[Senate Report 113-48]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 102
113th Congress                                                   Report
                                 SENATE
 1st Session                                                     113-48

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



 
   MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED AGENCIES 
                        APPROPRIATION BILL, 2014
                                _______
                                

                 June 27, 2013.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                        [To accompany H.R. 2216]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 2216) making appropriations for the Department of 
Defense for the fiscal year ending September 30, 2014, 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.................$159,999,863,000
Amount of 2013 appropriations\1\........................ 147,014,301,000
Amount of 2014 budget estimate.......................... 160,324,434,000
Amount of House allowance............................... 158,954,317,000
Bill as recommended to Senate compared to--
    Amount of 2013 appropriations....................... +12,985,562,000
    Amount of 2014 budget estimate......................    -324,571,000
    House allowance.....................................  +1,045,546,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.


                                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
            Reprogramming Guidelines.............................     6
            Real Property Maintenance............................     7
            Incremental Funding..................................     7
            Energy Policy........................................     7
            Global Challenges....................................     8
        Military Construction, Army..............................    15
        Military Construction, Navy and Marine Corps.............    16
        Military Construction, Air Force.........................    16
        Military Construction, Defense-Wide......................    17
        Military Construction, Reserve Components................    19
        North Atlantic Treaty Organization.......................    20
        Family Housing Overview..................................    20
        Family Housing Construction, Army........................    20
        Family Housing Operation and Maintenance, Army...........    21
        Family Housing Construction, Navy and Marine Corps.......    22
        Family Housing Operation and Maintenance, Navy and Marine 
          Corps..................................................    23
        Family Housing Construction, Air Force...................    23
        Family Housing Operation and Maintenance, Air Force......    24
        Family Housing Operation and Maintenance, Defense-Wide...    24
        Family Housing Improvement Fund..........................    25
        Chemical Demilitarization Construction, Defense-Wide.....    25
        Base Closure Account 1990................................    26
        Base Closure Account 2005................................    26
        Department of Defense Base Closure Account...............    26
        Administrative Provisions................................    27
Title II:
    Department of Veterans Affairs:
        Items of Special Interest:
            Hearings.............................................    29
            Summary of Committee Recommendations.................    29
            Department Overview..................................    29
            Claims Backlog.......................................    30
        Veterans Benefits Administration.........................    33
            Compensation and Pensions............................    34
            Readjustment Benefits................................    35
            Veterans Insurance and Indemnities...................    36
            Veterans Housing Benefit Program Fund................    37
            Vocational Rehabilitation Loans Program Account......    37
            Native American Veteran Housing Loan Program Account.    38
        Veterans Health Administration...........................    38
            Medical Services.....................................    41
            Medical Support and Compliance.......................    47
            Medical Facilities...................................    48
            Medical and Prosthetic Research......................    49
            Medical Care Cost Recovery Collections...............    50
            Medical Care Collection Fund.........................    50
            Medical Care Collection Fund--Revenues Applied.......    50
        National Cemetery Administration.........................    51
        Departmental Administration..............................    51
            General Administration...............................    52
            General Operating Expenses, Veterans Benefits 
              Administration.....................................    54
            Information Technology Systems.......................    55
            Office of Inspector General..........................    59
            Construction, Major Projects.........................    60
            Construction, Minor Projects.........................    61
            Grants for Construction of State Extended Care 
              Facilities.........................................    62
            Grants for Construction of Veterans Cemeteries.......    63
        Administrative Provisions................................    63
Title III:
    Related Agencies:
        American Battle Monuments Commission:
            Salaries and Expenses................................    66
            Foreign Currency Fluctuations........................    66
        United States Court of Appeals for Veterans Claims: 
          Salaries and Expenses..................................    67
        Department of Defense--Civil: Cemeterial Expenses, Army:
            Salaries and Expenses................................    67
            Construction.........................................    68
        Armed Forces Retirement Home: Trust Fund.................    69
Title IV: General Provisions.....................................    70
Compliance With Paragraph 7, Rule XVI, of the Standing Rules of 
  the 
  Senate.........................................................    71
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    72
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................    73
Budgetary Impact of Bill.........................................    73
Military Construction Project Listing by Location................    74
Comparative Statement of Budget Authority........................   102


                               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 
$159,999,863,000 for fiscal year 2014 military construction, 
family housing, base closure, veterans healthcare and benefits, 
including fiscal year 2015 advance appropriations for veterans 
medical care, and related agencies. This includes 
$84,461,636,000 in mandatory funding and $75,538,227,000 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 2014 
request.

                   APPROPRIATIONS FOR FISCAL YEAR 2014
------------------------------------------------------------------------
                                                           Senate
                                 Budget request        recommendation
------------------------------------------------------------------------
New budget authority........      $160,324,434,000      $159,999,863,000
Previous advances provided          54,462,000,000        54,462,000,000
 for fiscal year 2014.......
Less advances provided for         -55,634,227,000       -55,634,227,000
 fiscal year 2015...........
                             -------------------------------------------
      Total appropriations         159,152,207,000       158,827,636,000
       for fiscal year 2014.
------------------------------------------------------------------------

                      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 2014 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 2014 budget request for military 
construction and family housing totals $11,011,633,000. The 
Committee recommends $10,688,000,000, which is $323,633,000 
below the 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 2014, 
the Committee recommends incremental funding for the following 
projects: Ambulatory Health Center, Fort Knox, Kentucky; 
Hospital Replacement, increment 5, Fort Bliss, Texas; and 
Medical Center Replacement, increment 3, 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 
$4,000,000,000 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.
    In particular, the Committee believes that the Department 
should maximize the use of energy efficient, eco-friendly 
roofing technologies for new construction and renovations, 
including family housing construction and renovation. These 
technologies include, but are not limited to, photovoltaic 
panels, solar thermal roof coatings, solar parking canopies, 
rooftop direct use solar lighting technology, green roofs, and 
cool roofs. In an effort to capture the most innovative of 
these technologies, the Committee encourages the Department and 
the services to monitor new technologies emerging from 
government, industry, or university research and development 
programs.
    Although federally mandated sustainable design policies and 
energy efficiency goals are standard elements of military 
construction design, the Committee encourages the Department 
and the services to incorporate additional leading-edge 
technologies into the construction program and to utilize new 
and underutilized, low cost energy-efficient technologies that 
provide the best value to taxpayers through minimal life-cycle 
costs.
    While strongly supportive of DOD's commitment to green 
buildings, and its goal to promote cost-effective 
sustainability, the Committee is concerned that the 
Department's current approach to sustainable construction could 
result in giving preference to one green building certification 
system to the exclusion of others, particularly wood products. 
The Committee expects DOD to ensure equal acceptance of 
forestry certification systems, and to allow systems designated 
as American National Standards to compete equally for use in 
the Department's building construction and major renovations, 
subject to Buy America requirements.
    Cybersecure Microgrids at Military Installations.--The 
Committee continues to be impressed with the Department's 
investments in microgrid energy security and encourages the 
Department to continue to explore ways to mitigate the risk to 
mission critical assets and promote energy independence at 
military installations through the Smart Power Infrastructure 
Demonstration for Energy Reliability and Security [SPIDERS] 
program. The pilot projects in the 2014 program are a good 
start, and the Committee looks forward to progress reports on 
the results of these projects and if successful, expanding the 
program to ensure our energy security and independence in 
future year programs.

                           GLOBAL CHALLENGES

    The U.S. military is at the forefront of protecting 
America's national security interests in a rapidly shifting 
global political and economic landscape. Europe, once the 
epicenter of the U.S. military's overseas defense posture, has 
transformed into a strong and steady national security ally, 
albeit one with a myriad of economic uncertainties that 
threaten its economic stability. The transformation of Europe 
from a U.S. national security burden to an economic and 
security partner has dramatically altered the equation for 
assessing the U.S. military presence in Europe. The drawdown of 
U.S. forces from Afghanistan has forced the Department of 
Defense [DOD] to reevaluate its basing strategy in Southwest 
Asia. And the emergence of terrorist activities and training 
camps on the continent of Africa has radically changed the 
mission of the Africa Command.
    Nowhere has the shift in global security been more 
pronounced than in the Pacific Command, where the growing 
concern over China's military advances and motivations, and the 
unpredictability of the North Korean regime, has prompted the 
United States to pivot its overseas military strategy to 
concentrate on deterring and responding to threats in the 
Pacific region.
    Military construction plays a central role providing the 
infrastructure platform from which the Defense Department can 
execute its global strategy. Following is a discussion of some 
of the key issues facing the Committee in supporting the U.S. 
military overseas mission priorities.
    Global Defense Posture.--The Committee notes that the 
Department of Defense continues to realign its overseas 
installation structure through its global defense posture 
initiatives. In support of this effort, the President has 
requested $1,688,162,000 in fiscal year 2014 for overseas 
military construction, which includes projects in the African, 
Central, European, and Pacific areas of responsibility. The 
Committee continues to support DOD's efforts to reassess and 
realign its overseas installations to better respond to 
emerging security challenges. However, the Committee is 
concerned that DOD's reporting to Congress does not incorporate 
all of the initiatives that impact DOD's posture nor does it 
fully capture the costs and future resourcing requirements. 
Without comprehensive reporting by the Department on the scope 
and cost of overseas presence, the Committee is limited in its 
ability to decide between competing requirements in an 
environment of limited resources.
    To provide Congress necessary oversight, the Committee 
required the Defense Department to prepare annual reports on 
the Global Defense Posture beginning in fiscal year 2008. In 
order to provide greater transparency and more meaningful 
context to support congressional deliberations, the Committee 
extends the reporting requirement for each unified command 
through the fiscal year 2018 budget submission. In addition, 
the Committee directs the Department to include the following 
elements in future reports:
  --an overview of the current overseas basing strategy and an 
        explanation of any changes to the strategy;
  --a complete list of all current and planned main operating 
        bases, forward operating sites, cooperative security 
        locations, and contingency locations, along with the 
        justification and the status of host nation agreements 
        for each site;
  --an identification of lead service responsibilities to 
        manage and fund each location; and
  --a full report of the total costs of global defense posture, 
        including the following:
    --the construction costs anticipated for each location;
    --the family and housing costs for each location;
    --the operation and maintenance costs for establishing, 
            operating, and maintaining each location; and
    --the number of military personnel projected for each 
            location and the incremental costs in rotating or 
            assigning the military personnel to that location, 
            including the costs of imminent danger pay, family 
            separation allowances, and hardship duty pay.
    The Committee directs the Secretary of Defense to submit 
the required reports with the annual Military Construction 
budget submissions.
    European Command [EUCOM].--The Committee is aware that the 
Department of Defense is conducting a European Consolidation 
Study in an effort to reduce DOD's infrastructure in Europe. 
However, the final report is not due to be completed until 
December, well past the normal appropriations process. DOD's 
fiscal year 2014 military construction request totals nearly 
$631,000,000 for 14 projects in Germany and the United Kingdom 
for which it is seeking approval before the results of the 
consolidation study have been finalized.
    The Committee questions the rationale for funding these 
projects before DOD has determined whether any missions can be 
consolidated or relocated, or any installations can be returned 
to the host nation. These decisions could have a major impact 
on military construction requirements. For example, the request 
includes $328,000,000 for five schools in Germany and the 
United Kingdom, ranging from kindergarten through high school. 
Consolidation of missions could change base populations, which 
in turn could affect the required size or location of schools.
    The Committee is also concerned that the Department is 
moving forward with force structure changes in Europe without 
waiting for the results of the study. For example, the Army has 
just completed construction of a new base for the 173rd 
Infantry Brigade Combat Team in Caserna Del Din, Vicenza, 
Italy, at a cost of nearly $350,000,000. The purpose of 
constructing Del Din was to consolidate elements of the 173rd 
Airborne Brigade Combat Team, which had been split between 
Germany and Italy, south of the Alps. However, because of the 
inactivation of the 170th, 172nd and V Corps Headquarters in 
Germany, the Secretary of Defense, on January 30, 2013, agreed 
to allow the Army to return the 173rd to the ``split base'' 
model, and base a third of the forces in Germany. This decision 
is in direct contravention of the original purpose of the Del 
Din consolidation and is of concern to the Committee.
    In addition, the Department is requesting infrastructure at 
Royal Air Force Station Mildenhall in the United Kingdom to 
beddown a Special Operations Force [SOF] CV-22 Osprey mission 
to support Africa Command [AFRICOM]. The Committee notes that 
DOD is deploying a number of assets in Europe to support 
AFRICOM, including a rotational rapid response force of 
approximately 500 marines and six Ospreys at Moron Air Base, 
Spain; and another rotational Marine Corps Task Force of about 
180 personnel and two KC-130Js at Naval Air Station Sigonella, 
Italy.
    Given the proliferation of special purpose missions in 
Europe to support AFRICOM, the distance from the United Kingdom 
to hotspots in the AFRICOM Area of Responsibility [AOR], and 
the proximity of Sigonella to the AFRICOM AOR, the Committee 
questions the rationale of bedding down the new SOF mission in 
the United Kingdom instead of Italy. Sigonella has become a key 
launch pad for missions related to Libya, and given the ongoing 
turmoil in that nation as well as the emergence of terrorist 
training activities in northern Africa, the Committee believes 
that the Special Operations Command should reevaluate the 
decision to beddown the SOF CV-22 mission at Mildenhall. For 
this reason, the Committee recommendation does not include 
funding for the CV-22 beddown at Mildenhall. Additionally, the 
Committee has fenced funding for the remaining fiscal year 2014 
military construction projects in Germany and the United 
Kingdom until the European Consolidation Study is transmitted 
to Congress and the Secretary of Defense certifies in writing 
to the congressional defense committees the requirement for 
each of the relevant projects.
    The Committee believes that the request for another round 
of base closures within the United States is premature until 
the Department 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 
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.
    Central Command [CENTCOM].--With the impending withdrawal 
of U.S. forces from Afghanistan, the Defense Department is in 
the midst of reorienting the basing of U.S. military personnel 
and assets in Southwest and Central Asia. In addition to 
Afghanistan, the U.S. military currently operates out of bases 
in Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates 
among others. In addition to sustaining the headquarters of the 
U.S. Navy Fifth Fleet in Bahrain, DOD is planning to expand 
investment in these and other countries to broaden U.S. 
military operational flexibility in the region. The Committee 
supports the continued presence of U.S. military forces in 
Southwest and Central Asia to protect national security 
interests in light of the volatility of the region and U.S. 
commitment to key allies. However, the Committee believes that 
DOD must leverage investment in existing bases and host nation 
support to achieve the optimal basing and investment in the 
region. At the direction of the Committee, the Government 
Accountability Office [GAO] is reviewing the extent to which 
DOD has identified future plans for its posture in the region, 
as well as reporting on total costs associated with its forces 
and basing, with a final report due in November 2013. The 
Committee expects DOD to incorporate the findings of this 
report in the consideration of future posture plans and 
attendant military construction requirements for U.S. military 
forces in Southwest and Central Asia.
    Africa Command [AFRICOM].--The Committee notes that since 
AFRICOM was created in 2007, a number of events, including the 
emergence of terrorist training locations and activities, have 
occurred on the continent of Africa that have required the 
command to respond quickly to emerging threats to protect U.S. 
citizens and support our partners and allies. In light of 
lessons learned from those events, as well as the currently 
evolving situation on the continent, the Department of Defense 
[DOD] has begun to explore expanding AFRICOM's forward presence 
by posturing additional assets in both Africa and Europe and 
delineating certain forces for AFRICOM's use, as appropriate. 
The Committee is aware that the Comptroller General has 
undertaken several studies on various aspects of global 
posture, but believes that an additional study on the planning 
for an expanded forward presence for AFRICOM in Africa and 
Europe is appropriate. Of particular concern is the response 
capability for AFRICOM assets proposed for beddown in Europe.
    The Committee therefore directs the Comptroller General of 
the United States to undertake a study of the nature and extent 
of planning underway by DOD to meet emerging challenges to the 
security of the United States on the continent of Africa. This 
study should include an assessment of the following:
  --the costs of the posture initiatives in Africa to the 
        United States;
  --how posture changes in the AFRICOM area of responsibility 
        support U.S. goals and strategy;
  --the plans for additional investments in infrastructure in 
        other combatant commands to support AFRICOM;
  --how the operational benefits of various locations are being 
        balanced against their costs; and
  --any other issues that the Comptroller General finds 
        appropriate to assist the Committee with its oversight.
    The Comptroller General should periodically brief the 
Committee on the status of its work and provide a report no 
later than June 15, 2014.
    Pacific Command [PACOM].--The recent rebalance of the U.S. 
global military presence and posture to the Pacific Region will 
require a significant investment in military construction to 
support initiatives in Japan, Guam, Singapore, Australia, and 
Hawaii.
    The Committee remains concerned about the ultimate military 
construction cost to implement these initiatives, particularly 
in the current constrained budget environment. The centerpiece 
of the planned realignment of forces in the Pacific includes a 
major military buildup in Guam to support the relocation of 
approximately 5,000 U.S. marines from Okinawa. Unfortunately, 
the relocation plan has been plagued by delays and uncertainty 
due to public opposition and a lack of cooperation by Okinawan 
officials to approve the related relocation of marines from 
Futenma to Camp Schwab on Okinawa, environmental issues 
affecting construction on Guam, and, as a result, the failure 
of DOD to be able to finalize a plan or provide a reliable cost 
estimate for the Marine relocation plan for Guam.
    As the Government Accountability Office [GAO] noted in a 
June 11, 2013, report to Congress, ``More Reliable Cost 
Estimates and Further Planning Needed to Inform the Marine 
Corps Realignment Initiatives in the Pacific,'' (GAO-13-360), 
the Defense Department's preliminary cost estimate for its 
current Pacific realignment plan is not reliable, because it is 
missing costs and is based on limited data:
    ``According to DOD officials, DOD has not yet been able to 
put together a more reliable cost estimate because it will not 
have specific detailed information on the plan's requirements 
until the completion of environmental analyses and host nation 
negotiations,'' the report concluded. ``Currently, DOD 
estimates that it would cost approximately $12.1 billion to 
implement its realignment plan--not including the Australia 
segment of the realignment. Still, GAO found that DOD did not 
include some up-front practices that could have provided a more 
reliable estimate that are not dependent on the completion of 
the environmental analyses and host nation negotiations.''
    As a result of continued uncertainty over the future of the 
Guam realignment plan, the Committee has deferred funding for 
an $85,673,000 Navy aircraft maintenance hangar at Anderson Air 
Force Base in Guam, which is the only project in the budget 
request directly related to the realignment of U.S. marines 
from Okinawa to Guam.
    The Committee also has concerns over the status of the 
Pacific Airpower Resiliency Initiative [PAR] that PACOM is 
conducting to assess the protection of U.S. military air assets 
in the region, particularly at Anderson Air Force Base. The 
study is focused on a three-pronged approach including 
hardening of facilities, dispersal of aircraft, and rapid 
runway repair. Although the study has not been completed or its 
findings validated, and the congressional defense committees 
have not had an opportunity to review it, the budget request 
nevertheless includes six Air Force PAR projects for Guam and 
Saipan.
    It is premature to assess air resiliency priorities without 
the final results of the completed PACOM plan for the entire 
Area of Responsibility [AOR]. The latest information from the 
Command states that the plan will not be completed before the 
end of the current fiscal year, too late in the appropriations 
process for a detailed and thorough review of DOD's long-term 
infrastructure needs in the Pacific. It is imperative that as 
the Department rebalances forces in the Pacific region, PACOM 
develops a prioritized and fiscally responsible resiliency plan 
to protect, disperse and repair U.S. military assets in its 
area of responsibility. The Committee urges the Department to 
expedite the resiliency plan for the beddown of forces in the 
Pacific AOR and to provide the plan to the congressional 
defense committees at the earliest possible date.
    To ensure that the fiscal year 2014 budget request for Air 
Force PAR projects supports the findings of the ongoing PAR 
initiative, the Committee has fenced funding for pertinent Air 
Force projects in Guam and Saipan until the PAR is transmitted 
to Congress, and the Secretary of Defense certifies in writing 
to the congressional defense committees the requirement for 
each of the relevant projects.
    U.S. Special Operations Command [USSOCOM].--The Committee 
is mindful that USSOCOM's force structure beddown plan is 
operationally fluid, and encourages the Command to consider all 
DOD priorities and studies when deciding where to permanently 
station forces around the world. However, the Committee is 
pleased with the U.S. Special Operations Command's long-range 
training plan for CONUS bases and encourages it to stay on 
schedule for future budget submissions.
    Payment-in-Kind Funds [PIK].--According to an April 15, 
2013, report from the Senate Armed Services Committee, 
``Inquiry into U.S. Costs and Allied Contributions to Support 
the U.S. Military Presence Overseas,'' (Committee Report 113-
12) the United States spends more than $10,000,000,000 a year 
to support our permanent military presence overseas, with 
nearly 70 percent of that $10,000,000,000 spent in Germany, the 
Republic of Korea and Japan. In Germany, force reductions will 
result in the return of a large number of U.S. facilities to 
the German government. These returns are expected to generate 
significant payments from Germany for the ``residual value'' of 
U.S. investment in those facilities.
    A review conducted by the Department of Defense Inspector 
General found that since 1991 the United States has received 
more than $920,000,000 in residual value compensation for 
excess military facilities returned to Germany. Despite the 
expectation that non-momentary, or ``in-kind,'' payments would 
be a last resort, more than 95 percent of that $920,000,000 has 
been in the form of payment-in-kind [PIK] rather than cash. 
These in-kind contributions include major military 
construction, repairs and base support for U.S. military 
installations in Germany.
    According to the Senate Armed Services Committee report, 
Installation Management Command-Europe's [IMCOM-E] use of PIK 
funds is largely inconsistent with the intent of Congress. In 
one case, IMCOM-E solicited and accepted approximately 
$60,000,000 in ``advance'' residual PIK funds from Germany--to 
be repaid with future U.S. facility returns--with the intent to 
fund a number of projects, including one specifically denied by 
Congress during the normal appropriation process.
    The Committee is concerned about the lack of transparency 
in the assessment of residual value of U.S. facilities 
overseas, the use of ``advance PIK'' for military construction, 
the process used to determine the projects selected for PIK, 
and lapses in required Congressional notifications.
    Therefore, the Committee directs the Secretary of Defense 
to establish procedures to enhance oversight of the PIK program 
and to report to the congressional defense committees within 90 
days of enactment of this act on the steps DOD is taking to 
address the concerns raised by the Committee. The Committee 
also directs the Secretary to provide quarterly reports to the 
congressional defense committees, beginning with the first 
quarter after enactment of this act, on the status of approved 
and pending PIK projects. Projects to be funded through advance 
PIK should be identified as such. A military construction 
project that has been rejected by Congress during the regular 
appropriations process is to be considered ineligible for 
funding through residual value cash or PIK without prior 
approval by the congressional defense committees.
    General/Flag Officer Quarters [GFOQ].--The Committee 
remains concerned about the excessive cost of maintaining aging 
and often historic General/Flag Officer Quarters and the 
considerable burden on the U.S. taxpayer. In the 2014 budget 
submission, the Army requests funding for 27 GFOQs with an 
annual operation and maintenance cost of over $100,000, with 
seven needing repairs over $100,000 each. The Navy request 
includes 26 GFOQs with operation and maintenance costs 
exceeding $100,000, of which 12 need repairs over $100,000. In 
contrast, the Air Force submission includes one GFOQ with an 
operation and maintenance cost over $100,000 based on a $97,000 
repair to the quarters. The Committee has tried to work with 
the services on evaluating alternatives for maintaining these 
large and aging facilities, but has been stymied by an apparent 
unwillingness on the part of the services to seek less 
expensive alternatives. In fiscal year 2013, the Committee 
directed the services to initiate a review of the operation and 
maintenance costs of GFOQs and submit a report to Congress, but 
to date no service has complied. Of particular concern is the 
Navy's 2013 request for $433,500 for the operation of an 11,322 
square foot GFOQ in Naples, which is owned by the government of 
Italy, and the 2014 request for $216,000 for the same GFOQ, 
only to notify Congress on April 29, 2013, that the occupant 
will ``relocate from the GFOQ,'' which is located outside the 
fence line of the Navy Support Site. The Navy has determined 
that, ``[the GFOQ] built in 1949 is in a deteriorated condition 
and is no longer suitable for the operational mission of this 
billet.''
    Therefore, the Committee directs the Secretary of Defense 
to initiate a review of costs exceeding $100,000 in any single 
fiscal year for repairs, operating and/or maintaining a GFOQ 
and provide the congressional defense committees the 
justification that these quarters and the excessive costs are 
in the best interests of the American taxpayer. The 
justification for these costs should be included with the 
congressional notification regarding the requirement.
    Defense Access Roads.--Well maintained transportation 
infrastructure adjacent to military facilities increases 
mobility, benefits quality of life, and improves community 
relations off base. The Committee urges the Department of 
Defense to expand eligibility criteria for the Defense Access 
Roads program and work with the United States Department of 
Transportation, as well as State departments of transportation 
on alternatives to more immediately address critical 
transportation infrastructure shortfalls near military 
installations. The Department should focus on greater 
interagency coordination to effectively take advantage of all 
Federal resources to address major traffic needs at military 
installations affected by large growth in populations both on 
and off base.

                      Military Construction, Army

Appropriations, 2013\1\.................................  $1,682,100,000
Budget estimate, 2014...................................   1,119,875,000
House allowance.........................................   1,099,875,000
Committee recommendation................................   1,119,875,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $1,119,875,000 for the Army for 
fiscal year 2014. This amount is $562,225,000 below the fiscal 
year 2013 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, 2013\1\.................................  $1,547,120,000
Budget estimate, 2014...................................   1,700,269,000
House allowance.........................................   1,616,281,000
Committee recommendation................................   1,614,596,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $1,614,596,000 for Navy and Marine 
Corps military construction for fiscal year 2014. This amount 
is $67,476,000 above the fiscal year 2013 enacted level, and 
$85,673,000 below the budget request. Further detail of the 
Committee's recommendation is provided in the State table at 
the end of this report.
    Navy Research Laboratories.--The Committee is concerned 
that key scientists and engineers who conduct critical advanced 
research and development [R&D] for the Naval Sea Systems 
Command work in aged and antiquated labs, some nearly 60 years 
old, that are unable to support today's advanced R&D 
initiatives. The Committee is encouraged that the Navy has 
developed a schedule to replace these labs within the next 5 
years. Because these R&D activities are a critical component of 
the DOD's efforts to maintain sea and battlefield dominance and 
to meet other national security requirements, the Committee 
urges the Navy to replace these aging labs in a timely manner 
that ensures adequate facilities. The Committee looks forward 
to working with Naval Sea Systems Command to make certain that 
the Navy's scientific research divisions have the modern 
facilities required to meet current and future missions.

                    Military Construction, Air Force

Appropriations, 2013\1\.................................    $322,117,000
Budget estimate, 2014...................................   1,156,573,000
House allowance.........................................   1,127,273,000
Committee recommendation................................   1,153,960,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $1,153,960,000 for the Air Force 
in fiscal year 2014. This amount is $831,843,000 above the 
fiscal year 2013 enacted level, and $2,613,000 below 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.
    KC-46A FTU/MOB.--In May 2013, the Air Force released its 
Preferred and Reasonable Alternatives for locating the KC-46A 
tanker Formal Training Unit [FTU] and Main Operating Base [MOB] 
#1. This determination was made after the release of the fiscal 
year 2014 President's budget, and the Air Force submitted 
amended DD 1391 forms to the Committee revising the funding 
requests for the projects. Accordingly, the Committee provides 
funding under ``Air Force, World Wide Unspecified'' at the 
updated request level of $31,000,000 for the KC-46A FTU 
Facility Projects, and $219,000,000 for the KC-46A MOB #1 
Facility Projects.

                  Military Construction, Defense-Wide


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\.................................  $3,577,695,000
Budget estimate, 2014...................................   3,985,300,000
House allowance.........................................   3,707,923,000
Committee recommendation................................   3,766,553,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $3,766,553,000 for projects 
considered within the ``Defense-Wide'' account in fiscal year 
2014. This amount is $188,858,000 above the fiscal year 2013 
enacted level and $218,747,000 below the budget request. 
Further detail of the Committee's recommendation is provided in 
the State table at the end of this report.

                        CONTINGENCY CONSTRUCTION

    The Committee has provided $10,000,000 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.

                 ENERGY CONSERVATION INVESTMENT PROGRAM

    The Committee recommends the requested level of 
$150,000,000 for the Energy Conservation Investment Program 
[ECIP]. The Committee also recommends a transfer of $10,000,000 
from unspecified Defense-Wide planning and design into a 
separate line item for ECIP planning and design to ensure that 
adequate funds are available for future ECIP project planning.
    ECIP is the only dedicated stream of funding for energy 
projects within DOD. Historically, ECIP has funded small 
projects with rapid payback. As DOD moves more aggressively to 
develop renewable energy resources and improve energy security, 
ECIP is emerging as a major tool to leverage investment in 
larger projects, such as net-zero energy facilities or smart 
grid technologies, that are intended to produce significant 
improvements in energy consumption, costs, and security at 
single or multiple installations. The Committee encourages the 
Department to continue using ECIP funds to leverage investments 
in game-changing major energy projects, particularly renewable 
energy initiatives.
    The Committee believes that energy efficiency, energy 
security, and renewable energy investments are mission-critical 
requirements to reduce DOD's dependence on costly and 
potentially unreliable sources of commercial energy, and 
encourages the services and the defense agencies to 
aggressively pursue opportunities to include projects designed 
to improve installation energy efficiency and security in their 
major construction programs as well as through ECIP.

               Military Construction, Reserve Components

Appropriations, 2013\1\\2\..............................  $1,045,428,000
Budget estimate, 2014...................................     693,310,000
House allowance.........................................     676,310,000
Committee recommendation................................     693,310,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
\2\Includes emergency funding of $24,235,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                          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 $693,310,000 for military 
construction projects for the Guard and Reserve components for 
fiscal year 2014. This amount is $352,118,000 below the fiscal 
year 2013 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...................     $320,815,000     $320,815,000
Air National Guard....................      119,800,000      119,800,000
Army Reserve..........................      174,060,000      174,060,000
Navy Reserve..........................       32,976,000       32,976,000
Air Force Reserve.....................       45,659,000       45,659,000
                                       ---------------------------------
      Total...........................      693,310,000      693,310,000
------------------------------------------------------------------------

    Army Guard Readiness Centers.--The Committee is aware that 
fiscal constraints and other strategic priorities have resulted 
in delays in the Army National Guard military construction 
program, specifically the repair and modernization of readiness 
centers. The Committee recognizes that the Army is entering a 
period of strategic reset, which will affect the military 
construction program of both the active and reserve components. 
However, the Committee remains concerned about the substandard 
condition of many readiness centers, and urges the Army to 
prioritize the construction of new and replacement readiness 
centers. The Committee also encourages the Army to reevaluate 
its investment in reserve component construction projects to 
ensure all projects included in the Infrastructure Requirements 
Plan are maintained in the Future Years Defense Program.

                   North Atlantic Treaty Organization


                      SECURITY INVESTMENT PROGRAM

Appropriations, 2013\1\.................................    $253,828,000
Budget estimate, 2014...................................     239,700,000
House allowance.........................................     199,700,000
Committee recommendation................................     239,700,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $239,700,000 for the North 
Atlantic Treaty Organization Security Investment Program [NSIP] 
for fiscal year 2014 as requested. This amount is $14,128,000 
below the fiscal year 2013 enacted level and equal to the 
budget request.

                        Family Housing Overview

Appropriations, 2013\1\.................................  $1,648,603,000
Budget estimate, 2014...................................   1,542,713,000
House allowance.........................................   1,542,713,000
Committee recommendation................................   1,526,113,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $1,526,113,000 for Family Housing 
Construction, Operations and Maintenance, and the Department's 
family housing improvement fund for fiscal year 2014. This 
amount is $122,490,000 below the fiscal year 2013 enacted level 
and $16,600,000 below the budget request.

                   Family Housing Construction, Army

Appropriations, 2013\1\.................................      $4,635,000
Budget estimate, 2014...................................      44,008,000
House allowance.........................................      44,008,000
Committee recommendation................................      27,408,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $27,408,000 for Army Family 
Housing Construction in fiscal year 2014, an amount $16,600,000 
below the budget request and $22,773,000 above the fiscal year 
2013 enacted level.

                            NEW CONSTRUCTION

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

                                                          ARMY FAMILY HOUSING NEW CONSTRUCTION
                                                                 [Dollars in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                          Installation                              Project                       Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Wisconsin...............................  Fort McCoy.................  Family Housing New Construction..................         $23,000         $23,000
Germany.................................  South Camp  Vilseck........  Family Housing New Construction..................          16,600  ..............
                                                                                                                         -------------------------------
      Total.............................  ...........................  .................................................          39,600          23,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

             Family Housing Operation and Maintenance, Army

Appropriations, 2013\1\.................................    $529,352,000
Budget estimate, 2014...................................     512,871,000
House allowance.........................................     512,871,000
Committee recommendation................................     512,871,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $512,871,000 for family housing 
operation and maintenance, Army for fiscal year 2014. This 
amount is $16,481,000 below the fiscal year 2013 enacted level 
and equal to the budget request.

           Family Housing Construction, Navy and Marine Corps

Appropriations, 2013\1\.................................    $102,047,000
Budget estimate, 2014...................................      73,407,000
House allowance.........................................      73,407,000
Committee recommendation................................      73,407,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $73,407,000 for Family Housing 
Construction, Navy and Marine Corps, including construction 
improvements, in fiscal year 2014. This amount is $28,640,000 
below the fiscal year 2013 enacted level and equal to the 
budget request.

                       CONSTRUCTION IMPROVEMENTS

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

                                             NAVY AND MARINE CORPS FAMILY HOUSING CONSTRUCTION IMPROVEMENTS
                                                                 [Dollars in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                          Installation                              Project                       Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Louisiana...............................  MARFORRES New Orleans......  Family Housing Site Improvements.................             $97             $97
Guam....................................  NAVBASE, Guam..............  Revitalize Family Housing--Enlisted and Officer..          23,100          23,100
Japan...................................  CFA Sasebo.................  Revitalize Family Housing--Enlisted and Officer..          21,616          21,616
Japan...................................  MCAS Iwakuni...............  Revitalize Family Housing--Officer...............           2,686           2,686
Japan...................................  MCAS Iwakuni...............  Revitalize Family Housing--Enlisted and Officer..          18,251          18,251
Japan...................................  MCAS Iwakuni...............  Family Housing Electric Meter Installation.......           3,219           3,219
                                                                                                                         -------------------------------
      Total.............................  ...........................  .................................................          68,969          68,969
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Family Housing Operation and Maintenance, Navy and Marine Corps

Appropriations, 2013\1\.................................    $377,731,000
Budget estimate, 2014...................................     389,844,000
House allowance.........................................     389,844,000
Committee recommendation................................     389,844,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $389,844,000 for family housing 
operation and maintenance, Navy and Marine Corps, in fiscal 
year 2014. This amount is $12,113,000 above the fiscal year 
2013 enacted level and equal to the budget request.

                 Family Housing Construction, Air Force

Appropriations, 2013\1\.................................     $83,713,000
Budget estimate, 2014...................................      76,360,000
House allowance.........................................      76,360,000
Committee recommendation................................      76,360,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $76,360,000 for Family Housing 
Construction, Air Force, in fiscal year 2014. This amount is 
$7,353,000 below the fiscal year 2013 enacted level and equal 
to the budget request.

                       CONSTRUCTION IMPROVEMENTS

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

                                                           AIR FORCE CONSTRUCTION IMPROVEMENTS
                                                                 [Dollars in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Committee
                Location                            Installation                               Project                    Budget request  recommendation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Japan...................................  Kadena AB.......................  Improve Infrastructure, Phase 3.............         $18,562         $18,562
Japan...................................  Misawa AB.......................  Improve Military Family Housing                       26,231          26,231
                                                                             Infrastructure, Phase 3.
Japan...................................  Misawa AB.......................  Improve Family Housing, Phase 1.............          27,300          27,300
                                                                                                                         -------------------------------
      Total.............................  ................................  ............................................          72,093          72,093
--------------------------------------------------------------------------------------------------------------------------------------------------------

          Family Housing Operation and Maintenance, Air Force

Appropriations, 2013\1\.................................    $497,172,000
Budget estimate, 2014...................................     388,598,000
House allowance.........................................     388,598,000
Committee recommendation................................     388,598,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $388,598,000 for family housing 
operation and maintenance, Air Force, in fiscal year 2014. This 
amount is $108,574,000 below the fiscal year 2013 enacted level 
and equal to the budget request.

         Family Housing Operation and Maintenance, Defense-Wide

Appropriations, 2013\1\.................................     $52,169,000
Budget estimate, 2014...................................      55,845,000
House allowance.........................................      55,845,000
Committee recommendation................................      55,845,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $55,845,000 for family housing 
operation and maintenance, Defense-Wide, for fiscal year 2014. 
This amount is $3,676,000 above the fiscal year 2013 enacted 
level and equal to the budget request.

                    Family Housing Improvement Fund

Appropriations, 2013\1\.................................      $1,784,000
Budget estimate, 2014...................................       1,780,000
House allowance.........................................       1,780,000
Committee recommendation................................       1,780,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $1,780,000 for the Family Housing 
Improvement Fund for fiscal year 2014. This amount is $4,000 
below the fiscal year 2013 enacted level and equal to the 
budget request.

          Chemical Demilitarization Construction, Defense-Wide

Appropriations, 2013\1\.................................    $150,801,000
Budget estimate, 2014...................................     122,536,000
House allowance.........................................     122,536,000
Committee recommendation................................     122,536,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                          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 $122,536,000 for chemical 
demilitarization construction projects for fiscal year 2014, a 
decrease of $28,265,000 below the fiscal year 2013 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.

                       Base Closure Account 1990

Appropriations, 2013\1\.................................    $408,856,000
Budget estimate, 2014...................................................
House allowance.........................................................
Committee recommendation................................................

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                       Base Closure Account 2005

Appropriations, 2013\1\.................................    $126,530,000
Budget estimate, 2014...................................................
House allowance.........................................................
Committee recommendation................................................

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
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               Department of Defense Base Closure Account

Appropriations, 2013....................................................
Budget estimate, 2014...................................    $451,357,000
House allowance.........................................     451,357,000
Committee recommendation................................     451,357,000

                          PROGRAM DESCRIPTION

    Section 2711 of the National Defense Authorization Act for 
Fiscal Year 2013 (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 $451,357,000 for the 
Department of Defense Base Closure Account for fiscal year 
2014, equal to the budget request. Funds provided for fiscal 
year 2014 are for environmental cleanup and ongoing operations 
and maintenance.

      BASE CLOSURE ACCOUNT ENVIRONMENTAL AND MAINTENANCE OVERVIEW

    From fiscal year 1990 through fiscal year 2013, a total of 
$26,063,239,000 has been appropriated for the maintenance and 
environmental cleanup of military installations closed or 
realigned under prior BRAC rounds. The cumulative amount 
appropriated for these BRAC activities, combined with the 
Committee recommendation for fiscal year 2014, is 
$26,514,596,000.
    In appropriating these funds, the Committee continues to 
provide the Department with broad flexibility to allocate funds 
by service, function, and installation. The following table 
displays the total amount appropriated for each round of prior 
base closures, including amounts recommended for fiscal year 
2014 for maintenance and environmental cleanup.

                                              BASE CLOSURE ACCOUNT
      [Total legacy BRAC environmental and caretaker funding for fiscal year 1990 through fiscal year 2014]
----------------------------------------------------------------------------------------------------------------
                                                                      Fiscal year
                                                        --------------------------------------
                                          1990-2012                           2014 Committee         Total
                                                          2013 enacted\2\     recommendation
----------------------------------------------------------------------------------------------------------------
Part I..............................     $2,684,577,000              (\1\)              (\1\)     $2,684,577,000
Part II.............................      4,915,636,000              (\1\)              (\1\)      4,915,636,000
Part III............................      7,269,267,000              (\1\)              (\1\)      7,269,267,000
Part IV.............................     10,784,903,000       $408,856,000              (\1\)     11,193,759,000
Consolidated\3\.....................  .................              (\1\)       $451,357,000        451,357,000
                                     ---------------------------------------------------------------------------
      Total.........................     25,654,383,000        408,856,000        451,357,000    26,514,596,000
----------------------------------------------------------------------------------------------------------------
\1\Not applicable.
\2\Includes across the board reductions in sections 3001 and 3004.
\3\Consolidated account includes BRAC 1990 and BRAC 2005 funding.

                       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 that prohibits 
the use of funds in this act for decommissioning the Combined 
Heat and Power Plant at Clear Air Force Station, Alaska, 
pending a review by the Government Accountability Office.

                                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 2014 Department of Veterans Affairs [VA] budget 
request on April 18, 2013. The subcommittee heard testimony 
from the Honorable Eric Shinseki, Secretary of the Department 
of Veterans Affairs.

                  SUMMARY OF COMMITTEE RECOMMENDATIONS

    The Committee recommendation includes $147,888,328,000 for 
the Department of Veterans Affairs for fiscal year 2014, 
including $84,461,636,000 in mandatory spending and 
$63,426,692,000 in discretionary spending. The Committee also 
recommends $55,634,227,000 in advance appropriations for 
veterans medical care for fiscal year 2015.

                          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, 2012, there were an 
estimated 22.3 million living veterans, with 22.2 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 570,000 survivors of deceased veterans 
receiving VA survivor benefits in the United States and Puerto 
Rico. Thus, more than 49.3 million people, or 15.5 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 152 hospitals, 1,208 outpatient clinics and Vet 
Centers, 133 nursing homes, and 107 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 131 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.

                             CLAIMS BACKLOG

    The backlog of veterans compensation claims for service-
related disabilities has reached crisis proportions. The 
Department of Veterans Affairs [VA] reported 816,839 pending 
claims as of June 10, 2013, of which 66 percent have been 
pending for more than 125 days and are considered to be 
backlogged. The Committee has worked with the VA over the past 
several years to provide funding to hire additional claims 
processors and to expedite the digitization of veterans medical 
records, but the backlog has continued to grow despite these 
efforts.
    The problems the VA is facing today are the result of many 
factors and have been building for years. They are the product 
of an antiquated paper-based system; an increase in the number 
of conditions and the complexity of claims being filed; a sharp 
spike in supplemental claims due to the expansion of medical 
conditions eligible for compensation as a result of Agent 
Orange exposure; and delays in the transfer of paper records 
from the Department of Defense [DOD] to the VA. To his credit, 
the current VA Secretary has made transforming the claims 
processing system and moving the VA into the 21st century a top 
priority, and in the past year, both VA and DOD have 
implemented a number of initiatives to speed the processing of 
claims. This includes accelerating the deployment of VA's 
paperless claims system, Veterans Benefits Management System 
[VBMS], to all 56 Regional Offices. The Committee has responded 
by funding every dollar and more requested by the 
Administration to improve claims processing. For example, the 
fiscal year 2014 request included $136,400,000 to digitize all 
of the VA's current paper records of veterans. The bill fully 
funds the request. This is significant because 61 percent of 
current claims are supplemental claims for existing disability 
compensation.
    However, it is clear that problems persist, and more needs 
to be done to ensure that veterans are receiving timely access 
to the benefits they have earned. To that end, the bill 
includes a 10-point action plan to give VA additional tools to 
address the backlog and strengthen accountability to Congress 
by enhancing equipment and access to electronic medical 
records, and by strengthening training, oversight, and 
accountability. The Committee notes that this plan is focused 
not only on production but also on accuracy in an effort to 
ensure veterans receive fair compensation at the outset and do 
not encounter additional delays by having to appeal decisions.
    The plan includes the following elements:
  --Provides $20,000,000 above the request to upgrade computer 
        hardware, such as servers, at Regional Offices to 
        handle the advanced program requirements of VBMS. The 
        paperless claims system is scheduled to be installed in 
        all VA Regional Offices by the end of June 2013. 
        Hardware upgrades are needed to achieve maximum 
        performance of the system.
  --Provides an additional $10,000,000 for targeted overtime 
        and training for claims processors as needed to 
        increase production and help eliminate the claims 
        backlog.
  --Directs the VA to increase training of claims processors to 
        achieve not only expedited production but also to 
        ensure quality and accuracy to reduce claims appeals. 
        Additionally, training programs are to be accompanied 
        by regular testing and monitoring of poorly performing 
        Regional Offices to identify and remediate performance 
        problems.
  --Directs the VA to provide Quality Review Teams and to 
        conduct spot audits at Regional Offices to assess the 
        performance of the claims processing operations and 
        flag any management or operational weaknesses.
  --Directs the VA to create Centers of Excellence at selected 
        Regional Offices for certain types of complex claims, 
        such as claims for PTSD or TBI compensation. With the 
        VBMS paperless claims system, these centers could use 
        their expertise to field targeted claims from across 
        the Nation.
  --Directs the VA to have the data management capability to 
        receive all DOD records in an electronic format by the 
        end of calendar year 2013. The Defense Department [DOD] 
        is implementing a program to have all service treatment 
        records digitized and sent electronically to VA by the 
        end of 2014. DOD must accelerate this effort to achieve 
        full electronic transmission of records by the end of 
        2013, and VA must be prepared to accept them.
  --Requires the VA 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, and error rates.
  --Requires the VA to submit quarterly reports that include 
        the number of claims personnel in each Regional Office, 
        corrective action taken to remedy any problems at 
        poorly performing offices, training programs undertaken 
        by Regional Offices, and Quality Review Team audits 
        performed during the quarter.
  --Directs the VA Inspector General in coordination with the 
        DOD Inspector General to examine the processes and 
        procedures involved in the transmission of medical and 
        personnel records from DOD to VA to identify any 
        problem areas and provide recommendations for 
        improvements.
  --Provides $88,294,000 for the Board of Veterans Appeals, 
        $12,862,000 over the request, to hire additional 
        personnel to address the backlog of appeals.
    The Committee recognizes there is no silver bullet that 
will solve the claims backlog overnight, but the Committee is 
committed to using every tool available to it to assist the VA 
in expediting the processing of claims and to ensure accuracy 
and oversight of the process.
    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. The 
Committee is concerned the justifications continue to lack 
specificity and the degree of detail needed to ensure informed 
and timely evaluation of requested funds and proper oversight 
of a Department the size of the VA. The Committee has included 
specific directions in the appropriate place within this report 
outlining the type of details future justifications should 
include.
    Military and Civilian Skills Translation.--Currently, most 
servicemembers do not transition to civilian life with the 
necessary civilian certifications for the job functions they 
completed in the military. The Department of Defense has 
traditionally viewed this as a retention issue, but in the face 
of looming force reductions, this is an immediate problem. The 
VOW to Hire Heroes Act took the first step in addressing this 
shortfall by requiring the Department of Veterans Affairs, in 
partnership with the Department of Defense and Department of 
Labor, to examine the issue.
    The Committee strongly urges the Department of Veterans 
Affairs to accelerate these efforts and ensure that as 
servicemembers separate, they possess either the credentials or 
precertification exam credit for the civilian job functions for 
which they are qualified.
    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. The Committee also encourages VA to 
collaborate with the Department of Labor to address the 
nationwide shortage of clinical laboratory technologists and 
technicians by targeting grants to community colleges and 
vocational schools to provide training for veterans to fill 
these key Science, Technology, Engineering and Math [STEM] job 
categories.
    Open-Air Burn Pits.--The Committee is concerned about the 
pace of establishing a planned VA registry of service members 
exposed to hazardous pollutants as a result of open-air burn 
pits in Iraq and Afghanistan. The Dignified Burial and Veterans 
Benefits Improvement Act of 2012 requires the VA to establish 
the registry by January 2014. As part of developing the 
registry, the VA is soliciting input from veterans through a 
Web-based questionnaire to report health concerns related to 
burn pit exposure. The Committee urges the VA to increase its 
outreach to veterans to inform them and their families about 
the registry by employing both traditional and nontraditional 
forms of communication, including a Web portal on the VA's Web 
site. The VA should also work with the Department of Defense to 
educate current service members about the potential health 
consequences of exposure to open burn pits in theater. The 
Committee directs the VA to provide the Committees on 
Appropriations of both Houses of Congress within 60 days of 
enactment of this act a detailed implementation plan and 
timeline for the registry which should include a detailed 
outreach program to inform veterans about the registry and 
solicit input from them. The Department should also provide the 
Committees an explanation of its plans to inform VA physicians 
about the findings of the registry and incorporate those 
findings into the disability claims program.

                    Veterans Benefits Administration

Appropriations, 2013.................................... $73,071,831,000
Budget estimate, 2014...................................  84,621,534,000
House allowance.........................................  84,621,534,000
Committee recommendation................................  84,621,534,000

                        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 $84,621,534,000 for the Veterans 
Benefits Administration. This amount is composed of 
$71,248,171,000 for Compensation and pensions; $13,135,898,000 
for Readjustment benefits; $77,567,000 for Veterans insurance 
and indemnities; $158,430,000 for the Veterans housing benefit 
program fund administrative expenses; $5,000 for the Vocational 
rehabilitation loans program account, with $354,000 for 
administrative expenses; and $1,109,000 for the Native American 
veteran housing loan program account.

                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013.................................... $60,599,855,000
Budget estimate, 2014...................................  71,248,171,000
House allowance.........................................  71,248,171,000
Committee recommendation................................  71,248,171,000

                          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 2014, the Department 
estimates it will obligate $65,440,857,000 for payments to 
3,846,018 veterans, 364,564 survivors, and 1,206 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 2014, the Department 
estimates that the Pensions program will provide benefits to 
314,706 veterans and 202,226 survivors totaling $5,584,256,000.
    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 2014, the Department 
estimates the Compensation and Pensions program will obligate 
$223,058,000 providing burial benefits. This funding will 
provide 49,221 burial allowances, 25,538 burial plot 
allowances, 26,091 service-connected death awards, 500,002 
burial flags, 344,826 headstones or markers, and 63,508 
graveliners or reimbursement for privately purchased outer 
burial receptacles.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $71,248,171,000 for Compensation 
and pensions. This is an increase of $10,648,316,000 above the 
fiscal year 2013 enacted level and equal to the budget request.
    The appropriation includes $9,232,000 in payments to the 
General operating expenses, veterans benefits administration; 
Medical support and compliance; 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.
    Military Sexual Trauma.--The Committee notes that in July 
2010, the VA relaxed evidentiary standards for combat veterans 
with Post Traumatic Stress Disorder [PTSD]. In doing so, the VA 
acknowledged that it is often difficult for many veterans to 
produce documentation verifying a specific stressor. Moving 
forward, the Committee urges the VBA to take similar steps to 
formally relax evidentiary standards for military sexual trauma 
victims for whom PTSD has been recognized as a frequently 
occurring consequence. The Committee also notes that in recent 
Congressional testimony, VBA acknowledged the need to improve 
the process for determining military sexual trauma cases. 
Subsequently, VBA testified that it would begin reviewing 
denied military sexual trauma cases in which PTSD was the 
condition claimed by the veteran. Within 90 days after 
enactment of this act, the Committee directs the VBA to provide 
the Committees on Appropriations of both Houses of Congress an 
update on the status of this review as well as data on the 
number of denied claims it has reviewed and expects to review.

                         READJUSTMENT BENEFITS

Appropriations, 2013.................................... $12,023,458,000
Budget estimate, 2014...................................  13,135,898,000
House allowance.........................................  13,135,898,000
Committee recommendation................................  13,135,898,000

                          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 $13,135,898,000 for Readjustment 
benefits. This is an increase of $1,112,440,000 above the 
fiscal year 2013 enacted level and equal to the budget request.
    Education Counseling Services.--The Committee is encouraged 
that the Department is now required to develop a comprehensive 
policy to improve outreach and transparency to veterans and 
members of the Armed Forces through the provision of 
information on institutions of higher learning as mandated in 
Public Law 112-249. However, the Committee remains concerned 
that a majority of veterans receiving education benefits 
provided by the Department is still not requesting education 
counseling services available to them pursuant to section 3697A 
of title 38, United States Code. No later than 180 days after 
enactment of this act, the Committee directs the Secretary to 
submit a report to the Committees on Appropriations of both 
Houses of Congress regarding the Department's education 
counseling services provided to veterans. This report should 
include: (1) an assessment of what efforts the Department has 
already undertaken to improve outreach and data collection for 
veterans' educational counseling and expand the availability of 
such counseling to veterans pursuant to Public Law 112-249; (2) 
an evaluation of the effectiveness of these efforts to reach 
more veterans with this counseling and improve the data on 
institutions of higher learning available to them; and (3) an 
examination of the feasibility of providing education 
counseling to all veterans in an efficient and affordable 
manner to ensure they understand the type of education benefits 
and services available to them, unless an individual veteran 
requests not to receive such counseling, and a proposal as to 
how this expanded counseling could be implemented by the 
Department.

                   VETERANS INSURANCE AND INDEMNITIES

Appropriations, 2013....................................    $104,600,000
Budget estimate, 2014...................................      77,567,000
House allowance.........................................      77,567,000
Committee recommendation................................      77,567,000

                          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 $77,567,000 for Veterans insurance 
and indemnities. This is a decrease of $27,033,000 below the 
fiscal year 2013 enacted level and equal to the budget request. 
The Department estimates there will be 6,924,298 policies in 
force in fiscal year 2014 with a value of $1,344,419,710,000.

                 VETERANS HOUSING BENEFIT PROGRAM FUND

------------------------------------------------------------------------
                                                         Administrative
                                       Program account      expenses
------------------------------------------------------------------------
Appropriations, 2013................      $184,859,000      $157,606,000
Budget estimate, 2014...............  ................       158,430,000
House allowance.....................  ................       158,430,000
Committee recommendation............  ................       158,430,000
------------------------------------------------------------------------

                          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 $158,430,000 for administrative 
expenses for fiscal year 2014. 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, 2013................           $19,000          $346,000
Budget estimate, 2014...............             5,000           354,000
House allowance.....................             5,000           354,000
Committee recommendation............             5,000           354,000
------------------------------------------------------------------------

                          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 10 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 $5,000 for program costs and 
$354,000 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 $2,500,000. It is 
estimated that the VA will make 2,738 loans in fiscal year 
2014, with an average amount of $913.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

Appropriations, 2013....................................      $1,088,000
Budget estimate, 2014...................................       1,109,000
House allowance.........................................       1,109,000
Committee recommendation................................       1,109,000

                          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 $1,109,000 for administrative 
expenses associated with this program. This is $21,000 above 
the fiscal year 2013 enacted level and equal to the budget 
request.

                     Veterans Health Administration

Appropriations, 2013\1\................................. $53,287,887,000
Advance appropriations, 2014............................  54,462,000,000
Budget estimate, 2014...................................     743,164,000
House allowance, 2014...................................     585,664,000
Committee recommendation, 2014..........................     710,664,000
Budget estimate, advance appropriation, 2015............  55,634,227,000
House allowance, advance appropriation, 2015............  55,634,227,000
Committee recommendation, advance appropriation, 2015...  55,634,227,000

\1\Includes emergency funding of $27,000,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                        ADMINISTRATION OVERVIEW

    The Veterans Health Administration [VHA] operates the 
largest Federal medical care delivery system in the country, 
with 152 hospitals, 1,208 outpatient clinics and Vet Centers, 
133 nursing homes, and 107 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 2013, the Committee provided $54,462,000,000 
in advance appropriations for the VA's medical care accounts 
for fiscal year 2014. This included $43,557,000,000 for Medical 
services; $6,033,000,000 for Medical support and compliance; 
and $4,872,000,000 for Medical facilities. The Committee also 
includes an Administrative Provision allowing the Department to 
carry forward into fiscal year 2015 certain amounts provided as 
an advance for fiscal year 2014. For fiscal year 2014, the 
Committee recommends an additional $25,000,000 for Medical 
services and $100,000,000 for Medical facilities. Additionally, 
the Committee recommendation includes $585,664,000 for Medical 
and prosthetic research. Medical care collections are expected 
to be $2,485,000,000. The recommendation also includes an 
advance appropriation of $55,634,227,000 for veterans medical 
care for fiscal year 2015.
    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 2014 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 $157,500,000 for 
the Medical services account. However, the justification 
accompanying the budget request provides few details regarding 
the modified data. Absent detailed budget justification, it is 
impossible for the Committee to assess the merits of the 
request. It is imperative that the Department provide detailed 
explanations of the request in future budget submissions, 
beginning with fiscal year 2015. Additionally, the Department 
is directed to include in its budget justifications actual 
operational savings achieved in the previous 2 fiscal years so 
that a comparison can be made between actual and estimated 
savings.
    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.

                           AREAS OF INTEREST

    VA Nursing Academy.--The Committee commends the VA for 
addressing the nursing shortage through the Veterans Affairs 
Nursing Academy. This pilot program established partnerships 
with competitively selected nursing schools to expand the 
number of teaching faculty in VA facilities and affiliated 
nursing schools in order to increase student enrollment in 
baccalaureate nursing programs. The Committee notes the VA's 
realization of a net-positive value for the pilot overall and 
urges the VA to continue its collaboration with the Department 
of Defense through the Uniformed Services University of the 
Health Services [USUHS] by providing nurse faculty and nursing 
students in the graduate nursing education programs through the 
external evaluation period.
    Office of Inspector General Findings.--The Committee is 
concerned by the VA's response to findings resulting from 
Office of Inspector General [OIG] investigations at the 
Department's healthcare facilities. To cite just one example, 
past findings at the G.V. ``Sonny'' Montgomery VA Medical 
Center [VAMC] in Jackson, Mississippi, were not appropriately 
resolved. The Committee commends the Department for taking 
steps to establish new leadership at the Medical Center and 
charging them to make the necessary changes in order to provide 
the best possible care to veterans served at the facility. 
However, concern remains among patients and families regarding 
the quality of care and management provided at that facility. 
Therefore, the Secretary is directed to provide a report within 
180 days of enactment of the act to the Committees on 
Appropriations of both Houses of Congress on the resolution of 
these past issues at the Montgomery VAMC. Because this is not 
isolated to the Montgomery VAMC, the Committee also directs the 
Secretary to develop a process for reviewing progress on 
implementing recommendations made subsequent to any OIG 
investigation and report. The Secretary is directed to provide 
a report within 180 days of enactment of the act to the 
Committees on Appropriations of both Houses of Congress on the 
development of such a process.
    Office of Health Information/Office of Informatics and 
Analytics.--Last year, the Department was directed to provide 
the Committees on Appropriations of both Houses of Congress a 
report detailing the findings of an internal VA review 
regarding potential duplication of functions in the Office of 
Health Information and the Office of Informatics and Analytics. 
To date, the Committee has not received this report and directs 
the Department to provide this review within 14 days after 
enactment of this act.
    Historical Artifacts.--The Department of Veterans Affairs 
maintains historic buildings nationwide which house documents, 
photographs, and artifacts that are not maintained at the 
National Archives and are stored in various VA facilities 
throughout the country under conditions that do not meet 
Federal curation requirements and which are not routinely 
accessible to the public and researchers. The Committee 
supports efforts by the Veterans Health Administration to take 
steps to improve storage conditions as well as public access to 
these historic artifacts. The Committee encourages the 
Department to establish training programs for VA personnel on 
proper maintenance of these artifacts.

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $41,516,562,000
Advance appropriations, 2014............................  43,557,000,000
Budget estimate, 2014...................................     157,500,000
House allowance.........................................................
Committee recommendation, 2014..........................      25,000,000
Budget estimate, advance appropriation, 2015............  45,015,527,000
House allowance, advance appropriation, 2015............  45,015,527,000
Committee recommendation, advance appropriation, 2015...  45,015,527,000

\1\Includes emergency funding of $21,000,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                          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 2013, the Committee provided an advance 
appropriation of $43,557,000,000 for fiscal year 2014. The 
recommendation for fiscal year 2014 includes an additional 
$25,000,000 instead of $157,500,000 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 of 
funding carried forward from fiscal year 2013 be applied to 
unanticipated needs. In addition, the VA has the authority to 
retain co-payments and third-party collections, estimated to 
total $2,485,000,000 in fiscal year 2014.
    The Committee recommendation also includes an advance 
appropriation of $45,015,527,000 for medical services for 
fiscal year 2015. This is $1,458,527,000 above the level for 
fiscal year 2014 and equal to the fiscal year 2015 budget 
request.
    The fiscal year 2014 appropriation includes $6,974,224,000 
for mental healthcare; $83,203,000 for suicide prevention; 
$4,059,200,000 to provide medical care to Afghanistan and Iraq 
war veterans; $245,000,000 for readjustment counseling services 
at Vet Centers (a $15,000,000 increase over the original budget 
request); $2,478,000,000 for prosthetics; $421,900,000 in 
gender specific healthcare for women veterans; and 
$1,392,742,000 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.
    Rural Health.--The Committee is encouraged by the VA's 
recent efforts to improve access to quality healthcare for our 
Nation's rural veterans. However, far too many of these 
veterans encounter significant barriers that hinder access to 
the care they need. Therefore, the Committee strongly urges the 
VA to improve the accessibility, efficiency, and effectiveness 
of care for rural veterans by more aggressively focusing 
attention and resources on contracting with local private 
providers when appropriate, particularly in the area of mental 
health; improving accessibility to Vet Centers and the critical 
readjustment counseling and care they provide; and expanding 
the VHA telemedicine program, which would allow services to be 
brought to more veterans' homes or local clinics while 
providing a savings through a reduction in transportation 
costs.
    The Committee recognizes the ongoing challenges of the VA 
to recruit and retain highly qualified healthcare 
professionals, particularly mental health professionals and 
those in rural areas. Subsequent staffing shortages ultimately 
lead to higher out-of-pocket costs for veterans as well as 
decreased quality of care. The Committee urges the VHA to 
expand partnerships with other Federal agencies, such as the 
Department of Health and Human Services and the Indian Health 
Service, to draw upon the collective resources of these 
agencies, to explore additional ways to collaborate at the 
Federal, State, and local levels, and to fully utilize 
technological advances that bring care closer to home for more 
rural Americans. Additionally, the Committee urges VHA to work 
collaboratively with these agencies on workforce issues and to 
thoroughly evaluate and aggressively deploy innovative 
approaches to recruiting and retaining quality physicians, 
surgeons, and other healthcare professionals, particularly 
mental health professionals and those in rural areas.
    Grants for Transportation of Veterans in Highly Rural 
Areas.--The Committee recognizes that Public Law 111-163 took a 
number of meaningful steps to enhance care for veterans, 
including authorization of a grant program that will allow 
State veterans agencies and veterans service organizations to 
provide better transportation options for rural veterans 
seeking care at a VA facility. The Committee notes that, 
although this legislation was signed into law 3 years ago, the 
final rules for the grant program have yet to be published, and 
no funds have been awarded. The Committee is concerned further 
delay in implementation of this grant program will further 
impede rural veterans from receiving the critical services they 
need. Therefore, the Committee directs the Department to 
expedite this process and publish the final rule as soon as 
possible. Additionally, the Committee directs the Department to 
report to the Committees on Appropriations of both Houses of 
Congress no later than 90 days after enactment of this act 
progress made in publishing and implementing this rule.
    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. The fiscal year 2014 
recommendation includes an additional $3,000,000 over the 
fiscal year 2014 budget estimate for the VA's National Centers 
for Post Traumatic Stress Disorder to establish a brain tissue 
bank which will allow VA researchers to facilitate cutting edge 
PTSD research and to develop a PTSD outreach program designed 
to reach veterans who reside in rural or highly rural areas.
    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, 2014, (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 
2013; the number of veterans who actually traveled to that 
facility during fiscal and calendar year 2013; 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 2014 and 2015. 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 2013 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.
    Homeless Veterans.--The Committee recognizes the importance 
of providing veterans who are at high risk of homelessness due 
to traumatic brain injuries or mental health conditions, such 
as post-traumatic stress disorder, with the resources that they 
need to prevent homelessness. Although veteran homelessness has 
declined over 7 percent since 2011, the Committee is concerned 
with the increasing number of at-risk veterans. The Committee 
believes there is an imminent requirement for innovative, cost-
effective strategies designed to prevent these particularly 
vulnerable veterans from becoming homeless. The Committee 
recommends the Department pursue models that seek to help 
veterans before they become homeless.
    Vet Centers.--The Committee notes that Vet Centers have 
played a crucial role in the recovery and rehabilitation of 
thousands of combat veterans and their families. In doing so, 
these centers have provided critical services such as 
readjustment and family counseling, mental health screening, 
employment assessment, outreach and education, assistance with 
disability claims, and many other services. For this reason, 
the Committee has included an additional $15,000,000 over the 
budget request to support the Vet Centers program. The 
Committee is concerned that these critical services are not 
readily accessible to all veterans, and many Vet Centers are 
operating at full capacity. As such, the Committee urges the VA 
to formulate a multiyear plan to greatly expand the Vet Center 
program to include, but not be limited to, efforts to deploy 
additional mobile Vet Centers.
    Pop-Up and Virtual Vet Centers for Rural Alaska.--The 
Department is credited for its efforts in implementing 
initiatives utilizing telemedicine technology to extend care to 
veterans living in rural communities. Of note, VA utilizes vans 
in the continental United States to bring the Vet Center 
program to veterans who do not live near the VA's ``bricks and 
mortar'' Vet Centers; however, the utilization of mobile vans 
to deliver Vet Center services is not possible in the vast 
stretches of roadless, rural Alaska. The Department is 
encouraged to address this gap by considering ``pop-up'' Vet 
Center programs at regional and statewide gatherings which 
attract significant numbers of rural Alaska veterans. The 
Committee also encourages VA to consider utilizing publicly 
available Internet technology and virtual meeting services to 
organize virtual Vet Center programs to reach veterans living 
in remote areas of Alaska. The Department is directed to report 
to the Committees on Appropriations of both Houses of Congress 
not later than February 1, 2014, on the feasibility of 
extending Vet Center services in this manner.
    Caregivers.--The Committee recognizes the success of the 
Caregivers Program and the value of expanding this program to 
all veterans who do not otherwise have access to home care 
through the Federal Government. Therefore, VA shall assess the 
impact of expanding the Caregivers Program to veterans of all 
eras and report such findings to the Committees on 
Appropriations of both Houses of Congress. Additionally, the VA 
is directed to provide any available information regarding the 
number of individuals currently providing care to veterans not 
eligible for the Caregiver Program.
    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 its outdated operating rooms. This capital improvement 
effort has been a critical 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.
    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.
    Veterans Affairs/Indian Health Service Collaboration.--The 
Department is to be credited for its efforts to establish 
partnerships with the Indian Health Service and Indian tribes 
that deliver healthcare under the Indian Self Determination and 
Educational Assistance Act for Indian and non-Indian veterans 
who live closer to Indian health facilities in Alaska than they 
do to VA facilities. The Committee intends to monitor the VA's 
progress in implementing these efforts. Therefore, no later 
than February 1, 2014, the Department, following consultation 
with participating Alaska Native healthcare programs, is 
directed to provide the Committees on Appropriations of both 
Houses of Congress a report on its progress in implementing 
these partnerships, including challenges faced and difficulties 
encountered in delivering healthcare to veterans in rural 
Alaska through these partnerships.
    Orthotics and Prosthetics Workforce.--With a large portion 
of VA's workforce reaching retirement age and a lack of 
availability of advanced degree programs necessary to train new 
professionals, the Committee is concerned about the 
sustainability of the orthotics and prosthetics workforce 
treating veterans. 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 skillset necessary to provide the increasingly complex, 
state-of-the-art orthotic and prosthetic care for Iraq and 
Afghanistan war 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 to report the findings to the Committees on Appropriations 
of both Houses of Congress within 180 days of enactment of this 
act.
    Complementary and Alternative Medicine.--To improve 
veterans access to complementary and alternative medicine 
therapies at VA facilities, the Committee encourages the 
Department to work with the Office of Personnel Management to 
establish the necessary coding for VA to hire providers to 
deliver complementary and alternative medicine therapies.
    VA Trainee Support Program.--In 2006, Congress passed 
Public Law 109-461 authorizing the VA to employ licensed 
professional mental health counselors [LPMHC] and marriage and 
family therapists [MFT]. Seven years later, the two professions 
comprise less than 1 percent of the VA behavioral health 
workforce, despite representing 40 percent of the general 
mental health workforce. The VA's Trainee Support Program 
administered by the Office of Academic Affiliations is one of 
the flagship recruitment programs for the VA. However, LPMHCs 
and MFTs are not eligible for paid traineeships. The Office of 
Academic Affiliations has the authority to determine 
participating professions and has not extended the program to 
LPMHCs or MFTs despite the fact that allowing these professions 
to receive stipends through the program would help address 
workforce shortages within the VA. The Committee supports and 
encourages the VA to provide LPMHCs and MTFs with financial 
stipends equivalent to the other mental health professions 
through the VA Trainee Support Program. Therefore, the 
Committee directs the Veterans Health Administration to submit 
a report to the Committees on Appropriations of both Houses of 
Congress no later than 90 days after enactment of this act, 
describing steps being taken to end this inequity and make 
LPMHCs and MFTs eligible for the Trainee Support Program.

                     MEDICAL SUPPORT AND COMPLIANCE

Appropriations, 2013....................................  $5,744,161,000
Advance appropriations, 2014............................   6,033,000,000
Budget estimate, advance appropriation, 2015............   5,879,700,000
House allowance, advance appropriation, 2015............   5,879,700,000
Committee recommendation, advance appropriation, 2015...   5,879,700,000

    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 2014 and 2015 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 2013, the Committee provided an advance 
appropriation of $6,033,000,000 for fiscal year 2014 for the 
Medical support and compliance account. The Committee 
recommendation includes an advance appropriation of 
$5,879,700,000 for Medical support and compliance for fiscal 
year 2015.
    The recommendation also includes an Administrative 
Provision which rescinds $50,000,000 from the fiscal year 2014 
Medical support and compliance account and has redirected this 
funding to higher priority items within VHA. Last year, the 
Committee provided explicit direction to VHA to include 
detailed budget explanations for several components within the 
Medical support and compliance account. For instance, the 
fiscal year 2014 advance included $911,000,000 for VHA Central 
Office functions. While the Committee understands that 
healthcare systems require strong management to ensure that 
healthcare is provided in a timely and efficient manner, the 
justification accompanying the budget request lacks any detail 
on how the budget was developed. Additionally, the Committee 
understands that most of VHA's funding decisions are driven by 
an actuarial model designed to capture the best data and 
provide a realistic view of funding needs in the field. 
However, budget development for central office functions and 
VISN staff offices are highly driven by fixed requirements, not 
ones that are dynamic in nature. Thus, the Department should be 
able to show with great specificity how these budgets are 
developed. Without this information, the request has no 
fidelity, and the Committee is left without the appropriate 
data to determine if these are in fact wise investments in an 
ever shrinking budget environment. The Committee directs that 
the Department include detailed budget explanations and a zero-
based budget build for components within the Medical support 
and compliance account in future justifications. Without 
detailed budget explanations from the Department, the Committee 
will continue to use its own judgment when determining the 
validity of future Medical support and compliance requests. For 
fiscal year 2014, the Committee directs that VHA apply the 
$50,000,000 reduction to VHA Central Office functions.

                           MEDICAL FACILITIES

Appropriations, 2013\1\.................................  $5,445,259,000
Advance appropriations, 2014............................   4,872,000,000
Budget estimate, 2014...................................................
Committee recommendation, 2014..........................     100,000,000
Budget estimate, advance appropriation, 2015............   4,739,000,000
House allowance, advance appropriation, 2015............   4,739,000,000
Committee recommendation, advance appropriation, 2015...   4,739,000,000

\1\Includes emergency funding of $6,000,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                          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 2013, the Committee provided an advance 
appropriation of $4,872,000,000 for fiscal year 2014 for the 
Medical facilities account. The Committee recommendation also 
includes an additional $100,000,000 for the Medical facilities 
account. 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 $4,739,000,000 for Medical facilities for 
fiscal year 2015. This is $233,000,000 below the level for 
fiscal year 2014 and equal to the budget request.
    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 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, 2013....................................    $581,905,000
Budget estimate, 2014...................................     585,664,000
House allowance.........................................     585,664,000
Committee recommendation................................     585,664,000

                          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 $585,664,000 for Medical and 
prosthetic research. This is $3,759,000 above the fiscal year 
2013 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.
    The Committee believes the published reports and findings 
of VA research should be easily accessible not only for 
academic researchers and medical professionals, but for 
veterans and the general public as well. To that end, the 
Committee also encourages the Department to exemplify and 
promote the highest level of public accountability by making 
its published reports and findings available in an online 
database that is easily searchable, similar to the online 
reporting tools utilized by the National Institutes of Health 
[NIH] which provide public access to its reports, data, and 
analyses of NIH research activities, including information on 
NIH expenditures and the results of NIH supported research.
    Alzheimer's Research.--The Committee recognizes that the 
Department is a member of the Advisory Council on Alzheimer's 
Research, Care and Services, and applauds the VA for its 
longstanding focus on research and innovations in care that 
affects the lives of veterans, particularly the Resources for 
Enhancing Alzheimer's Caregiver Health program that supports 
caregivers. Within VA's Traumatic Brain Injury research 
program, the Committee urges development of a subprogram to 
advance scientific understanding of Alzheimer's disease and 
dementia. Accordingly it should focus specifically on issues of 
greatest impact to the veteran population. The VA is also 
encouraged to actively collaborate with external communities to 
develop and deploy within the Department a registry for 
veterans suffering from Alzheimer's disease. Additionally, the 
Department should build off this effort by developing 
initiatives that could expedite clinical trial enrollments and 
related activities in order to accelerate the pace of 
developing disease modifying therapies and treatments.
    Care of Veterans Suffering From Amyotrophic Lateral 
Sclerosis [ALS].--The Department is credited for granting ALS 
the presumption of service connection and providing care to 
veterans who suffer from the degenerative disease. The 
Committee strongly supports VA's research efforts in the search 
for therapeutics that can help veterans suffering from ALS lead 
fuller and more functional lives. In particular, the Committee 
encourages VA to consider making diaphragmatic pacing devices 
available to veterans who may benefit from this therapy. 
Therefore, no later than February 1, 2014, the Department is 
directed to provide the Committees on Appropriations of both 
Houses of Congress a report on its efforts to care for veterans 
with ALS, including its evaluation of diaphragmatic pacing 
devices.

                 MEDICAL CARE COST RECOVERY COLLECTIONS

                      MEDICAL CARE COLLECTION FUND

Appropriations, 2013....................................  $2,527,000,000
Budget estimate, 2014...................................   2,485,000,000
House allowance.........................................   2,485,000,000
Committee recommendation................................   2,485,000,000

             MEDICAL CARE COLLECTION FUND--REVENUES APPLIED

Appropriations, 2013.................................... -$2,527,000,000
Budget estimate, 2014...................................  -2,485,000,000
House allowance.........................................  -2,485,000,000
Committee recommendation................................  -2,485,000,000

                          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 $2,485,000,000 in fiscal year 2014. 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. 
Additionally, the Department should exercise greater oversight 
of its individual offices and their respective contracting 
behavior so as to eliminate unnecessary or duplicated functions 
and spending.

                    National Cemetery Administration

Appropriations, 2013\1\.................................    $260,043,000
Budget estimate, 2014...................................     250,000,000
House allowance.........................................     250,000,000
Committee recommendation................................     250,000,000

\1\Includes emergency funding of $2,100,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                        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 $250,000,000 for the National 
Cemetery Administration. This is a decrease of $10,043,000 
below the fiscal year 2013 enacted level and equal to the 
budget request.
    The Committee has included bill language to make available 
through September 30, 2015, up to $25,000,000 of the National 
Cemetery Administration appropriation.

                      Departmental Administration

Appropriations, 2013\1\.................................  $7,500,148,000
Budget estimate, 2014...................................   7,842,568,000
House allowance.........................................   7,842,568,000
Committee recommendation................................   7,894,130,000

\1\Includes emergency funding of $207,531,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                        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 $7,894,130,000 for Departmental 
Administration. The amount is composed of $415,885,000 for 
General administration; $2,465,490,000 for General operating 
expenses, veterans benefits administration; $3,703,344,000 for 
Information technology systems; $121,411,000 for the Office of 
the Inspector General; $342,130,000 for Construction, major 
projects; $714,870,000 for Construction, minor projects; 
$85,000,000 for Grants for construction of State extended care 
facilities; and $46,000,000 for Grants for the construction of 
State veterans cemeteries.

                         GENERAL ADMINISTRATION

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013....................................    $424,176,000
Budget estimate, 2014...................................     403,023,000
House allowance.........................................     393,023,000
Committee recommendation................................     415,885,000

                          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 $415,885,000 for General 
administration. This amount is $8,291,000 below the fiscal year 
2013 enacted level and $12,862,000 above the budget request. 
The Department's budget request includes reductions below the 
fiscal year 2013 enacted level for all General Administration 
offices. The Committee recommendation supports those reductions 
except for the Board of Veterans Appeals. The Board is 
responsible for making final decisions on behalf of the 
Department for appealed veterans benefits claims. The Committee 
strongly believes that the wait time and backlog at the Board 
of Veterans Appeals are unacceptable and that the budget 
request is insufficient to address the number of benefits 
claims on appeal. Therefore, the Committee recommendation 
includes an additional $12,862,000 for the Board of Veterans 
Appeals. The Committee believes that the same energy being put 
into reducing the current backlog and average adjudication time 
of benefits claims must also be applied at the appellate level. 
The Department is directed to develop and submit to the 
Committees on Appropriations of both Houses of Congress a 
strategic plan that outlines how it intends to reduce the 
number of appeals pending at the Board of Veterans Appeals. The 
strategic plan shall also address how the Board intends to 
improve the timeliness and accuracy of decisions. The plan 
shall contain an explanation of the projection model used by 
the Board in calculating future workload, a staffing model to 
address future workloads, and descriptions to include 
performance results of any ongoing or planned initiatives 
designed to speed the processing of appeals and improve the 
accuracy of decisions.
    The Committee has included bill language to make available 
through September 30, 2015, up to $20,151,150 for General 
administration. The funding recommendation for each line office 
is provided in the table below.

                                             GENERAL ADMINISTRATION
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year     Fiscal year
                           Department                              2013 enacted     2014 budget      Committee
                                                                       level          request     recommendation
----------------------------------------------------------------------------------------------------------------
Office of the Secretary.........................................          10,072          10,032          10,032
Board of Veterans Appeals.......................................          85,892          75,432          88,294
Office of General Counsel.......................................          82,989          80,365          80,365
Office of Management............................................          45,538          44,098          44,098
Office of Human Resources and Administration....................          70,286          68,064          68,064
Office of Policy and Planning...................................          25,980          25,009          25,009
Office of Operations, Security, and Preparedness................          18,486          17,901          17,901
Office of Public and Intergovernmental Affairs..................          23,007          22,279          22,279
Office of Congressional and Legislative Affairs.................           6,294           5,969           5,969
Office of Acquisition, Logistics and Construction...............          55,632          53,874          53,874
                                                                 -----------------------------------------------
      Total.....................................................         424,176         403,023         415,885
----------------------------------------------------------------------------------------------------------------

    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 2013. 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.
    Oversight of Construction Activities.--The Committee 
believes that VA Central Office needs to strengthen its 
oversight of all construction activities in the field. 
Therefore, no later than 60 days after enactment of this act, 
the Office of the Secretary is directed to provide to the 
Committees on Appropriations of both Houses of Congress a 
report outlining processes that are in place to ensure proper 
oversight of construction. This report should identify which 
components of central oversight are performed outside of the 
various VA administrations and whether spot audits are 
performed in the field.
    Veterans Outreach.--The Committee commends the Department 
for its ongoing efforts to measure the overall quality of life 
for veterans. The Committee also encourages communication with 
veterans to increase awareness of the services available to 
them, particularly those veterans whose circumstances might be 
greatly enhanced by the utilization of veteran programs. The 
Committee encourages the utilization of outreach and awareness 
best practices, including the study of multi-channel outreach 
methods, to find and communicate more effectively with 
veterans.

      GENERAL OPERATING EXPENSES, VETERANS BENEFITS ADMINISTRATION

Appropriations, 2013....................................  $2,161,218,000
Budget estimate, 2014...................................   2,455,490,000
House allowance.........................................   2,455,490,000
Committee recommendation................................   2,465,490,000

                          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 $2,465,490,000 for General 
operating expenses, veterans benefits administration, which is 
$304,272,000 above fiscal year 2013 enacted level and 
$10,000,000 above the budget request. The Committee has 
included bill language to make available through September 30, 
2015, up to $123,000,000 for General operating expenses, 
veterans benefits administration.
    Claims Processing.--The recommendation includes an 
additional $10,000,000 for the General operating expenses, 
veterans benefits administration account. The additional funds 
are provided for targeted overtime and increased training 
programs for Regional Offices that the Secretary determines 
need additional resources in order to enhance claims processing 
production and quality. While much of the national spotlight 
has been focused on eliminating the unacceptable number of 
backlogged claims, quality cannot be sacrificed in this 
endeavor. The Committee is aware that over the past year, the 
Department has established Quality Review Teams [QRT] and 
expanded training programs. QRTs are charged with assessing the 
performance of claims processing operations and bridging the 
gap between local standards and national standards to ensure 
that quality metrics are maintained. The Committee believes 
that it is critical that QRTs perform follow-up spot audits in 
Regional Offices that have undergone challenge training to 
ensure that national quality standards are being followed. 
Additionally, the VA must ensure that all training programs for 
claims processors are routinely followed-up with testing and 
monitoring at regular intervals. Moreover, when it is 
determined that a poorly performing Regional Office is in need 
of supplemental enrichment or challenge training, the VA must 
have a clearly defined action plan to minimize operational 
disruptions at the Regional Office during the supplemental 
training. In order 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 2014.
    Centers of Excellence.--Over the course of the next year, 
the VA will be migrating from a largely paper-based process to 
an electronic system. This transformation will bring with it 
the opportunity for multiple claims personnel to work a single, 
complex, multiple condition claim simultaneously from anywhere 
in the country. For instance, 10 years ago large paper files 
had to be copied and sent via mail to another Regional Office 
in order for this to occur. This process would tack on days, if 
not weeks, to the adjudication of the claim. In a real time, 
electronic environment it will be possible for different claims 
processors with different skill sets to simultaneously work one 
complex claim. Therefore, the Committee directs the Department 
to establish a pilot to create Centers of Excellence for highly 
complex, multiple condition claims. The pilot should focus on 
those Regional Offices with highly trained specialists in 
complex conditions which will allow the VA to leverage 
expertise across the Nation. The Department is directed to 
provide a report to the Committees on Appropriations of both 
Houses of Congress no later than 180 days after enactment of 
this act outlining a plan to create these centers.
    Rural Veterans and Access to the Internet.--The Committee 
finds that access to broadband data transmission service in 
rural communities is frequently lacking and poses an impediment 
to rural veterans who are working to file fully developed 
claims electronically. The Committee urges the VA to work with 
State, local, and tribal governments to find ways to 
accommodate veterans in rural areas who want to submit fully 
developed claims but do not have adequate access to the 
Internet. In many rural communities, public libraries are the 
only provider of free Internet access. As such, the Committee 
also urges the VA to work with the Institute of Museum and 
Library Services and local libraries on ways to help veterans 
access online VA resources.

                     INFORMATION TECHNOLOGY SYSTEMS

Appropriations, 2013\1\.................................  $3,323,584,000
Budget estimate, 2014...................................   3,683,344,000
House allowance.........................................   3,693,344,000
Committee recommendation................................   3,703,344,000

\1\Includes emergency funding of $531,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                          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 $3,703,344,000 for the Information 
technology systems account. This amount is $379,760,000 above 
the fiscal year 2013 enacted level and $20,000,000 above the 
budget request. The Committee recommendation includes 
$1,011,400,000 for staff salaries and expenses, $2,196,653,000 
for operation and maintenance of existing programs, and 
$495,291,000 for program development, all according to the 
Department's fiscal year 2014 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 will enhance 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 supported every request for the development 
and deployment of the Veterans Benefits Management System 
[VBMS]. The Committee is aware that the Department has 
accelerated its efforts to deploy initial VBMS capability to 
all Regional Offices by the end of June 2013. In order to 
minimize the risk of performance problems, the Committee 
recommendation includes an additional $20,000,000 in the 
Information Technology System's operation and maintenance 
subaccount for VBA to increase server capacity and provide 
other hardware upgrades at the 56 Regional Offices. 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
    Additionally, the Committee is aware that the Department of 
Veterans Affairs and the Department of Defense [DOD] have 
entered into an agreement for DOD to provide all records to the 
VA in an electronic format by the end of 2014. The Committee 
supports this effort but strongly believes that this timeline 
needs to be accelerated. Therefore, the Committee directs the 
VA to accelerate this effort by being prepared to receive these 
documents electronically by the end of calendar year 2013. 
Similarly, the DOD fiscal year 2014 appropriations bill will 
carry a directive instructing DOD to accelerate this program. 
In order to track progress, the Committee directs the VA to 
submit a report to the Committees on Appropriations of both 
Houses of Congress no later than February 1, 2014, on the 
percentage of all records, including ``late and loose flowing'' 
records, transmitted electronically to VA from the DOD.
    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 2014      Committee
               Project                  budget request   recommendation
------------------------------------------------------------------------
Access to Healthcare................             3,645             3,645
Integrated Electronic Health Record            251,882           251,882
 [iEHR] & VLER Health...............
New Models of Care..................            32,647            32,647
Veterans Benefits Management System             32,834            32,834
 [VBMS].............................
Virtual Lifetime Electronic Record              11,352            11,352
 [VLER].............................
Veterans Relationship Management               120,157           120,157
 [VRM]..............................
Health Informatics..................             7,774             7,774
International Classification of                  4,600             4,600
 Diseases--10.......................
Other...............................            30,400            30,400
                                     -----------------------------------
      Total, All Development........           495,291           495,291
------------------------------------------------------------------------

    Integrated Electronic Health Record [iEHR].--The Committee 
is frustrated with the disappointing effort displayed over the 
past year by the Departments of Veterans Affairs and Defense to 
continue development of an integrated Electronic Health Record 
[iEHR]. Nearly 20 years ago, the issue of incompatible 
electronic records was documented for the Departments. Five 
years ago, full interoperability of electronic records was 
mandated by the Congress. In 2011, the Departments decided to 
replace their respective existing legacy electronic health 
record systems and agreed to jointly develop an electronic 
health record through the Interagency Program Office [IPO]. The 
original schedule estimated operating capability for iEHR by 
2017.
    In February 2013, because of cost and schedule issues, both 
Secretaries decided to take iEHR in a different strategic 
direction: focusing on creating an interoperable system and a 
subsequent integrated health record, rather than building a 
single integrated core system as previously agreed. The 
Committee understands both Departments believe this new 
approach will result in a lower overall cost of development and 
an accelerated timeline for completion. However, the Committee 
remains concerned by the lack of a well articulated plan 
forward and the lack of results of development to date. For 
instance, the Committee has yet to receive a detailed plan, 
including a timeline, benchmarks, or total cost for this major 
project. The Committee wants to be very clear with both 
Departments: the current environment of fragmented and stove-
piped systems is not an acceptable option. The Departments must 
develop and convey to the Committee a coherent path forward for 
the successful deployment of an interoperable system and 
integrated electronic health record. Further, the IPO must be 
more transparent regarding day-to-day functioning, including 
articulating a clear governance structure and a detailed plan 
to manage and maintain accountability on behalf of both 
Departments. In short, the IPO must prove to the Committee that 
it can produce substantial achievements and adhere to a defined 
plan forward within the budget estimates.
    Included in Public Law 113-6 is a prohibition on obligation 
or expenditure of fiscal year 2013 funds for the development of 
iEHR until the Departments submit to the Appropriations 
subcommittees of jurisdiction a plan for expenditure that meets 
the outlined requirements. To date, no such a plan has been 
submitted and therefore VA and DOD have been limited to 
obligating only 25 percent of the fiscal year 2013 appropriated 
funds. Due to the Departments' inability to obligate fiscal 
year 2013 iEHR development funds and the lack of compliance 
with the requirements outlined in the bill, the Committee 
continues to include bill language limiting the obligation or 
expenditure of funds to 25 percent for the development of iEHR 
in fiscal year 2014 until both Departments provide the 
subcommittees of jurisdiction an expenditure plan including a 
long-term roadmap for the life of the project, with annual and 
total spending for each Department and quarterly milestones. 
The expenditure plan should also be submitted to the Government 
Accountability Office [GAO] for review.
    The Committee continues to expect briefings from the IPO on 
a quarterly basis providing a detailed explanation of the cost 
and schedule of iEHR development, including milestones, 
knowledge points, and acquisition timelines as it impacts both 
Departments, as well as quarterly obligation reports. Due to 
concerns about electronic data security, the Committee 
encourages the Department to utilize technologies like those 
developed at the Department of Homeland Security's Center of 
Innovation to protect and secure VA's electronic health record 
system as it gains interoperability with the system maintained 
by the Department of Defense.
    Common Framework for Injury Registries.--The Committee 
supports the development of joint registries shared by the 
Departments of Veterans Affairs and Defense [DOD] to track the 
diagnosis, treatment, and outcomes of particular injuries and 
other medical conditions, such as significant eye injuries that 
occur while on active duty service. Currently, most registries 
are developed and administered individually, and the Committee 
is encouraged by DOD plans to establish a common framework to 
operate the various injury registries as a single portfolio for 
both DOD and VA. A common platform will standardize data and 
reporting; allow clinicians to identify patients with multiple 
injuries to coordinate and improve treatment; and provide an 
integrated and comprehensive dataset to more effectively 
analyze medical care strategies and long-term outcomes. The 
Committee directs VA to review DOD's joint registry 
consolidation plan and report to the Committee within 180 days 
after enactment of this act on the feasibility of such a plan 
and how VA would work with DOD to execute a common framework.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2013....................................    $114,848,000
Budget estimate, 2014...................................     116,411,000
House allowance.........................................     116,411,000
Committee recommendation................................     121,411,000

                          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 $121,411,000 for the Office of 
Inspector General. This is $6,563,000 above the fiscal year 
2013 enacted level and $5,000,000 above the budget request. The 
OIG recently issued a report outlining problems veterans face 
in receiving timely access to mental health services. In light 
of the OIG's findings, the Committee has provided an increase 
for the Inspector General to increase audits of the Veterans 
Health Administration and field activities. The Committee has 
included bill language to make available through September 30, 
2015, up to $6,000,000 for the Office of the Inspector General.
    Collaboration With the Department of Defense.--While the 
Department of Veterans Affairs and the Department of Defense 
[DOD] may have different missions they are at their core, bound 
together in a mutual mission to support those who have served 
in the defense of the country. Over the past several years, 
collaboration between the Departments has significantly 
increased and the number of joint projects and services has 
expanded. The Committee applauds these efforts and believes 
that future information sharing between DOD and VA must 
strengthen in order to ensure a seamless transition from Active 
Duty and timely access to VA benefits.
    Nowhere is this more evident than in the transmission of 
service treatment records from DOD to VA. These records are 
essential in the VA's process of making accurate and timely 
determinations of benefits to which a veteran may be entitled. 
The Committee has been deeply concerned that while cooperation 
between the two Departments has significantly increased, delays 
in information sharing still plague the system. In order to 
increase the oversight of this process, the recommendation 
includes bill language directing the VA OIG to work in 
coordination with the DOD Inspector General to assess the time 
it takes for service treatment records to be transmitted to VA, 
impediments to providing the records in a useable, electronic 
format, and recommendations to streamline this process. The 
Committee further directs that this report be submitted to the 
Committees on Appropriations of both Houses of Congress no 
later than July 31, 2014. The DOD appropriations bill will 
contain a similar directive to the DOD Inspector General.

                      CONSTRUCTION, MAJOR PROJECTS

Appropriations, 2013\1\.................................    $738,767,000
Budget estimate, 2014...................................     342,130,000
House allowance.........................................     342,130,000
Committee recommendation................................     342,130,000

\1\Includes emergency funding of $207,000,000 in the Disaster Relief 
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

                          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 $342,130,000 
for the construction of major projects. This is $396,637,000 
below the fiscal year 2013 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 2014      Committee
      Location and description         budget request    recommendation
------------------------------------------------------------------------
Veterans Health Administration
 [VHA]:
    Seattle, Washington--Mental                149,130           149,130
     Health Clinic and Research
     Facility.......................
    Advance Planning Fund--Various              33,000            33,000
     Locations......................
    Asbestos--Various Locations.....             5,000             5,000
    Major Construction Staff--                  21,000            21,000
     Various Locations..............
    Claims Analysis--Various                     2,000             2,000
     Locations......................
    Hazardous Waste--Various                     5,000             5,000
     Locations......................
                                     -----------------------------------
      Total, VHA....................           215,130           215,130
                                     ===================================
National Cemetery Administration
 [NCA]:
    Central East Florida............            40,000            40,000
    Tallahassee, Florida............            40,000            40,000
    Omaha, Nebraska.................            36,000            36,000
    Advance Planning Fund--Various               5,000             5,000
     Locations......................
                                     -----------------------------------
      Total, NCA....................           121,000           121,000
                                     ===================================
Veterans Benefits Administration
 [VBA]:
    Advance Planning Fund...........             1,000             1,000
                                     -----------------------------------
      Total, VBA....................             1,000             1,000
                                     ===================================
General Administration--Staff                    5,000             5,000
 Offices, Advance Planning Fund.....
                                     ===================================
      Total Construction, Major                342,130           342,130
       Projects.....................
------------------------------------------------------------------------

    DOD/VA Joint Medical Facilities.--The Committee understands 
the National Defense Authorization Act [NDAA] for Fiscal Year 
2003 directed the Secretaries of Veterans Affairs and Defense 
to establish a joint incentives program to identify and provide 
incentives to implement, fund, and evaluate creative healthcare 
coordination and sharing initiatives between DOD and VA. In 
August 2004, 12 projects were selected and approved for 
implementation. Today, 3 of the 12 are still awaiting funding. 
The Committee intends to monitor the VA's progress on the 
implementation of approved DOD/VA joint medical facility 
projects. Therefore, the VA is directed to provide the 
Committees on Appropriations of both Houses of Congress an 
update on the progress and status of the remaining three 
projects that were selected and approved for implementation. 
The study shall include an explanation of the VA Strategic 
Capital Investment Planning [SCIP] process and methodology for 
ranking of capital investment priorities, as well as any 
potential recommendations by VA to resolve the implementation 
of SCIP priorities that have been pending for 3 or more years.
    The fiscal year 2012 Military Construction and Veterans 
Affairs, and Related Agencies Appropriations bill included 
report language instructing the VA and General Services 
Administration [GSA] to complete a report by March 2012 on more 
timely and cost-effective solutions for addressing the VA's 
enormous physical infrastructure needs. Despite the urgency of 
this problem, the report has yet to be submitted to the 
Committee. Therefore, the Committee directs the VA and GSA to 
complete and submit the final report within 45 days of 
enactment of this act.

                      CONSTRUCTION, MINOR PROJECTS

Appropriations, 2013....................................    $606,728,000
Budget estimate, 2014...................................     714,870,000
House allowance.........................................     714,870,000
Committee recommendation................................     714,870,000

                          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 $714,870,000 for minor 
construction. This is $108,142,000 above the fiscal year 2013 
enacted level and equal to the budget request.
    The recommendation includes $541,879,000 for the Veterans 
Health Administration, $89,426,000 for the National Cemetery 
Administration, $25,067,000 for General Administration--Staff 
Offices, and $58,498,000 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, 2013....................................     $84,888,000
Budget estimate, 2014...................................      82,650,000
House allowance.........................................      82,650,000
Committee recommendation................................      85,000,000

                          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 $85,000,000 for grants for the 
construction of State extended care facilities. This is 
$2,350,000 above the budget request.
    The Committee is aware that many State Veterans Homes are 
operating at or near the capacity allowed under the VA's 
regulations for the maximum number of nursing home and 
domiciliary care beds for veterans. To ensure VA regulations 
appropriately provide for individual State needs, the Committee 
directs the VA to conduct the review required under 38 U.S.C. 
8134 in fiscal year 2014, and in carrying out that review, take 
into consideration the demonstrated significant need in any 
State, as evidenced by the high occupancy rate of such States' 
veterans homes, and allocate additional beds for any State 
demonstrating such significant need.

             GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Appropriations, 2013....................................     $45,939,000
Budget estimate, 2014...................................      44,650,000
House allowance.........................................      44,650,000
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 $1,350,000 
above the budget request.

                       Administrative Provisions


                     (INCLUDING TRANSFER 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 the Salaries and expenses account.
    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 2013 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 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. 225. 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. 226. The Committee includes a provision rescinding 
funds from certain accounts and appropriating additional 
amounts with 2-year authority.
    Sec. 227. The Committee includes a provision requiring 
notification of all bid savings for major construction 
projects.
    Sec. 228. The Committee includes a provision restricting 
scope increases for major construction projects above that 
specified in the original project justification.
    Sec. 229. The Committee includes a provision prohibiting 
the use of funds in the act for any contract using procedures 
that do not give to small business concerns owned and 
controlled by veterans any preference with respect to such 
contract, except for a preference given to small business 
concerns owned and controlled by service-disabled veterans.
    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.

                               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, 2013\1\.................................     $61,225,000
Budget estimate, 2014...................................      58,200,000
House allowance.........................................      57,980,000
Committee recommendation................................      63,200,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends $63,200,000 for the Salaries and 
expenses account. This amount is $1,975,000 above the fiscal 
year 2013 enacted level and $5,000,000 above the budget 
request. The Committee has provided additional funds to support 
ABMC's interpretive program and nonrecurring maintenance needs.

                     FOREIGN CURRENCY FLUCTUATIONS

Appropriations, 2013\1\.................................     $14,788,000
Budget estimate, 2014...................................      14,100,000
House allowance.........................................      14,100,000
Committee recommendation................................      14,100,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends an estimated $14,100,000 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, 2013\1\.................................     $31,601,000
Budget estimate, 2014...................................      35,408,000
House allowance.........................................      35,272,000
Committee recommendation................................      35,408,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends $35,408,000 for the U.S. Court of 
Appeals for Veterans Claims. This amount is $3,807,000 above 
the fiscal year 2013 enacted level and equal to 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, 2013\1\.................................     $64,018,000
Budget estimate, 2014...................................      45,800,000
House allowance.........................................      70,685,000
Committee recommendation................................      70,800,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends $70,800,000 for Salaries and 
expenses. This amount is $6,782,000 above the fiscal year 2013 
enacted level and $25,000,000 above the budget request. The 
Committee is aware that Arlington National Cemetery currently 
has a backlog of infrastructure repairs totaling $56,996,561. 
As it did last year, the administration's budget submission for 
the Department of Defense's military construction programs 
contains an Administrative Provision which would allow the 
Secretary of the Army to transfer funds appropriated to the 
Army's Operation and Maintenance account to Arlington National 
Cemetery. The justification material accompanying the budget 
submission estimated that the transfer would not exceed 
$25,000,000 in fiscal year 2014. However, this was merely an 
estimate, and the proposed language did not seek to cap the 
amount that could be transferred, nor did it provide any 
mechanism for reporting to Congress the amounts transferred, 
thus limiting the budgetary oversight provided by the 
Committee. The Committee believes that funding for the 
operation of Arlington National Cemetery should be provided 
within this account and not spread across multiple accounts in 
different appropriation bills. In order to address the 
shortfall and provide greater visibility of budgetary resources 
and oversight, the recommendation includes an additional 
$25,000,000 within this account and does not provide the 
transfer authority from the Army's Operation and Maintenance 
account. In the future, the Committee strongly encourages the 
Department of Defense to budget 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.
    The Committee directs the Executive Director of Arlington 
National Cemetery to continue the office's audits of past 
contracts and outstanding financial obligations, and update the 
Committee on its findings along with quarterly reports on 
unexpended prior year funding, status updates on the upgrading 
of the information technology systems, and reports on ANC's 
expansion plans. The Committee encourages cemetery officials 
and the Department of the Army to work with the Department of 
Veterans Affairs in the development of a common architecture 
software for the information technology system for Arlington 
National Cemetery.

                              CONSTRUCTION

Appropriations, 2013\1\.................................    $100,211,000
Budget estimate, 2014...................................................
House allowance.........................................................
Committee recommendation................................................

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The administration did not request, and the Committee does 
not recommend, any funding for the Cemeterial Expenses, Army, 
Construction account. In fiscal year 2013, the Committee 
provided full funding for the Millennium Project and funding 
for initial planning and design for the future expansion of 
Arlington National Cemetery to the Navy Annex site. The 
Committee anticipates future construction requests once initial 
planning and design is complete.

                      Armed Forces Retirement Home


                               TRUST FUND

Appropriations, 2013\1\.................................     $65,760,000
Budget estimate, 2014...................................      67,800,000
House allowance.........................................      67,400,000
Committee recommendation................................      67,800,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public 
Law 112-25.
---------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee recommends authority to expend $67,800,000 
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.
    Sec. 413. The Committee includes a provision regarding the 
fiscal year 2014 budget conference.

                     PROGRAM, PROJECT, AND ACTIVITY

    In fiscal year 2014, 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, 2014, 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 2013 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 2014 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 Construction, Air Force
    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 June 27, 2013, 
the Committee ordered favorably reported the bill (H.R. 2216), 
making appropriations for military construction, the Department 
of Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2014, and for other purposes, subject to 
amendment, by a recorded vote of 23-6, a quorum being present. 
The vote was as follows:
        Yeas                          Nays
Chairwoman Mikulski                 Mr. Shelby
Mr. Leahy                           Mr. McConnell
Mr. Harkin                          Mr. Alexander
Mrs. Murray                         Mr. Graham
Mrs. Feinstein                      Mr. Coats
Mr. Durbin                          Mr. Johanns
Mr. Johnson
Ms. Landrieu
Mr. Reed
Mr. Pryor
Mr. Tester
Mr. Udall
Mrs. Shaheen
Mr. Merkley
Mr. Begich
Mr. Cochran
Ms. Collins
Ms. Murkowski
Mr. Kirk
Mr. Blunt
Mr. Moran
Mr. Hoeven
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.''
    The Committee bill as recommended contains no such 
provisions.

                        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
                                                           guidance\1\      bill        guidance        bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 guidance to its subcommittees of amounts for 2014:
 Subcommittee on Military Construction and Veterans
 Affairs, and Related Agencies:
    Mandatory...........................................           NA        81,475            NA     \2\81,172
    Discretionary.......................................       74,366        74,366            NA     \2\76,510
        Security........................................       10,688        10,688            NA            NA
        Nonsecurity.....................................       63,678        63,678            NA            NA
Projections of outlays associated with the
 recommendation:
    2014................................................  ............  ............  ............    \3\87,076
    2015................................................  ............  ............  ............        5,964
    2016................................................  ............  ............  ............        4,349
    2017................................................  ............  ............  ............        1,895
    2018 and future years...............................  ............  ............  ............        1,440
Financial assistance to State and local governments for            NA           144            NA            -8
 2014...................................................

----------------------------------------------------------------------------------------------------------------
\1\There is no section 302(a) allocation to the Committee on Appropriations for fiscal year 2014.
\2\Includes outlays from prior-year budget authority.
\3\Excludes outlays from prior-year budget authority.

NA: Not applicable.


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

                            ALABAMA

ARMY NATIONAL GUARD:
    DECATUR:
        NATIONAL GUARD READINESS CENTER ADD/ALT...............            4,000             4,000             4,000   ................  ................
AIR NATIONAL GUARD:
    BIRMINGHAM IAP:
        ADD TO AND ALTER DISTRIBUTED GROUND STATION F.........            8,500             8,500             8,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ALABAMA......................................           12,500            12,500            12,500   ................  ................

                            ALASKA

ARMY:
    FORT WAINWRIGHT:
        AVIATION BATTALION COMPLEX............................           45,000            45,000            45,000   ................  ................
        AVIATION STORAGE HANGAR...............................           58,000            58,000            58,000   ................  ................
DEFENSE-WIDE:
    CLEAR AFS:
        BMDS UPGRADE EARLY WARNING RADAR......................           17,204            17,204            17,204   ................  ................
    FORT GREELY:
        MECHANICAL-ELECTRICAL BUILDING MISSILE FIELD #1.......           82,000            82,000            82,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ALASKA.......................................          202,204           202,204           202,204   ................  ................

                            ARIZONA

AIR FORCE:
    LUKE AFB:
        F-35 FIELD TRAINING DETACHMENT........................            5,500             5,500             5,500   ................  ................
        F-35 SQ OPS/AIRCRAFT MAINTENANCE UNIT #3..............           21,400            21,400            21,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ARIZONA......................................           26,900            26,900            26,900   ................  ................

                           ARKANSAS

ARMY NATIONAL GUARD:
    FORT CHAFFEE:
        SCOUT/RECCE GUNNERY COMPLEX...........................           21,000            21,000            21,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ARKANSAS.....................................           21,000            21,000            21,000   ................  ................

                          CALIFORNIA

NAVY:
    BARSTOW:
        ENGINE DYNAMOMETER FACILITY...........................           14,998            14,998            14,998   ................  ................
    CAMP PENDLETON:
        AMMUNITION SUPPLY POINT UPGRADE.......................           13,124            13,124            13,124   ................  ................
    CORONADO:
        H-60 TRAINER FACILITY.................................            8,910             8,910             8,910   ................  ................
    POINT MUGU:
        AIRCRAFT ENGINE TEST PADS.............................            7,198             7,198             7,198   ................  ................
        BAMS CONSOLIDATED MAINTENANCE HANGAR..................           17,469            17,469            17,469   ................  ................
    PORT HUENEME:
        UNACCOMPANIED HOUSING CONVERSION......................           33,600            33,600            33,600   ................  ................
    SAN DIEGO:
        STEAM PLANT DECENTRALIZATION..........................           34,331            34,331            34,331   ................  ................
    TWENTYNINE PALMS:
        CAMP WILSON INFRASTRUCTURE UPGRADES...................           33,437            33,437            33,437   ................  ................
AIR FORCE:
    BEALE AFB:
        DISTRIBUTED COMMON GROUND STATION OPERATIONS BUILDING.           62,000            62,000            62,000   ................  ................
DEFENSE-WIDE:
    BRAWLEY:
        SOF DESERT WARFARE TRAINING CENTER....................           23,095            23,095            23,095   ................  ................
    DEFENSE DISTRIBUTION DEPOT--TRACY:
        GENERAL PURPOSE WAREHOUSE.............................           37,554            37,554            37,554   ................  ................
    MIRAMAR:
        REPLACE FUEL PIPELINE.................................            6,000             6,000             6,000   ................  ................
ARMY RESERVE:
    CAMP PARKS:
        ARMY RESERVE CENTER...................................           17,500            17,500            17,500   ................  ................
    FORT HUNTER LIGGETT:
        TASS TRAINING CENTER [TTC]............................           16,500            16,500            16,500   ................  ................
NAVY RESERVE:
    MARCH AFB:
        NOSC MORENO VALLEY RESERVE TRAINING CENTER............           11,086            11,086            11,086   ................  ................
AIR FORCE RESERVE:
    MARCH AFB:
        JOINT REGIONAL DEPLOYMENT PROCESSING CENTER...........           19,900            19,900            19,900   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, CALIFORNIA...................................          356,702           356,702           356,702   ................  ................

                           COLORADO

ARMY:
    FORT CARSON:
        AIRCRAFT MAINTENANCE HANGAR...........................           73,000            73,000            73,000   ................  ................
        AIRCRAFT MAINTENANCE HANGAR...........................           66,000            66,000            66,000   ................  ................
        CENTRAL ENERGY PLANT..................................           34,000            34,000            34,000   ................  ................
        FIRE STATION..........................................           12,000            12,000            12,000   ................  ................
        HEADQUARTERS BUILDING.................................           33,000            33,000            33,000   ................  ................
        RUNWAY................................................           12,000            12,000            12,000   ................  ................
        SIMULATOR BUILDING....................................           12,200            12,200            12,200   ................  ................
DEFENSE-WIDE:
    FORT CARSON:
        SOF GROUP SUPPORT BATTALION...........................           22,282            22,282            22,282   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, COLORADO.....................................          264,482           264,482           264,482   ................  ................

                            FLORIDA

ARMY:
    EGLIN AFB:
        AUTOMATED SNIPER FIELD FIRE RANGE.....................            4,700             4,700             4,700   ................  ................
NAVY:
    JACKSONVILLE:
        P-8A TRAINING AND PARKING APRON EXPANSION.............           20,752            20,752            20,752   ................  ................
    KEY WEST:
        AIRCRAFT CRASH/RESCUE AND FIRE HEADQUARTERS...........           14,001            14,001            14,001   ................  ................
    MAYPORT:
        LCS LOGISTICS SUPPORT FACILITY........................           16,093            16,093            16,093   ................  ................
AIR FORCE:
    TYNDALL AFB:
        F-22 MUNITIONS STORAGE COMPLEX........................            9,100             9,100             9,100   ................  ................
DEFENSE-WIDE:
    HURLBURT FIELD:
        SOF ADD/ALTER OPERATIONS FACILITY.....................            7,900             7,900             7,900   ................  ................
    JACKSONVILLE:
        REPLACE FUEL PIPELINE.................................            7,500             7,500             7,500   ................  ................
    KEY WEST:
        SOF BOAT DOCKS........................................            3,600   ................            3,600   ................           +3,600
    PANAMA CITY:
        REPLACE GROUND VEHICLE FUELING FACILITY...............            2,600             2,600             2,600   ................  ................
    TYNDALL AFB:
        REPLACE FUEL PIPELINE.................................            9,500             9,500             9,500   ................  ................
ARMY NATIONAL GUARD:
    PINELLAS PARK:
        READY BUILDING........................................            5,700             5,700             5,700   ................  ................
AIR FORCE RESERVE:
    HOMESTEAD AFS:
        ENTRY CONTROL COMPLEX.................................            9,800             9,800             9,800   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, FLORIDA......................................          111,246           107,646           111,246   ................           +3,600

                            GEORGIA

ARMY:
    FORT GORDON:
        ADV INDIVIDUAL TRAINING BARRACKS COMPLEX, PHASE 2.....           61,000            61,000            61,000   ................  ................
NAVY:
    ALBANY:
        CERS DISPATCH FACILITY................................            1,010             1,010             1,010   ................  ................
        WEAPONS STORAGE AND INSPECTION FACILITY...............           15,600            15,600            15,600   ................  ................
    SAVANNAH:
        TOWNSEND BOMBING RANGE LAND ACQ--PHASE 1..............           61,717            61,717            61,717   ................  ................
DEFENSE-WIDE:
    FORT BENNING:
        FAITH MIDDLE SCHOOL ADDITION..........................            6,031             6,031             6,031   ................  ................
        WHITE ELEMTARY SCHOOL REPLACEMENT.....................
                                                                         37,304            37,304            37,304   ................  ................
    FORT STEWART:
        DIAMOND ELEMENTARY SCHOOL REPLACEMENT.................           44,504            44,504            44,504   ................  ................
    HUNTER ARMY AIRFIELD:
        REPLACE FUEL ISLAND...................................           13,500            13,500            13,500   ................  ................
    MOODY AFB:
        REPLACE GROUND VEHICLE FUELING FACILITY...............            3,800             3,800             3,800   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GEORGIA......................................          244,466           244,466           244,466   ................  ................

                            HAWAII

ARMY:
    FORT SHAFTER:
        COMMAND AND CONTROL FACILITY--ADMIN...................           75,000            65,000            75,000   ................          +10,000
NAVY:
    KANEOHE BAY:
        3RD RADIO BN MAINTENANCE/OPERATIONS COMPLEX...........           25,336            25,336            25,336   ................  ................
        AIRCRAFT MAINTENANCE EXPANSION........................           16,968            16,968            16,968   ................  ................
        AIRCRAFT MAINTENANCE HANGAR UPGRADES..................           31,820            31,820            31,820   ................  ................
        ARMORY ADDITION AND RENOVATION........................           12,952            12,952            12,952   ................  ................
        AVIATION SIMULATOR MODERNIZATION/ADDITION.............           17,724            17,724            17,724   ................  ................
        MV-22 HANGAR..........................................           57,517            57,517            57,517   ................  ................
        MV-22 PARKING APRON AND INFRASTRUCTURE................           74,665            74,665            74,665   ................  ................
    PEARL CITY:
        WATER TRANSMISSION LINE...............................           30,100            30,100            30,100   ................  ................
    PEARL HARBOR:
        DRYDOCK WATERFRONT FACILITY...........................           22,721            22,721            22,721   ................  ................
        SUBMARINE PRODUCTION SUPPORT FACILITY.................           35,277            35,277            35,277   ................  ................
AIR FORCE:
    JOINT BASE PEARL HARBOR-HICKAM:
        C-17 MODERNIZE HANGAR 35, DOCKS 1 AND 2...............            4,800             4,800             4,800   ................  ................
DEFENSE-WIDE:
    FORD ISLAND:
        DISA PACIFIC FACILITY UPGRADES........................            2,615             2,615             2,615   ................  ................
    JOINT BASE PEARL HARBOR-HICKAM:
        ALTER WAREHOUSE SPACE.................................            2,800             2,800             2,800   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, HAWAII.......................................          410,295           400,295           410,295   ................          +10,000

                           ILLINOIS

NAVY:
    GREAT LAKES:
        UNACCOMPANIED HOUSING.................................           35,851            35,851            35,851   ................  ................
ARMY NATIONAL GUARD:
    KANKAKEE:
        AIRCRAFT MAINTENANCE HANGAR...........................           28,000            28,000            28,000   ................  ................
        READINESS CENTER......................................           14,000            14,000            14,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ILLINOIS.....................................           77,851            77,851            77,851   ................  ................

                            INDIANA

AIR NATIONAL GUARD:
    HULMAN REGIONAL AIRPORT:
        ADD/ALTER BUILDING 37 FOR DIST COMMON GROUND STN......            7,300             7,300             7,300   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, INDIANA......................................            7,300             7,300             7,300   ................  ................

                            KANSAS

ARMY:
    FORT LEAVENWORTH:
        SIMULATIONS CENTER....................................           17,000            17,000            17,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KANSAS.......................................           17,000            17,000            17,000   ................  ................

                           KENTUCKY

ARMY:
    FORT CAMPBELL:
        BATTLEFIELD WEATHER SUPPORT FACILITY..................            4,800             4,800             4,800   ................  ................
AIR FORCE:
    FORT CAMPBELL:
        19TH AIR SUPPORT OPERATIONS SQUADRON EXPANSION........            8,000             8,000             8,000   ................  ................
DEFENSE-WIDE:
    BLUE GRASS ARMY DEPOT:
        AMMUNITION DEMILITARIZATION FACILITY, PHASE XIV.......          122,536           122,536           122,536   ................  ................
    FORT CAMPBELL:
        FORT CAMPBELL HIGH SCHOOL REPLACEMENT.................           59,278            59,278            59,278   ................  ................
        MARSHALL ELEMENTARY SCHOOL REPLACEMENT................           38,591            38,591            38,591   ................  ................
        SOF GROUP SPECIAL TROOPS BATTALION....................           26,342            26,342            26,342   ................  ................
    FORT KNOX:
        AMBULATORY HEALTH CENTER..............................          265,000           265,000           215,000           -50,000           -50,000
        CONS/REPLACE VAN VOORHIS-MUDGE ELEMENTARY SCHOOLS.....           38,023            38,023            38,023   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KENTUCKY.....................................          562,570           562,570           512,570           -50,000           -50,000

                             MAINE

NAVY:
    BANGOR:
        NCTAMS VLF COMMERCIAL POWER CONNECTION................           13,800            13,800            13,800   ................  ................
    KITTERY:
        STRUCTURAL SHOPS CONSOLIDATION........................           11,522            11,522            11,522   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MAINE........................................           25,322            25,322            25,322   ................  ................

                           MARYLAND

ARMY:
    ABERDEEN PROVING GROUND:
        OPERATIONS AND MAINTENANCE FACILITIES.................           21,000            21,000            21,000   ................  ................
    FORT DETRICK:
        ENTRY CONTROL POINT...................................            2,500             2,500             2,500   ................  ................
        HAZARDOUS MATERIAL STORAGE BUILDING...................            4,600             4,600             4,600   ................  ................
NAVY:
    FORT MEADE:
        MARFORCYBERCOM HQ-OPS BUILDING........................           83,988   ................           83,988   ................          +83,988
AIR FORCE:
    FORT MEADE:
        CYBERCOM JOINT OPERATIONS CENTER, INCREMENT 1.........           85,000            85,000            85,000   ................  ................
    JOINT BASE ANDREWS:
        HELICOPTER OPERATIONS FACILITY........................           30,000            30,000            30,000   ................  ................
DEFENSE-WIDE:
    ABERDEEN PROVING GROUND:
        PUBLIC HEALTH COMMAND LAB REPLACEMENT.................          210,000           110,000           210,000   ................         +100,000
    BETHESDA [WRNMMC]:
        MECHANICAL AND ELECTRICAL IMPROVEMENTS................           46,800            46,800            46,800   ................  ................
        PARKING GARAGE........................................           20,000            20,000            20,000   ................  ................
    FORT DETRICK:
        USAMRIID REPLACEMENT STAGE 1, INCR 8..................           13,000   ................           13,000   ................          +13,000
    FORT MEADE:
        HIGH PERFORMANCE COMPUTING CENTER INC 3...............          431,000           431,000           431,000   ................  ................
        NSAW RECAPITALIZE BUILDING #1/SITE M INC 2............           58,000            58,000            58,000   ................  ................
    JOINT BASE ANDREWS:
        AMBULATORY CARE CENTER INC 2..........................           76,200            63,800            76,200   ................          +12,400
AIR NATIONAL GUARD:
    FORT MEADE:
        175TH NETWORK WARFARE SQUADRON FACILITY...............            4,000   ................            4,000   ................           +4,000
    MARTIN STATE AIRPORT:
        CYBER/ISR FACILITY....................................            8,000   ................            8,000   ................           +8,000
ARMY RESERVE:
    BOWIE:
        ARMY RESERVE CENTER...................................           25,500            25,500            25,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MARYLAND.....................................        1,119,588           898,200         1,119,588   ................         +221,388

                         MASSACHUSETTS

DEFENSE-WIDE:
    HANSCOM AFB:
        HANSCOM PRIMARY SCHOOL REPLACEMENT....................           36,213            36,213            36,213   ................  ................
ARMY NATIONAL GUARD:
    CAMP EDWARDS:
        ENLISTED BARRACKS, TRANSIENT TRAINING ADD.............           19,000            19,000            19,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MASSACHUSETTS................................           55,213            55,213            55,213   ................  ................

                           MICHIGAN

ARMY NATIONAL GUARD:
    CAMP GRAYLING:
        ENLISTED BARRACKS, TRANSIENT TRAINING.................           17,000            17,000            17,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MICHIGAN.....................................           17,000            17,000            17,000   ................  ................

                           MINNESOTA

ARMY NATIONAL GUARD:
    STILLWATER:
        READINESS CENTER......................................           17,000            17,000            17,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MINNESOTA....................................           17,000            17,000            17,000   ................  ................

                          MISSISSIPPI

ARMY NATIONAL GUARD:
    CAMP SHELBY:
        WATER SUPPLY/TREATMENT BUILDING, POTABLE..............            3,000             3,000             3,000   ................  ................
    PASCAGOULA:
        READINESS CENTER......................................            4,500             4,500             4,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MISSISSIPPI..................................            7,500             7,500             7,500   ................  ................

                           MISSOURI

ARMY:
    FORT LEONARD WOOD:
        ADV INDIVIDUAL TRAINING BARRACKS COMPLEX, PHASE 1.....           86,000            86,000            86,000   ................  ................
        SIMULATOR BUILDING....................................            4,700             4,700             4,700   ................  ................
AIR FORCE:
    WHITEMAN AFB:
        WSA MOP IGLOOS AND ASSEMBLY FACILITY..................            5,900             5,900             5,900   ................  ................
ARMY NATIONAL GUARD:
    MACON:
        VEHICLE MAINTENANCE SHOP..............................            9,100             9,100             9,100   ................  ................
    WHITEMAN AFB:
        AIRCRAFT MAINTENANCE HANGAR...........................            5,000             5,000             5,000   ................  ................
NAVY RESERVE:
    KANSAS CITY:
        RESERVE TRAINING CENTER--BELTON, MISSOURI.............           15,020            15,020            15,020   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MISSOURI.....................................          125,720           125,720           125,720   ................  ................

                            MONTANA

AIR NATIONAL GUARD:
    GREAT FALLS IAP:
        INTRA-THEATER AIRLIFT CONVERSION......................           22,000            22,000            22,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MONTANA......................................           22,000            22,000            22,000   ................  ................

                           NEBRASKA

AIR FORCE:
    OFFUTT AFB:
        USSTRATCOM REPLACEMENT FACILITY, INCR 3...............          136,000           136,000           136,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEBRASKA.....................................          136,000           136,000           136,000   ................  ................

                            NEVADA

NAVY:
    FALLON:
        WASTEWATER TREATMENT PLANT............................           11,334            11,334            11,334   ................  ................
AIR FORCE:
    NELLIS AFB:
        ADD RPA WEAPONS SCHOOL FACILITY.......................           20,000            20,000            20,000   ................  ................
        DORMITORY (240 RM)....................................           35,000            35,000            35,000   ................  ................
        F-35 ALT MISSION EQUIPMENT [AME] STORAGE..............            5,000             5,000             5,000   ................  ................
        F-35 FUEL CELL HANGAR.................................            9,400             9,400             9,400   ................  ................
        F-35 PARTS STORE......................................            9,100             9,100             9,100   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEVADA.......................................           89,834            89,834            89,834   ................  ................

                          NEW JERSEY

DEFENSE-WIDE:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        REPLACE FUEL DISTRIBUTION COMPONENTS..................           10,000            10,000            10,000   ................  ................
ARMY RESERVE:
    JOINT BASE MCGUIRE-DIX-LAKEHURST:
        AUTOMATED MULTIPURPOSE MACHINE GUN [MPMG].............            9,500             9,500             9,500   ................  ................
        CENTRAL ISSUE FACILITY................................            7,900             7,900             7,900   ................  ................
        CONSOLIDATED DINING FACILITY..........................           13,400            13,400            13,400   ................  ................
        MODIFIED RECORD FIRE RANGE............................            5,400             5,400             5,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW JERSEY...................................           46,200            46,200            46,200   ................  ................

                          NEW MEXICO
AIR FORCE:
    CANNON AFB:
        AIRMEN AND FAMILY READINESS CENTER....................            5,500             5,500             5,500   ................  ................
        DORMITORY (144 RM)....................................           22,000            22,000            22,000   ................  ................
        SATELLITE DINING FACILITY.............................            6,600             6,600             6,600   ................  ................
    HOLLOMAN AFB:
        F-16 AIRCRAFT COVERED WASHRACK AND PAD................            2,250             2,250             2,250   ................  ................
    KIRTLAND AFB:
        NUCLEAR SYSTEMS WING AND SUSTAINMENT CENTER PHASE 2...           30,500            30,500            30,500   ................  ................
DEFENSE-WIDE:
    HOLLOMAN AFB:
        MEDICAL CLINIC REPLACEMENT............................           60,000            60,000            60,000   ................  ................
        REPLACE HYDRANT FUEL SYSTEM...........................           21,400            21,400            21,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW MEXICO...................................          148,250           148,250           148,250   ................  ................

                           NEW YORK

ARMY:
    U.S MILITARY ACADEMY:
        CADET BARRACKS, INCR 2................................           42,000            42,000            42,000   ................  ................
ARMY NATIONAL GUARD:
    NEW YORK:
        READINESS CENTER ADD/ALT..............................           31,000            31,000            31,000   ................  ................
AIR NATIONAL GUARD:
    FORT DRUM:
        MQ-9 FLIGHT TRAINING UNIT HANGAR......................            4,700             4,700             4,700   ................  ................
ARMY RESERVE:
    BULLVILLE:
        ARMY RESERVE CENTER...................................           14,500            14,500            14,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NEW YORK.....................................           92,200            92,200            92,200   ................  ................

                        NORTH CAROLINA

ARMY:
    FORT BRAGG:
        COMMAND AND CONTROL FACILITY..........................            5,900             5,900             5,900   ................  ................
NAVY:
    CAMP LEJEUNE:
        LANDFILL--PHASE 4.....................................           20,795            20,795            20,795   ................  ................
        OPERATIONS TRAINING COMPLEX...........................           22,515            22,515            22,515   ................  ................
        STEAM DECENTRALIZATION--BEQ NODES.....................           18,679            18,679            18,679   ................  ................
        STEAM DECENTRALIZATION--CAMP JOHNSON..................            2,620             2,620             2,620   ................  ................
        STEAM DECENTRALIZATION--HADNOT POINT..................           13,390            13,390            13,390   ................  ................
    NEW RIVER:
        CH-53K MAINTENANCE TRAINING FACILITY..................           13,218            13,218            13,218   ................  ................
        CORROSION CONTROL HANGAR..............................           12,547            12,547            12,547   ................  ................
        REGIONAL COMMUNICATION STATION........................           20,098            20,098            20,098   ................  ................
DEFENSE-WIDE:
    CAMP LEJEUNE:
        SOF PERFORMANCE RESILIENCY CENTER.....................           14,400   ................           14,400   ................          +14,400
        SOF SUSTAINMENT TRAINING COMPLEX......................           28,977            28,977            28,977   ................  ................
    FORT BRAGG:
        CONSOLIDATE/REPLACE POPE HOLBROOK ELEMENTARY..........           37,032            37,032            37,032   ................  ................
        SOF CIVIL AFFAIRS BATTALION ANNEX.....................           37,689            37,689            37,689   ................  ................
        SOF COMBAT MEDIC SKILLS SUSTAIN COURSE BUILDING.......            7,600             7,600             7,600   ................  ................
        SOF ENGINEER TRAINING FACILITY........................           10,419            10,419            10,419   ................  ................
        SOF LANGUAGE AND CULTURAL CENTER......................           64,606            64,606            64,606   ................  ................
        SOF UPGRADE TRAINING FACILITY.........................           14,719            14,719            14,719   ................  ................
ARMY RESERVE:
    FORT BRAGG:
        ARMY RESERVE CENTER...................................           24,500            24,500            24,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NORTH CAROLINA...............................          369,704           355,304           369,704   ................          +14,400

                         NORTH DAKOTA

AIR FORCE:
    MINOT AFB:
        B-52 ADAL AIRCRAFT MAINTENANCE UNIT...................           15,530            15,530            15,530   ................  ................
        B-52 MUNITIONS STORAGE IGLOOS.........................            8,300             8,300             8,300   ................  ................
DEFENSE-WIDE:
    MINOT AFB:
        REPLACE FUEL PIPELINE.................................            6,400             6,400             6,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, NORTH DAKOTA.................................           30,230            30,230            30,230   ................  ................

                             OHIO

ARMY NATIONAL GUARD:
    RAVENNA ARMY AMMUNITION PLANT:
        SANITARY SEWER........................................            5,200             5,200             5,200   ................  ................
AIR NATIONAL GUARD:
    SPRINGFIELD BECKLEY-MAP:
        ALTER INTELLIGENCE OPERATIONS FACILITY................            7,200             7,200             7,200   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, OHIO.........................................           12,400            12,400            12,400   ................  ................

                           OKLAHOMA

NAVY:
    TINKER AFB:
        TACAMO E-6B HANGAR....................................           14,144            14,144            14,144   ................  ................
AIR FORCE:
    TINKER AFB:
        KC-46A LAND ACQUISITION...............................            8,600             8,600             8,600   ................  ................
DEFENSE-WIDE:
    ALTUS AFB:
        REPLACE REFUELER PARKING..............................            2,100             2,100             2,100   ................  ................
    TINKER AFB:
        REPLACE FUEL DISTRIBUTION FACILITIES..................           36,000            36,000            36,000   ................  ................
AIR FORCE RESERVE:
    TINKER AFB:
        AIR CONTROL GROUP SQUADRON OPERATIONS.................           12,200            12,200            12,200   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, OKLAHOMA.....................................           73,044            73,044            73,044   ................  ................

                         PENNSYLVANIA

DEFENSE-WIDE:
    DEF DISTRIBUTION DEPOT NEW CUMBERLAND:
        UPGRADE HAZARDOUS MATERIAL WAREHOUSE..................            3,100             3,100             3,100   ................  ................
        UPGRADE PUBLIC SAFETY FACILITY........................            5,900             5,900             5,900   ................  ................
ARMY NATIONAL GUARD:
    FORT INDIANTOWN GAP:
        AIRCRAFT MAINTENANCE INSTRUCTIONAL BUILDING...........           40,000            40,000            40,000   ................  ................
AIR NATIONAL GUARD:
    FORT INDIANTOWN GAP:
        COMMUNICATIONS OPERATIONS AND TRAINING FACILITY.......            7,700             7,700             7,700   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, PENNSYLVANIA.................................           56,700            56,700            56,700   ................  ................

                         RHODE ISLAND

NAVY:
    NEWPORT:
        HEWITT HALL RESEARCH CENTER...........................           12,422            12,422            12,422   ................  ................
AIR NATIONAL GUARD:
    QUONSET STATE AIRPORT:
        C-130J FLIGHT SIMULATOR TRAINING FACILITY.............            6,000             6,000             6,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, RHODE ISLAND.................................           18,422            18,422            18,422   ................  ................

                        SOUTH CAROLINA

NAVY:
    CHARLESTON:
        NUCLEAR POWER OPERATIONAL TRAINING FACILITY...........           73,932            73,932            73,932   ................  ................
DEFENSE-WIDE:
    BEAUFORT:
        BOLDEN ELEMENTARY/MIDDLE SCHOOL REPLACEMENT...........           41,324            41,324            41,324   ................  ................
ARMY NATIONAL GUARD:
    GREENVILLE:
        READINESS CENTER......................................           13,000            13,000            13,000   ................  ................
        VEHICLE MAINTENANCE SHOP..............................           13,000            13,000            13,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, SOUTH CAROLINA...............................          141,256           141,256           141,256   ................  ................

                           TENNESSEE

DEFENSE-WIDE:
    ARNOLD AIR FORCE BASE:
        REPLACE GROUND VEHICLE FUELING FACILITY...............            2,200             2,200             2,200   ................  ................
AIR NATIONAL GUARD:
    MCGHEE-TYSON AIRPORT:
        TEC EXPANSION--DORMITORY AND CLASSROOM FACILITY.......           18,000            18,000            18,000   ................  ................
NAVY RESERVE:
    MEMPHIS:
        RESERVE BOAT MAINTENANCE AND STORAGE FACILITY.........            4,330             4,330             4,330   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, TENNESSEE....................................           24,530            24,530            24,530   ................  ................

                             TEXAS

ARMY:
    FORT BLISS:
        CONTROL TOWER.........................................           10,800            10,800            10,800   ................  ................
        UNMANNED AERIAL VEHICLE COMPLEX.......................           36,000            36,000            36,000   ................  ................
AIR FORCE:
    FORT BLISS:
        F-16 BAK 12/14 AIRCRAFT ARRESTING SYSTEM..............            3,350             3,350             3,350   ................  ................
DEFENSE-WIDE:
    FORT BLISS:
        HOSPITAL REPLACEMENT INCR 5...........................          252,100           152,100           202,100           -50,000           +50,000
    JOINT BASE SAN ANTONIO:
        SAMMC HYPERBARIC FACILITY ADDITION....................           12,600            12,600            12,600   ................  ................
ARMY NATIONAL GUARD:
    FORT WORTH:
        ARMED FORCES RESERVE CENTER ADD.......................           14,270            14,270            14,270   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, TEXAS........................................          329,120           229,120           279,120           -50,000           +50,000

                             UTAH

AIR FORCE:
    HILL AFB:
        F-35 AIRCRAFT MX UNIT HANGAR 45E OPS #1...............           13,500            13,500            13,500   ................  ................
        FIRE CRASH RESCUE STATION.............................           18,500            18,500            18,500   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, UTAH.........................................           32,000            32,000            32,000   ................  ................

                           VIRGINIA

ARMY:
    JOINT BASE LANGLEY-EUSTIS:
        ADV INDIVIDUAL TRAINING BARRACKS COMPLEX, PHASE 3.....           50,000            50,000            50,000   ................  ................
NAVY:
    DAM NECK:
        AERIAL TARGET OPERATION CONSOLIDATION.................           10,587            10,587            10,587   ................  ................
    NORFOLK:
        PIER 11 POWER UPGRADES FOR CVN-78.....................            3,380             3,380             3,380   ................  ................
    QUANTICO:
        ACADEMIC INSTRUCTION FACILITY TECOM SCHOOLS...........           25,731            25,731            25,731   ................  ................
        ATC TRANSMITTER/RECEIVER RELOCATION...................            3,630             3,630             3,630   ................  ................
        FULLER ROAD IMPROVEMENTS..............................            9,013             9,013             9,013   ................  ................
    YORKTOWN:
        SMALL ARMS RANGES.....................................           18,700            18,700            18,700   ................  ................
AIR FORCE:
    JOINT BASE LANGLEY-EUSTIS:
        4-BAY CONVENTIONAL MUNITIONS INSPECTION BUILDING......            4,800             4,800             4,800   ................  ................
DEFENSE-WIDE:
    DAM NECK:
        SOF HUMAN PERFORMANCE CENTER..........................           11,147   ................           11,147   ................          +11,147
    DEF DISTRIBUTION DEPOT RICHMOND:
        OPERATIONS CENTER PHASE 1.............................           87,000            87,000            87,000   ................  ................
    JOINT EXPEDITIONARY BASE LITTLE CREEK-STORY:
        SOF LOGSU TWO OPERATIONS FACILITY.....................           30,404            30,404            30,404   ................  ................
    PENTAGON:
        ARMY NAVY DRIVE TOUR BUS DROP OFF.....................            1,850             1,850   ................           -1,850            -1,850
        BOUNDARY CHANNEL ACCESS CONTROL POINT.................            6,700             6,700             6,700   ................  ................
        PFPA SUPPORT OPERATIONS CENTER........................           14,800            14,800            14,800   ................  ................
        RAVEN ROCK ADMINISTRATIVE FACILITY UPGRADE............           32,000            32,000            32,000   ................  ................
        RAVEN ROCK EXTERIOR COOLING TOWER.....................            4,100             4,100             4,100   ................  ................
    QUANTICO:
        QUANTICO MIDDLE/HIGH SCHOOL REPLACEMENT...............           40,586            40,586            40,586   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, VIRGINIA.....................................          354,428           343,281           352,578            -1,850            +9,297

                          WASHINGTON

ARMY:
    JOINT BASE LEWIS-MCCHORD:
        AIRCRAFT MAINTENANCE HANGAR...........................           79,000            79,000            79,000   ................  ................
        AIRFIELD OPERATIONS COMPLEX...........................           37,000            37,000            37,000   ................  ................
        AVIATION BATTALION COMPLEX............................           28,000            28,000            28,000   ................  ................
    YAKIMA:
        AUTOMATED MULTIPURPOSE MACHINE GUN RANGE..............            9,100             9,100             9,100   ................  ................
NAVY:
    BREMERTON:
        INTEGRATED WATER TREATMENT SYSTEM DRY DOCKS 3 AND 4...           18,189            18,189            18,189   ................  ................
    KITSAP:
        EXPLOSIVES HANDLING WHARF #2 (INC)....................           24,880            24,880            24,880   ................  ................
    WHIDBEY ISLAND:
        EA-18G FACILITY IMPROVEMENTS..........................           32,482            32,482            32,482   ................  ................
        P-8A HANGAR AND TRAINING FACILITIES...................           85,167            85,167            85,167   ................  ................
DEFENSE-WIDE:
    WHIDBEY ISLAND:
        REPLACE FUEL PIER BREAKWATER..........................           10,000            10,000            10,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WASHINGTON...................................          323,818           323,818           323,818   ................  ................

                           WISCONSIN

ARMY RESERVE:
    FORT MCCOY:
        ACCESS CONTROL POINT/MAIL/FREIGHT CENTER..............           17,500            17,500            17,500   ................  ................
        NCO ACADEMY DINING FACILITY...........................            5,900             5,900             5,900   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WISCONSIN....................................           23,400            23,400            23,400   ................  ................

                            WYOMING

ARMY NATIONAL GUARD:
    AFTON:
        NATIONAL GUARD READINESS CENTER.......................           10,200            10,200            10,200   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WYOMING......................................           10,200            10,200            10,200   ................  ................

                        BAHRAIN ISLAND
DEFENSE-WIDE:
    SW ASIA:
        MEDICAL/DENTAL CLINIC REPLACEMENT.....................           45,400            45,400            45,400   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, BAHRAIN ISLAND...............................           45,400            45,400            45,400   ................  ................

                            BELGIUM

DEFENSE-WIDE:
    BRUSSELS:
        NATO HEADQUARTERS FACILITY............................           38,513            38,513            38,513   ................  ................
        NATO HEADQUARTERS FIT-OUT.............................           29,100            29,100            29,100   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, BELGIUM......................................           67,613            67,613            67,613   ................  ................

                           DJIBOUTI

NAVY:
    CAMP LEMONIER:
        ARMORY................................................            6,420             6,420             6,420   ................  ................
        UNACCOMPANIED HOUSING.................................           22,580            22,580            22,580   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, DJIBOUTI.....................................           29,000            29,000            29,000   ................  ................

                            GERMANY

DEFENSE-WIDE:
    KAISERLAUTERN AB:
        KAISERSLAUTERN ELEMENTARY SCHOOL REPLACEMENT..........           49,907            49,907            49,907   ................  ................
    RAMSTEIN AB:
        RAMSTEIN HIGH SCHOOL REPLACEMENT......................           98,762            98,762            98,762   ................  ................
    RHINE ORDNANCE BARRACKS:
        MEDICAL CENTER REPLACEMENT, INCR 3....................          151,545           151,545           101,545           -50,000           -50,000
    WIESBADEN:
        HAINERBERG ELEMENTARY SCHOOL REPLACEMENT..............           58,899            58,899            58,899   ................  ................
        WIESBADEN MIDDLE SCHOOL REPLACEMENT...................           50,756            50,756            50,756   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GERMANY......................................          409,869           409,869           359,869           -50,000           -50,000

                           GREENLAND

AIR FORCE:
    THULE AB:
        THULE CONSOLIDATION, PHASE 2..........................           43,904            43,904            43,904   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GREENLAND....................................           43,904            43,904            43,904   ................  ................

                             GUAM

NAVY:
    JOINT REGION MARIANAS:
        AIRCRAFT MAINTENANCE HANGAR--NORTH RAMP...............           85,673            85,673   ................          -85,673           -85,673
        BAMS FORWARD OPERATIONAL AND MAINTENANCE HANGAR.......           61,702            61,702            61,702   ................  ................
        DEHUMIDIFIED SUPPLY STORAGE FACILITY..................           17,170            17,170            17,170   ................  ................
        EMERGENT REPAIR FACILITY EXPANSION....................           35,860            35,860            35,860   ................  ................
        MODULAR STORAGE MAGAZINES.............................           63,382            63,382            63,382   ................  ................
        SIERRA WHARF IMPROVEMENTS.............................            1,170             1,170             1,170   ................  ................
        XRAY WHARF IMPROVEMENTS...............................           53,420            53,420            53,420   ................  ................
AIR FORCE:
    JOINT REGION MARIANAS:
        PAR--FUEL SYSTEM HARDENED BUILDINGS...................           20,000            20,000            20,000   ................  ................
        PAR--STRIKE TACTICAL MISSILE MXS FACILITY.............           10,530            10,530            10,530   ................  ................
        PAR--TANKER GP MX HANGAR/AMU/SQD OPS..................          132,600           132,600           132,600   ................  ................
        PRTC REDHORSE AIRFIELD OPERATIONS FACILITY............            8,500             8,500             8,500   ................  ................
        PRTC SF FIRE RESCUE AND EMERGENCY MANAGEMENT..........            4,600             4,600             4,600   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, GUAM.........................................          494,607           494,607           408,934           -85,673           -85,673

                             JAPAN

NAVY:
    CAMP BUTLER:
        AIRFIELD SECURITY UPGRADES............................            5,820             5,820             5,820   ................  ................
    YOKOSUKA:
        COMMUNICATION SYSTEM UPGRADE..........................            7,568             7,568             7,568   ................  ................
DEFENSE-WIDE:
    ATSUGI:
        REPLACE GROUND VEHICLE FUELING FACILITY...............            4,100             4,100             4,100   ................  ................
    IWAKUNI:
        CONSTRUCT HYDRANT FUEL SYSTEM.........................           34,000            34,000            34,000   ................  ................
    KADENA AB:
        KADENA MIDDLE SCHOOL ADDITION/RENOVATION..............           38,792            38,792            38,792   ................  ................
    TORRI COMMO STATION:
        SOF FACILITY AUGMENTATION.............................           71,451            63,621            71,451   ................           +7,830
    YOKOSUKA:
        UPGRADE FUEL PUMPS....................................           10,600            10,600            10,600   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, JAPAN........................................          172,331           164,501           172,331   ................           +7,830

                             KOREA

DEFENSE-WIDE:
    CAMP WALKER:
        DAEGU MIDDLE/HIGH SCHOOL REPLACEMENT..................           52,164            52,164            52,164   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KOREA........................................           52,164            52,164            52,164   ................  ................

                           KWAJALEIN

ARMY:
    KWAJALEIN ATOLL:
        PIER..................................................           63,000            63,000            63,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, KWAJALEIN....................................           63,000            63,000            63,000   ................  ................

                        MARIANA ISLANDS

AIR FORCE:
    SAIPAN:
        PAR--AIRPORT POL/BULK STORAGE AST.....................           18,500   ................           18,500   ................          +18,500
        PAR--HAZARDOUS CARGO PAD..............................            8,000   ................            8,000   ................           +8,000
        PAR--MAINTENANCE FACILITY.............................            2,800   ................            2,800   ................           +2,800
                                                               -----------------------------------------------------------------------------------------
          TOTAL, MARIANA ISLANDS..............................           29,300   ................           29,300   ................          +29,300

                          PUERTO RICO

ARMY NATIONAL GUARD:
    CAMP SANTIAGO:
        MANEUVER AREA TRAINING AND EQUIPMENT SITE ADDITION....            5,600             5,600             5,600   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, PUERTO RICO..................................            5,600             5,600             5,600   ................  ................

                            ROMANIA

DEFENSE-WIDE:
    DEVESELU:
        AEGIS ASHORE MISSILE DEF SYS COMPLEX, INCREM 2........           85,000            80,000            85,000   ................           +5,000
                                                               -----------------------------------------------------------------------------------------
          TOTAL, ROMANIA......................................           85,000            80,000            85,000   ................           +5,000

                        UNITED KINGDOM

AIR FORCE:
    RAF CROUGHTON:
        MAIN GATE COMPLEX.....................................           12,000            12,000            12,000   ................  ................
    RAF LAKENHEATH:
        GUARDIAN ANGEL OPERATIONS FACILITY....................           22,047            22,047            22,047   ................  ................
DEFENSE-WIDE:
    RAF LAKENHEATH:
        LAKENHEATH HIGH SCHOOL REPLACEMENT....................           69,638            69,638            69,638   ................  ................
    RAF MILDENHALL:
        REPLACE FUEL STORAGE..................................           17,732            17,732            17,732   ................  ................
        SOF AIRFILED PAVEMENTS................................           24,077   ................  ................          -24,077   ................
        SOF HANGAR/AMU........................................           24,371   ................  ................          -24,371   ................
        SOF AIRFIELD PAVEMENTS AND HANGAR/AMU.................  ................           48,448   ................  ................          -48,448
        SOF MRSP AND PARTS STORAGE............................            6,797             6,797   ................           -6,797            -6,797
        SOF SQUADRON OPERATIONS FACILITY......................           11,652            11,652   ................          -11,652           -11,652
                                                               -----------------------------------------------------------------------------------------
          TOTAL, UNITED KINGDOM...............................          188,314           188,314           121,417           -66,897           -66,897

NATO SECURITY INVESTMENT PROGRAM..............................          239,700           199,700           239,700   ................          +40,000

                     WORLDWIDE CLASSIFIED

ARMY:
    CLASSIFIED LOCATION:
        COMPANY OPERATIONS COMPLEX............................           33,000            33,000            33,000   ................  ................
DEFENSE-WIDE:
    CLASSIFIED LOCATION:
        AN/TPY-2 RADAR SITE...................................           15,000            15,000            15,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
          TOTAL, WORLDWIDE CLASSIFIED.........................           48,000            48,000            48,000   ................  ................

                     WORLDWIDE UNSPECIFIED

ARMY:
    HOST NATION SUPPORT.......................................           33,000            23,000            33,000   ................          +10,000
    MINOR CONSTRUCTION........................................           25,000            25,000            25,000   ................  ................
    PLANNING AND DESIGN.......................................           41,575            41,575            41,575   ................  ................
NAVY:
    PLANNING AND DESIGN.......................................           89,830            89,830            89,830   ................  ................
    MINOR CONSTRUCTION........................................           19,740            19,740            19,740   ................  ................
AIR FORCE:
    KC-46A FTU FACILITY PROJECTS..............................           63,000            63,000            31,000           -32,000           -32,000
    KC-46A MOB #1 FACILITY PROJECTS...........................          192,700           192,700           219,080           +26,380           +26,380
    PLANNING AND DESIGN.......................................           11,314            11,314            14,321            +3,007            +3,007
    UNSPECIFIED MINOR CONSTRUCTION............................           20,448            20,448            20,448   ................  ................
DEFENSE-WIDE:
    CONTINGENCY CONSTRUCTION..................................           10,000   ................           10,000   ................          +10,000
    ENERGY CONSERVATION INVESTMENT PROGRAM....................          150,000           150,000           150,000   ................  ................
    PLANNING AND DESIGN:
        DEFENSE-WIDE..........................................           50,192            50,192            40,192           -10,000           -10,000
        ENERGY CONSERVATION INVESTMENT PROGRAM................  ................  ................           10,000           +10,000           +10,000
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION.............           75,905            75,905            75,905   ................  ................
        NATIONAL SECURITY AGENCY..............................           57,053            57,053            57,053   ................  ................
        SPECIAL OPERATIONS COMMAND............................           36,866            36,866            36,866   ................  ................
        WASHINGTON HEADQUARTERS SERVICE.......................            6,931             6,931             6,931   ................  ................
        MISSILE DEFENSE AGENCY................................           10,891            10,891            10,891   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, PLANNING AND DESIGN.......................          237,838           237,838           237,838   ................  ................

    UNSPECIFIED MINOR CONSTRUCTION:
        DEFENSE-WIDE..........................................            3,000             3,000             3,000   ................  ................
        DEFENSE LOGISTICS AGENCY..............................            7,430             7,430             7,430   ................  ................
        DEPARTMENT OF DEFENSE DEPENDENT EDUCATION.............            5,409             5,409             5,409   ................  ................
        MISSILE DEFENSE AGENCY................................            2,000             2,000             2,000   ................  ................
        NATIONAL SECURITY AGENCY..............................            1,500             1,500             1,500   ................  ................
        JOINT CHIEFS OF STAFF.................................            9,730             9,730             9,730   ................  ................
        SPECIAL OPERATIONS COMMAND............................            5,170             5,170             5,170   ................  ................
        TRICARE MANAGEMENT ACTIVITY...........................            9,578             9,578             9,578   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, UNSPECIFIED MINOR CONSTRUCTION............           43,817            43,817            43,817   ................  ................

ARMY NATIONAL GUARD:
    PLANNING AND DESIGN.......................................           29,005            24,005            29,005   ................           +5,000
    MINOR CONSTRUCTION........................................           12,240            12,240            12,240   ................  ................
AIR NATIONAL GUARD:
    PLANNING AND DESIGN.......................................           13,400            13,400            13,400   ................  ................
    MINOR CONSTRUCTION........................................           13,000            13,000            13,000   ................  ................
ARMY RESERVE:
    PLANNING AND DESIGN.......................................           14,212            14,212            14,212   ................  ................
    MINOR CONSTRUCTION........................................            1,748             1,748             1,748   ................  ................
NAVY RESERVE:
    PLANNING AND DESIGN.......................................            2,540             2,540             2,540   ................  ................
AIR FORCE RESERVE:
    PLANNING AND DESIGN.......................................            2,229             2,229             2,229   ................  ................
    MINOR CONSTRUCTION........................................            1,530             1,530             1,530   ................  ................

                     FAMILY HOUSING, ARMY

WISCONSIN:
    FORT MCCOY:
        FAMILY HOUSING NEW CONSTRUCTION (56 UNITS)............           23,000            23,000            23,000   ................  ................
GERMANY:
    SOUTH CAMP VILSECK:
        FAMILIY HOUSING NEW CONSTRUCTION (29 UNITS)...........           16,600            16,600   ................          -16,600           -16,600
        PLANNING AND DESIGN...................................            4,408             4,408             4,408   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, CONSTRUCTION..............................           44,008            44,008            27,408           -16,600           -16,600

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           96,907            96,907            96,907   ................  ................
    SERVICES ACCOUNT..........................................           13,536            13,536            13,536   ................  ................
    MANAGEMENT ACCOUNT........................................           54,433            54,433            54,433   ................  ................
    MISCELLANEOUS ACCOUNT.....................................              646               646               646   ................  ................
    FURNISHINGS ACCOUNT.......................................           33,125            33,125            33,125   ................  ................
    LEASING...................................................          180,924           180,924           180,924   ................  ................
    MAINTENANCE OF REAL PROPERTY..............................          107,639           107,639           107,639   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           25,661            25,661            25,661   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          512,871           512,871           512,871   ................  ................

             FAMILY HOUSING, NAVY AND MARINE CORPS

CONSTRUCTION IMPROVEMENTS.....................................           68,969            68,969            68,969   ................  ................
PLANNING AND DESIGN...........................................            4,438             4,438             4,438   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, CONSTRUCTION..................................           73,407            73,407            73,407   ................  ................

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           94,313            94,313            94,313   ................  ................
    SERVICES ACCOUNT..........................................           20,596            20,596            20,596   ................  ................
    MANAGEMENT ACCOUNT........................................           60,782            60,782            60,782   ................  ................
    MISCELLANEOUS ACCOUNT.....................................              362               362               362   ................  ................
    FURNISHINGS ACCOUNT.......................................           21,073            21,073            21,073   ................  ................
    LEASING...................................................           74,962            74,962            74,962   ................  ................
    MAINTENANCE OF REAL PROPERTY..............................           90,122            90,122            90,122   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           27,634            27,634            27,634   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          389,844           389,844           389,844   ................  ................

                   FAMILY HOUSING, AIR FORCE

CONSTRUCTION IMPROVEMENTS.....................................           72,093            72,093            72,093   ................  ................
PLANNING AND DESIGN...........................................            4,267             4,267             4,267   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, CONSTRUCTION..................................           76,360            76,360            76,360   ................  ................

OPERATION AND MAINTENANCE:
    UTILITIES ACCOUNT.........................................           70,532            70,532            70,532   ................  ................
    MANAGEMENT ACCOUNT........................................           53,044            53,044            53,044   ................  ................
    SERVICES ACCOUNT..........................................           16,862            16,862            16,862   ................  ................
    FURNISHINGS ACCOUNT.......................................           39,470            39,470            39,470   ................  ................
    MISCELLANEOUS ACCOUNT.....................................            1,954             1,954             1,954   ................  ................
    LEASING...................................................           54,514            54,514            54,514   ................  ................
    MAINTENANCE...............................................          110,786           110,786           110,786   ................  ................
    PRIVATIZATION SUPPORT COSTS...............................           41,436            41,436            41,436   ................  ................
                                                               -----------------------------------------------------------------------------------------
      SUBTOTAL, OPERATION AND MAINTENANCE.....................          388,598           388,598           388,598   ................  ................

                 FAMILY HOUSING, DEFENSE-WIDE

OPERATION AND MAINTENANCE:
    NATIONAL SECURITY AGENCY:
        UTILITIES.............................................               12                12                12   ................  ................
        FURNISHING............................................               67                67                67   ................  ................
        LEASING...............................................           10,994            10,994            10,994   ................  ................
        MAINTENANCE OF REAL PROPERTY..........................               74                74                74   ................  ................
    DEFENSE INTELLIGENCE AGENCY:
        FURNISHINGS...........................................            3,196             3,196             3,196   ................  ................
        LEASING...............................................           40,433            40,433            40,433   ................  ................
    DEFENSE LOGISTICS AGENCY:
        UTILITIES.............................................              288               288               288   ................  ................
        FURNISHINGS...........................................               20                20                20   ................  ................
        SERVICES..............................................               32                32                32   ................  ................
        MANAGEMENT............................................              418               418               418   ................  ................
        MAINTENANCE OF REAL PROPERTY..........................              311               311               311   ................  ................
                                                               -----------------------------------------------------------------------------------------
          SUBTOTAL, OPERATION AND MAINTENANCE.................           55,845            55,845            55,845   ................  ................

DOD FAMILY HOUSING IMPROVEMENT FUND...........................            1,780             1,780             1,780   ................  ................

                 BASE REALIGNMENT AND CLOSURE

BASE REALIGNMENT AND CLOSURE ACCOUNT..........................          451,357           451,357           451,357   ................  ................

       RESCISSIONS FROM PRIOR YEAR UNOBLIGATED BALANCES

ARMY..........................................................  ................          -89,000   ................  ................          +89,000
NAVY AND MARINE CORPS.........................................  ................          -49,920   ................  ................          +49,920
DEFENSE-WIDE..................................................  ................         -358,400   ................  ................         +358,400
MILITARY CONSTRUCTION, ARMY, PLANNING AND DESIGN FISCAL YEAR    ................          -50,000   ................  ................          +50,000
 2012.........................................................
MILITARY CONSTRUCTION, DEFENSE-WIDE, UNSPECIFIED MINOR          ................          -16,470   ................  ................          +16,470
 CONSTRUCTION FISCAL YEAR 2009 AND FISCAL YEAR 2010...........
MILITARY CONSTRUCTION, AIR NATIONAL GUARD, UNSPECIFIED MINOR    ................          -45,623   ................  ................          +45,623
 CONSTRUCTION FISCAL YEAR 2009 AND FISCAL YEAR 2010...........
42 USC 3374 (SECTION 132).....................................  ................          -50,000   ................  ................          +50,000
REDUCTION OF FUNDS (SECTION 133)..............................  ................           -4,668   ................  ................           +4,668
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS (SECTION 135)....  ................           75,000   ................  ................          -75,000

                             RECAP

ARMY..........................................................        1,119,875         1,099,875         1,119,875   ................          +20,000
    RESCISSION................................................  ................         -139,000   ................  ................         +139,000
NAVY AND MARINE CORPS.........................................        1,700,269         1,616,281         1,614,596           -85,673            -1,685
    RESCISSION................................................  ................          -49,920   ................  ................          +49,920
AIR FORCE.....................................................        1,156,573         1,127,273         1,153,960            -2,613           +26,687
    RESCISSION................................................  ................  ................  ................  ................  ................
DEFENSE-WIDE..................................................        3,985,300         3,707,923         3,766,553          -218,747           +58,630
    RESCISSION................................................  ................         -374,870   ................  ................         +374,870
ARMY NATIONAL GUARD...........................................          320,815           315,815           320,815   ................           +5,000
    RESCISSION................................................  ................  ................  ................  ................  ................
AIR NATIONAL GUARD............................................          119,800           107,800           119,800   ................          +12,000
    RESCISSION................................................  ................          -45,623   ................  ................          +45,623
ARMY RESERVE..................................................          174,060           174,060           174,060   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
NAVY RESERVE..................................................           32,976            32,976            32,976   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
AIR FORCE RESERVE.............................................           45,659            45,659            45,659   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
NATO..........................................................          239,700           199,700           239,700   ................          +40,000
    RESCISSION................................................  ................  ................  ................  ................  ................
CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE..........          122,536           122,536           122,536   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
DOD FAMILY HOUSING IMPROVEMENT FUND...........................            1,780             1,780             1,780   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
HOMEOWNERS ASSISTANCE PROGRAM.................................  ................  ................  ................  ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
FAMILY HOUSING, ARMY..........................................          556,879           556,879           540,279           -16,600           -16,600
    CONSTRUCTION..............................................          (44,008)          (44,008)          (27,408)         (-16,600)         (-16,600)
    OPERATION AND MAINTENANCE.................................         (512,871)         (512,871)         (512,871)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, NAVY AND MARINE CORPS.........................          463,251           463,251           463,251   ................  ................
    CONSTRUCTION..............................................          (73,407)          (73,407)          (73,407)  ................  ................
    OPERATION AND MAINTENANCE.................................         (389,844)         (389,844)         (389,844)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, AIR FORCE.....................................          464,958           464,958           464,958   ................  ................
    CONSTRUCTION..............................................          (76,360)          (76,360)          (76,360)  ................  ................
    OPERATION AND MAINTENANCE.................................         (388,598)         (388,598)         (388,598)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
FAMILY HOUSING, DEFENSE-WIDE..................................           55,845            55,845            55,845   ................  ................
    OPERATION AND MAINTENANCE.................................          (55,845)          (55,845)          (55,845)  ................  ................
        RESCISSION............................................  ................  ................  ................  ................  ................
BRAC..........................................................          451,357           451,357           451,357   ................  ................
    RESCISSION................................................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
      GRAND TOTAL.............................................       11,011,633         9,954,887        10,688,000          -323,633          +733,113
--------------------------------------------------------------------------------------------------------------------------------------------------------


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2013 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2014
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Senate Committee recommendation compared  with (+
                                                                                                                             or -)
               Item                      2013       Budget estimate  House allowance     Committee    --------------------------------------------------
                                    appropriation                                      recommendation        2013
                                                                                                        appropriation   Budget estimate  House allowance
--------------------------------------------------------------------------------------------------------------------------------------------------------
  TITLE I--DEPARTMENT OF DEFENSE

Military construction, Army......       1,682,100        1,119,875        1,099,875        1,119,875         -562,225   ...............         +20,000
Military construction, Navy and         1,547,120        1,700,269        1,616,281        1,614,596          +67,476          -85,673           -1,685
 Marine Corps....................
Military construction, Air Force.         322,117        1,156,573        1,127,273        1,153,960         +831,843           -2,613          +26,687
Military construction, Defense-         3,577,695        3,985,300        3,707,923        3,766,553         +188,858         -218,747          +58,630
 Wide............................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Active components...       7,129,032        7,962,017        7,551,352        7,654,984         +525,952         -307,033         +103,632
                                  ======================================================================================================================
Military construction, Army               612,989          320,815          315,815          320,815         -292,174   ...............          +5,000
 National Guard..................
    Supplemental (Public Law 113-          24,235   ...............  ...............  ...............         -24,235   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................         637,224          320,815          315,815          320,815         -316,409   ...............          +5,000

Military construction, Air                 42,330          119,800          107,800          119,800          +77,470   ...............         +12,000
 National Guard..................
Military construction, Army               305,442          174,060          174,060          174,060         -131,382   ...............  ...............
 Reserve.........................
Military construction, Navy                49,467           32,976           32,976           32,976          -16,491   ...............  ...............
 Reserve.........................
Military construction, Air Force           10,965           45,659           45,659           45,659          +34,694   ...............  ...............
 Reserve.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Reserve components..       1,045,428          693,310          676,310          693,310         -352,118   ...............         +17,000
                                  ======================================================================================================================
      Total, Military                   8,174,460        8,655,327        8,227,662        8,348,294         +173,834         -307,033         +120,632
       construction..............
                                  ======================================================================================================================
North Atlantic Treaty                     253,828          239,700          199,700          239,700          -14,128   ...............         +40,000
 Organization Security Investment
 Program.........................

Family housing construction, Army           4,635           44,008           44,008           27,408          +22,773          -16,600          -16,600
Family housing operation and              529,352          512,871          512,871          512,871          -16,481   ...............  ...............
 maintenance, Army...............
Family housing construction, Navy         102,047           73,407           73,407           73,407          -28,640   ...............  ...............
 and Marine Corps................
Family housing operation and              377,731          389,844          389,844          389,844          +12,113   ...............  ...............
 maintenance, Navy and Marine
 Corps...........................
Family housing construction, Air           83,713           76,360           76,360           76,360           -7,353   ...............  ...............
 Force...........................
Family housing operation and              497,172          388,598          388,598          388,598         -108,574   ...............  ...............
 maintenance, Air Force..........
Family housing operation and               52,169           55,845           55,845           55,845           +3,676   ...............  ...............
 maintenance, Defense-Wide.......
Department of Defense Family                1,784            1,780            1,780            1,780               -4   ...............  ...............
 Housing Improvement Fund........
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Family housing......       1,648,603        1,542,713        1,542,713        1,526,113         -122,490          -16,600          -16,600
                                  ======================================================================================================================
Chemical demilitarization                 150,801          122,536          122,536          122,536          -28,265   ...............  ...............
 construction, Defense-Wide......

Base realignment and closure:
    Base realignment and closure          408,856   ...............  ...............  ...............        -408,856   ...............  ...............
     account, 1990...............
    Base realignment and closure          126,530   ...............  ...............  ...............        -126,530   ...............  ...............
     account, 2005...............
    Base realignment and closure   ...............         451,357          451,357          451,357         +451,357   ...............  ...............
     account.....................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Base realignment and         535,386          451,357          451,357          451,357          -84,029   ...............  ...............
       closure...................
                                  ======================================================================================================================
Military construction, Army (Sec.  ...............  ...............         -89,000   ...............  ...............  ...............         +89,000
 126)............................
Military construction, Navy and    ...............  ...............         -49,920   ...............  ...............  ...............         +49,920
 Marine Corps (Sec. 127).........
Military construction, Defense-           -20,000   ...............        -358,400   ...............         +20,000   ...............        +358,400
 Wide (Sec. 128).................

Rescission (Public Law 113-6):
    Base Realignment and Closure,        -132,513   ...............  ...............  ...............        +132,513   ...............  ...............
     2005........................
    Fiscal year 2012 (Sec. 129)..  ...............  ...............         -50,000   ...............  ...............  ...............         +50,000
Military construction, Defense-    ...............  ...............         -16,470   ...............  ...............  ...............         +16,470
 Wide, unspecified minor
 construction fiscal year 2009
 and fiscal year 2010 (Sec. 130).
Military construction, Air         ...............  ...............         -45,623   ...............  ...............  ...............         +45,623
 National Guard, unspecified
 minor construction fiscal year
 2009 and fiscal year 2010 (Sec.
 131)............................
42 USC 3374 (Sec. 132)...........  ...............  ...............         -50,000   ...............  ...............  ...............         +50,000

Reduction of funds (Sec. 133)....  ...............  ...............          -4,668   ...............  ...............  ...............          +4,668

Navy Land Transfer (Public Law             10,985   ...............  ...............  ...............         -10,985   ...............  ...............
 113-6)..........................
Military construction, Navy and    ...............  ...............          75,000   ...............  ...............  ...............         -75,000
 Marine Corps (Sec. 135).........
                                  ======================================================================================================================
      Total, title I, Department       10,621,550       11,011,633        9,954,887       10,688,000          +66,450         -323,633         +733,113
       of Defense................
          Appropriations.........     (10,749,828)     (11,011,633)     (10,614,300)     (10,688,000)        (-61,828)       (-323,633)        (+73,700)
          Rescissions............       (-152,513)  ...............       (-659,413)  ...............       (+152,513)  ...............       (+659,413)
          Emergency                       (24,235)  ...............  ...............  ...............        (-24,235)  ...............  ...............
           appropriations........
                                  ======================================================================================================================
 TITLE II--DEPARTMENT OF VETERANS
             AFFAIRS

 Veterans Benefits Administration

Compensation and pensions........      60,599,855       71,248,171       71,248,171       71,248,171      +10,648,316   ...............  ...............
Readjustment benefits............      12,023,458       13,135,898       13,135,898       13,135,898       +1,112,440   ...............  ...............
Veterans insurance and                    104,600           77,567           77,567           77,567          -27,033   ...............  ...............
 indemnities.....................

Veterans housing benefit program
 fund:
    (indefinite).................         184,859   ...............  ...............  ...............        -184,859   ...............  ...............
    (Limitation on direct loans).            (500)            (500)            (500)            (500)  ...............  ...............  ...............
    Administrative expenses......         157,606          158,430          158,430          158,430             +824   ...............  ...............

Vocational rehabilitation loans                19                5                5                5              -14   ...............  ...............
 program account.................
    (Limitation on direct loans).          (2,729)          (2,500)          (2,500)          (2,500)           (-229)  ...............  ...............
    Administrative expenses......             346              354              354              354               +8   ...............  ...............

Native American veteran housing             1,088            1,109            1,109            1,109              +21   ...............  ...............
 loan program account............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Veterans Benefits         73,071,831       84,621,534       84,621,534       84,621,534      +11,549,703   ...............  ...............
       Administration............
                                  ======================================================================================================================
  Veterans Health Administration

Medical services:
    Advance from prior year......     (41,340,767)     (43,557,000)     (43,557,000)     (43,557,000)     (+2,216,233)  ...............  ...............
    Current year request.........         154,795          157,500   ...............          25,000         -129,795         -132,500          +25,000
    Advance appropriation, fiscal      43,557,000       45,015,527       45,015,527       45,015,527       +1,458,527   ...............  ...............
     year 2015...................
    Supplemental (Public Law 113-          21,000   ...............  ...............  ...............         -21,000   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................      43,732,795       45,173,027       45,015,527       45,040,527       +1,307,732         -132,500          +25,000

Medical support and compliance:
    Advance from prior year......      (5,744,161)      (6,033,000)      (6,033,000)      (6,033,000)       (+288,839)  ...............  ...............
    Advance appropriation, fiscal       6,033,000        5,879,700        5,879,700        5,879,700         -153,300   ...............  ...............
     year 2015...................
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................       6,033,000        5,879,700        5,879,700        5,879,700         -153,300   ...............  ...............

Medical facilities:
    Advance from prior year......      (5,439,259)      (4,872,000)      (4,872,000)      (4,872,000)       (-567,259)  ...............  ...............
    Current year request.........  ...............  ...............  ...............         100,000         +100,000         +100,000         +100,000
    Advance appropriation, fiscal       4,872,000        4,739,000        4,739,000        4,739,000         -133,000   ...............  ...............
     year 2015...................
    Supplemental (Public Law 113-           6,000   ...............  ...............  ...............          -6,000   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................       4,878,000        4,739,000        4,739,000        4,839,000          -39,000         +100,000         +100,000

Medical and prosthetic research..         581,905          585,664          585,664          585,664           +3,759   ...............  ...............

Medical care cost recovery
 collections:
    Offsetting collections.......      -2,527,000       -2,485,000       -2,485,000       -2,485,000          +42,000   ...............  ...............
    Appropriations (indefinite)..       2,527,000        2,485,000        2,485,000        2,485,000          -42,000   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................  ...............  ...............  ...............  ...............  ...............  ...............  ...............

DOD-VA Joint Medical Funds (by           (280,000)        (254,257)        (271,000)        (254,257)        (-25,743)  ...............        (-16,743)
 transfer).......................
DOD-VA Health Care Sharing         ...............         (15,000)         (15,000)         (15,000)        (+15,000)  ...............  ...............
 Incentive Fund (by transfer)....
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Veterans Health           55,225,700       56,377,391       56,219,891       56,344,891       +1,119,191          -32,500         +125,000
       Administration............
          Appropriations.........        (736,700)        (743,164)        (585,664)        (710,664)        (-26,036)        (-32,500)       (+125,000)
          Emergency                       (27,000)  ...............  ...............  ...............        (-27,000)  ...............  ...............
           appropriations........
          Advance appropriations,     (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
           fiscal year 2015......
      Advances from prior year        (52,524,187)     (54,462,000)     (54,462,000)     (54,462,000)     (+1,937,813)  ...............  ...............
       appropriations............
                                  ======================================================================================================================
 National Cemetery Administration

National Cemetery Administration.         257,943          250,000          250,000          250,000           -7,943   ...............  ...............
    Supplemental (Public Law 113-           2,100   ...............  ...............  ...............          -2,100   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................         260,043          250,000          250,000          250,000          -10,043   ...............  ...............

   Departmental Administration

General administration...........         424,176          403,023          393,023          415,885           -8,291          +12,862          +22,862
General operating expenses, VBA..       2,161,218        2,455,490        2,455,490        2,465,490         +304,272          +10,000          +10,000
Information technology systems...       3,323,053        3,683,344        3,693,344        3,703,344         +380,291          +20,000          +10,000
    Supplemental (Public Law 113-             531   ...............  ...............  ...............            -531   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................       3,323,584        3,683,344        3,693,344        3,703,344         +379,760          +20,000          +10,000

Office of Inspector General......         114,848          116,411          116,411          121,411           +6,563           +5,000           +5,000
Construction, major projects.....         531,767          342,130          342,130          342,130         -189,637   ...............  ...............
    Supplemental (Public Law 113-         207,000   ...............  ...............  ...............        -207,000   ...............  ...............
     2) (emergency)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Subtotal...................         738,767          342,130          342,130          342,130         -396,637   ...............  ...............

Construction, minor projects.....         606,728          714,870          714,870          714,870         +108,142   ...............  ...............
Grants for construction of State           84,888           82,650           82,650           85,000             +112           +2,350           +2,350
 extended care facilities........
Grants for the construction of             45,939           44,650           44,650           46,000              +61           +1,350           +1,350
 veterans cemeteries.............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Departmental               7,500,148        7,842,568        7,842,568        7,894,130         +393,982          +51,562          +51,562
       Administration............

        Emergency appropriations.        (207,531)  ...............  ...............  ...............       (-207,531)  ...............  ...............
                                  ======================================================================================================================
    Administrative Provisions

Fiscal year 2014 advance           ...............  ...............        -156,000   ...............  ...............  ...............        +156,000
 rescission (Sec. 230)...........
Fiscal year 2014 current           ...............  ...............         -24,000   ...............  ...............  ...............         +24,000
 reduction (Sec. 230)............

           Section 225

Medical services.................       1,498,020        1,400,000        1,400,000        1,500,000           +1,980         +100,000         +100,000
    (Rescission of advance             -1,500,000       -1,400,000       -1,400,000       -1,500,000   ...............        -100,000         -100,000
     appropriation)..............
Medical support and compliance...         199,736          100,000          100,000          150,000          -49,736          +50,000          +50,000
    (Rescission of advance               -200,000         -100,000         -100,000         -200,000   ...............        -100,000         -100,000
     appropriation)..............
Medical facilities...............         249,670          250,000          250,000          250,000             +330   ...............  ...............
    (Rescission of advance               -250,000         -250,000         -250,000         -250,000   ...............  ...............  ...............
     appropriation)..............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total. Administrative                -2,574   ...............        -180,000          -50,000          -47,426          -50,000         +130,000
       Provisions................
                                  ======================================================================================================================
      Total, title II............     136,055,148      149,091,493      148,753,993      149,060,555      +13,005,407          -30,938         +306,562
          Appropriations.........     (83,306,517)     (95,207,266)     (95,025,766)     (95,376,328)    (+12,069,811)       (+169,062)       (+350,562)
          Emergency                      (236,631)  ...............  ...............  ...............       (-236,631)  ...............  ...............
           appropriations........
          Rescissions of advance      (-1,950,000)     (-1,750,000)     (-1,906,000)     (-1,950,000)  ...............       (-200,000)        (-44,000)
           appropriations........
          Advance appropriations,     (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
           fiscal year 2015......
      Advances from prior year        (52,524,187)     (54,462,000)     (54,462,000)     (54,462,000)     (+1,937,813)  ...............  ...............
       appropriations............
      (Limitation on direct                (3,229)          (3,000)          (3,000)          (3,000)           (-229)  ...............  ...............
       loans)....................
                                  ======================================================================================================================
   TITLE III--RELATED AGENCIES

    American Battle Monuments
            Commission

Salaries and expenses............          61,225           58,200           57,980           63,200           +1,975           +5,000           +5,220
Foreign currency fluctuations              14,788           14,100           14,100           14,100             -688   ...............  ...............
 account.........................
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, American Battle               76,013           72,300           72,080           77,300           +1,287           +5,000           +5,220
       Monuments Commission......
                                  ======================================================================================================================
    U.S. Court of Appeals for
         Veterans Claims

Salaries and expenses............          31,601           35,408           35,272           35,408           +3,807   ...............            +136

   Department of Defense--Civil

    Cemeterial Expenses, Army

Salaries and expenses............          64,018           45,800           70,685           70,800           +6,782          +25,000             +115
Construction program.............         100,211   ...............  ...............  ...............        -100,211   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Cemeterial Expenses,         164,229           45,800           70,685           70,800          -93,429          +25,000             +115
       Army......................
                                  ======================================================================================================================
  Armed Forces Retirement Home--
            Trust Fund

Operation and maintenance........          63,814           66,800           66,400           66,800           +2,986   ...............            +400
Capital program..................           1,946            1,000            1,000            1,000             -946   ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Armed Forces                  65,760           67,800           67,400           67,800           +2,040   ...............            +400
       Retirement Home--Trust
       Fund......................
                                  ======================================================================================================================
  Armed Forces Retirement Home--
           General Fund

Capital program..................  ...............  ...............  ...............  ...............  ...............  ...............  ...............
                                  ----------------------------------------------------------------------------------------------------------------------
      Total, Armed Forces                  65,760           67,800           67,400           67,800           +2,040   ...............            +400
       Retirement Home...........
                                  ======================================================================================================================
      Total, title III...........         337,603          221,308          245,437          251,308          -86,295          +30,000           +5,871
                                  ======================================================================================================================
  TITLE IV--OVERSEAS CONTINGENCY
            OPERATIONS

Military construction, Army......  ...............  ...............  ...............  ...............  ...............  ...............  ...............
Military construction, Navy and           150,768   ...............  ...............  ...............        -150,768   ...............  ...............
 Marine Corps....................
Rescission (Public Law 112-10)...        -150,768   ...............  ...............  ...............        +150,768   ...............  ...............
                                  ======================================================================================================================
      Total, title IV............  ...............  ...............  ...............  ...............  ...............  ...............  ...............
                                  ======================================================================================================================
      Grand total................     147,014,301      160,324,434      158,954,317      159,999,863      +12,985,562         -324,571       +1,045,546
          Appropriations.........     (94,393,948)    (106,440,207)    (105,885,503)    (106,315,636)    (+11,921,688)       (-124,571)       (+430,133)
          Rescissions............       (-152,513)  ...............       (-659,413)  ...............       (+152,513)  ...............       (+659,413)
          Rescissions of advance      (-1,950,000)     (-1,750,000)     (-1,906,000)     (-1,950,000)  ...............       (-200,000)        (-44,000)
           appropriations........
          Emergency                      (260,866)  ...............  ...............  ...............       (-260,866)  ...............  ...............
           appropriations........
          Advance appropriations,     (54,462,000)     (55,634,227)     (55,634,227)     (55,634,227)     (+1,172,227)  ...............  ...............
           fiscal year 2015......
      Advances from prior year        (52,524,187)     (54,462,000)     (54,462,000)     (54,462,000)     (+1,937,813)  ...............  ...............
       appropriations............
      (By transfer)..............        (280,000)        (269,257)        (286,000)        (269,257)        (-10,743)  ...............        (-16,743)
      (Limitation on direct                (3,229)          (3,000)          (3,000)          (3,000)           (-229)  ...............  ...............
       loans)....................
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