[House Report 107-804]
[From the U.S. Government Publishing Office]



                                                 Union Calendar No. 505

107th Congress, 2d Session -  -  -  -  -  -  -  -  -  - House Report 107-804

                           ACTIVITIES REPORT

                                 of the

                     COMMITTEE ON VETERANS' AFFAIRS

                        HOUSE OF REPRESENTATIVES

                      ONE HUNDRED SEVENTH CONGRESS

                               __________

                             first session

                        Convened January 3, 2001

                      Adjourned December 20, 2001

                             second session

                       Convened January 23, 2002

                      Adjourned November 22, 2002

                                     



 January 2, 2003--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpr.gov  Phone: toll free (866) 512-1800; (202) 512ï¿½091800  
Fax: (202) 512ï¿½092250 Mail: Stop SSOP, Washington, DC 20402ï¿½090001

                                     

                                     

                                     

                                     

                     COMMITTEE ON VETERANS' AFFAIRS

               CHRISTOPHER H. SMITH, New Jersey, Chairman

BOB STUMP, Arizona                   LANE EVANS, Illinois
MICHAEL BILIRAKIS, Florida           BOB FILNER, California
FLOYD SPENCE, South Carolina \3\     LUIS V. GUTIERREZ, Illinois
TERRY EVERETT, Alabama               CORRINE BROWN, Florida
STEVE BUYER, Indiana                 COLLIN C. PETERSON, Minnesota \1\
JACK QUINN, New York                 JULIA CARSON, Indiana
CLIFF STEARNS, Florida               SILVESTRE REYES, Texas
JERRY MORAN, Kansas                  VIC SNYDER, Arkansas
J.D. HAYWORTH, Arizona \2\           CIRO D. RODRIGUEZ, Texas
HOWARD P. (BUCK) McKEON, California  STEPHEN F. LYNCH, Massachusetts 
JIM GIBBONS, Nevada                  \4\
MICHAEL K. SIMPSON, Idaho            RONNIE SHOWS, Mississippi
RICHARD H. BAKER, Louisiana          SHELLEY BERKLEY, Nevada
ROB SIMMONS, Connecticut             BARON P. HILL, Indiana
ANDER CRENSHAW, Florida              TOM UDALL, New Mexico
HENRY E. BROWN, Jr., South Carolina  SUSAN A. DAVIS, California \4\
JEFF MILLER, Florida \5\
JOHN BOOZMAN, Arkansas \6\

           Patrick E. Ryan, Chief Counsel and Staff Director

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

    \1\ April 26, 2001--Rep. Collin C. Peterson resigned from the 
Committee to serve on the Permanent Select Committee on Intelligence.
    \2\ June 20, 2001--Rep. J.D. Hayworth resigned from the Committee 
to serve on the Committee on Resources.
    \3\ August 16, 2001--Rep. Floyd Spence died.
    \4\ November 7, 2001--Rep. Stephen F. Lynch and Rep. Susan A. Davis 
were appointed to the Committee.
    \5\ November 8, 2001--Rep. Jeff Miller was appointed to the 
Committee.
    \6\ December 4, 2001--Rep. John Boozman was appointed to the 
Committee.

                                     


                                     


                                  (ii)


                                     
?

                               __________

                         SUBCOMMITTEE ON HEALTH

                     JERRY MORAN, Kansas, Chairman

CLIFF STEARNS, Florida,              BOB FILNER, California
HOWARD P. (BUCK) McKEON, California  RONNIE SHOWS, Mississippi
JIM GIBBONS, Nevada                  SHELLEY BERKLEY, Nevada
MICHAEL K. SIMPSON, Idaho            CIRO D. RODRIGUEZ, Texas
RICHARD H. BAKER, Louisiana          LUIS V. GUTIERREZ, Illinois
ROB SIMMONS, Connecticut             VIC SNYDER, Arkansas
ANDER CRENSHAW, Florida              STEPHEN F. LYNCH, Massachusetts
HENRY E. BROWN, Jr., South Carolina
JEFF MILLER, Florida
JOHN BOOZMAN, Arkansas
                               __________

                        SUBCOMMITTEE ON BENEFITS

                  MICHAEL K. SIMPSON, Idaho, Chairman

JACK QUINN, New York                 SILVESTRE REYES, Texas
ANDER CRENSHAW, Florida              CORRINE BROWN, Florida
CHRISTOPHER H. SMITH, New Jersey     LANE EVANS, Illinois
JEFF MILLER, Florida                 SUSAN A. DAVIS, California
                               __________

              SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

                     STEVE BUYER, Indiana, Chairman

BOB STUMP, Arizona                   JULIA CARSON, Indiana
MICHAEL BILIRAKIS, Florida           BARON P. HILL, Indiana
TERRY EVERETT, Alabama               TOM UDALL, New Mexico

                                     

                                     

                                     

                                     

                                 (iii)

  
?

                                     

                            Committee Staff

           Patrick E. Ryan, Chief Counsel and Staff Director

             Charles M. Durishin, Democratic Staff Director

                Kingston E. Smith, Deputy Chief Counsel

  Arthur K. Wu, Deputy Staff Director/Staff Director, Subcommittee on 
                      Oversight and Investigations

        John M. Bradley, Staff Director, Subcommittee on Health

   Geoffrey K. Collver, Democratic Counsel, Subcommittee on Benefits

 Veronica Crowe, Professional Staff Member, Subcommittee on Oversight 
                           and Investigations

              Peter A. Dickinson, Communications Director

                  Bernadine N. Dotson, Office Manager

  Susan C. Edgerton, Democratic Staff Director, Subcommittee on Health

       Darryl W. Kehrer, Staff Director, Subcommittee on Benefits

 Sarah Keller-Likins, Democratic Executive Assistant, Subcommittee on 
                                 Health

 Elizabeth A. Kilker, Democratic Executive Assistant, Subcommittee on 
                                Benefits

          Steven R. Kirkland, Director of Information Systems

             Summer L. Larson, Staff Assistant, Legislative

Ruth J. Mahnken, Democratic Professional Staff Member, Subcommittee on 
                      Oversight and Investigations

   Mary Ellen Mc Carthy, Democratic Staff Director, Subcommittee on 
                                Benefits

 Mary Stevens McDermott, Administrative and Financial Assistant/Chief 
                                 Clerk

   Jonathan M. McKay, Staff Assistant, Subcommittee on Oversight and 
                             Investigations

 Paige E. McManus, Professional Staff Member, Subcommittee on Benefits

               Jeanne M. McNally, Legislative Coordinator

       Thomas A. O'Donnell, Democratic Professional Staff Member

      Devon E. Seibert, Staff Assistant, Subcommittee on Benefits

  Leonard A. Sistek, Jr., Democratic Staff Director, Subcommittee on 
                      Oversight and Investigations

            Tanya J. Skypeck, Staff Assistant, Front Office

    Deborah A. Smith, Democratic Administrative Assistant/Executive 
        Assistant, Subcommittee on Oversight and Investigations

                    Jeremiah B. Tan, Printing Clerk

     Stacy H. Zelenski, Research Assistant, Subcommittee on Health

                                  (v)

  
                          LETTER OF SUBMITTAL

                              ----------                              

                          House of Representatives,
                            Committee on Veterans' Affairs,
                                    Washington, DC, January 2, 2003

Hon. Jeff Trandahl,
Clerk, House of Representatives,
Washington, D.C.

    Dear Mr. Trandahl:
    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.

                                      Christopher H. Smith,
                                                           Chairman
                                FOREWORD

                              ----------                              

    With renewed emphasis on security following the heinous 
terrorist attacks of September 11th, the role of America's 
servicemen and women has returned to the spotlight. In the 
107th Congress, this led to a renewed focus upon the debts and 
obligations our Nation owes to military veterans.
    The House Committee on Veterans' Affairs took historic 
steps in the 107th Congress to ensure that 25 million living 
veterans, including 16 million war veterans, and their 
survivors are receiving the benefits and services they have 
earned through their service. Over the past two years, the 
Committee has worked to expand the scope and improve the 
efficiency of veterans' benefits and services.
    Specifically, the Committee focused upon:
     Providing comprehensive and timely health care to 
all eligible veterans;
     Properly compensating disabled veterans and their 
survivors;
     Strengthening and expanding veterans' education 
and vocational training programs;
     Ending the scourge of homelessness among our 
veterans;
     Reforming veterans' job training and placement 
programs;
     Investing in medical research to benefit veterans 
and homeland security; and
    Ensuring that future veterans' health is properly 
protected while on active duty.

    The Committee pursued these goals through three primary 
activities: the budget and appropriations process; amending 
existing statutes and enacting new legislation; and 
investigating and overseeing the operation of the Department of 
Veterans Affairs and other federal veterans' programs.

    Budget for Veterans Programs.--At the start of the 107th 
Congress, the Committee conducted a complete review of the 
budgetary requirements of the Department of Veterans Affairs 
(VA) and developed a series of recommendations for funding 
increases in a number of vital program areas. The most critical 
need for increased discretionary funding was the VA medical 
care account. From 1995 to 2000, the number of unique patients 
in the VA health care system rose dramatically from 
approximately two million to four million veterans. This rapid 
influx of new patients--in part due to the opening of hundreds 
of new outpatient clinics across the country, as well as VA's 
generous prescription drug benefits--had produced an enormous 
strain on VA's ability to provide both timely and comprehensive 
medical care.
    For fiscal year 2002, the Administration requested a $1.1 
billion increase in VA medical care in order to meet the 
growing demand. After conducting a series of hearing in January 
and February, and receiving testimony from both VA and veterans 
service organizations, the Committee recommended an increase of 
$2.1 billion for VA medical care for fiscal year 2002.
    Overall, the Committee recommended $53.5 billion for the 
Department of Veterans Affairs for fiscal year 2002, which 
provided an increase of $2.1 billion over fiscal year 2001 for 
discretionary programs and $300 million in budget authority to 
fund an increase in the Montgomery GI Bill (MGIB).
    Among the specific components of the Committee's budget 
recommendation was an additional $141 million for programs 
serving the chronically mentally ill; $88 million for programs 
for veterans in need of long-term care; $75 million to hire 
staff to reduce the time it takes to see a VA physician; $100 
million to cover increased pharmacy costs; $68 million for 
higher emergency care costs, $23 million to restore spinal-cord 
injury treatment capacity; $30 million for enhancing programs 
serving homeless veterans; and $30 million for medical and 
prosthetic research to enable the VA to maintain its research 
into diseases that affect the veteran population and attract a 
new generation of researchers.
    Congress ultimately adopted a budget that increased VA's 
health care spending authority by $1.7 billion, and fully 
accommodated the proposed increases for the Montgomery GI Bill.
    The Committee recommended that Congress enhance VA's budget 
request for fiscal year 2003 with $1.1 billion more than the 
President requested in order to sustain VA health care for 
increased enrollment of Priority 7 veterans, those who have no 
service-connected disability and whose incomes are above 
poverty levels. The House agreed with the Committee's 
recommendation, rather than with an Administration proposal for 
a new $1,500 deductible for Priority 7 veterans.
    The Committee also recommended a funding increase of $150 
million above the Administration's proposal to meet statutory 
obligations for new programs approved by Congress and enacted 
into law during the past few years, including long-term care 
for older veterans and immediate assistance to homeless 
veterans. Further, the Committee recommended an additional $200 
million to strengthen the VA's security preparedness and role 
in homeland security.
    Congress ultimately agreed with the Committee's 
recommendation to fund Priority 7 health care and an overall 
increase in VA health care funding of $2.6 billion.

    Legislation.--Improvement of the Montgomery GI Bill, with 
the goal of increasing both its utility and utilization rates, 
was a top legislative priority of the Committee in the 107th 
Congress. With spiraling higher education and specialized 
training costs eroding the value of the MGIB benefit, the 
Committee proposed a three-year plan to increase the benefit.
    The Committee's proposed MGIB increase become the 
centerpiece of a comprehensive veterans' benefits law, Public 
Law 107-103, the Veterans Education and Benefits Expansion Act 
of 2001. This legislation authorized more than $3.1 billion 
over five years to expand and increase educational, housing, 
burial and disability benefits. Signed by President Bush on 
December 27, 2001, Public Law 107-103 provided increases in the 
MGIB college education benefit that will by October 1, 2003, 
have boosted current benefit levels 46 percent, from $672 to 
$985 per month for veterans enlisted for three or more years. 
Over a two year period, Public Law 107-103 will have increased 
the total MGIB educational benefit for qualified veterans from 
$24,192 to $35,460. It also increased monthly benefits for 
veterans with two-year enlistments by 56 percent over two 
years, from $546 to $800 per month, and increased monthly 
Survivors' and Dependents' Educational Assistance program 
payments from $608 to $670 per month for full-time, $456 to 
$503 per month for three-quarter-time, and $304 to $345 per 
month for half-time studies.
    Other provisions of Public Law 107-103:
     Allow veterans enrolled in academically-
intensive, short-term, high-cost programs, such as certified 
network engineering, to ``accelerate'' their MGIB benefits by 
receiving up to 60 percent of their total benefit upfront when 
they first enroll in the course;
     Restore lost MGIB benefits for reservists and 
National Guard members called up to active duty;
     Increase VA guaranteed home loans from a maximum 
mortgage of $203,000 to $240,000;
     Increase Specially Adapted Housing grants for 
severely disabled veterans from $43,000 to $48,000;
     Increase the Automobile and Adaptive Equipment 
grant for severely disabled veterans;
     Increase burial and funeral expense benefits by 
25 percent and doubles burial plot allowances;
     Make type II Diabetes a service-connected 
condition for Vietnam veterans exposed to Agent Orange; and
     Add undiagnosed conditions, such as fibromyalgia, 
chronic fatigue syndrome and chronic multi-symptom illnesses to 
list of service-connected conditions for Gulf War veterans.

    A second major initiative of the Committee was to address 
the persistent problem of homelessness among veterans. The 
Department of Veterans Affairs estimates that there are at 
least 275,000 homeless veterans on the streets of America every 
night. In order to drastically reduce these numbers, provide 
services to those who remain homeless and prevent at-risk 
veterans from becoming homeless, the Committee approved an 
historic new law that established a national goal of ending 
chronic homelessness among veterans within a decade.
    Public Law 107-95, the Homeless Veterans Comprehensive 
Assistance Act of 2001, authorized almost $1 billion to aid 
homeless veterans and prevent at-risk veterans from becoming 
homeless. As enacted on December 21, 2001, Public Law 107-95:
     Authorizes 2,000 additional section 8 HUD low-
income housing vouchers for homeless veterans;
     Authorizes 10 new Domiciliaries for Homeless 
Veterans programs;
     Authorizes $285 million for the Homeless Grant 
and Per Diem Program;
     Authorizes $250 million for the Department of 
Labor's Homeless Veterans Reintegration Program (HVRP);
     Requires VA to provide technical assistance to 
nonprofit community-based organizations seeking federal funding 
for homeless programs;
     Requires the VA to provide mental health programs 
wherever primary care is provided; and
     Earmarks $10 million for medical care for 
homeless veterans with special needs, including older veterans, 
women and substance abusers.

    The Committee also produced Public Law 107-14, the 
Veterans' Survivor Benefits Improvements Act of 2001, which 
added $100 million in new health care benefits for surviving 
spouses of veterans, and extends life insurance coverage to 
spouses and children of servicemembers. Public Law 107-14 
expanded CHAMPVA to surviving spouses of veterans who die of a 
service-connected disability; expanded Servicemembers' Group 
Life Insurance (SGLI) to include spouses and children of 
servicemembers; provided $100,000 coverage for spouses and 
$10,000 coverage for children; and made retroactive to October 
1, 2000 the increase to $250,000 for the maximum SGLI benefit 
for servicemembers dying in the line of duty.
    Another major new law initiated by the Committee is Public 
Law 107-135, the Department of Veterans Affairs Health Care 
Programs Enhancement Act of 2001. This legislation increases 
health programs for veterans by $1.4 billion. Specifically, it:
     Lowers out-of-pocket hospitalization expenses for 
lower income veterans by 80 percent to compensate for regional 
differences in the cost-of-living;
     Requires the VA to establish chiropractic care 
programs nationwide;
     Authorizes service dog programs for paralyzed and 
other severely disabled veterans;
     Requires the VA to maintain specialized medical 
programs--such as for mental illness, spinal cord injuries and 
prosthetics--in each of the VA's 21 regional networks; and
     Creates new incentive and recruitment programs to 
attract and retain VA nurses.

    Following the attacks of September 11th and the subsequent 
anthrax attacks, the Committee reviewed the role of the 
Department of Veterans Affairs in emergency preparedness. After 
holding public hearings, the Committee reported legislation 
that eventually became Public Law 107-287, the Department of 
Veterans Affairs Emergency Preparedness Act of 2002. Public Law 
107-287 expands the Department of Veterans Affairs' ability to 
respond to injuries and illnesses caused by biological, 
chemical, radiological, and explosive weapons. It increases the 
VA's role in homeland security, creating new research centers 
to counter biological, chemical, and radiological terrorism. 
The law:
     Authorizes the Department of Veterans Affairs to 
establish four National Medical Emergency Preparedness Centers 
at VA medical centers to conduct bio-medical research on, and 
develop health care responses for, chemical, biological, 
radiological, and explosive weapons;
     Authorizes $100 million over five years to fund 
the new centers;
     Requires the new centers to provide education, 
training, and advice to VA and community health care 
professionals on how to respond to chemical, biological, and 
radiological emergencies;
     Requires the new centers to provide rapid 
response laboratory assistance to local health care and law 
enforcement authorities in the event of a terrorist threat or 
other national emergency;
     Requires the Secretaries of VA and Defense to 
carry out a joint program to develop model education and 
training programs on the medical responses to the consequences 
of terrorist activities, and disseminate these programs to 
students of health professions, graduate medical education 
trainees, and active health practitioners; and
     Authorizes the Secretary to furnish health care 
during major disasters and medical emergencies to non-veterans, 
and to collect reimbursement for providing such services.

    The Committee also addressed the challenges of employment 
and job training for veterans, approving Public Law 107-288, 
the Jobs for Veterans Act. This new law will reform veterans' 
job training and placement programs in the Department of Labor 
through a new system of incentives and accountability that:
     Provides veterans and spouses of certain veterans 
priority for the receipt of employment, training, and placement 
services in federal job training programs;
     Requires Federal contractors to take affirmative 
action to employ and advance qualified veterans;
     Authorizes a new program of financial performance 
incentive awards to States to encourage the improvement and 
modernization of employment, training and placement services 
for veterans;
     Changes the funding formulas for veterans' jobs 
grants to States to reward States that perform well;
     Requires poor performing States to implement 
corrective action plans and provides technical assistance 
grants to these States;
     Establishes a system to measure the performance 
of veterans jobs programs in States;
     Requires each State to have minimum staffing 
levels for Director for Veterans' Employment and Training 
(DVET), Disabled Veterans Outreach Program Specialist (DVOPS), 
and Local Veterans Employment Representatives (LVERs);
     Establishes the President's National Hire 
Veterans Committee to furnish information to employers on the 
advantages afforded employers by hiring veterans; and
     Requires a Comptroller General study on 
effectiveness of implementation of these provisions not later 
than six months after the conclusion of the program year that 
begins during fiscal year 2004.

    Oversight.--The Committee continued to play an aggressive 
role overseeing the Department of Veterans Affairs, holding 
hearings and using other congressional powers to ensure that VA 
faithfully carries out its statutory mandates in conformity 
with Congressional intent. During the 107th Congress, oversight 
hearings were held to examine the Department's information 
technology programs, VA research corporations, Medical Care 
Collection Fund (MCCF), claims processing programs, the 
Veterans Equitable Resource Allocation (VERA) formula, 
Transition Assistance Programs (TAP), and women veterans' 
programs.
    The Committee also examined new revelations about Operation 
SHAD and Project 112, secret chemical and biological warfare 
experiments conducted by the Department of Defense during the 
1960s with American servicemen. In addition, the Committee 
pressed the VA to quickly implement the new laws approved 
during the 107th Congress, particularly Public Law 107-95, the 
Homeless Veterans Comprehensive Assistance Act of 2001. The 
Committee also pushed VA to fulfill its obligations for long-
term care to veterans as contained in Public Law 106-117, the 
Veterans Millennium Health Care and Benefits Act.
    The success of the Committee in the 107th Congress would 
not have been possible without the support and participation of 
Members and staff from both sides of the aisle. The Committee's 
Ranking Minority Member was the Honorable Lane Evans of 
Illinois, and I want to thank him for his commitment to working 
in a bipartisan manner, putting the interests of veterans 
first. I want to thank the Subcommittee Chairmen and Ranking 
Members for their hard work on behalf of veterans: the 
Honorable Mike Simpson, Chairman, and the Honorable Silvestre 
Reyes, Ranking Member, of the Subcommittee on Benefits; the 
Honorable Jerry Moran, Chairman, and the Honorable Bob Filner, 
Ranking Member, of the Subcommittee on Health; and the 
Honorable Steve Buyer, Chairman, and the Honorable Julia 
Carson, Ranking Member, of the Subcommittee on Oversight and 
Investigations. I also want to thank the Honorable J.D. 
Hayworth, who served as Chairman of the Benefits Subcommittee 
at the beginning of the 107th Congress, as well as the 
Honorable Mike Bilirakis, who served as Vice Chairman of the 
full Committee throughout the 107th Congress.
    This impressive legislative record achieved on behalf of 
veterans would not have been possible without the cooperation 
and contributions of the Senate Veterans' Affairs Committee, 
and I wish to thank the Honorable John D. Rockefeller and the 
Honorable Arlen Specter, who served as Chairman and Ranking 
Member during parts of the 107th Congress, as well as their 
professional staffs.
    I want to thank the entire House Committee on Veterans' 
Affairs staff, from both the majority and minority sides, for 
all of the hard work, dedication, expertise and commitment they 
have given to assist the Members of the Committee in fulfilling 
our responsibilities.
    Further, I want to thank the Honorable Bob Stump, Chairman 
Emeritus of the Committee, who retires after serving in the 
House of Representatives for 26 years, including six years as 
Chairman of this Committee.
    The Committee notes with sadness the passing of one of its 
most distinguished members, the Honorable Floyd Spence, who 
served on the Committee from 1991 until his death on August 16, 
2001. Born and raised in South Carolina, Floyd Spence served 
his country as a member of the United States Naval Reserve for 
more than 40 years, including active duty service during the 
Korean War. A Member of the House of Representatives for more 
than 30 years, Floyd Spence was a leader on national security 
issues and a strong supporter of our Nation's veterans. He also 
served for six years as Chairman of the Committee on Armed 
Services.
    Finally, the Committee also notes with sadness the passing 
of former Secretary of Veterans Affairs Jesse Brown, who served 
as Secretary from 1993 through 1997. A decorated Marine Corps 
veteran who was wounded in Vietnam in 1965, Jesse Brown spent 
his professional career with the Disabled American Veterans, 
serving as its executive director from 1989 to 1993, until his 
confirmation as Secretary in 1993. He was recognized as a 
tireless and effective advocate on behalf of veterans.
    The 107th Congress faced grave new challenges and 
responsibilities in order to enhance the security of our 
Nation. As has always been the case when America's security is 
in jeopardy, America's servicemen and women stepped forward. 
The Committee on Veterans' Affairs also stepped forward to 
ensure that the soldiers, sailors, airmen, and marines--who 
will become our future veterans--receive the benefits and 
services they deserve. Working together, in a bipartisan and 
bicameral fashion, with our professional staffs and with the 
advice and support of veterans service organizations, the 
Committee on Veterans' Affairs achieved remarkable results in 
the 107th Congress. For the men and women who have served, are 
serving, and will serve in defense of our Nation, nothing less 
would suffice.
                                      Christopher H. Smith,
                                                           Chairman
                            C O N T E N T S

                              ----------                              
                                                                   Page
Jurisdiction of the House Committee on Veterans' Affairs.........     1

Veterans programs:Activities under jurisdiction of the 
  committee as administered by: deg.

    Department of Veterans Affairs...............................     2
        Veterans Health Administration...........................     2
            Medical care.........................................     3
            Medical and prosthetic research......................     4
        Veterans Benefits Administration.........................     4
            Compensation and pension.............................     5
            Insurance............................................     5
            Education............................................     5
            Home loan assistance.................................     5
        National Cemetery Administration.........................     6

    Department of Labor..........................................     7

    American Battle Monuments Commission.........................     7

    Arlington National Cemetery..................................     8

Legislation enacted into law:
    Public Law 107-11............................................     9
    Public Law 107-14............................................     9
    Public Law 107-94............................................    10
    Public Law 107-95............................................    11
    Public Law 107-103...........................................    12
    Public Law 107-135...........................................    18
    Public Law 107-183...........................................    20
    Public Law 107-184...........................................    20
    Public Law 107--247..........................................    20
    Public Law 107--287..........................................    21
    Public Law 107--288..........................................    22
    Public Law 107--330..........................................    26

Activities of the Committee......................................    29

Activities of the subcommittees:
    Subcommittee on Health.......................................    41
    Subcommittee on Benefits.....................................    59
    Subcommittee on Oversight and Investigations.................    70

Summary of action by the Committee on Veterans' Affairs..........    78

Hearings and Executive Sessions..................................    79

Committee web site...............................................    84

Oversight Plan for 107th Congress................................    85
    Subcommittee on Health.......................................    85
    Subcommittee on Benefits.....................................    88
    Subcommittee on Oversight and Investigations.................    89

Report on the budget proposed for fiscal year 2002...............    92
Report on the budget proposed for fiscal year 2003...............   112
Messages from the President and other Executive Branch 
  communications.................................................   129
Statistical data--war veterans and dependents....................   140
                                     

                                                 Union Calendar No. 505
107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-804

======================================================================



 
ACTIVITIES OF THE COMMITTEE ON VETERANS' AFFAIRS FOR THE 107TH CONGRESS

                                _______
                                

 January 2, 2003--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Smith of New Jersey, for 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 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.

    The Committee on Veterans' Affairs 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. The 
Committee during the 107th Congress had 31 members, 17 in the 
majority and 14 in the minority.

                           VETERANS PROGRAMS

                     Department of Veterans Affairs

    President Herbert Hoover issued an executive order on July 
21, 1930, creating the Veterans Administration. At that time, 
the Veterans Administration had 54 hospitals and 31,600 
employees to serve 4.7 million veterans. President Ronald 
Reagan signed legislation on October 25, 1988, creating the 
Department of Veterans Affairs (VA), which assumed 
responsibility from the Veterans Administration for the mission 
of providing federal benefits to veterans and their dependents.
    VA carries out its missions nationwide in three 
administrations. The Veterans Health Administration (VHA) is 
responsible for veterans' health care programs. The Veterans 
Benefits Administration (VBA) is responsible for compensation, 
pension, vocational rehabilitation, education assistance, home 
loan guaranty and insurance programs. The National Cemetery 
Administration (NCA) is responsible for the operation of 120 
national cemeteries. The Board of Veterans' Appeals (BVA) 
provides final decisions for the Secretary on appeals of 
veterans benefits claims.
    As of September 30, 2002, VA had 222,985 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, the Veterans Health 
Administration has 200,700, the Veterans Benefits 
Administration has 13,454, the National Cemetery Administration 
has 1,492, and the Veterans Canteen Service has 3,178. The 
remaining 4,161 employees are in staff offices including those 
of the Inspector General, and acquisition and material 
management. VA is a leading employer of veterans with about 
26.2 percent of VA's employees being veterans. Since the 
formation of the Department, the Secretaries of Veterans 
Affairs have been: Honorable Edward J. Derwinski, 1989-1992; 
Honorable Jesse Brown, 1993-1997; Honorable Togo D. West, Jr., 
1998-2000; and the current Secretary, Honorable Anthony J. 
Principi.
    The veteran population was approximately 25.6 million on 
September 30, 2002. About 76 of every 100 veterans served 
during defined periods of armed hostilities. Altogether, 
approximately 70 million veterans, dependents and survivors of 
deceased veterans--nearly one-fourth of the nation's 
population--are potentially eligible for VA benefits and 
services.

                     VETERANS HEALTH ADMINISTRATION

    VA's largest and most visible component is the Veterans 
Health Administration (VHA). It has 163 hospitals, with at 
least one in each of the 48 contiguous states, Puerto Rico, and 
the District of Columbia, and with small VA inpatient bed 
complements in Alaska and Hawaii at military treatment 
facilities. VHA is divided into 21 Veterans Integrated Service 
Networks (VISNs) that provide its basic management structure. 
VHA is headed by the Under Secretary for Health, who is 
appointed by the President for a four-year term.
    In addition to its 163 hospitals, VA operates 743 
community-based outpatient clinics, 137 nursing homes and 43 
domiciliary homes.

Medical Care

    In 2001, with about 22,000 average operating acute hospital 
beds VA treated 642,217 inpatients, 87,232 veterans in nursing 
home care units or in community nursing facilities at VA 
expense, and 23,205 veterans in home care and other community-
based health programs sponsored by VA. The Department's 
outpatient clinics registered over 43 million visits by 
veterans in 2001. Altogether, 3.89 million veterans received 
care under VA auspices in 2001.
    Across the nation, VA is currently affiliated with 107 
medical schools, 55 dental schools, and over 1,000 other 
schools offering students allied and associated education 
degrees or certificates in 40 health profession disciplines. 
More than one-half of all practicing physicians in the United 
States received at least part of their clinical educational 
experiences in the VA health care system. In 2001, 
approximately 81,000 health care professionals received 
training in VA medical centers. The Department is the largest 
employer of registered nurses in the United States, with 36,721 
nurses on its rolls as of September 30, 2002.
    In 1979, VA through its Readjustment Counseling Service 
began operating community-based Outreach Centers (``Vet 
Centers'') to provide readjustment counseling to Vietnam-era 
veterans. Following the Gulf War, Congress extended eligibility 
for Vet Center services to Gulf War veterans and to veterans 
who served during other periods of U.S. armed forces 
deployments subsequent to Viet Nam, including military 
deployments in Lebanon, Grenada, Panama, Somalia, Bosnia and 
Kosovo. Public Law 104-262, the Eligibility Reform Act of 1996, 
expanded eligibility for readjustment counseling to combat 
veterans of conflicts prior to Viet Nam. VA's 206 Vet Centers 
accommodated over 900,000 visits in fiscal year 2002.
    The Department conducts a variety of specialized programs 
including compensated work therapy to provide disabled veterans 
with job skills, training and rehabilitative residencies. Often 
these programs assist homeless veterans. Both substance-use 
disorder rehabilitation and PTSD outreach programs continue to 
expand.
    VA provides a unique range of services for homeless 
veterans including outreach, case management, clinical care, 
residential treatment and rehabilitation, care for serious 
mental illnesses and substance-use disorder, and supported 
housing. VA funding for specialized care for homeless seriously 
mentally ill veterans increased by 44 percent between 1996 and 
2001.
    In operating its health care facilities, the Department 
benefits from the contributions of time and energy of more than 
111,000 volunteers from all walks of life. Many veterans 
themselves and family members of veterans volunteer through 
VA's Voluntary Service. Volunteers donate more than 13 million 
hours of service each year to bring companionship, faith, hope 
and comfort to hospitalized veterans and to the millions of 
veterans who visit VA outpatient clinics.

Medical and Prosthetic Research

    The Department conducts medical and prosthetic research 
programs that focus on the special needs of veterans but that 
have made important contributions to virtually every area of 
medicine and health. VA's current areas of emphasis include 
research into aging, chronic diseases, mental illnesses, 
substance-use disorders, sensory losses, trauma-related 
illnesses, rehabilitation, and health systems and services.
    The Department's medical researchers have played key roles 
in innovating and improving artificial limbs, curing 
tuberculosis, and developing the cardiac pacemaker, the 
computerized tomographic scanner and magnetic resonance imager. 
The first kidney transplant in the United States was performed 
at a VA medical center. VA researchers pioneered the first 
successful drug treatments for high blood pressure and 
schizophrenia. A VA researcher created a sensation in the 
prosthetics field with introduction of the ``Seattle Foot,'' a 
device that gives below-the-knee amputees an adaptive ability 
to walk, run and even jump, greatly improving the quality of 
life of tens of thousands of veterans and non-veterans alike. 
VA contributions to medical knowledge have won VA scientists 
many prestigious awards, including six Lasker Awards and three 
Nobel Prizes.
    VA researchers conducted the largest prevalence study ever 
of amyotrophic lateral sclerosis (Lou Gehrig's disease). 
Focusing on 2.8 million Persian Gulf War era veterans, 
researchers discovered that deployed veterans had almost twice 
the risk of acquiring this rare, fatal disease. Two other 
studies tested the effectiveness of treatments for fatigue, 
muscle and joint pain, and memory and thinking problems 
reported by some Persian Gulf War veterans. The researchers 
found that exercise and/or cognitive behavior therapy can 
improve the quality of life for veterans suffering from these 
health problems.
    VA scientists and colleagues have identified a synthetic 
compound that reverses bone loss in mice without affecting the 
reproductive system, unlike conventional hormone replacement 
therapy. The finding may lead to new treatments to prevent 
osteoporosis for millions of women and men and lead to safer 
alternatives to hormone treatments. Other advances by VA 
scientists include the development of an oral drug to treat 
smallpox, a significant discovery that may have important 
implications for the war on terrorism; the discovery that 
Hepatitis G helps the immune system fight HIV infection; and 
the identification of an appetite-stimulating hormone.

                    VETERANS BENEFITS ADMINISTRATION

    The Veterans Benefits Administration (VBA) is responsible 
for administering and delivering benefits and services to 
eligible veterans and certain survivors and dependents. VBA 
operates 58 regional offices throughout the United States, 
Puerto Rico, and the Republic of the Philippines. The regional 
offices have been realigned into nine Service Delivery 
Networks, which set goals, monitor performance, and share 
responsibility for mission accomplishment within their 
geographic area. VBA programs include disability compensation 
and pension, education, life insurance, home loan guaranty, and 
vocational rehabilitation and counseling. VBA is headed by the 
Under Secretary for Benefits, who is appointed by the President 
for a four-year term.

Compensation and Pension

    More than 2.4 million veterans receive disability 
compensation or pension payments from the VA. Some 313,540 
individual widows, children and parents of deceased veterans 
are paid survivor compensation or death pension benefits. VA 
disability and death compensation and pension payments amounted 
to more than $21 billion for fiscal year 2002.

Insurance

    VA operates the seventh largest insurance program in the 
United States. VA administers six life insurance programs under 
which two million policies with a value of $20 billion remained 
in force at the end of fiscal year 2002. In addition, VA 
supervises the Servicemembers' Group Life Insurance and 
Veterans' Group Life Insurance programs, which provide some 
$728 billion in insurance coverage to approximately 2.8 million 
members of the uniformed services and veterans, plus 3.1 
million spouses and children. The 2002 GI life insurance 
dividend will return almost $625 million to more than 1.8 
million policyholders.

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, 2.3 million Korean War veterans, 8.2 million post-
Korean and Vietnam era veterans, and active duty 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 48.4 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 (MGIB). 
Approximately 56 percent of veterans eligible for the MGIB used 
it through fiscal year 2001. Over 20,000 more claimants 
received education benefits during fiscal year 2001 than during 
fiscal year 2000. Almost 70 percent of the 421,000 
beneficiaries who used VA education benefits during fiscal year 
2001 qualified under the provisions of the MGIB. Reservists 
accounted for nearly 20 percent of education benefit 
recipients, and the Survivors' and Dependents' Educational 
Assistance program for certain eligible dependents of veterans 
accounted for almost 11 percent of recipients.

Home Loan Assistance

    More than 16.8 million veterans and their dependents have 
benefited from VA's loan guaranty program. From this program's 
establishment as part of the original GI Bill in 1944 through 
the end of fiscal year 2002, VA home loan guaranties totaled 
more than $740 billion. In fiscal year 2002, VA guaranteed 
317,000 loans valued at $40 billion. Since 1948, VA has 
assisted 35,000 disabled veterans with grants for specially 
adapted housing totaling more than $537 million.

                    NATIONAL CEMETERY ADMINISTRATION

    VA assumed responsibility for the National Cemetery 
Administration (NCA) in 1973. As of July 31, 2002, NCA 
maintains almost 2.5 million gravesites at 120 national 
cemeteries in 39 states and Puerto Rico. Of these, 61 have 
available, unassigned gravesites for the burial of both 
casketed and cremated remains; 26 will only accept cremated 
remains and the remains of family members for interment in the 
same gravesite as a previously deceased family member; and 33 
are closed to new interments, but may accommodate family 
members in the same gravesite as a previously deceased family 
member. NCA also oversees 33 soldiers' lots, monument sites and 
confederate cemeteries.
    During the period of 1997 to 2000, VA opened five new 
national cemeteries: Tahoma National Cemetery in the Seattle/
Tacoma, Washington area; Saratoga National Cemetery, near 
Albany, New York; Abraham Lincoln National Cemetery near 
Chicago, Illinois; Dallas-Ft. Worth National Cemetery to serve 
veterans in north and central Texas; and Ohio Western Reserve 
National Cemetery, near Cleveland, Ohio. The opening of five 
new national cemeteries within four years is unprecedented 
since the Civil War.
    VA is continuing to actively pursue the development of new 
cemeteries in those metropolitan areas that are presently not 
served by a national cemetery: Atlanta, Georgia; Detroit, 
Michigan; Fort Sill, Oklahoma; Miami, Florida; Pittsburgh, 
Pennsylvania; and Sacramento, California. Interments in 
national cemeteries are expected to increase from 82,700 in 
fiscal year 2000 to more than 117,000 in 2008.
    Since July 30, 1973, total acreage in NCA has increased 
from 4,260 acres to 13,850 acres in fiscal year 2001. The 
number of occupied graves maintained is projected to increase 
from 2,380,500 in fiscal year 2000 to over 2,998,100 in 2008. 
In fiscal year 2001, VA provided over 304,000 headstones and 
markers to mark the graves of veterans buried in private, state 
veterans, military/post, and national cemeteries. VA has 
provided 7.7 million headstones and markers since 1973.
    The Department of Veterans Affairs State Cemetery Grants 
Program was established in 1978 to complement VA's National 
Cemetery Administration. The program assists states in 
providing gravesites for veterans in those areas where VA's 
national cemeteries cannot fully satisfy their burial needs. 
Grants may be used only for the purpose of establishing, 
expanding, or improving veterans cemeteries that are owned and 
operated by a state or U.S. territory.
    During fiscal year 2002, the VA state grants program 
awarded 14 new grants and five grant increases for a total of 
$40.8 million. Since the program became active in 1980, it has 
awarded 58 grants for the initial establishment of new state 
cemeteries and 66 new grants for cemetery expansion or 
improvements for a total of $148 million in grants. As of 
November 1, 2002, 30 states and territories have been awarded 
grants. There are 51 open state veterans cemeteries in 28 
states and Guam, and 37 pending grant applications.

                          Department of Labor

                   VETERANS' EMPLOYMENT AND TRAINING

    Congress has determined that our nation has a 
responsibility to meet the employment and job training needs of 
veterans. To accomplish those goals, the Veterans' Employment 
and Training Service (VETS) of the Department of Labor provides 
job services for veterans through grants to state employment 
service agencies.
    Chapter 41 of title 38, United States Code, governs the 
administration of veterans' employment and training throughout 
the states. This chapter pre-dates the Government Performance 
and Results Act, the Workforce Investment Act of 1998, and 
self-service through America's Job Bank and America's Talent 
Bank, for example. On November 7, 2002, Congress amended this 
chapter with the Jobs for Veterans Act, Public Law 107-288. 
This law redesigns the veterans' employment and training 
service delivery system based on four broad themes: results, 
incentives, accountability, and flexibility. The Committee 
believes that the Jobs for Veterans Act should help many more 
veterans find good jobs, ensure fairness to states in grants, 
give states greater flexibility to manage, and reward states 
that do well, while making states accountable for results.

                  American Battle Monuments Commission

    The American Battle Monuments Commission (ABMC), created by 
an Act of Congress in 1923, 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 the 
American armed forces where they have 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.
    In performance of these functions, ABMC administers, 
operates and maintains 24 permanent American military cemetery 
memorials and 22 monuments, memorials, markers and separate 
chapels in fourteen foreign countries, the Commonwealth of the 
Northern Mariana Islands, Gibraltar, and three memorials in the 
United States. When directed by Congress, ABMC develops and 
erects national military monuments in the United States, such 
as the Korean War Veterans Memorial and the World War II 
Memorial, which the Committee is pleased to note is expected to 
be dedicated on Memorial Day, May 29, 2004. ABMC also provides 
information and assistance, on request, to relatives and 
friends of the war dead interred or commemorated at its 
facilities.
    Interred in the cemeteries are 124,918 U.S. war dead--750 
from the Mexican War, 30,922 from World War I, and 93,246 from 
World War II. Additionally, 6,010 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 overseas, 94,132 U.S. 
servicemembers of the World Wars, Korea, and Vietnam are 
commemorated individually by name on the Tablets of the Missing 
at cemetery memorials and at three memorials on U.S. soil.

                      Arlington National Cemetery

    Arlington Mansion and 200 acres of ground immediately 
surrounding it were designated as a military cemetery on June 
15, 1864, by Secretary of War Edwin M. Stanton. With more than 
260,000 people buried, Arlington National Cemetery has the 
second-largest number of people buried of any national cemetery 
in the United States. The cemetery conducts approximately 6,300 
burials each year. In addition to in-ground burial, the 
cemetery has a large columbarium for cremated remains. Four 
courts are currently in use, each with 5,000 niches. Arlington 
is the site of many non-funeral ceremonies, and approximately 
3,000 such ceremonies are conducted each year. Arlington is 
expected to continue to provide burials through the year 2060 
with its recently approved capital investment plan.
    More than four million people visit the cemetery annually, 
many coming to pay final respects at graveside services, of 
which nearly 125 are conducted each week. Veterans from all the 
Nation's wars are buried in the cemetery, from the American 
Revolution through the Persian Gulf War, Somalia and 
Afghanistan. Also, more than 3,800 former slaves are buried 
there. The Tomb of the Unknowns and the grave of President John 
F. Kennedy are among the most visited sites at the cemetery. 
Arlington National Cemetery is administered by the Department 
of the Army.


                      LEGISLATION ENACTED INTO LAW

                                ------                                


                           Public Law 107-11


          Expediting Construction of the World War II Memorial


                              (H.R. 1696)

    Removed additional delays in the construction of the World 
War II Memorial.
  May 28, 2002: Signed by the President, Public Law 107-11.
                                ------                                


                           Public Law 107-14


          Veterans' Survivor Benefits Improvements Act of 2001


                         (H.R. 801, AS AMENDED)

    Title: To amend title 38, United States Code, to expand 
eligibility for CHAMPVA, to provide for family coverage and 
retroactive expansion of the increase in maximum benefits under 
Servicemembers' Group Life Insurance, to make technical 
amendments, and for other purposes.
    Summary: H.R. 801, as amended:
    1. LExpands health insurance under CHAMPVA for survivors of 
veterans who die of a service-connected disability. CHAMPVA 
beneficiaries who are Medicare-eligible would receive coverage 
similar to the ``TRICARE for Life'' enhancements that Public 
Law 106-398 provided for Department of Defense beneficiaries. 
Future Medicare-eligible CHAMPVA beneficiaries would be 
required to obtain Medicare Part B coverage as a pre-condition 
to eligibility for this new benefit; coverage would be 
automatic for CHAMPVA beneficiaries who are eligible for 
Medicare on the date of enactment.
    2. LExpands the Servicemembers' Group Life Insurance (SGLI) 
program to include spouses and children. Spousal coverage could 
not exceed $100,000; child coverage could not exceed $10,000. 
Upon termination of SGLI, the spouse's policy could be 
converted to a private life insurance policy.
    3. LMakes the effective date of an increase from $200,000 
to $250,000 in the maximum SGLI benefit provided for in Public 
Law 106-419 retroactive to October 1, 2000, for a servicemember 
who died in the performance of duty and had the maximum amount 
of insurance in force.
    4. LFor purposes of VA's outreach program, defines an 
eligible dependent as the spouse, surviving spouse, child or 
dependent parent of a servicemember/veteran. It would also 
require VA to make eligible dependents aware of VA's services 
through media and veterans publications.
    Effective date: Date of enactment except the following 
sections
    Sec. 4: The first day of the first month that begins more 
            than 120 days after date of enactment.
    Sec. 5: October 1, 2000, with respect to any member of the 
            uniformed services who died in the performance of 
            duty.
    Sec. 7(a)(1): Shall take effect as if enacted on November 
            1, 2000.
    Sec. 7(b): Shall take effect as if enacted on November 1, 
            2000.
    Sec. 7(c): Shall take effect as if included in the 
            enactment of sec. 105 of the Veterans Benefits and 
            Health Care Improvement Act of 2000 (Public Law 
            106-419; 114 Stat. 1828).
    Sec. 7(d): May 1, 2001.
    Sec. 7(e): Shall take effect as if enacted on November 1, 
            2000.
    Cost: The Congressional Budget Office estimates that H.R. 
801, as amended, would make the survivors of certain veterans 
eligible for medical insurance, and extend coverage under 
Servicemembers' Group Life Insurance (SGLI). Neither measure 
would affect pay-as-you-go scoring.
    Legislative history:

    Mar. 21, 2001: H.R. 801 ordered reported favorably amended by the 
            Committee on Veterans' Affairs.
    Mar. 26, 2001: H.R. 801 reported amended by the Committee on 
            Veterans' Affairs. H. Rept. 107-27.
    Mar. 27, 2001: Passed the House amended under suspension by vote of 
            417-0 (Roll No. 63).
    Mar. 28, 2001: Referred to the Senate Committee on Veterans' 
            Affairs.
    May 24, 2001: Senate Committee on Veterans' Affairs discharged by 
            unanimous consent.
    May 24, 2001: Passed the Senate with an amendment and an amendment 
            to the title by unanimous consent.
    May 24, 2001: House agreed to the Senate amendments under 
            suspension by voice vote.
    June 5, 2001: Signed by the President, Public Law 107-14.
                                ------                                


                           Public Law 107-94

             Veterans' Compensation Rate Amendments of 2001

                        (H.R. 2540, AS AMENDED)

    Summary: H.R. 2540, as amended, would:
    Provide, effective December 1, 2001, a cost-of-living 
adjustment to the rates of disability compensation for veterans 
with service-connected disabilities and to the rates of 
dependency and indemnity compensation for survivors of certain 
service-connected disabled veterans. The percentage amount is 
equal to the increase for benefits provided under the Social 
Security Act (2.6 percent).
    Legislative history:

    July 24, 2001: H.R. 2540 reported amended by the Committee on 
            Veterans' Affairs. H. Rept. 107-156.
    July 31, 2001: Passed the House amended under suspension by vote of 
            422-0 (Roll No. 301).
    July 31, 2001: Referred to the Senate Committee on Veterans' 
            Affairs.
    Nov. 15, 2001: Senate Committee on Veterans' Affairs discharged by 
            unanimous consent.
    Nov. 15, 2001: Passed the Senate with an amendment and an amendment 
            to the Title by unanimous consent.
    Dec. 11, 2001: House agreed to Senate amendments under suspension 
            by voice vote.
    Dec. 21, 2001: Signed by the President, Public Law 107-94.
                                ------                                


                           Public Law 107-95

         Homeless Veterans Comprehensive Assistance Act of 2001

                        (H.R. 2716, AS AMENDED)

    Title: An Act to amend title 38, United States Code, to 
revise, improve, and consolidate provisions of law providing 
benefits and services for homeless veterans.
    Summary: H.R. 2716, as amended, will:
    1.  LProvide that this bill may be cited as the ``Homeless 
Veterans Comprehensive Assistance Act of 2001''.
    2.  LEstablish a national goal to end chronic homelessness 
among veterans and encourage all governmental and private 
agencies to work together to achieve this goal.
    3.  LProvide a ``Sense of the Congress'' regarding the 
needs of homeless veterans and the responsibility of federal 
agencies in meeting those needs.
    4.  LConsolidate and improve laws relating to homeless 
veterans into a new chapter of title 38, United States Code. 
Include provisions to increase per diem payments up to the rate 
paid to state home domiciliaries by community providers, 
authorize appropriations for the Homeless Veterans' 
Reintegration Program, coordinate outreach services among 
agencies dealing with homeless individuals, and undertake an 
outreach demonstration program within VA. Other provisions 
authorize establishment of a grant program for homeless 
veterans with special needs, limited dental care for veterans 
using VA homeless programs, technical assistance to nonprofit 
community based groups, and establish in law an Advisory 
Committee on Homeless Veterans.
    5.  LEstablish evaluation centers for programs that serve 
homeless populations and require annual program assessments to 
be submitted to Congress.
    6.  LRequire a study of outcome effectiveness of grant 
program for homeless veterans with special needs.
    7.  LRequire VA to develop a plan to provide veterans 
access to mental health services, including substance abuse 
treatment; and expand the comprehensive homeless services 
program.
    8.  LRequire disabled veterans' outreach program 
specialists and local veterans' employment representatives to 
coordinate employment services with entities receiving 
financial assistance under homeless veterans' reintegration 
programs.
    9.  LEstablish priorities for homeless programs when VA 
considers disposing of real property or entering into enhanced-
use lease arrangements.
    10. LRequire an annual meeting of the Interagency Council 
on Homeless.
    11. LIncrease set-aside rental assistance vouchers for HUD 
VA-Supported Housing Program.
    Effective date: Date of Enactment.
    Legislative history:

    Oct. 10, 2001: H.R. 2716 ordered reported favorably with an 
            amendment in the nature of a substitute by the Committee on 
            Veterans' Affairs.
    Oct. 16, 2001: H.R. 2716 reported amended by the Committee on 
            Veterans' Affairs. H. Rept. 107-241, Part I.
    Oct. 16, 2001: House Committee on Financial Services discharged by 
            unanimous consent.
    Oct. 16, 2001: Passed the House amended under suspension by voice 
            vote.
    Oct. 17, 2001: Received in the Senate. Placed on Senate Legislative 
            Calendar under General Orders. Calendar No. 201.
    Dec. 6, 2001: Passed the Senate with an amendment by unanimous 
            consent.
    Dec. 11, 2001: House agreed to the Senate amendment under 
            suspension by voice vote.
    Dec. 21, 2001: Signed by the President, Public Law 107-95.
                                ------                                


                           Public Law 107-103

         Veterans Education and Benefits Expansion Act of 2001

                        (H.R. 1291, AS AMENDED)

    Title: An Act to amend title 38, United States Code, to 
modify and improve authorities relating to education benefits, 
compensation and pension benefits, housing benefits, burial 
benefits, and vocational rehabilitation benefits for veterans, 
to modify certain authorities relating to the United States 
Court of Appeals for Veterans Claims, and for other purposes.
    Summary: H.R. 1291, as amended, will:

              Title I - Educational Assistance Provisions

    1.  LIncrease the amount of educational benefits under the 
Montgomery GI Bill (MGIB) for an approved program of education 
on a full-time basis from the current monthly rate of $672 for 
an obligated period of active duty of three or more years to 
$800 effective January 1, 2002; $900 effective October 1, 2002; 
and $985 effective October 1, 2003.
    2.  LIncrease the amount of educational benefits under the 
MGIB for an approved program of education on a full-time basis 
from the current monthly rate of $546 for an obligated period 
of active duty of two years to $650 effective January 1, 2002; 
$732 effective October 1, 2002; and $800 effective October 1, 
2003.
    3.  LSuspend the statutory annual adjustment in MGIB rates 
based on the Consumer Price Index for fiscal years 2003 and 
2004.
    4.  LIncrease the rates of Survivors' and Dependents' 
Educational Assistance from $608 to $670 for full-time, $456 to 
$503 for three-quarter-time, and $304 to $345 for half-time 
studies.
    5.  LRestore educational assistance entitlement to 
participants in VA-administered programs who have received 
benefits for the pursuing courses they were unable to complete 
because they were called to active duty or, in the case of 
active-duty servicemembers, were relocated and/or assigned 
duties that prevented them from completing their courses.
    6.  LExtend, in the case of a member of a Reserve component 
who was called to active duty, the period during which the 
person may use VA educational benefits by a period equal to the 
length of their active service plus 4 months for chapters 31 
and 35; and further provide that the Reservist is not to be 
considered to have been separated from the Selected Reserve for 
education purposes by reason of their active-duty service.
    7.  LAllow an accelerated payment of MGIB benefits of up to 
60 percent for short-term, high cost training courses that lead 
to employment in a high technology industry.
    8.  LAllow a Vietnam-era veteran to convert from Vietnam-
era GI Bill benefits to MGIB benefits if the veteran had 
eligibility for the Vietnam-era GI Bill benefits as of December 
31, 1989, was not on active duty on October 19, 1984, and 
served three continuous years in the Armed Forces after July 2, 
1985.
    9.  LIncrease from $2,000 to $3,400 the maximum allowable 
annual award that an SROTC participant may receive and still be 
eligible for benefits under MGIB.
    10. LExpand for five years VA's work-study program for 
veterans to include working in state veterans homes, VA 
national cemeteries and state veterans cemeteries, and helping 
State Approving Agencies with outreach efforts.
    11. LReinstate a 10-year delimiting period in which spouses 
may, upon first becoming eligible, use Dependents Educational 
Assistance (DEA) benefits. Spouses made eligible for DEA under 
more than one of the eligibility criteria would have two 
delimiting periods in which to use their DEA benefits, without 
an increase in the total 45-month entitlement period.
    12. LInclude certain private technology entities (primarily 
businesses) in the definition of educational institution so 
that veterans enrolled in technical courses can qualify for VA 
educational assistance benefits.
    13. LPermit veterans to use VA educational assistance 
benefits for a certificate program offered by an accredited 
institution of higher learning by way of independent study.

             Title II - Compensation and Pension Provisions

    1.  LRepeal the 30-year presumptive period for respiratory 
cancers associated with exposure to herbicide agents. Direct 
the Secretary to enter into contract with the National Academy 
of Sciences to determine whether an upper time limit on 
manifestations of respiratory cancers can be supported and 
authorizes the Secretary to provide a time limit if warranted 
by such studies. Protect the grant of service connection for 
veterans provided benefits under this section.
    2.  LAdd Diabetes Mellitus (Type 2) to the list of diseases 
presumed to be service-connected in Vietnam veterans exposed to 
herbicide agents.
    3.  LPresume that veterans who served in the Republic of 
Vietnam during the time when herbicides were used were exposed 
to herbicides.
    4.  LExtend the authority to presumed service-connection 
for additional diseases to September 30, 2012.
    5.  LDirect VA to contract with National Academy of Science 
(NAS) for continued review of scientific evidence on effects of 
dioxin or herbicide exposure for 10 more years (five reports), 
and extend the authority of the Secretary to presume service 
connection for additional diseases based on future NAS reports 
for 10 more years.
    6.  LExpand, effective March 1, 2002, the definition of 
illnesses presumed service-connected for Gulf War veterans to 
include a medically unexplained chronic multisymptom illness 
such as chronic fatigue syndrome, fibromyalgia and irritable 
bowel syndrome defined by a cluster of signs or symptoms. Signs 
or symptoms that may be a manifestation of undiagnosed illness 
or a chronic multisymptom illness would include fatigue, 
unexplained rashes or other dermatological signs or symptoms, 
headache, muscle pain, joint pain, neurological signs or 
symptoms, neuropsychological signs or symptoms, signs or 
symptoms involving the respiratory system (upper or lower), 
sleep disturbances, gastrointestinal signs or symptoms, 
cardiovascular signs or symptoms, abnormal weight loss, and/or 
menstrual disorders.
    7.  LInclude a technical correction substituting a date 
certain of October 1, 2010, for ``10 years after the last day 
of the fiscal year in which the National Academy of Sciences 
(NAS) submits the first report'' as written under current law 
in section 1603(j) of the Persian Gulf War Veterans Act of 
1998. Require the Secretary to contract with the NAS for five 
additional biennial reports on Gulf War health issues. Clarify 
that the authority of the Secretary to determine that a disease 
warrants presumptive service-connection based on these NAS 
reports continues until September 30, 2011.
    8.  LAuthorize the Secretary of Veterans Affairs to protect 
the grant of service connection of a Persian Gulf War veteran 
who participates in a Department of Veterans Affairs-sponsored 
medical research project. In the case of a Gulf War veteran 
being compensated for an undiagnosed illness, current law may 
not protect the individual's service-connected grant if, as a 
result of participating in a medical research study, the 
condition is diagnosed.
    9.  LRepeal the limitation on assets for payment of 
benefits to incompetent institutionalized veterans. Current law 
prohibits payment of compensation and pension benefits to an 
incompetent veteran with no dependents and assets exceeding 
five times the 100 percent compensation rate, if the veteran is 
being provided institutional health care by the government.
    10. LExtend, in the computation of the monthly payments of 
compensation and Dependency and Indemnity Compensation (DIC) 
the requirement of rounding down the benefit paid to the next 
lower whole dollar amount from fiscal year 2002 to fiscal year 
2011.
    11. LExpand the definition of permanent and total 
disability for veterans applying for nonservice-connected 
pension to include: (1) a patient in a nursing home for long-
term care because of disability, (2) a person disabled, as 
determined by the Commissioner of Social Security for purposes 
of benefits administered by the Commissioner, (3) a person 
unemployable, as a result of disability reasonably certain to 
continue throughout the life of the person, and (4) a person 
suffering from any disability which is sufficient to render it 
impossible for the average person to follow a substantially 
gainful occupation, but only if it is reasonably certain that 
such disability will continue throughout the life of the person 
or otherwise justifying a determination of permanent and total 
disability.
    12. LProvide a non-service-connected pension to low-income 
wartime veterans aged 65 and older without requiring a 
determination of disability.

             Title III - Transition and Outreach Provisions

    1. LProvide VA the authority to operate transition 
assistance offices overseas so as to furnish ``one-stop'' 
assistance to servicemembers in such areas prior to their 
separation from military service.
    2. LExtend the time that preseparation counseling is 
available to servicemembers separating from service to as early 
as 12 months before discharge, and 24 months prior to discharge 
for military retirees.
    3. LImprove education and training outreach services by 
requiring each State Approving Agency to conduct outreach 
programs and provide services to eligible veterans and 
dependents for state and federal veterans' education and 
training benefits.
    4. LRequire VA to provide to the veteran or eligible 
dependent general information concerning VA benefits and 
services whenever that person first applies for any benefit.

                       Title IV - Housing Matters

    1. LIncrease the home loan guaranty from $50,750 to 
$60,000.
    2. LExtend to December 31, 2005, VA's direct home loan 
program for Native American veterans living on trust lands, and 
eliminate the requirement for VA to have a separate memorandum 
of understanding (MOU) with tribal authorities if another 
federal agency has an MOU which substantially complies with 
VA's requirement.
    3. LModify the requirement for loan assumption language in 
home loan documents.
    4. LIncrease the grant for specially adapted housing for 
severely disabled veterans from $43,000 to $48,000, and 
increase the amount for less severely disabled veterans from 
$8,250 to $9,250.
    5. LExtend to September 30, 2009, the authority for housing 
loan guaranties for members of the Selected Reserve; extend 
VA's loan asset sale authority through December 31, 2011; 
extend the VA's home loan fee authorities through October 1, 
2011; extend the effectiveness of the procedures applicable to 
liquidation sales on defaulted home loans guaranteed by the VA 
through October 1, 2011.

                        Title V - Other Matters

    1. LIncrease the burial and funeral expense benefit for a 
service-connected veteran from $1,500 to $2,000, and increase 
the burial plot allowance from $150 to $300.
    2. LCreate a five-year program requiring the Secretary to 
furnish a bronze marker to those families that request a 
government marker for the marked grave of a veteran at a 
private cemetery. The Secretary is required to furnish the 
marker directly to the cemetery and the family is required to 
place the marker on the veteran's gravesite. Not later then 
February 1, 2006, the Secretary shall submit to the Committees 
on Veterans' Affairs of the Senate and the House of 
Representatives a report on the use of this five-year 
authority.
    3. LIncrease the automobile and adaptive equipment grant 
for severely disabled veterans from $8,000 to $9,000.
    4. LExtend to September 30, 2011, the limitation of VA 
pension to $90 per month for certain veterans receiving 
Medicaid-covered nursing home care.
    5. LProhibit payment of veterans' benefits to fugitive 
felons.
    6. LLimit payment of compensation for veterans remaining 
incarcerated for felonies since October 7, 1980. In 1980, 
Congress enacted legislation to reduce compensation to 
incarcerated veterans to the equivalent of the rate of 
compensation paid for a 10 percent disability (or, if they only 
receive ten percent, to the equivalent dollar amount of 5 
percent). Veterans who were already incarcerated in 1980 were 
not covered by this change in law.
    7. LEliminate the requirement for veterans to furnish the 
Secretary of Veterans Affairs with a copy of the notice of 
appeal filed with the U.S. Court of Appeals for Veterans 
Claims.
    8. LIncrease the fiscal year limitation on the number of 
veterans in programs of independent living services and 
assistance from 500 to 2,500.
    9. LTechnical and clerical amendments.

     Title VI - United States Court of Appeals for Veterans Claims

    1. LAllow two additional judges to be appointed, to allow 
transition as the original judges retire, and temporarily 
expand the membership of the U.S. Court of Appeals for Veterans 
Claims from seven to nine until August 2005.
    2. LRepeal the requirement that a judge provide written 
notice regarding acceptance of reappointment, as a precondition 
to retirement from the U.S. Court of Appeals for Veterans 
Claims.
    3. LEliminate the post-November 17, 1988, Notice of 
Disagreement as a prerequisite to jurisdiction at the U.S. 
Court of Appeals for Veterans Claims.
    4. LAllow the U.S. Court of Appeals for Veterans Claims to 
impose registration fees on persons participating in Court-
sponsored activities, including judicial conferences.
    5. LProvide the U.S. Court of Appeals for Veterans Claims 
with the authority to use practice and registration fees for 
the purposes of disciplinary matters, and for defraying the 
expenses of judicial conferences and other activities to 
support and foster bench and bar relationships, veterans law or 
the work of the Court.
    6. LProvide the U.S. Court of Appeals for Veterans Claims 
with the authority to proscribe administrative practices which 
are consistent with those exercised by federal courts of 
general jurisdiction.
    Effective date: Date of enactment except the following 
sections:
    Sec. 101(a)(1)(A): January 1, 2002
    Sec. 101(a)(1)(B): October 1, 2002
    Sec. 101(a)(1)(C): October 1, 2003
    Sec. 101(a)(2)(A): January 1, 2002
    Sec. 101(a)(2)(B): October 1, 2002
    Sec. 101(a)(2)(C): October 1, 2003
    Sec. 102: January 1, 2002
    Sec. 103: September 11, 2001
    Sec. 104: October 1, 2002 with respect to enrollments in 
            courses or programs of education or training 
            beginning on or after that date
    Sec. 106: Shall apply with respect to educational 
            assistance allowances paid for months beginning 
            after the date of enactment of this Act
    Sec. 108: Applies to determinations made on or after date 
            of enactment
    Sec. 110: Shall apply to enrollments in courses occurring 
            on or after date of enactment of this Act
    Sec. 111: Shall apply to enrollments in courses occurring 
            on or after date of enactment of this Act
    Sec. 201(a): January 1, 2002
    Sec. 202: March 1, 2002
    Sec. 203: VA medical research projects commenced before, 
            on, or after date on enactment
    Sec. 206: September 17, 2001
    Sec. 207: September 17, 2001
    Sec. 501(a): September 11, 2001
    Sec. 501(b): December 1, 2001
    Sec. 502: Shall apply to individuals dying on or after date 
            of enactment
    Sec. 505: Shall apply with respect to the payment of 
            compensation for months beginning on or after the 
            end of the 90-day period beginning on the date of 
            enactment
    Sec. 506: Shall apply to the months beginning 90 days after 
            date of enactment
    Sec. 508: September 30, 2001
    Sec. 603: Shall apply to appeals filed on or after date of 
            enactment or filed before date of enactment for 
            which the decision is not final as of date of 
            enactment
    Legislative history:

    June 19, 2001: Passed the House under suspension by vote of 416-0, 
            1 Present (Roll No. 166).
    June 20, 2001: Referred to the Senate Committee on Veterans' 
            Affairs.
    Dec.  7, 2001: Senate Committee on Veterans' Affairs discharged by 
            unanimous consent.
    Dec.  7, 2001: Senate struck all after the enacting clause and 
            substituted the language of S. 1088 amended.
    Dec.  7, 2001: Passed the Senate in lieu of S. 1088 with an 
            amendment by unanimous consent.
    Dec. 11, 2001: House agreed to Senate amendments with an amendment 
            pursuant to H. Res. 310. (Note: Consists of certain 
            provisions from H.R. 801, H.R. 2540, H.R. 3240, and S. 
            1088. Also, H. Res. 310 agreed to by the House under 
            suspension by voice vote.)
    Dec. 13, 2001: Senate agreed to House amendment to Senate 
            amendments by unanimous consent.
    Dec. 27, 2001: Signed by the President, Public Law 107-103.
                                ------                                


                           Public Law 107-135

Department of Veterans Affairs Health Care Programs Enhancement Act of 
                                  2001

                              (H.R. 3447)

    Title: To amend title 38, United States Code, to enhance 
the authority of the Secretary of Veterans Affairs to recruit 
and retain qualified nurses for the Veterans Health 
Administration, to provide an additional basis for establishing 
the inability of veterans to defray expenses of necessary 
medical care, to enhance certain health care programs of the 
Department of Veterans Affairs, and for other purposes.

    Mr. Smith of New Jersey (for himself, Mr. Evans, Mr. Moran 
of Kansas, and Mr. Filner) introduced H.R. 3447 on December 11, 
2001.

    Summary: H.R. 3447 will:
    1.  LEnhance eligibility and benefits for the Employee 
Incentive Scholarship and Education Debt Reduction Programs by 
enabling VA nurses to pursue advanced degrees while continuing 
to care for veterans, in order to improve recruitment and 
retention of nurses within the VA health care system.
    2.  LMandate that VA provide Saturday premium pay to title 
5/title 38 hybrid employees. Such hybrid-authority employees 
include licensed vocational nurses, pharmacists, certified or 
registered respiratory therapists, physical therapists, and 
occupational therapists.
    3.  LRequire VA to develop a nationwide policy on staffing 
standards to ensure that veterans are provided with safe and 
high quality care, taking into consideration the numbers and 
skill mix required of staff in specific health care settings. 
Require a report on the use of mandatory overtime by licensed 
nursing staff and nursing assistants in each VA health care 
facility; include in report a description of the amount of 
mandatory overtime used by facilities.
    4.  LChange reporting responsibility of the Director of the 
Nursing Service to report to the Under Secretary for Health.
    5.  LRecompute annuities for part-time service performed by 
certain health care professionals before April 7, 1986.
    6.  LEstablish a 12-member National Commission on VA 
Nursing that would assess legislative and organizational policy 
changes to enhance the recruitment and retention of nurses by 
the Department and the future of the nursing profession within 
the Department, and recommend legislative and organizational 
policy changes to enhance the recruitment and retention of 
nursing personnel in the Department.
    7.  LAuthorize service dogs to be provided by VA to a 
veteran suffering from spinal cord injuries or dysfunction, 
other diseases causing physical immobility, hearing loss or 
other types of disabilities susceptible to improvement or 
enhanced functioning in activities of daily living through 
employment of a service dog.
    8.  LModify VA's system of determining nonservice-connected 
veterans' ``ability to pay'' for VA health care services by 
introducing (as an upper income bound contrasted with current 
income limits) the ``Low Income Housing Limits'' employed by 
the Department of Housing and Urban Development (HUD), used by 
HUD to determine family income thresholds for housing 
assistance. This index is adjusted for all Standard 
Metropolitan Statistical Areas (SMSAs), and is updated 
periodically by HUD to reflect economic changes within the 
SMSAs. Would retain current-law means test national income 
threshold, but reduce co-payments by 80 percent for near-poor 
veterans who require acute VA hospital inpatient care.
    9.  LStrengthen the mandate for VA to maintain capacity in 
specialized medical programs for veterans by requiring VA and 
each of its Veterans Integrated Service Networks to maintain 
the national capacity in certain specialized health care 
programs for veterans (those with serious mental illness, 
including substance use disorders, and spinal cord, brain 
injured and blinded veterans; veterans who need prosthetics and 
sensory aids); and extend capacity reporting requirement for 3 
years.
    10. LEstablish a program of chiropractic services in each 
Veterans Integrated Service Network and require VA to provide 
training and educational materials on chiropractic services to 
VA health care providers. Authorize VA to employ chiropractors 
as federal employees and obtain chiropractic services through 
contracts; create a VA advisory committee on chiropractic 
health care.
    11. LRequire the Office of Research Compliance and 
Assurance, which conducts oversight and compliance reviews of 
VA research and development, be funded by the Medical Care 
appropriation, rather than the Medical and Prosthetic Research 
appropriation.
    12. LAuthorize $28,300,000 for major medical facility 
construction project at the Miami, Florida VA Medical Center.
    13. LRequire Secretary of Veterans Affairs to assess all 
special telephone services made available to veterans, such as 
``help lines'' and ``hotlines.'' Assessment would include 
geographical coverage, availability, utilization, 
effectiveness, management, coordination, staffing, cost, and a 
survey of veterans to measure effectiveness of these telephone 
services and future needs. A report to Congress would be 
required within 1 year of enactment.
    4. LExtend expiring authorities for VA to collect proceeds 
from veterans' health insurance policies for care provided for 
non-service connected care.
    15. LProvide authority for Secretary to study, and then if 
determined feasible, obtain personal emergency-notification and 
response systems for service-disabled veterans.
    16. LExtend VA's authority to provide health care for those 
who served in the Persian Gulf until December 31, 2002.
    Effective date: Date of Enactment.
    Cost: The Congressional Budget Offices estimates that two 
provisions of H.R. 3447 would increase direct spending by $1 
million in 2002, $8 million over the 2002-2006 period, and $24 
million over the 2002-2011 period.
    Legislative history:

    Dec. 11, 2001: Passed the House under suspension by voice vote.
    Dec. 12, 2002: Received in the Senate.
    Dec. 20, 2001: Passed the Senate by unanimous consent.
    Jan. 23, 2002: Signed by the President, Public Law 107-135.
                                ------                                


                           Public Law 107-183

                  Naming the Bob Hope Veterans Chapel

                              (H.R. 4592)

    Designated the Chapel located in the National Cemetery in 
Los Angeles, California, as the ``Bob Hope Veterans Chapel''.
  May 29, 2002: Signed by the President, Public Law 107-183.
                                ------                                


                           Public Law 107-184

    Naming the Robert J. Dole VA Medical and Regional Office Center

                              (H.R. 4608)

    Named the VA Medical and Regional Office Center in Wichita, 
Kansas, the ``Robert J. Dole Department of Veterans Affairs 
Medical and Regional Office Center''.
  May 29, 2002: Signed by the President, Public Law 107-184.
                                ------                                


                           Public Law 107-247

      Veterans' Compensation Cost-of-Living Adjustment Act of 2002

                        (H.R. 4085, AS AMENDED)

    Title: An Act to increase, effective as of December 1, 
2002, 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. 4085, as amended, will:
    Provide, effective December 1, 2002, a cost-of-living 
adjustment to the rates of disability compensation for veterans 
with service-connected disabilities and to the rates of 
dependency and indemnity compensation for survivors of certain 
service-connected disabled veterans; the percentage amount 
would be equal to the increase for benefits provided under the 
Social Security Act (1.4 percent), which is calculated based 
upon changes in the Consumer Price Index.
    Effective date: Date of enactment except the following 
sections:
    Sec. 2: December 1, 2002.
    Legislative history:

    May 9, 2002: H.R. 4085 ordered reported amended favorably by the 
            Committee on Veterans' Affairs.
    May 16, 2002: H.R. 4085 reported amended by the Committee on 
            Veterans' Affairs. H. Rept. 107-472.
    May 20, 2002: Considered under suspension of the rules. At the 
            conclusion of debate, the Yeas and Nays were demanded and 
            ordered. Pursuant to the provisions of clause 8, rule XX, 
            the Chair announced that further proceedings on the motion 
            would be postponed.
    May 21, 2002: Considered as unfinished business. On motion to 
            suspend the rules and pass the bill, as amended, agreed to 
            by the Yeas and Nays: 410-0 (Roll No. 185).
    May 22, 2002: Referred to the Senate Committee on Veterans' 
            Affairs.
    Sep. 26, 2002: Passed the Senate with an amendment and an amendment 
            to the Title by unanimous consent.
    Oct. 7, 2002: House agreed to the Senate amendments under 
            suspension by voice vote.
    Oct. 23, 2002: Signed by the President, Public Law 107-247.
                                ------                                


                           Public Law 107-287

   Department of Veterans Affairs Emergency Preparedness Act of 2002

                        (H.R. 3253, AS AMENDED)

    Title: To amend title 38, United States Code, to enhance 
emergency preparedness of the Department of Veterans Affairs, 
and for other purposes.
    Summary: H.R. 3253, as amended, will:
    1.  LDirect the Department of Veterans Affairs to establish 
four National Medical Emergency Preparedness Centers at VA 
medical centers to: conduct bio-medical research on, and 
develop health care responses for, chemical, biological, 
radiological, incendiary or other explosive weapons that 
threaten the public health and safety; provide related 
education, training, and advice to VA and community health care 
professionals either through the National Disaster Medical 
System or interagency agreements; and, provide rapid response 
laboratory, epidemiological, medical or other assistance to 
Federal, State or local health care and law enforcement 
authorities in the event of a national disaster or emergency, 
or as necessary to protect the public safety and prevent 
biological, chemical or radiological threats.
    2.  LRequire the centers to coordinate with health 
professions and public health schools in bio-terrorism related 
education and training of health care professionals.
    3.  LAuthorize $100 million over 5 years to fund the new 
centers and allow each center to seek additional research funds 
from public and private sources.
    4.  LRequire the Secretary to select the sites for each 
center competitively based upon certain qualifying criteria and 
ensuring the centers are geographically dispersed throughout 
the United States.
    5.  LRequire the Secretaries of VA and Defense to carry out 
a joint program to develop and disseminate a series of model 
education and training programs on the medical responses to the 
consequences of terrorist activities.
    6.  LRequire the Secretary of VA to disseminate training 
programs and research findings to health professions students, 
graduate medical education trainees, and active health 
practitioners in coordination with other Federal departments 
and agencies.
    7.  LAuthorize a new assistant secretary in the Department 
of Veterans Affairs. This assistant secretary will coordinate 
Department-wide operations, preparedness, security and law 
enforcement functions.
    8.  LAuthorize an increase in the number of deputy 
assistant secretaries from 18 to 19.
    9.  LAuthorize VA to furnish hospital care and medical 
services to individuals responding to, involved in, or 
otherwise affected by a major disaster or emergency, including 
members of the Armed Forces on active duty.
    10. LAuthorize VA to negotiate with other Federal entities 
to collect the cost of providing care or services and retain 
such collections in the event of a major disaster or emergency.
    Effective date: Date of enactment
    Cost: The Congressional Budget Office estimates the cost of 
H.R. 3253, as amended, to be $12 million in 2003 and $87 
million over the 2003-2007 period, assuming appropriation of 
the authorized amounts. Because the bill does not affect direct 
spending or receipts, pay-as-you-go procedures do not apply.
    Legislative history:

    May 9, 2002: H.R. 3253 ordered reported amended favorably by the 
            Committee on Veterans' Affairs.
    May 16, 2002: H.R. 3253 reported amended by the Committee on 
            Veterans' Affairs. H. Rept. 107-471.
    May 20, 2002: Considered under suspension of the rules. At the 
            conclusion of debate, the Yeas and Nays were demanded and 
            ordered. Pursuant to the provisions of clause 8, rule XX, 
            the Chair announced that further proceedings on the motion 
            would be postponed.
    May 21, 2002: Considered as unfinished business. On motion to 
            suspend the rules and pass the bill, as amended, agreed to 
            by the voice vote.
    May 21, 2002: Referred to the Senate Committee on Veterans' 
            Affairs.
    August 1, 2002: Senate Committee on Veterans' Affairs discharged by 
            unanimous consent.
    August 1, 2002: Passed the Senate with an amendment and an 
            amendment to the Title by unanimous consent.
    Sep. 17, 2002: House agreed to Senate amendments with an amendment 
            pursuant to H. Res. 526.
    Sep. 18, 2002: Message on House action received in Senate and at 
            desk: House amendment to Senate amendments.
    Oct. 15, 2002: Senate concurred in House amendments with an 
            amendment by unanimous consent.
    Oct. 16, 2002: The Majority Leader asked unanimous consent that the 
            House agree to the Senate amendment to the House amendment 
            to the Senate amendments.
    Oct. 16, 2002: On motion that the House agree to the Senate 
            amendment to the House amendment to the Senate amendments. 
            Agreed to without objection.
    Nov. 7, 2002: Signed by the President, Public Law 107-287.
                                ------                                


                           Public Law 107-288

                         Jobs For Veterans Act

                        (H.R. 4015, AS AMENDED)

    Title: To amend title 38, United States Code, to revise and 
improve employment, training, and placement services furnished 
to veterans, and for other purposes.
    Summary: H.R. 4015, as amended, will:
    1.  LProvide priority of service to veterans and spouses of 
certain veterans for the receipt of employment, training, and 
placement services in any job training program directly funded, 
in whole or in part, by the Department of Labor, 
notwithstanding any other provision of law.
    2.  LProvide, with respect to Federal contracts and 
subcontracts in the amount of $100,000 or more, that the 
contractor and any subcontractor take affirmative action to 
employ and advance qualified veterans in employment, including 
immediately listing employment openings for such contracts 
through the appropriate employment delivery system.
    3.  LReplace the Veterans Readjustment Appointment 
authority and its 10-year eligibility period with a Veterans 
Recruitment Appointment authority and an unlimited eligibility 
period. This provision also makes certain eligibility changes.
    4.  LRequire the Secretary to carry out a program of 
financial and non-financial performance incentive awards to be 
administered by the States to encourage the improvement and 
modernization of employment, training and placement services 
for veterans.
    5.  LMake the position of Deputy Assistant Secretary for 
Veterans' Employment and Training (DASVET) a federal civil 
service position; the individual appointed to this position 
will be required to have at least five years of Federal civil 
service employment in a management position or a comparable 
position in the Armed Forces preceding appointment as DASVET.
    6.  LInclude, among the conditions for receipt of funding 
by States, a requirement that a State submit an application for 
a grant or contract describing the plan by which the State is 
to furnish employment, training, and placement services.
    7.  LRevise the methods by which the Secretary furnishes 
funds to a State. Require the Secretary to make funds available 
for a fiscal year to each State in proportion to the number of 
veterans seeking employment using such criteria as the 
Secretary may establish in regulation, including civilian labor 
force and unemployment data. The proportion of funding will 
reflect the ratio of the total number of veterans seeking 
employment in the State to the total number of veterans seeking 
employment in all States.
    8.  LRequire that the Secretary phase in the funding 
described by paragraph seven over a three fiscal year period 
that begins on October 1, 2002.
    9.  LAuthorize the Secretary to establish minimum funding 
levels and ``hold-harmless'' criteria in administering funding 
to the States.
    10. LRequire the Secretary to establish in regulations a 
uniform national threshold entered-employment rate for a 
program year by which determinations of deficiency in program 
performance may be made. The Secretary will be required to take 
into account the applicable annual unemployment data for the 
State and consider other factors, such as prevailing economic 
conditions, that affect performance of individuals providing 
employment, training, and placement services in the State.
    11. LRequire that when a State has an entered-employment 
rate that the Secretary determines was deficient for the 
preceding year, the State must develop and implement a 
corrective action plan that is submitted to and approved by the 
Secretary.
    12. LRequire the Secretary to establish a technical 
assistance program to assist States that have or may have a 
deficient entered-employment rate.
    13. LGive the Secretary authority to determine the duties 
of the Regional Administrator for Veterans' Employment and 
Training.
    14. LRequire the Assistant Secretary of Labor for Veterans' 
Employment and Training to establish and implement a 
comprehensive accountability system to measure the performance 
of delivery systems in a State. Require such standards and 
measures to be (1) consistent with State performance measures 
applicable under section 136(b) of the Workforce Investment Act 
of 1998, and (2) appropriately weighted to provide special 
consideration for placement of veterans who require intensive 
services, or who enroll in readjustment counseling services 
furnished by the Department of Veterans Affairs.
    15. LRequire the Secretary to assign to each State a 
representative of the Veterans' Employment and Training Service 
(VETS) to serve as the Director for Veterans' Employment and 
Training (DVET) and full-time Federal clerical or other support 
personnel to each Director; authorize the Secretary to assign 
other supervisory personnel as the Secretary determines 
appropriate.
    16. LRequire, subject to approval by the Secretary, that 
States employ a sufficient number of full or part-time Disabled 
Veterans Outreach Program Specialist (DVOPS) to carry out 
intensive services to meet the employment needs of special 
disabled veterans, other disabled veterans and other eligible 
veterans. Require to the maximum extent practicable that such 
employees be qualified veterans, with preference given to 
qualified disabled veterans.
    17. LRequire, subject to approval by the Secretary, that a 
State employ such full and part-time Local Veterans Employment 
Representatives (LVERs) as the State determines appropriate and 
efficient to carry out employment, training and placement 
services. (To the maximum extent practicable, such employees 
would be qualified veterans or eligible persons.)
    18. LAllow the Secretary to gain performance credit, 
through the States, for assisting servicemembers in transition 
to civilian careers.
    19. LRequire the Secretary, within 18 months of enactment, 
to enhance the delivery of services by providing ``one-stop'' 
services and assistance to covered persons electronically by 
the Internet and by other electronic means.
    20. LClarify the authority of the National Veterans' 
Employment and Training Services Institute (NVETSI) to enter 
into contracts or agreements with departments or agencies of 
the United States or of a State, or with other organizations, 
to carry out training in providing veterans' employment, 
training, and placement services. Require that each annual 
budget submission include a separate listing of the funding 
requested for NVETSI.
    21. LAuthorize $3 million to be appropriated to the 
Secretary of Labor from the employment security administration 
account in the Unemployment Trust Fund for each of fiscal years 
2003 through 2005 to establish within the Department of Labor 
the President's National Hire Veterans Committee. The Committee 
would furnish information to employers on the training and 
skills of veterans and disabled veterans, and on the advantages 
afforded employers by hiring veterans.
    22. LRequire a Comptroller General study on effectiveness 
of implementation of provisions in this title not later than 
six months after the conclusion of the program year that begins 
during fiscal year 2004.
    Effective date: Date of enactment except the following 
sections:
    Sec. 2(b): The amendments made by this section are 
            summarized in paragraph two above, and would apply 
            with respect to contracts entered into on or after 
            the first day of the first month that begins 12 
            months after the date of the enactment of this Act.
    Sec 2(c): The amendments made by this section are 
            summarized in paragraph three above, and shall 
            apply to qualified covered veterans without regard 
            to any limitation relating to the date of the 
            veteran's last discharge or release from active 
            duty that may have otherwise applied under section 
            4214(b)(3) as in effect on the date before the date 
            of enactment of this Act.
    Sec 4(a): The amendments made by this subsection are 
            summarized in paragraph five above, and shall take 
            effect on the date of enactment of this Act, and 
            apply for program and fiscal years under chapter 41 
            of title 38, United States Code, beginning on or 
            after such date.
    Sec 4(b): The amendment made by this section are summarized 
            in paragraphs six and seven above, and shall take 
            affect on the date of enactment of this Act, and 
            apply to budget submissions for fiscal year 2004 
            and each subsequent fiscal year.
    Sec. 5(d): The amendments made by paragraph (1) are 
            summarized in paragraphs 10 and 11 above, and shall 
            apply to reports for program years beginning on or 
            after July 1, 2003.
    Legislative history:

    May 9, 2002: H.R. 4015 ordered reported amended favorably by the 
            Committee on Veterans' Affairs.
    May 20, 2002: H.R. 4015 reported amended favorably by the Committee 
            on Veterans' Affairs. H. Rept. 107-476.
    May 20, 2002: Considered under suspension of the rules. At the 
            conclusion of debate, the Yeas and Nays were demanded and 
            ordered. Pursuant to the provisions of clause 8, rule XX, 
            the Chair announced that further proceedings on the motion 
            would be postponed.
    May 21, 2002: Considered as unfinished business. On motion to 
            suspend the rules and pass the bill, as amended, agreed to 
            by the Yeas and Nays: 409-0 (Roll No. 184).
    May 22, 2002: Referred to the Senate Committee on Veterans' 
            Affairs.
    Oct. 15, 2002: Senate Committee on Veterans' Affairs discharged by 
            unanimous consent.
    Oct. 15, 2002: Passed the Senate with an amendment by unanimous 
            consent.
    Oct. 16, 2002: The Majority Leader asked unanimous consent that the 
            House agree to the Senate amendment.
    Oct. 16, 2002: On motion that the House agree to the Senate 
            amendment. Agreed to without objection.
    Nov. 7, 2002: Signed by the President, Public Law 107-288.
                                ------                                


                           Public Law 107-330

                     Veterans Benefits Act of 2002

                         (S. 2237, AS AMENDED)

    Title: An Act to amend title 38, United States Code, to 
improve authorities of the Department of Veterans Affairs 
relating to veterans' compensation, dependency and indemnity 
compensation, and pension benefits, education benefits, housing 
benefits, memorial affairs benefits, life insurance benefits, 
and certain other benefits for veterans, to improve the 
administration of benefits for veterans, to make improvements 
in procedures relating to judicial review of veterans' claims 
for benefits, and for other purposes.
    Summary: S. 2237, as amended, would:

            Title I - Compensation and Benefits Enhancements

    1. LProvide that a surviving spouse, upon remarriage at age 
55 or older, would retain eligibility for the Civilian Health 
and Medical Program of the Department of Veterans Affairs 
(CHAMPVA).
    2. LProvide that women veterans who have suffered the 
anatomical loss of 25 percent or more tissue from a single 
breast or both breasts in combination (including loss by 
mastectomy or partial mastectomy) or received radiation 
treatment of breast tissue may be eligible for special monthly 
compensation.
    3. LAllow VA to consider partial non-service-connected 
hearing loss in one ear when rating disability for veterans 
with service-connected hearing loss, rated at 10 percent or 
more, in the other ear.
    4. LAuthorize VA to contract with the National Academy of 
Sciences to review and assess hearing loss related to military 
service.

                      Title II - Memorial Affairs

    1. LProhibit the issuance of Presidential Memorial 
Certificates, flags, and memorial headstones or grave markers 
to veterans convicted or fleeing from prosecution of a State or 
Federal capital crime.
    2. LEliminate the requirement that the Secretary of 
Veterans Affairs or the Secretary of the Army be notified of a 
finding by the Attorney General or the appropriate State 
official, in cases of persons who are found to have committed 
capital crimes but who avoided conviction of the crime through 
flight or death preceding prosecution.
    3. LProvide that the Secretary of Veterans Affairs shall 
furnish a government marker to those families who request one 
for the marked grave of a veteran buried at a private cemetery, 
who died on or after September 11, 2001 (Public Law 107-103 
applied to veterans who died on or after December 27, 2001).
    4. LAuthorize the Secretary of the Army to place in 
Arlington National Cemetery a new memorial marker honoring 
veterans who fought in the Battle of the Bulge during World War 
II.

                       Title III - Other Matters

    1. LIncrease funding for State approving agencies to $14 
million in fiscal year 2003, $18 million in fiscal year 2004, 
$18 million in fiscal year 2005, $19 million in fiscal year 
2006, and $19 million in fiscal year 2007.
    2. LAllow veterans over the age of 70 to continue coverage 
under Veterans' Mortgage Life Insurance.
    3. LAuthorize VA to guaranty hybrid adjustable rate 
mortgages for a period of two years.
    4. LIncrease the Medal of Honor special pension from $600 
to $1,000 per month, beginning October 1, 2003. The pension 
amount would be adjusted annually to maintain the value of the 
pension in the face of the rising cost of living. The recipient 
would receive a one-time, lump-sum payment in the amount of 
special pension the recipient would have received between the 
date of the act of valor and the date that the recipient's 
pension actually commenced.
    5. LProvide coverage under the provisions of the Soldiers' 
and Sailors Civil Relief Act of 1940 to members of the National 
Guard who are called to active service for more than 30 
consecutive days under section 502(f) of title 32, United 
States Code, to respond to a national emergency.
    6. LExtend the authority of the Internal Revenue Service 
(IRS) to furnish income information to VA from IRS records so 
that VA might determine eligibility for VA needs-based pension, 
parents dependency and indemnity compensation, and priority for 
VA health-care services to September 30, 2008.
    7. LIncrease the loan fee for assumptions for fiscal year 
2003 from 0.50 percent to 1.0 percent.

                      Title IV - Judicial Matters

    8. LMake jurisdictional and scope of review changes for the 
Court of Appeals for Veterans Claims and for the Court of 
Appeals for the Federal Circuit, and authorize payment of 
reasonable fees under the Equal Access to Justice Act to 
certain non-attorney practitioners before the Court.
    Effective date: Date of enactment except the following 
sections:
    Sec. 101(b): 50 percent effective June 1, 2003
                 100 percent effective December 2007
    Sec. 203: September 11, 2001
    Sec. 301: October 1, 2002
    Sec. 304(a) and (b): September 1, 2003
    Sec. 308(c): December 28, 2001
    Sec. 308(e): November 1, 2000
    Legislative history:
    April 24, 2002: Referred to the Senate Committee on Veterans' 
            Affairs.
    June 6, 2002: Senate Committee on Veterans' Affairs. Ordered to be 
            reported with an amendment in the nature of a substitute 
            favorably.
    August 1, 2002: Reported to the Senate with an amendment in the 
            nature of a substitute and an amendment to the Title, with 
            written report number 107-234.
    Sep. 26, 2002: Passed the Senate with an amendment and an amendment 
            to the Title by unanimous consent.
    Sep. 30, 2002: Received in the House.
    Nov. 15, 2002: The Majority Leader asked unanimous consent that the 
            House agree with amendments to the Senate bill. Agreed to 
            without objection. (Note: Consists of certain provisions 
            from H.R. 2561, H.R. 3423, H.R. 4085, H.R. 4940, and H.R. 
            5055.)
    Nov. 18, 2002: Senate concurred in the House amendments to the 
            Senate bill by unanimous consent.
    Dec. 6, 2002: Signed by the President, Public Law 107-330.
                      ACTIVITIES OF THE COMMITTEE


                         LEGISLATIVE ACTIVITIES

First Session

Hearing on H.R. 811, Veterans' Hospital Emergency Repair Act

    On March 13, 2001, the Committee held a hearing on H.R. 
811, the Veterans Hospital Emergency Repair Act. The Committee 
received testimony from three panels of witnesses, including 
the major veterans' organizations and two panels of witnesses 
representing the Department of Veterans Affairs (VA). Witnesses 
representing the veterans service organizations were: Mr. 
Dennis Cullinan, Director, National Legislative Service, the 
Veterans of Foreign Wars; Mr. Thomas Davies, A.I.A., Paralyzed 
Veterans of America; Ms. Joy Ilem, Assistant National 
Legislative Director, Disabled American Veterans; Mr. James 
Fischl, Director, National Veterans Affairs and Rehabilitation 
Commission, the American Legion; and Mr. Richard Jones, 
National Legislative Director, AMVETS (American Veterans of 
WWII, Korea and Vietnam).
    The two VA panels were led by Honorable Thomas L. 
Garthwaite, M.D., Under Secretary for Health, Veterans Health 
Administration (VHA), accompanied by Dr. Frances M. Murphy, 
Deputy Under Secretary for Health, VHA; Mr. D. Mark Catlett, 
Acting Assistant Secretary for Management, Office of Financial 
Management; and Mr. Charles Yarbrough, VHA Chief Facilities 
Management Officer. VA's second panel consisted of VHA Veterans 
Integrated Service Network (VISN) Directors, including Mr. 
Lawrence A. Biro, Director, VISN 4 (Pennsylvania-Delaware); Dr. 
Jeannette Chirico-Post, Director, VISN 1 (New England); Mr. 
Kenneth Clark, Director, VISN 22 (Southern California-Nevada); 
Ms. Patricia A. Crosetti, Director, VISN 15 (Missouri-Kansas); 
Mr. James J. Farsetta, Director, VISN 3 (New Jersey-New York 
City and lower Hudson Valley); and Robert L. Wiebe, M.D., 
Director, VISN 21(Northern California-Nevada).
    H.R. 811 would have provided the Secretary of Veterans 
Affairs a major medical facility construction authority for 
fiscal years 2002 and 2003 for projects that cost less than $25 
million each. Up to two projects could exceed this limitation 
if the purpose was for urgent seismic correction. The bill 
would have authorized $250 million in appropriations in fiscal 
year 2002 and $300 million in fiscal year 2003.
    This bill was introduced because the Committee identified 
the need for Congress to address problems of substandard and 
unsafe patient care infrastructure in some VA medical 
facilities. Many older VA hospitals are deteriorating because 
VA is encountering increasing difficulty in obtaining funding 
to update, modernize and renovate patient care facilities for 
veterans in need of care.
    For the past two years, VA has engaged in an effort to 
determine whether present VA health-care facility 
infrastructures are meeting veterans' needs in the most 
appropriate manner. This process, called ``Capital Assets 
Realignment for Enhanced Services'' (CARES), may not achieve 
its intended goals for at least several years. In the interim, 
the Committee was concerned that a number of VA hospitals need 
additional maintenance, repair and improvements to address 
immediate dangers and hazards, promote patient and staff 
safety, and maintain a reasonable standard of care for the 
veterans.
    After the introduction of this bill, VA provided the 
Committee with a list of immediate construction needs in VA 
medical centers that would be appropriate according to its 
provisions, as follows:


----------------------------------------------------------------------------------------------------------------
              Location                                   Purpose                                Cost
----------------------------------------------------------------------------------------------------------------
Atlanta.............................  Patient Wards Modernization.................  $12.9 million
Cleveland...........................  Special Emphasis Renovation.................  $19.6 million
Miami...............................  Energy Center Replacement...................  $24.9 million
San Diego...........................  Seismic Corrections.........................  $35.6 million
VISN 6..............................  Special Emphasis Renovation.................  $17.1 million
Augusta.............................  Spinal Cord Injury Modernization............  $10.6 million
Boston..............................  Clinical Inpatient Improvements.............  $25 million
Cleveland...........................  Ambulatory Surgery Consolidation............  $19.9 million
Dallas..............................  Mental Health Improvements..................  $27.6 million
Palo Alto...........................  Seismic Corrections.........................  $26.6 million
Philadelphia........................  Research Renovation.........................  $21.8 million
Pittsburgh..........................  Ambulatory Care Addition....................  $28.2 million
San Francisco.......................  Seismic Corrections.........................  $29.4 million
Syracuse............................  Clinical Expansion/MRI Addition.............  $4.7 million
Tampa...............................  Ambulatory Care Addition....................  $12 million
Washington..........................  Outpatient Clinic Expansion.................  $20.8 million
West Haven..........................  Nursing Units Renovation....................  $14.3 million
Los Angeles.........................  Seismic Corrections.........................  $26.6 million
----------------------------------------------------------------------------------------------------------------


    The Committee believes that numerous additional meritorious 
projects could have been identified and approved under the 
authority H.R. 811 would have provided.

Markup of H.R. 811

    On March 21, 2001, the Committee met to markup H.R. 811, 
the Veterans Hospital Emergency Repair Act. The bill was 
approved unanimously by the Committee, which ordered the bill 
reported favorably, as amended, to the House (see House Report 
107-28). The House passed the bill by voice vote on March 27, 
2001. However, the Senate did not act on it.

Hearing on H.R. 2716, the Homeless Veterans Assistance Act of 
2001, and H.R. 936, the Heather French Henry Homeless Veterans 
Assistance Act

    On September 20, 2001, the Committee on Veterans' Affairs 
held a hearing on homelessness among veterans, and received 
testimony on H.R. 2716, the ``Homeless Veterans Assistance Act 
of 2001'', introduced by the Committee's Chairman, Honorable 
Christopher H. Smith, and other Members on August 2, 2001, and 
another measure, H.R. 936, the ``Heather French Henry Homeless 
Veterans Assistance Act of 2001'', introduced by the 
Committee's Ranking Member, Honorable Lane Evans, and other 
Members on March 8, 2001.
    Those testifying at the hearing included: Dr. Frances M. 
Murphy, Deputy Under Secretary for Health, VHA; Mr. Peter H. 
Dougherty, Director, VA Homeless Veterans Program; Honorable 
Roy A. Bernardi, Assistant Secretary for Community Planning & 
Development, Department of Housing and Urban Development (HUD); 
Mr. John B. Garrity, Director, Office of Special Needs 
Assistance, HUD; Mrs. Heather French Henry, Miss America 2000; 
Mr. John Kuhn, Chief, VA New Jersey Homeless Services; Ms. 
Angela Gipson; Mr. Stuart Collick; Mr. Walter McConnell; Mr. 
Carl Blake, Associate Legislative Director, Paralyzed Veterans 
of America; Mr. Brian E. Lawrence, Associate National 
Legislative Director, Disabled American Veterans; Ms. 
Jacqueline Garrick, Deputy Director, Health Care, National 
Veterans Affairs & Rehabilitation Commission, The American 
Legion; Ms. Linda Boone, Executive Director, National Coalition 
for Homeless Veterans; Mr. Theodore R. Jones, Chief Steward, 
Local 1647, American Federation of Government Employees, AFL-
CIO; Mr. Len Selfon, Director, Veterans Benefits, Vietnam 
Veterans of America; and Mr. Richard Schneider, Director, 
State/Veterans Affairs, Non-Commissioned Officers Association.
    The main objective of H.R. 2716 was to address homelessness 
among the veteran population, innovative approaches at 
prevention, expansion of current programs, and applications of 
greater accountability for federally-funded programs. This bill 
consolidated and improved laws relating to homeless veterans 
into a new chapter 20 of title 38, United States Code.
    In addition, this bill established priorities for homeless 
programs when VA considers disposing of real property or 
entering into enhanced-use lease arrangements, and set aside 
rental assistance vouchers for The Department of Housing and 
Urban Development's VA-Supported Housing Program.
    H.R. 936 worked toward the goal of ending homelessness 
within veterans in a decade. It increased per diem payments for 
the care of homeless veterans by authorizing rates equal to 
that of state home domiciliaries. Other provisions of the bill 
authorized the establishment of a grant program for homeless 
veterans with special needs, dental care for veterans using VA 
homeless programs, technical assistance to nonprofit community 
based groups, and an Advisory Committee on Homeless Veterans.
    Each of the witnesses expressed strong overall support for 
the bills.

Markup of H.R. 2716

    On October 4, 2001, the Subcommittee on Health met and 
unanimously favorably reported H.R. 2716, as amended, to the 
full Committee. A number of the concepts of H.R. 936 were 
included in H.R. 2716. On October 10, 2001, the full Committee 
met and ordered H.R. 2716 reported favorably, as amended, to 
the House by unanimous voice vote (see House Report 107-241, 
Part I). On October 16, 2001, the House passed H.R. 2716, as 
amended, by voice vote. On December 6, 2001, the Senate passed 
the bill with an amendment by unanimous consent. Five days 
later the House agreed by voice vote to accept the Senate 
amendment, which was subsequently enacted into Public Law 107-
95, the Homeless Veterans Comprehensive Assistance Act of 2001, 
on December 21, 2001 (see p. 11 for summary).
Hearing on H.R. 3423, to Enact into Law Eligibility of Certain 
Veterans and Their Dependents for Burial in Arlington National 
Cemetery

    On December 13, 2001, the Committee held a hearing on H.R. 
3423, which would have extended in-ground burial eligibility in 
Arlington National Cemetery to members or former members of a 
reserve component of the Armed Forces and their dependents, who 
at the time of death were under 60 years of age and but for 
age, would have been eligible for military retired pay under 
title 10, United States Code. H.R. 3423 would also have 
extended such eligibility to members of a reserve component of 
the Armed Forces who die in the line of duty while on active 
duty for training or inactive duty training, and their 
dependents. Further, the bill would have authorized the 
Secretary of the Army to construct and place a memorial at 
Arlington National Cemetery honoring the victims of the acts of 
terrorism perpetrated against the United States on September 
11, 2001. Over the years, Congress has extended various 
veterans' benefits to members of the reserve components (the 
Reserve and National Guard) that were previously available only 
to veterans who had served on active duty. Reservists play an 
essential role in the total force concept of today's military; 
the reserve components are responsible for providing many 
critical skills and mission capabilities.
    Mr. John Metzler, Superintendent, Arlington National 
Cemetery, testified on behalf of the Administration. 
Representatives of the veterans service organizations included 
Mr. Bob Manhan, Veterans of Foreign Wars; Mr. Steven Garrett, 
The Retired Enlisted Association; Mr. Richard Schneider, Non 
Commissioned Officers Association; Mr. Bob Norton, The Retired 
Officers Association; and Mr. Patrick Eddington, Vietnam 
Veterans of America.
    The Administration did not support codification of burial 
eligibility criteria. The Administration disapproved expansion 
of the burial eligibility because of current space limitations 
at the cemetery and the possible denial of in ground burial to 
other eligible veterans. The veterans service and military 
organizations strongly supported the bill.
    On December 13, 2001, the full Committee met and ordered 
H.R. 3423 reported favorably, as amended, to the House by 
unanimous voice vote (see House Report 107-346). On December 
20, 2001, the House passed H.R. 3423, as amended, by voice 
vote. However, the Senate did not act on the bill.

Second Session

Hearing on H.R. 4939, the Veterans Medicare Payment Act of 2002

    On June 13, 2002, Chairman Smith introduced H.R. 4939, the 
Veterans Medicare Payment Act of 2002, which would have amended 
title 18 of the Social Security Act to provide for a transfer 
of the Part B (Supplementary Medical Insurance) premium payment 
from the Federal Supplementary Medical Insurance Trust Fund to 
the Department of Veterans Affairs for outpatient care 
furnished to Medicare-eligible veterans by the Department.
    The bill would have allowed VA to begin receiving an annual 
sum of money in 2003, equal to the Medicare Part B premium paid 
by each veteran enrolled in Medicare Part B and also receiving 
outpatient care from VA during that year. For 2002, the monthly 
Medicare Part B premium was approximately $54 and would have 
resulted in annual payments of approximately $650 for each 
covered veteran. The bill would have allowed covered veterans 
to choose both VA and non-VA health care providers to meet 
their outpatient care needs.
    The Committee held a legislative hearing on H.R. 4939, the 
Veterans Medicare Payment Act of 2002, on July 13, 2002. The 
principal witnesses were Honorable Robert H. Roswell, M.D., 
Under Secretary for Health, VHA, accompanied by Dr. Frances M. 
Murphy, Acting Deputy Under Secretary for Health and Policy 
Coordination, VHA, and Mr. Tim S. McClain, VA General Counsel; 
Mr. Tom Grissom, Director, Center for Medicare Management at 
the Centers for Medicare and Medicaid, Department of Health and 
Human Services (HHS); Mr. Carl Blake, Associate Legislative 
Director, Paralyzed Veterans of America; Mr. Paul A. Hayden, 
Deputy Director, National Legislative Service, Veterans of 
Foreign Wars; Mr. Steve Robertson, Director, National 
Legislative Commission, The American Legion; Mr. Rick Weidman, 
Director, Government Relations, Vietnam Veterans of America; 
and Ms. Joy J. Ilem, Assistant National Legislative Director, 
Disabled American Veterans.
    Dr. Roswell testified that, although VA strongly supported 
the concept of coordinating federal health care benefits to 
enhance beneficiary care and maximize the use of federal funds, 
the Administration was concerned that this transfer of federal 
funds would significantly increase mandatory spending with no 
identified offset; and that the additional income would likely 
be offset against the appropriations, thus resulting in zero 
net gain in additional resources for VA medical care. VA 
pointed out the existence of the presidential task force 
examining the coordination of health care delivery issues 
between VA and the Department of Defense.
    Mr. Tom Grissom, Director of the Center for Medicare 
Management at the Centers for Medicare and Medicaid, HHS, 
agreed in his testimony that beneficiaries eligible for both 
Medicare and veterans health care benefits should enjoy a wide 
range of choices and improved service, provided that any 
changes to the Medicare program did not harm the financial 
integrity of the Medicare Trust Funds.
    In a second panel, testimony from five veterans service 
organizations offered support for the intent of the bill and 
suggested additional considerations regarding such issues as 
service-disabled veterans, specialized care, TRICARE for Life-
compatible authority and mandatory funding for VA health care.

                          OVERSIGHT ACTIVITIES

First Session

Hearing on Proposed Fiscal Year 2002 Budgets for Veterans 
Programs

    On March 6, 2001, the Committee held a hearing on the 
fiscal year 2002 budgets for veterans programs. The principal 
witness for VA was Honorable Anthony J. Principi, Secretary of 
Veterans Affairs. Representatives testifying on behalf of the 
Independent Budget group were: Mr. Harley Thomas, Health Policy 
Analyst, Paralyzed Veterans of America; Mr. David W. Gorman, 
Executive Director, Disabled American Veterans; Mr. Howie 
DeWolf, National Service Director, AMVETS; Mr. Frederico 
Juarbe, Jr., Director, National Veterans Service, Veterans of 
Foreign Wars. Also testifying were: Mr. James R. Fischl, 
Veterans Affairs & Rehabilitation Commission, The American 
Legion; Mr. Richard Weidman, Director, Government Relations, 
Vietnam Veterans of America; and Mr. Mark Olanoff on behalf of 
National Military Veterans Alliance.
    The Administration submitted a broad budget outline without 
detailing specific program funding levels. The President 
requested over $51 billion for veterans' benefits and services, 
with $28.1 billion for entitlement programs and $23.4 billion 
for discretionary programs. This proposed budget amounted to a 
discretionary funding increase of $1 billion or 4.5 percent 
more than the fiscal year 2001 funding level.
    The veteran service organization representatives presenting 
the Independent Budget testified that the President's budget 
was not adequate and at least a $1.3 billion increase in 
discretionary funding was necessary to maintain the status quo. 
In order to realize VA's stated goals for improving medical 
care, the Independent Budget asked for an increase of at least 
$2.7 billion.
    The Committee recommended a fiscal year 2002 budget calling 
for a $2.1 billion increase in discretionary spending for VA. 
The Committee recommended increases of more than $1.525 billion 
for VA medical care, including $141 million for mental health 
programs, $100 million for higher pharmacy costs, $88 million 
for long-term care, $75 million for staff to reduce waiting 
times, $68 million for emergency care, $30 million for homeless 
programs, $23 million for spinal cord injury programs a $1 
billion inflationary adjustment.
    The Committee also recommended a $130 million increase for 
VBA, including $49.8 million for 830 full time employees to 
help reduce a large claims backlog. In addition to the 
recommended discretionary spending increases, the Committee 
recommended $300 million in additional direct spending for 
education and other benefits increases (see p. 92, Report on 
the Budget Proposed for Fiscal Year 2002).

Hearing on VA's Ability to Respond to DOD Contingencies and 
National Emergencies

    On October 15, 2001, the Committee held a hearing to 
examine VA's role in responding to Department of Defense 
contingencies and national emergencies. Witnesses included: Ms. 
Cynthia A. Bascetta, Director, Veterans' Health and Benefits 
Issues, GAO; Honorable Anthony J. Principi, Secretary of 
Veterans Affairs; Honorable Claude A. Allen, Deputy Secretary 
of Health and Human Services; Dr. Sue Bailey, former Assistant 
Secretary of Defense for Health Affairs; Mr. Kenneth S. 
Kasprisin, Associate Director of the Readiness, Response and 
Recovery Division, Federal Emergency Management Agency; Mr. 
James Krueger, Executive Vice President for Chapter Services 
Network, the American Red Cross; Ms. Annie W. Everett, Acting 
Regional Administrator for the National Capitol Region, U.S. 
General Services Administration; and Honorable David S. C. Chu, 
Under Secretary of Defense for Personnel and Readiness.
    Public Law 97-174, the ``Veterans' Administration and 
Department of Defense Health Resource Sharing and Emergency 
Operations Act,'' (section 8111A of title 38, United States 
Code) states that VA is the principal medical care backup for 
military health care ``during and immediately following a 
period of war, or a period of national emergency declared by 
the President or the Congress that involves the use of Armed 
Forces in armed conflict.''
    Under the VA/DOD Contingency Hospital System, DOD may use 
available VA hospital beds for treatment of casualties. The Act 
also provided for the establishment of a national database to 
collect information about bed availability within VA to support 
DOD needs. The terrorist attacks of September 11th necessitated 
assessment of VA capabilities to provide health care to 
casualties that could result from either military operations or 
national emergencies.
    The Committee examined a number of issues concerning VA's 
statutory role, and whether its role should be enhanced. The 
hearing also reviewed what impact the President's call up of 
the Reserve Components would have on VA medical personnel and 
its ability to provide patient care. Secretary Principi 
provided a detailed account of the actions taken by VA in the 
aftermath of the attacks, as well as VA's state of readiness to 
respond to future events. The Committee also heard from a 
number of federal agencies that work with VA in the Federal 
Response Plan and the National Disaster Medical System. The 
Committee questioned these agencies on both the effectiveness 
of the assistance received from VA, and the potential for VA to 
provide support in additional areas. VA and the agencies 
present agreed that further cooperation would enhance the 
Nation's ability to respond to future terrorist attacks.
    Finally, the Committee requested assurance from Secretary 
Principi that the VA clinical and research laboratories 
authorized to receive and store potential biological agents, 
chemical agents, radiological agents with potential use in 
weapons of mass destruction were adequately secure, and that 
individuals with access to those materials were of known 
reliability. Secretary Principi responded with an investigation 
of VA laboratories by the Office of the Inspector General (IG) 
and subsequently addressed the IG's findings.

Hearing to Receive the Report of the VA Claims Processing Task 
Force

    On November 6, 2001, the Committee held a hearing to 
receive the report of the VA Claims Processing Task Force. 
Admiral Daniel Cooper (USN, Ret.), Chairman of the Task Force, 
testified on behalf of the Task Force.
    The Task Force was created by the Secretary of Veterans 
Affairs in April 2001 to find ways to make adjudicating 
applications for veterans benefits faster, easier, and more 
accurate. The 10-person task force examined issues affecting 
disability claims adjudication, including medical examinations, 
information technology, and efforts to reduce the backlog and 
increase the accuracy of decisions. The Task Force delivered 
their final report to the Secretary on October 3, 2001.
    Admiral Cooper outlined the Task Force's mission, 
methodology, and recommendations. The Task Force made 34 
recommendations: 20 short-term recommendations possible to 
implement within six months, and 14 medium-term 
recommendations. The recommendations of the Task Force fell 
within the following general categories: freeing up direct 
labor hours; eliminating the backlog; improving claims 
timeliness; improving accountability; streamlining the 
organization, management and process of adjudicating claims; 
streamlining operations; improving the quality of decisions; 
improving and streamlining compensation and pension medical 
examinations; examining appeals and remands; and examining the 
training procedures at the regional office level.

Second Session

Hearing on Proposed Fiscal Year 2003 Budgets for Veterans 
Programs

    On February 13, 2002, the Committee held a hearing on 
proposed fiscal year 2003 budgets for veterans programs. The 
principal witnesses for the government were Honorable Anthony 
J. Principi, Secretary of Veterans Affairs, and Honorable 
Frederico Juarbe, Jr., Assistant Secretary for Veterans' 
Training and Employment, Department of Labor. Representatives 
testifying on behalf of the Independent Budget group were: Mr. 
Bob Jones, Executive Director, AMVETS, Mr. Richard B. Fuller, 
National Legislative Director, Paralyzed Veterans of America, 
Mr. Rick Surratt, Deputy National Legislative Director, 
Disabled American Veterans, Mr. Dennis Cullinan, Director, 
National Legislative Service, Veterans of Foreign Wars, and Mr. 
Richard Jones, National Legislative Director, AMVETS. Also 
testifying were Mr. James R. Fischl, Director, National 
Veterans Affairs & Rehabilitation Commission, The American 
Legion, and Mr. Rick Weidman, Director, Government Relations, 
Vietnam Veterans of America.
    On behalf of the Administration, Honorable Anthony J. 
Principi presented a budget proposal of $58 billion for 
veterans' benefits and services--$30.1 billion for entitlement 
programs and $27.9 billion for discretionary programs. This 
represented an increase of $6.1 billion over the 2002 enacted 
level, with VA's discretionary funding receiving a $3.1 billion 
increase over the 2002 level, including medical care 
collections. Secretary Principi presented the budget as ``. . . 
the largest increase ever proposed for veterans' discretionary 
programs.'' Excluding certain new activities, VA's budget for 
discretionary programs reflected an increase of $1.9 billion, 
or 7.8 percent over the previous year's funding level.
    VA's budget proposal included a ``demand initiative'' of 
$1.8 billion in funding for new veterans expected to seek VA 
health care in fiscal year 2003; $396 million to address health 
care inflation for fiscal year 2003, and $317 million in 
savings to be achieved through management improvements. The 
budget request also included a legislative proposal that 
Congress impose an annual health care deductible of $1,500 for 
Priority 7 veterans.
    For fiscal year 2003, the Independent Budget recommended a 
medical care appropriation of $24.468 billion, representing an 
increase of $3.1 billion over fiscal year 2002. This proposed 
increase assumed no new initiatives or workload increases. The 
veterans service organization representatives testifying on 
behalf of the Independent Budget estimated the veterans budget 
for fiscal year 2002 was inadequate by $1.5 billion. To address 
this shortfall, and to provide for the current services 
requirements of VA, the Independent Budget recommended a $3.1 
billion increase.
    The Committee recommended increasing spending on veterans' 
health care by $3.2 billion to a level of $24.5 billion in the 
fiscal year 2003 budget. The Committee proposed that VA health 
care funding be increased more than $1.8 billion above the 
Administration's budget request for fiscal year 2003, an 
increase in health care and other discretionary spending of 
more than $3.6 billion over fiscal year 2002 appropriations, 
including almost $1 billion requested by the Administration to 
cover increased payroll costs and medical inflation. In 
addition, the major recommendations of the Committee for 
increases above the budget proposal from the Administration 
were: $1.1 billion to meet increased demand by Priority 7 
veterans for health care; $300 million to make up a budget 
shortfall from fiscal year 2002; $194 million for hospital 
construction and renovation; $150 million for health care 
enhancements, including long term care and services for 
homeless veterans; and $200 million for emergency preparedness, 
including medical backup for DOD and bio-terrorism response 
(see p. 112, Report on the Budget Proposed for Fiscal Year 
2003).

Hearing on Recommendations to Revise VA System of Health Care 
Resource Allocation

    On April 30, 2002, the Committee held a field hearing in 
Trenton, New Jersey, on the status of recent recommendations to 
revise the system VA uses to make resource allocations to its 
health care facilities. The principal witnesses were Honorable 
Robert H. Roswell, M.D., Under Secretary for Health, VHA; Mr. 
Michael Slachta, Jr., VA Assistant Inspector General for 
Auditing, accompanied by Mr. Stephen L. Gaskell, Director, 
Office of Audit Central Office Operations Division; Ms. Cynthia 
A. Bascetta, Director, Healthcare-Veterans' Health and Benefits 
Issues, U.S. General Accounting Office (GAO), accompanied by 
Dr. James C. Musselwhite, Assistant Director, Healthcare, GAO; 
Mr. Michael H. Wysong, New Jersey Legislative Director, 
Veterans of Foreign Wars, accompanied by Mr. Donald E. 
Marshall, Jr., State Commander, Veterans of Foreign Wars; Mr. 
Vincent S. Bevilacqua, Department Service Officer, Department 
of New Jersey, The American Legion; Mr. Paul J. Tobin, 
Associate Executive Director of Benefit Services, Eastern 
Paralyzed Veterans Association; Mr. Daniel T. Flynn, Commander, 
Department of New Jersey, Disabled American Veterans; and Mr. 
Robert Maras, National Board of Directors, Vietnam Veterans of 
America.
    The Veterans Equitable Resource Allocation (VERA) formula 
pursuant to Public Law 104-204 apportions federal funding for 
veterans' health care to the 21 Veterans Integrated Service 
Networks (VISNs) in the United States. This hearing focused on 
GAO and VA Inspector General reports calling for significant 
changes to the VERA formula.
    First implemented in April 1997, the goal of the VERA 
formula was to better align VA's limited health care resources 
with the changing workloads at VA facilities across the 
country. According to the GAO and the VA Inspector General 
witnesses, however, their reports pointed out important 
weaknesses with the current VERA formula.
    The hearing testimony emphasized the dramatic increase in 
demand by veterans for health care at VA. Prescription drug 
costs have risen dramatically in the past several years, while 
retirement income levels have remained fairly static. These 
combined trends have generated demand for VA-provided 
prescription drugs. At the same time, millions of veterans 
continue to use VA as their primary care provider because of 
the quality medical services available at increasingly 
convenient locations.
    VA agreed at the conclusion of the hearing to consider the 
issues presented and to make appropriate modifications in the 
fiscal year 2003 VERA cycle wherever possible.

Hearing on Department of Veterans Affairs Homeless Veterans 
Programs

    On September 12, 2002, the Committee held a hearing to 
assess the implementation of Public Law 107-95, the Homeless 
Veterans Comprehensive Assistance Act of 2001, (see p. 11 for 
summary) and other matters dealing with assistance to homeless 
veterans. This Act was signed into law on December 21, 2001, 
and amended title 38, United States Code, by revising, 
improving and consolidating provisions of law that provide 
benefits and services to homeless veterans into a new Chapter 
20.
    The principal witnesses were Honorable Anthony J. Principi, 
Secretary of Veterans Affairs, accompanied by Mr. Peter H. 
Dougherty, Director, VA Homeless Veterans Programs, Office of 
Public and Intergovernmental Affairs, Ms. M. Gay Koerber, 
Associate Chief Consultant, Health Care for Homeless Veterans, 
VHA, and Ms. Diane Fuller, Assistant Director, Veterans 
Services Staff, Compensation and Pension Service, VBA; Mr. 
Raymond Boland, Secretary, Wisconsin Department of Veterans' 
Affairs; Mr. G. Allan Kingston, President/CEO, Century Housing 
Corporation, Los Angeles, California; Mr. Robert Van Keuren, 
Chairman, Advisory Committee on Homeless Veterans; Ms. Linda 
Boone, Executive Director, National Coalition for Homeless 
Veterans; Mr. Richard C. Schneider, Director, State/Veterans 
Affairs, Non Commissioned Officers Association; Mr. Philip 
Mangano, Executive Director, Interagency Council on 
Homelessness; Mr. John Kuhn, Chief, New Jersey Homeless 
Services, Department of Veterans Affairs; Mr. Carroll Thomas, 
Chief Executive Officer of Middlesex County's Economic 
Opportunity Corporation; Mr. Scott Gaines, Veteran, United 
States Navy; Ms. Winter Otis, Veteran, United States Army; and. 
Mr. Jerome McCoy, Veteran, United States Marine Corps. The 
Committee also received statements for the record from Mr. 
Richard Jones, National Legislative Director, AMVETS, and Ms. 
Sandra A. Miller, Chair, Vietnam Veterans of America.
    Public Law 107-95 improved the accountability of the three 
federal departments most directly involved in homeless 
assistance to veterans: VA, and the Departments of Labor (DOL), 
and Housing and Urban Development (HUD). It provided $1 billion 
in new authorities over the next five years, including: 
increases in VA's grant and per diem program; new funds for the 
Homeless Veterans Reintegration Program (HVRP) at DOL; 
demonstration projects that deal with the most seriously 
mentally ill homeless veterans; approaches for homeless 
veterans with special needs, such as terminal illness, female 
veterans with dependent children, veterans who are frail and 
elderly; projects that focus on jailed or imprisoned veterans; 
a supported-housing voucher program administered jointly by VA 
and HUD; and technical assistance grants to community-based 
provider organizations.
    With the Homeless Veterans Comprehensive Assistance Act of 
2001, Congress identified ending chronic homelessness among 
veterans within a decade as a national goal. Honorable Anthony 
J. Principi cautioned that, while the authorities provided in 
this legislation will greatly assist in the effort to meet this 
goal, it will also take significant resources to implement many 
of the programs, which must be weighed against other VA health 
care priorities. Secretary Principi elaborated on the progress 
VA has made in the past nine months with a number of the 
provisions included in Public Law 107-95, such as the creation, 
charter and appointment of the Federal Advisory Committee on 
Homelessness; revitalization of the Interagency Council on 
Homelessness with HUD; partnerships with HUD, HHS, the 
Departments of Justice, DOL, and Agriculture and the Internal 
Revenue Service have been established on a variety of matters 
to improve veterans' access to homeless prevention and related 
services.
    The Secretary testified that since authorized in 1992, the 
Homeless Providers Grant and Per Diem Program has obligated $63 
million to help develop 5,700 transitional housing beds and 17 
independent service centers, and purchase 128 vans. These 
projects are in 45 States and the District of Columbia. An 
additional 1,200 beds in existing community-based programs for 
the homeless have also received funding from VA.
    Secretary Principi provided additional testimony on the 
status of such provisions as outreach services to address the 
needs of veterans at risk for homelessness (those being 
released from institutions after inpatient psychiatric care, 
substance abuse treatment, or imprisonment). These services 
were being explored collaboratively between VA, DOJ, and DOL. 
VA has established 35 Domiciliary Care for Homeless Veterans 
(DCMV) programs with a total of 1,873 beds over the past 15 
years, according to the Secretary.
    In addition, HUD funded three rounds of Section 8 vouchers 
of almost 600 vouchers each (a total of 1,753) for the HUD-VASH 
(VA Supported Housing) program. The Secretary reported that a 
rigorous experimental, three-year follow-up study found that 
HUD-VASH veterans had 25 percent more nights housed than 
veterans receiving standard VA care and had 36 percent fewer 
nights of homelessness. Three years after entering the program, 
80 percent of these veterans remained independently housed 
through the program. Despite the demonstrated effectiveness and 
existing authority for the program already existed, the 
Committee was disappointed to learn that no additional 
resources had been designated to issue new vouchers.
    The slow forward movement in the Loan Guaranty for 
Multifamily Housing for Homeless Veterans program is another 
area of concern to the Committee. Secretary Principi pledged to 
implement this program on a pilot basis, in three to five 
locations, beginning in fiscal year 2004.
    A major contribution to this hearing was the testimony of 
three formerly homeless veterans, Mr. Scott Gaines, Ms. Winter 
Otis, and Mr. Jerome McCoy, whose lives were positively 
impacted by the programs authorized in Public Law 107-95.

Hearing to Review the Department of Veterans Affairs Report on 
Veterans Burial Needs

    On October 16, 2002, the Committee held a hearing on the 
current and future burial needs of America's veterans. 
Witnesses included: Dr. William Moore, Vice President for 
Infrastructure Management, Logistics Management Institute; Mr. 
Ronald Lind, Program Director, Organizational Improvement, 
Logistics Management Institute; Mr. Donald Prettol, Research 
Fellow, Logistics Management Institute; Mr. Vincent Barile, VA 
Deputy Under Secretary for Memorial Affairs; Mr. Daniel Tucker, 
Director, Office of Finance and Planning, NCA; and Mr. Richard 
Jones, National Legislative Director, AMVETS, on behalf of the 
Independent Budget.
    Congress originally passed legislation in July of 1862 
authorizing the President to purchase ``cemetery grounds to be 
used as national cemeteries for soldiers who shall have died in 
the service of the country.'' NCA had an operating budget of 
$121 million for fiscal year 2002 with approximately 1,460 full 
time employees. NCA provided more than 83,000 internments 
annually. This figure represents an eight percent increase over 
the number of burials in the previous year.
    At the hearing, the Logistics Management Institute (LMI) 
witnesses presented the Committee with a summary of its report, 
``Study on Improvements to Veterans Cemeteries.'' The report 
was mandated by section 613 of Public Law 106-117, the 
Millennium Health Care and Benefits Act of 1999.
    Two major issues concerning future burial needs were raised 
at the hearing. The first issue was the appropriateness of the 
75-mile area of service radius set by VA. The second was VA's 
decision to build only three of 31 new cemeteries LMI 
recommends will be needed by 2020. LMI examined the existing 
conditions of each cemetery and recommended a set of standards 
that NCA can use throughout its system. The standards of 
appearance fell into two categories, maintenance and burial 
operations. The standards were for headstones, turf and other 
groundcover, horticulture, facilities, floral tributes, 
neatness, personnel and security. LMI's overall assessment 
identified the need for 928 projects totaling more than $279 
million. There was a general consensus among Committee members 
and witnesses that a set of national standards for cemetery 
appearance should be established.
    The State Cemetery Grants Program (SCGP) was also 
discussed. The SCGP works with NCA to establish gravesites for 
veterans where NCA cannot meet the burial needs of veterans. 
The SCGP was established in 1978 to complement NCA. The program 
assists states in providing gravesites for veterans in those 
areas where VA's national cemeteries cannot meet the burial 
needs of our veterans. VA has authority to provide up to 100 
percent of the planning, design, and construction of an 
approved new cemetery. In response to questioning, LMI stated 
that it made no assumptions of additional state cemeteries 
concerning its construction recommendations.

                    ACTIVITIES OF THE SUBCOMMITTEES


                         Subcommittee on Health

    The Subcommittee on Health has legislative and oversight 
jurisdiction over the Department of Veterans Affairs' health 
care programs and the VA's health care delivery system (see p. 
85 for Oversight Plan for 107th Congress).

                         LEGISLATIVE ACTIVITIES

First Session

Hearing on H.R. 2792, the Disabled Veterans Service Dog and 
Health Care Improvement Act of 2001 and Related Legislative 
Matters

    On August 2, 2001, the Honorable Jerry Moran, Chairman of 
the Subcommittee on Health, introduced H.R. 2792, the Disabled 
Veterans Service Dog and Health Care Improvement Act of 2001. 
The bill authorized VA to provide service dogs to disabled 
veterans suffering from spinal cord injuries or dysfunction, 
other diseases causing physical immobility, hearing loss or 
other types of severe disabilities susceptible to improvement 
or enhanced functioning in activities of daily living through 
employment of a service dog. Also, the bill required a veteran 
to be enrolled in VA care as a prerequisite to eligibility for 
a service dog. The measure clarified that service dogs be 
provided to veterans in accordance with existing priorities for 
VA health care enrollment. H.R. 2792 strengthened the mandate 
for VA to maintain capacity in specialized medical programs for 
veterans by requiring each Veterans Integrated Service Network 
(VISN) to maintain a proportional share of national capacity in 
certain specialized health care programs. Those programs deal 
with serious mental illness, including: substance use 
disorders, opioid substitution programs; programs for ``dual 
diagnosis'' patients; spinal cord, brain injured and blinded 
veterans rehabilitation programs; and prosthetics and sensory 
aids programs.
    Further, the bill established a new chiropractic services 
program in the Department, beginning with 30 medical centers, 
with nationwide implementation over a five-year period. It 
authorized chiropractors to be appointed as VA employees or 
their services acquired through contract, and created an 
advisory committee on chiropractic health care. It authorized 
chiropractors to function as VA primary care providers, and 
provided for a national director of chiropractic service 
appointed with the same authority as other service directors in 
the Department's headquarters.
    On September 6, 2001, the Subcommittee held a legislative 
hearing on H.R. 2792; and also on H.R. 1136, a bill to require 
VA pharmacies to dispense medications to veterans for 
prescriptions written by private practitioners; H.R. 1435, a 
bill to award grants to provide for a national toll-free 
hotline to provide information and assistance to veterans; and 
H.R. 936, the Heather French Henry Homeless Veterans Assistance 
Act.

The hearing witnesses were: Representative Lois Capps of 
California; Representative Dave Weldon of Florida; 
Representative Roger Wicker of Mississippi; Honorable Anthony 
J. Principi, Secretary of Veterans Affairs; Dr. Frances Murphy, 
Deputy Under Secretary for Health, Veterans Health 
Administration (VHA); Mr. Richard Fuller, National Legislative 
Director, Paralyzed Veterans of America; Ms. Joy Ilem, 
Assistant National Legislative Director, Disabled American 
Veterans; Mr. Thomas H. Miller, Executive Director, Blinded 
Veterans Association; Ms. Jacqueline Garrick, Deputy Director, 
American Legion; Mr. Richard Jones, National Legislative 
Director, AMVETS; and, Ms. Beth Barkley, Vice President, A 
Rinty for Kids, Inc., accompanied by several service dogs.

    Witnesses supported a number of the proposals in the bills 
before the Subcommittee; nevertheless, the Secretary expressed 
concerns and reservations about a proposal in H.R. 2792 that 
would authorize a VA-community coordination pilot demonstration 
project. Also, the Secretary expressed concerns over the cost 
of the bill relative to other priorities for Veterans Health 
Administration.
    Representative Weldon defended the VA-community 
coordination proposal, which had its genesis in a single-site 
demonstration in his Congressional district. Representative 
Wicker urged the Subcommittee to give further consideration to 
the concept of VA providing a prescription drug service to 
veterans who are cared for in their communities by licensed 
physicians and other caregivers licensed by state law to 
prescribe drugs. Representative Capps recommended her concept 
in H.R. 1435 of a toll-free hotline telephone service for 
veterans in need of VA interventions, as a means to improve 
coordination across VA programs, to stem homelessness, and 
employed as a performance improvement tool for the Department.
    Veterans organization witnesses generally supported many of 
the provisions in H.R. 2792. However, most veteran service 
organizations expressed significant concerns about the 
coordinated-care demonstration pilot, in addition to concerns 
about providing a prescription-only service, as presented in 
H.R. 1136.

Subcommittee Markup of H.R. 2792

    On October 4, 2001, the Subcommittee on Health met and 
unanimously favorably reported H.R. 2792, as amended, to the 
full Committee. The bill, as amended, incorporated a number of 
proposals considered by the Subcommittee during the hearing on 
September 6, 2001. On October 10, 2001, the full Committee met 
and by voice vote ordered H.R. 2792, as amended, reported 
favorably to the House (see House Report 107-242). On October 
23, 2001, the House approved H.R. 2792, as amended. 
Subsequently, the Chairman of the Senate Veterans' Affairs 
Committee introduced S. 1188, a bill with a number of measures 
identical to the House bill.
    The House and Senate Committees on Veterans' Affairs 
developed consensus legislation on these bills, subsequently 
introduced on December 11, 2001, by the Chairman and Ranking 
Member of the House Committee as a new bill, H.R. 3447, the 
Department of Veterans Affairs Health Care Programs Enhancement 
Act of 2001. The House passed H.R. 3447 on December 11, 2001 
and the Senate passed it on December 20, 2001. The bill was 
signed by the President on January 23, 2002, and became Public 
Law 107-135 (see p. 18 for summary).

Second Session

Hearing on H.R. 3253, National Medical Emergency Preparedness 
Act of 2001 and H.R. 3254, Medical Education for National 
Defense in the 21st Century Act

    On April 10, 2002, the Subcommittee on Health held a 
hearing to consider the following bills: H.R. 3253, National 
Medical Emergency Preparedness Act of 2001; and H.R. 3254, the 
Medical Education for National Defense in the 21st Century Act. 
The hearing witnesses were: Honorable Leo S. Mackay, Jr., 
Ph.D., Deputy Secretary of Veterans Affairs, accompanied by 
Honorable Robert H. Roswell, M.D., Under Secretary for Health, 
VHA, and Dr. Kristi Koenig, Director, Emergency Management 
Strategic Healthcare Group, VHA; Dr. Kevin Yeskey, Director, 
Bio-Terrorism Preparedness and Response Program, Centers for 
Disease Control and Prevention, Department of Health and Human 
Services; Dr. Deborah E. Powell, Executive Dean, University of 
Kansas School of Medicine; and Dr. Stephen F. Wintermeyer, 
Associate Professor of Clinical Medicine, Indiana University 
School of Medicine.
    Also, the Subcommittee received testimony from 
representatives of veterans service organizations, including: 
Ms. Joy J. Ilem, Assistant National Legislative Director, 
Disabled American Veterans; Mr. Richard Jones, National 
Legislative Director, AMVETS; Mr. Thomas H. Corey, National 
President, Vietnam Veterans of America; Mr. James R. Fischl, 
Director, National Veterans Affairs and Rehabilitation 
Commission, The American Legion; Mr. Richard B. Fuller, 
National Legislative Director, Paralyzed Veterans of America; 
and Mr. Paul A. Hayden, Deputy Director, National Legislative 
Service, Veterans of Foreign Wars.
    As part of the response to the September 11th terrorist 
attacks on the Nation, H.R. 3253 provided for at least four 
geographically separated National Medical Emergency 
Preparedness Centers. Each center would study remedies for the 
health consequences that arise from human exposure to chemical, 
biological, and nuclear substances that may be used as weapons 
of mass destruction. The bill authorized $100 million over five 
years to fund the new centers.
    In addition to its medical care mission to care for 
millions of veterans, the veteran's health care system is the 
nation's largest provider of graduate medical education and is 
a major contributor to biomedical and other scientific 
research. Because of its widely dispersed, integrated health 
care system, the Committee believes VA should be appropriately 
utilized as a medical asset in responding to national, regional 
and local emergencies. The VA has long been an integral part of 
the Federal Response Plan, and an important local resource in 
helping communities cope with natural disasters of recent 
years. VA should be prepared to conduct research and develop 
detection, diagnosis, prevention and treatment methods for 
responding to emergencies, and should serve as a clearinghouse 
to disseminate related information to other public and private 
health care providers.
    H.R. 3254, the Medical Education for National Defense in 
the 21st Century Act, introduced Representative Steve Buyer of 
Indiana on November 8, 2001, gave VA the responsibility to 
establish a program to develop and disseminate model education 
and training programs for medical responses to terrorist 
activities. VA's national infrastructure, which allows 
affiliations with over 107 medical schools and other schools of 
the health professions, is ideal for preparing medical 
professionals to be more knowledgeable and medically competent 
in the treatment of casualties from terrorist attacks.
    Testifying for the Department, Deputy Secretary Mackay 
acknowledged that VA has the infrastructure and expertise to be 
a vital and integral link in the nation's Homeland Security 
efforts, with VA facilities in virtually every community across 
the United States. VA has a robust research program and is 
already actively engaged in numerous projects in the areas of 
bio-terrorism and medical emergency preparedness. However, the 
Deputy Secretary raised two major concerns with the proposed 
legislation. The first concern centered on the President's 
Homeland Security policy, which was pending at that time. The 
Department asked the Committee to ensure that the provisions of 
H.R. 3253 and H.R. 3254 were consistent with the comprehensive 
federal plan for homeland security.
    The second concern the Deputy Secretary presented in his 
testimony focused on the inadequacy of the Department's budget 
to implement an unfunded mandate of this scope. Deputy 
Secretary Mackay testified that carrying out the proposed 
activities of H.R. 3253 and H.R. 3254 without dedicated funding 
could unacceptably diminish VA's ability to provide health care 
and services to veterans and their families. This particular 
concern was shared by Members of the Subcommittee and witnesses 
alike.
    Dr. Kevin Yeskey, testifying for the Centers for Disease 
Control and Prevention (CDC), provided an overview of CDC's 
activities to improve the nation's capability to prepare for 
and respond to a bio-terrorist event, and asserted CDC's 
commitment to working with other federal agencies and partners, 
as well as state and local public health departments to ensure 
the health and medical care of our citizens.
    Dean Powell was extremely supportive of efforts to 
strengthen the partnerships between the VA medical centers and 
its affiliated health professional schools. These historical 
partnerships are well-established and uniquely suited to meet 
the challenges confronting the nation. Dean Powell pledged that 
the University of Kansas would play whatever role was necessary 
to assure the success of these initiatives. Dr. Wintermeyer, a 
veteran with experience as a patient, medical student and 
physician with VA, also supported the initiatives of H.R. 3253 
and H.R. 3254, but emphasized the need to support VA with new 
resources so that other valuable VA programs would not be 
jeopardized or compromised.
    In their statements for the record, the veterans service 
organizations were largely supportive of both measures, but 
stressed similar funding concerns and requested that these 
operations receive earmarked appropriations.

Hearing on the Major Medical Facilities Construction 
Authorization bill

    On April 24, 2002, the Subcommittee on Health received 
testimony on H.R. 4514, Veterans' Major Medical Facilities 
Construction Act of 2002, and issues related to the 
Department's major medical facilities construction policies and 
planning. The hearing witnesses were: Mr. D. Mark Catlett, VA 
Principal Deputy Assistant Secretary for Management; 
accompanied by Mr. Robert L. Neary, Associate Chief Facilities 
Management Officer, VHA, Mr. Gary Rossio, Chief Executive 
Officer, VA San Diego Health Care System, and Mr. Alex Spector, 
Director, Alaska VA Health Care System and Regional Office; 
Colonel David D. Gilbreath, Commander, Elmendorf Air Force Base 
Hospital; Mr. Antonio Laracuente, Chairman, National 
Association of Veterans' Research and Education Foundations, on 
behalf of Friends of VA Medical Care and Health Research 
(FOVA); and Dr. Donald E. Wilson, Vice President for Medical 
Affairs and Dean, University of Maryland School of Medicine.
    The Subcommittee also received testimony from: Mr. Brian E. 
Lawrence, Associate National Legislative Director, Disabled 
American Veterans; Mr. Robert L. Jones, Executive Director, 
AMVETS; Mr. Thomas H. Corey, National President, Vietnam 
Veterans of America; Mr. Paul A. Hayden, Deputy Director, 
National Legislative Service, Veterans of Foreign Wars; Mr. 
Delatorro L. McNeal, Executive Director, Paralyzed Veterans of 
America; and Mr. James R. Fischl, Director, National Veterans 
Affairs and Rehabilitation Commission, The American Legion.
    H.R. 4514 was a bill to authorize the Secretary of Veterans 
Affairs to carry out construction projects for the purpose of 
improving, renovating, and updating patient care facilities at 
Department medical centers. The bill particularly addressed 
seismic risks at a number of VA facilities and provided for 
other capital improvements. Facilities that would have received 
seismic upgrades and corrections, or seismic bracing and 
anchorage of non-structural items included VA medical 
facilities in Palo Alto, San Francisco, West Los Angeles, Long 
Beach, and San Diego, California.
    Another important project included in the bill was 
replacement of the outdated mechanical and electrical systems 
installed at the VA Medical Center in Cleveland, Ohio, in 1961. 
They were installed in 1961 and are in dire need of attention. 
An Anchorage, Alaska project also included in the bill would 
have been construction of a consolidated Veterans Affairs-Air 
Force health care and benefits facility to help address growing 
workload and demands, and provide space for additional 
personnel.
    The bill also provided for a number of important 
improvements for the VA Medical Center in West Haven, 
Connecticut, including essential renovations to inpatient wards 
to correct patient privacy inadequacies; consolidation of 
support services; correction of deficiencies in air quality, 
and compliance with Americans with Disabilities Act (ADA) 
accessibility. The bill included a construction project for the 
VA medical facility in Tampa, Florida, relocating three Spinal 
Cord Injury (SCI) inpatient wards and ancillary support 
functions to the new SCI building dedicated in February 2002.
    The Department expressed specific support for four projects 
proposed in the President's fiscal year 2003 budget submission. 
The Department asserted that the four projects (seismic 
corrections in two buildings in Palo Alto, one in San 
Francisco, and one in West Los Angeles, California) would not 
be affected by the ongoing Capital Asset Realignment for 
Enhanced Services (CARES) initiative. These four major medical 
construction projects were included among those identified in 
H.R. 4514. The Committee was assured that as VA completes its 
CARES initiative, identifies options to improve the health care 
system and provides better access, infrastructure modifications 
will lead to numerous construction project proposals for future 
authorization and funding.
    Veterans service organizations agreed that H.R. 4514 was 
beneficial legislation for the Department and for veterans. In 
their statements, each organization stated its appreciation of 
the Committee's focus on renovating buildings in order to 
create structurally sound and safe facilities for patients. 
However, the Veterans of Foreign Wars agreed with VA's 
testimony that the bill should be modified to allow the 
Secretary to retain discretion in selecting minor construction 
projects.

Markup of H.R. 3253 and H.R. 4514

    On May 1, 2002, the Subcommittee on Health met to markup 
H.R. 3253, the National Medical Emergency Preparedness Act of 
2002, and H.R. 4514, the Veterans' Major Medical Facilities 
Construction Act of 2002. The bills were unanimously favorably 
reported by the Subcommittee, as amended, to the full 
Committee. Amendments to H.R. 3253 included incorporation of 
H.R. 3254, the Medical Education for National Defense in the 
21st Century Act, and H.R. 4559, the Department of Veterans 
Affairs Reorganization Act of 2002, introduced by Chairman 
Smith, on April 24, 2002, at VA's request. Also, an amendment 
to H.R. 4514 added an authorization for a capital lease for a 
Charlotte, North Carolina, outpatient clinic relocation.
    On May 9, 2002, the full Committee met and ordered H.R. 
3253, as amended, and H.R. 4514, as amended, reported favorably 
to the House by unanimous voice vote (see House Report 107-471 
and House Report 107-473, respectively). The House passed H.R. 
3253 on May 20, 2002, and H.R. 4514 on May 21, 2002.
    The Chairman of the Senate Veterans' Affairs Committee 
introduced a bill similar to H.R. 3253 on July 31, 2002. 
Subsequently, the Senate passed H.R. 3253 with an amendment 
containing the text of S. 2132. The two houses agreed on a 
compromise measure. On September 17, 2002, the House passed H. 
Res. 526, returning H.R. 3253 to the Senate. The Senate, on 
October 16, 2002, passed H.R. 3253, with a further amendment. 
On October 16, the House concurred in the amendment of the 
Senate to the bill. The President approved H.R. 3253 as Public 
Law 107-287 on November 7, 2002 (see p. 21 for summary). 
However, the Senate did not act on H.R. 4514.

Hearing on H.R. 3645, Veterans Health Care Items Procurement 
Reform and Improvement Act of 2002

    On June 26, 2002, the Subcommittee on Health held a 
legislative hearing to consider H.R. 3645, the Veterans Health 
Care Items Procurement Reform and Improvement Act of 2002, 
introduced by the Honorable Lane Evans, Ranking Member of the 
Committee. This bill was intended to establish improved 
procurement practices by requiring the purchase of health-care 
and medical supply items by any element of the Department of 
Veterans Affairs to be made through the use of a Federal Supply 
Schedule (FSS) contract or a national contract that would meet 
specified requirements, including the presence of pre-award and 
post-award audit clauses, and a price reduction clause. The 
bill would have allowed under limited circumstances the use of 
other types of contracts. The bill also would have limited 
emergency procurements of health-care items to quantities 
necessary to respond to a particular emergency.
    The hearing also considered certain management activities 
of the Department of Veterans Affairs with respect to 
procurement policies and practices. The Secretary of Veterans 
Affairs commissioned a task force in 2001 to review and 
evaluate VA's various procurement programs. The task force 
report contained over 60 recommendations, and a number of 
provisions of H.R. 3645 related to them. The bill also 
contained a provision directing the Secretary to establish 
annual goals for Department medical centers for the purchase of 
health-care items using FSS and national contracts.
    Hearing witnesses included: Mr. Mark Catlett, VA Principal 
Deputy Assistant Secretary for Management, accompanied by Mr. 
Gary Krump, VA Deputy Assistant Secretary for Acquisition and 
Materiel Management, and Ms. Phillipa Anderson, VA Assistant 
General Counsel; Ms. Cynthia A. Bascetta, Director, Health 
Care-Veterans' Health and Benefits Issues, GAO; Mr. John S. 
Bilobran, VA Deputy Assistant Inspector General for Auditing, 
accompanied by Ms. Maureen T. Regan, Counselor to the VA 
Inspector General. Written statements for the record were 
received from Mr. Terry Baker, Executive Director of Veterans 
Aimed Toward Awareness, Allied Health for Veterans Care; Mr. 
David Gorman, Executive Director, Disabled American Veterans; 
Mr. James B. King, Executive Director, AMVETS; Mr. Paul A. 
Hayden, Deputy Director, National Legislative Service, Veterans 
of Foreign Wars; Mr. John F. Sommer, Jr., Executive Director, 
The American Legion; Mr. Richard B. Fuller, National 
Legislative Director, Paralyzed Veterans of America; Mr. 
Richard Weidman, Director of Government Relations, Vietnam 
Veterans of America; and Mr. Thomas H. Miller, Executive 
Director, Blinded Veterans Association.
    Mr. Catlett reported that VA would not support the 
enactment of H.R. 3645. The objections to the provisions of the 
bill were that it was too restrictive and inflexible, and that 
it limited the Secretary's existing authority to remedy the 
problems already identified by the Department's procurement 
task force. Mr. Catlett maintained that VA could accomplish the 
Department's procurement goals by implementing the 
recommendations of its procurement task force through the 
establishment and implementation of Department policy.
    Ms. Bascetta and Mr. Bilobran testified that additional 
savings were achievable and necessary to conducting VA's 
multimillion dollar contracting and procurement activities. Mr. 
Bilobran cited specific examples that demonstrated multiple 
opportunities for improvement and reform within the VA system. 
Both GAO and the OIG supported enactment of H.R. 3645.
    The veterans service organizations were in general support 
of the intent of H.R. 3645, but raised a number of concerns 
about the impact of the bill on VA's specialized medical 
programs.

Markup of H.R. 3645

    The Subcommittee on Health met on July 12, 2002, and 
unanimously favorably reported H.R. 3645, as amended, to the 
full Committee.
    On July 16, 2002, the full Committee met and ordered H.R. 
3645, as amended, reported favorably to the House by voice vote 
(see House Report 107-600). The amended bill incorporated 
provisions to authorize hospital and nursing home care, and 
medical services to certain Filipino World War II veterans of 
the Philippines Commonwealth Army and former Philippines ``New 
Scouts'' who now permanently and legally reside in the United 
States; to expand the eligibility for outpatient dental care 
for all former prisoners of war; to strengthen auditing and 
reporting requirements for VA research and education 
corporations established at VA medical centers; to authorize 
the Department of Defense to participate in VA's Revolving 
Supply Fund for the purchase of health-care items; and to name 
the VA outpatient clinic in New London, Connecticut, for the 
late John J. McGuirk, a World War II veteran.
    On July 22, 2002, the House passed H.R. 3645 under 
suspension of the rules and the bill was referred to the 
Senate. However, the Senate did not act on H.R. 3645.

                          OVERSIGHT ACTIVITIES

First Session

Hearing on the State of the VA Health Care System

    On April 3, 2001, the Subcommittee held an oversight 
hearing concerning the current state of the VA health care 
system. The hearing witnesses included: Honorable Thomas L. 
Garthwaite, M.D., Under Secretary for Health, VHA; Dr. Frances 
M. Murphy, Deputy Under Secretary for Health, VHA; Dr. John G. 
Clarkson, Senior Vice President Medical Affairs and Dean, 
University of Miami School of Medicine, Miami, FL; Dr. George 
Thibault, Chairman, VA Special Medical Advisory Group, Vice 
President and Chairman of Clinical Affairs, Partners Health 
Care, Inc.; Mr. James R. Fischl, Director, National Veterans 
Affairs and Rehabilitation Commission, The American Legion; Mr. 
Paul A. Hayden, Associate Director, National Legislative 
Service, Veterans of Foreign Wars; Ms. Joy J. Ilem, Assistant 
National Legislative Director, Disabled American Veterans; Mr. 
John Bollinger, Deputy Executive Director, Paralyzed Veterans 
of America; Mr. Richard Jones, National Legislative Director, 
AMVETS; Mr. Bobby J. Harnage, Sr., National President, American 
Federation of Government Employees; Ms. Ellen M Pitts, R.N., 
President, VA Medical Center, Brockton, MA, Local R1-187, 
National Association of Government Employees; and Ms. Elaine 
Gerace, R.N., Divisional President, VA Medical Center, 
Syracuse, NY, Local 200B, Service Employees International 
Union.
    This was the Subcommittee's first hearing since the new 
Administration had taken office, with the new Under Secretary 
for Health, Dr. Thomas Garthwaite. The Subcommittee itself had 
a new Chairman, the Honorable Jerry Moran of Kansas, and a new 
Ranking Member, the Honorable Bob Filner of California.
    The VA health care system has been transformed over the 
past five years. It has restructured Central Office and field 
operations, delegated substantial management authority to 
regional officials, activated hundreds of new primary care 
clinics, and opened enrollment to VA care to nearly two million 
new veterans. Congress has played a leading role in this 
transformation. Congress passed key legislation approving the 
basic design of reform in 1995, the simplified health care 
eligibility in Public Law 104-262, and enacted a variety of 
program reforms in Public Laws 106-117 and 106-419. Congress 
also increased funding for veterans' health care by $3 billion 
in fiscal years 2000 and 2001, and provided an increase of $1 
billion for veterans' health care in fiscal year 2002.
    However, the VA health care system continues to face 
significant challenges. Many veterans are concerned whether 
their health care needs will be met in their later years, and 
if so, how; waiting times for care often exceed the VA's 30-day 
standard; another VA nursing personnel shortage looms; VA 
capabilities in some specialized programs may be declining; and 
VA appears to be losing capacity in critical areas such as 
long-term care and mental health.
    Testifying on behalf of VA, Dr. Garthwaite acknowledged 
that the VA health care system had undergone a dramatic 
transformation since 1995, moving from an inpatient model to an 
outpatient model with more than 350 additional sites of care. 
Primary care providers and teams were now coordinating quality 
health care for more than 500,000 additional veterans with 
25,000 fewer employees than six years ago-and at a cost per 
patient of 24 percent less than VA expended in 1996. 
Information technology, biotechnology, health care financing, 
and public accountability were cited as leading the changing 
trends in the health care industry at large. Challenges that VA 
still faced included managing health care information more 
effectively, improving care coordination and communications 
with its patients, eliminating variability in care and changing 
its infrastructure to meet current and future needs.
    Dr. Carlson testified on behalf of the Association of 
American Medical Colleges (AAMC), an organization with 107 
medical schools affiliated with VA medical centers, and more 
than 30,000 medical residents and 22,000 medical students that 
rotate through VA hospitals and clinics to receive a portion of 
their medical training. He addressed some of the challenges 
that the affiliated partnerships have undergone in the 
restructuring of VA's health care system into 22 Veterans 
Integrated Service Networks (VISNs). As the national health 
care environment evolves and changes are necessary at VA, Dr. 
Carlson stressed that it is essential that VA's academic 
affiliations be afforded consideration in the ongoing decision-
making processes.
    Additional panels praised improvements in the quality of 
care being provided to veterans, but focused primarily on the 
damaging consequences of insufficient funding for VA's health 
care system. They stated that inadequate budgets have 
contributed to a deteriorating infrastructure, staffing 
shortages, increased waiting times, (especially for specialty 
care), and inadequate access to care. Concerns were voiced 
about the aging veteran population and its growing health care 
needs, particularly for specialty and long-term care services. 
At the time of the hearing many of the provisions of Public Law 
106-117, the Veterans' Millennium Health Care and Benefits Act, 
though enacted in November 1999, had not yet been implemented 
by VA.

Hearing on Mental Health, Substance-Use Disorders, and 
Homelessness

    On June 20, 2001, the Subcommittee on Health held a hearing 
on mental health, substance use disorders, homelessness in the 
veteran population, and the Department's policies in dealing 
with these challenges. Hearing witnesses included: Honorable 
Thomas Garthwaite, M.D., Under Secretary for Health, VHA; Mr. 
Peter H. Dougherty, Director, Homeless Veterans Programs, VA 
Office of Public and Intergovernmental Affairs; Dr. Paul 
Errera, Connecticut VA Health System (former Director, Mental 
Health and Behavioral Sciences, VHA); Dr. Laurent S. Lehmann, 
Chief Consultant, Mental Health and Behavioral Sciences 
Services, VHA; Dr. Miklos Losonczy, New Jersey VA Health 
System, and Co-chair, VA Advisory Committee on Serious Mental 
Illness; Dr. Richard McCormick, Ohio VA Health System, and Co-
chair, VA Advisory Committee on Serious Mental Illness; Dr. 
Bruce Rounsaville, Connecticut VA Health System, and Professor 
of Psychiatry, Yale University; Ms. Linda Boone, Executive 
Director, National Coalition for Homeless Veterans; Dennis 
Culhane, Ph.D., Associate Professor, University of 
Pennsylvania; Fred Frese, Ph.D., Chair, Veterans Committee, 
National Alliance for the Mentally Ill; Mr. Ralph Ibson, Vice 
President for Government Affairs, National Mental Health 
Association; Mr. Richard Fuller, National Legislative Director, 
Paralyzed Veterans of America; Ms. Joy Ilem, Assistant National 
Legislative Director, Disabled American Veterans; Ms. Linda 
Schwartz, Associate Research Scientist, Yale University School 
of Nursing; and Mr. Richard Weidman, Executive Director, 
Government Relations, Vietnam Veterans of America.
    The testimony clearly showed that problems and challenges 
exist today in VA's mental health programs, including steep 
reductions in hospital inpatient beds. Changes VHA has 
initiated in mental health programs for veterans may have gone 
too far in recent years, especially the substantial reductions 
of VA residential programs in drug rehabilitation. The hearing 
testimony confirmed that several of VA's networks are 
contracting for residential drug rehabilitation, while in eight 
major US cities VA offers little, if any, substance-abuse 
residential care. This is inconsistent with the capacity 
mandate in the law.
    Also, during this hearing the Subcommittee learned that 
VA's homeless assistance programs need more authority, better 
coordination and improved outreach, along with a greater 
commitment of resources and more creative strategies, if VA is 
to effectively address the problem of homeless veterans.
    Findings from this hearing led Chairman Smith, Mr. Evans, 
Mr. Moran, Mr. Filner, and others to fashion a compromise bill, 
H.R. 2716, on homeless assistance to strengthen VA's programs 
and promote creative applications of methods to begin to stem 
this unacceptable problem (see p. 11 for summary).

Hearing on Rural Health Care

    On September 24, 2001, the Subcommittee on Health held a 
field hearing in Wichita, Kansas, on veterans' rural health 
care issues. Hearing witnesses included: Mr. James R. Franklin, 
Vietnam veteran, Liberal, Kansas; Mr. Olen Mitchell, WWII 
veteran, Hutchinson, Kansas; Mr. Scott Ratzlaff, Desert Storm 
veteran, Colby, Kansas; Ms. Tamina Fromme, Vietnam veteran, 
Dodge City, Kansas; Mr. Kent Hill, Director, VA Medical and 
Regional Office Center, Wichita, Kansas; Dr. L.S. Raju, VA 
Community Based Outpatient Clinic, Liberal, Kansas; Ms. Leann 
Zimmerman, Nurse Practitioner, VA Community Based Outpatient 
Clinic, Hays, Kansas; Dr. Peter Almenoff, Director, VA 
Heartland Network (VISN 15), Kansas City, Missouri.
    The hearing featured testimony and demonstrations on how VA 
uses new telemedicine technology to bring better diagnostic and 
therapeutic care to veterans. The use of telemedicine in VA 
community based clinics (CBOCs) is an innovative way for 
veterans to gain access to specialists without traveling to 
large urban areas. These kinds of technologies can help ensure 
that rural veterans have effective access to VA's health care 
resources.
    The Subcommittee also received a report on the work of the 
Kansas Persian Gulf War Veterans Health Initiative, a program 
monitoring over 7,500 Kansas veterans of the Persian Gulf War. 
In addition to providing information on health resources and 
federal benefits, the Initiative completed a baseline study of 
the health of Kansas Persian Gulf veterans, and reported on its 
plans for a second study focusing on neurological problems. 
This program was established in 1997 by the Kansas State 
Legislature and functions under the Kansas Commission on 
Veterans' Affairs.

Second Session

Hearings to Consider Issues of Operational and Medical 
Readiness in the Active Duty Force and Their Relationships to 
the Health Status of the Veteran Population

    On January 24, 2002, the Subcommittee held a hearing on 
operational and medical readiness in the active duty force. 
This was the first of two related hearings to examine troop 
deployments to the Persian Gulf War to see if the lessons 
learned regarding military personnel health issues have aided 
the Departments of Defense and Veterans Affairs in avoiding 
similar problems in current deployments.
    The principal witnesses were Honorable Warren B. Rudman, 
former U.S. Senator from New Hampshire and former Chairman, 
Presidential Advisory Board on Persian Gulf War Illnesses; 
Honorable Donald S. Riegle, former U.S. Senator from Michigan 
and former Chairman, Senate Committee on Banking; Dr. Frances 
Murphy, Deputy Under Secretary for Health, VHA, accompanied by 
Dr. Susan Mather, Chief Public Health and Environmental 
Hazards, VHA, and Dr. Craig K. Hyams, Chief Consultant, 
Occupational and Environmental Health, VHA; Ms. Ellen P. 
Embrey, Deputy Assistant Secretary of Defense for Force Health 
Protection & Health Affairs, accompanied by Dr. Michael E. 
Kilpatrick, DOD Director of Deployment Health Support; 
Honorable James Holsinger, M.D., former VA Under Secretary for 
Health; Honorable Enrique Mendez, M.D., former Assistant 
Secretary of Defense for Health Affairs; Honorable Sue Bailey, 
D.O., Former Assistant Secretary of Defense for Health Affairs; 
Dr. Ronald R. Blanck, former Army Surgeon General; Dr. Garth 
Nicolson, President, Institute for Molecular Medicine; Mr. 
Steve Robertson, Executive Director, National Gulf War Resource 
Center, Inc.; Mr. Patrick G. Eddington, Associate Director of 
Government Relations, Vietnam Veterans of America; and Mr. Paul 
Hayden, Associate Director of Legislation, Veterans of Foreign 
Wars.
    The testimony was from officials involved in the Gulf War, 
from officials who conducted reviews and investigations, and 
from officials in this Administration with the responsibility 
to keep U.S. troops healthy. The Subcommittee examined whether 
baseline physical evaluations, electronic patient records, 
troop monitoring systems, vaccine protocols, coordination of 
operational preparedness, and medical readiness are integrated 
in the actions of the Departments in prosecuting the war on 
terrorism.
    The Subcommittee learned that baseline troop health 
assessments in prior deployments were not systematic; 
information on troop movements was scant or classified; 
determination of exposure to biohazards was problematic; 
vaccines were administered haphazardly; vaccine records were 
unclear, and physical assessments of troops were not 
comprehensive. A second hearing to further examine these issues 
further was scheduled for the following month.
    On February 27, 2002, the Subcommittee held the second 
hearing to consider issues of operational and medical readiness 
in the active duty force and their relationships to the health 
status of the veteran population. The principal witnesses were 
Ms. Cynthia Bascetta, Director, Veterans' Health & Benefits 
Issues, GAO, accompanied by Ms. Ann Calvaresi-Barr, Assistant 
Director; Ms. Ellen Embrey, Deputy Assistant Secretary of 
Defense for Force Health Protection & Health Affairs, 
accompanied by Ronald A. Maul, M.D., Colonel, U.S. Army, 
Command Surgeon, Central Command; Dr. Frances Murphy, Acting 
Under Secretary for Health, VHA, accompanied by Dr. Kenneth C. 
Hyams, Chief Consultant, Occupational and Environmental Health, 
VHA.
    The hearing investigated the continuing challenges in DOD 
and VA with respect to so-called ``force protection'' and 
``medical readiness'' policies, and how post-deployment health 
care and other service-related needs of post-deployment 
veterans should be met. The Subcommittee believes protecting 
active duty military members by establishing proper baseline 
health data is essential before they become veterans. These 
hearings helped to emphasize the need for both Departments to 
share their resources.

Joint Hearing with House Armed Services Committee, Subcommittee 
on Military Personnel. Hearing on Health Care Sharing by the 
Department of Defense and the Department of Veterans Affairs

    On March 7, 2002, the Subcommittee held a joint hearing 
with the House Armed Services Subcommittee on Military 
Personnel, on Department of Defense/Department of Veterans 
Affairs health resources sharing. Those testifying at the 
hearing included: the Honorable Christopher H. Smith, Chairman, 
Committee on Veterans' Affairs; Honorable Leo S. Mackay, Jr., 
Deputy Secretary, Department of Veterans Affairs; Honorable 
David S.C. Chu, Under Secretary of Defense (Personnel and 
Readiness); Honorable Nancy Dorn, Deputy Director, Office of 
Management and Budget; Dr. Gail R. Wilensky, Co-Chair, 
President's Task Force To Improve Health Care Delivery For Our 
Nation's Veterans; Mr. Robert Washington, Director, Membership 
Services, Fleet Reserve Association, and Co-Chair, The Military 
Coalition Health Care Committee; Ms. Deirdre Parke Holleman, 
Co-Chair, Health Care Committee, National Military Veterans 
Alliance; Mr. Steve Robertson, Director, Legislative Affairs, 
The American Legion; Mr. Harley Thomas, Health Policy Analyst, 
Paralyzed Veterans of America; Ms. Joy J. Ilem, Assistant 
National Legislative Director, Disabled American Veterans; and 
Mr. Dennis Cullinan, Director of Legislative Services, Veterans 
of Foreign Wars.
    Public Law 97-174, the Veterans Administration and 
Department of Defense Health Resources Sharing and Emergency 
Operations Act, May 4, 1982, provides broad authority to VA and 
DOD for health resource sharing. VA/DOD sharing began with a 
flurry of activity in early 1980's, with hundreds of agreements 
executed between military and VA hospitals, but over the years, 
sharing has waned. The purpose of this hearing was to examine 
reasons for the decline in sharing, and to explore legislative 
improvements that would renew sharing in the Departments.
    Prior to the hearing, the Committee staff made a number of 
visits last year to military and VA facilities, and made a 
staff report to the Committee (Department of Veterans Affairs 
and Department of Defense Health Resources Sharing, House 
Committee Print No. 4, February 25, 2002). The report was 
provided to the Subcommittee Members.
    Chairman Smith, testifying in the first panel, urged the 
Subcommittees to aggressively seek to increase resource sharing 
between the VA and DOD health care systems. His testimony 
reviewed his bill, H.R. 2667, introduced July 27, 2001, to 
require improved coordination and sharing of health care 
resources between the Departments by authorizing new 
initiatives, promoting new incentives and establishing new 
demonstration projects.
    Secretary Chu assured the Committees that he and Dr. MacKay 
share a common vision of quality health care for the men and 
women serving our country, their families, and those that have 
served in the past. The cooperative efforts of DOD and VA are, 
according to Secretary Chu, focused on a proactive partnership 
that meets the missions of both agencies while benefiting the 
service member, veteran and taxpayer with new initiatives and 
increased efficiency. Dr. Wilensky testified that the 
President's task force is seeking to improve the delivery of 
health care to our nation's veterans by formulating 
recommendations to institutionalize VA-DOD sharing so that the 
men and women who rely on health care from VA and DOD receive 
treatment through a process that is seamless and transparent.
    The military and veterans service organizations were 
generally supportive of an increased effort to improve DOD/VA 
coordination. However, they stressed that these activities must 
at a minimum enhance or maintain access to health care, 
quality, safety, and services offered to each category of 
beneficiaries without negatively impacting any beneficiary 
group. Congress subsequently enacted many of the concepts of 
H.R. 2667 in title VII, subtitle C of Public Law 107-314, the 
Bob Stump National Defense Authorization Act of Fiscal Year 
2003.

Hearing on the Health Care of Filipino World War II Veterans 
within the Department of Veterans Affairs

    On June 13, 2002, the Subcommittee on Health held a hearing 
to consider the provision of health care to certain Filipino 
World War II veterans by the Department of Veterans Affairs. 
Witnesses who appeared before the Subcommittee included His 
Excellency Albert Del Rosario, Ambassador to the United States, 
Embassy of the Philippines; Honorable Anthony J. Principi, 
Secretary of Veterans Affairs, accompanied by Mr. John H. 
Thompson, VA Deputy General Counsel; Representative Benjamin 
Gilman of New York; Representative Randy ``Duke'' Cunningham of 
California; Representative Dana Rohrabacher of California; 
Representative Patsy T. Mink of Hawaii; Representative Juanita 
Millender-McDonald of California; Representative Robert A. 
Underwood from the Territory of Guam; Mr. Lou Diamond Phillips, 
actor and Filipino veterans activist, Los Angeles, California; 
Mr. Fritz Friedman, Chair, Assembly for Justice, Los Angeles, 
California; Mr. Resty Supnet, President, Filipino World War II 
Veterans Foundation of San Diego County, accompanied by Mr. 
Romy Monteyro; Mr. Patrick Ganio, President, American Coalition 
for Filipino Veterans; Ms. Susan Espiritu Maquindang, Executive 
Director, Filipino-American Service Group; Ms. Lourdes Santos 
Tancinco, President, San Francisco Veterans Equity Center; Ms. 
Joy Ilem, Assistant National Legislative Director, Disabled 
American Veterans; Mr. Richard Weidman, Director of Government 
Relations, Vietnam Veterans of America; and Mr. James Fischl, 
Director of National Veterans Affairs and Rehabilitation 
Commission, The American Legion. Written testimonies were 
received from Senator Barbara Boxer of California; 
Representative Barbara Lee of California; Representative Nancy 
Pelosi of California; Representative Maxine Waters of 
California; General Tagumpay Nanadiego, Former Special 
Presidential Representative, Embassy of the Philippines; Ms. 
Wendy Lawrence, Associate Director, National Legislative 
Service, Veterans of Foreign Wars; and Mr. Richard Jones, 
National Legislative Director, AMVETS.
    This hearing focused on H.R. 4904, the ``Health Care for 
Filipino Veterans Act,'' introduced by the Honorable Bob 
Filner, Ranking Member of the Subcommittee on Health, to 
improve benefits for certain Filipino veterans of World War II 
who reside in the United States and for their surviving 
spouses. For many years, efforts have been made to extend the 
same health care and compensation benefits that American 
veterans receive to Filipino veterans of World War II. This 
legislation would have provided limited benefits to certain 
Filipino veterans.
    Secretary Principi testified that President Bush and 
President Arroyo of the Philippines, in commemorating the 50th 
anniversary of the signing of the U.S. Philippine Mutual 
Defense Treaty, reaffirmed the alliance of the United States 
and the Philippines as vital to both nations. Their meeting, 
according to the Secretary, heralded a new era of comprehensive 
cooperation and friendship between the United States and the 
Philippines. President Bush also agreed to review the services 
and benefits that the United States provides for Filipino 
veterans. Secretary Principi announced that the President 
anticipated making an equipment grant of $500,000 to the 
Republic of the Philippines to assist in providing medical care 
and treatment for Commonwealth Army veterans and new Philippine 
Scouts. The Secretary's testimony was generally favorable to 
the provision of some benefits to Filipino veterans.
    Representatives Benjamin Gilman, Randy ``Duke'' Cunningham, 
Dana Rohrabacher, Patsy T. Mink, Juanita Millender-McDonald, 
and Robert A. Underwood each provided support for the enactment 
of this legislation. Mr. Phillips and Mr. Friedman added their 
personal accounts and support to the provision of benefits for 
Filipino veterans.
    The final paned of witnesses included Filipino veterans who 
would be affected by the provisions of H.R. 4904. They 
unanimously supported the measure.

Field Hearing to Investigate Conditions at Kansas City Veterans 
Medical Center

    On June 17, 2002, the Subcommittee held an oversight 
hearing entitled ``Patient Care at the Kansas City Veterans' 
Affairs Medical Center: Investigating Infestations and 
Management Practices,'' at the Kansas City VA Medical Center, 
4801 Linwood Boulevard, Kansas City, Missouri. Those testifying 
at the hearing included: Mr. Michael Slachta, VA Assistant 
Inspector General for Auditing,; Dr. Stephen Klotz, Professor 
of Medicine, University of Arizona, Section of Infectious 
Diseases, and Staff Physician, Southern Arizona VA Health Care 
System, VA Medical Center, Tucson, AZ, accompanied by Ms. Teola 
Tillman, Former Infection Control Nurse, VA Medical Center, 
Kansas City, MO; Mr. Hugh Doran, Former Director, VA Medical 
Center, Kansas City, MO; Mr. Bryan Baldwin, President, Local 
Union 2663, American Federation of Government Employees, VA 
Medical Center, Kansas City, MO; Ms. Linda McEwen, President, 
Union Local 910, American Federation of Government Employees, 
VA Medical Center, Kansas City, MO; Ms. Sherie Grewe, Patient 
Advocate, VA Medical Center, Kansas City, MO; Honorable Robert 
H. Roswell, Under Secretary for Health, Veterans Health 
Administration, Department of Veterans Affairs; and Mr. Kent 
Hill, Director, VA Medical Center, Kansas City, MO.
    The Subcommittee on Health held this field hearing at the 
Kansas City VAMC to review an on-going VA Inspector General's 
investigation on the cleanliness of the medical center. This 
hearing was prompted by the March 2002 publication of an 
article in the Archives of Internal Medicine, ``Nasal Myiasis 
in an Intensive Care Unit Linked to Hospital-Wide Mouse 
Infestation.'' This article contained a hypothesis of a link 
between mice within the medical center, an infestation of 
flies, and subsequently the discovery of nasal myiasis in two 
medical intensive care unit patients. The article reviewed a 
variety of actions taken to remedy these problems. However, it 
appeared as though management did not sufficiently act to 
eliminate them.
    Also, it was suggested that the medical center had 
insufficient funds, leaving the staff with few options to 
eradicate the pest infestation, and ultimately, to ensure high 
quality care to patients. The Secretary of Veterans Affairs 
acted swiftly to make changes at the medical center as well as 
at the network level. The Secretary initiated two 
investigations in response to VA's realization that some of 
these conditions existed for years prior to publication of the 
article and reassigned management pending the outcome of these 
two investigations.
    Upon the completion of these investigations, reports were 
made available to the Subcommittee, and the hearing was 
scheduled to review these reports and to take testimony from 
current and past personnel from the medical center, as well as 
the author of the article on the infestation. Members of 
Congress present at the field hearing included Subcommittee 
Chairman Jerry Moran, Ranking Democratic Subcommittee Chairman 
Bob Filner, Rep. John Boozman of the Subcommittee, and Rep. 
Karen McCarthy of Missouri, who attended the hearing.

Hearing on VA's Current Programs for Women Veterans

    On October 2, 2002, the Subcommittee held an oversight 
hearing on VA's current programs for women veterans. The 
principal witnesses were Representative Heather Wilson of New 
Mexico; Honorable Robert H. Roswell, Under Secretary for 
Health, VHA, accompanied by Dr. Susan Mather, Chief Officer, 
Public Health and Environmental Hazards; Dr. Irene Trowell-
Harris, Director, Center for Women Veterans; Ms. Marsha Four, 
RN, Chair, VA Advisory Committee on Women Veterans; Ms. Joy J. 
Ilem, Disabled American Veterans and Former Member, VA Advisory 
Committee on Women Veterans; Dr. Linda Schwartz, Former Chair, 
VA Advisory Committee on Women Veterans and Former Chair of 
School of Nursing, Yale University; Ms. Carole Turner, 
Director, Women Veterans Health Programs, Veterans Health 
Administration; Ms. Toni Lawrie, Coordinator, Women Veterans 
Clinic, VA Medical Center, Bay Pines, Florida; and Dr. Margaret 
Seaver, Director, Women's Veterans Health Care Program, VA 
Boston Health Care System.
    The Subcommittee held this oversight hearing to address 
concerns about the level and types of accommodations for 
privacy, facilities and specialized programs that VA provides 
for female patients, and the Department's responsiveness to 
recommendations on women's health issues from its Women's 
Advisory Committee and the Department's Center for Women 
Veterans.
    The Subcommittee noted that until recent years VA was 
largely a men's medical program. As more women join the 
military services and take on new responsibilities in military 
occupations, more women are entering the veteran population and 
thus turning to the VA for care and services. The purpose of 
the hearing was to review VA's progress in making women 
veterans full participants in its health care programs. 
Specifically, the Subcommittee examined whether women veterans 
are offered sufficient services for both primary and 
specialized health care, counseling for sexual trauma, mental 
health services, and secure bed and privacy accommodations.
    Witnesses testifying for the Department asserted VA is 
making significant progress in renovating facilities for female 
patient privacy and moving to ensure VA facilities have the 
expertise and technology for the particular needs of women 
patients. For example, VA testified that in 2000, 152,094 women 
veterans were seen as outpatients and 12,955 as inpatients. In 
2001, these numbers rose to 166,108 outpatients and 13,640 
inpatients. In 2001, 14,790 Pap smears were completed in VA 
clinics and 17,209 screening mammograms were accomplished, as 
well as 21,268 diagnostic mammograms.
    VA asserted it intended to assure that women veterans gain 
equal access to high-quality care, while admitting that in the 
past, some VA facilities had tended to ignore women because 
they simply could not provide comprehensive, holistic care for 
women veterans. In addition to providing more specific 
services, VA stated it was using tools such as clinical 
guidelines, performance measures, quality improvement 
mechanisms, patient safety monitoring, and female veteran-
relevant research to change its culture.
    VA's Women's Center Director provided testimony on the 
history of the Advisory Committee on Women Veterans, and 
highlighted its 2002 report recommendations, including: the 
creation or modification of services to provide specifically 
for the needs of women; staffing levels for women veterans 
coordinators (WVC) positions; permanent removal of eligibility 
restrictions for sexual trauma counseling; the monitoring and 
analysis of services recently introduced by VA, such as 
obstetrical care and pilot programs for women veterans who are 
homeless, to ensure that services would meet potential 
increases in demand; the development and distribution of 
guidelines for case management of women veterans who are 
homeless based on the analysis of successful pilot projects; an 
emphasis on the need for research to determine the success of 
health and benefit programs in meeting the needs of women 
veterans, including women veterans subgroups such as Blacks, 
Hispanics, Asians, and Native Americans, as VA conducts 
strategic planning to design future care and services; and the 
need for research to assess the impact of the increasing number 
of women in the military and their changing military roles on 
the design and delivery of VA services. The rising proportion 
of minority women heightens the need for meaningful data 
regarding women veterans of all racial/ethnic groups.
    Witnesses representing the VA Women's Health Programs 
testified that improvements have been made in VA's approach to 
caring for women veterans. They testified that Women Veterans 
Coordinators provide essential services as advocates, case 
managers, and specialized resources for female patients. They 
asserted that establishment of dedicated women's clinics and 
women's centers in VA health care facilities contributes to 
research-based knowledge on women veterans' health and mental 
health, promotes better treatment of military sexual trauma, 
provides a basis for coordinated care for complex medical and 
mental health problems, and improves quality of life for 
patients with post traumatic stress disorder and its co-
morbidities. Also, they testified that women-focused programs 
provide improved patient compliance with preventive health 
measures such as pap smears and mammograms. However, these 
witnesses also agreed with the Subcommittee concern that 
fragmentation of care for women is still a major challenge in 
VA health care. A recent national survey by the Department 
indicated that many gender specific services were often 
contracted out to community medical providers or academic 
affiliates. The Subcommittee agreed with witnesses that to 
overcome this difficulty, VA women's health programs need to 
have adequate staffing for better case coordination.

Hearing on Project SHAD, Regarding Secret Chemical and 
Biological Tests Conducted on American Servicemembers

    On October 9, 2002, the Subcommittee held a hearing on 
Project 112 and Operation Shipboard Hazard and Defense (SHAD). 
The principal witnesses were Honorable William Winkenwerder, 
Jr., M.D., M.B.A., Assistant Secretary of Defense for Health 
Affairs, accompanied by Dr. Michael E. Kilpatrick, Director of 
Deployment Health Support, Dr. Anna Johnson-Winegar, Deputy 
Assistant to the Secretary of Defense, Chemical and Biological 
Defense; and Dr. Jonathan B. Perlin, Deputy Under Secretary for 
Health, VHA, accompanied by Mr. Robert J. Epley, Associate 
Deputy Under Secretary for Policy and Program Management, VBA.
    The oversight hearing addressed Cold War chemical, nuclear, 
and biological tests at sea and over land during Project 112 
and Operation SHAD. The principal focus of this hearing was the 
Department of Defense's public announcement of the results of 
their declassification review to examine health effects of 31 
tests from Project 112 and Operation SHAD. In addition, the 
Subcommittee reviewed VA's role in contacting veterans who may 
have participated in these tests, and determining the health 
status of these veterans.
    This project began during the 1960's and originally 
involved 109 planned tests to identify U.S. warship 
vulnerability to chemical, nuclear, and biological attacks, and 
to develop methods to defend against them. It was a component 
of a larger DOD effort called Project 112. In late 2000, based 
on a VA request, DOD began to review and declassify information 
concerning the exact agents used and other details of these 
tests, including identities of U.S. ships and other military 
units that were involved. In addition, DOD began working with 
the VA to identify individual veterans who participated in 
these tests and to determine whether any veterans suffered 
negative health consequences because of these tests.
    The Assistant Secretary of Defense for Health Affairs, 
Honorable William Winkenwerder, Jr., testified that DOD is 
absolutely committed to an uncompromising and thorough 
investigation of all chemical and biological warfare tests 
planned and performed by the Deseret Test Center between 1962 
and 1973. To date, DOD's search has revealed significant 
information about the Deseret Test Center experiments. The 
Center planned 134 tests between 1962 and 1973. DOD has 
verified that 46 tests were conducted, while 62 tests were 
cancelled. The status of 26 remaining tests is still in 
question. The majority (24 of these 26 tests) were designed to 
take place in 1970-1974, during a period in which plans were 
being made to close the Deseret Test Center.
    Secretary Winkenwerder assured the Subcommittee at this 
hearing that DOD is continuing to declassify the remaining 
Project 112 and Operation SHAD data as quickly as possible. He 
also revealed that the military services are still using 
simulations during operational testing and training. He stated 
that DOD's objective is to ensure that concerns like those 
surrounding the Deseret Test Center tests do not arise in the 
future.
    Testifying on behalf of VA, Dr. Perlin discussed the 
outreach efforts VA had undertaken to contact the 5,000 
veterans who have been identified as Project 112 participants. 
VA efforts also include educational programs for VA health care 
providers and health care services that VA has implemented for 
these veterans. VA was asked to assume an aggressive follow-up 
with these veterans to ensure that all are afforded an 
opportunity to review their medical histories with VA health-
care providers.

                        Subcommittee on Benefits

    The Subcommittee on Benefits has jurisdiction over 
veterans' programs for compensation, pension, insurance, 
memorial affairs, education, training, vocational 
rehabilitation, small business, employment, and housing. In 
addition to overseeing programs administered by the Veterans 
Benefits Administration and the National Cemetery 
Administration, the Subcommittee has oversight of Arlington 
National Cemetery, and overseas cemeteries of the American 
Battle Monuments Commission. The Subcommittee also oversees 
veterans' programs administered by the U.S. Department of 
Labor, the Small Business Administration, the National Veterans 
Business Development Corporation, and the U. S. Office of 
Personnel Management, as well as certain servicemember programs 
administered by the Department of Defense (see p. 88, Oversight 
Plan for 107th Congress).

                         LEGISLATIVE ACTIVITIES

First Session

Hearing on H.R. 801, the Veterans' Opportunities Act of 2001, 
and VA's Implementation of Veterans' Transitional Housing 
Assistance

    On March 15, 2001, the Subcommittee on Benefits held a 
hearing on H.R. 801, the Veterans' Opportunities Act of 2001. 
H.R. 801 contained a number of provisions affecting a range of 
veterans' programs, including burial benefits, readjustment 
benefits, the Servicemembers' Group Life Insurance program, and 
expanded outreach efforts by the Department of Veterans 
Affairs. The Subcommittee also requested from VA status 
information on its implementation of section 601 of Public Law 
105-368, which the President signed on November 11, 1998. This 
section authorized the establishment of a new $100 million 
program of loan guarantees for developers of transitional 
housing for homeless veterans. Twenty-seven months later, the 
program was not operational.
    Witnesses at the hearing included Honorable Anthony 
Principi, Secretary of Veterans Affairs; Honorable Joseph 
Thompson, Under Secretary for Benefits, VBA; Representative 
Bill Pascrell, Jr. of New Jersey; Representative Michael Doyle 
of Pennsylvania; Mr. Patrick Sutliff, University of Phoenix; 
Mr. Jack Lunsford, Maricopa (AZ) Community College; Ms. Faith 
Stellitano, National Association of Veterans Program 
Administrators; Ms. Rose Lee, Washington Representative and 
Past Chairman, Gold Star Wives of America; Mr. Sidney Daniels, 
Deputy Legislative Director, Veterans of Foreign Wars; Ms. Joy 
Ilem, Associate National Legislative Director, Disabled 
American Veterans; Mr. Blake Ortner, Associate Legislative 
Director, Paralyzed Veterans of America; and Mr. Peter Gaytan, 
Assistant Director, National Legislative Commission, The 
American Legion.
    Also, Representative Jo Ann Davis of Virginia testified on 
her bill, H.R. 1015, to make the maximum amount of 
Servicemembers' Group Life Insurance (SGLI) retroactive to 
November 1, 2000 (Public Law 106-419, signed into law on 
November 1, 2000, increased SGLI to $250,000 effective on the 
first day of the first month that began more than 120 days 
after date of enactment). Senator John Warner of Virginia 
testified in support of this retroactive payment.
    The veterans service organizations largely supported H.R. 
801, but were concerned that the benefits programs needed 
continuing increases to keep pace with the rising cost of 
living. VA supported most of the provisions incorporated in 
H.R. 801. With regard to the implementation of Public Law 105-
368, Secretary Principi announced that the Office of Management 
and Budget had recently cleared the transitional assistance 
housing program to make 100-percent loan guarantees, and that 
while the program was established in 1998, VA did not receive 
funding until fiscal year 2000. Secretary Principi testified 
further that the process of implementing Public Law 105-368 was 
slow because there was no model for this type of federal loan 
guaranty program.

Full Committee Markup of H.R. 801

    On March 21, 2001, the full Committee met and marked up 
H.R. 801. The bill was favorably reported, as amended, to the 
House (see House Report 107-27). On March 27, the House passed 
H.R. 801, as amended, by a vote of 417-0. After being amended 
by the Senate, the bill became Public Law 107-14 on June 5, 
2001 (see p. 9 for summary).

Hearings on H.R. 1291, 21st Century Montgomery GI Bill 
Enhancement Act

    On May 24, 2001, the Subcommittee on Benefits held the 
first of two hearings on H.R. 1291, the 21st Century Montgomery 
GI Bill Enhancement Act. The bill would have increased the 
amount of educational benefits under the Montgomery GI Bill 
(MGIB) for an approved program of education on a full-time 
basis from a monthly rate of $650 for an obligated period of 
active duty of three or more years to: $800 effective October 
1, 2001; $950 effective October 1, 2002; and $1,100 effective 
October 1, 2003. H.R. 1291 would also have increased the amount 
of educational benefits under the MGIB for an approved program 
of education on a full-time basis from the current monthly rate 
of $528 for an obligated period of active duty of less than 
three years to: $650 effective October 1, 2001; $772 effective 
October 1, 2002; and $894 effective October 1, 2003.
    Testifying in support of the bill was Representative 
Charles ``Chip'' Pickering of Mississippi. Mr. G. Kim Wincup, 
Vice Chairman, testified on behalf of the Congressional 
Commission on Servicemembers and Veterans Transition 
Assistance. General Charles Boyd (USAF, Ret), Executive 
Director, and Admiral Harry D. Train, II (USN, Ret) testified 
on behalf of the United States Commission on National Security/
21st Century. Vice Admiral Patricia Tracey, Assistant Secretary 
of Defense for Personnel testified on behalf of the 
Administration. The personnel chiefs of the five service 
branches, Lieutenant General Timothy Maude, U.S. Army; Vice 
Admiral Norbert Ryan, U.S. Navy; Lieutenant General Garry L. 
Parks, U.S. Marine Corps; Lieutenant General Donald Peterson, 
United States Air Force; and Rear Admiral R. Dennis Sirois, 
U.S. Coast Guard, appeared before the Subcommittee to answer 
questions. Each of the personnel chiefs testified that the MGIB 
served as their best recruiting incentive. The veterans service 
organizations (VSO) were represented by Mr. Sidney Daniels, 
Deputy Legislative Director, Veterans of Foreign Wars; Mr. Bob 
Norton, Deputy Director of Government Relations, The Retired 
Officers Association; Mr. Mark H. Olanoff, Legislative 
Director, The Retired Enlisted Association; Mr. John Vitikacs, 
Deputy Director for the National Economic Commission, The 
American Legion; and Mr. Richard Weidman, Director of 
Government Relations, Vietnam Veterans of America. Mr. Richard 
Jones, AMVETS, submitted testimony for the record. Each VSO 
supported the bill.
    On June 7, 2001, the Subcommittee on Benefits conducted the 
second hearing on H.R. 1291, and also took testimony on the 
General Accounting Office's report, Veterans' Employment and 
Training Service (VETS), Proposed Performance Measurement 
System Improved, But Further Changes Needed (GAO-01-580).
    Testifying in support of H.R. 1291 were Representative John 
D. Dingell of Michigan and Representative Ronnie Shows of 
Mississippi. Representative Jim Saxton of New Jersey testified 
on behalf of the Joint Economic Committee. Honorable Anthony 
Principi, Secretary of Veterans Affairs, testified on behalf of 
the Administration, accompanied by Honorable Joseph Thompson, 
Under Secretary for Benefits, VBA, and Mr. Chris Yoder, 
Counselor to the Secretary. The Higher Education Community was 
represented by Ms. Kathleen Little, Executive Director of 
Financial Aid Services, The College Board; Dr. Constantine W. 
``Deno'' Curris, President, American Association of State 
Colleges and Universities; Dr. David Warren, President, 
National Association of Independent Colleges and Universities; 
Dr. Horace W. Fleming, President, University of Mississippi; 
and Mr. David Guzman, President, National Association of 
Veteran Program Administrators. Testifying on behalf of GAO was 
Dr. Sigurd Nilsen, GAO Director of Education, Workforce, and 
Income Security Issues. Testifying on behalf of the Department 
of Labor was the Honorable Chris Spear, Assistant Secretary of 
Labor for Policy, accompanied by Mr. Stanley Seidel, Acting 
Assistant Secretary for VETS. Submitting statements for the 
record were the Air Force Sergeants Association; Honorable Don 
Sundquist, Governor of Tennessee; Mr. C. Donald Sweeney, 
National Association of State Approving Agencies; Ms. Kimberlee 
D. Vockel, Director of Legislative Affairs, Non Commissioned 
Officers Association; Mr. Thomas J. McKee, Air Force 
Association; and Mr. Brian E. Lawrence, Associate National 
Legislative Director, Disabled American Veterans.
    H.R. 1291 had over 100 cosponsors and was supported by all 
who testified before the Subcommittee. Many Members agreed with 
the Chairman that the increases proposed in H.R. 1291 
represented a first step toward the ultimate goal to have MGIB 
pay tuition, fees, and a monthly subsistence allowance.
    The GAO report examined performance measures that VETS had 
proposed for employment and training services through the 
public labor exchange. GAO found that VETS' proposed 
performance measures improved performance over the current 
system but certain aspects of the new measures raised concerns 
that VETS should address, especially with respect to measuring 
``results,'' not ``process.'' The Department of Labor 
representatives testified that they agreed with most of the 
conclusions of the GAOs report. However, VETS had concerns 
about GAO recommendations to allow half-time Disabled Veterans' 
Outreach Specialists (DVOP) staff positions and to combine DVOP 
and Local Veterans' Employment Representatives (LVER) grants 
into a single staffing grant.

Hearing on H.R. 862, H.R. 1406, H.R. 1435, H.R. 1746, H.R. 
1929, H.R. 2359 and H.R. 2361

    On July 10, 2001, the Subcommittee on Benefits held a 
legislative hearing on the following bills: H.R. 862, to add 
Type 2 diabetes to the list of diseases presumed to be service-
connected for veterans exposed to certain herbicide agents; 
H.R. 1406, the Gulf War Undiagnosed Illness Act of 2001, which 
addressed Persian Gulf War illness issues; H.R. 1435, the 
Veterans' Emergency Telephone Service Act of 2001, and H.R. 
1746, to establish a single ``1-800'' telephone number for 
veterans benefits counseling, both of which addressed providing 
veterans a toll-free number they could call to access full 
veterans benefits information; H.R. 1929, the Native American 
Veterans Home Loan Act of 2001, which extended and improved the 
Native American home loan pilot project; H.R. 2359, which made 
program changes to the National Service Life Insurance and U.S. 
Government Life Insurance programs; and H.R. 2361, the 
Veterans' Compensation Cost-of-Living Act of 2001.
    Representative Tom Udall of New Mexico testified in support 
of his bill, H.R. 1929, Representative Richard Baker of 
Louisiana testified in support of his bill, H.R. 1746, and 
Representative Donald Manzullo of Illinois testified in support 
of his bill, H.R. 612. Representative Lois Capps of California 
submitted a statement for the record in support of her bill, 
H.R. 1435. Honorable Joseph Thompson, Under Secretary for 
Benefits, VBA, testified on behalf of VA. Dr. John Feussner, 
Chief Research and Development Officer, VHA, accompanied Mr. 
Thompson. Representing the veterans service organizations were: 
Mr. Joseph Violante, National Legislative Director, Disabled 
American Veterans; Mr. James Fischl, Director of Veterans' 
Affairs and Rehabilitation Commission, The American Legion; Mr. 
Sidney Daniels, Deputy Director of National Legislative 
Service, Veterans of Foreign Wars; Mr. David Tucker, Senior 
Legislative Director, Paralyzed Veterans of America; Mr. 
Richard Jones, National Legislative Director, AMVETS; and 
Leonard Selfon, Esq., Director of Veterans Benefits Programs, 
Vietnam Veterans of America.
    VA and veterans service organization witnesses generally 
supported the bills under consideration with the following 
exceptions: VA did not support the addition of certain 
conditions to the list of service-connected diseases for 
Persian Gulf War veterans contained in the bill because it 
believed the descriptions of the conditions were vague and 
would result in uncertainty regarding proper implementation. 
Also, most of the witnesses, including the VA representative, 
opposed H.R. 1435 and H.R. 1746 as not necessary in light of 
the improvements VA had made to its toll-free phone service.

Subcommittee Markup of H.R. 862, H.R. 1406, H.R. 1435, H.R. 
1746, H.R. 2359 and H.R. 2361

    On July 12, 2001, the Subcommittee marked up a draft bill 
incorporating provisions from H.R. 862, H.R. 1406, H.R. 1435, 
H.R. 1746, H.R. 2359, and H.R. 2361. The bill was reported 
favorably to the full Committee by voice vote. On July 19, the 
full Committee met and marked up H.R. 2540, as amended, the 
Veterans Benefits Act of 2001 (see House Report 107-156). On 
July 31, the House passed H.R. 2540, as amended, by a vote of 
422-0. After being amended by the Senate, the bill was enacted 
as Public Law 107-94 containing only the cost-of-living 
allowance provisions (see p. 10 for summary).

Second Session

Hearing on H.R. 1108, H.R. 2095, H.R. 2222, and H.R. 3731

    On April 11, 2002, the Subcommittee held a hearing on H.R. 
1108, to provide that remarriage of the surviving spouse of a 
veteran after age 55 would not result in termination of 
dependency and indemnity compensation; H.R. 2095, the Reservist 
VA Home Loan Fairness Act of 2001, to provide for uniformity in 
fees charged to qualifying members of the Selected Reserve and 
active duty veterans for home loans guaranteed by the Secretary 
of Veterans Affairs; H.R. 2222, the Veterans Life Insurance 
Improvement Act of 2001, to increase benefit amounts for VA 
insurance programs; and H.R. 3731, to increase amounts 
available to State approving agencies in light of their 
additional statutory responsibilities with respect to licensing 
and credentialing and employer outreach duties.
    Witnesses included Honorable Daniel Cooper, Under Secretary 
of Benefits, VBA, accompanied by Mr. Robert Epley, Associate 
Deputy Under Secretary for Policy and Program Management, VBA; 
Mr. Michael Walcoff, Associate Deputy Under Secretary (West), 
VBA; and Mr. John Thompson, VA Deputy General Counsel. The 
veterans service organizations were represented by Ms. Erin 
Harting, Legislative Analyst, The Enlisted Association of the 
National Guard; Mr. Carl Blake, Associate Legislative Director, 
Paralyzed Veterans of America; Mr. Sidney Daniels, Assistant 
Director, Benefits Policy, Veterans of Foreign Wars; Mr. Brian 
Lawrence, Associate National Legislative Director, Disabled 
American Veterans; Ms. Aseneth Blackwell, President, Gold Star 
Wives of America; Mr. Jim Fischl, Director of Veterans' Affairs 
and Rehabilitation Commission, The American Legion; Mr. Richard 
Jones, National Legislative Director, AMVETS; and Mr. Rick 
Weidman, Director of Government Relations, Vietnam Veterans of 
America. Representative Michael Bilirakis of Florida testified 
in support of his bill, H.R. 1108, pointing out that many 
federal annuities are accorded to surviving spouses who remarry 
at older ages. Representative Bob Filner of California 
testified in support of his bill, H.R. 2222.
    There was consensus among the witnesses in support of the 
provisions contained in the four bills before the Subcommittee.

Hearing on H.R. 4015, Jobs for Veterans Act

    On April 18, 2002, the Subcommittee held a legislative 
hearing on H.R. 4015, the Jobs for Veterans Act. H.R. 4015 was 
intended to enhance veterans' job training programs at the 
Department of Labor's Veterans' Employment and Training Service 
(VETS), and provide greater accountability, flexibility, and 
incentives for state Job Service programs to secure jobs, 
especially for disabled and other hard-to-place veterans. The 
bill provided priority of service to veterans in any job-
training program funded in whole or in part by the Department 
of Labor. The bill also required the Assistant Secretary of 
Labor for VETS to establish and implement a comprehensive 
performance accountability system to measure the performance of 
veterans' employment and training and public labor exchange 
systems.
    Witnesses included Honorable Frederico Juarbe, Jr., 
Assistant Secretary for Veterans' Employment and Training 
Service, U.S. Department of Labor (DOL), who testified on 
behalf of the Department and was accompanied by Mr. Charles S. 
Chiccolella, Deputy Assistant Secretary for Veterans' 
Employment and Training Service; Mr. Stanley Seidel, VETS 
Director, Office of Operations and Programs; Mr. Ronald 
Bachman, VETS Director of Strategic Planning; and Mr. Ronald 
Drach, VETS Special Assistant for Strategic Planning and 
Legislative Matters. Representing state workforce entities were 
Mr. Rex Hall, Chairman, Veterans' Advisory Committee, National 
Association of State Workforce Agencies; Mr. Rodger Madsen, 
Director, Idaho Department of Labor; Mr. T.P. O'Mahoney, 
Commissioner Representing Labor, Texas Workforce Commission; 
and Mr. Ken Mayfield, President-Elect, National Association of 
Counties. Employment and Labor Associations and Unions were 
represented by Mr. Bruce Wyngaard, Operations Director, Ohio 
Civil Service Employees Association, AFSCME Local 11; Mr. 
Dennis Beagle, New York State Public Employees Federation; and 
Mr. Wesley Poriotis, Chief Executive Officer, Wesley, Brown & 
Bartle Company, Inc.
    The veterans service organizations were represented by Mr. 
James N. Magill, Director, National Employment Policy, Veterans 
of Foreign Wars; Mr. Steve Robertson, Legislative Director, The 
American Legion; Mr. Carl Blake, Associate Legislative 
Director, Paralyzed Veterans of America; Mr. Rick Weidman, 
Director of Government Relations, Vietnam Veterans of America; 
and Mr. Richard Jones, National Legislative Director, AMVETS. 
Submitting statements for the record were the Workforce New 
Jersey; the Disabled American Veterans; Mr. Raymond Boland, 
Legislative Director, National Association of State Directors 
of Veterans Affairs; Mr. John K. Lopez, Chairman, Association 
for Service Disabled Veterans; and Captain Thomas M. Hale, USN 
(Ret.), Senior Vice President, Resource Consultants, Inc.
    All witnesses supported H.R. 4015. The Department of Labor 
representative supported many of the provisions of the bill and 
suggested some revisions including a 3-year implementation 
period and a ``hold harmless'' provision for the DVOP-LVER 
funding formula.

Subcommittee Markup of H.R. 4085 and H.R. 4015

    On May 2, 2002, the Subcommittee on Benefits marked up H.R. 
4085 and H.R. 4015, with amendments. Both bills were reported 
favorably to the full Committee. On May 9, the full Committee 
met and marked up H.R. 4085 and H.R. 4015. Each bill was 
reported favorably, as amended, to the House (see House Report 
107-472 and House Report 107-476, respectively). On May 21, the 
House passed H.R. 4085, as amended, by a vote of 410-0; the 
House passed H.R. 4015, as amended, by a vote of 409-0. H.R. 
4085 ultimately became Public Law 107-247 on October 23, 2002, 
and H.R. 4015 ultimately became Public Law 107-288 on November 
7, 2002 (see p. 20 and p. 22 for summaries).

Hearing on H.R. 3173, H.R. 3735, H.R. 3771, and H.R. 4042, and 
Draft Bills: the Arlington National Cemetery Burial Eligibility 
Act; and Legislation Providing Dependency and Indemnity 
Compensation to the Surviving Spouse of a Veteran with a 
Totally Disabling Service-Connected Cold-Weather Injury

    On June 11, 2002, the Subcommittee on Benefits held a 
legislative hearing on H.R. 3173, the Servicemembers and 
Military Families Financial Protection Act of 2001, to increase 
the maximum monthly lease protection under the Soldiers' and 
Sailors' Civil Relief Act as well as coverage under the 
Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance programs; H.R. 3735, the Department of Veterans 
Affairs Overpayment Administration Improvement Act of 2002, to 
authorize the Secretary to waive veterans' overpayments in 
certain instances and extend the application period for waiver 
recovery; H.R. 3771, to exclude from income for pension 
purposes certain monetary benefits paid to disabled veterans by 
states; H.R. 4042, the Veterans Home Loan Prepayment Protection 
Act of 2002, to prohibit additional daily interest charges 
following prepayment of VA housing loans; and two draft bills, 
the Arlington National Cemetery Burial Eligibility Act, to 
codify burial eligibility requirements for interment at 
Arlington, and legislation to provide dependency and indemnity 
compensation to the surviving spouse of a veteran with a 
totally disabling service-connected cold weather injury.
    Representative Luis Gutierrez of Illinois testified in 
support of his bill, H.R. 3173. Honorable Daniel Cooper, Under 
Secretary for Benefits, testified for the Veterans Benefits 
Administration (VBA). Mr. Cooper was accompanied by Mr. Robert 
Epley, Associate Under Secretary for Policy and Program 
Management, VBA, Mr. John Thompson, VA Deputy General Counsel, 
and Mr. Thomas Lastowka, Director, VA Regional Office and 
Insurance Center. Additional witnesses included Mr. Craig 
Duehring, Acting Assistant Secretary of Defense (Reserve 
Affairs), Department of Defense; Mr. Thurman Higginbotham, 
Deputy Superintendent, Arlington National Cemetery; Mr. Brian 
Lawrence, Associate National Legislative Director, Disabled 
American Veterans; Mr. Carl Blake, Associate Legislative 
Director, Paralyzed Veterans of America; Mr. Patrick Eddington, 
Associate Director of Government Relations, Vietnam Veterans of 
America; Mr. Richard Jones, National Legislative Director, 
AMVETS; Mr. Thomas Miller, Executive/Legislative Director, 
Blinded Veterans Association; Mr. James Fischl, Director, 
National Veterans' Affairs and Rehabilitation Commission, The 
American Legion; Mr. Sidney Daniels, Assistant Director for 
Veterans Benefits Policy, Veterans of Foreign Wars; and Mr. 
Daniel Borinsky, attorney-at-law, Esquire Settlement Services. 
The Administration witnesses opposed the bills before the 
subcommittee; the veterans service organization and other 
witnesses supported all the bills.

Subcommittee Markup of H.R. 4940 and H.R. 5055

    On July 9, 2002, the Subcommittee on Benefits met and 
marked up H.R. 4940 and H.R. 5055. Both bills were ordered 
reported favorably to the full Committee. On July 16, the full 
Committee met and marked up H.R. 4940 and H.R. 5055. H.R. 4940 
was favorably reported to the House by a vote of 22-3 (see 
House Report 107-588). H.R. 5055 was also favorably reported to 
the House (see House Report 107-589). On July 22, the House 
passed H.R. 4940 and H.R. 5055 by the House by voice vote. 
However, the Senate did not act on H.R. 4940. H.R. 5055 
ultimately became part of Public Law 107-330 on December 6, 
2002 (see p. 26 for summary).

Hearings on H.R. 5111, the Servicemembers' Civil Relief Act, 
and H.R. 4017, the Soldiers' and Sailors' Civil Relief Equity 
Act

    On July 24 and July 25, 2002, the Subcommittee on Benefits 
held hearings on H.R. 5111, the Servicemembers' Civil Relief 
Act, and H.R. 4017, the Soldiers' and Sailors' Civil Relief 
Equity Act. H.R. 5111 was a restatement and clarification of 
the Soldiers' and Sailors' Civil Relief Act of 1940. H.R. 4017 
added coverage under Soldiers' and Sailors' Civil Relief Act 
for those National Guard members called up under title 32, 
United States Code, for 30 days or more.
    On July 24, the witnesses included Mr. Craig Duehring, 
Acting Assistant Secretary of Defense (Reserve Affairs); Ms. 
Judy Wilson, Deputy Director, Government Relations, the 
Enlisted Association of the National Guard; Mr. Bob Manhan, 
Assistant Director, National Legislative Service, Veterans of 
Foreign Wars; Mr. Richard Jones, National Legislative Director, 
AMVETS; and Ms. Joyce Wessel Raezer, Director, Government 
Relations, the National Military Family Association, Inc.
    On July 25, the witnesses were Robert Hirshon, Esq., 
President, American Bar Association; Eugene R. Fidell, Esq., 
Feldeman, Tucker, Leifer, Fidell & Bank, LLP; Mr. James Murphy, 
Chairman, Mortgage Bankers Association of America; Henry R. 
Desmarais, MD, M.P.A., Senior Vice President, Health Insurance 
Association of America; Ms. Kimberlee D. Vockel, Director of 
Legislative Affairs, Non Commissioned Officers Association; Mr. 
William B. Loper, Director of Government Affairs, Association 
of the United States Army; and Mr. James P. Tierney, Deputy 
Director of Legislative Programs, National Guard Association of 
the United States.
    The Administration supported both bills in concept while 
opposing some specific provisions. Other witnesses also 
generally supported the bills in concept with suggestions for 
substantive or technical improvements.

                          OVERSIGHT ACTIVITIES

First Session

Hearing on the General Accounting Office's Report: ``Veterans' 
Employment and Training Service Flexibility and Accountability 
Needed to Improve Service to Veterans''

    On October 30, 2001, the Subcommittee on Benefits held a 
hearing on the GAO report: ``Veterans' Employment and Training 
Service: Flexibility and Accountability Needed to Improve 
Service to Veterans'' (GAO-01-928), and the VA's implementation 
of the Vocational Training and Rehabilitation program. The GAO 
report was requested by Representative Steve Buyer of Indiana, 
Chairman of the Oversight and Investigations Subcommittee.
    Witnesses included Mr. Julius Williams, VA Director of 
Rehabilitation, accompanied by Ms. Gloria M. Young, Vocational 
Rehabilitation and Counseling Officer; Mr. Charles S. 
Ciccollela, Deputy Assistant Secretary of Labor for VETS, 
accompanied by Mr. Stanley Seidel, Director, Office of 
Operations and Programs; Dr. Sigurd Nilsen, GAO; Mr. Rex Hall, 
Chairman, Veterans Affairs Committee, National Association of 
State Workforce Agencies; Mr. Roger Madsen, Director, Idaho 
Department of Labor; Mr. Terrence P. O'Mahoney, Commissioner 
Representing Labor, Texas Workforce Commission; Mr. Steve 
Robertson, Legislative Director, The American Legion; Mr. James 
N. Magill, Director of Employment Policy, Veterans of Foreign 
Wars; and Mr. Rick Weidman, Director of Government Relations, 
Vietnam Veterans of America.
    This report was the seventh GAO has issued on VETS programs 
since 1997. GAO testified on the numerous improvements needed 
in the VETS delivery system, including collecting outcome data, 
such as information on veterans' wages and job retention, and a 
more effective performance management system in the states. The 
testimony of veterans service organizations largely supported 
GAO's recommendations. VA's witness testified on initiatives 
and measures employed in the vocational rehabilitation program, 
including job placement. Findings from this hearing helped in 
formulating H.R. 4015, which used many of the recommendations 
from the GAO reports.

Second Session

Staff Site Visit to National Personnel Records Center, St. 
Louis, Missouri

    On January 24, 2002, majority and minority staff members of 
the Subcommittee on Benefits made a site visit to the National 
Personnel Records Center (NPRC) in St. Louis, Missouri. NPRC, 
part of the National Archives and Records Administration, is 
responsible for maintaining the official military personnel 
records of discharged members of the Armed Forces. 
Approximately 80 million military records are stored and filed 
at NPRC.
    NPRC is faced with a large backlog of requests for 
veterans' records. The Veterans Benefits Administration (VBA) 
has indicated that waiting for service documentation from NPRC 
can be a significant obstacle in processing a veteran's claim 
in a timely manner. Subcommittee staff made this site visit in 
order to evaluate the problems confronting NPRC and to consider 
how Congress could alleviate the backlogs at both NPRC and VBA.

Staff Site Visit to VA Regional Office, Cleveland, Ohio

    On April 1, 2002, majority and minority staff members of 
the Subcommittee on Benefits made a site visit to the VA 
Regional Office in Cleveland, Ohio, to view operations of the 
``Tiger Team.'' Secretary Principi established this initiative 
to expedite the processing of claims of older veterans. In 
November 2001, VA began an 18-month ``Tiger Team'' effort to 
resolve 81,000 of the oldest compensation and pension claims. 
This team is comprised of claims experts, and though located at 
the Cleveland RO, operates independently of it. The team is 
concentrating on processing older claims throughout the system, 
with top priority accorded claims from veterans over age 70 
that have been pending for a year or more.

Field Hearing on VA Claims Processing

    On April 26, 2002, the Subcommittee on Benefits held a 
field hearing at Ft. Bliss, a U.S. Army base in El Paso, Texas, 
on VA claims processing. Representatives in attendance included 
Subcommittee Chairman Mike Simpson of Idaho, Subcommittee 
Ranking Member Silvestre Reyes of Texas, and full Committee 
Ranking Member Lane Evans of Illinois. Witnesses from the El 
Paso veterans community included Mr. John McKinney, Mr. Ron 
Holmes, Ms. Jane Franks, and Mrs. Mary Ann Stewart. Ms. Barbara 
Cook testified on behalf of Local 2571, American Federation of 
Government Employees. Ms. Cynthia Bascetta, Director for Health 
Care--Veterans' Health and Benefits Issues, represented GAO and 
was accompanied by Ms. Irene Chu, Mr. Martin Scire, and Mr. 
Greg Whitney. Mr. Robert Epley, Associate Deputy Under 
Secretary for Policy and Program Management, represented VBA 
and was accompanied by Mr. Michael Walcoff. Mr. Carl Lowe, 
Director, Waco VA Regional Office, also testified. The 
veterans' representatives expressed their frustration with an 
overburdened claims system, and the VA detailed its efforts to 
reduce the backlog while retaining quality of claims decisions.

Hearing on Status of VA Implementation of Claims Processing 
Task Force Recommendations, and Potential for Greater VA/
Veterans Service Organization Partnership

    On June 6, 2002, the Subcommittee on Benefits held an 
oversight hearing on the status of VA's implementation of the 
VA Claims Processing Task Force's recommendations, and the 
potential for a greater VA/veterans service organization (VSO) 
partnership. Witnesses included: Honorable Daniel Cooper, Under 
Secretary for Benefits, VBA, accompanied by Mr. Robert Epley, 
Associate Deputy Under Secretary for Policy and Program 
Management, Mr. E. Dane Clark, Board of Veterans' Appeals, Ms. 
Laura Miller, Assistant Deputy Under Secretary for Health, Mr. 
John H. Thompson, VA Deputy General Counsel, and Mr. Jack Ross, 
Director, Cleveland VA Regional Office; Mr. George Hunt, 
President, National Association of County Veterans Service 
Officers, accompanied by Mr. Michael Murphy, First Vice 
President, and Mr. Ronald Melendez, Treasurer/Chief Financial 
Officer; Mr. Raymond Boland, President, National Association of 
State Directors of Veterans Affairs; Mr. Carl Blake, Associate 
Legislative Director, Paralyzed Veterans of America; Mr. John 
McNeil, Deputy Director, National Veterans Service, Veterans of 
Foreign Wars; Mr. Brian Lawrence, Associate National 
Legislative Director, Disabled American Veterans; Mr. James 
Fischl, Director, National Veterans Affairs and Rehabilitation 
Commission, The American Legion; Mr. John Lopez, Chairman, 
Association of Service Disabled Veterans; Leonard Selfon, Esq., 
Director, Veterans Benefits Program, Vietnam Veterans of 
America; and Mr. Howard DeWolf, National Service Director, 
AMVETS.
    Several veterans service organizations, particularly the 
National Association of County Veterans Service Officers, the 
Paralyzed Veterans of America, and the Veterans of Foreign Wars 
expressed their vision for submitting fully-developed, ready-
to-rate disability compensation claims; the VA supported a 
stronger VA/VSO ``partnership,'' and described its initiatives 
for partnership.

Hearing on the Transition Assistance Program and the Disabled 
Transition Assistance Program

    On July 18, 2002, the Subcommittee on Benefits held a 
hearing on the Transition Assistance Program (TAP) and the 
Disabled Transition Assistance Program (DTAP). With an 
estimated 1.1 million servicemen and women transitioning to 
civilian life over the next five years, the progress and 
effectiveness of federal programs to help them find jobs is an 
important issue for the Committee. As required by law, the 
Army, Navy, Air Force, Marine Corps, Coast Guard provide pre-
separation counseling not later than 180 days prior to 
separation, and as early as 12 months prior to separation for 
servicemembers serving one term and 24 months prior to 
separation for retirees. Among the items discussed were earned 
educational and home loan benefits, disability compensation and 
health care benefits, job search and placement information, and 
financial planning.
    The witnesses included Ms. Cynthia Bascetta, GAO, 
accompanied by Ms. Sheila Drake; Mr. John M. Molino, Deputy 
Assistant Secretary of Defense for Military, Community and 
Family Policy; Mr. John McLaurin, Deputy Assistant Secretary 
for Human Resources, U.S. Army; Ms. Anita Blair, Deputy 
Assistant Secretary for Personnel Programs, U.S. Navy; Ms. 
Kelly Craven, Deputy Assistant Secretary for Force Management 
Integration, U.S. Air Force; Rear Admiral Joyce Johnson, 
Director, Directorate of Health and Safety, U.S. Coast Guard; 
Mr. Robert Epley, Associate Deputy Under Secretary for Policy 
and Program Management, VBA; and Honorable Frederico Juarbe, 
Jr., Assistant Secretary of Labor for Veterans' Employment and 
Training Service.
    Each service branch and the Department of Defense testified 
that a Department of Labor presence on U.S. military bases 
abroad would help transitioning servicemembers, many of whom 
cannot communicate with employers in the states and territories 
during the business day due to time-zone differences. All 
witnesses, Chairman Simpson, and Ranking Member Reyes expressed 
support for DOL stationing personnel at major military bases 
overseas to assist transitioning servicemembers in finding 
jobs; DOL agreed to expeditiously explore this possibility.
    Witnesses at the hearing reiterated that one of the 
hallmarks of a successful transition is sustained, quality 
employment. They confirmed that the reliability, initiative and 
leadership qualities servicemembers possess are valuable to 
civilian employers, and that hiring former servicemembers is a 
good business decision.

              Subcommittee on Oversight and Investigations

    The Subcommittee on Oversight and Investigation is charged 
with oversight of all matters within the jurisdiction of the 
Committee on Veterans' Affairs. Primary focuses include: 
combating government waste, fraud, and abuse; improving Federal 
accountability; and assuring Federal compliance with law 
through oversight and investigation. The Subcommittee also 
strives to protect the rights of veterans and their family 
members. In order to carry out its responsibilities, the 
Subcommittee conducts hearings, site visits and investigations 
nationwide, and commissions reports from the General Accounting 
Office, the Congressional Research Service, and the VA's Office 
of the Inspector General. (See p. 89, Oversight Plan for 107th 
Congress).

                           OVERSIGHT HEARINGS

First Session

Hearing on VA Information Technology

    On April 4, 2001, the Subcommittee on Oversight and 
Investigations held a hearing on the Department of Veterans 
Affairs' information technology programs. Witnesses included: 
Honorable Anthony J. Principi, Secretary of Veterans Affairs; 
Honorable Thomas L. Garthwaite, Under Secretary for Health, 
VHA; Honorable Joseph Thompson, Under Secretary for Benefits, 
VBA; the Honorable Roger H. Rapp, VA Under Secretary for 
Memorial Affairs; Mr. Karl Ware, Executive Vice-President of 
Operations, BioNetrix Systems Corporation; Mr. Ken Brandt, 
Managing Director, Tiger Testing; Mr. Scott C. Sherman, 
Director of Advanced Technology Architectures, EMC2 
Corporation; Dr. David McClure, Director of Information 
Technology Management Issues, GAO; Ms. Valerie C. Melvin, 
Assistant Director for Accounting and Information Management 
Issues, GAO; Honorable Richard J. Griffin, VA Inspector 
General; and Mr. Michael Slachta, VA Assistant Inspector 
General for Audit. The House Majority Leader, Honorable Richard 
Armey, also provided a statement for the record.
    In this second follow-up hearing (previous hearings on May 
11, 2000, and September 21, 2000, 106th Congress), the 
Subcommittee heard testimony concerning computer security, VA's 
efforts to develop an integrated, department-wide enterprise 
architecture, VHA's Decision Support System (DSS), and VBA's 
VETSNET compensation and pension system. VA testified that it 
had not defined its system-wide architecture. It also gave a 
progress report on the DSS program.
    VA has been upgrading its IT infrastructure for the last 
decade. The IT budget for 2001 was $1.4 billion and for 2002 
was $1.1 billion. It has received approximately one billion 
dollars a year for the past decade.
    The hearing concluded with the Chairman stating that at 
planned follow-up hearings, VA should anticipate the following 
questions being asked: (1) when will the integrated enterprise 
architecture plan be delivered to Congress; (2) when will VA's 
level of IT security be at adequate levels to protect the 
privacy of veterans; (3) when will VETSNET be required to pass 
the independent audit referenced in VA's testimony; and (4) 
when will DSS be fully implemented and standardization audits 
be in place?

Field Hearing on Quality of Care and Management Issues

    On September 5, 2001, the Subcommittee held a field hearing 
at the Indiana War Memorial in Indianapolis, on quality of care 
and management issues in Indiana, and the management and 
delivery of benefits by the VA Regional Office for Benefits in 
Indianapolis. Witnesses included: Honorable Anthony J. 
Principi, Secretary of Veterans Affairs; Honorable Richard 
Griffin, VA Inspector General; Mr. Alanson Schweitzer, VA 
Assistant Inspector General for Healthcare Inspections; Mr. 
William DeProspero, Director, Chicago Operations Division, VA 
Office of Inspector General; Mr. Paul Curtice, Veteran Service 
Officer, Morgan County Indiana Veterans Office; Mr. Randy 
Fairchild, Veteran Service Officer, Tippecanoe County Indiana 
Veterans Office; Mr. William D. Jackson, Director, Indiana 
State Department of Veterans Affairs; Mr. Jay Kendall, Veteran 
Service Officer, Miami County Indiana Veterans Office; Mr. John 
Michalski, Commander, The American Legion of Indiana; Ms. Linda 
Belton, Director of VHA Veterans Integrated Service Network 11; 
Michael W. Murphy, Ph.D., Director VA Northern Indiana Health 
Care System; Mr. Robert H. Sabin, Director, Richard L. 
Roudebush VA Medical Center; Mr. Jeffrey M. Alger, Director, VA 
Regional Office for Benefits, Indianapolis; Mr. Frederick G. 
Bitner, President, AFGE Local 610; Ms. Teri James, RN, 
President, AFGE Local 609; and Mr. William Overbey, President, 
AFGE Local 1020.
    Secretary Principi testified that one of his highest 
priorities was to reduce the 650,000 claims backlog that was 
largely inherited from the previous administration. He also 
outlined VA's goals, based on his five-part vision (health 
care, benefits, medical research, national cemeteries, and VA's 
business practices). The Secretary discussed his Tiger Team 
initiative, the Claims Processing Task Force headed by Admiral 
(ret.) Daniel Cooper, and the Acquisition Reform Task Force, 
which were designed to achieve his goals for the VA in the 21st 
century.
    The Inspector General provided an overview of the Combined 
Assessment Program Review dated May 31, 2000, and cited several 
areas that required improvement at Roudebush Medical Center, 
including the need to strengthen its informed consent 
procedures used for surgical and human research projects. The 
Inspector General also identified three systemic concerns: 
reconciliation of government purchase cards; inventory control 
problems with some of the more expensive drugs; and destruction 
of expired drugs.
    The Subcommittee addresses several management issues at the 
Marion VA facility. VA witnesses were questioned about the cost 
benefit and justification of possible bed closures at the 
Marion VA. Also, they were questioned about the justification 
for building and dedicating a new Psychiatric facility at the 
Marion VA, if it were to be used at only a fraction of design 
capacity.
    Several veterans' service officers and union 
representatives testified about issues affecting Indiana 
veterans and the VA. These issues include union disagreements 
with VA management, lengthy waiting times for veterans to get 
appointments and staffing shortages at the VA facilities in the 
state.

Hearing on VA's Medical Care Collection Fund

    On September 20, 2001, the Subcommittee held a hearing 
which examined a number of issues that have confronted VA in 
its efforts to improve its third party collections under the 
Medical Care Collection Fund (MCCF). Witnesses included: Mr. 
Steven P. Backhus, Director of Health Care--VA and Military 
Health Issues, GAO; Honorable Richard J. Griffin, VA Inspector 
General; Mr. James E. Woys, President and Chief Operating 
Officer, Health Net Federal Services; Mr. Edward Gaskell, 
President, AdvanceMed Corporation; Honorable Thomas L. 
Garthwaite, M.D., Under Secretary for Health, VHA; and Ms. 
Karen Sagar; MCCF Director, Martinsburg VA Medical Center.
    In 1997, Congress gave VA authority to retain third party 
collections it recovered, instead of returning the funds to the 
U. S. Treasury. This was done at the request of VA as a part of 
its five year plan to obtain ten percent of its funding from 
third party collections and other revenue sources. VA had not 
been able to meet this goal and acknowledged that for fiscal 
year 2002 revenues from alternative sources would only reach 
four percent.
    The Inspector General shared information gathered from his 
Combined Assessment Program Reviews that were conducted from 
January 1, 1999 to August 15, 2001, as well as the most recent 
MCCF findings. GAO testified that the VA reversed its decline 
in third-party collections mainly due to its implementation of 
the ``reasonable charges'' billing system. However, the GAO 
representative suggested that the system's longstanding 
problems still existed. The Subcommittee also heard testimony 
from individuals in the private sector about what is necessary 
to maximize collections, and why information collection is 
important. VA provided its overview of the progress it had made 
in collections. VA also presented the Price Waterhouse report 
it commissioned that identified actions in 24 major areas that 
should be taken to improve revenue operations.

Hearing on the Need to Develop Education and Training Programs 
on the Medical Responses to the Consequences of Terrorist 
Activities

    On November 14, 2001, the Subcommittee on Oversight and 
Investigations held a hearing to review the capabilities of the 
Nation's medical community to diagnose and treat casualties 
resulting from biological, chemical, and radiological 
incidents. Witnesses included: Representative John Cooksey of 
Louisiana; Representative Dave Weldon of Florida; John Eisold, 
M.D., Attending Physician to Congress; Susan Matcha, M.D., Mid-
Atlantic Permanente Medical Group; Carlos Omenaca, M.D., Miami 
Heart Center; Frances Murphy, M.D., Deputy Undersecretary for 
Health, VHA; Susan Mather, M.D., Chief Officer, Public Health 
and Environmental Hazards, VHA; Mr. Kenneth Misrach, Director, 
VA New Jersey Health Care System; Val Hemming, M.D., Dean, F. 
Edward Hebert School of Medicine, Uniformed Services University 
of the Health Sciences (USUHS); J. Edward Hill, M.D., Chairman-
Elect of the Board of Trustees, American Medical Association; 
Jordan J. Cohen, M.D., President, American Association of 
Medical Colleges; Martin J. Blaser, M.D., Professor and 
Chairman, Department of Medicine, New York University School of 
Medicine. The Subcommittee heard testimony about the roles of 
VA and DOD in educating the nation's medical students and 
current health care professionals to diagnose and treat 
casualties resulting from an unconventional attack.
    The merits of H.R. 3254, the Medical Education for National 
Defense Act of the 21st Century, introduced by Subcommittee 
Chairman Buyer, were also discussed. DOD testified that the 
USUHS curriculum prepares its physicians to deal with 
biological, chemical, and chemical terrorism. USUHS is the only 
medical school in the Nation that has this training as part of 
its core curriculum. The VA representative testified that VA's 
infrastructure, which consists of 171 medical centers, 800 
clinics, satellite broadcast capabilities and a preexisting 
affiliation with 107 medical schools, would enable current and 
future medical professionals in this country to become 
knowledgeable and medically competent in the treatment of such 
exposures.
    Dr. Matcha and Dr. Omenaca, who treated anthrax victims in 
Washington, DC, and Florida respectively, testified that their 
medical training left much to be desired when responding to an 
anthrax attack. Dr. Eisold shared with the Subcommittee the 
steps he took to safeguard individuals potentially exposed to 
anthrax on Capitol Hill. Dr. Hill and Dr. Cohen testified that 
the civilian medical community would be receptive to 
information and training programs offered by VA and DOD and 
that this information would enhance the medical schools' 
curricula. The substance of H.R. 3254 became part of Public Law 
107-287 (see p. 21 for summary).

Second Session

Hearing on VA Information Technology with Review of Integrated 
Systems Architecture, VETSNET, DSS, Information Security, and 
the Government Computer-Based Patient Record Program

    On March 13, 2002, the Subcommittee on Oversight and 
Investigations held a third follow-up hearing on VA's 
continuing efforts to improve and secure its information 
technology system. Witnesses included: Honorable John A. Gauss, 
VA Assistant Secretary for Information and Technology; Mr. 
Bruce A. Brody, VA Associate Deputy Assistant Secretary for 
Cyber Security; Mr. Gary Christopherson, VHA CIO; Ms. K. Adair 
Martinez, VBA CIO; Mr. William Campbell, VA Deputy Assistant 
Secretary for Finance; Dr. Leon Kappelman, Director, 
Information Systems Research Center at the University of North 
Texas; Dr. David McClure, Director, Information Technology 
Management Issues, GAO; Ms. Valerie C. Melvin, Assistant 
Director, Accounting and Information Management Issues, GAO; 
Honorable Richard J. Griffin, VA Inspector General; and Mr. 
Steven Gaskell, Director, VA Inspector General Central Office 
Operations.
    The purpose of the hearing was to learn what progress had 
been made with VA's IT architecture plan, VHA's VETSNET claims 
processing program, VHA's Decision Support Systems, the 
Government Computer-Based Patient Record Program, and computer 
security.
    The Clinger-Cohen Act of 1996 requires that agencies on a 
government-wide basis develop an enterprise architecture. VA 
had disparate systems with multiple data centers, technologies, 
CIOs, networks and vendor products, which often resulted in 
duplication or incompatibility. A ``One-VA'' integrated 
enterprise architecture would eliminate many of these problems 
and reduce operating costs. This would allow more 
interoperability between VBA, VHA, and NCA.
    In this hearing, the Subcommittee examined VA's progress on 
the implementation of the ``One-VA'' integrated enterprise 
architecture plan; progress on the development of the VETSNET 
compensation and pension delivery system; the implementation of 
the Government Computer Based Records system; VA's continuing 
efforts to improve the strength of its network and information 
security; and VHA's Decision Support System. The Subcommittee 
questioned the newly appointed Department CIO about his plans 
for these systems and his ability to take control of the 
Department's IT programs, despite lacking a direct line of 
authority over the CIOs of VHA, VBA and NCA. Dr. Gauss stated 
that he would evaluate all legacy systems and would then make 
appropriate recommendations. Regarding the direct line of 
authority over the administration CIOs, Dr. Gauss stated that 
he would not be opposed to receiving such authority, but he did 
not feel such action was necessary for him to achieve his 
objectives. Other witnesses discussed the need for the CIO's 
increased line and budgetary authority to strengthen management 
and to affect the required changes to achieve ``One-VA.''
    The VA's new head of computer security, Bruce Brody, 
outlined VA's ongoing efforts to strengthen its IT systems 
against infiltration, with the highest priority being to 
protect the system against external attack.

Joint Hearing on Nonprofit Research Corporations and 
Educational Foundations Affiliated with Specific Veterans 
Health Administration facilities

    On May 16, 2002, the Subcommittee on Oversight and 
Investigations and the Subcommittee on Health held a joint 
hearing on VA research and research corporations and 
educational foundations. Witnesses included: Mr. Michael 
Slachta Jr., VA Assistant Inspector General for Audit; Mr. John 
Bilobran, VA Deputy Assistant Inspector General for Audit; Dr. 
John Mather, Chief Officer, Office of Research Compliance and 
Assurance, VHA; Honorable Robert H. Roswell, M.D., VA Under 
Secretary for Health; Honorable Tim S. McClain, VA General 
Counsel; Dr. John R. Feussner, Chief Research and Development 
Officer, VHA; Dr. Mindy Aisen, Director of Rehabilitation 
Research and Development, VHA; Mr. Antonio Laracuente, 
Chairman, National Association of Veterans' Research and 
Education Foundations (NAVREF); Dr. Franklin Zieve, President, 
McGuire Research Institute, Inc.; Mr. Kenneth Hickman, 
Executive Director, Brentwood Biomedical Research Institute; 
and Dr. Wendy Baldwin, Deputy Director for Extramural Research, 
National Institutes of Health (NIH).
    The hearing focused on several issues, including: a follow-
up on a Subcommittee hearing held in April 1999 on the 
suspension of medical research at the West Los Angeles and 
Sepulveda VA medical facilities; the status of VA's research 
accreditation program; a review of the management and 
effectiveness of VA research and education foundations; and an 
examination of intellectual property rights concerning VA's 
inventions and discoveries.
    The Subcommittees received testimony on VA's protection for 
human subject research programs, as well as testimony on 
nonprofit research corporations and educational foundations 
affiliated with VA. The Inspector General testified on VHA's 
lack of knowledge concerning specific aspects and details of 
the 85 active research corporations. Dr. Mather testified that 
VA made significant improvements in its efforts to ensure the 
effectiveness of its human research protection program, but 
that many problems still exist. The VA representatives 
acknowledged that it had to improve its oversight of the 
corporations, but stressed the progress made in the protection 
of human subjects in medical trials. The NAVREF representatives 
testified that the individual research corporations were vital 
VA research programs.
    The Subcommittee questioned VA about its initiative to 
attain intellectual property rights to the many medical 
breakthroughs with which it has been associated. VA provided a 
brief overview of this new program, and was informed to expect 
a Subcommittee hearing on this issue. The Subcommittee also 
questioned NIH on its policy of not including full funding to 
include indirect costs for research conducted at VA facilities. 
NIH provides these costs to most other organizations, including 
foreign research entities. NIH and VA agreed to enter into 
discussion concerning this topic.

Hearing on VA Medical Research Programs

    On September 19, 2002, the Subcommittee on Oversight and 
Investigations held a hearing on VA research activities. 
Witnesses included: Mr. Benjamin Wu, Deputy Under Secretary for 
Technology, U.S. Department of Commerce; Mr. Michael Slachta 
Jr., VA Assistant Inspector General for Audit; Ms. Cynthia 
Bascetta, Director of Veterans' Health and Benefits Issues, 
GAO; Honorable Robert H. Roswell, M.D., Under Secretary for 
Health, VHA; Dr. John Mather, Chief Officer, Office of Research 
Compliance and Assurance (ORCA), VHA; Mindy Aisen, M.D., 
Director of Rehabilitation Research and Development, VHA; James 
Burris, M.D., Acting Chief Research and Development Officer, 
VHA; Mr. John Bradley, Director of Finance, Office of Research 
and Development, VHA; Mr. Antonio Laracuente, Chairman, 
National Association of Veterans' Research and Education 
Foundations (NAVREF); and Wendy Baldwin, M.D., Deputy Director 
for Extramural Research, National Institutes of Health (NIH).
    The hearing provided the Subcommittee with an update on 
several issues: VA's efforts in securing intellectual property 
rights for its medical discoveries and inventions; VA's Human 
Research Protection Accreditation Program; management and 
effectiveness of VA research and education foundations; and 
NIH/VA indirect cost for administration of research grants.
    Witnesses from VA and Commerce testified concerning the 
effectiveness of VA's technology transfer initiatives and how 
they compared to those of other government agencies. It was 
agreed that VA's efforts in this area were generally consistent 
with those of other government agencies and appeared to be 
headed in a positive direction. ORCA testified that it was 
close to completing a comprehensive report on human subject 
protections. The need to strengthen the reporting and 
accountability standards of VA's 85 research and educational 
foundations was discussed. NAVREF provided the Subcommittee 
with an update of its ongoing efforts to ensure the financial 
activities of the corporations comply with the letter and 
spirit of the law.
    The Subcommittee readdressed the NIH research funding 
issues raised in the May 2002 hearing. Dr. Roswell indicated 
the lack of NIH funding for indirect research costs could 
impact veterans' healthcare. Other witnesses testified that VA 
research included the types of research covered by an existing 
statute that requires payments to VA when payments for a 
similar purpose are made to other organizations. Before 1989, 
NIH paid VA for indirect costs for research. A subsequent NIH 
policy eliminated payment for indirect costs requiring VA to 
cover indirect costs for NIH funded research at VA facilities. 
The meeting between VA and NIH, promised at the May 2002 
hearing, occurred only two weeks prior to this hearing.
    Finally, the Subcommittee questioned both the Department of 
Commerce and VA on the topic of intellectual property rights. 
The Subcommittee highlighted VA's past missed opportunities to 
obtain credit and royalties for its involvement in medical 
discoveries, but also applauded VA's recent actions to obtain 
them.

Hearing on VA Information Technology

    On September 26, 2002, the Subcommittee on Oversight and 
Investigations held a fourth follow-up hearing on VA's 
continuing efforts to improve and secure its information 
technology (IT) system. Witnesses included: Honorable John A. 
Gauss, VA Assistant Secretary for Information and Technology; 
Mr. Bruce A. Brody, VA Associate Deputy Assistant Secretary for 
Cyber Security; Dr. Franklin A. Perry, VA Chief Technology 
Officer; Mr. Joel C. Willemssen, Managing Director for 
Information Technology Issues, GAO; Ms. Valerie C. Melvin, 
Assistant Director for Accounting and Information Management 
Issues, GAO; Honorable Richard J. Griffin, VA Inspector 
General; and Mr. Michael Slachta Jr., VA Assistant Inspector 
General for Audit.
    The Subcommittee reviewed the progress on several programs, 
including the VETSNET compensation and pension delivery system. 
Dr. Gauss assured the Subcommittee that this six-year-old 
program would be fully deployed by April 2004. The 
implementation of the Government Computer Based Records system, 
recently renamed the Federal Health Information Exchange 
(FHIE), was also explored. VA and DOD's Memorandum of 
Understanding dated May 3, 2002, stated that VA will take the 
lead on FHIE's execution and completion. The review of VA's 
continuing efforts to improve the strength of its network and 
information security showed significant improvement, but also 
identified continuing weaknesses.
    The Secretary's decision to realign the Department's IT 
personnel under the direct authority of the Department CIO was 
also discussed by Dr. Gauss in his testimony. The Subcommittee 
examined what effect this would have on VA's IT administrative 
structure. For a number of years, GAO recommended that VA 
realign its IT program and place it under the direct control of 
the Departmental CIO. Previously, each administration within VA 
(VHA, VBA, and NCA) had respective CIO's who reported to their 
respective Under Secretaries. The Department CIO could only 
advise the Under Secretary concerning actions that should be 
taken.
    The Secretary's reorganization was hailed by the 
Subcommittee as an important step for VA. The Subcommittee 
pledged its support to the Department in its efforts to 
implement the integrated enterprise architecture plan and the 
consolidation of authority in its CIO position.

                                                                          SUMMARY OF VETERANS' AFFAIRS COMMITTEE ACTION
                                                           BILLS AND RESOLUTIONS REFERRED AND HEARINGS / EXECUTIVE SESSIONS CONDUCTED
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                                                                                                                 Congress
                                         -------------------------------------------------------------------------------------------------------------------------------------------------------
                                           89th    90th    91st     92d     93d    94th    95th    96th    97th    98th    99th    100th   101st   102d    103d    104th   105th   106th   107th
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Bills and resolutions referred..........     791     685     740     693     839     719     709     339     273     229     198     147     194     215     174     128     134     146     194
Hearing sessions........................      71      46      43      37      44      58      72      84      89      71      76      44      72      67      71      39      56      66      58
Meetings and mark-up sessions...........      32      13      27      21      16      30      26      19      18      16      20      16      26      20      23      19      18      13      14
Bills reported..........................      47  \3\ 19      34      26  \4\ 14      23      32      11      16      15      17      14      33      21      25      15      15      10      14
Bills in House..........................   \1\ 4       4       1       4       1  ......       1       1       1       3       3       1       4       3      11  ......  ......       1  ......
Pending in Senate committees............  \2\ 12       3       9       7       2   \5\ 9      17       3       6       6       8       9      23       7      11      10       1       1      10
Bills on Senate Calendar or in Senate...       1  ......  ......  ......  ......  ......       1       1       1  ......       1       3       1       3       3  ......  ......       1  ......
Recommitted.............................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......
Bills vetoed............................  ......  ......  ......       2       1  ......  ......       1  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......
Bills passed over veto..................  ......  ......  ......  ......       1  ......  ......       1  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......
Laws enacted............................      30      15      24      15      15      15      13       6       8       8       6       4       8      24      15       6       6      11      12
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\1\ and \2\ 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.
\3\ Includes S.J. Res. 197 making technical correction to law, which was brought to House floor for immediate consideration and passage by unanimous consent.
\4\ 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.
\5\ 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, Room 334, Cannon House 
Office Building unless otherwise designated.)

    February 14, 2001. OPEN. 11:00 a.m. Full Committee. 
Meeting. Organizational and Oversight Plan.
    February 28, 2001. OPEN. 10:00 a.m. House and 
Senatej1 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of the 
Veterans of Foreign Wars.
    March 1, 2001. OPEN. 9:30 a.m. House and 
Senatej2 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of The 
Retired Enlisted Association, Gold Star Wives, Fleet Reserve 
Association and Air Force Sergeants Association.
    March 6, 2001. OPEN. 1:00 p.m. Full Committee. Hearing. 
Department of Veterans Affairs Budget Request for Fiscal Year 
2002. (Serial No. 107-1)h1 deg.
    March 7, 2001. OPEN. 12:45 p.m. Full Committee. Meeting. 
Approve the Committee's Views and Estimates of the 
Administration's Fiscal Year 2002 Budget.
    March 8, 2001. OPEN. 9:30 a.m. House and 
Senatej3 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of the 
Blinded Veterans Association, Non Commissioned Officers 
Association, Military Order of the Purple Heart, Jewish War 
Veterans and Paralyzed Veterans of America.
    March 13, 2001. OPEN. 1:30 p.m. Full Committee. Hearing. 
H.R. 811, Veterans' Hospital Emergency Repair Act. (Serial No. 
107-2)h2 deg.
    March 14, 2001. OPEN. 10:00 a.m. House and 
Senatej4 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of the 
Disabled Veterans of America.
    March 15, 2001. OPEN. 9:00 a.m. Subcommittee on Benefits. 
Hearing. H.R. 801, the Veterans' Opportunities Act of 2001, and 
VA's Implementation of Veterans' Transitional Housing 
Assistance. (Serial No. 107-3)h3 deg.
    March 21, 2001. OPEN. 10:00 a.m. Full Committee. Markup. 
H.R. 801 and H.R. 811.m1 deg.
    March 22, 2001. OPEN. 10:00 a.m. House and 
Senatej5 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of the 
American Ex-Prisoners of War, Vietnam Veterans of America, The 
Retired Officers Association, National Association of State 
Directors of Veterans Affairs and AMVETS.
    April 3, 2001. OPEN. 2:00 p.m. Subcommittee on Health. 
Hearing. The State of the VA Health Care System. (Serial 
No.107-4)h4 deg.
    April 4, 2001. OPEN. 10:00 a.m. Subcommittee on Oversight 
and Investigations. Hearing. Hearing III on Information 
Technology. (Serial No. 107-5)h5 deg.
    May 24, 2001. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. H.R. 1291, 21st Century Montgomery GI Bill Enhancement 
Act. (Serial No. 107-6)h6 deg.
    June 7, 2001. OPEN. 11:30 a.m. Subcommittee on Benefits. 
Hearing. H.R. 1291, 21st Century Montgomery GI Bill Enhancement 
Act. (Serial No. 107-6)h7 deg.
    June 20, 2001. OPEN. 2:00 p.m. Subcommittee on Health. 
Hearing. Mental Health, Substance-Use Disorders, and 
Homelessness. (Serial No. 107-7)h8 deg.
    July 10, 2001. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Legislative Hearing on H.R. 862, H.R. 1406, H.R. 1435, 
H.R.1746, H.R. 1929, H.R. 2359 and H.R. 2361. (Serial No. 107-
8)h9 deg.
    July 12, 2001. OPEN. 10:30 a.m. Subcommittee on Benefits. 
Markup. Pending Legislation.m2 deg.
    July 19, 2001. OPEN. 9:00 a.m. Full Committee. Markup. H.R. 
2540.m3 deg.
    September 5, 2001. OPEN. 10:00 a.m. Indianapolis, Indiana. 
Subcommittee on Oversight and Investigations. Hearing. Field 
Hearing on Quality of Care and Management Issues. (Serial No. 
107-9)h10 deg.
    September 6, 2001. OPEN. 2:00 p.m. Subcommittee on Health. 
Hearing. H.R. 2792, the Disabled Veterans Service Dog and 
Health Care Improvement Act of 2001 and Related Legislative 
Matters. (Serial No. 107-10)h11 deg.
    September 20, 2001. OPEN. 10:00 a.m. Subcommittee on 
Oversight and Investigations. Hearing. VA's Medical Care 
Collection Fund. (Serial No. 107-11)h12 deg.
    September 20, 2001. OPEN. 1:30 p.m. Full Committee. 
Hearing. H.R. 2716, the Homeless Veterans Assistance Act of 
2001, and H.R. 936, the Heather French Henry Homeless Veterans 
Assistance Act. (Serial No. 107-12)h13 deg.
    September 24, 2001. OPEN. 9:00 a.m. Veterans Affairs 
Medical Center, Wichita, Kansas. Subcommittee on Health. 
Hearing. Rural Health Care. (Serial No. 107-
13)h14 deg.
    October 4, 2001. OPEN. 2:00 p.m. Subcommittee on Health. 
Markup. H.R. 2716 and H.R. 2792.m4 deg.
    October 10, 2001. OPEN. 10:00 a.m. Full Committee. Markup. 
H.R. 2716 and H.R. 2792.m5 deg.
    October 15, 2001. OPEN. 2:00 p.m. Full Committee. Hearing. 
VA's Ability to Respond to DOD Contingencies and National 
Emergencies. (Serial No. 107-14)h15 deg.
    October 30, 2001. OPEN. 9:00 a.m. Subcommittee on Benefits. 
Hearing. General Accounting Office's report: ``Veterans' 
Employment and Training Service Flexibility and Accountability 
Needed to Improve Service to Veterans.'' (Serial No. 107-
15)h16 deg.
    November 6, 2001. OPEN. 2:00 p.m. Full Committee. Hearing. 
To Receive the Report VA Claims Processing Task Force (Cooper 
Report). (Serial No. 107-16)h17 deg.
    November 14, 2001. OPEN. 10:00 a.m. Subcommittee on 
Oversight and Investigations. Hearing. The Need to Develop 
Education and Training Programs on the Medical Responses to the 
Consequences of Terrorist Activities.h18 deg.
    December 13, 2001. OPEN. 10:00 a.m. Full Committee. 
Hearing. H.R. 3423, to amend Title 38, United States Code, To 
Enact into Law Eligibility of Certain Veterans and Their 
Dependents for Burial in Arlington National 
Cemetery.h19 deg.
    December 13, 2001. OPEN. 2:00 p.m. Full Committee. Markup. 
H.R. 3423.m6 deg.
    January 24, 2002. OPEN. 9:00 a.m. Subcommittee on Health. 
Hearing. To Consider Issues of Operational and Medical 
Readiness in the Active Duty Force and Their Relationships to 
the Health Status of the Veteran Population.h20 deg.
    February 13, 2002. OPEN. 10:00 a.m. Full Committee. 
Hearing. Department of Veterans Affairs Budget Request for 
Fiscal Year 2003.h21 deg.
    February 27, 2002. OPEN. 9:30 a.m. House and 
Senatej6 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The Legislative Priorities of the 
Disabled American Veterans.
    February 27, 2002. OPEN. 12.00 p.m. House and 
Senatej7 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The Legislative Priorities of the 
Veterans of Foreign Wars.
    February 27, 2002. OPEN. 2:00 p.m. Subcommittee on Health. 
Hearing. Hearing to Consider Issues of Operational and Medical 
Readiness in Active Duty Force and Their Relationships to the 
Health Status of the Veteran Population.h22 deg.
    March 7, 2002. OPEN. 10:00 a.m. House and 
Senatej8 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon NOB. The legislative priorities of the 
Paralyzed Veterans of America, Jewish War Veterans, Blinded 
Veterans Association, Non Commissioned Officers Association, 
Military Order of the Purple Heart.
    March 7, 2002. OPEN. 10:00 a.m. Subcommittee on Health and 
Committee on Armed Services, Subcommittee on Military 
Personnel. Joint Hearing. 2118 Rayburn HOB. Health Care Sharing 
by the Department of Defense and the Department of Veterans 
Affairs. (H.A.S.C. 107-39)h23 deg.
    March 13, 2002. OPEN. 10:00 a.m. Subcommittee on Oversight 
and Investigations. Hearing. Hearing on VA's Information 
Technology Initiatives.h24 deg.
    March 14, 2002. OPEN. 10:00 a.m. House and 
Senatej9 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of 
Gold Star Wives, Fleet Reserve Association, the Air Force 
Sergeants Association, and The Retired Enlisted Association.
    March 20, 2002. OPEN. 2:00 p.m. House and 
Senatej10 deg. Veterans' Affairs Committee. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of 
American Ex-Prisoners of War, Vietnam Veterans of America, The 
Retired Officers Association, National Association of State 
Director of Veterans Affairs and AMVETS.
    April 10, 2002. OPEN. 3:00 p.m. Subcommittee on Health. 
Hearing. Hearing on H.R. 3253, National Medical Emergency 
Preparedness Act of 2001; and H.R. 3254, Medical Education for 
National Defense in the 21st Century Act.h25 deg.
    April 11, 2002. OPEN. 9:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on H.R. 1108, Allow Payment of Dependency and 
Indemnity Compensation to Surviving Spouses Who Marry After Age 
55; H.R. 2095, Reservist VA Home Loan Fairness Act of 2001; 
H.R. 2222, Veterans Life Insurance Improvement Act of 2001; and 
H.R. 3731, Increase Funding For State Approving 
Agencies.h26 deg.
    April 18, 2002. OPEN. 9:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on H.R. 4015, Jobs for Veterans 
Act.h27 deg.
    April 24, 2002. OPEN. 3:00 p.m. Subcommittee on Health. 
Hearing. Hearing on the Major Medical Facilities Construction 
Authorization bill.h28 deg.
    April 26, 2002. OPEN. 1:00 p.m. El Paso, Texas. 
Subcommittee on Benefits. Hearing. Field Hearing on VA Claims 
Processing.h29 deg.
    April 30, 2002. OPEN. 10:00 a.m. George Washington 
Ballroom, War Memorial Building, Trenton, New Jersey. Full 
Committee. Hearing. Field Hearing on Recommendations to Revise 
VA System for Healthcare Resource Allocation.h30 deg.
    May 1, 2002. OPEN. 1:30 p.m. Subcommittee on Health. 
Markup. H.R. 3253, H.R. 4514 and H.R. 4608.m7 deg.
    May 2, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Markup. Pending legislation.m8 deg.
    May 9, 2002. OPEN. 10:00 a.m. Full Committee. Markup. 
H.R.4015, H.R. 4085, H.R. 4514, H.R. 3253 and H.R. 
4608.m9 deg.
    May 16, 2002. OPEN. 10:00 a.m. Subcommittee on Health and 
Subcommittee on Oversight and Investigations. Joint Hearing. 
Nonprofit Research Corporations and Educational Foundations 
Affiliated with Specific Veterans Health Administration 
Facilities.h31 deg.
    June 6, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on the Status of the Department of Veterans 
Affairs' Implementation of the VA Claims Processing Task 
Force's Recommendations, and the Potential for a Greater VA/
Veterans Service Organization ``Partnership.''h32 deg.
    June 11, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on H.R. 3173, the Servicemembers and Military 
Families Financial Protection Act of 2001; H.R. 3735, the 
Department of Veterans Affairs Overpayment Administration 
Improvement Act of 2002; H.R. 3771, to Exclude Monetary 
Benefits Paid to Veterans by States and Municipalities from 
consideration as income for purposes of pension benefits; and 
H.R. 4042, the Veterans Home Loan Prepayment Protection Act of 
2002. Two Draft Bill were also considered: the Arlington 
National Cemetery Burial Eligibility Act, and Legislation 
Providing Dependency and Indemnity Compensation to the 
Surviving Spouse of a Veteran with a Totally Disabling Service-
Connected Cold-Weather Injury.h33 deg.
    June 13, 2002. OPEN. 3:00 p.m. Subcommittee on Health. 
Hearing. Hearing on the Health Care of Filipino World War II 
Veterans within the Department of Veterans 
Affairs.h34 deg.
    June 17, 2002. OPEN. 9:00 a.m. Veterans Affairs Medical 
Center, Kansas City, Missouri. Subcommittee on Health. Hearing. 
Field Hearing to Investigate Conditions at Kansas City Veterans 
Medical Center.h35 deg.
    June 26, 2002. OPEN. 9:30 a.m. Subcommittee on Health. 
Hearing. Hearing on H.R. 3645, Veterans Health-Care Items 
Procurement Reform and Improvement Act of 
2002.h36 deg.
    July 9, 2002. OPEN. 1:00 p.m. Subcommittee on Benefits. 
Markup. H.R. 4940 and H.R. 5055.m10 deg.
    July 10, 2002. OPEN. 2:00 p.m. Subcommittee on Health. 
Markup. H.R. 3645.m11 deg.
    July 16, 2002. OPEN. 9:30 a.m. Full Committee. Markup. 
H.R.4940, H.R. 5055 and H.R. 3645, as amended.m12 deg.
    July 16, 2002. OPEN. 11:00 a.m. Full Committee. Hearing. 
Hearing on H.R. 4939, the Veterans Medicare Payment Act of 
2002.h37 deg.
    July 18, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on the Transition Assistance Program and the 
Disabled Transition Assistance Program.h38 deg.
    July 24, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Hearing on H.R. 5111, the Servicemembers' Civil Relief 
Act and H.R. 4017, the Soldiers' and Sailors' Civil Relief 
Equity Act.h39 deg.
    July 25, 2002. OPEN. 10:00 a.m. Subcommittee on Benefits. 
Hearing. Continuation of hearing on H.R. 5111 and 
H.R.4017.h40 deg.
    September 10, 2002. OPEN. 10:00 a.m. House and 
Senatej11 deg. Veterans' Affairs Committees. Joint 
Hearing. Room 345 Cannon HOB. The legislative priorities of The 
American Legion.
    September 12, 2002. OPEN. 1:30 p.m. Full Committee. 
Hearing. Hearing on the Department of Veterans Affairs Homeless 
Veterans Programs.h41 deg.
    September 19, 2002. OPEN. 11:00 a.m. Subcommittee on 
Oversight and Investigations. Hearing. Hearing on the 
Department of Veterans Affairs Medical Research 
Programs.h42 deg.
    September 26, 2002. OPEN. 10:00 a.m. Subcommittee on 
Oversight and Investigations. Hearing. Hearing on the 
Department of Veterans Affairs Information Technology (IT) 
Program.h43 deg.
    October 2, 2002. OPEN. 9:30 a.m. Subcommittee on Health. 
Hearing. Hearing on VA's current Programs for Women 
Veterans.h44 deg.
    October 9, 2002. OPEN. 10:45 a.m. Subcommittee on Health. 
Hearing. Hearing on Project SHAD, regarding Secret Chemical and 
Biological Tests conducted on American 
Servicemembers.45 deg.
    October 16, 2002. OPEN. 1:00 p.m. Full Committee. Hearing. 
Hearing to review the Department of Veterans Affairs Report on 
the National Cemetery System.46 deg.
                           COMMITTEE WEB SITE


                         WWW.VETERANS.HOUSE.GOV

    The Committee on Veterans' Affairs maintains a 
comprehensive web site that provides up-to-date information on 
the activities of the Committee, records of Committee hearings, 
press releases, legislation, official documents and other 
reference materials of interest to veterans. The web site also 
provides links to other web sites pertaining to veterans, 
veterans service organizations, Congress, the Department of 
Veterans Affairs, and other agencies and organizations of 
interest to veterans, or involved in veterans policy issues.
    In the first session of the 107th Congress, the Committee 
reviewed, redesigned and redeveloped the Committee web site in 
order to apply the latest technologies and techniques for the 
benefit of the web site's users. In redesigning the web site, 
the Committee's goal was to create a web site that provided 
complete and timely information; delivered that information in 
a simple and accessible manner; and provided enhanced value for 
our target audience of veterans, Congress, and other public and 
private agencies involved in determining policy on veterans' 
issues.
    Using a professional web site consultant, the Committee 
developed a new design that placed the most recent and 
important information directly on the front page in a 
straightforward and uncluttered format. In addition, the menu 
structure was reorganized in order to provide quicker access to 
the activities and work products of the Committee. The new web 
site also contained new search tools to access the information 
contained within the Committee's web site as well as 
legislative information available from the Library of Congress.
                   OVERSIGHT PLAN FOR 107th CONGRESS

    In accordance with clause 2(d)(1) of Rule X of the House of 
Representatives, the Committee on Veterans' Affairs has adopted 
by resolution of February 14, 2001, its oversight plan for the 
107th Congress.
    This oversight plan is directed at those matters 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 jurisdiction 
at least every ten years. To ensure coordination and 
cooperation with the other House committees having jurisdiction 
over the same or related laws affecting veterans, the Committee 
will consult as necessary with the Committee on Armed Services, 
the Committee on Education and the Workforce, and the Committee 
on Government Reform.
    Oversight will be accomplished through committee and 
subcommittee hearings, field and site visits by Members and 
staff, and meetings and correspondence with interested parties. 
Methods of oversight will include existing and requested 
reports, studies, estimates, investigations and audits by the 
Congressional Research Service, the Congressional Budget 
Office, the General Accounting Office, and the Offices of the 
Inspectors General of the Departments of Veterans Affairs and 
Labor.
    The Committee will seek the views of veterans' service 
organizations, military associations, other interest groups and 
private citizens. The Committee also welcomes communications 
from any individuals and organizations desiring to bring 
matters to its attention. 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.
    While this oversight plan describes the foreseeable areas 
in which the Committee expects to conduct oversight during the 
107th Congress, the Committee and its subcommittees will 
undertake additional oversight activities as the need arises.

Because the Committee generally conducts oversight through its 
subcommittees, the plan is organized by subcommittee.

                         Subcommittee on Health

    Veterans Equitable Resource Allocation (VERA) System. The 
Veterans Health Administration (VHA) adopted this system of 
allocating funds to its field health activities in April 1997, 
but this year the Under Secretary for Health approved special 
dispensations of more than $220 million from a national reserve 
for contingencies to restore some under-funded networks. The 
Subcommittee will review the operation and effectiveness of 
VERA.

    Maintaining Capacity of Programs for Special Disabilities 
and Long-Term Care. Public Law 104-262, the Veterans' Health 
Care Eligibility Reform Act of 1996, requires VA to maintain 
specialized capacities to care for veterans. By law, VA 
provides a report to Congress each year to indicate the stasis 
of these capacities. The next report, in April, adds capacity 
for VA's long-term care programs. The Subcommittee intends to 
carefully monitor and evaluate VA's capacities to meet high-
priority, specialized needs of veterans.

    Hepatitis C (HCV) Programs. The VA health care system 
reports that it is currently treating 70,000 veterans who have 
tested positive for HCV. The Subcommittee will examine VA's 
response to the growing incidence of HCV infection among the 
population treated by VA and the consequential rise in demand 
for treatment. We will assess VA's research approach to 
exploring the etiology of HCV; VA's use of clinical therapies; 
and methods by which VA allocates and monitors HCV funding.

    Mental Health and Substance-Use Disorder Programs. Reported 
reductions in capacity in VA programs to care for the most 
seriously mentally ill veterans, especially those with 
psychoses and with substance-use disorders, are of particular 
concern. The Subcommittee will explore the state of VA's mental 
health programs and the effectiveness of chronic mental illness 
treatment programs in VA's institutional, contract, community-
based, case-management and aftercare programs.

    Rural Health Care Matters. The Committee is concerned about 
the health of veterans who live in rural and remote regions, 
particularly whether they have adequate access to VA health 
care and services. The emergence of VA telemedicine holds 
promise to extend VA services beyond major VA medical centers. 
The Subcommittee will examine the role of telemedicine in VA's 
efforts in rural care. Also, VA has promoted improved access 
through its community-based clinics, primary care outlets now 
numbering in the hundreds. The Subcommittee will explore these 
clinics' geographic distribution to determine if VA has 
adequately responded to rural veterans' needs, including 
exploration of the availability of mental health services in 
VA's outreach efforts in rural areas.

    Women Veterans' Programs. An Advisory Committee on Women 
Veterans was established in 1983 under Public Law 98-160 to 
assess the health care, outreach, and benefits needs of women 
and make recommendations to the Secretary of Veterans Affairs 
and Congress. VA medical centers have been mandated to 
designate women veterans' coordinators, in addition to 
providing specialized services and outreach. A recent report to 
the Under Secretary for Health identified the lack of privacy 
and gender-specific accommodations for women in VA facilities. 
The Subcommittee will continue to review VA policies and 
programs for women veterans.

    Follow-up on Millennium Act. Public Law 106-117, the 
Veterans Millennium Health Care and Benefits Act, was the most 
significant health care legislation Congress has enacted for 
veterans in a number of years. The Subcommittee will pay close 
attention to the steps VA must take to comply fully with its 
mandates. The Subcommittee is especially concerned about the 
implementation of new copayment policy and its impact on poor 
and disabled veterans. Therefore, the Subcommittee will review 
VA's copayment plan.

    Follow-up on Recent Personnel Legislation. Congress passed 
significant changes in VA practitioner pay systems and methods 
during the 106th Congress in Public Law 106-419, the Veterans 
Health Care Personnel and Benefits Act of 2000. The 
Subcommittee will examine VA's implementation of these changes.

    Scarce Medical Specialty Contracting. The Subcommittee is 
concerned about the services of various medical specialties 
obtained through government contracts. Some of these contracts 
are very expensive. The Subcommittee will explore VA's options 
in obtaining such services in a cost-effective manner, 
including consideration of title 38 employment authority rather 
than contract arrangements.

    VA and DOD Health Resources Sharing. Authorized under 
Public Law 97-174, the VA-DOD health resources sharing program 
has been in existence for nearly twenty years. Yet, oversight 
by the Subcommittees on Health and Oversight and Investigations 
has revealed that barriers to sharing still exist in the 
organizational cultures of VA and DOD. The GAO reported to the 
Committee that VA and DOD efforts to consolidate procurement of 
drugs and biologicals could save the federal government 
hundreds of millions of dollars. Also, the Congressional 
Commission on Servicemembers and Veterans Transition Assistance 
made a number of recommendations in 1999 for increased sharing 
in these federal health programs. The Subcommittee intends to 
continue its oversight of VA-DOD resource sharing to encourage 
more effective use of funding for veterans and military health 
care.

    VA Nonprofit Research Corporations. Public Law 100-322 
authorized the establishment of nonprofit research corporations 
at VA medical centers to advance their research mission. VA is 
required to report to Congress on an annual basis the 
activities of these corporations. The Subcommittees on Health 
and on Oversight and Investigations will conduct joint 
oversight of them to ensure that they are effective and that 
their operations are consistent with Congressional intent.

    Status of VA Medical Research. VA medical research in 
collaborative affiliations with the Nation's schools of 
medicine has been remarkably successful in curing human disease 
and advancing biomedicine. The Subcommittees on Health and on 
Oversight and Investigations have monitored VA research for a 
number of years and have recently observed some lapses in 
human-subject protections, inadequate management systems and 
other problems. VA has made a commitment to improve its 
performance. The Subcommittee will continue to review the 
progress in carrying out this major mission of the Department.

    Adequacy of CHAMPVA Benefits. In Public Law 106-398, the 
Floyd Spence Armed Forces Reauthorization Act of 2000, Congress 
enacted a sweeping reform of military health care programs. 
However, the Civilian Health and Medical Program-Veterans 
Affairs (CHAMPVA) continues to offer health care benefits to 
eligible family members of veterans under the previous CHAMPUS/
TRICARE criteria, with significant limitations and considerable 
cost-sharing. The Subcommittee will consider the adequacy of 
this benefit for CHAMPVA beneficiaries compared to the 
restructured military health care programs.

    Infrastructure Maintenance in VA Health Care. The VA health 
care system capital asset planning process, known as Capital 
Assets Restructuring for Enhanced Services (CARES), will 
consume several years of effort. In the meantime, the 
Subcommittee is concerned about the medical facilities that 
CARES may not address. Many need maintenance, repair and 
upgrading. The Subcommittee will review these needs.

    Waiting Times for Outpatient Care. The Committee's chairman 
and ranking member during the 106th Congress requested a series 
of reports from the General Accounting Office on the amount of 
time veterans must wait until they receive an appointment for 
routine or specialty care in VA outpatient clinics. GAO has 
questioned the value of some of the initiatives for which VA 
requested funding in fiscal year 2001 and also raised concerns 
about data used to assess waiting times in VA. The Subcommittee 
will continue to evaluate factors that exacerbate waiting times 
and the efficacy of strategies underway to reduce waiting times 
in VA.

                        Subcommittee on Benefits

    Accuracy and Timeliness of Claims Decisions. VA provides 
over $20 billion a year in disability compensation and pension 
benefits to more than 2.5 million veterans and survivors. 
Public Law 106-117 required the VA to implement a quality 
assurance program for programs administered by the Veterans 
Benefits Administration. Reports by the General Accounting 
Office and VA's Inspector General have analyzed longstanding 
problems with the timeliness of claims adjudication. A hearing 
will examine issues of quality and timeliness in the claims 
adjudication process, to include veterans' appeals of VA claims 
decisions.

    Claims Adjudication Commission Recommendations. The 1996 
report of the Veterans' Claims Adjudication Commission 
recommended that VA and veterans service organizations 
establish a formal claims processing partnership group, develop 
case management practices and consider a lump sum payment of 
these benefits. A hearing will examine VA's progress in 
partnership initiatives and case management, and explore the 
issue of lump sum payments of disability compensation benefits.

    Long-Term Issues in Claims Processing. The Veterans 
Benefits Administration has developed a number of initiatives 
designed to improve the processing of claims. These include 
computerized training programs, rating board adjudication 
revisions, telephone improvements and revised notices. In 
addition, the Veterans Claims Assistance Act, Public Law 106-
475, mandates a number of changes in claims processing. A 
hearing will review these issues.

    Persian Gulf War Veterans. The Institute of Medicine of the 
National Academy of Sciences and the RAND National Defense 
Research Institute have released reports concerning the health 
of Gulf War veterans. The Subcommittee will conduct a joint 
hearing with the Subcommittee on Health to review these and 
other research findings.

    Veterans Entrepreneurship Opportunities. Veterans should be 
accorded a full opportunity to participate in the economic 
system that their service sustains. In conjunction with the 
House Small Business Committee, the Subcommittee on Benefits 
will conduct its second oversight hearing on the Small Business 
Administration and federal government-wide implementation of 
the Public Law 106-50, the Veterans Entrepreneurship and Small 
Business Development Act of 1999. A hearing will focus efforts 
on the business development and technical, financial, and 
procurement assistance aspects of the law.

    Military Occupational Specialties Requiring Civilian 
Licensing, Certification or Apprenticeship. The civilian 
employment sector increasingly relies on various forms of 
credentialing and licensing to regulate entry into an 
occupation or profession. The Subcommittee on Benefits held two 
hearings on this issue in the 106th Congress. A hearing will 
continue to examine the role of the Departments of Veterans 
Affairs, Labor, and Defense in helping separating 
servicemembers and veterans meet credentialing requirements.

    National Personnel Records Center (NPRC). NPRC, located in 
St. Louis, MO, is the records center for all military service 
documents. Understaffing and minimal technological equipment 
appear to contribute to a growing backlog of requests for 
information, thus delaying the processing of veterans' claims. 
Following an onsite visit by VA Committee Members and staff, a 
hearing will address what efforts are needed to improve the 
processing of requests for medical and separation information.

    National Cemetery Administration (NCA). Public Law 106-117 
required VA to determine those geographic areas most in need of 
a new national cemetery. Following receipt by Congress of the 
report, a hearing will examine the areas NCA deems most in need 
of a national cemetery.

    Burial Benefits. Public Law 106-117 required VA to enter 
into a contract to independently examine the adequacy and 
effectiveness of the current burial benefits administered by 
VA. Currently, there is no provision in title 38, United States 
Code, requiring the Secretary of Veterans Affairs to conduct 
periodic assessments of the burial benefits program. A hearing 
to receive the report and review the recommendations will 
inform the Committee how the program could better serve the 
burial needs of veterans and their families.

                       Subcommittee on Oversight

    Inappropriate Benefits Payments. VA Office of Inspector 
General (OIG) audits indicate that the Veterans Benefits 
Administration (VBA) should develop and implement effective 
methods to identify inappropriate compensation and pension 
payments. Additionally, coordination between VA, the Defense 
Manpower Data Center, and local National Guard and Reserve 
units continues to be problematical in achieving accurate and 
timely payments under the Selected Reserve provisions of the 
Montgomery GI Bill. The Subcommittee will review VBA's efforts 
to implement procedures to timely identify deceased 
beneficiaries and terminate their compensation and pension 
benefits in order to reduce overpayments. Further, the 
Subcommittee will examine coordination issues associated with 
selected reserve educational assistance payments under the 
MGIB.

    VBA Internal Fraud Controls. VA OIG criminal investigations 
have exposed several instances where VBA employees established 
fraudulent disability compensation claims and stole more than a 
million dollars of government funds. The OIG is currently 
investigating more than a hundred similar fraud cases within 
VBA. As a part of continuing oversight, the Subcommittee has 
requested VBA study internal control and security measures used 
by private sector companies. The Subcommittee will monitor 
VBA's efforts to improve internal controls and security.

    Disability Claims Processing. VA has outlined what it is 
doing to improve processing of veterans disability claims, but 
GAO has stated concerns that VA's existing plans may not be 
adequate. The Subcommittee has requested that VBA gather 
information from private sector companies regarding information 
technology and best practices to streamline processing of 
claims. In conjunction with the Subcommittee on Benefits, the 
Subcommittee will continue review of VBA implementation of 
plans to improve timeliness and accuracy of veterans claims 
processing.

    Veterans Employment and Training Service (VETS). The 
Subcommittee will continue its oversight of this Department of 
Labor program. In prior testimony, GAO stated that VETS lacks a 
clear vision for the future and has no strategy to conform its 
operations to the Workforce Investment Act. GAO is performing a 
detailed study of VETS and will submit a report to Congress in 
September 2001. This report will be the subject of an oversight 
hearing. The Subcommittee will determine what progress VETS has 
made in improving its service to veterans.

    Veterans Preference. Veterans who are disabled or who 
served during certain periods have preference in federal jobs. 
The U.S. Government should be a model employer of veterans. The 
Subcommittee will examine the federal observance and 
enforcement of veterans preference.

    Benefits Delivery at Discharge. To improve the transition 
of servicemembers to civilian life, VA has stepped up its 
outreach and services to active duty servicemembers before they 
are discharged. Subcommittee oversight of benefits delivery at 
discharge will include the extent to which DOD provides VA 
timely notice of medical discharges. The Subcommittee will also 
examine the timeliness of entry by veterans into VA's 
vocational rehabilitation program and the VA's coordination 
with VETS for job placement.

    Faith-Based and Other Nonprofit Programs for Homeless 
Veterans. The Subcommittee will continue to examine the success 
rates of faith-based and other nonprofit homeless programs, as 
well as the development of performance measures for homeless 
veterans programs. The Subcommittee will further examine 
whether such faith-based and other nonprofit programs are 
awarded federal grants on an equitable basis.

    Federal Employees' Compensation Program in VA. The 
Subcommittee will follow-up its previous oversight hearing 
during the 106th Congress. The Subcommittee will examine the 
manner in which workers' compensation claims of VA employees 
are processed as compared with other public and private sector 
organizations.

    Information Technology. VA's information technology 
programs will spend over $1.4 billion in fiscal year 2001. The 
Subcommittee will continue to review the role of VA's Chief 
Information Officer and VA's Capital Investment Board in the 
procurement and management of its IT programs. The Subcommittee 
will also review VA's progress in IT programs, including: 
developing a VA-wide data architecture, improving computer 
security, utilizing VHA's Decision Support System, processing 
claims with the VETSNET project, and developing the government 
computerized patient record.

    Patient Safety. The VA health care system has established 
an adverse medical event incident reporting system in response 
to the Institute of Medicine's report last year on medical 
errors and continuing reports of serious lapses in the delivery 
of quality health care in the VA. The Subcommittee will 
continue to monitor and review VA's progress in identifying, 
reporting and correcting adverse medical events.

    Capital Asset Realignment for Enhanced Services (CARES). 
The Subcommittee in conjunction with the Subcommittee on Health 
will continue to review VA's long-term strategy and current 
efforts to modernize the VA health care delivery system's vast 
infrastructure. The Subcommittees will examine opportunities 
for DOD and VA to participate in joint delivery of health care 
to the men and women who serve or have served in uniform and 
their family members. The Subcommittee will also examine the 
VA's plans for addressing the future use of many VA buildings 
that are functionally obsolete, but have historic significance.

    Civilian Health and Medical Programs of the Department of 
Veterans Affairs (CHAMPVA). In fiscal year 2000, there were 
approximately 101,500 beneficiaries of the CHAMPVA program who 
generated over 1.6 million medical claims. Annual program 
expenditures were in excess of $13.4 million and claims 
totaling $122.9 million. In conjunction with the Subcommittee 
on Health, the Subcommittee will review of effectiveness and 
current requirements of this program.

    Medical Care Collections Fund. In fiscal year 2000, VHA 
carried forward $1.3 billion in the Medical Care Collections 
Fund, two-year obligations and equipment funds. Yet individual 
facilities and several of its health care networks experienced 
funding shortfalls. The Subcommittee will review VHA's 
utilization of health care funding, including over multiple 
fiscal years.

    VA Medical Research. Subcommittee hearings in the 106th 
Congress revealed violations of federally established 
procedures for the protection of human subjects in VA medical 
research. The Subcommittee will review how VA has corrected 
these violations, particularly regarding informed consent and 
Institutional Review Board procedures.

    VA Nonprofit Medical Research Corporations. Funds not 
appropriated to the Department of Veterans Affairs may be 
received and administered by a nonprofit corporation at any VA 
medical center. The Subcommittee will review the accountability 
of funds expended by such corporations on approved VA research.
 REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS' 
AFFAIRS, SUBMITTED PURSUANT TO SECTION 301 OF THE CONGRESSIONAL BUDGET 
  ACT OF 1974, ON THE BUDGET PROPOSED FOR FISCAL YEAR 2002, MARCH 13, 
                                  2001


                Background and Committee Recommendations

    In a number of areas summarized below, the Members of the 
Committee are convinced more must be done and can be done in a 
responsible, accountable manner to reaffirm our Nation's 
commitment to veterans. The Committee strongly recommends the 
addition of funding needed to improve areas affecting the 
delivery of services, particularly to service-connected and 
low-income veterans.

                     Department of Veterans Affairs


                     VETERANS HEALTH ADMINISTRATION

                              Medical Care

    Inflation.--Health care inflation in the United States was 
reported to be 4.3 percent in 2000, and some experts predict 
higher rates this year. This is about 1 percent above the 
general inflation rate in the U.S. economy. Inflation poses 
significant challenges to the Department of Veterans Affairs. 
One reflection of this, for example, is that the increase in 
insurance and managed care premiums paid by enrollees of the 
Federal Employee Health Benefits Program averaged nearly 10 
percent from 2000 to 2001. This ``corporate'' inflation alone 
represents almost $40 million in outlays. VA health care 
employees deserve a significant pay raise in 2002. The 
comparability rate increase for all federal employees is 
expected to be 3.5 percent. If so, VA's contribution to 
employees' pay raises would be about $425 million. Also, energy 
costs are expected to significantly inflate costs in energy-
intensive industries and businesses this year. VA Medical 
Centers, employing 180,000 staff and caring for 3.9 million 
veterans in over 600 sites, are significant consumers of 
federally procured energy in gas, oil, electricity, steam, 
nuclear materials, etc. Unquestionably these costs will rise, 
but will not produce higher productivity or efficiency in VA's 
``business'' of providing quality care to the Nation's 
veterans.
    A simple inflation rate of 4.3 percent in VA health care 
would mean, conservatively, that about $900 million of any 
increase in funding VA health care from fiscal year 2000 would 
be consumed simply by the general erosion of purchasing power 
it will experience from a variety of external forces. The 
Committee believes that the budget approved by Congress must 
overcome inflationary pressures beyond the inflation rate 
itself, in order to assure that veterans' earned rights to VA 
health care will not be undermined by external factors over 
which the VA Secretary has virtually no control. Therefore, the 
Committee recommends for the VA health care account $1 billion 
over the fiscal year 2001 appropriated level for uncontrollable 
cost increases.

    Millennium Act Implementation.--In 1999, Congress enacted 
the Veterans Millennium Health and Benefits Act (Public Law 
106-117). This legislation authorized the Secretary of Veterans 
Affairs to reimburse veterans costs of non-VA emergency care 
provided they are enrolled in the Veterans Health 
Administration and lack health insurance. When fully 
implemented, VA estimates this provision will cost between 
$400-$500 million annually. Since the law's effective date (May 
2000), VA Headquarters has collected claims for reimbursement 
from its medical centers totaling $21 million. As more veterans 
learn they may be eligible for this new benefit, the Committee 
expects the number of claims to grow.
    A number of additional provisions in the Millennium Act 
still require implementation. VA and the Administration are 
still developing and reviewing regulations that will clarify 
the broad guidance Headquarters has already provided to medical 
centers about implementation of the bill. Until regulations are 
completed, however, the Committee expects that full 
implementation will lag. Assuming that regulations become 
available early in fiscal year 2002, the Committee expects VA 
will begin a gradual implementation of its non-VA emergency 
care reimbursement program as well as other major provisions of 
the bill. The Committee recommends that an additional $68 
million be provided for Millennium Act implementation in fiscal 
year 2002.

    Mental Health Programs for Disabled Veterans.--Over the 
past five years, the Department has conducted a managed shift 
of resources and programs away from institutional mental health 
care. The Committee supported this reallocation (see House 
Committee Print No. 5, 106th Congress, First Session, March 16, 
1999). However, it was understood at the time that sufficient 
resources would be preserved to provide an appropriate level of 
care for VA's chronically mentally ill patients. VA designed 
new community-based intensive case management programs. In 
fact, these plans only partially materialized while VA shifted 
critical resources away from mental health.
    The VA Advisory Committee on Seriously Mentally Ill 
Veterans estimates the diversion of funds may be as much as 
$600 million. VA dramatically expanded its primary care 
clinics, referred to as ``Community Based Outpatient Clinics'' 
(CBOCs). While the Committee certainly supports the primary 
care clinics, VA also should at least partially restore lost 
support for these mentally ill veterans, an especially 
vulnerable group. The budget requested could not do this. To 
release these veterans to the community and then provide 
occasional clinic visits in a primary care setting is not 
optimal care for the severely mentally ill. The VA Program 
Evaluation Resource Center maintains a registry of veterans 
suffering with psychosis and bipolar disorder that contains 
200,000 individuals. These veterans cannot be sustained 
medically without intensive attention, and because of the 
nature of their illnesses, most cannot speak for themselves. To 
this end, the Committee recommends a number of adjustments to 
redress their unmet needs in the following areas:

        1. Mental health intensive case management teams

          The Committee understands that VA presently operates 
        about 50 intensive case management teams assigned to 
        intensive aftercare of VA patients with serious and 
        chronic mental illness. Some of these teams that 
        already had a minimal staffing complement have recently 
        suffered reductions in staff. A fully functioning 
        team's annual average direct cost (primarily in 
        staffing) is approximately $400,000. If VA were to 
        deploy 30 additional teams during the 2002 budget year 
        and restore resources to those existing teams that have 
        been reduced, these 80 fully functioning Mental Health 
        Intensive Care Management teams could, for an estimated 
        cost of $40 million, provide vulnerable veterans better 
        follow-up care and improved coordination of community 
        based services, including foster care, sponsorship, 
        lifestyle and medication monitoring, employment and 
        training options; and a higher quality of life.

        2. Mental health in community primary care

          The Department operates approximately 350 community 
        based outpatient clinics, distributed nationwide. When 
        VA made the decision to provide better access to 
        community-based primary care, it did not sufficiently 
        provide for mental health needs in these clinics. 
        Approximately 40 percent of these facilities offer 
        dedicated mental health services but the remaining 200 
        sites do not. The addition of qualified mental health 
        staff to support effective professional services in 
        these settings, given the depletion of mental health 
        resources in VA medical centers, is a way to ensure 
        that mental health care becomes more accessible and 
        convenient. A clinic with an average workload may 
        require a part-time mental health practitioner, a full-
        time social worker, and a part-time clerk. Adding a 
        small cadre of mental health professionals in each of 
        the approximately 200 locations, according to their 
        need, would provide a more complete service in VA 
        community-based clinics. A $40 million enhancement to 
        mental health capacity would also give VA better 
        options to treat/provide care to not only the de-
        institutionalized chronically mentally ill, but also 
        veterans with acute mental health needs who may not 
        otherwise receive adequate care.

        3. Substance-use disorder programs

          VA currently cares for 130,000 veterans with this 
        troubling and life-long disorder. Over the past decade, 
        VA shifted its drug treatment programs from residential 
        care to ambulatory-based programs. VA has acknowledged 
        in its report required by Public Law 104-262 on special 
        program capacities that capacity in the substance-use 
        disorder programs is declining. The Committee believes 
        these programs should be restored, along with 
        enhancements in VA's opioid-substitution programs using 
        Methadone and newer substitutes. These activities are 
        insufficiently available in VA facilities and, in some 
        metropolitan areas, do not provide enough care to meet 
        the veteran population's needs. The Committee believes 
        that the reduction in resources combined with the 
        inadequate availability of these clinics could be 
        addressed with $40 million in additional funds.

        4. Increased psycho-pharmaceutical costs

          In the past 10 years, a number of new 
        antidepressants, anti-psychotics and other 
        pharmacological treatments in mental health have 
        emerged that cause inflationary spikes in VA's overall 
        pharmaceutical budget. Currently, 17 percent of VA's 
        total pharmacy budget is spent on psychotropic drugs; 
        nevertheless, the Serious Mental Illness Treatment, 
        Research and Evaluation Center has reported widespread 
        variability in the use of some of the most effective 
        drug therapies, particularly atypical drugs such as 
        Clozapine for the management of schizophrenia. The 
        Committee believes that additional funding of $20 
        million should be dedicated to these agents to ensure 
        that VA makes available to veterans the latest 
        therapeutic agents.

        5. Evaluation in mental health programs

          The Department evaluates and monitors its mental 
        health programs in three small analytic centers, the 
        Northeast Program Evaluation Center, located at the VA 
        Medical Center, West Haven, Connecticut, the Program 
        Evaluation Resource Center at the Palo Alto VA Medical 
        Center in Palo Alto, California, and the Serious Mental 
        Illness Treatment Research and Evaluation Center at the 
        VA Medical Center in Ann Arbor, Michigan. Each of these 
        research-oriented activities has aided the Department, 
        the VA Advisory Committee on Seriously Mentally Ill 
        Veterans, mental health advocates and the Congress in 
        assessing the effectiveness of VA's mental health, 
        substance-use disorder and homelessness programs. The 
        Committee recommends a small but crucial additional 
        allowance of $1 million be provided to these centers 
        for continuation of their vital work in evaluating and 
        reporting on VA's mental health mission.

                VA Long-Term Care and Diseases of Aging

    Demand for Services.--The Veterans Millennium Health Care 
and Benefits Act of 1999 clarified and expanded VA's mission to 
maintain specialized capacity to care for aging veterans. The 
Committee in crafting the Millennium legislation challenged VA 
to reposition itself to meet the needs of the World War II 
veteran generation, now averaging 80 years of age. Many of 
these veterans suffer from a multiplicity of age-related 
problems and diseases. Of particular note and concern to the 
Committee are Alzheimer's Disease, other dementias and other 
brain disorders. About 600,000 veterans are estimated to be 
suffering from brain diseases, most of who live at home with 
family caregivers. Indeed the Department is attempting to 
address some of their specialized needs, but the Committee 
noted that the shift to primary care has had an erosive effect 
on VA's distinguished mental health programs. This decline also 
detracts from VA's ability to mount and sustain programs to 
deal with veterans' problems associated with advanced age. 
While VA reports it is operating some small-scale delivery 
models and pilot programs to meet these challenges in geriatric 
care, the Committee believes VA's efforts to date only begin to 
address the potential demand for services. Specific 
recommendations are as follows:

        1. Dementia special care (inpatient) units

          At the Bedford, Massachusetts VA Medical Center, VA 
        operates a Geriatric Research, Education and Clinical 
        Center (GRECC), one of 21 such centers of excellence in 
        geriatrics. The Bedford Center has developed an 
        innovative approach to caring for veterans with 
        Alzheimer's Disease and other dementias that should be 
        exported to other VA medical centers. The Committee 
        recommends $55 million for advancing the concept 
        developed at the Bedford center to all VA networks to 
        place VA health care in the forefront of treatment for 
        persons with Alzheimer's Disease and other brain 
        disorders. Also, placing one such unit in each of VA's 
        22 networks of care provides a more equitable 
        distribution of public resources of a specialized 
        program that all veterans should be afforded.

        2. Dementia and end-of-life care in home-based and VA 
        nursing home care

          VA sponsors home-based primary care programs in about 
        75 sites. Also the Department operates 131 VA nursing 
        home care units. The Committee believes many of these 
        programs are unable to fully address needs for dementia 
        or end-of-life care because of resource constraints. 
        Whether under care at home or in VA's nursing homes, 
        veterans with Alzheimer's Disease and other forms of 
        dementia require specialized services. VA has 
        identified an approach that adds a focused complement 
        of these services to its HBPC/NHCU programs. The 
        Committee supports VA's ``rapid cycle improvement'' in 
        this area and encourages its implementation. An initial 
        increment toward this goal can be attained with a 
        modest funding increase for HBPC programs of $17 
        million ($3.5 million in HBPC; $13.5 million in NHCU).

        3. Psycho-geriatric evaluation and treatment

          Nine VA medical centers currently operate ``Unified 
        Psycho-geriatric Biopsychosocial Evaluation and 
        Treatment'' or ``UPBEAT'' programs. These programs test 
        the hypothesis that intensive psychosocial intervention 
        in cases of hospitalized elderly veterans with 
        depression, anxiety or substance-use disorders can 
        reduce the number of days veterans require 
        hospitalization. The model is proving successful, and 
        VA is poised to expand the application with additional 
        resources. Operational UPBEAT programs are cost 
        effective and result in better care for veterans. 
        Adding 15 additional sites in VA medical centers will 
        give more veterans access to these programs at 
        reasonable cost of $6 million.

        4. Dementia caregiver respite program

          The majority of veterans with Alzheimer's Disease and 
        other dementias receive their care at home from family 
        caregivers. Given their responsibility for providing 
        around-the-clock care, these caregivers need periodic 
        relief from their care duties. VA has a small, ongoing 
        program of respite care. A substantial expansion is 
        essential, but is not addressed in current agency 
        plans. The Committee proposes an expansion of VA's 
        caregiver training program accompanied by provision of 
        a period of respite care to allow veterans' caregivers 
        relief from their duties for 2-4 weeks each year. This 
        expansion would allow VA to provide such care in 12 
        additional locations, at a total estimated cost of $10 
        million.

    Unacceptable Waiting Times for Outpatient Care.--The 
extraordinary growth of demand for care is resulting in 
thousands of veterans being denied access to care in VA 
facilities. Once VA accepts veterans for enrollment, it must 
ensure that it has adequate resources to provide reasonable 
access to the full range of services that it has committed to 
offer enrolled veterans. VA has described access in terms of 
geographic proximity, reasonable patient costs, and the ability 
to meet a reasonable (community) timeliness standard. While VA 
has accomplished its goal for geographic access and veterans' 
copayments are reasonable, its progress in accomplishing, and 
even its ability to assess timeliness is problematic. (See 
Veterans Health Care: VA Needs Better Data on Extent and Causes 
of Waiting Times, May 20, 2000, GAO/HEHS-00-90.)
    At the VA Chicago Medical Center, veterans wait up to 214 
days to be seen in the gastroenterology clinic. This delay is 
attributed to higher demand from veterans suffering from 
hepatitis C. In New Jersey's Brick and Ft. Dix VA community-
based clinics, veterans are required to wait to be seen by a VA 
practitioner from 6 to 11 months for an initial, non-urgent 
appointment. The Department created high expectations within 
the veteran population, many members of whom had never used VA 
health care before, as it expanded services away from VA 
medical centers to communities for improved access and 
convenience nearer veterans' homes. Veterans had a reasonable 
expectation to be able to use these services routinely once 
these clinics were fully functioning, as well as to begin, or 
continue, using VA medical centers when appropriate. As of 
today, however, their access to care in many cases is being 
rationed by strict resource limitations.
    The Committee believes that Congress should take the lead 
and respond now to these veterans' needs. Therefore, the VA 
Committee recommends additional funds in the amount of $75 
million be provided in the fiscal year 2002 budget to 
supplement VA's allocation of resources to both VA medical 
centers and their community-based outpatient clinics. The new 
funds will support the employment of 1,000-1,500 new Veterans 
Health Administration staff, to increase practitioner presence 
in VA's 350 community-based clinics and supplement ambulatory 
care staff in VA centers. The Committee believes this is a 
modest method to address a very challenging situation in VA 
health care.

    Rising Pharmaceutical Costs.--The VA expects to expend 
about $2.7 billion this year on pharmaceuticals. VA's budget 
for prescription drugs has doubled over the past 5 years and, 
at the current rate of growth, will exceed $4 billion in only 
3-4 more years. Higher VA drug costs at the present time are 
not due to inflation; pharmaceutical cost increases as an 
element in overall health care inflation are abating. VA's 
higher costs stem from utilization and the advent of new drugs. 
As of December 31, 2000, the Veterans Health Administration 
reports that 4.7 million veterans are enrolled in VA health 
care, and nearly 3.9 million are expected to be active 
consumers of VA health care services this year. If the higher 
enrollment is overlaid on the phenomenon of veterans' aging, 
about which so much has already been reported, along with new 
pharmaceutical therapies being made available, it becomes clear 
that VA's success in reaching more veterans to meet more of 
their health care needs is going to produce extraordinary 
pressure on VA's pharmaceutical budget. The Committee is 
particularly concerned about veterans' access to the apparently 
uneven availability of drug treatment for Hepatitis C and 
psychotropic agents (see below). The Committee believes that, 
beyond funding VA adequately to cover its inflationary 
challenges so that VA will be able to meet the growing disease 
burden among the veterans treated in VA facilities, Congress 
should provide supplemental funding to assist VA providers in 
ensuring that adequate pharmaceutical resources are made 
available to support their professional prescribing. Therefore, 
the Committee recommends an additional $100 million above 
normal inflation for fiscal year 2002 to ensure that VA 
resources are sufficient to meet these pharmaceutical demands.

      Specialized Programs-Restoration of Spinal Cord Injury Care

    The Veterans Health Care Eligibility Reform Act of 1996 
requires VA to maintain the capacity of specialized programs 
for certain disabled veterans, including those with spinal cord 
injury or dysfunction. VA has identified beds, full-time 
employees, dollars, and patients treated as measures that best 
depict VA's maintenance of capacity for this program. VA now 
acknowledges a 65 percent reduction in its specialized bed 
capacity for veterans with spinal cord injury or dysfunction. 
The Committee is very concerned about this unacceptable 
reduction in services for one of VA's most physically 
challenged patient populations.
    To restore and enhance care in this area, VA developed a 
plan in concert with Paralyzed Veterans of America. VA's Under 
Secretary for Health issued a formal directive to establish a 
minimal level of staffing and staffed beds at each of 23 
medical centers with a spinal cord injury center and also 
issued a memorandum to managers to identify the resources 
necessary to restore staff to a minimum level of capacity. VA 
agrees that there are more than 200 staff vacancies in its SCI 
program. Most of these vacant positions are nurses, but 
therapists, psychologists and physicians are also in short 
supply. While the plan fulfills needs for long-term care, the 
Committee's proposal only restores acute care capacity. 
Paralyzed Veterans of America estimates restoring only acute 
care capacity will require $23 million. The Committee supports 
$23 million to fund this restoration of capacity.

                      Homelessness among Veterans

    The Committee remains dedicated to addressing homelessness 
in the veteran population. The Committee is encouraged by 
recent data showing that, since 1987, there seems to be a 
perceptible, if small, reduction in homelessness among 
veterans, estimated to be 8.5 percent. Nevertheless, according 
to VA's most recent estimates, about a quarter-million veterans 
are still homeless in this country at some point each year.
    Over the past 15 years, the Committee has developed 
legislation that authorized, expanded and extended VA's 
programs addressing homelessness. Among these are in-house 
homeless domiciliary expansion, a grant and per diem program 
for community providers, and the so-called ``Health Care for 
Homeless Vets'' initiative. VA also funds several smaller 
programs in mental health and coordinates with other Federal 
agencies (principally the Departments of Housing and Urban 
Development, and Labor) to address veterans' homelessness. The 
Committee recommends $30 million additional funding for these 
programs, including funds to increase the grant and per diem 
program and enhance existing and add new VA Domiciliary Care 
for Homeless Veterans programs during fiscal year 2002.

                    Medical and Prosthetics Research

    The Department carries out an extensive array of research 
as a complement to its health-professions affiliations. While 
these programs are specifically targeted to the needs of 
veterans, VA research discoveries help define new medical 
standards of care that benefit all Americans. Among the major 
emphases of the program are research into aging, chronic 
diseases, mental illnesses, substance-use disorders, sensory 
losses, and trauma-related illnesses. VA's research programs 
are internationally recognized and have made important 
contributions in virtually every area of medicine and health 
for veterans and the general public. These contributions to 
medical knowledge have won VA scientists many prestigious 
awards, including six Lasker Awards and three Nobel Prizes in 
Medicine.
    Advances by VA researchers in the past two years include 
findings from several major clinical trials of significant 
potential value and relevance. These include research in 
cancer, heart disease, anemia and kidney failure. Important new 
VA studies are underway now in post-traumatic stress disorder 
in women veterans; amyotrophic lateral sclerosis (``Lou 
Gehrig's Disease''), fatigue, muscle and joint pain, and memory 
and cognitive problems among Persian Gulf War veterans; and the 
development of a vaccine for shingles.
    The Committee supports an increase in the research account 
of $30 million. We believe this additional funding is needed in 
VA's research programs to keep pace with external funding 
developments in the U.S. biomedical research field. We note the 
President's State of the Union address confirmed the national 
goal to double the research funding of the National Institutes 
of Health. Additional funding of $30 million in VA biomedical 
research in fiscal year 2002 would cover inflation and permit a 
small program expansion.

      Medical Administration and Miscellaneous Operating Expenses

    The Medical Administration account supports the employment 
of 535 Central Office staff and officials to oversee and manage 
the multiplicity of programs that deliver health care to 
America's veterans.
    The Committee is concerned that the Medical Administration 
and Miscellaneous Operating Expenses (MAMOE) account may not 
provide a sufficient resource base to ensure high-quality 
patient care services while VA simultaneously continues to 
restructure its health care delivery system. In particular, the 
Committee has pressed VA to improve its methods of assuring 
accountability, beginning with the Under Secretary for Health, 
and extending to the Administration's 22 network directors, who 
operate in a highly decentralized management environment. MAMOE 
requires additional staff and resources to properly carry out 
the responsibilities of supervising, managing, and accounting 
for the diverse and far-flung health care system.
    A modest increase of $5 million in this MAMOE account would 
provide the VA Central Office a funded staff of 589 in fiscal 
year 2002 to better manage its essential health care programs.

                     Medical Facility Construction

    Urgently Needed Projects.--VA is now undertaking an 
initiative to identify the most effective and efficient use of 
its infrastructure in care delivery to veterans. The VA uses 
the acronym ``CARES'' (for Capital Assets Realignment for 
Enhanced Services) to describe this initiative. The Committee 
held a number of hearings during the 106th Congress dealing 
with VA's capital assets. VA hospitals were primarily built or 
converted after World War II to rehabilitate and care for 
wounded, sick and traumatized soldiers, sailors, airmen and 
marines. The Committee agrees with the principle that VA should 
seek the most effective use of its facilities and modernize, or 
declare as excess, buildings based on the health care needs of 
veterans.
    In the wake of its wars, the nation faced the daunting task 
of dealing with hundreds of thousands of wounded and maimed 
veterans. The care VA provided to the most seriously injured of 
these veterans often concluded years, rather than days or even 
months after a patient's initial admission. VA has now changed 
its approach to care from that of being an institutional 
provider of rehabilitation and restorative care to that of 
largely being a primary care provider often serving and older 
population. The capital infrastructure built for its previous 
approach does not easily lend itself to its new delivery model.
    Even though VA's CARES process is ongoing, the Committee 
believes that VA's most pressing capital infrastructure needs 
must to be addressed. In recent years, VA has proposed few 
construction projects, and, awaiting the outcome of the CARES 
process, Congress appropriated little funding for this purpose 
the last four years.
    Outside consultants and VA's own reports show a growing 
need and rising backlog of major and minor projects. For 
example, a 1998 Price Waterhouse report suggested VA, in 
proportion to the value of its $35 billion infrastructure, 
should be investing in the range of $700 million to $1.4 
billion annually on replacement and modernization projects. A 
second consultant report disclosed dozens of VA patient care 
buildings at the highest level of risk for earthquake damage or 
even collapse. Indeed, a 6.8 tremor on February 28, 2001, 
damaged two of VA's patient care buildings at the American Lake 
VA Medical Center cited by this consultant. Another report 
revealed $57 million in needed projects to protect women's 
privacy in VA health facilities.
    The Committee believes that, regardless of the course the 
CARES process identifies for VA's infrastructure, continuing 
maintenance on the system is essential to keep it viable and 
safe. To this end, on March 1, 2001, the Chairman and a number 
of other Committee Members introduced H.R. 811, the Veterans' 
Hospitals Emergency Repair Act, to authorize the Secretary to 
select small to medium-sized projects to maintain and improve 
VA facilities while CARES proceeds. The bill would authorize 
$250 million in capital projects in fiscal year 2002, subject 
to the Secretary's site selection based on specific criteria in 
the legislation. The Committee believes that these funds are 
critically needed and recommends $250 million be provided for 
this interim program for fiscal year 2002.

    Major Construction Projects.--Since fiscal year 1996, under 
the authority of section 8104 of title 38, United States Code, 
Congress has authorized nearly $1 billion for 41 major medical 
facility projects. However, due to lack of specific 
appropriation, only 28 of these projects were completed. 
Authorizations for these projects for this year alone total 
over $100 million, but no appropriations were provided. The 
Committee believes that funding should be provided for 
Congressionally authorized major medical facility projects. 
Therefore the Committee recommends that $112 million be 
provided to fund at least some of these previously approved 
facilities.

    Minor Construction Projects.--For many of the reasons we 
stated above with respect to the delegated-projects proposal 
the Chairman and colleagues recently introduced, the Committee 
believes that VA needs to increase its investment in the minor 
construction program. VA hospitals, nursing homes and other 
health care facilities are deteriorating, and not enough is 
being done about it. Therefore, the Committee recommends that 
the minor projects account--an activity that funds hundreds of 
very inexpensive yet critical maintenance and repair needs--be 
provided $200 million in fiscal year 2002 to address some of 
the large backlog presently awaiting funding.

                       State Home Grants Programs

    The Department has not approved requests totaling $245 
million for new construction and renovation grants for state 
veterans homes and other facilities. A new round of requests 
under this program will soon be solicited for fiscal year 2002. 
This program is the only one of three available types of 
institutional long-term care that is expanding to meet the 
needs of the aging veteran population. Moreover, states commit 
to pay 35 percent of the construction costs for these 
facilities and to bear most of the cost of care that exceeds 
amounts contributed by the VA (current daily VA reimbursements 
are $51 for nursing home care and $22 for domiciliary care for 
each veteran).
    Congress revised the state home program in Public Law 106-
117 to provide a higher priority for renovation needs in 
existing state homes. Until enactment of P.L. 106-117, these 
longstanding projects were given a lower priority for funding 
than grants for constructing new beds. Given the recent changes 
in law and the growing backlog of unfunded projects, the 
Committee proposes additional funding of $35 million to support 
a more adequate VA response to this ever-growing demand for 
long-term care facilities.

                    VETERANS BENEFITS ADMINISTRATION

                       General Operating Expenses

    The General Operating Expenses account funds full-time 
employee equivalents (FTEE) and operating expenses for both the 
Veterans Benefits Administration (VBA) and VA's Central Office 
(headquarters). VBA administers a broad range of non-medical 
benefits to veterans, their dependents, and survivors through 
58 regional offices. These programs include compensation and 
pension, education, vocational rehabilitation, insurance, and 
loan guaranty (home loans). VBA is also responsible for 
processing applications for these programs. Headquarters 
includes the Secretary's staff and other VA support staff, and 
is located in Washington, DC.
    The Committee supports a funding increase of $49.8 million 
for 830 additional FTEE for compensation and pension claims 
adjudication. VBA has a backlog of more than 459,000 claims 
waiting to be processed. During the three-month period of 
November 24, 2000 to February 23, 2001, the backlog of pending 
claims increased by 130,294, from 329,278 to 459,572. This is 
an average weekly increase of more than 10,000 pending claims. 
Adverse effects of the increasing backlog are a decline in the 
quality of work, veteran satisfaction and employee morale. 
Approximately one-third of claims decisions have some type of 
error, most of which are administrative in nature. However, 4.2 
percent of errors do involve grant/denial or rating issues. The 
percent of cases remanded from the Board of Veterans' Appeals 
has declined from 45 percent in 1997 to about 29 percent today, 
thus reducing the number of claims that must be reworked by the 
regional offices. However, there has been an increase from 16 
percent to 26 percent in the number of claims denied by the 
regional offices that have been allowed by the Board. In fiscal 
year 2000, only 41 percent of the decisions appealed from 
regional offices were upheld by the Board of Veterans' Appeals.
    The Committee commends the Department for numerous 
initiatives including:

     Pre-Discharge compensation examinations and 
ratings (including overseas);
     Case management;
     Decision Review Officer program;
     Establishment of nine Service Delivery Networks;
     Systematic Technical Accuracy Review program;
     Data integrity initiatives;
     Electronic claims filing including online benefit 
applications;
     Development of paperless claims folders known as 
``Highway One;''
     Reader-focused writing; and
     The ``Balanced Scorecard.''

    Despite these numerous initiatives by VBA, it still takes 
205 days to adjudicate an original compensation claim. It is 
important to understand the customer base in VA's $21 billion 
per year compensation and pension program. According to the 
1996 report of the Veterans' Claims Adjudication Commission, if 
VA stopped receiving first-time disability claims in 1995 for a 
period of 20 years, and repeat claims activity remained 
consistent with current levels over that time, in the year 2015 
VA would still have 72 percent of the 1995 workload--without 
taking a single new claim. The majority of VA claims for 
disability compensation are on the lower end of the rating 
schedule. Claims rated below 30 percent generate a large number 
of the reopened claims and appeals. The VBA Annual Benefits 
Report for Fiscal Year 1998 notes that most disabilities are 
rated at 30 percent or less, including 94 percent of the 95,000 
veterans added to VA compensation rolls in fiscal year 1998. 
The VBA Annual Benefits Report for Fiscal Year 1999 found that 
57 percent of disability compensation payments are less than 
$200 monthly.
    Another dimension of the current system as designed by 
Congress is the percentage of veterans who file for claims and 
are already receiving VA compensation. Such ``reopened'' claims 
outnumber original claims almost 3 to 1. The Congressional 
Veterans' Claims Adjudication Commission found that veterans 
already in receipt of compensation file 69 percent of reopened 
claims and 67 percent of appeals. Veterans may reopen a claim 
because a service-connected condition has worsened or they have 
obtained new and material evidence concerning a decision or 
evaluation on a previously adjudicated claim. A recent survey 
by the Veterans Benefits Administration found that the average 
age of a veteran filing an original claim is 34, the average 
life expectancy is 77, and the average number of claims 
expected in a lifetime is 17.9. The average age of veterans 
receiving service-connected compensation benefits is 59 with 26 
percent of service-connected veterans between the ages of 50 
and 59. The medical conditions most frequently service-
connected involve orthopedic conditions and hearing loss, 
conditions which can be expected to worsen as veterans age. 
Thus, it should be anticipated that VBA would see an increase 
in veterans reopening their claims as their service-connected 
conditions worsen during the aging process.
    Veterans rarely file for only one disability. With respect 
to new claims, in fiscal year 1999, the average number of 
disabilities filed per claim was 4.72. The average number of 
service-connected disabilities granted to Gulf War veterans is 
more than 80 percent greater than for World War II veterans. 
From 1979 to 1999, the number of disabilities for which VA pays 
service-connected benefits increased from 3.0 million to 5.7 
million, while the number of veterans receiving service-
connected compensation increased from 2.1 million to 2.3 
million. Gulf War and peacetime veterans file for and receive 
compensation at a higher rate than Vietnam, Korea, and World 
War II veterans.

                       Benefit Program Operations

    Compensation & Pension Service (C&P).--The ability of VA to 
furnish timely and quality benefits delivery is heavily 
dependent on a combination of proper staffing levels, effective 
implementation of computer modernization initiatives, training 
and retention incentives, and inter-departmental cooperation 
between various VA organizations and the military service 
branches. Over the decade of the 1990's, the number of trained 
personnel in the adjudication division declined by 
approximately 40 percent.
    According to the President's Blueprint for New Beginnings, 
the budget fully implements new legislation that strengthens 
VA's ``duty to assist'' veterans in preparing their claims and 
a regulation that adds Type 2 diabetes to the list of 
presumptive conditions that are associated with exposure to 
herbicides. The President's budget asserts that it fully funds 
the VBA additional workload for this initiative and assumes 
that VBA will develop a vision for future benefits delivery 
that incorporates and harnesses paperless technology. Part of 
this effort to modernize will be for VBA to complete the 
consolidation of aging data centers into its state of the art 
facility in Austin, Texas.
    However, with respect to anticipated workload under ``duty 
to assist'' requirements, the Committee understands that for 
the current fiscal year VA will need to rework about 98,000 
claims previously denied under the Morton v. West decision, 12 
Vet. App. 477 (1999), review the current inventory of 342,000 
claims for compliance with duty to assist requirements and take 
corrective actions, and perform expanded development on 87,000 
new claims. VBA expects to receive 105,000 new claims for 
service connection of Vietnam veterans who have been diagnosed 
with Type 2 diabetes. VA's average age of pending claims is 
expected to climb to 241 days by the beginning of fiscal year 
2002 from VA's target of 119 days.
    VA must have additional personnel to make up for past 
reductions in claims adjudicators, to meet increased workload 
demands, to provide essential training for current and new 
personnel, to ensure quality, and to achieve and maintain 
satisfactory timeless in claims processing. Approximately 40 
percent of VBA's workforce is in training status.
    If VA's claims' adjudication system does not have quality, 
it does not serve veterans. To improve quality, VA should 
devote more resources to training. To deliver training on a 
system-wide basis, VA will need to add 200 FTEE in fiscal year 
2002. To meet the projected workload demands, VA should add 170 
new adjudicators. To handle its appellate workload in regional 
offices, VA needs 200 additional Decision Review Officers, a 
concept recommended by the Veterans' Claims Adjudication 
Commission. Regional offices that have implemented the DRO 
program have seen a significant decline in the number of claims 
that are appealed to the Board of Veterans' Appeals.
    VA also would benefit from staff to conduct quality reviews 
of the work of each of its claims adjudicators to assess 
performance, impose accountability, and remedy deficiencies on 
an individual level. Through its Systematic Individual 
Performance Assessment initiative, VA intends to review 100 
decisions from each adjudicator per year. VA would need about 
260 new employees in fiscal year 2002 to accomplish this task.
    In summary, for the above initiatives, the Committee 
recommends a total of 830 FTEE at a cost of $49.8 million. 
Also, the Committee expects a continuing adverse affect in 
services in the absence of an urgently needed supplemental 
appropriation for fiscal year 2001 of about $26.6 million (347 
FTEE) for compensation and pension claims processing. Absent 
funding of a supplemental appropriation for fiscal year 2001, 
the Committee anticipates that additional funding will be 
needed in fiscal year 2002.

    Vocational Rehabilitation and Employment Program (VR&E).--
The goal of the Vocational Rehabilitation and Employment 
program is employment of disabled veterans and eligible 
dependents. To accomplish that goal, VR&E is authorized to 
furnish all services and assistance necessary to enable 
service-connected disabled veterans to become employable, 
obtain and maintain suitable employment, or to achieve maximum 
independence in daily living. Additionally, VR&E is authorized 
to provide educational and vocational counseling services to 
eligible active-duty members, veterans and dependents.
    VR&E was recently renamed to reflect a newfound emphasis on 
employment--the program's ultimate goal. The Committee has been 
pleased with recent VBA initiatives to promote better case 
management and lifecycle completion times and success rates. 
The Committee is also pleased thus far with VR&E's progress 
with implementing Employment Service Specialist positions into 
existing service delivery schemes. Further, the Committee 
commends the VR&E program for its strategic document ``The 
Business Case Continues.''
    The Committee remains concerned, however, with VR&E's 
relying too heavily on private contractors to fulfill various 
phases of the VR&E program lifecycle. Further, participant 
dropout rates and the quality of post-program employment are 
still troubling to the Committee. Therefore, the Committee 
recommends a $2 million increase above the fiscal year 2001 
funding level.

    Educational Assistance Programs.--VA's Education Service 
administers the All-Volunteer Force Educational Assistance 
Program (Montgomery GI Bill, chapter 30), the Post-Vietnam era 
Veterans' Educational Assistance Program (chapter 32), the 
Vietnam era Veterans' Educational Assistance Program (chapter 
34), the Survivors' and Dependents' Educational Assistance 
Program (chapter 35), and numerous other activities, including 
overseeing the role of State Approving Agencies and 
coordination with the Department of Defense on the Selected 
Reserve aspect of the Montgomery GI Bill. Public Law 106-398 
and Public Law 106-419 expand opportunities for increased usage 
of the educational assistance programs administered by VA. 
Several provisions will provide significant workload challenges 
for VA.
    First, the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (P.L. 106-398) gives members of the 
Armed Forces an opportunity to receive increased payment for 
off-duty education and training. In most cases, the service 
branches can pay up to 75 percent of the tuition or expenses 
for off-duty education. Under the new law, the military 
services can pay up to 100 percent of tuition and expenses 
charged by the school. If the service branch pays less than 100 
percent, a servicemember eligible for the MGIB can elect to 
receive MGIB benefits for all or part of the remaining 
expenses. VA administers this program, though most of the costs 
are borne by the service branch. VA anticipates about 161,000 
new claimants in this program in fiscal year 2001 and 214,000 
additional claimants in fiscal year 2002. In fiscal year 2002, 
if the military services maintain a 75 percent Tuition 
Assistance reimbursement policy and all servicemembers seek 
payment of the balance from VA, VA's workload could double, 
thus requiring 151 additional FTEE for 340,000 additional 
claims annually.
    Second, the Veterans Benefits and Health Care Improvement 
Act for 2000 (Public Law 106-419) allows payments for licensing 
and certification tests under the chapter 30, 32, and 35 
programs. These tests are needed to enter, maintain, or advance 
into employment in a civilian vocation or profession. The 
eligible veteran or family member receives reimbursement for 
the fee charged for the test, or $2,000, whichever is less. VA 
estimates 100,000 veterans will apply for such benefits in 
fiscal year 2002 and will need 65 additional FTEE for this 
purpose.
    Third, Public Law 106-419 also creates an opportunity for 
some 139,000 active duty servicemembers who have zero dollars 
in their Post-Vietnam Era Veterans' Educational Assistance 
Program (VEAP) account or have dollars in their account and did 
not act on a previous opportunity to convert to the Montgomery 
GI Bill to do so. These servicemembers can become eligible for 
MGIB if they 1) make an irrevocable election to receive MGIB, 
2) were VEAP participants on or before October 9, 1996, 
continuously served on active duty from October 9, 1996 through 
April 1, 2000, and 3) make a payment of $2,700. VA estimates 
13,000 individuals will convert to MGIB in fiscal year 2002 
requiring 8 FTEE.
    Last, the Committee notes degradation in education claims 
processing due to the transfer of all education inquiries 
(about three million calls annually) from 58 regional offices 
to four regional processing offices without additional FTEE, 
and the transfer of about 50 FTEE in fiscal year 1999 and 45 
FTEE in fiscal year 2000 to the Compensation and Pension 
Program. Not surprisingly, the four regional processing offices 
currently have a pending workload of about 90,000 education 
claims for which veteran-students are awaiting payment, far 
exceeding acceptable levels set by VBA. While the Committee 
appreciates the need to furnish more FTEE to the compensation 
program, the 95 FTEE transferred from education claims 
processing to Compensation and Pension processing represents a 
significant percentage of the approximately 800 FTEE used to 
process education claims. The Committee recommends 95 
additional FTEE for education claims processing to fill this 
void.
    In summary, the Committee recommends an additional 329 FTEE 
at a cost of $13.16 million for education claims processing. 
Further, the Committee notes a demonstrable adverse affect in 
services in the absence of an urgently needed supplemental 
appropriation for fiscal year 2001 of about $2.5 million (60 
FTEE) for education claims processing.

    State Cemetery Grants Program.--The State Cemetery Grants 
Program provides grants to assist the states in establishing, 
expanding, and improving state-owned veterans cemeteries. 
Increasing the availability of state veterans' cemeteries is 
one way to serve veterans who do not reside near a national 
cemetery. State cemeteries augment--but do not supplant in any 
way--VA's national cemetery program. VA has awarded 106 grants 
totaling more than $87 million to establish, expand, or improve 
49 veterans cemeteries in 26 states plus Guam and Saipan. 
Forty-three cemeteries in 22 states and Guam are now 
operational. The Committee recommends an increase from $25 
million in fiscal year 2001 to $30 million in fiscal year 2002.

                    NATIONAL CEMETERY ADMINISTRATION

    The National Cemetery Administration (NCA) provides 
national shrines honoring those who served in uniform and 
should be maintained as places of high honor, dignity and 
respect. Currently, NCA maintains more than 2.3 million 
gravesites in 119 national cemeteries in 39 states (including 
Puerto Rico), as well as 33 soldier's lots and monument sites. 
The Committee recommends a $25 million increase over fiscal 
year 2001 funding for the beautification, upkeep, maintenance 
and repair of the national cemetery system.
    Since 1973, when NCA was established, annual interments in 
national cemeteries have more than doubled from 36,400 to more 
than 82,700. NCA provided more than 327,000 headstones and 
markers in fiscal year 2000 compared to 190,000 headstones and 
markers in 1973.
    It is estimated that 574,000 veterans died in 2000, and 
veterans' deaths are expected to peak at 620,000 in 2008. To 
meet the increasing workload, section 611 of Public Law 106-117 
directed the Secretary of Veterans Affairs to establish six 
additional national cemeteries in those areas the Secretary 
deems to be most in need.
    In response to the growing demand for burials in national 
cemeteries, section 613 of Public Law 106-117 required the 
Secretary to conduct an independent study on improvements to 
veterans' cemeteries. The study will include an assessment of 
the one-time repairs required at each national cemetery under 
the jurisdiction of the NCA to ensure a dignified and 
respectful setting appropriate to such cemetery, and shall 
identify: 1) the number of national cemeteries necessary to 
ensure 90 percent of America's veterans reside within 75 miles 
of a national or State cemetery, 2) the number and percentage 
of veterans in each State who would reside within 75 miles of 
an open national or State cemetery, 3) an estimate of the 
expected construction costs and the future costs of staffing, 
equipping, and operating the projected national cemeteries in 
1) and 2) above. In addition to projecting cemetery needs at 5-
year intervals beginning in 2005 and ending in 2020, the report 
will take into account cemeteries which will close to new 
burials and the age distribution of local veterans' populations 
during the reporting periods.

                       BOARD OF VETERANS' APPEALS

    In fiscal year 2000, the Board of Veterans' Appeals (BVA) 
issued 34,028 decisions. Of those, 91 percent (30,966) involved 
compensation for service-connected disability. These include 
not only claims for service connection, but also claims for 
increased ratings and earlier effective dates.
    The average response time for fiscal year 2000 was 220 
days, down dramatically from 595 days in fiscal year 1996. At 
the end of fiscal year 2000, there were 20,521 cases pending 
before the Board, down from a high of 60,120 at the end of 
fiscal year 1996. BVA requires adequate funding and staffing to 
continue these recent improvements. The Board continues to 
remand a large percentage of claims to the originating regional 
office and has seen an increase in the number of claims allowed 
by the Board after denial at the regional office level, 
indicating a need for more staff and better training at the 
local office level.

                           INSPECTOR GENERAL

    The Inspector General is charged with ensuring that VA 
programs are managed efficiently and effectively and are free 
of fraud, waste and abuse. OIG has implemented a Combined 
Assessment Program (CAP) that provides on-site reviews of VA 
health care facilities on a cyclical basis. The CAP program is 
a unique joint OIG effort involving its Audit, Healthcare, 
Inspections and Investigations sections. The fiscal year 2002 
appropriation for the OIG will support an expected 28 CAP 
reviews. At this pace, six years would be required to conduct a 
CAP review of each VA health care facility-year. An interval of 
six years between comprehensive CAP reviews is not in the best 
interest of veterans and not acceptable.
    Accordingly, the Committee supports an appropriation 
increase for the OIG sufficient to support an additional 55 
FTEE in each of the next two fiscal years. These manageable 
incremental increases of 55 additional FTEE in 2002 and 2003 
would expand the number of CAP reviews to 56 in 2002 (43 VHA 
and 13 VBA) and to 76 reviews annually beginning in 2003 (57 
VHA and 19 VBA).
    The Committee further notes Congress established a 
statutory staffing floor of 417 FTEE for OIG in P.L. 100-527. 
Section 312 of title 38, United States Code, requires the 
budget transmitted to Congress for each fiscal year to be 
sufficient to support this statutory floor. This requirement 
has not been met since 1993. Current OIG staffing supported by 
appropriations is 369 FTEE. An additional 24 FTEE are supported 
by reimbursements received for Department contract review 
activities.
    Increased staffing for the Office of the Inspector General 
is a prudent use of resources. Over the past three years, the 
monetary benefits of OIG activities have reportedly exceeded 
$1.7 billion, providing an average return on investment of 15 
to 1. More importantly, an adequately staffed OIG will save 
more veterans' lives, improve the quality of health care 
provided, foster better access to health care, increase VA 
security against fraud and theft, and result in improved 
overall management.
    The Committee recommends an appropriation of $56.5 million 
for the Office of the Inspector General (OIG) for fiscal year 
2002. The recommended fiscal year 2002 OIG appropriation 
represents an increase of $8.1 million compared to the fiscal 
year 2001 OIG appropriation.

                          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 accomplish those goals, the Assistant Secretary of 
Labor for Veterans' Employment and Training (ASVET) is 
authorized to implement training and employment programs for 
veterans. The ASVET also acts as the principal advisor to the 
Secretary of Labor with respect to the formulation and 
implementation of all departmental policies and procedures that 
affect veterans.
    The Committee is aware of the significant changes in the 
national labor exchange system that are not a part of the 
delivery system for veterans' employment and training services 
as reflected in chapter 41 of title 38, United States Code.
    First, the states are changing the way they deliver 
employment services and adopting new service delivery models 
ranging from devolving state programs to the county level to 
privatizing some or all employment functions and instituting 
one-stop employment centers under the Workforce Investment Act 
of 1998.
    Second, the current version of chapter 41 predates 
requirements of the Government Performance and Results Act 
focusing on outcomes.
    Third, there is insufficient reward for states that help 
veterans get jobs in an exemplary manner.
    The Committee remains concerned about accountability and 
incentives for performance in the current delivery system as 
designed by Congress in chapter 41. Dedicated Local Veterans 
Employment Representatives and Disabled Veterans Outreach 
Program specialists are engaging and resourceful individuals. 
The Committee expects to consider legislation to position them 
to deliver services effectively in the 21st century.

                          Proposed Legislation

    The President's budget submission contains a number of 
mandatory proposals to reduce spending in various programs 
through Omnibus Budget Reconciliation Act extenders. The 
Committee does not plan to consider these proposals.

 Legislation the Committee May Report with Direct Spending Implications

    Montgomery GI Bill.--The Committee recommends a three-step 
approach, all of which ties in with revitalizing our military. 
The first step was an improvement in the Montgomery GI Bill-
Active Duty basic benefit from $552 to $650 per month with the 
enactment of Public Law 106-419 last November 1, 2000. The 
second or interim step will be an increase in the basic MGIB 
benefit in consecutive fiscal years to $800 per month on 
October 1, 2001, to $950 per month on October 1, 2002, to 
$1,100 per month on October 1, 2003, incurring a cost of about 
$300 million the first year and $3 billion over five years. The 
third and ultimate step would implement the Servicemembers and 
Veterans Transition Assistance Commission recommendation for an 
MGIB that pays tuition, fees, and a monthly subsistence 
allowance, thus allowing veterans to pursue enrollment in any 
educational institution in America limited only by their 
aspirations, abilities and initiative. Against the current 
baseline, this measure would cost about $1.3 billion in year 
one, and $2.6 billion over five years. The third step could be 
enacted in the 107th Congress if the Administration were to 
propose it.
    The Committee cites recent data from Trends in College 
Pricing furnished by the College Board, and concludes that the 
monthly basic MGIB benefit would need to be $1,025 per month 
for a veteran student to be able to pay the average tuition and 
expenses as a commuter student at a four-year public college 
for academic year 1999-2000. Over four years, the numbers are 
even more alarming, as reported by the College Board. The 
College Board's most recent statistics reflect average annual 
tuition and fees for attending a four-year public college is 
$9,229 for commuter students and $11,338 for students who live 
on campus. Four-year private institutions cost $21,704 and 
$24,946 respectively. With the current basic MGIB benefit of 
$5,850, however, a veteran is expected to pay for tuition, 
fees, and room and board over the academic year. The disparity 
between these ever-increasing costs and a veteran's ability to 
pay for them seems clear.
    The MGIB now provides $650 monthly stipends over four 
years; the total benefit payable is $23,300. The Committee also 
notes the April 21, 1999, testimony of Vice Admiral P.A. 
Tracey, then-Deputy Assistant Secretary of Defense, Military 
Personnel Policy: ``Since its inception, the value of the MGIB, 
when adjusted for inflation, has grown by only 24 percent, 
while college costs have risen by 49 percent.''

    Veterans Opportunities Act of 2001.--The Committee 
recommends about $60 million per year for improvements to 
programs of educational assistance, outreach to separating 
servicemembers, veterans and dependents, to increase burial 
benefits, to provide for family coverage under Servicemembers' 
Group Life Insurance, and for other purposes.

    Pilot Project for Interim Assistance to Homeless 
Veterans.--Currently, processing of claims for compensation and 
pension programs takes months. The Committee notes that 
Representative Lane Evans plans to introduce legislation 
authorizing a three-year pilot program to provide three months 
of transitional assistance to 600 homeless veterans who are 
being released from institutions. The assistance may be 
extended for an additional six months if the veteran is 
awaiting a regional office decision on a claim for compensation 
or pension benefits. Since any transitional assistance paid 
would be offset from a retroactive award of compensation or 
pension benefits, Mr. Evans advises the Committee that the cost 
of this pilot program would be approximately $2 million over 
three years.

    Homeless Veterans' Reintegration Programs (HVRP).--In 
section 901 of Public Law 106-117, the Committee authorized 
appropriations to the Department of Labor to carry out Homeless 
Veterans' Reintegration Projects at $10 million in fiscal year 
2000, $15 million in fiscal year 2001, $20 million in fiscal 
year 2002, and $20 million in fiscal year 2003. The Committee 
notes that Representative Evans plans to introduce legislation 
extending HVRP and authorizing expenditures of $50 million a 
year in fiscal years 2002 through 2006.

          Comparison of President's Proposed Budget, Independent Budget and VA Committee Recommendations for the Department of Veterans Affairs
                                                             (Budget Authority in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  FY 2002    Admin.                                  VA           VA
                                                            FY 2000    FY 2001     Admin.    Request     Indep.     IB +/- FY    Committee   Committee +/
                                                            Enacted    Enacted    Request   +/- 2001  Budget (IB)      2001        Recom.       - 2001
--------------------------------------------------------------------------------------------------------------------------------------------------------

Medical Care (including receipts)........................    $19,534    $20,890  .........  ........    1 $22,869      +$1,979    2 $22,415      +$1,525

Research.................................................        321        351  .........  ........          395          +44          381          +30

Construction.............................................        225        237  .........  ........          811         +583          562         +325

State Nursing Home and Cemetery Grants...................        115        125  .........  ........          130           +5          155          +30

Veterans Benefits Administration.........................        858        985  .........  ........        1,071          +86        1,115         +130

National Cemetery Administration.........................         97        110  .........  ........          119           +9          135          +25

Other Discretionary......................................        317        336  .........  ........          467          +98          371          +35
                                                          ----------------------------------------------------------------------------------------------

Total VA Discretionary Including $608 million in MCCF         21,467     23,033     24,033    +1,000     1 25,832       +2,799       25,134       +2,101
 Receipts 1..............................................
                                                          ----------------------------------------------------------------------------------------------

VA Mandatory Spending....................................     23,397     24,586     28,100    +3,514          ...          ...       28,400       +3,814
                                                          ==============================================================================================
--------------------------------------------------------------------------------------------------------------------------------------------------------
1 The Independent Budget (IB) advocates that all funding for medical care be provided through appropriations. Therefore the IB Medical Care and Total VA
  Discretionary amounts do not include MCCF receipts.
2 The VA Committee Recommendation assumes that the one-time change to the law regarding ``Millennium Bill'' receipts contained in the VA's appropriation
  bill (P.L. 106-377) will not be extended past fiscal year 2001. Thus, individual facility budgets will be augmented to the extent VA actually
  implements this collection authority.

 REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS' 
AFFAIRS, SUBMITTED PURSUANT TO SECTION 301 OF THE CONGRESSIONAL BUDGET 
        ACT OF 1974, ON THE BUDGET PROPOSED FOR FISCAL YEAR 2003


                Background and Committee Recommendations

    The Committee on Veterans' Affairs has carefully analyzed 
the Department of Veterans Affairs Fiscal Year 2003 Budget 
Submission.\1\ The Members of the Committee believe that 
substantially increased funding for veterans' healthcare will 
be necessary in order to fulfill Congressional mandates. New 
challenges and new veterans lead to the inescapable conclusion 
that we must provide the funding needed now by veterans who are 
filling VA's outpatient clinics in unprecedented numbers.
---------------------------------------------------------------------------
    \1\ 2003 Administration Request is calculated without proposed 
accrual funding for federal retiree costs.
---------------------------------------------------------------------------

                     Department of Veterans Affairs


                  VETERANS HEALTH ADMINISTRATION (VHA)

    Rising Demand for VA Healthcare.--The Department of 
Veterans Affairs (VA) operates the largest and most extensive 
system of healthcare services in the United States. Since 1996, 
it has reformed its delivery system, emphasizing primary and 
managed care, and expanded points of service. It has also 
launched a formal enrollment system for veterans who seek VA 
care, and attracted over six million veterans to enroll in the 
VA healthcare system. The VA system has the world's most 
advanced patient safety program and provides a superior quality 
of care.
    Nevertheless, VA healthcare struggles today, because 
appropriated funding is not keeping pace with growth in 
enrollment and the increased demands for service. Further, much 
of VA's physical infrastructure is old, crumbling and in 
immediate need of hundreds of millions of dollars in repairs, 
restorations and upgrades. In 2001, serious damage to several 
buildings demonstrated VA's seismic vulnerability at its 
American Lake facility in the State of Washington. So far, 
repairs at that facility have been completed only on a 
patchwork basis. VA has dozens of other buildings in earthquake 
zones at serious risk of seismic catastrophe.
    Many veterans enrolled in the VA healthcare system report 
difficulties in obtaining timely appointments for care and 
services. Some clinics, such as one in Rockford, Illinois, 
report waiting times in excess of one year for routine 
appointments. In discussions with VHA officials, Committee 
staff has been informed that funds are short in every network 
and every region, and that any gains made in the reallocation 
of resources to balance funding across the nation have been 
overwhelmed by new demands.
    The Secretary of Veterans Affairs, Honorable Anthony J. 
Principi, on February 13, 2002, presented the VA's budget 
request for fiscal year 2003 to the Committee on Veterans' 
Affairs. In his testimony, the Secretary observed: ``Perhaps 
we're the victim of our own success in many ways, but the VA 
has seen extraordinary growth in our workload since open 
enrollment came about in the mid-1990s; 30 percent overall 
growth in workload in the number of veterans who are coming to 
us for care, that's grown from 2.4 million to 3.4 million; and 
in addition in Category 7, so [it's a] 500 percent increase 
since 1996.''

    ``Demand Initiative''.--The budget proposal the Secretary 
presented includes a ``Demand Initiative'' request of $1.8 
billion in funding for new veterans expected to seek VA 
healthcare in fiscal year 2003. The Department's budget 
proposal also states an intention to implement management 
improvements that would achieve $317 million in savings for 
fiscal year 2003.
    The Committee agrees with the Department that healthcare 
demands from newly enrolled veterans should be accounted for 
and funded in the budget, and the Committee commends the 
Secretary for this forthright approach. However, the Committee 
is skeptical of the VA's ability to quickly implement and 
annualize management improvements. Therefore, the Committee 
accepts the premise that $217 million in savings can be 
achieved in fiscal year 2003.

    Legislative Proposal for $1,500 Deductible.--In 1996, 
Congress reformed veterans' healthcare eligibility with Public 
Law 104-262, mandating VA care for service-connected and low-
income veterans, and permitting care for nonservice-connected, 
higher income veterans on a resource available basis. VA 
established a seven-tier healthcare priority system for 
veterans. VA's treatment focus shifted to primary care, and VA 
began a rapid expansion of access points. Today VA has over 800 
community clinics that provide primary care and serve as the 
referral system for its 172 medical centers.
    The budget request for fiscal year 2003 includes a proposal 
that Congress impose an annual healthcare deductible of $1,500 
for Priority 7 veterans. This group consists of nonservice-
connected and noncompensable zero percent service-connected 
veterans who are enrolled in VA healthcare. Priority 7 veterans 
have incomes above VA's means test threshold ($24,304 for a 
single veteran and $29,168 for a veteran with one dependent), 
and must make copayments set by the Secretary as a condition of 
eligibility.
    The budget request reports rapid growth in Priority 7 
enrollment, with nearly 1.9 million veterans enrolled now, 
about 33 percent of total enrollees. It projects enrollment by 
Priority 7 veterans will increase to 42 percent of all VA 
enrollees by 2010. For fiscal year 2003, VA's budget projects 
that it would need an additional $1.1 billion above the budget 
request level to meet projected demand for healthcare by 
Priority 7 veterans. According to VA, the proposed deductible 
of $1,500 would produce $260 million in additional revenue for 
fiscal year 2003, reduce projected enrollment by 121,000 
veterans, discourage utilization by hundreds of thousands of 
additional veterans, and thus save VA $885 million. The 
estimated total savings to VA would be $1.1 billion.
    In his testimony before the Committee on February 13, 2002, 
the Secretary stated that each Priority 7 veteran's healthcare 
is expected to cost approximately $1,800 annually, but VA chose 
$1,500 as the deductible amount proposed, without further 
explanation. The proposal is inconsistent with a new policy the 
President approved in Public Law 107-135 on January 23, 2002, 
to lower by 80 percent VA's existing deductible for inpatient 
hospitalization for certain veterans. Thus, if Congress 
approves VA's proposal to impose a new $1,500 deductible, it 
would reverse a course set in law only a short time ago. It 
would also reverse a policy adopted by the VA in December of 
2001 to reduce the required copayment for routine outpatient 
visits.
    In making this proposal, the Department does not appear to 
have considered the effect on its existing collections system. 
VA depends on collections from veterans and their private 
insurers for a significant and growing portion of its revenues 
to support care. Under current law, VA charges copayments for 
inpatient, outpatient, nursing home and other extended care, as 
well as for prescription drugs for all Priority 7 veterans. The 
copayment requirement for prescription drugs also applies to 
those veterans whose incomes exceed the current VA nonservice-
connected pension rate, approximately $9,000 per year under 
current law. In Public Law 106-117, Congress authorized the 
Secretary to review the copayments policy and implement a more 
rational system. VA recently changed a number of these 
policies.
    Even if Congress were to quickly enact and the President 
were to sign this proposed legislation, it is doubtful that VA 
could administratively implement the deductible policy until 
late in fiscal year 2003, if at all. VA would need at least 
several months to issue implementing regulations, including 
opportunity for public comment. VA would also need to establish 
a method to account for each veteran's deduction status in an 
annual accounting cycle. The deductible amount would be 
directly chargeable to a veteran only if the veteran were 
uninsured. Collections from insurers are complicated and often 
significantly delayed from the time VA sends bills. Further, VA 
collects only a small fraction of billed charges in its 
existing Medical Care Collection Fund programs. Implementing a 
new individual deductible would only add to the administrative 
difficulties. The Committee believes the new deductible would 
have at best a small effect on funds or workload in fiscal year 
2003. The Committee recommends Congress reject this proposal 
and instead enhance VA's budget request with the additional 
appropriated funding needed to sustain VA Priority 7 workload 
during fiscal year 2003.

    Inflation.--Medical inflation for 2001 in the United States 
was reported to be 4.6 percent overall. In the coming year, 
inflationary increases will occur for the Department in health 
insurance and managed care premiums for its more than 200,000 
employees, transportation and energy costs, maintenance on 
thousands of buildings, and particularly in higher cost for 
prescription drugs for nearly six million enrolled veterans.
    Prescription drug cost inflation in this country is of 
special concern, because it has risen from 3.6 percent in 2000 
to 6.2 percent in 2001, according to the commercial 
publication, ``Health Inflation News,'' December 31, 2001. The 
Bureau of Labor Statistics estimates 2001 inflation of 
pharmaceuticals and medical supplies at 5.99 percent. The 
proposed budget predicts VA pharmaceutical cost increases of 
8.58 percent above the Administration's projected medical 
inflation rate of 3.9 percent. Inflation in U.S. hospital 
inpatient care rose from 5.6 percent in 2000 to a current 6.9 
percent. The terrorist attacks of September 11, 2001 will also 
contribute to health inflation due to unplanned increased 
utilization of both public and private healthcare resources. 
The Committee supports VA's request in the budget for $396 
million to address healthcare inflation in fiscal year 2003.

    Implementation of New Veterans Healthcare Authorities.--The 
full cost of implementing new laws was not taken into account 
in the Department's budget submission. The Homeless Veterans 
Comprehensive Assistance Act of 2001, Public Law 107-95, 
requires VA to significantly expand programs and services for 
homeless veterans in conformance with the legislation's stated 
goal of ending chronic homelessness in the veteran population 
within 10 years. VA included in its budget request only $8 
million for additional programs for homeless veterans. The 
Department of Veterans Affairs Health Care Programs Enhancement 
Act of 2001, Public Law 107-135, expands existing health 
programs, creates new ones, and enhances accountability of VA 
in maintaining certain VA healthcare services to disabled 
veterans. In total, the Committee believes that these 
legislative measures will require $100 million in 
implementation costs for fiscal year 2003.
    Over the past year, the Committee has observed long-term 
care bed reductions in VA facilities. VA's position is that it 
cannot afford to maintain the beds required by law, and VA has 
even suggested Congress change the law to permit VA to 
``credit'' its capacity maintenance requirement with beds in 
the state home system and in the private sector. The Committee 
rejects such an approach, and insists that VA observe the 
requirement to maintain a share of the responsibility to care 
for old and ill veterans in its own beds, rather than sending 
these patients outside the VA. To partially restore some of the 
capacity that VA has reduced in the past several years since 
Congress imposed these capacity restrictions, the Committee 
recommends an additional $51 million for fiscal year 2003. This 
is in addition to the $121 million requested by VA as part of 
its healthcare demand initiative.

    Emergency Preparedness.--A number of initiatives have been 
launched in Federal agencies to deal with both the immediate 
and longer term needs of addressing terrorist threats to the 
Nation's security and safety. The Department of Veterans 
Affairs should play a role in this effort because it operates 
the only nationwide civilian healthcare system. The funding 
requested in the 2003 budget for this function, $55 million, 
would be insufficient for this very complicated and expensive 
task. Therefore, the Committee recommends an increase of $200 
million in this account for a total allotment of $255 million 
for fiscal year 2003.

    Major Medical Facility Construction.--Last year the House 
passed H.R. 811, the Veterans Hospital Emergency Repair Act, 
and the House Committee on Appropriations provided $300 million 
for its implementation in fiscal year 2002. However, the Senate 
did not act on the bill and the House-Senate conference on VA 
appropriations did not include the proposed funding. A number 
of urgent infrastructure projects remain without funding in the 
Department. In its budget request, the Department proposes only 
$94 million for major medical facility construction to fund 
four VA seismic projects in the San Francisco and Los Angeles 
areas of California. Each of these projects has been proposed 
before as top VA priorities, and has been authorized previously 
by Congress.
    The Committee's views on VA healthcare infrastructure needs 
have not changed since last year. Immediate needs must be met. 
Congress should commit funding and provide authority to enable 
the Secretary of Veterans Affairs to complete at least half of 
the top twenty infrastructure projects identified by the 
Secretary in the annual report required by law. Funding these 
projects is essential to helping VA maintain a safe and decent 
healthcare system for veterans. The Committee recommends VA's 
request be supplemented with an additional $191 million for 
major medical facility construction funding, including funding 
for the San Diego, California, seismic corrections project, a 
total of $285 million for fiscal year 2003. The Committee also 
recommends VA be provided with $250 million in fiscal year 2003 
for minor construction.

    Medical and Prosthetic Research.--After discounting amounts 
included for accrual of retiree costs, the Department's budget 
proposes $394 million for VA's medical and prosthetic research 
activity in fiscal year 2003. The Committee fully supports this 
request.

                    VETERANS BENEFITS ADMINISTRATION

    General Operating Expenses.--The General Operating Expense 
account funds full-time employee equivalents (FTEE) and 
operating expenses for both the Veterans Benefits 
Administration (VBA) and VA's Central Office (headquarters). 
VBA administers a broad range of non-medical benefits for 
veterans, their dependents, and survivors through 57 regional 
offices. These programs include compensation and pension, 
education, vocational rehabilitation, insurance, and loan 
guaranty (home loans). Headquarters employees include the 
Secretary's staff and other VA administrative staff located in 
Washington, DC.
    From October 1, 2001 through March 1, 2002, the pending 
backlog of claims for benefits has increased each week by an 
average of 3,025 claims, in large part due to VA having to 
apply new duty-to-assist standards and review almost 350,000 
claims. In light of the increased workload and recent 
legislative changes, including a repeal of the 30-year time 
limitation for respiratory cancers and the addition of Type 2 
diabetes to the presumptive list for Vietnam veterans, the 
Committee supports the Administration's funding increase for 
106 additional FTEE for development of Virtual VA (a paperless 
claims prototype), additional quality reviews of claims 
adjudication decisions, and redesign of the compensation and 
pension medical evaluation system.
    VA has reported a significant improvement in the quality of 
its claims decisions in the last few years. According to VA's 
Departmental Performance Plan, overall rating accuracy 
(including procedural and substantive errors) in fiscal year 
2001 was 78 percent, a considerable improvement from the 59 
percent accuracy rate reported in fiscal year 2000. According 
to the Secretary in testimony before the Committee on February 
13, 2002, the accuracy rating today is 88 percent. Nationally, 
accuracy for authorization work reportedly improved from 51 
percent in fiscal year 2000 to 62 percent in fiscal year 2001. 
In addition, the reported accuracy for fiduciary work improved 
from 60 percent in fiscal year 2000 to 68 percent in 2001. For 
fiscal year 2002, VBA has revised its rating accuracy criteria; 
only ``clear and unmistakable errors'' and errors which are 
expected to result in a remand on appeal will be counted in 
determining the accuracy rate.
    VBA's 57 regional offices process about 24 million pieces 
of mail and answer about nine million phone calls annually in 
administering the veterans' benefits system. The average VA 
rating specialist will make about three-quarters of a billion 
dollars in ratings decisions through the awards he or she 
authorizes over a 20-year period. The Committee supports the 
Administration's request which provides an additional 106 FTEE 
to provide increased quality review of the larger compensation 
and pension workload associated with recently enacted 
legislation and regulations and to support several VBA 
initiatives to improve claims processing.
    The Committee recommends that the General Operating 
Expenses account be increased by an additional $5 million for 
fiscal year 2003 to provide 78 additional FTEE as human 
resource staff for regional offices. Regional offices currently 
lack adequate on-site experienced human resource personnel to 
provide assistance and advice to management on personnel-
related issues. These include employee relations, equal 
opportunity complaints, accommodation for workers with 
disabilities, personnel actions, labor-management issues, local 
community relations, retirement planning, and other human 
resource activities involving face-to-face interactions. With 
employee retirements expected to increase and regional offices 
consequently employing a large percentage of trainees, the need 
for additional local human resource personnel has become 
apparent.
    This additional funding will provide one GS-12 Personnel 
Management Specialist, one GS-11 Personnel Management 
Specialist and one GS-5 or 6 Clerical support staff for each of 
the 20 largest regional offices. The remaining personnel (six 
GS-12, five GS-11, personnel specialists and five GS-5 
clerical) would be available to VBA for allocation to regional 
offices where additional staff is warranted due to the size of 
the office, special personnel problems exist, or for other 
compelling reasons. With this addition of human resources staff 
to regional offices, regional office management will be able to 
devote more time to analyzing and managing claims processing 
activities, providing appropriate counseling to employees in 
training status and those transitioning to retirement, 
improving labor management relations and improving community 
relations. These human resources staff positions are intended 
to supplement and not replace personnel who are currently 
performing human resource liaison activities at regional 
offices.

    Compensation and Pension Service (C&P).--The ability of VA 
to achieve timely and quality benefits delivery is heavily 
dependent on a combination of an adequate number of properly 
trained staff, effective business process reengineering and 
computer modernization initiatives, training and retention 
incentives, inter-departmental cooperation between VA and both 
the Department of Defense and the National Personnel Records 
Center, and assistance from veterans service organizations.
    In 1993, when Congress was contemplating legislation that 
created the Veterans' Claims Adjudication Commission, the 
pending claims workload was 570,000; when the VA Claims 
Processing Task Force issued its report in October 2001, the 
pending claims workload was 533,000. As of March 1, 2002, VBA 
had 599,121 claims pending at VA regional offices. The increase 
is due in large part to VA complying with new duty-to-assist 
standards for 244,000 pending claims, as well as the 
readjudication of 98,000 claims that had been previously denied 
under former duty-to-assist standards established by the U.S. 
Court of Appeals for Veterans Claims. VA also received a much 
larger than expected influx of claims for diabetes related to 
service in Vietnam. Additional statutory and regulatory 
presumptions for service connection of disabilities of atomic 
veterans and Vietnam veterans are expected to increase the 
pending caseload further.
    During fiscal year 2001, rating decisions required an 
average of 181 days to process, up from 173 days during fiscal 
year 2000. The Secretary of Veterans Affairs has publicly 
announced a goal of 100 days to process rating-related claims 
by the summer of 2003. The Committee applauds the 
Administration for putting a high priority on improving 
timeliness, but is concerned that in an effort to improve 
timeliness so dramatically in the stated timeframe, training 
and supervision of new employees and the quality of VA claims 
processing may be adversely affected. Some VA regional offices 
indicate that training staff, decision review officers, 
supervisory and management employees have been devoting 
significant amounts of time to claims adjudication activities.
    Through the first five months of fiscal year 2002, VA 
reports completing 294,000 rating-related actions and has an 
expected completion rate of 800,000 claims for the fiscal year. 
This would represent a substantial increase compared to the 
482,000 rating-related claims processed in 2001. Although 
``output'' has increased, the backlog has continued to grow. In 
light of increases in production, the Committee is puzzled by 
the continued growth in the backlog. The Committee supports 
initiatives aimed at improving the processing of veterans' and 
dependents' claims and the continued emphasis on claims 
accuracy. However, the Committee encourages the Department to 
strive for a proper balance in the direct labor hours devoted 
to new employee training and supervision and to appellate 
matters as well.
    According to the VBA Annual Benefits Report for Fiscal Year 
2000, among the disabilities most frequently service-connected 
for veterans who began receiving compensation in fiscal year 
2000 are those involving musculoskeletal conditions (42 
percent) and impairment of auditory acuity (10.8 percent). VBA 
should anticipate that as the veteran population ages, these 
types of service-connected conditions will worsen and veterans 
will reopen their claims. At the beginning of fiscal year 2001, 
the 50 to 59-year old age group had the most veterans receiving 
service-connected compensation and also received the highest 
average dollar amount of compensation.
    During fiscal year 2000, 83,159 veterans began receiving 
disability benefits, 46 percent of whom received a combined 
disability evaluation of 30 percent or higher. The Committee 
notes 81.8 percent of approximately 265,000 disabilities among 
the 83,000 veterans who began receiving compensation during 
fiscal year 2000 were zero or ten percent disabilities. Gulf 
War veterans have an average of 3.26 disabilities per veteran, 
while World War II veterans have an average of 1.82 
disabilities per veteran.
    For the combined degrees of disability at the beginning of 
fiscal year 2001, distribution of all service-connected 
disability ratings was:

     \7.4 percent of veterans (170,307) rated at 100 
percent;
     \5.1 percent of veterans (118,638) rated at 50 
percent;
     \13.4 percent of veterans (308,893) rated at 30 
percent;
     \36.3 percent of veterans (838,886) rated at 10 
percent.

    VA adjudicators work with over 1,000 pages of regulations, 
700 different disability codes and 113 presumptive conditions. 
They must also comply with hundreds of precedential decisions 
of the U.S. Court of Appeals for Veterans Claims as well as 
decisions by the U.S. Court of Appeals for the Federal Circuit 
and opinions of VA's General Counsel. It takes three years to 
train a rating veterans' service representative. During the 
1990's, the number of fully trained personnel in the 
adjudication division declined by approximately 40 percent.
    Although additional staffing was authorized during the past 
two fiscal years, many regional offices currently have between 
25 percent and 66 percent of their employees in training 
status. One-third of the VBA staff is expected to retire within 
the next five years. However, if veterans service organizations 
and state and county veterans affairs departments would fully 
develop ready-to-rate claims, the effect would be about the 
same as adding 3,000 additional staff to help develop claims. 
According to testimony by the former Under Secretary for 
Benefits, Joseph Thompson, before the Subcommittee on Benefits, 
this could result in speedier decisions and greater acceptance 
of the VA's initial decision.
    The Committee commends the creation of the VA Claims 
Processing Task Force and the Departments' rapid implementation 
of several Task Force recommendations with respect to workload 
and productivity, accountability, organizational structure, and 
information technology. Among the noteworthy initiatives are:

     \Creation of a ``Tiger Team'' at the Cleveland 
Regional Office responsible for resolving about 81,000 of the 
oldest claims for disability compensation and wartime pensions 
of veterans aged 70 and older;
     \Consolidating all existing pension maintenance 
program operations at three pension maintenance centers;
     \Creation of six specialized teams to manage the 
claims process, with pilot operations at four sites;
     \Organizational realignment of Board of Veterans' 
Appeals processing;
     \Extension of the timeframe for routine follow-up 
compensation and pension exams;
     \A plan for reorganization of compensation and 
pension regulations, as well as the operational manual; and
     \A centralized training model for an integrated 
program of compensation and pension technical training.

As of January 2002, of the 34 Task Force recommendations, 
comprising 66 action items, VA has completed six action items, 
16 action items are to be completed within six months, and 29 
action items are to be completed within six to 12 months.
    VA continues to make improvements to its disability and 
education claims processing programs, as well as expand 
outreach to servicemembers, veterans, and eligible dependents. 
Improving the timeliness and quality of the claims process is 
appropriately a top priority. The Committee supports funding of 
$1.271 billion for General Operating Expenses, including the 
additional 106 FTEE recommended by the Administration's budget 
and an additional 78 FTEE for human resources activities at the 
20 largest regional offices.

    Vocational Rehabilitation and Employment Program (VR&E).--
The goal of the Vocational Rehabilitation and Employment 
program is the employment of disabled veterans and eligible 
dependents. To accomplish that goal, VR&E is authorized to 
furnish all services and assistance necessary to enable 
service-connected disabled veterans to become employable, 
obtain and maintain suitable employment, or to achieve maximum 
independence in daily living. Additionally, VR&E is authorized 
to provide educational and vocational counseling services to 
eligible active-duty members, veterans and dependents.
    In 2000, VR&E assumed its current name to reflect an 
emphasis on employment as the program's ultimate goal. The 
Committee has been pleased with recent VBA initiatives to 
promote better case management, lifecycle completion times and 
success rates. The Committee also notes VR&E's continued 
progress in implementing Employment Service Specialist 
positions into existing service delivery schemes.
    The VA reports improved job placement rates in its VR&E 
program. In fiscal year 2001, 53 percent of rehabilitated 
disabled veterans acquired suitable employment. During the 
first five months of fiscal year 2002, 67 percent did so. The 
Committee supports the Administration's request of 1,205 FTEE 
in the Vocational Rehabilitation and Employment program, an 
increase of 27 FTEE over fiscal year 2002.

    Educational Assistance Programs.--VA's Education Service 
administers the All-Volunteer Force Educational Assistance 
Program (Montgomery GI Bill, chapter 30 of title 38, United 
States Code), the Post-Vietnam-era Veterans' Educational 
Assistance Program (chapter 32), the Vietnam-era Veterans' 
Educational Assistance Program (chapter 34), the Survivors' and 
Dependents' Educational Assistance Program (chapter 35), and 
numerous other activities, including overseeing the role of 
State Approving Agencies and coordination with the Department 
of Defense on the Selected Reserve program of the Montgomery GI 
Bill (MGIB).
    The Veterans Education and Benefits Expansion Act of 2001, 
Public Law 107-103, increased the basic benefit under the MGIB 
program for an obligated period of active duty of three years 
or more from $672 to $800 effective January 1, 2002, $900 
effective October 1, 2002, and $985 effective October 1, 2003. 
The Act also included improvements to Survivors' and 
Dependents' Education Benefits, Internet-based education, high 
technology education and courses offered through the private 
sector, certain Vietnam-era veterans' education benefits, and 
other areas. The improved benefit levels will likely contribute 
to continuing workload challenges for VA. For fiscal year 2003, 
VA estimates 325,815 veterans and servicemembers will 
participate in the MGIB chapter 30 program alone.
    The Committee notes that about six weeks prior to the 2001 
fall semester, VA had a pending workload of about 90,000 
education claims at VA's four regional processing offices. VA 
addressed the fall education workload by hiring additional 
staff, authorizing overtime, and streamlining certain claims 
processing measures. Nevertheless, the average time to process 
an original education claim increased from 36 days in fiscal 
year 2000 to 50 days in fiscal year 2001. Further, the 
``blocked call'' rate increased from 39 percent in 2000 to 45 
percent in 2001, an unacceptable level when compared with the 
three percent blocked call rate in other VBA activities. The 
increase appears to be attributable in some part to a greater 
than expected number of calls received by the four regional 
processing offices assuming responsibility for administering a 
nationwide toll-free GI Bill telephone inquiry line. VA expects 
to improve the blocked call rate by enhancing VA's education 
service web site to provide electronic alternatives to 
telephone services and by increasing the number of seasonal 
employees for peak usage periods.
    The Committee notes timeliness in VA education claims 
processing reached a five-year low in fiscal year 2001--in 
large part due to transferring 50 FTEE in fiscal year 1999 and 
45 FTEE in fiscal year 2000 to the Compensation and Pension 
program and the transfer of all educational inquiries (about 
three million calls annually) from 57 regional offices to four 
regional processing offices without additional FTEE. The 
Committee disfavors such transfers of personnel, as they tend 
to create dysfunction in one program in order to improve 
another.
    VBA has implemented a prototype, The Expert Education 
System (TEES), that is able to process selected enrollment 
information for MGIB claimants for whom data has been submitted 
electronically from their educational institution. The 
Administration has requested $6.3 million for TEES. The 
Committee recommends $16 million to enhance TEES automation, an 
increase of $9.7 million compared to the Administration's 
request. Based on testimony before the Committee and 
projections contained in the Independent Budget, $16 million is 
needed in order for the automated data exchange between VA and 
schools to be maximized. The Committee expects there will be 
fewer delays and greater accuracy for veterans receiving 
education benefits once this system is completely implemented.

    One-VA Telephone Access Initiative.--The Virtual 
Information Center (VIC) forms a single telecommunications 
network among several regional offices. VIC technology also 
allows VBA to answer calls at any place and at any time without 
complex call routing reconfigurations and with fewer FTEE. Also 
included in this initiative is support for upgrading the 
National Automated Response System to allow improved call flow 
design, increased Interactive Voice Response and customer 
survey functionality. The Committee supports the fiscal year 
2003 budget request of $10.8 million for this project.

    Vendee Loans.--When a purchaser agrees to buy a foreclosed 
VA home, VA often offers to finance the sale by establishing a 
vendee loan to encourage the prompt sale of the home. Vendee 
loans are made at market interest rates and often require a 
down payment. Borrowers are charged a 2.25 percent funding fee 
that is paid in cash.
    The Committee views vendee loans as an important tool to 
obtain a higher return on property sales, which reduce the 
overall cost of program operations. VA makes, and subsequently 
sells, $800 million to $1.2 billion in such loans each fiscal 
year. There is an ample body of empirical data indicating that 
offering vendee financing results in higher returns on taxpayer 
investment in VA's loan guaranty program. In March 2000, Booz, 
Allen, and Hamilton, Inc. independently analyzed the cost 
effectiveness of vendee loan financing. Their report indicated 
a savings to the Government of $16 million in fiscal year 1999 
due to vendee financing.
    A preliminary, informal estimate by the Congressional 
Budget Office shows a projected loss of $745 million over 10 
years if VA were to eliminate vendee loans, largely due to a 
lower purchase price on such foreclosed VA-financed homes. The 
Committee believes the vendee loan program is based on sound 
business principles and produces cost-effective results. The 
Committee opposes the President's budget proposal to eliminate 
the vendee loan program administratively in fiscal year 2003.

    State Cemetery Grants Program.--The State Cemetery Grants 
Program provides grants to assist states in establishing, 
expanding, and improving state-owned veterans' cemeteries. The 
State Cemetery Grants Program is not a replacement of VA's 
national cemetery program, but is one way of increasing the 
availability of state veterans' cemeteries to serve veterans 
who do not reside near an open national cemetery. Since the 
program became active in 1980, the State Cemetery Grants 
Program has awarded more than $108 million in grants: 53 grants 
for the initial establishment of new state cemeteries and 56 
new grants for expansion or improvements. There are 48 open 
state veterans cemeteries in 25 states and Guam, and 37 pending 
grant applications.
    With the implementation of the Veterans Program Enhancement 
Act of 1998, interest in the State Cemetery Grants Program has 
accelerated. Public Law 105-368 increased the federal 
government's share of the cost for establishing, expanding or 
improving a state veterans' cemetery from 50 percent to 100 
percent. The Committee supports the Administration's requested 
increase from $25 million to $32 million in fiscal year 2003.

                    NATIONAL CEMETERY ADMINISTRATION

    Currently, the National Cemetery Administration (NCA) 
maintains more than 2.4 million gravesites in 120 national 
cemeteries, as well as 33 soldier's lots and monument sites. 
These national shrines honoring those who served in uniform 
should be maintained as places of high honor, dignity and 
respect. Since 1973, when NCA was established, annual 
interments in national cemeteries have more than doubled from 
36,400 to 84,822 in fiscal year 2001. Last year, VA provided an 
estimated 304,000 headstones and markers compared to 190,000 
headstones in markers in 1973. VA estimates that 663,000 
veterans died in fiscal year 2001, 89,000 more than the number 
who died in fiscal year 2000.
    Veterans' deaths are expected to peak in 2006. In order to 
meet the demand for burial space, section 611 of Public Law 
106-117 directed the Secretary of Veterans Affairs to establish 
six additional national cemeteries in those areas the Secretary 
deems to be more in need. The Committee supports the fiscal 
year 2003 budget request of $23 million for development of a 
cemetery in southern Florida and $16 million for development of 
a cemetery in Pittsburgh. The fiscal year 2002 budget request 
included $28 million for the Phase I development of a cemetery 
in Atlanta, Georgia. On November 2, 2001, the first section 
completed at the Ft. Sill, Oklahoma, national cemetery was 
dedicated, and interments are being conducted. VA expects to 
report in May 2002 to Congress on the status of these new 
cemeteries, as well as those in Detroit, Michigan, and 
Sacramento, California.
    Congress has been active in ensuring that the final resting 
place of our veterans is befitting their service to the nation. 
Section 613 of Public Law 106-117 also directed the Secretary 
of Veterans Affairs to enter into a contract to assess the 
standards of appearance of active national cemeteries, and the 
feasibility of making standards of appearance of closed 
national cemeteries commensurate with standards of appearance 
of the finest cemeteries in the world. The Standards of 
Appearance Report is expected to be released in March 2002. The 
Committee supports the Administration's request for $133 
million in fiscal year 2003--a $17 million increase over last 
year--as well as an additional 59 FTEE.

                       BOARD OF VETERANS' APPEALS

    In fiscal year 2001, the Board of Veterans' Appeals (BVA) 
issued 31,557 decisions. Of those, 91 percent (28,698) involved 
the compensation program. The cases include claims for service-
connection, increased ratings, dependency and indemnity 
compensation, and earlier effective dates. About two percent 
(579 cases) involved more than one program. Almost 50 percent 
of the claims appealed were remanded to regional offices. The 
Board allowed another 22 percent of the claims appealed. Only 
26 percent of the appeals were denied.
    There was substantial difference in performance among 
regional offices. Appeals from the Manila, Fargo, St. Paul, and 
Milwaukee regional offices were reversed or remanded much less 
frequently than the national average. Appeals from Columbia, 
Wilmington, Montgomery, and Newark regional offices were 
reversed or remanded in a high percentage of cases. The 
Committee is concerned about the significant differences in 
reversal and remand rates among regional offices.
    For fiscal year 2003, BVA projects that it will take an 
average of 520 days to process an appeal. At the end of fiscal 
year 2001, 7,731 cases were pending before the Board, down 
substantially from 20,521 cases at the end of fiscal year 2000.
    The Committee recognizes that as a result of Public Law 
106-475, which requires VA to assist a claimant in obtaining 
evidence, a significant number of claims were remanded to 
regional offices by the Board. In an effort to assist with the 
increased caseload at the regional offices and reduce the 
number of remanded appeals, in 2002 VA issued a regulation 
allowing BVA to obtain and clarify evidence rather than remand 
the appeal to the originating regional office. By reducing the 
number of appeals remanded, BVA may be able to shorten both 
appeal processing times and reduce the number of claims 
awaiting decisions at regional offices.
    The Committee supports the Administration's request of 
$51.2 million and 451 FTEE for BVA. The Committee notes that 
this request will reduce the number of FTEE for BVA 
decisionmakers by 34 from the 2002 original budget estimate and 
by 14 from the 2002 current estimate. While the BVA workload 
has decreased during the current fiscal year, the Committee 
cautions that as the effect of the duty-to-assist legislation 
decreases and the number of claims decided by regional offices 
increases, BVA staffing may prove to be insufficient. It will 
not improve claims processing for veterans if the regional 
office pending workload is decreased and VA pending workload 
increases. The Committee intends to carefully monitor these 
outcomes.

                      OFFICE OF INSPECTOR GENERAL

    The VA Office of the Inspector General (OIG) exists to 
ensure veterans programs are managed efficiently and 
effectively, and are free of fraud, waste and abuse. OIG 
reports that the monetary benefits of their activities usually 
provide a return on investment of 30 to 1. In 1999, OIG 
reestablished cyclical audits under a Combined Assessment 
Program (CAP) that provides on-site reviews of VHA and VBA 
facilities as a joint effort of OIG's Audit, Healthcare, 
Inspections and Investigations sections. These audits were 
severely curtailed in 1993 because of staffing reductions, and 
were finally ended in 1995. Current OIG staffing levels will 
allow a CAP review of each VA healthcare facility every six 
years. A six-year interval between audits is not in the best 
interest of veterans or taxpayers.
    The Committee notes Congress established a statutory OIG 
staffing floor of 417 FTEE in Public Law 100-527. Section 312 
of title 38, United States Code, requires the budget 
transmitted to Congress for each fiscal year to be sufficient 
to support this statutory floor. This requirement has not been 
met since 1993. Current OIG staffing supported by 
appropriations is 405 FTEE. An additional 24 FTEE are supported 
by reimbursements received for Department contract review 
activities.
    In December 2001, Public Law 107-103 tasked the OIG to 
identify fugitive felons who are disqualified from receiving VA 
compensation and pension benefits. The OIG estimates that the 
annual amount of the benefits could be as high as $104 million. 
The OIG estimates that it will require 37 FTEE to fully 
implement this new legislative requirement.
    Increased OIG staffing is a prudent use of resources. 
Accordingly, the Committee supports an appropriated funding 
increase of $10.1 million for 92 additional FTEE in fiscal year 
2003. This increase would allow OIG to comply with the new 
legislative requirements of the fugitive felon program without 
impairing its current operations, reduce its CAP review cycle 
to four years, and bring OIG into compliance with the staffing 
floor. An adequately staffed OIG would improve quality and 
access for veterans' healthcare, increase VA security against 
fraud and theft, and result in improved overall management. The 
Committee therefore recommends overall funding of $69.1 million 
for OIG for fiscal year 2003, which would support 497 FTEE.

                          Department of Labor


            VETERANS' EMPLOYMENT AND TRAINING SERVICE (VETS)

    Congress has determined that our nation has a 
responsibility to meet the employment and training needs of 
veterans. To accomplish those goals, the Veterans' Employment 
and Training Service (VETS) of the Department of Labor provides 
job services for veterans through grants to state employment 
services.
    The Committee is aware of significant changes in the 
national labor exchange system that are not a part of the 
delivery system for veterans' employment and training services 
under chapter 41 of title 38, United States Code. States are 
changing the way they deliver employment services and adopting 
new service delivery models. These range from devolving state 
programs to the county level, competing some or all employment 
functions, instituting one-stop employment centers under the 
Workforce Investment Act of 1998, and using Internet-based job 
placement services under America's Job Bank and America's 
Talent Bank. Also, the current version of chapter 41 predates 
requirements of the Government Performance and Results Act to 
focus on performance measurement and outcomes.
    The Committee finds the performance of the VETS program to 
be unsatisfactory. The General Accounting Office (GAO) reports 
that seven out of ten veterans that visit state employment 
security agencies do not get jobs. The Committee expects to 
consider legislation to promote effective job service delivery 
for veterans in the 21st century. Fundamental objectives of 
such legislation would be to help veterans get jobs, ensure 
fairness to states in grants, give states greater flexibility 
to manage, reward states that do well, and allow all states an 
equal chance to excel.
    Between 1997 and 2001, GAO issued seven reports on 
veterans' employment and training services identifying serious 
deficiencies in VETS planning and performance. The President's 
fiscal year 2003 budget submission would transfer to VA three 
grant programs: (1) the Local Veterans Employment 
Representatives (LVER), (2) the Disabled Veterans Outreach 
Program (DVOP), and (3) the Homeless Veterans Reintegration 
Program (HVRP). In addition, the Transition Assistance Program, 
which provides job training, employment assistance, and other 
transitional services to separating servicemembers, would also 
be transferred to VA. The Office of Management and Budget, 
VETS, and VA have working groups focusing on various 
administrative, financial, and legislative implications of the 
proposed transfer. The total transfer of funding to VA would be 
$197 million. The transfer also includes shifting 199 VETS 
employees (state directors and assistant directors and their 
staffs) to VA. In the absence of a detailed plan and a 
legislative proposal to accomplish this transfer, the Committee 
reserves judgment on a transfer of VETS to VA.
    Therefore, the Committee recommends $214 million for VETS 
in fiscal year 2003, including $81,615,000 for DVOP services, 
$77,253,000 for LVER services, $27,776,000 for administration, 
$3 million for the National Veterans' Training Institute, $50 
million for HVRP, and $7,550,000 for the Veterans Workforce 
Investment Program.

 Legislation the Committee May Report With Direct Spending Implications


    State Approving Agencies (SAA).--The Committee recommends 
legislation to increase funding available to State Approving 
Agencies (SAAs) from $14 million to $18 million in fiscal year 
2003, and to increase such funding by three percent in each of 
fiscal year 2004 and fiscal year 2005. SAAs approve colleges 
and employers for veterans' training under VA education 
programs. The Committee's legislation reflects the SAA's new 
duties in occupational licensing and credentialing, and 
veteran, servicemember and employer outreach in each state. The 
Committee notes from fiscal years 1989 to 1994, SAA funding was 
capped at $12 million with no annual increases. From fiscal 
years 1995 to 2000, such funding was capped at $13 million. 
However, for fiscal years 2001 and 2002, Congress furnished 
SAAs a temporary increase in funds from $13 million to $14 
million. In the absence of legislation, SAA funding for fiscal 
year 2003 reverts to $13 million, the fiscal year 1995 funding 
level.

    Dependency and Indemnity Compensation for Surviving Spouses 
Who Remarry after Age 55.--Dependency and Indemnity 
Compensation (DIC) provides a partial substitute for the 
economic loss suffered by the survivors upon the service-
connected death of a veteran. For a survivor to be eligible, 
the veteran must have died during military service, from a 
service-connected disability, or have had a service-connected 
disability that was rated 100 percent for a certain period of 
time before dying from a nonservice-connected condition. DIC 
terminates upon the remarriage of a surviving spouse, although 
benefits may be restored in the event that the subsequent 
remarriage ends in death or divorce. Civil Service, Central 
Intelligence Agency and Social Security survivorship programs 
allow surviving spouses to remarry at older ages and retain 
their survivor benefits. The Committee will consider 
legislation to allow a surviving spouse who remarries after age 
55 to retain DIC benefits. The Congressional Budget Office 
(CBO) informally estimated the additional cost of this 
eligibility change to be $107 million in the first year, $1.4 
billion over five years, and $3 billion over 10 years.

    Uniform Home Loan Fees for Active Duty and Reservists.--
Currently, certain home loan fees paid by members of the 
Selected Reserves are 0.75 percent higher than the fees paid by 
active duty personnel. Given the significant contribution to 
military activities currently performed by reservists and the 
relatively low default rate of their loans, the higher fees are 
not justified. CBO estimated the cost of this eligibility 
change to be $7 million per year.

    Mortgage Insurance for Severely Disabled Veterans.--
Severely disabled veterans who have received grants for 
specially adapted housing from VA qualify for Veterans' 
Mortgage Life Insurance (VMLI) at a maximum amount of $90,000. 
The insurance is terminated when the veteran reaches age 70. 
The Committee may consider legislation to increase the amount 
of VMLI to $200,000 and to continue insurance after age 70. CBO 
estimated the increase to $200,000 in the amount of insurance 
would cost $2 million the first year and $11 million over five 
years. CBO estimated that the cost of continuing VMLI after age 
70 would be negligible the first year and $3 million over five 
years.

                     ADDITIONAL VIEWS AND ESTIMATES

                                                    March 11, 2002.
Hon. Christopher H. Smith,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for the opportunity to review 
the recommendations which you and Congressman Evans plan to 
submit to the Committee on the Budget with respect to the 
budget for veterans' programs for fiscal year 2003.
    Following are additional views and estimates which I wish 
to propose:
    $30 million for FY 2003 to provide VA health care for all 
non-service connected Filipino World War II veterans residing 
in the United States, using the same eligibility criteria as 
are used for U.S. veterans.
    $.5 million for FY 2003 to expand access at the VA 
Outpatient Clinic in Manila for both service-connected and non-
service-connected Filipino World War II veterans residing in 
the Philippines (to provide full health care, including 
service-connected and non-service-connected disabilities).
    I appreciate your consideration of these additional budget 
items.
            Sincerely,
                                                Bob Filner,
                                                 Member of Congress

          Comparison of President's Proposed Budget, Independent Budget and VA Committee Recommendations for the Department of Veterans Affairs
                                                             (Budget Authority in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      FY 2003        Admin.                                                       VA
                                                        FY 2002   Administration  Request +/-    Independent   IB +/- FY     VA Committee    Committee +/
                                                        Estimate    Request\1\        2002       Budget (IB)      2002    Recommendation\2\     - 2002
--------------------------------------------------------------------------------------------------------------------------------------------------------

Medical Care (excluding receipts)....................    $21,331        $22,744       +$1,413         $24,468    +$3,137         $24,534         +$3,203

MCCF and HSIF receipts...............................      1,031          1,449          +418     No estimate        ...           1,189            +158
                                                                                                     provided

Research.............................................        371            394           +23             460        +66             394             +23

Construction, Major..................................        183            194           +11             401       +218             385            +202

Construction, Minor..................................        211            211           ...             400       +189             250             +39

State Nursing Home and Cemetery Grants...............        125            132            +7             142        +17             142             +17

General Operating Expenses (excludes credit reform)..      1,199          1,256           +57           1,264        +66           1,271             +72

National Cemetery Administration.....................        121            133           +12             138        +17             133             +12

Other Discretionary (includes credit reform).........        288            293            +5     No estimate        ...             300             +12
                                                                                                     provided
                                                      --------------------------------------------------------------------------------------------------

Total VA Discretionary (Excluding MCCF and HSIF           23,829         25,357        +1,528  ..............  .........          27,407          +3,578
 Receipts)...........................................
                                                      --------------------------------------------------------------------------------------------------

VA Mandatory Spending................................     26,997         30,123        +3,126     No estimate        ...          30,234          +3,237
                                                                                                     provided
                                                      ==================================================================================================

--------------------------------------------------------------------------------------------------------------------------------------------------------
1 2003 Administration Request is calculated without proposed accrual funding for federal retiree costs.
2 VA Committee Recommendation does not assume enactment of Administration's proposed $1,500 deductible for veteran healthcare users, transfer of VETS
  from Labor to VA, or increased accrual funding for federal retiree costs.

        MESSAGES FROM THE PRESIDENT AND EXECUTIVE COMMUNICATIONS

                                ------                                


                         presidential messages

Feb. 13, 2002:
    Communication from the President of the United States, 
transmitting the Administration's 2002 National Drug Control 
Strategy, pursuant to 21 U.S.C. 1705.
                                ------                                


                        executive communications

Jan. 20, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--New Criteria 
for Approving Courses for VA Educational Assistance Programs 
(RIN: 2900-AI67) Received December 21, 2000, pursuant to 5 
U.S.C. 801(a)(1)(A).

Jan. 31, 2001:
    Letter from the the Director, National Legislative 
Commission, The American Legion, transmitting the proceedings 
of the 82nd National Convention of the American Legion, held in 
Milwaukee, Wisconsin from September 5, 6, and 7, 2000 as well 
as a report on the Organization's activities for the year 
preceding the Convention, pursuant to 36 U.S.C. 49.

Feb. 26, 2001:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a letter regarding the status of a joint report to 
Congress on the implementation of that portion of the Health 
Resources Sharing and Emergency Operations Act (38 U.S.C. 
8111(f)) dealing with sharing of health care resources between 
the Department of Veterans Affairs and the Department of 
Defense.

Mar. 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Board of Veterans' Appeals, Department of Veterans Affairs, 
transmitting the Department's final rule--Appeals Regulations: 
Tide for Members of the Board of Veterans' Appeals--Rescission 
(RIN: 2900-AK61) Received March 6, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

Mar. 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Revised 
Criteria for Monetary Allowance for an Individual Born with 
Spina Bifida Whose Biological Father or Mother Is a Vietnam 
Veteran (RIN: 2900-AJ51) Received March 6, 2001, pursuant to 5 
U.S.C. 801(a)(1)(A).

Apr. 3, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Claims Based 
on the Effects of Tobacco Products (RIN: 2900-AJ59) Received 
April 3, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Apr. 3, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Signature by 
Mark (RIN: 2900-AK07) Received April 3, 2001, pursuant to 5 
U.S.C. 801(a)(1)(A).

Apr. 27, 2001:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a report on cases recommended for equitable 
relief, pursuant to 38 U.S.C. 503(c).

May 7, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--
Certification of Evidence for Proof of Service (RIN: 2900-AJ55) 
Received April 18, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

May 10, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Review of Benefit Claims Decisions (RIN: 2900-AJ99) 
Received May 2, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

May 14, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Disease Associated With Exposure to Certain 
Herbicide Agents: Type 2 Diabetes (RIN: 2900-AK63) Received May 
4, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

May 14, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Reasonable Charges for Medical Care or Services 
(RIN: 2900-AK73) Received May 2, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

May 17, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--U.S. Flags 
for Burials of Certain Members of the Selected Reserve (RIN: 
2900-AK56) Received May 15, 2000, pursuant to 5 U.S.C. 
801(a)(1)(A).

June 5, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Schedule for Rating Disabilities: Disabilities of 
the Liver (RIN: 2900-AK12) Received May 25, 2001, pursuant to 5 
U.S.C. 801(a)(1)(A).

June 14, 2001:
    Letter from the the Adjutant General, the Veterans of 
Foreign Wars of the U.S., transmitting proceedings of the 101st 
National Convention of the Veterans of Foreign Wars of the 
United States, held in Milwaukee, Wisconsin, August 20-25, 
2000, pursuant to 36 U.S.C. 118 and 44 U.S.C. 1332.

June 18, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Delegation of Authority-Portfolio Loan Servicing 
Contractor (RIN: 2900-AK72) Received June 14, 2001, pursuant to 
5 U.S.C. 801(a)(1)(A).

June 25, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Veterans Education: Increased Allowances for the 
Educational Assistance Test Program (RIN: 2900-AK41) Received 
June 13, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

June 25, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Increase in Rates Payable Under the Montgomery GI 
Bill--Active Duty and Survivors' and Dependents' Educational 
Assistance (RIN: 2900-AK44) Received June 13, 2001, pursuant to 
5 U.S.C. 801(a)(1)(A).

June 27, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Grants to States for Construction and Acquisition 
of State Home Facilities (RIN. 2900-AJ43) Received June 22, 
2001, pursuant to 5 U.S.C. 801(a)(1)(A).

July 10, 2001:
    Letter from the General Counsel, Department of Defense, 
transmitting a draft of proposed legislation to authorize 
appropriations for fiscal year 2002 for military activities of 
the Department of Defense, to prescribe military personnel 
strengths for fiscal year 2001, and for other purposes.

July 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Payment or Reimbursement for Emergency Treatment 
Furnished at Non-VA Facilities (RIN: 2900-AK08) Received July 
9, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

July 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Rules of Practice--
Effect of Procedural Defects in Motions for Revision of 
Decisions on the Grounds of Clear and Unmistakable Error (RIN: 
2900-AK74) Received July 9, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

July 23, 2001:
    Letter from the Director, Office of Regulations Management, 
Board of Veterans' Appeals, Department of Veterans Affairs, 
transmitting the Department's final rule--Board of Veterans' 
Appeals: Rules of Practice--Notification of Representatives in 
Connection with Motions for Revision of Decisions on Grounds of 
Clear and Unmistakable Error (RIN: 2900-AJ75) Received July 16, 
2001, pursuant to 5 U.S.C. 801(a)(1)(A).

July 25, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Rules of Practice: Medical Opinions from the 
Veterans Health Administration (RIN: 2900-AK52) Received July 
18, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

July 27, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--End of the Service Members Occupational Conversion 
and Training Program (RIN: 2900-AK45) Received July 24, 2001, 
pursuant to 5 U.S.C. 801(a)(1)(A).

Aug. 1, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Montgomery GI Bill--Active Duty (RIN: 2900-AK06) 
Received July 27, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 5, 2001:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a draft of proposed legislation entitled, 
``Veterans' Benefits Act of 2001''.

Sept. 14, 2001:
    Letter from the Deputy Secretary, Department of Defense, 
transmitting a report on Outreach to Gulf War Veterans Calendar 
Years 1999 and 2000.

Sept. 20, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Certification for Eligibility for Adaptive 
Equipment for Automobiles or Other Conveyances (RIN: 2900-AK96) 
Received August 23, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 20, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Veterans Benefits Administration Nomenclature 
Changes (RIN: 2900-AK46) Received August 21, 2001, pursuant to 
5 U.S.C. 801(a)(1)(A).

Oct. 3, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Duty to Assist (RIN: 2900-AK69) Received September 
4, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Oct. 5, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Veterans' 
Benefits and Health Care Improvement Act of 2000 (RIN: 2900-
AK68) Received September 19, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

Oct. 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Rules of Practice--
Subpoenas for Filing Substantive Appeal (RIN: 2900-AK54) 
Received October 1, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Oct. 12, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Rules of Practice--
Subpoenas (RIN: 2900-AJ58) Received September 26, 2001, 
pursuant to 5 U.S.C. 801(a)(1)(A).

Nov. 1, 2001:
    Letter from the Secretaries, Departments 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 2000, 
pursuant to 38 U.S.C. 8111(f).

Nov. 6, 2001:
    Letter from the the Executive Secretary, the Disabled 
American Veterans, transmitting the 2001 National Convention 
Proceedings of the Disabled American Veterans, pursuant to 36 
U.S.C. 90i and 44 U.S.C. 1332.

Nov. 30, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
``Major'' final rule--Copayments for Medications (RIN: 2900-
AK85) Received November 30, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

Dec. 6, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Written and 
Oral Information or Statements Affecting Entitlement to 
Benefits (RIN: 2900-AK25) Received November 30, 2001, pursuant 
to 5 U.S.C. 801(a)(1)(A).

Dec. 6, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Written and 
Oral Information or Statements Affecting Entitlement to 
Benefits (RIN: 2900-AK25) Received November 27, 2001, pursuant 
to 5 U.S.C. 801(a)(1)(A).

Dec. 6, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Extension of 
the Presumptive Period for Compensation for Gulf War Veterans' 
Undiagnosed Illnesses (RIN: 2900-AK98) Received November 27, 
2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Dec. 6, 2001:
    Letter from the Director, Office of Regulations Management, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Extension of 
the Presumptive Period for Compensation for Gulf War Veterans' 
Undiagnosed Illnesses (RIN: 2900-AK98) Received November 30, 
2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Dec. 11, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Rules of Practice--
Notice of Appeal in Simultaneously Contested Claim (RIN: 2900-
AJ73) Received November 30, 2001, pursuant to 5 U.S.C. 
801(a)(1)(A).

Dec. 11, 2001:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Provision of Hospital and Outpatient Care to 
Veterans'--Enrollment Decision Level; Copayments for Inpatient 
Hospital Care and Outpatient Medical Care (RIN: 2900-AK50) 
Received November 30, 2001, pursuant to 5 U.S.C. 801(a)(1)(A).

Jan. 23, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Per Diem for Adult Day Health Care of Veterans in 
State Homes (RIN: 2900-AJ74) Received January 4, 2002, pursuant 
to 5 U.S.C. 801(a)(1)(A).

Jan. 23, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Filipino Veterans' Benefits Improvements (RIN: 
2900-AK65) Received January 4, 2002, pursuant to 5 U.S.C. 
801(a)(1)(A).

Jan. 23, 2002:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a draft bill to enhance veterans' programs and the 
ability of the Department of Veterans Affairs to administer 
them.

Jan. 23, 2002:
    Letter from the the Director, National Legislative 
Commission, The American Legion, transmitting the proceedings 
of the 83rd annual National Convention of the American Legion, 
held in San Antonio, Texas from August 28, 29, and 30, 2001 as 
well as report on the Organization's activities for the year 
preceding the Convention, pursuant to 36 U.S.C. 49.

Feb. 4, 2002:
    Letter from the Director, Department of Veterans Affairs, 
transmitting the Department's final rule--Compensated Work 
Therapy/Transitional Residences Program (RIN: 2900-AK01) 
Received January 28, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Feb. 4, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Obtaining Evidence and 
Curing Procedural Defects Without Remanding (RIN: 2900-AK91) 
Received January 17, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Feb. 4, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Civilian Health and Medical Program of the 
Department of Veterans Affairs (CHAMPVA) (RIN: 2900-AK89) 
Received January 28, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Feb. 5, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Diseases Specific to Radiation-Exposed Veterans 
(RIN: 2900-AK64) Received January 23, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Feb. 14, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Claims Based on Exposure to Ionizing Radiation 
(RIN: 2900-AK87) Received February 12, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Feb. 27, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Special Monthly Compensation for Women Veterans Who 
Lose a Breast as a Result of a Service-Connected Disability 
(RIN: 2900-AK66) Received February 13, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Mar. 4, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Loan Guaranty: Advertising and Solicitation 
Requirements (RIN: 2900-AJ86) Received February 28, 2002, 
pursuant to 5 U.S.C. 801(a)(1)(A).

Mar. 13, 2002:
    Letter from the Director, Office of Regulations Management, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Exclusion from Countable Income of Expenses Paid 
for Veteran's Last Illness Subsequent to Veteran's Death but 
Prior to Date of Death Pension Entitlement (RIN. 2900-AK84) 
Received February 28, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Apr. 9, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Information Collection Needed in VA's Flight-
Training Programs (RIN: 2900-AJ23) Received March 18, 2002, 
pursuant to 5 U.S.C. 801(a)(1)(A).

Apr. 16, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals Rules of Practice: Claim 
for Death Benefits by Survivor (RIN: 2900-AL11) Received April 
5, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Apr. 23, 2002:
    Letter from the Acting, Director Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals Title Change (RIN: 2900-
AL15) Received April 4, 2002, pursuant to 5 U.S.C. 
801(a)(1)(A).

Apr. 25, 2002:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a draft bill, ``To amend Title 38, United States 
Code, to establish a new Assistant Secretary to perform 
operations, preparedness, security, and law enforcement 
functions, and for other purposes''.

May 1, 2002:
    Letter from the General Counsel, Department of Defense, 
transmitting the Department's proposed legislation entitled the 
``National Defense Authorization Act for Fiscal Year 2003''.

May 1, 2002:
    Letter from the General Counsel, Department of Defense, 
transmitting the Department's proposed legislation relating to 
the housing of civilian teachers at Guantanamo Bay, and 
expansion of our dependent summer school program, and 
clarification of authority relating to United Nations' efforts 
to inspect and monitor Iraqi weapons systems.

May 8, 2002:
    Letter from the Acting Director Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Policy Regarding Participation in National 
Practitioner Data Bank (RIN: 2900-AJ76) Received April 22, 
2002, pursuant to 5 U.S.C. 801(a)(1)(A).

May 10, 2002:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a draft bill entitled, ``Veterans' Benefits 
Improvement Act of 2002''.

May 22, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Copayments for Inpatient Hospital Care and 
Outpatient Medical Care (RIN: 2900-AK50) Received May 2, 2002, 
pursuant to 5 U.S.C. 801(a)(1)(A).

May 23, 2002:
    Letter from the Deputy Assistant Secretary, VETS, 
Department of Labor, transmitting the Department's final rule--
Annual Report from Federal Contractors (RIN: 1293-AA07) 
Received May 10, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

June 6, 2002:
    Letter from the Secretaries, Department of Veterans Affairs 
and Department of Defense, transmitting a report for fiscal 
year 2001 regarding the implementation of the health resources 
sharing portion of the Department of Veterans Affairs and 
Department of Defense Health Resources Sharing and Emergency 
Operations
June 6, 2002:
    Letter from the Assistant Secretary for Congressional and 
Legislative Affairs, Department of Veterans Affairs, 
transmitting the Fiscal Year 2002 Veterans Equitable Resource 
Allocation (VERA).

June 13, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Increased Allowances for the Educational Assistance 
Test Program (RIN: 2900-AL02) Received May 13, 2002, pursuant 
to 5 U.S.C. 801(a)(1)(A).

June 13, 2002:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a draft bill entitled, ``Veterans' Employment, 
Business Opportunity, and Training Act of 2002''.

June 20, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Board of Veterans' Appeals: Rules of Practice-
Attorney Fee Matters (RIN: 2900-Al98) Received May 21, 2002, 
pursuant to 5 U.S.C. 801(a)(1)(A).

June 25, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Medical Benefits Package; Copayments for Extended 
Care Services (RIN: 2900-AK32) Received June 7, 2002, pursuant 
to 5 U.S.C. 801(a)(1)(A).

July 11, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Veterans Health Administration, Department of Veterans Affairs, 
transmitting the Department's final rule--Filipino Veterans 
Eligible for Hospital Care, Nursing Home Care, and Medical 
Services (RIN: 2900-AL18) Received June 20, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

July 26, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Ankylosis and limitation of motion of digits of the 
hands (RIN: 2900-AI44) Received July 24, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

July 26, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Adjudication; Fiduciary Activities--Nomenclature 
Changes (RIN: 2900-AL10) Received July 16, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

July 26, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--VA Acquisition Regulation: Construction and 
Architect-Engineer Contracts (RIN. 2900-AJ56) Received July 25, 
2002, pursuant to 5 U.S.C. 801(a)(1)(A).

July 26, 2002:
    Letter from the Deputy Secretary, Department of Defense, 
transmitting a report on Outreach to Gulf War Veterans Calendar 
Year 2001.

Sept. 4, 2002:
    Letter from the Secretary, Department of Veterans Affairs, 
transmitting a report covering those cases in which equitable 
relief was granted in calendar year 2001, pursuant to 38 U.S.C. 
210(c)(3)(B).

Sept. 4, 2002:
    Letter from the Deputy General Counsel, Veterans Benefits 
Administration, Department of Veterans Affairs, transmitting 
the Department's final rule--Duty Periods; Inactive Duty for 
Training (RIN: 2900-AL21) Received July 30, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Sept. 4, 2002:
    Letter from the Deputy General Counsel, Veterans Benefits 
Administration, Department of Veterans Affairs, transmitting 
the Department's final rule--Monetary Allowances for Certain 
Children of Vietnam Veterans; Identification of Covered Birth 
Defects (RIN: 2900-AK67) Received July 30, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Sept. 4, 2002:
    Letter from the Deputy General Counsel, Department of 
Veterans Affairs, transmitting the Department's final rule--
Board of Veterans' Appeals: Rules of Practice-Attorney Fee 
Matters; Notice of Disagreement Requirement (RIN: 2900-AL25) 
Received July 30, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 4, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Veterans Benefits Administration, Department of Veterans 
Affairs, transmitting the Department's final rule--Schedule for 
Rating Disabilities; Intervertebral Disc Syndrome (RIN: 2900-
AI22) Received August 23, 2002, pursuant to 5 U.S.C. 
801(a)(1)(A).

Sept. 4, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Regional Office and Insurance Center, Department of Veterans 
Affairs, transmitting the Department's final rule--National 
Service Life Insurance (RIN: 2900-AK43) Received August 23, 
2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 4, 2002:
    Letter from the Deputy General Counsel, Department of 
Veterans Affairs, transmitting the Department's final rule--
Schedule for rating disabilities The Skin (RIN: 2900-AF00) 
Received July 30, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 9, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Insurance Center, Department of Veterans Affairs, transmitting 
the Department's final rule--Accelerated Benefits Option for 
Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance (RIN: 2900-AJ80) Received August 13, 2002, pursuant 
to 5 U.S.C. 801(a)(1)(A).

Sept. 19, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Priorities for Outpatient Medical Services and 
Inpatient Hospital Care (RIN: 2900-AL39) Received September 17, 
2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Sept. 30, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Recoupment of Severance Pay from VA Compensation 
(RIN: 2900-AK95) Received September 25, 2002, pursuant to 5 
U.S.C. 801(a)(1)(A).

Oct. 8, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Loan Guaranty: Net Value and Pre-Foreclosure Debt 
Waivers (RIN: 2900-AG20) Received October 7, 2002, pursuant to 
5 U.S.C. 801(a)(1)(A).

Oct. 8, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Prohibition of Interment or Memorialization in 
National Cemeteries and Certain State Cemeteries Due to 
Commission of Capital Crimes (RIN: 2900-AJ77) Received October 
7, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Oct. 9, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Enrollment--Provision of Hospital and Outpatient 
Care to Veterans (RIN: 2900-AK38) Received October 7, 2002, 
pursuant to 5 U.S.C. 801(a)(1)(A).

Oct. 31, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Evidence for Accrued Benefits (RIN: 2900-AH42) 
Received October 25, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Nov. 7, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Civilian Health and Mental Program of the 
Department of Veterans Affairs (CHAMPVA) (RIN: 2900-AK89) 
Received November 1, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Nov. 8, 2002:
    Letter from the Acting Director, Office of Regulatory Law, 
Department of Veterans Affairs, transmitting the Department's 
final rule--Service Connection by Presumption of Aggravation of 
a Chronic Preexisting Disease (RIN: 2900-AL20) Received 
November 4, 2002, pursuant to 5 U.S.C. 801(a)(1)(A).

Nov. 13, 2002:
    Letter from the Director, Office of Personnel Management, 
transmitting the Office's Fiscal Year 2001 annual report on 
Veteran's Employment in the Federal Government, pursuant to 38 
U.S.C. 4214(e)(1).
             STATISTICAL DATA--WAR VETERANS AND DEPENDENTS


                          (As of October 2002)


                     American Revolution (1775-1783)

Total Servicemembers.............................................217,000
Battle Deaths......................................................4,435
Non-mortal Woundings...............................................6,188
Last Veteran, Daniel F. Bakeman, died April 5, 1869,................ 109
Last Widow, Catherine S. Damon, died November, 11, 1906,..........age 92
Last Dependent, Phoebe M. Palmeter, died April 25, 1911,..........age 90

                         War of 1812 (1812-1815)

Total Servicemembers.............................................286,730
Battle Deaths......................................................2,260
Non-mortal Woundings...............................................4,505
Last Veteran, Hiram Cronk, died May 13, 1905,....................age 105
Last Widow, Carolina King, died June 28, 1936,...............age unknown
Last Dependent, Esther A.H. Morgan, died March 12, 1946,..........age 89

                     Indian Wars (approx. 1817-1898)

Total Servicemembers........................................1 
                                                                 106,000
Battle Deaths.................................................1 
                                                                   1,000
Last Veteran, Fredrak Fraske, died June 18, 1973,................age 101

                         Mexican War (1846-1848)

Total Servicemembers..............................................78,718
Battle Deaths......................................................1,733
Other Deaths in Service...........................................11,550
Non-mortal Woundings...............................................4,152
Last Veteran, Owen Thomas Edgar, died September 3, 1929,..........age 98
Last Widow, Lena James Theobald, died June 20 1963,...............age 89
Last Dependent, Jesse G. Bivens, died November 1, 1962,...........age 94

                          Civil War (1861-1865)

Total Servicemembers (Union)...................................2,213,363
Battle Deaths (Union)............................................140,414
Other Deaths in Service (Union)..................................224,097
Non-mortal Woundings (Union).....................................281,881
Total Servicemembers (Confederate).............................1,050,000
Battle Deaths (Confederate).......................................74,524
Other Deaths in Service (Confederate)........................2 
                                                                  59,297
Non-mortal Woundings (Confederate)...............................Unknown
Last Union Veteran, Albert Woolson, died August 2, 1956,.........age 109
Last Confederate Veteran, John Salling, died March 16, 1958,.....age 112

                    Spanish-American War (1898-1902)

Total Servicemembers (Worldwide).................................306,760
Battle Deaths........................................................385
Other Deaths in Service............................................2,061
Non-mortal Woundings...............................................1,662
Last Veteran, Nathan E. Cook, died September 10, 1992,...........age 106

                         World War I (1917-1918)

Total Servicemembers (Worldwide)...............................4,734,991
Battle Deaths.....................................................53,402
Other Deaths in Service...........................................63,114
Non-mortal Woundings.............................................204,002
Living Veterans.......................................1 Less 
                                                                than 500

                        World War II (1940-1945)

Total Servicemembers (Worldwide)..............................16,112,566
Battle Deaths....................................................291,557
Other Deaths in Service..........................................113,842
Non-mortal Woundings.............................................671,846
 Living Veterans...........................................1 
                                                               4,750,000

                       Korean Conflict (1950-1953)

Total Servicemembers (worldwide)...............................5,720,000
Battle Deaths.....................................................33,686
Other Deaths (In theater)..........................................2,830
Other Deaths in Service...........................................17,730
Non-mortal Woundings.............................................103,284
 Living veterans...........................................1 
                                                               3,724,000

                         Vietnam Era (1964-1975)

Total Servicemembers (Worldwide)...............................9,200,000
Deployed to Southeast Asia.....................................3,100,000
Battle Deaths.....................................................47,410
Other Deaths (In Theater).........................................10,788
Other Deaths in Service......................................est. 32,000
Non-mortal Woundings.............................................153,303
 Living Veterans...........................................1 
                                                               8,274,000

                          Gulf War (1990-1991)

Total Servicemembers (Worldwide)...............................2,322,332
Deployed to Gulf...............................................1,136,658
Battle Deaths........................................................147
Other Deaths (In Theater)............................................235
Other Deaths in Service..............................................914
Non-mortal Woundings.................................................467
Living Veterans................................................1,852,000

                          America's Wars Total

Military Service During War...................................42,348,460
Battle Deaths....................................................650,954
Other Deaths in Service (In Theater)..............................13,853
Other Deaths in Service (Non-Theater)............................229,661
Non-mortal Woundings...........................................1,431,290
  Living War Veterans......................................3 
                                                              17,537,500
  Living Ex-Servicemembers.................................1 
                                                              25,625,000
                                ------                                


                          Veterans and Dependents on the Compensation and Pension Rolls
                                               (As of August 2002)
----------------------------------------------------------------------------------------------------------------
                                                                                                      SURVIVING
                                                                VETERANS     CHILDREN     PARENTS      SPOUSES
----------------------------------------------------------------------------------------------------------------
Civil War...................................................  ...........            7  ...........            1

Indian Wars.................................................  ...........            1  ...........  ...........

Spanish-American War........................................  ...........          203  ...........          273

Mexican Border..............................................            5           23  ...........          149

World War I.................................................           59        5,290            1       18,615

World War II................................................      585,891       17,870          884      260,593

Korean Conflict.............................................      242,994        3,848        1,085       62,645

Vietnam Era.................................................      915,537       12,055        5,219      122,727

Gulf War....................................................      416,536        9,127          364        7,460

TOTAL WARTIME...............................................    2,161,022       48,424        7,553      472,463

----------------------------------------------------------------------------------------------------------------
Source: Department of Defense, unless otherwise indicated.

Living veterans estimates are based on Census 2000 figures. Sum of veterans shown for each war period does not
  equal total number of war veterans, as approximately 1,063,000 veterans served in more than one conflict. They
  are shown for each period in which they served, but are counted only once in total war veterans figure.

Periods of service used in Census data may differ slightly from those of DOD. For compensation and pension
  purposes, the Gulf War period has not yet been terminated and includes those discharged from 1991 to date. The
  living Gulf War veterans estimate is for the peak 1990-1991 period only.

``Other Deaths in Service'' is the number of servicemembers who died while on active duty, other than those
  attributable to combat, regardless of the location or cause of death.

\1\ VA estimate as of September 30, 2002.

\2\ Does not include 26,000 to 31,000 who died in Union prisons.

\3\ Approximately 1,063,000 veterans served in more than one conflict. They are counted in each period, but only
  once in total.

        

                                
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