    [Senate Report 113-125]
    [From the U.S. Government Publishing Office]

    113th Congress                                                   Report
                                     SENATE
     1st Session                                                    113-125

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

     LEGISLATIVE AND OVERSIGHT ACTIVITIES DURING THE 112TH CONGRESS BY THE
                     SENATE COMMITTEE ON VETERANS' AFFAIRS

                                    _______

       December 13 (Legislative day, December 11), 2013.--Ordered to be
                                    printed

                                    _______

             Mr. Sanders, from the Committee on Veterans' Affairs,
                            submitted the following

                                  R E P O R T

        Pursuant to paragraph 8 of rule XXVI of the Standing Rules
    of the Senate, the Committee on Veterans' Affairs (hereinafter,
    ``Committee'') submits its report on legislative and oversight
    activities during the 112th Congress.

                            I. HEARINGS AND MEETINGS

    A. First Session (2011)

        During the First Session of the 112th Congress, the
    Committee held 18 hearings, including three field hearings and
    five joint hearings. At those events, the Committee heard
    testimony from 81 witnesses.
        One hearing (June 8) focused exclusively on legislation
    pending before the Committee. Testimony offered at this hearing
    covered 35 bills.
        On June 29, six measures were reported out of Committee.
    The Committee held one meeting to report nominations.
        Of primary focus for the Committee this session was
    veterans' transition and mental health care issues. To that
    end, the Committee held four hearings and one field hearing in
    order to better understand the growing needs of returning
    servicemembers and veterans as they transition back into
    civilian life. These hearings were held on April 13, May 18,
    May 25, July 27, and December 12 (a field hearing in Columbus,
    Ohio). Hearings related to mental health care were held on
    July 14 and November 30.
        The Committee held five joint hearings with the House
    Committee on Veterans' Affairs in order to receive legislative
    presentations from Veterans Service Organizations. These
    hearings were held on March 1, March 8, March 16, March 30, and
    September 21.
        The Committee held three field hearings during the First
    Session. These hearings were held on April 26 in Dayton, Ohio;
    December 12 in Quincy, Massachusetts; and December 12 in
    Columbus, Ohio. The field hearing in Dayton focused exclusively
    on improving patient safety and quality of care at the U.S.
    Department of Veterans Affairs (hereinafter, ``VA'') medical
    center. The remaining two hearings addressed issues surrounding
    claims backlog and employment challenges facing veterans.

    B. Second Session (2012)

        During the Second Session of the 112th Congress, the
    Committee held 17 hearings, including three field hearings and
    four joint hearings. At those events, the Committee heard
    testimony from 77 witnesses.
        Two hearings (June 13 and June 27) focused exclusively on
    legislation pending before the Committee. Testimony offered at
    these hearings covered 47 bills.
        On September 12, six measures were reported out of
    Committee. The Committee held two meetings to report
    nominations.
        The Committee continued its focus on servicemembers' and
    veterans' transition and mental health care needs, holding an
    additional three hearings on April 4 (a field hearing in
    Tacoma, Washington), April 25, and May 23.
        The Committee held five joint hearings with the House
    Committee on Veterans' Affairs in order to receive legislative
    presentations from Veterans Service Organizations. These
    hearings were held on February 28, March 7, March 21, March 22,
    and October 3.
        The Committee held three field hearings during the Second
    Session. These hearings were held on April 4 in Tacoma,
    Washington; April 10 in Honolulu, Hawaii; and April 21 in
    Billings, Montana. The field hearing in Tacoma focused
    exclusively on transition. The remaining two hearings focused
    on the state of veterans' benefits and services in Hawaii and
    improving access to quality health care for rural veterans in
    Montana.

    C. List of Hearings and Meetings Held in the 112th Congress

        (1) Tuesday, March 1, 2011
        Joint Hearing with the House of Representatives to hear the
    legislative presentation of Disabled American Veterans
        (2) Wednesday, March 2, 2011
        Hearing: The President's Budget
        (3) Tuesday, March 8, 2011
        Joint Hearing with the House of Representatives to hear the
    legislative presentation of Veterans of Foreign Wars
        (4) Wednesday, March 16, 2011
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of AMVETS, Jewish War Veterans,
    Military Officers Association of America, Gold Star Wives,
    Blinded Veterans Association, Non Commissioned Officers
    Association, Iraq & Afghanistan Veterans of America, and the
    Fleet Reserve Association
        (5) Wednesday, March 30, 2011
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of Air Force Sergeants
    Association, Military Order of the Purple Heart, Paralyzed
    Veterans of America, National Association of State Directors of
    Veterans Affairs, Wounded Warrior Project, Vietnam Veterans of
    America, The Retired Enlisted Association, American Ex-
    Prisoners of War
        (6) Wednesday, April 6, 2011
        Hearing: Nominations of Brig. Gen. Allison Hickey to be
    Under Secretary for Benefits and Steve Muro to be Under
    Secretary for Memorial Affairs, U.S. Department of Veterans
    Affairs
        (7) Wednesday, April 13, 2011
        Hearing: Veterans Employment: Improving the Transition from
    the Battlefield to the Workplace
        (8) Tuesday, April 26, 2011
        Field hearing on improving patient safety and quality care
    at the Dayton (Ohio) VA Medical Center
        (9) Wednesday, May 4, 2011
        Meeting: The Committee met off the Senate Floor and voted
    on the nomination of Brig. Gen. Allison Hickey to be Under
    Secretary for Benefits and Steve Muro to be Under Secretary for
    Memorial Affairs, U.S. Department of Veterans Affairs. A
    hearing for both nominations was held on April 6, 2011; their
    nominations were reported favorably by the Committee on May 4,
    2011; and they were confirmed by the Senate on May 26, 2011.
        (10) Wednesday, May 18, 2011
        Hearing: Seamless Transition--Improving VA/DOD
    Collaboration
        (11) Wednesday, May 25, 2011
        Hearing: Seamless Transition--Meeting the Needs of
    Servicemembers and Veterans
        (12) Wednesday, June 8, 2011
        Legislative Hearing: Legislation Pending Before the
    Veterans' Affairs Committee

              S. 277, Caring for Camp Lejeune Veterans Act of 2011
              S. 396, Meeting the Inpatient Health Care Needs of
            Far South Texas Veterans Act of 2011
              S. 411, Helping our Homeless Veterans Act of 2011
              S. 423, a bill to amend title 38, United States Code
            (hereinafter, ``U.S.C.''), to provide authority for
            retroactive effective date for awards of disability
            compensation in connection with applications that are
            fully-developed at submittal, and for other purposes
              S. 486, Protecting Servicemembers from Mortgage
            Abuses Act of 2011
              S. 490, a bill to amend title 38, U.S.C., to increase
            the maximum age for children eligible for medical care
            under the CHAMPVA program, and for other purposes
              S. 491, Honor America's Guard-Reserve Retirees Act of
            2011
              S. 536, a bill to amend title 38, U.S.C., to provide
            that utilization of survivors' and dependents'
            educational assistance shall not be subject to the 48-
            month limitation on the aggregate amount of assistance
            utilizable under multiple veterans and related
            educational assistance programs
              S. 572, a bill to amend title 38, U.S.C., to repeal
            the prohibition on collective bargaining with respect
            to matters and questions regarding compensation of
            employees of the Department of Veterans Affairs other
            than rates of basic pay, and for other purposes
              S. 666, Veterans Traumatic Brain Injury Care
            Improvement Act of 2011
              S. 696, a bill to amend title 38, U.S.C., to treat
            Vet Centers as Department of Veterans Affairs
            facilities for purposes of payments or allowances for
            beneficiary travel to Department facilities, and for
            other purposes
              S. 698, a bill to amend title 38, U.S.C., to codify
            the prohibition against the reservation of gravesites
            at Arlington National Cemetery, and for other purposes
              S. 745, a bill to amend title 38, U.S.C., to protect
            certain veterans who would otherwise be subject to a
            reduction in educational assistance benefits, and for
            other purposes
              S. 769, a bill to amend title 38, U.S.C., to prevent
            the Secretary of Veterans Affairs from prohibiting the
            use of service dogs on Department of Veterans Affairs'
            property
              S. 780, a bill to amend title 38, U.S.C., to exempt
            reimbursements of expenses related to accident, theft,
            loss, or casualty loss from determinations of annual
            income with respect to pensions for veterans and
            surviving spouses and children of veterans, and for
            other purposes
              S. 815, Sanctity of Eternal Rest for Veterans Act of
            2011
              S. 873, a bill to amend title 38, U.S.C., to provide
            benefits for children with spina bifida of veterans
            exposed to herbicides while serving in the Armed Forces
            during the Vietnam era outside Vietnam, and for other
            purposes
              S. 874, a bill to amend title 38, U.S.C., to modify
            the provision of compensation and pension to surviving
            spouses of veterans in the months of the deaths of the
            veterans, to improve housing loan benefits for
            veterans, and for other purposes
              S. 894, Veterans' Compensation Cost-of-Living
            Adjustment Act of 2011
              S. 910, Veterans Health Equity Act of 2011
              S. 914, a bill to amend title 38, U.S.C., to
            authorize the waiver of the collection of copayments
            for telehealth and telemedicine visits of veterans, and
            for other purposes
              S. 928, a bill to amend title 38, U.S.C., to limit
            the authority of the Secretary of Veterans Affairs to
            use bid savings on major medical facility projects of
            the Department of Veterans Affairs to expand or change
            the scope of a major medical facility project of the
            Department, and for other purposes
              S. 935, a bill to require the Secretary of Veterans
            Affairs to carry out a program of outreach to veterans,
            and for other purposes
              S. 951, Hiring Heroes Act of 2011
              S. 957, a bill to amend title 38, U.S.C., to improve
            the provision of rehabilitation services for veterans
            with traumatic brain injury, and for other purposes
              S. 1017, a bill to amend title 38, U.S.C., to
            increase assistance for disabled veterans who are
            temporarily residing in housing owned by a family
            member, and for other purposes
              S. 1060, Honoring All Veterans Act of 2011
              S. 1089, Veterans Health Care Improvement Act of 2011
              S. 1104, Veteran Transition Assistance Program Audit
            Act of 2011
              S. 1123, a bill to amend title 38, U.S.C., to improve
            the provision of benefits and assistance under the laws
            administered by the Secretary of Veterans Affairs to
            veterans affected by natural or other disasters, and
            for other purposes
              S. 1124, Veterans Telemedicine Act of 2011
              S. 1127, Veterans Rural Health Improvement Act of
            2011
              S. 1146, Alaska's Hero's Card Act of 2011
              S. 1147, Chiropractic Care Available to All Veterans
            Act of 2011
              S. 1148, Veterans Programs Improvement Act of 2011

        (13) Wednesday, June 29, 2011
        Meeting: Markup of Pending Legislation

         S. 277 (Committee Print), Caring for Camp Lejeune
    Veterans Act of 2011, to amend title 38, U.S.C., to furnish
    hospital care, medical services, and nursing home care to
    veterans who were stationed at Camp Lejeune, North Carolina,
    while the water was contaminated at Camp Lejeune, and for other
    purposes
         S. 572, to amend title 38, U.S.C., to repeal the
    prohibition on collective bargaining with respect to matters
    and questions regarding compensation of employees of the
    Department of Veterans Affairs other than rates of basic pay,
    and for other purposes
         S. 745 (Committee Print), to protect certain
    veterans who would otherwise be subject to a reduction in
    educational assistance benefits, and for other purposes
         S. 894, Veterans' Compensation Cost-of-Living
    Adjustment Act of 2011, to amend title 38, U.S.C., to provide
    for an increase, effective December 1, 2011, in the rates of
    compensation for veterans with service-connected disabilities
    and the rates of dependency and indemnity compensation for the
    survivors of certain disabled veterans, and for other purposes
         S. 914 (Committee Print), Veterans Programs
    Improvement Act of 2011, to amend title 38, U.S.C., to
    authorize the waiver of the collection of copayments for
    telehealth and telemedicine visits of veterans, and for other
    purposes
         S. 951 (Committee Print), Hiring Heroes Act of
    2011, to improve the provision of Federal transition,
    rehabilitation, vocational, and unemployment benefits to
    members of the Armed Forces and veterans, and for other
    purposes

        (14) Thursday, July 14, 2011
        Hearing: VA Mental Health Care: Closing the Gaps
        (15) Wednesday, July 27, 2011
        Hearing: Examining the Lifetime Costs of Supporting the
    Newest Generation of Veterans
        (16) Wednesday, September 21, 2011
        Joint Hearing with the House of Representatives to hear the
    legislative presentation of The American Legion
        (17) Wednesday, November 30, 2011
        Hearing: VA Mental Health Care: Addressing Wait Times and
    Access to Care
        (18) Monday, December 12, 2011
        Field Hearing in Quincy, Massachusetts: Addressed concerns
    over delays in veterans' services related to the claims backlog
    and the Department of Veterans Affairs' plans to reduce the
    backlog
        (19) Monday, December 12, 2011
        Field Hearing in Columbus, Ohio: Focused on employment
    challenges facing veterans
        (20) Tuesday, February 28, 2012
        Joint Hearing with the House of Representatives to hear the
    legislative presentation of Disabled American Veterans
        (21) Wednesday, February 29, 2012
        Hearing: The Fiscal Year 2013 Budget for Veterans' Programs
        (22) Wednesday, March 7, 2012
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of Veterans of Foreign Wars
        (23) Wednesday, March 14, 2012
        Hearing: Ending Homelessness Among Veterans--VA's Progress
    on its 5-Year Plan
        (24) Wednesday, March 21, 2012
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of Military Order of the Purple
    Heart, Iraq & Afghanistan Veterans of America, Non Commissioned
    Officers Association, American Ex-Prisoners of War, Vietnam
    Veterans of America, Wounded Warrior Project, National
    Association of State Directors of Veterans Affairs, and The
    Retired Enlisted Association
        (25) Thursday, March 22, 2012
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of Paralyzed Veterans of America,
    Air Force Sergeants Association, Blinded Veterans Association,
    AMVETS, Gold Star Wives, Fleet Reserve Association, Military
    Officers Association of America, and Jewish War Veterans
        (26) Wednesday, March 28, 2012
        Hearing: Nominations of Margaret Bartley to be Judge of
    United States Court of Appeals for Veterans Claims and Coral
    Wong Pietsch to be Judge of United States Court of Appeals for
    Veterans Claims; their nominations were reported favorably by
    the Committee on April 26, 2012, and they were confirmed by the
    Senate on May 24, 2012.
        (27) Wednesday, April 4, 2012
        Field Hearing in Tacoma, Washington: Washington's Veterans:
    Helping the Newest Generation Transition Home
        (28) Tuesday, April 10, 2012
        Field Hearing in Honolulu, Hawaii: State of Veterans
    Benefits and Services in Hawaii
        (29) Saturday, April 21, 2012
        Field Hearing in Billings, Montana: Improving Access to
    Quality Healthcare for Rural Veterans
        (30) Wednesday, April 25, 2012
        Hearing: VA Mental Health Care: Evaluating Access and
    Assessing Care
        (31) Wednesday, May 23, 2012
        Hearing: Seamless Transition: Review of the Integrated
    Disability Evaluation System
        (32) Wednesday, June 13, 2012
        Legislative Hearing: Pending Economic Opportunity and
    Transition Legislation

              S. 1184, a bill to amend title 38, U.S.C., to revise
            the enforcement penalties for misrepresentation of a
            business concern as a small business concern owned and
            controlled by veterans or as a small business concern
            owned and controlled by service-disabled veterans, and
            for other purposes
              S. 1314, a bill to amend title 38, U.S.C., to require
            the Secretary of Labor to establish minimum funding
            levels for States for the support of disabled veterans'
            outreach program specialists and local veterans'
            employment representatives
              S. 1634, a bill to amend title 38, U.S.C., to improve
            the approval and disapproval of programs of education
            for purposes of educational benefits under laws
            administered by the Secretary of Veterans Affairs, and
            for other purposes
              S. 1798, the Open Burn Pit Registry Act of 2011
              S. 1852, the Spouses of Heroes Education Act
              S. 1859, a bill to provide that section 3330a, 3330b,
            and 3330c of title 5, U.S.C., relating to
            administrative and judicial redress and remedies for
            preference eligibles, shall apply with respect to the
            Federal Aviation Administration and the Transportation
            Security Administration
              S. 2130, the Veterans Conservation Corps
            Authorization Act
              S. 2179, the Military and Veterans Educational Reform
            Act of 2012
              S. 2206, the GI Educational Freedom Act of 2012
              S. 2241, the GI Bill Consumer Awareness Act of 2012
              S. 2246, the TAP Modernization Act of 2012
              S. 2299, the Servicemembers Rights Enforcement
            Improvement Act of 2012
              S. 3082, a bill to amend title 38, U.S.C., to
            establish the National Veterans Support Network to
            carry out activities to support and supplement the
            mission of the Department of Veterans Affairs, and for
            other purposes
              S. 3179, the Servicemember Housing Protection Act of
            2012
              S. 3210, the Veterans Small Business Opportunity Act
            of 2012
              S. 3233, the Servicemembers Access to Justice Act of
            2012
              S. 3235, Helping Iraq and Afghanistan Veterans Return
            to Employment at Home Act
              S. 3236, Servicemember Employment Protection Act of
            2012

        (33) Wednesday, June 27, 2012
        Legislative Hearing: Pending Health and Benefits
    Legislation

              S. 1264, the Veteran Voting Support Act of 2011
              S. 1391, a bill to amend title 38, U.S.C., to improve
            the disability compensation evaluation procedure of the
            Secretary of Veterans Affairs for veterans with post-
            traumatic stress disorder or mental health conditions
            related to military sexual trauma, and for other
            purposes
              S. 1631, a bill to authorize the establishment in the
            Department of Veterans Affairs of a center for
            technical assistance for non-Department health care
            providers who furnish care to veterans in rural areas,
            and for other purposes
              S. 1705, a bill to designate the Department of
            Veterans Affairs Medical Center in Spokane, Washington,
            as the ``Mann-Grandstaff Department of Veterans Affairs
            Medical Center''
              S. 1707, the Veterans Second Amendment Protection Act
              S. 1755, a bill to amend title 38, U.S.C., to provide
            for coverage under the beneficiary travel program of
            the Department of Veterans Affairs of certain disabled
            veterans for travel for certain special disabilities
            rehabilitation, and for other purposes
              S. 1799, the Access to Appropriate Immunizations for
            Veterans Act of 2011
              S. 1806, a bill to amend the Internal Revenue Code of
            1986 to allow taxpayers to designate overpayments of
            tax as contributions to the homeless veterans
            assistance fund
              S. 1838, a bill to require the Secretary of Veterans
            Affairs to carry out a pilot program on service dog
            training therapy, and for other purposes
              S. 1849, the Rural Veterans Health Care Improvement
            Act
              S. 2045, a bill to amend title 38, U.S.C., to require
            judges of the United States Court of Appeals for
            Veterans Claims to reside within fifty miles of the
            District of Columbia, and for other purposes
              S. 2244, the Veterans Missing in America Act of 2012
              S. 2259, the Veterans' Compensation Cost-of-Living
            Adjustment Act of 2012
              S. 2320, the Remembering America's Forgotten Veterans
            Cemetery Act of 2012
              S. 3049, a bill to amend title 38, U.S.C., to expand
            the definition of homeless veteran for purposes of
            benefits under the laws administered by the Secretary
            of Veterans Affairs
              S. 3052, a bill to amend title 38, U.S.C., to require
            the Secretary of Veterans Affairs to provide veterans,
            when such veterans electronically file claims for
            benefits under laws administered by the Secretary, with
            notice that relevant services may be available to the
            veterans from Veterans Service Organizations, and for
            other purposes
              S. 3084, the VISN Reorganization Act of 2012
              S. 3202, the Dignified Burial of Veterans Act of 2012
              S. 3206, a bill to amend title 38, U.S.C., to extend
            the authorization of appropriations for the Secretary
            of Veterans Affairs to pay a monthly assistance
            allowance to disabled veterans training or competing
            for the Paralympic Team and the authorization of
            appropriations for the Secretary of Veterans Affairs to
            provide assistance to United States Paralympics, Inc.,
            and for other purposes
              S. 3238, a bill to designate the Department of
            Veterans Affairs community based outpatient clinic in
            Mansfield, Ohio, as the David F. Winder Department of
            Veterans Affairs Community Based Outpatient Clinic, and
            for other purposes
              S. 3270, a bill to amend title 38, U.S.C., to require
            the Secretary of Veterans Affairs to consider the
            resources of individuals applying for pension that were
            recently disposed of by the individuals for less than
            fair market value when determining the eligibility of
            such individuals for such pension and for other
            purposes
              S. 3282, a bill to amend title 38, U.S.C., to
            reauthorize the Veterans' Advisory Committee on
            Education, and for other purposes
              S. 3308, a bill to amend title 38, U.S.C., to improve
            the furnishing of benefits for homeless veterans who
            are women or who have dependents, and for other
            purposes
              S. 3309, the Homeless Veterans Assistance Improvement
            Act of 2012
              S. 3313, the Women Veterans Health and Other Care
            Improvement Act of 2012
              S. 3316, a bill to require the Secretary of Labor to
            carry out a pilot program on providing veterans with
            access at One-Stop Centers to Internet websites to
            facilitate online job searches, and for other purposes
              S. 3324, a bill to authorize the Secretary of
            Veterans Affairs to award grants to nonprofit
            organizations for the construction of facilities for
            temporary lodging in connection with the examination,
            treatment, or care of a veteran under laws administered
            by the Secretary of Veterans Affairs, and for other
            purposes
              S. 3336, a bill to amend title 38, U.S.C., to
            authorize the Secretary of Veterans Affairs to carry
            out a major medical facility project lease for a
            Department of Veterans Affairs outpatient clinic at Ewa
            Plain, Oahu, Hawaii, and for other purposes
              S. 3340, the Mental Health Access to Continued Care
            and Enhancement of Support Services Act of 2012 or
            Mental Health ACCESS Act of 2012

        (34) Wednesday, July 18, 2012
        Hearing: Nomination of Thomas Sowers II to be Assistant
    Secretary of Veterans Affairs (Public and Intergovernmental
    Affairs); his nomination was reported favorably by the
    Committee on August 2, 2012, and was confirmed by the Senate
    the same day.
        (35) Wednesday, September 12, 2012
        Meeting: Markup of Pending Legislation

         S. 3340 (Committee Print), to improve the
    provision of mental health care to members of the Armed Forces
    and veterans, to improve assistance to homeless veterans, to
    improve the provision of health care and benefits to veterans,
    and for other purposes
         S. 3322 (Committee Print), to strengthen
    enforcement and clarify certain provisions of the
    Servicemembers Civil Relief Act and chapter 43 of title 38,
    U.S.C., and for other purposes
         S. 3313 (Committee Print), to amend title 38,
    U.S.C., to improve the reproductive assistance provided by the
    Department of Veterans Affairs to severely wounded veterans and
    their spouses, and for other purposes
         S. 2259, to provide for an increase, effective
    December 1, 2012, in the rates of compensation for veterans
    with service-connected disabilities and the rates of dependency
    and indemnity compensation for the survivors of certain
    disabled veterans, and for other purposes
         S. 2241 (Committee Print), to ensure that veterans
    have the information and protections they require to make
    informed decisions regarding use of Post-9/11 Educational
    Assistance, and for other purposes
         S. 1707, to amend title 38, U.S.C., to clarify the
    conditions under which certain persons may be treated as
    adjudicated mentally incompetent for certain purposes

        (36) Wednesday, October 3, 2012
        Joint Hearing with the House of Representatives to receive
    the legislative presentation of The American Legion
        (37) Wednesday, December 12, 2012
        Hearing: Nomination of Keith Kelly to be Assistant
    Secretary of Labor for Veterans' Employment and Training and
    William S. Greenberg to be Judge of the United States Court of
    Appeals for Veterans Claims
        (38) Friday, December 21, 2012
        The Committee discharged the nominations of Keith Kelly to
    be Assistant Secretary of Labor for Veterans' Employment and
    Training and William S. Greenberg to be Judge of the United
    States Court of Appeals for Veterans Claims. A hearing on both
    nominations was held on December 12, 2012. Keith Kelly's
    nomination was also referred to the Committee on Health,
    Education, Labor, and Pensions, who discharged by unanimous
    consent. Judge Greenberg was confirmed by the Senate on
    December 21, 2012. Mr. Kelly was confirmed by the Senate on
    January 1, 2013.

                                II. LEGISLATION

    A. First Session (2011)

        In the First Session, the Committee met in open session on
    June 29, 2011, and ordered reported six pieces of legislation
    to the full Senate.

        1. S. 277, the Caring for Camp Lejeune Veterans Act of 2011
        To furnish hospital care, medical services, and nursing
    home care to veterans who were stationed at Camp Lejeune, North
    Carolina, while the water was contaminated at Camp Lejeune, and
    for other purposes. This measure was introduced in the Senate
    on February 3, 2011, and the Committee ordered it to be
    favorably reported on June 29, 2011. S. Report 112-42 was filed
    on August 1, 2011. No further action was taken on this bill in
    the 112th Congress.
        2. S. 572, a bill to amend title 38, U.S.C., to repeal the
    prohibition on collective bargaining with respect to matters
    and questions regarding compensation of employees of the
    Department of Veterans Affairs other than rates of basic pay,
    and for other purposes. This measure was introduced in the
    Senate on March 14, 2011, and the Committee ordered it
    favorably reported on June 29, 2011. S. Report 112-68 was filed
    on September 6, 2011. No further action was taken on this bill
    in the 112th Congress.
        3. S. 745, a bill to amend title 38, U.S.C., to protect
    certain veterans who would otherwise be subject to a reduction
    in educational assistance benefits, and for other purposes.
    This measure was introduced in the Senate on April 6, 2011, and
    the Committee ordered it to be favorably reported, as amended,
    on June 29, 2011. This bill was reported on July 19, 2011,
    without a written report. No further action was taken on this
    bill in the 112th Congress.
        4. S. 894, Veterans' Compensation Cost-of-Living Adjustment
    Act of 2011
        To provide for an increase, effective December 1, 2011, in
    the rates of compensation for veterans with service-connected
    disabilities and the rates of dependency and indemnity
    compensation for the survivors of certain disabled veterans,
    and for other purposes. This measure was introduced in the
    Senate on May 5, 2011, and the Committee ordered it favorably
    reported on June 29, 2011. S. Report 112-44 was filed on
    August 1, 2011. The Senate unanimously passed the bill on
    October 19, 2011, and the House voted to pass it on November 2,
    2011. The bill was signed into law on November 9, 2011, as
    Public Law 112-53.
        5. S. 914, Veterans Programs Improvement Act of 2011
        To authorize the waiver of the collection of copayments for
    telehealth and telemedicine visits of veterans, and for other
    purposes. This measure was introduced on May 9, 2011, and the
    Committee ordered it to be favorably reported, as amended, on
    June 29, 2011. S. Report 112-88 was filed on October 11, 2011.
    No further action was taken on this bill in the 112th Congress.
        6. S. 951, Hiring Heroes Act of 2011
        To improve the provision of Federal transition,
    rehabilitation, vocational, and unemployment benefits to
    members of the Armed Forces and veterans, and for other
    purposes. This measure was introduced on May 11, 2011, and the
    Committee ordered it to be favorably reported, as amended, on
    June 29, 2011. S. Report 112-36 was filed on July 18, 2011. No
    further action was taken in the 112th Congress.

        In addition, during the first session the Committee
    discharged by unanimous consent several pieces of legislation,
    as follows:

        1. H.R. 1383, Restoring GI Bill Fairness Act of 2011, was
    received in the Senate on May 24, 2011. On July 21, 2011, the
    bill was discharged from the Committee and passed with
    amendments in the Senate. The House agreed to the Senate
    amendments on July 26, 2011, and the measure was signed into
    law as Public Law 112-26 on August 3, 2011.
        2. S. Res. 55, a resolution expressing support for
    designation of a ``Welcome Home Vietnam Veterans Day,'' was
    discharged by the Committee and agreed to in the Senate without
    amendment and with a preamble on March 7, 2011.
        3. S. Con. Res. 4, a concurrent resolution expressing the
    sense of Congress that an appropriate site on Chaplains Hill in
    Arlington National Cemetery should be provided for a memorial
    marker to honor the memory of the Jewish chaplains who died
    while on active duty in the Armed Forces of the United States,
    was discharged by the Committee and agreed to in the Senate
    with amendment and with a preamble on May 26, 2011. No further
    action was taken in the 112th Congress.

    B. Second Session (2012)

        In the Second Session, the Committee met in open session on
    September 12, 2012, and ordered to be favorably reported a
    combined total of six pieces of legislation to the full Senate.

        1. S. 1707, the Veterans Second Amendment Protection Act
        To clarify the conditions under which certain persons may
    be treated as adjudicated mentally incompetent for certain
    purposes. This measure was introduced on October 13, 2011, and
    the Committee ordered it to be favorably reported on
    September 12, 2012. No further action was taken in the 112th
    Congress.
        2. S. 2241, GI Bill Consumer Awareness Act of 2012
        To ensure that veterans have the information and
    protections they require to make informed decisions regarding
    use of Post-9/11 Educational Assistance, and for other
    purposes. This measure was introduced on March 27, 2012, and
    the Committee ordered it to be favorably reported on
    September 12, 2012. No further action was taken in the 112th
    Congress.
        3. S. 2259, Veterans' Compensation Cost-of-Living
    Adjustment Act of 2012
        To provide for an increase, effective December 1, 2012, in
    the rates of compensation for veterans with service-connected
    disabilities and the rates of dependency and indemnity
    compensation for the survivors of certain disabled veterans,
    and for other purposes. This measure was introduced on
    March 29, 2012, and the Committee ordered it to be favorably
    reported on September 12, 2012. No further action was taken in
    the 112th Congress.
        4. S. 3313, Women Veterans and Other Health Care
    Improvements Act of 2012
        To amend title 38, U.S.C., to improve the reproductive
    assistance provided by the Department of Veterans Affairs to
    severely wounded, ill, or injured veterans and their spouses,
    and for other purposes. This measure was introduced on June 19,
    2012, and the Committee ordered it to be favorably reported, as
    amended, on September 12, 2012. S. 3313, as further amended,
    passed the Senate by voice vote on December 13, 2012.
        5. S. 3322, Servicemembers' Protection Act of 2012
        To strengthen enforcement and clarify certain provisions of
    the Servicemembers Civil Relief Act, the Uniformed and Overseas
    Citizens Absentee Voting Act, and chapter 43 of title 38,
    U.S.C., and to reconcile, restore, clarify, and conform similar
    provisions in other related civil rights statutes, and for
    other purposes. This measure was introduced on June 20, 2012,
    and the Committee ordered it to be favorably reported on
    September 12, 2012. No further action was taken in the 112th
    Congress.
        6. S. 3340, Mental Health Access to Continued Care and
    Enhancement of Support Services of 2012 or Mental Health ACCESS
    Act of 2012
        To improve and enhance the programs and activities of the
    Department of Defense and the Department of Veterans Affairs
    regarding suicide prevention and resilience and behavioral
    health disorders for members of the Armed Forces and veterans,
    and for other purposes. This measure was introduced on June 25,
    2012, and the Committee ordered it to be favorably reported on
    September 12, 2012. No further action was taken in the 112th
    Congress.

        In addition, during the Second Session the Committee
    discharged several bills by unanimous consent, as follows:

        1. S. 2045, a bill to amend title 38, U.S.C., to require
    judges of the United States Court of Appeals for Veterans
    Claims to reside within fifty miles of the District of
    Columbia, and for other purposes, was introduced on January 31,
    2012. This measure was discharged from the Committee and agreed
    to in the Senate on December 13, 2012. No further action was
    taken in the 112th Congress.
        2. S. 3202, the Dignified Burial and Other Veterans'
    Benefits Improvement Act of 2012, was introduced on May 17,
    2012. This measure was discharged from the Committee and agreed
    to in the Senate with an amendment on December 19, 2012. The
    House passed the bill on December 30, 2012, and the measure was
    signed into law as Public Law 112-260 on January 10, 2013.
        3. H.R. 1627, Honoring America's Veterans and Caring for
    Camp Lejeune Families Act of 2012, was passed by the House on
    May 23, 2011. This measure was discharged from the Committee
    and agreed to in the Senate with an amendment and an amendment
    to the title on July 18, 2012. The House agreed to the Senate
    amendments on July 31, 2012, and the bill was signed into law
    as Public Law 112-154 on August 6, 2012.
        4. H.R. 4057, Improving Transparency of Education
    Opportunities for Veterans Act of 2012, was passed in the House
    on September 11, 2012. This measure was discharged from the
    Committee and agreed to in the Senate with an amendment on
    December 19, 2012. The House agreed to the Senate amendments on
    December 30, 2012, and the measure was signed into law as
    Public Law 112-249 on January 10, 2013.
        5. H.R. 4114, Veterans' Compensation Cost-of-Living
    Adjustment Act of 2012, was passed by the House on July 9,
    2012. This measure was discharged from the Committee and agreed
    to in the Senate on November 13, 2012. The bill was signed into
    law as Public Law 112-198 on November 27, 2012.

    C. Reports

        S. 277, the Caring for Camp Lejeune Veterans Act of 2011.
    S. Report 112-42.
        S. 572, a bill to amend title 38, U.S.C., to repeal the
    prohibition on collective bargaining with respect to matters
    and questions regarding compensation of employees of the
    Department of Veterans Affairs other than rates of basic pay,
    and for other purposes. S. Report 112-68.
        S. 894, Veterans' Compensation Cost-of-Living Adjustment
    Act of 2011. S. Report 112-44.
        S. 914, Veterans Programs Improvement Act of 2011. S.
    Report 112-88.
        S. 951, Hiring Heroes Act of 2011. S. Report 112-36.

    D. Public Laws

                Senate Vehicle
        S. 894, Veterans Compensation Cost-of-Living Adjustment Act
    of 2011 is Public Law 112-53.
        S. 3202, the Dignified Burial and Other Veterans' Benefits
    Improvement Act of 2012 is Public Law 112-260.
                House Vehicle
        H.R. 1383, Restoring GI Bill Fairness Act of 2011 is Public
    Law 112-26.
        H.R. 1627, Honoring America's Veterans and Caring for Camp
    Lejeune Families Act of 2012 is Public Law 112-154.
        H.R. 4057, Improving Transparency of Education
    Opportunities for Veterans Act of 2012, Public Law 112-249.
        H.R. 4114, Veterans' Compensation Cost-of-Living Adjustment
    Act of 2012 is Public Law 112-198.

                                 III. OVERSIGHT

    A. First Session (2011)

        In accordance with its mandate, the Committee engaged in
    vigorous oversight of VA Regional Offices, hospitals, and other
    health care facilities, as well as Department of Defense
    (hereinafter, ``DOD'') facilities.
        A primary focus for the Committee is VA compliance with
    policies and regulations in the processing of disability
    compensation claims for veterans with service-connected
    conditions. Toward this end, the Committee's Majority staff
    visited nine VA Regional Offices, the Appeals Management
    Center, and VA's Compensation Service offices for review of
    electronic files in 2011. Staff examined individual claims in
    these offices, identifying patterns of serious errors or
    omissions, relaying that information to VA leadership so that
    it could improve the training, oversight, and accuracy of VA
    claims decisions.
        Other areas of specific concern for Majority Committee
    staff included the review of claims from Naval veterans for
    conditions related to herbicide exposure. As a result of
    ongoing oversight efforts, VA continues to update a central
    database with a list of ships for which service on the inland
    waterways of Vietnam has been documented. At the request of the
    Committee, VA continues to publish the updated list on VA's Web
    site so that veterans and advocates can easily identify ships
    and time periods for exposure to herbicide. The list continues
    to grow, benefiting thousands of veterans.
        Oversight of claims for conditions related to herbicide
    exposure also resulted in the Committee's Majority staff
    receiving clarification from VA that veterans exposed to
    herbicides on the perimeters of Air Bases in Thailand are
    eligible for an earlier effective date if a previous claim had
    been denied before military records of exposure had been
    discovered.
        Also audited by the Committee Majority staff were decisions
    for post traumatic stress disorder; the quality of medical
    examinations conducted by VA medical examiners; and the
    adequacy of quality-control measures employed by VA to ensure
    accurate and consistent claims decisions.
        In a related effort, Majority Committee staff traveled to
    the Indianapolis and Salt Lake City Regional Offices to examine
    the testing and implementation of VA's claims transformation
    efforts, including the processing of claims using the Veterans
    Benefits Management System (hereinafter, ``VBMS''), VA's
    paperless claims processing system. The Majority Committee
    staff was joined by Minority Committee staff in a visit to the
    Philadelphia Regional Office to review ongoing claims
    transformation efforts as well as the Pension Management Center
    and VA's Insurance Program.
        Committee oversight also focused on programs and efforts
    designed to help servicemembers transition to civilian status.
    Majority and Minority Committee staff placed significant
    attention on the transition of servicemembers through the
    Integrated Disability Evaluation System (hereinafter,
    ``IDES''), visiting DOD facilities in Washington, North
    Carolina, Hawaii, and California. Majority Committee staff also
    visited DOD facilities in Fort Carson, Colorado, to review IDES
    and Warrior Transition Units.
        Committee Majority and Minority staff visited VA Medical
    Centers, Clinics, and Vet Centers located in Pennsylvania,
    Massachusetts, and Connecticut. These visits focused on broader
    quality-of-care issues, research programs, and the availability
    of services for specific populations such as women veterans and
    recently separated veterans. Committee Majority staff visited
    VA Medical Centers, Clinics, and Vet Centers located in
    Tennessee, Kentucky, Colorado, Maine, and Illinois. These
    visits also focused on broader quality-of-care issues, research
    programs, and the availability of services for specific
    populations such as women veterans and recently separated
    veterans. Staff also focused on access to specialty care and
    the quality and timeliness of surgical referrals. While in
    Colorado, staff visited the Health Acquisitions Center to
    discuss the management of claims processing in an effort to
    strengthen the recovery of health care resources. In addition,
    Committee Majority staff visited the Air Force Academy in
    Colorado Springs to examine the challenges surrounding the
    delivery of health care in the VA-DOD outpatient surgery joint
    venture.
        A key focus of Committee staff was to ensure that VA's
    programs for homeless veterans were being managed and operated
    appropriately. Toward this end, Committee Majority and Minority
    staff visited the National Center on Homelessness Among
    Veterans in Philadelphia, Pennsylvania, to discuss research on
    emerging best practices in ending veteran homelessness.
    Committee Majority and Minority staff also visited VA's
    Northeast Program Evaluation Center in West Haven, Connecticut,
    and to assess data collection and aggregation on existing
    homeless veteran programs.
        In a related effort, Committee staff visited grantees that
    operate a range of housing and employment programs for homeless
    veterans in the District of Columbia, Virginia, Tennessee,
    Colorado, Pennsylvania, and Massachusetts. Of particular
    interest to the Majority Committee staff was VA's Homeless
    Grant and Per Diem Program. Staff conducted an audit of the
    annual inspection reports to identify opportunities for
    improvement among grantees and modernization of the program.
        In addition, Committee Minority staff visited the VA
    Medical Center in Augusta, Georgia.
        Committee Majority staff visited the National Cemetery in
    Hawaii. Regarding GI Bill benefits, Majority staff visited
    educational institutions in the District of Columbia, Hawaii,
    and Ohio.

    B. Second Session (2012)

        Building on findings of field investigations from the first
    session, the Majority Committee staff continued its
    investigation into the administration of VA's disability
    compensation system. Majority investigative staff traveled to
    nine VA Regional Offices to closely examine individual claims
    and audited, through remote technology, the adjudication of
    claims in several other VA Regional Offices. In addition,
    several visits were made to the Providence Regional Office to
    monitor the testing and progression of VBMS.
        Majority and Minority Committee staff continued oversight
    of VA's efforts to transform the compensation claims system
    with visits to the St. Petersburg and Nashville Regional
    Offices. Staff reviewed implementation of various initiatives
    designed to improve the timeliness and accuracy of claim
    decisions, including simplified notification letters and
    quality review teams. The Majority Committee staff also visited
    Fort Harrison Regional Office shortly after implementation of
    VBMS to review ongoing efforts to deploy the paperless claims
    processing system.
        Building upon efforts from the first session of the 112th
    Congress, Majority Committee staff continued to closely monitor
    efforts to assist servicemember transition to civilian status.
    Minority Committee staff were also present during some of these
    visits. Oversight efforts focused on the status of VA/DOD
    collaboration, including the status of the integrated
    Electronic Health Record program, the Virtual Lifetime
    Electronic Record, and IDES. As part of this oversight, staff
    traveled to: Captain James A. Lovell Federal Health Care
    Center, North Chicago, Illinois; VA San Diego Healthcare
    System, San Diego, California; Naval Medical Center San Diego,
    San Diego, California; VA Puget Sound Health Care System,
    Seattle, Washington; Madigan Army Medical Center, Tacoma,
    Washington; and Joint Base Lewis-McChord, Fort Lewis,
    Washington. Staff identified ongoing issues related to the
    efficacy of VA/DOD collaboration, including the need for better
    coordination of business processes and interoperability of
    information technology systems between the two departments.
    Majority Committee staff continue to believe that an end-to-end
    shared information solution between the departments is
    essential to ensuring a servicemember's seamless transition
    from active duty into the VA system.
        Majority and Minority Committee staff traveled to DOD and
    VA facilities to evaluate the effectiveness of initiatives
    aimed at better coordination between the two Departments in the
    evaluation of service-connected disabilities among
    servicemembers. Facilities visited included Fort Knox, multiple
    DOD facilities in Hawaii, and the Reserve Components Medical
    Support Center located in Pinellas Park, Florida. Each of these
    visits focused on the effectiveness of IDES, the joint DOD and
    VA disability evaluation system. Committee staff also visited
    VA's Systematic Technical Accuracy Review program offices in
    Nashville, Tennessee, to review the accuracy of claims
    decisions provided to servicemembers involved in IDES.
        Majority Committee staff also conducted extensive reviews
    of electronic and paper files of servicemembers and veterans
    who participated in the Disability Evaluation System
    (hereinafter, ``DES'') and IDES to evaluate the quality of
    mental health examinations, evaluations, and diagnoses. The
    results of these reviews were consolidated in an ``Interim
    Committee Staff Report: Investigation of Joint Disability
    Evaluation System'' that outlined ongoing challenges confronted
    by servicemembers navigating this joint disability evaluation
    system.
        A critical component of seamless transition is
    participation in the Transition Assistance Program
    (hereinafter, ``TAP''). TAP has continued to be an area of
    focus for Committee staff due to its importance in educating
    transitioning servicemembers about the programs and benefits
    that are available to them as they enter civilian life.
    Committee Majority staff traveled to Naval Station Norfolk to
    evaluate the revamped TAP.
        The number of veterans and dependents taking advantage of
    their GI Bill benefits continues to grow. The Majority staff of
    the Committee visited Arizona State University and the
    University of Alaska Fairbanks to evaluate the Vet Success on
    Campus Program (hereinafter, ``VSOC'') and other similar
    initiatives designed to assist student veterans to assimilate
    into the campus environment. As a result of this oversight, the
    Vocational Rehabilitation and Employment Program (hereinafter,
    ``VR&E'') worked with VA's Education Service to ensure that
    VSOC counselors had dedicated points of contact at Regional
    Processing Offices. VR&E also provided additional training for
    VSOC counselors to ensure that standardized services are
    delivered program-wide.
        Committee Majority and Minority staff examined quality-of-
    care issues at VA Medical Centers, Clinics, and Vet Centers in
    California, Washington, Texas, and Florida. Committee Majority
    staff also visited Alaska, Arizona, New Mexico, Montana,
    Massachusetts, and West Virginia. Staff focused on broader
    quality-of-care issues and the availability of services for
    specific populations such as women veterans and recently
    separated veterans.
        Of particular interest to the Committee was wait times for
    mental health appointments. Committee Majority staff visited
    five Community Based Outpatient Clinics and two Vet Centers in
    the District of Columbia, Maryland, and Virginia to examine
    appointment wait times and the environment of care.
        One priority issue examined by the Committee Majority staff
    was access to care for Native American and Alaska Native
    veterans. Staff visited two Alaska Native health care
    facilities and the Department of Navajo Veterans Affairs to
    obtain input on how access to medical care can improve and how
    to increase awareness of available benefits.
        A key focus of the Committee staff was responding to the
    increasing number of women veterans experiencing homelessness.
    At the Committee Majority staff's request, VA reviewed the
    placements of homeless women veterans in transitional housing
    facilities to ensure that their privacy, safety, and security
    needs were being met. This resulted in women veterans being
    placed in more appropriate facilities that would better meet
    their needs.
        As a part of the Committee Majority's focus on the ongoing
    effects of the Vietnam war, staff traveled to Vietnam. The
    visit focused on the impacts of Agent Orange exposure and the
    search and recovery of remains of those servicemembers still
    missing from the war in Vietnam.
        Committee Majority staff also visited National Cemeteries
    in Arizona, Florida, New Mexico, and California.

                                IV. NOMINATIONS

    ----------------------------------------------------------------------------------------------------------------
                                                                 Date of       Date of        Date          Date
                        Name and Position                      Nomination      Hearing      Reported      Confirmed
    ----------------------------------------------------------------------------------------------------------------
    First Session

      Allison A. Hickey.....................................     1/5/2011      4/6/2011      5/4/2011     5/26/2011
        Under Secretary for Benefits of the Department of
         Veterans Affairs
      Steve L. Muro.........................................     1/5/2011      4/6/2011      5/4/2011     5/26/2011
        Under Secretary of Veterans Affairs for Memorial
         Affairs
      Margaret Bartley......................................    6/22/2011     3/28/2012     4/26/2012     5/24/2012
        Judge of the United States Court of Appeals for
         Veterans Claims
      Gloria Wilson Shelton.................................    6/22/2011            --            --            --
        Judge of the United States Court of Appeals for
         Veterans Claims

    Second Session

      Coral Wong Pietsch....................................    11/1/2011     3/28/2012     4/26/2012     5/24/2012
        Judge of the United States Court of Appeals for
         Veterans Claims
      Constance B. Tobias...................................    1/24/2012            --            --            --
        Chairman of the Board of Veterans' Appeals
      Thomas Skerik Sowers II...............................    5/10/2012     7/18/2012      8/2/2012      8/2/2012
        Assistant Secretary of Veterans Affairs
      Keith Kelly...........................................    9/19/2012    12/12/2012            --      1/1/2013
        Assistant Secretary of Labor for Veterans'
         Employment and Training
      William S. Greenberg..................................   11/15/2012    12/12/2012            --    12/21/2012
        Judge of the United States Court of Appeals for
         Veterans Claims
    ----------------------------------------------------------------------------------------------------------------

                        V. BUDGET FOR VETERANS PROGRAMS

    A. First Session (2011)

        Pursuant to the requirements of section 301(d) of the
    Congressional Budget Act of 1974, Democratic and Republican
    Members of the Committee submitted a letter to the Budget
    Committee reflecting the Committee's Views and Estimates on the
    Administration's proposed fiscal year 2012 budget for veterans'
    programs. The letter submitted is printed below in its
    entirety:

                                                        March 18, 2011.
    Hon. Kent Conrad, Chairman,
    Hon. Jeff Sessions, Ranking Member,
    Committee on the Budget,
    U.S. Senate, Washington, DC.
        Dear Chairman Conrad and Ranking Member Sessions: Pursuant
    to Section 301(d) of the Congressional Budget Act of 1974, the
    Undersigned Members of the Committee on Veterans' Affairs
    hereby report to the Committee on the Budget their views and
    estimates on the Fiscal Year 2012 (FY12) budget for Function
    700 (Veterans' Benefits and Services) and for Function 500
    (Education, Training, Employment, and Social Services) programs
    within the Committee's jurisdiction, including the Court of
    Appeals for Veterans Claims. This letter responds to the
    Committee's obligation to provide recommendations on veterans'
    programs within its jurisdiction, albeit from the perspective
    of the Undersigned Members.

                                   I. Summary

        The Undersigned Members support the President's request for
    the FY12 budget for the Department of Veterans Affairs (VA) but
    recommend an increase, above the Department's requested
    discretionary amounts, of $9 million for the Office of
    Inspector General and $72 million for Medical and Prosthetic
    Research. In addition, the Undersigned Members recommend $24
    million above the President's request for the Department of
    Labor's Veterans' Employment and Training Service. The result
    of these recommendations is an overall funding recommendation
    of $105 million above the President's requested discretionary
    amount for FY12.
        We are mindful that some accounts in this letter recommend
    funding increases and, to the extent practicable, the Committee
    on Veterans' Affairs will identify funding within our
    jurisdiction to keep total spending for VA and other entities
    within the Committee's jurisdiction to the President's
    requested level for FY12. For example, the Committee has
    identified $25 million that has been requested from the Court
    of Appeals for Veterans Claims (CAVC) that, in the Undersigned
    Members' opinion, could be better used in other areas. In
    addition to exploring changes to the increase in funding for
    general administration in the President's request, we will
    follow the lead of the recommendations of the President's
    National Commission on Fiscal Responsibility and Reform by
    examining the increases to employee travel accounts, which
    potentially could be shifted to more critical missions within
    VA.
        With respect to mandatory benefits, sufficient offsets
    should be identified to avoid imposing a Cost-of-Living
    Adjustment (COLA) round-down for the upcoming fiscal year.

                       II. Discretionary Account Spending

    A. Medical Services

        The President requests an overall funding amount of $40.05
    billion for Medical Services for FY12, an increase of $2.92
    billion over the amount in FY11. This amount includes a
    rescission of $552 million as part of the President's freeze on
    pay for Executive Branch employees. We support the President's
    request for an additional $2.92 billion in funding for Medical
    Services, as described in greater detail below:

    Components of Recommended Increases

                1. Health Care Services
        Acute Care: VA provides veterans with acute care services
    that include inpatient hospital care, ambulatory care, and
    pharmacy services. Inpatient acute care services include
    neurology and surgery. Ambulatory care includes care provided
    at VA hospital-based and community-based clinics, as well as
    contracted non-VA facilities. Pharmacy services include
    prescriptions, over-the-counter medications, and pharmacy
    supplies. VA estimates the demand for such services will cost
    $28.18 billion in FY12, necessitating an additional $1.85
    billion in needed funding over the FY11 amount.
        The Undersigned Members support the President's request for
    an additional $1.85 billion for acute care funding for FY12.
        Rehabilitation: VA's rehabilitative care programs include
    the Blind Rehabilitation and Spinal Cord Injury programs, among
    others. Pursuant to Public Law 104-262, which established the
    requirement that VA maintain its capacity to provide for the
    specialized treatment and rehabilitative needs of patients, the
    Administration is expanding the Blind Rehabilitation program to
    accommodate the increased workload due to additional numbers of
    eye injuries among Operation Enduring Freedom, Operation Iraqi
    Freedom, and Operation New Dawn (OEF/OIF/OND) veterans.
        The Undersigned Members support the President's request for
    an additional $14.9 million in funding for FY12 for VA's
    rehabilitation programs.
        Mental Health: Funding for mental health supports
    inpatient, residential, and outpatient mental health programs.
    The number of veterans diagnosed with substance abuse problems
    is increasing, as are the average daily census for inpatient
    programs and the number of outpatient visits, necessitating
    more resources for mental health services. As VA integrates
    mental health care with primary care, completes the
    implementation of the Uniform Mental Health Services Handbook,
    implements new screening and treatment deadlines, increases
    access and outreach, and expands training for providers, more
    funds will be required. VA is also working with the Department
    of Defense (DOD) to implement the Integrated Mental Health
    Strategy, which will increase collaboration between the
    Departments to ensure that all veterans and servicemembers are
    captured by the system.
        The Undersigned Members support the President's request for
    an additional $195.5 million in funding over FY11 levels for
    mental health services, for a total funding amount of $4.25
    billion for FY12.
        Prosthetics: VA provides funds to veterans for the purchase
    and repair of prosthetics and sensory aids, such as artificial
    limbs, hearing aids, pacemakers, artificial hip and knee
    joints, ocular lenses, and wheelchairs. VA estimates the demand
    for such prosthetics and repairs to cost $2.49 billion in FY12
    and requests an additional $322 million in needed funding over
    the FY11 amount. We have seen some new data that show dramatic
    increases in amputations among casualties of the current
    conflicts. Some of the most shocking statistics include that
    twice as many wounded soldiers needed a limb amputated than in
    the previous two years. This is an area where the Committee
    intends to do more oversight to ensure that there are
    sufficient resources to provide prosthetics to the casualties
    of the current conflicts.
        The Undersigned Members support the President's request for
    an additional $322 million in funding for FY12, for a total
    amount of $2.49 billion to meet the demand for prosthetics in
    FY12.
        Dental Care: VA provides veterans with dental care services
    that include onetime Class II benefits to all newly discharged
    combat OEF/OIF/OND veterans within 180 days of discharge. Class
    II benefits are provided to veterans with service-connected,
    non-compensable dental conditions or disabilities shown to have
    been in existence at the time of discharge or release from
    active duty. VA also provides dental services to veterans
    placed into dental Classifications III and IV, those with a
    condition negatively impacted by poor dentition. VA estimates
    the demand of such services will cost $490.8 million in FY12,
    necessitating an additional $19.3 million in funding over the
    FY11 funding amount.
        The Undersigned Members support the President's request for
    an additional $19.3 million in funding for FY12, for a total
    funding amount of $490.8 million for dental care for FY12.
        Contingency Fund: This year, VA has requested the creation
    of a contingency fund to supplement the amounts requested
    above. This fund is intended to make available additional sums
    that VA could need if the economy continues to be weak and
    unemployment high, therefore bringing more veterans into the VA
    system and increasing their reliance on it. This is the first
    year that the Enrollee Health Care Projection Model, the tool
    VA uses to project utilization of the health care system, has
    incorporated an adjustment for these factors. In order to
    release funds from the proposed contingency fund, a joint
    request by VA and the Office of Management and Budget (OMB)
    would be required. Unused sums would be returned to the
    Treasury. The Undersigned Members are skeptical about the
    President's request for the creation of a contingency fund and
    for an amount of $953 million to be placed in that fund.
    However, this Committee will be closely monitoring VA's
    quarterly status reports that describe financial status and
    program performance.
        Long-Term Care: VA projects the institutional care average
    daily census (ADC) will increase from 40,184 to 40,843 (1.6
    percent) from 2011 to 2012, and the non-institutional care ADC
    will increase from 109,256 to 113,926 (4.3 percent) from 2011
    to 2012.
        The Undersigned Members support the President's request for
    an additional $478.6 million in funding for FY12, for a total
    funding amount of nearly $5.4 billion for long-term care
    services.
        Civilian Health and Medical Program of the Department of
    Veterans Affairs (CHAMPVA): CHAMPVA provides health care
    benefits for dependents and survivors of veterans who are, or
    were at time of death, 100 percent permanently and totally
    disabled from a service-connected disability, or who died from
    a service-connected condition. Of note, the family caregivers
    program mandated by Public Law 111-163 requires VA to extend
    CHAMPVA eligibility to primary family caregivers who do not
    have another form of health insurance.
        The Undersigned Members support the President's request for
    an additional $98.1 million in funding for FY12 and support the
    requested total funding amount of approximately $1.18 billion
    for CHAMPVA services. However, the Undersigned Members will be
    ensuring amounts are sufficient to account for the increases in
    CHAMPVA usage that will result from the implementation of the
    family caregiver program mandated by Public Law 111-163.
        Readjustment Counseling: VA furnishes readjustment
    counseling at VA's Vet Centers to veterans who served in combat
    zones, including those involved in OEF/OIF/OND. VA had 300 Vet
    Centers operating across the country in 2010, and had 1.37
    million visits. Vet Centers provide essential counseling
    related to combat service, bereavement counseling for families
    of servicemembers who die while on active duty, as well as
    outreach and referral services. VA expects an increase in post-
    traumatic stress disorder (PTSD) and other mental health
    conditions as veterans return from OEF/OIF/OND after multiple
    tours of duty. The President requests $189 million in total
    funding for FY12 to meet the increasing demand for readjustment
    counseling.
        Therefore, the Undersigned Members support an additional $8
    million in funding for FY12 and recommend a total of $189
    million in funding for readjustment counseling.
                2. Operational Improvements
        While the Undersigned Members of the Committee support the
    expansion of many existing initiatives in the areas of mental
    health, readjustment counseling, and rehabilitative care, as
    discussed above, we believe that more can and should be done--
    especially in the areas of homelessness, mental health care,
    and family caregiving. The Undersigned Members look forward to
    examining the Administration's proposed initiatives,
    improvements, and legislative proposals.
        The President's request also includes a proposal to realign
    clinical staff in a way VA anticipates will be more efficient
    and is projected to generate $150.8 million in savings in the
    first year. Under the realignment, VA would convert 1,446
    physician and registered nurse positions into 1,165 licensed
    practical nurses, nursing assistant, and other similar provider
    positions. The Undersigned Members are concerned about possible
    detrimental effects on the quality of or access to care for
    veterans. For our part, we will work to ensure that any
    conversions are carried out in a responsible manner.
                3. Major and Minor Construction:
        The Administration requested $589.6 million for Major
    Construction in FY12, which is a decrease of $604.4 million
    from the FY10 funding level. Although this request supports
    seven medical facility projects already underway and begins
    three new medical facility projects, there remains a huge
    backlog of partially-funded and unfunded construction projects.
    The Major Construction request also fully funds the resources
    required to support gravestone expansion at the National
    Memorial Cemetery of the Pacific, providing a burial option to
    an additional 9,000 deceased veterans and eligible family
    members, and allowing the cemetery to maintain its status as a
    National Shrine.
        For Minor Construction, the Administration's budget request
    of $550.1 million would reduce the account from its FY10 level
    by over $235 million. However, the costs of repairing all of
    the facilities in need of repair--via minor construction and
    non-recurring maintenance funds--would total $10 billion.
        While VA's new Strategic Capital Investment Plan (SCIP) is
    a useful baseline for future capital planning and while it
    succeeds in some areas, it fails to express an overarching
    national vision on VA's capital investments and their impact on
    the delivery of health care. SCIP has identified $53-65 billion
    in improvements that should be made over the next ten years to
    ensure that facilities keep up with advances in health care,
    prevent excessive deterioration, and maintain facilities that
    are able to meet the pace of demand. Keeping in mind that the
    average VA building is approximately 60 years old, and that
    funding for repairs and maintenance has been historically
    limited, VA must begin to define an overarching national
    strategy based on the gaps defined in SCIP. Among the proposals
    in the President's budget request are $1 billion for new
    facility projects, $700 million for leases, and $700 million
    for facility renovation projects. In this difficult financial
    environment, VA is advised to outline a comprehensive national
    plan to meet its physical infrastructure needs in the most
    timely and cost-effective method.
        In the absence of such a plan, the Undersigned Members
    support the President's budget request for Major and Minor
    Construction. We expect that in future years, SCIP will better
    define VA's nation-wide strategy on physical infrastructure
    that will allow for timely and cost-effective delivery of
    health care.
                4. Policy Highlights:
        Women Veterans: Women veterans are the fastest growing
    segment of veterans. The percentage of women veterans is
    expected to rise substantially over the next two decades. While
    VA is an institution originally designed and focused toward
    serving male veterans, there is a crucial need to adapt to this
    change in the veteran population.
        The Undersigned Members support the President's request for
    an additional $28 million in funding for women veterans. An
    increase in the FY12 budget toward women veteran specific
    programs is a positive sign that VA is making an effort to
    quickly improve services for the rapidly growing number of
    women veterans.
        The Undersigned Members encourage VA to maximize its use of
    existing legislative tools and already appropriated funding to
    finish implementing Title II of Public Law 111-163, the
    Caregivers and Veterans Omnibus Health Services Act of 2010,
    which contains six vital provisions, including a childcare
    pilot program.
        Homeless Veterans: In an effort to end homelessness among
    veterans, VA proposes to enhance its current efforts to house
    homeless veterans by expanding the capacity of its programs to
    assist homeless veterans. Included in this funding are programs
    to provide timely interventions, such as supportive services to
    veterans at risk of becoming homeless through the Department of
    Housing and Urban Development (HUD) and VA pilot programs to
    help OEF/OIF/OND veterans, per diem grants for community-based
    programs, intensive case management services for HUD-VA
    Supported Housing (HUD-VASH) voucher recipients, among other
    programs.
        The Undersigned Members support the President's request for
    an additional $139.4 million, to ensure that VA maintains its
    commitment to ending veteran homelessness by the year 2015.
        Permanent supportive housing has been recognized by both VA
    and the United States Interagency Council on Homelessness as a
    key component of the plan to end veteran homelessness, and we
    support its continued growth. While it is outside of our
    purview, the Undersigned Members would also like to express our
    commitment to maintaining sufficient HUD funding to support the
    appropriate number of HUD-VASH vouchers.

    B. Medical Support and Compliance

        The Medical Support and Compliance appropriation provides
    funding for the expenses of management, security, and
    administration of the VA health care system Such costs include
    operation of VA medical centers, Veterans Health Administration
    (VHA) headquarters, VISN offices, Facility Director offices,
    Chief of Staff operations, quality of care oversight, security
    and legal services, billing and coding activities, procurement,
    financial management, and human resource management.
        The President's FY12 and FY13 estimates for the Medical
    Support and Compliance appropriation are based on an actuarial
    analysis founded on current and projected veteran population
    statistics, enrollment projections of demand, and case mix
    changes associated with current veteran patients. This amount
    also includes a $111 million rescission of funds as part of the
    President's freeze on pay for Executive Branch employees.
        We support the President's recommendation of $117 million
    in funding over FY11 levels for Medical Support and Compliance.

    C. Medical Facilities

        The Medical Facilities account includes funding for non-
    recurring maintenance, project management, construction design
    and planning, facility operations, and other costs. We
    specifically are delighted to see that the President's budget
    submission directs a minimum of five percent of all non-
    recurring maintenance to medical research facilities. The
    Department's research facilities are in poor condition and have
    historically had difficulty in receiving funds to conduct
    needed maintenance.
        We support the President's recommendation for $364 million
    less in funding over FY11 levels for Medical Facilities, with
    an exception. VA has currently identified $10 billion in
    facility condition deficiencies, which increase operating costs
    and potentially pose safety hazards. We note with concern that
    the decrease in non-recurring maintenance funding of $241
    million may exacerbate the problem.
        The Undersigned Members expect that the funding level for
    non-recurring maintenance will be adequate to maintain current
    levels of services and ask that funding be redirected to
    correcting these deficiencies.

    D. Medical and Prosthetic Research

        VA medical and prosthetic research is key to advancing
    health care in the nation, not only for veterans, but for the
    population at large. As the nation's largest health care
    network, VA has unparalleled resources with which to conduct
    research, including its cadre of dedicated physician
    researchers. It is for this reason that the Undersigned Members
    are concerned by the Administration's request to cut funding
    for this account by $72 million. VA's request includes
    eliminating 82 research projects and $40.58 million in cuts to
    other ongoing research.
        The Undersigned Members recommend a total of $581 million
    for FY12, which is equal to the FY11 amount, and $72.2 million
    above the President's request for FY12.

    E. Information Technology

        The President's budget for Information and Technology (IT)
    funding represents a decrease of $146 million from the
    estimated FY11 funding level.
        VA's IT budget submission outlines 16 major transformative
    initiatives, operations and maintenance of existing
    infrastructure, and IT security that will be supported by this
    request. According to VA, these initiatives will fund efforts
    to create a paperless claims system; lifetime electronic
    medical records enhancements; veteran relationship management
    software; and infrastructure and reinvestment to maintain the
    over 330,000 desktop computers within VA.
        While VA's IT development and management has improved in
    recent years, the Committee's concerns must be noted.
    Specifically, we are concerned about how DOD and VA are working
    to realize the joint Presidential initiative--the Virtual
    Lifetime Electronic Record (VLER)--launched in April 2009. VLER
    was designed with the goal of closing the data gap between
    active duty and veteran status and providing automated
    information access to veterans and their families. VLER is
    scheduled to allow system wide health data exchange in 2012,
    with expanded types of records exchange by 2015. To date,
    however, slow progress has yielded only two small-scale pilots
    exchanging health data across DOD, VA, and the private sector.
    More health records exchange sites are planned for later this
    year. However, it is unlikely that VA and DOD will meet the
    2012 goal of full integration of electronic health records.
        In general, however, the Undersigned Members are pleased to
    laud VA's progress in managing project schedules, costs, and
    performance under Project Management Accountability System
    (PMAS). Further transparency has been gained by publishing an
    on-line dashboard of ongoing IT projects. As a result, PMAS has
    exceeded an 80 percent success rate of meeting project
    milestones. All IT projects, from health informatics research
    to paperless claims processing, are managed by PMAS. Recently,
    PMAS called for the halting of the development of a software
    program due to cost and schedule overruns. This was an
    appropriate response which reinforces the purpose of PMAS: to
    ensure that projects are completed on time and on budget.
        The Undersigned Members agree that Congress should invest
    in transforming VA into a 21st Century organization, while
    carefully monitoring these developments.

    F. Compensation, Pension, and Burial Staffing and Training

        VA must take aggressive action to improve the claims
    adjudication process, with a focus on training and quality. The
    Undersigned Members believe the Administration's request for
    compensation, pension, and burial staffing in FY12 is necessary
    to mitigate the impact of the recent decision to extend
    presumptive service-connection for certain conditions
    associated with exposure to Agent Orange, an increase in claims
    receipts, and a growing complexity in claims adjudication.
        Staffing: For FY12, the President requests 15,983 Full-time
    Equivalents (FTE) for compensation, pension, and burial
    staffing. This represents a slight increase over the FY11
    level.
        Workload: The disability claims workload from OEF/OIF
    veterans, as well as from veterans of earlier periods, has
    continuously increased since 2000. For example, annual claims
    grew from 788,298 in 2005 to 1,192,346 in 2010. In 2011, VA
    anticipates claims receipts will rise to 1,480,492. Of that
    amount, approximately 230,000 will be Agent Orange-related
    claims for one of the three new presumptive conditions
    (Ischemic Heart Disease, Parkinson's Disease, and Hairy Cell
    Leukemia and other chronic B-cell Leukemias). Of those claims,
    approximately 93,000 are covered by the Nehmer settlement--
    meaning they were previously denied and must be readjudicated.
        Claims received by VA are increasingly complex and require
    more time to develop and rate. In 2010, original claims for
    compensation with eight or more claimed issues increased from
    43,655 in 2005 to 70,620 in 2010--a 62 percent increase.
        In addition, VA anticipates that reopened claims for
    increased benefits will continue to grow as compensation
    recipients, many of whom suffer from chronic progressive
    disabilities (such as diabetes, mental illness, and
    cardiovascular disease) age, and their conditions worsen.
    During 2010, reopened disability claims made up 59 percent of
    all disability claims received.
        Timeliness: VA estimates that, even with its direct labor
    FTE, it will take an average of 230 days to complete a
    compensation and pension rating-related claim during FY12. This
    is 105 days longer than VA's strategic target--125 days. The
    Undersigned Members believe that VA must be able to absorb new
    court decisions, changes in legislation and regulation, and the
    impact of other unforeseen events, and, above all, to avoid
    becoming paralyzed to the detriment of the veterans who rely on
    it. The Undersigned Members additionally believe that this
    cannot be accomplished through staffing alone and will monitor
    VA's other initiatives, including the Veterans Benefits
    Management System (VBMS), which seeks a favorable impact on the
    system.
        The Undersigned Members will continue to monitor VBA's
    staffing requirements and output in FY12. We also will look to
    the Administration to show how it is holding managers and
    employees accountable for performance given the resources that
    will be provided.
        Veterans Benefits Administration (VBA) Information
    Technology: The President's FY12 budget submission includes $70
    million for the Secretary's IT transformational initiative.
    VBMS is VA's proposed paperless IT solution that the Department
    plans to deploy nationwide by 2015. It is designed to be the
    platform to pull together all software related to disability
    claims. VA plans to deliver new functionalities to VBMS monthly
    under its ``agile software development model,'' allowing
    continual improvement and expanded functionality. VA believes
    that, over time, VBMS will more efficiently enable claims
    processing by reducing the time it takes to adjudicate a claim
    by eliminating the use and handling of paper claims folders.
        The Undersigned Members support the President's request in
    this area and intend to conduct rigorous oversight of VA's
    deployment of VBMS.
        Training: The President's FY12 budget submission for VBA's
    Office of Employee Training and Development includes $12.9
    million for training of Compensation and Pension (C&P)
    personnel. According to VA, this funding would support entry-
    level training for new claims processors, on-line training for
    new and experienced claims processors, nationally standardized
    lesson materials for local delivery to experienced claims
    processors, and electronic performance support systems to
    accelerate claims-processing decisions.
        The Undersigned Members are disappointed that the
    President's Budget request did not provide many particulars on
    training for C&P staff to enable the Committee to better
    understand the effect of training--and what more can be done to
    assure accuracy in claims adjudication. Given the Secretary's
    commitment to improve quality to 98 percent by 2015, the
    Undersigned Members believe that the Department should provide
    greater details on how the Department intends to reach this
    goal, and what role training will have in improving quality to
    this extent. The Undersigned Members believe that training is
    an essential component of any strategy to improve the
    timeliness and accuracy of claims processing and hope that the
    quality of claims that are adjudicated will not suffer as VA
    undertakes this effort.

    G. Board of Veterans' Appeals

        The Board of Veterans' Appeals (BVA or Board) is
    responsible for making final Departmental decisions on behalf
    of the Secretary for the thousands of benefits claims presented
    for appellate review annually. From 2008 to 2010, case receipts
    at the Board increased by 22 percent. On average, BVA receives
    on appeal 5 percent of all claims decided by VA. From 2008 to
    2012, the Board expects a 63 percent increase in case receipts
    from 40,916 to 66,000.
        The President's FY12 request for BVA is $78 million, which
    would support 544 FTE and allow the Board to sustain the FY11
    level of FTE. With this level of funding, the Board anticipates
    that it will be able to reduce its appeals resolution time by 5
    days, from 695 to 690, in 2012. BVA's strategic target is 675
    days.
        The Undersigned Members agree with the President's
    assessment and support the request. However, we will monitor
    BVA's caseload to reassess staffing needs if necessary.

    H. Education

        The VBA's Education Service provides veterans,
    servicemembers, Reservists, and certain family members with
    educational resources. The implementation of the Post-9/11
    Veterans Educational Assistance Program has presented a
    challenge to VA in terms of making timely and accurate payments
    since its effective date on August 1, 2009. The enactment of
    the Post-9/11 Veterans Educational Assistance Improvements Act
    of 2010 early this year as Public Law 111-377 is expected to
    present an additional hurdle for delivery of benefits.
        The President's FY12 budget request calls for a reduction
    in FTE from the FY11 level--from 1,812 to 1,595. At the same
    time, there is a surge in the number of anticipated claims
    receipts over the actual FY10 levels, as well as changes
    mandated by the new public law, which need to be integrated
    into the program. The Undersigned Members are aware of the
    improvements in education claims processing times as a result
    of the implementation of the GI Bill Long Term Solution
    software. This software will also begin to accept education
    claims on line, which may further improve processing times. At
    this time, we have no justification for recommending any
    increase over the President's recommendation. However, the
    Undersigned Members intend to monitor the situation closely and
    will recommend additional resources if necessary.

    I. Vocational Rehabilitation and Employment

        The Vocational Rehabilitation and Employment (VR&E) Program
    provides training, education, and other services to enable
    veterans to obtain and maintain employment after sustaining
    service-connected disabilities. The President's FY12 budget
    request calls for an increase of $15.2 million over FY11 and
    FY10. The VR&E workload has continued to grow, with an expected
    10 percent caseload increase in FY12. The President's request
    would also allow for greater outreach by co-locating counselors
    on college campuses with the VetSuccess program. The
    Undersigned Members support this initiative. In addition, the
    President's FY12 budget request includes funding to extend--
    VR&E services to those servicemembers who are enrolled in the
    Integrated Disability Evaluation System (IDES) program.
    However, VA and DOD have not provided a detailed plan to
    support this initiative. Although we strongly support efforts
    to provide appropriate vocational rehabilitation services for
    veterans with service-connected disabilities, we currently have
    no basis for assessing the potential value of this initiative.
    We recommend the Budget Committee withhold funds that support
    this initiative until VA and DOD provide a detailed plan
    outlining the role of VR&E in IDES.

    J. Department of Labor, Veterans' Employment and Training Service

        The Veterans' Employment and Training Service (VETS) of the
    Department of Labor provides veterans and transitioning
    servicemembers with resources and services designed to maximize
    employment opportunities, protect employment and re-employment
    rights, and achieve positive employment outcomes.
        The President's FY12 budget proposes an increase of $2
    million in the amount designated for the Transition Assistance
    Program (TAP). The resources available for TAP should permit
    VETS to deliver more than 6,100 Employment Workshops to
    separating servicemembers throughout the world. In addition,
    the Administration's budget request includes an additional $3
    million for the Homeless Veterans' Reintegration Program
    (HVRP), which is focused on placing homeless veterans into
    jobs. This increase for HVRP will allow VETS to provide
    services to nearly 27,000 homeless veterans--including
    populations at increased risk such as incarcerated veterans re-
    entering the community, homeless women veterans, and veterans
    with dependent children who are homeless. This funding supports
    the inter-agency initiative to end homelessness among veterans.
        The Undersigned Members are concerned by the unacceptably
    high rate of unemployment among veterans from the current
    conflicts who are encountering difficulties making a transition
    to civilian life. This, in turn, causes concern about the
    effectiveness of existing employment and training programs for
    veterans, and the Committee will closely examine whether
    modifications are necessary. In the meantime, we would
    recommend that $24 million be reallocated within the
    President's budget request in order to permit the Committee to
    consider legislation to address the employment needs of
    veterans. Although the Committee has not yet agreed to a path
    forward, we expect that legislation will be introduced in the
    very near future to initiate the process. This change would
    increase the budget request for VETS to $285 million.

    K. Court of Appeals for Veterans Claims

        The CAVC, a legal body independent of VA, is vested with
    the authority to review decisions of the BVA regarding
    veterans' and family members' entitlement to benefits offered
    by VA. The Court is empowered to affirm, vacate, reverse, or
    remand decisions made by BVA, as well as compel actions of the
    Secretary, where such action is necessary to bring VA into
    accordance with the law. During FY10, the Court received 4,341
    case filings--a drop from the 4,725 filed in FY09.
        The Court's budget request of roughly $55.8 million for
    FY12 is approximately $34 million less than the FY11 requested
    level of $90 million. Of the $90 million, $62 million was a
    proposed increase attributable to the construction of a new
    courthouse. The construction estimate was, at the time of the
    Court's FY11 request, consistent with the General Services
    Administration's (GSA) estimate of the costs of land
    acquisition and construction for the courthouse. Since then,
    the GSA estimate has been modified to $117 million--not
    including the cost of acquiring the parcel of land that the
    Court would like to build upon.
        The Court's FY12 request includes $25 million toward the
    construction of a new courthouse. At this time, the Undersigned
    Members cannot support the requested funding for the courthouse
    given the health care and benefits needs of veterans across the
    nation.
        The Veterans Consortium Pro Bono Program requests
    approximately $2.7 million for FY12, an increase of $211
    thousand over the level requested for FY11. The Pro Bono
    Program recently brought on a new Executive Director and has
    taken steps to become a stand-alone entity--the increase in
    funding would cover the additional costs associated with this
    goal. The Undersigned Members look forward to hearing details
    of the Program's goal of becoming a stand-alone entity and how
    this would affect the function and funding-needs of the Program
    in future years.

    L. Office of Inspector General

        The work of the VA Office of the Inspector General (IG) has
    made significant contributions to management effectiveness
    throughout VA. The IG conducts vital oversight investigations
    and audits of various aspects of the Department's operations
    and budget.
        Unfortunately, the President's request of $109 million
    would virtually flat-line funding for the IG's office for the
    third straight year. At this level of resources, the IG's
    office would have to further triage reactive oversight work
    requested by the Secretary and the Congress. Funding the IG's
    office at the level of the President's request may also
    increase risks for veterans in the critical areas of quality of
    health care; quality and timeliness of claims processing for
    monetary benefits; and the transition back to civilian life for
    OEF/OIF/OND servicemembers.
        The Committee relies heavily on the IG's office for
    unbiased investigations and audits. The Undersigned Members
    recognize the importance of this office and recommend that $9
    million be provided over the President's request to allow the
    IG's office to continue to address problem areas as they arise,
    and allow for new oversight initiatives--including
    homelessness, mental health, and Information Technology.

                        III. Mandatory Account Spending

        The Undersigned Members support the President's FY12 budget
    request that would provide $70.3 billion for mandatory
    benefits. In addition, the Undersigned Members recommend that
    sufficient offsets be identified to end the COLA round-down.

    A. Cost-of-Living Adjustment

        Under current law, the COLA applied to veterans' disability
    compensation and survivors' Dependency and Indemnity
    Compensation is rounded down to the next lowest whole dollar.
    VA compensation is sometimes the sole source of income for a
    veteran and his or her family. Over time, the effect of a COLA
    round-down can be substantial. We owe it to our nation's
    veterans to provide them with appropriate compensation, the
    value of which should not be reduced by inflation. Although the
    legal authority for an automatic COLA round-down is set to
    expire in 2013, we recommend that sufficient offsets be
    identified to end the COLA round-down ahead of schedule.
        The Undersigned Members recommend that the Budget
    Resolution include sufficient funding to not impose a COLA
    round-down.

                                  IV. Closing

        We thank the Budget Committee for its attention to the
    Undersigned Members' views and estimates of the
    Administration's Fiscal Year 2012 budget. We look forward to
    working with the Budget Committee to craft a budget for
    veterans' programs that truly meets the needs of those who have
    served our country.
                Sincerely,

    Patty Murray,
        Chairman.
    John D. Rockefeller IV.
    Daniel K. Akaka.
    Bernard Sanders.
    Sherrod Brown.
    Jim Webb.
    Jon Tester.
    Mark Begich.
    Richard Burr,
        Ranking Member.
    Scott P. Brown.
    John Boozman.

    B. Second Session (2012)

        Pursuant to the requirements of section 301(d) of the
    Congressional Budget Act of 1974, Chairman Murray submitted a
    letter to the Budget Committee reflecting the Committee's Views
    and Estimates on the Administration's proposed fiscal year 2013
    budget for veterans' programs. The letter submitted is printed
    below in its entirety:

                         COMMITTEE ON VETERANS' AFFAIRS

    PATTY MURRAY, Washington, Chairman
    RICHARD BURR, North Carolina, Ranking Member ROCKEFELLER IV, West
    JOHNNY ISAKSON, Georgia              Virginia
    ROGER F. WICKER, Mississippi         DANIEL K. AKAKA, Hawaii
    MIKE JOHANNS, Nebraska               BERNARD SANDERS, (I) Vermont
    SCOTT P. BROWN, Massachusetts        SHERROD BROWN, Ohio
    JERRY MORAN, Kansas                  JIM WEBB, Virginia
    JOHN BOOZMAN, Arkansas               JON TESTER, Montana
                                         MARK BEGICH, Alaska
        Kim Lipsky, Staff Director
      Lupe Wissel, Republican Staff
                 Director