[Senate Report 113-174]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 400
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-174

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



 
   MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED AGENCIES 
                        APPROPRIATION BILL, 2015
                                _______
                                

                  May 22, 2014.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                        [To accompany H.R. 4486]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 4486) making appropriations for military 
construction, the Department of Veterans Affairs, and related 
agencies for the fiscal year ending September 30, 2015, and for 
other purposes, reports the same to the Senate with an 
amendment, and recommends that the bill as amended do pass.



Amounts in new budget authority

Total of bill as reported to the Senate.................$168,438,803,000
Amount of 2014 appropriations\1\........................ 159,160,796,000
Amount of 2015 budget estimate.......................... 168,437,946,000
Amount of House allowance............................... 168,039,751,000
Bill as recommended to Senate compared to--
    Amount of 2014 appropriations.......................  +9,278,007,000
    Amount of 2015 budget estimate......................        +857,000
    House allowance.....................................    +399,052,000



                                CONTENTS

                              ----------                              
                                                                   Page
Background:
    Purpose of the Bill..........................................     4
    Committee Recommendation.....................................     4
    Overview and Summary of Bill.................................     4
Title I:
    Military Construction:
        Items of Special Interest:
            Hearings.............................................     6
            Summary of Committee Recommendations.................     6
        Military Construction, Army..............................    14
        Military Construction, Navy and Marine Corps.............    14
        Military Construction, Air Force.........................    15
        Military Construction, Defense-Wide......................    16
        Military Construction, Reserve Components................    18
        North Atlantic Treaty Organization.......................    18
        Family Housing Overview..................................    19
        Family Housing Construction, Army........................    19
        Family Housing Operation and Maintenance, Army...........    21
        Family Housing Construction, Navy and Marine Corps.......    21
        Family Housing Operation and Maintenance, Navy and Marine 
          Corps..................................................    22
        Family Housing Construction, Air Force...................    22
        Family Housing Operation and Maintenance, Air Force......    22
        Family Housing Operation and Maintenance, Defense-Wide...    23
        Family Housing Improvement Fund..........................    23
        Chemical Demilitarization Construction, Defense-Wide.....    24
        Department of Defense Base Closure Account...............    24
        Administrative Provisions................................    25
Title II:
    Department of Veterans Affairs:
        Items of Special Interest:
            Hearings.............................................    28
            Summary of Committee Recommendations.................    28
            Department Overview..................................    28
        Veterans Benefits Administration.........................    36
            Compensation and Pensions............................    36
            Readjustment Benefits................................    38
            Veterans Insurance and Indemnities...................    38
            Veterans Housing Benefit Program Fund................    39
            Vocational Rehabilitation Loans Program Account......    39
            Native American Veteran Housing Loan Program Account.    40
        Veterans Health Administration...........................    40
            Medical Services.....................................    45
            Medical Support and Compliance.......................    56
            Medical Facilities...................................    57
            Medical and Prosthetic Research......................    59
            Medical Care Cost Recovery Collections...............    60
        National Cemetery Administration.........................    61
        Departmental Administration..............................    62
            General Administration...............................    63
            Board of Veterans Appeals............................    64
            General Operating Expenses, Veterans Benefits 
              Administration.....................................    65
            Information Technology Systems.......................    68
            Office of Inspector General..........................    71
            Construction, Major Projects.........................    71
            Construction, Minor Projects.........................    73
            Grants for Construction of State Extended Care 
              Facilities.........................................    74
            Grants for Construction of Veterans Cemeteries.......    75
        Administrative Provisions................................    76
Title III:
    Related Agencies:
        American Battle Monuments Commission:
            Salaries and Expenses................................    79
            Foreign Currency Fluctuations........................    79
        United States Court of Appeals for Veterans Claims: 
          Salaries and Expenses..................................    80
        Department of Defense--Civil: Cemeterial Expenses, Army:
            Salaries and Expenses................................    81
        Armed Forces Retirement Home: Trust Fund.................    82
Title IV: General Provisions.....................................    83
Compliance With Paragraph 7, Rule XVI, of the Standing Rules of 
  the 
  Senate.........................................................    84
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    85
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................    86
Budgetary Impact of Bill.........................................    87
Military Construction Project Listing by Location................    88
Comparative Statement of Budget Authority........................   109


                               BACKGROUND

                          Purpose of the Bill

    The Military Construction and Veterans Affairs, and Related 
Agencies appropriations bill provides necessary funding for the 
planning, design, construction, alteration, and improvement of 
military facilities worldwide, for both active and reserve 
forces. It also finances the cost of military family housing 
and the U.S. share of the NATO Security Investment Program. In 
addition, the bill provides funding, including environmental 
remediation, for base closures and realignments authorized by 
law. The bill provides resources to the Department of Veterans 
Affairs for veterans benefits and healthcare and funding for 
U.S. cemeteries and battlefield monuments both in the United 
States and abroad, including Arlington National Cemetery and 
the American Battle Monuments Commission. Additionally, the 
bill funds the U.S. Court of Appeals for Veterans Claims, and 
the Armed Forces Retirement Homes.

                        Committee Recommendation

    The Committee recommends new budget authority totaling 
$165,410,828,000 for fiscal year 2015 military construction, 
family housing, base closure, veterans healthcare and benefits, 
including fiscal year 2016 advance appropriations for veterans 
medical care, and related agencies. This includes 
$93,512,828,000 in mandatory funding and $71,898,000,000 in 
discretionary funding. The table at the end of the report 
displays the Committee recommendation in comparison with the 
current fiscal year, and the President's fiscal year 2015 
request.

                   APPROPRIATIONS FOR FISCAL YEAR 2015
------------------------------------------------------------------------
                                                           Senate
                                 Budget request        recommendation
------------------------------------------------------------------------
New budget authority........      $168,437,946,000      $168,438,803,000
Previous advances provided          55,634,227,000        55,634,227,000
 for fiscal year 2015.......
Less advances provided for         -58,662,202,000       -58,662,202,000
 fiscal year 2016...........
                             -------------------------------------------
      Total appropriations         165,409,971,000       165,410,828,000
       for fiscal year 2015.
------------------------------------------------------------------------

                      Overview and Summary of Bill

    The Military Construction and Veterans Affairs, and Related 
Agencies appropriations bill funds an array of programs that 
are vital to America's military personnel and their families, 
and to the Nations' veterans. For U.S. military forces and 
their families worldwide, the bill funds critical 
infrastructure, ranging from mission essential operational and 
training facilities to key quality-of-life facilities, 
including barracks, family housing, child care centers, schools 
and hospitals. For America's 22.3 million veterans, the bill 
provides the necessary funding for veterans benefits and 
healthcare, from prescription drugs and clinical services to 
the construction of hospitals and other medical facilities 
throughout the Nation. The bill also funds veterans cemeteries 
in the United States and provides funding for four independent 
agencies--the American Battle Monuments Commission, the U.S. 
Court of Appeals for Veterans Claims, the Armed Forces 
Retirement Homes, and Arlington National Cemetery.

                                TITLE I

                         MILITARY CONSTRUCTION

                       Items of Special Interest

                                HEARINGS

    The Subcommittee on Military Construction and Veterans 
Affairs, and Related Agencies held two hearings related to the 
fiscal year 2015 military construction budget request. 
Witnesses included representatives of the Office of Secretary 
of Defense and of the active and reserve components of the 
Army, Navy, and Air Force.

                  SUMMARY OF COMMITTEE RECOMMENDATIONS

    The fiscal year 2015 budget request for military 
construction and family housing totals $6,557,447,000. The 
Committee recommends $6,559,000,000, which is equal to the 
Congressional Budget Office's reestimate of the President's 
budget request for military construction and family housing.

                        REPROGRAMMING GUIDELINES

    The following reprogramming guidelines apply for all 
military construction and family housing projects. A project or 
account (including the sub-elements of an account) which has 
been specifically reduced by the Congress in acting on the 
budget request is considered to be a congressional interest 
item and as such, prior approval is required. Accordingly, no 
reprogrammings to an item specifically reduced below the 
threshold by the Congress are permitted.
    The reprogramming criteria that apply to military 
construction projects (25 percent of the funded amount or 
$2,000,000, whichever is less) continue to apply to new housing 
construction projects and to improvements over $2,000,000. To 
provide the services the flexibility to proceed with 
construction contracts without disruption or delay, the costs 
associated with environmental hazard remediation such as 
asbestos removal, radon abatement, lead-based paint removal or 
abatement, and any other legislated environmental hazard 
remediation may be excluded, provided that such remediation 
requirements could not be reasonably anticipated at the time of 
the budget submission. This exclusion applies to projects 
authorized in this budget year, as well as projects authorized 
in prior years for which construction has not been completed.
    Furthermore, in instances where prior approval to a 
reprogramming request for a project or account has been 
received from the Committee, the adjusted amount approved 
becomes the new base for any future increase or decrease via 
below-threshold reprogrammings (provided that the project or 
account is not a congressional interest item as defined above).
    In addition to these guidelines, the services are directed 
to adhere to the guidance for military construction 
reprogrammings and notifications, including the pertinent 
statutory authorities contained in Department of Defense [DOD] 
Financial Management Regulation 7000.14-R and relevant updates 
and policy memoranda.

                       REAL PROPERTY MAINTENANCE

    The Committee recommends a continuation of the following 
general rules for repairing a facility under ``Operation and 
Maintenance'' account funding:
  --Components of the facility may be repaired by replacement, 
        and such replacement may be up to current standards or 
        code.
  --Interior arrangements and restorations may be included as 
        repair, but additions, new facilities, and functional 
        conversions must be performed as military construction 
        projects.
  --Such projects may be done concurrent with repair projects, 
        as long as the final conjunctively funded project is a 
        complete and usable facility.
  --The appropriate Service Secretary shall submit a 21-day 
        notification prior to carrying out any repair project 
        with an estimated cost in excess of $7,500,000.
    The Department is directed to continue to report on the 
real property maintenance backlog at all installations for 
which there is a requested construction project in future 
budget requests. This information is to be provided on the form 
1390. In addition, for all troop housing requests, the form 
1391 is to continue to show all real property maintenance 
conducted in the past 2 years and all future requirements for 
unaccompanied housing at that installation.

                          INCREMENTAL FUNDING

    In general, the Committee supports full funding for 
military construction projects. However, it continues to be the 
practice of the Committee to provide incremental funding for 
certain large projects, despite administration policy to the 
contrary, to enable the services to more efficiently allocate 
military construction dollars among projects that can be 
executed in the year of appropriation. For fiscal year 2015, 
the Committee recommends incremental funding for the following 
project: Medical Center Replacement, increment 4, Rhine 
Ordinance Barracks, Germany.

                             ENERGY POLICY

    The Department of Defense is the largest consumer of energy 
in the Federal Government, accounting for nearly 80 percent of 
the government's total energy consumption. DOD spends nearly 
$4,100,000,000 annually on facility energy alone, nearly a 
quarter of its total energy costs. However, installation energy 
consumption accounts for nearly 40 percent of the Department's 
greenhouse gas emissions. The Committee commends the Department 
for its aggressive efforts to improve the energy efficiency of 
its buildings and installations, reduce consumption, mitigate 
its carbon footprint, invest in renewable energy projects, and 
enhance energy security on its installations.
    The Committee also supports the efforts of the Department 
to incorporate green building technologies into both new 
construction and renovations of buildings. As noted in the 
past, the Committee believes that the use of these technologies 
should be a fundamental consideration in the design or retrofit 
of all military construction projects.
    European Infrastructure Consolidation [EIC] Study.--The 
Committee is aware that the Department of Defense is conducting 
an EIC study in an effort to reduce excess DOD infrastructure 
in Europe. However, the study has not yet been finalized, nor 
have the recommendations been presented to Congress or to the 
host nations. Moreover, the timeline for completing that 
process remains uncertain.
    As noted last year, the Committee continues to question the 
rationale for funding certain projects in Europe before DOD has 
determined the overall outcome of this study.
    In particular, the Committee is interested in the savings-
to-investment ratio of the EIC. The fiscal year 2015 budget 
request includes $92,223,000 for the first of a three-phase 
Joint Intelligence Analysis Center at Royal Air Force Base 
Croughton in the United Kingdom. The project would consolidate 
U.S. intelligence gathering operations for the European [EUCOM] 
and Africa [AFRICOM] Commands and establish a NATO Intelligence 
Fusion Center. The overall cost of this three-phase project is 
estimated to be in excess of $300,000,000.
    The Committee is concerned that reliance on new 
construction to consolidate facilities as a means to reduce 
excess infrastructure can come with a heavy price tag. This is 
particularly troubling during a time in which the Defense 
Department is strapped for cash, and the military construction 
budget request for fiscal year 2015 plunged 40 percent from the 
fiscal year 2014 request.
    While the Committee recognizes the importance of having a 
modernized intelligence center in Europe, it is concerned about 
the full cost and scope of this project, the rationale for an 
AFRICOM component when the AFRICOM headquarters in Stuttgart, 
Germany, is still being analyzed, and the associated costs of 
significantly expanding the U.S. military and family population 
at RAF Croughton, which is likely to require additional family 
housing, schools, health facilities, commissaries, and exchange 
facilities.
    For this reason, the Committee has fenced funding for the 
Croughton project until the European Infrastructure 
Consolidation Study is transmitted to Congress and the 
Secretary of Defense certifies in writing to the Committees on 
Appropriations of both Houses of Congress the requirement for 
this project. This restriction is consistent with the 
restrictions on funding included in the fiscal year 2014 
Military Construction and Veterans Affairs, and Related 
Agencies Appropriations bill for projects in Germany and 
England associated with the EIC.
    The Committee further believes that the Department's 
request for another round of base closures within the United 
States is premature until DOD completes a thorough review of 
all overseas bases and determines that all facilities that are 
operationally prudent to close are done so before assessing 
which bases in the United States should be closed or realigned. 
The Committee urges the Secretary of Defense to ensure that the 
European Infrastructure Consolidation Study and all overseas 
basing studies are conducted without predetermined outcomes and 
will represent a thorough evaluation of the needs of the 
Department of Defense.
    The Committee also directs the Department to provide to the 
Committees on Appropriations of both Houses of Congress a 
savings-to-investment report on the EIC proposal, detailing the 
metrics and assumptions used to determine the savings 
associated with the EIC. This report should accompany the 
submission of the final EIC recommendations to Congress.
    Pacific Resiliency Study.--The Committee remains concerned 
that the Pacific Command [PACOM] has not completed a resiliency 
plan for the laydown of forces in the Pacific Area of 
Responsibility [AOR]. It is imperative that as DOD rebalances 
forces in the Pacific region, PACOM develop a prioritized 
resiliency plan to protect, disperse and/or repair U.S. 
military assets within the AOR. The Committee urges PACOM to 
include robust, permanent ballistic missile defense as part of 
this plan, particularly on Guam. The temporary deployment of a 
Terminal High Altitude Area Defense battery to Guam is a 
positive first step, but given the planned U.S. military build-
up in Guam, a permanent missile defense capability is needed. 
The Committee urges DOD to expedite its efforts to finalize the 
resiliency plan for the beddown of forces in the Pacific AOR 
and directs DOD to report its recommendations to the Committees 
on Appropriations of both houses of Congress upon completion, 
or within 90 days of enactment of this act, whichever occurs 
first.
    Department of Defense Studies.--The Committee notes that 
the Department of Defense frequently fails to complete and 
deliver to Congress significant studies in a timely manner. The 
European Consolidation Study is now overdue, and the Pacific 
Resiliency Study has been delayed nearly a year. As a result, 
the Committee is handicapped in its ability to adequately 
evaluate the Department's request for additional projects due 
to the realignment of forces, consolidation of facilities, or 
major force structure changes. The Committee is supportive of 
the Department's efforts to re-evaluate its long range overseas 
mission and basing strategy, but notes that premature requests 
to fund projects that could be impacted by the results of the 
re-evaluation before the studies have been completed and 
provided to Congress for review are not in the best interests 
of either the Department or the American taxpayer.
    Afghanistan Military Construction.--With the ongoing 
drawdown of U.S. forces from Afghanistan, the Committee is 
concerned about the status of unfinished military construction 
projects in the country and plans for the divestment of these 
and other military construction facilities that will no longer 
be required to support U.S. military operations.
    The Committee recognizes that military construction 
decisions during contingency operations are difficult for 
several reasons: timeframes are often unclear or subject to 
unanticipated change; troop and equipment levels fluctuate; 
enemy activity may compel changes in force protection measures; 
and the relative permanence of structures may signal misleading 
intent on the part of U.S. forces. Nonetheless, in order to 
provide security and support for our troops and associated 
personnel, military leaders must make decisions about military 
construction during contingencies, all of which are funded by 
American taxpayers. However, the Committee is aware of 
instances in which military construction projects in 
Afghanistan continued to be funded and executed even though 
local commanders had determined there was no longer a need for 
those facilities, potentially wasting millions of dollars.
    The Government Accountability Office, the Congressional 
Research Service, and several non-governmental organizations 
have issued reports on the cost of the wars in Iraq and 
Afghanistan and have highlighted, among other things, the costs 
associated with building and maintaining structures in a 
contingency environment. While these reports have provided 
great insights into the broader DOD processes and related costs 
for supporting contingency operations, they have not focused 
specifically on the means by which the Department makes 
decisions about construction in a contingency environment or 
the challenges faced when making those decisions. In light of 
the recent end of the war in Iraq and the continued drawdown of 
forces in Afghanistan, the Committee recommends a comprehensive 
review of this issue with the intent that any lessons learned 
could be applied in future contingencies. Therefore, the 
committee directs the Comptroller General to conduct a review 
of the following:
  --The processes Department of Defense officials used to make 
        decisions about military construction in Iraq and 
        Afghanistan, to include procedures for determining 
        whether a structure should be permanent, enduring, or 
        temporary;
  --The costs associated with decisions made about military 
        construction in Iraq and Afghanistan, to include the 
        source or sources of funding;
  --Any lessons the Department has learned about military 
        construction during contingency operations based on the 
        experiences of Iraq and Afghanistan; and
  --Any other issues related to the military construction in a 
        contingency environment that may come to light during 
        the course of the review.
    The Committee directs that the Comptroller General provide 
a briefing to the Committee on this work no later than March 1, 
2015, with a report to follow.
    The Committee also directs the Department of Defense to 
provide to the congressional defense committees a quarterly 
report on the status of all active military construction 
projects in Afghanistan, including the fiscal year and 
appropriations act in which the funding was provided, amount of 
appropriation, scheduled completion date, contract award date, 
contract award amount, and percent complete. The report shall 
also include the disposition of all major military construction 
projects at installations that the Department has determined 
will not be enduring U.S. locations following the end of major 
combat operations in Afghanistan. This assessment should 
include the cost, by project and quarter, of maintaining or 
demolishing any facilities that will not be returned to the 
host nation, as well as the cost of repairing or renovating any 
facilities that will be turned over to the Afghan government. 
The initial report should be provided at the end of the first 
quarter following enactment of this act, and each quarter 
thereafter until the Department has determined the disposition 
of all major military construction projects at non-enduring 
locations in Afghanistan.
    Payment-in-Kind Funds.--The Committee remains concerned 
over the use of payment-in-kind [PIK] funds derived from 
residual value compensation for overseas military construction. 
An April 15, 2013, Senate Armed Services Committee report 
(Committee Report 113-12) found that Installation Management 
Command-Europe's [IMCOM-E] use of PIK funds was in some cases 
inconsistent with the intent of Congress. Specific concerns 
identified in the report include the opaque residual value 
assessments of overseas U.S. facilities, the use of ``advance 
PIK'' for military construction, the selection process for PIK 
projects, and lapses in required Congressional notifications 
before beginning residual value negotiations for in-kind 
payments used for military construction projects.
    In response to these findings, the Senate Appropriations 
Committee included language in the report accompanying the 
Senate fiscal year 2014 Military Construction and Veterans 
Affairs, and Related Agencies Appropriations bill directing the 
Secretary of Defense to establish procedures to enhance 
oversight of the PIK program. The language also directed the 
Secretary to provide a report within 90 days of enactment of 
the act on the steps the Department is taking to address the 
concerns raised by both Committees, and to provide quarterly 
reports on the status of approved and pending PIK projects.
    The Committee understands that in response to the 
directive, the Department is undertaking a comprehensive review 
of the PIK process to develop a revised PIK project submission 
and approval process. According to the Department, the new 
procedures will result in projects being prioritized by a 
Combatant Command and submitted for inclusion in the 
President's budget request instead of being funded outside of 
normal budget channels. The Committee is aware that this 
redesign is still in the early stages, and urges the Department 
to move forward as quickly as possible to finalize and 
implement the new procedures. The Committee further directs the 
Secretary to provide a report to the congressional defense 
committees within 90 days of enactment of this act on the 
status of the PIK program reorganization.
    Missile Defense.--The Committee continues to support 
implementation of the European Phased Adaptive Approach [EPAA] 
to protect our deployed forces and European NATO allies from 
ballistic missile attacks. Last October the Missile Defense 
Agency broke ground on the first Aegis Ashore missile defense 
site in Deveselu, Romania. Construction continues at the site, 
and the project is under budget and on schedule with a planned 
completion date of December 2014. Activation of this site will 
begin to provide the United States and our European allies with 
a defensive capability against the growing threat of Iranian 
ballistic missiles. The Committee is encouraged by the 
significant progress made to date and urges the Department to 
aggressively pursue opportunities to expedite construction and 
deployment of the second Aegis Ashore system in Redzikowo, 
Poland. The Committee expects the fiscal year 2016 budget 
request to include full funding for the expedited construction 
of this second site.
    MDA Long Range Discrimination Radar.--The Committee fully 
funds the President's request of $29,000,000 for planning and 
design for the Missile Defense Agency [MDA] Long Range 
Discrimination Radar [LRDR] in the Pacific Region. The 
Committee understands that the Administration intends to seek 
funds for the construction of the LRDR in its fiscal year 2016 
military construction program, with the objective of delivering 
the LRDR by the end of 2019 to meet 2020 MDA Enhanced Homeland 
Defense Capability goals. The LRDR will serve as a midcourse 
sensor to mitigate threat evolution and improve discriminating 
capability in the Ballistic Missile Defense System architecture 
focused on threats in the Pacific. The Committee encourages the 
Department of Defense to remain on course to deliver the system 
in line with the program's schedule.
    While a site determination has not yet been made, MDA 
indicates that the LRDR will likely be located in Alaska, where 
assuring one-hundred percent reliable, secure, and cost 
effective power generation is a key concern. The Committee is 
concerned that sufficient and reliable power generation be 
available to support both the LRDR and the candidate 
installations' current and expected future mission needs. 
Accordingly, when determining different energy supply options 
and upgrades needed to support the LRDR, MDA should coordinate 
with the services to assess current power generation 
capabilities at the candidate installations, and to determine 
the cost of any expansion or enhancements required to ensure 
that future power needs are taken into consideration.
    Defense Access Roads.--Nationwide, there are immediate and 
significant transportation needs in many States and communities 
that are experiencing substantial population growth as a result 
of defense activities. The Department of Defense's Office of 
Economic Adjustment estimates that there are a considerable 
number of mission critical transportation projects in need of 
funding. Providing Department of Defense funding in conjunction 
with State transportation improvement programs to address 
defense-related transportation projects, including those 
required as a result of Base Realignment and Closure 
development, would enhance the ability of work on these 
projects to begin promptly. By including mission growth 
transportation projects as eligible infrastructure projects for 
Federal defense funding, important improvements can be made 
while creating jobs and strengthening national security. The 
Committee supports adjustment in Defense Access Road 
eligibility thresholds and requirements for installations of 
strategic importance, and a separate Defense Access Road 
funding source to offset the impacts of base expansion and 
resultant traffic congestion.
    The Committee further urges the Secretary of Defense to 
prioritize the construction of Defense Access Roads to relieve 
traffic congestion associated with mission growth and base 
realignment activities.
    U.S. Special Operations Command [USSOCOM].--The Committee 
commends the Department of Defense for following through on 
previous Committee direction to prioritize SOCOM's long-range 
training plan for bases in the continental United States 
[CONUS]. Accordingly, the Committee fully funds the President's 
fiscal year 2015 request for CONUS Special Operations Forces 
projects, and urges the Department of Defense to execute the 
fiscal year 2015 SOCOM projects as expeditiously as possible.
    Redevelopment Potential for Military Properties and 
Facilities.--The Committee directs the Department of Defense to 
report to Congress within 120 days after enactment of this act 
on steps DOD could take to assess the local redevelopment 
potential for military properties and facilities. Prior to 
approving new construction or upgrades, the Department should 
consider local interest, property value, and related cost 
savings that could result from the transfer and disposal of 
facilities or properties.
    Military Construction Funding Initiatives.--The bill 
includes funding for military construction initiatives to 
address important quality-of-life and unfunded priorities of 
the services. The fiscal year 2015 military construction budget 
request is 40 percent below last year's request. The Department 
of Defense and all of the services have acknowledged that they 
are taking risk in their military construction programs to 
provide additional funding for readiness. The Committee fully 
understands the importance of providing adequate funding for 
readiness, but believes that infrastructure plays a major role 
in the morale and readiness of military forces.
    The Committee notes, as it has in the past, that military 
construction is the foundation of military readiness, but it is 
too often the go-to bill payer in constrained budget 
environments, resulting in the sometimes indefinite deferral of 
many meritorious construction projects. As the Department and 
each of the services noted in testimony before the Committee, 
the fiscal year 2015 military construction budget is targeted 
almost exclusively at new mission and life, safety, and health 
investments. A major concern of the Committee is that important 
quality-of-life projects, such as troop housing, child care 
centers, and troop and family physical fitness centers, tend to 
be the first casualties of budget constraints. The scandals 
surrounding revelations of deplorable troop housing conditions 
at Fort Bragg, North Carolina, and Walter Reed Army Medical 
Center in Washington, DC, that emerged a few years ago 
underscore the consequences of neglecting quality-of-life 
military construction projects.
    For this reason, the Committee includes an additional 
$315,000,000 for quality-of-life projects for the Navy, Air 
Force and Air Force Reserve. These projects are among those 
included in the President's fiscal year 2015 Opportunity, 
Growth and Security Initiative budget request. An additional 
$60,000,000 is provided for Army quality-of-life projects, and 
$90,000,000 is provided for unfunded requirements of the Army 
National Guard and Reserve. This funding is reserved for 
projects that were included in the Army's Unfunded Priority 
Requirements list provided to Congress on April 1, 2014.
    The Committee notes that the funding for these initiatives 
comes from prior year bid savings, incremental funding, 
cancelled projects and prior year projects that are either 
unexecutable or are no longer required. No funding was diverted 
from the military construction readiness or life, safety, and 
health projects in the fiscal year 2015 budget request.
    Rescissions.--The Committee recommends administrative 
provisions which rescind prior year unobligated funds due 
primarily to project bid savings and the slow execution of 
projects. In addition, these provisions rescind fiscal year 
2011 funds appropriated in the ``Military Construction, Navy'' 
and ``Military Construction, Air Force'' accounts due to the 
lack of host nation approval to proceed with construction 
projects at Isa Air Base in Bahrain. Further, the 
recommendation rescinds fiscal year 2012 and 2013 funds 
appropriated in the ``Military Construction, Army'' account due 
to Gray Eagle Unmanned Aerial Vehicle program changes and scope 
adjustments. The Committee also rescinds fiscal year 2014 funds 
appropriated in the ``Military Construction, Air Force'' 
account to develop an aircraft divert and training exercise 
capability within the Commonwealth of the Northern Mariana 
Islands [CNMI]. These funds are rescinded due to the lack of a 
site plan and poor synchronization with the U.S. Marine Corps 
to potentially realize efficiencies in the activities and 
infrastructure requirements in the CNMI. Finally, the Committee 
rescinds funds previously appropriated in the ``Military 
Construction, Defense-wide'' account in response to overseas 
construction project savings.

                      Military Construction, Army

Appropriations, 2014....................................  $1,104,875,000
Budget estimate, 2015...................................     539,427,000
House allowance.........................................     526,427,000
Committee recommendation................................     539,427,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Army 
provides for acquisition, construction, installation, and 
equipment of temporary or permanent public works, military 
installations, facilities, and real property for the Army. This 
appropriation also provides for facilities required as well as 
funds for infrastructure projects and programs required to 
support bases and installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $539,427,000 for the Army for 
fiscal year 2015. This amount is $565,448,000 below the fiscal 
year 2014 enacted level, and equal to the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.

              Military Construction, Navy and Marine Corps

Appropriations, 2014....................................  $1,629,690,000
Budget estimate, 2015...................................   1,018,772,000
House allowance.........................................     998,772,000
Committee recommendation................................   1,018,772,000

                          PROGRAM DESCRIPTION

    The Military Construction appropriation for the Navy and 
Marine Corps provides for acquisition, construction, 
installation, and equipment of temporary or permanent public 
works, naval installations, facilities, and real property for 
the Navy and the Marine Corps. This appropriation also provides 
for facilities required as well as funds for infrastructure 
projects and programs required to support bases and 
installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,018,772,000 for Navy and Marine 
Corps military construction for fiscal year 2015. This amount 
is $610,918,000 below the fiscal year 2014 enacted level, and 
equal to the budget request. Further detail of the Committee's 
recommendation is provided in the State table at the end of 
this report.

                    Military Construction, Air Force

Appropriations, 2014....................................  $1,052,796,000
Budget estimate, 2015...................................     811,774,000
House allowance.........................................     719,551,000
Committee recommendation................................     811,774,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Air Force 
provides for acquisition, construction, installation, and 
equipment of temporary or permanent public works, military 
installations, facilities, and real property for the Air Force. 
This appropriation also provides for facilities required as 
well as funds for infrastructure projects and programs required 
to support bases and installations around the world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $811,774,000 for the Air Force in 
fiscal year 2015. This amount is $241,022,000 below the fiscal 
year 2014 enacted level, and equal to the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.
    Air Force Infrastructure Consolidation.--The Committee 
recognizes the Air Force's efforts to reduce overhead 
throughout its budget. As the Air Force continues to scrutinize 
its infrastructure for savings, the Committee recommends that 
the Air Force pay special attention to consolidating 
infrastructure and commands on its installations, including, 
but not limited to, communications, civil engineering, and 
administrative facilities.
    Aerospace Control Alert Facilities.--Aerospace Control 
Alert facilities contribute to the safety and security of our 
Nation. The Air Force squadrons that sit alert at these 
facilities spend 24 hours a day, 7 days a week, on standby in 
order to provide that protection to the Nation's critical 
infrastructure, often in substandard temporary facilities. The 
Committee encourages the Air Force to accelerate the planned 
permanent construction of all alert facilities that are 
currently composed of substandard mobile and modular building 
units.

                  Military Construction, Defense-Wide


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2014....................................  $3,445,423,000
Budget estimate, 2015...................................   2,061,890,000
House allowance.........................................   2,021,690,000
Committee recommendation................................   1,961,890,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for the Department 
of Defense provides for acquisition, construction, 
installation, and equipment of temporary or permanent public 
works, military installations, facilities, and real property 
Defense-Wide. This appropriation also provides for facilities 
required as well as funds for infrastructure projects and 
programs required to support bases and installations around the 
world.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,961,890,000 for projects 
considered within the ``Defense-Wide'' account in fiscal year 
2015. This amount is $1,483,533,000 below the fiscal year 2014 
enacted level and $100,000,000 below the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.

                 ENERGY CONSERVATION INVESTMENT PROGRAM

    The Committee recommends the requested level of 
$150,000,000 for the Energy Conservation Investment Program 
[ECIP], and $10,000,000 for ECIP Planning and Design [P&D]. The 
Committee commends DOD for including a separate line item for 
ECIP planning and design in its fiscal year 2015 budget 
justification materials, and fully funds the request to help 
ensure that adequate funds are available for future ECIP 
project design.
    In an era of declining defense budgets, and in an 
environment in which energy efficiency, security, and renewable 
energy investments are mission-critical requirements, ECIP is 
an important component of the Department of Defense's [DOD] 
energy strategy, and its only dedicated stream of funding for 
energy projects. DOD is the largest consumer of energy in the 
Federal Government, accounting for nearly 80 percent of the 
government's total energy consumption. Currently, the 
Department spends nearly $4,000,000,000 per year on facility 
energy, or almost a quarter of its total energy costs. The 
Committee encourages the transition of ECIP from funding small, 
rapid pay-back projects, such as isolated heating, cooling and 
lighting efficiencies, to playing a central role in leveraging 
larger energy security and renewable energy projects. As such, 
the Committee urges DOD and the services to compete projects 
that will produce significant ``game-changing'' improvements to 
reduce carbon emissions, energy consumption, and energy costs, 
as well as projects to enhance installation energy security.
    Projects such as energy security microgrids, net-zero 
facilities, and renewable energy projects have the potential to 
offer long term pay-back that far exceeds initial investment, 
while concurrently driving innovation. In an environment of 
heightened security risks and growing concern over carbon 
emissions, it is more important than ever for DOD to maintain 
robust investment in ECIP to reduce installation energy 
expenses, limit carbon emissions, and enhance installation 
energy security.
    While the Committee strongly supports ECIP, it also 
believes that an updated evaluation of the program's impact on 
DOD energy consumption and efforts to reduce energy costs is 
warranted. Therefore, the Committee directs the Comptroller 
General of the Government Accountability Office [GAO] to 
examine DOD's use of ECIP funding for energy-related projects 
and the extent to which ECIP investments reduce the 
Department's use of energy and energy costs. DOD selects ECIP 
projects in part based on their projected Savings-to-Investment 
Ratio, an estimate of a project's return on investment within a 
10-year payback period. DOD estimates that ECIP investment has 
resulted in a cost savings of approximately $2,000,000,000 
since 2001. As DOD continues to make ECIP investments in 
projects to reduce energy consumption, save money, and increase 
the use of renewable energy, the Committee directs the 
Comptroller General to verify the energy savings associated 
with ECIP by addressing the following issues: (1) to what 
extent have ECIP funded projects reduced the Department's use 
of energy or its energy costs; (2) how does DOD's estimated 
return on investment and energy savings for ECIP projects 
compare with actual savings; (3) to what extent has DOD 
realized the projected return on investment, energy savings, or 
cost savings of ECIP projects during the 10-year payback 
period, and (4) to what extent do renewable energy projects 
funded by ECIP conform to the 10-year payback period. The 
Committee directs GAO to provide this assessment, using a 
representative sample of ECIP funded projects, no later than 
180 days after enactment of this act.
    Medical Military Construction Program.--The Committee 
provides funding for five projects to upgrade or modernize 
medical treatment facilities within the Department of Defense. 
Investments in medical infrastructure projects are crucial to 
ensuring that quality healthcare is delivered to service 
members and their families in the future. Therefore, the 
Committee is concerned that the Future Years Defense Program 
[FYDP] accompanying the fiscal year 2015 budget submission 
proposes indefinite deferral of a number of planned medical 
military construction projects. For example, the Fort Leonard 
Wood, Missouri, hospital replacement project, which was 
programmed for fiscal year 2016, is deferred in the new FYDP to 
fiscal year 2020 or later. The Committee notes that the Surgeon 
General of the United States Army testified before the Senate 
Appropriations Subcommittee on Defense on April 9, 2014, that 
this hospital replacement project is the Army's top priority 
for medical military construction projects. The existing 
hospital at Fort Leonard Wood last underwent a major renovation 
nearly 40 years ago. Due to the quality of life importance of 
these medical facilities, the Committee strongly encourages the 
Department to prioritize and restore medical military 
construction projects within the FYDP submitted for fiscal year 
2016. In addition, the Committee encourages the Department to 
continue collaborating with the Department of Veterans Affairs 
to pursue Joint DOD/VA medical facility projects.

                        CONTINGENCY CONSTRUCTION

    The Committee has provided $9,000,000 for the Secretary of 
Defense ``Contingency Construction'' account, equal to the 
request. This account provides funds which may be used by the 
Secretary of Defense for unforeseen facility requirements and 
military exercises, including those related to overseas 
contingency operations.

               Military Construction, Reserve Components

Appropriations, 2014....................................    $665,759,000
Budget estimate, 2015...................................     426,549,000
House allowance.........................................     426,549,000
Committee recommendation................................     426,549,000

                          PROGRAM DESCRIPTION

    The military construction appropriation for Reserve 
components provides for acquisition, construction, expansion, 
rehabilitation, and conversion of facilities for the training 
and administration of the Reserve components. This 
appropriation also provides for facilities required as well as 
funds for infrastructure projects and programs required to 
support bases and installations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $426,549,000 for military 
construction projects for the Guard and Reserve components for 
fiscal year 2015. This amount is $239,210,000 below the fiscal 
year 2014 enacted level and equal to the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.
    The Committee recommends approval of military construction, 
Reserve components, as outlined in the following table:

                           RESERVE COMPONENTS
------------------------------------------------------------------------
                                                            Committee
               Component                 Budget request   recommendation
------------------------------------------------------------------------
Army National Guard...................     $126,920,000     $126,920,000
Air National Guard....................       94,663,000       94,663,000
Army Reserve..........................      103,946,000      103,946,000
Navy Reserve..........................       51,528,000       51,528,000
Air Force Reserve.....................       49,492,000       49,492,000
                                       ---------------------------------
      Total...........................      426,549,000      426,549,000
------------------------------------------------------------------------

                   North Atlantic Treaty Organization


                      SECURITY INVESTMENT PROGRAM

Appropriations, 2014....................................    $199,700,000
Budget estimate, 2015...................................     199,700,000
House allowance.........................................     199,700,000
Committee recommendation................................     199,700,000

                          PROGRAM DESCRIPTION

    The North Atlantic Treaty Organization [NATO] appropriation 
provides for the U.S. cost share of the NATO Security 
Investment Program for the acquisition and construction of 
military facilities and installations (including international 
military headquarters) and for related expenses for the 
collective defense of the NATO Treaty area.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $199,700,000 for the North 
Atlantic Treaty Organization Security Investment Program [NSIP] 
for fiscal year 2015 as requested. This amount is equal to the 
fiscal year 2014 enacted level and equal to the budget request.

                        Family Housing Overview

Appropriations, 2014....................................  $1,515,713,000
Budget estimate, 2015...................................   1,190,535,000
House allowance.........................................   1,190,535,000
Committee recommendation................................   1,190,535,000

                          PROGRAM DESCRIPTION

    The Family Housing appropriation provides funds for 
military family housing construction activities, operation and 
maintenance, the Family Housing Improvement Fund, and the 
Homeowners Assistance Program. Construction accounts provide 
funding for new construction, improvements and the Federal 
Government share of housing privatization. Operation and 
maintenance accounts fund costs associated with the maintenance 
and leasing of military family housing, including utilities, 
services, management, and furnishings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,190,535,000 for Family Housing 
Construction, Operations and Maintenance, and the Department's 
family housing improvement fund for fiscal year 2015. This 
amount is $325,178,000 below the fiscal year 2014 enacted level 
and equal to the budget request.

                   Family Housing Construction, Army

Appropriations, 2014....................................     $27,408,000
Budget estimate, 2015...................................      78,609,000
House allowance.........................................      78,609,000
Committee recommendation................................      78,609,000

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Army provides for 
expenses of family housing for construction, including 
acquisition, replacement, addition, expansion, extension, and 
alteration. This appropriation provides for the financing of 
all costs for construction, improvements, and leasing of all 
Army housing. In addition to quality-of-life enhancements, the 
program contains initiatives to reduce operating costs and 
conserve energy by upgrading or replacing facilities which can 
be made more efficient through relatively modest investments in 
improvements. The Department of Defense is authorized to use 
limited partnerships, make direct and guaranteed loans, and 
convey Department-owned property to stimulate the private 
sector to increase the availability of affordable, quality 
housing for the Army.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $78,609,000 for Army Family 
Housing Construction in fiscal year 2015, an amount equal to 
the budget request and $51,201,000 above the fiscal year 2014 
enacted level.
    U.S. Military Family Housing in Korea.--The relocation of a 
large number of U.S. forces from Yongsan Garrison in the 
Republic of Korea to the Camp Humphreys U.S. Army base south of 
Seoul is one of the largest construction projects the 
Department of Defense has undertaken in recent years. The 
Army's planned public-private venture to build family housing 
units, the Humphreys Housing Opportunity Program [HHOP], 
specified that a private developer would build, operate, and 
maintain on-base family housing that service members could rent 
using their overseas housing allowance [OHA]. The goal was to 
fill a family housing deficit of over 600 units.
    However, from the outset, expected rents far surpassed the 
OHA for accompanied service members in Korea, and the 
Department of Defense repeatedly denied the Army's requests for 
a ``special circumstances'' adjustment to the OHA rate. As a 
result, the HHOP has been stalled for several years, with no 
resolution in sight.
    The Committee is deeply concerned that the Army and the 
Department of Defense have not developed an alternative plan to 
the HHOP that will meet the on-base housing requirements of the 
U.S. Forces Korea [USFK] commander, nor conducted adequate 
analysis into potential alternative family housing arrangements 
to reduce expected costs. The Administration's fiscal year 2015 
budget request includes $57,800,000 to construct a 90-unit 
family housing project at Camp Walker, Korea. The Committee 
fully funds this request; however, the high cost of 
construction raises concerns about future costs associated with 
family housing initiatives in Korea, including Camp Humphreys.
    The Committee therefore directs the Department to provide 
an updated assessment of options to provide military family 
housing at Camps Walker, Humphreys and Daegu within 120 days of 
enactment of this act. The assessment should include an 
analysis of the number of personnel required to live on base, 
the potential of adjusting the OHA rate for Korea, and the 
potential cost and timeline of using military construction 
funding to meet the family housing requirement at the three 
installations.

                            NEW CONSTRUCTION

     The following projects are to be accomplished within the 
amounts provided for new construction:

                                                          ARMY FAMILY HOUSING NEW CONSTRUCTION
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                          Installation                              Project                       Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Illinois................................  Rock Island................  Family Housing New Construction..................          19,500          19,500
Korea...................................  Camp Walker................  Family Housing New Construction..................          57,800          57,800
                                                                                                                         -------------------------------
      Total.............................  ...........................  .................................................          77,300          77,300
--------------------------------------------------------------------------------------------------------------------------------------------------------

             Family Housing Operation and Maintenance, Army

Appropriations, 2014....................................    $512,871,000
Budget estimate, 2015...................................     350,976,000
House allowance.........................................     350,976,000
Committee recommendation................................     350,976,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Army provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Army family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $350,976,000 for family housing 
operation and maintenance, Army for fiscal year 2015. This 
amount is $161,895,000 below the fiscal year 2014 enacted level 
and equal to the budget request.

           Family Housing Construction, Navy and Marine Corps

Appropriations, 2014....................................     $73,407,000
Budget estimate, 2015...................................      16,412,000
House allowance.........................................      16,412,000
Committee recommendation................................      16,412,000

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Navy and Marine 
Corps provides for expenses of family housing for construction, 
including acquisition, replacement, addition, expansion, 
extension, and alteration. This appropriation provides for the 
financing of all costs for construction, improvements, and 
leasing of all Navy and Marine Corps housing. In addition to 
quality-of-life enhancements, the program contains initiatives 
to reduce operating costs and conserve energy by upgrading or 
replacing facilities which can be made more efficient through 
relatively modest investments in improvements. The Department 
of Defense is authorized to use limited partnerships, make 
direct and guaranteed loans, and convey Department-owned 
property to stimulate the private sector to increase the 
availability of affordable, quality housing for the Navy and 
Marine Corps.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $16,412,000 for Family Housing 
Construction, Navy and Marine Corps, for construction 
improvements at Marine Corps Air Station Iwakuni, Japan, in 
fiscal year 2015, and for Family Housing Advance Planning and 
Design. This amount is $56,995,000 below the fiscal year 2014 
enacted level and equal to the budget request.

    Family Housing Operation and Maintenance, Navy and Marine Corps

Appropriations, 2014....................................    $379,444,000
Budget estimate, 2015...................................     354,029,000
House allowance.........................................     354,029,000
Committee recommendation................................     354,029,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Navy and Marine Corps provides for the operation and 
maintenance of family housing. This includes debt payment, 
leasing, minor construction, principal and interest charges, 
and insurance premiums of Navy and Marine Corps family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $354,029,000 for family housing 
operation and maintenance, Navy and Marine Corps, in fiscal 
year 2015. This amount is $25,415,000 below the fiscal year 
2014 enacted level and equal to the budget request.

                 Family Housing Construction, Air Force

Appropriations, 2014....................................     $76,360,000
Budget estimate, 2015...................................................
House allowance.........................................................
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The family housing appropriation for the Air Force provides 
for expenses of family housing for construction, including 
acquisition, replacement, addition, expansion, extension, and 
alteration. This appropriation provides for the financing of 
all costs for construction, improvements and leasing of all Air 
Force housing. In addition to quality-of-life enhancements, the 
program contains initiatives to reduce operating costs and 
conserve energy by upgrading or replacing facilities which can 
be made more efficient through relatively modest investments in 
improvements. The Department of Defense is authorized to use 
limited partnerships, make direct and guaranteed loans, and 
convey Department-owned property to stimulate the private 
sector to increase the availability of affordable, quality 
housing for the Air Force.

                        COMMITTEE RECOMMENDATION

    The Committee recommends no funding for Family Housing 
Construction, Air Force, in fiscal year 2015 in accordance with 
the budget request.

          Family Housing Operation and Maintenance, Air Force

Appropriations, 2014....................................    $388,598,000
Budget estimate, 2015...................................     327,747,000
House allowance.........................................     327,747,000
Committee recommendation................................     327,747,000

                          PROGRAM DESCRIPTION

    The family housing operation and maintenance appropriation 
for the Air Force provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Air Force family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $327,747,000 for family housing 
operation and maintenance, Air Force, in fiscal year 2015. This 
amount is $60,851,000 below the fiscal year 2014 enacted level 
and equal to the budget request.

         Family Housing Operation and Maintenance, Defense-Wide

Appropriations, 2014....................................     $55,845,000
Budget estimate, 2015...................................      61,100,000
House allowance.........................................      61,100,000
Committee recommendation................................      61,100,000

                          PROGRAM DESCRIPTION

    The Family Housing Operation and Maintenance appropriation 
for Defense-Wide provides for the operation and maintenance of 
family housing. This includes debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums of Defense family housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $61,100,000 for family housing 
operation and maintenance, Defense-Wide, for fiscal year 2015. 
This amount is $5,255,000 above the fiscal year 2014 enacted 
level and equal to the budget request.

                    Family Housing Improvement Fund

Appropriations, 2014....................................      $1,780,000
Budget estimate, 2015...................................       1,662,000
House allowance.........................................       1,662,000
Committee recommendation................................       1,662,000

                          PROGRAM DESCRIPTION

    The family housing improvement appropriation provides for 
the Department of Defense to undertake housing initiatives and 
to provide an alternative means of acquiring and improving 
military family housing and supporting facilities. This account 
provides seed money for housing privatization initiatives.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,662,000 for the Family Housing 
Improvement Fund for fiscal year 2015. This amount is $118,000 
below the fiscal year 2014 enacted level and equal to the 
budget request.

          Chemical Demilitarization Construction, Defense-Wide

Appropriations, 2014....................................    $122,536,000
Budget estimate, 2015...................................      38,715,000
House allowance.........................................      38,715,000
Committee recommendation................................      38,715,000

                          PROGRAM DESCRIPTION

    This account provides funding for design and construction 
of full-scale chemical disposal facilities and associated 
projects to upgrade installation support facilities and 
infrastructure required to support the Chemical 
Demilitarization Program. This account was established starting 
in fiscal year 2005 to comply with section 141(b) of the fiscal 
year 2003 National Defense Authorization Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $38,715,000 for chemical 
demilitarization construction projects for fiscal year 2015, a 
decrease of $83,821,000 below the fiscal year 2014 enacted 
level and equal to the budget request.
    The Committee continues to urge the Department to take all 
necessary and appropriate steps to dispose of the U.S. chemical 
weapons stockpile by the 2012 Chemical Weapons Convention 
deadline and, under no circumstances, later than 2017 
consistent with section 8119 of Public Law 110-116. In light of 
the need for the Department to carry out its mission promptly 
and safely, it will need to provide close oversight over the 
execution of contracts at the chemical demilitarization sites 
to ensure funds are spent prudently and efficiently. The 
Committee will continue to monitor closely the Department's 
compliance with both deadlines.

               Department of Defense Base Closure Account

Appropriations, 2014....................................    $451,357,000
Budget estimate, 2015...................................     270,085,000
House allowance.........................................     270,085,000
Committee recommendation................................     380,085,000

                          PROGRAM DESCRIPTION

    Section 2711 of the National Defense Authorization Act for 
Fiscal Year 2014 (Public Law 112-239) consolidated the Base 
Closure Account 1990 and the Base Closure Account 2005 into a 
single Department of Defense Base Closure Account. The Base 
Closure Account provides for cleanup and disposal of property 
consistent with the four closure rounds required by the base 
closure acts of 1988 and 1990, and with the 2005 closure round 
required by the Defense Base Closure and Realignment Act of 
1990 (10 U.S.C. 2687 note).

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $380,085,000 for the 
Department of Defense Base Closure Account for fiscal year 
2015, $110,000,000 above the budget request. Funds provided for 
fiscal year 2015 are for environmental cleanup and ongoing 
operations and maintenance.

      BASE CLOSURE ACCOUNT ENVIRONMENTAL AND MAINTENANCE OVERVIEW

    The Committee recommends $380,085,000 for the Base Closure 
Account for fiscal year 2015. This is $110,000,000 above the 
Administration's request and is intended to expedite the 
environmental remediation of military installations closed or 
realigned through the BRAC process. The current cost to 
complete environmental remediation of military installations 
closed under the five previous BRAC rounds totals nearly 
$3,000,000,000, yet the budget request included only 
$270,000,000 for BRAC clean up, 40 percent below the fiscal 
year 2014 enacted level.
    The Committee is aware of the lengthy process involved in 
cleaning up environmental contamination at military 
installations due to the highly toxic and unique nature of some 
of the contaminants. However, environmental remediation remains 
a major impediment to the transfer and reuse of property. The 
Committee believes that it is essential for the Department of 
Defense to expedite where possible the environmental cleanup of 
closed bases. The additional funding provided in this account 
includes $25,000,000 for the Army, $60,000,000 for the Navy and 
$25,000,000 for the Air Force.
      

                       Administrative Provisions

    Sec. 101. The Committee includes a provision that restricts 
payments under a cost-plus-a-fixed-fee contract for work, 
except in cases of contracts for environmental restoration at 
base closure sites.
    Sec. 102. The Committee includes a provision that permits 
the use of funds for the hire of passenger motor vehicles.
    Sec. 103. The Committee includes a provision that permits 
the use of funds for defense access roads.
    Sec. 104. The Committee includes a provision that prohibits 
construction of new bases inside the continental United States 
for which specific appropriations have not been made.
    Sec. 105. The Committee includes a provision that limits 
the use of funds for purchase of land or land easements.
    Sec. 106. The Committee includes a provision that prohibits 
the use of funds to acquire land, prepare a site, or install 
utilities for any family housing except housing for which funds 
have been made available.
    Sec. 107. The Committee includes a provision that limits 
the use of minor construction funds to transfer or relocate 
activities among installations.
    Sec. 108. The Committee includes a provision that prohibits 
the procurement of steel unless American producers, 
fabricators, and manufacturers have been allowed to compete.
    Sec. 109. The Committee includes a provision that prohibits 
payments of real property taxes in foreign nations.
    Sec. 110. The Committee includes a provision that prohibits 
construction of new bases overseas without prior notification.
    Sec. 111. The Committee includes a provision that 
establishes a threshold for American preference of $500,000 
relating to architect and engineering services for overseas 
projects.
    Sec. 112. The Committee includes a provision that 
establishes preference for American contractors for military 
construction in the United States territories and possessions 
in the Pacific, and on Kwajalein Atoll, or in countries 
bordering the Arabian Sea.
    Sec. 113. The Committee includes a provision that requires 
notification of military exercises involving construction in 
excess of $100,000.
    Sec. 114. The Committee includes a provision that limits 
obligations during the last 2 months of the fiscal year.
    Sec. 115. The Committee includes a provision that permits 
funds appropriated in prior years to be available for 
construction authorized during the current session of Congress.
    Sec. 116. The Committee includes a provision that permits 
the use of expired or lapsed funds to pay the cost of 
supervision for any project being completed with lapsed funds.
    Sec. 117. The Committee includes a provision that permits 
obligation of funds from more than 1 fiscal year to execute a 
construction project, provided that the total obligation for 
such project is consistent with the total amount appropriated 
for the project.
    Sec. 118. The Committee includes a provision that allows 
transfer of proceeds from earlier base closure accounts to the 
continuing base closure account (1990, parts I-IV).
    Sec. 119. The Committee includes a provision that permits 
the transfer of funds from Family Housing Construction accounts 
to the DOD Family Housing Improvement Fund and from Military 
Construction accounts to the DOD Military Unaccompanied Housing 
Improvement Fund.
    Sec. 120. The Committee includes a provision that provides 
transfer authority to the Homeowners Assistance Fund.
    Sec. 121. The Committee includes a provision that requires 
all acts making appropriations for military construction be the 
sole funding source of all operation and maintenance for family 
housing, including flag and general officer quarters, and 
limits the repair on flag and general officer quarters to 
$35,000 per unit per year without prior notification to the 
congressional defense committees.
    Sec. 122. The Committee includes a provision that provides 
authority to expend funds from the ``Ford Island Improvement'' 
account.
    Sec. 123. The Committee includes a provision that prohibits 
the expenditure of funds at installations or for projects no 
longer necessary as a result of BRAC 2005.
    Sec. 124. The Committee includes a provision that allows 
the transfer of expired funds to the Foreign Currency 
Fluctuation, Construction, Defense Account.
    Sec. 125. The Committee includes a provision that allows 
the reprogramming of military construction and family housing 
construction funds among projects and activities within the 
account in which they are funded.
    Sec. 126. The Committee includes a provision that prohibits 
the use of funds in this title for planning and design and 
construction of projects at Arlington National Cemetery.
    Sec. 127. The Committee includes a provision providing 
additional funds for unfunded quality-of-life military 
construction projects for the Department of the Army.
    Sec. 128. The Committee includes a provision providing 
additional funds for unfunded military construction projects 
for the Army National Guard.
    Sec. 129. The Committee includes a provision providing 
additional funds for unfunded military construction projects 
for the Army Reserve.
    Sec. 130. The Committee includes a provision providing 
additional funds for quality-of-life military construction 
projects for the Department of the Navy.
    Sec. 131. The Committee includes a provision providing 
additional funds for quality-of-life military construction 
projects for the Department of the Air Force.
    Sec. 132. The Committee includes a provision providing 
additional funds for quality-of-life military construction 
projects for the Air Force Reserve.
    Sec. 133. The Committee includes a provision rescinding 
unobligated balances from various Military Construction 
accounts.
    Sec. 134. The Committee includes a provision rescinding 
unobligated balances from the Homeowners Assistance Program.

                                TITLE II

                     DEPARTMENT OF VETERANS AFFAIRS

                       Items of Special Interest

                                HEARINGS

    The Subcommittee on Military Construction and Veterans 
Affairs, and Related Agencies held one hearing related to the 
fiscal year 2015 Department of Veterans Affairs [VA] budget 
request on March 25, 2014. The subcommittee heard testimony 
from the Honorable Eric Shinseki, Secretary of the Department 
of Veterans Affairs.

                  SUMMARY OF COMMITTEE RECOMMENDATIONS

    The Committee recommendation includes $158,613,053,000 for 
the Department of Veterans Affairs for fiscal year 2015, 
including $93,512,828,000 in mandatory spending and 
$65,100,225,000 in discretionary spending. The Committee also 
recommends $58,662,202,000 in advance appropriations for 
veterans medical care for fiscal year 2016.

                          DEPARTMENT OVERVIEW

    The Veterans Administration was established on July 21, 
1930, as an independent agency by Executive Order 5398, in 
accordance with the Act of July 3, 1930 (46 Stat. 1016). This 
act authorized the President to consolidate and coordinate 
Federal agencies specially created for or concerned with the 
administration of laws providing benefits to veterans, 
including the Veterans' Bureau, the Bureau of Pensions, and the 
National Home for Disabled Volunteer Soldiers. On March 15, 
1989, the Veterans Administration was elevated to Cabinet-level 
status as the Department of Veterans Affairs.
    The VA's mission is to serve America's veterans and their 
families as their principal advocate in ensuring they receive 
the care, support, and recognition they have earned in service 
to the Nation. As of September 30, 2013, there were an 
estimated 22 million living veterans, with 21.9 million of them 
residing in the United States and Puerto Rico. There were an 
estimated 26.5 million dependents (spouses and dependent 
children) of living veterans in the United States and Puerto 
Rico, and there were 575,000 survivors of deceased veterans 
receiving VA survivor benefits in the United States and Puerto 
Rico. Thus, more than 49 million people, or 15.3 percent of the 
total estimated resident population of the United States and 
Puerto Rico, were recipients or potential recipients of 
veterans benefits from the Federal Government. The VA's 
operating units include the Veterans Benefits Administration, 
Veterans Health Administration, National Cemetery 
Administration, and staff support offices.
    The Veterans Benefits Administration [VBA] provides an 
integrated program of nonmedical veterans benefits. The VBA 
administers a broad range of benefits to veterans and other 
eligible beneficiaries through 56 regional offices and a 
records processing center in St. Louis, Missouri. The benefits 
provided include: compensation for service-connected 
disabilities; pensions for wartime, needy, and totally disabled 
veterans; vocational rehabilitation assistance; educational and 
training assistance; home buying assistance; estate protection 
services for veterans under legal disability; information and 
assistance through personalized contacts; and six life 
insurance programs.
    The Veterans Health Administration [VHA] develops, 
maintains, and operates a national healthcare delivery system 
for eligible veterans; carries out a program of education and 
training of healthcare personnel; conducts medical research and 
development; and furnishes health services to members of the 
Armed Forces during periods of war or national emergency. A 
system of 151 hospitals, 1,207 outpatient clinics and Vet 
Centers, 133 nursing homes, and 102 VA residential 
rehabilitation treatment programs is maintained to meet the 
VA's medical mission.
    The National Cemetery Administration [NCA] provides for the 
interment of the remains of eligible deceased servicemembers 
and discharged veterans in any national cemetery with available 
grave space; permanently maintains these graves; provides 
headstones and markers for the graves of eligible persons in 
national and private cemeteries; administers the grant program 
for aid to States in establishing, expanding, or improving 
State veterans cemeteries; and provides certificates to 
families of deceased veterans recognizing their contributions 
and service to the Nation. The National Cemetery Administration 
operates 133 national cemeteries and 33 soldiers' lots and 
monument sites.
    Staff support offices include the Office of Inspector 
General, Boards of Contract Appeals and Veterans Appeals, and 
General Administration offices, which support the Secretary, 
Deputy Secretary, Under Secretary for Benefits, Under Secretary 
for Health, Under Secretary for Memorial Affairs, and General 
Counsel.

                      VA PATIENT SCHEDULING DELAYS

    The Committee is deeply troubled over allegations that have 
recently emerged regarding deliberate attempts to cover up 
outpatient scheduling delays at a number of VA medical centers 
across the country, including Arizona, Illinois, New Mexico, 
North Carolina, Washington, and Colorado, raising the 
possibility of deadly consequences in some cases. If 
substantiated, these allegations constitute not only fraud and 
malfeasance, but also point to the more chilling conclusion 
that maintaining a false front of efficiency for the hospital 
trumped its mission of maintaining the health and well-being of 
the patients it was built to serve.
    Scheduling delays resulting from such factors as outdated 
and unwieldy scheduling systems, staffing shortages, and 
insufficient telephone capacity have plagued the VA for years, 
and have been amply documented by the Government Accountability 
Office and the VA Inspector General. But the current cascade of 
accusations that some VA medical centers keep secret or 
falsified waiting lists to mask lengthy delays in patient 
scheduling portends a far more troubling problem with the very 
culture of the Veterans Health Administration [VHA].
    The Committee commends the VA Inspector General [IG] for 
launching an immediate investigation and consultation with 
Federal criminal prosecutors into allegations that employees at 
the Phoenix, Arizona, VA medical center used secret wait lists 
to conceal long scheduling delays, resulting in the deaths of 
some veterans waiting to get an appointment. While these 
allegations have not been substantiated, and the outcome of the 
IG investigation should not be pre-judged, it is becoming 
increasingly evident that long wait times and scheduling 
discrepancies are not limited to one or even a handful of VA 
facilities.
    For this reason, the Committee provides an additional 
$5,000,000 in funding for the Office of Inspector General and 
directs the IG to conduct a systemwide review of scheduling 
procedures, wait times for appointments, and management 
practices at VA medical centers across all Veterans Integrated 
Service Networks [VISNs].
    The Committee also includes bill language restricting the 
VA from awarding performance bonuses to medical directors, 
assistant medical directors, and Senior Executive Service 
employees of the VHA until the audit is complete, the IG has 
provided Congress with a report on the findings, and the 
Secretary provides Congress an implementation plan to address 
the findings and recommendations of the IG audit.
    The Committee also recognizes the hard work and dedication 
of the vast majority of employees at VA clinics and medical 
centers throughout the Nation. Their contributions to the 
health and well-being of America's veterans must not be 
overshadowed by the alleged misconduct a small fraction of the 
VA workforce.

                       DISABILITY CLAIMS BACKLOG

    The backlog in VA disability claims processing remains a 
major concern of the Committee. While significant progress has 
been made to reduce the backlog, more work remains to be done. 
Therefore the Committee has provided additional funding for 
claims processing and additional oversight requirements in this 
bill to ensure that the VA's focus and momentum on reducing the 
claims backlog will not be lost.
    Last year, the backlog of veterans disability compensation 
claims reached crisis proportions. For too long, the focus of 
this problem has been narrowly viewed as a VA problem only. 
However, the claims process is highly dependent on receiving 
timely and accurate information from a host of other Federal 
agencies. In order to address this, on May 22, 2013, the 
Committee brought together an interagency working group 
including the Secretary of Defense; the Secretary of Veterans 
Affairs; the Acting Commissioner of the Social Security 
Administration; and the Deputy Commissioner of the Internal 
Revenue Service to discuss the unacceptable delays in the 
processing of disability claims. This unprecedented meeting 
resulted in the implementation of a number of intergovernmental 
initiatives across the Federal Government aimed at speeding the 
transfer of information to the VA and eliminating the backlog. 
Among these initiatives were:
  --The development by the Social Security Administration [SSA] 
        of the Government-to-Government Services Online [GSO] 
        secure messaging system, which allows VA employees to 
        request and SSA to transmit electronic records 
        associated with veterans' claims. In October of 2013, 
        36 percent of records VA requested were transmitted 
        electronically via GSO. As of March 2014, 74 percent 
        are being transmitted electronically. National rollout 
        will be fully implemented by the end of fiscal year 
        2014, eliminating the old process of requesting records 
        by fax and having encrypted compact discs mailed.
  --A new agreement among VA, SSA and the Internal Revenue 
        Service [IRS], which matches earned and unearned income 
        to new VA pension claims and returns the information to 
        the VA electronically.
  --The electronic transfer from the Department of Defense 
        [DOD] to the VA, beginning on January 1, 2014, of 
        certified and complete Service Treatment Records [STR] 
        for separating servicemembers via the Health Artifact 
        and Image Management System [HAIMS]. These electronic 
        folders load directly into the Veterans Benefits 
        Management System, the VA's new electronic claims 
        processing system. This ends most transfers of paper 
        STRs via mail. This has streamlined the exchange of a 
        significant amount of data between DOD and VA and 
        shortened the amount of time it takes for VA claims 
        adjudicators to receive critical information from DOD.
    While these efforts are to be commended, more work remains 
to improve the intergovernmental exchange of information to 
assist the VA in processing disability claims. For example, VA 
and DOD are currently working to standardize a process for the 
transmission of Guard and Reserve records, which are among the 
most complicated of records to aggregate given the nature of 
intermittent assignments to active duty and the dual State and 
Federal role of the Guard. The Committee will continue to press 
VA, DOD and other Federal agencies to expedite the flow of 
interagency information so that veterans do not experience an 
unnecessary delay due to lost or late delivery of critical 
documents.
    The fiscal year 2014 Military Construction and Veterans 
Affairs, and Related Agencies appropriations bill addressed 
issues raised at the May 2013 roundtable by including a 10-
point plan, which implemented specific measures to eliminate 
the claims backlog while bolstering oversight and transparency 
of the process. As a result of this plan and initiatives 
launched by the Department, the claims backlog has fallen from 
a height of 611,000 in March 2013 to 300,620 as of May 10, 
2014. Oversight has also increased as the VA is required to 
provide monthly updates to the Committee on performance 
measures for each Regional Office. In addition, top officials 
of VA, DOD, SSA, and IRS meet with the Committee every 60 days 
to discuss current and potential collaborative efforts aimed at 
speeding the evidence-gathering phase of disability claims 
processing. The 10-point plan also required the VA and DOD 
Inspectors General to examine the process and procedures 
involved in the transmission of STRs from DOD to VA, with an 
emphasis on Guard and Reserve records, and to identify problem 
areas and make recommendations for improvements. This report is 
scheduled to be submitted to the Committee this summer. Upon 
receipt of the report, the Committee will take the appropriate 
steps to ensure that these recommendations are incorporated 
into the fiscal year 2015 Military Construction and Veterans 
Affairs, and Related Agencies Appropriations Act as the bill 
makes its way through the appropriations process.
    This year's recommendations maintain the oversight and 
reporting requirements contained in the 10-point plan and 
builds on them with an eye toward the future by laying the 
groundwork for enduring systemic and business process changes 
so that the Veterans Benefit Administration [VBA] does not face 
a similar backlog in future years. In short, with every effort 
underway to eliminate the current backlog, VBA must also be 
positioning itself to protect against a future backlog. To this 
end, the Committee recommendation includes numerous new reforms 
and initiatives and calls for an independent review to be 
conducted by the National Academy of Public Administration of 
VBA's business processes, management structure, training 
programs and workforce allocation strategy, and to provide to 
the Committee recommendations for any structural changes to the 
current system. Moreover, the Committee recommendation also 
directs the VBA, working in conjunction with the Office of 
Policy and Planning, to conduct a workforce analysis by 
Regional Office, and to undertake a detailed review of VBA's 
Resources Allocation Model.
    The bill also provides focus and resources on the lengthy 
appeals process and the increasing number of disability 
decisions on appeal. The fiscal year 2015 justification 
accompanying the VA's budget request notes that appeals 
received by the Board of Veterans Appeals are projected to 
increase 52 percent, from 47,763 in 2011 to 72,786 by the end 
of 2015. To help alleviate the impact of this surge in appeals, 
the bill includes increases above the request for VBA to hire 
additional personnel at Regional Offices, including Decision 
Review Officers, the Board of Veterans Appeals and the United 
States Court of Appeals for Veterans Claims.
    To help accomplish the goals described above, the Committee 
has provided an increase of $30,000,000 above the budget 
request for a claims processing hiring and training initiative, 
$10,000,000 over the request to bolster VBA's migration to 
electronic claims processing systems, including scanning and 
hardware upgrades at Regional Offices, and $5,000,000 over the 
request for the Board of Veterans Appeals to address the 
backlog of appeals pending before the Board.
    The Committee recognizes that eliminating the current 
claims backlog is only the first step in addressing the long 
term need to transform claims processing to a modern, 
streamlined and efficient system. The initiatives, funding and 
oversight contained in this bill will help the VA undertake 
such a transformation, ensure that quality of claims processing 
does not suffer in the effort to eliminate the backlog, and 
establish fundamental reforms that will lead to the sustained 
efficiency and responsiveness of the disability claims process.

                             INFRASTRUCTURE

    The Committee remains concerned about a lack of investment 
in current and future VA infrastructure. In 2010, the 
Department undertook a strategic review of current facilities 
and future capital investment needed to close gaps across the 
Veterans Health Administration [VHA]. The Department-wide 
planning process, known as the Strategic Capital Investment 
Planning process [SCIP], resulted in the creation of a single 
integrated, prioritized list of projects from all capital 
investment accounts (major construction, minor construction, 
and VHA non-recurring maintenance). SCIP was designed to 
improve the delivery of services and benefits to veterans, 
their families and survivors by addressing VA's most critical 
needs. The prioritized list was to be a blueprint of wise 
investments that needed to be made in VA's future and current 
facilities, in order to continue to provide high quality 
healthcare. The original SCIP estimated that a total cost of 
between $50,000,000,000 and $60,000,000,000 needed to be 
invested over 10 years to address the problem of aging 
hospitals and clinics across the country. The Committee was 
encouraged that the Department undertook such a long range view 
at its infrastructure needs and assumed that adequate budget 
submissions would follow. However, requests for major and minor 
construction have remained stagnant over the past several 
years, and requests for non-recurring maintenance have 
decreased since fiscal year 2013.
    As part of the review of current infrastructure, the VA 
undertakes a Facility Condition Assessment [FCA] in which the 
Department estimates its current maintenance backlog at 
hospitals across the country. Each building in use at Veterans 
Affairs Medical Center campuses are graded from A through F 
based on their condition, with Ds and Fs being considered 
deficiencies that should have been addressed in previous years. 
At the same time that the most current FCA estimates that the 
total cost of deficiencies across the VHA system totals between 
$9,800,000,000 and $10,700,000,000, the fiscal year 2015 budget 
estimate for non-recurring maintenance totals $460,600,000, 
down $861,557,000 from fiscal year 2013.
    The Committee understands that the current budget 
environment has caused tough choices to be made across the 
entire Federal Government. However, safe and modern 
infrastructure is paramount to delivering world class 
healthcare. Ignoring or deferring wise infrastructure 
investments today can cause costs to escalate tomorrow, and 
will likely drive policy decisions over how care is to be 
delivered in the future. Therefore, the Committee has included 
a number of actions within the bill to help the VA address some 
of its most pressing infrastructure needs. These include: an 
additional $125,000,000 for non-recurring maintenance, as well 
as authority for the Secretary to transfer up to $250,000,000 
from the Medical Care Collections Fund into the Medical 
Facilities account to address critical infrastructure repairs; 
an additional $45,000,000 for minor construction projects at 
hospitals across the country; and specific directions 
concerning how major construction projects are prioritized 
year-to-year. While these investments only scratch the surface 
of current and future budget needs, the Committee feels 
strongly that any additional funding that can be provided 
should be allocated to high-priority programs and urges the 
Department to rethink its budgeting model with respect to 
infrastructure and to provide more realistic budget requests in 
the future.

                       ITEMS OF SPECIAL INTEREST

    Budget Justifications.--Congressional budget justifications 
are developed each year by the Department to provide a more 
detailed explanation and supplemental information on the budget 
submission for a given fiscal year. The Committee utilizes this 
information to effectively and efficiently evaluate resource 
requirements and proposals requested by the Administration. 
Last year, the Committee recommended several changes that 
future justifications should include. While the Department has 
adopted many of those changes, some were not contained in the 
fiscal year 2015 Congressional budget justifications. The 
Committee reiterates the need for more detailed budget 
explanations so that timely evaluation of requested funding and 
proper oversight are not hindered, and has included specific 
directions in the appropriate place within this report 
outlining the type of details future justifications should 
include.
    Medical Facilities Realignments.--The Committee remains 
concerned that VA medical care realignments are being 
approached in an ad hoc manner by each individual Veterans 
Integrated Service Network [VISN] rather than on a 
comprehensive basis by VA Central Office. This soda straw 
approach to the realignment process could lead to an 
inequitable and inefficient distribution of medical care 
resources throughout the Nation. The Committee believes that 
before VA makes a decision to relocate, close or diminish 
services at an existing medical facility, consideration must be 
given to the impact the proposed relocation would have on 
veterans, particularly those veterans that reside in rural or 
highly rural areas. Without a clearly articulated national 
strategy for realignments, the Committee is concerned that 
selected decisions are being made by individual VISNs without 
stakeholder involvement and without engagement or guidance from 
senior level policymakers before potentially irreversible 
decisions are made. For example, VISN directors contemplating a 
realignment could begin to make decisions years in advance 
about what services to offer or which vacancies to fill, with 
no guidance from the Central Office and no visibility of the 
national strategy. Such decisions could diminish the level of 
care in an area to the point that realignment becomes a 
foregone conclusion before the Central Office has an 
opportunity to review or weigh in on the merits of the proposed 
realignment.
    The Committee understands that VA must keep up with 
demographic changes. However, the VA must establish a clear and 
transparent process that engages all parties from the 
beginning. Therefore, the Committee recommendation includes an 
Administrative Provision suspending the proposed realignment of 
services in VISN 23 until such time as the Department transmits 
to the Committee a report that outlines the following: (1) a 
national realignment strategy that includes a detailed 
description of realignment plans within each VISN; (2) an 
explanation of the process by which those plans were developed 
and coordinated within the VISN; (3) a cost vs. benefit 
analysis of each planned realignment, including the cost of 
replacing Veterans Health Administration services with contract 
care or other outsourced services; (4) an analysis of how any 
such planned realignment of services will impact access to care 
for veterans living in rural or highly rural areas, including 
travel distances and transportation costs to access a VA 
medical facility and availability of local specialty and 
primary care; (5) an inventory of VA buildings with historic 
designation and the methodology used to determine the buildings 
condition and utilization; (6) a description of how any 
realignment will be consistent with requirements under the 
National Historic Preservation Act; and (7) consideration given 
for reuse of historic buildings.
    Veterans Job Corps Initiative.--High unemployment rates for 
veterans transitioning from active duty service to the civilian 
workforce remain a major concern for the Committee. The 
Administration and the VA have taken a number of steps to 
incentivize the hiring of veterans by the private sector. Of 
note, the Administration has proposed a Veterans Job Corps 
Initiative to help returning veterans find a pathway to 
civilian employment. The Committee strongly supports this 
initiative and urges Congress to authorize it at the earliest 
possible opportunity.
    Intergovernmental Information.--The Committee recognizes 
that many services provided by the VA are contingent upon 
getting timely information from other Government agencies and 
Departments. As noted earlier in this report, since the 
Committee convened a roundtable in May of 2013 with the heads 
of several Departments and agencies, information flow from 
these agencies to the VA has been handled in a timelier manner. 
However, to ensure that this cooperation continues, the 
Committee directs the Secretary of the VA to submit an annual 
report beginning January 1, 2015, detailing the average number 
of days it took during the previous fiscal year for the VA to 
receive information it requested from other Federal agencies.
    Integrated Disability Evaluation System.--The Secretary of 
Veterans Affairs, in consultation with the Secretary of 
Defense, shall develop a plan to improve the sharing of 
information necessary to predict and address surges in workload 
within the Integrated Disability Evaluation System. Further, 
the Departments shall integrate information technology systems 
to ensure that an end-to-end information technology solution is 
in place for both the transfer and management of Integrated 
Disability Evaluation System cases between the Department of 
Veterans Affairs and the military services no later than 
December 31, 2014.
    Victims of Mass Shootings on Military Bases.--The Committee 
is concerned that military and veteran victims of the mass 
shootings at Fort Hood, Texas, in 2009 and 2014, and at the 
Navy Yard in Washington, DC in 2013 receive the maximum VA 
benefits available to soldiers or veterans who were wounded in 
the line of duty. To better understand the benefits and care 
these victims are entitled to now and into the future, the 
Committee directs the VA to submit a report to the Committees 
on Appropriations of both Houses of Congress no later than July 
15, 2014, that provides a detailed analysis of the benefits and 
care victims of workplace violence are eligible, and how these 
compare to benefits and care they would receive if wounded in 
battle or as a result of a terrorist attack.
    Legal Training.--The Committee is aware of several law 
school based programs designed to help veterans more 
efficiently navigate the Department's benefits process. These 
programs leverage significant volunteer, private sector, and 
other non-Federal resources that combine to produce better 
outcomes for veterans and significant cost-savings and 
efficiencies for the Department. The Committee encourages the 
VA to explore ways in which the Department might partner with 
these programs.
    Agent Orange Registry.--The VA maintains an Agent Orange 
Registry for veterans who served in Vietnam. The Committee is 
aware, however, of a number of instances where U.S. veterans 
may have been exposed to chemicals including Agent Orange 
during training activities and missions outside of Vietnam. The 
Committee urges the Secretary of Veterans Affairs to explore 
the feasibility of establishing a registry of U.S. veterans who 
served or trained outside of Vietnam and have subsequently 
experienced health issues, which may have resulted from 
exposure to these chemicals, and directs the Secretary to 
provide a report to the Committees on Appropriations of both 
Houses of Congress no later than 180 days after enactment of 
this act detailing any plans the Department may be considering 
on establishing a policy regarding presumed exposure for these 
veterans.

                    Veterans Benefits Administration

Appropriations, 2014.................................... $84,849,467,000
Budget estimate, 2015...................................  93,675,210,000
House allowance.........................................  93,675,210,000
Committee recommendation................................  93,675,210,000

                        ADMINISTRATION OVERVIEW

    The Veterans Benefits Administration [VBA] is responsible 
for the payment of compensation and pension benefits to 
eligible service-connected disabled veterans, as well as 
education benefits and housing loan guarantees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $93,675,210,000 for the Veterans 
Benefits Administration. This amount is composed of 
$78,687,709,000 for Compensation and Pensions; $14,761,862,000 
for Readjustment Benefits; $63,257,000 for Veterans Insurance 
and Indemnities; $160,881,000 for the Veterans Housing Benefit 
Program Fund administrative expenses; $10,000 for the 
Vocational Rehabilitation Loans Program account, with $361,000 
for administrative expenses; and $1,130,000 for the Native 
American Veteran Housing Loan Program account.

                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2014.................................... $71,476,104,000
Budget estimate, 2015...................................  78,687,709,000
House allowance.........................................  78,687,709,000
Committee recommendation................................  78,687,709,000

                          PROGRAM DESCRIPTION

    Compensation is payable to living veterans who have 
suffered impairment of earning power from service-connected 
disabilities. The amount of compensation is based upon the 
impact of disabilities on a veteran's earning capacity. Death 
compensation or dependency and indemnity compensation is 
payable to the surviving spouses and dependents of veterans 
whose deaths occur while on active duty or result from service-
connected disabilities. A clothing allowance may also be 
provided for service-connected veterans who use a prosthetic or 
orthopedic device. In fiscal year 2015, the Department 
estimates it will obligate $72,563,561,000 for payments to 
4,186,547 veterans, 382,080 survivors, and 1,190 dependents 
receiving special benefits.
    Pensions are an income security benefit payable to needy 
wartime veterans who are precluded from gainful employment due 
to nonservice-connected disabilities which render them 
permanently and totally disabled. Public Law 107-103, the 
Veterans Education and Benefits Expansion Act of 2001, restored 
the automatic presumption of permanent and total nonservice 
connected disability for purposes of awarding a pension to 
veterans age 65 and older, subject to the income limitations 
that apply to all pensioners. Death pensions are payable to 
needy surviving spouses and children of deceased wartime 
veterans. The rate payable for both disability and death 
pensions is determined on the basis of the annual income of the 
veteran or their survivors. In fiscal year 2015, the Department 
estimates that the Pensions program will provide benefits to 
308,715 veterans and 210,635 survivors totaling $5,860,010,000.
    The Compensation and Pensions program funds certain burial 
benefits on behalf of eligible deceased veterans. These 
benefits provide the purchase and transportation costs for 
headstones and markers, graveliners, and pre-placed crypts; and 
provides partial reimbursement for privately purchased outer 
burial receptacles. In fiscal year 2015, the Department 
estimates the Compensation and Pensions program will obligate 
$264,138,000 providing burial benefits. This funding will 
provide 64,049 burial allowances, 32,823 burial plot 
allowances, 27,891 service-connected death awards, 497,644 
burial flags, 362,885 headstones or markers, and 98,903 
graveliners or reimbursement for privately purchased outer 
burial receptacles.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $78,687,709,000 for Compensation 
and pensions. This is an increase of $7,211,605,000 above the 
fiscal year 2014 enacted level and equal to the budget request.
    The appropriation includes $15,430,000 in payments to the 
General operating expenses, veterans benefits administration; 
and Information technology systems accounts for expenses 
related to implementing provisions of the Omnibus Budget 
Reconciliation Act of 1990, the Veterans' Benefits Act of 1992, 
the Veterans' Benefits Improvements Act of 1994, and the 
Veterans' Benefits Improvements Act of 1996.

                         READJUSTMENT BENEFITS

Appropriations, 2014.................................... $13,135,898,000
Budget estimate, 2015...................................  14,761,862,000
House allowance.........................................  14,761,862,000
Committee recommendation................................  14,761,862,000

                          PROGRAM DESCRIPTION

    The Readjustment benefits appropriation finances the 
education and training of veterans and servicemembers under 
chapters 30, 31, 32, 33, 34, 35, 36, 37, 39, 41, 42 and 43 of 
title 38, United States Code. These benefits include the All-
Volunteer Force Educational Assistance Program (Montgomery GI 
bill) and the Post 9/11 Educational Assistance Program. Basic 
benefits are funded through appropriations made to the 
readjustment benefits appropriation and by transfers from the 
Department of Defense. This account also finances vocational 
rehabilitation, specially adapted housing grants, specially 
adapted automobile grants for certain disabled veterans, and 
educational assistance allowances for eligible dependents of 
those veterans who died from service-connected causes or who 
have a total permanent service-connected disability, as well as 
dependents of servicemembers who were captured or missing in 
action.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $14,761,862,000 for Readjustment 
benefits. This is an increase of $1,625,964,000 above the 
fiscal year 2014 enacted level and equal to the budget request.

                   VETERANS INSURANCE AND INDEMNITIES

Appropriations, 2014....................................     $77,567,000
Budget estimate, 2015...................................      63,257,000
House allowance.........................................      63,257,000
Committee recommendation................................      63,257,000

                          PROGRAM DESCRIPTION

    The Veterans insurance and indemnities appropriation 
consists of the former appropriations for military and naval 
insurance, applicable to World War I veterans; National Service 
Life Insurance, applicable to certain World War II veterans; 
servicemen's indemnities, applicable to Korean conflict 
veterans; and veterans mortgage life insurance to individuals 
who have received a grant for specially adapted housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $63,257,000 for Veterans insurance 
and indemnities. This is a decrease of $14,310,000 below the 
fiscal year 2014 enacted level and equal to the budget request. 
The Department estimates there will be 6,652,777 policies in 
force in fiscal year 2015 with a value of $1,320,249,600,000.

                 VETERANS HOUSING BENEFIT PROGRAM FUND

------------------------------------------------------------------------
                                                         Administrative
                                       Program account      expenses
------------------------------------------------------------------------
Appropriations, 2014................  ................      $158,430,000
Budget estimate, 2015...............  ................       160,881,000
House allowance.....................  ................       160,881,000
Committee recommendation............  ................       160,881,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Veterans housing benefit program fund provides for all 
costs associated with the VA's direct and guaranteed housing 
loan programs, with the exception of the Native American 
veteran housing loan program.
    VA loan guaranties are made to servicemembers, veterans, 
reservists, and unremarried surviving spouses for the purchase 
of homes, condominiums, and manufactured homes, and for 
refinancing loans. VA guarantees part of the total loan, 
permitting the purchaser to obtain a mortgage with a 
competitive interest rate, even without a downpayment, if the 
lender agrees. The VA requires that a downpayment be made for a 
manufactured home. With a VA guaranty, the lender is protected 
against loss up to the amount of the guaranty if the borrower 
fails to repay the loan.

                        COMMITTEE RECOMMENDATION

    The Committee recommends such sums as may be necessary for 
funding subsidy payments, and $160,881,000 for administrative 
expenses for fiscal year 2015. Bill language limits gross 
obligations for direct loans for specially adapted housing to 
$500,000.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

------------------------------------------------------------------------
                                                         Administrative
                                       Program account      expenses
------------------------------------------------------------------------
Appropriations, 2014................            $5,000          $354,000
Budget estimate, 2015...............            10,000           361,000
House allowance.....................            10,000           361,000
Committee recommendation............            10,000           361,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Vocational Rehabilitation Loans Program account covers 
the cost of direct loans for vocational rehabilitation of 
eligible veterans and, in addition, includes administrative 
expenses necessary to carry out the direct loan program. Loans 
of up to $1,108 (based on the indexed chapter 31 subsistence 
allowance rate) are currently available to service-connected 
disabled veterans enrolled in vocational rehabilitation 
programs, as provided under 38 U.S.C. chapter 31, when the 
veteran is temporarily in need of additional assistance. 
Repayment is made in monthly installments, without interest, 
through deductions from future payments of compensation, 
pension, subsistence allowance, educational assistance 
allowance, or retirement pay. Virtually all loans are repaid in 
full and most in less than 1 year.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $10,000 for program costs and 
$361,000 for administrative expenses for the Vocational 
Rehabilitation Loans Program account. The administrative 
expenses may be paid to the General Operating Expenses, 
Veterans Benefits Administration account. Bill language is 
included limiting program direct loans to $2,877,000. It is 
estimated that the VA will make 3,099 loans in fiscal year 
2015, with an average amount of $929.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

Appropriations, 2014....................................      $1,109,000
Budget estimate, 2015...................................       1,130,000
House allowance.........................................       1,130,000
Committee recommendation................................       1,130,000

                          PROGRAM DESCRIPTION

    The Native American veteran housing loan program is 
authorized by 38 U.S.C. chapter 37, section 3761 to provide 
direct loans to Native American veterans living on trust lands. 
The loans are available to purchase, construct, or improve 
homes to be occupied as veteran residences, or to refinance a 
loan previously made under this program in order to lower the 
interest rate. The principal amount of a loan under this 
authority generally may not exceed $417,000 however, in some 
locations this limit may be higher depending on median area 
home prices. Veterans pay a funding fee of 1.25 percent of the 
loan amount, although veterans with a service-connected 
disability are exempt from paying the fee. Before a direct loan 
can be made, the veteran's tribal organization must sign a 
memorandum of understanding with the VA regarding the terms and 
conditions of the loan. The Native American Veteran Housing 
Loan Program began as a pilot program in 1993 and was made 
permanent by Public Law 109-233, the Veterans Housing 
Opportunity and Benefits Act of 2006.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,130,000 for administrative 
expenses associated with this program. This is $21,000 above 
the fiscal year 2014 enacted level and equal to the budget 
request.

                     Veterans Health Administration

Appropriations, 2014.................................... $55,122,664,000
Advance appropriations, 2015............................  55,634,227,000
Budget estimate, 2015...................................     956,807,000
House allowance, 2015...................................     588,922,000
Committee recommendation, 2015..........................     813,922,000
Budget estimate, advance appropriation, 2016............  58,662,202,000
House allowance, advance appropriation, 2016............  58,662,202,000
Committee recommendation, advance appropriation, 2016...  58,662,202,000

                        ADMINISTRATION OVERVIEW

    The Veterans Health Administration [VHA] operates the 
largest Federal medical care delivery system in the country, 
with 151 hospitals, 1,207 outpatient clinics and Vet Centers, 
133 nursing homes, and 102 VA residential rehabilitation 
treatment programs.
    The Department of Veterans Affairs Medical Care Collections 
Fund [MCCF] was established by the Balanced Budget Act of 1997 
(Public Law 105-33). In fiscal year 2004, Public Law 108-199 
allowed the Department to deposit first-party and 
pharmaceutical co-payments; third-party insurance payments and 
enhanced-use collections; long-term care co-payments; 
Compensated Work Therapy Program collections; Compensation and 
Pension Living Expenses Program collections; and Parking 
Program fees into the MCCF.
    The Parking Program provides funds for the construction, 
alteration, and acquisition (by purchase or lease) of parking 
garages at VA medical facilities authorized by 38 U.S.C. 8109. 
The Secretary is required under certain circumstances to 
establish and collect fees for the use of such garages and 
parking facilities. Receipts from the parking fees are to be 
deposited into the MCCF and are used for medical services 
activities.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2014, the Committee provided $55,634,227,000 
in advance appropriations for the VA's medical care accounts 
for fiscal year 2015. This included $45,015,527,000 for Medical 
services; $5,879,700,000 for Medical support and compliance; 
and $4,739,000,000 for Medical facilities. The Committee also 
includes an Administrative Provision allowing the Department to 
carry forward into fiscal year 2016 certain amounts provided as 
an advance for fiscal year 2015. For fiscal year 2015, the 
Committee recommends an additional $100,000,000 for Medical 
services and $125,000,000 for Medical facilities. Additionally, 
the Committee recommendation includes $588,922,000 for Medical 
and prosthetic research. Medical care collections are expected 
to be $2,456,000,000. The recommendation also includes an 
advance appropriation of $58,662,202,000 for veterans medical 
care for fiscal year 2016.

                           AREAS OF INTEREST

    Advance Appropriations Budgeting.--The Committee remains 
supportive of providing advance appropriations for the three 
veterans medical care accounts. The intent of advance 
appropriations is to provide timely and predictable funding for 
veterans medical care and provide hospitals in the field 
certainty as clinical hiring decisions are made. The medical 
care budget is formed primarily by an actuarial analysis which 
factors in numerous data points including current and projected 
veteran population, enrollment projections, and case mix 
changes associated with current veteran patients. Due to the 
fact that medical care funding is provided a year in advance 
and that healthcare is dynamic in nature, the Department 
updates the actuarial model after the advance is provided, thus 
enabling the Department to make necessary changes in the 
following budget submission. The Committee appreciates this 
process and understands that the intention is to provide a 
clearer picture of medical needs. Last year, the Committee 
directed that the fiscal year 2015 Department of Veterans 
Affairs budget justifications include explanations on what data 
was modified for the actuarial projections and how those 
changes produced savings or increased resource requirements. 
This year, the VA is requesting an additional $367,885,000 for 
the Medical Services account. However, the justification 
accompanying the budget request did not provide all of the 
requested information regarding what data was modified and what 
actual operational savings were achieved over the past fiscal 
year. The Committee is aware that the Department routinely has 
significant end of year balances which become available for the 
following fiscal year. Due to this lack of detailed budget 
information coupled with large carryover balances, the 
Committee recommendation includes an additional $100,000,000 
for the Medical Services account and shifts the remaining 
balance to other high priority veteran programs. This includes 
providing additional funding to help address the unacceptable 
number of code violations and safety deficiencies at existing 
hospitals and clinics. The Committee will continue to closely 
monitor the fiscal condition of all VHA accounts and will take 
action to realign funding as the appropriation process moves 
forward should circumstances dictate that such action is 
needed.
    Allocation of Medical Funding.--The Veterans Equitable 
Resource Allocation [VERA] serves as the mechanism by which VA 
allocates funding appropriated to the three medical care 
accounts to the Veterans Integrated Service Networks [VISN] and 
to the medical centers. The Committee remains concerned about 
the transparency of this process and is specifically concerned 
about the amount of funding retained at headquarters or at the 
VISNs. In order to ensure proper oversight is maintained and 
the Committee has specific information to ensure the medical 
centers are receiving the proper allocations, the Committee 
directs the Veterans Health Administration to submit a report 
to the Committees on Appropriations of both Houses of Congress 
no later than 30 days after VA allocates the medical care 
appropriations to the VISNs which identifies: (1) the amount of 
general purpose funding allocated to each VISN; (2) the amount 
of funding retained by central headquarters for specific 
purposes, with amounts identified for each purpose; and (3) the 
amount of funding retained by each VISN before allocating it to 
the medical centers, identifying separately the amounts 
retained for purposes such as network operations, network 
initiatives, and emergencies.
    VA Transparency.--The Committee notes that the VA maintains 
a Hospital Compare Web site in which it rates the quality of 
care at every VA medical center in a number of fields, 
including surgical procedures, process of care, mortality 
rates, and readmission for selected diagnoses. In order to 
provide greater transparency into the quality of care at VA 
medical centers, the Committee directs the Secretary of 
Veterans Affairs to include the following information in the 
Hospital Compare Web site:
  --Aggregate assessments of outcomes for individual surgical 
        procedures to include the type and number of 
        complications, mortality rate, average length of 
        inpatient care, patient safety issues, description of 
        any hospital-acquired medical condition, and rate of 
        readmission within 30 days of discharge;
  --Assessment of in-patient mental health treatment, including 
        patient safety issues and suicide rate of patients 
        following discharge;
  --Assessment of incidents affecting the safety of patients 
        receiving nursing home treatment;
  --Average wait times for emergency room treatment; and
  --Average wait time to schedule outpatient appointments as 
        certified by the VA Medical Center Director.
    Security at Veterans Affairs Medical Facilities.--Robust 
physical security is integral to the Department's ability to 
provide high quality patient care across the Veterans Health 
Administration's integrated healthcare system. This security is 
provided by the largest uniformed Federal police agency in the 
country. The VA Police Service is composed of approximately 
4,000 officers, which provide law enforcement and security 
support to VHA's 151 hospitals. The Committee is aware that the 
VA's Office of Security and Law Enforcement is currently 
undertaking a systemwide security review which will assess the 
physical security vulnerabilities of hospitals in order to help 
inform policy decisions which will ensure greater security. The 
Committee commends the VA for undertaking this review and 
encourages the Department to incorporate into this review how 
future plans will leverage integrated technologies and real 
time data analytics to adopt smart policing techniques being 
used more frequently by other Federal, State and local law 
enforcement.
    VA Dialysis.--The Committee requests the VA to obtain an 
independent and full evaluation of the four-site dialysis pilot 
program by September 30, 2015. In the interim, in an effort to 
improve efficiencies and save taxpayer funds, the VA should not 
create duplicate contract-provided dialysis capacity. An 
independent evaluation of the four-pilot program will give the 
Committee the opportunity to consider the findings and 
determine if such findings justify expanding VA-operated 
dialysis clinics.
    Office of Inspector General Findings.--The Committee is 
concerned with past investigations and findings by the Office 
of Inspector General at the Department's healthcare facilities. 
In particular, past findings at the G.V. (Sonny) Montgomery VA 
Medical Center [VAMC] in Jackson, Mississippi, were not 
appropriately resolved and have caused concern among patients 
and families regarding the quality of care and management 
provided at the facility, which is not acceptable. The 
Committee commends the Department for establishing new 
leadership at the Medical Center to make necessary changes, but 
urges the Department to continue to oversee the implementation 
of the corrective action plan at the Jackson VAMC. The 
Committee is hopeful that past issues will not perpetuate 
distrust among the veterans it serves and asks the Department 
to work diligently with VA centers across the country to 
resolve cases of delay, mismanagement and inappropriate 
activity in an expeditious manner.
    The Committee also directs the Secretary to develop a 
process subsequent to any investigations by the Office of 
Inspector General for reviewing progress on findings through 
collaboration with the Office of the Under Secretary for 
Health. Furthermore, the Committee directs the Secretary to 
provide the Committee with a report detailing this process 
within 180 days of enactment of this act.
    Prompt Payment Rule.--The Committee is concerned that fee 
and contract providers continue to be saddled with millions of 
dollars of uncollected payments. The Committee expects the VA 
to adhere to the Prompt Payment Rule which states that the 
period available to an agency to make a timely payment without 
incurring an interest penalty begins on the date of receipt of 
a proper invoice.
    Healthcare Training and Medical Residencies Specific to 
Rural Healthcare.--The Committee believes that the Veterans 
Health Administration would benefit from increased partnerships 
with university medical institutions to promote healthcare 
training and medical residencies specific to rural healthcare. 
The Committee urges the Secretary to increase VA partnerships 
with university medical centers that serve rural and highly 
rural areas, in order to develop courses and programs to better 
train professionals to meet the healthcare needs of veterans 
living in rural and highly rural areas. In addition, the 
Secretary is urged to work with university medical centers in 
these areas to develop continuing education programs to instill 
increased professionalism and opportunities for continuing 
education among rural medical practitioners.
    Drug Diversion.--The Committee is concerned with ensuring 
veterans receive adequate, but not excessive medication. 
Therefore the Committee directs the Department to report on how 
the Department is using new technology platforms and services 
necessary to ensure the dispensation of medication to veterans 
in a safe and transparent way. The report should include, but 
should not be limited to, how the Department currently uses or 
can use a unified information portal administered by the VA 
which would collect and hold critical patient information. The 
assessment should include diversion classifications and 
aberrancy categories. The Committee directs the Department to 
provide this report to the Committees on Appropriations of both 
Houses of Congress, within 90 days of enactment of this act, 
including the feasibility of implementing a pilot program to 
test such technology.
    Major Medical Facility Leases.--The Committee notes that 
legislation is pending before the Senate that would authorize 
major medical facilities leases for a total of 27 VA community 
based outpatient clinics and other facilities. However, some of 
these projects have been awaiting authorization for several 
years due to technical congressional scorekeeping issues. A 
number of the pending clinics are to be located in underserved 
areas of the country, where veterans are forced to either 
travel long distances to access VA medical care or, in some 
cases, to forego treatment. To address the shortfall in VA 
medical care available in these and other areas, the Committee 
urges the VA to move quickly to activate all of the requested 
leases once they are authorized.
    As an interim measure, the Committee has included a 
provision in this act that would permit the transfer of funds 
from VA's Medical Facilities account to the Medical Services 
account to be used to provide contract care services through 
existing authorities for veterans living in the catchment areas 
of the pending clinics until the clinics are activated. This 
provision is in no way intended to replace planned VA clinics 
with contract care service, but is provided to bridge the gap 
in services until the major medical facility leases are 
authorized and the clinics activated. To ensure that the VA 
does not interpret this provision as a blanket endorsement of 
contract care, the language specifies the facilities for which 
the transfer authority is provided.

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2014.................................... $43,597,000,000
Advance appropriations, 2015............................  45,015,527,000
Budget estimate, 2015...................................     367,885,000
House allowance.........................................................
Committee recommendation, 2015..........................     100,000,000
Budget estimate, advance appropriation, 2016............  47,603,202,000
House allowance, advance appropriation, 2016............  47,603,202,000
Committee recommendation, advance appropriation, 2016...  47,603,202,000

                          PROGRAM DESCRIPTION

    The Medical Services account provides for medical services 
of enrolled eligible veterans and certain dependent 
beneficiaries in VA medical centers, VA outpatient clinics, 
contract hospitals, State homes, and outpatient programs on a 
fee basis. Hospital and outpatient care is also provided by the 
private sector for certain dependents and survivors of veterans 
under the civilian health and medical programs for the VA.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2014, the Committee provided an advance 
appropriation of $45,015,527,000 for fiscal year 2015. The 
recommendation for fiscal year 2015 includes an additional 
$100,000,000 instead of $367,885,000 requested by the 
Administration for the Medical Services account. As noted 
previously in the report, the justification accompanying the 
budget request provides few details regarding the data and 
assumptions that were modified in the updated actuarial model 
projection. Absent this data, the Committee cannot accurately 
assess the merits of an additional request. The Committee also 
notes that the Department routinely carries forward significant 
funds from one fiscal year to the next and directs that any 
funding carried forward from fiscal year 2014 be applied to 
unanticipated needs. In addition, the VA has the authority to 
retain co-payments and third-party collections, estimated to 
total $2,456,000,000 in fiscal year 2015.
    The Committee recommendation also includes an advance 
appropriation of $47,603,202,000 for medical services for 
fiscal year 2016. This is $2,587,675,000 above the level for 
fiscal year 2015 and equal to the fiscal year 2016 budget 
request.
    The fiscal year 2015 appropriation includes $7,177,600,000 
for mental healthcare; $132,821,000 for suicide prevention; 
$4,204,500,000 to provide medical care to Afghanistan and Iraq 
war veterans; $237,544,000 for readjustment counseling services 
at Vet Centers; $2,577,000,000 for prosthetics; $403,200,000 in 
gender specific healthcare for women veterans; and 
$1,641,000,000 for specific homeless veterans programs. The 
Committee acknowledges the increase requested by the President 
for these selected programs, but will be closely monitoring 
each quarter to ensure that adequate funding is being allocated 
to VA hospitals to meet rising demand and to reduce wait times.
    Office of Rural Health.--Currently, 3.2 million rural 
veterans are enrolled in the VA system. This represents 36 
percent of the total enrolled veteran population based on the 
2010 U.S. Census. Men and women veterans from geographically 
rural areas make up a disproportionate share of servicemembers 
and comprise approximately 31 percent of the enrolled Operation 
Enduring Freedom and Operation Iraqi Freedom [OEF/OIF] 
veterans; many of whom are returning to their rural 
communities. Through collaborations with other VA program 
offices, Federal partners, State partners, and rural 
communities, the Office of Rural Health [ORH] works to optimize 
the use of available and emerging technologies, establish new 
access points to care, and employ strategies to increase 
healthcare options for all rural veterans. In response to the 
unique needs of rural veterans, in fiscal year 2009 the 
Committee established the Rural Health Initiative with an 
initial investment of $250,000,000. The Committee notes that 
this funding has been incorporated into the VA's base budget, 
and commends the VA for recognizing the needs of rural 
veterans. The Committee maintains its strong support for the 
Office of Rural Health and fully supports the $250,000,000 
estimate for fiscal year 2015.
    Currently, ORH identifies and implements initiatives that 
support rural clinics and rural home-based primary care, 
address barriers to access and quality of healthcare delivery 
in rural areas, develop workforce recruitment and retention 
initiatives, and accelerate and expand telehealth. ORH also 
operates Rural Health Resource Centers and works with Federal 
and non-Federal community partners to share resources and 
expand access to care for rural veterans. To better understand 
future needs and what impacts veterans residing in rural and 
highly rural areas are having on the delivery of VHA's 
healthcare, the Committee expects the VA to assess the growing 
population of rural and highly rural veterans and report back 
to the Committees on Appropriations of both Houses of Congress 
no later than 180 days after enactment of this act, on future 
year requirements for initiatives and programs administered by 
the ORH. The VA must be poised to account for this growing 
population of veterans and to implement new methods to close 
the gap in healthcare in these areas.
    As part of this report, VA shall provide the Committee with 
a summary of full time equivalent [FTE] personnel dedicated to 
ORH and a summary of ORH programs that align with VA Major 
Initiatives and Minor Initiatives in the fiscal year 2015 
request, including any programs addressing the unique needs of 
homeless veterans, minority veterans, and female veterans who 
reside in rural America. Additionally, VA should include 
potential courses of action to amend the current reporting 
construct of the ORH. In particular, the VA should review the 
organizational construct of the U.S. Department of Health and 
Human Services whereby the Office of Rural Health Policy [ORHP] 
reports directly to the Secretary and the head of Health 
Resources and Services Administration [HRSA] and consider 
whether shifting ORH to report directly to the head of VHA is 
advisable.
    VA Recruitment and Retention.--The Committee recognizes 
that staffing recruitment and retention remain a problem for 
primary and specialty care across VHA's system, and is 
particularly a problem at many rural CBOCs. For example, the 
Committee notes the high number of vacant mental health 
provider positions across the VHA system. To help the Committee 
better understand current and potential recruitment and 
retention strategies, the Department is directed to provide to 
the Committees on Appropriations of both Houses of Congress no 
later than 180 days after enactment of this act, a report 
detailing steps VHA has taken to fill healthcare professional 
vacancies, especially in rural areas, and Health Professional 
Shortage Areas with the greatest need. The Committee notes that 
additional flexibilities or legislative authorities may be 
needed to address hard to fill vacancies throughout the Nation. 
For instance, it has been suggested that the Department 
requires authority to requisition Public Health Service 
commissioned personnel for extended periods of time. Therefore, 
the Committee also directs VHA to report on additional 
authorities that would allow VHA to more effectively recruit 
healthcare professionals, and to ensure existing and future VA 
facilities are adequately staffed. To the extent practicable, 
the report should compare private sector and VA compensation 
and benefits of primary care providers and develop potential 
courses of action to address competitive, disparate findings.
    Access to Care.--Hawaii and Alaska present unique 
challenges for VA in delivering timely healthcare. For 
instance, if VA does not provide a particular healthcare 
service within the VHA system, Hawaii and Alaska veterans are 
often directed to fly thousands of miles to a VA hospital 
within the continental United States, regardless of whether 
adequate healthcare may exist within the State through a local 
provider. The Committee remains concerned that the extensive 
travel requirements, coupled with lengthy delays scheduling 
this travel, create unusual hardships on Hawaii and Alaska 
veterans. VA has reported it is making progress in addressing 
these unique problems through the ``Care Closer to Home 
Program.'' The Committee encourages VA to continue these 
efforts and will continue to monitor its progress. Therefore, 
no later than February 1, 2015, (and subsequently thereafter 
with the submission of future budget requests) the Department 
is directed to provide to the Committees on Appropriations of 
both Houses of Congress a report on the number of Hawaii and 
Alaska veterans who were directed to travel to a VA facility in 
another State for medical care in fiscal year and calendar year 
2014; the number of veterans who actually traveled to that 
facility during fiscal and calendar year 2014; and the 
Department's plans and goals for reducing the number of Hawaii 
and Alaska veterans directed to travel to another State for 
medical care in fiscal years 2015 and 2016. In addition, the 
report should describe the criteria used in determining whether 
to purchase medical care for a Hawaii or Alaska veteran within 
their respective States or require the veteran to travel to a 
VA facility in another State to receive that care; a 
description of the medical conditions for which these veterans 
were required to travel out of Hawaii and Alaska; and an 
explanation of why care was not purchased in State. The 
Committee is also concerned about the distances veterans have 
to travel within the State of Alaska to obtain VA care. In its 
report on the ``Care Closer to Home Program,'' the VA is 
requested to provide data on the number of Alaska veterans who 
have traveled by air within the State of Alaska during fiscal 
year 2014 to obtain care at a VA facility, the communities from 
which they traveled, and the facility at which the care was 
provided. The Department is requested to assess whether this 
care could have been provided closer to home through 
partnerships with Community Health Centers, tribal health 
facilities, or other available community providers.
    Access to Care for New Hampshire Veterans.--New Hampshire 
is the only State that does not have a full service VHA 
hospital within the State, which presents a unique challenge 
for VA in delivering timely healthcare. For instance, if VA 
does not provide a particular healthcare service within the 
limited VHA system in New Hampshire, veterans are often 
directed to drive hundreds of miles to a VA hospital in another 
State, regardless of whether adequate healthcare may exist 
within New Hampshire through a local provider. The Committee 
remains concerned that the extensive travel requirements, 
coupled with lengthy delays scheduling this travel, create 
unusual hardships on New Hampshire veterans. The Committee 
therefore encourages VA to explore ways to provide in-State 
access to care for New Hampshire veterans, including care 
through local providers, and directs the Department to provide 
a report to the Committees on Appropriations of both Houses of 
Congress on the number of New Hampshire veterans who were 
directed to travel to a VA facility in another State for 
medical care in fiscal and calendar year 2014; the number of 
veterans who actually traveled to that facility during fiscal 
and calendar year 2014; and the Department's plans and goals 
for reducing the number of New Hampshire veterans directed to 
travel to another State for medical care in fiscal years 2015 
and 2016. In addition, the report should describe the criteria 
used in determining whether to purchase medical care for a New 
Hampshire veteran within the State or require the veteran to 
travel to a VA facility in another State to receive that care; 
a description of the medical conditions for which these 
veterans were required to travel out of New Hampshire, and an 
explanation of why contract care was not provided in New 
Hampshire. This report shall be provided no later than February 
1, 2015, and subsequently thereafter with the submission of 
future budget requests.
    Homeless Veterans.--Between 2010 and 2013, VA and its 
partners have reduced the estimated number of homeless veterans 
by 24 percent. The 2013 ``Point in Time Count'' prepared by the 
Department of Housing and Urban Development estimates that 
there were 57,849 homeless veterans in the U.S. on a single 
night in January 2013. While significant progress has been 
made, more needs to be done. As such, the Committee supports 
the Department's budget estimate of $1,641,000,000 for specific 
homeless veterans programs. The Committee notes that the 
Department has routinely had end-of-year unobligated balances 
in excess of $400,000,0000 in the Medical Services account and 
directs the VA to utilize these balances should additional 
funds be needed.
    In order to better identify the homeless population in 
rural and highly rural areas, the Committee directs the 
Secretary of Veterans Affairs to conduct a comprehensive needs 
assessment of veterans in these areas who are homeless or at 
risk of becoming homeless. This assessment shall also include 
any recommendations the Secretary may have to improve the 
housing stability of these veterans, and to strengthen 
community partnerships in order to achieve these goals. The 
Secretary shall submit this assessment to the Committees on 
Appropriations of both Houses of Congress no later than 
December 31, 2014.
    While the Committee commends the efforts and progress made 
on the VA's goal of ``Getting to Zero,'' the Committee is 
increasingly concerned with the coordination and delivery of 
mental health and employment services to homeless veterans. The 
Committee directs the Department to ensure that veterans 
residing in facilities designated for homeless veterans be 
provided both adequate behavioral counseling and employment 
services in order to facilitate successful readjustment and 
reentry.
    Access Received Closer to Home [ARCH].--The Committee notes 
that the ARCH pilot program has been successful in benefitting 
rural and highly rural veterans in the States in which it 
operates. Current Veteran Integrated Service Network analysis 
demonstrates that more than 90 percent of veterans who received 
primary care services through the ARCH program were 
``completely satisfied'' with the care, and cited significantly 
shortened travel times. According to the VA, however, 
recommendations with respect to the future of the program will 
not be issued until after the end of fiscal year 2014. The 
Committee is concerned that the Project ARCH pilot program 
expires at the end of 2014, and that programs intended to 
replace the types of healthcare and coverage provided by the 
ARCH program will not be fully implemented or mature enough to 
provide substitute care during fiscal year 2015. Project ARCH 
was specifically designed to close gaps in rural areas where VA 
often has no presence. Little information has been provided to 
Congress on how the Department will ensure that veterans 
currently served in the program will not see a lapse in care or 
be forced to travel long distances to receive care. The 
Committee strongly supports Project ARCH, but pending its 
reauthorization has included an Administrative Provision 
directing the Department to utilize existing authorities to 
continue this program at no less than $35,000,000 in fiscal 
year 2015. This level of funding will allow the VA to continue 
the program so that veterans depending on the services provided 
by Project ARCH do not experience any lapse in service until 
follow-on programs are proven adequate. In addition, it will 
provide for the expansion of the program to other rural and 
highly rural areas.
    National Centers for Post-Traumatic Stress Disorder.--The 
Committee remains very concerned with the number of veterans 
suffering from Post-Traumatic Stress Disorder [PTSD]. Over the 
past several years, the Committee has provided funding for 
numerous mental health initiatives to increase healthcare 
services for those suffering from PTSD. Last year, the 
Committee included an additional $3,000,000 for the VA's 
National Centers for Post-Traumatic Stress Disorder to support 
two new programs: a brain tissue bank to facilitate PTSD 
research, and a PTSD outreach program to provide consultation 
and training for VA clinicians and other groups on evidence-
based PTSD treatment. This program would improve access to and 
quality of PTSD treatment for rural veterans that may not be 
near to or otherwise avail themselves of VA PTSD services under 
normal circumstances. The Committee strongly believes these 
programs will keep the National Centers for PTSD on the cutting 
edge and will promulgate research-informed therapies to 
veterans communities at a time of very great need. The 
Committee therefore recommends that the National Centers for 
Post-Traumatic Stress Disorder be funded at no less than the 
fiscal year 2014 level in order to continue this important 
work.
    Post-Traumatic Stress Disorder Study.--The Committee 
understands that new technologies using magnetic resonance 
therapy have successfully treated veterans with PTSD. Recent 
clinical trials and pilot studies have produced promising 
results in the evolution of treatment for PTSD. The Committee 
encourages the VA to report to the Committee about whether it 
uses magnetic resonance therapy to treat PTSD and if not, 
whether it would be appropriate to conduct a study on use of 
the technology.
    Vet Centers.--The Committee recognizes the critical role 
Vet Centers play in helping veterans readjust to civilian life. 
Established by Congress in 1979, Vet Centers provide a broad 
range of counseling, outreach and referral services to combat 
veterans and their families. In fiscal year 2015, the VA 
estimates that it will obligate $237,544,000 to support 300 Vet 
Centers and 80 mobile Vet Centers across the country. This is 
an increase of $16,245,000 over the current estimate for fiscal 
year 2014. While the Committee supports this increase, it 
remains concerned that in many cases the critical services 
provided through Vet Centers and mobile Vet Centers may not be 
readily accessible to all veterans. Moreover, the Committee 
understands that many centers are operating at full capacity 
and cannot meet emerging needs. As such, the Committee urges 
the VA to formulate a multiyear plan to expand the Vet Center 
program to include, but not be limited to, efforts to deploy 
additional mobile Vet Centers.
    Caregivers.--The Committee notes the robust usage of the 
post-9/11 Caregiver Program, with its more than 14,000 approved 
applications, as well as the consistent reviews by caregiver 
families noting that the program's stipend, respite care, 
formal training and support structure are critical components 
to its success. Given the demonstrated success of the program, 
the Committee encourages the VA to ensure that the caregiver 
coordinators at each VA medical center are fully resourced and, 
to the maximum extent possible, assigned designated caregiver 
duties as their chief responsibility. In addition, the 
Committee encourages the VA to examine expansion of the program 
beyond the post-9/11 population. Noting the conclusions of the 
recent RAND Military Caregivers Study indicating the 
significant hardship borne by those caring for military 
personnel prior to separation, the Committee encourages the 
Department to engage in a lessons-learned dialogue with the 
Department of Defense in order to share best practices.
    The Committee recognizes that many caregivers for severely 
wounded veterans are working dramatically reduced hours outside 
the home or have left the workforce completely, leading to 
financial hardship. This reduction in outside earnings results 
in difficulties meeting financial obligations, including 
student loan debt held by the caregiver. The Committee directs 
the VA to survey all caregivers currently in the program to 
identify the number possessing outstanding student loan debt 
and develop a plan to monitor this issue. The Department is 
directed to report the survey findings to the Committees on 
Appropriations of both Houses of Congress within 120 days of 
enactment of this act.
    Mobile Surgical Units.--Over the past decade, the 
Department has undertaken an effort to modernize its medical 
facilities through new construction and renovation with special 
focus on outdated operating rooms. This capital improvement 
effort has been a crucial part of the effort to assure delivery 
of the highest quality medical care. Often when a VA surgical 
ward undergoes construction, the VA must find alternative ways 
to provide surgical services during the construction phase of 
the project. When other VA surgery-capable medical centers are 
too distant or lack capacity to manage surgical cases from the 
VA medical center under construction, the VA is forced to send 
surgical cases to non-VA medical providers at rates that may 
represent a significant additional expense. Based on the 
limited but positive experience of VA medical centers which 
have opted to lease mobile surgical units to cover these 
surgical cases, the Committee directs the Veterans Integrated 
Service Networks to perform an economic analysis to determine 
whether contracted medical care or the lease or purchase of 
mobile facilities offers the most cost-efficient approach to 
providing care while permanent facilities are under 
construction.
    The Committee encourages the Department to launch pilot 
projects in at least two VISNs that are planning renovation or 
construction projects with the intent of leasing or purchasing 
mobile surgical units through full and open competition. In 
preparing for such pilot projects, the VA should develop 
metrics for a cost-efficiency analysis designed to determine 
for each individual project whether this approach will achieve 
savings for the VA when compared to contracting with local 
medical providers for the same surgical services.
    Orthotics and Prosthetics Workforce.--The Committee is 
concerned about the sustainability of the orthotics and 
prosthetics workforce treating veterans, particularly given an 
aging workforce with imminent retirements as well as a lack of 
availability of advanced degree programs necessary to train new 
professionals. Reports indicate up to 20 percent of the field's 
7,100 clinicians nationwide are either past retirement age or 
within 5 years of retiring. The Committee recognizes the 
contributions made by the VHA's Orthotic and Prosthetic 
Residency Program to provide rotation opportunities through the 
VA system but acknowledges this program alone is inadequate to 
ensure a sustainable workforce for the future, especially in 
light of the skill set necessary to provide the increasingly 
complex, state-of-the-art orthotics and prosthetics care for 
OEF/OIF veterans. The Committee directs the VHA to explore 
cost-effective opportunities to grow the workforce pipeline in 
order to ensure the future orthotic and prosthetic workforce 
required by the Nation's new generation of veterans and report 
findings to the Committee within 180 days of enactment.
    In addition, the Committee encourages the Department to 
work with institutions of higher education to develop 
partnerships for the establishment or expansion of programs of 
advanced degrees in prosthetics and orthotics in order to 
improve and enhance the availability of high quality prosthetic 
and orthotic care for veterans. Any plan should be done in 
consultation with institutions of higher education with 
accredited degree programs in prosthetics and orthotics as well 
as representatives of the prosthetic and orthotic field. Not 
later than 1 year after the date of the enactment of this act, 
the Department is directed to report to the Committees on 
Appropriations of both Houses of Congress on efforts made to 
establish a partnership between the Department and education 
institutions.
    Grants for Transportation of Veterans in Highly Rural 
Areas.--The Committee recognizes that Public Law 111-163, the 
Caregivers and Veterans Omnibus Health Services Act of 2010, 
took a number of meaningful steps to enhance care for veterans, 
including authorization of a grant program that allows State 
veterans agencies and Veterans Service Organizations to provide 
better transportation options for rural veterans seeking care 
at a VA facility. The Committee notes, however, that some VA 
medical centers take an inordinate amount of time to process 
and approve the application of volunteer drivers. The Committee 
is concerned that such delays could lead to veterans that rely 
on such services, especially elderly veterans and those who 
reside in rural areas, to be forced to forgo healthcare 
services. In an effort to address hindrances to recruitment and 
to streamline the approval process, the Committee directs the 
Department to review VHA's regulations concerning 
qualifications recruitment efforts for volunteer drivers.
    Patient Centered Medical Home Initiative.--The Committee 
supports the VA's Patient Centered Medical Home initiative and 
urges the adoption and usage of metrics that will enable the VA 
to monitor outcomes and correct deficiencies. The Committee 
directs the VA to provide quarterly reports for the first year, 
and then annually thereafter, on post-acute and rehabilitation 
outcomes for patients with neurological conditions.
    Veteran Suicide.--The Committee remains concerned about the 
alarming prevalence of suicide among veterans. Therefore, the 
Committee directs the Veterans Health Administration to submit 
a report, not later than 180 days from the date of enactment of 
this act and each year thereafter, to the Committees on 
Appropriations of both Houses of Congress on the number of 
veterans enrolled in the VA system who commit suicide; the 
factors which contribute to the rate of suicide among veterans; 
the method used by veterans to commit suicide; efforts by 
mental health professionals and others to prevent suicide; and 
any pertinent recommendations for legislative changes which 
would assist in addressing this problem. Further, the 
Department is directed to provide a report to the Committee no 
later than 30 days after enactment of this act identifying a 
detailed expenditure plan for all suicide outreach programs.
    Home and Community Based Services [HCBS].--The Committee 
supports the Department's efforts to broaden veterans options 
regarding long-term care support and services. As the average 
age of the veterans being served by the Department increases, 
providing alternative care options that deliver quality 
services and are cost efficient will ease the burden on, and 
the cost associated with, maintaining long term care 
facilities, in addition to providing veterans with increased 
flexibility regarding their care options. The Committee notes 
the positive results of pilot programs such as the Veterans 
Independence Program, a Veterans-Directed, Home and Community 
Based Services grant program administered jointly by the 
Department of Veterans Affairs and the Department of Health and 
Human Services, and encourages enhanced cooperation with the 
Department of Health and Human Services to expand and grow 
these programs. Further, the Committee understands that the VHA 
Central Office has recently begun to take actions to expand 
non-institutional care across the VA system. The Department is 
directed to provide regular updates to the Committee on its 
efforts to rebalance institutional and home and community based 
care, including what metrics have been developed to track VISN 
implementation, as well as those VISNs which are meeting 
national targets and those which are not.
    Further, the Committee directs the Department to submit a 
report to the Committees on Appropriations of both Houses of 
Congress no later than January 1, 2015, on the cost avoidance 
associated with the various non-institutional care programs. 
The report should include the demand for HCBS among the veteran 
population, the number of veterans currently being served, as 
well as the Department's plans to expand the size and scope of 
HCBS. Given the success of current HCBS pilot programs, the 
Department should include an economic analysis of the cost-
effectiveness of growing the existing pilot program, and the 
coordination efforts underway with the Department of Health and 
Human Services. Given that mandatory eligibility for certain 
types of care is associated with disability levels adjudicated 
by the Veterans Benefits Administration, this report should 
offer strategies for streamlining the claims process for 
veterans requiring long-term care.
    Complementary and Alternative Medicine.--The Committee 
recognizes the importance of integrating various methodologies 
into the treatment for veterans. Complementary and alternative 
medicine provide significant additional treatment options for 
those veterans requiring treatment who are not sufficiently 
responsive to medications. Additionally, the Committee 
recognizes that there could be significant cost savings through 
appropriate integration of complementary and alternative 
medicines. Within 180 days of enactment of this act, the 
Department is directed to report to the Committees on 
Appropriations of both Houses of Congress the courses of action 
being taken to integrate complementary and alternative medicine 
into treatment and care provided at VA medical facilities. The 
report should also include a description of what actions the 
Department has taken to work with the Director of the Office of 
Personnel Management to establish the necessary coding for VA 
to hire providers to deliver complementary and alternative 
medicine therapies.
    Community Based Outpatient Clinic Staffing.--The Community 
Based Outpatient Clinic [CBOC] at Wasilla, Alaska, serves a 
significant veteran population in the fastest growing region of 
Alaska. Since its opening, this clinic has been plagued by 
security issues and a series of stressful incidents including 
the suicide of a veteran in the clinic's parking lot. The 
Committee understands that these issues coupled with a lack of 
staffing at the clinic to support a large caseload have 
resulted in staff attrition, including the recent resignation 
of the clinic's only medical provider. While the Department of 
Veterans Affairs may be moving diligently to fill staff 
vacancies using all available incentives, the Committee directs 
the Department to provide to the Committees on Appropriations 
of both Houses of Congress a report no later than February 1, 
2015, on the staffing challenges it has faced at Wasilla from 
the inception of the clinic, the appropriate level of staffing 
in relation to patient loads, and the actions being taken to 
achieve the appropriate level of staffing.
    Assessment of Rural Community-Based Outpatient Clinics.--
Last year, the Committee directed the VA to conduct a full 
assessment of all VA CBOCs in rural and highly rural areas, 
including an assessment of possible expansions and improvements 
needed to meet applicable medical and healthcare related legal 
requirements. The Department is currently undertaking this 
assessment and the Committee looks forward to receiving these 
results this summer.
    Mental Health Provider Training.--The Committee is aware 
that the VA has recently begun to explore options to support 
licensed professional mental health counselors [LPMHCs] and 
marriage and family therapists [MFTs] training programs and 
understands that the Department is planning to incorporate 
these options as part of VHA's expansion of mental health 
training. The Committee supports the decision to implement a 
pilot program in the 2015 academic year and understands that 
VHA is currently consulting on accreditation regarding 
standards and requirements to develop pilot training programs. 
The Committee directs the Department to report to the 
Committees on Appropriations of both Houses of Congress no 
later than 90 days after the enactment of this act on progress 
in establishing this program and the determination of funding 
for trainees. The Committee also notes that VA has made 
progress in disseminating information about LPMHCs and MFTs 
with local VHA human resource staff, and encourages the VA to 
continue to provide educational information so that local VHA 
medical centers understand that LPMHCs and MFTs are eligible 
for employment by VA.
    Radiologic Technologist Accreditation.--The Committee notes 
that in 1995, the American Registry of Radiologic Technologists 
[ARRT] recognized six regional accreditation agencies utilized 
by colleges and universities throughout the United States for 
accreditation. Of those six, the VA chose the Joint Review 
Committee on Education in Radiologic Technology [JRCERT] as the 
required accreditation in order to be hired by the VA. However, 
not all of our Nation's college-based radiography programs are 
certified by JRCERT. The Committee believes the VA's hiring 
policies may not have evolved with industry standards as the VA 
continues to mandate only JRCERT accreditation. Even though 
graduates of other accredited radiography programs take the 
same certification examination as graduates of JRCERT 
accredited programs, they are not eligible for VA employment. 
Non-JRCERT graduates pass the same national boards and complete 
clinical rotations just like JRCERT graduates. The Committee is 
concerned that non-JRCERT graduates cannot get a job at the VA 
when they graduate, despite the fact that they attended 
institutions accredited by a nationally recognized 
organization, especially during a time of shortfalls in the 
VA's health professionals workforce.
    Pharmacy Dispensing Process for Specialized Medicines.--The 
Committee urges the VA to consider a pilot program to study the 
use of specialized automated pharmacy workflow systems that 
manage the entire intravenous and oral liquid dose preparation 
and dispensing process within the VHA in order to promote 
intravenous and oral liquid dose preparation safety, reduce 
waste, and improve health system pharmacy productivity. The 
Committee believes that a pilot program focused on the 
specialized field of intravenous and oral dose preparation 
would improve staffing productivity and patient safety.
    Nursing Handbook.--The Committee understands that the VHA 
Nursing Handbook is currently under review. The Committee 
encourages the VHA to seek input from internal VA program 
offices and external professional stakeholders prior to 
possible regulatory action and submission to the Under 
Secretary for Health for final approval. The Committee believes 
all possible outreach efforts should be used to communicate the 
proposed changes, to gather public comment, and to collaborate 
with Congress, stakeholders, VA nursing staff, and external 
organizations. The Committee also requests that the VHA ensure 
that any changes to handbooks within the VHA do not conflict 
with other handbooks already in place within the VHA.
    Assisted Living Services for Veterans with Traumatic Brain 
Injury.--The Committee urges the Secretary to utilize any 
existing authority the Department has to continue the pilot 
program on assisted living services for veterans with traumatic 
brain injury [TBI]. The extension of this program is critical 
to treating veterans with moderate to severe TBI and increasing 
scientific know-how in treating TBI. The Committee believes the 
program must have more time to demonstrate the effectiveness of 
its ability to treat and assist these veterans, especially 
given that the program did not officially launch until almost 3 
years after it was authorized in 2008.
    Virtual Lifetime Electronic Record Health Exchange.--The 
Virtual Lifetime Electronic Record [VLER] Health Exchange, 
allows VA providers to request and share certain parts of 
veteran health records with the Department of Defense and 
selected private healthcare providers in a secure electronic 
environment. The majority of veterans receive a portion of 
their medical care from non-VA healthcare providers. In order 
eliminate the need for veterans to carry health records between 
providers it is essential that VA have the ability to 
electronically share portions of a veterans health record. The 
VA has piloted this effort in several areas throughout the 
country. The Committee commends this effort and urges the VA to 
continue to expand this capability and to consider prioritizing 
expansion efforts by developing partnerships with State 
designated Regional Health Information Organizations.
    Nursing Quality Improvements.--The Committee maintains a 
longstanding commitment to ensuring that the Nation's veterans 
receive high-quality care, especially in hospital-based 
settings. Studies have shown that when data are collected about 
quality of care and patient outcomes, health, and well-being 
can be improved. The VA has been active in making available 
quality measurements on its ``Hospital Compare'' Web site and 
maintains a nursing-specific quality database for VA 
facilities. The Committee encourages the VA to consider 
expanding this nursing quality effort by participating in a 
national data quality measurement system that uses valid and 
reliable data from all types of inpatient facilities, not just 
those operated by the VA. The Committee understands that 54 VA 
hospitals already participate in such a system and encourages 
wider scale adoption of national quality measurement systems.
    Antimicrobial Stewardship Programs.--The Committee strongly 
supports the VA's efforts to implement antimicrobial 
stewardship programs at all its medical facilities. The 
Committee strongly recommends the VA develop consistent ways to 
collect and analyze data on antibiotic usage, healthcare 
outcomes (such as Clostridium difficile infections), and 
antimicrobial resistance trends in order to evaluate how well 
these programs are improving patient care and reducing 
inappropriate antibiotic use. The Committee also strongly 
encourages the VA to provide antibiotic usage and antimicrobial 
resistance data to the Centers for Disease Control and 
Prevention's National Healthcare Safety Network.
    Open Air Burn Pits Registry.--The Committee is concerned 
over the pace of implementation of the Open Air Burn Pits 
Registry and urges the Secretary to expedite the implementation 
of the registry. The Committee notes that the Department of 
Veterans Affairs has fallen behind on the registry's 
implementation and has not provided sufficient information 
regarding the nature of the delay. Furthermore, the Committee 
urges the Secretary to work with the Committees on 
Appropriations of both Houses of Congress regarding the VA's 
plan to use the data from the burn pits registry to improve the 
diagnosis of illnesses related to exposure to open air burn 
pits, and to effectively treat and care for veterans suffering 
from illnesses related to exposure.
    Safety Needles for Diabetic Veterans.--The Committee is 
concerned that the Department of Veterans Affairs is not 
required to provide Occupational Safety and Health 
Administration [OSHA] compliant safety needles to long-term 
care facilities that provide care to veterans who are diabetic 
and insulin-dependent. However, long-term care facilities are 
required to follow OSHA rules regarding safety needles. The 
Committee believes that in cases where the Department provides 
needles to veterans who are diabetic and insulin-dependent and 
are being cared for at a nursing home facility that is not a VA 
facility, the safety needles should be in compliance with 
regulations promulgated by OSHA for use in providing care to 
such veterans. The Committee directs the Department to provide 
a report to the Committees on Appropriations of both Houses of 
Congress no later than 60 days after enactment of this act 
detailing steps being taken to ensure that diabetic veterans 
who receive long-term care in facilities not operated by the VA 
receive OSHA compliant safety needles.

                     MEDICAL SUPPORT AND COMPLIANCE

Appropriations, 2014....................................  $5,983,000,000
Advance appropriations, 2015............................   5,879,700,000
Budget estimate, advance appropriation, 2016............   6,144,000,000
House allowance, advance appropriation, 2016............   6,144,000,000
Committee recommendation, advance appropriation, 2016...   6,144,000,000

                          PROGRAM DESCRIPTION

    The Medical Support and Compliance account provides funds 
for management, security, and administrative expenses within 
the VA healthcare system, in addition to providing costs 
associated with the operation of VA medical centers and 
clinics, VISN offices, and the VHA Central Office in 
Washington, DC. This appropriation also covers Chief of Staff 
and Facility Director operations, quality of care oversight, 
legal services, billing and coding activities, procurement, 
financial management, security, and human resource management.
    The President's 2015 and 2016 submission for Medical 
Support and Compliance is based on an actuarial analysis 
founded on the current and projected veteran population, 
enrollment projections of demand, and case mix changes 
associated with current veteran patients.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2014, the Committee provided an advance 
appropriation of $5,879,700,000 for fiscal year 2015 for the 
Medical Support and Compliance account. The Committee 
recommendation includes an advance appropriation of 
$6,144,000,000 for Medical support and compliance for fiscal 
year 2016.
    Last year, the Committee provided explicit direction to VHA 
to include detailed budget explanations for several components 
within the Medical Support and Compliance account. While the 
budget justifications accompanying the fiscal year 2015 budget 
and 2016 advance appropriation request did include more detail 
with respect to certain components and offices funded through 
the Medical Support and Compliance account, the Committee 
remains concerned about how these budget requests are developed 
and executed. For instance, the budget justification 
accompanying the fiscal year 2014 budget estimated that VHA 
Central Office would expend $911,000,000 in fiscal year 2014. 
However, this year's budget justification shows the current 
estimate for fiscal year 2014 to be $613,500,000. While the 
Committee notes that VHA's Central Office plays an important 
role in management of a healthcare system the size of VA's, it 
is concerning that year-to-year estimates can vary so 
drastically yet little information is provided as to the reason 
for this wide variance or how funds originally budgeted for 
these functions are being redirected. In order to provide 
greater oversight of budget development and execution, the 
Committee directs the Department to continue to refine the 
accompanying budget justifications and provide detailed budget 
build-outs for those functions that are not developed solely 
through an actuarial model.

                           MEDICAL FACILITIES

Appropriations, 2014....................................  $4,957,000,000
Advance appropriations, 2015............................   4,739,000,000
Budget estimate, 2015...................................................
Committee recommendation, 2015..........................     125,000,000
Budget estimate, advance appropriation, 2016............   4,915,000,000
House allowance, advance appropriation, 2016............   4,915,000,000
Committee recommendation, advance appropriation, 2016...   4,915,000,000

                          PROGRAM DESCRIPTION

    The Medical Facilities account provides funds for the 
operation and maintenance of the VA healthcare system's vast 
capital infrastructure. This appropriation provides for costs 
associated with utilities, engineering, capital planning, 
leases, laundry, groundskeeping, housekeeping, facility repair, 
and property disposition and acquisition.

                        COMMITTEE RECOMMENDATION

    In fiscal year 2014, the Committee provided an advance 
appropriation of $4,739,000,000 for fiscal year 2015 for the 
Medical Facilities account. The Committee recommendation also 
includes an additional $125,000,000 for the Medical Facilities 
account for fiscal year 2015. The Committee remains very 
concerned about the backlog of maintenance needs at existing 
VHA hospitals and clinics and has included this additional 
funding to address this need. Additionally, the Committee 
recommendation includes an advance appropriation of 
$4,915,000,000 for Medical Facilities for fiscal year 2016. 
This is $176,000,000 above the level for fiscal year 2015 and 
equal to the budget request.
    Leases.--The Committee notes that VA leases for outpatient 
clinics have been unacceptably delayed as a result of the 
Congressional Budget Office scoring them as capital leases 
versus operating leases as well as concerns regarding ``opt out 
clauses'' required by the Office of Management and Budget. As a 
result of the new treatment of these leases, the VA has had to 
postpone the opening of several new outpatient clinics. 
Further, current facility leases which are reaching their 
expiration dates may also be in jeopardy of being closed. The 
Committee is very concerned that these delays are having 
detrimental consequences on the delivery of healthcare to 
veterans across the country and could drive future policy 
decisions of how that care is to be delivered to veterans. The 
Committee understands that discussions among VA, the General 
Services Administration, the Office of Management and Budget, 
and the Congressional Budget Office continue. As such the 
Committee directs the Secretary to provide a revised timeline 
including an estimated completion date for every VA facility 
lease impacted by these new requirements.
    Assessment of Rural Community Based Outpatient Clinics.--
The Committee recognizes that many VA rural community-based 
outpatient clinics [CBOCs] are in need of improvements, 
including improvements needed to address population changes, 
adherence with HIPPA privacy requirements, and the Americans 
with Disabilities Act requirements and regulations. The 
Committee directs the VA to conduct a full assessment of all VA 
CBOCs in rural and highly rural areas, including an assessment 
of possible expansions and improvements needed to meet 
applicable medical and healthcare-related legal requirements. 
The VA is directed to report its findings to the Committees on 
Appropriations of both Houses of Congress within 180 days of 
enactment of the act.

                    MEDICAL AND PROSTHETIC RESEARCH

Appropriations, 2014....................................    $585,664,000
Budget estimate, 2015...................................     588,922,000
House allowance.........................................     588,922,000
Committee recommendation................................     588,922,000

                          PROGRAM DESCRIPTION

    The Medical and Prosthetic Research account provides funds 
for medical, rehabilitative, and health services research. 
Medical research supports basic and clinical studies that 
advance knowledge leading to improvements in the prevention, 
diagnosis, and treatment of diseases and disabilities. 
Rehabilitation research focuses on rehabilitation engineering 
problems in the fields of prosthetics, orthotics, adaptive 
equipment for vehicles, sensory aids and related areas. Health 
services research focuses on improving the effectiveness and 
economy of the delivery of health services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $588,922,000 for Medical and 
Prosthetic Research. This is $3,258,000 above the fiscal year 
2014 enacted level and equal to the budget request.
    The Committee remains highly supportive of this program, 
and recognizes its importance both in improving healthcare 
services to veterans and recruiting and retaining high quality 
medical professionals in the Veterans Health Administration.
    Through the Department's research and development program, 
the VA has implemented a comprehensive research agenda to 
develop new treatments and tools for clinicians to ease the 
physical and psychological pain of men and women returning from 
war zones, to improve access to VA healthcare services, and to 
accelerate discoveries and applications, especially for 
neurotrauma, sensory loss, amputation, polytrauma, and related 
prosthetic needs. The Committee encourages the VA to continue 
its research into developing novel approaches to restoring 
veterans with amputation, central nervous system injuries, loss 
of sight or hearing, or other physical and cognitive 
impairments to full and productive lives.
    Post-Traumatic Stress Disorder/Traumatic Brain Injury.--The 
Committee is aware that the VA is conducting innovative 
research on neurological conditions, including the relationship 
between traumatic brain injury [TBI] and Post-Traumatic Stress 
Disorder [PTSD]. Over the past several years, the Committee has 
provided funding for numerous mental health initiatives to 
increase healthcare services for those suffering from TBI and 
PTSD. Recent studies show that 1 of 6 veterans returning from 
war zones and 1 of 4 stroke survivors have symptoms of PTSD. 
The Committee encourages the VA to include stroke survivors in 
its TBI and PTSD research. Including stroke victims in these 
initiatives could help establish a national standard of care 
for survivors of neurological disorders and injuries by 
improving the health and outcomes of this population.
    The Committee also encourages the VA to evaluate the 
effectiveness of prophylactic treatments for TBI involving the 
development of new drugs administered via intranasal 
application. In addition, the VA is encouraged to identify 
opportunities to initiate or expedite clinical trials or 
chronic toxicity studies needed to get these treatments into 
the field faster. Where appropriate, the VA should work with 
FDA and other Federal agencies to prepare accelerated treatment 
protocols.
    Prostate Cancer.--The Committee is aware that prostate 
cancer is the second leading cause of cancer death among men 
and recognizes the promising research activities being 
conducted through the VA's research program. The Committee 
urges the VA to identify opportunities to collaborate and 
coordinate with the Department of Defense and the National 
Cancer Institute on ongoing prostate cancer research efforts to 
accelerate the progress in diagnosis and treatment of prostate 
cancer.
    VA/DOD Research Collaboration.--Military research is 
currently focused on improving and reducing costs for human 
battlefield support and care for injured warfighters. Many of 
these technologies already in use and under development may 
have cross application in the treatment of veterans. 
Particularly promising technologies are under development by 
the Department of Defense and the Department of Veterans 
Affairs, although rarely collaboratively. The Committee 
encourages the Departments to collaborate, including with the 
Defense Centers of Excellence, on research activities that have 
the potential to reduce VA healthcare costs and improve patient 
care.
    Toxic Exposures.--The Committee encourages the VA to 
bolster efforts into research on the residual impact to 
veterans of Agent Orange and other toxic exposures such as oil 
well fires and burn pits.
    Million Veteran Program.--The Committee recognizes the 
growth of diabetes in the country and the burden it places on 
our Nation's veterans. The VA Office of Research and 
Development is doing valuable work through the Million Veteran 
Program to enhance VA's analytical activities in looking at the 
risk for complications of diseases, including diabetes. 
According to VA, there are currently 192,000 participants in 
the program. The Committee urges VA to continue their efforts 
to reach the goal of 1 million participants as having a larger 
cohort of participants will speed up discovery and further 
efforts to promote veterans' health.

                 MEDICAL CARE COST RECOVERY COLLECTIONS

                      MEDICAL CARE COLLECTION FUND

Appropriations, 2014....................................  $2,485,000,000
Budget estimate, 2015...................................   2,456,000,000
House allowance.........................................   2,456,000,000
Committee recommendation................................   2,456,000,000

             MEDICAL CARE COLLECTION FUND--REVENUES APPLIED

Appropriations, 2014.................................... -$2,485,000,000
Budget estimate, 2015...................................  -2,456,000,000
House allowance.........................................  -2,456,000,000
Committee recommendation................................  -2,456,000,000

                          PROGRAM DESCRIPTION

    The Medical Care Collection Fund [MCCF] was established by 
the Balanced Budget Act of 1997 (Public Law 105-33). In fiscal 
year 2004, Public Law 108-199 allowed the Department of 
Veterans Affairs to deposit first-party and pharmacy co-
payments; third-party insurance payments and enhanced-use 
collections; long-term care co-payments; Compensated Work 
Therapy Program collections; and Parking Program fees into the 
MCCF. The Secretary of Veterans Affairs has the authority to 
transfer funds from the MCCF to the Medical services account.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes the authority to 
retain co-payments and third-party collections, estimated to 
total $2,456,000,000 in fiscal year 2015. The Committee remains 
concerned that estimates of revenues collected through the 
Medical Care Collection Fund continue to be overly optimistic 
and urges the VA to provide a contingency plan to ensure the 
provision of healthcare does not suffer should there be a 
failure to meet billing and collection expectations.
    Third Party Billing.--The Committee remains concerned over 
potential discrepancies in the VA's billing process and 
continues to hear from veterans regarding improper billing. 
Additionally, the Committee again this year notes the large 
amount of third party health billings that go uncollected each 
year. The Committee believes that procedures to provide for 
correct billing and prompt collection must improve at the VA. 
Therefore, the Committee directs the Department to submit a 
report to the Committees on Appropriations of both Houses of 
Congress no later than 180 days after the enactment of this act 
identifying the amount of third party health billings that were 
owed to the VA in fiscal year 2014 and the amount collected. 
Additionally, the report should include current efforts 
underway to increase VA's efficiency, accuracy and collection 
process, as well as what management practices are in place to 
provide proper oversight of the billing process so as to 
eliminate unnecessary and duplicative functions.

                    National Cemetery Administration

Appropriations, 2014....................................    $250,000,000
Budget estimate, 2015...................................     256,800,000
House allowance.........................................     256,800,000
Committee recommendation................................     256,800,000

                        ADMINISTRATION OVERVIEW

    The National Cemetery Administration [NCA] was established 
in accordance with Public Law 93-94, the National Cemeteries 
Act of 1973. It has a four-fold mission: to provide for the 
interment in any national cemetery of the remains of eligible 
deceased servicemembers and discharged veterans, together with 
their spouses and certain dependents, and permanently maintain 
their graves; to provide headstones for, and to mark graves of, 
eligible persons in national, State, and private cemeteries; to 
administer the grant program for aid to States in establishing, 
expanding, or improving State veterans cemeteries; and to 
administer the Presidential Memorial Certificate Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $256,800,000 for the National 
Cemetery Administration. This is an increase of $6,800,000 
above the fiscal year 2014 enacted level and equal to the 
budget request.
    The Committee has included bill language to make available 
through September 30, 2016, up to $25,600,000 of the National 
Cemetery Administration appropriation.

                      Departmental Administration

Appropriations, 2014....................................  $7,894,130,000
Budget estimate, 2015...................................   8,116,894,000
House allowance.........................................   8,103,603,000
Committee recommendation................................   8,232,894,000

                        ADMINISTRATION OVERVIEW

    Departmental Administration provides for the administration 
of veterans benefits through the Veterans Benefits 
Administration [VBA], the executive direction of the 
Department, several top level supporting offices, the Board of 
Contract Appeals, and the Board of Veterans Appeals.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $8,232,894,000 for Departmental 
Administration. The amount is composed of $321,591,000 for 
General administration; $99,294,000 for the Board of Veterans 
Appeals; $2,524,254,000 for General operating expenses, 
veterans benefits administration; $3,913,344,000 for 
Information technology systems; $126,411,000 for the Office of 
the Inspector General; $561,800,000 for Construction, major 
projects; $540,200,000 for Construction, minor projects; 
$100,000,000 for Grants for construction of State extended care 
facilities; and $46,000,000 for Grants for the construction of 
State veterans cemeteries.
    Independent Review of Veterans Benefits Administration.--
Over the past year, the Department has implemented a number of 
initiatives specifically aimed at eliminating the claims 
backlog. Two of these initiatives, mandatory overtime and 
adjudicating the oldest claims first have been significant in 
lowering the number of claims in the backlog. However, these 
are temporary measures aimed at dealing with the problem today. 
While the Committee appreciates all of the efforts the 
Department has taken to reduce the backlog, these initiatives 
do not address potential systemic and business process changes 
that may need to be made to protect against a future backlog. 
The Committee believes that now is the time for VBA to be 
planning strategically to position itself for the future. 
Therefore, the Committee directs the Department to enter into a 
contract with the congressionally chartered National Academy of 
Public Administration [NAPA] to ensure that VA has the business 
processes in place to prevent the occurrence of a future 
backlog. The review shall be conducted in consultation with VA 
and its stakeholders and include the following: (1) an 
assessment of VA's current progress in reducing the backlog and 
its preparation for future disability claims processing; (2) 
current business processes and management structures and 
specific changes that need to be made to accommodate increasing 
claim complexity; (3) the identification of specific procedures 
that must transform as VBA migrates to an electronic, paperless 
environment; (4) an identification of future circumstances that 
would likely lead to another backlog; and (5) proposed 
mitigation strategies, including short-term, medium-term, and 
long-term, that VA should utilize to reduce the backlog while 
improving service to veterans and their families. The Academy 
shall submit a final report to the Committees on Appropriations 
of Both Houses of Congress no later than 1 year after the 
Department has contracted with the Academy.
    Appeals Process Strategic Plan.--The Committee directs the 
VA to refresh the Department of Veterans Affairs Strategic Plan 
to Transform the Appeal Process. The refreshed plan shall 
include how the Board of Veterans Appeals intends to improve 
the timeliness and accuracy of appellate decisions and contain 
an explanation of the projection model used by the Board in 
calculating future workload. In addition, the plan should 
include a staffing model that corresponds to the projection 
model to address future workload, and the feasibility and 
advisability of increasing the number of Members serving on the 
Board of Veterans Appeals. The plan should also provide 
descriptions, and objective metrics and performance results, of 
any ongoing or planned initiative designed to speed the 
processing of appeals and improve the accuracy of decisions.

                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2014\1\.................................    $327,591,000
Budget estimate, 2015...................................     321,591,000
House allowance.........................................     306,876,000
Committee recommendation................................     321,591,000

\1\$88,294,000 included in this account in fiscal year 2014 for the 
Board of Veterans Appeals is reflected in the new Board of Veterans 
Appeals account for comparison purposes.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The General Administration account provides funding for the 
Office of the Secretary, six assistant secretaries, and three 
independent staff offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $321,591,000 for General 
Administration. This amount is $6,000,000 below the fiscal year 
2014 enacted level and equal to the budget request.
    The Committee has included bill language to make available 
through September 30, 2016, up to $12,141,000 for General 
Administration. The funding recommendation for each line office 
is provided in the table below.

                         GENERAL ADMINISTRATION
                        [In thousands of dollars]
------------------------------------------------------------------------
                                            Fiscal year
               Department                   2015 budget      Committee
                                              request     recommendation
------------------------------------------------------------------------
Office of the Secretary.................          10,032          10,032
Office of General Counsel...............          80,365          80,365
Office of Management....................          44,098          44,098
Office of Human Resources and                     62,064          62,064
 Administration.........................
Office of Policy and Planning...........          25,009          25,009
Office of Operations, Security, and               17,901          17,901
 Preparedness...........................
Office of Public and Intergovernmental            22,279          22,279
 Affairs................................
Office of Congressional and Legislative            5,969           5,969
 Affairs................................
Office of Acquisition, Logistics and              53,874          53,874
 Construction...........................
                                         -------------------------------
      Total.............................         321,591         321,591
------------------------------------------------------------------------

    Franchise Fund.--The Franchise Fund was established in 1997 
as a pilot program and made permanent in fiscal year 2006 under 
Public Law 109-114. The Committee directs the Department to 
provide a report on the Franchise Fund's business plan for 
fiscal year 2015. This plan should include a list of services, 
customers, overhead expenses, funds collected for services, and 
the unobligated balance from the previous fiscal year. The VA 
shall submit this report to the Committees on Appropriations of 
both Houses of Congress no later than 60 days following 
enactment of this act.
    Outreach to Separating Veterans.--The ability of the VA to 
connect with newly separated veterans is consistently 
identified by both the VA and Veterans Service Organizations as 
a critical challenge. As such, the Committee directs the 
Department to provide to the Committees on Appropriations of 
both Houses of Congress no later than 180 days after enactment 
of this act, a report which includes the following: (1) a 
description of the VA's strategy to use technology, including 
social media, to improve its outreach to new veterans; (2) the 
challenges the VA faces in determining where newly separated 
veterans live once they leave the military; and (3) how the VA 
can partner with Veterans Service Organizations, State 
governments departments of veterans affairs, and other 
nonprofit and community organizations interested in assisting 
veterans transition to civilian life to determine how best to 
successfully connect with new veterans.

                       BOARD OF VETERANS APPEALS

Appropriations, 2014\1\.................................     $88,294,000
Budget estimate, 2015...................................      94,294,000
House allowance.........................................      94,294,000
Committee recommendation................................      99,294,000

\1\Funding for the Board of Veterans Appeals was provided within the 
General Administration account for fiscal year 2014, however, this 
funding is reflected here for comparison purposes.
---------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    As set forth in section 7101(a) of title 38 United States 
Code, the Board of Veterans Appeals is responsible for making 
final decisions on claims for veterans benefits that are 
presented to the Board for appellate review. The vast majority 
of the Board's workload derives from benefit claims initiated 
by the Veterans Benefits Administration's Regional Offices. The 
appellate process has multiple steps, most of which occur at 
the local Regional Office level. If a veteran is not satisfied 
with the Regional Office determination, he or she may appeal to 
the Board for a final agency decision. The Board adjudicates 
appeals covering all areas of veterans benefits, including: 
service connection; increased disability ratings; total 
disability ratings; pensions; insurance benefits; educational 
benefits; home loan guaranties; vocational rehabilitation; 
waivers of indebtedness; fee basis medical care; and dependency 
and indemnity compensation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $99,294,000 for the Board of 
Veterans Appeals, which is $11,000,000 above fiscal year 2014 
enacted level and $5,000,000 above the request. For fiscal year 
2015, the Administration has proposed to fund the Board of 
Veterans Appeals in a new account, separate from the General 
Administration account. The Committee concurs with this 
recommendation. The Committee believes that differences in the 
mission and purpose of the Department's executive offices and 
the activities and direct services to veterans provided by the 
Board of Veterans appeals justify providing funding in two 
separate accounts. Further separating the executive offices and 
the Board will provide the Congress with greater visibility of 
budgetary resources and oversight of expenditures for appellate 
activities.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION

Appropriations, 2014....................................  $2,465,490,000
Budget estimate, 2015...................................   2,494,254,000
House allowance.........................................   2,524,254,000
Committee recommendation................................   2,524,254,000

                          PROGRAM DESCRIPTION

    The General Operating Expenses, Veterans Benefits 
Administration account provides funding for the Veterans 
Benefits Administration to administer entitlement programs such 
as service-connected disability compensation, education 
benefits, and vocational rehabilitation services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,524,254,000 for General 
Operating Expenses, Veterans Benefits Administration, which is 
$58,764,000 above fiscal year 2014 enacted level and 
$30,000,000 above the budget request. The Committee has 
included bill language to make available through September 30, 
2016, up to $124,700,000 for General Operating Expenses, 
Veterans Benefits Administration.
    Claims Processing.--The recommendation includes an 
additional $30,000,000 for the General Operating Expenses, 
Veterans Benefits Administration account. These additional 
resources are to be utilized to hire additional claims and 
support personnel at Regional Offices. The Committee believes 
that the effort to eliminate the backlog through a number of 
initiatives, including mandatory overtime, has highlighted the 
need for additional personnel at Regional Offices. The 
Committee recommendation also directs the VBA, working in 
conjunction with the Office of Policy and Planning, to conduct 
a workforce analysis by Regional Office and to undertake a 
detailed review of VBA's Resources Allocation Model. The 
analysis should be developed in the framework of a multi-year, 
strategic assessment that should include a plan for how to 
measure and incorporate the increasing number of claimed 
conditions and complexity of claims into the systematic 
approach VA utilizes to distribute resources to the Regional 
Offices. VA shall also report on how the National Work Queue 
will be integrated with the Resource Allocation Model. The 
Department is directed to provide this analysis to the 
Committees on Appropriations of both Houses of Congress no 
later than February 2, 2015.
    The Committee continues to believe that quality cannot be 
sacrificed in the pursuit of eliminating the claims backlog. As 
such, the Department must continue the efforts of the Quality 
Review Teams [QRT] in assessing the performance of claims 
processing operations and bridging the gap between local and 
national standards. It is critical that QRTs perform follow-up 
spot audits in Regional Offices that have undergone challenge 
training to ensure that quality standards are being met. 
Additionally, the VA must ensure that all training programs for 
claims processors are routinely followed up with testing and 
monitoring at regular intervals.
    In order to continue to provide better oversight of quality 
reviews and training, bill language is included requiring the 
Secretary to submit quarterly reports which are to include the 
number and results of QRT review audits conducted, corrective 
actions taken to address quality deficiencies, and training 
programs provided. The Committee will utilize this material to 
assess whether the VA's quality control and training programs 
are adequate to ensure both timeliness and accuracy in the 
claims process.
    In addition to the quarterly reports, the Committee directs 
the Department to provide monthly reports to the Committees on 
Appropriations of both Houses of Congress on performance 
measures for each Regional Office, including the number of 
backlogged claims, the average number of days to complete a 
claim, the accuracy rate, and the origination date of the 
oldest claim in each Regional Office's inventory. The report 
may be submitted electronically and in spreadsheet format. Each 
report is due no later than 10 calendar days after the last 
calendar day of the previous month, and that report shall 
reflect the previous month's data. The first report should be 
submitted to the Committees on Appropriations of both Houses of 
Congress no later than 10 days after the first full month of 
enactment of this act and continue for the remainder of fiscal 
year 2015.
    Vocational Rehabilitation and Employment.--The Secretary of 
Veterans Affairs shall conduct an assessment of the Vocational 
Rehabilitation and Employment resource allocation model to 
determine the total number of staff needed across the Regional 
Offices. Further, the Secretary shall obtain information, 
including the time necessary to complete key tasks on the 
Regional Offices approaches to managing their caseloads in 
order to determine an appropriate counselor ratio and identify 
best practices no later than December 31, 2014.
    Rehabilitation and Training for Veterans with Difficult 
Employment Circumstances.--The Committee encourages the VA to 
expand its partnerships with non-profit employment and training 
organizations with experience in assisting veterans with 
difficult employment circumstances, such as prior substance 
abuse or criminal records, to find long-term employment.
    Military Sexual Trauma [MST].--The Committee notes the 
VBA's training initiatives and procedural developments for PTSD 
claims related to MST and encourages the VA to continue to 
publicize benefits veterans may be entitled to as a result of 
MST. The Committee also notes that in recent Congressional 
testimony, the VBA recognized that some victims of sexual 
assault may not have the minimal circumstantial evidence of a 
stressor required in order to schedule a VA examination and to 
request that the examiner provide an opinion as to whether the 
stressor occurred. Within 120 days of enactment of this act, 
the Committee directs the VBA to submit a report on the current 
standard of proof for service-connection under chapter 11 of 
title 38, U.S.C., for covered mental health conditions based on 
military sexual trauma. The VBA shall include in the report any 
recommendations it considers appropriate to improve the 
adjudication of claims for compensation based on MST, including 
recommendations for an appropriate standard of proof for such 
claims if the Secretary considers such recommendations 
advisable and recommendations for legislative action, if 
necessary, to carry out such improvement.
    Disability Progression.--The Committee encourages the 
Department to conduct a study that will analyze data regarding 
the statistical progression of disabilities over time based on 
the Department's historical data of veteran disabilities. The 
study should consider statistics and information related to the 
progressive nature of a service-connected disability, in terms 
of increased impairment of earning capacity caused by the 
disability and whether this data could be utilized to faster 
adjudicate claims for increased compensation from lasting and 
intensifying injuries. The Department is directed to report 
back to the Committee on whether this type of analysis is 
feasible.
    eBenefits.--The Committee commends the VA and DOD with the 
development of the joint eBenefits Web site. The Web site is a 
central location for veterans, servicemembers and their 
families to research, find and access benefits and services to 
which they are entitled. The Committee believes this powerful 
tool could be better utilized to help inform servicemembers and 
veterans by sending an automatic email outlining the benefits 
of filing a Fully Developed Claim and transition assistance 
program curriculum to any servicemember who creates a username 
and password on eBenefits.
    Uniform Mail Processing.--The Committee directs the 
Department to develop a plan to execute a uniform mail 
processing and scanning system throughout the 56 ROs no later 
than 1 year from the date of enactment of this act.
    Individual Placement and Support Counselors.--The Committee 
recognizes that successful transition from active duty to 
civilian life for veterans suffering from mental health 
injuries often requires assistance with their efforts to find 
stable employment. The Committee believes integrating 
individual placement and support services would greatly benefit 
veterans with mental health needs, and complement the 
Department's existing Vocational Rehabilitation and Employment 
program. The Committee directs the Department to provide a 
report to the Committees on Appropriations of both Houses of 
Congress detailing what efforts have been made to implement 
these types of services into existing vocational programs.
    Housing Management Training.--The Committee notes the 
positive return on investment to the taxpayers when veterans 
are trained for management positions in often troubled public 
and federally assisted housing communities. Veterans possess 
unique leadership and management skills that are particularly 
well-suited to this role. The Committee is aware that VA 
participated in a similar program during the 1990s. Consistent 
with government-wide efforts to streamline programs, the 
Committee urges the Department of Veterans Affairs to explore 
ways to coordinate with the Department of Housing and Urban 
Development and the Department of Labor to focus existing 
resources on a comprehensive program for training veterans in 
public and federally assisted housing management, maintenance 
management, occupancy management, financial management, and 
security and drug reduction management.

                     INFORMATION TECHNOLOGY SYSTEMS

Appropriations, 2014....................................  $3,703,344,000
Budget estimate, 2015...................................   3,903,344,000
House allowance.........................................   3,873,768,000
Committee recommendation................................   3,913,344,000

                          PROGRAM DESCRIPTION

    The Information Technology [IT] appropriation, along with 
reimbursements, funds the costs of all IT staff salaries and 
expenses, the operations and maintenance of all existing 
information technology systems, and the development of new 
projects and programs designed to improve the delivery of 
service to veterans. This appropriation also funds the costs 
associated with the Office of Information and Technology, which 
oversees the functions highlighted above.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,913,344,000 for the Information 
Technology Systems account. This amount is $210,000,000 above 
the fiscal year 2014 enacted level and $10,000,000 above the 
budget request. The Committee recommendation includes 
$1,039,000,000 for staff salaries and expenses, $2,343,217,000 
for operation and maintenance of existing programs, and 
$531,127,000 for program development, all according to the 
Department's fiscal year 2015 budget submission.
    The Committee has appropriated the Information Technology 
Systems account as three subaccounts, with funding levels 
consistent with the Department's budget submission. This 
funding structure enhances the Committee's ability to ensure 
that funds are executed in a manner consistent with the 
Department's budget submission. The Committee has provided 
sufficient flexibility within the subaccounts by way of 
authorized carryover amounts and reprogramming authority to 
give the Office of Information Technology as much flexibility 
as possible to accomplish its mission and goals, while ensuring 
proper accountability and oversight. The Committee will 
continue to work with the Department to ensure that the IT 
projects currently underway, as well as the projects planned 
for the future, have the resources the VA needs to make them 
successful.
    The Committee has included bill language that restricts the 
obligation of development funds until the Secretary of Veterans 
Affairs or the Chief Information Officer submits to the 
Committees on Appropriations of both Houses of Congress a 
certification of the amounts, in parts or in full, that will be 
obligated and expended for each development project. Further, 
the Office of Information Technology is directed to provide an 
IT expenditure report, by project, to the Committees on 
Appropriations of both Houses of Congress on a monthly basis.
    Transformation of Claims Processing.--The Committee 
supports the Department's efforts to rapidly transform from an 
antiquated paper-based claims processing system to one that 
utilizes modern technology to process claims. To this end, the 
Committee has fully funded the request for continued 
development and deployment of increased functionality for the 
Veterans Benefits Management System [VBMS]. The Committee has 
increased the IT request by $10,000,000 for additional hardware 
upgrades at Regional Offices to ensure that increased VBMS 
functionality can be supported in the field. The Committee 
directs the Department to submit an expenditure plan for this 
funding within 60 days after enactment of this act. The 
Department is directed to provide quarterly updates to the 
Committee on the implementation of VBMS and to provide details 
of how this implementation has increased the efficiency and 
timeliness of the VBA claims process.
    The chart below reflects the Administration's budget 
request for development projects and includes the Committee 
recommendation for each. This chart will serve as the 
Department's approved list of development projects, and all 
requested changes are subject to the reprogramming guidelines 
as outlined in the accompanying act.

               INFORMATION TECHNOLOGY DEVELOPMENT PROJECTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal year 2015      Committee
               Project                  budget request   recommendation
------------------------------------------------------------------------
Access to Healthcare................             9,686             9,686
Healthcare Efficiency IT Development            10,723            10,723
Electronic Health Record [EHR]                  32,000            32,000
 Interoperability and VLER Health...
VistA Evolution.....................           179,922           179,922
New Models of Care..................            30,551            30,551
Veterans Benefits Management System             63,500            63,500
 [VBMS].............................
Virtual Lifetime Electronic Record              18,600            18,600
 [VLER].............................
Veterans Relationship Management                76,600            76,600
 [VRM]..............................
Health Management Platform..........             5,746             5,746
Other IT Systems Development........           103,799           103,799
                                     -----------------------------------
      Total Development.............           531,127           531,127
------------------------------------------------------------------------

    Electronic Health Records.--On March 24, 2014, under the 
conditions placed on the Department in Public Law 113-76, the 
VA transmitted to the Committee the VistA Evolution Program 
plan which included a roadmap for interoperability with the 
Department of Defense's planned acquisition of a new electronic 
health record. Given the history of program changes to develop 
integrated/interoperable electronic health records between the 
two Departments, the Committee remains cautious about this plan 
and has included bill language limiting the obligation or 
expenditure of funds to 25 percent for the development of the 
VistA Evolution program until certain conditions are met. One 
of these conditions mandates that the Department establish a 
detailed governance structure which establishes a single 
program manager/integrator who will have sole responsibility 
for ensuring that all projects funded under the VistA Evolution 
umbrella meet performance measures and timeline benchmarks and 
are compatible with DOD's current and future electronic health 
record systems. The Committee believes that a clearly defined 
governance structure and a single point of accountability 
within the Department will provide program discipline and 
protect against continuous expansion of scope.
    In addition to the conditions and restriction contained in 
the bill, the Department is directed to provide quarterly 
briefings to the Committees on Appropriations of both Houses of 
Congress regarding schedule, milestones, and obligations. The 
Committee understands that the VA is committed to developing 
VistA Evolution under the Project Management Accountability 
System [PMAS], which is focused on incremental development with 
deliverable milestones every 6 months. Therefore, the quarterly 
briefing should clearly define the 6 month PMAS delivery 
schedule so that the Committees can create a tracking mechanism 
to provide better oversight of whether the Department is 
delivering the functionality laid out in its VistA Evolution 
Program plan.
    Furthermore, the Interagency Program Office shall continue 
to provide the Committees briefings on a quarterly basis 
regarding standards development and how those standards are 
being incorporated by both VA and DOD. In an effort to ensure 
government-wide accountability, the Committee also directs the 
VA in coordination with the DOD to provide the Federal Chief 
Information Officer of the United States with monthly updates 
on progress made by the two Departments to reach 
interoperability and modernize their respective electronic 
health records.
    Electronic Health Record Data Security.--As the VA 
continues its efforts to modernize the current electronic 
health record, the Committee notes that the future system 
should include robust data security measures. In order to 
ensure interoperability with the Department of Defense and to 
protect veterans electronic medical data, the Committee directs 
the Department to report to the Committees on Appropriations of 
both Houses of Congress within 90 days of enactment of this 
act, on the process VA and DOD will follow to establish 
security standards, incorporate security measures, and identify 
or develop relevant technology to secure data as the two 
Departments develop interoperability between current and future 
electronic health record systems.
    Information Technology Exchange Program.--The Committee is 
aware that the Department of Defense recently launched the 
Information Technology Exchange Program [ITEP] which allows for 
the temporary exchange of information technology personnel 
between DOD and the private sector. This program provides a 
unique opportunity for DOD and private sector organizations to 
share best practices and gain a better understanding of each 
other's information technology practices. The Committee 
encourages the VA to evaluate whether a similar program would 
benefit the Department's information technology program and to 
report back to the Committees on Appropriations of both Houses 
of Congress no later than 90 days after enactment of this act 
on the advisability and feasibility of establishing such a 
program within the VA. The report should also include any 
legislative changes that must be made before such a program 
could be established.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2014....................................    $121,411,000
Budget estimate, 2015...................................     121,411,000
House allowance.........................................     122,411,000
Committee recommendation................................     126,411,000

                          PROGRAM DESCRIPTION

    The Office of Inspector General [OIG] was established by 
the Inspector General Act of 1978 and is responsible for the 
audit, investigation, and inspection of all Department of 
Veterans Affairs programs and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $126,411,000 for the Office of 
Inspector General. This is $5,000,000 above the fiscal year 
2014 enacted level and $5,000,000 above the budget request. The 
Committee has included bill language to make available through 
September 30, 2016, up to $12,411,000 for the Office of the 
Inspector General.

                      CONSTRUCTION, MAJOR PROJECTS

Appropriations, 2014....................................    $342,130,000
Budget estimate, 2015...................................     561,800,000
House allowance.........................................     561,800,000
Committee recommendation................................     561,800,000

                          PROGRAM DESCRIPTION

    The Construction, major projects account provides for 
constructing, altering, extending, and improving any of the 
facilities (including parking projects) under the jurisdiction 
or for the use of the VA, including planning, architectural and 
engineering services, needs assessment, and site acquisition 
where the estimated cost of a project is more than the amount 
set forth in 38 U.S.C. 8104(a)(3)(A). Proceeds realized from 
Enhanced Use Lease activities may be deposited into the 
Construction, major projects and Construction, minor projects 
accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $561,800,000 
for the construction of major projects. This is $219,670,000 
above the fiscal year 2014 enacted level and equal to the 
budget request.
    The following table reflects the President's budget request 
for major construction projects and activities, and the 
corresponding Committee recommendations.

                      CONSTRUCTION, MAJOR PROJECTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      Fiscal year 2015      Committee
      Location and description         budget request    recommendation
------------------------------------------------------------------------
Veterans Health Administration
 [VHA]:
    West Los Angeles, California--              35,000            35,000
     Seismic Corrections............
    Long Beach, California--Seismic            101,900           101,900
     Corrections, Mental Health and
     Community Living Center
     Replacements...................
    Canandaigua, New York--Community           122,400           122,400
     Living Center, Outpatient
     Clinic and Domiciliary.........
    San Diego, California--Spinal              187,500           187,500
     Cord Injury and Seismic
     Deficiency Correction..........
    Advance Planning Fund--Various              69,000            69,000
     Locations......................
    Major Construction Staff--                  24,000            24,000
     Various Locations..............
    Claims Analysis--Various                     2,000             2,000
     Locations......................
    Hazardous Waste--Various                     6,000             6,000
     Locations......................
                                     -----------------------------------
      Total, VHA....................           547,800           547,800
                                     ===================================
National Cemetery Administration
 [NCA]:
    Advance Planning Fund...........             2,500             2,500
    NCA Land Acquisition Fund.......             7,500             7,500
                                     -----------------------------------
      Total, NCA....................            10,000            10,000
                                     ===================================
General Administration--Staff                    4,000             4,000
 Offices, Advance Planning Fund.....
                                     ===================================
      Total Construction, Major                561,800           561,800
       Projects.....................
------------------------------------------------------------------------

    Collaborative VA/DOD Medical Facility Projects.--The 
Committee remains supportive of executing collaborative joint 
VA/DOD medical facility projects which are supported and 
approved by both agencies for implementation. The Committee 
notes, however, that none of the four major construction VHA 
projects proposed in the fiscal year 2015 budget submission 
include collaboration with DOD. In fact, the VA's Strategic 
Capital Investment Plan [SCIP] submitted with the fiscal year 
2015 budget request removes a collaborative VA/DOD medical 
facility planned for Wichita, Kansas. The current SCIP did not 
score or rank the project, removing it from consideration to 
attain resources in fiscal year 2015. As such, the Committee 
directs the VA to submit a report, no later than 180 days after 
the enactment of this act, detailing the reasons this project 
was not scored and pulled from consideration in 2015. In 
addition, the report should provide an assessment of 
collaborative VA/DOD projects planned in the SCIP's list of 
Future Years Above-Threshold Potential Projects to include an 
implementation timeline and cost estimate for each project. The 
Committee also encourages the VA to adopt and implement a 5-
year construction plan similar to DOD's annual submission of a 
Future Years Defense Program which details planned construction 
projects by location and funding amount for each of the next 5 
fiscal years.
    VA Medical Center Construction.--The Committee is concerned 
about construction delays, contracting disputes, and cost 
overruns associated with VA's major construction program. 
Currently, major medical center construction projects in 
Denver, Colorado, and Orlando, Florida, are embroiled in 
contracting disputes concerning design changes and delays in 
processing and paying change orders, which have led to cost 
overruns, unacceptable delays in completion of the facilities, 
and potential litigation. The Committee recognizes that 
contracting disputes are a two-way street, and that medical 
advances can require reconfiguration of a hospital design at 
any stage of construction. However, the Committee remains 
concerned about VA's management of these challenging major 
construction projects and urges the VA to explore an 
interagency agreement with the U.S. Army Corps of Engineers to 
conduct a construction design evaluation of currently troubled 
projects, and to implement any recommendations stemming from 
that evaluation on current and future construction projects. 
The Department is directed to report to the Committees on 
Appropriations of both Houses of Congress within 90 days of 
enactment of this act on the feasibility of entering into such 
an agreement with the Corps of Engineers.
    The Committee also urges the VA to re-evaluate the way it 
processes change orders, and to develop and implement a 
management strategy to streamline and expedite the process. The 
Committee directs the Department to provide a report to the 
Committees on Appropriations of both Houses of Congress within 
90 days of enactment of this act describing the actions the 
Department has taken to improve its construction management 
processes.
    Alternative Financing.--The Committee recognizes the need 
for access to high quality veterans healthcare facilities, 
including in rural areas where access to facilities, including 
clinics and hospitals, is more limited. The Committee directs 
the Department of Veterans Affairs to work collaboratively with 
other executive branch agencies with substantial construction 
portfolios, private sector contractors, and other non-
governmental experts, together with the appropriate 
congressional committees, to explore the feasibility of 
employing new funding mechanisms to meet the need for such 
facilities, including but not limited to private development 
lease-back arrangements, and to provide a report on their 
conclusions to the Committee no later than September 30, 2014.
    Facility Construction Prioritization.--The Committee is 
aware that the VA undertakes a complex process each year to 
prioritize all the facility projects that are eligible for 
funding. But the Committee is disturbed that the priorities 
assigned to particular projects have changed from 1 year to the 
next without explanation. The Committee requests that the 
Department prepare each year no later than 30 days after the 
release of the budget request a comprehensive report describing 
the process used to identify that year's project priority 
listing, any changes in methodology or priority criteria, and 
the architectural design elements that must be in place before 
a project is considered ready for the priority list.

                      CONSTRUCTION, MINOR PROJECTS

Appropriations, 2014....................................    $714,870,000
Budget estimate, 2015...................................     495,200,000
House allowance.........................................     495,200,000
Committee recommendation................................     540,200,000

                          PROGRAM DESCRIPTION

    The Construction, Minor Projects account provides for 
constructing, altering, extending, and improving any of the 
facilities (including parking) under the jurisdiction or for 
the use of the VA, including planning, assessment of needs, 
architectural and engineering services, and site acquisition, 
where the estimated cost of a project is equal to or less than 
$10,000,000. Public Law 106-117, the Veterans Millennium Health 
Care and Benefits Act of 1999, gave the VA the authority to 
make capital contributions from minor construction in enhanced-
use leases. Proceeds realized from enhanced-use lease 
activities may be deposited into the Construction, major 
projects and Construction, minor projects accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $540,200,000 for minor 
construction. This is $174,670,000 below the fiscal year 2014 
enacted level and 45,000,000 above the budget request.
    The recommendation includes $424,000,000 for the Veterans 
Health Administration, $60,000,000 for the National Cemetery 
Administration, $11,200,000 for General Administration--Staff 
Offices, and $45,000,000 for the Veterans Benefits 
Administration. The Committee directs the Department to provide 
an expenditure plan within 30 days of enactment of this act for 
the amount appropriated for minor construction.
    The Committee is aware that capital improvement projects at 
VA medical centers may result in a hospital or clinic having to 
find alternatives for delivering care during the duration of 
the renovation or construction project. Depending on the 
alternative chosen, the total cost of the project could be 
affected. For example, the cost of fee care is not built into 
the cost of a renovation or construction project. Conversely, 
if the hospital chooses to provide a temporary solution on the 
hospital grounds, such as a mobile surgical unit, the costs are 
built into the renovation or construction project. Due to the 
limitation of $10,000,000 for minor construction projects, this 
may result in medical centers opting for fee care rather than 
providing a temporary solution at the hospital, regardless of 
whether the temporary solution is more cost effective. 
Therefore, if a business case or cost benefit analysis 
determines that providing a temporary hospital-based solution 
is more cost effective overall, the Secretary may exercise his 
authority to waive the policy that requires temporary solutions 
be built into the cost of the renovation or construction 
project.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Appropriations, 2014....................................     $85,000,000
Budget estimate, 2015...................................      80,000,000
House allowance.........................................      80,000,000
Committee recommendation................................     100,000,000

                          PROGRAM DESCRIPTION

    This account is used to provide grants to assist States in 
acquiring or constructing State home facilities for furnishing 
domiciliary or nursing home care to veterans, and to expand, 
remodel, or alter existing buildings for furnishing 
domiciliary, nursing home, or hospital care to veterans in 
State homes. The grant may not exceed 65 percent of the total 
cost of the project. Public Law 102-585 granted permanent 
authority for this program, and Public Law 106-117 provided 
greater specificity in directing VA to prescribe regulations 
for the number of beds for which grant assistance may be 
furnished. This program has been a successful partnership 
between the States and the VA in meeting the long-term care 
needs of elderly veterans for decades.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $100,000,000 for grants for the 
construction of State extended care facilities. This is 
$20,000,000 above the budget request.
    The Committee recognizes that Public Law 106-117 took an 
important step in directing the Department of Veterans Affairs 
to define regulations for the number of beds for which grants 
may be provided to States. The Committee notes that, although 
this legislation was signed into law 5 years ago, the 
regulations defining ``great, significant, or limited'' unmet 
need have not been updated since implementation. The Committee 
is concerned that by not reforming these requirements, States 
with a small maximum number of State home, nursing home, and 
domiciliary beds will never rate high enough on the Secretary's 
priority funding list to receive new construction grants. As 
such, the Committee directs the Department to conduct a review 
as required under 38 U.S.C. 8134 to examine the criteria for 
determining the formula for unmet need, taking into account 
those States with an overall maximum number of beds allowed of 
fewer than 999 and report to the Committee on the progress made 
in revising this rule no later than 90 days after enactment of 
this act.
    Additionally, the Committee is concerned that the process 
for identifying and prioritizing State veterans home 
construction does not make the best use of available resources 
to meet the current and future needs of the veteran population. 
In particular, efforts toward expanding capacity through new 
facilities are often subordinated to other projects, leaving a 
great unmet need for care. The Department's various funding, 
environmental impact, and land-transfer timelines can be 
impossible for new facility projects to meet, even after being 
identified and prioritized by the program. Moreover, many State 
governments are still recovering from the economic downturn 
sparked by the financial crisis of 2008 and are unable to 
contribute the requisite 35 percent of total construction costs 
needed to obtain Federal matching funds. The Committee urges VA 
to review its process for selecting and awarding State extended 
care grants and to identify ways to make funding more flexible 
to assist States in the construction process. Further, the 
Committee requests a detailed report 60 days after the 
enactment of this act on alternative financing mechanisms to 
ensure that a sufficient number of State veterans homes are 
available to meet the needs of future patients.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Appropriations, 2014....................................     $46,000,000
Budget estimate, 2015...................................      45,000,000
House allowance.........................................      45,000,000
Committee recommendation................................      46,000,000

                          PROGRAM DESCRIPTION

    Public Law 105-368 amended title 38 U.S.C. 2408 and 
established authority to provide aid to States for 
establishment, expansion, and improvement of State veterans 
cemeteries, which are operated and permanently maintained by 
the States. This statutory change increased the maximum Federal 
share from 50 percent to 100 percent in order to fund 
construction costs and the initial equipment expenses when the 
cemetery is established. The States remain responsible for 
providing the land and for paying all costs related to the 
operation and maintenance of the State cemeteries, including 
the costs for subsequent equipment purchases.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $46,000,000 for grants for the 
construction of State veterans cemeteries. This is $1,000,000 
above the budget request.

                       Administrative Provisions


             (INCLUDING TRANSFERS AND RESCISSIONS OF FUNDS)

    Sec. 201. The Committee includes a provision which outlines 
reprogramming authority and responsibilities for the Veterans 
Benefits Administration.
    Sec. 202. The Committee includes a provision which outlines 
reprogramming authority and responsibilities for the Veterans 
Health Administration.
    Sec. 203. The Committee includes a provision which outlines 
the use of funds appropriated for salaries and expenses.
    Sec. 204. The Committee includes a provision mandating that 
only construction funds may be used for land procurement.
    Sec. 205. The Committee includes a provision allowing for 
reimbursements to the Medical services account.
    Sec. 206. The Committee includes a provision allowing for 
payments of prior year obligations.
    Sec. 207. The Committee includes a provision which allows 
for the use of fiscal year 2015 funds for prior year 
obligations.
    Sec. 208. The Committee includes a provision which allows 
for payments from the National Service Life Insurance Fund.
    Sec. 209. The Committee includes a provision which outlines 
the use of funds from enhanced-use lease proceeds.
    Sec. 210. The Committee includes a provision which provides 
for funds for the Office of Resolution Management and the 
Office of Employment Discrimination Complaint Adjudication.
    Sec. 211. The Committee includes a provision which sets a 
limit on new leases without congressional approval.
    Sec. 212. The Committee includes a provision which requires 
disclosure of third-party reimbursement information.
    Sec. 213. The Committee includes a provision which allows 
for the transfer of revenue derived from enhanced-use leases 
into the construction accounts.
    Sec. 214. The Committee includes a provision which outlines 
authorized uses for medical services funds.
    Sec. 215. The Committee includes a provision which allows 
funds in the Medical Care Collection Fund to be transferred 
into the Medical Services and Medical Facilities accounts.
    Sec. 216. The Committee includes a provision which allows 
eligible veterans in the State of Alaska to obtain medical care 
services.
    Sec. 217. The Committee includes a provision which allows 
for the transfer of funds into the construction accounts.
    Sec. 218. The Committee includes a provision which allows 
for outreach and marketing to enroll new veterans.
    Sec. 219. The Committee includes a provision requiring the 
Secretary of Veterans Affairs to submit quarterly financial 
reports on the Veterans Health Administration.
    Sec. 220. The Committee includes a provision outlining 
transfer authority for the Information technology systems 
account.
    Sec. 221. The Committee includes a provision prohibiting 
any funds to be used to contract out any functions performed by 
more than 10 employees without a fair competition process.
    Sec. 222. The Committee includes a provision limiting the 
amount of nonrecurring maintenance funds that can be obligated 
during the last 2 months of the fiscal year.
    Sec. 223. The Committee includes a provision allowing for 
the transfer of funds from certain accounts to the Joint 
Department of Defense/Department of Veterans Affairs Medical 
Facility Demonstration Fund, as authorized by Public Law 111-
84.
    Sec. 224. The Committee includes a provision allowing for 
the transfer of funds from certain advance appropriation 
accounts to the Joint Department of Defense/Department of 
Veterans Affairs Medical Facility Demonstration Fund, as 
authorized by Public Law 111-84.
    Sec. 225. The Committee includes a provision allowing for 
the transfer of certain funds deposited in the Medical Care 
Collections Fund to the Joint Department of Defense/Department 
of Veterans Affairs Medical Facility Demonstration Fund, as 
authorized by Public Law 111-84.
    Sec. 226. The Committee includes a provision directing a 
minimum of $15,000,000 be transferred from Medical Services, 
Medical Support and Compliance, and Medical Facilities to the 
Department of Defense/Department of Veterans Affairs Health 
Care Sharing Incentive Fund, as authorized by section 8111 of 
title 38, United States Code.
    Sec. 227. The Committee includes a provision rescinding 
funds from certain accounts and appropriating additional 
amounts with 2-year authority.
    Sec. 228. The Committee includes a provision requiring 
notification of all bid savings for major construction 
projects.
    Sec. 229. The Committee includes a provision restricting 
scope increases for major construction projects above that 
specified in the original project justification.
    Sec. 230. The Committee includes a provision requiring the 
Department to submit reports relating to the Veterans Benefits 
Administration on claims processing at Regional Offices.
    Sec. 231. The Committee includes a provision limiting the 
funding from the Medical Services and Medical Support and 
Compliance accounts for the VistA Evolution and electronic 
health record interoperability projects.
    Sec. 232. The Committee includes a provision requiring VA 
to notify the Committee 15 days prior to any staff office 
relocations within VA of 25 or more FTE.
    Sec. 233. The Committee includes a provision requiring the 
Secretary to report to the Committee each quarter about any 
single national outreach and awareness marketing campaign 
exceeding $2,000,000.
    Sec. 234. The Committee includes a provision restricting 
funds from being used to close certain medical facilities in 
the absence of a national realignment strategy.
    Sec. 235. The Committee includes a provision prohibiting 
the Department from replacing the current system by which 
diabetes monitoring equipment and supplies are contracted.
    Sec. 236. The Committee includes a provision restricting 
performance bonuses for certain employees of the Veterans 
Health Administration.
    Sec. 237. The Committee includes a provision allowing 
certain amounts to be utilized for contract care in rural and 
highly rural areas.
    Sec. 238. The Committee includes a provision requiring the 
Medical Inspector of the Department of Veterans Affairs to 
submit to Congress a report on the programs and activities of 
the Veterans Health Administration.
    Sec. 239. The Committee includes a provision regarding 
transfers between Medical Facilities and Medical Services 
accounts.
    Sec. 240. The Committee includes a provision allowing the 
Secretary greater authority in personnel matters relating to 
the Senior Executive Service.

                               TITLE III

                            RELATED AGENCIES

                  American Battle Monuments Commission

                          PROGRAM DESCRIPTION

    The American Battle Monuments Commission [ABMC] is 
responsible for the following: the maintenance and construction 
of U.S. monuments and memorials commemorating the achievements 
in battle of our Armed Forces since April 1917 (the date of the 
United States entry into World War I); the erection of 
monuments and markers by U.S. citizens and organizations in 
foreign countries; and the design, construction, and 
maintenance of permanent military cemetery memorials in foreign 
countries. The Commission maintains 24 military memorial 
cemeteries and 31 monuments, memorials, and markers in 15 
countries around the world, including three memorials on U.S. 
soil.

                         SALARIES AND EXPENSES

Appropriations, 2014....................................     $63,200,000
Budget estimate, 2015...................................      70,100,000
House allowance.........................................      75,000,000
Committee recommendation................................      73,285,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends $73,285,000 for the Salaries and 
expenses account. This amount is $10,085,000 above the fiscal 
year 2014 enacted level and $3,185,000 above the budget 
request. The Committee has provided additional funds to support 
ABMC's maintenance program and for ongoing assessment of Clark 
Veterans Cemetery.
    National World War II Museum.--The Committee recognizes the 
contributions that the National World War II Museum in New 
Orleans, Louisiana, has made to informing and educating the 
public on the heroism and sacrifices of America's World War II 
veterans, and encourages ABMC to collaborate with the Museum 
where feasible to honor our fallen heroes and to ensure that 
their stories are made available to the public through 
interpretative and interactive programs to the fullest extent 
possible.

                     FOREIGN CURRENCY FLUCTUATIONS

Appropriations, 2014....................................     $14,100,000
Budget estimate, 2015...................................       1,900,000
House allowance.........................................       1,900,000
Committee recommendation................................       1,900,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends an estimated $1,900,000 for the 
Foreign currency fluctuation account. This amount is equal to 
the budget request.
    The Committee has again included language in the 
accompanying act, as proposed by the administration, that would 
allow funding for this account on a ``such sums as necessary'' 
basis. Funding the account in this manner allows the Commission 
to maintain cemeteries regardless of the volatility of foreign 
currency fluctuations.

           United States Court of Appeals for Veterans Claims


                                OVERVIEW

    The United States Court of Appeals for Veterans Claims was 
established by the Veterans' Judicial Review Act of 1988. The 
Court is an independent judicial tribunal with exclusive 
jurisdiction to review decisions of the Board of Veterans 
Appeals. It has the authority to decide all relevant questions 
of law; interpret constitutional, statutory, and regulatory 
provisions; and determine the meaning or applicability of the 
terms of an action by the Secretary of Veterans Affairs. It is 
authorized to compel action by the Secretary. It is authorized 
to hold unconstitutional or otherwise unlawful and set aside 
decisions, findings, conclusions, rules, and regulations issued 
or adopted by the Secretary of Veterans Affairs, the Board of 
Veterans Appeals, or the Chairman of the Board that are found 
to be arbitrary or capricious. The Court's principal office 
location is Washington, DC; however, it is a national court, 
empowered to sit anywhere in the United States.

                         SALARIES AND EXPENSES

Appropriations, 2014....................................     $35,408,000
Budget estimate, 2015...................................      31,386,000
House allowance.........................................      31,386,000
Committee recommendation................................      34,390,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends $34,390,000 for the U.S. Court of 
Appeals for Veterans Claims. This amount is $1,018,000 below 
the fiscal year 2014 enacted level and $3,004,000 above the 
budget request.

                      Department of Defense--Civil


                       Cemeterial Expenses, Army


                                OVERVIEW

    The Secretary of the Army is responsible for the 
administration, operation and maintenance of Arlington National 
Cemetery and the Soldiers' and Airmen's Home National Cemetery. 
In addition to its principal function as a national cemetery, 
Arlington is the site of approximately 3,000 nonfuneral 
ceremonies each year and has approximately 4 million visitors 
annually.

                         SALARIES AND EXPENSES

Appropriations, 2014....................................     $65,800,000
Budget estimate, 2015...................................      45,800,000
House allowance.........................................      61,881,000
Committee recommendation................................      65,800,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends $65,800,000 for Salaries and 
Expenses. This amount is equal to the fiscal year 2014 enacted 
level and $20,000,000 above the budget request. As it has for 
the past 2 years, the Administration's budget submission for 
the Department of Defense's military construction programs 
contains an Administrative Provision that would allow the 
Secretary of the Army to transfer Army Operations and 
Maintenance [O&M] funds to Arlington National Cemetery [ANC]. 
Army O&M is funded in the Defense Appropriations bill, and 
therefore the Subcommittee on Military Construction and 
Veterans Affairs, and Related Agencies has no jurisdiction over 
the account. The Committee believes that in order to provide 
proper oversight and accountability, ANC's funding should be 
provided within the ANC account and not spread across multiple 
accounts and appropriations bills. Furthermore, the Committee 
is concerned about the requested provision's transparency, and 
Congress' corresponding ability to monitor and provide 
oversight of the use of Army O&M funds at ANC. For these 
reasons, the Committee provides an additional $20,000,000 
within this account and does not provide the requested transfer 
from Army O&M funding. The Committee again urges the 
Administration to provide in future budget submissions the 
appropriate resources within the Cemeterial Expenses, Army, 
Salaries and Expenses account rather than seeking broad 
transfer authority from the Army's Operation and Maintenance 
account.
    Arlington National Cemetery Expansion.--The Committee 
recognizes the unique opportunity to enhance the future burial 
capacity of Arlington National Cemetery [ANC] that the closure 
and relocation of certain current roadways would provide. The 
Committee believes that the modification of the Columbia Pike/
Washington Boulevard interchange, and the realignment of all 
associated utilities, would greatly increase capacity at ANC. 
The Committee believes that this work, which would be conducted 
by Arlington County, Virginia, and the Virginia Department of 
Transportation in concert with Arlington County's realignment 
of Columbia Pike to South Joyce Street, benefits ANC by 
removing all existing barriers to contiguous expansion in the 
area of the former Navy Annex site. The Committee urges the 
Secretary of the Army to provide the Committees on 
Appropriations of both Houses of Congress with an amended 
Master Plan and Navy Annex Area Development Plan, as well as 
the final Memorandum of Understanding between the Army and 
Arlington County, detailing how any land conveyed to the 
Cemetery will be utilized for internments and other Cemetery 
needs.

                      Armed Forces Retirement Home


                               TRUST FUND

Appropriations, 2014....................................     $67,800,000
Budget estimate, 2015...................................      63,400,000
House allowance.........................................      63,400,000
Committee recommendation................................      63,400,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends authority to expend $63,400,000 
from the Armed Forces Retirement Home [AFRH] Trust Fund to 
operate and maintain the Armed Forces Retirement Home--
Washington, DC, and the Armed Forces Retirement Home--Gulfport, 
Mississippi.

                                TITLE IV

                           GENERAL PROVISIONS

    Sec. 401. The Committee includes a provision that prohibits 
the obligation of funds beyond the current fiscal year unless 
expressly so provided.
    Sec. 402. The Committee includes a provision that prohibits 
the use of funds for programs, projects, or activities not in 
compliance with Federal law relating to risk assessment, the 
protection of private property rights, or unfunded mandates.
    Sec. 403. The Committee includes a provision that requires 
pay raises to be absorbed within the levels appropriated.
    Sec. 404. The Committee includes a provision that prohibits 
the use of funds to support or defeat legislation pending 
before Congress.
    Sec. 405. The Committee includes a provision that 
encourages the expansion of E-commerce technologies and 
procedures.
    Sec. 406. The Committee includes a provision that specifies 
the congressional committees that are to receive all reports 
and notifications.
    Sec. 407. The Committee includes a provision that limits 
funds from being transferred from this appropriations measure 
to any instrumentality of the United States Government without 
authority from an appropriations act.
    Sec. 408. The Committee includes a provision regarding the 
posting of congressional reports on agency Web sites.
    Sec. 409. The Committee includes a provision prohibiting 
the use of funds to establish or maintain a computer network 
unless such network blocks the viewing, downloading, and 
exchanging of pornography, except for law enforcement 
investigation, prosecution, or adjudication activities.
    Sec. 410. The Committee includes a provision limiting the 
construction of facilities for the purposes of housing 
individuals detained at Guantanamo Bay, Cuba.
    Sec. 411. The Committee includes a provision prohibiting 
the use of funds to pay for attendance of more than 50 
employees at any single conference outside the United States.
    Sec. 412. The Committee includes a provision requiring 
agencies to report conference spending to the Inspectors 
General and prohibiting the use of funds made available in this 
act for travel and conference expenses not in compliance with 
Office of Management and Budget memorandum M-12-12 dated May 
11, 2012.

                     PROGRAM, PROJECT, AND ACTIVITY

    In fiscal year 2015, for purposes of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (Public Law 99-177) 
or the Balanced Budget and Emergency Deficit Control 
Reaffirmation Act of 1987 (Public Law 100-119), the following 
information provides the definition of the term ``program, 
project, and activity'' for departments, agencies and programs 
under the jurisdiction of the Military Construction and 
Veterans Affairs, and Related Agencies subcommittee. The term 
``program, project, and activity'' shall include the most 
specific level of budget items identified in the Military 
Construction and Veterans Affairs, and Related Agencies 
Appropriations Act, 2015, the House and Senate Committee 
reports, and the conference report and accompanying joint 
explanatory statement of managers of the committee of 
conference.
    If a sequestration order is necessary, in implementing the 
Presidential order, departments, and agencies shall apply any 
percentage reduction required for fiscal year 2014 pursuant to 
the provisions of Public Law 99-177 or Public Law 100-119 to 
all items specified in the justifications submitted to the 
Committees on Appropriations of the Senate and House of 
Representatives in support of the fiscal year 2015 budget 
estimates, as amended, for such departments and agencies, as 
modified by congressional action, and in addition, for the 
Department of Defense, Military Construction, the definition 
shall include specific construction locations as identified in 
the explanatory notes.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports 
accompanying general appropriations bills identify each 
recommended amendment which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.
    The Committee recommends funding for the following programs 
which currently lack authorization:
Title I: Department of Defense
    Military Construction, Army
    Military Construction, Navy and Marine Corps
    Military Construction, Air Force
    Military Construction, Defense-Wide
    Military Construction, Army National Guard
    Military Construction, Air National Guard
    Military Construction, Army Reserve
    Military Construction, Navy Reserve
    Military Construction, Air Force Reserve
    North Atlantic Treaty Organization Security Investment 
Program
    Family Housing Construction, Army
    Family Housing Operation and Maintenance, Army
    Family Housing Construction, Navy and Marine Corps
    Family Housing Operation and Maintenance, Navy and Marine 
Corps
    Family Housing Operation and Maintenance, Air Force
    Family Housing Operation and Maintenance, Defense-Wide
    Department of Defense, Family Housing Improvement Fund
    Chemical Demilitarization Construction, Defense-Wide
    Department of Defense Base Closure Account
Title II: Department of Veterans Affairs
    Veterans Benefits Administration
    Veterans Health Administration
    National Cemetery Administration
    Departmental Administration
Title III: Related Agencies
    American Battle Monuments Commission
    U.S. Court of Appeals for Veterans Claims
    Cemeterial Expenses, Army
    Armed Forces Retirement Home

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on May 22, 2014, 
the Committee ordered favorably reported en bloc a bill (H.R. 
4486) making appropriations for military construction, the 
Department of Veterans Affairs, and related agencies for the 
fiscal year ending September 30, 2015, and for other purposes, 
with an amendment in the nature of a substitute and an original 
bill making appropriations for Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies programs for 
the fiscal year ending September 30, 2015, and for other 
purposes, provided, that the bills be subject to amendment (or 
further amendment) and that the bills be consistent with the 
subcommittee allocations, by a recorded vote of 30-0, a quorum 
being present. The vote was as follows:
        Yeas                          Nays
Chairwoman Mikulski
Mr. Leahy
Mr. Harkin
Mrs. Murray
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Ms. Landrieu
Mr. Reed
Mr. Pryor
Mr. Tester
Mr. Udall
Mrs. Shaheen
Mr. Merkley
Mr. Begich
Mr. Coons
Mr. Shelby
Mr. Cochran
Mr. McConnell
Mr. Alexander
Ms. Collins
Ms. Murkowski
Mr. Graham
Mr. Kirk
Mr. Coats
Mr. Blunt
Mr. Moran
Mr. Hoeven
Mr. Johanns
Mr. Boozman

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    In compliance with this rule, changes in existing law 
proposed to be made by the bill are shown as follows: existing 
law to be omitted is enclosed in black brackets; new matter is 
printed in italic; and existing law in which no change is 
proposed is shown in roman.

                      TITLE 38--VETERANS' BENEFITS


                          CHAPTER 7--EMPLOYEES


                          CHAPTER 7--EMPLOYEES

Sec.
701. Placement of employees in military installations.
     * * * * * * *
[712. Repealed.]
713. Senior Executive Service: removal based on performance.

           *       *       *       *       *       *       *


[Sec. 712. Repealed. Pub. L. 107-103, title V, Sec. 509(a)(1), Dec. 27, 
                    2001, 115 Stat. 997]

Sec. 713. Senior Executive Service: removal based on performance

    (a) In General.--
            (1) Notwithstanding subchapter V of chapter 35 of 
        title 5, subchapter V of chapter 75 of title 5, or any 
        other provision of law, the Secretary may remove any 
        individual who is an employee of the Department from a 
        Senior Executive Service position (as defined in 
        section 3132(a) of title 5) if the Secretary determines 
        the performance of the individual warrants such 
        removal.
            (2) If the Secretary so removes such an individual, 
        the Secretary may--
                    (A) remove the individual from the civil 
                service (as defined in section 2101 of title 
                5); or
                    (B) appoint the individual to a General 
                Schedule position at any grade of the General 
                Schedule the Secretary determines appropriate.
    (b) Notice to Congress.--Not later than 30 days after 
removing an individual from the Senior Executive Service under 
subsection (a), the Secretary shall submit to the Committee on 
Veterans' Affairs of the Senate and the Committee on Veterans' 
Affairs of the House of Representatives notice in writing of 
such removal and the reason for such removal.

                        BUDGETARY IMPACT OF BILL


  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                               Budget authority                 Outlays
                                                         -------------------------------------------------------
                                                            Committee    Amount  in     Committee    Amount  in
                                                           allocation       bill       allocation       bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with the subcommittee
 allocation for 2015: Subcommittee on Military
 Construction and Veterans Affairs, and Related
 Agencies:
    Mandatory...........................................       86,821        86,821        86,519     \1\86,519
    Discretionary.......................................       71,898        71,898        76,447     \1\76,411
        Security........................................        6,559         6,559            NA            NA
        Nonsecurity.....................................       65,339        65,339            NA            NA
Projections of outlays associated with the
 recommendation:
    2015................................................  ............  ............  ............    \2\92,604
    2016................................................  ............  ............  ............        4,856
    2017................................................  ............  ............  ............        3,361
    2018................................................  ............  ............  ............        1,800
    2019 and future years...............................  ............  ............  ............        1,087
Financial assistance to State and local governments for            NA           160            NA            -7
 2015...................................................

----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.


                                                    MILITARY CONSTRUCTION PROJECT LISTING BY LOCATION
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Committee recommendation  compared
                                                                                   House       Committee                with (+ or -)
                   Installation and project                      Budget estimate      allowance      recommendation  -----------------------------------
                                                                                                                      Budget  estimate   House allowance
--------------------------------------------------------------------------------------------------------------------------------------------------------

                            ALASKA

AIR FORCE:
    CLEAR AFS:
        EMERGENCY POWER PLANT FUEL STORAGE....................           11,500            11,500            11,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ALASKA.......................................           11,500            11,500            11,500   ................  ................

                            ARIZONA

NAVY:
    YUMA:
        AVIATION MAINTENANCE AND SUPPORT COMPLEX..............           16,608            16,608            16,608   ................  ................
AIR FORCE:
    LUKE AFB:
        F-35 AIRCRAFT MX HANGAR--SQDN #2......................           11,200            11,200            11,200   ................  ................
        F-35 FLIGHTLINE FILLSTANDS............................           15,600            15,600            15,600   ................  ................
DEFENSE-WIDE:
    FORT HUACHUCA:
        JITC BUILDING 52120 RENOVATION........................            1,871             1,871             1,871   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ARIZONA......................................           45,279            45,279            45,279   ................  ................

                          CALIFORNIA

ARMY:
    CONCORD:
        ACCESS CONTROL POINT..................................            9,900             9,900             9,900   ................  ................
        GENERAL PURPOSE MAINTENANCE SHOP......................            5,300             5,300             5,300   ................  ................
    FORT IRWIN:
        UNMANNED AERIAL VEHICLE HANGAR........................           45,000            45,000            45,000   ................  ................
NAVY:
    BRIDGEPORT:
        E-LMR COMMUNICATIONS TOWERS...........................           16,180            16,180            16,180   ................  ................
    SAN DIEGO:
        STEAM DISTRIBUTION SYSTEM DECENTRALIZATION............           47,110            47,110            47,110   ................  ................
DEFENSE-WIDE:
    CAMP PENDLETON:
        SOF COMM/ELEC MAINTENANCE FACILITY....................           11,841            11,841            11,841   ................  ................
    CORONADO:
        SOF LOGISTICS SUPPORT UNIT 1 OPS FACILITY #1..........           41,740            41,740            41,740   ................  ................
        SOF SUPPORT ACTIVITY OPS FACILITY #2..................           28,600            28,600            28,600   ................  ................
    LEMOORE:
        REPLACE FUEL STORAGE & DISTRIBUTION FAC...............           52,500            52,500            52,500   ................  ................
ARMY RESERVE:
    FRESNO:
        ARMY RESERVE CENTER/AMSA..............................           22,000            22,000            22,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, CALIFORNIA...................................          280,171           280,171           280,171   ................  ................

                           COLORADO

ARMY:
    FORT CARSON:
        AIRCRAFT MAINTENANCE HANGAR...........................           60,000            60,000            60,000   ................  ................
        UNMANNED AERIAL VEHICLE HANGAR........................           29,000            29,000            29,000   ................  ................
DEFENSE-WIDE:
    PETERSON AFB:
        DENTAL CLINIC REPLACEMENT.............................           15,200            15,200            15,200   ................  ................
ARMY RESERVE:
    FORT CARSON:
        TRAINING BUILDING ADDITION............................            5,000             5,000             5,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, COLORADO.....................................          109,200           109,200           109,200   ................  ................

                          CONNECTICUT

AIR NATIONAL GUARD:
    BRADLEY IAP:
        CONSTRUCT C-130 FUEL CELL AND CORROSION CONTR.........           16,306            16,306            16,306   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, CONNECTICUT..................................           16,306            16,306            16,306   ................  ................

                     DISTRICT OF COLUMBIA

NAVY:
    DISTRICT OF COLUMBIA:
        ELECTRONICS SCIENCE AND TECHNOLOGY LABORATORY.........           31,735            31,735            31,735   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, DISTRICT OF COLUMBIA.........................           31,735            31,735            31,735   ................  ................

                            FLORIDA

NAVY:
    JACKSONVILLE:
        MH-60 PARKING APRON...................................            8,583             8,583             8,583   ................  ................
        P-8A RUNWAY THRESHOLDS AND TAXIWAYS...................           21,652            21,652            21,652   ................  ................
    MAYPORT:
        LCS OPERATIONAL TRAINING FACILITY.....................           20,520            20,520            20,520   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, FLORIDA......................................           50,755            50,755            50,755   ................  ................

                            GEORGIA

DEFENSE-WIDE:
    HUNTER ARMY AIRFIELD:
        SOF COMPANY OPERATIONS FACILITY.......................            7,692             7,692             7,692   ................  ................
    ROBINS AFB:
        REPLACE HYDRANT FUEL SYSTEM...........................           19,900            19,900            19,900   ................  ................
AIR FORCE RESERVE:
    ROBINS AFB:
        AFRC CONSOLIDATED MISSION COMPLEX, PH I...............           27,700            27,700            27,700   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GEORGIA......................................           55,292            55,292            55,292   ................  ................

                            HAWAII

ARMY:
    FORT SHAFTER:
        COMMAND AND CONTROL FACILITY (SCIF)...................           96,000            83,000            96,000   ................          +13,000
NAVY:
    KANEOHE BAY:
        FACILITY MODIFICATIONS FOR VMU, MWSD, & CH-53E........           51,182            51,182            51,182   ................  ................
        ROAD AND INFRASTRUCTURE IMPROVEMENTS..................            2,200             2,200             2,200   ................  ................
    PEARL HARBOR:
        SUBMARINE MANEUVERING ROOM TRAINER FACILITY...........            9,698             9,698             9,698   ................  ................
DEFENSE-WIDE:
    JOINT BASE PEARL HARBOR-HICKAM:
        REPLACE FUEL TANKS....................................            3,000             3,000             3,000   ................  ................
        UPGRADE FIRE SUPRESSION & VENTILATION SYS.............           49,900            49,900            49,900   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, HAWAII.......................................          211,980           198,980           211,980   ................          +13,000

                             IOWA

AIR NATIONAL GUARD:
    DES MOINES MAP:
        REMOTELY PILOTED AIRCRAFT AND TARGETING GROUP.........            8,993             8,993             8,993   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, IOWA.........................................            8,993             8,993             8,993   ................  ................

                            KANSAS

AIR FORCE:
    MCCONNELL AFB:
        KC-46A ADAL MOBILITY BAG STRG EXPANSION...............            2,300             2,300             2,300   ................  ................
        KC-46A ADAL REGIONAL MX TNG FACILITY..................           16,100            16,100            16,100   ................  ................
        KC-46A ALTER COMPOSITE MX SHOP........................            4,100             4,100             4,100   ................  ................
        KC-46A ALTER TAXIWAY FOXTROT..........................            5,500             5,500             5,500   ................  ................
        KC-46A FUSELAGE TRAINER...............................            6,400             6,400             6,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KANSAS.......................................           34,400            34,400            34,400   ................  ................

                           KENTUCKY

ARMY:
    FORT CAMPBELL:
        UNMANNED AERIAL VEHICLE HANGAR........................           23,000            23,000            23,000   ................  ................
DEFENSE-WIDE:
    BLUE GRASS ARMY DEPOT:
        AMMUNITION DEMILITARIZATION PH XV.....................           38,715            38,715            38,715   ................  ................
    FORT CAMPBELL:
        SOF SYSTEM INTEGRATION MAINTENANCE OFFICE FAC.........           18,000            18,000            18,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KENTUCKY.....................................           79,715            79,715            79,715   ................  ................

                             MAINE

ARMY NATIONAL GUARD:
    AUGUSTA:
        NATIONAL GUARD RESERVE CENTER.........................           30,000            30,000            30,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MAINE........................................           30,000            30,000            30,000   ................  ................

                           MARYLAND

NAVY:
    ANNAPOLIS:
        CENTER FOR CYBER SECURITY STUDIES BUILDING............          120,112           100,112           120,112   ................          +20,000
    INDIAN HEAD:
        ADVANCED ENERGETICS RESEARCH LAB COMPLEX PH 2.........           15,346            15,346            15,346   ................  ................
    PATUXENT RIVER:
        ATLANTIC TEST RANGE FACILITY..........................            9,860             9,860             9,860   ................  ................
AIR FORCE:
    FORT MEADE:
        CYBERCOM JOINT OPERATIONS CENTER, INCREMENT 2.........          166,000           166,000           166,000   ................  ................
DEFENSE-WIDE:
    FORT MEADE:
        NSAW CAMPUS FEEDERS PHASE 1...........................           54,207            54,207            54,207   ................  ................
        NSAW RECAPITALIZE BUILDING #1/SITE M INC 3............           45,521            45,521            45,521   ................  ................
    JOINT BASE ANDREWS:
        CONSTRUCT HYDRANT FUEL SYSTEM.........................           18,300            18,300            18,300   ................  ................
ARMY NATIONAL GUARD:
    HAVRE DE GRACE:
        NATIONAL GUARD READINESS CENTER.......................           12,400            12,400            12,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MARYLAND.....................................          441,746           421,746           441,746   ................          +20,000

                         MASSACHUSETTS

AIR FORCE:
    HANSCOM AFB:
        DORMITORY (72 RM).....................................           13,500            13,500            13,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MASSACHUSETTS................................           13,500            13,500            13,500   ................  ................

                           MICHIGAN

DEFENSE-WIDE:
    SELFRIDGE ANGB:
        REPLACE FUEL DISTRIBUTION FACILITIES..................           35,100            35,100            35,100   ................  ................
AIR NATIONAL GUARD:
    W. K. KELLOGG REGIONAL AIRPORT:
        RPA BEDDOWN...........................................            6,000             6,000             6,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MICHIGAN.....................................           41,100            41,100            41,100   ................  ................

                          MISSISSIPPI

DEFENSE-WIDE:
    STENNIS:
        SOF APPLIED INSTRUCTION FACILITY......................           10,323            10,323            10,323   ................  ................
        SOF LAND ACQUISITION WESTERN MANEUVER AREA............           17,224            17,224            17,224   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MISSISSIPPI..................................           27,547            27,547            27,547   ................  ................

                            MONTANA

ARMY NATIONAL GUARD:
    HELENA:
        NATIONAL GUARD READINESS CENTER ADD/ALT...............           38,000            38,000            38,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MONTANA......................................           38,000            38,000            38,000   ................  ................

                           NEBRASKA

AIR FORCE:
    OFFUTT AFB:
        USSTRATCOM REPLACEMENT FACILITY--INCR 4...............          180,000           180,000           180,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEBRASKA.....................................          180,000           180,000           180,000   ................  ................

                            NEVADA

NAVY:
    FALLON:
        AIR WING TRAINING FACILITY............................           27,763            27,763            27,763   ................  ................
        FACILITY ALTERATION FOR F-35 TRAINING MISSION.........            3,499             3,499             3,499   ................  ................
AIR FORCE:
    NELLIS AFB:
        F-22 FLIGHT SIMULATOR FACILITY........................           14,000            14,000            14,000   ................  ................
        F-35 AIRCRAFT MX UNIT--4 BAY HANGAR...................           31,000            31,000            31,000   ................  ................
        F-35 WEAPONS SCHOOL FACILITY..........................            8,900             8,900             8,900   ................  ................
DEFENSE-WIDE:
    FALLON:
        SOF TACTICAL GROUND MOB. VEHICLE MAINT FAC............           20,241            20,241            20,241   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEVADA.......................................          105,403           105,403           105,403   ................  ................

                         NEW HAMPSHIRE

AIR NATIONAL GUARD:
    PEASE INTERNATIONAL TRADE PORT:
        KC-46A ADAL AIRFIELD PAVEMENTS & HYDRANT SYST.........            7,100             7,100             7,100   ................  ................
        KC-46A ADAL FUEL CELL BUILDING 253....................           16,800            16,800            16,800   ................  ................
        KC-46A ADAL MAINT HANGAR BUILDING 254.................           18,002            18,002            18,002   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW HAMPSHIRE................................           41,902            41,902            41,902   ................  ................

                          NEW JERSEY

AIR FORCE:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        FIRE STATION..........................................            5,900             5,900             5,900   ................  ................
ARMY RESERVE:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        ARMY RESERVE CENTER...................................           26,000            26,000            26,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW JERSEY...................................           31,900            31,900            31,900   ................  ................

                          NEW MEXICO

DEFENSE-WIDE:
    CANNON AFB:
        SOF SQUADRON OPERATIONS FACILITY (STS)................           23,333            23,333            23,333   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW MEXICO...................................           23,333            23,333            23,333   ................  ................

                           NEW YORK

ARMY:
    FORT DRUM:
        UNMANNED AERIAL VEHICLE HANGAR........................           27,000            27,000            27,000   ................  ................
    U.S. MILITARY ACADEMY:
        CADET BARRACKS, INCR 3................................           58,000            58,000            58,000   ................  ................
ARMY RESERVE:
    MATTYDALE:
        ARMY RESERVE CENTER/AMSA..............................           23,000            23,000            23,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW YORK.....................................          108,000           108,000           108,000   ................  ................

                        NORTH CAROLINA

NAVY:
    CHERRY POINT MARINE CORPS AIR STATION:
        WATER TREATMENT PLANT REPLACEMENT.....................           41,588            41,588            41,588   ................  ................
DEFENSE-WIDE:
    CAMP LEJEUNE:
        LEJEUNE HIGH SCHOOL ADDITION/RENOVATION...............           41,306            41,306            41,306   ................  ................
        SOF INTEL/OPS EXPANSION...............................           11,442            11,442            11,442   ................  ................
    FORT BRAGG:
        SOF BATTALION OPERATIONS FACILITY.....................           37,074            37,074            37,074   ................  ................
        SOF TACTICAL EQUIPMENT MAINTENANCE FACILITY...........            8,000             8,000             8,000   ................  ................
        SOF TRAINING COMMAND BUILDING.........................           48,062            48,062            48,062   ................  ................
    SEYMOUR JOHNSON AFB:
        REPLACE HYDRANT FUEL SYSTEM...........................            8,500             8,500             8,500   ................  ................
AIR FORCE RESERVE:
    SEYMOUR JOHNSON AFB:
        KC-135 TANKER PARKING APRON EXPANSION.................            9,800             9,800             9,800   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NORTH CAROLINA...............................          205,772           205,772           205,772   ................  ................

                         NORTH DAKOTA

ARMY NATIONAL GUARD:
    VALLEY CITY:
        NATIONAL GUARD VEHICLE MAINTENANCE SHOP...............           10,800            10,800            10,800   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NORTH DAKOTA.................................           10,800            10,800            10,800   ................  ................

                           OKLAHOMA

AIR FORCE:
    TINKER AFB:
        KC-46A DEPOT MAINT COMPLEX SPT INFRASTR...............           48,000            48,000            48,000   ................  ................
        KC-46A TWO-BAY DEPOT MX HANGAR........................           63,000            63,000            63,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, OKLAHOMA.....................................          111,000           111,000           111,000   ................  ................

                         PENNSYLVANIA

ARMY:
    LETTERKENNY ARMY DEPOT:
        REBUILD SHOP..........................................           16,000            16,000            16,000   ................  ................
NAVY:
    PHILADELPHIA:
        OHIO REPLACEMENT POWER & PROPULSION FACILITY..........           23,985            23,985            23,985   ................  ................
AIR NATIONAL GUARD:
    WILLOW GROVE ARF:
        RPA OPERATIONS CENTER.................................            5,662             5,662             5,662   ................  ................
NAVY RESERVE:
    PITTSBURGH:
        RESERVE TRAINING CENTER...............................           17,650            17,650            17,650   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, PENNSYLVANIA.................................           63,297            63,297            63,297   ................  ................

                        SOUTH CAROLINA

ARMY:
    FORT JACKSON:
        TRAINEE BARRACKS COMPLEX 3, PH1.......................           52,000            52,000            52,000   ................  ................
NAVY:
    CHARLESTON:
        NUCLEAR POWER OPERATIONAL SUPPORT FACILITY............           35,716            35,716            35,716   ................  ................
DEFENSE-WIDE:
    BEAUFORT:
        REPLACE FUEL DISTIBUTION FACILITIES...................           40,600            40,600            40,600   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, SOUTH CAROLINA...............................          128,316           128,316           128,316   ................  ................

                         SOUTH DAKOTA

DEFENSE-WIDE:
    ELLSWORTH AFB:
        CONSTRUCT HYDRANT SYSTEM..............................            8,000             8,000             8,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, SOUTH DAKOTA.................................            8,000             8,000             8,000   ................  ................

                             TEXAS

AIR FORCE:
    JOINT BASE SAN ANTONIO:
        FIRE STATION..........................................            5,800             5,800             5,800   ................  ................
DEFENSE-WIDE:
    FORT BLISS:
        HOSPITAL REPLACEMENT INCR 6...........................          131,500           201,500           131,500   ................          -70,000
    JOINT BASE SAN ANTONIO:
        MEDICAL CLINIC REPLACEMENT............................           38,300            38,300            38,300   ................  ................
AIR FORCE RESERVE:
    FORT WORTH:
        EOD FACILITY..........................................            3,700             3,700             3,700   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, TEXAS........................................          179,300           249,300           179,300   ................          -70,000

                            VERMONT

ARMY NATIONAL GUARD:
    NORTH HYDE PARK:
        NATIONAL GUARD VEHICLE MAINTENANCE SHOP...............            4,400             4,400             4,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, VERMONT......................................            4,400             4,400             4,400   ................  ................

                           VIRGINIA

ARMY:
    JOINT BASE LANGLEY-EUSTIS:
        TACTICAL VEHICLE HARDSTAND............................            7,700             7,700             7,700   ................  ................
NAVY:
    DAHLGREN:
        MISSILE SUPPORT FACILITY..............................           27,313            27,313            27,313   ................  ................
    NORFOLK:
        EOD CONSOLIDATED OPS & LOGISTICS FACILITIES...........           39,274            39,274            39,274   ................  ................
    PORTSMOUTH:
        SUBMARINE MAINTENANCE FACILITY........................            9,743             9,743             9,743   ................  ................
    QUANTICO:
        AMMUNITION SUPPLY POINT EXPANSION.....................           12,613            12,613            12,613   ................  ................
    YORKTOWN:
        BACHELOR ENLISTED QUARTERS............................           19,152            19,152            19,152   ................  ................
        FAST COMPANY TRAINING FACILITY........................            7,836             7,836             7,836   ................  ................
DEFENSE-WIDE:
    CRANEY ISLAND:
        REPLACE & ALTER FUEL DISTIBUTION FACILITIES...........           36,500            36,500            36,500   ................  ................
    DEF DISTRIBUTION DEPOT RICHMOND:
        REPLACE ACCESS CONTROL POINT..........................            5,700             5,700             5,700   ................  ................
    FORT BELVOIR:
        PARKING LOT...........................................            7,239             7,239             7,239   ................  ................
    JOINT BASE LANGLEY-EUSTIS:
        HOPSITAL ADDITION/CUP REPLACEMENT.....................           41,200            41,200            41,200   ................  ................
    JOINT EXPEDITIONARY BASE LITTLE CREEK--STORY:
        SOF HUMAN PERFORMANCE CENTER..........................           11,200   ................           11,200   ................          +11,200
        SOF INDOOR DYNAMIC RANGE..............................           14,888            14,888            14,888   ................  ................
        SOF MOBILE COMM DET SUPPORT FACILITY..................           13,500            13,500            13,500   ................  ................
    PENTAGON:
        REDUNDANT CHILLED WATER LOOP..........................           15,100            15,100            15,100   ................  ................
ARMY RESERVE:
    FORT LEE:
        TASS TRAINING CENTER..................................           16,000            16,000            16,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, VIRGINIA.....................................          284,958           273,758           284,958   ................          +11,200

                          WASHINGTON

NAVY:
    BREMERTON:
        INTEGRATED WATER TREATMENT SYST. DD 1, 2, & 5.........           16,401            16,401            16,401   ................  ................
    KITSAP:
        EXPLOSIVES HANDLING WHARF #2 (INC)....................           83,778            83,778            83,778   ................  ................
    PORT ANGELES:
        TPS PORT ANGELES FORWARD OPERATING LOCATION...........           20,638            20,638            20,638   ................  ................
    WHIDBEY ISLAND:
        P-8A AIRCRAFT APRON AND SUPPORTING FACILITIES.........           24,390            24,390            24,390   ................  ................
NAVY RESERVE:
    WHIDBEY ISLAND:
        C-40 AIRCRAFT MAINTENANCE HANGAR......................           27,755            27,755            27,755   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WASHINGTON...................................          172,962           172,962           172,962   ................  ................

                           AUSTRALIA

DEFENSE-WIDE:
    GERALDTON:
        COMBINED COMMUNICATIONS GATEWAY GERALDTON.............            9,600             9,600             9,600   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, AUSTRALIA....................................            9,600             9,600             9,600   ................  ................

                        BAHRAIN ISLAND

NAVY:
    SW ASIA:
        P-8A HANGAR...........................................           27,826            27,826            27,826   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, BAHRAIN ISLAND...............................           27,826            27,826            27,826   ................  ................

                            BELGIUM

DEFENSE-WIDE:
    BRUSSELS:
        BRUSSELS ELEMENTARY/HIGH SCHOOL REPLACEMENT...........           41,626            41,626            41,626   ................  ................
        NATO HEADQUARTERS FACILITY............................           37,918            37,918            37,918   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, BELGIUM......................................           79,544            79,544            79,544   ................  ................

                             CUBA

ARMY:
    GUANTANAMO BAY:
        DINING FACILITY.......................................           12,000            12,000            12,000   ................  ................
        HEALTH CLINIC.........................................           11,800            11,800            11,800   ................  ................
DEFENSE-WIDE:
    GUANTANAMO BAY:
        REPLACE FUEL TANK.....................................           11,100            11,100            11,100   ................  ................
        W.T. SAMPSON E/M AND HS CONSOLID/REPLACEMENT..........           65,190            65,190            65,190   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, CUBA.........................................          100,090           100,090           100,090   ................  ................

                           DJIBOUTI

NAVY:
    CAMP LEMONNIER:
        ENTRY CONTROL POINT...................................            9,923             9,923             9,923   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, DJIBOUTI.....................................            9,923             9,923             9,923   ................  ................

                            GERMANY

DEFENSE-WIDE:
    RHINE ORDNANCE BARRACKS:
        MEDICAL CENTER REPLACEMENT INCR 4.....................          259,695           189,695           159,695          -100,000           -30,000
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GERMANY......................................          259,695           189,695           159,695          -100,000           -30,000

                             GUAM

NAVY:
    JOINT REGION MARIANAS:
        GSE SHOPS AT NORTH RAMP...............................           21,880            21,880            21,880   ................  ................
        MWSS FACILITIES AT NORTH RAMP.........................           28,771            28,771            28,771   ................  ................
AIR FORCE:
    JOINT REGION MARIANAS:
        GUAM STRIKE FUEL SYSTEMS MAINT.HANGAR INC 2...........           64,000            64,000            64,000   ................  ................
        PRTC--COMBAT COMM INFRASTR FACILITY...................            3,750             3,750             3,750   ................  ................
        PRTC--RED HORSE LOGISTICS FACILITY....................            3,150             3,150             3,150   ................  ................
        PRTC--SATELLITE FIRE STATION..........................            6,500             6,500             6,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GUAM.........................................          128,051           128,051           128,051   ................  ................

                             JAPAN

ARMY:
    KADENA AB:
        MISSILE MAGAZINE......................................           10,600            10,600            10,600   ................  ................
NAVY:
    IWAKUNI:
        SECURITY MODS DPRI MC167-T (CVW-5 E2D EA-18G).........            6,415             6,415             6,415   ................  ................
    KADENA AB:
        AIRCRAFT MAINT HANGAR ALTERATIONS AND SAP-F...........           19,411            19,411            19,411   ................  ................
    MCAS FUTENMA:
        HANGAR & RINSE FACILITY MODERNIZATIONS................            4,639             4,639             4,639   ................  ................
    OKINAWA:
        LHD PRACTICE SITE IMPROVEMENTS........................           35,685            35,685            35,685   ................  ................
DEFENSE-WIDE:
    MISAWA AB:
        EDGREN HIGH SCHOOL RENOVATION.........................           37,775            37,775            37,775   ................  ................
    OKINAWA:
        KILLIN ELEMENTARY REPLACEMENT/RENOVATION..............           71,481            71,481            71,481   ................  ................
        KUBASAKI HIGH SCHOOL REPLACEMENT/RENOVATION...........           99,420            99,420            99,420   ................  ................
    SASEBO:
        E.J. KING HIGH SCHOOL REPLACEMENT/RENOVATION..........           37,681            37,681            37,681   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, JAPAN........................................          323,107           323,107           323,107   ................  ................

                             SPAIN

NAVY:
    ROTA:
        SHIP BERTHING POWER UPGRADES..........................           20,233            20,233            20,233   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, SPAIN........................................           20,233            20,233            20,233   ................  ................

                        UNITED KINGDOM

AIR FORCE:
    CROUGHTON RAF:
        JIAC CONSOLIDATION--PHASE 1...........................           92,223   ................           92,223   ................          +92,223
                                                               -----------------------------------------------------------------------------------------
          TOTAL, UNITED KINGDOM...............................           92,223   ................           92,223   ................          +92,223

NATO SECURITY INVESTMENT PROGRAM..............................          199,700           199,700           199,700   ................  ................

                     WORLDWIDE CLASSIFIED

DEFENSE-WIDE:
    CLASSIFIED LOCATION:
        SOF SKILLS TRAINING FACILITY..........................           53,073            53,073            53,073   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WORLDWIDE CLASSIFIED.........................           53,073            53,073            53,073   ................  ................

                     WORLDWIDE UNSPECIFIED

ARMY:
    HOST NATION SUPPORT.......................................           33,000            33,000            33,000   ................  ................
    MINOR CONSTRUCTION........................................           25,000            25,000            25,000   ................  ................
    PLANNING AND DESIGN.......................................           18,127            18,127            18,127   ................  ................
NAVY:
    PLANNING AND DESIGN.......................................           33,366            33,366            33,366   ................  ................
    MINOR CONSTRUCTION........................................            7,163             7,163             7,163   ................  ................
    F-35C FACILITY ADDITION AND MODIFICATION..................           16,594            16,594            16,594   ................  ................
    F-35C OPERATIONAL TRAINING FACILITY.......................           22,391            22,391            22,391   ................  ................
AIR FORCE:
    PLANNING AND DESIGN.......................................           10,738            10,738            10,738   ................  ................
    MINOR CONSTRUCTION........................................           22,613            22,613            22,613   ................  ................
DEFENSE-WIDE:
    CONTINGENCY CONSTRUCTION..................................            9,000   ................            9,000   ................           +9,000
    ENERGY CONSERVATION INVESTMENT PROGRAM....................          150,000           150,000           150,000   ................  ................
    PLANNING AND DESIGN:
        DEFENSE-WIDE..........................................           24,425            24,425            24,425   ................  ................
        DEFENSE INFORMATION SYSTEMS AGENCY....................              745               745               745   ................  ................
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION.............           42,387            42,387            42,387   ................  ................
        MISSLE DEFENSE AGENCY.................................           38,704            18,704            38,704   ................          +20,000
        NATIONAL SECURITY AGENCY..............................              599               599               599   ................  ................
        SPECIAL OPERATIONS COMMAND............................           24,197            24,197            24,197   ................  ................
        WASHINGTON HEADQUARTERS SERVICE.......................            1,183             1,183             1,183   ................  ................
        ENERGY CONSERVATION INVESTMENT PROGRAM DESIGN.........           10,000            10,000            10,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, PLANNING AND DESIGN.......................          142,240           122,240           142,240   ................          +20,000

    UNSPECIFIED MINOR CONSTRUCTION:
        DEFENSE-WIDE..........................................            2,700             2,700             2,700   ................  ................
        DEFENSE LOGISTICS AGENCY..............................            5,932             5,932             5,932   ................  ................
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION.............            6,846             6,846             6,846   ................  ................
        MISSILE DEFENSE AGENCY................................            2,000             2,000             2,000   ................  ................
        NATIONAL SECURITY AGENCY..............................            2,994             2,994             2,994   ................  ................
        JOINT CHIEFS OF STAFF.................................            8,581             8,581             8,581   ................  ................
        SPECIAL OPERATIONS COMMAND............................           10,334            10,334            10,334   ................  ................
        DEFENSE HEALTH AGENCY.................................            4,100             4,100             4,100   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, UNSPECIFIED MINOR CONSTRUCTION............           43,487            43,487            43,487   ................  ................

ARMY NATIONAL GUARD:
    PLANNING AND DESIGN.......................................           17,600            17,600            17,600   ................  ................
    MINOR CONSTRUCTION........................................           13,720            13,720            13,720   ................  ................
AIR NATIONAL GUARD:
    PLANNING AND DESIGN.......................................            7,700             7,700             7,700   ................  ................
    MINOR CONSTRUCTION........................................            8,100             8,100             8,100   ................  ................
ARMY RESERVE:
    PLANNING AND DESIGN.......................................            8,337             8,337             8,337   ................  ................
    MINOR CONSTRUCTION........................................            3,609             3,609             3,609   ................  ................
NAVY RESERVE:
    PLANNING AND DESIGN.......................................            2,123             2,123             2,123   ................  ................
    MINOR CONSTRUCTION........................................            4,000             4,000             4,000   ................  ................
AIR FORCE RESERVE:
    PLANNING AND DESIGN.......................................            6,892             6,892             6,892   ................  ................
    MINOR CONSTRUCTION........................................            1,400             1,400             1,400   ................  ................

                     FAMILY HOUSING, ARMY

ILLINOIS:
    ROCK ISLAND:
        FAMILY HOUSING NEW CONSTRUCTION (33 units)............           19,500            19,500            19,500   ................  ................
KOREA:
    CAMP WALKER:
        FAMILIY HOUSING NEW CONSTRUCTION (90 units)...........           57,800            57,800            57,800   ................  ................
PLANNING AND DESIGN...........................................            1,309             1,309             1,309   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, CONSTRUCTION..............................           78,609            78,609            78,609   ................  ................

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           82,686            82,686            82,686   ................  ................
    SERVICES ACCOUNT..........................................            9,108             9,108             9,108   ................  ................
    MANAGEMENT ACCOUNT........................................           46,597            46,597            46,597   ................  ................
    MISCELLANEOUS ACCOUNT.....................................              700               700               700   ................  ................
    FURNISHINGS ACCOUNT.......................................           14,136            14,136            14,136   ................  ................
    LEASING...................................................          112,504           112,504           112,504   ................  ................
    MAINTENANCE OF REAL PROPERTY..............................           65,245            65,245            65,245   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           20,000            20,000            20,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          350,976           350,976           350,976   ................  ................

             FAMILY HOUSING, NAVY AND MARINE CORPS

CONSTRUCTION IMPROVEMENTS.....................................           15,940            15,940            15,940   ................  ................
PLANNING AND DESIGN...........................................              472               472               472   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, CONSTRUCTION..................................           16,412            16,412            16,412   ................  ................

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           71,092            71,092            71,092   ................  ................
    SERVICES ACCOUNT..........................................           18,079            18,079            18,079   ................  ................
    MANAGEMENT ACCOUNT........................................           55,124            55,124            55,124   ................  ................
    MISCELLANEOUS ACCOUNT.....................................              366               366               366   ................  ................
    FURNISHINGS ACCOUNT.......................................           17,881            17,881            17,881   ................  ................
    LEASING...................................................           65,999            65,999            65,999   ................  ................
    MAINTENANCE OF REAL PROPERTY..............................           97,612            97,612            97,612   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           27,876            27,876            27,876   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          354,029           354,029           354,029   ................  ................

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           42,322            42,322            42,322   ................  ................
    MANAGEMENT ACCOUNT........................................           47,834            47,834            47,834   ................  ................
    SERVICES ACCOUNT..........................................           12,709            12,709            12,709   ................  ................
    FURNISHINGS ACCOUNT.......................................           38,543            38,543            38,543   ................  ................
    MISCELLANEOUS ACCOUNT.....................................            1,993             1,993             1,993   ................  ................
    LEASING...................................................           43,651            43,651            43,651   ................  ................
    MAINTENANCE...............................................           99,934            99,934            99,934   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           40,761            40,761            40,761   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          327,747           327,747           327,747   ................  ................

                 FAMILY HOUSING, DEFENSE-WIDE

OPERATION AND MAINTENANCE:
    NATIONAL SECURITY AGENCY:
        UTILITIES.............................................              659               659               659   ................  ................
        FURNISHING............................................              746               746               746   ................  ................
        LEASING...............................................           11,179            11,179            11,179   ................  ................
        MAINTENANCE OF REAL PROPERTY..........................            2,128             2,128             2,128   ................  ................
    DEFENSE INTELLIGENCE AGENCY:
        FURNISHINGS...........................................            3,362             3,362             3,362   ................  ................
        LEASING...............................................           42,083            42,083            42,083   ................  ................
    DEFENSE LOGISTICS AGENCY:
        UTILITIES.............................................              170               170               170   ................  ................
        FURNISHINGS...........................................               20                20                20   ................  ................
        SERVICES..............................................               31                31                31   ................  ................
        MANAGEMENT............................................              378               378               378   ................  ................
        MAINTENANCE OF REAL PROPERTY..........................              344               344               344   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, OPERATION AND MAINTENANCE.................           61,100            61,100            61,100   ................  ................

DOD FAMILY HOUSING IMPROVEMENT FUND...........................            1,662             1,662             1,662   ................  ................

                 BASE REALIGNMENT AND CLOSURE

DOD BASE CLOSURE ACCOUNT......................................          270,085           270,085           380,085          +110,000          +110,000

                   ADMINISTRATIVE PROVISIONS

MILITARY CONSTRUCTION--FISCAL YEAR 2014 (SEC. 127)............  ................          125,000   ................  ................         -125,000
MILITARY CONSTRUCTION--FISCAL YEAR 2015 (SEC. 128)............  ................          245,000   ................  ................         -245,000
ARMY (SEC. 129)...............................................  ................          -79,577   ................  ................          +79,577
42 USC 3374 (SEC. 131)........................................  ................         -100,000   ................  ................         +100,000
NATO SECURITY INVESTMENT PROGRAM (SEC. 130)...................  ................          -25,000   ................  ................          +25,000
MILITARY CONSTRUCTION, ARMY (SEC. 127)........................  ................  ................           60,000           +60,000           +60,000
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD (SEC. 128).........  ................  ................           40,000           +40,000           +40,000
MILITARY CONSTRUCTION, ARMY RESERVE (SEC. 129)................  ................  ................           50,000           +50,000           +50,000
MILITARY CONSTRUCTION, NAVY (SEC. 130)........................  ................  ................          200,000          +200,000          +200,000
MILITARY CONSTRUCTION, AIR FORCE (SEC. 131)...................  ................  ................          100,000          +100,000          +100,000
MILITARY CONSTRUCTION, AIR FORCE RESERVE (SEC. 132)...........  ................  ................           15,000           +15,000           +15,000
RESCISSIONS (SEC. 133)........................................  ................  ................         -423,447          -423,447          -423,447
RESCISSION (SEC. 134).........................................  ................  ................          -50,000           -50,000           -50,000
                                                               -----------------------------------------------------------------------------------------
      TOTAL, ADMINISTRATIVE PROVISIONS........................  ................          165,423            -8,447            -8,447          -173,870

                             RECAP

ARMY..........................................................          539,427           526,427           539,427   ................          +13,000
    RESCISSION................................................  ................          -79,577   ................  ................          +79,577
NAVY AND MARINE CORPS.........................................        1,018,772           998,772         1,018,772   ................          +20,000
    RESCISSION................................................  ................  ................  ................  ................  ................
AIR FORCE.....................................................          811,774           719,551           811,774   ................          +92,223
    RESCISSION................................................  ................  ................  ................  ................  ................
DEFENSE-WIDE..................................................        2,061,890         2,021,690         1,961,890          -100,000           -59,800
    RESCISSION................................................  ................  ................  ................  ................  ................
ARMY NATIONAL GUARD...........................................          126,920           126,920           126,920   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
AIR NATIONAL GUARD............................................           94,663            94,663            94,663   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
ARMY RESERVE..................................................          103,946           103,946           103,946   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
NAVY RESERVE..................................................           51,528            51,528            51,528   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
AIR FORCE RESERVE.............................................           49,492            49,492            49,492   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
NATO..........................................................          199,700           199,700           199,700   ................  ................
    RESCISSION................................................  ................          -25,000   ................  ................          +25,000
CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE..........           38,715            38,715            38,715   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
DOD FAMILY HOUSING IMPROVEMENT FUND...........................            1,662             1,662             1,662   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
HOMEOWNERS ASSISTANCE PROGRAM.................................  ................  ................  ................  ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
FAMILY HOUSING, ARMY..........................................          429,585           429,585           429,585   ................  ................
    CONSTRUCTION..............................................          (78,609)          (78,609)          (78,609)  ................  ................
    OPERATION AND MAINTENANCE.................................         (350,976)         (350,976)         (350,976)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, NAVY AND MARINE CORP..........................          370,441           370,441           370,441   ................  ................
    CONSTRUCTION..............................................          (16,412)          (16,412)          (16,412)  ................  ................
    OPERATION AND MAINTENANCE.................................         (354,029)         (354,029)         (354,029)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, AIR FORCE.....................................          327,747           327,747           327,747   ................  ................
    CONSTRUCTION..............................................  ................  ................  ................  ................  ................
    OPERATION AND MAINTENANCE.................................         (327,747)         (327,747)         (327,747)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, DEFENSE-WIDE..................................           61,100            61,100            61,100   ................  ................
    CONSTRUCTION..............................................  ................  ................  ................  ................  ................
    OPERATION AND MAINTENANCE.................................          (61,100)          (61,100)          (61,100)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
DOD BASE CLOSURE ACCOUNT......................................          270,085           270,085           380,085          +110,000          +110,000
    RESCISSION................................................  ................  ................  ................  ................  ................
42 USC 3374 (SEC. 135)........................................  ................         -100,000   ................  ................         +100,000
ADMINSTRATIVE PROVISIONS......................................  ................          165,423           465,000          +465,000          +299,577
    RESCISSIONS...............................................  ................  ................         -473,447          -473,447          -473,447
                                                               =========================================================================================
      GRAND TOTAL.............................................        6,557,447         6,557,447         6,559,000            +1,553            +1,553
--------------------------------------------------------------------------------------------------------------------------------------------------------


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2014 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2015
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Senate Committee recommendation compared  with (+
                                                                                                                             or -)
               Item                      2014       Budget estimate  House allowance     Committee    --------------------------------------------------
                                    appropriation                                      recommendation        2014
                                                                                                        appropriation   Budget estimate  House allowance
--------------------------------------------------------------------------------------------------------------------------------------------------------
  TITLE I--DEPARTMENT OF DEFENSE

Military construction, Army......       1,104,875          539,427          526,427          539,427         -565,448   ...............         +13,000
Military construction, Navy and         1,629,690        1,018,772          998,772        1,018,772         -610,918   ...............         +20,000
 Marine Corps....................
Military construction, Air Force.       1,052,796          811,774          719,551          811,774         -241,022   ...............         +92,223
Military construction, Defense-         3,445,423        2,061,890        2,021,690        1,961,890       -1,483,533         -100,000          -59,800
 Wide............................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Active components...       7,232,784        4,431,863        4,266,440        4,331,863       -2,900,921         -100,000          +65,423

Military construction, Army               314,740          126,920          126,920          126,920         -187,820   ...............  ...............
 National Guard..................
Military construction, Air                119,800           94,663           94,663           94,663          -25,137   ...............  ...............
 National Guard..................
Military construction, Army               156,560          103,946          103,946          103,946          -52,614   ...............  ...............
 Reserve.........................
Military construction, Navy                29,000           51,528           51,528           51,528          +22,528   ...............  ...............
 Reserve.........................
Military construction, Air Force           45,659           49,492           49,492           49,492           +3,833   ...............  ...............
 Reserve.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Reserve components..         665,759          426,549          426,549          426,549         -239,210   ...............  ...............
                                  ======================================================================================================================
      Total, Military                   7,898,543        4,858,412        4,692,989        4,758,412       -3,140,131         -100,000          +65,423
       construction..............
                                  ======================================================================================================================
North Atlantic Treaty                     199,700          199,700          199,700          199,700   ...............  ...............  ...............
 Organization Security Investment
 Program.........................
Family housing construction, Army          27,408           78,609           78,609           78,609          +51,201   ...............  ...............
Family housing operation and              512,871          350,976          350,976          350,976         -161,895   ...............  ...............
 maintenance, Army...............
Family housing construction, Navy          73,407           16,412           16,412           16,412          -56,995   ...............  ...............
 and Marine Corps................
Family housing operation and              379,444          354,029          354,029          354,029          -25,415   ...............  ...............
 maintenance, Navy and Marine
 Corps...........................
Family housing construction, Air           76,360   ...............  ...............  ...............         -76,360   ...............  ...............
 Force...........................
Family housing operation and              388,598          327,747          327,747          327,747          -60,851   ...............  ...............
 maintenance, Air Force..........
Family housing operation and               55,845           61,100           61,100           61,100           +5,255   ...............  ...............
 maintenance, Defense-Wide.......
Department of Defense Family                1,780            1,662            1,662            1,662             -118   ...............  ...............
 Housing Improvement Fund........
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Family housing......       1,515,713        1,190,535        1,190,535        1,190,535         -325,178   ...............  ...............
                                  ======================================================================================================================
Chemical demilitarization                 122,536           38,715           38,715           38,715          -83,821   ...............  ...............
 construction, Defense-Wide......
Department of Defense Base                451,357          270,085          270,085          380,085          -71,272         +110,000         +110,000
 Closure Account.................
                                  ======================================================================================================================
    ADMINISTRATIVE PROVISIONS

Military Construction--fiscal      ...............  ...............         125,000   ...............  ...............  ...............        -125,000
 year 2014 (Sec. 127)............
Military Construction--fiscal      ...............  ...............         245,000   ...............  ...............  ...............        -245,000
 year 2015 (Sec. 128)............
Military Construction, Army              -200,000   ...............         -79,577   ...............        +200,000   ...............         +79,577
 (rescission) (Sec. 129).........
Military Construction, Navy and           -12,000   ...............  ...............  ...............         +12,000   ...............  ...............
 Marine Corps (rescission).......
Military Construction, Air Force          -39,700   ...............  ...............  ...............         +39,700   ...............  ...............
 (rescission)....................
Military Construction, Defense-           -14,000   ...............  ...............  ...............         +14,000   ...............  ...............
 Wide (rescission)...............
Military Construction, Air                -14,200   ...............  ...............  ...............         +14,200   ...............  ...............
 National Guard (rescission).....
42 USC 3374 (Sec. 131)                    -99,949   ...............        -100,000   ...............         +99,949   ...............        +100,000
 (rescission)....................
NATO Security Investment Program   ...............  ...............         -25,000   ...............  ...............  ...............         +25,000
 (rescission) (Sec. 130).........
Military construction, Army (Sec.  ...............  ...............  ...............          60,000          +60,000          +60,000          +60,000
 127)............................
Military construction, Army        ...............  ...............  ...............          40,000          +40,000          +40,000          +40,000
 National Guard (Sec. 128).......
Military construction, Army        ...............  ...............  ...............          50,000          +50,000          +50,000          +50,000
 Reserve (Sec. 129)..............
Military construction, Navy (Sec.  ...............  ...............  ...............         200,000         +200,000         +200,000         +200,000
 130)............................
Military construction, Air Force   ...............  ...............  ...............         100,000         +100,000         +100,000         +100,000
 (Sec. 131)......................
Military construction, Air Force   ...............  ...............  ...............          15,000          +15,000          +15,000          +15,000
 Reserve (Sec. 132)..............
Rescissions (Secs. 133)..........  ...............  ...............  ...............        -423,447         -423,447         -423,447         -423,447
Rescission (Secs. 134)...........  ...............  ...............  ...............         -50,000          -50,000          -50,000          -50,000
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Administrative              -379,849   ...............         165,423           -8,447         +371,402           -8,447         -173,870
       Provisions................
          Appropriations.........  ...............  ...............        (370,000)        (465,000)       (+465,000)       (+465,000)        (+95,000)
          Rescissions............       (-379,849)  ...............       (-204,577)       (-473,447)        (-93,598)       (-473,447)       (-268,870)
                                  ======================================================================================================================
      Total, title I, Department        9,808,000        6,557,447        6,557,447        6,559,000       -3,249,000           +1,553           +1,553
       of Defense................
      Appropriations.............     (10,187,849)      (6,557,447)      (6,762,024)      (7,032,447)     (-3,155,402)       (+475,000)       (+270,423)
      Rescissions................       (-379,849)  ...............       (-204,577)       (-473,447)        (-93,598)       (-473,447)       (-268,870)
                                  ======================================================================================================================
 TITLE II--DEPARTMENT OF VETERANS
             AFFAIRS

 Veterans Benefits Administration

Compensation and pensions........      71,476,104       78,687,709       78,687,709       78,687,709       +7,211,605   ...............  ...............
Readjustment benefits............      13,135,898       14,761,862       14,761,862       14,761,862       +1,625,964   ...............  ...............
Veterans insurance and                     77,567           63,257           63,257           63,257          -14,310   ...............  ...............
 indemnities.....................

Veterans housing benefit program
 fund:
    (Indefinite).................  ...............  ...............  ...............  ...............  ...............  ...............  ...............
    (Limitation on direct loans).            (500)            (500)            (500)            (500)  ...............  ...............  ...............
    Administrative expenses......         158,430          160,881          160,881          160,881           +2,451   ...............  ...............
Vocational rehabilitation loans                 5               10               10               10               +5   ...............  ...............
 program account.................
    (Limitation on direct loans).          (2,500)          (2,877)          (2,877)          (2,877)           (+377)  ...............  ...............
    Administrative expenses......             354              361              361              361               +7   ...............  ...............
Native American veteran housing             1,109            1,130            1,130            1,130              +21   ...............  ...............
 loan program account............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Veterans Benefits         84,849,467       93,675,210       93,675,210       93,675,210       +8,825,743   ...............  ...............
       Administration............
                                  ======================================================================================================================
  Veterans Health Administration

Medical services:
    Advance from prior year......     (43,557,000)     (45,015,527)     (45,015,527)     (45,015,527)     (+1,458,527)  ...............  ...............
    Current year request.........          40,000          367,885   ...............         100,000          +60,000         -267,885         +100,000
    Advance appropriation, fiscal      45,015,527       47,603,202       47,603,202       47,603,202       +2,587,675   ...............  ...............
     year 2016...................
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................      45,055,527       47,971,087       47,603,202       47,703,202       +2,647,675         -267,885         +100,000

Medical support and compliance:
    Advance from prior year......      (6,033,000)      (5,879,700)      (5,879,700)      (5,879,700)       (-153,300)  ...............  ...............
    Advance appropriation, fiscal       5,879,700        6,144,000        6,144,000        6,144,000         +264,300   ...............  ...............
     year 2016...................
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................       5,879,700        6,144,000        6,144,000        6,144,000         +264,300   ...............  ...............

Medical facilities:
    Advance from prior year......      (4,872,000)      (4,739,000)      (4,739,000)      (4,739,000)       (-133,000)  ...............  ...............
    Current year request.........          85,000   ...............  ...............         125,000          +40,000         +125,000         +125,000
    Advance appropriation, fiscal       4,739,000        4,915,000        4,915,000        4,915,000         +176,000   ...............  ...............
     year 2016...................
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................       4,824,000        4,915,000        4,915,000        5,040,000         +216,000         +125,000         +125,000

Medical and prosthetic research..         585,664          588,922          588,922          588,922           +3,258   ...............  ...............

Medical care cost recovery
 collections:
    Offsetting collections.......      -2,485,000       -2,456,000       -2,456,000       -2,456,000          +29,000   ...............  ...............
    Appropriations (indefinite)..       2,485,000        2,456,000        2,456,000        2,456,000          -29,000   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................  ...............  ...............  ...............  ...............  ...............  ...............  ...............

DOD-VA Joint Medical Funds (by           (254,257)        (269,366)        (252,366)        (269,366)        (+15,109)  ...............        (+17,000)
 transfer).......................
DOD-VA Health Care Sharing                (15,000)         (15,000)         (15,000)         (15,000)  ...............  ...............  ...............
 Incentive Fund (by transfer)....
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Veterans Health           56,344,891       59,619,009       59,251,124       59,476,124       +3,131,233         -142,885         +225,000
       Administration............
          Appropriations.........        (710,664)        (956,807)        (588,922)        (813,922)       (+103,258)       (-142,885)       (+225,000)
          Advance appropriations,     (55,634,227)     (58,662,202)     (58,662,202)     (58,662,202)     (+3,027,975)  ...............  ...............
           fiscal year 2016......
      Advances from prior year        (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
       appropriations............
                                  ======================================================================================================================
 National Cemetery Administration

National Cemetery Administration.         250,000          256,800          256,800          256,800           +6,800   ...............  ...............

   Departmental Administration

General administration...........         327,591          321,591          306,876          321,591           -6,000   ...............         +14,715
Board of Veterans Appeals........          88,294           94,294           94,294           99,294          +11,000           +5,000           +5,000
General operating expenses, VBA..       2,465,490        2,494,254        2,524,254        2,524,254          +58,764          +30,000   ...............
Information technology systems...       3,703,344        3,903,344        3,873,768        3,913,344         +210,000          +10,000          +39,576
Office of Inspector General......         121,411          121,411          122,411          126,411           +5,000           +5,000           +4,000
Construction, major projects.....         342,130          561,800          561,800          561,800         +219,670   ...............  ...............
Construction, minor projects.....         714,870          495,200          495,200          540,200         -174,670          +45,000          +45,000
Grants for construction of State           85,000           80,000           80,000          100,000          +15,000          +20,000          +20,000
 extended care facilities........
Grants for the construction of             46,000           45,000           45,000           46,000   ...............          +1,000           +1,000
 veterans cemeteries.............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Departmental               7,894,130        8,116,894        8,103,603        8,232,894         +338,764         +116,000         +129,291
       Administration............
                                  ======================================================================================================================
    Administrative Provisions

Prior Year rescissions (Sec. 233)        -182,000   ...............         -38,000   ...............        +182,000   ...............         +38,000

           Section 225

Medical services.................       1,400,000        1,400,000        1,400,000        1,400,000   ...............  ...............  ...............
    (Rescission).................      -1,400,000       -1,400,000       -1,400,000       -1,400,000   ...............  ...............  ...............
Medical support and compliance...         100,000          100,000          100,000          100,000   ...............  ...............  ...............
    (Rescission).................        -150,000         -100,000         -100,000         -100,000          +50,000   ...............  ...............
Medical facilities...............         250,000          250,000          250,000          250,000   ...............  ...............  ...............
    (Rescission).................        -250,000         -250,000         -250,000         -250,000   ...............  ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Administrative              -232,000   ...............         -38,000   ...............        +232,000   ...............         +38,000
       Provisions................
                                  ======================================================================================================================
      Total, title II............     149,106,488      161,667,913      161,248,737      161,641,028      +12,534,540          -26,885         +392,291
          Appropriations.........     (95,454,261)    (104,755,711)    (104,374,535)    (104,728,826)     (+9,274,565)        (-26,885)       (+354,291)
          Rescissions............     (-1,982,000)     (-1,750,000)     (-1,788,000)     (-1,750,000)       (+232,000)  ...............        (+38,000)
          Advance appropriations,     (55,634,227)     (58,662,202)     (58,662,202)     (58,662,202)     (+3,027,975)  ...............  ...............
           fiscal year 2016......
      Advances from prior year        (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
       appropriations............
      (Limitation on direct                (3,000)          (3,377)          (3,377)          (3,377)           (+377)  ...............  ...............
       loans)....................
                                  ======================================================================================================================
   TITLE III--RELATED AGENCIES

    American Battle Monuments
            Commission

Salaries and expenses............          63,200           70,100           75,000           73,285          +10,085           +3,185           -1,715
Foreign currency fluctuations              14,100            1,900            1,900            1,900          -12,200   ...............  ...............
 account.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, American Battle               77,300           72,000           76,900           75,185           -2,115           +3,185           -1,715
       Monuments Commission......
                                  ======================================================================================================================
    U.S. Court of Appeals for
         Veterans Claims

Salaries and expenses............          35,408           31,386           31,386           34,390           -1,018           +3,004           +3,004

   Department of Defense--Civil

    Cemeterial Expenses, Army

Salaries and expenses............          65,800           45,800           61,881           65,800   ...............         +20,000           +3,919

  Armed Forces Retirement Home--
            Trust Fund

Operation and maintenance........          66,800           62,400           62,400           62,400           -4,400   ...............  ...............
Capital program..................           1,000            1,000            1,000            1,000   ...............  ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Armed Forces                  67,800           63,400           63,400           63,400           -4,400   ...............  ...............
       Retirement Home...........
                                  ======================================================================================================================
      Total, title III...........         246,308          212,586          233,567          238,775           -7,533          +26,189           +5,208
                                  ======================================================================================================================
      Grand total................     159,160,796      168,437,946      168,039,751      168,438,803       +9,278,007             +857         +399,052
          Appropriations.........    (105,888,418)    (111,525,744)    (111,370,126)    (112,000,048)     (+6,111,630)       (+474,304)       (+629,922)
          Rescissions............     (-2,361,849)     (-1,750,000)     (-1,992,577)     (-2,223,447)       (+138,402)       (-473,447)       (-230,870)
          Advance appropriations,     (55,634,227)     (58,662,202)     (58,662,202)     (58,662,202)     (+3,027,975)  ...............  ...............
           fiscal year 2015......
      Advances from prior year        (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
       appropriations............
      (By transfer)..............        (269,257)        (284,366)        (267,366)        (284,366)        (+15,109)  ...............        (+17,000)
      (Limitation on direct                (3,000)          (3,377)          (3,377)          (3,377)           (+377)  ...............  ...............
       loans)....................
--------------------------------------------------------------------------------------------------------------------------------------------------------


