[House Report 118-354]
[From the U.S. Government Publishing Office]


118th Congress    }                                      {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                      {     118-354

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



 
                        DELIVER FOR VETERANS ACT

                                _______
                                

January 25, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 522]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 522) to amend title 38, United States Code, to 
authorize the Secretary of Veterans Affairs to provide or 
assist in providing a vehicle adapted for operation by disabled 
individuals to certain eligible persons, to pay expenses 
associated with the delivery of such vehicle, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Subcommittee Consideration.......................................     3
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     4
Earmarks and Tax and Tariff Benefits.............................     4
Committee Cost Estimate..........................................     4
Budget Authority and Congressional Budget Office Estimate........     5
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Statement on Duplication of Federal Programs.....................     6
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill as Reported.............     7

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Deliver for Veterans Act''.

SEC. 2. ELIGIBILITY FOR DEPARTMENT OF VETERANS AFFAIRS COVERAGE OF 
                    COSTS ASSOCIATED WITH DELIVERY OF AN ADAPTIVE 
                    VEHICLE.

  Section 3902(a) of title 38, United States Code, is amended by 
striking ``by paying the total purchase price of the automobile or 
other conveyance'' and inserting ``by paying the total purchase price 
of the automobile or other conveyance, and the total shipping price to 
deliver the automobile or other conveyance to the veteran''.

SEC. 3. MODIFICATION OF CERTAIN HOUSING LOAN FEES.

  The loan fee table in section 3729(b)(2) of title 38, United States 
Code, is amended by striking ``November 15, 2031'' each place it 
appears and inserting ``November 20, 2031''.

                          Purpose and Summary

    H.R. 522, the ``Deliver for Veterans Act'' was introduced 
by Rep. James Moylan of Guam on January 15, 2023. The bill, as 
amended, would cover the expenses incurred during the shipping 
of vehicles adapted for use by individuals with disabilities. 
Specifically, this bill would add the cost of shipping the 
vehicle to the disabled veteran as an expense covered by the 
Department of Veterans Affairs (VA).
    Finally, the bill would also provide an offset for the cost 
of these program changes by extending current rates for VA home 
loan funding fees.

                  Background and Need for Legislation


Section 1: Short title

    This Act may be cited as the ``Deliver for Veterans Act.''

Section 2: Eligibility for Department of Veterans Affairs coverage of 
        costs associated with delivery of an adaptive vehicle

    Under current law, a veteran who has a disability rating 
related to their service that prevents them from driving can 
apply for a special allowance that would help the veteran buy 
or change a vehicle and make it drivable for them. This special 
allowance comes in two forms, either a one-time payment to help 
a veteran buy a specially equipped vehicle, or an adaptive 
equipment grant to change a vehicle for the veteran. VA usually 
pays the vehicle's seller directly, but on occasion the veteran 
is reimbursed. Finally, to be eligible for this benefit, 
veterans with a service-connected disability must have specific 
disabilities, such as loss or permanent loss of use of hands, 
feet, permanent decreased vision in eyes, a severe burn injury, 
or Amyotrophic Lateral Sclerosis. In 2022, VA spent $86,297,000 
on automobile grants.
    In the past, after a veteran has been approved for the 
benefit and VA has purchased the vehicle, VA has also covered 
the cost of shipping vehicles for disabled veterans, but that 
provision was eliminated due to budget constraints. As a 
result, disabled veterans are forced to pay out-of-pocket for 
the cost of shipping a vehicle to their location. The Committee 
believes this can be a significant financial burden, especially 
for those who live in remote locations, outside of the 
continental United States, or in a territory overseas. The cost 
of shipping a vehicle could also exceed the value of the 
vehicle itself, making it nearly impossible for veterans to 
access the transportation they need. Currently, VA may pay the 
lesser of $24,115, adjusted annually for inflation or the full 
price associated with the vehicle. To address this issue, this 
section would reinstate the provision to cover shipping costs 
for disabled veterans. The Committee believes this would help 
alleviate the financial burden on veterans and ensure that they 
have access to the transportation they need to live 
independently and participate fully in their communities.

Section 3: Modification of certain housing loan fees

    Under current law, veterans who take advantage of the VA 
Home Loan Program pay a small fee that can be rolled into their 
monthly mortgage payments. This section would cover the costs 
of the other section of this bill by extending the current 
rates for VA home loan funding fees by a few days to November 
20, 2031. Extending the funding fee increases a veteran's 
monthly cost by about $5 on top of the monthly mortgage. 
Disabled veterans do not pay the funding fee and would not be 
affected by this extension of the home loan fees. The Committee 
believes this short-term extension of current funding fee rates 
is a reasonable way to cover the costs associated with the 
other sections of this bill.

                                Hearings

    On November 2, 2023, the Subcommittee on Economic 
Opportunity held a legislative hearing on H.R. 522 and other 
bills that were pending before the subcommittee.
    The following witnesses testified:
          Mr. Joseph Garcia, Executive Director of Education 
        Service, U.S. Department of Veterans Affairs; Mr. Nick 
        Pamperin, Executive Director Veterans Readiness and 
        Employment Services, U.S. Department of Veterans 
        Affairs; Mr. James Ruhlman, Deputy Director of 
        Education Services, U.S. Department of Veterans 
        Affairs; Ms. Margarita Devlin, Deputy Assistant 
        Secretary for Operations and Management, U.S. 
        Department of Labor; Ms. Kristina Keenan, Deputy 
        Director, National Legislative Service, Veterans of 
        Foreign Wars of the United States; Mr. Marquis 
        Barefield, Assistant National Legislative Director, 
        Disabled American Veterans; Ms. Tammy Barlet, Vice 
        President of Government Affairs, Student Veterans of 
        America; Mr. Joseph W. Wescott II, Legislative 
        Director, National Association of State Approving 
        Agencies, Inc., and Mr. Micheal Hazard, Veterans in 
        Piping Program Manager, United Association of 
        Journeyman and Apprentices of the Plumbing and 
        Pipefitting Industry of the United States and Canada.
    The following organizations submitted statements for the 
record:
          Commercial Vehicle Training Association, National 
        Association of State Workforce Agencies, The American 
        Legion, Veterans Education Project, and Veterans 
        Education Success.

                       Subcommittee Consideration

    On November 15, 2023, the Subcommittee on Economic 
Opportunity held a markup on the legislation included H.R. 522. 
There were no amendments to this bill at the Subcommittee 
level. A motion by Mr. Levin to report H.R. 522 was favorably 
forwarded to the full committee.

                        Committee Consideration

    On December 5, 2023, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 522, as 
amended, to be reported favorably to the House of 
Representatives by voice vote. During consideration of the 
bill, the following amendments were considered:
          An amendment in the nature of a substitute offered by 
        Chairman Bost added section three of the amended bill 
        which would cover the expenses incurred during the 
        delivery of automobiles for eligible disabled veterans 
        and would extend current rates for VA home loan funding 
        fees to pay for programs in the bill. The amendment in 
        the nature of a substitute was approved by voice vote.
    A motion by Mr. Deluzio to report H.R. 522, as amended, 
favorably to the House of Representatives was agreed to by 
voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 522, as amended, 
reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 522, as amended, are to allow VA 
to cover the cost of shipping a vehicle that has been 
retrofitted for a disabled veteran to that veteran.

                  Earmarks and Tax and Tariff Benefits

    H.R. 522, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

           Budget Authority and Congressional Budget Office 
                             Cost Estimate

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 522 would make changes to automobile grant and home 
loan programs administered by the Department of Veterans 
Affairs (VA). The costs of both programs are paid from 
mandatory appropriations. CBO estimates that enacting the bill 
would decrease net direct spending by $1 million over the 2024-
2033 period.
    Auto Grants. VA provides grants to purchase automobiles for 
veterans who have specified service-connected disabilities that 
usually impair their mobility. Under current law, the amount of 
the grant is capped at the lesser of the total purchase price 
of the automobile or $25,603 in 2024 and adjusted for inflation 
in subsequent years. H.R. 522 would authorize VA to also 
include the cost of shipping to deliver the automobile to the 
veteran, subject to the maximum amount for such grants.
    On the basis of data provided by VA, CBO estimates that 
grants provided over the 2024-2033 period will be about $1,100 
less than the maximum amount allowed, on average. CBO expects 
that the average shipping cost would meet or exceed the 
difference between the average and maximum grant amounts; thus, 
grants for vehicles with shipping costs would be for the 
maximum amount. CBO estimates that half of grantees would incur 
shipping costs that would be paid under the bill, increasing 
direct spending by $11 million over the 2024-2033 period.
    Homes Loan Fees. H.R.522 would increase the fees that VA 
charges borrowers for its loan guarantees. VA provides loan 
guarantees to lenders that allow eligible borrowers to obtain 
better loan terms--such as lower interest rates or smaller down 
payments--to purchase, construct, improve, or refinance a home. 
VA typically pays lenders up to 25 percent of the outstanding 
mortgage balance if a borrower's home is foreclosed upon. Those 
payments, net of fees paid by borrowers and recoveries by 
lenders, constitute the subsidy cost for the loan 
guarantees.\1\
---------------------------------------------------------------------------
    \1\Under the Federal Credit Reform Act of 1990, the subsidy cost of 
a loan guarantee is the net present value of estimated payments by the 
government to cover defaults and delinquencies, interest subsidies, or 
other expenses offset by any payments to the government, including 
origination or other fees, penalties, and recoveries on defaulted 
loans. Such subsidy costs are calculated by discounting those expected 
cash flows using the rate on Treasury securities of comparable 
maturity. The resulting estimated subsidy costs are recorded in the 
budget when the loans are disbursed or modified. A positive subsidy 
indicates that the loan results in net outlays from the Treasury; a 
negative subsidy indicates that the loan results in net receipts to the 
Treasury.
---------------------------------------------------------------------------
    Under current law, the rates for most of the fees that 
borrowers pay to VA for loans guaranteed after November 15, 
2031, will drop from a weighted average of about 2.4 percent to 
about 1.2 percent of the loan amount. The bill would extend the 
higher rates through November 20, 2031, thereby reducing the 
subsidy cost of loans guaranteed during that period. Using 
information from VA, CBO estimates that extending the higher 
rates would decrease direct spending by $12 million over the 
2024-2033 period.
    The costs of the legislation, detailed in Table 1, fall 
within budget function 700 (veterans benefits and services).

                                                    TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 522
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2024    2025    2026    2027    2028    2029    2030    2031    2032    2033   2024-2028  2024-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Increases or Decreases (-) in Direct Spending (Outlays)
 
Auto Grants.......................................       1       1       1       1       1       1       1       1       1       2         5         11
Home Loan Fees....................................       0       0       0       0       0       0       0       0     -12       0         0        -12
    Total Changes in Direct Spending..............       1       1       1       1       1       1       1       1     -11       2         5         -1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Budget authority equals outlays for all sections.

    The CBO staff contact for this estimate is Paul B.A. 
Holland. The estimate was reviewed by Christina Hawley Anthony, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 522, as 
amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
522, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 522, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 522, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section would establish the short title of the bill as 
``Deliver for Veterans Act.''

Section 2. Eligibility for Department of Veterans Affairs coverage of 
        costs associated with delivery of an adaptive vehicle

    This section would amend 38 U.S.C Sec. 3902(a). The 
proposed amendment would strike the phrase ``by paying the 
total purchase price of the automobile or other conveyance'' 
and replace it with the following: ``by paying the total 
purchase price of the automobile or other conveyance, and the 
total shipping price to deliver the automobile or other 
conveyance to the veteran.'' Under this section, certain 
disabled veterans and members of the Armed Forces would be 
eligible for an automobile without incurring the cost of 
shipping as long as the total price of the vehicle is less than 
$24,115.12.

Section 3. Modification of certain housing loan fees

    This section would provide funding for these programs 
included in the bill by extending current VA home loan funding 
fee rates as established in 38 U.S.C. Sec. 3729, from November 
15, 2031, to November 20, 2031.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *



SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *



Sec. 3729. Loan fee

  (a) Requirement of Fee.--(1) Except as provided in subsection 
(c), a fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, 
and each person assuming a loan to which section 3714 of this 
title applies. No such loan may be guaranteed, insured, made, 
or assumed until the fee payable under this section has been 
remitted to the Secretary.
  (2) The fee may be included in the loan and paid from the 
proceeds thereof.
  (b) Determination of Fee.--(1) The amount of the fee shall be 
determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan 
guaranteed, insured, or made, or, in the case of a loan 
assumption, the unpaid principal balance of the loan on the 
date of the transfer of the property.
  (2) The loan fee table referred to in paragraph (1) is as 
follows:


 
----------------------------------------------------------------------------------------------------------------
             Type of loan                Active duty  veteran          Reservist              Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in       2.15                     2.40                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 October 1, 2004, and before January
 1, 2020).
(A)(ii) Initial loan described in      2.30                     2.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 January 1, 2020, and before April 7,
 2023).
(A)(iii) Initial loan described in     2.15                     2.15                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 April 7, 2023, and before November
 [15] 20, 2031).
(A)(iv) Initial loan described in      1.40                     1.40                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 November [15] 20, 2031).
(B)(i) Subsequent loan described in    3.30                     3.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after October 1, 2004, and before
 January 1, 2020).
(B)(ii) Subsequent loan described in   3.60                     3.60                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(B)(iii) Subsequent loan described in  3.30                     3.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after April 7, 2023, and before
 November [15] 20, 2031).
(B)(iv) Subsequent loan described in   1.25                     1.25                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after November [15] 20, 2031).
(C)(i) Loan described in section       1.50                     1.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 January 1, 2020).
(C)(ii) Loan described in section      1.65                     1.65                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(C)(iii) Loan described in section     1.50                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after April 7, 2023, and before
 November [15] 20, 2031).
(C)(iv) Loan described in section      0.75                     0.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after November [15] 20, 2031).
(D)(i) Loan described in section       1.25                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed before
 January 1, 2020).
(D)(ii) Loan described in section      1.40                     1.40                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(D)(iii) Loan described in section     1.25                     1.25                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after April 7, 2023, and before
 November [15] 20, 2031).
(D)(iv) Loan described in section      0.50                     0.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after November [15] 20, 2031).
(E) Interest rate reduction            0.50                     0.50                     NA
 refinancing loan.
(F) Direct loan under section 3711...  1.00                     1.00                     NA
(G) Manufactured home loan under       1.00                     1.00                     NA
 section 3712 (other than an interest
 rate reduction refinancing loan).
(H) Loan to Native American veteran    1.25                     1.25                     NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan).
(I) Loan assumption under section      0.50                     0.50                     0.50
 3714.
(J) Loan under section 3733(a).......  2.25                     2.25                     2.25.
----------------------------------------------------------------------------------------------------------------

  (3) Any reference to a section in the ``Type of loan'' column 
in the loan fee table in paragraph (2) refers to a section of 
this title.
  (4) For the purposes of paragraph (2):
          (A) The term ``active duty veteran'' means any 
        veteran eligible for the benefits of this chapter other 
        than a Reservist.
          (B) The term ``Reservist'' means a veteran described 
        in section 3701(b)(5)(A) of this title who is eligible 
        under section 3702(a)(2)(E) of this title.
          (C) The term ``other obligor'' means a person who is 
        not a veteran, as defined in section 101 of this title 
        or other provision of this chapter.
          (D)(i) The term ``initial loan'' means a loan to a 
        veteran guaranteed under section 3710 or made under 
        section 3711 of this title if the veteran has never 
        obtained a loan guaranteed under section 3710 or made 
        under section 3711 of this title.
          (ii) If a veteran has obtained a loan guaranteed 
        under section 3710 or made under section 3711 of this 
        title and the dwelling securing such loan was 
        substantially damaged or destroyed by a major disaster 
        declared by the President under section 401 of the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5170), the Secretary shall 
        treat as an initial loan, as defined in clause (i), the 
        next loan the Secretary guarantees or makes to such 
        veteran under section 3710 or 3711, respectively, if--
                  (I) such loan is guaranteed or made before 
                the date that is three years after the date on 
                which the dwelling was substantially damaged or 
                destroyed; and
                  (II) such loan is only for repairs or 
                construction of the dwelling, as determined by 
                the Secretary.
          (E) The term ``subsequent loan'' means a loan to a 
        veteran, other than an interest rate reduction 
        refinancing loan, guaranteed under section 3710 or made 
        under section 3711 of this title that is not an initial 
        loan.
          (F) The term ``interest rate reduction refinancing 
        loan'' means a loan described in section 3710(a)(8), 
        3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 
        3762(h) of this title.
          (G) The term ``0-down'' means a downpayment, if any, 
        of less than 5 percent of the total purchase price or 
        construction cost of the dwelling.
          (H) The term ``5-down'' means a downpayment of at 
        least 5 percent or more, but less than 10 percent, of 
        the total purchase price or construction cost of the 
        dwelling.
          (I) The term ``10-down'' means a downpayment of 10 
        percent or more of the total purchase price or 
        construction cost of the dwelling.
  (c) Waiver of Fee.--(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, 
but for the receipt of retirement pay or active service pay, 
would be entitled to receive compensation), from a surviving 
spouse of any veteran (including a person who died in the 
active military, naval, air, or space service) who died from a 
service-connected disability, or from a member of the Armed 
Forces who is serving on active duty and who provides, on or 
before the date of loan closing, evidence of having been 
awarded the Purple Heart.
  (2)(A) A veteran described in subparagraph (B) shall be 
treated as receiving compensation for purposes of this 
subsection as of the date of the rating described in such 
subparagraph without regard to whether an effective date of the 
award of compensation is established as of that date.
  (B) A veteran described in this subparagraph is a veteran who 
is rated eligible to receive compensation--
          (i) as the result of a pre-discharge disability 
        examination and rating; or
          (ii) based on a pre-discharge review of existing 
        medical evidence (including service medical and 
        treatment records) that results in the issuance of a 
        memorandum rating.

           *       *       *       *       *       *       *


  CHAPTER 39--AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED 
VETERANS AND MEMBERS OF THE ARMED FORCES

           *       *       *       *       *       *       *



Sec. 3902. Assistance for providing automobile and adaptive equipment

  (a) The Secretary, under regulations which the Secretary 
shall prescribe, shall provide or assist in providing an 
automobile or other conveyance to each eligible person [by 
paying the total purchase price of the automobile or other 
conveyance] by paying the total purchase price of the 
automobile or other conveyance, and the total shipping price to 
deliver the automobile or other conveyance to the veteran 
(including all State, local, and other taxes) or $18,900 (as 
adjusted from time to time under subsection (e)), whichever is 
the lesser, to the seller from whom the eligible person is 
purchasing under a sales agreement between the seller and the 
eligible person.
  (b)(1) The Secretary, under regulations which the Secretary 
shall prescribe, shall provide each eligible person the 
adaptive equipment deemed necessary to insure that the eligible 
person will be able to operate the automobile or other 
conveyance in a manner consistent with such person's own safety 
and the safety of others and so as to satisfy the applicable 
standards of licensure established by the State of such 
person's residency or other proper licensing authority.
  (2) In the case of any veteran (other that a person eligible 
for assistance under paragraph (1) of this subsection) who is 
entitled to compensation for ankylosis of one or both knees, or 
one or both hips, the Secretary, under the terms and conditions 
set forth in subsections (a), (c), and (d) of section 3903 of 
this title and under regulations which the Secretary shall 
prescribe, shall provide such adaptive equipment to overcome 
the disability resulting from such ankylosis as (A) is 
necessary to meet the applicable standards of licensure 
established by the State of such veteran's residency or other 
proper licensing authority for the operation of such veteran's 
automobile or other conveyance by such veteran, and (B) is 
determined to be necessary by the Under Secretary for Health 
for the safe operation of such automobile or other conveyance 
by such veteran.
  (c) In accordance with regulations which the Secretary shall 
prescribe, the Secretary shall (1) repair, replace, or 
reinstall adaptive equipment deemed necessary for the operation 
of an automobile or other conveyance acquired in accordance 
with the provisions of this chapter, and (2) provide, repair, 
replace, or reinstall such adaptive equipment for any 
automobile or other conveyance which an eligible person may 
previously or subsequently have acquired.
  (d) If an eligible person cannot qualify to operate an 
automobile or other conveyance, the Secretary shall provide or 
assist in providing an automobile or other conveyance to such 
person, as provided in subsection (a) of this section, if the 
automobile or other conveyance is to be operated for the 
eligible person by another person.
  (e) Effective on October 1 of each year (beginning in 2011), 
the Secretary shall increase the dollar amount in effect under 
subsection (a) by a percentage equal to the percentage by which 
the Consumer Price Index for all urban consumers (U.S. city 
average) increased during the 12-month period ending with the 
last month for which Consumer Price Index data is available. In 
the event that such Consumer Price Index does not increase 
during such period, the Secretary shall maintain the dollar 
amount in effect under subsection (a) during the previous 
fiscal year.

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