[House Report 118-938]
[From the U.S. Government Publishing Office]
118th Congress } { Rept. 118-938
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
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TO ENSURE THAT CERTAIN MEMBERS OF THE ARMED FORCES WHO SERVED IN FEMALE
CULTURAL SUPPORT TEAMS RECEIVE PROPER CREDIT FOR SUCH SERVICE
_______
December 19, 2024.--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. 1753]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 1753) to ensure that certain members of the
Armed Forces who served in female cultural support teams
receive proper credit for such service, 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......................................................... 5
Subcommittee Consideration....................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 9
Statement of General Performance Goals and Objectives............ 9
Earmarks and Tax and Tariff Benefits............................. 9
Committee Cost Estimate.......................................... 9
Budget Authority and Congressional Budget Office Estimate........ 9
Federal Mandates Statement....................................... 14
Advisory Committee Statement..................................... 14
Applicability to Legislative Branch.............................. 14
Statement on Duplication of Federal Programs..................... 14
Section-by-Section Analysis of the Legislation................... 14
Changes in Existing Law Made by the Bill as Reported............. 15
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. CREDIT FOR CERTAIN MEMBERS OF THE ARMED FORCES WHO SERVED IN
FEMALE CULTURAL SUPPORT TEAMS.
(a) Military Service: Records; Calculation of Retired Pay.--Not later
than one year after the date of the enactment of this Act, the
Secretary concerned shall ensure that the performance of covered
service is included in--
(1) the military service record of each individual who
performed covered service; and
(2) the computation of retired pay for each individual who
performed covered service.
(b) Claims for Veterans Benefits Arising From Covered Service.--
(1) Determination of service connection.--Upon the filing of
a claim by an individual for service-connected disability or
death incurred or aggravated in the course of covered service,
the Secretary of Veterans Affairs shall determine whether such
disability or death was service-connected.
(2) Treatment of covered service.--In the consideration of a
claim under this subsection, the Secretary shall treat covered
service as engagement in combat with the enemy in the course of
active military, naval, air, or space service.
(3) Effective date of award.--Except as provided by
subparagraph (B), the effective date of an award under this
subsection shall be determined in accordance with section 5110
of title 38, United States Code.
(4) Processing of claims.--The Secretary of Veterans Affairs,
in consultation with the Secretary of Defense, shall improve
training and guidance for employees who may process a claim
under this subsection.
(5) Outreach.--The Secretary shall conduct outreach to inform
individuals who performed covered service (and survivors of
such individuals) that they may submit supplemental claims for
service-connected disability or death incurred or aggravated in
the course of covered service. Such outreach shall include the
following:
(A) The Secretary shall publish on the internet
website of the Department a notice that such
individuals may elect to file a supplemental claim.
(B) The Secretary shall notify, in writing or by
electronic means, veterans service organizations of the
ability of such individuals to file a supplemental
claim.
(c) Study and Report on Certain Members of the Armed Forces.--
(1) Study.--The Secretary of Defense, in collaboration with
the Secretary of Veterans Affairs, shall conduct a study to
identify the size and number of groups of individuals who--
(A) performed service as a member of the Armed Forces
that the Secretary of Defense and Secretary of Veterans
Affairs determine is substantially similar to covered
service; and
(B) have a military service record that does not
include such service as a member of the Armed Forces.
(2) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense and the
Secretary of Veterans Affairs shall submit to Congress a report
that includes the findings of the study under paragraph (1).
(d) Definitions.--In this section:
(1) The term ``covered service'' means service--
(A) as a member of the Armed Forces;
(B) in a female cultural support team;
(C) with the personnel development skill identifier
of R2J or 5DK; and
(D) during the period beginning on January 1, 2010,
and ending on August 31, 2021.
(2) The terms ``active military, naval, air, or space
service'' and ``service-connected'' have the meanings given
such terms in section 101 of title 38, United States Code.
(3) The term ``Secretary concerned'' has the meaning given
such term in section 101 of title 10, United States Code.
SEC. 2. REPORT ON CERTAIN CLAIMS FOR SERVICE-CONNECTED DISABILITY.
(a) Report Required.--Not later than one year after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall submit
to the Committees on Veterans' Affairs of the Senate and House of
Representatives a report regarding covered claims. Such report shall
include the numbers of covered claims, disaggregated by gender of the
claimant and whether the military service record of the claimant
includes a combat identifier, that, respectively--
(1) were submitted;
(2) were granted;
(3) were denied;
(4) were unresolved; or
(5) were appealed.
(b) Definitions.--In this section:
(1) The term ``covered claim'' means a claim--
(A) for service-connected disability;
(B) on the basis of post-traumatic stress disorder or
traumatic brain injury; and
(C) submitted to the Secretary of Veterans Affairs on
or after January 1, 1990.
(2) The term ``service-connected'' has the meaning given such
term in section 101 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 3, 2031''.
Purpose and Summary
Page H.R. 1753, ``To ensure that certain members of the
Armed Forces who served in female cultural support teams
receive proper credit for such service,'' was introduced by
Rep. Darrell E. Issa of California on March 23, 2023.
This bill, as amended, would require the Department of
Defense (DoD) to update military service records and
computation of retired pay to reflect the performance of female
veterans who served on a cultural support team (CST). This
bill, as amended, would also require the Department of Veterans
Affairs (VA) to treat CST service as service in combat in
claims for disability compensation filed by such female
veterans. This bill would also require VA, in consultation with
DoD, to improve training and guidance for VA employees
processing such claims and require VA to conduct outreach to
such CST veterans about the opportunity to submit supplemental
claims for disability compensation. The bill, as amended, would
also require DoD and VA to conduct a study, and report the
results of such study to Congress, on veterans with service
similar to CST service. It would also require VA to report to
Congress information on claims for service-connected disability
compensation based on posttraumatic stress disorder (PTSD) or
traumatic brain injury (TBI) submitted on or after January 1,
1990, including the disposition of such claims. Finally, the
bill, as amended, would 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: Credit for Certain Members of the Armed Forces Who Served in
Female Cultural Support Teams
CSTs were comprised of female soldiers serving during the
Global War on Terror who deployed with special operations
forces from 2010 to 2021. These women engaged and communicated
with the female population in combat zones because it was
culturally inappropriate for the male soldiers to engage with
the Afghani and Iraqi women. These women therefore served in
combat zones alongside male special operations teams before
2013, when DoD lifted the ban on women serving in combat.\1\
After separation from military service, these women sought
treatment for conditions such as PTSD and TBI. However, because
of DoD's prior ban on women serving in combat and because these
veterans' service records did not reflect combat service, VA
does not recognize female servicemembers who served on CSTs as
having served in combat for purposes of their claims for VA
disability compensation. As a result, these female veterans are
not entitled to the relaxed standard of proof in claims for
disability compensation based on combat service under 38 U.S.C.
Sec. 1154(b) and 38 C.F.R. Sec. 3.304(f), thereby making it
more difficult for them to receive an award of service-
connected disability compensation. The Committee also
understands that there may be other groups of female
servicemembers who served in combat conditions who, like CST
members, have not been recognized by DoD and VA as having
served in combat.\2\
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\1\Statement for the Record for November 8, 2024 Subcommittee on
Disability Assistance and Memorial Affairs Legislative Hearing, Special
Operations Association of America (October 20, 2023), https://
docs.house.gov/meetings/VR/VR09/20231108/116450/HHRG-118-VR09-20231108-
SD007.pdf.
\2\Statement for the Record for November 8, 2024 Subcommittee on
Disability Assistance and Memorial Affairs Legislative Hearing, Service
Women's Action Network (October 24, 2023), https://docs.house.gov/
meetings/VR/VR09/20231108/116450/HHRG-118-VR09-20231108-SD008.pdf.
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To address these issues, this section would ensure that
female CST members' military service records and retired pay
computation reflect their performance of service in a CST. This
section would also require VA to treat CST service as service
as engagement in combat when making decisions on claims for
service-connected disability compensation. As a result, VA
would be required to afford female CST members the relaxed
standard of proof in claims based on combat service. This
section would also ensure that female CST members whose claims
were previously denied are notified of the opportunity to
resubmit claims for disability compensation. This section would
also require DoD, in collaboration with VA, to study and report
to Congress what other female servicemember groups engaged in
service substantially similar to CST service and whose military
service records do not reflect such service.
The Committee believes that this section is important
because it would acknowledge the contributions and sacrifices
of female servicemembers who served on CSTs in a combat zone,
and it would improve their access to VA benefits for
disabilities that they developed as a result of their combat-
related military service. This section would also ensure that
there is available data for Congress to consider before
enacting any future recognition of combat service on the part
of other female military units who served under conditions
similar to CST members.
Section 2: Report on Certain Claims for Service-Connected Disability
The Committee understands that it may be more difficult for
female veterans with TBI and PTSD to receive awards of VA
disability compensation compared to male veterans, including
male veterans with confirmed combat service. This section would
VA to submit a report to Congress on claims for service
connection for PTSD or TBI that were submitted to VA on or
after January 1, 1990, disaggregated by gender of claimant,
whether the claimant's military service record included a
combat identifier, and the disposition of such claims. The
Committee believes that this data is important for Congress to
assess whether there is a need for further action to ensure
that female veterans have access to the disability compensation
benefits they have earned in exchange for their service.
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 roughly two weeks to
December 3, 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 8, 2023, the Subcommittee on Disability
Assistance and Memorial Affairs held a legislative hearing on
H.R. 1753 and other bills that were pending before the
subcommittee.
The following witnesses testified:
The Honorable Morgan Luttrell, U.S. House of
Representatives; The Honorable Mike Bost, U.S. House of
Representatives; The Honorable Elissa Slotkin, U.S.
House of Representatives; The Honorable Juan Ciscomani,
U.S. House of Representatives; The Honorable Abigail
Davis Spanberger, U.S. House of Representatives; The
Honorable Keith Self, U.S. House of Representatives;
The Honorable David J. Trone, U.S. House of
Representatives; The Honorable Darrell Issa, U.S. House
of Representatives; Ms. Beth Murphy, Executive
Director, Compensation Service, Veterans Benefits
Administration, U.S. Department of Veterans Affairs;
Mr. Kevin Friel, Deputy Director, Pension & Fiduciary
Service, Veterans Benefits Administration, U.S.
Department of Veterans Affairs; Mr. Kenneth Arnold,
Vice Chairman, Board of Veterans' Appeals, U.S.
Department of Veterans Affairs; Mr. Shane Liermann,
Deputy National Legislative Director, Disabled American
Veterans (DAV); Ms. Quandrea N. Patterson, Associate
Director, Veterans of Foreign Wars of the United States
(VFW); and Mr. Zachary M. Stolz, Partner, Chisholm,
Chisholm, & Kilpatrick LTD.
The following individuals and organizations submitted
statements for the record:
The Honorable Gerald E. Connolly, U.S. House of
Representatives; The ALS Association; American Veterans
(AMVETS); National Organization of Veterans' Advocates
(NOVA); Paralyzed Veterans of America (PVA); Quality.
Timeliness. Customer Service (QTC); Special Operations
Association of America; Service Women's Action Network,
and Military Veterans Advocacy.
Subcommittee Consideration
On November 29, 2023, the Subcommittee on Disability
Assistance and Memorial Affairs held a markup on proposed
legislation, including H.R. 1753. During the consideration of
the bill, the following amendments were considered:
An amendment in the nature of a substitute to H.R.
1753 was offered by Representative Ciscomani to strike
the bill's findings and the exceptions to the current
statutory rules under 38 U.S.C. Sec. 5110 for the
assignment of effective dates of awards. The amendment
in the nature of a substitute would also require DoD
and VA to conduct a study, and report the findings of
such study to Congress, on the size and number of
groups of individuals who fall into substantially
similar categories of female soldiers covered under the
bill. The amendment was agreed to by voice vote.
An amendment to the amendment in the nature of a
substitute to H.R. 1753 was offered by Ranking Member
Pappas to expand the population covered by the bill to
any female soldier who served on a lioness team, served
on a female engagement team, or performed functions
similar to the functions authorized by the personnel
development skill identifier of R2J or 5DK, during the
period from January 1, 2003 to August 31, 2021. The
amendment was not agreed to by a voice vote.
An amendment to the amendment in the nature of a
substitute to H.R. 1753 was offered by Rep. Ramirez to
require VA to submit a report to Congress on claims for
service connection for PTSD or TBI that were submitted
to VA on or after January 1, 1990, disaggregated by
gender of claimant, whether the claimant's military
service record included a combat identifier, and the
disposition of such claims. The amendment was agreed to
by a voice vote.
A motion made by Ranking Member Pappas to favorably forward
H.R. 1753, as amended, to the Full Committee was agreed to by
voice vote.
Committee Consideration
On December 5, 2023, the Full Committee met in open markup
session, a quorum being present, and ordered H.R. 1753, as
amended, 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 extended the current rates for VA home
loan funding fees to pay for mandatory and
discretionary costs. The amendment was agreed to by a
voice vote.
An amendment to the amendment in the nature of a
substitute to H.R. 1753, was offered by Ranking Member
Takano to expand the population covered by the bill to
any female soldier who served in combat, served under
the threat of enemy fire, or performed functions
similar to the functions authorized by the personnel
development skill identifier of R2J or 5DK, during the
period from January 1, 1990 to August 31, 2021. The
amendment was not agreed to by a recorded vote of 11
yeas and 13 nays.
A motion by Ranking Member Takano to report H.R. 1753, as
amended, favorably to the House of Representatives was agreed
to by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto.
An amendment to the amendment in the nature of a substitute
to H.R. 1753 offered by Ranking Member Takano was not agreed to
by a recorded vote of 11 yeas and 13 nays. The names of Members
voting for and against follow:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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. 1753, as amended, are to ensure
that female veterans who served under combat conditions have
the benefit of the same eligibility criteria for disability
compensation as male veterans who served in combat.
Earmarks and Tax and Tariff Benefits
H.R. 1753, 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]
The bill would:
Increase disability payments from the
Department of Veterans Affairs (VA) by making it easier
for certain veterans to establish that their conditions
were caused by service in combat
Provide additional health care for veterans
whose disabilities were determined to be caused by
service in combat
Extend the higher rates for fees that VA
charges borrowers for home loan guarantees
Require reports to the Congress
Estimated budgetary effects would mainly stem from:
Increasing disability compensation payments
to certain veterans with service in combat
Increasing health care usage by veterans
with service in combat
Extending the higher rates for fees charged
by VA for home loan guarantees
Areas of significant uncertainty include:
Estimating the number of veterans that would
apply for and receive additional benefits
Bill summary: H.R. 1753 would increase disability
compensation benefits from the Department of Veterans Affairs
(VA) for veterans who served in cultural support teams from
January 1, 2010, through August 31, 2021, and increase VA
health care benefits for some of those veterans. The bill would
increase the fees that borrowers pay for VA's home loan
guarantees in 2032. The bill also would require VA and the
Department of Defense (DoD) to report to the Congress.
Estimated Federal cost: The estimated budgetary effects of
H.R. 1753 are shown in Table 1. The costs of the legislation
fall within budget function 700 (veterans benefits and
services).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1753
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2024-2029 2024-2034
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INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority................ 0 1 2 2 2 2 3 2 -26 2 2 9 -8
Estimated Outlays......................... 0 1 2 2 2 2 3 2 -26 2 2 9 -8
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization................... 0 * * 1 1 * * * 1 1 1 2 5
Estimated Outlays......................... 0 * * 1 1 * * * 1 1 1 2 5
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* = between zero and $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
1753 will be enacted in fiscal year 2024 and that increases in
disability compensation will begin in 2025. CBO estimates that
outlays will follow historical spending patterns for affected
provisions.
Direct spending: H.R. 1753 would increase disability
compensation benefits for certain veterans. Some of those
veterans also would receive more health care from VA, a portion
of which would be paid from the Toxic Exposures Fund (TEF), a
mandatory appropriation. The bill also would modify the fees
that VA charges borrowers for its home loan guarantees. CBO
estimates that H.R. 1753 would, on net, reduce direct spending
by $8 million over the 2024-2034 period (see Table 2).
TABLE 2.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 1753
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2024-2029 2024-2034
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Disability Compensation:
Budget Authority............................... 0 1 2 2 2 2 2 2 2 2 2 9 19
Estimated Outlays.............................. 0 1 2 2 2 2 2 2 2 2 2 9 19
Health Care:
Estimated Budget Authority..................... 0 * * * * * 1 * * * * * 1
Estimated Outlays.............................. 0 * * * * * 1 * * * * * 1
Home Loan Fees:
Budget Authority............................... 0 0 0 0 0 0 0 0 -28 0 0 0 -28
Estimated Outlays 0 0 0 0 0 0 0 0 -28 0 0 0 -28
Total Changes:
Budget Authority........................... 0 1 2 2 2 2 3 2 -26 2 2 9 -8
Estimated Outlays.......................... 0 1 2 2 2 2 3 2 -26 2 2 9 -8
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* = between zero and $500,000.
Disability Compensation. H.R. 1753 would reduce the
standards of evidence required for certain veterans to qualify
for disability compensation from VA.\1\ Disability compensation
is paid from mandatory appropriations.
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\1\Disability compensation is a monthly cash benefit paid to
veterans who have disabilities or diseases that VA determines are
connected to their military service. VA assigns a disability rating to
veterans depending on the severity of their condition. The ratings
range from zero to 100 percent and increase in increments of 10
percent; veterans with higher ratings receive more compensation.
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Under the bill, veterans who served in cultural support
teams from January 1, 2010, through August 31, 2021, and who
have certain skills certified in their military records would
benefit from a lower standard of evidence required on certain
disability claims. Although those teams worked closely with
combat units to facilitate interactions with women and children
at locations in the Middle East and North Africa, DoD did not
designate them as combat units. According to public
information, 310 female service members were assigned to those
teams. Under H.R. 1753, their service would be considered
service in engagement in combat with the enemy.
To receive disability compensation, veterans generally must
establish that they have a current disability, that the
disability was incurred or aggravated during service, and that
there is a medical link between the current disability and an
injury or disease that occurred during service. For most
veterans, evidence such as military service records, medical
records from their time in service, or other similar sources
can support a claim that a current disability occurred during
service.
Veterans with combat service can use a lower standard of
evidence to establish that a current disability occurred during
service. Significantly, lay evidence (for example, statements
from fellow service members) that the disability was incurred
during combat service may be sufficient to support a claim for
disability compensation, even if there is no other record of an
event. (Lay evidence is generally accepted by VA but is not
sufficient to establish that a disability is connected to
military service for veterans who did not serve in combat.)
H.R. 1753 would allow veterans who served in a cultural support
team to benefit from the reduced evidentiary standard to
qualify for disability compensation.
CBO used information about other veterans of the Gulf War
era to estimate the bill's effect on benefits for eligible
veterans. Of the 310 veterans who served on cultural support
teams, CBO expects that half, or 155 veterans, would apply for
and receive new or increased disability compensation. CBO
estimates that beginning in 2025, about 45 percent, or 70
veterans, would newly receive disability compensation and the
other 85 would receive an increase in the compensation they get
under current law.
CBO estimates that annual compensation for each newly
eligible veteran would average $16,000 and that the increase
for veterans who currently receive compensation would average
$13,000. In total, enacting the provision would increase direct
spending by $19 million over the 2024-2034 period, CBO
estimates.
Health Care. Under the bill, some veterans who served in
cultural support teams would receive new disability ratings,
some of whom would receive additional VA health care benefits.
Under current law, veterans who enroll in VA's health care
system are assigned to priority groups using criteria that
include whether they have service-connected disabilities and
the severity of those disabilities. Veterans without service-
connected disabilities also can receive VA health care
benefits, depending on their income.
Assignment to a priority group affects access to health
care and is used to determine out-of- pocket costs. Veterans
with service-connected disabilities receive the highest
priority for medical treatment. VA's costs to provide care are
higher for veterans in higher priority groups, and those
veterans pay less out of pocket--or pay nothing at all. Some
also can receive additional benefits, such as transportation
subsidies for medical appointments. Veterans in the highest
priority groups are more likely than those in lower groups to
enroll in and use VA health benefits and services.
CBO estimates that about 50 of the 70 veterans with new
disability ratings would newly enroll and that, on average, the
annual cost for each veteran's health care would total $9,000.
The cost for another 20 veterans who already are enrolled would
increase by $6,000, on average, above the cost under current
law. CBO estimates that enacting the bill would increase
spending for VA health care by $6 million over the 2024-2034
period. (CBO anticipates that the cost of VA health care would
not change significantly for some veterans who would receive
higher disability ratings as a result of the bill.)
Some veterans who would receive additional health care from
VA have been exposed to environmental hazards. Thus, CBO
expects that some of the costs of their care would be paid from
the Toxic Exposures Fund, a mandatory appropriation that VA
uses to pay for health care, disability claims processing,
medical research, and information technology modernization that
benefit veterans who were exposed to environmental hazards.
Additional spending from the TEF occurs if legislation
increases the costs of similar activities that benefit veterans
with such exposure. Enacting the bill thus would increase
amounts paid from the TEF, which are classified as direct
spending.
In CBO's baseline projections, the portion of health care
costs paid from the TEF averages 20 percent over the 2024-2034
period. Using that average, CBO estimates that $1 million of
the $6 million in additional health care spending under the
bill would be paid from the TEF. The remainder would be paid
from discretionary appropriations, which are discussed below in
``Spending Subject to Appropriation.''
Home Loan Fees. H.R. 1753 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.\2\ Those costs are recorded in the budget as direct
spending.
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\2\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.
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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 3, 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 $28 million over the 2024-2034 period.
Spending subject to appropriation: Health care costs and
reporting requirements associated with H.R. 1753 would increase
spending subject to appropriation by $5 million over the 2024-
2034 period, CBO estimates (see Table 1). Such spending would
be subject to the availability of appropriated funds.
As discussed above in ``Direct Spending,'' some
beneficiaries who would receive disability compensation because
of the bill also would receive additional health care from VA.
Using cost allocations in CBO's baseline projections, about 80
percent that spending--or $5 million--would be subject to
appropriation.
H.R. 1753 would require VA and DoD to report to the
Congress on the number of people who served in cultural support
teams. VA also would be required to report on the number of
those veterans who have applied for and received disability
compensation. Based on the cost of similar activities, CBO
estimates that satisfying those requirements would cost less
than $500,000 over the 2024-2034 period.
Uncertainty: CBO's estimate of the bill's costs is subject
to uncertainty about the number of veterans who would apply for
and receive disability compensation under the lower evidentiary
standards. If more or fewer veterans become eligible than CBO
expects, costs could be higher or lower than CBO estimates.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 1753 would not increase net direct
spending by more than $2.5 billion in any of the four
consecutive 10-year periods beginning in 2035.
CBO estimates that enacting H.R. 1753 would not increase
on-budget deficits by more than $5 billion in any of the four
consecutive 10-year periods beginning in 2035.
Mandates: The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act.
Estimate prepared by: Federal Costs: Paul B. A. Holland
(for home loans); Logan Smith (for disability compensation);
David Newman (for health care). Mandates: Grace Watson.
Estimate reviewed by: David Newman, Chief, Defense,
International Affairs, and Veterans' Affairs Cost Estimates
Unit; Kathleen FitzGerald, Chief, Public and Private Mandates
Unit; Christina Hawley Anthony, Deputy Director of Budget
Analysis.
Estimate approved by: 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. 1753, 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.
1753, as amended.
Applicability to Legislative Branch
The Committee finds that H.R. 1753, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of
section102(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. 1753, 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: Credit for certain members of the armed forces who served in
female cultural support teams
This section would require the DoD to ensure that the
performance of covered service is included in each veteran's
military service record and the computation of retired pay for
each such veteran. This section would define ``covered
service'' as service as a member of the Armed Forces; in a
female CST; with the personnel development skill identifier R2J
or 5DK; and during the period from January 1, 2010, through
August 31, 2021.
This section would also require VA to treat covered service
as service as engagement in combat when making decisions on
claims for service-connected disability compensation. This
section would also specific that the effective date of any
award of any such claim filed by a veteran with covered service
would be in accordance with current law under 38 U.S.C. Sec.
5110. This section would also require VA, in consultation with
DoD, to improve training and guidance for VA employees who may
process a claim for service connection based on covered
service.
This section would also require VA to conduct outreach to
inform veterans who performed covered service about the
opportunity to submit supplemental claims for service-
connected disability compensation, and such outreach would
include publication on the VA website and notification to
veterans service organizations. This section would also require
DoD, in collaboration with VA, to conduct a study, and report
the results of such study to Congress, on the size and number
of individuals who performed service substantially similar to
the service covered by this bill and who have a military
service record that does not reflect such service.
Section 2: Report on certain claims for service-connected disability
This section would require the VA to submit a report to the
Committees on Veterans' Affairs of the Senate and the House a
report regarding covered claims, including the number of
covered claims, disaggregated by claimant gender and whether
the military service record of the claimant includes a combat
identifier, and including whether such claims were granted,
denied, unresolved, or appealed. This section would define
covered claims as a claim for service-connected disability
based on post-traumatic stress disorder or traumatic brain
injury that was submitted to VA on or after January 1, 1990.
Section 3. Modification of certain housing loan fees
This section would extend current rates for VA home loan
funding fees as established in section 3729 of title 38, U.S.C.
from November 15, 2031 , to December 3, 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, 2031] December 3, 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, 2031] December 3, 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, 2031] December 3, 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, 2031] December
3, 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, 2031] December 3, 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, 2031] December
3, 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, 2031] December 3, 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, 2031] December
3, 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.
* * * * * * *
[all]