[House Report 113-90]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     113-90

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



 
     MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES 
                       APPROPRIATIONS BILL, 2014

                                _______
                                

  May 28, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 2216]

    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, 2014, and for other purposes.

                                CONTENTS

                                                                   Page
Purpose of the Bill..............................................     2
Summary of Committee Recommendation..............................     2
Comparative Statement of New Budget Authority....................     4
Management and Oversight Initiatives.............................    15
Department of Defense:
    Military Construction........................................    16
    NATO Security Investment Program.............................    25
    Family Housing Construction and Operation and Maintenance....    27
    Chemical Demilitarization Construction, Defense-Wide.........    29
    Department of Defense Base Closure Account...................    29
    Administrative Provisions....................................    30
Department of Veterans Affairs:
    Veterans Benefits Administration.............................    33
    Veterans Health Administration...............................    36
    National Cemetery Administration.............................    46
    Departmental Administration..................................    47
    Administrative Provisions....................................    57
Related Agencies:
    American Battle Monuments Commission.........................    61
    U.S. Court of Appeals for Veterans Claims....................    61
    Cemeterial Expenses, Army....................................    62
    Armed Forces Retirement Home.................................    63
    Administrative Provision.....................................    64
General Provisions...............................................    64
House of Representative Report Requirements......................    65
    Statement of General Performance Goals and Objectives........    65
    Rescissions..................................................    65
    Transfer of Funds............................................    66
    Disclosure of Earmarks and Congressionally Directed Spending 
      Items......................................................    67
    Changes in Application of Existing Law.......................    67
    Appropriations Not Authorized by Law.........................    71
    Program Duplication..........................................    73
    Directed Rule Making.........................................    73
    Full Committee Votes.........................................    73
    Ramseyer Rule................................................    76
    Comparison With the Budget Resolution........................    76
    Five-Year Projection of Outlays..............................    76
    Assistance to State and Local Governments....................    76
    State Project List...........................................    77
    Minority Views...............................................    91
    Additional Views.............................................    93

                          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, which 
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; provide the housing and 
military community infrastructure that supports a good quality 
of life for them and their families; and allow the military to 
maintain an efficient and effective base structure. The bill 
also funds programs to ensure that all 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 (including Arlington 
National Cemetery), the United States Court of Appeals for 
Veterans Claims, and the Armed Forces Retirement Home.

                  Summary of Committee Recommendation

    The scale of the Nation's debt and the continuing annual 
deficit weighed heavily on the Committee as it formulated this 
bill. A driving force behind the Committee recommendations is 
the need to do all that we can to reduce the deficit and 
balance the budget of the United States. The Committee 
recommendation continues essential support for servicemembers 
and veterans but does not provide funds for projects or 
activities that lacked sufficient justification or amounts in 
excess of expected obligations for the fiscal year. Where it 
was prudent, the Committee recommendation rescinds prior year 
funding that is no longer needed for the purpose for which it 
was appropriated while leaving sufficient resources to close 
out contracts. The Committee does not include requested funding 
for a civilian pay increase. Should the President provide a 
civilian pay raise for fiscal year 2014, it is assumed that the 
cost of such a pay raise will be absorbed within existing 
appropriations for fiscal year 2014.
    The Committee recommends $157,782,090,000 in budget 
authority for the fiscal year 2014 programs and activities 
funded in the bill. In addition, advance appropriations of 
$55,634,227,000 are provided for fiscal year 2015 medical 
programs of the Department of Veterans Affairs. The fiscal year 
2014 recommendation is an increase of $12,939,319,000 above the 
fiscal year 2013 enacted level (defined as the amount provided 
within Public Law 113-6 and excluding emergency funding, 
disaster relief adjustments, the 251A sequester and the section 
3004 Office of Management and Budget adjustment) and 
$1,370,117,000 below the President's request. Included in this 
amount is $84,461,636,000 in mandatory budget authority and 
$73,320,454,000 in discretionary budget authority.
    The recommendation reflects the Committee's continued 
commitment to our servicemembers and veterans and to their 
families. The total funding level for military construction and 
family housing is $9,954,887,000, a $645,868,000 reduction 
below the fiscal year 2013 enacted level and $1,056,746,000 
below the budget request. The overall level of funding supports 
the servicemen and women and their families who are making 
sacrifices during this time of war. The programs funded in the 
bill for the Department of Defense address the numerous 
challenges we have asked our military to accomplish 
simultaneously. These funds support continued cleanup of 
military bases closed during previous Base Realignment and 
Closure rounds, resource the military's global re-stationing 
and force re-structure plans, and ensure that our military 
personnel and their families' quality of life is preserved 
within these plans.
    The total funding level for fiscal year 2014 for the 
Department of Veterans Affairs is $147,581,766,000, an increase 
of 10.2 percent over the fiscal year 2013 enacted level. Of the 
total, $84,461,636,000 is provided for mandatory benefit 
programs and $63,120,130,000 is allocated to discretionary 
programs such as medical care, claims processing, and 
construction. Discretionary funding increases by 3.5 percent. 
In addition to funds for fiscal year 2014, of which 
$54,462,000,000 have already been appropriated in advance, the 
Committee recommendation includes $55,634,227,000 in advance 
appropriations for fiscal year 2015 for the three health care 
accounts of the Department, as authorized by the House-passed 
fiscal year 2014 budget resolution.
    The following table compares amounts recommended in the 
bill to the President's request and amounts appropriated in 
fiscal year 2013:


                  Management and Oversight Initiatives

    The Committee believes the effective stewardship of 
taxpayer dollars is of the highest priority. In the interest of 
eliminating waste, fraud, and abuse in Federal programs, the 
Committee has and will continue to use public hearings, 
briefings and information requests, and reviews by the 
Government Accountability Office and the Inspectors General to 
promote strong financial and program management, oversight and 
leadership at the Department of Defense, the Department of 
Veterans Affairs, and other agencies under the jurisdiction of 
this bill.
    The fiscal year 2014 appropriations Act and the 
accompanying report address management challenges of the 
Federal agencies funded herein, including directives to 
strengthen financial and program management, eliminate 
redundancy, and improve implementation and oversight of 
initiatives that support the mission of this bill. The 
Committee will use every means at its disposal to reduce 
mismanagement that results in waste, fraud, and abuse.
    Department of Defense.--In addition to the notification and 
reporting requirements for military construction programs 
contained in Title 10, United States Code, the Committee's 
recommendations include several provisions requiring the 
Department of Defense to report on various aspects of military 
construction programs, or to provide notification to the 
Committee when certain actions are taken. The Committee also 
retains prior approval authority for any reprogramming of funds 
exceeding a specific threshold.
    Department of Veterans Affairs (VA).--With the 
$147,581,766,000 provided for the VA in this bill and the 
increase in the number of veterans seeking VA medical services, 
the Committee believes it is important to strengthen its tools 
to monitor spending as well as the skills and operating 
procedures of the VA workforce. The following initiatives 
demonstrate the Committee's oversight focus:
    VA-DOD integrated electronic health record.--After years of 
inaction as the two Departments struggled to develop one 
unified record or different, but interoperable, systems, the 
Committee has taken the initiative to require that any 
electronic health record being developed must be a single, 
joint, common, integrated health record with an open 
architecture. Bill language requires both Departments to 
certify that their chosen system meets these requirements and 
no more than 25 percent of funding for the electronic health 
record can be obligated until the Government Accountability 
Office confirms the Secretaries' certification and a detailed 
spending plan is submitted to the Committee. With identical 
language included in this bill and the DOD appropriations bill, 
the Committee anticipates that the logjam on developing an 
electronic health record will finally be broken.
    Disability claims backlog reduction.--In addition to fully 
funding the administration request of $155,000,000 for the 
Veterans Benefits Management System, the paperless information 
technology system designed to speed processing, and 
$136,440,000 for digital scanning of health and benefits files, 
the Committee implements aggressive monthly reporting from each 
specific regional office on claims processing performance and 
quarterly reports on corrective action efforts at the poorest 
performing regional offices.
    Excessive overhead in medical services funding.--The 
Committee has heard concerns from Members that the VA retains 
too much of the funding provided by Congress at headquarters 
and at the regional health networks instead of allowing it to 
flow through to the medical centers. The Committee is 
monitoring the allocation process VA uses, mandating that VA 
provide information annually identifying the use of all funding 
retained at headquarters, as well as the funding retained by 
each network and for which purposes. In addition, the Committee 
is requesting regular budget information to better identify 
administrative expenses that are hidden in medical services 
appropriations.
    Stricter control of construction funding.--The VA 
historically has allowed billions of dollars for its major 
construction projects to remain unobligated for years at a time 
while VA completes designs, negotiates with contractors, and 
complies with local, State, and Federal paperwork. The 
Committee continues bill language limiting the availability of 
these funds to five years, which is the same period of time the 
Committee makes Military Construction funding available. The 
Committee understands that this limitation has already forced 
modifications to the VA construction process and anticipates 
that it will generate more efficient construction that will 
better serve veterans.
    Bid savings and project scope control.--In the past, the VA 
has been given considerable flexibility in allocating funding 
for major construction projects. The Committee continues bill 
language requiring the VA to notify the Committee of all bid 
savings totaling $5,000,000 or more, or five percent, whichever 
is less, within 14 days of the contract, as well as the 
proposed use of the funds. Additionally, the VA is not 
permitted to make any change in the scope of major construction 
projects. With these tools, the Committee expects to gain more 
control of construction funding that is no longer needed for 
its original purposes.
    Notification of change in use of funds.--To ensure that the 
Committee is informed of and approves of changes in planned 
uses of medical services funds, the bill continues a 
reprogramming requirement for significant changes in funding of 
non-model initiatives.

                                TITLE I


                         DEPARTMENT OF DEFENSE


                     Military Construction Overview


             (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)




Fiscal year 2013 enacted level\1\.....................   $10,600,755,000
Fiscal year 2014 budget request.......................    11,011,633,000
Committee recommendation in the bill..................     9,954,887,000
Comparison with:
    Fiscal year 2013 enacted level....................     (645,868,000)
    Fiscal year 2014 budget request...................  (1,056,746,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 
$9,954,887,000 for Military Construction, a decrease of 
$645,868,000 from the fiscal year 2013 enacted level and a 
decrease of $1,056,746,000 below the budget request.
    Reprogramming Guidelines.--The following reprogramming 
guidelines apply for all military construction and family 
housing projects. A project or account (including the sub-
elements of an account) which has been specifically reduced by 
the Congress in acting on the budget request is considered to 
be a Congressional interest item and as such, prior approval is 
required. Accordingly, no reprogramming to an item specifically 
reduced below the threshold by the Congress is permitted, 
except that the Department of Defense may seek reprogramming 
for appropriated increments.
    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) continue to apply to new housing 
construction projects and to improvements over $2,000,000. To 
provide the services the flexibility to proceed with 
construction contracts without disruption or delay, the costs 
associated with environmental hazard remediation such as 
asbestos removal, radon abatement, lead-based paint removal or 
abatement, and any other legislated environmental hazard 
remediation may be excluded, if such remediation requirements 
could not be reasonably anticipated at the time of the budget 
submission. This exclusion applies to projects authorized in 
this budget year, as well as projects authorized in prior years 
for which construction has not been completed. Planning and 
design costs associated with military construction and family 
housing projects may also be excluded from these guidelines. In 
instances where prior approval to a reprogramming request for a 
project or account has been received from the Committees on 
Appropriations of both Houses of Congress, the adjusted amount 
approved becomes the new base for any future increase or 
decrease via below-threshold reprogramming (provided that the 
project or account is not a Congressional interest item as 
defined above).
    In addition to these guidelines, the services are directed 
to adhere to the guidance for military construction 
reprogramming actions and notifications, including the 
pertinent statutory authorities contained in Department of 
Defense Financial Management Regulation 7000.14-R and relevant 
updates and policy memoranda. The Committee further encourages 
the Office of the Director of National Intelligence to use a 
format similar to that used by the Office of the Secretary of 
Defense to submit reprogramming requests.
    Facilities Sustainment, Restoration and Modernization 
(FSRM).--The Department of Defense 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. The Committee strongly encourages the 
        services and defense agencies to indicate the plant 
        replacement value of the facility to be repaired on 
        each such notification.
    Quarterly Summary of Notifications.--The Committee directs 
the services and the Office of the Secretary of Defense (on 
behalf of itself and defense agencies) to continue to submit a 
quarterly report listing all notifications that have been 
submitted to the Committees during the preceding three-month 
period.
    Work in Progress or Planned (WIP) Curve.--The Committee 
directs the services and the Office of the Secretary of Defense 
(on behalf of itself and defense agencies) to submit a WIP 
curve for each project requested in a budget submission over 
$100,000,000 with the 1391 justification beginning in fiscal 
year 2015 and thereafter to the congressional defense 
committees.
    Transfer of funds to and from the Foreign Currency 
Fluctuations, Construction, Defense Account.--The Committee 
directs the Department of Defense to submit a quarterly report 
to the Committees on Appropriations of both Houses of Congress 
on the transfer of funds from military construction and family 
housing accounts to the Foreign Currency Fluctuations, 
Construction, Defense account. The report shall specify the 
amount transferred to the Foreign Currency account from each 
military construction and/or family housing account, and all 
other accounts for which an appropriation is provided in this 
Act, during the preceding fiscal quarter, and the amounts 
transferred from the Foreign Currency account to the above 
accounts during the same period. This report shall be submitted 
no later than 30 days after the close of each fiscal quarter. 
In addition, the Department of Defense shall notify the 
Committees on Appropriations of both Houses of Congress within 
7 days of transferring any amount in excess of $10,000,000 to 
or from the Foreign Currency account.
    Bid savings.--The Committee has ascertained from cost 
variation notices required by 10 U.S.C. 2853 that the 
Department of Defense continues to have bid savings on 
previously appropriated military construction projects. The 
Committee's recommendation therefore includes rescissions to 
the Army, Navy, and Defense-Wide military construction 
accounts. As a result of bid savings, the Committee directs the 
Secretary of Defense to continue to submit 1002 reports on 
military construction bid savings at the end of each fiscal 
quarter to the Subcommittee on Military Construction, Veterans 
Affairs, and Related Agencies of both the House and Senate.
    Incremental funding.--The Committee has stated repeatedly 
that while projects should be fully funded or separated into 
stand-alone phases where practicable, incremental funding 
should remain an option when it makes fiscal and programmatic 
sense. In some cases, the phased approach can drive up costs by 
requiring inefficient designs and separate bids that leave 
subsequent phases vulnerable to construction price inflation. 
However, the Committee will continue to exercise its 
prerogative to recommend incremental funding when circumstances 
dictate. The Committee therefore recommends incremental funding 
for the Public Health Command Lab Replacement at Aberdeen 
Proving Ground, Maryland and Ft. Bliss Hospital Replacement, 
Increment V, El Paso, Texas.
    CYBER Command at Fort Meade.--The Committee supports the 
Department of Defense's goal to stand up a Cyber Command. 
However, the recommendation does not include funding requested 
by the Navy and the Air National Guard for facilities for their 
Cyber mission. The Committee is concerned that the Cyber 
mission is not clearly defined at Fort Meade and could be 
planned in a more cost efficient manner. Therefore, the 
Committee directs the Head of U.S. Cyber Command and the 
director of the National Security Agency to provide a master 
plan for Fort Meade that incorporates all facilities (to 
include parking) by service and fiscal year, an explanation of 
why 148,884 square feet for the three projects requested cannot 
be incorporated into the CYBERCOM Joint Operations Center also 
requested in fiscal year 2014 and the number of personnel that 
will be dedicated to this mission on Fort Meade.
    Drawdown of Facilities in Afghanistan.--Since decisions to 
close or transfer facilities in Afghanistan have yet to be 
determined, the Committee directs the Secretary of Defense to 
report to the Committee quarterly on the status of Afghanistan 
facilities transferred or closed to include: (1) the name of 
the base closed or transferred, (2) the date and the 
organization to which the base was transferred, (3) the 
estimated residual value of the new structures or improvements, 
(4) identification and rationale for military construction 
projects planned, cancelled or reduced in scope, and (5) the 
current estimated dates and estimated cost to complete ongoing 
projects.
    Guam Relocation.--To help the Committee better understand 
the non-Department of Defense (DOD) funding that domestic 
federal agencies are providing for the Guam relocation, the 
Office of Management and Budget is directed no later than 90 
days after enactment of this Act to identify, through a 
consolidated budget request, the non-DOD Federal agencies that 
provide funds specifically for the relocation, and the amount 
that each agency provided in fiscal years 2010-2013, and the 
amounts that have been requested for fiscal year 2014. 
Additionally, the DOD is directed to notify the congressional 
defense committees when funds are received in the treasury and 
expended from the Government of Japan.
    Facilities Management, Life-cycle Costs, and Construction 
Method Alternatives.--The Committee believes that the military 
construction program best serves both our military personnel 
and the taxpayers when projects are open to competitive bidding 
from contractors representing the widest possible range of 
construction methods. To that end, the Committee urges the 
Department of Defense and the execution agents for military 
construction, principally the Army Corps of Engineers and the 
Naval Facilities Engineering Command, to ensure that requests 
for proposals or qualifications do not arbitrarily foreclose, 
discourage, or privilege any type of construction method. The 
Committee continues to encourage a level playing field for both 
traditional construction methods and alternative methods such 
as permanent modular construction. The Committee also 
encourages DOD to evaluate the regular use of carbon fiber grid 
precast concrete technology in military construction projects.
    The Committee is also concerned by the recent report from 
the Government Accountability Office (GAO-10-436) indicating 
that varying services' attitudes toward the life-cycle costs of 
different construction methods were based more on pre-formed 
opinions, personal experiences, and anecdotal evidence rather 
than quantitative information or analyses. The Committee 
therefore urges DOD and the services to conduct further 
research regarding comparative life-cycle costs for differing 
types of construction, establish clear goals and benchmarks, 
and ensure these standards are communicated to contracting 
officials. Until such an empirical basis is established, the 
Committee urges DOD and the services to carefully reconsider 
blanket use of any new life-cycle approaches that depart from 
prior, standard practices.
    Child Development Centers.--The Committee encourages the 
Department of Defense to reaffirm its commitment to providing 
exceptional child care facilities on all domestic and 
international military installations. The Committee also 
encourages the Department of Defense to ensure that Child 
Development Centers located on military installations offer a 
safe child care environment and meet professional standards for 
early childhood education.
    Sustainable Buildings Policy.--The Committee supports the 
Department of Defense's commitment to green buildings, and its 
goal to promote cost-effective sustainability. However the 
Committee is concerned that the Department of Defense's current 
approach to sustainable construction appears to select one 
green building certification system over others, particularly 
for wood products. The Committee expects the Department to 
ensure equal acceptance of forestry certification systems, and 
that systems designated as American National Standards are 
allowed to compete equally for use in the Department of 
Defense's building construction and major renovations while 
continuing to follow existing Buy America requirements. The 
Committee also strongly urges the Department of Defense to 
incorporate in its Sustainable Buildings Policy energy 
efficiency standards that are cost-effective, incorporate 
Energy Star components, and the results of life cycle 
assessments. The Committee directs the Deputy Under Secretary 
of Defense for Installations and Environment to provide a 
report to the congressional defense committees on the 
Department's efforts not later than 90 days after enactment of 
this Act.
    Facility Window Technologies.--The Committee supports the 
Department of Defense's commitment to green buildings and its 
goal to promote cost-effective sustainability by reducing 
building energy use. The Committee is aware that advanced 
window technologies, such as electrochromic windows, can be a 
key part of achieving such goals. When planning new 
construction, retrofits or upgrades, the committee recommends 
the Department perform a life-cycle cost/benefit assessment on 
the use of electrochromic windows relative to traditional 
static EnergyStar windows, in reducing building energy use in 
such projects, and recommends the Department ensure that the 
most life-cycle cost effective solutions are deployed in such 
projects while continuing to follow existing Buy America 
requirements. The Committee directs the Deputy Under Secretary 
of Defense for Installations and Environment to provide a 
report to the congressional defense committees on the 
Department's efforts not later than 90 days after enactment of 
this Act.
    Defense Access Roads.--The Committee is concerned that the 
Department of Defense has not sufficiently considered the 
potential impacts of inadequate transportation infrastructure 
around military installations that experienced significant 
growth as a result of the 2005 Base Realignment and Closure 
actions. The Committee directs the Secretary of Defense to 
prioritize Defense Access Roads projects based on the need for 
additional transportation infrastructure at impacted military 
facilities and report to the congressional defense committees 
no later than 30 days after enactment of this Act the Defense 
Access Roads budget plan for the outyears 2015-2018.
    Military Construction Project Delivery.--The Committee is 
aware that the design-build project delivery method is 
conducted under one guaranteed contract, offers fast track 
aspects, cost savings, and decreased litigation claims. The 
Design-Build method reduces construction costs, speeds up 
construction time and guarantees quality in all measured 
categories. Therefore, the Committee encourages the use of this 
method, when appropriate, in order to provide greater 
efficiency, lower life cycle costs, and expedite construction, 
repairs and alterations of Federal buildings.
    Non-cash Payments in Kind.--In light of recently disclosed 
information on non-cash payments in kind the Committee directs 
the Secretary of Defense to provide an explanation of ``non-
cash payments in kind'' to the congressional defense committees 
no later than 60 days after enactment of this Act to include 
all facilities by locations, the construction and repair 
projects performed by Host Nations and the monetary value of 
the facilities and projects.

                      Military Construction, Army


                    (INCLUDING RESCISSIONS OF FUNDS)




Fiscal year 2013 enacted level\1\.....................    $1,682,639,000
Fiscal year 2014 budget request.......................     1,119,875,000
Committee recommendation in the bill..................     1,099,875,000
Comparison with:
    Fiscal year 2013 enacted level....................     (582,764,000)
    Fiscal year 2014 budget request...................     (20,000,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $1,099,875,000 
for Military Construction, Army, a decrease of $582,764,000 
below the fiscal year 2013 enacted level and a decrease of 
$20,000,000 below the budget request. The Committee 
recommendation also includes two rescissions from prior year 
unobligated balances under Administrative Provisions of title 
I.
    Programmatic Environmental Assessment for Force Structure 
Realignment 2020.--The Committee supports the Army's need to 
responsibly decrease the Army's active duty end-strength from 
562,000 at the end of Fiscal Year 2012 to 490,000 by Fiscal 
Year 2020. The Committee notes that there have been 
unprecedented increases in military construction taken to 
support the Army's BRAC 2005 and Grow the Army initiatives, 
resulting in infrastructure to support 75,000 additional 
soldiers in the United States. Army planning to potentially add 
combat maneuver battalions and supporting units at certain 
installations in support of Army 2020 may result in a sizeable 
obligation to the Army's budget at the same time the Army is 
trying to reduce the size of its force structure. The Committee 
therefore directs the Secretary of the Army to report to the 
congressional defense committees on the feasibility of 
implementing the Army 2020 strategy using existing facilities 
and sustainment, restoration and modernization and minor 
military construction funding authorities no later than 60 days 
after enactment of this Act.

              Military Construction, Navy and Marine Corps


                    (INCLUDING RESCISSION OF FUNDS)




Fiscal year 2013 enacted level\1\.....................    $1,547,615,000
Fiscal year 2014 budget request.......................     1,700,269,000
Committee recommendation in the bill..................     1,616,281,000
Comparison with:
    Fiscal year 2013 enacted level....................        68,666,000
    Fiscal year 2014 budget request...................      (83,988,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $1,616,281,000 
for Military Construction, Navy and Marine Corps, an increase 
of $68,666,000 above the fiscal year 2013 enacted level and a 
decrease of $83,988,000 below the budget request. The Committee 
recommendation also includes a rescission from prior year 
unobligated balances under Administrative Provisions of title 
I.
    BAMS Consolidation.--The Committee is concerned that the 
Navy is consolidating certain entities without providing a 
detail plan as to cost and timeline. Therefore, the Committee 
directs the Secretary of the Navy to provide to the 
congressional defense committees a detailed report describing 
the full cost for the complete development of the site, 
including all communication costs on and off-base, as well as 
the security risks to the information and communication by 90 
days after enactment of this Act.

                    Military Construction, Air Force





Fiscal year 2013 enacted level\1\.................          $322,220,000
Fiscal year 2014 budget request...................         1,156,573,000
Committee recommendation in the bill..............         1,127,273,000
Comparison with:
    Fiscal year 2013 enacted level................           805,053,000
    Fiscal year 2014 budget request...............         (29,300,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $1,127,273,000 
for Military Construction, Air Force, an increase of 
$805,053,000 above the fiscal year 2013 enacted level and 
$29,300,000 below the budget request.
    US STRATCOM Replacement Facility.--The Committee is aware 
of the critical importance nuclear readiness plays in our 
national security and defense posture. Providing safe, stable, 
and ever-alert nuclear readiness requires investment in and 
dedication to our nuclear infrastructure. The timely completion 
of projects throughout our nation's nuclear enterprise and our 
nuclear deterrence itself may be put at risk if this project is 
delayed due to reductions in funding. As such, the Committee 
recommends full funding for the US STRATCOM Replacement 
Facility, Increment 3.

                  Military Construction, Defense-Wide


             (INCLUDING RESCISSIONS AND TRANSFER OF FUNDS)




Fiscal year 2013 enacted level\1\.................        $3,578,841,000
Fiscal year 2014 budget request...................         3,985,300,000
Committee recommendation in the bill..............         3,707,923,000
Comparison with:
    Fiscal year 2013 enacted level................           129,082,000
    Fiscal year 2014 budget request...............        (277,377,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $3,707,923,000 
for Military Construction, Defense-Wide, an increase of 
$129,082,000 above the fiscal year 2013 enacted level and a 
decrease of $277,377,000 below the budget request. The 
Committee recommendation also includes two rescissions from 
prior year unobligated balances under Administrative Provisions 
of title I.
    Reductions.--The Committee recommendation includes a 
reduction to the Aegis Ashore Missile Defense System Complex in 
Romania of $5,000,000 to the budget request and a rescission of 
$20,000,000 from the fiscal year 2013 enacted level. The 
recommendation also includes a reduction to contingency 
construction of $10,000,000 to the budget request, an account 
that has not been used since 2008.
    Transfer of Funds.--The accompanying bill provides transfer 
authority to the Secretary of Defense to allow the transfer of 
funds to such appropriations of the Department of Defense 
available for military construction or family housing as the 
Secretary may designate.
    DODEA School Construction.--The Committee fully supports 
the fiscal year 2014 request for the construction of 17 schools 
in the United States and overseas. The Committee however, is 
concerned that the changes that are occurring across the 
Department of Defense associated with force structure 
reductions may impact whether funding is needed at an 
installation or if it is determined not to be an enduring 
installation. The Committee therefore directs the Director of 
the Department of Defense Education Activity (DODEA) to report 
on the status of DODEA funding and provide by location any 
funding that has been placed on hold for any reason to the 
congressional defense committees 90 days after enactment of 
this Act.
    Energy Conservation Investment Program.--The Committee 
believes that as new construction and retrofit projects are 
undertaken at facilities to improve building energy efficiency 
and achieve the objectives prescribed in statutes, executive 
orders, and initiatives, the Department of Defense is 
encouraged to utilize new and underutilized, low-cost energy 
efficient technologies that provide the best value to taxpayers 
through minimal lifecycle costs. The Deputy Under Secretary for 
Installations and Environment shall report to the congressional 
defense committees on the Department's plan to implement these 
technologies across the Department of Defense within 60 days of 
enactment of this Act.
    Special Operations Command Resiliency and Human Performance 
Centers.--The Committee's recommendation does not include 
funding for the three Performance Centers. The Committee is 
concerned that these facilities are redundant in nature to 
existing medical facilities, clinics and gymnasiums located at 
the installations. Further, the Committee is concerned that the 
Special Operations Command leadership has not adequately 
addressed how to incorporate the treatment received at these 
centers into the servicemembers' service treatment records 
(STR). Finally, the Committee directs the Command Surgeon US 
Special Operations Command to provide the congressional defense 
committees a master plan for these facilities by installation 
and fiscal year including unit cost, square footage and how the 
treatment received at these facilities is different from 
treatment received at current facilities and how it will be 
incorporated into the servicemembers' STR.

                   Guard and Reserve Item of Interest

    Enforcement of Border Security.--Recognizing the need to 
bolster resources for the enforcement of border security, the 
Committee encourages the Army National Guard and the Air 
National Guard to consider, design, and construct facilities 
adjacent to our southwestern border that will support National 
Guard activities and house and support defense assets used by 
Customs and Border Protection and other law enforcement 
agencies for the terrestrial, maritime, and aerial surveillance 
of those borders, to include aircraft hangars suitable for 
unmanned aerial systems.

               Military Construction, Army National Guard





Fiscal year 2013 enacted level\1\.................          $613,185,000
Fiscal year 2014 budget request...................           320,815,000
Committee recommendation in the bill..............           315,815,000
Comparison with:
    Fiscal year 2013 enacted level................         (297,370,000)
    Fiscal year 2014 budget request...............          (5,000,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $315,815,000 
for Military Construction, Army National Guard, a decrease of 
$297,370,000 from the fiscal year 2013 enacted level and 
$5,000,000 less than the budget request.

               Military Construction, Air National Guard


                    (INCLUDING RESCISSION OF FUNDS)




Fiscal year 2013 enacted level\1\.................           $42,344,000
Fiscal year 2014 budget request...................           119,800,000
Committee recommendation in the bill..............           107,800,000
Comparison with:
    Fiscal year 2013 enacted level................            65,456,000
    Fiscal year 2014 budget request...............         (12,000,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $107,800,000 
for Military Construction, Air National Guard, an increase of 
$65,456,000 above the fiscal year 2013 enacted level and a 
decrease of $12,000,000 below the budget request. The Committee 
recommendation also includes a rescission from prior year 
unobligated balances under Administrative Provisions of title 
I.

                  Military Construction, Army Reserve





Fiscal year 2013 enacted level\1\.................          $305,540,000
Fiscal year 2014 budget request...................           174,060,000
Committee recommendation in the bill..............           174,060,000
Comparison with:
    Fiscal year 2013 enacted level................         (131,480,000)
    Fiscal year 2014 budget request...............                 - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $174,060,000 
for Military Construction, Army Reserve, a decrease of 
$131,480,000 below the fiscal year 2013 enacted level and the 
same as the budget request.

                  Military Construction, Navy Reserve





Fiscal year 2013 enacted level\1\.....................       $49,482,000
Fiscal year 2014 budget request.......................        32,976,000
Committee recommendation in the bill..................        32,976,000
Comparison with:
    Fiscal year 2013 enacted level....................      (16,506,000)
    Fiscal year 2014 budget request...................            - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $32,976,000 
for Military Construction, Navy Reserve, a decrease of 
$16,506,000 below the fiscal year 2013 enacted level and the 
same as the budget request.

                Military Construction, Air Force Reserve





Fiscal year 2013 enacted level\1\.....................       $10,968,000
Fiscal year 2014 budget request.......................        45,659,000
Committee recommendation in the bill..................        45,659,000
Comparison with:
    Fiscal year 2013 enacted level....................        34,691,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $45,659,000 
for Military Construction, Air Force Reserve, an increase of 
$34,691,000 above the fiscal year 2013 enacted level and the 
same as the budget request.

     North Atlantic Treaty Organization Security Investment Program





Fiscal year 2013 enacted level\1\.....................      $253,909,000
Fiscal year 2014 budget request.......................       239,700,000
Committee recommendation in the bill..................       199,700,000
Comparison with:
    Fiscal year 2013 enacted level....................      (54,209,000)
    Fiscal year 2014 budget request...................     (40,000,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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, both 
within NATO nations and for ``out of area'' operations such as 
Afghanistan.
    The Committee recommends an appropriation of $199,700,000 
for NSIP, a decrease of $54,209,000 below the fiscal year 2013 
enacted level and $40,000,000 below the budget request.
    The U.S. occasionally has been forced to temporarily delay 
the authorization of projects due to shortfalls in U.S. 
obligation authority. The Committee directs the Secretary of 
Defense to notify the Committee within 14 days of the U.S. 
taking action to temporarily delay the authorization of 
projects, or to temporarily withhold funds from previously 
authorized projects, due to shortfalls in U.S. obligation 
authority.

                        Family Housing Overview





Fiscal year 2013 enacted level\1\.....................    $1,649,130,000
Fiscal year 2014 budget request.......................     1,542,713,000
Committee recommendation in the bill..................     1,542,713,000
Comparison with:
    Fiscal year 2013 enacted level....................     (106,417,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 
$1,542,713,000 for family housing construction, family housing 
operation and maintenance, and the homeowners assistance 
program, a decrease of $106,417,000 below the fiscal year 2013 
enacted level and the same as the budget request. The decrease 
below the 2013 enacted level is due partly to the Department of 
Defense's success in implementing the Military Housing 
Privatization Initiative on military installations and the 
reduced requirement for appropriated construction and operating 
costs. The Committee encourages the Department, where feasible, 
to utilize energy efficient, environmentally friendly, and 
easily deployable composite building materials in new family 
housing construction.
    Family Housing Privatization Progress Reports.--The 
Committee directs the Department of Defense to continue 
submitting semi-annual progress reports on the family housing 
privatization program, including a breakout of military tenant 
satisfaction rates by project.
    Foreign Currency Savings and Sub-account Transfers.--The 
Committee directs that savings in family housing operation and 
maintenance accounts from foreign currency re-estimates be used 
to maintain and repair existing family housing units. The 
Comptroller is directed to report to the Committees on 
Appropriations of both Houses of Congress on how these savings 
are allocated 90 days after enactment of this Act. In addition, 
the Committee directs the services and Defense agencies to 
notify the Committees on Appropriations of both Houses of 
Congress within 30 days of a transfer of funds between sub-
accounts within the family housing construction and family 
housing operation and maintenance accounts, if such transfer is 
in excess of 10 percent of the funds appropriated to the sub-
account to which the funds are being transferred. Notifications 
to the Committees shall indicate the sub-accounts and amounts 
that are being used to source the transfer.
    Leasing Reporting Requirements.--The Secretary of Defense 
is directed to report to the Committees on Appropriations of 
both Houses of Congress 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.

                   Family Housing Construction, Army





Fiscal year 2013 enacted level\1\.....................        $4,636,000
Fiscal year 2014 budget request.......................        44,008,000
Committee recommendation in the bill..................        44,008,000
Comparison with:
    Fiscal year 2013 enacted level....................        39,372,000
    Fiscal year 2014 budget request...................            - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $44,008,000 
for Family Housing Construction, Army, an increase of 
$39,372,000 above the fiscal year 2013 enacted level and the 
same as the budget request.

             Family Housing Operation and Maintenance, Army





Fiscal year 2013 enacted level\1\.....................      $529,521,000
Fiscal year 2014 budget request.......................       512,871,000
Committee recommendation in the bill..................       512,871,000
Comparison with:
    Fiscal year 2013 enacted level....................      (16,650,000)
    Fiscal year 2014 budget request...................            - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $512,871,000 
for Family Housing Operation and Maintenance, Army, a decrease 
of $16,650,000 below the fiscal year 2013 enacted level and the 
same as the budget request.

           Family Housing Construction, Navy and Marine Corps





Fiscal year 2013 enacted level\1\.....................      $102,080,000
Fiscal year 2014 budget request.......................        73,407,000
Committee recommendation in the bill..................        73,407,000
Comparison with:
    Fiscal year 2013 enacted level....................      (28,673,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $73,407,000 
for Family Housing Construction, Navy and Marine Corps, a 
decrease of $28,673,000 below the fiscal year 2013 enacted 
level and the same as the budget request.

    Family Housing Operation and Maintenance, Navy and Marine Corps





Fiscal year 2013 enacted level\1\.....................      $377,852,000
Fiscal year 2014 budget request.......................       389,844,000
Committee recommendation in the bill..................       389,844,000
Comparison with:
    Fiscal year 2013 enacted level....................        11,992,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $389,844,000 
for Family Housing Operation and Maintenance, Navy and Marine 
Corps, an increase of $11,992,000 above the fiscal year 2013 
enacted level and the same as the budget request.

                 Family Housing Construction, Air Force





Fiscal year 2013 enacted level\1\.....................       $83,740,000
Fiscal year 2014 budget request.......................        76,360,000
Committee recommendation in the bill..................        76,360,000
Comparison with:
    Fiscal year 2013 enacted level....................       (7,380,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $76,360,000 
for Family Housing Construction, Air Force, a decrease of 
$7,380,000 below the fiscal year 2013 enacted level and the 
same as the budget request.

          Family Housing Operation and Maintenance, Air Force





Fiscal year 2013 enacted level\1\.....................      $497,331,000
Fiscal year 2014 budget request.......................       388,598,000
Committee recommendation in the bill..................       388,598,000
Comparison with:
    Fiscal year 2013 enacted level....................     (108,733,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $388,598,000 
for Family Housing Operation and Maintenance, Air Force, a 
decrease of $108,733,000 below the fiscal year 2013 enacted 
level and the same as the budget request.

         Family Housing Operation and Maintenance, Defense-Wide





Fiscal year 2013 enacted level\1\.....................       $52,186,000
Fiscal year 2014 budget request.......................        55,845,000
Committee recommendation in the bill..................        55,845,000
Comparison with:
    Fiscal year 2013 enacted level....................         3,659,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $55,845,000 
for Family Housing Operation and Maintenance, Defense-Wide, an 
increase of $3,659,000 above the fiscal year 2013 enacted level 
and the same as the budget request.

         Department of Defense Family Housing Improvement Fund





Fiscal year 2013 enacted level\1\.....................        $1,784,000
Fiscal year 2014 budget request.......................         1,780,000
Committee recommendation in the bill..................         1,780,000
Comparison with:
    Fiscal year 2013 enacted level....................           (4,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 
using 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 directly appropriated and transferred 
funds from family housing construction accounts.
    The Committee recommends an appropriation of $1,780,000 for 
the Department of Defense Family Housing Improvement Fund, a 
decrease of $4,000 below the fiscal year 2013 enacted level and 
the same as the budget request.

          Chemical Demilitarization Construction, Defense-Wide





Fiscal year 2013 enacted level\1\.....................      $150,849,000
Fiscal year 2014 budget request.......................       122,536,000
Committee recommendation in the bill..................       122,536,000
Comparison with:
    Fiscal year 2013 enacted level....................      (28,313,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 $122,536,000 
for Chemical Demilitarization Construction, Defense-Wide, a 
decrease of $28,313,000 below the fiscal year 2013 enacted 
level and the same as the budget request.

                  Base Realignment and Closure Account





Fiscal year 2013 enacted level\1\.....................      $535,557,000
Fiscal year 2014 budget request.......................       451,357,000
Committee recommendation in the bill..................       451,357,000
Comparison with:
    Fiscal year 2013 enacted level....................      (84,200,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommends an appropriation of $451,357,000 
for the Base Realignment and Closure Account, a decrease of 
$84,200,000 below the fiscal year 2013 enacted level and the 
same as the budget request.

                       Administrative Provisions

    The bill includes 35 provisions of which 25 were in effect 
in fiscal year 2013 and 9 new provisions. The administrative 
provisions included in the bill are as follows:
    The bill includes section 101 prohibiting 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.
    The bill includes section 102 permitting the use of 
construction funds for the hire of passenger motor vehicles.
    The bill includes section 103 permitting funds to be 
expended on the construction of defense access roads under 
certain circumstances.
    The bill includes section 104 prohibiting construction of 
new bases in the United States without a specific 
appropriation.
    The bill includes section 105 limiting the use of funds for 
the purchase of land or land easements that exceed 100 percent 
of value except under certain conditions.
    The bill includes section 106 prohibiting the use of funds 
to acquire land, prepare sites, or install utilities for family 
housing except housing for which funds have been appropriated.
    The bill includes section 107 limiting the use of minor 
construction funds to relocate any activity from one 
installation to another without prior notification.
    The bill includes section 108 prohibiting the procurement 
of steel unless American producers, fabricators, and 
manufacturers have been allowed to compete.
    The bill includes section 109 prohibiting the use of funds 
to pay real property taxes in foreign nations.
    The bill includes section 110 prohibiting the use of funds 
to initiate a new installation overseas without prior 
notification.
    The bill includes section 111 establishing a preference for 
United States architectural and engineering services where the 
services are in Japan, NATO member countries, or countries 
bordering the Arabian Sea.
    The bill includes section 112 establishing a preference for 
United States contractors for military construction in the 
United States territories and possessions in the Pacific and on 
Kwajalein Atoll, or countries within the Central Command area 
of responsibility, except bids by Marshallese contractors for 
military construction on Kwajalein Atoll.
    The bill includes section 113 requiring the Secretary of 
Defense to give prior notice to Congress of military exercises 
where construction costs exceed $100,000.
    The bill includes section 114 allowing funds appropriated 
in prior years to be used for new projects authorized during 
the current session of Congress.
    The bill includes section 115 allowing the use of expired 
or lapsed funds to pay the cost of supervision for any project 
being completed with lapsed funds.
    The bill includes section 116 providing 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.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 117 allowing for the transfer of 
proceeds from ``Base Realignment and Closure Account, Part I'' 
to the continuing Base Realignment and Closure accounts.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 118 allowing 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.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 119 providing transfer authority 
to the Homeowners Assistance Program.
    The bill includes section 120 requiring 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 bill includes section 121 making funds in the Ford 
Island Improvement Fund available until expended.
    The bill includes section 122 prohibiting the use of funds 
for military construction, family housing, or land acquisition 
projects at installations closed or realigned under BRAC, 
except under certain conditions.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 123 allowing the transfer of 
expired funds to the ``Foreign Currency Fluctuations, 
Construction, Defense'' account.
    The bill includes section 124 prohibiting the use of funds 
for any action related to the expansion of Pinon Canyon 
Maneuver Site, Colorado.
    The bill includes section 125 prohibiting the use of funds 
to relocate a unit of the Army that would impact more than 200 
personnel.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 126 rescinding funds from prior 
appropriations Acts.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 127 rescinding funds from prior 
appropriations Acts.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 128 rescinding funds from prior 
appropriations Acts.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 129 rescinding funds from fiscal 
year 2012 planning and design funds from Military Construction, 
Army.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 130 rescinding funds from 
unspecified minor construction funds from Military 
Construction, Defense-Wide.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 131 rescinding funds from 
unspecified minor construction funds from Military 
Construction, Air National Guard.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 132 rescinding funds from prior 
appropriations Acts.
    The bill includes section 133 reducing the funds within 
this title.
    The bill includes section 134 as requested by the Army 
allowing the use of unobligated military construction funds to 
complete a prior year project.
    The bill includes section 135 that provides funding for 
projects that were dropped from the fiscal year 2013 future 
years defense program for fiscal year 2014 and are being 
requested in the fiscal year 2014 future years defense program 
for fiscal year 2015.
    The bill does not include section 121 as requested to 
provide authority to the Secretary of the Army to use O&M to 
supplement repair and renovation at Arlington Cemetery in 
addition to funds provided in title III.
    The bill does not include section 122 as requested to 
provide authority under a continuing resolution when an 
authorization bill has been enacted to obligate funds that have 
not been appropriated.

                                TITLE II


                     DEPARTMENT OF VETERANS AFFAIRS





Fiscal year 2013 enacted level12..................      $133,900,846,000
Fiscal year 2014 budget request\1\................       147,919,266,000
Committee recommendation in the bill\1\...........       147,581,766,000
Comparison with:
    Fiscal year 2013 enacted level................        13,680,920,000
    Fiscal year 2014 budget request...............         (337,500,000)
Fiscal year 2015 advance budget request\1\........        55,634,227,000
Fiscal year 2015 Committee recommendation in the         55,634,227,000
 bill\1\..........................................

\1\All funding cited excludes amounts in the Medical Care Collections
  Fund.
\2\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The Department of Veterans Affairs (VA) serves 
approximately 49,300,000 people: 22,300,000 veterans and 
27,100,000 family members of living veterans or survivors of 
deceased veterans. This group constitutes 15.5 percent of the 
United States population. To serve adequately the nation's 
veterans, the VA employs 311,000 people, making it one of the 
largest Federal agencies in terms of employment.
    The Committee recommends a total of $147,581,766,000 in 
budget authority for programs in fiscal year 2014, an increase 
of $13,680,920,000 or 10.2 percent above the fiscal year 2013 
enacted level and $337,500,000 below the budget request. In 
addition, advance appropriations of $55,634,227,000 are 
provided for fiscal year 2015.

                    Veterans Benefits Administration


                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2013 enacted level........................   $60,599,855,000
Fiscal year 2014 budget request.......................    71,248,171,000
Committee recommendation in the bill..................    71,248,171,000
Comparison with:
    Fiscal year 2013 enacted level....................    10,648,316,000
    Fiscal year 2014 budget request...................             - - -


    This appropriation will provide funds for service-connected 
compensation payments to an estimated 4,200,000 veterans, 
survivors, and dependents. In addition, pension payments will 
be funded for 517,000 veterans and their survivors. The average 
cost per compensation case for veterans in 2014 is estimated at 
$15,247, and pension payments are projected at $12,232.
    The Committee recommends an appropriation of 
$71,248,171,000 for compensation, pension, and burial benefits, 
an increase of $10,648,316,000 above the fiscal year 2013 
enacted level and the same as the budget request.
    The appropriation includes authority to transfer funding 
not to exceed $9,232,000, of which $9,058,000 is for the 
General Operating Expenses, Veterans Benefit Administration 
account and $174,000 is for the Information Technology Systems 
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 
applying the VA pension cap for Medicaid-eligible single 
veterans and surviving spouses alone in Medicaid-covered 
nursing homes. The bill also continues to include 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.

                         READJUSTMENT BENEFITS




Fiscal year 2013 enacted level........................   $12,023,458,000
Fiscal year 2014 budget request.......................    13,135,898,000
Committee recommendation in the bill..................    13,135,898,000
Comparison with:
    Fiscal year 2013 enacted level....................     1,112,440,000
    Fiscal year 2014 budget request...................             - - -


    This appropriation finances the education and training of 
veterans and servicemembers through the Post 9-11 GI Bill and 
the All-Volunteer Force Educational Assistance Program. 
Supplemental education benefits are also provided to certain 
veteran members of the Selected Reserve and are funded through 
transfers from the Department of Defense (DOD). In addition, 
certain disabled veterans are provided with vocational 
rehabilitation, specially adapted housing grants, and grants 
for automobiles with approved adaptive equipment. This account 
also finances educational assistance allowances for eligible 
dependents of 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 are 
missing in action. More than 75 percent of the funds in the 
account support the Post 9-11 GI Bill.
    The Committee recommends an appropriation of 
$13,135,898,000 for Readjustment Benefits, an increase of 
$1,112,440,000 above the fiscal year 2013 enacted level and the 
same as the budget request.

                   VETERANS INSURANCE AND INDEMNITIES




Fiscal year 2013 enacted level........................      $104,600,000
Fiscal year 2014 budget request.......................        77,567,000
Committee recommendation in the bill..................        77,567,000
Comparison with:
    Fiscal year 2013 enacted level....................      (27,033,000)
    Fiscal year 2014 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 $77,567,000 
for Veterans Insurance and Indemnities, a decrease of 
$27,033,000 below the fiscal year 2013 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 
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

----------------------------------------------------------------------------------------------------------------
                                                                                 Limitation on
                                                                                  direct loans
                                                              Program account    for specially    Administrative
                                                                                adapted housing    expenses\1\
                                                                                     loans
----------------------------------------------------------------------------------------------------------------
Fiscal year 2013 enacted level.............................       $184,859,000       ($500,000)     $157,656,000
Fiscal year 2014 budget request est........................              - - -        (500,000)      158,430,000
Committee recommendation est. in the bill..................              - - -        (500,000)      158,430,000
Comparison with:
    Fiscal year 2013 enacted level.........................      (184,859,000)            - - -          774,000
    Fiscal year 2014 budget request........................              - - -            - - -            - - -
----------------------------------------------------------------------------------------------------------------
\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    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 for 
funding subsidy payments, $500,000 for the limitation on direct 
loans for specially adapted housing loans, and $158,430,000 for 
administrative expenses. This is the same as the budget request 
and $774,000 above the fiscal year 2013 level for 
administrative expenses.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                                 Limitation on    Administrative
                                                              Program account     direct loans     expenses\1\
----------------------------------------------------------------------------------------------------------------
Fiscal year 2013 enacted level.............................            $19,000     ($2,729,000)         $346,000
Fiscal year 2014 budget request............................              5,000      (2,500,000)          354,000
Committee recommendation in the bill.......................              5,000      (2,500,000)          354,000
Comparison with:
    Fiscal year 2013 enacted level.........................           (14,000)        (229,000)            8,000
    Fiscal year 2014 budget request........................              - - -            - - -            - - -
----------------------------------------------------------------------------------------------------------------
\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    This appropriation covers the subsidy cost of direct loans 
for vocational rehabilitation of eligible veterans and includes 
administrative expenses necessary to carry out the direct loan 
program. Loans of up to $1,108 (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.
    The Committee recommends the budget request of $5,000 for 
funding subsidy program costs and $354,000 for administrative 
expenses, which is a decrease to the fiscal year 2013 level of 
$14,000 and an increase of $8,000, respectively. The 
administrative expenses may be paid to the General Operating 
Expenses, Veterans Benefit Administration account.
    In addition, the Committee includes language limiting 
direct loans to $2,500,000, which is $229,000 below the fiscal 
year 2013 level and the same as the budget request. It is 
estimated that the Department will make 2,738 loans in fiscal 
year 2014, with an average amount of $913.

              NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM




Administrative expenses:
Fiscal year 2013 enacted level\1\.....................        $1,088,000
Fiscal year 2014 budget request.......................         1,109,000
Committee recommendation in the bill..................         1,109,000
Comparison with:
    Fiscal year 2013 enacted level....................            21,000
    Fiscal year 2014 budget request...................            - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    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 
$1,109,000 for administrative expenses of the Native American 
Veteran Housing Loan Program, which is an increase of $21,000 
over the fiscal year 2013 level.

                     Veterans Health Administration

    The Department operates the largest Federal medical care 
delivery system in the country, with 152 hospitals, 107 
domiciliary residential rehabilitation treatment programs, 133 
nursing homes, 300 Vet Centers, 70 mobile Vet Centers, and 821 
outpatient clinics which include independent, satellite, 
community-based, and rural outreach clinics. Approximately 
6,500,000 patients will be treated in 2014.
    The Veterans Health Administration (VHA) is comprised of 
four accounts: Medical Services, Medical Support and 
Compliance, Medical Facilities, and Medical and Prosthetic 
Research. For these accounts, the Committee has provided total 
resources for fiscal year 2015 of $55,634,227,000 in direct 
appropriations to fund the three advance appropriations of the 
VHA. This is an increase of $1,172,227,000 above the fiscal 
year 2014 enacted level of $54,462,000,000 and the same as the 
budget request. In addition, VA will receive an estimated 
$2,485,000,000 in the Medical Care Collections Fund in fiscal 
year 2014. The Committee also provides $585,664,000 for medical 
and prosthetic research, which is $3,573,000 above the fiscal 
year 2013 enacted level and the same as the budget request.
    Presentation of medical care obligations.--The Committee 
continues to have concerns about the display of medical care 
spending in VA budget justifications. In its `obligations by 
program' chart, the Department currently separates medical care 
into: (1) components generated by the VA health care services 
model (or in some cases manually entered)--health care 
services, long-term care, and other health care programs; (2) 
unanticipated expenses generated by Congressional or regulatory 
action; and (3) what are termed `initiatives', even though the 
`initiatives' are typically not new and are also generated by 
the model. The funding levels for `initiatives' are generally 
displayed in the advance budget year as having zero cost, with 
the exception of closely watched programs like homelessness. 
This presentation understates advance year costs in the year 
the advance costs are being appropriated, since the 
`initiatives' are ongoing activities and the model projects 
advance year costs for them.
    The Committee believes that costs for `initiatives' in the 
advance budget year should be identified rather than being 
hidden in the modeled health care services lines or creating 
the need for an additional current appropriation. As a result, 
for the fiscal year 2015 and future budget submissions, the 
Committee expects a medical care obligation display showing (1) 
components generated by the model or manual input; and (2) 
unanticipated costs due to outside action not incorporated in 
the model. The unanticipated costs should be displayed in the 
first year they occur; in subsequent years they should be 
incorporated into the budget lines generated by the model. The 
Committee remains interested in the obligations patterns of 
`initiatives', like homelessness and activations, and proposes 
their display as non-adds similar to `operational 
improvements'. This approach will result in a more accurate 
multi-year total budget display and also provide reliable year-
to-year information about `initiatives' and medical services 
funding.
    To ensure that it is informed of changes in planned 
expenditure of medical care `initiatives' during the budget 
year, the Committee repeats the administrative provision 
requiring the VA to submit a reprogramming request if, at any 
point during the fiscal year, the funding allocated for a 
medical care `initiative' in the fiscal year 2014 expenditure 
plan is adjusted by more than $25,000,000 from the allocation 
shown in the corresponding congressional budget justification. 
The Committee directs the VA to provide an expenditure plan 
within 20 days of receiving a full-year appropriation.

                            MEDICAL SERVICES




Fiscal year 2013 enacted level\1\.....................   $41,508,845,000
Fiscal year 2014 enacted level........................    43,557,000,000
Fiscal year 2014 additional request...................       157,500,000
Fiscal year 2015 advance budget request...............    45,015,527,000
Committee 2015 recommendation in the bill.............    45,015,527,000
Comparison with:
    Fiscal year 2014 enacted level....................     1,458,527,000
    Fiscal year 2015 budget request...................            - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    This appropriation provides for medical services for 
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 VA.
    The Committee provides an advance appropriation of 
$45,015,527,000 for Medical Services for fiscal year 2015, an 
increase of $1,458,527,000, or 3.4 percent, above the fiscal 
year 2014 enacted level and the same as the budget request. The 
Committee has not included requested bill language to make 
available through September 30, 2016, $1,400,000,000 of the 
Medical Services appropriation for fiscal year 2015, instead 
maintaining current policy of providing extended availability 
on a current year rather than advance funding basis.
    The fiscal year 2014 budget includes a request for an 
additional $157,500,000 for Medical Services in fiscal year 
2014. The Committee does not provide this additional fiscal 
year 2014 funding. The Committee notes that the budget contains 
very little detail about the purposes and need for this 
funding. Should any shortfall occur, the Department should 
utilize funding from administrative expenses for VHA 
headquarters and the veterans integrated service networks 
(VISNs).
    The Committee expects VA to continue to include in the 
sufficiency letter required by section 117(d) of title 38, 
United States Code, that is due to the Congress on July 31 of 
each year, a description of any changes exceeding $250,000,000 
in funding requirements for the Medical Services account 
resulting from the spring recalculation of the Enrollee 
Healthcare Projection Model.
    Allocation of health funding.--The Committee is concerned 
that the process the VA uses to allocate the health services 
appropriation through the VISNs and from them to the medical 
centers may shortchange the ultimate users because of excessive 
funding retained at headquarters or at the VISNs. The Committee 
continues to request a report each year no later than thirty 
days after VA allocates the medical services appropriation to 
the VISNs that identifies: (1) the amount of general purpose 
funding that is allocated to each VISN; (2) the amount of 
funding that is retained by central headquarters for specific 
purposes, with amounts identified for each purpose; and (3) the 
amount of funding that is retained by each VISN before 
allocating it to the medical centers, identifying separately 
the amounts retained for purposes such as network operations, 
network initiatives, and emergencies.
    Homeless assistance.--The Committee provides the full 
fiscal year 2015 budget request of $1,000,000,000 for VA 
homeless assistance programs, in addition to $5,216,555,000 for 
homeless veterans treatment costs. These programs include the 
Homeless Providers Grant and Per Diem, the Domiciliary Care for 
Homeless Veterans, and the Department of Housing and Urban 
Development--Department of Veterans Affairs Supported Housing 
(HUD-VASH) programs.

Mental health issues

    The Committee provides the full fiscal year 2015 budget 
request of $7,717,270,000 for mental health programs, which is 
a $506,369,000, or 7.0 percent, increase over 2014 levels. Of 
the amounts provided for mental health programs, an additional 
$20,000,000 shall be used for suicide prevention outreach. The 
Department is directed to provide a report to the Committee no 
later than 30 days after enactment of this Act identifying a 
detailed expenditure plan for all suicide outreach programs and 
comparing these levels to the prior year.
    Suicide prevention.--With the withdrawal of troops in 
Afghanistan and Iraq, there has been a troubling increase in 
mental illnesses and suicide rates among our veterans. As noted 
in House Report 112-491, the Committee remains concerned about 
the current mental health and suicide prevention services that 
are readily available to our growing number of veterans and 
requests that the Department of Veterans Affairs report to the 
Committee how the VA is: (1) developing methods for tracking 
veterans with risk factors for suicide; (2) developing a plan 
to educate all staff who interact with veterans; (3) what 
mandatory education programs are available to VA health 
providers; and (4) how the characteristics of veteran-completed 
suicides compare to the general population.
    Expanding mental health services through community 
partnerships.--To augment its efforts to meet the need for 
services through the recruitment of additional mental health 
providers, the VA should also take advantage of the behavioral 
health infrastructure and capacity of non-VA health care 
providers that are available in many metropolitan areas. The 
Committee instructs the Department, within the funding provided 
for mental health care, to identify major metropolitan 
locations with (i) substantial veteran populations in need of 
mental health services and (ii) an existing non-VA behavioral 
health infrastructure that can support the delivery of 
additional services to that VA service population and arrange 
via competitive contracting for the provision of behavioral 
health services to these underserved veterans populations.
    Future mental health needs.--Previous wars have shown that 
the health care needs of a returning service member population 
reach their highest point a few decades after the population 
returns home from war. The Committee is concerned that the VHA 
is not adequately preparing for the future mental health needs 
of the current veteran population. The Committee requests that 
VHA prepare a report on what health resources will be needed 
and the potential cost to serve the needs of Iraq and 
Afghanistan veterans over the next 30 years.
    Military sexual trauma.--Recent studies have shown that 
servicewomen who experience sexual assault while serving in the 
military are far more likely to develop post-traumatic stress 
disorder (PTSD), compared to other female veterans. The 
Committee strongly encourages the VA to strengthen the 
resources provided to veterans who were victims of military 
sexual assault, particularly the availability of mental health 
services.
    Affiliations with university-based medical centers.--The 
Committee encourages the VA to strengthen collaborations with 
research universities and teaching hospitals for the treatment 
and research of mental health disorders, such as PTSD and 
traumatic brain injury, to improve the psychological health of 
veterans and train mental health professionals so they will 
understand the unique needs of veterans. The Committee repeats 
its request for a report on current VA-university partnerships 
on mental health research and training no later than 90 days 
after enactment of this Act.

Rural health issues

    The Committee provides the full fiscal year 2015 budget 
request of $250,000,000 to improve access and quality of care 
for the 3,400,000 veterans residing in rural and highly rural 
areas. The Committee directs the Office of Rural Health to 
submit to the Committee within 30 days of enactment of this Act 
an operating plan for this funding, as well as any changes to 
that operating plan at the start of the fiscal year for which 
the funds are provided.
    Non-VA care.--The Committee encourages the VA to increase 
its use of local private sector health care facilities and 
providers when feasible and cost-effective. The increased use 
of private providers can reduce the cost of per diem and 
mileage expended by the VA and prevents veterans from traveling 
long distances to get quality health care. When using non-VA 
facilities, VA should establish performance criteria and 
certify health care facilities to ensure quality control. In 
particular, the Committee urges the VA to make increased use of 
the care available to veterans through its Project ARCH (Access 
Received Closer to Home) pilot. Although very popular with 
veterans who receive care in the pilot, it appears that VISNs 
have been slow to refer patients to the pilot's providers.
    Patient-centered community care program.--The Committee has 
supported the Department's efforts to provide more efficient 
medical services to veterans in rural areas through the 
patient-centered community care program (PC3). The goal of the 
program is to contract with private insurers who manage a 
network of healthcare providers. The Committee is disappointed 
to learn, however, that VA has again extended the contract 
competition and hopes the delay will not jeopardize the options 
available to rural veterans for health care.
    The Committee has heard concerns that public hospitals may 
be disadvantaged by PC3. The Committee strongly urges the 
Department to ensure that PC3 contractors consider public 
hospitals in their implementation plans, especially when a 
public hospital is adjacent or proximate to a VA clinic, 
outpatient facility or long-term care facility.
    Rural access to military sexual trauma counseling.--The 
Committee is pleased with the VA's heightened awareness about 
mental health effects of military sexual trauma (MST). The 
Committee understands that Readjustment Counseling Centers (Vet 
Centers) provide qualified individuals at many vet centers to 
treat victims of military sexual trauma, with VA's goal being 
to have a qualified MST counselor on staff at each of the vet 
centers. The Committee is concerned that veterans living in 
rural areas who are geographically disadvantaged may not be 
able to access MST-related counseling from Vet Centers or non-
VA providers that have contracted with Vet Centers. To that 
end, the Committee encourages the Readjustment Counseling 
Centers to ensure that Vet Centers in rural states that 
contract out mental health services provide the same high 
quality counseling to MST survivors as their more urban 
counterparts currently receive.
    Assignment to health care centers.--The Committee has heard 
complaints that many veterans travel long distances because of 
the locations VA directs them for care even though there are 
closer, more easily accessible health center locations. The 
Committee repeats its request to the VA to report to the 
Committee about the method used to assign veterans to VA health 
care centers. The report should include a description of how 
often service areas change, what notification is made to 
veterans of such changes, and what appeal rights veterans have 
to use a different facility than the one to which they were 
assigned.
    Mobile medical units.--The Committee is concerned by the 
VA's underutilization of mobile medical units. Many of these 
units serve veterans in rural and highly rural areas, a 
population that makes up more than 40 percent of all veterans 
nationwide. Yet, some of these units are being deployed only 
four days per month and have sat unused in parking lots for 
months at a time. The Committee believes it is important to 
learn what obstacles exist, if any, to the full use of the 
mobile medical units. Therefore, the Committee directs the 
Office of Inspector General (OIG) to conduct a complete review 
of VA's use of mobile medical units, identifying what the 
average monthly usage is per vehicle and what the optimum usage 
would be; the staffing per vehicle and the extent to which 
staffing shortages have led to non-use of the vehicles; the 
average monthly cost per vehicle and any available comparisons 
between the cost of the units versus health care provided in 
conventional facilities; the total amount budgeted for the 
units in fiscal year 2012 and the actual costs incurred in that 
fiscal year; and VA's long-term plans for the mobile medical 
units pilot program. The Committee requests that the OIG submit 
this report no later than 90 days after enactment of this Act.

Other health issues

    Hepatitis C virus.--Nearly four million Americans are 
living with the Hepatitis C Virus (HVC), the most common blood-
borne viral infection and the leading cause of liver cancer in 
the U.S. Yet four out of every five cases of HVC remain 
undiagnosed. Chronic hepatitis C infection is curable in most 
patients. However, left untreated, the virus may lead to 
advanced liver disease, liver cancer, and liver transplants, 
placing a greater financial burden on the health care system. 
Recent studies indicate veterans have disproportionately higher 
rates of HVC than the general population. Therefore, the 
Committee encourages the VA to increase hepatitis C testing and 
work to implement the Center for Disease Control and 
Prevention's hepatitis C testing recommendations within the VA 
system. Enhanced testing, care and treatment strategies will 
not only improve the quality of life for veterans, they will 
also provide budgetary savings in medical services by reducing 
the high costs associated with advanced liver disease and its 
complications.
    Sleep disorders.--The Committee notes a small study 
described in the VHA report, ``State of VA Research 2012'', in 
which 96 percent of veterans with chronic multi-symptom 
illnesses experienced sleep-disordered breathing. By using 
continuous positive airway pressure (CPAP), these veterans 
reported reductions in pain and fatigue and improvements in 
cognitive function. The Committee encourages VA to continue to 
prioritize sleep research.
    HIV/AIDS among veterans.--The Committee is pleased at VA's 
success in expanding HIV/AIDS testing, but remains concerned 
that a substantial portion of the veteran population has never 
been tested for HIV/AIDS. The Committee continues to encourage 
VHA to implement routine HIV testing and to utilize rapid 
testing technology to ensure receipt of results.
    Kidney disease.--The Committee is aware of the development 
of the VA National Kidney Disease Registry. The registry is 
tasked with providing incidence and economic trends related to 
kidney disease and end stage renal disease in the VA patient 
population. The Committee encourages the VA to include focal 
segmental glomerulosclerosis, nephrotic syndrome, polycystic 
kidney disease and other conditions that contribute to chronic 
kidney disease in its planned monitoring.
    Prescription drug abuse.--Prescriptions for opioid 
painkillers administered by VA physicians have quadrupled since 
the beginning of the Afghanistan and Iraq wars. While this 
increase can likely be attributed, at least in part, to combat-
related injuries and the physical strains of multiple 
deployments, the Committee remains concerned about the abuse of 
prescription medications among veterans, particularly as 1 in 6 
veterans returning from these warzones reports symptoms of 
post-traumatic stress disorder (PTSD), which is strongly 
associated with substance abuse and dependence. It is 
imperative that treatment options are available for those 
facing possible addiction and that proper steps are taken to 
prevent overmedication, including adequate education and 
training for VA physicians prescribing pain medication. The 
Committee understands that the VA has already implemented a 
stepwise pain management program to reduce associated risks and 
has further developed a data set to identify veterans at risk 
for opioid dependence; however, the Committee urges the 
Secretary to mandate additional education for every VA 
physician issuing prescriptions for extended-release and long-
acting opioid analgesics. Specifically, the Committee 
encourages such VA physicians to participate in a Risk 
Evaluation and Mitigation Strategy (REMS)-compliant education 
program offered by an accredited provider of continuing 
education, which are available without charge through the U.S. 
Food and Drug Administration. The Committee directs VA to 
report to the Committee no later than 60 days after enactment 
of this Act on the feasibility of such mandatory continuing 
education and any costs associated with this requirement.
    Impact of obesity on the veteran population.--The Committee 
is concerned about the impact on the long-term health of 
veterans of the growing obesity epidemic, and wishes to ensure 
that VA physicians and other VA health care professionals 
receive the most up-to-date and relevant nutrition education 
possible. The Committee is troubled by recent studies that 
indicate physicians lack adequate nutrition education, 
including the fact that in 2010, only 25 percent of U.S. 
medical schools required a dedicated nutrition course. The 
Committee encourages the VA to ensure that VA physicians and 
other VA health care professionals have annual nutrition 
education, including in areas such as the role of nutrition and 
lifestyle in preventing obesity and preventing and reversing 
cardiovascular disease.
    Nursing quality improvements.--The Committee maintains a 
long-standing commitment to ensuring that the nation's veterans 
receive high-quality care, especially in hospital-based 
settings. Studies have shown that when data are collected about 
quality of care, patient outcomes, health, and well-being can 
be improved. The VA has been active in making available quality 
measurements on its Hospital Compare website and maintains a 
nursing-specific quality database for VA facilities. The 
Committee encourages the VA to consider expanding this nursing 
quality effort by participating in a national data quality 
measurement system that uses valid and reliable data from all 
types of inpatient facilities, not just those operated by the 
VA. The Committee understands that 54 VA hospitals already 
participate in such a system and encourages wider-scale 
adoption of national quality measurement systems.
    Guide dogs.--The Committee understands that the VA supports 
the use of guide dogs for a small number of veterans who have 
vision, hearing, and mobility impairments. The Department 
contributes to the costs of training, equipment and veterinary 
care; private non-profit organizations supply the guide dogs. 
The Committee encourages the VA to take a more active role in 
assisting veterans who are interested in acquiring guide dogs, 
helping them through the process of connecting with the 
organizations who supply dogs and contributing to the 
associated expenses of on-site training as well as lodging and 
transportation.
    Medical school affiliations with VA health care 
facilities.--The Committee continues to support a closer 
collaboration between VA health care facilities and the 
historically black health professions schools. The Committee is 
pleased with the improved collaboration with community-based 
outpatient clinics, but is concerned by lower participation of 
minority institutions with the larger, urban VA hospitals. The 
Committee repeats its request for a report about the symposium 
held in 2011 with VA health leaders and leaders of historically 
black health professions schools who came together to pursue 
the next steps of collaboration.
    Mental health provider training.--In 2006, Congress 
authorized the employment of licensed professional mental 
health counselors (LPMHCs) and marriage and family therapists 
(MFTs) by the VA. However, the two professions comprise less 
than one percent of the VA behavioral health workforce, despite 
representing almost 20 percent of the overall mental health 
workforce. To ensure an adequate supply of mental health 
professionals for the veteran population, the Committee urges 
the VA to consider providing LPMHCs and MFTs with financial 
stipends equivalent to those provided to the other mental 
health professions through the VA trainee support program run 
by the Office of Academic Affiliations.
    Clinical psychologist supply.--The Committee is aware that 
the Psychological Clinical Science Accreditation System (PCSAS) 
in September 2012 received recognition and accreditation 
authority from the Council for Higher Education Accreditation 
to provide accreditation of PhD programs in psychological 
clinical science. The Committee understands that the VHA is in 
the process of modifying its regulations to permit the training 
and employment of psychologists at the VHA who are graduates of 
PCSAS-accredited programs, and urges the VHA to promulgate the 
regulatory changes as soon as possible in order to increase the 
number of mental health clinicians available to veterans using 
the VA healthcare system.
    Coordinated health care for American Indian and Alaska 
Native veterans.--The Committee supports recent efforts by the 
VA and the Indian Health Service to develop a memorandum of 
understanding for improving health care to American Indian and 
Alaska Native veterans. An April, 2013 Government 
Accountability Office report (GA0-13-354) recommends further 
actions that both agencies can take. The Committee encourages 
the agencies to implement the GAO recommendations to the 
greatest extent possible, and to report to the Committee on 
these actions no later than March 1, 2014.

                     Medical Support and Compliance





Fiscal year 2013 enacted level\1\.....................    $5,746,000,000
Fiscal year 2014 enacted level........................     6,033,000,000
Fiscal year 2015 advance budget request...............     5,879,700,000
Committee 2015 recommendation in the bill.............     5,879,700,000
Comparison with:
    Fiscal year 2014 enacted level....................     (153,300,000)
    Fiscal year 2015 advance budget request...........             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The Medical Support and Compliance appropriation funds the 
expenses of management and administration of the Department's 
health care system, including financial management, public 
health and environmental hazard, quality and performance 
management, medical inspection, human research oversight, 
training programs and continuing education, security, volunteer 
operations, and human resources.
    The Committee recommends an advance appropriation of 
$5,879,700,000 for Medical Support and Compliance for fiscal 
year 2015, a decrease of $153,300,000 below the fiscal year 
2014 enacted level and the same as the budget request. The 
Committee has not included requested bill language to make 
available through September 30, 2016, $100,000,000 of the 
Medical Support and Compliance appropriation for fiscal year 
2015, instead maintaining current policy of providing extended 
availability on a current year rather than advance funding 
basis.

                           Medical Facilities





Fiscal year 2013 enacted level\1\.....................    $5,441,000,000
Fiscal year 2014 enacted level........................     4,872,000,000
Fiscal year 2015 advance budget request...............     4,739,000,000
Committee 2015 recommendation in the bill.............     4,739,000,000
Comparison with:
    Fiscal year 2014 enacted level....................     (133,000,000)
    Fiscal year 2014 advance budget request...........             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    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 advance appropriation of 
$4,739,000,000 for Medical Facilities for fiscal year 2015, a 
decrease of $133,000,000 below the fiscal year 2014 enacted 
level and the same as the budget request. The Committee has not 
included requested bill language to make available through 
September 30, 2016, $250,000,000 of the advance Medical 
Facilities appropriation for fiscal year 2015, instead 
maintaining current policy of providing extended availability 
on a current year rather than advance funding basis.

                    Medical and Prosthetic Research





Fiscal year 2013 enacted level\1\.....................      $582,091,000
Fiscal year 2014 budget request.......................       585,664,000
Committee recommendation in the bill..................       585,664,000
Comparison with:
    Fiscal year 2013 enacted level....................         3,573,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    This appropriation provides for 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. Budgetary resources from a number of areas, 
including appropriations from the medical care accounts, 
reimbursements from DOD, grants from the National Institutes of 
Health, private proprietary sources, and voluntary 
organizations, provide support for the Department's 
researchers. Estimated total research resources from all 
sources in 2014 are $1,882,000,000. The VA will support about 
2,200 research projects during fiscal year 2014.
    The Committee recommends $585,664,000 for Medical and 
Prosthetic Research, an increase of $3,573,000 above the fiscal 
year 2013 enacted level and the same as the budget request. 
Funds are available through September 30, 2015.
    Prosthetics.--The Committee strongly supports the fiscal 
year 2014 budget request for Medical and Prosthetic Research. 
Recognizing that approximately six percent of wounded veterans 
returning from Iraq and Afghanistan are amputees, and the 
number of veterans accessing VA health care for prosthetics and 
sensory aids continues to increase, this funding greatly 
enhances the quality of life of veteran amputees.
    Since three percent of military amputees are female, the 
Committee feels that a proportionate amount of prosthetics 
research should be focused on prosthetics meant for females. 
The need for this type of research is acute, as most prostheses 
are designed to fit male veterans. The Committee repeats its 
direction that the VA, in collaboration with the Prosthetic 
Women's Workgroup, issue a comprehensive report on female 
veteran amputees and their access to prosthetics. This report 
shall be submitted to the Committee within 90 days of enactment 
of this Act.
    Intelligent prostheses.--The Committee encourages the VA to 
fund research on the intersection between bioengineering, 
neuroscience, and rehabilitation to support intelligent 
prostheses that deliver more functionality to amputees.
    Neurological research.--The Committee is aware that the 
Department is conducting innovative research in new neuro-
diagnostic techniques, the relationship of TBI to PTSD, and 
clinical strategies to enhance neuro-rehabilitation of TBI and 
PTSD that will lead to maximum recovery of function and 
community reintegration. The Committee encourages efforts to 
demonstrate the effectiveness of innovative bench-to-bedside 
programs to detect and treat cognitive loss that accompany TBI 
and PTSD in affected veterans.
    Traumatic brain injury research.--The Committee encourages 
the VA to support TBI and psychological health research through 
pilot studies of promising treatments, clinical trials of 
treatments shown effective in earlier pilot studies, 
competitively awarded research grants, and the execution of 
collaborative treatment research plans developed by previously 
funded VA research.
    End stage renal disease.--The Committee recognizes that 
end-stage renal disease (ESRD) impacts veterans at a rate much 
higher than the national average and is often linked to such 
conditions as diabetes and hypertension. The Committee 
encourages continued research in this important area and 
requests a report on VA' s research activities related to 
kidney disease and ESRD no later than 60 days following 
enactment of this Act.
    Colorectal cancer.--Colorectal cancer is treatable if 
detected early, yet it is the second leading cause of cancer 
death in America. The VA has made screening patients for 
colorectal cancer a priority. The National Cancer Institute 
estimates the annual cost of colorectal cancer will be almost 
$20 billion by 2020. Medicare and the VA will be responsible 
for much of that cost. The Committee encourages the VA to 
support additional research and development in the field, 
including investigation of a less costly blood test for 
colorectal cancer.

                     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 Department uses these funds for 
medical care and services to veterans. The estimate of fees 
that will be collected in fiscal year 2014 is $2,485,000,000.

                    National Cemetery Administration





Fiscal year 2013 enacted level\1\.....................      $258,026,000
Fiscal year 2014 budget request.......................       250,000,000
Committee recommendation in the bill..................       250,000,000
Comparison with:
    Fiscal year 2013 enacted level....................       (8,026,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The National Cemetery Administration (NCA) 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 of, 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 tribal, and private cemeteries; to 
administer the grant program for aid to States and tribal 
governments in establishing, expanding, or improving State and 
tribal government veterans' cemeteries; and to administer the 
Presidential Memorial Certificate Program. This appropriation 
will provide for the operation and maintenance of 131 
operational national cemeteries and 33 other cemeterial 
installations.
    The Committee recommends an appropriation of $250,000,000 
for the National Cemetery Administration, a decrease of 
$8,026,000 below the fiscal year 2013 enacted level and the 
same as the budget request. The bill includes language making 
$25,000,000 of the total available until September 30, 2015.
    Rural needs.--In the explanatory statement that accompanied 
the Consolidated and Further Continuing Appropriations Act of 
2013 (P.L. 113-6), the Committees expressed concern that the 
NCA is not adequately serving the Nation's veterans in rural 
areas. The Act included legislative language requiring the 
Secretary of Veterans Affairs to provide a report outlining a 
strategy to address the shortcomings identified in House Report 
112-491, with proposed policies and an implementation timeframe 
no later the six months after enactment of Public Law 113-6. 
The Committee reiterates its support of this request and 
expects the Department to submit this report on time, with each 
directive fully satisfied as prescribed by the Committees. The 
Committee reminds the Department that any report on this matter 
received by the Committee that does not meet the mandates 
described in House Report 112-491 will lead to further action 
by the Committee.

                      Departmental Administration


                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2013 enacted level\1\.....................      $424,312,000
Fiscal year 2014 budget request.......................       403,023,000
Committee recommendation in the bill..................       403,023,000
Comparison with:
    Fiscal year 2013 enacted level....................      (21,289,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The general administration account provides funds for the 
Office of the Secretary, six Assistant Secretaries, and three 
independent staff offices. The Committee recommends 
$403,023,000, $21,289,000 below the fiscal year 2013 enacted 
level and the same as the budget request. The Committee has 
included bill language to make available through September 30, 
2015, up to $20,151,000 of these funds and to permit the 
transfer of funds in this account to the General operating 
expenses, Veterans Benefits Administration account.
    VA contracting issues.--The Committee continues to be 
concerned about the contracting practices of the Department of 
Veteran Affairs. The Committee believes that the VA should work 
to ensure it is contracting with reputable contractors who 
fulfill their contracts on time, within scope and with full 
payment to sub-contractors. The Committee repeats its request 
for a report due not later than 30 days after enactment of this 
Act that describes the number of active, ongoing contracts with 
contractors who are currently involved in litigation or legal 
disputes regarding nonpayment of their obligations related to 
VA contracts.
    VA budget office communication.--The Committee has 
traditionally channeled most of its inquiries and requests for 
information and assistance through the VA budget office. The 
Committee reiterates its longstanding position that while the 
Committee reserves the right to call upon all VA offices, the 
primary communication between the Committee and the VA should 
normally be through the budget office. Responses to Committee 
inquiries, regardless of whether they concern funding or 
policy, are to be transmitted without delay by other offices 
within the VA, unless otherwise requested by the Committee. In 
addition, to facilitate the work of the Committee, it expects 
that the Department will make available to all personal and 
committee staff of Members of the Committee the same direct 
contact with the budget office. The Committee also expects that 
a staff member of the VA budget office will be present at every 
meeting held between the Chairman and Ranking Member of the 
Subcommittee and the Secretary or other senior VA officials.
    Quarterly full-time equivalents (FTE) reports.--The 
Committee continues to request that the VA provide, on a 
quarterly basis, the total current FTE by appropriation account 
and, in the case of General Operating Expenses, Veterans 
Benefits Administration, by program. The Committee feels it 
needs to have current staffing information throughout the year 
in order to monitor the use of salaries and expenses resources.
    Additional budgetary information.--The Committee repeats 
its request that the budget justifications submitted each year 
with the Administration's budget should be expanded to include 
the following information which would help inform Congressional 
decisions:
           a brief explanation of any proposed change 
        in each account's appropriation bill language;
           a consolidated administrative expenses chart 
        for the entire Department;
           a chart displaying annual FTE counts by 
        appropriation account for the prior, current, and 
        budget years and transfers between accounts in all 
        three years, with brief explanations of reasons for 
        functional transfers;
           a section identifying each piece of 
        directive report language from the previous year's 
        House, Senate and conference reports and the VA action 
        taken for each item;
           a table breaking out the funding and FTE 
        supported within the ``administration'' object 
        classification for Medical Services by headquarters, 
        VISN, and medical center categories;
           a table breaking out the funding and FTE-
        equivalents within the ``administrative contract 
        services'' object classification for Medical Services 
        into headquarters, VISN, and medical center categories;
           a table breaking out the number of FTE in 
        the ``all other'' category in the `FTE by Type' Medical 
        Services chart in the Program Resource Data section of 
        the Congressional Submission by headquarters, VISN, and 
        medical center categories;
           a listing of the major occupational series 
        supported in the ``all other'' category, with the 
        number of FTE in these major categories;
           a table identifying the number and 
        percentage of total FTE by occupational series listed 
        in the `FTE by Type' chart who spend 50 percent or more 
        of their time on medical care;
           a detailed summary of the VA marketing 
        campaign budget, including the amounts expended on VA 
        advertising campaigns and a detailed list of outreach 
        methods; and
           the amount of funding contained in the major 
        construction working reserve at the beginning and end 
        of the current year, budget year and prior year, and 
        the purposes for which the reserve fund was used in the 
        prior year.
    Staff relocations within VA.--The Committee believes it 
should be notified prior to organizational changes that shift 
FTE from one organizational unit of VA to another. For example, 
the fiscal year 2014 budget was the first notice to the 
Committee that in 2012 the Department created a separate 
Pensions, DIC, Burial, and Fiduciary unit within VBA, shifting 
1,015 FTE. The Committee was also not notified that 165 FTE 
were transferred in 2012 from Disability Compensation to 
Education to support the workload of the Veterans Retraining 
Assistance Program (VRAP). The Committee requires notification 
15 days prior to any future staff reassignments of 25 or more 
FTE.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION




Fiscal year 2013 enacted level\1\.....................    $2,161,910,000
Fiscal year 2014 budget request.......................     2,455,490,000
Committee recommendation in the bill..................     2,455,490,000
Comparison with:
    Fiscal year 2013 enacted level....................       293,580,000
    Fiscal year 2014 budget request                                - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The General Operating Expenses, Veterans Benefits 
Administration account provides funding for the Veterans 
Benefits Administration (VBA) to administer entitlement 
programs such as service-connected disability compensation, 
education benefits, and vocational rehabilitation services.
    The Committee recommends $2,455,490,000 for General 
operating expenses, Veterans Benefits Administration, which is 
$293,580,000 above the fiscal year 2013 enacted level and the 
same as the budget request. The Committee has included bill 
language to make available through September 30, 2015, up to 
$123,000,000 of these funds. Language proposed in the budget 
relating to a limitation on purchase of vehicles for the 
Manila, Philippines regional office is no longer necessary and 
is not included in the bill.
    Claims processing backlog.--The Committee finds the VBA 
backlog in processing disability compensation claims 
unacceptable. Although for years the Committee has fully funded 
the President's budget request for additional staffing and 
increased information technology funding for the Veterans 
Benefits Management System (VBMS), the claims backlog continues 
to grow. Backlog as defined by the Department is the number of 
claims taking more than 125 days to process. The most recent 
data indicate that the average number of days to process a 
claim is 292, with averages in some regional offices exceeding 
450 days. Currently, 69 percent of the VA compensation caseload 
is backlogged, although VA estimated in its 2013 budget the 
percentage in backlog would be 40 percent in 2013. The 
Committee understands the VA believes the agency will be able 
to process claims within 125 days by 2015 when the VBMS is 
fully operational. While the Committee supports the use of 
technology to improve performance, the Committee is highly 
skeptical that the VBMS system will be able to eliminate these 
enormous backlogs by 2015. Therefore, the Committee intends to 
initiate a new level of oversight to ensure that it has monthly 
information identifying the changes in timeliness occurring at 
each of the 56 regional offices. As of the date of the 
publication of this House report, the Department is instructed 
to provide the Committee each month, ten days after the prior 
month has ended, a report that identifies for each month 
cumulatively throughout the fiscal year, both nationally and 
for each regional office: (1) the average number of days 
disability compensation claims are pending; (2) the share of 
the rating inventory that has been pending more than 125 days; 
(3) the rating claims accuracy on a three-month average; and 
(4) the month-to-month change in these indices, both by numeric 
value and percentage. The report may be in spreadsheet format. 
In addition, for each regional office with an average number of 
days pending for disability claims in excess of 200 days, the 
Department shall report to the Committee on a quarterly basis 
the actions taken, such as increases in claims processor FTE, 
staffing transfers, additional training, and technology 
adaptations, within the last quarter to reduce the backlog. 
While these reports are for the use of the Appropriations 
Committee, they are to be made available by the VA Office of 
Congressional and Legislative Affairs to any Member of the 
House of Representatives upon request.
    Expedited claims initiative.--The Committee is pleased that 
the VA has taken the corrective step of expediting claims 
decisions for veterans who have waited one year or longer for a 
decision by providing provisional ratings based on all evidence 
collected to date. Since this new approach is untested, the 
Committee requests a report by January 1, 2014 indicating: how 
many veterans previously in limbo have received provisional 
approval or been denied; what share of the total claims 
inventory these claims constitute; how many additional days 
were added to the claims review for these applications on 
average to conclude their consideration; the initiative's 
impact on the average length of time to complete a compensation 
claim overall and the average age of a claim in the inventory; 
and estimates of the average increase in the number of days 
required to process claims for those veterans who prior to the 
initiative had waited less than 100 days for a decision.
    Career counseling.--The Committee is concerned that a 
majority of veterans receiving education benefits provided by 
the Department are not requesting career counseling services 
available to them pursuant to section 3697A of title 38, U.S.C. 
The Committee urges the VA to perform outreach activities to 
better inform veterans about this benefit in order to achieve 
higher rates of post-graduation employment. In addition, the 
Committee requests the VA to submit a report to the Committee 
no later than 90 days after enactment of this Act detailing the 
Department's career counseling services provided to veterans. 
This report should include: (1) the number of veterans 
requesting this counseling in fiscal years 2011, 2012 and 2013; 
(2) the specific information that is provided to veterans in a 
counseling session, including any data provided on career 
options; and (3) an outreach plan to better inform veterans 
about the availability of career counseling.
    Job training coordination with the Labor Department.--The 
Committee understands there is a nationwide shortage of 
clinical laboratory technologists and technicians, and the 
vacancies in this occupation may be a good fit for the large 
number of veterans who are seeking employment. The Committee 
urges the VA to work with the Veterans' Employment and Training 
Service (VETS) within the Department of Labor (DOL) to align 
some portion of previously appropriated funds, or from funds 
that VETS may receive in fiscal year 2014, for programs 
specifically aimed at training for this occupational specialty. 
Authorized recipients for certain VETS training grants include 
community colleges and vocational schools, which are the sites 
that provide this type of training. The Committee hopes that 
the VA and DOL will give preferences in the award of VETS 
training grants to institutions that provide training for 
clinical lab technologists and technicians. In addition, the 
Committee encourages the VA to highlight the choice of training 
for these professions to veterans receiving counseling about 
the use of VA educational benefits, including post-9-11 G.I. 
bill benefits. The Committee requests the two Departments to 
report within 180 days of enactment of this Act the actions 
taken to comply with this directive.
    Disability ratings schedule.--It has come to the 
Committee's attention that the Veterans Affairs Schedule for 
Rating Disabilities (VASRD) does not consistently reflect, with 
up-to-date medical accuracy, the level of disability some 
veterans face. The Committee requests that the VA provide 
periodic updates to the VASRD based on current, medically-
accurate information. The Committee requires the Department to 
submit a report on the adoption of a medically accurate update 
to its VASRD system no later than nine months after the 
adoption of this bill.
    Military sexual trauma (MST)-related claims.--The Committee 
is pleased with the VA's increased focus on disability claims 
based on in-service personal assault, including intensive 
training and identification of specialized employees for MST-
related claims. However, the Committee continues to be informed 
about inconsistencies in the ratings process for MST victims 
and a lack of sufficient VA data identifying weaknesses and 
what strides have been made. Accordingly, the Committee 
requests the VA to report to the Committee certain information 
regarding MST-related claims to ensure veterans across the 
country receive consistent, timely and accurate decisions based 
on these claims. The VA should include in the report: (a) the 
number of MST-related claims submitted in the previous fiscal 
year; (b) the number and percentage of claims submitted by 
gender; (c) the number of denied claims, including number and 
percentage by gender; (d) the number of approved claims, 
including number and percentage by gender; (e) the number of 
claims assigned to each rating percentage; (f) the three most 
common reasons given for denial of such claims under section 
5104(b)(1) of title 38, U.S.C.; (g) the number of denials that 
were based on the failure of the veteran to report for a 
medical examination; (h) the number of claims that were pending 
at the end of the fiscal year (including claims on appeal); (i) 
the average number of days to complete MST claims; and (j) a 
description of the training provided to employees of VBA 
specifically with respect to covered claims, including the 
frequency, length and content of such training.
    Filipino war veteran claims.--In 2009, Congress established 
a compensation benefit for Filipino veterans who aided American 
troops in World War II. The Committee commends the VA for 
having processed over 40,000 Filipino veterans' claims to date, 
resulting in 18,764 individuals awarded benefits. The Committee 
urges the VA to consider all forms of evidence of service, and 
not only those originally considered, for claims that are still 
pending. The Committee requests that the VA submit a report on 
the number and status of awarded, pending, and denied Filipino 
war veteran claims by December 1, 2013.
    Access in remote areas.--The Committee encourages the VBA 
to work to increase the presence of staff in remote or 
underserved areas, such as the Commonwealth of the Northern 
Mariana Islands. Making sure veterans in remote and underserved 
areas receive access to veterans services is essential to 
honoring their sacrifices.

                     INFORMATION TECHNOLOGY SYSTEMS

                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2013 enacted level\1\.....................    $3,324,117,000
Fiscal year 2014 budget request.......................     3,683,344,000
Committee recommendation in the bill..................     3,683,344,000
Comparison with:
    Fiscal year 2013 enacted level....................       359,227,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    The Information Technology Systems account supports 
information technology (IT) services such as systems 
development and performance, operations and maintenance, 
information protection, and customer support. The program 
permits the effective and efficient delivery of veterans' 
healthcare services and benefits programs.
    The Committee recommends an appropriation of $3,683,344,000 
for Information Technology Systems, which is $359,227,000 above 
the fiscal year 2013 appropriation and the same as the budget 
request. Within the account total, as requested in the budget, 
the Committee allocates in bill language $1,026,400,000 for pay 
and associated costs; $2,161,653,000 for operations and 
maintenance; and $495,291,000 for development, modernization, 
and enhancement. $30,792,000 of pay and associated costs funds 
and $151,316,000 of operations and maintenance funds are 
available until September 30, 2015. All development, 
modernization, and enhancement funds are available until 
September 30, 2015. The budget requested that five percent and 
ten percent, respectively, of pay and operations funds be made 
available for two years.
    Integrated electronic health record.--The Committee has 
grown increasingly frustrated with the protracted negotiations 
to produce an integrated electronic health record (iEHR). Going 
back to at least 1996, when the Presidential Advisory Committee 
on Gulf War Veterans' Illnesses identified the problems created 
by incompatible DOD and VA medical records, the two agencies 
have made half-hearted efforts to move to interoperable 
systems. Despite the mandate for full interoperability in the 
2008 National Defense Act Authorization, it was not until 2011 
that the Secretaries of DOD and VA committed to a plan to 
create a single integrated health record. Two years of 
peripatetic activity passed, but earlier this year, the two 
Secretaries announced that they would no longer seek to create 
a single, common health record, instead falling back to a goal 
of interoperability.
    The Committee has received testimony indicating that it 
would be far better for servicemembers and veterans, as well as 
taxpayers, for DOD and VA to maintain one integrated electronic 
health record. In addition, the Secretary of VA confirmed in 
testimony that there is no technical reason one system could 
not be adapted to meet the needs of both Departments. The 
Secretary of DOD also recently indicated he was rethinking the 
fallback plan of an interoperable record and would make a 
decision within 30 days. In response, the Committee believes it 
is necessary to direct the two Departments toward one, 
integrated system by including bill language restricting the 
availability of funds for the development of an electronic 
health record unless the system meets the requirements of being 
single, joint, common, and integrated, with an open 
architecture, and is the sole system used by both DOD and VA. 
The Committee's action does not mandate the adoption of a 
particular system, only that it be a single system used by both 
Departments--not a patchwork of multiple, interoperable 
systems. Identical language will be included in the Department 
of Defense appropriations bill. The bill language requires 
written certification by both Secretaries that the integrated 
electronic health record that is chosen meets those 
requirements. It also restricts funding for development and 
procurement of the system to 25 percent of the total until the 
General Accountability Office validates the Secretaries' 
certification and the Committees approve an expenditure plan.
    The budget request includes $343,614,000 for the electronic 
health record--$251,882,000 for development and $91,732,000 for 
sustainment. The Committee expects these estimates to change 
once DOD and VA reach agreement on a single integrated 
electronic record and anticipates a reprogramming request from 
the Department to properly reallocate information technology 
resources. As part of the certification by the two Departments 
that they are developing one integrated electronic health 
record, the Committee expects an explanation of the anticipated 
future role, if any, of the DOD-VA Interagency Program Office 
and the uses of the funds spent to date by that office.
    The Committee continues to include bill language 
prohibiting obligation or expenditure of funds for information 
technology systems development, modernization and enhancement 
until the VA submits to the Committee a certification of the 
amounts. In addition, the Committee continues bill language 
permitting the transfer of funding among the three subaccounts 
upon approval of the Committees. The bill contains language 
which allows for the reprogramming of funds among development, 
modernization and enhancement projects upon prior notification 
to, and approval by, the Committee. The budget proposes a 
similar provision as an administrative provision. The bill 
continues to include language indicating that funds for 
development, modernization and enhancement are available only 
for the projects and in the amounts specified in the report 
accompanying the bill.
    The chart below reflects the Administration's budget 
request for development projects and includes the Committee 
recommendation for each. This chart will serve as the 
Department's approved list of development projects, and all 
requested changes are subject to the reprogramming guidelines 
as outlined in the accompanying Act.

              INFORMATION TECHNOLOGY DEVELOPMENT PROJECTS

                               ($ in 000s)
------------------------------------------------------------------------
                                                           Committee
              Project                 Budget request     recommendation
------------------------------------------------------------------------
Integrated Electronic Health                 $251,882           $251,882
 Record (iEHR) and VLER Health....
Veterans Relationship Management              120,157            120,157
 (VRM)............................
Veterans Benefits Management                   32,834             32,834
 System (VBMS)....................
New Models of Care................             32,647             32,647
Virtual Lifetime Electronic Record             11,352             11,352
 (VLER)...........................
Health Informatics................              7,774              7,774
International Classification of                 4,600              4,600
 Diseases-10......................
Access to Healthcare..............              3,645              3,645
Other.............................             30,400             30,400
                                   -------------------------------------
    Total All Development.........            495,291            495,291
------------------------------------------------------------------------

    Obligations report.--The Committee expects the Office of 
Information Technology to continue to provide an IT expenditure 
report to the Committees on Appropriations on a monthly basis. 
This report shall include a comparison to the project costs 
included in the development, modernization, and enhancement 
project funding chart included in the House report, and provide 
an explanation for any differences in excess of $1,000,000.

                      OFFICE OF INSPECTOR GENERAL




Fiscal year 2013 enacted level\1\.....................      $114,885,000
Fiscal year 2014 budget request.......................       116,411,000
Committee recommendation in the bill..................       116,411,000
Comparison with:
    Fiscal year 2013 enacted level....................         1,526,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    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 $116,411,000 
for the Office of Inspector General, an increase of $1,526,000 
above the fiscal year 2013 enacted level and the same as the 
budget request. The bill makes $6,000,000 of the total funding 
available until September 30, 2015.

                      CONSTRUCTION, MAJOR PROJECTS




Fiscal year 2013 enacted level\1\.....................      $531,938,000
Fiscal year 2014 budget request.......................       342,130,000
Committee recommendation in the bill..................       342,130,000
Comparison with:
    Fiscal year 2013 enacted level....................     (189,808,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    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 $342,130,000 
for Construction, Major Projects, a decrease of $189,808,000 
from the fiscal year 2013 enacted level and the same as the 
budget request. The Committee recommendation makes all but 
$20,000,000 of these funds available for a five-year period 
rather than until expended as requested in the budget, 
reflecting concern about the lengthy period that VA has taken 
to design and build major construction projects. The Committee 
hopes that limiting the time period during which these funds 
may be used will motivate the VA to better plan and design 
projects before funding is requested.
    The Committee recommendation provides requested funding to 
complete one major construction project and three VA national 
cemeteries. The Committee recommendation repeats an 
administrative provision which requires the Department to 
notify the Committee of all bid savings on contracts for 
construction projects that total at least $5,000,000 or 5 
percent of the programmed amount of the project and prohibits 
any changes from the original scope of work identified in the 
justification material submitted with the budget for each 
project.
    The specific amounts recommended by the Committee are as 
follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Committee
                    Location                                Description             2014 request  recommendation
----------------------------------------------------------------------------------------------------------------
Veterans Health Administration (VHA):
    Seattle, WA................................  Mental Health Bldg...............      $149,130       $149,130
    Advance Planning Fund......................  Various Stations.................        33,000         33,000
    Asbestos...................................  Various Stations.................         5,000          5,000
    Major Construction Staff...................  Various Stations.................        21,000         21,000
    Claims Analysis............................  Various Stations.................         2,000          2,000
    Hazardous Waste............................  Various Stations.................         5,000          5,000
                                                                                   -----------------------------
      Total VHA................................    ...............................       215,130        215,130
National Cemetery Administration (NCA):
    Central East FL............................  New Cemetery.....................        40,000         40,000
    Tallahassee, FL............................  New Cemetery.....................        40,000         40,000
    Omaha, NE..................................  New Cemetery.....................        36,000         36,000
    Advance Planning Fund......................  Various Stations.................         5,000          5,000
                                                                                   -----------------------------
      Total NCA................................    ...............................       121,000        121,000
    Veterans Benefits Administration--Dept         ...............................         1,000          1,000
     Advance Planning Funding for Major.
    General Administration--Staff Offices          ...............................         5,000          5,000
     Advance Planning Fund.
                                                                                   -----------------------------
    Major Construction total...................    ...............................       342,130        342,130
----------------------------------------------------------------------------------------------------------------

    Facilities for female veterans.--The Committee has received 
reports that the VA lacks adequate inpatient facilities for 
female veterans. The Committee requests a report no later than 
60 days after enactment of this Act describing the availability 
of inpatient facilities for female veterans, an inventory of 
available resources, and recommendations from the Department on 
areas for improvement.

                      CONSTRUCTION, MINOR PROJECTS




Fiscal year 2013 enacted level\1\.....................      $606,922,000
Fiscal year 2014 budget request.......................       714,870,000
Committee recommendation in the bill..................       714,870,000
Comparison with:
    Fiscal year 2013 enacted level....................       107,948,000
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.


    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 $714,870,000 
for Construction, Minor Projects, which is $107,948,000 above 
the fiscal year 2013 enacted level and the same as the budget 
request. As with the major construction account, the Committee 
recommendation makes these funds available for a five-year 
period rather than until expended as requested in the budget, 
reflecting concern about the long period that VA has taken to 
design and build construction projects.
    Health care center expansions.--Recognizing the lack of 
accessible VA services in many regions of the country, the 
Committee requested in the fiscal year 2013 report that the VA 
include in the VA Strategic Capital Improvement Plan (SCIP) the 
expansion of existing VA health care centers to include 
inpatient accommodations, urgent care services, and the full 
range of services required by women veterans when the absence 
of such services locally requires veterans to make round trips 
of more than five hours to access such services at a VA 
facility. The Committee instructs the VA to report within 180 
days of enactment of this Act whether any health care center 
facilities currently in the SCIP include inpatient 
accommodations and urgent care. If such facilities are not 
currently included in the SCIP, the report should provide an 
explanation of why this is not the Department's preferred 
mechanism to address veterans' access problems.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES




Fiscal year 2013 enacted level\1\.....................       $84,915,000
Fiscal year 2014 budget request.......................        82,650,000
Committee recommendation in the bill..................        82,650,000
Comparison with:
    Fiscal year 2013 enacted level....................       (2,265,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.


    This appropriation 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 $82,650,000 
for Grants for Construction of State Extended Care Facilities, 
to be available until expended, which is $2,265,000 below the 
fiscal year 2013 enacted level and the same as the budget 
request.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES




Fiscal year 2013 enacted level\1\.....................       $45,954,000
Fiscal year 2014 budget request.......................        44,650,000
Committee recommendation in the bill..................        44,650,000
Comparison with:
    Fiscal year 2013 enacted level....................       (1,304,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the Sec. 3004 OMB ATB.

    This program provides grants to assist States and tribal 
governments with the establishment, expansion, and improvement 
of veterans cemeteries which are operated and permanently 
maintained by the States and tribal governments. Grants under 
this program fund up to 100 percent of construction costs and 
the initial equipment expenses when the cemetery is 
established. The States and tribal governments 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 $44,650,000 
for Grants for Construction of Veterans Cemeteries, to be 
available until expended, which is $1,304,000 below the fiscal 
year 2013 enacted level and the same as the budget request.

                       Administrative Provisions

    The bill includes 29 provisions that were in effect in 
fiscal year 2013 and 1 new provision. The administrative 
provisions included in the bill are as follows:

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 201 allowing for the transfer of 
funds among three mandatory appropriations. The Administration 
proposal to modify this provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 202 allowing the Department to 
transfer funding among the three medical appropriations 
accounts in fiscal year 2014. The Administration proposal to 
modify this provision is not adopted.
    The bill includes section 203 allowing for salaries and 
expenses funds to be used for hire of passenger vehicles, lease 
of facilities or land, and purchase of uniforms.
    The bill includes section 204 providing 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 bill includes section 205 requiring 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.
    The bill includes section 206 allowing for the use of funds 
appropriated in fiscal year 2014 for ``Compensation and 
Pensions'', ``Readjustment Benefits'', and ``Veterans Insurance 
and Indemnities'' for payment of accrued obligations recorded 
in the last quarter of fiscal year 2013.
    The bill includes section 207 allowing for the use of 
fiscal year 2014 funds to pay prior year obligations resulting 
from implementation of sections 3328(a), 3334, and 3712(a) of 
title 31, United States Code.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 208 allowing 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.
    The bill includes section 209 allowing the Department to 
obligate enhanced-use lease proceeds for administrative 
expenses that were incurred in a prior fiscal year during the 
year funds are received.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 210 limiting 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.
    The bill includes section 211 prohibiting the Secretary 
from approving new leases of real property with estimated 
annual rental cost of more than $1,000,000 unless the 
Committees on Appropriations of both Houses of Congress approve 
a report on such lease within 30 days of receipt. The 
Administration proposal to modify this provision is not 
adopted.
    The bill includes section 212 requiring the Department to 
collect current and 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.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 213 allowing the Department to 
use enhanced-use lease funds for construction and alteration of 
medical facilities.
    The bill includes section 214 allowing the Department to 
use the ``Medical Services'' appropriation for expenses related 
to the broader mission of medical care to veterans.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 215 allowing the Department to 
transfer Medical Care Collections to the ``Medical Services'' 
appropriation to be used for veterans medical care and makes 
those funds available until expended.
    The bill includes section 216 allowing veterans who reside 
in Alaska to obtain medical services from medical facilities 
supported by the Indian Health Service or tribal organizations, 
and provides for reimbursement for those services from the 
Department of Veterans Affairs.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 217 allowing the Department to 
transfer the proceeds received from the transfer of real 
property deposited into the Department of Veterans Affairs 
Capital Asset Fund to the major and minor construction 
appropriations accounts and makes those funds available until 
expended.
    The bill includes section 218 providing that no funds may 
be used to prohibit Directors of the Veterans Integrated 
Service Networks from conducting outreach or marketing 
programs. The Administration proposed to delete this provision.
    The bill includes section 219 requiring the Secretary to 
submit quarterly reports to the Committees on Appropriations of 
both Houses of Congress on the financial status of the Veterans 
Health Administration. The Administration proposed to delete 
this provision.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 220 requiring the Department to 
notify and receive approval from the Committees on 
Appropriations of any proposed transfer of funding to or from 
the ``Information Technology Systems'' account. The 
Administration proposal to modify this provision is not 
adopted.
    The bill includes section 221 limiting the amount of 
funding made available under the ``Medical Facilities'' account 
for non-recurring maintenance that may be obligated during the 
last two months of the fiscal year. The Administration proposal 
to delete this provision is not adopted.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 222 permitting the transfer of 
$254,257,000 appropriated for medical accounts, minor 
construction, and information technology systems to the Joint 
Department of Defense-Department of Veterans Affairs Medical 
Facility Demonstration Fund for the operation of facilities 
designated as combined Federal medical facilities.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 223 permitting the transfer of 
funds deposited in the Medical Care Collections Fund to the 
Joint Medical Facility Demonstration Fund for facilities 
designated as combined Federal medical facilities.

                     (INCLUDING TRANSFER OF FUNDS)

    The bill includes section 224 directing that a minimum of 
$15,000,000 shall be transferred from the three medical care 
appropriations to the Department of Defense/Department of 
Veterans Affairs Health Care Sharing Incentive Fund, to be 
available until expended.

                    (INCLUDING RESCISSIONS OF FUNDS)

    The bill includes section 225 rescinding and 
reappropriating a portion of already appropriated fiscal year 
2014 medical care account funding, as requested in the budget.
    The bill includes section 226 requiring the Secretary to 
notify the Committees on Appropriations of both Houses of 
Congress of all bid savings in Major Construction projects that 
total at least $5,000,000, or five percent of the programmed 
amount, whichever is less. Such notification must occur within 
14 days of a contract. The Secretary is required to notify the 
Committees 14 days prior to the obligation of such bid savings 
and shall describe the anticipated use of such savings. The 
budget request proposed to delete this provision.
    The bill includes section 227 prohibiting the original 
scope of work for a Major Construction project from being 
increased above the scope specified for that project in the 
original justification data provided to the Congress as part of 
the request for appropriations. The budget request proposed to 
delete this provision.
    The bill includes section 228 requiring the Secretary of 
Veterans Affairs to provide on a quarterly basis to the 
Committees on Appropriations of both Houses of Congress 
notification of any single national outreach and awareness 
marketing campaign in which obligations exceed $2,000,000.
    The bill includes section 229 requiring the Department to 
submit a reprogramming request if it wishes to change fiscal 
year 2014 spending on Health Services initiatives identified in 
the budget justification by more than $25,000,000. The budget 
request proposed to delete this provision.

                    (INCLUDING RESCISSION OF FUNDS)

    The bill includes section 230 reducing the current-funded 
discretionary appropriations accounts by $24,000,000 and 
rescinds $156,000,000 of funding already appropriated in 
Medical Care 2014 advance appropriations. Bill language gives 
the Secretary discretion to allocate these reductions. The 
budget request did not include this provision.
    The bill does not include a provision requested in the 
budget limiting contracting out of functions performed by more 
than ten employees without a fair competition process. This 
limitation is unnecessary because it has already been enacted 
into law.

                               TITLE III


                            RELATED AGENCIES


                  American Battle Monuments Commission


                         SALARIES AND EXPENSES




Fiscal year 2013 enacted level\1\.....................       $61,348,000
Fiscal year 2014 budget request.......................        58,200,000
Committee recommendation in the bill..................        57,980,000
Comparison with:
    Fiscal year 2013 enacted level....................       (3,368,000)
    Fiscal year 2014 budget request...................        (220,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 25 
monuments, memorials, and markers.
    The Committee recommends an appropriation of $57,980,000 
for the American Battle Monuments Commission's salaries and 
expenses account, which is $3,368,000 less than the fiscal year 
2013 enacted level and $220,000 less than the budget request.
    Language is included allowing up to $7,500 to be used for 
official reception and representation expenses.

                 FOREIGN CURRENCY FLUCTUATIONS ACCOUNT




Fiscal year 2013 enacted level\1\.....................       $14,818,000
Fiscal year 2014 budget request est...................        14,100,000
Committee recommendation in the bill est..............        14,100,000
Comparison with:
    Fiscal year 2013 enacted level....................         (718,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 
because of fluctuations in currency exchange rates of foreign 
countries occurring after a budget request for the Commission 
is submitted to Congress. The account may not be used for any 
other purpose.
    The Committee recommendation includes bill language as 
proposed which makes ``such sums as may be necessary'' 
available to the Commission to cover unanticipated foreign 
currency fluctuations, currently estimated at $14,100,000.

           United States Court of Appeals for Veterans Claims


                         SALARIES AND EXPENSES




Fiscal year 2013 enacted level\1\.....................       $31,665,000
Fiscal year 2014 budget request.......................        35,408,000
Committee recommendation in the bill..................        35,272,000
Comparison with:
    Fiscal year 2013 enacted level....................         3,607,000
    Fiscal year 2014 budget request...................        (136,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Veterans' Judicial Review Act established the U.S. 
Court of Appeals for Veterans Claims. The Court reviews appeals 
from 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 $35,272,000 
for the U.S. Court of Appeals for Veterans Claims, an increase 
of $3,607,000 above the fiscal year 2013 enacted level and 
$136,000 less than the budget request.

         Department of Defense--Civil Cemeterial Expenses, Army


                         SALARIES AND EXPENSES




Fiscal year 2013 enacted level\1\.....................       $64,146,000
Fiscal year 2014 budget request.......................        45,800,000
Committee recommendation in the bill..................        70,685,000
Comparison with:
    Fiscal year 2013 enacted level....................         6,539,000
    Fiscal year 2014 budget request...................       24,885,000

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery (ANC) and the Soldiers' and Airmen's Home National 
Cemetery. In addition to its principal function as a national 
cemetery, ANC is the site of approximately 3,000 non-funeral 
ceremonies each year and has approximately 4,000,000 visitors 
annually.
    The Committee recommends an appropriation of $70,685,000 
for Cemeterial Expenses, Army. The Committee notes that the 
budget request, once again, proposed $25,000,000 to be provided 
through Operation and Maintenance, Army for the maintenance 
backlog at ANC instead of requesting all funds within the 
Cemeterial Expenses, Army account. This request is particularly 
troubling given the significant fiscal year 2013 shortfall in 
the Operation and Maintenance, Army account and this 
shortfall's potential impact on fiscal year 2014 requirements. 
Equally disturbing is the disingenuous use of this gimmick to 
undermine federal budgeting principles requiring expenditures 
to be charged against the same account each year, once an 
account has been identified for such purpose. This budget 
request instead proposes to fund the same purpose between two 
separate appropriations causing confusion of purpose and 
weakening accountability. The Committee rejects this proposal 
and instead provides all funds within the Cemeterial Expenses, 
Army account.
    Concession services.--The Committee is aware that the 
budget request for Arlington National Cemetery proposes 
language that would authorize ANC to contract for concession 
services such as transit services within ANC. The Committee is 
concerned that these concession services may impact the 
services currently provided by the National Park Service (NPS). 
The Committee directs ANC to meet with NPS and provide a report 
to the Committee no later than 60 days after the date of the 
publication of this report on the issues raised by NPS and the 
actions that ANC will take to address them, should Congress 
provide concession authority.
    Cemetery capacity.-- The Committee supports the efforts of 
the ANC Advisory Commission to identify solutions for when ANC 
inevitably reaches capacity. Accurately identifying the burial 
needs of our service members, veterans, and their families from 
all 50 states is critical to ensuring that the future plans for 
ANC meet those needs. The Committee recommends the ANC Advisory 
Commission establish metrics to determine whether the 
Department of the Army should establish a new national cemetery 
of the same stature as ANC.

                              CONSTRUCTION




Fiscal year 2013 enacted level\1\.....................      $100,412,000
Fiscal year 2014 budget request.......................             - - -
Committee recommendation in the bill..................             - - -
Comparison with:
    Fiscal year 2013 enacted level....................     (100,412,000)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommendation does not include funds for the 
Construction account. The budget request did not propose any 
additional funds for this purpose.

                      Armed Forces Retirement Home


                       OPERATION AND MAINTENANCE




Fiscal year 2013 enacted level\1\.....................       $63,941,000
Fiscal year 2014 budget request.......................        66,800,000
Committee recommendation in the bill..................        66,400,000
Comparison with:
    Fiscal year 2013 enacted level....................         2,459,000
    Fiscal year 2014 budget request...................        (400,000)

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    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 
$66,400,000 from the Armed Forces Retirement Home Trust Fund to 
operate and maintain the Armed Forces Retirement Home--
Washington, District of Columbia, and the Armed Forces 
Retirement Home--Gulfport, Mississippi. The amount recommended 
is $2,459,000 above the fiscal year 2013 enacted level and 
$400,000 less than the budget request.

                            CAPITAL PROGRAM




Fiscal year 2013 enacted level\1\.....................        $1,950,000
Fiscal year 2014 budget request.......................         1,000,000
Committee recommendation in the bill..................         1,000,000
Comparison with:
    Fiscal year 2013 enacted level....................          (950,00)
    Fiscal year 2014 budget request...................             - - -

\1\FY13 Enacted level does not include the 251A sequester or Sec. 3004
  OMB ATB.

    The Committee recommendation provides authority to expend 
$1,000,000 from the Armed Forces Retirement Home Trust Fund for 
construction and renovations. The amount recommended is 
$950,000 less than the fiscal year 2013 enacted level and equal 
to the budget request.

                        Administrative Provision

    The bill includes 1 provision that was in effect in fiscal 
year 2013. The administrative provision included in the bill is 
as follows:
    The bill includes section 301 permitting Arlington National 
Cemetery to provide funds to Arlington County to relocate a 
water main.

                                TITLE IV


                           GENERAL PROVISIONS

    The bill includes 15 provisions that are effective in 
fiscal year 2013 and three new provisions as follows:
    The bill includes section 401 prohibiting the obligation of 
funds beyond the current fiscal year unless expressly so 
provided.
    The bill includes section 402 prohibiting 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 bill includes section 403 prohibiting the use of funds 
to support or defeat legislation pending before Congress.
    The bill includes section 404 encouraging all departments 
and agencies funded in this Act to expand the use of ``E-
Commerce'' technologies and procedures.
    The bill includes section 405 specifying the Congressional 
committees that are to receive all reports and notifications.
    The bill includes section 406 prohibiting the transfer of 
funds to any instrumentality of the United States Government 
without authority from an appropriations Act.
    The bill includes section 407 prohibiting any funds in this 
Act to be used for a project or program named for an individual 
serving as a Member, Delegate, or Resident Commissioner of the 
United States House of Representatives.
    The bill includes section 408 requiring all reports 
submitted to the Congress to be posted on official websites of 
the submitting agency.
    The bill includes section 409 prohibiting the use of funds 
to establish or maintain a computer network unless such network 
blocks the viewing, downloading, and exchanging of pornography, 
except for law enforcement investigation, prosecution or 
adjudication activities.
    The bill includes section 410 prohibiting funds in this Act 
for the Association of Community Organizations for Reform Now.
    The bill includes new section 411 prohibiting the use of 
funds made available in this Act to exercise the power of 
eminent domain without just compensation.
    The bill includes section 412 prohibiting the use of funds 
for payment of first-class travel by an employee of the 
executive branch.
    The bill includes section 413 prohibiting the use of funds 
in this Act for the renovation, expansion, or construction of 
any facility in the continental United States for the purpose 
of housing any individual who has been detained at the United 
States Naval Station, Guantanamo Bay, Cuba.
    The bill includes section 414 prohibiting the use of funds 
in this Act for any contract where the contractor has not 
complied with E-Verify requirements.
    The bill includes section 415 limiting the use of funds to 
enter into a contract, memorandum of understanding, or 
cooperative agreement with, make a grant to, or provide a loan 
or loan guarantee to, corporations convicted of a felony 
criminal violation of Federal law within the preceding 24 
months. The Department shall provide an annual report to the 
Committee, due within 30 days of the end of each fiscal year, 
detailing its implementation of this provision, including a 
list of affected corporations and a justification for any cases 
in which the Department has determined that the limitation 
should not apply.
    The bill includes section 416 limiting the use of funds to 
enter into a contract, memorandum of understanding, or 
cooperative agreement with, make a grant to, or provide a loan 
or loan guarantee to, corporations with certain unpaid Federal 
tax liabilities. The Department shall provide an annual report 
to the Committee, due within 30 days of the end of each fiscal 
year, detailing its implementation of this provision, including 
a list of affected corporations and a justification for any 
cases in which the Department has determined that the 
limitation should not apply.
    The bill includes new section 417 prohibiting the use of 
funds to alter the implementation of a program, project, or 
activity in anticipation of any change proposed in a budget 
request before its enactment.
    The bill includes new section 418 establishing a ``Spending 
Reduction Account'' in the bill.
    The bill does not include section 503 as requested, instead 
report language is included that states that the cost of any 
pay raise will be absorbed within the funds provided.

              House of Representatives Report Requirements

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

         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.

                              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:

                          Department/Activity


                   AMOUNTS RECOMMENDED FOR RESCISSION




Department of Defense, Military Construction, Army....      $139,000,000
Department of Defense, Military Construction, Navy and        49,920,000
 Marine Corps.........................................
Department of Defense, Military Construction, Defense-       374,870,000
 Wide.................................................
Department of Defense, Military Construction, Air             45,623,000
 National Guard.......................................
Department of Veterans Affairs, Medical Services......     1,400,000,000
Department of Veterans Affairs, Medical Support and          100,000,000
 Compliance...........................................
Department of Veterans Affairs, Medical Facilities....       250,000,000
Department of Veterans Affairs, Medical Services,            156,000,000
 Medical Support and Compliance, and Medical
 Facilities...........................................


                           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 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 from the 
BRAC account 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 $9,232,000 
from Compensation and Pensions to General Operating Expenses, 
Veterans Benefits Administration and Information Technology 
Systems. 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 transferring funds to 
the medical care collections fund to augment funding of medical 
facilities for nursing home care provided to pensioners.
    Language is included to permit the transfer of funds from 
General Administration to General Operating Expenses, Veterans 
Benefits Administration.
    Language is included to permit the transfer of funds 
between Information Technology Systems development projects and 
among the three sub-accounts identified in bill language 
subject to the approval of the Committee.
    Language is included to provide authority for the 
Department of Veterans Affairs for any funds appropriated in 
2014 for Compensation and Pensions, Readjustment Benefits, and 
Veterans Insurance and Indemnities to be transferred among 
those three accounts.
    Language is included to transfer funds among the Medical 
Services, Medical Support and Compliance, and Medical 
Facilities accounts.
    Language is included to permit the funds from three life 
insurance funds to be transferred to General Operating 
Expenses, Veterans Benefits Administration and Information 
Technology Systems for the costs of administering such 
programs.
    Language is included to permit up to $46,264,000 to be 
transferred to General Administration and Information 
Technology Systems from any funds appropriated in fiscal year 
2014 to reimburse the Office of Resolution Management and the 
Office of Employment and 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 the Medical Services account.
    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 to allow the transfer of funds from 
various accounts to the Information Technology Systems account 
subject to approval by the Committee.
    Language is included to allow the transfer of funds 
provided for the Department of Veterans Affairs to the Joint 
Department of Defense-Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Language is included permitting funds deposited to the 
Medical Care Collections Fund for health care provided at a 
combined Federal medical facility to be transferred to the 
Joint Department of Defense-Department of Veterans Affairs 
Medical Facility Demonstration Fund.
    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.

   Disclosure of Earmarks and Congressionally Directed Spending Items

    Neither the bill nor the report contains any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI.

                 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.
    Language is included in various parts of the bill to 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 in various parts of the bill to enable 
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 to permit 
the transfer of funds to other accounts.
    Language is included under Title I to prohibit payments for 
cost-plus-a-fixed-fee contracts 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 to allow advances to the 
Federal Highway Administration, Department of Transportation 
under certain circumstances.
    Language is included under Title I to prohibit the use of 
funds to begin construction of new bases without specific 
appropriations.
    Language is included under Title I to prohibit the use of 
funds for purchase of land or land easements under certain 
circumstances.
    Language is included under Title I to prohibit the use of 
funds for land acquisition, site preparation, and utility 
installation for family housing 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 to prohibit the use of 
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 to prohibit the use of 
funds to pay real property taxes in any foreign nation.
    Language is included under Title I to prohibit the use of 
funds to initiate a new installation overseas without prior 
notification.
    Language is included under Title I to limit the use of 
funds for architect and engineer contracts under certain 
circumstances.
    Language is included under Title I to limit the use of 
funds for awarding contracts to foreign contractors under 
certain circumstances.
    Language is included under Title I to require 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 to allow prior year 
construction funding to be available for currently authorized 
projects.
    Language is included under Title I to allow 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 to allow 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 to allow for the 
transfer of BRAC funds to the Homeowners Assistance Program.
    Language is included under Title I to limit funds for the 
operation and maintenance of family housing to those provided 
in this appropriation and to limit amounts expended on repairs 
of general and flag officer quarters under certain 
circumstances.
    Language is included under Title I to allow funds in the 
Ford Island Improvement Account to be available until expended 
for certain purposes.
    Language is included under Title I to limit funds for 
projects at closed or realigned 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 I limiting funds available 
for expansion of Pinon Canyon Maneuver Site, Colorado.
    Language is included under Title I limiting movement of an 
Army unit with a testing mission.
    Language is included under Title I that rescinds funds from 
prior year appropriations Acts.
    Language is included under Title I to allow the Secretary 
of the Army to use additional funds to complete a prior year 
project.
    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 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 transfer between development, modernization, and enhancement 
projects in the information technology systems account.
    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 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, 
allowing veterans in the State of Alaska to use Indian Health 
Service facilities under certain conditions, allowing medical 
services funds for recreational and funeral expenses, limiting 
the obligation of non-recurring maintenance funds during the 
last two months of the fiscal year, and requiring approval of a 
reprogramming prior to any major reallocation of medical 
services initiatives funding.
    Language is included under Title II that rescinds funds 
from prior year appropriations Acts.
    Language is included under Title III for the Court of 
Appeals for Veterans Claims, Salaries and Expenses, to permit 
the use of funds for a pro bono program.
    Language is included under Title III for Cemeterial 
Expenses, Army, Salaries and Expenses, to permit the use of 
funds for parking maintenance and repairs.
    Language is included under Title III for Cemeterial 
Expenses, Army, Salaries and Expenses, to permit the use of 
funds to relocate a water main.
    Language is included under Title IV to limit 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 to limit the use of 
funds for publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Language is included under Title IV to prohibit the use of 
funds for a project or program named for a serving Member of 
the United States Congress.
    Language is included under Title IV prohibiting funds from 
being used to maintain or establish a computer network unless 
such network blocks the viewing, downloading, and exchanging of 
pornography.
    Language is included under Title IV to prohibit funding 
being distributed to the Association of Community Organizations 
for Reform Now or its subsidiaries.
    Language is included under Title IV prohibiting funds from 
being used to exercise the power of eminent domain without just 
compensation.
    Language is included under Title IV prohibiting funds from 
being used to pay for first class travel in violation of 
federal regulations.
    Language is included under Title IV prohibiting funds from 
being used to execute a contract for goods or services where a 
contractor has not complied with Executive Order 12989.
    Language is included under Title IV prohibiting funds from 
being provided to any corporation that was convicted of a 
felony criminal violation.
    Language is included under Title IV prohibiting funds from 
being provided to a corporation with an unpaid Federal tax 
liability.

                  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:


                          Program Duplication

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                          Directed Rule Making

    The bill does not direct any rule making.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below: 


          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 
of part thereof.

                 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                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittee: Subcommittee on Military Construction
 and Veterans Affairs:
    Mandatory...............................................       79,465       79,219       79,465    \1\79,219
    Discretionary...........................................       73,320       76,206       73,320       76,206
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                    Five-Year Projection of Outlays

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and 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]

Outlays:
    2014...................................................... \2\86,772
    2015......................................................     5,795
    2016......................................................     4,252
    2017......................................................     1,879
    2018 and future years.....................................     1,410
---------------------------------------------------------------------------
\2\Excludes outlays from prior-year budget authority.
---------------------------------------------------------------------------

               Assistance to State and Local Governments

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and 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:

                                                                Millions
Budget Authority........................................            $146
Fiscal Year 2014 outlays resulting therefrom............              -4

                               State List

    The following is a complete listing, by title, State and 
country, of the Committee's recommendations for military 
construction and family housing projects:



                             Minority Views

    The fiscal year 2014 Military Construction, Veterans 
Affairs and Related Agencies appropriations bill sufficiently 
funds critical military construction, family housing and 
quality of life improvements and enhancements for our brave men 
and women in uniform and their families. In addition, this bill 
provides adequate funding for Department of Veterans Affairs 
(VA) programs, and it provides a satisfactory amount of funding 
for our heroes who have made the ultimate sacrifice and are 
honored in the battle monuments and cemeteries funded in this 
bill.
    We are pleased that the bill takes several steps related to 
the shameful veterans' claims backlog. First, the bill fully 
funds General Operating Expenses for the Veterans Benefit 
Administration (VBA) that will support 20,851 claims 
processors, 94 more than fiscal year 2013 to work on disability 
claims. Second, the bill fully funds the Veterans Benefit 
Management System (VBMS) and the Veterans Claims Intake Program 
(VCIP). VBMS and VCIP are paperless claims processing systems 
designed to streamline the claims process and reduce processing 
times by converting existing paper-based claims into electronic 
claims. This allows VBA employees electronic access to claims 
and evidence for expedited information retrieval and 
processing. Third, the accompanying report includes strenuous 
monthly reporting requirements for VA to provide Congress with 
claims backlog statistics. Finally, the bill directs VA and 
Department of Defense (DOD) to develop one integrated 
electronic health record system and prohibits the use of funds 
for the development of any system that does not meet the 
requirements of being single, joint, common, and the sole 
system used by both DOD and VA. We believe this initiative more 
than any other will speed up VAs' efforts to permanently 
transition old claims filed on paper and convert them into 
digital files. Electronic access to health records makes all 
files easily searchable, ultimately leading to faster 
processing times and reducing the backlog. The bill reported 
out of the Committee represents a good, reasonable approach and 
continues our long commitment to our veterans and our military 
facilities, and continues a bipartisan tradition of providing 
funding levels that Members on both sides agree are 
appropriate, while avoiding contentious legislative riders that 
complicate passage.
    While the allocation for the fiscal year 2014 Military 
Construction, Veterans Affairs, and Related Agencies 
appropriations bill is adequate, we are dismayed by the House 
Majority's refusal to go to conference to forge a bipartisan 
agreement on the budget resolution to address sequestration and 
provide a workable 302(a) allocation. This failure of the House 
Leadership imperils this year's appropriations process, making 
it nearly impossible to move all twelve Appropriations bills.
    If the lower allocation stays in effect, we will likely 
pass only a few bills, including the Milcon/VA bill, which was 
given a reasonable allocation, while the remaining bills are 
left in purgatory, unable to pass due to low allocations. Using 
the Ryan budget numbers, it is inevitable that a continuing 
resolution, or a series of them, will be needed to keep the 
government running past October 1st.
    While we are pleased with the Milcon/VA bill's allocation, 
it is interesting that the $73.3 billion provided in the bill 
largely mirrors the Administration's request and does not 
reflect sequestration, even for the portions of the bill that 
were not exempted. In fact, the differences between this bill 
and the Administration's request are relatively small: an 
adjustment of $1.05 billion due to bid-savings and other 
project adjustments and the misguided decision not to provide 
$185 million for the requested 2014 civilian pay raise.
    In conclusion, we commend the Chairman for the funding 
levels within the bill and his receptiveness to Democratic 
Members' concerns. However, we are extremely disappointed in 
the 302(a) allocation provided to this Committee under the Ryan 
budget resolution. We believe that those numbers are completely 
unworkable and render the work of this Committee all but 
impossible.

                                   Nita M. Lowey.
                                   Sanford D. Bishop, Jr.

           Additional Views of the Honorable Rosa L. DeLauro

    I want to acknowledge the work Chairmen Rogers and 
Culberson have put in to produce a bipartisan military 
construction and veterans administration appropriations bill. 
That being said, in voting down my amendment to replace the 
indiscriminate sequestration cuts for fiscal years 2013 and 
2014 with a more balanced, targeted, and common-sense approach 
to the budget, while cutting $30 billion from the deficit, the 
committee has in effect ratified the extraordinary amount of 
damage to our economy and to American families that will occur 
as a result of these deep cuts.
    The non-partisan Congressional Budget Office estimates that 
sequestration will cost us 750,000 jobs this year alone. 
Federal Reserve Chairman Ben Bernanke has argued it will slow 
down our economic recovery and cause less, rather than more, 
deficit reduction. And, in a joint statement, 350 of America's 
leading economists have urged the repeal of sequestration.
    The Congress has already voted on a bipartisan basis to 
exempt the FAA from these disastrous cuts--a recognition of the 
severe damage that sequestration is causing. But the impact on 
airport travel is only the beginning of the damage these cuts 
will cause.
    If we do not replace the sequester, 800,000 National 
Security civilian employees will be furloughed. Small 
Businesses will lose up to $900 million in guaranteed SBA 
loans. Thousands of educators will be laid off. Despite roughly 
12 million unemployed, people across the country in need of job 
training will be turned away. 20,000 jobs and $3 billion in 
economic activity will be lost because of cuts to life-saving 
medical research. Thousands of cancer patients will be turned 
away by clinics because of cuts to Medicare provider payments. 
Four million fewer meals will be given to low-income seniors. 
70,000 children will lose access to Head Start.
    All of these cuts are just for this fiscal year. They will 
be compounded for next fiscal year. These across-the-board cuts 
are not responsible budgeting. We know that unemployment is 
unacceptably high. We also know that deficit estimates have 
decreased dramatically--by $200 billion in the last three 
months alone. If we allow these sequestration cuts to remain in 
effect, we will be causing more job losses, less economic 
growth, and less deficit reduction.
    That is not the right way forward. My amendment replaced 
sequestration with a balanced approach to budgeting. Instead of 
dramatically further slashing vital programs already being cut 
in this and future years, it repealed oil and gas subsidies at 
a time of extraordinary profits. Instead of hurting small 
businesses and the most vulnerable families in America, it took 
steps to ensure that millionaires are paying the same effective 
tax rate as hard-working middle-class families. And it cut $30 
billion more from the deficit.
    Sequestration this year and next amounts to a $123 billion 
cut, taken out of our economy at a moment of fragile recovery. 
If we do not act soon, these cuts will drag ever more strongly 
on our economic growth. We need to show leadership for our 
kids, our seniors, our military industrial base, our security, 
our health, and our environment. I hope we will take up this 
question again as we address the other appropriations bills 
before the committee.

                                   Rosa L. DeLauro.

                                  
