[House Report 119-263]
[From the U.S. Government Publishing Office]


119th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
  1st Session   }                                         { 119-263
======================================================================
 
                   TERRITORIAL RESPONSE AND ACCESS TO
                    VETERANS' ESSENTIAL LIFECARE ACT

                                _______
                                

 September 10, 2025.--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. 3400]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3400) to amend title 38, United States Code, to 
authorize the Secretary of Veterans Affairs to assign 
physicians of the Department of Veterans Affairs to temporarily 
serve as traveling physicians in the territories and 
possessions of the United States, 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..............................     3
Hearings.........................................................     5
Committee Consideration..........................................     6
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
Statement of General Performance Goals and Objectives............     7
Earmarks and Tax and Tariff Benefits.............................     7
Committee Cost Estimate..........................................     7
Budget Authority and Congressional Budget Office Estimate........     7
Federal Mandates Statement.......................................    11
Advisory Committee Statement.....................................    11
Applicability to Legislative Branch..............................    11
Statement on Duplication of Federal Programs.....................    11
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill, as Reported............    12

    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 ``Territorial Response and Access to 
Veterans' Essential Lifecare Act'' or the ``TRAVEL Act of 2025''.

SEC. 2. DEPARTMENT OF VETERANS ASSIGNMENT OF TRAVELING PHYSICIANS TO 
                    SERVE TERRITORIES AND POSSESSIONS.

  (a) In General.--Subchapter I of chapter 74 of title 38, United 
States Code, is amended by adding at the end the following new section:

``Sec. 7415. Traveling physicians

  ``(a) In General.--(1) The Secretary may assign a physician appointed 
under section 7401 or section 7431 of this title to serve as a 
traveling physician for a period of not more than one year at a time. A 
physician assigned to serve as a traveling physician under this section 
may be assigned to provide health care to veterans residing in American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the 
Commonwealth of Puerto Rico, the Virgin Islands of the United States, 
or any other territory or possession of the United States at Department 
facilities or other approved facilities located in such territory or 
possession.
  ``(2) The Secretary may assign multiple physicians to serve as 
traveling physicians under this section and may assign each such 
physician to serve in a specific territory or possession.
  ``(b) Coordination of Care.--In providing care under this section, 
traveling physicians shall coordinate with non-Department medical 
providers to the extent practicable and necessary to ensure high 
quality and coordinated care for veterans receiving hospital care and 
medical services.
  ``(c) Pay.--In addition to pay under section 7431 of this title, the 
Secretary shall provide a relocation or retention bonus to traveling 
physicians under this section. Such relocation or retention bonus shall 
be substantially similar to a relocation or retention bonus offered 
under section 7410(a) of this title, as the Secretary considers 
appropriate.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7414 the following new item:

``7415. Traveling physicians.''.

  (c) Technical and Conforming Amendments.--Title 38, United States 
Code, is further amended as follows:
          (1) In section 7410(a)(1), by--
                  (A) by striking ``retention allowances'' and 
                inserting ``retention bonuses''; and
                  (B) by striking the second comma after ``section 
                7401(1) of this title''; and
          (2) In section 7431(e)(5)(B), by striking ``retention 
        allowances'' and inserting ``retention bonuses''.

SEC. 3. EXTENSION OF CERTAIN LIMITS ON PAYMENTS OF PENSION.

  Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``November 30, 2031'' and inserting ``December 31, 2032''.

                          Purpose and Summary

    H.R. 3400, the ``Territorial Response and Access to 
Veterans' Essential Lifecare Act,'' or the ``TRAVEL Act of 
2025,'' was introduced by Delegate Kimberlyn King-Hinds of the 
Commonwealth of the Northern Mariana Islands on May 14, 2025. 
H.R. 3400, as amended, would authorize the Secretary of the 
Department of Veterans Affairs (VA) to assign physicians to 
temporarily serve as traveling physicians in the territories 
and possessions of the United States.

                  Background and Need for Legislation


Section 1: Short title

    This section would name the act ``the Territorial Response 
and Access to Veterans' Essential Lifecare Act'' or the 
``TRAVEL Act of 2025.''

Section 2: Department of Veterans assignment of traveling physicians to 
        serve territories and possessions

    VA provides healthcare in the five U.S. territories\1\: 
Commonwealth of Northern Mariana Islands (CNMI), Guam, and 
American Samoa in the Pacific, and the Commonwealth of Puerto 
Rico and the U.S. Virgin Islands in the Atlantic. In the 
Pacific, the VA Pacific Islands Health Care System consists of 
a VA medical center (VAMC) in Honolulu, Hawaii, and three 
outpatient clinics in American Samoa, Guam, and CNMI. In the 
Atlantic, the VA Caribbean Healthcare System consists of a VAMC 
in San Juan, Puerto Rico, and 10 outpatient clinics across 
Puerto Rico and the U.S. Virgin Islands.\2\ In fiscal year 
2022, the VA Pacific Islands Health Care System coordinated 
healthcare for an estimated 7,200 enrolled veterans, and the VA 
Caribbean Healthcare System coordinated healthcare for an 
estimated 61,000 enrolled veterans.\3\
---------------------------------------------------------------------------
    \1\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364. The possessions of the U.S. 
include the U.S. Minor Outlying Islands, which ``refers to certain 
small islands that are U.S. Territories under U.S. jurisdiction in the 
Caribbean Sea and Pacific Ocean: Baker Island, Howland Island, Jarvis 
Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, 
Palmyra Atoll, and Wake Island. [. . .] they generally do not include 
population year-round.'' U.S. Census Bureau, Glossary (last visited 
August 20, 2025), https://www.census.gov/programs-surveys/geography/
about/glossary.html.
    \2\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364.
    \3\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364.
---------------------------------------------------------------------------
    The veterans in these systems expend significant resources 
to obtain their earned healthcare through VA.
    Mr. Randy Johnson, CNMI resident and veteran of the U.S. 
Marine Corps, testified before the Health Subcommittee, ``When 
veterans need more than basic care, we are often told to leave 
the island, traveling thousands of miles, paying out of pocket, 
and spending weeks away from our families.''\4\ Even basic 
healthcare options are limited. According to Mr. Johnson, 
``Veterans seeking care at home see one doctor, on Tuesdays and 
Thursdays. [. . .] Her office has one VA Registered Nurse, a 
veteran herself. But if she needs care, or takes a much-needed 
vacation, there is no one left to keep pace.''\5\
---------------------------------------------------------------------------
    \4\Legislative Hearing on: H.R. 785, The Representing Our Seniors 
at VA Act of 2025, H.R. 2068, The Veterans Patient Advocacy Act, H.R. 
2605, The Service Dogs Assisting Veterans (SAVES) Act, H.R. 3400, The 
Territorial Response and Access to Veterans' Essential Lifecare 
(TRAVEL) Act of 2025, Discussion Draft: To amend title 38, United 
States Code, to prohibit smoking on the premises of any facility of the 
Veterans Health Administration, and for other purposes, Discussion 
Draft: The VA Data Transparency and Trust Act, Discussion Draft: To 
direct the Secretary of Veterans Affairs to conduct a study to 
determine whether RNA sequencing can be used to effectively diagnose 
PTSD in veterans, Discussion Draft: The Health Professionals 
Scholarship Program Improvement Act of 2025, Discussion Draft: The 
Fisher House Availability Act of 2025, H.R. 1404, The CHAMPVA 
Children's Care Protection Act of 2025, H.R. 2148, The Veteran 
Caregiver Reeducation, Reemployment, and Retirement Act, Discussion 
Draft: The VA Mental Health Outreach and Engagement Act Before the 
Subcommittee on Health of the Committee on Veterans' Affairs, 119th 
Cong. (2025) (Statement of Randy T. Johnson).
    \5\Legislative Hearing on: H.R. 785, The Representing Our Seniors 
at VA Act of 2025, H.R. 2068, The Veterans Patient Advocacy Act, H.R. 
2605, The Service Dogs Assisting Veterans (SAVES) Act, H.R. 3400, The 
Territorial Response and Access to Veterans' Essential Lifecare 
(TRAVEL) Act of 2025, Discussion Draft: To amend title 38, United 
States Code, to prohibit smoking on the premises of any facility of the 
Veterans Health Administration, and for other purposes, Discussion 
Draft: The VA Data Transparency and Trust Act, Discussion Draft: To 
direct the Secretary of Veterans Affairs to conduct a study to 
determine whether RNA sequencing can be used to effectively diagnose 
PTSD in veterans, Discussion Draft: The Health Professionals 
Scholarship Program Improvement Act of 2025, Discussion Draft: The 
Fisher House Availability Act of 2025, H.R. 1404, The CHAMPVA 
Children's Care Protection Act of 2025, H.R. 2148, The Veteran 
Caregiver Reeducation, Reemployment, and Retirement Act, Discussion 
Draft: The VA Mental Health Outreach and Engagement Act Before the 
Subcommittee on Health of the Committee on Veterans' Affairs, 119th 
Cong. (2025) (Statement of Randy T. Johnson).
---------------------------------------------------------------------------
    A Guam veteran must travel almost 4,000 miles for care at 
the Honolulu VAMC.\6\ An American Samoan veteran must travel 
over 2,500 miles for care.\7\ A CNMI veteran must travel about 
130 miles to Guam in order to travel to Hawaii.\8\ Another 
subset of U.S. veterans, those who reside in the Freely 
Associated States (FAS) and chose to serve in the U.S. 
military, likewise have no locally available VA resources.\9\ 
Distances are shorter between the U.S. Virgin Islands and the 
San Juan VAMC in Puerto Rico, but also require a veteran to 
take a flight to obtain health care.
---------------------------------------------------------------------------
    \6\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364.
    \7\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364.
    \8\GAO, Veterans Affairs: Actions Needed to Improve Access to Care 
in the U.S. Territories and Freely Associated States (May 23, 2024), 
https://www.gao.gov/products/gao-24-106364.
    \9\The Freely Associated States (FAS) include Palau, the Federated 
States of Micronesia, and the Marshall Islands. These three nations are 
signatories with the United States on the Compact of Free Association 
(COFA), in which the United States provides for defense and social 
services for citizens of the FAS. In return, many FAS citizens choose 
to serve in the U.S. military.
---------------------------------------------------------------------------
    Even basic primary care is limited for some veterans. In 
the Pacific, for instance, there is no community-based 
outpatient clinic in CNMI, and as of September 2022, most of 
the 88 Veterans Health Administration (VHA) employees worked in 
Guam.\10\
---------------------------------------------------------------------------
    \10\GAO, Veterans Health Administration: Hiring Trends in the U.S. 
Pacific Territories (Feb. 16, 2023), https://www.gao.gov/products/gao-
23-105953.
---------------------------------------------------------------------------
    To address the access to care issue, this section would 
bring VA care to the dedicated veterans of the U.S. 
territories, where residents enlist in the U.S. military at 
high rates.\11\ This section would provide the Secretary the 
authority to assign a physician to serve as a traveling 
physician for a period of not more than one year at a time.
---------------------------------------------------------------------------
    \11\``In 2022, the top five enlistment rates per capita for the 50 
U.S. states and D.C., five U.S. territories, and FAS were, in order, 
Guam, [the Commonwealth of the Northern Mariana Islands], [the U.S. 
Virgin Islands], American Samoa, and the Republic of Palau.'' GAO, 
Veterans Affairs: Actions Needed to Improve Access to Care in the U.S. 
Territories and Freely Associated States (May 23, 2024), https://
www.gao.gov/products/gao-24-106364.
---------------------------------------------------------------------------
    The Committee believes, granting the Secretary the 
authority to assign physicians to the U.S. territories under 
this section would help to alleviate they burden on these 
veterans in accessing their earned care through VA. An assigned 
traveling physician would not necessarily provide care in each 
and every possession or territory. But such a physician would 
be able to see veterans traveling to the particular locale. For 
instance, as the CNMI is comprised of several islands, the 
Secretary could assign a physician to Saipan who would then see 
patients from Tinian or Rota or even from the FAS. Further, 
nothing in this legislation would prevent such a physician from 
traveling within the CNMI island chain to see patients.
    This section would also not dictate the type of physician 
that should be assigned. The committee expects VA to decide 
with the best clinical value in mind. In many cases, this may 
mean a primary care physician. But given that diabetes and 
heart disease are prevalent in some U.S. territories, it may be 
of benefit to assign a cardiologist or endocrinologist or other 
specialist to prevent veterans from needing to fly elsewhere 
for specialty care. For instance, the Secretary could assign a 
specialist to Guam who can treat veterans from the American 
territories and the FAS, alleviating some of the need to fly to 
Honolulu for specialty care.
    This section would also require that the physicians 
coordinate care with non-Departmental medical providers. This 
would multiply resources and enhance the exchange of 
information about healthcare needs among the veteran population 
without necessarily requiring VA to establish a separate 
physical presence in each of the territories.
    The section would also require the Secretary to provide 
retention or relocation bonuses. The Committee finds that these 
bonuses would be necessary so that physicians are willing to 
stay or travel to the territories. VHA officials have said when 
discussing some of the territories covered by this bill that 
hiring is ``very difficult,'' and ``using retention incentives 
to maintain existing staff was ideal.''\12\ A relocation bonus 
for traveling physicians would compensate the physicians for 
the not unlikely scenario of leaving home for an extended 
period of time in order to fulfill the responsibilities of the 
assignment.
---------------------------------------------------------------------------
    \12\GAO, Veterans Health Administration: Hiring Trends in the U.S. 
Pacific Territories (Feb. 16, 2023), https://www.gao.gov/products/gao-
23-105953.
---------------------------------------------------------------------------

Section 3: Extension of certain limits of payments of pension

    Under current law (38 U.S.C. Sec. 5503(d)), the amount of 
VA pension paid to a veteran having no spouse nor child, a 
veteran's surviving spouses having no child, or a veterans' 
child who is admitted to a VA or Medicaid sponsored nursing 
facility is capped at $90 a month. This section would cover the 
costs of the other sections of this bill by extending this 
pension limitation by thirteen months to December 31, 2032. 
Because they receive government sponsored care in a nursing 
home, these pension beneficiaries do not require the full 
amount of pension to cover their cost of living. The Committee 
believes this short-term extension of the current limit on 
pension payments is a reasonable way to cover the costs 
associated with the other sections of this bill.

                                Hearings

    On June 12, 2025, the Subcommittee on Health held a 
legislative hearing on H.R. 3400 and other bills pending before 
the subcommittee. The following witnesses testified:
          The Honorable Gregory F. Murphy, U.S. House of 
        Representatives, 3rd Congressional District, North 
        Carolina; The Honorable Morgan Luttrell, U.S. House of 
        Representatives, 8th Congressional District, Texas; The 
        Honorable Jennifer A. Kiggans, U.S. House of 
        Representatives, 2nd Congressional District, Virginia; 
        The Honorable Abraham J. Hamadeh, U.S. House of 
        Representatives, 8th Congressional District, Arizona; 
        The Honorable Kimberlyn King-Hinds, U.S. House of 
        Representatives, District At Large, Northern Mariana 
        Islands; The Honorable John J. McGuire, U.S. House of 
        Representatives, 5th Congressional District, Virginia; 
        The Honorable Joseph D. Morelle, U.S. House of 
        Representatives, 25th Congressional District, New York; 
        The Honorable Nikki Budzinski, U.S. House of 
        Representatives, 13th Congressional District, Illinois; 
        Dr. Antoinette V. Shappell, Deputy Assistant Under 
        Secretary for Health for Patient Care Services, 
        Veterans Health Administration, U.S. Department of 
        Veterans Affairs; Dr. Ilse Wiechers, Deputy Executive 
        Director, Office of Mental Health, Veterans Health 
        Administration, U.S. Department of Veterans Affairs; 
        Randy Johnson, Constituent, District At Large, Northern 
        Mariana Islands; Cole T. Lyle, Director, Veterans 
        Affairs & Rehabilitation Division, The American Legion; 
        David Coker, President, Fisher House Foundation; John 
        Schmitt, Chief Executive Officer, iXpressGenes, Inc.; 
        Caira Benson, Caregiver Fellow, Elizabeth Dole 
        Foundation.
    The following individuals and organizations submitted 
statements for the record:
          K9s for Warriors, Quality of Life Foundation, 
        National Association of State Veterans Homes, Military 
        Officers Association of America, National Association 
        of Veterans' Research and Education Foundations, 
        iXpressGenes, Inc., Paralyzed Veterans of America, The 
        Honorable Joseph D. Morelle, Concerned Veterans for 
        America, USAA, Student Veterans of America, American 
        Academy of Physician Associates, Veterans of Foreign 
        Wars of the United States.

                       Subcommittee Consideration

    On July 23, 2025, the Subcommittee on Health was discharged 
from further consideration of this legislation.

                        Committee Consideration

    On July 23, 2025, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 3400, 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 
        Delegate Kimberlyn King-Hinds of the Commonwealth of 
        the Northern Mariana Islands would clarify the number 
        of traveling physicians the Secretary may assign. The 
        amendment in the nature of a substitute would also 
        change reference to pay authorities from Title 5 to 
        Title 38 for purposes of the relocation or retention 
        bonus the Secretary would provide. The amendment in the 
        nature of substitute, as amended, was agreed to by 
        voice vote.
          An amendment to the amendment in the nature of a 
        substitute offered Chairman Mike Bost of Illinois would 
        offset the anticipated $70 million cost of the 
        legislation using the pension program under 38 U.S.C. 
        Sec. 5503. The amendment to the amendment in the nature 
        of a substitute was agreed to by voice vote.
    A motion by Representative Mark Takano of California to 
report H.R. 3400, 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. 3400, 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. 3400, as amended, are to increase 
healthcare access for veterans living in the U.S. territories 
and possessions or living closer to the U.S. territories than 
the nearest VA facility (e.g., those residing in the FAS) by 
authorizing the Secretary to assign travel physicians to those 
areas.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3400, 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. 
3400, as amended, prepared by the Director of the Congressional 
Budget.

           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. 3400, as amended, provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974:




    The bill would:
           Authorize the Department of Veterans Affairs 
        (VA) to assign traveling physicians to U.S. territories
           Require VA to provide relocation or 
        retention bonuses to department physicians assigned to 
        U.S. territories
           Extend the reduction of pensions that VA 
        pays to veterans and survivors residing in Medicaid 
        nursing homes
    Estimated budgetary effects would mainly stem from:
           Providing relocation and retention bonuses 
        to department physicians assigned to U.S. territories
           Reducing pension payments
    Bill summary: H.R. 3400 would authorize the Department of 
Veterans Affairs (VA) to assign physicians to serve as 
traveling doctors to veterans in U.S. territories. The bill 
would require VA to provide relocation or retention bonuses to 
those traveling physicians. Finally, the bill would extend a 
temporary limitation on certain pension payments through 
December 31, 2032.
    Estimated Federal cost: The estimated budgetary effects of 
H.R. 3400 are shown in Table 1. The costs of the legislation 
fall within budget functions 550 (health) and 700 (veterans 
benefits and services).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3400
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      By fiscal year, millions of dollars--
                                                        ------------------------------------------------------------------------------------------------
                                                                                                                                         2025-    2025-
                                                          2025   2026   2027   2028   2029   2030   2031    2032    2033   2034   2035    2030     2035
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Estimated BudgetPAuthority.............................      0      *      *      1      1      1     -39     -11      1      1      1        3      -44
Estimated Outlays......................................      0      *      *      1      1      1     -39     -11      1      1      1        3      -44
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization................................      0      2      2      2      2      2       2       2      2      2      2       10       20
Estimated Outlays......................................      0      2      2      2      2      2       2       2      2      2      2       10       20
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3400 will be enacted near the beginning of fiscal year 2026 and 
that outlays will follow historical spending patterns for 
affected programs.
    Provisions that affect spending subject to appropriation 
and direct spending: Section 2 of H.R. 3400 would allow VA to 
assign department physicians to serve as traveling doctors to 
veterans in U.S. territories. Using information from studies on 
the number of patients a physician can serve and the number of 
veterans who live in U.S. territories, CBO estimates that about 
50 doctors would be assigned to serve as traveling physicians.
    Under the bill, VA would be required to provide relocation 
or retention bonuses to physicians assigned under the program. 
Under current law, VA is authorized to provide relocation and 
retention bonuses of up to 25 percent of a physician's annual 
salary. CBO estimates that the cost of providing bonuses of 
that magnitude would average roughly $56,000 per physician per 
year. In total, CBO estimates that implementing section 2 would 
cost $28 million over the 2025-2035 period.
    CBO expects that some of the costs of implementing the bill 
would be paid from the Toxic Exposures Fund (TEF) established 
by Public Law 117-168, the Honoring our PACT Act. The TEF is a 
mandatory appropriation that VA uses to pay for health care, 
disability claims processing, medical research, and IT 
modernization that benefit veterans who were exposed to 
environmental hazards.
    Additional spending from the TEF would occur if legislation 
increases the costs of similar activities that benefit veterans 
with such exposure. Thus, in addition to increasing spending 
subject to appropriation, enacting section 2 would increase 
amounts paid from the TEF, which are classified as direct 
spending. CBO projects that the proportion of costs paid by the 
TEF will grow over time based on the amount of formerly 
discretionary appropriations that CBO expects will be provided 
through the mandatory appropriation as specified in the 
Honoring our PACT Act.\1\
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    \1\For additional information about estimated spending from the 
TEF, see Congressional Budget Office, ``Toxic Exposures Fund--January 
2025 Baseline'' (January 2025), https://tinyurl.com/465ytckb.
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    CBO estimates that over the 2025-2035 period, implementing 
section 2 would increase spending subject to appropriation by 
$20 million and direct spending by $8 million.
    Direct spending: In addition to expanding benefits that 
would partly be covered by the TEF, enacting H.R.3400 would 
affect direct spending by extending a statutory limitation on 
VA pension payments. In total, enacting the bill would decrease 
net direct spending by $44 million over the 2025-2035 period 
(see Table 2).
    Under current law, VA reduces pension payments to veterans 
and survivors who reside in Medicaid nursing homes to $90 per 
month. That required reduction expires November 30, 2031. 
Section 3 of H.R. 3400 would extend that reduction for 13 
months, through December 31, 2032. CBO estimates that extending 
that requirement would reduce VA benefits by $10 million per 
month. As a result of that reduction in beneficiaries' income, 
Medicaid would pay more of the cost of their care, increasing 
spending for that program by $6 million per month. Thus, 
enacting section 3 would reduce net direct spending by $52 
million over the 2025-2035 period.

                                             TABLE 2.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 3400
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                                                                                      By fiscal year, millions of dollars--
                                                        ------------------------------------------------------------------------------------------------
                                                                                                                                         2025-    2025-
                                                          2025   2026   2027   2028   2029   2030   2031    2032    2033   2034   2035    2030     2035
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Traveling Physicians:
    Estimated Budget Authority.........................      0      *      *      1      1      1       1       1      1      1      1        3        8
    Estimated Outlays..................................      0      *      *      1      1      1       1       1      1      1      1        3        8
Pensions and Medicaid:
    Estimated Budget Authority.........................      0      0      0      0      0      0     -40     -12      0      0      0        0      -52
    Estimated Outlays..................................      0      0      0      0      0      0     -40     -12      0      0      0        0      -52
Total Changes:
    Estimated Budget Authority.........................      0      *      *      1      1      1     -39     -11      1      1      1        3      -44
    Estimated Outlays..................................      0      *      *      1      1      1     -39     -11      1      1      1        3      -44
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Spending subject to appropriation: The discussion above in 
``Provisions that Affect Spending Subject to Appropriation and 
Direct Spending'' describes the costs of providing relocation 
or retention bonuses to department physicians assigned to U.S. 
territories. Providing those bonuses would increase spending 
subject to appropriation by $20 million over the 2025-2035 
period, 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. 3400 would not increase net direct 
spending by more than $2.5 billion in any of the four 
consecutive 10-year periods beginning in 2036.
    CBO estimates that enacting H.R. 3400 would not increase 
on-budget deficits by more than $5 billion in any of the four 
consecutive 10-year periods beginning in 2036.
    Mandates: The bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    Estimate prepared by: Federal costs: Noah Callahan (for 
veterans' health care), Logan Smith (for pensions and 
Medicaid); Mandates: Brandon Lever.
    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

    With respect to the requirements of 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), the Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether the provisions of the reported bill include unfunded 
mandates.

                      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. 
3400, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3400, 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. 3400, 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 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 title of the bill as the 
``Territorial Response and Access to Veterans' Essential 
Lifecare Act,'' or the ``TRAVEL Act of 2025.''

Section 2: Department of Veterans assignment of traveling physicians to 
        serve territories and possessions

    This section would create a new section at 38 U.S.C. 
Sec. 7415, ``Traveling physicians.'' It would give the 
Secretary additional appointment authority under sections 7401 
and 7431 to assign a traveling physician or multiple traveling 
physicians--for a period of not more than one year at a time--
to provide health care to veterans in the U.S. territories and 
possessions of American Samoa, Guam, the Commonwealth of the 
Northern Mariana Islands, the Commonwealth of Puerto Rico, the 
U.S. Virgin Islands, or any other U.S. territory or possession.
    The traveling physician would provide health care at 
Department facilities or other approved facilities located in 
the given territory or possession. In providing care, the 
traveling physician would coordinate with non-Department 
medical providers to ensure high quality and coordinated care 
for veterans receiving hospital care and medical services.
    Under this section, the Secretary would provide a 
relocation or retention bonus to the traveling physician. The 
bonus would have to be substantially similar to the relocation 
or retention bonus offered under section 7410(a). The Secretary 
would have the authority to decide the exact parameters of the 
relocation or retention bonus beyond the substantial similarity 
to section 7410(a).
    The section would make clerical, technical, and conforming 
amendments. Among other amendments, the section would use the 
phrase ``retention bonuses'' instead of ``retention 
allowances'' in sections 7410(a)(1) and 7431(e)(5)(B).

Section 3: Extension of certain limits of payments of pension

    This section would extend the termination date of 
limitations on VA pension payments to institutionalized 
beneficiaries by amending 38 U.S.C. Sec. 5503(d)(7), changing 
the expiration from November 30, 2031, to December 31, 2032.

         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 IV--GENERAL ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS

           *       *       *       *       *       *       *



Sec. 5503. Hospitalized veterans and estates of incompetent 
                    institutionalized veterans

    (a)(1)(A) Where any veteran having neither spouse nor child 
is being furnished domiciliary care by the Department, no 
pension in excess of $90 per month shall be paid to or for the 
veteran for any period after the end of the third full calendar 
month following the month of admission for such care.
    (B) Except as provided in subparagraph (D) of this 
paragraph, where any veteran having neither spouse nor child is 
being furnished nursing home care by the Department, no pension 
in excess of $90 per month shall be paid to or for the veteran 
for any period after the end of the third full calendar month 
following the month of admission for such care. Any amount in 
excess of $90 per month to which the veteran would be entitled 
but for the application of the preceding sentence shall be 
deposited in a revolving fund at the Department medical 
facility which furnished the veteran nursing care, and such 
amount shall be available for obligation without fiscal year 
limitation to help defray operating expenses of that facility.
    (C) No pension in excess of $90 per month shall be paid to 
or for a veteran having neither spouse nor child for any period 
after the month in which such veteran is readmitted for care 
described in subparagraph (A) or (B) of this paragraph and 
furnished by the Department if such veteran is readmitted 
within six months of a period of care in connection with which 
pension was reduced pursuant to subparagraph (A) or (B) of this 
paragraph.
    (D) In the case of a veteran being furnished nursing home 
care by the Department and with respect to whom subparagraph 
(B) of this paragraph requires a reduction in pension, such 
reduction shall not be made for a period of up to three 
additional calendar months after the last day of the third 
month referred to in such subparagraph if the Secretary 
determines that the primary purpose for the furnishing of such 
care during such additional period is for the Department to 
provide such veteran with a prescribed program of 
rehabilitation services, under chapter 17 of this title, 
designed to restore such veteran's ability to function within 
such veteran's family and community. If the Secretary 
determines that it is necessary, after such period, for the 
veteran to continue such program of rehabilitation services in 
order to achieve the purposes of such program and that the 
primary purpose of furnishing nursing home care to the veteran 
continues to be the provision of such program to the veteran, 
the reduction in pension required by subparagraph (B) of this 
paragraph shall not be made for the number of calendar months 
that the Secretary determines is necessary for the veteran to 
achieve the purposes of such program.
    (2) The provisions of paragraph (1) shall also apply to a 
veteran being furnished such care who has a spouse but whose 
pension is payable under section 1521(b) of this title. In such 
a case, the Secretary may apportion and pay to the spouse, upon 
an affirmative showing of hardship, all or any part of the 
amounts in excess of the amount payable to the veteran while 
being furnished such care which would be payable to the veteran 
if pension were payable under section 1521(c) of this title.
    (b) Notwithstanding any other provision of this section or 
any other provision of law, no reduction shall be made in the 
pension of any veteran for any part of the period during which 
the veteran is furnished hospital treatment, or institutional 
or domiciliary care, for Hansen's disease, by the United States 
or any political subdivision thereof.
    (c) Where any veteran in receipt of an aid and attendance 
allowance described in subsection (r) or (t) of section 1114 of 
this title is hospitalized at Government expense, such 
allowance shall be discontinued from the first day of the 
second calendar month which begins after the date of the 
veteran's admission for such hospitalization for so long as 
such hospitalization continues. Any discontinuance required by 
administrative regulation, during hospitalization of a veteran 
by the Department, of increased pension based on need of 
regular aid and attendance or additional compensation based on 
need of regular aid and attendance as described in subsection 
(l) or (m) of section 1114 of this title, shall not be 
effective earlier than the first day of the second calendar 
month which begins after the date of the veteran's admission 
for hospitalization. In case a veteran affected by this 
subsection leaves a hospital against medical advice and is 
thereafter admitted to hospitalization within six months from 
the date of such departure, such allowance, increased pension, 
or additional compensation, as the case may be, shall be 
discontinued from the date of such readmission for so long as 
such hospitalization continues.
    (d)(1) For the purposes of this subsection--
            (A) the term ``Medicaid plan'' means a State plan 
        for medical assistance referred to in section 1902(a) 
        of the Social Security Act (42 U.S.C. 1396a(a)); and
            (B) the term ``nursing facility'' means a nursing 
        facility described in section 1919 of such Act (42 
        U.S.C. 1396r), other than a facility that is a State 
        home with respect to which the Secretary makes per diem 
        payments for nursing home care pursuant to section 
        1741(a) of this title.
    (2) If a veteran having neither spouse nor child is covered 
by a Medicaid plan for services furnished such veteran by a 
nursing facility, no pension in excess of $90 per month shall 
be paid to or for the veteran for any period after the month of 
admission to such nursing facility.
    (3) Notwithstanding any provision of title XIX of the 
Social Security Act, the amount of the payment paid a nursing 
facility pursuant to a Medicaid plan for services furnished a 
veteran may not be reduced by any amount of pension permitted 
to be paid such veteran under paragraph (2) of this subsection.
    (4) A veteran is not liable to the United States for any 
payment of pension in excess of the amount permitted under this 
subsection that is paid to or for the veteran by reason of the 
inability or failure of the Secretary to reduce the veteran's 
pension under this subsection unless such inability or failure 
is the result of a willful concealment by the veteran of 
information necessary to make a reduction in pension under this 
subsection.
    (5)(A) The provisions of this subsection shall apply with 
respect to a surviving spouse having no child in the same 
manner as they apply to a veteran having neither spouse nor 
child.
    (B) The provisions of this subsection shall apply with 
respect to a child entitled to pension under section 1542 of 
this title in the same manner as they apply to a veteran having 
neither spouse nor child.
    (6) The costs of administering this subsection shall be 
paid for from amounts available to the Department of Veterans 
Affairs for the payment of compensation and pension.
    (7) This subsection expires on [November 30, 2031] December 
31, 2032.

           *       *       *       *       *       *       *


PART V--BOARDS, ADMINISTRATIONS, AND SERVICES

           *       *       *       *       *       *       *


         CHAPTER 74--VETERANS HEALTH ADMINISTRATION--PERSONNEL


                       SUBCHAPTER I--APPOINTMENTS

Sec.
     * * * * * * *
7415. Traveling physicians.
     * * * * * * *

SUBCHAPTER I--APPOINTMENTS

           *       *       *       *       *       *       *


Sec. 7410. Additional pay authorities

    (a) In General.--(1) The Secretary may authorize the Under 
Secretary for Health to pay advance payments, recruitment or 
relocation bonuses, and [retention allowances] retention 
bonuses to personnel appointed under section 7306 of this title 
or section 7401(4) of this title, or personnel described in 
section 7401(1) of this title,[,] or interview expenses to 
candidates for appointment as such personnel, in a manner 
consistent with the authority provided under sections 5524a, 
5706b, 5753, and 5754 of title 5.
    (2) Payments under paragraph (1) shall not be considered in 
calculating the limitation under section 7431(e)(4) of this 
title.
    (b) Special Incentive Pay for Department Pharmacist 
Executives.--(1) In order to recruit and retain highly 
qualified Department pharmacist executives, the Secretary may 
authorize the Under Secretary for Health to pay special 
incentive pay of not more than $40,000 per year to an 
individual of the Veterans Health Administration who is a 
pharmacist executive.
    (2) In determining whether and how much special pay to 
provide to such individual, the Under Secretary shall consider 
the following:
            (A) The grade and step of the position of the 
        individual.
            (B) The scope and complexity of the position of the 
        individual.
            (C) The personal qualifications of the individual.
            (D) The characteristics of the labor market 
        concerned.
            (E) Such other factors as the Secretary considers 
        appropriate.
    (3) Special incentive pay under paragraph (1) for an 
individual is in addition to all other pay (including basic 
pay) and allowances to which the individual is entitled.
    (4) Except as provided in paragraph (5), special incentive 
pay under paragraph (1) for an individual shall be considered 
basic pay for all purposes, including retirement benefits under 
chapters 83 and 84 of title 5, and other benefits.
    (5) Special incentive pay under paragraph (1) for an 
individual shall not be considered basic pay for purposes of 
adverse actions under subchapter V of this chapter.
    (6) Special incentive pay under paragraph (1) may not be 
awarded to an individual in an amount that would result in an 
aggregate amount of pay (including bonuses and awards) received 
by such individual in a year under this title that is greater 
than the annual pay of the President.

           *       *       *       *       *       *       *


Sec. 7415. Traveling physicians

    (a) In General.--(1) The Secretary may assign a physician 
appointed under section 7401 or section 7431 of this title to 
serve as a traveling physician for a period of not more than 
one year at a time. A physician assigned to serve as a 
traveling physician under this section may be assigned to 
provide health care to veterans residing in American Samoa, 
Guam, the Commonwealth of the Northern Mariana Islands, the 
Commonwealth of Puerto Rico, the Virgin Islands of the United 
States, or any other territory or possession of the United 
States at Department facilities or other approved facilities 
located in such territory or possession.
    (2) The Secretary may assign multiple physicians to serve 
as traveling physicians under this section and may assign each 
such physician to serve in a specific territory or possession.
    (b) Coordination of Care.--In providing care under this 
section, traveling physicians shall coordinate with non-
Department medical providers to the extent practicable and 
necessary to ensure high quality and coordinated care for 
veterans receiving hospital care and medical services.
    (c) Pay.--In addition to pay under section 7431 of this 
title, the Secretary shall provide a relocation or retention 
bonus to traveling physicians under this section. Such 
relocation or retention bonus shall be substantially similar to 
a relocation or retention bonus offered under section 7410(a) 
of this title, as the Secretary considers appropriate.

           *       *       *       *       *       *       *


  SUBCHAPTER III--PAY FOR PHYSICIANS, PODIATRISTS, OPTOMETRISTS, AND 
                                DENTISTS

Sec. 7431. Pay

    (a) Elements of Pay.--Pay of physicians, podiatrists, 
optometrists, and dentists in the Veterans Health 
Administration shall consist of three elements as follows:
            (1) Base pay as provided for under subsection (b).
            (2) Market pay as provided for under subsection 
        (c).
            (3) Performance pay as provided under subsection 
        (d).
    (b) Base Pay.--One element of pay for physicians, 
podiatrists, optometrists, and dentists shall be base pay. Base 
pay shall meet the following requirements:
            (1) Each physician, podiatrist, optometrist and 
        dentist is entitled to base pay determined under the 
        Physician, Podiatrist, and Dentist Base and Longevity 
        Pay Schedule.
            (2) The Physician, Podiatrist, and Dentist Base and 
        Longevity Pay Schedule is composed of 15 rates of base 
        pay designated, from the lowest rate of pay to the 
        highest rate of pay, as base pay steps 1 through 15.
            (3) The rate of base pay payable to a physician, 
        podiatrist, optometrist or dentist is based on the 
        total number of the years of the service of the 
        physician, podiatrist, optometrist or dentist in the 
        Veterans Health Administration as follows:
            (4) At the same time as rates of basic pay are 
        increased for a year under section 5303 of title 5, the 
        Secretary shall increase the amount of base pay payable 
        under this subsection for that year by a percentage 
        equal to the percentage by which rates of basic pay are 
        increased under such section for that year.
            (5) The non-foreign cost of living adjustment 
        allowance authorized under section 5941 of title 5 for 
        physicians, podiatrists, optometrists, and dentists 
        whose pay is set under this section shall be determined 
        as a percentage of base pay only.
    (c) Market Pay.--One element of pay for physicians, 
podiatrists, optometrists, and dentists shall be market pay. 
Market pay shall meet the following requirements:
            (1) Each physician, podiatrist, optometrist and 
        dentist is eligible for market pay.
            (2) Market pay shall consist of pay intended to 
        reflect the recruitment and retention needs for the 
        specialty or assignment (as defined by the Secretary) 
        of a particular physician, podiatrist, optometrist or 
        dentist in a facility of the Department of Veterans 
        Affairs.
            (3) The annual amount of the market pay payable to 
        a physician, podiatrist, optometrist or dentist shall 
        be determined by the Secretary on a case-by-case basis.
            (4) The determination of the amount of market pay 
        of a physician, podiatrist, optometrist or dentist 
        shall take into account--
                    (A) the level of experience of the 
                physician, podiatrist, optometrist or dentist 
                in the specialty or assignment of the 
                physician, podiatrist, optometrist or dentist;
                    (B) the need for the specialty or 
                assignment of the physician, podiatrist, 
                optometrist or dentist at the medical facility 
                of the Department concerned;
                    (C) the health care labor market for the 
                specialty or assignment of the physician, 
                podiatrist, optometrist or dentist, which may 
                cover any geographic area the Secretary 
                considers appropriate for the specialty or 
                assignment;
                    (D) the board certifications, if any, of 
                the physician, podiatrist, optometrist or 
                dentist;
                    (E) the prior experience, if any, of the 
                physician, podiatrist, optometrist or dentist 
                as an employee of the Veterans Health 
                Administration; and
                    (F) such other considerations as the 
                Secretary considers appropriate.
            (5) The amount of market pay of a physician, 
        podiatrist, optometrist or dentist shall be evaluated 
        by the Secretary not less often than once every 24 
        months. The amount of market pay may be adjusted as the 
        result of an evaluation under this paragraph. A 
        physician, podiatrist, optometrist or dentist whose 
        market pay is evaluated under this paragraph shall 
        receive written notice of the results of such 
        evaluation in accordance with procedures prescribed 
        under section 7433 of this title. Such a notice shall 
        include a statement of whether the market pay will 
        increase, decrease, or remain unchanged following such 
        evaluation.
            (6) No adjustment of the amount of market pay of a 
        physician, podiatrist, optometrist or dentist under 
        paragraph (5) may result in a reduction of the amount 
        of market pay of the physician, podiatrist, optometrist 
        or dentist while in the same position or assignment at 
        the medical facility of the Department concerned, 
        unless there is a change in board certification or 
        reduction of privileges.
            (7) The Secretary shall ensure that each physician, 
        podiatrist, optometrist, and dentist in the Veterans 
        Health Administration is--
                    (A) advised, on an annual basis, of the 
                criteria described in subparagraph (F) of 
                paragraph (4);
                    (B) evaluated in accordance with such 
                criteria; and
                    (C) compensated in accordance with--
                            (i) applicable assignment and pay 
                        levels, subject to relevant pay 
                        limitations; and
                            (ii) the extent to which such 
                        criteria are met.
            (8) Not later than 120 days after the end of each 
        fiscal year, the Secretary shall submit to the 
        Committees on Veterans' Affairs of the Senate and the 
        House of Representatives a report that includes the 
        following:
                    (A) A list of each facility and specialty 
                that conducted an evaluation of pay during the 
                period covered by the report.
                    (B) For each evaluation described in 
                subparagraph (A)--
                            (i) a list of occupations for which 
                        pay was evaluated, disaggregated by 
                        medical specialty, number of authorized 
                        full-time employees, and onsite full-
                        time employees as of the date of the 
                        evaluation;
                            (ii) the date such evaluation was 
                        completed;
                            (iii) whether a market pay 
                        adjustment was made following the 
                        evaluation per each occupation and 
                        specialty evaluated;
                            (iv) whether applicable employees 
                        were notified of such evaluation;
                            (v) whether local labor partners 
                        were notified of such evaluation; and
                            (vi) in the case of an evaluation 
                        that resulted in an adjustment of pay--
                                    (I) the date such 
                                adjustment--
                                            (aa) was 
                                        implemented; and
                                            (bb) became 
                                        effective; and
                                    (II) the percentage of 
                                employees of each occupation 
                                and specialty for which pay was 
                                adjusted pursuant to such 
                                evaluation.
                    (C) A list of facilities of the Department 
                that have not conducted an evaluation of market 
                pay, pursuant to paragraph (5), during the 18-
                month-period that precedes the date of the 
                submission of such report.
    (d) Performance Pay.--(1) One element of pay for 
physicians, podiatrists, optometrists, and dentists shall be 
performance pay.
    (2) Performance pay shall be paid to a physician, 
podiatrist, optometrist or dentist on the basis of the 
physician's or dentist's achievement of specific goals and 
performance objectives prescribed by the Secretary.
    (3) The Secretary shall ensure that each physician, 
podiatrist, optometrist and dentist of the Department is 
advised of the specific goals or objectives that are to be 
measured by the Secretary in determining the eligibility of 
that physician, podiatrist, optometrist or dentist for 
performance pay.
    (4) The amount of the performance pay payable to a 
physician, podiatrist, optometrist or dentist may vary annually 
on the basis of individual achievement or attainment of the 
goals or objectives applicable to the physician, podiatrist, 
optometrist or dentist under paragraph (2).
    (5) The amount of performance pay payable to a physician, 
podiatrist, optometrist or dentist in a fiscal year shall be 
determined in accordance with regulations prescribed by the 
Secretary, but may not exceed the lower of--
            (A) $15,000; or
            (B) the amount equal to 7.5 percent of the sum of 
        the base pay and the market pay payable to such 
        physician, podiatrist, optometrist or dentist in that 
        fiscal year.
    (6) A failure to meet goals or objectives applicable to a 
physician, podiatrist, optometrist or dentist under paragraph 
(2) may not be the sole basis for an adverse personnel action 
against that physician, podiatrist, optometrist or dentist.
    (e) Requirements and Limitations on Total Pay.--(1)(A) Not 
less often than once every two years, the Secretary shall 
prescribe for Department-wide applicability the minimum and 
maximum amounts of annual pay that may be paid under this 
section to physicians and the minimum and maximum amounts of 
annual pay that may be paid under this section to podiatrists 
and dentists.
    (B) The Secretary may prescribe for Department-wide 
applicability under this paragraph separate minimum and maximum 
amounts of pay for a specialty or assignment. If the Secretary 
prescribes separate minimum and maximum amounts for a specialty 
or assignment, the Secretary may establish up to four tiers of 
minimum and maximum amounts for such specialty or assignment 
and prescribe for each tier a minimum amount and a maximum 
amount that the Secretary determines appropriate for the 
professional responsibilities, professional achievements, and 
administrative duties of the physicians, podiatrists, 
optometrists, or dentists (as the case may be) whose pay is set 
within that tier.
    (C) Amounts prescribed under this paragraph shall be 
published in the Federal Register, and shall not take effect 
until at least 60 days after the date of publication.
    (2) Except as provided in paragraph (3) and subject to 
paragraph (4), the sum of the total amount of the annual rate 
of base pay payable to a physician, podiatrist, optometrist or 
dentist under subsection (b) and the market pay determined for 
the physician, podiatrist, optometrist or dentist under 
subsection (c) may not be less than the minimum amount, nor 
more than the maximum amount, applicable to specialty or 
assignment of the physician, podiatrist, optometrist or dentist 
under paragraph (1).
    (3) The sum of the total amount of the annual rate of base 
pay payable to a physician, podiatrist, optometrist or dentist 
under subsection (b) and the market pay determined for the 
physician, podiatrist, optometrist or dentist under subsection 
(c) may exceed the maximum amount applicable to the specialty 
or assignment of the physician, podiatrist, optometrist or 
dentist under paragraph (1) as a result of an adjustment under 
paragraph (3) or (4) of subsection (b).
    (4) Except as provided in sections 7404A(c) and 7410(a)(2) 
of this title, in no case may the total amount of compensation 
paid to a physician, podiatrist, optometrist or dentist under 
this title in any year exceed the amount of annual compensation 
(excluding expenses) specified in section 102 of title 3.
    (5) Notwithstanding any compensation or pay limitations 
under this title or title 5, the Secretary may authorize the 
Under Secretary for Health to pay physicians, podiatrists, 
optometrists, and dentists--
            (A) awards authorized under this title;
            (B) advance payments, recruitment or relocation 
        bonuses, and [retention allowances] retention bonuses 
        authorized under section 7410(a) of this title or as 
        otherwise provided by law;
            (C) incentives or bonuses under section 706 of this 
        title or as otherwise provided by law; and
            (D) earnings from fee-basis appointments under 
        section 7405(a)(2) of this title.
    (6)(A) The Secretary may waive any pay limitation described 
in this section (including tier limitations) that the Secretary 
determines necessary for the recruitment or retention of 
critical health care personnel whom the Secretary determines 
would provide direct patient care.
    (B) Priority for such waivers shall be given for positions, 
locations, and care provided through agreements that are costly 
to the Department.
    (C) The Chief Human Capital Officer of the Department, the 
Chief Financial Officer of the Department, and the Office of 
the General Counsel of the Department shall review any waiver 
issued under subparagraph (A).
    (D) During the period the authority under subparagraph (A) 
is effective, the Secretary may not issue more than 300 waivers 
under such subparagraph.
    (E) The Secretary may prescribe requirements, limitations, 
and other considerations for waivers under such subparagraph.
    (F) Not later than 180 days after the date of the enactment 
of the Senator Elizabeth Dole 21st Century Veterans Healthcare 
and Benefits Improvement Act, and annually thereafter, the 
Secretary shall submit to the Committees on Veterans' Affairs 
of the Senate and the House of Representatives a report that 
includes--
            (i) any updates to the requirements, limitations, 
        and considerations prescribed under subparagraph (B) 
        during the period covered by the report;
            (ii) a description of the findings of each review, 
        if any, conducted pursuant to subparagraph (C);
            (iii) a description of each waiver under 
        subparagraph (A) in effect as of the date of the 
        submission of the report, including the--
                    (I) duty location, position, specialty, 
                market and performance considerations for the 
                waiver; and
                    (II) impact, if any, of the waiver on care 
                furnished by the Department pursuant to an 
                agreement regarding the geographic area; and
            (iv) a list of any separation actions during the 
        period covered by the report with respect to a position 
        for which a waiver under subparagraph (A) is in effect.
    (G) The authority of the Secretary under subparagraph (A) 
shall terminate on the last day of the third full fiscal year 
following the date of the enactment of the Senator Elizabeth 
Dole 21st Century Veterans Healthcare and Benefits Improvement 
Act.
    (f) Treatment of Pay.--Pay under subsections (b) and (c) of 
this section shall be considered pay for all purposes, 
including retirement benefits under chapters 83 and 84 of title 
5 and other benefits.
    (g) Ancillary Effects of Decreases in Pay.--(1) A decrease 
in pay of a physician, podiatrist, optometrist or dentist 
resulting from an adjustment in the amount of market pay of the 
physician, podiatrist, optometrist or dentist under subsection 
(c) shall not be treated as an adverse action.
    (2) If the pay of a physician, podiatrist, optometrist or 
dentist is reduced under this subchapter as a result of an 
involuntary reassignment in connection with a disciplinary 
action taken against the physician, podiatrist, optometrist or 
dentist, the involuntary reassignment shall be subject to 
appeal under subchapter V of this chapter.
    (h) Delegation of Responsibilities.--The Secretary may 
delegate to an appropriate officer or employee of the 
Department any responsibility of the Secretary under subsection 
(c), (d), or (e) except for the responsibilities of the 
Secretary under subsection (e)(1).

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