[House Report 110-186]
[From the U.S. Government Publishing Office]




110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-186

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



 
     MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES 
                       APPROPRIATIONS BILL, 2008

                                _______
                                

 June 11, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Edwards, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2642]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for military construction, the Department of 
Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2008, and for other purposes.

                                CONTENTS

                                                                   Page
Purpose of the Bill..............................................     2
Summary of Committee Recommendation..............................     2
Comparative Statement of New Budget Authority....................     4
Items of Interest................................................    11
Department of Defense:
    Military Construction........................................    15
    NATO Security Investment Program.............................    20
    Family Housing Construction and Operation and Maintenance....    20
    Chemical Demilitarization Construction, Defense-Wide.........    24
    Department of Defense Base Closure Account 1990..............    25
    Department of Defense Base Closure Account 2005..............    27
    Administrative Provisions....................................    32
Department of Veterans Affairs:
    Overview.....................................................    34
    Veterans Benefits Administration.............................    36
    Veterans Health Administration...............................    40
    Departmental Administration..................................    47
    Administrative Provisions....................................    53
Related Agencies:
    American Battle Monuments Commission.........................    55
    U.S. Court of Appeals for Veterans Claims....................    56
    Cemeterial Expenses, Army....................................    57
    Armed Forces Retirement Home.................................    57
General Provisions...............................................    58
Changes in Application of Existing Law...........................    59
Appropriations Not Authorized by Law.............................    62
Transfer of Funds................................................    62
Rescissions......................................................    64
Constitutional Authority.........................................    64
Comparison With the Budget Resolution............................    64
Five-Year Projection of Outlays..................................    64
Financial Assistance to State and Local Governments..............    65
Statement of General Performance Goals and Objectives............    65
Compliance with Rule XIII........................................    65
Earmarks.........................................................    65
Full Committee Votes.............................................    66
State Project List...............................................    67
Additional Views.................................................    83

                          Purpose of the Bill

    The purpose of the bill is to support our military and 
their families and provide the benefits and medical care that 
our veterans have earned for their service. This is 
accomplished through the programs funded in the bill. Programs 
that provide the facilities and infrastructure needed to house, 
train, and equip our military personnel to defend this nation; 
both in the United States and abroad; programs that provide the 
housing and military community infrastructure that sustains 
quality of life for them and their families; and programs that 
allow the military to efficiently and effectively maintain a 
right-sized base structure. The bill also funds programs to 
ensure that all of our veterans receive the benefits and 
medical care that they have earned as a result of the 
sacrifices they have made in their service to our country. 
Finally, the bill funds four related agencies that provide 
support to our nation's heroes; the American Battle Monuments 
Commission, Cemeterial Expenses, Army (Arlington Cemetery), the 
United States Court of Appeals for Veterans Claims, and the 
Armed Forces Retirement Home.

                  Summary of Committee Recommendation

    The Committee recommends $109,231,766,000 in new budget 
authority for the programs and activities funded in the bill. 
This recommendation is an increase of $18,196,417,000 above the 
fiscal year 2007 enacted level and an increase of 
$4,000,000,000 above the President's request. Included in this 
amount is $44,487,250,000 in mandatory authority and 
$64,744,516,000 in discretionary authority.
    The Committee recommendation highlights the commitment to 
our servicemembers and their families and to our veterans. The 
bill includes an unprecedented increase in the Department of 
Veterans Affairs' budget. The total funding level of 
$87,696,839,000 is a 12.8 percent increase over the fiscal year 
2007 enacted level. The Committee provides funding to increase 
support for benefits claims in order to reduce the claims 
processing backlog and length of time it takes to process an 
initial claim. The Committee provides increases for medical 
care funding for all veterans and provides additional funding 
in particular to areas that have been highlighted as the 
signature injuries of Operation Enduring Freedom (OEF) and 
Operation Iraqi Freedom (OIF). The Committee is also concerned 
with the backlog in non-recurring maintenance and has provided 
additional resources to address this issue. Finally, the 
Committee is deeply concerned by recent reports that highlight 
the difficulties many veterans have in obtaining their benefits 
and medical care and strongly urges the Department of Defense 
and the Department of Veterans Affairs to make every effort to 
partner on the development of programs that will ensure a 
seamless transition.
    The bill also includes an unprecedented increase in the 
Department of Defense budget with a total funding level of 
$21,371,944,000. The programs funded in the bill for the 
Department of Defense address the numerous challenges we have 
asked our military to accomplish simultaneously. They support 
an increase in troop strength for both the Army and Marine 
Corps, continue the cleanup of military bases closed during 
Base Realignment and Closure rounds, resource the military's 
global re-stationing plan, and ensure that our military 
personnel and their families' quality of life is preserved 
within these plans.
    The following table compares amounts recommended in the 
bill to the President's request and amounts appropriated in 
fiscal year 2007:


                           Items of Interest

    Long-term Challenges for Military Construction.--At 
$21,165,182,000, the fiscal year 2008 military construction and 
family housing request represents an unprecedented investment 
in facilities for the Armed Forces. Requests of this magnitude 
are likely for the next several years due to several major 
initiatives with military construction impacts, including:
           Base Realignment and Closure/Integrated 
        Global Presence and Basing Strategy.--The Department of 
        Defense currently estimates that $30.8 billion will be 
        required from 2006 through 2011 to complete the Base 
        Realignment and Closure (BRAC) 2005 round, which 
        includes the Integrated Global Presence and Basing 
        Strategy (IGPBS) initiative to re-station 70,000 troops 
        and their families from Europe and Korea to the United 
        States. This estimate is $8 billion higher than that 
        given by the Department just one year ago. The 
        Committee is concerned that even this increased 
        estimate is understated, due to the unrealistic 
        construction inflation estimate used by the 
        Administration;
           Growing the Force.--The Administration has 
        proposed to increase the permanent authorized end-
        strength of the active Army by 65,000 soldiers, and the 
        Marine Corps by 27,000 marines, over the next five 
        years. The Administration also has proposed to increase 
        the Army National Guard and Army Reserve by a combined 
        9,200 personnel. The Administration's fiscal year 2007 
        supplemental and fiscal year 2008 requests (including 
        the Global War on Terrorism request) include over $3.7 
        billion for these initiatives. The Committee also notes 
        the Congressional Budget Office's recent estimate that 
        up to $15.7 billion in military construction and family 
        housing will be required to completely implement 
        Growing the Force; and
           Overseas Initiatives.--The Department 
        continues to pursue a number of initiatives in basing 
        overseas. The United States reached an agreement with 
        the Government of Japan in 2006 to relocate 8,000 
        marines and 9,000 dependents from Okinawa to Guam. The 
        Japanese government has agreed to fund approximately $6 
        billion of the estimated $10 billion in construction 
        required for the move, leaving $4 billion in U.S.-
        funded construction. In addition, the Army, Navy, and 
        Air Force are pursuing an enhanced presence in Guam, 
        which could add another $4 billion or more to the cost 
        of the buildup. In Korea, the Department continues to 
        consolidate U.S. forces in hubs to the south of Seoul; 
        although the Republic of Korea will provide the largest 
        share of costs, current estimates call for $750 million 
        in additional U.S.-funded construction. In the Middle 
        East, the Department intends to continue the buildup of 
        infrastructure in Persian Gulf nations, while 
        establishing ``enduring'' locations for U.S. forces in 
        Afghanistan and Djibouti. The Department will also 
        stand up a new Africa Command in 2008, which could 
        result in new military construction requirements within 
        the African theater. Finally, the Department will 
        continue the establishment of numerous forward 
        operating sites and cooperative security locations 
        throughout the European Command, Pacific Command, 
        Central Command, and Southern Command areas of 
        responsibility. Though these sites are austere and 
        individually require relatively little in construction, 
        their cumulative requirements are significant.
    A number of other initiatives will also add to growing 
requirements for military construction. For example, the Army, 
Marine Corps, and Air Force all have large outstanding 
requirements to modernize unaccompanied housing. Special 
Operations Command estimates that $1.7 billion will be required 
through fiscal year 2013 to support growth, transformation, and 
current operations. The Air Force currently estimates that over 
$1 billion in construction is required to bed-down future 
deliveries of aircraft. The National Security Agency, Defense 
Logistics Agency, and Department of Defense Education Activity 
all have significant needs for recapitalization. The cumulative 
impact of these initiatives and requirements point to a very 
challenging five-to-ten year period in the construction and 
maintenance of military facilities. It is therefore the 
Committee's responsibility to continue exercising active 
oversight of planning and budgeting for military construction 
and family housing.
    Incremental Funding of Military Construction Projects.--The 
Committee will continue to exercise its prerogative to 
recommend incremental funding of military construction projects 
where appropriate, in accordance with authorizing legislation. 
The Committee notes that several projects submitted in the 
fiscal year 2008 request could have been requested as 
incremented projects, but for the Office of Management and 
Budget's (OMB) insistence that only those projects subjectively 
determined by OMB to have a ``major national security impact'' 
will be requested as such.
    Planning for Growing the Force.--The Committee remains 
concerned about the ability of the Army and Marine Corps to 
adequately plan and execute military construction and family 
housing requirements for the Administration's proposed end-
strength increases over the next five years, especially in the 
context of concurrent base realignment and closure actions. The 
manner in which budget requests for Growing the Force have been 
presented and justified thus far give the impression of a 
rushed, improvisational planning process. With both the fiscal 
year 2007 supplemental and fiscal year 2008 requests, the Army 
and Marine Corps have submitted large requests for unspecified 
construction and then scrambled to backfill these lump sum 
requests with specific locations and projects. Despite 
frequently expressed concerns about this process, the Committee 
has been supportive of Growing the Force, but also believes 
that an independent review of this planning is needed. The 
Committee therefore directs the General Accountability Office 
(GAO) to review the planning and budgeting process for Growing 
the Force requirements and report its findings to the Committee 
by March 15, 2008. This report may include a review of models 
and processes used to generate construction requirements and 
costs, the process for determining where Growing the Force 
projects will be located, the use of interim facilities, the 
impact of base realignment and closure requirements on Growing 
the Force, environmental impact issues, and any other 
information that GAO considers relevant.
    Impact of Growing the Force on Defense-Wide Military 
Construction.--The Committee believes that the proposal to 
increase the end-strength of the active Army and Marine Corps 
will have a substantial impact on construction requirements for 
Defense Agencies and activities that fall under the Military 
Construction, Defense-Wide account, such as the Tricare 
Management Activity, the Defense Logistics Agency, and the 
Department of Defense Education Activity. The Committee 
therefore directs the Secretary of Defense to submit a report 
to the Committee providing estimates of Defense-Wide military 
construction requirements related to Growing the Force, and the 
extent to which these requirements are incorporated in the 
current Future Years Defense Plan. This report shall be 
submitted no later than October 1, 2007.
    Potential Missile Defense Sites in Central Europe.--The 
Committee believes that the construction requirements for any 
future missile defense sites in Central Europe should be 
incorporated into the Overseas Master Plan for European 
Command, and therefore directs that the appropriate data be 
incorporated into the plan upon the conclusion of any missile 
defense basing agreements with host nations.
    Impact of BRAC on Local School Districts.--The Committee 
remains concerned by the potential impact of the 2005 Base 
Realignment and Closure (BRAC) process on school districts in 
proximity to installations that will gain large numbers of 
additional military personnel and school-age dependents. The 
Committee is concerned that the influx of new students in these 
districts due to BRAC will strain the physical and operational 
capacities of local schools, resulting in a reduced quality of 
life for both military and civilian families. The Committee 
urges the Department of Defense to work closely with local 
school districts and base commands to accurately project the 
increases in school-age population near these installations and 
help these communities plan for the necessary infrastructure 
and operating costs to minimize the impact on educational 
quality. The Committee intends to continue monitoring this 
issue and work with the Department of Defense to identify 
possible remedies for this situation.
    Facilities Sustainment, Restoration and Modernization 
(FSRM).--The Department is directed to continue describing on 
form 1390 the backlog of FSRM requirements at installations 
with future construction projects. For troop housing requests, 
form 1391 should describe any FSRM conducted in the past two 
years. Likewise, future requirements for unaccompanied housing 
at the corresponding installation should be included. 
Additionally, the forms should include English equivalent 
measurements for projects presented in metric measurement. 
Rules for funding repairs of facilities under the Operation and 
Maintenance accounts are described below:
    (1) components of the facility may be repaired by 
replacement. Such replacement can be up to current standards or 
codes;
    (2) interior arrangements and restorations may be included 
as repair;
    (3) additions, new facilities, and functional conversions 
must be performed as military construction projects. Such 
projects may be done concurrently with repair projects as long 
as the final conjunctively funded project is a complete and 
usable facility; and
    (4) the appropriate service secretary shall notify the 
appropriate committees 21 days prior to carrying out any repair 
project with an estimated cost in excess of $7,500,000.
    Increase in Use of 10 U.S.C. 2811 Authority.--The Committee 
notes a significant increase in the use of authority under 10 
U.S.C. 2811 to execute repair projects with operation and 
maintenance funds. The Committee is concerned that this 
practice is being used as a substitute for permanent military 
construction when facilities are in need of replacement. The 
Committee therefore directs the Department of Defense to submit 
a report providing the amounts executed using 10 U.S.C. 2811 
authority over the last five fiscal years for which data are 
available. The data shall be broken out by account and shall 
include the total number of individual projects executed within 
each fiscal year. This report shall be submitted no later than 
September 14, 2007.
    Funding Levels for FSRM and Base Operating Support (BOS).--
The Committee remains concerned that the services are taking 
risks in the FSRM and BOS accounts. The perennial underfunding 
of these accounts negatively affects both quality of life and 
the rate at which military facilities must be replaced. The 
Committee notes that the recently publicized problems with 
facility conditions at Walter Reed Army Medical Center and 
other military health care facilities are partly attributable 
to this long-standing practice. Even though the Department of 
Defense has set a goal of funding 95 percent of sustainment, 
all of the services' fiscal year 2008 requests for FSRM fall 
short of this mark. The respective percentages of sustainment 
funded in the services' requests are as follows: Army, 86 
percent; Navy, 83 percent; Marine Corps, 89 percent; and Air 
Force, 92 percent. Likewise, the services continue to take 
risks in the BOS account. Shortfalls in BOS have often been 
covered in the past by raiding FSRM funds. The Committee 
continues to urge the services to end this practice by fully 
funding both BOS and FSRM requirements in the budget.
    Execution Rates of Military Construction Projects.--The 
Committee notes the increased incidence of scope reductions, 
project cancellations, and bid busts for military construction 
projects in recent years. Heightened demand in the construction 
market and shortages of certain materials have driven up 
construction prices, affecting the ability of the Department of 
Defense to execute military construction projects within the 
year of funding without either scaling back requirements or 
seeking approval for reprogramming. The Committee therefore 
directs the Department to provide a report to the Committee on 
the rate of execution for military construction projects within 
the year of funding during each of the last five fiscal years 
for which data is available. The data shall be broken out by 
each military construction and family housing construction 
account included in this Act. This report shall be submitted no 
later than September 14, 2007.
    Reprogramming Criteria.--Reprogramming requests are 
required for military construction and family housing projects 
when the increase equals or exceeds 25 percent of the 
appropriated amount or $2,000,000, whichever is less.
    Future Veterans Health Care Estimates.--The Committee is 
concerned that the President's budget has not accurately 
projected the cost of health care for our veterans from fiscal 
year 2008 through fiscal year 2012. While the Veterans Health 
Administration has averaged a four percent increase in workload 
for the last five years and the Centers for Medicare and 
Medicaid Services projects that ``health spending growth is 
anticipated to remain in the seven percent range over the next 
decade,'' the current budget estimates for hospital and medical 
care for veterans for the fiscal years through 2012 are 
actually lower than the budget request for fiscal year 2008 of 
$35,304,000,000. Additionally the Committee is not confident 
that the actuarial model currently used to project health care 
demand for our Operation Enduring Freedom/Operation Iraqi 
Freedom veterans has sufficiently matured to ensure accuracy. 
For these reasons, the Committee has included a general 
provision directing the Congressional Budget Office to submit a 
report projecting the annual funding level necessary for the 
Department to continue providing health care for our veterans 
from fiscal year 2009 through fiscal year 2012.
    Seamless Transition.--Recent reviews of the health care 
programs for our servicemembers and veterans continue to 
highlight challenges in caring for our traumatic brain injury, 
polytrauma injury, blast injury, burn, mental health/PTSD, and 
amputee patients as well as continued difficulty with seamless 
transition and information sharing. With the large volume of 
Reserve and National Guard that have deployed to Operation 
Enduring Freedom and Operation Iraqi Freedom, it is critical 
that the Department of Defense and Department of Veterans 
Affairs work as partners if they are to ensure that care is 
available to this geographically dispersed population and all 
veterans. The Committee strongly urges the Department to make 
every effort to collaborate with the Department of Defense on 
programs and initiatives that serve our veterans. Additionally, 
the Committee has provided funding authority within this bill 
that highlights this issue.

                                TITLE I


                         DEPARTMENT OF DEFENSE


                     Military Construction Overview





Fiscal year 2007 enacted level........................    $6,025,242,000
Fiscal year 2008 budget request.......................     9,550,119,000
Committee recommendation in the bill..................     9,706,881,000
Comparison with:
    Fiscal year 2007 enacted level....................     3,681,639,000
    Fiscal year 2008 budget request...................       156,762,000


    Military construction accounts provide funds for new 
construction, construction improvements, planning and design, 
and host nation support. Projects funded by these accounts 
include facilities for operations, training, maintenance, 
research and development, supply, medical care, and force 
protection, as well as unaccompanied housing, utilities 
infrastructure, and land acquisition.
    The Committee recommends a total appropriation of 
$9,706,881,000 for Military Construction, an increase of 
$3,681,639,000 above the fiscal year 2007 enacted level and an 
increase of $156,762,000 above the budget request.
    Construction Inflation.--The Committee is concerned that 
the inflation adjustments used by the Administration for 
military construction and family housing are insufficient to 
keep pace with actual price inflation in the construction 
market. The adjustment used by the Administration is 2.2 
percent. According to a March 2007 report by the Association of 
General Contractors, the price of construction materials alone 
could be rising at a 6 to 8 percent rate by the end of the 
calendar year. Underestimates of construction inflation have 
real world consequences in the form of scope reductions and 
project cancellations. The Committee directs the Department of 
Defense and the Office of Management and Budget to budget more 
realistically for inflation in military construction and family 
housing.
    Report on Projects Provided for Hurricane Recovery.--The 
Committee directs the Department of Defense to provide a report 
on the execution of military construction and family housing 
projects provided for recovery from hurricanes in P.L. 108-324, 
P.L. 109-148, and P.L. 109-234. This report should include the 
award date, estimated completion date, and current working 
estimate for each project, as well as an explanation regarding 
each unawarded project. This report shall be submitted no later 
than July 31, 2007.
    Transfer of Funds to Foreign Currency Account.--The 
Committee directs the Department of Defense to submit a report 
no later than December 3, 2007, on the amounts of expired funds 
transferred from military construction and family housing 
accounts to the Foreign Currency Fluctuations, Construction, 
Defense account at the end of fiscal year 2007.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The military construction projects 
submitted by the Administration appear on pages 66 through 79. 
The Administration, in selecting these projects, goes through a 
process that is the functional equivalent of earmarking. When 
the Committee reviews the budget request, it goes through a 
process of rigorous review and may alter or modify this list to 
reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                      Military Construction, Army





Fiscal year 2007 enacted level........................    $1,973,973,000
Fiscal year 2008 budget request.......................     4,039,197,000
Committee recommendation in the bill..................     4,070,959,000
Comparison with:
    Fiscal year 2007 enacted level....................     2,096,986,000
    Fiscal year 2008 budget request...................        31,762,000


    The Committee recommends an appropriation of $4,070,959,000 
for Military Construction, Army, an increase of $2,096,986,000 
above the fiscal year 2007 enacted level and an increase of 
$31,762,000 above the budget request.

              Military Construction, Navy and Marine Corps


                    (INCLUDING RESCISSION OF FUNDS)




Fiscal year 2007 enacted level........................    $1,103,321,000
Fiscal year 2008 budget request.......................     2,104,276,000
Committee recommendation in the bill (including            2,119,276,000
 rescission)..........................................
Comparison with:
    Fiscal year 2007 enacted level....................     1,015,955,000
    Fiscal year 2008 budget request...................        15,000,000


    The Committee recommends an appropriation of $2,125,138,000 
and a rescission of $5,862,000 for Military Construction Navy 
and Marine Corps, an increase of $1,015,955,000 above the 
fiscal year 2007 enacted level and an increase of $15,000,000 
above the budget request.
    The Committee recommends the following rescissions due to 
bid savings on previously appropriated projects:

------------------------------------------------------------------------
       Public Law/location           Project title       Recommendation
------------------------------------------------------------------------
PL 108-132 (FY 2004)
    AL: Barin OLF...............  Clear Zone Land             -2,420,000
                                   Acquisition.
    NC: Camp Lejeune............  Consolidated                -3,442,000
                                   Armories.
                                 ---------------------------------------
        Total...................  ...................         -5,862,000
------------------------------------------------------------------------

    Carrier Homeporting.--The Committee understands that it is 
the Navy's publicly stated policy to maintain two nuclear 
carrier-capable homeports on the east coast. The Committee 
further understands that the Navy is in the process of drafting 
an environmental impact statement (EIS) that includes the 
evaluation of the necessary infrastructure and dredging 
required to make Naval Station Mayport the second such homeport 
in addition to Naval Station Norfolk, and that a draft EIS will 
be released in early 2008. The Committee directs the Navy to 
provide a report to the Committee identifying the military 
construction requirements and an estimated timetable for 
completion for making Mayport a nuclear carrier-capable 
homeport no later than 30 days after release of the draft EIS.
    Outlying Landing Field, North Carolina.--The Committee does 
not support the establishment of an Outlying Landing Field 
(OLF) at Site C in North Carolina. The Committee further notes 
that the defense authorization bill that passed the House on 
May 17, 2007 recommends no authorization for the fiscal year 
2008 budget request and further repeals prior authorizations 
for an OLF at Site C. The Committee is aware that the Navy is 
in the process of considering alternative sites for an OLF in 
North Carolina to serve Naval Air Station Oceana and Marine 
Corps Air Station Cherry Point. The Committee intends to 
closely monitor the Navy's progress in considering alternative 
locations in North Carolina, and expects the Navy to fully and 
fairly consider pilot safety, negative environmental impacts, 
and potential disruptive effects on surrounding communities in 
its consideration of such sites. The Committee directs the Navy 
to provide a progress report on its efforts no later than July 
31, 2007.

                    Military Construction, Air Force


                    (INCLUDING RESCISSION OF FUNDS)




Fiscal year 2007 enacted level........................    $1,080,306,000
Fiscal year 2008 budget request.......................       912,109,000
Committee recommendation in the bill (including              922,109,000
 rescission)..........................................
Comparison with:
    Fiscal year 2007 enacted level....................     (158,197,000)
    Fiscal year 2008 budget request...................        10,000,000


    The Committee recommends an appropriation of $927,428,000 
and a rescission of $5,319,000 for Military Construction, Air 
Force, a decrease of $158,197,000 below the fiscal year 2007 
enacted level and an increase of $10,000,000 above the budget 
request.
    The Committee recommends the following rescission due to 
bid savings on a previously appropriated project:

------------------------------------------------------------------------
       Public Law/location           Project title       Recommendation
------------------------------------------------------------------------
P.L. 108-324 (FY 2005)
    Greenland: Thule AB.........  Dormitory..........         -5,319,000
                                 ---------------------------------------
        Total...................  ...................         -5,319,000
------------------------------------------------------------------------

                  Military Construction, Defense-Wide


              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)




Fiscal year 2007 enacted level........................    $1,016,771,000
Fiscal year 2008 budget request.......................     1,799,336,000
Committee recommendation in the bill (including            1,799,336,000
 rescission)..........................................
Comparison with:
    Fiscal year 2007 enacted level....................       782,565,000
    Fiscal year 2008 budget request...................             - - -


    The Committee recommends an appropriation of $1,806,928,000 
and a rescission of $7,592,000 for Military Construction, 
Defense-Wide, an increase of $782,565,000 above the fiscal year 
2007 enacted level and the same as the budget request.
    The Committee recommends the following rescission from a 
Missile Defense Agency (MDA) project. The Committee notes that 
MDA has the authority to fund construction in support of 
missile defense systems with research, development, testing and 
evaluation (RDT&E) funds. The Committee directs MDA to fund 
this project under its RDT&E construction authority:

------------------------------------------------------------------------
       Public Law/location           Project title       Recommendation
------------------------------------------------------------------------
PL 110-5 (FY 2007)
    Kwajalein Atoll.............  Launch Control              -7,592,000
                                   Facility Upgrades.
                                 ---------------------------------------
        Total...................  ...................         -7,592,000
------------------------------------------------------------------------

               Military Construction, Army National Guard





Fiscal year 2007 enacted level........................      $470,871,000
Fiscal year 2008 budget request.......................       404,291,000
Committee recommendation in the bill..................       439,291,000
Comparison with:
    Fiscal year 2007 enacted level....................      (31,580,000)
    Fiscal year 2008 budget request...................        35,000,000


    The Committee recommends an appropriation of $439,291,000 
for Military Construction, Army National Guard, a decrease of 
$31,580,000 below the fiscal year 2007 enacted level and an 
increase of $35,000,000 above the budget request.

               Military Construction, Air National Guard





Fiscal year 2007 enacted level........................      $126,000,000
Fiscal year 2008 budget request.......................        85,517,000
Committee recommendation in the bill..................        95,517,000
Comparison with:
    Fiscal year 2007 enacted level....................      (30,483,000)
    Fiscal year 2008 budget request...................        10,000,000


    The Committee recommends an appropriation of $95,517,000 
for Military Construction, Air National Guard, a decrease of 
$30,483,000 below the fiscal year 2007 enacted level and an 
increase of $10,000,000 above the budget request.

                  Military Construction, Army Reserve





Fiscal year 2007 enacted level........................      $166,000,000
Fiscal year 2008 budget request.......................       119,684,000
Committee recommendation in the bill..................       154,684,000
Comparison with:
    Fiscal year 2007 enacted level....................      (11,316,000)
    Fiscal year 2008 budget request...................        35,000,000


    The Committee recommends an appropriation of $154,684,000 
for Military Construction, Army Reserve, a decrease of 
$11,316,000 below the fiscal year 2007 enacted level and an 
increase of $35,000,000 above the budget request.

                  Military Construction, Navy Reserve





Fiscal year 2007 enacted level........................       $43,000,000
Fiscal year 2008 budget request.......................        59,150,000
Committee recommendation in the bill..................        69,150,000
Comparison with:
    Fiscal year 2007 enacted level....................        26,150,000
    Fiscal year 2008 budget request...................        10,000,000


    The Committee recommends an appropriation of $69,150,000 
for Military Construction, Navy Reserve, an increase of 
$26,150,000 above the fiscal year 2007 enacted level and an 
increase of $10,000,000 above the budget request.

                Military Construction, Air Force Reserve


                    (INCLUDING RESCISSION OF FUNDS)




Fiscal year 2007 enacted level........................       $45,000,000
Fiscal year 2008 budget request.......................        26,559,000
Committee recommendation in the bill (including               36,559,000
 rescission)..........................................
Comparison with:
    Fiscal year 2007 enacted level....................       (8,441,000)
    Fiscal year 2008 budget request...................        10,000,000


    The Committee recommends an appropriation of $39,628,000 
and a rescission of $3,069,000 for Military Construction, Air 
Force Reserve, a decrease of $8,441,000 below the fiscal year 
2007 enacted level and an increase of $10,000,000 above the 
budget request.
    The Committee recommends the following rescission due to a 
cancelled project:

------------------------------------------------------------------------
       Public Law/location           Project title       Recommendation
------------------------------------------------------------------------
PL 109-114 (FY 2006):
    AK: Elmendorf AFB...........  C-17 Convert Hangar         -3,069,000
                                   for AFRC Group HQ.
                                 ---------------------------------------
        Total...................  ...................         -3,069,000
------------------------------------------------------------------------

     North Atlantic Treaty Organization Security Investment Program





Fiscal year 2007 enacted level........................      $204,789,000
Fiscal year 2008 budget request.......................       201,400,000
Committee recommendation in the bill..................       201,400,000
Comparison with:
    Fiscal year 2007 enacted level....................       (3,389,000)
    Fiscal year 2008 budget request...................             - - -


    The North Atlantic Treaty Organization Security Investment 
Program (NSIP) consists of annual contributions by NATO member 
countries. The program finances the costs of construction 
needed to support the roles of the major NATO commands. The 
investments cover facilities such as airfields, fuel pipelines 
and storage, harbors, communications and information systems, 
radar and navigational aids, and military headquarters.
    The Committee recommends an appropriation of $201,400,000 
for NSIP, a decrease of $3,389,000 below the fiscal year 2007 
enacted level and the same as the budget request.
    Occasionally, the U.S. has been forced to delay temporarily 
the authorization of projects due to shortfalls in U.S. 
obligation authority. The Committee directs the Secretary of 
Defense to notify the Committee 30 days prior to taking such 
action.

                        Family Housing Overview





Fiscal year 2007 enacted level........................    $4,021,258,000
Fiscal year 2008 budget request.......................     2,932,483,000
Committee recommendation in the bill..................     2,932,483,000
Comparison with:
    Fiscal year 2007 enacted level....................   (1,088,775,000)
    Fiscal year 2008 budget request...................             - - -


    Family housing construction accounts provide funds for new 
construction, construction improvements, the Federal government 
costs for family housing privatization projects, and planning 
and design. The operation and maintenance accounts provide 
funds to pay for maintenance and repair, furnishings, 
management, services, utilities, leasing, interest, mortgage 
insurance, and miscellaneous expenses.
    The Committee recommends a total appropriation of 
$2,932,483,000 for the family housing construction and 
operation and maintenance accounts, a decrease of 
$1,088,775,000 below the fiscal year 2007 enacted level and the 
same as the budget request.
    Family Housing Privatization Progress Reports.--The 
Committee directs the Department of Defense to continue 
submitting semiannual progress reports on the family housing 
privatization program. The Committee further directs the 
Department to include in each future report a breakout of 
military tenant satisfaction rates by project.
    Inclusion of Child Development Centers in Family Housing 
Privatization Projects.--Senior non-commissioned officers of 
the military services have annually identified child care as 
one of the most pressing concerns of enlisted personnel and 
their families in hearings before the Committee. The Committee 
notes that 10 U.S.C. 2881 allows for the acquisition or 
construction of ancillary facilities as part of military 
housing privatization projects. These include facilities for 
``any nonappropriated fund activity of the Department of 
Defense for the morale, welfare, and recreation of members of 
the Armed Forces,'' which would include child care and 
development. The Committee therefore directs the Department of 
Defense and the services to actively seek the inclusion of 
child care and development facilities within housing 
privatization projects wherever financially feasible.
    Foreign Currency Savings and Sub-Account Transfers.--The 
Committee directs that savings from foreign currency re-
estimates be used to maintain existing family housing units. 
The Comptroller is directed to report to the Committee on how 
these savings are allocated by December 3, 2007. In addition, 
only 10 percent of funds made available to the construction and 
operation and maintenance sub-accounts may be transferred 
between the sub-accounts. Such transfers must be reported to 
the Committee within 30 days of such action.
    Leasing Reporting Requirements.--The Secretary of Defense 
is directed to report to the Committee quarterly on the details 
of all new or renewed domestic leases entered into during the 
previous quarter that exceed the cost threshold set by 10 
U.S.C. 2828(b)(2), including certification that less expensive 
housing was not available for lease. For foreign leases, the 
Department is directed to: (1) perform an economic analysis on 
all new leases or lease/contract agreements where more than 25 
units are involved; (2) report the details of new or renewed 
lease agreements that exceed the cost threshold set by 10 
U.S.C. 2828(e)(1) 21 days prior to entering into such an 
agreement; and (3) base leasing decisions on the economic 
analysis.
    Reprogramming Criteria.--The reprogramming criteria that 
apply to military construction projects (25 percent of the 
funded amount or $2,000,000, whichever is less) apply to new 
housing construction projects and improvement projects over 
$2,000,000 as well.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The family housing construction projects 
submitted by the Administration appear on pages 79 through 81. 
The Administration, in selecting these projects, goes through a 
process that is the functional equivalent of earmarking. When 
the Committee reviews the budget request, it goes through a 
process of rigorous review and may alter or modify this list to 
reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                   Family Housing Construction, Army





Fiscal year 2007 enacted level........................      $579,000,000
Fiscal year 2008 budget request.......................       419,400,000
Committee recommendation in the bill..................       419,400,000
Comparison with:
    Fiscal year 2007 enacted level....................     (159,600,000)
    Fiscal year 2008 budget request...................             - - -


    The Committee recommends an appropriation of $419,400,000 
for Family Housing Construction, Army, a decrease of 
$159,600,000 below the fiscal year 2007 enacted level and the 
same as the budget request. The appropriation includes 
$52,000,000 to construct new family housing units, $365,400,000 
to improve or privatize existing units, and $2,000,000 for 
planning and design. This funding level supports the 
elimination of 10,023 inadequate family housing units.

             Family Housing Operation and Maintenance, Army





Fiscal year 2007 enacted level........................      $671,311,000
Fiscal year 2008 budget request.......................       742,920,000
Committee recommendation in the bill..................       742,920,000
Comparison with:
  Fiscal year 2007 enacted level......................        71,609,000
  Fiscal year 2008 budget request.....................             - - -


    The Committee recommends an appropriation of $742,920,000 
for Family Housing Operation and Maintenance, Army, an increase 
of $71,609,000 above the fiscal year 2007 enacted level and the 
same as the budget request.

           Family Housing Construction, Navy and Marine Corps





Fiscal year 2007 enacted level........................      $305,000,000
Fiscal year 2008 budget request.......................       298,329,000
Committee recommendation in the bill..................       298,329,000
Comparison with:
  Fiscal year 2007 enacted level......................       (6,671,000)
  Fiscal year 2008 budget request.....................             - - -


    The Committee recommends an appropriation of $298,329,000 
for Family Housing Construction, Navy and Marine Corps, a 
decrease of $6,671,000 below the fiscal year 2007 enacted level 
and the same as the budget request. The appropriation includes 
$57,167,000 to construct new family housing units, $237,990,000 
to improve or privatize existing units, and $3,172,000 for 
planning and design. The Navy and Marine Corps currently 
project to have all contracts in place by the end of fiscal 
year 2007 to eliminate all family housing units defined as 
inadequate.

    Family Housing Operation and Maintenance, Navy and Marine Corps





Fiscal year 2007 enacted level........................      $505,472,000
Fiscal year 2008 budget request.......................       371,404,000
Committee recommendation in the bill..................       371,404,000
Comparison with:......................................
  Fiscal year 2007 enacted level......................     (134,068,000)
  Fiscal year 2008 budget request.....................             - - -


    The Committee recommends an appropriation of $371,404,000 
for Family Housing Operation and Maintenance, Navy and Marine 
Corps, a decrease of $134,068,000 below the fiscal year 2007 
enacted level and the same as the budget request.

                 Family Housing Construction, Air Force





Fiscal year 2007 enacted level........................    $1,150,000,000
Fiscal year 2008 budget request.......................       362,747,000
Committee recommendation in the bill..................       362,747,000
Comparison with:
  Fiscal year 2007 enacted level......................     (787,253,000)
  Fiscal year 2008 budget request.....................             - - -


    The Committee recommends an appropriation of $362,747,000 
for Family Housing Construction, Air Force, a decrease of 
$787,253,000 below the fiscal year 2007 enacted level and the 
same as the budget request. The appropriation includes 
$56,275,000 to construct new family housing units, $294,262,000 
to improve or privatize existing units, and $12,210,000 for 
planning and design. This funding level supports the 
elimination of 3,704 inadequate family housing units.

          Family Housing Operation and Maintenance, Air Force





Fiscal year 2007 enacted level........................      $750,000,000
Fiscal year 2008 budget request.......................       688,335,000
Committee recommendation in the bill..................       688,335,000
Comparison with:
    Fiscal year 2007 enacted level....................      (61,665,000)
    Fiscal year 2008 budget request...................             - - -


    The Committee recommends an appropriation of $688,335,000 
for Family Housing Operation and Maintenance, Air Force, a 
decrease of $61,665,000 below the fiscal year 2007 enacted 
level and the same as the budget request.

               Family Housing Construction, Defense-Wide





Fiscal year 2007 enacted level........................        $9,000,000
Fiscal year 2008 budget request.......................             - - -
Committee recommendation in the bill..................             - - -
Comparison with:
    Fiscal year 2007 enacted level....................       (9,000,000)
    Fiscal year 2008 budget request...................             - - -


    The Committee does not recommend an appropriation for 
Family Housing Construction, Defense-Wide. This is a decrease 
of $9,000,000 below the fiscal year 2007 enacted level and the 
same as the budget request.

         Family Housing Operation and Maintenance, Defense-Wide





Fiscal year 2007 enacted level........................       $49,000,000
Fiscal year 2008 budget request.......................        48,848,000
Committee recommendation in the bill..................        48,848,000
Comparison with:
    Fiscal year 2007 enacted level....................         (152,000)
    Fiscal year 2008 budget request...................             - - -


    The Committee recommends an appropriation of $48,848,000 
for Family Housing Operation and Maintenance, Defense-Wide, a 
decrease of $152,000 below the fiscal year 2007 enacted level 
and the same as the budget request.

         Department of Defense Family Housing Improvement Fund





Fiscal year 2007 enacted level........................        $2,475,000
Fiscal year 2008 budget request.......................           500,000
Committee recommendation in the bill..................           500,000
Comparison with:
    Fiscal year 2007 enacted level....................       (1,975,000)
    Fiscal year 2008 budget request...................             - - -


    The Family Housing Improvement Fund (FHIF) is authorized by 
section 2883, title 10, United States Code, and provides the 
Department of Defense with authority to finance joint ventures 
with the private sector to revitalize and to manage the 
Department's housing inventory. The statute authorizes the 
Department to use limited partnerships, make direct and 
guaranteed loans, and convey Department-owned property to 
stimulate the private sector to increase the availability of 
affordable, quality housing for military personnel.
    The FHIF is used to build or renovate family housing by 
mixing or matching various legal authorities, and by utilizing 
private capital and expertise to the maximum extent possible. 
The fund is administered as a single account without fiscal 
year limitations and contains appropriated and transferred 
funds from family housing construction accounts.
    The Committee recommends an appropriation of $500,000 for 
the Department of Defense Family Housing Improvement Fund, a 
decrease of $1,975,000 below the fiscal year 2007 enacted level 
and the same as the budget request.

          Chemical Demilitarization Construction, Defense-Wide


                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2007 enacted level........................      $131,000,000
Fiscal year 2008 budget request.......................        86,176,000
Committee recommendation in the bill..................        86,176,000
Comparison with:
    Fiscal year 2007 enacted level....................      (44,824,000)
    Fiscal year 2008 budget request...................             - - -


    The Chemical Demilitarization Construction, Defense-Wide 
account provides funds for the design and construction of full-
scale chemical disposal facilities and associated projects to 
upgrade installation support facilities and infrastructures 
required to support the Chemical Demilitarization program.
    The Committee recommends an appropriation of $86,176,000 
for Chemical Demilitarization Construction, Defense-Wide, a 
decrease of $44,824,000 below the fiscal year 2007 enacted 
level and the same as the budget request.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The table below is a breakout of the 
chemical demilitarization construction projects submitted by 
the Administration.The Administration, in selecting these 
projects, goes through a process that is the functional 
equivalent of earmarking. When the Committee reviews the budget 
request, it goes through a process of rigorous review and may 
alter or modify this list to reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                            FY 2008
                       Location                          administration
                                                            request
------------------------------------------------------------------------
Colorado: Pueblo Chem-Agent Disposal Pilot Plant.....             35,159
Kentucky: Blue Grass Chem-Agent Disposal Pilot Plant.             51,017
------------------------------------------------------------------------

               Base Realignment and Closure Account 1990





Fiscal year 2007 enacted level........................      $252,279,000
Fiscal year 2008 budget request.......................       220,689,000
Committee recommendation in the bill..................       270,689,000
Comparison with:
    Fiscal year 2007 enacted level....................        18,410,000
    Fiscal year 2008 budget request...................        50,000,000


    The Committee recommends an appropriation of $270,689,000 
for the Base Realignment and Closure Account 1990, an increase 
of $18,410,000 above the fiscal year 2007 enacted level and an 
increase of $50,000,000 above the budget request. The Committee 
is aware that there is a backlog of remaining requirements, 
particularly for cleanup of unexploded ordnance, for closed 
installations dating back to the 1988 BRAC round. The Committee 
is concerned by the slow pace of progress in remediating these 
properties and directs the Department of Defense to make 
funding for previous BRAC rounds a higher priority.
    Reprogramming Guidelines for BRAC 1990.--The Committee 
directs the Department of Defense to seek a prior approval 
reprogramming when the amount to be obligated for a site or 
closure package exceeds the amount programmed in the fiscal 
year 2008 budget request (as identified by the following table) 
by 20 percent or $2,000,000, whichever is less. These 
guidelines shall not apply to sites or closure packages for 
which the programmed amount is less than $2,000,000.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The table below is an illustrative list 
of base realignment and closure construction projects submitted 
by the Administration. The Administration, in selecting these 
projects, goes through a process that is the functional 
equivalent of earmarking. When the Committee reviews the budget 
request, it goes through a process of rigorous review and may 
alter or modify this list to reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                            FY 2008
            BRAC location/closure package                administration
                                                            request
------------------------------------------------------------------------
Army
    Alabama..........................................                103
    ARL Woodbridge...................................                135
    Cameron Station..................................                 73
    Fort Chaffee.....................................                 30
    Fort Devens......................................              1,237
    Fort McClellan...................................                659
    Fort Meade.......................................              2,491
    Fort Monmouth....................................                 41
    Fort Ord.........................................             24,620
    Fort Ritchie.....................................                436
    Fort Wingate.....................................             10,163
    Jefferson........................................              3,923
    Letterkenny Army Depot...........................                 53
    Lexington........................................                110
    Minor Fort Dix...................................                 32
    Minor FORSCOM....................................                 60
    Minor Fort Lewis.................................              2,003
    Oakland Army Base................................                  2
    Pueblo...........................................              6,212
    Red River Army Depot.............................                239
    Sacramento.......................................                836
    Savanna Army depot...............................              4,952
    Seneca Army depot................................                737
    Stratford Engine Plant...........................                660
    Tooele...........................................                401
    Umatilla.........................................                493
    Vint Hill Farms..................................                179
    Defense Distribution Depot Ogden.................                906
    Army Program Managament..........................             11,930
                                                      ------------------
        Subtotal, Army...............................             73,716
NAVY
    Adak.............................................              9,279
    Agana............................................                838
    Alameda..........................................             30,658
    Barbers Point....................................                 26
    Cecil Field......................................              1,452
    Charleston Naval Supply Center...................                 53
    Dallas...........................................                841
    Davisville.......................................              1,617
    El Toro..........................................             10,898
    Key West.........................................                  6
    Long Beach Naval Shipyard........................                265
    Long Beach Naval Station.........................                775
    Louisville.......................................                 54
    Mare Island......................................             11,254
    Memphis..........................................                646
    Moffett Field....................................              2,725
    Oakland FISC.....................................              4,850
    Orlando USRD.....................................                116
    Orlando NTC......................................                565
    Philadelphia Naval Station.......................                 34
    Roosevelt Roads..................................             16,321
    San Diego NTC....................................              2,768
    San Francisco PWC................................              1,155
    South Weymouth...................................              3,854
    Treasure Island..................................              6,765
    Treasure Island--Hunters Point Annex.............             36,909
    Trenton..........................................                600
    Tustin...........................................              1,648
    Warminster.......................................                755
    White Oak........................................                300
    Various Locations................................             23,415
    Planning, Design, and Management.................              7,315
    Unspecified......................................                  1
    Land Sales Revenue...............................           -178,758
                                                      ------------------
        Subtotal, Navy...............................                  0
AIR FORCE
    Kelly AFB........................................              9,275
    McClellan AFB....................................             29,931
    Reese AFB........................................              7,071
    Program Management '95...........................             42,332
    Program Management '93...........................              9,104
    Program Management '91...........................             45,546
    Unspecified......................................                  1
                                                      ------------------
        Subtotal, Air Force..........................            143,260
DEFENSE LOGISTICS AGENCY
    Memphis..........................................              3,196
    Philadelphia DPSC................................                517
                                                      ------------------
        Subtotal, DLA................................              3,713
------------------------------------------------------------------------

               Base Realignment and Closure Account 2005





Fiscal year 2007 enacted level........................    $2,489,421,000
Fiscal year 2008 budget request.......................     8,174,315,000
Committee recommendation in the bill..................     8,174,315,000
Comparison with:
    Fiscal year 2007 enacted level....................     5,684,894,000
Fiscal year 2008 budget request.......................             - - -


    The Committee recommends an appropriation of $8,174,315,000 
for the Base Realignment and Closure Account 2005, an increase 
of $5,684,894,000 above the fiscal year 2007 enacted level and 
the same as the budget request. This funding supports the most 
recent base realignment and closure round which affects over 
800 locations across the nation through 24 major closures, 24 
major realignments, and 765 other actions.
    BRAC and Inflation Estimates.--The Committee is deeply 
concerned that the costs for the 2005 BRAC program remain 
underestimated by the Department of Defense, in part due to 
unrealistic inflation estimates. The Committee is especially 
concerned that the business plans upon which BRAC construction 
estimates are based were formed using outdated pricing 
guidelines and area cost factors. The Committee therefore 
directs the Secretary of Defense to submit a report on the 
application of DOD facilities pricing guides and area cost 
factors to BRAC business plans. This report shall identify what 
year's pricing guide and area cost factor was applied to the 
construction estimates included in each business plan, and 
indicate the additional cost that would be incurred if all 
business plans were updated to reflect the most recent pricing 
guide and area cost factors. This report shall be submitted no 
later than October 1, 2007.
    Prior Notice of Significant Changes to the BRAC 2005 
program.--The Committee directs the Department of Defense to 
notify the Committee 14 days in advance of obligating funds to 
implement a recommendation of the 2005 Base Realignment and 
Closure Commission if the amount to be obligated exceeds the 
amount programmed for that recommendation in the 2008 budget 
request (as identified by the following table) by 20 percent or 
$10,000,000, whichever is less. These guidelines shall not 
apply to recommendations for which the programmed amount is 
less than $5,000,000.
    Reserve Centers.--The Committee requests the Secretary of 
Defense to submit a report no later than February 1, 2008 on 
excess property at reserve centers realigned in the 2005 BRAC 
round. For each such reserve center, the report shall identify 
and describe unused acreage and any improvements thereon, 
provide an estimate of the fair market value (if available) of 
such property, identify the authorities under which such 
property may be transferred to a non-Federal entity, and 
indicate any potential impact of reducing excess property on 
operations or training.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The table below is an illustrative list 
of base realignment and closure construction projects submitted 
by the Administration. The Administration, in selecting these 
projects, goes through a process that is the functional 
equivalent of earmarking. When the Committee reviews the budget 
request, it goes through a process of rigorous review and may 
alter or modify this list to reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                            FY 2008
                 BRAC recommendation                     administration
                                                            request
------------------------------------------------------------------------
ARMY
    2--Fort Gillem...................................             13,194
    3--Fort McPherson................................              3,327
    4--Fort Bragg....................................             56,164
    5--Fort Monmouth.................................            268,298
    6--Fort Hood.....................................            220,369
    7--Red River.....................................             12,352
    8--Fort Monroe...................................              2,000
    9--Maneuver Training.............................            269,119
    10--Operational Army (IGPBS).....................            756,891
    11--RC Alabama...................................             42,225
    12--RC Arizona...................................              4,090
    13--RC Arkansas..................................             44,592
    14--RC California................................             23,900
    15--RC Connecticut...............................              6,403
    18--RC Hawaii....................................             49,201
    19--RC Illinois..................................             51,610
    20--RC Indiana...................................             28,605
    21--RC Iowa......................................                285
    22--RC Kentucky..................................              4,669
    23--RC Louisiana.................................             40,701
    24--RC Maryland..................................              2,074
    25--RC Massachusetts.............................             14,820
    27--RC Minnesota.................................             17,829
    28--RC Missouri..................................             30,263
    29--RC Montana...................................             19,412
    30--RC Nebraska..................................              3,055
    33--RC New Mexico................................              3,379
    34--RC New York..................................             98,965
    37--RC Ohio......................................             55,795
    38--RC Oklahoma..................................            149,338
    40--RC Pennsylvania..............................             57,930
    44--RC Texas.....................................            140,242
    45--RC Vermont...................................             23,000
    46--RC Washington................................             25,372
    48--RC Wisconsin.................................                  6
    49--RC Wyoming...................................             42,057
    50--Single Drill Sergeant School.................             26,610
    51--US Army Garrison (Selfridge).................              5,361
    52--USAR New England.............................              5,056
    53--USAR Northeast...............................             69,597
    54--USAR Northwest...............................             10,951
    55--USAR Southeast...............................              1,259
    56--USAR Southwest...............................              8,443
    57--MCLB Barstow.................................              2,450
    73--Army/Navy/USMC Reserve Centers...............             30,100
    121--Combat Service Support Centers..............            413,221
    122--JCTR Transmgmt..............................             13,400
    124--JCTR Religious Training.....................             11,600
    126--Net Fires Center............................            106,768
    129--Co-Loc Misc AF & NG Lease...................              1,472
    131--Co-Loc Intel Act............................                276
    137--Consolidate CPOs............................                 96
    138--Consolidate Correctional Facilities.........              8,254
    142--Consolidate TRANSCOM........................              1,100
    143--Consolidate Act-Rsv P&R Centers.............            112,794
    144--Joint Mobilization Sites....................                 71
    148--Re-Ioc Army HQ & FOA........................             30,711
    151--River Bank AAP..............................             11,127
    152--Sierra AD...................................             15,732
    153--Rock Island Arsenal.........................             17,918
    154--Newport Chemical Depot......................                800
    155--Kansas AAP..................................             25,482
    157--Mississippi AAP.............................                706
    160--Umatilla Chemical Depot.....................              1,800
    162--Lone Star AAP...............................             39,000
    163--Deseret Chemical Depot......................              1,000
    169--Walter Reed.................................             57,730
    173--Convert Inpatient Services..................                921
    174--JCOE for Chem-Bio...........................             60,157
    175--Commodity Management Privatization..........              1,006
    176--Depot Level Repairables.....................             29,653
    183--Consolidate Sea Vehicle.....................              1,516
    187--Defense Research Led Lab....................              6,008
    Army Program Management..........................            304,068
                                                      ------------------
        Subtotal, Army...............................          4,015,746
NAVY
    63--NSCS Athens..................................              4,657
    62--NAS Atlanta..................................              8,734
    57--MCLB Barstow.................................              4,087
    65--NAS Brunswick................................             46,272
    59--NWS Seal Beach DET Concord...................             12,896
    71--NS Ingleside & NAS Corpus Christi............             49,214
    66--MCSA Kansas City.............................                 90
    64--NSA New Orleans..............................             30,525
    70--NS Newport...................................                116
    67--NS Pascagoula................................              1,169
    61--OTC Pensacola................................                 91
    68--NAS JRB Willow Grove & Cambria RAP...........             87,215
    72--Engineering Field Division/Activity..........             25,522
    73--Marine Corps Reserve Centers.................              8,737
    76--Navy Reserve Centers.........................              8,931
    123--Culinary Training...........................                 10
    125--JSF Flight Training Site....................                254
    124--Religious Training & Education..............                 35
    137--Consolidated CPOs...........................                 99
    138--Consolidated Correctional Facilities........                206
    131--Co-Ioc MILDEP Investigation Agencies........            143,132
    146--Joint Basing................................             11,770
    149--Re-Ioc Misc Dept of Navy....................              2,025
    165--Fleet Readiness Centers.....................             20,137
    166--Naval Shipyard Detachments..................             11,110
    165--Ship Intermediate Maintenance Activity                   19,450
     Norfolk.........................................
    170--Brooks City Base............................                  8
    173--Convert Inpatient Services to Clinics.......              1,205
    174--Joint Chem, Bio, and Medical................             21,095
    172--San Antonio Regional Medical Center.........             10,744
    169--Walter Reed.................................                720
    175--Commodity Management Privatization..........                 36
    176--Depot Level Repairables.....................                311
    177--Supply, Storage & Distribution Management...                 13
    188--Fixed Wing Air Platform.....................              8,804
    186--Integrated Weapons & Armaments..............                119
    181--Maritime C4ISR..............................              1,181
    184--Naval Integrated Weapons & Armaments........            140,762
    189--Rotary Wing Platform........................                521
    Navy Planning, Design, and Management............             47,648
    Various Locations................................              4,044
                                                      ------------------
        Subtotal, Navy...............................            733,695
AIR FORCE:
    3A--Fort McPherson...............................             25,000
    68--NAS JRB Willow Grove & Cambria RAP...........                123
    79--Eielson AFB, Moody AFB, & Shaw AFB...........              7,055
    80--Kulis AGS / Elmendorf AFB....................             26,790
    81--Fort Smith AGS & Luke AFB....................                 12
    82--Beale AFB & Selfridge ANGB...................             10,962
    83--March ARB....................................              5,184
    84--Onizuka AFS..................................              1,974
    85--Bradley lAP AGS, Barnes AGS, Selfridge ANGB,               5,811
     Shaw AFB, Martin State AGS......................
    87--Robins AFB...................................              2,102
    88--Boise Air Terminal AGS.......................                678
    89--Mountain Home AFB, Nellis AFB, & Elmendorf                 3,356
     AFB.............................................
    90--Capital AGS & Hulman RAP AGS.................              3,482
    91--New Orleans ARS..............................              3,312
    92--Andrews AFB, Will Rogers AGS, Tinker AFB,                  1,613
     Randolph AFB....................................
    93--Martin State AGS.............................                656
    94--Otis ANGB, Lambert-St Louis lAP AGS, Atlantic             39,871
     City AGS........................................
    95--W.K. Kellogg AGS.............................              1,109
    97--Key Field AGS................................                164
    98--Great Falls lAP AGS..........................              3,868
    100--Cannon AFB..................................                929
    101--Niagara Falls ARS...........................              2,561
    103--Pope AFB, Pittsburgh lAP ARS, Yeager AGS....             38,607
    104--Grand Forks AFB.............................             53,613
    105--Hector lAP AGS..............................              1,639
    106--Mansfield Lahm MAP AGS......................              6,216
    107--Springfield-Beckley MAP AGS.................                287
    108--Portland lAP AGS............................             10,874
    110--Nashville lAP AGS...........................              7,769
    111--Ellington Field AGS.........................              4,651
    112--Lackland AFB................................                520
    113--Hill AFB, Edwards AFB, Mountain Home AFB,                 6,997
     Luke AFB, Nellis AFB............................
    115--Richmond AGS, Des Moines lAP AGS............              3,074
    116--Fairchild AFB...............................                346
    117--General Mitchell ARS........................                143
    118--Air Force Logistics Support Centers.........              1,330
    119--F100 Engine Centralized Inter Repair                        387
     Facilities......................................
    123--JOINT COE for Culinary Training.............                300
    124--JOINT COE for Religious Training and                         10
     Education.......................................
    125--JSF Initial Joint Training Site.............             43,075
    128--Undergrad Pilot and Navigator Training......             58,882
    129--Co-Ioc Misc AF & NG Lease...................             34,810
    137C--Consolidated CPOs..........................             11,644
    142--Consolidate TRANSCOM........................             86,272
    143B--Consolidate/Co-Ioc Recruiting Centers......              9,022
    146--Joint Basing................................              3,697
    147--Air Force Real Property Agency..............              4,107
    170--Brooks City Base............................            239,454
    172--San Antonio Regional Medical Center.........            227,937
    173F--Convert Inpatient Services (MacDill).......                 60
    173H--Convert Inpatient Services (Scott).........                 70
    175--Commodity Management Privatization..........              1,442
    176--Depot Level Repairables.....................             14,595
    177--Supply, Storage, and Distribution Management                707
    187--Defense Research Led Lab....................             85,476
    188A--Centers for Fixed Wing RDT&E...............              2,289
    195--Galena FOL..................................              1,391
    Program Management BRAC 05.......................             75,507
                                                      ------------------
        Subtotal, Air Force..........................          1,183,812
COUNTERINTELLIGENCE FIELD ACTIVITY:
    131--Co-Ioc Investigative Agencies--West Peterson              2,779
DEFENSE COMMISSARY AGENCY:
    139--DECA Fort Lee...............................             31,530
DEFENSE CONTRACT MANAGEMENT AGENCY:
    133--Co-Ioc Misc OSD Leased Loc..................              4,000
DEFENSE FINANCE & ACCOUNTING SERVICE:
    145--Close/Realign DFAS Sites....................            129,152
DEFENSE INFORMATION SYSTEMS AGENCY:
    140--Realign Arlington Service Center............              1,749
    140--Move Sky IV and V to Fort Meade.............              6,120
    140--Construct Facility at Fort Meade............            267,236
    140--Realign DJC2 to Fort Meade..................                437
    140--Realign JTRS to Fort Meade..................                437
                                                      ------------------
        Subtotal, DISA...............................            275,979
DEFENSE INTELLIGENCE AGENCY:
    130--Co-loc MILDEP Adjudication..................              1,315
    167--Bolling AFB/Crystal Park 5..................             41,000
                                                      ------------------
        Subtotal, DIA................................             42,315
DEFENSE LOGISTICS AGENCY:
    175--Commodity Management Privatization..........              5,600
    176--Procurement & Item Management...............             54,918
    177--Supply, Storage, and Distribution Management            153,182
                                                      ------------------
        Subtotal, DLA................................            213,700
DEFENSE SECURITY SERVICE:
    130--Fort Meade..................................                582
    131--Quantico....................................              3,503
                                                      ------------------
        Subtotal, DSS................................              4,085
DEFENSE THREAT REDUCTION AGENCY:
    174--Aberdeen Proving Ground.....................              1,750
MISSILE DEFENSE AGENCY:
    134--Co-loc Missile and Space Agencies...........            103,219
NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY:
    168--NGA.........................................            438,880
NATIONAL SECURITY AGENCY:
    130--Fort Meade..................................              2,831
TRICARE MANAGEMENT ACTIVITY-DHP:
    169--Walter Reed.................................            434,200
    172--San Antonio Regional Medical Center.........            226,816
                                                      ------------------
        Subtotal, TMA................................            661,016
WASHINGTON HEADQUARTERS SERVICE:
    133--Co-Ioc 4th Estate WHS.......................            326,051
    130--Consolidate Adjudication--WHS...............              3,264
    130--Consolidate Adjudication--WHS...............                490
    137--Co-Ioc CPOs to Columbus.....................                 21
                                                      ------------------
        Subtotal, WHS................................            329,826
------------------------------------------------------------------------

                       Administrative Provisions

    The bill includes 28 provisions that were included in the 
fiscal year 2006 enacted appropriations bill. The bill also 
includes one new provision proposed by the Administration. This 
provision was included in the fiscal year 2007 House passed 
appropriations bill. Finally, the bill includes one new 
provision not proposed by the Administration. The 
administrative provisions included in the bill are as follows:
    Section 101 prohibits the use of funds for payments under a 
cost-plus-a-fixed-fee contract for construction where cost 
estimates exceed $25,000. An exception for Alaska is provided.
    Section 102 permits the use of construction funds for the 
hire of passenger motor vehicles.
    Section 103 permits funds to be expended on the 
construction of defense access roads under certain 
circumstances.
    Section 104 prohibits construction of new bases in the 
United States without a specific appropriation.
    Section 105 limits the use of funds for the purchase of 
land or land easements that exceed 100 percent of value except 
under certain conditions.
    Section 106 prohibits the use of funds to acquire land, 
prepare sites, or install utilities for family housing except 
housing for which funds have been appropriated.
    Section 107 limits the use of minor construction funds to 
be transferred or relocated from one installation to another.
    Section 108 prohibits the procurement of steel unless 
American producers, fabricators, and manufacturers have been 
allowed to compete.
    Section 109 prohibits the use of funds to pay real property 
taxes in foreign nations.
    Section 110 prohibits the use of funds to initiate a new 
installation overseas without prior notification.
    Section 111 establishes a preference for American 
architectural and engineering services where the services are 
in Japan, NATO member countries, and countries bordering the 
Arabian Gulf. The Administration proposed to delete this 
provision.
    Section 112 establishes a preference for American 
contractors for military construction in the United States 
territories and possessions in the Pacific and on Kwajalein 
Atoll, or in countries bordering the Arabian Gulf, except bids 
by Marshallese contractors for military construction on 
Kwajalein Atoll.
    Section 113 requires the Secretary of Defense to give prior 
notice to Congress of military exercises where construction 
costs, either temporary or permanent, exceed $100,000. The 
Administration proposed to delete this provision.
    Section 114 limits obligations to no more than 20 percent 
during the last two months of the fiscal year. The 
Administration proposed to delete this provision.
    Section 115 allows funds appropriated in prior years to be 
used for new projects authorized during the current session of 
Congress.
    Section 116 allows the use of expired or lapsed funds to 
pay the cost of supervision for any project being completed 
with lapsed funds.
    Section 117 provides that funds for military construction 
projects are available until the end of the fourth fiscal year 
following the fiscal year in which funds are appropriated, 
subject to certain conditions.
    Section 118 requires the Secretary of Defense to report 
annually on actions taken during the current fiscal year to 
encourage other member nations of NATO, Japan, Korea, and 
United States allies bordering the Arabian Gulf to assume a 
greater share of defense costs. The Administration proposed to 
delete this provision.
    Section 119 allows for the transfer of proceeds from ``Base 
Realignment and Closure Account, Part I'' to the continuing 
Base Realignment and Closure accounts.
    Section 120 allows for the transfer of funds from Family 
Housing, Construction accounts to the Department of Defense 
Family Housing Improvement Fund and funds from Military 
Construction accounts to the Department of Defense Military 
Unaccompanied Housing Improvement Fund.
    Section 121 prohibits the obligation of funds for 
Partnership for Peace Programs in the New Independent States of 
the former Soviet Union. The Administration proposed to delete 
this provision.
    Section 122 requires the Secretary of Defense to notify 
Congressional Committees sixty days prior to issuing a 
solicitation for a contract with the private sector for 
military family housing. The Administration proposed to delete 
this provision.
    Section 123 provides transfer authority to the Homeowners 
Assistance Program.
    Section 124 requires that funds in this title be the sole 
source of all operation and maintenance for flag and general 
officer quarter houses, and limits the repair on these quarters 
to $35,000 per year without notification. The Administration 
proposed to modify this provision.
    Section 125 prohibits funds appropriated for the NATO 
Security Investment Program from being obligated or expended 
for the purpose of missile defense studies. The Administration 
proposed to delete this provision.
    Section 126 requires the Secretary of Defense or any other 
official of the Department of Defense to respond in writing to 
a question or inquiry submitted by the chairman or another 
member of the subcommittee within 21 days. The Administration 
proposed to delete this provision.
    Section 127 makes funds in the Ford Island Improvement Fund 
available until expended.
    Section 128 prohibits the use of funds for military 
construction, family housing, or land acquisition projects at 
installations closed or realigned under BRAC, except under 
certain conditions. The Administration proposed to delete this 
provision.
    Section 129 allows the transfer of expired funds to the 
``Foreign Currency Fluctuations, Construction, Defense'' 
account. This provision was included in the fiscal year 2007 
House passed appropriations bill and is proposed by the 
Administration in fiscal year 2008.
    Section 130 prohibits the use of funds in this title for 
any activity related to the construction of an Outlying Landing 
Field in Washington County, North Carolina.

                                TITLE II


                     DEPARTMENT OF VETERANS AFFAIRS





Fiscal year 2007 enacted level............           \1\ $77,761,944,000
Fiscal year 2008 budget request...........            \1\ 83,903,751,000
Committee recommendation in the bill......            \1\ 87,696,839,000
Comparison with:
    Fiscal year 2007 enacted level........                 9,934,895,000
    Fiscal year 2008 budget request.......                3,793,088,000

\1\ All funding cited above excludes amounts in the Medical Care
  Collections Fund.

    The Department of Veterans Affairs is one of the largest 
Federal agencies in terms of employment with an average 
employment of approximately 227,000. The nation has more than 
24,000,000 veterans, and 36,600,000 family members of living 
veterans and survivors of deceased veterans. Thus, close to 
61,000,000 people, comprising about 20 percent of the total 
population of the United States, are potential recipients of 
veterans benefits provided by the Federal government.
    The Committee recommends a total of $87,696,839,000 in new 
budget authority for programs in fiscal year 2008, an increase 
of $9,934,895,000 or 12.8 percent above the fiscal year 2007 
enacted level and an increase of $3,793,088,000 above the 
budget request.
    The funds recommended provide compensation payments to 
3,221,238 veterans and survivors of deceased veterans with 
service-connected disabilities; pension payments to 513,034 
non-service-connected disabled veterans, widows and children in 
need of financial assistance; education training, tuition 
assistance, and vocational assistance to 670,934 veterans, 
servicemembers, and reservists, and 89,214 eligible dependents 
of deceased veterans or seriously disabled veterans; housing 
credit assistance in the form of 180,000 guaranteed loans to 
veterans and servicemembers; administration or supervision of 
life insurance programs with 7,149,360 policies for veterans 
and active duty servicemembers providing coverage of 
$1,116,486,000,000; inpatient care and treatment of 
beneficiaries in 155 hospitals, 45 domiciliary residential 
rehabilitation treatment programs (formerly called 
``domiciliaries''), 135 nursing homes, and 925 outpatient 
clinics, which includes independent, satellite, community-
based, and rural outreach clinics involving 67,423,000 visits; 
and administration of the National Cemetery Administration for 
burial of eligible veterans, servicemembers and their 
survivors.
    Paralympic Military Program.-- The Committee understands 
that the Department has entered into a Memorandum of 
Understanding with the United States Olympic Committee to 
develop a Paralympic Military Program. The Committee encourages 
the Department to continue its work with the United States 
Olympic Committee and explore efforts to promote Paralympic 
sport and other physical activity programs to disabled veterans 
in their communities. The Committee believes that the programs 
and activities that constitute the Paralympic Military Program 
are central to the rehabilitation, health promotion, and 
prevention of secondary medical conditions.
    Veterans Rights and Feedback.--Recent events at Walter Reed 
Army Medical Center have shown that our servicemembers and 
veterans often struggle not only with the processes required to 
obtain health care and benefits, but also with the procedures 
to obtain assistance with and provide feedback on these 
systems. While it is important to continue to make every effort 
to streamline the health care and benefits systems, we must 
also ensure that our veterans have easy access to help when 
they need it and the opportunity to express their concerns. The 
Committee appreciates that there are a number of methods the 
Department uses to measure satisfaction and offer assistance, 
but is concerned that our veterans do not have sufficient 
information on how to access these tools. The Committee 
believes that the best assessment of how well we as a nation 
provide for our veterans comes from our veterans and that all 
veterans should be able to easily find, both at Department 
facilities and on-line, a method for obtaining assistance and/
or providing feedback. Therefore, the Committee directs that of 
the funds available within the General Operating Expenses 
appropriation, $5,000,000 shall be used to develop and operate 
a toll-free telephone and web based assistance and feedback 
system similar to the Wounded Soldier and Family Hotline 
recently adopted by the Department of Defense.
    Silicosis Pneumoconiosis.--The Committee received testimony 
raising concerns with respect to the Department of Veterans 
Affairs management and adjudication of inquiries and claims 
from veterans potentially suffering from silicosis 
pneumoconiosis, a dust induced lung disease. The Committee 
requests the Department to report, by September 5, 2007, on the 
number of all inquiries or claims by veterans with this 
disease, the status of such inquiries and claims, and the 
current number of diagnosed cases of this disease among 
veterans.
    Homeless Veterans.--The Committee understands that on any 
given night, there are an estimated 200,000 homeless veterans 
in the United States. The Committee is also aware that the 
Federal Emergency Management Agency (FEMA) has surplus trailers 
available. The Committee directs the Secretary of Veterans 
Affairs to work with FEMA and other relevant Federal agencies 
on a feasibility study to determine how these surplus FEMA 
trailers can be used to house homeless veterans and report its 
findings to the Committee within six months after the date of 
enactment of this Act.
    Rural Health.--The Committee notes that Public Law 109-461 
directed the establishment of an Office of Rural Health within 
the Office of the Under Secretary for Health. To date, after 
more than six months, there has been no action taken to 
implement the provision regarding the Office of Rural Health. 
The Committee urges the Department to move forward in an 
expeditious manner.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The Administration, in selecting these 
projects, goes through a process that is the functional 
equivalent of earmarking. When the Committee reviews the budget 
request, it goes through a process of rigorous review and may 
alter or modify this list to reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.
    Department use of Contractors and Non-competitive 
Contracting.--In the Department of Veterans Affairs, billions 
of dollars of funding is allocated per year solely at the 
discretion of the Executive Branch through numerous grant 
programs. Hard and fast rules on how these funding proposals 
are evaluated and rank ordered are not in place. In an attempt 
to learn more about the Executive Branch process, the Committee 
requested information on the number of non-competitive 
contracts awarded in 2005 and 2006. The Committee was informed 
that the requested information was not available. As light is 
shone on the Congressional process in directing funding, so 
should it be shone on the Executive Branch process.
    In addition to non-competitive contracting and grant 
authority, the Executive Branch steers or directs money to 
specific entities or purposes through a process of contracting-
out various activities and services. In many important work 
locations, the number of people working for contractors exceeds 
the number of Federal employees in the same building or 
location. For example, the Department of Veterans Affairs 
recently submitted to the Committee information which indicates 
11,270 people, or 42 percent, working at the VA Central Office 
are contractors. When asked how that number has changed over 
the past years, the Department responded that the information 
was not available.
    Considering all sources, the Executive Branch steers or 
directs far greater spending to specific projects or 
corporations than is directed or earmarked by Congress. Many of 
these, in fact, are non-competitive or sole-sourced.

                    Veterans Benefits Administration


                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2007 enacted level........................   $38,007,095,000
Fiscal year 2008 budget request.......................    41,236,322,000
Committee recommendation in the bill..................    41,236,322,000
Comparison with:
    Fiscal year 2007 enacted level....................     3,229,227,000
    Fiscal year 2008 budget request...................             - - -


    This appropriation provides funds for service-connected 
compensation payments to an estimated 3,221,238 beneficiaries 
and pension payments to another 513,034 beneficiaries with non-
service-connected disabilities. The average cost per 
compensation case in 2008 is estimated at $12,786, and pension 
payments are projected at a unit cost of $7,402.
    The Committee recommends an appropriation of 
$41,236,322,000 for compensation, pension, and burial benefits, 
an increase of $3,229,227,000 above the fiscal year 2007 
enacted level and the same as the budget request.
    The appropriation includes authority to transfer funding 
not to exceed $25,033,000, of which $9,583,000 is for the 
general operating expenses account and $15,450,000 is for the 
medical administration account. These funds are for the 
administrative expenses of implementing cost saving provisions 
required by the Omnibus Budget Reconciliation Act of 1990, 
Public Law 101-508, the Veterans' Benefits Act of 1992, Public 
Law 102-568, and the Veterans' Benefits Improvements Act of 
1994, Public Law 103-446. These cost saving provisions include 
verifying pension income against Internal Revenue Service (IRS) 
and Social Security Administration (SSA) data; establishing a 
match with the SSA to obtain verification of Social Security 
numbers; and the VA pension cap for Medicaid-eligible single 
veterans and surviving spouses alone in Medicaid-covered 
nursing homes. The bill also includes language permitting this 
appropriation to reimburse such sums as may be earned to the 
medical care collections fund to help defray the operating 
expenses of individual medical facilities for nursing home care 
provided to pensioners.
    The Committee concurs with the Administration proposal to 
provide a cost-of-living adjustment (COLA), based on the change 
in the Consumer Price Index, to all compensation beneficiaries, 
including dependency and indemnity compensation for spouses and 
children. This adjustment is currently estimated at 1.4 percent 
and is the same as the COLA that will be provided, under 
current law, to veterans' pension and Social Security 
recipients. The increase, effective December 1, 2007, has an 
estimated cost of $348,421,000 during fiscal year 2008 and is 
reflected in the Compensation and Pensions appropriation level

                         READJUSTMENT BENEFITS




Fiscal year 2007 enacted level........................    $3,262,006,000
Fiscal year 2008 budget request.......................     3,300,289,000
Committee recommendation in the bill..................     3,300,289,000
Comparison with:
    Fiscal year 2007 enacted level....................        38,283,000
    Fiscal year 2008 budget request...................             - - -


    This appropriation finances the education and training of 
veterans and servicemembers whose initial entry on active duty 
took place on or after July 1, 1985. These benefits are 
included in the All-Volunteer Force Educational Assistance 
Program. Eligibility to receive this assistance began in 1987. 
Basic benefits are funded through appropriations made to the 
readjustment benefits appropriation and transfers from the 
Department of Defense. Supplemental benefits are also provided 
to certain veterans through education assistance to certain 
members of the Selected Reserve and are funded through 
transfers from the Department of Defense. In addition, certain 
disabled veterans are provided with vocational rehabilitation, 
specially adapted housing grants, and automobile grants with 
approved adaptive equipment.
    This account also finances educational assistance 
allowances for eligible dependents of those veterans who died 
from service-connected causes or have a total and permanent 
service-connected disability as well as dependents of 
servicemembers who were captured or missing-in-action.
    The Committee recommends an appropriation of $3,300,289,000 
for readjustment benefits, an increase of $38,283,000 above the 
fiscal year 2007 enacted level and the same as the budget 
request.

                   VETERANS INSURANCE AND INDEMNITIES




Fiscal year 2007 enacted level........................       $49,850,000
Fiscal year 2008 budget request.......................        41,250,000
Committee recommendation in the bill..................        41,250,000
Comparison with:
    Fiscal year 2007 enacted level....................       (8,600,000)
    Fiscal year 2008 budget request...................             - - -


    The Veterans Insurance and Indemnities appropriation is 
made up of the former appropriations for military and naval 
insurance, applicable to World War I veterans; national service 
life insurance (NSLI), applicable to certain World War II 
veterans; servicemen's indemnities, applicable to Korean 
conflict veterans; and the veterans mortgage life insurance, 
applicable to individuals who have received a grant for 
specially adapted housing.
    The Committee recommends an appropriation of $41,250,000 
for veterans insurance and indemnities, a decrease of 
$8,600,000 below the fiscal year 2007 enacted level and the 
same as the budget request. The amount provided will enable the 
Department to transfer funding to the service-disabled veterans 
insurance fund and transfer additional amounts for payments for 
the 2,310 policies under the veterans mortgage life insurance 
program. These policies are identified under the veterans' 
insurance and indemnity appropriation since they provide 
insurance to service-disabled veterans unable to qualify under 
basic NSLI.

         VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)


                                                                                Limitation on
                                                                              direct loans for
                                                             Program account      specially      Administrative
                                                                               adapted housing      expenses
                                                                                    loans

Fiscal year 2007 enacted level............................       $66,234,000          $500,000      $154,284,000
Fiscal year 2008 budget request...........................        17,389,000           500,000       154,562,000
Committee recommendation in the bill......................        17,389,000           500,000       154,562,000
Comparison with:
    Fiscal year 2007 enacted level........................      (48,845,000)             - - -           278,000
    Fiscal year 2008 budget request.......................             - - -             - - -             - - -


    The purpose of the home loan guaranty program is to 
facilitate the extension of mortgage credit on favorable terms 
by private lenders to eligible veterans. This appropriation 
provides for all costs, with the exception of the Native 
American veterans housing loan program, of the Department's 
direct and guaranteed loans programs. The Federal Credit Reform 
Act of 1990 requires budgetary resources to be available prior 
to incurring a direct loan obligation or a loan guaranty 
commitment. In addition, the bill requires all administrative 
expenses of a direct or guaranteed loan program to be funded 
through a program account. Loan guaranties are made to 
servicemembers, veterans, reservists, and single surviving 
spouses for the purchase of homes, condominiums, and 
manufactured homes and for refinancing loans. The Department 
guarantees part of the total loan, permitting the purchaser to 
obtain a mortgage with a competitive interest rate, even 
without a down payment if the lender agrees. The Department 
requires that a down payment be made for a manufactured home. 
With a Department guaranty, the lender is protected against 
loss, up to the amount of the guaranty, if the borrower fails 
to repay the loan.
    The Committee recommends such sums as may be necessary 
(currently estimated to total $17,389,000) for funding subsidy 
payments, $500,000 for the limitation on direct loans for 
specially adapted housing loans, and $154,562,000 for 
administrative expenses. The appropriation for administrative 
expenses may be transferred to and merged with the General 
Operating Expenses account.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)


                                                                                Limitation on    Administrative
                                                             Program account    direct loans        expenses

Fiscal year 2007 enacted level............................           $53,000        $4,242,000          $305,000
Fiscal year 2008 budget request...........................            71,000         3,287,000           311,000
Committee recommendation in the bill......................            71,000         3,287,000           311,000
Comparison with:
    Fiscal year 2007 enacted level........................            18,000         (955,000)             6,000
Fiscal year 2008 budget request...........................             - - -             - - -             - - -


    This appropriation covers the funding subsidy cost of 
direct loans for vocational rehabilitation of eligible veterans 
and, in addition, it includes administrative expenses necessary 
to carry out the direct loan program. Loans of up to $1,016 
(based on indexed chapter 31 subsistence allowance rate) are 
available to service-connected disabled veterans enrolled in 
vocational rehabilitation programs when the veteran is 
temporarily in need of additional assistance. Repayment is made 
in monthly installments, without interest, through deductions 
from future payments of compensation, pension, subsistence 
allowance, educational assistance allowance, or retirement pay. 
Most loans are repaid in full in less than one year. The 
Federal Credit Reform Act of 1990 requires budgetary resources 
to be available prior to incurring a direct loan obligation. In 
addition, the Act requires all administrative expenses of a 
direct loan program be funded through a program account.
    The Committee recommends $71,000 for funding subsidy 
program costs and $311,000 for administrative expenses. The 
administrative expenses may be transferred to and merged with 
the General Operating Expenses account.
    In addition, the Committee includes language limiting 
direct loans to $3,287,000. It is estimated that the Department 
will make 4,349 loans in fiscal year 2008, with an average 
amount of $756.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)




Administrative expenses:
Fiscal year 2007 enacted level........................          $584,000
Fiscal year 2008 budget recommendation................           628,000
Committee recommendation in the bill..................           628,000
Comparison with:
    Fiscal year 2007 enacted level....................            44,000
    Fiscal year 2008 budget request...................             - - -


    The Native American Veteran Housing Loan Program, as 
authorized by title 38 United States Code, chapter 37, 
subchapter V, provides the Secretary with authority to make 
direct housing loans to Native American veterans for the 
purpose of purchasing, constructing, or improving dwellings on 
trust lands. The Committee recommends the budget request of 
$628,000 for administrative expenses of the Native American 
Veteran Housing Loan Program, which may be transferred to and 
merged with the General Operating Expenses account.

  GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM 
                                ACCOUNT

    Public Law 105-368, the Veterans Benefits Enhancement Act 
of 1998, established this program. All funds authorized for 
this program were appropriated in fiscal year 2000. Therefore, 
no appropriation request has been included for fiscal year 
2008. Bill language is included allowing the use of up to a 
total of $750,000 in Medical Administration and General 
Operating Expenses funds to administer this program.

                     Veterans Health Administration

    The Department operates the largest Federal medical care 
delivery system in the country, with 155 hospitals, 45 
domiciliary residential rehabilitation treatment programs 
(formerly called `domiciliaries'), 135 nursing homes, and 925 
outpatient clinics which include independent, satellite, 
community-based, and rural outreach clinics.
    The Veterans Health Administration is comprised of four 
accounts: medical services, medical administration, medical 
facilities, and medical and prosthetic research. For these 
accounts, the Administration has requested total resources of 
$34,612,671,000 in direct appropriations and $2,414,000,000 in 
Medical Care Collections Fund appropriations, to fund the 
various operating programs of the VHA.
    The Committee recommends an appropriation of 
$37,122,000,000 for these accounts. This is an increase of 
$4,442,265,000, or 13.6 percent, above the fiscal year 2007 
enacted level and an increase of $2,509,329,000 above the 
budget request. The Committee recommendation builds on the 
information provided in public hearings to include testimony 
from the Government Accountability Office which indicated that 
health care spending per capita has grown on average 6.9 
percent annually; testimony from the Congressional Budget 
Office (CBO) which indicated that the demand for VHA medical 
services may grow 3.6 percent annually; and testimony from the 
Centers for Medicare and Medicaid Services which projects 
growth in health care spending to continue to increase by 7 
percent annually. Based on this testimony and the fact that the 
VHA has had an average annual increase in workload of 4 
percent, the Committee believes that a workload growth estimate 
for Medical Services of 5.5 percent is more realistic than the 
2.4 percent that was used by the Department to prepare the 
budget request. Additionally, the Committee agrees with the 
recommendation of the many research organizations and veteran 
advocates that testified during hearings that an increase in 
funding for medical and prosthetic research is necessary to 
allow the Department to increase research in areas that are 
most relevant to our veterans, such as traumatic brain injury, 
post-traumatic stress disorder (PTSD), and geriatric 
psychiatry.
    Health Care Sharing Incentive Fund.--Recent reviews of the 
health care programs for our servicemembers and veterans 
continue to highlight challenges in caring for our traumatic 
brain injury, polytrauma injury, blast injury, burn, mental 
health/PTSD, and amputee patients as well as continued 
difficulty with seamless transition and the transfer of medical 
records. With the large volume of Reserve and National Guard 
that have deployed to Operation Enduring Freedom and Operation 
Iraqi Freedom (OEF/OIF), it is critical that the Department of 
Defense and Department of Veterans Affairs work as partners if 
they are to ensure that care is available to this 
geographically dispersed population and to all veterans. The 
bill includes language to allow the Department of Veterans 
Affairs to transfer a minimum of $15,000,000 to the DoD/VA 
Health Care Sharing Incentive Fund. The Committee directs that 
these funds are to be used for joint programs between the 
Departments that seek to improve the continuity of care for 
veterans through the establishment of Joint Centers of 
Excellence for traumatic brain injury and PTSD as recommended 
by the Independent Review Group (report of April, 2007); joint 
research and/or treatment of polytrauma injury, traumatic brain 
injury, blast injury, mental health/PTSD, burn, and amputee 
patients; joint research and the development of comprehensive 
and universal clinical practice guidelines based on evidence-
based medicine and clinical efficacy for blast injuries, 
traumatic brain injuries, and PTSD; increased access to 
services through joint clinics; and projects that promote a 
seamless transition to include programs that improve the 
electronic exchange of information, the development of a system 
of co-management and case management as recommended by The Task 
Force on Returning Global War on Terror Heroes, and the 
development of a single transition physical examination. The 
Committee urges the Department to fully and fairly consider all 
incentive fund applications, including those for feasibility 
studies.
    Polytrauma and Mental Health.--Recent appropriation acts 
have sought to ensure that the very best in medical care is 
provided to our veterans, particularly those veterans who have 
suffered multiple trauma injuries or require mental health 
services. Support for these veterans include the four current 
Level I Polytrauma Centers, one additional pending Level I 
Polytrauma Center, and the three Centers of Excellence on 
Mental Health and PTSD. The Committee wants to be certain that 
these important medical resources are funded at levels that 
ensure that they are all fully operational by the end of fiscal 
year 2008. Therefore, the Committee has increased funding 
within the medical accounts so that sufficient funds may be 
provided to the Level I Polytrauma Centers and the Centers of 
Excellence on Mental Health and PTSD to ensure that they are 
each fully operational by the end of fiscal year 2008. The 
Committee directs the Secretary to provide a report on the 
status of these facilities by February 1, 2008.
    Traumatic Brain Injury.--All reports indicate that 
traumatic brain injury is among the signature injuries of the 
Global War on Terror. The Committee recognizes that the 
Department is working diligently to address the challenges 
associated with this injury through early detection and 
treatment. The Committee wishes to further highlight the 
importance of this by directing that all future budget requests 
include traumatic brain injury as a Select Program.
    Far South Texas Inpatient Care.--The Committee notes that 
the Capital Asset Realignment for Enhanced Services (CARES) 
report recognized inpatient access gaps existed in various 
locations, including the Valley-Coastal Bend market in Texas. 
The CARES solution was to recommend that the Department use 
existing authorities and policies to contract for care to 
improve access to inpatient care in this market. It has come to 
the attention of the Committee that this solution has been less 
than optimal. Accordingly, the Secretary is directed to review 
the CARES recommendation for the Valley-Coastal market, and 
report to the Committees on Appropriations of both Houses of 
Congress on all options available to address the inpatient 
access issues facing this market's population, including the 
feasibility of new hospital construction by February 1, 2008.
    Veterans Services in Los Angeles County.--The Committee 
notes the concentration of veterans' health care services in 
West Los Angeles to the exclusion of other areas of that 
county, particularly the San Gabriel Valley. The Committee 
directs the Department to report on how new or additional 
veterans' facilities and services in Los Angeles County can be 
located more proximate to the many veterans who live in the San 
Gabriel Valley and further to the east.
    Hospital Quality Report Card.--The Committee urges the 
Secretary of the Department of Veterans Affairs to report to 
Congress on the quality of veterans' health facilities. This 
report shall include quality measurements that allow for an 
assessment of effectiveness, safety, timeliness, efficiency, 
patient-centeredness, and equity. The report shall provide the 
data used to make these determinations, including, but not 
limited to, the staffing levels of nurses and other health 
professionals; rates of nosocomial infection; the volume of 
various procedures performed; hospital sanctions and other 
violations; the quality of care for various patient populations 
including female, geriatric, disabled, rural, homeless, 
mentally ill, racial and ethnic minority populations; the 
availability of emergency rooms, intensive care units, 
maternity care, and specialty services; the quality of care in 
various hospital settings including inpatient, outpatient, 
emergency, maternity, and intensive care units; ongoing patient 
safety initiatives; and other measures deemed appropriate by 
the Secretary.

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2007 enacted level........................   $25,518,254,000
Fiscal year 2008 budget request.......................    27,167,671,000
Committee recommendation in the bill..................    28,906,400,000
Comparison with:
    Fiscal year 2007 enacted level....................     3,388,146,000
    Fiscal year 2008 budget request...................     1,738,729,000


    This appropriation provides for medical services of 
eligible veterans and beneficiaries in Department medical 
centers, outpatient clinic facilities, contract hospitals, 
State homes, and outpatient programs on a fee basis. Hospital 
and outpatient care is also provided by the private sector for 
certain dependents and survivors of veterans under the civilian 
health and medical programs for the Department of Veterans 
Affairs.
    The Committee recommends an appropriation of 
$28,906,400,000 for Medical Services, an increase of 
$3,388,146,000 or 13.3 percent above the fiscal year 2007 
enacted level and an increase of $1,738,729,000 above the 
budget request. The Committee is concerned that current VHA 
treatment capacity in areas that are seeing increased patient 
demand from returning OEF/OIF veterans will be insufficient to 
provide for these veterans and the veterans who were already on 
waiting lists to receive care in these areas.
    The Committee recommendation builds on the information 
provided in public hearings to include testimony from the 
Government Accountability Office which indicated that health 
care spending per capita had grown on average 6.9 percent 
annually; testimony from the Congressional Budget Office which 
indicated that the demand for VHA medical services may grow 3.6 
percent annually; and testimony from the Centers for Medicare 
and Medicaid Services which projects growth in health care 
spending to continue to increase by seven percent annually. 
Therefore, the Committee recommendation for the current 
services as submitted in the budget request is $28,195,873,388 
and was obtained by applying an inflation increase of 4.45 
percent and a workload increase of 5.5 percent to the fiscal 
year 2007 appropriation. The Committee recommendation also 
includes an additional $70,880,754 for substance abuse; 
$12,500,000 for expanded outpatient services for the blind; and 
$604,325,858 to increase funding for mental health and 
traumatic brain injury initiatives and/or services; ensure that 
the Level I Polytrauma Centers and the Centers of Excellence on 
Mental Health and PTSD will be fully staffed and operational by 
the end of fiscal year 2008; and to maintain inpatient 
psychiatric capacity at fiscal year 2007 levels. This 
recommendation also increases the homeless grants and per diem 
program to the full authorized level of $130,000,000.
    The Committee has included bill language to make available 
through September 30, 2009, up to $1,100,000,000 of the Medical 
Services appropriation.
    The Committee concurs with the request to allow the 
Secretary to realign 5,689 full-time equivalents and 
$400,000,000 for food service operations from the Medical 
Facilities appropriation to the Medical Services appropriation. 
The cost for food service operations support hospital food 
service workers, provisions, and supplies which are related to 
the direct care of patients.
    Mental Health and Substance Abuse.--The Committee is 
disappointed that the Department elected to increase funding 
for substance abuse by less than one percent for fiscal year 
2008. Substance abuse, to include alcohol dependence, 
exacerbates psychiatric and medical problems and undermines 
patient treatment. The National Center for PTSD has reported 
that 58 percent of veterans with Substance Use Disorder also 
have lifetime PTSD and that the odds of drug use disorders are 
three times more likely to occur in veterans who have a PTSD 
diagnosis. The Committee recommends an appropriation of 
$428,873,754 for the Substance Abuse Program which is an 
increase of $70,880,754 above the President's request. The 
Committee is also disappointed that the budget request included 
a reduction in the number of inpatient psychiatric admissions 
and has increased funding within the Medical Services 
appropriations account to return admissions to the fiscal year 
2007 level. The Committee directs that inpatient psychiatric 
beds will not be reduced at any facility that has a waiting 
list for inpatient psychiatric treatment. The Committee is also 
very concerned that many veterans are being denied inpatient 
psychiatric care due to substance abuse and urges the 
Department to consider the feasibility of dual diagnosis 
treatment programs. Additionally, the Committee is concerned 
that our veterans do not have equal access to mental health 
services. For example, veterans that live in areas where there 
are insufficient mental health providers or live too far from 
VHA facilities to make access and/or compliance realistic, 
struggle to obtain the care they need. Mental health is not 
only important to overall health, it is also a key component to 
a veteran's readjustment. The Committee therefore urges the 
Department to consider these veterans in particular as it 
implements the mental health initiative funding provided in 
this account and to look for all opportunities to ensure mental 
health parity to include contracting for care when needed and 
developing internet based services like the Network of Care for 
Mental Health recommended in the President's New Freedom 
Commission on Mental Health.
    Outpatient Services for the Blind.--One of the outcomes of 
OEF/OIF is an increase in the number of servicemembers that 
have sustained an eye injury and/or have suffered partial or 
total blindness. Their injuries are going to result in an 
increased demand for VHA blind rehabilitation services. It is 
reported that there is already a waiting list in excess of 1200 
patients for inpatient rehabilitation services and the 
Committee is concerned that this increased demand is going to 
result in even longer waiting times for all veterans. The 
Committee supports the recommendations of the GAO Report: More 
Outpatient Rehabilitative Services for Blind Veterans Could 
Better Meet their Needs and directs that of the funds available 
within the Medical Services appropriation, not less than 
$12,500,000 is to be used for expanding outpatient blind 
rehabilitation services and training while maintaining current 
inpatient capacity.

                     MEDICAL CARE COLLECTIONS FUND

    The Department of Veterans Affairs Medical Care Collections 
Fund (MCCF) was established by the Balanced Budget Act of 1997 
(Public Law 105-33). The Department deposits first-party and 
pharmacy co-payments, third-party insurance payments and 
enhanced-use collections, long-term care co-payments, 
Compensated Work Therapy Program collections, Compensation and 
Pension Living Expenses Program collections, and Parking 
Program fees into the MCCF. The Congressional Budget Office 
estimate of fees that will be collected in fiscal year 2008 is 
$2,414,000,000. The bill does not include any language 
regarding the Medical Care Collections Fund since permanent 
authority was included in the fiscal year 2005 appropriations 
bill, Public Law 108-447.

                         MEDICAL ADMINISTRATION




Fiscal year 2007 enacted level........................    $3,177,968,000
Fiscal year 2008 budget request.......................     3,442,000,000
Committee recommendation in the bill..................     3,635,600,000
Comparison with:
    Fiscal year 2007 enacted level....................       457,632,000
    Fiscal year 2008 budget request...................       193,600,000


    The Medical Administration appropriation provides funds for 
the expenses of management and administration of the 
Department's health care system. Included under this heading 
are provisions for costs associated with operation of 
department medical centers, other facilities, and VHA 
headquarters, plus the costs of VISN offices and facility 
director offices, chief of staff operations, quality of care 
oversight, legal services, billing and coding activities, 
procurement, financial management, and human resources 
management.
    The Committee recommends an appropriation of $3,635,600,000 
for Medical Administration, an increase of $457,632,000 above 
the fiscal year 2007 enacted level and an increase of 
$193,600,000 above the budget request. Funding within the 
Medical Administration appropriation has been increased to 
ensure that the Level I Polytrauma Centers and the Centers of 
Excellence on Mental Health and PTSD will be fully staffed and 
operational by the end of fiscal year 2008.
    The Committee has included bill language to make available 
through September 30, 2009, up to $250,000,000 of the Medical 
Administration appropriation.

                           MEDICAL FACILITIES




Fiscal year 2007 enacted level........................    $3,569,533,000
Fiscal year 2008 budget request.......................     3,592,000,000
Committee recommendation in the bill..................     4,100,000,000
Comparison with:
    Fiscal year 2007 enacted level....................       530,467,000
    Fiscal year 2008 budget request...................       508,000,000


    The Medical Facilities appropriation provides funds for the 
operation and maintenance of the Department's health care 
system's capital infrastructure. Included under this heading 
are provisions for costs associated with utilities, 
engineering, capital planning, leases, laundry, groundskeeping, 
garbage, housekeeping, facility repair, and property 
disposition and acquisition.
    The Committee recommends an appropriation of $4,100,000,000 
for Medical Facilities, an increase of $530,467,000 above the 
fiscal year 2007 enacted level and an increase of $508,000,000 
above the budget request.
    The Committee concurs with the request to allow the 
Secretary to realign 5,689 full-time equivalents and 
$400,000,000 for food service operations from the Medical 
Facilities appropriation to the Medical Services appropriation. 
The cost for food service operations support hospital food 
service workers, provisions, and supplies which are related to 
the direct care of patients.
    The Committee has included bill language to make available 
through September 30, 2009, up to $250,000,000 of the Medical 
Facilities appropriation.
    The bill provides $300,000,000, in addition to the budget 
request, for non-recurring maintenance. The additional amount 
provided is to be allocated in a manner not subject to the 
Veterans Equitable Resource Allocation. The Committee 
recommendation reflects concern that the Department has been 
placing less than adequate emphasis on maintenance of 
facilities. In the extreme, such neglect could give rise to 
serious problems that would have negative consequences for 
patient care. The Committee will continue to view facility 
maintenance as an item of special interest and directs the 
Secretary to report within 30 days of enactment of this Act on 
the distribution of all non-recurring maintence funding by 
facility and project or effort.
    Community-Based Outpatient Clinics.--The Committee remains 
concerned that the Congress is not receiving the most accurate 
and timely information on plans for new community-based 
outpatient clinics proposed by the Department. The Department 
is directed to report to the Committees on Appropriations of 
both Houses of Congress, within 60 days of enactment of this 
Act, on its plans for activation of the 29 clinics (funded in 
prior years) identified in response to questions from the 
Committee and the unspecified number of clinics, alluded to in 
testimony presented to the Committee, being planned for fiscal 
year 2008. This report is to include the location of each 
facility, the type of facility being planned, the cost for 
activation and operation of each facility, the fiscal year 
funding being used for activation of each facility, the type of 
funding being used for activation and operations, and the date 
on which the facility will be fully activated. In addition, the 
Department is urged to examine the need for, and report on the 
feasibility of, clinics in the following locations: Riverhead, 
New York; Northwest Washington; El Centro, California; Jackson 
County, Florida; Port Angeles, Washington; Plymouth, 
Massachusetts; Charlottesville, Virginia; and Southeastern 
Pennsylvania.

                    MEDICAL AND PROSTHETIC RESEARCH




Fiscal year 2007 enacted level........................      $413,980,000
Fiscal year 2008 budget request.......................       411,000,000
Committee recommendation in the bill..................       480,000,000
Comparison with:
    Fiscal year 2007 enacted level....................        66,020,000
    Fiscal year 2008 budget request...................        69,000,000


    This account includes medical, rehabilitative, and health 
services research. Medical research is an important aspect of 
the Department's programs, providing complete medical and 
hospital services for veterans. The prosthetic research program 
is also essential in the development and testing of prosthetic, 
orthopedic, and sensory aids for the purpose of improving the 
care and rehabilitation of eligible disabled veterans, 
including amputees, paraplegics, and the blind. The health 
services research program provides unique opportunities to 
improve the effectiveness and efficiency of the health care 
delivery system. In addition, budgetary resources from a number 
of areas including appropriations from the medical care 
accounts, reimbursements from the Department of Defense, and 
grants from the National Institutes of Health, private 
proprietary sources, and voluntary organizations provide 
support for the Department's researchers.
    The Committee recommends an appropriation of $480,000,000 
for Medical and Prosthetic Research, an increase of $66,020,000 
above the fiscal year 2007 enacted level and an increase of 
$69,000,000 above the budget request. The Committee is pleased 
by the progress the Department has made in adjusting its 
research program to support the medical issues most prevalent 
within our veteran population. The Committee urges the 
Department to continue these efforts and to also consider 
additional research in the areas of mental health--especially 
the causes, prevention, mitigation, and treatment of PTSD; the 
development of clinical practices using evidence-based medicine 
for the treatment of PTSD/Substance Use Disorder comorbidity; 
the full spectrum of traumatic brain injury; substance abuse; 
geriatric psychiatry; and obesity.
    Evidence-Based Technology Research.--The Committee believes 
the Department is uniquely positioned to lead the nation in 
applying medical research to medical practice. One important 
advantage of this intramural research program is that it allows 
the Department to develop a requirements driven program based 
on patient demand that allows for adjustment of clinical 
practices using evidence-based medicine and clinical efficacy. 
Recent testimony has reinforced with the Committee that this 
nation continues to struggle to control the cost of health care 
due in no small part to the increased use of expensive 
technologies without sufficient evidence to justify their 
costs. These contribute to unwarranted variations in clinical 
practices where good evidence-based medicine would reduce this 
variation and attendant costs. The Committee encourages the 
Department to expand its research in this area, to form a more 
active partnership with the Department of Defense, and to 
increase its efforts to share those outcomes within the 
national health care community.

                      Departmental Administration


                       GENERAL OPERATING EXPENSES




Fiscal year 2007 enacted level........................    $1,481,473,000
Fiscal year 2008 budget request.......................     1,471,837,000
Committee recommendation in the bill..................     1,598,500,000
Comparison with:
    Fiscal year 2007 enacted level....................       117,027,000
    Fiscal year 2008 budget request...................       126,663,000


    The General Operating Expenses appropriation provides for 
the administration of non-medical veterans benefits through the 
Veterans Benefits Administration and departmental management 
and support. The Federal Credit Reform Act of 1990 changed the 
accounting of Federal credit programs and required that all 
administrative costs associated with such programs be included 
within the respective credit accounts. Beginning in fiscal year 
1992, costs incurred by housing and vocational rehabilitation 
programs for administration of these credit programs are 
reimbursed by those accounts. The bill includes the budget 
requests totaling $123,846,000 in other accounts for these 
credit programs. In addition, $9,583,000 is transferred from 
the compensation and pensions account for administrative costs 
of implementing cost saving provisions required by the Omnibus 
Budget Reconciliation Act of 1990 and the Veterans' Benefits 
Act of 1992. Section 207 of the administrative provisions 
provides requested language which permits excess revenues in 
three insurance funds to be used for administrative expenses. 
The Department estimates that $36,085,000 will be utilized for 
such purposes in fiscal year 2008. Prior to fiscal year 1996, 
such costs were included in the general operating expenses 
appropriation.
    The Committee recommends an appropriation of $1,598,500,000 
for General Operating Expenses, an increase of $117,027,000 
above the fiscal year 2007 enacted level and an increase of 
$126,663,000 above the budget request. This increase includes 
$5,000,000 to develop and operate a toll free telephone and web 
based assistance and feedback system.
    The Congress added funding and authority for hiring and 
training claims processing personnel to the fiscal year 2007 
supplemental. While that legislation is not yet enacted, the 
Committee has every confidence that the funding will be 
available to the Department soon so that hiring and training 
activities can begin. The fiscal year 2008 Committee 
recommendation includes the full-year costs associated with 
these additional personnel, as well as funding to enable the 
Department to hire at least 457 additional claims processing 
personnel as proposed in the budget submission.
    The Committee is concerned that disabled military retirees, 
whose successful disability claims take more than three years 
to be resolved, are unable to receive the back tax they are 
owed due to Internal Revenue Service (IRS) statute of 
limitations. The Committee directs the Department to determine 
within 60 days of enactment of this Act, the number of disabled 
veterans whose claims take more than three years to resolve and 
are therefore affected by the IRS statute of limitations. 
Furthermore, the Committee directs the Department to determine 
what changes are needed in statutory law that would permit the 
Department to share this information with the IRS for the 
purpose of cross referencing affected veterans.

                     INFORMATION TECHNOLOGY SYSTEMS




Fiscal year 2007 enacted level........................    $1,214,000,000
Fiscal year 2008 budget request.......................     1,859,217,000
Committee recommendation in the bill..................     1,859,217,000
Comparison with:
    Fiscal year 2007 enacted level....................       645,217,000
    Fiscal year 2008 budget request...................             - - -


    The Information Technology Systems account was established 
in P.L. 109-114. The account previously encompassed the entire 
non-pay information technology portfolio for the Department of 
Veterans Affairs, including all automation efforts in all 
administrations. Starting in fiscal year 2007, and reflected 
for the first time in the budget request for fiscal year 2008, 
this account also includes pay and associated costs for 
information technology maintenance and operations staff.
    The Committee recommends an appropriation of $1,859,217,000 
for Information Technology Systems, an increase of $645,217,000 
above the fiscal year 2007 enacted level and the same as the 
budget request. The total funding provided is comprised of 
$1,303,841,000 for non-pay costs associated with information 
technology and $555,376,000 for operations and maintenance 
payroll expenses.
    The Committee has included bill language requiring the 
Department to submit an expenditure plan for the total amount 
provided, not later than 30 days after enactment of this Act. 
In addition, an administrative provision is included in the 
bill which allows for the reprogramming of funds in this 
account between projects upon prior notification to, and 
approval by, the Committee.
    While the Committee is pleased that the Department's VistA 
system is a national model for electronic medical records 
(EMR), the Committee is concerned that VistA still utilizes 
MUMPS programming language technology and that the Department 
of Veterans Affairs and Department of Defense still do not have 
electronic interoperability between their EMRs. The Committee 
therefore directs that, of the funds available within the 
Information Technology appropriation, no funds be used for the 
development of an EMR that is not interoperable with the 
Department of Defense. The Committee further urges the 
Department to involve leading software companies in this 
process to increase the likelihood that the resulting EMR will 
be interoperable with existing systems used by the private 
sector. The Committee also urges the Department to continue to 
pursue the development of a portable EMR so that veterans may 
have a personal electronic record of their care.
    The Committee is very concerned that the Department 
continues to struggle to ensure the security of electronic 
data. The Committee directs the Department to adopt a zero 
tolerance policy with regard to violations in the area of 
electronic security. The Committee will continue to monitor the 
Department's performance in this area.

                    NATIONAL CEMETERY ADMINISTRATION




Fiscal year 2007 enacted level........................      $160,747,000
Fiscal year 2008 budget request.......................       166,809,000
Committee recommendation in the bill..................       170,000,000
Comparison with:
    Fiscal year 2007 enacted level....................         9,253,000
    Fiscal year 2008 budget request...................         3,191,000


    The National Cemetery Administration was established in 
accordance with Public Law 93-43, the National Cemeteries Act 
of 1973. It has a fourfold mission: to provide for the 
interment, in any national cemetery with available grave space, 
the remains of eligible deceased servicemembers and discharged 
veterans, together with their spouses and certain dependents, 
and to permanently maintain their graves; to provide headstones 
for, and to mark graves of eligible persons in national, State, 
and private cemeteries; to administer the grant program for aid 
to States in establishing, expanding, or improving State 
veterans' cemeteries; and to administer the Presidential 
Memorial Certificate Program. This appropriation provides for 
the operation and maintenance of 158 cemeterial installations 
in 39 States, the District of Columbia, and Puerto Rico.
    The Committee recommends an appropriation of $170,000,000 
for the National Cemetery Administration, an increase of 
$9,253,000 above the fiscal year 2007 enacted level and an 
increase of $3,191,000 above the budget request.

                      OFFICE OF INSPECTOR GENERAL




Fiscal year 2007 enacted level........................       $70,641,000
Fiscal year 2008 budget request.......................        72,599,000
Committee recommendation in the bill..................        76,500,000
Comparison with:
    Fiscal year 2007 enacted level....................         5,859,000
    Fiscal year 2008 budget request...................         3,901,000


    The Office of Inspector General was established by the 
Inspector General Act of 1978 and is responsible for the audit, 
investigation, and inspection of all Department of Veterans 
Affairs programs and operations. The overall operational 
objective is to focus available resources on areas which would 
help improve services to veterans and their beneficiaries, 
assist managers of Department programs to operate economically 
in accomplishing program goals, and to prevent and deter 
recurring and potential fraud, waste, and inefficiencies.
    The Committee recommends an appropriation of $76,500,000 
for the Office of Inspector General, an increase of $5,859,000 
above the fiscal year 2007 enacted level and an increase of 
$3,901,000 above the budget request.
    The Committee notes that funding for the Office of 
Inspector General has remained static for three years and the 
result has been a loss of over 40 personnel. The Committee does 
not believe this situation should continue and therefore 
recommends funding sufficient to allow for 50 additional 
personnel for the Office of Inspector General in fiscal year 
2008.

                      CONSTRUCTION, MAJOR PROJECTS




Fiscal year 2007 enacted level........................      $399,000,000
Fiscal year 2008 budget request.......................       727,400,000
Committee recommendation in the bill..................     1,410,800,000
Comparison with:
    Fiscal year 2007 enacted level....................     1,011,800,000
    Fiscal year 2008 budget request...................       683,400,000


    The Construction, Major Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department of Veterans Affairs, including planning, 
architectural and engineering services, assessments, and site 
acquisition where the estimated cost of a project is 
$10,000,000 or more.
    The Committee recommends an appropriation of $1,410,800,000 
for Construction, Major Projects, an increase of $1,011,800,000 
above the fiscal year 2007 enacted level and an increase of 
$683,400,000 above the budget request. The Committee 
recommendation does not include the proposed reprogramming of 
$45,000,000 appropriated in prior years.
    Projects.--Congress has made significant reforms in the way 
it reviews funding for the Federal government, reforms which 
the Committee takes very seriously as it executes its 
constitutional authority. Earmarking or directed spending of 
Federal dollars does not begin with Congress. It begins with 
the Executive Branch. The table below is an illustrative list 
of construction, major projects submitted by the 
Administration. The Administration, in selecting these 
projects, goes through a process that is the functional 
equivalent of earmarking. When the Committee reviews the budget 
request, it goes through a process of rigorous review and may 
alter or modify this list to reflect additional priorities.
    The Committee provides no recommendation at this time for 
specific projects contained in either the Administration's 
budget or proposed by Members of Congress. Individual project 
allocations will be considered comprehensively after the 
Committee has properly analyzed all relevant information.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                              FY 2008
                        Location                          Administration
                                                              Request
------------------------------------------------------------------------
Veterans Health Admin.:
    Pittsburgh, PA......................................         $40,000
    Denver, CO..........................................          61,300
    Orlando, FL.........................................          35,000
    Las Vegas, NV.......................................         341,400
    Syracuse, NY........................................          23,800
    Lee County, FL......................................           9,900
    Advance Planning fund...............................          40,300
    Asbestos Abatement..................................           3,000
    BRAC Land Acquisition...............................           5,000
    Claims Analyses.....................................           2,000
    Facility Security...................................          21,300
    Hazardous Waste Abatement...........................           2,000
    Judgment Fund.......................................          30,000
    Reprogram prior year funds..........................         -45,000
    Sale of VA Assets...................................         -10,000
                                                         ---------------
    Total Veterans Health Admin.........................         560,000

National Cemetery Admin.:
    Columbia/Greenville-area............................          19,200
    Sarasota-area.......................................          27,800
    Jacksonville-area...................................          22,400
    Southeastern PA.....................................          29,600
    Birmingham-area.....................................          18,500
    Bakersfield-area....................................          19,500
    Ft. Sam Houston.....................................          29,400
    Advance Planning fund...............................           1,000
                                                         ---------------
        Total NCA.......................................         167,400
                                                         ===============
            Total Major Construction....................         727,400
------------------------------------------------------------------------

                      CONSTRUCTION, MINOR PROJECTS




Fiscal year 2007 enacted level........................      $198,937,000
Fiscal year 2008 budget request.......................       233,396,000
Committee recommendation in the bill..................       615,000,000
Comparison with:
    Fiscal year 2007 enacted level....................       416,063,000
    Fiscal year 2008 budget request...................       381,604,000


    The Construction, Minor Projects appropriation provides for 
constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the 
Department, including planning, assessment of needs, 
architectural and engineering services, and site acquisition, 
where the estimated cost of a project is less than $10,000,000.
    The Committee recommends an appropriation of $615,000,000 
for Construction, Minor Projects, an increase of $416,063,000 
above the fiscal year 2007 enacted level and an increase of 
$381,604,000 above the budget request.
    The Committee has included bill language requiring the 
Department to submit an expenditure plan for the total amount 
provided, not later than 30 days after enactment of this Act. 
In addition, an administrative provision is included in the 
bill which allows for the reprogramming of funds in this 
account between projects upon prior notification to, and 
approval by, the Committee.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES




Fiscal year 2007 enacted level........................       $85,000,000
Fiscal year 2008 budget request.......................        85,000,000
Committee recommendation in the bill..................       165,000,000
Comparison with:
    Fiscal year 2007 enacted level....................        80,000,000
    Fiscal year 2008 budget request...................        80,000,000


    This program provides grants to assist States to construct 
State home facilities, for furnishing domiciliary or nursing 
home care to veterans, and to expand, remodel or alter existing 
buildings for furnishing domiciliary, nursing home or hospital 
care to veterans in State homes. A grant may not exceed 65 
percent of the total cost of the project.
    The Committee recommends an appropriation of $165,000,000 
for Grants for Construction of State Extended Care Facilities, 
an increase of $80,000,000 above the fiscal year 2007 enacted 
level and an increase of $80,000,000 above the budget request. 
The amount recommended will provide sufficient funding to 
address all current high priority life/safety requirements as 
well as provide for new construction. The Department is 
directed to submit an updated priority list for all pending 
grant applications within 30 days of enactment of this Act.

          GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES




Fiscal year 2007 enacted level........................       $32,000,000
Fiscal year 2008 budget request.......................        32,000,000
Committee recommendation in the bill..................        37,000,000
Comparison with:
    Fiscal year 2007 enacted level....................         5,000,000
    Fiscal year 2008 budget request...................         5,000,000


    This program provides grants to assist States with the 
establishment, expansion, and improvement of State veterans' 
cemeteries which are operated and permanently maintained by the 
States. Grants under this program fund up to 100 percent of 
construction costs and the initial equipment expenses when the 
cemetery is established. The States remain responsible for 
providing the land and for paying all costs related to the 
operation and maintenance of the State cemeteries, including 
the costs for subsequent equipment purchases.
    The Committee recommends an appropriation of $37,000,000 
for Grants for Construction of State Veterans Cemeteries, an 
increase of $5,000,000 above the fiscal year 2007 enacted level 
and an increase of $5,000,000 above the budget request.
    The Committee notes the success of the military housing 
Residential Communities Initiative (RCI) as a public-private 
partnership. The Committee continues to encourage the 
Department to work with the Fort Ord Reuse Authority in 
Monterey County, California to develop a pilot program to 
demonstrate the cost effectiveness of using public-private 
partnerships in establishing a State veteran's cemetery.
    The Committee encourages the Department to work with States 
for maximum usage of this grant program. Given that almost ten 
percent of the nation's veterans reside in California, the 
Committee encourages the Department to work with the State of 
California as it applies for grant funding.
    The Committee notes that tribes are now eligible for the 
State Veterans Cemetery Grant program and encourages the VA to 
update relevant information and, whenever possible, alert 
tribes of their eligibility.

                       Administrative Provisions

    The Committee recommends twenty-two administrative 
provisions for fiscal year 2008, including fifteen which were 
proposed by the Administration, five which were included in 
prior appropriations Acts, and two new provisions.
    Section 201 allows for the transfer of funds among three 
mandatory appropriations.
    Section 202 allows for salaries and expenses funds to be 
used for hire of passenger vehicles, lease of facilities or 
land, and purchase of uniforms.
    Section 203 provides that only funding in the 
``Construction, major projects'' and ``Construction, minor 
projects'' accounts can be used for the purchase of any site 
for any new hospital or home or to construct any new hospital 
or home. The Administration proposed to delete this provision.
    Section 204 requires the Department to be reimbursed for 
medical services it provides to any person not defined as a 
beneficiary to ensure the Department is receiving payment for 
all medical services provided.
    Section 205 allows for the use of funds appropriated in 
fiscal year 2008 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' for payment of accrued obligations recorded in 
the last quarter of fiscal year 2007.
    Section 206 allows for the use of fiscal year 2008 funds to 
pay prior year obligations resulting from implementation of 
sections 3328(a), 3334, and 3712(a) of title 31, United States 
Code.
    Section 207 allows the Department to use surplus earnings 
from the National service life insurance, U.S. Government life 
insurance, and veterans special life insurance program to 
administer these programs.
    Section 208 allows the Department to cover the 
administrative expenses of structuring enhanced-use leasing 
proposals and provides authority to obligate these 
reimbursements in the year funds are received.
    Section 209 limits the amount of reimbursement the Office 
of Resolution Management and the Office of Employment 
Discrimination Complaint Adjudication can charge other offices 
and accounts of the Department for services provided.
    Section 210 requires the Secretary to submit a report to 
the Committees on Appropriations to approve new leases of real 
property more than $300,000. The Administration proposed to 
delete this provision.
    Section 211 requires the Department to collect current, 
accurate third-party reimbursement information for the purposes 
of third-party insurance collections. If persons receiving care 
or medical services do not disclose this information, the 
Department is allowed to bill them reasonable charges for 
services provided.
    Section 212 allows the Department to use enhanced-use 
leasing funds for construction and alterations for medical 
facilities to facilitate the CARES efforts as the Department 
restructures the delivery of healthcare to veterans.
    Section 213 allows the Department to use the ``Medical 
services'' appropriation for expenses related to the broader 
mission of medical care to veterans.
    Section 214 allows the Department to transfer Medical Care 
Collections to the ``Medical services'' appropriation to be 
used for veterans medical care.
    Section 215 allows veterans who reside in Alaska to obtain 
medical services from medical facilities supported by the 
Indian Health Services or tribal organizations, and provides 
for reimbursement for those services from the Department of 
Veterans Affairs.
    Section 216 allows the Department to transfer the proceeds 
received from the transfer of real property deposited into the 
Department of Veterans Affairs Capital Asset Fund (CAF) to the 
major and minor construction appropriations.
    Section 217 prohibits the expenditure of any funds 
available to the Department for implementation of a national 
standardized contract for diabetes monitoring systems. The 
Administration proposed to delete this provision.
    Section 218 provides that no funds may be used to prohibit 
Directors of Veterans Integrated Service Networks (VISN) from 
conducting outreach or marketing programs. The Administration 
proposed to delete this provision.
    Section 219 requires the Secretary to submit quarterly 
reports on the financial status and service level status of the 
Veterans Health Administration. The report shall contain, at a 
minimum and by account, both planned and actual expenditure 
rates, unobligated balances, potential financial shortfalls, 
and the status of any equipment or non-recurring maintenance 
funds--including whether they have been used to pay for 
operating expenses. In addition, the service portion of the 
report will contain, at a minimum, the time required for new 
patients to get their first appointment, the time required for 
established patients to get their next appointment, the number 
of patients on a wait list for inpatient services or any mental 
health or substance abuse program, the number of staff 
shortages for mental health services, the planned and actual 
expenditure rates for contracted mental health care, and the 
number of unique veterans and patients being served. Each 
report should address data for the system total and for each 
VISN, and for comparison purposes should provide data for the 
preceding eight quarters. In addition the report shall also 
contain the planned and actual expenditure rates for the blind 
rehabilitation service, VA/DoD sharing, homeless veterans, 
mental health, OIF/OEF veterans, prosthetics, and substance 
abuse programs. The Administration proposed to delete this 
provision.
    Section 220 requires the Department to notify and receive 
approval from the Committee of any proposed transfer of funding 
in excess of $1,000,000 between information technology system 
projects. The Administration had proposed a threshold of 
$5,000,000 for such transfers.
    Section 221 provides for the transfer of prior year account 
balances established for the payment of benefits under the 
Reinstated Entitlement Program for Survivors to the 
``Compensation and pensions'' account.
    Section 222 requires the Department to notify and receive 
approval from the Committee of any proposed transfer of funding 
in excess of $1,000,000 between minor construction projects.

                               TITLE III


                            RELATED AGENCIES


                  American Battle Monuments Commission


                         SALARIES AND EXPENSES




Fiscal year 2007 enacted level........................       $37,000,000
Fiscal year 2008 budget request.......................        42,100,000
Committee recommendation in the bill..................        43,470,000
Comparsion with:
    Fiscal year 2007 enacted level....................         6,470,000
    Fiscal year 2008 budget request...................         1,370,000


    The American Battle Monuments Commission is responsible for 
the administration, operation and maintenance of cemetery and 
war memorials to commemorate the achievements and sacrifices of 
the American Armed Forces where they have served since April 6, 
1917. In performing these functions, the Commission maintains 
24 permanent American military cemetery memorials and 31 
monuments, memorials, markers, and offices in 15 foreign 
countries, the Commonwealth of the Northern Mariana Islands, 
and the British dependency of Gibraltar. In addition, six 
memorials are located in the United States: the East Coast 
Memorial in New York; the West Coast Memorial, The Presidio in 
San Francisco; the Honolulu Memorial in the National Memorial 
Cemetery of the Pacific in Honolulu, Hawaii; and the American 
Expeditionary Forces Memorial, and the World War II and Korean 
War Veterans Memorials in Washington, D.C.
    The Committee recommends an appropriation of $43,470,000 
for the American Battle Monuments Commission's salaries and 
expenses account. This is an increase of $6,470,000 above the 
fiscal year 2007 enacted level and an increase of $1,370,000 
above the budget request. The Committee recommendation includes 
a reduction of $200,000 to the budget request for travel, an 
increase of $570,000 for capital improvements, and an increase 
of $1,000,000 for infrastructure modernization.
    Language is included allowing up to $7,500 to be used for 
official reception and representation expenses.
    Normandy Visitor Center.--The recommendation includes full 
operational funding for the Normandy Visitor Center at the 
Normandy American Cemetery in France. The new center will 
provide a full array of interactive services to put the D-Day 
landings and the following battles in Europe in perspective as 
one of the greatest military achievements of all time. With the 
opening of the Center scheduled for June 6, 2007, the 
anniversary of D-Day, the Committee is pleased to note that 
this project has been completed on time and within original 
budget estimates. The Committee commends the Commission for 
this noteworthy accomplishment.
    Pointe du Hoc Study.--The fiscal year 2006 appropriations 
Act included funding for the Commission to have a study 
conducted to determine what action is warranted to preserve the 
stability of the World War II Pointe du Hoc Ranger Monument in 
France. The Committee understands that this study has been 
completed and directs the Commission to provide the Committee 
with a copy of the completed study and recommendations for any 
additional work regarding preservation of the Pointe du Hoc 
site. The Commission is to provide the report to the Committee 
no later than July 2, 2007.

                 Foreign Currency Fluctuations Account





Fiscal year 2007 enacted level........................        $5,000,000
Fiscal year 2008 budget request.......................        11,000,000
Committee recommendation in the bill..................        11,000,000
Comparison with:
    Fiscal year 2007 enacted level....................         6,000,000
    Fiscal year 2008 budget request...................             - - -


    The Commission's foreign currency fluctuations account is 
authorized pursuant to 36 U.S.C. 2109 to pay the costs of 
salaries and expenses that exceed the amount appropriated for 
salaries and expenses because of fluctuations in currency 
exchange rates of foreign countries occurring after a budget 
request for the Commission is submitted to the Congress. The 
account may not be used for any other purpose.
    The Committee recommends an appropriation of $11,000,000 to 
re-capitalize the Commission's Foreign Currency Fluctuations 
account. This is an increase of $6,000,000 above the fiscal 
year 2007 enacted level and the same as the budget request. Re-
capitalization of the account ensures that funds are available 
to offset dollar losses during fiscal year 2008.

           United States Court of Appeals for Veterans Claims


                         SALARIES AND EXPENSES




Fiscal year 2007 enacted level........................       $20,189,000
Fiscal year 2008 budget request.......................        21,217,000
Committee recommendation in the bill..................        21,397,000
Comparison with:
    Fiscal year 2007 enacted level....................         1,208,000
    Fiscal year 2008 budget request...................           180,000


    The Veterans' Judicial Review Act established the U.S. 
Court of Appeals for Veterans Claims. The Court reviews appeals 
from Department of Veterans Affairs claimants seeking review of 
a benefit denial. The Court has the authority to overturn 
findings of fact, regulations, and interpretations of law.
    The Committee recommends an appropriation of $21,397,000 
for the U.S. Court of Appeals for Veterans Claims, an increase 
of $1,208,000 above the fiscal year 2007 enacted level and an 
increase of $180,000 above the budget request. Of the amount 
provided, $1,300,000 is to be used for the pro bono 
representation program, an increase of $180,000 above the 
budget request.

                      Department of Defense--Civil


                       CEMETERIAL EXPENSES, ARMY

                         SALARIES AND EXPENSES




Fiscal year 2007 enacted level........................       $30,000,000
Fiscal year 2008 budget request.......................        26,892,000
Committee recommendation in the bill..................        30,592,000
Comparison with:
    Fiscal year 2007 enacted level....................           592,000
    Fiscal year 2008 budget request...................         3,700,000


    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery and the Soldiers' and Airmen's Home National Cemetery. 
In addition to its principal function as a national cemetery, 
Arlington is the site of approximately 3,100 non-funeral 
ceremonies each year and has approximately 4,000,000 visitors 
annually.
    The Committee recommends an appropriation of $30,592,000 
for Cemeterial Expenses, Army, salaries and expenses, an 
increase of $592,000 above the fiscal year 2007 enacted level 
and an increase of $3,700,000 above the budget request.
    The Committee recommendation includes an increase of 
$1,800,000 for realignment of government-issued headstones and 
$1,900,000 for construction of a heavy equipment storage 
facility.

                      ARMED FORCES RETIREMENT HOME

                              TRUST FUNDS




Fiscal year 2007 enacted level........................       $57,227,000
Fiscal year 2008 budget request.......................        55,724,000
Committee recommendation in the bill..................        55,724,000
Comparison with:
    Fiscal year 2007 enacted level....................       (1,503,000)
    Fiscal year 2008 budget request...................             - - -


    The Armed Forces Retirement Home (AFRH) consists of two 
retirement communities, one in Washington, D.C. and the other 
in Gulfport, Mississippi. The Washington, D.C. facility was 
established in 1851 as a soldiers' home for elderly and 
disabled veterans. The original home for Navy officers, 
sailors, and Marines was established in Philadelphia, 
Pennsylvania in 1811, and was relocated to Gulfport, 
Mississippi almost a century and a half later.
    The Committee recommendation provides authority to expend 
$55,724,000 from the Armed Forces Retirement Home Trust Fund 
for operations of the United States Soldiers' and Airmen's Home 
and the United States Naval Home. This is a decrease of 
$1,503,000 below the fiscal year 2007 enacted level and the 
same as the budget request.
    The Committee is aware that a Memorandum of Agreement has 
been signed with the General Services Administration (GSA) 
related to the rebuilding of the Armed Forces Retirement Home's 
Gulfport campus. The Committee urges GSA to work with the AFRH 
to ensure that the rebuilt Gulfport campus reflects the latest 
best-practices in independent living, assisted living, and long 
term care through implementation of the Green House approach to 
the maximum extent feasible. The Committee hopes that the 
Gulfport campus can become a national model for 
deinstitutionalized care and serve veterans with an industry 
standard-setting approach in a manner worthy of their service 
to our nation. To that end, the Committee expects that the 
final design will accommodate on-site pre-Katrina scope and 
availability of medical, dental, and pharmaceutical care and 
services within the current project.

                      ARMED FORCES RETIREMENT HOME

                             FEDERAL FUNDS




Fiscal year 2007 enacted level........................             - - -
Fiscal year 2008 budget request.......................        $5,900,000
Committee recommendation in the bill..................           800,000
Comparison with:
    Fiscal year 2007 enacted level....................           800,000
    Fiscal year 2008 budget request...................       (5,100,000)


    The budget request included provisions which would provide 
for a Federal fund contribution to the Trust in fiscal year 
2008 and thereafter. In addition, the budget request proposed 
that $800,000 be used for a study of the long-term viability of 
the Trust. The Committee does not recommend a Federal fund 
payment to the Trust at this time, but has included in its 
recommendation funding for a study of the Trust to ensure its 
long-term viability.

                                TITLE IV


                           GENERAL PROVISIONS

    The bill includes seven provisions that were included in 
the fiscal year 2006 enacted appropriations bill and the fiscal 
year 2007 House passed appropriations bill and one new 
provision as follows:
    Section 401 prohibits the obligation of funds beyond the 
current fiscal year unless expressly so provided.
    Section 402 requires pay raises to be absorbed within the 
levels appropriated in the bill.
    Section 403 prohibits the use of funds for programs, 
projects or activities not in compliance with Federal law 
relating to risk assessment, the protection of private property 
rights, or unfunded mandates. The Administration proposed to 
delete this provision.
    Section 404 prohibits the use of funds to support or defeat 
legislation pending before Congress.
    Section 405 encourages all departments and agencies funded 
in this Act to expand the use of E-Commerce technologies and 
procedures.
    Section 406 limits funds from being transferred from this 
appropriations measure to any instrumentality of the United 
States Government without authority from an appropriation Act. 
The Administration proposed to delete this provision.
    Section 407 specifies the congressional committees that are 
to receive all reports and notifications.
    Section 408 directs the Congressional Budget Office to 
submit a report projecting annual appropriations necessary for 
the Department of Veterans Affairs to continue providing health 
care to veterans.

              House of Representatives Report Requirements

    The following items are included in accordance with various 
requirements of the rules of the House of Representatives.

                 Changes in Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities that require annual authorization 
or additional legislation, which to date have not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    Language is included in various parts of the bill to allow 
the Secretary of Defense to exceed certain limitations upon 
notification to the Committee.
    Language is included in various parts of the bill to allow 
funding to be used for official reception and representation 
expenses.
    Language is included that enables various appropriations to 
remain available for more than one year for some programs for 
which the basic authority legislation does not presently 
authorize such extended availability.
    Language is included in various parts of the bill which 
permits the transfer of funds to other accounts in the bill.
    Language is included under Title I limiting payments for 
cost-plus-a-fixed-fee contract under certain circumstances.
    Language is included in various parts of the bill to allow 
funds to be used for the hire of passenger motor vehicles.
    Language is included under Title I allowing advances to the 
Federal Highway Administration, Department of Transportation 
under certain circumstances.
    Language is included under Title I limiting funds for 
implementing construction of new bases in the United States 
without specific appropriations.
    Language is included under Title I limiting funds for 
purchase of land or land easements under certain circumstances.
    Language is included under Title I limiting funds for land 
acquisition, site preparation, and utility installation unless 
funds have been made available in annual appropriations Acts.
    Language is included under Title I to prohibit the use of 
minor construction funds to transfer an activity between 
installations without prior notification.
    Language is included under Title I limiting funds for the 
procurement of steel for any activity if American steel 
producers have been denied the opportunity to compete for such 
steel procurements.
    Language is included under Title I limiting funds for 
initiating new installations overseas without notifying the 
Committees on appropriations.
    Language is included under Title I limiting the use of 
funds for architect and engineer contracts under certain 
circumstances.
    Language is included under Title I limiting funds for 
awarding contracts to foreign contractors under certain 
circumstances.
    Language is included under Title I requiring the Department 
of Defense to notify the appropriate committees of Congress of 
any proposed military exercises under certain circumstances.
    Language is included under Title I limiting funding 
obligations in the last two months of the fiscal year to 20 
percent.
    Language is included under Title I allowing prior year 
construction funding to be available for current year projects.
    Language is included under Title I allowing payment for the 
cost associated with supervision, inspection, overhead, 
engineering and design on family housing or military 
construction projects that are being completed with expired or 
lapsed funds.
    Language is included under Title I allowing funds to be 
expended on military construction projects for four fiscal 
years after enactment under certain circumstances.
    Language is included under Title I to allow for the 
transfer of BRAC proceeds to the BRAC account.
    Language is included under Title I to allow construction 
funds to be transferred to Housing Improvement Funds.
    Language is included under Title I limiting funds for the 
Partnership for Peace Programs in the New Independent States of 
the former Soviet Union.
    Language is included under Title I requiring the various 
military departments to submit prior notice to the Committee of 
solicitation for contracts with the private sector for military 
family housing under certain circumstances.
    Language is included under Title I to allow for the 
transfer of BRAC funds to the Homeowners Assistance Program.
    Language is included under Title I limiting funds for the 
operation and maintenance of family housing to those provided 
in this appropriation with exceptions under certain 
circumstances.
    Language is included under Title I limiting funds for the 
North Atlantic Treaty Organization Security Investment Program 
for the conduct of missile defense studies.
    Language is included under Title I requiring officials from 
the agencies covered in this appropriation to respond to 
requests within 21 days.
    Language is included under Title I allowing funds for the 
Ford Island Improvement Account to be available until expended 
for certain purposes.
    Language is included under Title I limiting funds for 
realignment of installations under certain circumstances.
    Language is included under Title I to allow for the 
transfer of expired funding to the Foreign Currency Fluctuation 
Account under certain circumstances.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs establish a priority for 
treatment of veterans who are service-connected disabled, lower 
income, or have special needs.
    Language is included under Title II to require that the 
Secretary of Veterans Affairs give priority funding of basic 
medical benefits to priority groups 1 through 6.
    Language is included under Title II to allow the Secretary 
of Veterans Affairs to dispense prescription drugs from VHA 
facilities to enrolled veterans with privately written 
prescriptions.
    Language is included under Title II to allocate a portion 
of non-recurring maintenance funds outside the Veterans 
Equitable Resource Allocation.
    Language is included under Title II providing for the 
reimbursement to the Department of Defense for the costs of 
overseas employee mail.
    Language is included under Title II to require approval of 
a plan for the expenditure of information technology funds.
    Language is included under Title II establishing time 
limitations and reporting requirements concerning the 
obligation of major construction funds, limiting the use of 
funds, and allowing the use of funds for program costs.
    Language is included under Title II to prohibit the use of 
funds to reduce the mission, services or infrastructure of 18 
facilities on the CARES list without prior approval of the 
Committee.
    Language is included under Title II to allow minor 
construction funds to be used to repair non-medical facilities 
damaged by natural disaster or catastrophe.
    Language is included under Title II permitting transfers 
between mandatory and discretionary accounts, limiting and 
providing for the use of certain funds, funding administrative 
expenses associated with life insurance programs from excess 
program revenues, allowing reimbursement from enhanced-use 
leases and for certain services, requiring notification of new 
lease agreements, requiring disclosure of insurance and income 
information, allowing a recovery audit collection program, 
prohibiting the use of funds for instituting a new standard for 
glucose monitoring systems, extending the authority to operate 
the homeless program, allowing veterans in the state of Alaska 
to use Indian Health Service facilities under certain 
conditions, and allowing medical services funds for 
recreational and funeral expenses.
    Language is included under the Court of Appeals for 
Veterans Claims, Salaries and Expenses, permitting the use of 
funds for a pro bono program.
    Language is included under Cemeterial Expenses, Army, 
Salaries and Expenses, permitting the use of funds for parking 
maintenance and repairs.
    Language is included under Title IV requiring sums 
necessary for pay raises to be absorbed within levels 
appropriated.
    Language is included under Title IV limiting the use of 
funds for federal entities when they are not in compliance with 
federal law relating to risk assessment, the protection of 
private property rights, or unfunded mandates.
    Language is included under Title IV limiting funding for 
publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Language is included under Title IV prohibiting the 
transfer of any funds except pursuant to authority provided in 
appropriations Acts.
    Language is included under the Department of Veterans 
Affairs, Information Technology Systems, limiting the 
obligation of funds until certain reporting requirements are 
met.
    Language is included under the Department of Veterans 
Affairs, Medical Services, designating $2,900,000,000 for 
specialty mental health care.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                            Appropriations in
           Agency/program                Last year of      Authorization       last year of    Appropriations in
                                        authorization          level          authorization        this bill
----------------------------------------------------------------------------------------------------------------
Military Construction, Army.........               2007          2,264,042          2,017,321          4,070,959
Military Construction, Navy.........               2007          1,291,285          1,130,821          2,125,138
Military Construction, Air Force....               2007          1,308,233          1,083,000            927,428
Military Construction, Defense-Wide.               2007          1,145,181          1,127,000          1,806,928
Military Construction, Army National               2007            561,375            473,000            439,291
 Guard..............................
Military Construction, Air National                2007            294,283            126,000             95,517
 Guard..............................
Military Construction, Army Reserve.               2007            190,617            166,000            154,684
Military Construction, Navy Reserve.               2007             49,998             43,000             69,150
Military Construction, Air Force                   2007             56,836             45,000             39,628
 Reserve............................
North Atlantic Treaty Organization                 2007            200,985            204,789            201,400
 Security Investment Program........
Family Housing Construction, Army...               2007            578,791            579,000            419,400
Family Housing Operation and                       2007            675,617            671,311            742,920
 Maintenance, Army..................
Family Housing Construction, Navy                  2007            308,956            305,000            298,329
 and Marine Corps...................
Family Housing Operation and                       2007            509,126            505,472            371,404
 Maintenance, Navy and Marine Corps.
Family Housing Construction, Air                   2007          1,168,138          1,168,000            362,747
 Force..............................
Family Housing Operation and                       2007            755,071            750,000            688,335
 Maintenance, Air Force.............
Family Housing Operation and                       2007             48,506             49,000             48,848
 Maintenance, Defense-Wide..........
Department of Defense Family Housing               2007              2,500              2,475                500
 Improvement Fund...................
Chemical Demilitarization                          2007            140,993            131,000             86,176
 Construction, Defense-Wide.........
Base Realignment and Closure, 1990..               2007            191,220            252,279            270,689
Base Realignment and Closure, 2005..               2007          5,626,223          2,489,421          8,174,315
----------------------------------------------------------------------------------------------------------------

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the transfer of funds provided in the 
accompanying bill.
    Language is included to allow Military Construction, 
Defense-Wide funds to be transferred to other military 
construction and family housing appropriations to be merged 
with and available for the same purpose and same time period.
    Language is included to allow Chemical Demilitarization 
Construction funds to be transferred to other military 
construction appropriations to be merged with and available for 
the same purpose and same time period.
    Language is included to allow Department of Defense prior 
year construction funds to be available for current year 
authorizations.
    Language is included to allow BRAC proceeds to be 
transferred to the BRAC account to be merged with and available 
for the same purpose and same time period.
    Language is included to allow for the transfer of funds 
from Family Housing, Construction accounts to the Department of 
Defense Family Housing Improvement Fund and funds from Military 
Construction accounts to the Department of Defense Military 
Unaccompanied Housing Improvement Fund.
    Language is included to provide transfer authority to the 
Homeowners Assistance Program.
    Language is included to allow the transfer of expired funds 
to the ``Foreign Currency Fluctuations, Construction, Defense'' 
account.
    Language is included to transfer not to exceed $25,033,000 
from Compensation and Pensions to General Operating Expenses 
and Medical Services. These funds are for the administrative 
costs of implementing cost-savings proposals required by the 
Omnibus Budget Reconciliation Act of 1990 and the Veterans' 
Benefits Act of 1992. Language is also included permitting 
necessary sums to be transferred to the medical facilities 
revolving fund to augment funding of medical centers for 
nursing home care provided to pensioners as authorized by the 
Veterans' Benefits Act of 1992.
    Language is included to transfer the following amounts to 
the Department of Veterans Affairs General Operating Expenses 
appropriation pursuant to the Federal Credit Reform Act of 
1990: the Veterans Housing Benefit Program Fund Program Account 
($154,562,000), the Vocational Rehabilitation Loans Program 
Account ($311,000) and the Native American Veteran Housing Loan 
Program Account ($628,000). In addition, the bill provides up 
to $750,000 in General Operating Expenses and Medical Services 
for administration of the Guaranteed Transitional Housing Loans 
for the Homeless Veterans Program Account.
    Language is included under the Department of Veterans 
affairs that would transfer no less than $15,000,000 for the 
DoD/VA Health Care Sharing Incentive Fund as authorized by 
section 8111(d) of title 38, United States Code.
    Language is included to provide authority for the 
Department of Veterans Affairs for any funds appropriated in 
2008 for Compensation and Pensions, Readjustment Benefits, and 
Veterans Insurance and Indemnities to be transferred among 
those three accounts. This will provide the Department of 
Veterans Affairs flexibility in administering its entitlement 
programs.
    Language is included to permit the funds from three life 
insurance funds to be transferred to General Operating Expenses 
for the costs of administering such programs.
    Language is included to permit up to $35,215,000 to be 
transferred to General Operating Expenses from any funds 
appropriated in fiscal year 2008 to reimburse the Office of 
Resolution Management and the Office of Employment 
Discrimination Complaint Adjudication for services provided.
    Language is included to transfer certain funds derived from 
enhanced-use leasing activities to the Construction, Major 
Projects and Construction, Minor Projects accounts.
    Language is included to transfer funds from the Medical 
Care Collections Fund to Medical Services.
    Language is included to allow the transfer of funds from 
the Capital Asset Fund to the Construction, Major Projects and 
Construction, Minor Projects accounts.
    Language is included under the Department of Veterans 
Affairs that would transfer balances in prior year accounts 
established for payment of benefits under the Reinstated 
Entitlement Program for Survivors to the Compensation and 
Pensions account.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
rescissions in the accompanying bill:

------------------------------------------------------------------------
                                                              Amounts
                   Department/activity                      recommended
                                                          for rescission
------------------------------------------------------------------------
Department of Defense, Military Construction, Navy and        $5,862,000
 Marine Corps...........................................
Department of Defense, Military Construction, Air Force.       5,319,000
Department of Defense, Military Construction, Defense-         7,592,000
 Wide...................................................
Department of Defense, Military Construction, Air Force        3,069,000
 Reserve................................................
------------------------------------------------------------------------

                        Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee on Appropriations bases 
its authority to report this legislation from clause 7 of 
section 9 of article I of the U.S. Constitution which states:

          ``No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *''

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                302(b) allocation                         This bill
                                     ---------------------------------------------------------------------------
                                       Budget authority       Outlays        Budget authority       Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary.......................             64,745             54,831             64,745             54,831
Mandatory...........................             40,978             40,856             40,978             40,856
----------------------------------------------------------------------------------------------------------------

                    Five-Year Projection of Outlays

    Pursuant to section 308(a)(1)(B) of the Congressional 
Budget Act of 1974, the following table contains five-year 
projections prepared by the Congressional Budget Office of 
outlays associated with the budget authority provided in the 
accompanying bill:

                        [In millions of dollars]

Budget Authority........................................         105,723
Outlays:
    2008................................................          81,446
    2009................................................          12,762
    2010................................................           8,166
    2011................................................           3,108
    2012................................................           1,993

               Assistance to State and Local Governments

    Pursuant to section 308(a)(1)(C) of the Congressional 
Budget Act of 1974, the amount of financial assistance to State 
and local governments is as follows:

                        [In millions of dollars]

Budget Authority........................................             828
Fiscal Year 2008 outlays resulting therefrom............             552

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, the Committee notes that the 
accompanying bill does not propose to repeal or amend a statute 
or part thereof.

                                Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.


  ADDITIONAL VIEWS OF REPRESENTATIVES JERRY LEWIS AND REPRESENTATIVE 
                              ROGER WICKER


                           302(b) Allocation

    The 302(b) discretionary allocation for the fiscal year 
2008 Military Construction, Veterans Affairs, and Related 
Agencies bill is $64.4 billion, an increase of$4 billion (6.6 
percent) above the President's request and almost $15 billion 
(32 percent) above the amount provided in fiscal year 2007, 
with the bulk of the increased discretionary spending directed 
for the programs and services provided by the Department of 
Veterans Affairs. Much has been said by the majority in 
creating the fiscal year 2008 302(b) allocations that $3.5 
billion had to be cut from the President's Defense budget 
request in order to plus up the funds available for veterans 
programs. However, that math just does not add up. A read of 
the Fiscal Year 2008 Budget Resolution shows, in clear, concise 
language and tables, that the Budget Committee fully funded the 
Administration's Defense request and provided for the 
Committee's proposed plus-up of veterans programs. No cut in 
Defense funding is needed to care for our Nation's veterans 
under the adopted Fiscal Year 2008 Budget Resolution. Weare 
supportive of this bill, but as this process moves forward and 
the remaining bills are considered by the Committee, we have to 
question where the defense money went.

                           Veterans Programs

    This bill continues the tradition started in the 104th 
Congress of trying to make the Veterans Health Administration a 
modem, effective, and efficient medical system providing care 
to our Nation's heroes. The system needed change--change from 
the antiquated war-wounded only enrollment, to the eligibility 
reform of 1996 that opened the system to veterans regardless of 
service connection; change from the in-patient bed towers to 
the more than 900 community-based outpatient clinics; change 
from an aging population to the challenges and opportunities to 
care for a broad spectrum of patients as our young men and 
women return from the Middle East. These changes are being 
ushered in successfully not simply by throwing massive amounts 
of money at the VA. Rather, they are achieved by oversight and 
direction provided by the Congress, program implementation and 
performance evaluation by the Department and GAO, and working 
with the veterans community, keeping the mission focused on the 
top priorities and authorizations of the Department.
    Considering the funds in this bill, plus the funds provided 
in the Fiscal Year 2007 Supplemental bill, the VA will see an 
astounding 23 percent increase from the level provided for 
fiscal year 2007. Weare greatly concerned that we are setting 
up the VA for failure in terms of what they can implement and 
account for in one fiscal year. We will partner with and 
support the Committee in efforts to ensure that this investment 
is wisely spent.
    As we look to future years, we need to come together, 
rising above partisan pettiness, and provide funding to the VA 
based on a sound methodology and policy, rather than a ``who 
can spend more'' mantra. We support Chairman Edwards's method 
of looking at the rate of inflation and the number of veterans 
estimated to receive care from the VA medical administration to 
create a reasonable and balanced expectation for how the system 
should be funded. We also endorse the decision to add funds to 
address facilities repair and maintenance, investing in the 
capital infrastructure necessary to deliver the quality care VA 
is capable of providing. Weare very supportive of the increased 
funds to address the backlog in claims processing, and we 
strongly urge the authorizing committees to give a long, hard 
look at the entire VA benefits rubric and propose a system that 
is fair, understandable, significantly less complicated, and 
addresses the realities of a modern war and a modern workplace.

                     Military Construction Projects

    The absence of identified funds for specific construction 
projects breaks with a tradition that began with the very first 
Military Construction bill in 1958. This Committee has a strong 
relationship with the authorizers and the Pentagon, and we 
trust that each Member knows full well the needs of his or her 
district. Since the first Military Construction bill, the 
Committee has worked with its partners to identify and fund 
capital infrastructure projects necessary to meet the needs of 
a well-prepared military force and their families. This bill 
walks away from that tradition.
    To ignore the very essence of the military funding in this 
bill demonstrates the sheer absurdity of the mandate that every 
bill be without earmarks--this edict is ill-conceived and has 
little regard for the true reform that needs to take place as 
the broad brush of self-righteousness takes the place of well 
thought out ideas and policy. It is not the Congress that will 
suffer, but rather the men and women of the military and their 
families when base improvements for their security, training, 
and their quality of life are left to the whim of bureaucrats. 
We are not supportive of the Committee's decision to retreat 
from this basic task at this point in the process.
