[House Report 118-624]
[From the U.S. Government Publishing Office]


118th Congress }                                              {    Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                              {  118-624

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



 
              TRAINING RESPONSIBLE AND INFORMED NATIONAL 
                            VA EMPLOYEES ACT

                                _______
                                

 August 9, 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. 6531]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 6531) to direct the Secretary of Veterans 
Affairs to develop a training program for certain senior 
executives and supervisors employed by the Department of 
Veterans Affairs, 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..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Subcommittee Consideration.......................................     4
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     5
Budget Authority and Congressional Budget Office Estimate........     6
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     8
Statement on Duplication of Federal Programs.....................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9

    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 ``Training Responsible And Informed 
National VA Employees Act'' or the ``TRAIN VA Employees Act''.

SEC. 2. TRAINING PROGRAM FOR CERTAIN SENIOR EXECUTIVES AND SUPERVISORS.

  (a) Program Required.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall--
          (1) implement a mandatory training program for all covered 
        employees;
          (2) annually evaluate such training; and
          (3) regularly update the curriculum for such program to 
        ensure that such curriculum--
                  (A) covers areas of critical importance to success as 
                a supervisor and leader in the Department of Veterans 
                Affairs; and
                  (B) is based on industry standards for supervisory 
                competencies and needs identified through evaluations 
                under paragraph (2).
  (b) Consultation.--In developing the training required under 
subsection (a), the Secretary shall consult with the heads of at least 
three other Federal departments and agencies, including the Department 
of Defense, to gather information about how such departments and 
agencies approach management training.
  (c) Current Employees.--Any individual who as of the date of the 
enactment of this Act is an covered employee shall be required, as a 
condition of continued employment at the Department of Veterans 
Affairs, to complete the training program developed under subsection 
(a) by not later than 18 months after the date of the enactment of this 
Act.
  (d) Refresher Training.--The Secretary shall develop a refresher 
training program for the program required under subsection (a), and 
each covered employee shall be required, as a condition of continued 
employment at the Department of Veterans Affairs, to complete such 
refresher training once every two years.
  (e) Design of Training.--The training program required under 
subsection (a) shall be designed using principles of adult learning and 
industry standard instructional design. To the extent practicable, the 
training shall--
          (1) be instructor-based; and
          (2) focus on--
                  (A) developing and discussing relevant performance 
                goals and objectives with the employees they supervise;
                  (B) communicating and discussing employees' progress 
                relative to performance goals and objectives, and 
                conducting performance appraisals;
                  (C) mentoring and motivating employees and improving 
                employee engagement, performance, and productivity;
                  (D) effectively managing employees with unacceptable 
                performance, including training to understand the 
                disciplinary options and procedures available to the 
                supervisor;
                  (E) prohibited personnel practices, employee rights, 
                and the procedures and processes used to enforce 
                employee rights;
                  (F) effectively using the probationary period to 
                examine whether an employee has demonstrated successful 
                performance or conduct to continue past the 
                probationary period;
                  (G) addressing reports of a hostile work environment, 
                retaliation, or harassment of, or by, another 
                supervisor or employee;
                  (H) collaborating with human resources employees to 
                recruit, select, appraise, and reward employees to 
                build a workforce based on organizational goals, budget 
                considerations, and staffing needs; and
                  (I) carrying out the duties or responsibilities of a 
                supervisor.
  (f) Report.--Not later than one year after the date on which the 
Secretary implements the training program under subsection (a), and 
annually thereafter, the Secretary shall submit to the Committees on 
Veterans Affairs of the Senate and House of Representatives a report on 
the rate at which covered employees completed such training program 
during the year preceding the date of each such report.
  (g) Covered Employee Defined.--In this section, the term ``covered 
employee'' means an employee of the Department of Veterans Affairs who 
is--
          (1) a supervisor (as defined in section 7103(a) of title 5, 
        United States Code); or
          (2) a covered individual under section 713 of title 38, 
        United States Code.

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 ``December 4, 2031''.

                          Purpose and Summary

    H.R. 6531, the ``Training Responsible And Informed National 
VA Employees Act,'' was introduced by Rep. Chris Pappas of New 
Hampshire on November 30, 2023. The bill, as amended, would 
direct the Secretary of the U.S. Department of Veterans Affairs 
(VA) to develop and implement a mandatory leadership and 
accountability training program for current and future senior 
executives and supervisors. Finally, the bill, as amended, 
would provide an offset for the costs associated with this 
requirement 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 ``Training Responsible And 
Informed National VA Employees Act,'' or the ``TRAIN VA 
Employees Act.''

Section 2: Training Program for Certain Senior Executives and 
        Supervisors

    According to the VA Workforce Dashboard, (VA) is growing at 
the highest annual rate in twenty years.\1\ VA's workforce is 
spread across the Veterans Health Administration (VHA), 
Veterans Benefit administration (VBA), and the National 
Cemetery Administration (NCA), and totals more than 350,000 
employees. Out of these employees, 470 are a part of the Senior 
Executive Service (SES). SES employees are responsible for 
leading and managing various agencies within VA. SES members 
are career civil servants and oversee policy implementation, 
strategic planning, and program management. Additionally, they 
supervise lower grade employees. During the 118th Congress, the 
House Committee on Veterans' Affairs (Committee) heard numerous 
stories from whistleblowers detailing a toxic and hostile work 
environment perpetuated by VA's SES leaders. Such negative 
leadership is dangerous to veterans receiving the healthcare 
and other benefits they have earned by decreasing employee 
morale and therefore causing a shortage of employees.
---------------------------------------------------------------------------
    \1\VA Workforce Dashboard. July 28, 2023, found at https://
www.va.gov/EMPLOYEE/docs/
workforce/VA-Workforce-Dashboard-Issue-03.pdf.
---------------------------------------------------------------------------
    The Committee believes it is critical to ensure VA's 
leadership is given the resources necessary to successfully 
lead subordinates and ensure that offices that are being paid 
for by taxpayers are being run responsibly. This section would 
develop mandatory training for SES members and other 
supervisors at VA. The new training would cover topics such as 
developing performance goals, managing employees with 
unacceptable behavior, and material to increase the awareness 
of the rules and procedures available to supervisors when 
considering disciplinary action. Such training would be 
required every two years for current and future employees. The 
Committee believes the training would provide supervisors with 
more recourses to successfully lead at VA. By doing so, the 
expectation is VA would experience an increase in employee 
morale; therefore, reducing the employee shortage. The 
Committee believes that adequate training for supervisors is 
necessary to fix mismanagement within the Department and ensure 
that VA has a robust workforce to deliver care to veterans.

Section 3: Modification of Certain Housing Loan Fees

    Currently, veterans who take advantage of the VA home Loan 
Program pay a small fee that is included in their monthly 
mortgage payment. This section would cover the costs of the 
other sections of this bill by extending the current rates for 
VA home loan funding fees by two weeks to December 4, 2031. 
Extending the funding fee increases a veteran's monthly costs 
by about five dollars 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 Thursday, March 21, 2024, the Subcommittee on Oversight 
and Investigations held a legislative hearing on H.R. 6531 and 
other bills that were pending before the subcommittee.
    The following witnesses testified:
          Mr. John W. Boerstler, Chief Veterans Experience 
        Office, Office of Human Resources and Administration/
        Operations, Security, and Preparedness (HRA/OSP), U.S. 
        Department of Veterans Affairs; Ms. Tracey Therit, 
        Chief Human Capital Officer, HRA/OSP, U.S. Department 
        of Veterans Affairs; Mr. David Perry, Chief Officer, 
        Workforce Management and Consulting, Veterans Health 
        Administration, U.S. Department of Veterans Affairs; 
        Mr. Charles Worthington, Chief Technology Officer, 
        Office of Information Technology, U.S. Department of 
        Veterans Affairs; and Ms. Joycelyn Westbrooks, 
        Registered Nurse, Secretary-Treasurer, American 
        Federation of Government Employees Local 1633, U.S. 
        Department of Veterans Affairs.
    The following individuals and organizations submitted 
statements for the record:
          Representative Mike Turner (OH-10), Representative 
        Brandon Williams (NY-22), American Association of Nurse 
        Anesthesiology, National Federation of Federal 
        Employees, Service Employees International Union, 
        Paralyzed Veterans of America, Senior Executives 
        Association, and United Nurses Association of 
        California/Union of Health Care Professionals.

                       Subcommittee Consideration

    On Wednesday, April 17, 2024, the Subcommittee on Oversight 
and Investigations held a markup on pending legislation 
including H.R. 6531. There were no amendments to H.R. 6531 
during the Subcommittee markup. A motion by Mr. Mrvan to report 
H.R. 6531, was favorably forwarded to the Full Committee on 
Veterans' Affairs.

                        Committee Consideration

    On Wednesday, May 1, 2024, the Full Committee met in open 
markup session, a quorum being present, and ordered H.R. 6531, 
as amended, be reported favorably to the House of 
Representatives by voice vote. During consideration of the 
bill, the following amendments were considered:
          1. An amendment in the nature of a substitute offered 
        by Ranking Member Takano that would add additional bill 
        text to add an annual evaluation of the training's 
        effectiveness, requires the training to be updated 
        regularly based on industry standards. In addition, the 
        amendment included provisions that would adjust the 
        dates in section three of the bill to offset costs. The 
        amendment in the nature of a substitute passed by voice 
        vote.
          2. An amendment to the amendment in the nature of a 
        substitute offered by Mr. Pappas that would further 
        adjust necessary offsets to cover the full CBO 
        preliminary estimate. The amendment to the amendment in 
        the nature of a substitute passed by voice vote.
    A motion by Ranking Member Takano to report H.R. 6531, 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. 6531, 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. 6531, as amended, would direct the 
Secretary to develop and implement a mandatory training program 
for current and future senior executives and supervisors.

                  Earmarks and Tax and Tariff Benefits

    H.R. 6531, 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 cost estimate on H.R. 
6531, as amended, prepared by the Director of the Congressional 
Budget Office.

           Budget Authority and Congressional Budget Office 
                             Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 6531, as amended, provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974:




    H.R. 6531 would require the Department of Veterans Affairs 
(VA) to develop a training program for all of its supervisors. 
The bill would also increase the fees that VA charges borrowers 
for its home loan guarantees.
    Spending subject to appropriation: The bill would require 
VA to develop and deliver a training program for its 
supervisors, focusing on areas such as leadership and 
performance management. Supervisors would receive the training 
in person from a live instructor. All supervisors would be 
required to complete the training within 18 months of the 
bill's enactment and biennially thereafter.
    Using information from VA, CBO estimates the department 
would need 12 full-time equivalent employees to administer the 
required training to its 50,000 supervisors. Those trainers 
would receive annual pay and benefits averaging $162,000 over 
the 2024-2034 period, for a total of $19 million, CBO 
estimates. Training materials, information technology, and 
travel needed to implement the bill would cost about $2 million 
per year and total $22 million over that same period. In total, 
implementing the training program required by H.R. 6531 would 
cost $41 million over the 2024-2034 period, CBO estimates. Such 
spending would be subject to the availability of appropriated 
funds.
    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. 6531
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                     ---------------------------------------------------------------------------------------------------
                                                       2024   2025   2026   2027   2028   2029   2030   2031   2032    2033   2034  2024-2029  2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization.............................      *      4      4      4      4      4      4      5       5      5      5        20         44
Estimated Outlays...................................      *      2      4      4      4      4      4      4       5      5      5        18         41
 
                                                            DECREASES (-) IN DIRECT SPENDING
 
Budget Authority....................................      0      0      0      0      0      0      0      0     -30      0      0         0        -30
Estimated Outlays...................................      0      0      0      0      0      0      0      0     -30      0      0         0        -30
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Direct spending: H.R. 6531 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\ That subsidy cost is recorded in the budget as 
direct spending.
---------------------------------------------------------------------------
    \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 2.3 percent to 
about 1.2 percent of the loan amount. The bill would extend the 
higher rates through December 4, 2031, thereby reducing the 
subsidy cost of loans guaranteed during that period. Using its 
forecast of loan volume based on data provided by VA, CBO 
estimates that extending the higher rates would decrease direct 
spending by $30 million over the 2024-2034 period.
    The CBO staff contacts for this estimate are Logan Smith 
(for other VA costs) and Paul B.A. Holland (for home loans). 
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. 6531, 
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. 
6531, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 6531, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodation 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. 6531, as amended, establishes or reauthorizes a program 
of the Federal Government known to be duplicative of another 
Federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of P.L. 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 
``Training Responsible And Informed National VA Employees 
Act,'' or the ``TRAIN VA Employees Act.''

Section 2. Training program for certain senior executives and 
        supervisors

    Section 2(a) would require the Secretary to implement a 
mandatory training program for all covered employees, annually 
evaluate the training, and regularly update the curriculum for 
the training programs to ensure the curriculum covers areas of 
critical importance to VA supervisor and leader success and 
ensure the curriculum is based on industry standards for 
supervisory competencies and needs identified through the 
training evaluations.
    Section 2(b) would require the Secretary to consult with 
the heads of at least three other Federal departments and 
agencies to gather information about how such departments and 
agencies approach management training.
    Section 2(c) would require every covered employee to 
complete the training no later than 18 months after the date of 
the bill's enactment.
    Section 2(d) would require the Secretary development a 
refresher training program for the program required under 
Section 2(a). Section 2(d) would also require each covered 
employee, as a condition of continued VA employment, to 
complete the refresher training once every two years.
    Section 2(e) would require the training program be designed 
using principles of adult learning and industry standard 
instructional design. This section would mandate the training, 
to the extent practicable, be instructor-based and provided in-
person and focus on the following: (A) developing and 
discussing relevant performance goals and objectives with the 
employees they supervise; (B) communicating and discussing 
employee's progress relative to performance goals and 
objectives and performance appraisals; (C) mentoring and 
motivating employees and improving employee engagement, 
performance, and productivity; (D) effectively managing 
employees with unacceptable performance, including training to 
understand the disciplinary options and procedures available to 
the supervisor; (E) prohibited personnel practices, employee 
rights, and the procedures and processes used to enforce 
employee rights; (F) effectively using the probationary period 
to examine whether employees demonstrated successful 
performance or conduct to continue past the probationary 
period; (G) addressing reports of a hostile work environment, 
retaliation, or harassment of, or by, other supervisors or 
employees; (H) collaborating with human resources employees to 
recruit, select, appraise, and reward employees to build a 
workforce based on organizational goals, budget considerations, 
and staffing needs; and (I) carrying out supervisor duties or 
responsibilities.
    Section 2(f) would require the Secretary, not later than 
one year after the date on which the Secretary implements the 
training program under subsection (a), and annually thereafter, 
to submit to the Committees on Veterans' Affairs of the Senate 
and House of Representatives a report on the rate at which 
covered employees completed such training program during the 
year preceding the date of each report.
    Finally, Section (g) would define covered employee as a VA 
employee who is a supervisor, as defined in 5 U.S.C. 
Sec. 7103(a) or a covered individual under 38 U.S.C. Sec. 713.

Section 3. Modification of certain housing loan fees

    This section would amend the loan fee table in 38 U.S.C. 
Sec. 3729(b)(2) by striking ``November 15, 2031'' in each place 
it appears and inserting ``December 4, 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,] December 4,   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,] December 4,   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,] December 4,   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,] December 4,
 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,] December 4,   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,] December 4,
 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,] December 4,   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,] December 4,
 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.

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