the veteran population. 
Other surveys were conducted during the time periods of 1978, 
1979, 1988, and 1993. The data collected from these surveys is 
extremely useful not only to the VA but to numerous other 
agencies and research groups. The Survey of Veterans is the 
only source of data-specific information on VA medical users 
and provides a snapshot profile of the veteran population for 
longitudinal comparisons.

                       Board of Veterans' Appeals

    The Board of Veterans' Appeals (BVA) continues to 
experience significant difficulties meeting the production 
levels needed to reduce the nearly 60,000 case backlog of 
appeals. At the VA's request, the 103rd Congress provided 
several new management tools to the Board as a means to 
increase productivity. In fiscal year 1995, the BVA made 28,195 
decisions. Unfortunately, 13,402 of those decisions were 
remands back to the regional offices. The BVA predicted that it 
will produce 32,250 decisions in the current fiscal year, but 
may fall short due to the recent government shutdown and bad 
weather.

    Clearly, production trends are improving at the BVA, but 
the BVA's estimated 675 days required to process a claim at the 
Board in fiscal year 1996 is unacceptable, and is not likely to 
improve noticeably in the near future. It is also clear that 
absent a marked decline in appeals from regional office 
decisions and/or a reduction in administrative requirements, 
the Board in its current form and scope of responsibility 
cannot manage the workload.

    The BVA states that cases wait only a day or two for a 
Board member decision once the staff attorneys have completed 
their work preparing the case. Therefore, it appears that a 
significant delay in the process is at the staff attorney 
level, and not at the Board decision level. The Committee 
supports additional FTEE for staff attorneys from redirected 
funding so that casework may be completed in a more expeditious 
manner.

                        NATIONAL CEMETERY SYSTEM

    Currently, 148 cemeterial installations located in 41 
states, the District of Columbia and Puerto Rico comprise the 
National Cemetery System (NCS). Since NCS's establishment, 
approximately 2.1 million decedents have been interred in 
national cemeteries and approximately 6.2 million headstones 
and markers have been furnished.

    Between fiscal years 1995 and 2010, the veteran population 
will decrease by six million (23 percent). As a result, NCS 
faces an increasing workload at least through fiscal year 2008. 
During these years, approximately 7.5 million members of the 
World War II generation will pass away. In fiscal year 1995, 
the VA predicted that 515,000 veterans would die. In fiscal 
year 2008, that number is projected to increase to 620,000. 
Similarly, interments in national cemeteries, including 
eligible dependents, will increase from 73,600 in fiscal year 
1997 to 104,000 in fiscal year 2008. NCS must have both human 
and material resources to accommodate this increase.

    In the current fiscal year, the VA expects to inter the 
remains of approximately 72,000 veterans, active duty 
servicemembers and dependents in national cemeteries. The VA 
expects to process 310,000 gravemarker applications in fiscal 
year 1996 and 340,000 applications are projected for fiscal 
year 1997.
Operating Account
    To keep pace with increasing workloads, maintenance and 
repair projects, equipment backlogs, supplies and materials, 
and uncontrollable miscellaneous expenses, funding should be 
increased above the fiscal year 1996 spending level, which was 
the same as the fiscal year 1995 level. The Committee 
recommends $80 million for fiscal year 1997 and an additional 
60 FTEE.

    The VA estimates that staffing shortages in excess of 242 
wage grade FTEE and 38 general schedule FTEE will exist in 
fiscal year 1997. Because of this staffing shortage, 
enhancement of cemetery appearances, such as filling in graves 
after rain storms, raising and realigning headstones, mowing 
and trimming grass and painting and maintenance of equipment, 
has become second in priority at NCS and first priority has 
been given to timely burials. In addition, funding for 
maintenance and repair of the National Cemetery System's 
approximately 400 buildings and 100 miles of roads which are 
essential to maintain the infrastructure of the cemetery system 
remains a critical issue.

    The NCS equipment inventory includes more than 8,000 pieces 
of equipment with an estimated value of $23 million. Through an 
extensive maintenance program, this equipment's longevity has 
been extended an average of five years beyond its scheduled 
replacement date. In many instances, however, it is no longer 
economical to maintain the equipment. With funding that was 
available in this fiscal year, the backlog for essential 
operating equipment will increase to approximately $9 million. 
The Committee recommends an additional $4 million for equipment 
and $1 million for additional supplies and materials such as 
fertilizer.
Construction
    The VA's construction needs for new and existing cemeteries 
are addressed through the Major and Minor Construction 
appropriations. NCS has focused construction planning on 
providing new cemeteries in areas of the country with the 
greatest veteran population unserved, extending the life of 
existing cemeteries through grave site development, and 
repairing and maintaining the infrastructure of the system.

    In a 1987 Report to Congress and an update in 1994, the VA 
identified the 10 geographic areas of the United States in 
which the need for additional burial space for veterans was 
greatest. One of the ten, San Joaquin Valley National Cemetery, 
in northern California, opened in 1992, while a second, located 
near Seattle, Washington, was funded with $10,665,000 in fiscal 
year 1995. Construction for the new Tacoma National Cemetery, 
in Washington, has already begun. The fiscal year 1996 budget 
requested $5.6 million to develop continued burial capacity at 
the Florida National Cemetery, which has the highest growth 
rate of any cemetery in the system.

    Dallas received design funds in fiscal year 1995, but still 
requires construction funds if progress is to continue. 
Proposed cemetery projects at Albany, Chicago, and Cleveland 
still require both design and construction funds to proceed. 
Funding of $1.4 million for the design of Chicago, $1 million 
for design of Albany, and $1 million for ``various station 
design'' is included in the yet to be enacted fiscal year 1996 
VA-HUD Appropriations bill. The Committee strongly supports 
additional major construction funds at a level to allow NCS to 
remain on schedule for opening the four cemetery projects by 
2000.

    Minor Construction projects are those costing less than $3 
million. For the next five years, NCS has identified $90 
million in system-wide minor construction projects, however, 
NCS budgeted only $9.5 million for these projects in the 
current fiscal year. The Committee recommends $20 million in 
minor construction funding for fiscal year 1997, which would 
prevent further reallocations of limited minor construction 
funds within the VA and permit NCS to meet its minor 
construction project needs.
Full Time Employee Equivalents (FTEE)
    The NCS's workload per FTEE continues to grow. Nationally, 
the number of interments will continue to increase to another 
annual record of approximately 73,600 per year in fiscal year 
1997. Similarly, the number of grave sites maintained is 
estimated to reach 2,153,588 in fiscal year 1997. However, the 
wage grade FTEE have increased only 2.1 percent since 1984. 
Because the increase in workload is unmatched by FTEE 
increases, the NCS is continuing to lose ground relative to 
overall system maintenance. This results in a decrease in the 
appearance and overall condition of the entire system.

    The NCS provides national shrines honoring all those who 
served in uniform and should be maintained as places of high 
honor, dignity and respect. Failure to fund the NCS at a 
reasonable level will only exacerbate future staffing 
deficiencies and cause additional growth in equipment backlogs 
at a time when the number of interments in the National 
Cemetery System are projected to increase drastically due to an 
aging veteran population. Therefore, the Committee recommends 
an additional $2.5 million to fund 60 additional FTEE for 
fiscal year 1997, or a similar amount in additional contracting 
authority.
State Veterans' Cemetery Grant Program
    The State Veterans' Cemetery Grant Program makes grants 
available to assist the states to establish, expand, or improve 
state-owned veterans cemeteries. The State Cemetery Program is 
funded at $1 million for fiscal year 1996. Since its 
establishment in 1980, $40.8 million has been obligated through 
fiscal year 1995. More than 94 grants have been awarded to 18 
states and Guam. The Committee recommends continued funding of 
this program at a level to satisfy all requests ready for 
federal funding in fiscal year 1997 at $1 million.

                     U.S. Court of Veterans Appeals

    The Veterans' Judicial Review Act, P.L. No. 100-687, 
(1988), established the U.S. Court of Veterans Appeals (the 
Court) as an executive branch court. The Court is empowered to 
review decisions of the Board of Veterans' Appeals and may 
affirm, vacate, reverse or remand such decisions as 
appropriate. The Court has the authority to decide all relevant 
questions of law, to interpret constitutional, statutory, and 
regulatory provisions, and to determine the meaning or 
applicability of the terms of an action by the Secretary of 
Veterans Affairs. The Court also has the authority to compel 
actions of the Secretary that are found to have been unlawfully 
withheld or unreasonably delayed.

    In past years, funding for the Court has included resources 
for the Pro Bono Representation program. This program is 
designed to provide representation to otherwise unrepresented 
veterans whose appeals to the Court appear to have sufficient 
merit under law and warrant the Court's attention.

    Despite the fact that the Court has indicated it does not 
wish to have the program funded from its resources, the 
Committee is fully supportive of the Pro Bono program and 
believes that, if it is to continue in fiscal year 1997, the 
program should be funded within the Court's budget.

                          Department of Labor

               Veterans' Employment and Training Service

    Congress has determined that our nation has a 
responsibility to meet the employment and training needs of 
veterans. To meet those needs, the Secretary of Labor is 
required to effectively and vigorously implement policies and 
programs which increase opportunities for veterans to obtain 
employment, job training, counseling and job placement 
services. Such implementation is accomplished through the 
Assistant Secretary of Labor for Veterans' Employment and 
Training (ASVET). The ASVET is the principal advisor to the 
Secretary of Labor with respect to the formulation and 
implementation of all departmental policies and procedures 
which affect veterans.
Disabled Veterans' Outreach Program
    The Disabled Veterans' Outreach Program (DVOP) was 
established by Congress to provide intensive employment and 
training services to service-connected disabled veterans and 
other veterans in need of job search and placement assistance. 
DVOPs serve as workshop facilitators for the Transition 
Assistance Program (TAP), a 3-day program that provides 
transition counseling, job-search training and information, 
placement assistance and other information and services to 
servicemembers who are within 180 days of separation from 
active duty. DVOPs develop job and job-training opportunities 
for veterans through contacts with employers. DVOPs also 
provide assistance to community-based organizations and 
grantees who provide services to veterans under other federal 
and federally-funded employment and training programs, such as 
the Job Training Partnership Act and the Stewart McKinney Act 
program for homeless veterans.

    Under section 4103A, title 38, United States Code, the 
Secretary of Labor is required to annually make available for 
use in each State sufficient funds to support the appointment 
of one DVOP specialist for each of the 6,900 veterans residing 
in the State who are either veterans of the Vietnam era, 
veterans who entered active duty as a member of the Armed 
Forces after May 7, 1975, or service-disabled veterans. This 
formula provides an indicator of anticipated workload and the 
number of DVOPs required to provide an acceptable level of 
service to veterans seeking employment assistance. DVOPs are 
located in employment service offices and outstation sites such 
as Department of Veterans Affairs regional offices and Vet 
Centers. The Committee supports full funding for the 
statutorily mandated 2,008 FTEE.
Local Veterans' Employment Representatives
    The Local Veterans' Employment Representative (LVER) 
program was established to functionally supervise the provision 
of job counseling, testing, job development, referral and 
placement to veterans in local employment services offices. 
LVERs participate in TAP workshops and maintain regular contact 
with community leaders, employers, labor unions, training 
programs and veterans service organizations in order to keep 
them advised of eligible veterans available for employment and 
training. LVERs also provide labor exchange information to 
veterans and promote and monitor participation of veterans in 
federally-funded employment and training programs. Finally, 
LVERs monitor the listing of jobs by federal contractors and 
subsequent referrals of qualified veterans to these employment 
openings, refer eligible veterans to training, supportive 
services, and educational opportunities, and assist, through 
automated data processing, in securing and maintaining current 
information regarding available employment and training 
opportunities.

    Section 4104(a)(1), title 38, United States Code, mandates 
that the Secretary of Labor make available funding to support 
the appointment of at least 1,600 full-time LVERs and the 
states' administrative expenses associated with the appointment 
of that number of LVERs. The Committee recommends funding for 
fiscal year 1997 to meet the Congressionally mandated LVER 
staffing level.
National Veterans Training Institute
    The National Veterans Training Institute (NVTI) is operated 
under contract by the University of Colorado at Denver and 
provides basic and advanced instruction in veterans employment 
programs and services. Because this is the only source of 
formal training for federal and state employees for veterans 
employment programs, NVTI is vital to the success of those 
programs. The Committee fully supports a $3 million funding 
level.
             STATISTICAL DATA--WAR VETERANS AND DEPENDENTS

                          (As of July 1, 1995)

                     American Revolution (1775-1784)

Participants.....................................................290,000
Deaths in service..................................................4,000
Last veteran died Apr. 5, 1869..................................Age 109.
Last widow died Nov. 11, 1906....................................Age 92.
Last dependent died Apr. 25, 1911................................Age 90.

                         War of 1812 (1812-1815)

Participants.....................................................287,000
Deaths in service..................................................2,000
Last veteran died May 13, 1905..................................Age 105.
Last widow died June 28, 1936................................Age unknown
Last dependent died Mar. 12, 1946................................Age 89.

                     Indian Wars (Approx. 1817-1898)

Participants.....................................................106,000
Deaths in service..................................................1,000
Last veteran died June 18, 1973.................................Age 101.

        Veterans and Dependents on Compensation and Pension Rolls

Surviving spouses......................................................3
Children...............................................................2

                         Mexican War (1846-1848)

Participants......................................................79,000
Deaths in service.................................................13,000
Last veteran died Sept. 3, 1929..................................Age 98.
Last widow died June. 20, 1963...................................Age 89.
Last dependent died Nov. 1, 1962.................................Age 94.

        Veterans and Dependents on Compensation and Pension Rolls

Surviving spouses....................................................475
Children..............................................................28
Veterans..............................................................29

                          Civil War (1861-1865)

                              (Confederate)

Participants..................................................*1,000,000
Deaths in service...............................................*133,821
Last Confederate veteran died Mar. 16, 1958.....................Age 112.

                                 (Union)

Participants...................................................2,213,000
Deaths in service................................................364,000
Last Union veteran died Aug. 2, 1956............................Age 109.

        Veterans and Dependents on Compensation and Pension Rolls

Surviving spouses......................................................2
Children..............................................................22

                    Spanish-American War (1898-1902)

Participants.....................................................392,000
Deaths in service.................................................11,000
Last veteran died Sept. 10, 1992................................Age 106.

        Veterans and Dependents on Compensation and Pension Rolls

Surviving spouses..................................................1,131
Children.............................................................425

                         World War I (1917-1918)

Participants...................................................4,744,000
Deaths in service................................................116,000
Living veterans#.............................................13,000

        Veterans and Dependents on Compensation and Pension Rolls

Parents................................................................4
Surviving spouses.................................................78,909
Children...........................................................8,295
Veterans...........................................................2,838

               World War II (Sept. 16, 1940-July 25, 1947)

        Participants.............................................a 
                                                              16,535,000
Deaths in service................................................406,000
       Living veterans.........................................b c 
                                                               7,433,000

        Veterans and Dependents on Compensation and Pension Rolls

Parents............................................................6,019
Surviving spouses................................................327,885
Children..........................................................22,128
Veterans.........................................................960,910

              Korean Conflict (June 27, 1950-Jan. 31, 1955)

       Participants............................................a d 
                                                               6,807,000
Deaths in service.................................................55,000
       Living veterans.....................................b c e i 
                                                               4,499,000

        Veterans and Dependents on Compensation and Pension Rolls

Parents............................................................3,782
Surviving spouses.................................................71,616
Children...........................................................5,317
Veterans.........................................................290,380

                 Vietnam Era (Aug. 5, 1964-May 7, 1975)

      Participants...............................................d 
                                                               9,200,000
Deaths in service................................................109,000
       Living veterans.....................................b e h i 
                                                               8,273,000

        Veterans and Dependents on Compensation and Pension Rolls

Parents............................................................9,425
Surviving spouses.................................................90,683
Children..........................................................18,807
Veterans.........................................................766,393

                  Persian Gulf War (Aug. 2, 1990-date)

      Participants...............................................f 
                                                               3,700,000
  Deaths in service..............................................g 
                                                                   6,526
      Living veterans..........................................h i 
                                                               1,450,000

        Veterans and Dependents on Compensation and Pension Rolls

Parents..............................................................263
Surviving spouses..................................................2,636
Children...........................................................4,103
Veterans.........................................................134,376

                America's War Totals Through July 1, 1995

Participants##......................................f 41,746,000...
       Deaths in service.........................................g 
                                                               1,087,526
Living war veterans...........................................20,169,000
Living ex-servicemembers......................................26,198,000

     Total Veterans and Dependents on Compensation and Pension Rolls

    Parents......................................................l 
                                                                  23,406
     Surviving spouses...........................................m 
                                                                 612,743
    Children.....................................................k 
                                                                  70,501
       Veterans..................................................j 
                                                               2,668,576

                               __________

# Living veterans does not include World War I veterans with 
military service in other eras.
## Persons who served in more than one war period are counted only 
once.
* Authoritative statistics for Confederate forces not available. 
Estimated 28,000 Confederate personnel died in Union prisons.
** Children connotes a minor or a helpless adult.
a Includes 1,476,000 who served in World War II and the Korean 
conflict.
b Includes 217,000 who served in World War II, the Korean conflict, 
and the Vietnam era.
c Includes 518,000 who served in both World War II and the Korean 
conflict.
d Includes 887,000 served in the Korean conflict and the Vietnam 
era.
e Includes 303,000 who served in both the Korean conflict and the 
Vietnam era.
f Thru end of December 1995.
g During fiscal years 1991 thru 1995 for Persian Gulf War.
h Includes 244,000 who served in both Persian Gulf War and the 
Vietnam era.
i Includes small number who served in the Persian Gulf War, Vietnam 
era, and the Korean conflict.
j Includes 513,644 peacetime veterans with service between January 
31, 1955, and August 5, 1964; peacetime veterans with service beginning 
after May 7, 1975, and all other peacetime periods; 5 World War I 
Retired Emergency Officers and 1 Peacetime Special Act.
k Includes 11,374 children of deceased peacetime veterans.
l Includes 3,913 parents of deceased peacetime veterans.
m Includes 39,403 surviving spouses of deceased peacetime veterans.

NOTE: Figures on the number of living veterans reflect final 1990 Census 
data and include only veterans living in the U.S. Detail may not add to 
total due to rounding.
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