For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33427 ------------------------------------------------------------------------------ Order Code RL33427 Military Construction, Military Quality of Life and Veterans Affairs: FY2007 Appropriations Updated March 6, 2007 Daniel H. Else Specialist in National Defense Foreign Affairs, Defense, and Trade Division Christine Scott Specialist in Tax Economics Domestic Social Policy Division Sidath Viranga Panangala Analyst in Social Legislation Domestic Social Policy Division The annual consideration of appropriations bills (regular, continuing, and supplemental) by Congress is part of a complex set of budget processes that also encompasses the consideration of budget resolutions, revenue and debt-limit legislation, other spending measures, and reconciliation bills. In addition, the operation of programs and the spending of appropriated funds are subject to constraints established in authorizing statutes. Congressional action on the budget for a fiscal year usually begins following the submission of the President's budget at the beginning of each annual session of Congress. Congressional practices governing the consideration of appropriations and other budgetary measures are rooted in the Constitution, the standing rules of the House and Senate, and statutes, such as the Congressional Budget and Impoundment Control Act of 1974. This report is a guide to one of the regular appropriations bills that Congress considers each year. It is designed to supplement the information provided by the House Military Quality of Life and Veterans Affairs and Senate Military Construction and Veterans Affairs Appropriations Subcommittees. It summarizes the status of the bill, its scope, major issues, funding levels, and related congressional activity, and is updated as events warrant. The report lists the key CRS staff relevant to the issues covered and related CRS products. NOTE: A Web version of this document with active links is available to congressional staff at [http://beta.crs.gov/cli/cli.aspx?PRDS_CLI_ITEM_ID=2349]. Military Construction, Military Quality of Life and Veterans Affairs: FY2007 Appropriations Summary The structure of the Committees on Appropriations were changed at the beginning of the 109th Congress, altering jurisdictions over the appropriations covered in this report, including military construction, military housing allowances, military installation maintenance and operation, the Department of Veterans Affairs, and other veteran-related agencies, rested in the House Committee on Appropriations with the new Subcommittee on Military Quality of Life and Veterans Affairs. In the Senate Committee on Appropriations, jurisdiction for military construction, the Department of Veterans Affairs, and other veteran-related agencies were vested in the Subcommittee on Military Construction and Veterans Affairs, while military housing allowances and military installation maintenance and operation are the responsibility of the Subcommittee on Defense. At the opening of the 110th Congress, the House subcommittee structure was again adjusted, returning some non-construction defense activities to the Subcommittee on Defense. Authorization jurisdictions lie with the two Committees on the Armed Services and Committees on Veterans Affairs. Key issues in congressional action to date include: ! Military Construction: The changing structure of the Army, the redeployment of troops from overseas garrisons to domestic bases, and implementation of the current BRAC round have drawn committee attention during the appropriation process. To fund the activities included in the military construction and family housing portion of this bill, the President requested $16.7 billion, the House appropriated $15.9 billion, and the Senate Committee on Appropriations recommended $16.3 billion. ! Veteran Benefits: Entitlement spending is rising as the number of beneficiaries is increasing, education benefits are being augmented, and annual cost of living adjustments are being granted. Benefits such as disability compensation, pensions, and education are mandatory payments and constitute more than half ($37.2 and $41.4 billion, respectively) of the VA appropriation of approximately $71 billion for FY2006 and almost $78 billion proposed for FY2007. ! Veteran Medical Care: The Administration has again requested legislative changes to increase certain co-payments and other cost sharing fees for veterans in lower priority categories. The House passed version of H.R. 5385 provides $32.7 billion for the Veterans Health Administration (VHA) for FY2007, about the same amount as the President's request. On July 20, 2006, the Senate Committee on Appropriations reported out of committee its version of H.R. 5385. H.R. 5385, as amended, provides $32.7 billion for VHA for FY2007, almost equivalent to the House-passed amount and the President's request. The House-passed bill and the Senate Appropriations Committee-reported bill do not include any provisions that would give VA the authority to implement fee increases. Key Policy Staff for Military Construction, Military Quality of Life, and Veterans Affairs Appropriations Area of Name Telephone E-Mail Expertise Acquisition Stephen H. 7-8983 schadwick@crs.loc.gov Chadwick Base Closure Daniel H. Else 7-4996 delse@crs.loc.gov David E. Lockwood 7-7621 dlockwood@crs.loc.gov Defense Budget Stephen Daggett 7-7642 sdaggett@crs.loc.gov Amy Belasco 7-7627 abelasco@crs.loc.gov Health Care; Richard A. Best, Jr. 7-7607 rbest@crs.loc.gov Military Military Daniel H. Else 7-4996 delse@crs.loc.gov Construction Military Charles A. Henning 7-8866 chenning@crs.loc.gov Personnel David F. Burrelli 7-8033 dburrelli@crs.loc.gov Military Charles A. Henning 7-8866 chenning@crs.loc.gov Personnel; Reserves Related Agencies Daniel H. Else 7-4966 delse@crs.loc.gov Veterans Affairs Christine Scott 7-7366 cscott@crs.loc.gov Veterans Affairs; Sidath Viranga 7-0623 spanangala@crs.loc.gov Healthcare Panangala Contents Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Military Construction, Military Quality of Life and Veterans Affairs Appropriations (H.R. 5385) . . . . . . . . . . . . . . . . . . . . . . . . 1 Defense Authorization (H.R. 5122, S. 2766) . . . . . . . . . . . . . . . . . . . . . 1 Defense Appropriation (H.R. 5631) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Continuing Resolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 FY 2007 Emergency Supplemental Request for the Global War on Terror . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Appropriations Subcommittee Jurisdiction Realignment, 109th Congress . . 5 House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Subsequent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Title I: Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Defense Health Program (DHP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Military Base Realignments and Closures . . . . . . . . . . . . . . . . . . . . . . . 7 Recapitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 NATO Security Investment Program (NSIP) . . . . . . . . . . . . . . . . . . . . . 9 Special Inspector General for Iraq Reconstruction (SIGIR) . . . . . . . . 10 Additional Appropriations, House . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Additional Appropriations, Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Title II: Department of Veterans Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Agency Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Key Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 VA Cash Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Funding Level for Defense and Veterans Brain Injury Center . . . . . . . . . . . 19 Title III: Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Independent Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 American Battle Monuments Commission . . . . . . . . . . . . . . . . . . . . . 21 U.S. Court of Appeals for Veterans Claims . . . . . . . . . . . . . . . . . . . . . 21 Cemeterial Expenses, Army . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Armed Forces Retirement Home (AFRH) . . . . . . . . . . . . . . . . . . . . . . 21 Appendix A. Consolidated Funding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Appendix B. Additional Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Selected Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 List of Tables Table 1a. Status of FY2007 Military Construction, Military Quality of Life and Veterans Affairs Appropriations (H.R. 5385) . . . . . . . . . . . . . . . . . . . . . 4 Table 1b. Status of FY2007 Defense Authorization (H.R. 5122, S. 2766) . . . . . . 4 Table 2. Additional Appropriations, House, FY2007 . . . . . . . . . . . . . . . . . . . . . 13 Table 3. Additional Appropriations, Senate, FY2007 . . . . . . . . . . . . . . . . . . . . . 14 Table 4. Department of Veterans Affairs Appropriations, FY2000-FY2006 . . . 15 Table 5. Appropriations: Department of Veterans Affairs, FY2006-FY2007 . . . 15 Table 6a. DOD Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Table 6b. DOD Basic Allowance for Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Table 6c. DOD Facilities Sustainment, Restoration, & Modernization . . . . . . . . 27 Table 6d. DOD Environmental Remediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table 6e. DOD Health Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table 6f. DOD Military Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table 7. Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Military Construction, Military Quality of Life and Veterans Affairs: FY2007 Appropriations Most Recent Developments Military Construction, Military Quality of Life and Veterans Affairs Appropriations (H.R. 5385). The House Committee on Appropriations Subcommittee on Military Quality of Life and Veterans Affairs and Related Agencies reported its draft of the appropriations bill on May 15, 2006 (H.R. 5385, H.Rept. 109- 464), recommending a total Fiscal Year appropriation of $136.9 billion. The Rules Committee reported H.Res. 821, providing for one hour of general debate and leaving the bill open to general amendments, on May 18. The resolution passed on May 19, when the House began debate. Several Members offered amendments, though none was adopted, and raised points of order before the bill passed by the Yeas and Nays 395-0 (Roll No. 176). The Senate received the bill and referred it to the Committee on Appropriations. The Committee reported H.R. 5385 with an amendment in the nature of a substitute favorably on July 20 (S.Rept. 109-286).1 It was then placed on the Legislative Calendar under General Orders (Calendar No. 525). The Senate considered the bill on November 13 and 14, passing it by voice vote after floor amendment to the bill and title.2 Nevertheless, the measure, along with most of the other regular appropriations bills, did not conference before the 109th Congress ended. Only the appropriations for the Departments of Defense and Homeland Security were enacted for Fiscal Year 2007, with the remaining functions of the federal government being sustained by a series of continuing resolutions. Defense Authorization (H.R. 5122, S. 2766). Representative Duncan Hunter introduced (by request) the draft National Defense Authorization Act to the House on April 6, 2006. After referral to the Committee on Armed Services, the bill was reported (amended) to the House on May 5 (H.Rept. 109-452). The chamber considered the bill on May 10-11, 2006, and after amending it, considered recommitting it with instructions 1 The Committee also recommended a change of the bill's title from "Military Quality of Life and Veterans Affairs, and Related Agencies Appropriations Bill, 2007" to "Military Construction and Veterans Affairs and Related Agencies Appropriation Bill, 2007," reflecting the differences between the chambers in appropriations subcommittee names and jurisdictions. 2 The amended title read, "Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2007." CRS-2 to Armed Services. Recommittal failed on a recorded vote 202-220 (Roll no. 144). The House then passed the measure 396-31 (Roll no. 145). Senator John Warner reported the Senate Committee on Armed Services bill (S. 2766) and its accompanying report (S.Rept. 109-254) to the Senate on May 9, 2006. Additional views were filed simultaneously. The measure was placed on the Senate Legislative Calendar under General Orders (Calendar No. 426). The measure was laid before the Senate on June 12, debated, amended, and passed on June 22 by a Yea-Nay vote of 96-0 (Record Vote No. 186). H.R. 5122 was received on May 15 and placed on the Legislative Calendar under General Orders (Calendar No. 431). On June 22, the Senate struck all after the Enacting Clause and substituted the language of S. 2766 amended, passing the amended measure by Unanimous Consent and requesting a conference. The House disagreed to the Senate amendment on September 7 and agreed to a conference. The conference began on September 12, 2006. The Conference Report (H.Rept. 109-702) was filed in the House on September 29, 2006, and agreed the same day by the Yeas and Nays: 398-23 (Roll no. 510). The Senate agreed the report by Unanimous Consent on the following day. The bill was presented to the President on October 5. The bill became law on October 17, 2006 (P.L. 109-364). Defense Appropriation (H.R. 5631). Several items in the House version of H.R. 5385 lie within the jurisdiction of the Senate Committee on Appropriations Subcommittee on Defense. These include basic allowance for housing (military personnel account), facilities, sustainment, restoration, and modernization (operations and maintenance account), and defense-related agencies. Appropriations for these activities are therefore included in the Senate's defense appropriation bill. Nevertheless, they are included in the tables appended to this report. H.R. 5631 was introduced in the House on June 16, 2006, and passed on June 20 by a vote of 407-19 (H.Rept. 109-504, Roll no. 305). Referred to the Senate Committee on Appropriations, it was reported out on July 25 with an amendment in the form of a substitute (S.Rept. 109-292) and was placed on the Legislative Calendar under General Orders (Calendar No. 532). The Senate agreed to the committee substitute by Unanimous Consent on August 1. The Senate debated and amended the bill between August 1 and 3 and continued on September 5 through 7, passing it with amendment on a Yea-Nay vote of 98-0 (Record Vote No. 239) and requesting a conference. The House appointed conferees on September 21, and the Conference Report (H.Rept. 109-676) was filed on September 25, 2006. The House agreed to the report by the Yeas and Nays: 394-22 (Roll no. 486). The Senate agreed to the conference report on September 29 by a Yeas and Nays vote of 100-0 (Record Vote No. 261). Presented to the President, he signed the bill on the same day (P.L. 109-289). Continuing Resolutions. In the absence of an annual appropriation, Fiscal Year 2007 funding for all of the accounts included in the House version of H.R. 5385 CRS-3 has been sustained by a series of continuing resolutions. Div. B of H.R. 5631 (P.L. 109-289), the Department of Defense Appropriations Act for Fiscal Year 2007, continued appropriations for a variety of activities, including those covered by H.R. 5385, from the beginning of Fiscal Year 2007 through November 16, 2006, using various formulas.3 In general, these equated to the lowest of the House-passed, Senate-passed, or last-enacted funding levels. H.J.Res. 100 (P.L. 109-369) continued appropriations through December 18, 2006. H.J.Res. 102 (P.L. 109-383) continued appropriations through February 15, 2007. H.J.Res. 20 (P.L. 110-5) was passed by the 110th Congress and enacted on February 15, 2007. It incorporated the previous continuing resolutions, continuing them, with some modification to military construction and veterans benefits, through the end of Fiscal Year 2007 (September 30, 2007). Additional information on H.J.Res. 20 is included later in this report. Additional information regarding the recent history of and practices regarding continuing resolutions can be found in CRS Report RL30343, Continuing Appropriations Act: Brief Overview of Recent Practices, by Sandy Streeter, and CRS Report RL32614, Duration of Continuing Resolutions in Recent Years, by Robert Keith. FY 2007 Emergency Supplemental Request for the Global War on Terror. As part of his Fiscal Year 2008 Budget Request, President George W. Bush included a recommendation for an additional $93.4 billion emergency supplemental appropriation to support the Global War on Terror (GWOT). As stated in the Fiscal Year 2008 Budget Appendix (Additional FY2007 and FY2008 Proposals), military construction funds included would be "used to build urgent facilities needed for the Global War on Terror, including buildings, perimeter fences and barriers, secure fuel facilities, and roads to improve the force protection and safety of U.S. military forces. The funds will also be used to construct theater-located operations facilities needed to improve the capabilities of combat forces. In addition, the funds will cover the cost of housing, maintenance, and training infrastructure needed to support an expansion of Army and Marine Corps ground combat forces."4 This supplemental request would add $1.38 billion to the FY2007 Army military construction account, $412.5 million to the FY2007 Navy and Marine Corps military construction account, and $60.2 million to the FY2007 Air Force military construction account. 3 See Div. B, Sec. 101(b) ­ (e) of the Act. 4 The quotation is taken from pg. 1161. The appendix is available on the World Wide Web at http://www.whitehouse.gov/omb/budget/fy2008/. CRS-4 Supplementary budget documentation forwarded by DOD broke down the funding along three main functional topics. "Continuing the Fight," "Reconstituting the Force," and "Enhancing Ground Forces." Military construction was included in the first and the last of these. Under "Continuing the Fight," DOD indicated that approximately $980.0 million would be devoted to the construction and improvement of facilities in Iraq and Afghanistan in direct support of ground force military operations. The Navy would spend $85.1 million for facilities in Djibouti and at Naval Station Guantanamo, Cuba, and the Air Force would use $60.2 million to improve airfield facilities in Afghanistan. Approximately $100 million of military construction under "Enhancing Ground Forces"is intended to accelerate the transition of existing Army and Marine units into two Brigade Combat Teams (Army) and a single Regimental Combat Team (Marine). The remaining construction funding, approximately $729 million, would build housing and maintenance and training facilities for 92,000 new troops to be added to Army and Marine end strength by the end of 2012. Status of Legislation Table 1a. Status of FY2007 Military Construction, Military Quality of Life and Veterans Affairs Appropriations (H.R. 5385) Conference Report Committee Markup House House Senate Senate Conf. Public Approval Report Passage Report Passage Report Law House Senate House Senate H.Rept. S.Rept. 5/4/06 7/18/06 5/19/06 11/14/06 -- -- -- -- 109-464 109-286 Table 1b. Status of FY2007 Defense Authorization (H.R. 5122, S. 2766) Conference Report Committee Markup House House Senate Senate Conf. Public Approval Report Passage Report Passage Report Law House Senate House Senate H.Rept. S.Rept. H.Rept. P.L. 109- 5/18/05 5/4/06 5/11/06 9/7/06 9/29/06 9/30/06 109-452 109-254 109-702 364 CRS-5 Summary and Key Issues Appropriations Subcommittee Jurisdiction Realignment, 109th Congress House. During the first session of the 109th Congress, the Committee on Appropriations reorganized its subcommittee structure and realigned subcommittee jurisdictions. In the resulting redistribution of subcommittee responsibilities, the Subcommittees on Veterans Affairs, Housing and Urban Development (VA-HUD) and Military Construction were eliminated and some of their responsibilities were assigned to a new Subcommittee on Military Quality of Life and Veterans Affairs and Related Agencies. The new subcommittee was given jurisdiction for appropriations to the following accounts: ! Department of Defense (DOD): Military Construction, Army, Navy (including Marine Corps), Air Force, Defense-wide, and Guard and Reserve Forces, Facilities Sustainment, Restoration and Modernization, Army, Navy (including Marine Corps), Air Force, and Guard and Reserve Forces, Chemical Demilitarization Construction, Defense-wide Military Family Housing Construction and Operation and Maintenance, Army, Navy (including Marine Corps), Air Force, and Defense-wide Family Housing Improvement Fund, Military Unaccompanied Housing Improvement Fund, Homeowners Assistance Fund, Basic Allowance for Housing, Army, Navy (including Marine Corps), Air Force, and Guard and Reserve Forces, Environmental Restoration Accounts, Base Realignment and Closure Account, NATO Security Investment Program, Defense Health Program Account. ! Department of Veterans Affairs. ! Related Agencies: American Battle Monuments Commission, Armed Forces Retirement Home, Cemeterial Expenses, Army (DOD), Court of Appeals for Veterans Claims. Senate. At the same time, the Senate Committee on Appropriations dissolved its Subcommittee on Veterans Affairs, Housing and Urban Development and transferred its responsibilities for Veterans Affairs, the American Battle Monuments Commission, Cemeterial Expenses, Army (Arlington National Cemetery), the Court of Appeals for Veterans Claims, and the Selective Service Commission to the former Subcommittee on Military Construction, which retained its responsibility for military construction appropriations. The reconstituted organization was renamed the Subcommittee on Military Construction and Veterans Affairs. Subsequent Agreement. After negotiating the differing jurisdictions between the two subcommittees, House and Senate appropriators agreed that legislation considered would include appropriations to all of the accounts within the jurisdiction of the former Military Construction subcommittees and those related to the Department of Veterans Affairs and the related agencies. When considering CRS-6 appropriations for odd-numbered fiscal years (e.g., 2007, 2009, etc.), the legislation add the appropriations accounts specific to the jurisdiction of the House subcommittee.5 Appropriations Subcommittee Jurisdiction Realignment, 110th Congress With the opening of the 110th Congress, the House and Senate brought the responsibilities of their appropriations subcommittees more closely into alignment. On the House side, this resulted in a new alignment of jurisdictions and the renaming of several subcommittees. The non-construction quality-of-life defense appropriations, including Facilities Sustainment, Restoration, and Modernization, Basic Allowance for Housing, Environmental Restoration, and the Defense Health Program returned to the jurisdiction of the Subcommittee on Defense. The former Subcommittee on Military Quality of Life, Veterans Affairs, and Related Agencies became the Subcommittee on Military Construction, Veterans Affairs, and Related Agencies, mirroring its counterpart in the Senate. Title I: Department of Defense Defense Health Program (DHP) H.R. 5385 considered funding for the Defense Health Program (DHP) in FY2007, the medical and health care programs of the Department of Defense. The bill's DHP funding, which included Operation & Maintenance, Procurement and Research, Development, Test, and Evaluation activities associated with military health care, would have totaled approximately $21 million.6 The DHP figure included funds for military medical facilities and contracts with Tricare civilian health care providers, which provide medical care to some 8 million military personnel, their dependents, retirees and their dependents. Differences between amounts approved by the House were Senate are relatively small; the House approved $21.065 million; the Senate, $21.409 million. 5 See Tim Starks, "Bill Targets Veterans' Funding Shortfall," CQ Weekly (November 18, 2005), p. 3136. 6 Funds ($7 billion) for military medical personnel were appropriated in the Department of Defense Appropriations Act for Fiscal Year 2007 (H.R. 5631, P.L. 109-289). P.L. 109-289 also includes an $11 billion contribution to the fund that will provide care for future Medicare-eligible military retirees and dependents, the Medicare Eligible Retiree Health Care Fund. CRS-7 Military Construction Military Base Realignments and Closures.7 Actions to implement recommendations to realign or close a number of defense installations throughout the United States began during FY2006. Originally drafted by the Department of Defense and modified by the independent nine-member BRAC Commission (officially known as the Defense Base Closure and Realignment Commission of 2005), the list of actions will close 25 major military bases, realign another 24, and carry out some 765 other actions before the statutory deadline of September 2011, according to the Department of Defense.8 The 2005 round marked the fifth time that a commission took part in determining which military installations are to be closed or significantly reduced in scope. The first, the Base Realignment and Closure Commission, was chartered by, and reported its recommendations to, the Secretary of Defense. All subsequent commissions were created by Congress in the Defense Base Closure and Realignment Act of 1990, as amended. Three subsequent rounds (in 1991, 1993, and 1995) were authorized by Congress in the original legislation. The 2005 round was authorized in an amendment to the original law incorporated into the National Defense Authorization Act for Fiscal Year 2002. Several BRAC-related issues arose during the formulation and consideration of the list of recommendations, as indicated below. Requested Funding for BRAC Accounts. The appropriation request for FY2007 was split between two BRAC Accounts, one labeled the 1990 account and the other the 2005 account. The BRAC 1990 account is the consolidation of what had been four separate accounts, one for each of the previous BRAC rounds. Because all of the recommended BRAC actions from those rounds were completed in 2001, the BRAC 1990 account is devoted to funding the continuing environmental remediation required on the federal property deemed excess during those rounds but not yet conveyed to non-DOD ownership. There was $246 million appropriated to the 1990 account for FY2005, and $252.2 million was enacted for FY2006. For FY2007, the President requested $191.2 million, while the House Committee on Appropriations 7 CRS products that discuss the BRAC process in greater detail include CRS Report RL32216, Military Base Closures, Implementing the 2005 Round by David E. Lockwood, CRS Report RS22291, Military Base Closures: Highlights of the 2005 BRAC Commission Report and Proposed Legislation by Daniel H. Else and David E. Lockwood, and CRS Report RL33092, Base Realignment and Closure (BRAC): Property Transfer and Disposal by Aaron M. Flynn. Current BRAC-related products can most easily be found through the CRS web page under Current Legislative Issues: Defense and then Military Base Closures. 8 10 U.S.C. 2687 note, the Defense Base Closure and Realignment Act of 1990, as amended, requires the Secretary of Defense to implement all BRAC Commission recommendations not later than six years after their final approval. For the 2005 round, DOD has calculated that date to be September 15, 2011. CRS-8 recommended $216.2 million. The Senate Committee on Appropriations endorsed the President's request for $191.2 million. The BRAC 2005 account funds the many realignment and closure actions, to include the movement of units and equipment, the construction of new infrastructure at receiving installations, and the realignment and closure of property deemed excess in the current BRAC round. In addition, DOD has incorporated into the BRAC 2005 account funding for construction to accommodate units being redeployed to the United States and its territories from garrisons located overseas -- primarily in Germany and the Republic of Korea. DOD refers to this worldwide redeployment as the Integrated Global Presence and Basing Strategy, or IGPBS, and has identified its associated military construction in budget justification documents using that acronym.9 BRAC appropriations in previous rounds rose rapidly during the first two or three years in order to initiate needed military construction. Appropriations then stabilized and fell off as units and functions were moved to new locations and surplus properties were relinquished. Continuing appropriations, as mentioned above, have been dedicated primarily to environmental remediation of remaining problematic real property for which title remains with DOD. Congress appropriated $1.59 billion to the BRAC 2005 account for FY2006. The President requested $5.6 billion for FY2007. If DOD follows its historic pattern, this request is likely to be repeated for FY2008 before falling off to perhaps half that for FY2009. The House Committee on Appropriations recommended a $5.3 billion appropriation for FY2007, while the Senate Committee on Appropriations recommended $5.2 billion. Because Congress did not pass a military construction appropriation for Fiscal Year 2007, BRAC had to be funded under the various continuing resolutions. The final non-emergency appropriation action for Fiscal Year 2007 was H.J.Res 20, a year-long continuing resolution that incorporated the two previous short-term continuing resolutions and extended their appropriations through the end of the fiscal year, September 20, 2007. Though Sec. 101 of the continuing resolution specified that funding was to be provided at the levels specified in the applicable Fiscal Year 2006 appropriations acts, exceptions were made for certain accounts. This is reflected in the tables in Appendix A. Impact of Military Redeployments on Local Schools. Unit and function movements associated with BRAC and IGPBS will significantly increase the populations in and around some military installations. For example, the 2005 BRAC Commission estimated that Aberdeen Proving Ground and Ft. Meade in Maryland are expected to gain more than 1,800 and 10,000 military, civilian, and contractor positions, respectively. Ft. Belvoir, Virginia, is calculated to gain more than 21,000 direct and indirect positions. Several other installations, such as Ft. Bliss in Texas 9 BRAC deals with the closure and realignment of defense installations within the United States and its territories, while the IGPBS addresses all other U.S. military installations worldwide. CRS-9 and Ft. Sill in Oklahoma, are also preparing for significant additions to the personnel stationed there. Local jurisdictions in the vicinity of gaining installations have expressed concern that they may have difficulty creating the infrastructure needed to support such large-scale changes in population. One such issue concerns the provision of primary and secondary education for the children of families being moved into the various areas. Some school boards have expressed concern that the process for providing federal impact aid, which subsidizes the maintenance and operation of local education institutions adversely affected by federal government activity such as maintaining a military installation, may not be received in time to construct and staff new school facilities before these new students arrive. A detailed discussion of impact aid in the BRAC context can be found in CRS Report RL33137, Military Base Closures and the Impact Aid Program for Education, by Rebecca R. Skinner. Recapitalization. In 2001, the Department of Defense estimated its existing recapitalization rate at 192 years.10 This meant that, on average, the Department was funding military construction at a rate that would replace its real property inventory every 192 years. At that time, the Department established a recapitalization goal of 67 years. In testimony to Congress on February 15, 2006, the Hon. Philip Grone, the Deputy Undersecretary of Defense for Installations and Environment, stated that the Fiscal Year 2007 budget request would support a recapitalization cycle of 72 years, indicating an acceleration of construction that is approaching, but has not yet reached, its goal. NATO Security Investment Program (NSIP). The NSIP constitutes the United States contribution to the common North American Treaty Organization (NATO) infrastructure fund. Traditionally, these common alliance funds have constructed facilities such as petroleum pipelines, roads, communications networks, and the like that are employed in the defense of the NATO alliance. Since the end of the Cold War, the military focus of the North Atlantic Alliance has shifted from the defense member states in Western Europe to the potential for "out-of-area" operations in areas such as the Balkans and Central Asia. In its report to the House (H.Rept. 109-464), the Committee on Appropriations recommended $201.0 million for the NSIP, noting that the "Committee expects projects will be prioritized with the highest priority given to NATO on-going missions such as those in Iraq and Afghanistan."11 10 Recapitalization is the process of replacing old structures as they reach the end of their expected service life (assuming that facility sustainment, or routine maintenance, is fully funded). If maintenance is inadequate, the service life of any structure is correspondingly shortened. The Department of Defense often quotes a shorthand Department-wide "recapitalization rate" that is the funded service life (e.g., 192 years) and an "expected service life" that is a replacement goal (e.g., 67 years). 11 House, Military Quality of Life and Veterans Affairs, and Related Agencies Appropriations Bill, 2007, 109th Cong., 2nd Sess., 2006, H.Rept. 109-464, p. 27. CRS-10 The President requested $221.0 million for the NSIP for FY2007, while the House approved $201.0 million. The Senate approved an appropriation of $206.0 million. Special Inspector General for Iraq Reconstruction (SIGIR). Language in the John Warner National Defense Authorization Act for Fiscal Year 2007 (H.R. 5122, P.L. 109-364) provided for the termination of the Special Inspector General for Iraq Reconstruction (SIGIR). The House-passed version of the bill contained no provision regarding the operation of the SIGIR.12 During floor debate of the Senate's national defense authorization bill (S. 2766), Senator Russell D. Feingold proposed an amendment that would extend the investigative, auditing, and reporting authorities of the SIGIR to cover "any funds appropriated or otherwise made available for fiscal year 2006 for the reconstruction of Iraq, regardless of how such funds may be designated."13 The measure was agreed by voice vote on June 15, 2006, and incorporated into the bill as Sec. 1054. It became part of H.R. 5122 when the Senate amended that bill by substituting the language of S. 2766 on June 22. The section read as follows: SEC. 1054. STRENGTHENING THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION. For purposes of discharging the duties of the Special Inspector General for Iraq Reconstruction under subsection (f) of section 3001 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (5 U.S.C. 8G note), and for purposes of determining the date of termination of the Office of the Special Inspector General under subsection (o) of such section, any funds appropriated or otherwise made available for fiscal year 2006 for the reconstruction of Iraq, regardless of how such funds may be designated, shall be treated as amounts appropriated or otherwise made available for the Iraq Relief and Reconstruction Fund. Conference on the authorization bill began on September 12, and the conference report (H.Rept. 109-702) was filed on September 29. Sec. 1054, as entered into the Congressional Record, now read: SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION. (a) Duties -- For purposes of carrying out the duties of the Special Inspector General for Iraq Reconstruction under section 3001(f) of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1235 et seq.; 5 U.S.C. App., note to section 8G of Public Law 95-452), any United States funds 12 The SIGIR maintains a website, through which access to information on its' audits, investigations, and reports can be gained. This website can be found at [http://www.sigir.mil/]. 13 S.Amdt. 4256. Consideration of the measure is found in the Congressional Record for June 15 (S5914-S5916, the text of the amendment is located on page S5968). CRS-11 appropriated or otherwise made available for fiscal year 2006 for the reconstruction of Iraq, irrespective of the designation of such funds, shall be deemed to be amounts appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund. (b) Termination -- Section 3001(o) of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of Public Law 95-452) is amended to read as follows: `(o) Termination - The Office of the Inspector General shall terminate on October 1, 2007, with transition operations authorized to continue through December 31, 2007.'. By way of explanation, the accompanying Joint Explanatory Statement read:14 The Senate amendment contained a provision (sec. 1054) that would expand the authority of the Special Inspector General for Iraq Reconstruction (SIGIR) by considering any funds appropriated or made available in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) for relief and reconstruction in Iraq as part of the Iraqi Relief and Reconstruction Fund (IRRF), and under the jurisdiction of the SIGIR, regardless of the source of the funds. The House bill contained no similar provision. The House recedes with an amendment that would clarify that the additional SIGIR jurisdiction is limited to U.S. funds and would provide a sunset date of October 1, 2007, for the Office of the SIGIR, with transition operations authorized to continue through December 31, 2007. The conferees support the comprehensive audit efforts of the SIGIR and believe the office continues to perform a critical function as long as significant resources flow to Iraq reconstruction and until a transition plan is in place to return to regular order. The conferees direct the SIGIR, jointly with the Inspectors General of the Departments of State and Defense and the Inspector General of the U.S. Agency for International Development (USAID), to develop and submit such a transition plan to Congress by April 1, 2007. The plan should ensure maintenance and accountability of all accumulated records and minimal, if any, disruption in the ability to oversee reconstruction funding or other U.S. assistance to Iraq. The plan should include a process and time line for transfer of open audits and investigations to the appropriate Departments of Defense, State or USAID office and should consider various contingency scenarios which may impact the transition time line. The conferees recognize that a significant change in the assumptions underlying this provision, such as a major new commitment of U.S. funds for Iraq reconstruction, would require changes to the transition plan and time line. The conference report was agreed by the House by the Yeas and Nays: 398-23 (Roll no. 510) on September 29, 2006. The Senate agreed to the report by Unanimous 14 H.Rept. 109-702, p. 817. CRS-12 Consent on the following day. The bill was presented to the President on October 5 and became law on October 17, 2006 (P.L. 109-364). The Joint Explanatory Statement notwithstanding, Senators Susan M. Collins and Joseph I. Lieberman appeared in a press conference on November 14, 2006, to state, in part: COLLINS: How did the termination provision ... get put in? That's a very good question. We are both conferees -- were conferees. And, speaking for myself, what I thought was the last version of the bill did not include that provision. But I think it's important that however it got in there -- and it certainly did not originate on the Senate side -- that it's important that we correct the problem, go forward, and extend the life of the office... LIEBERMAN: Yes. I'd just add, also as a conferee, that we didn't see this in the last version that we saw. We checked after this became public, and I don't believe that the leaders of the committee on the Senate side or their staff knew it was in there.... Senator Collins had introduced an amendment to the military construction appropriations bill then under consideration on the Senate floor. This provision stated:15 On page 82, between lines 19 and 20, insert the following: Sec. 126. Section 3001(o) of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of Public Law 95-452), as amended by section 1054(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), is amended to read as follows: "(o) Termination. -- (1)(A) The Office of the Inspector General shall terminate 10 months after 80 percent of the funds appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund have been expended. "(B) For purposes of calculating the termination of the Office of the Inspector General under this subsection, any United States funds appropriated or otherwise made available for fiscal year 2006 for the reconstruction of Iraq, irrespective of the designation of such funds, shall be deemed to be amounts appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund. "(2) The Special Inspector General for Iraq Reconstruction shall, prior to the termination of the Office of the Special Inspector General under paragraph (1), prepare a final forensic audit report on all funds deemed to be amounts 15 S.Amdt. 5123 to H.R. 5385, titled "To extend the Office of the Inspector General for Iraq until 80 percent of the funds appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund has been expended." Amendment text may be found in the Congressional Record for November 13, 2006, on pages S10881-S10882. Consideration of the measure is detailed on pages S10895-S10897. CRS-13 appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund.". The amendment was agreed to in the Senate by voice vote, and the bill passed as amended on November 14, 2006. Additional Appropriations, House. In Title IV of its bill, the House Committee on Appropriations recommended an additional $507 million for military construction accounts for "projects supporting contingency operations related to the global war on terrorism" (see Table 2). These funds were intended for "projects related to urgent transformation efforts, as well as projects directly supporting operations in the theater and those that will enhance training in urban operations and close quarters combat."16 Table 2. Additional Appropriations, House, FY2007 Military Construction New Budget Authority Account ($ millions) Army 379,300 Navy and Marine Corps 26,037 Air Force 49,923 Defense-Wide 44,500 Army National Guard 5,530 Army Reserve 1,713 Total 507,003 Source: H.Rept. 109-464, p. 69. Each of these appropriations was addressed in a separate paragraph under Title IV, and each was designated an emergency appropriation by language stating that "the amount under this heading is designated as making appropriations for contingency operations related to the global war on terrorism pursuant to section 402 of H.Con.Res. 376 (109th Congress), the concurrent resolution on the budget for FY2007." This language would have constituted legislation within a general appropriations bill by changing the existing concurrent resolution. It therefore violated Clause 2(b) of Rule XXI of the House Rules.17 Representative Jeb 16 House, Military Quality of Life, p. 69. 17 The clause states, "A provision changing existing law may not be reported in a general appropriation bill, including a provision making the availability of funds contingent on the receipt or possession of information not required by existing law for the period of the appropriation, except germane provisions that retrench expenditures by the reduction of amounts of money covered by the bill (which may include those recommended to the Committee on Appropriations by direction of a legislative committee having jurisdiction over the subject matter) and except rescissions of appropriations contained in appropriation (continued...) CRS-14 Hensarling, of Texas, raised a point of order against each of these paragraphs and was sustained by the Chair. Additional Appropriations, Senate. The Senate Committee on Appropriations included in its defense appropriation recommendation $50 billion in additional appropriations to fund the global war on terrorism for the first several months of Fiscal Year 2007. Of this, $897 million was recommended as an addition to the recommended basic allowance for housing for Army active and reserve component members, as noted in Table 3. Table 3. Additional Appropriations, Senate, FY2007 ($ in thousands) Basic Allowance for Housing Amount Army 888,704 Army Reserve 3,164 Army National Guard 5,141 Total 897,009 Source: S.Rept. 109-292, p. 236. 17 (...continued) Acts." CRS-15 Title II: Department of Veterans Affairs Table 4. Department of Veterans Affairs Appropriations, FY2000-FY2006 (budget authority in billions) FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 VA $46.04 $47.95 $52.38 $58.10 $61.84 $65.84 $71.46 Source: Amounts shown are from reports of the Appropriations Committees accompanying the appropriations bills for the following years. Agency Mission Federal policy toward veterans recognizes the importance of their service to the nation and the effect that service may have on their subsequent civilian lives. The Department of Veterans Affairs (VA) administers, directly or in conjunction with other federal agencies, programs that provide benefits and other services to veterans and their dependents and beneficiaries. The three primary organizations in VA that work together to accomplish this mission are the Veterans Benefits Administration (VBA), the Veterans Health Administration (VHA), and the National Cemetery Administration (NCA). The benefits provided include compensation for disabilities sustained or worsened as a result of active duty military service; pensions for totally disabled, poor war veterans; cash payments for certain categories of dependents and/or survivors; education, training, rehabilitation, and job placement services to assist veterans upon their return to civilian life; loan guarantees to help them obtain homes; free medical care for conditions sustained during military service as well as medical care for other conditions, much of which is provided free to low income veterans; life insurance to enhance financial security for their dependents; and burial assistance, flags, grave-sites, and headstones when they die. Table 5. Appropriations: Department of Veterans Affairs, FY2006-FY2007 (budget authority in billions) FY2007 FY2006 FY2007 FY2007 FY2007 Program HJRes. enacted request House Senate 20 Total: (VA) $71.458 $77.909 $77.909 $77.909 $77.882 Compensation, pension, burial $33.898 $38.007 $38.007 $38.007 $38.007 Readjustment benefits 3.309 3.262 3.262 3.262 3.262 Insurance/indemnities 0.046 0.050 0.050 0.050 .050 Housing prog. (net, indef.) -0.047a 0.097 0.097 0.097 .097 Subtotal: Mandatory $37.206 $41.416 $41.416 $41.416 41.416 CRS-16 FY2007 FY2006 FY2007 FY2007 FY2007 Program HJRes. enacted request House Senate 20 Medical services 21.322 25.512 25.412 28.689 25.512 Emerg. funding 1.225 -- -- -- -- Emerg. funding 0.225 -- -- -- -- (P.L. 109-148) Medical administration 2.858 3.177 3.277 -- 3.177 Medical facilities 3.298 3.569 3.594 3.569 3.569 Med. & prosthetic research 0.412 0.399 0.412 0.412 .414 Med. care collection fundb (offsetting receipts) -2.170 -2.329 -2.329 -2.329 -2.329 (approps. indefinite) 2.170 2.329 2.329 2.329 2.329 Subtotal: Med. programs & 29.341 32.657 32.695 32.670 32.672 admin. (appropriations) Total available to VHA 31.511 34.986 35.024 34.999 35.001 Gen. admin. exp. (total) 1.411 1.481 1.481 1.468 1.481 Emerg. funding 0.025 -- -- -- (P.L. 109-148) Information technology 1.214 1.257 1.302 1.256 1.214 National Cemetery Admin. 0.156 0.161 0.161 0.161 .161 c Emerg. funding -- -- -- (P.L. 109-148) Inspector General 0.070 0.069 0.069 0.071 .070 Construction 0.806 0.597 0.494 0.597 .598 Emerg. funding 0.955 -- -- -- (P.L. 109-148 & 234) Grants; state facilities 0.085 0.085 0.105 0.085 .085 State veteran cemeteries 0.032 0.032 0.032 0.032 .032 Housing & other loan admin. 0.155 0.154 0.154 0.154 .154 Disaster comp. -- emergency 0.003 -- -- -- -- (P.L. 106-148) Subtotal: Discretionary $34.252 $36.493 $36.493 $36.493 $36.466 Source: Table prepared by the Congressional Research Service based on H.Rept. 109-464, S.Rept. 109-286, and H.J.Res. 20. a. This negative budget authority is the result of combining the loan subsidy payments estimated to be needed during FY2006 with the offsetting receipts expected to be collected. b. Medical Care Collections Fund (MCCF) receipts are restored to the VHA as an indefinite budget authority equal to the revenue collected. c. $200,000. CRS-17 Key Budget Issues The budget submitted by the Administration in February 2006 calls for funding VA at a level of $77.9 billion dollars for FY2007 (see Table 5). This would be an increase of $6.5 billion, or 9.0%, over the FY2006 total including the supplemental appropriations. The most recent supplemental (P.L. 109-234) added FY2006 funds for construction of a replacement for the VA Medical Center in New Orleans.18 The Senate passed its version of the budget resolution for FY2007 (S.Con.Res. 83) on March 16, 2006, and the House passed H.Con.Res 376 on May 18, 2006. The overall budget function 700 for veterans benefits and services addressed in the budget resolution is broader than just the VA and includes money that will be appropriated in other bills for other departments as well. The House-passed version recommends $74.6 billion in new budget authority for veterans benefits and services. The Senate version was amended on the floor to increase the total to $74.8 billion for the veterans budget function. The House Appropriations Committee approved its appropriations bill (H.R. 5385) including about the same amount as requested for VA on May 10, 2006. The bill, as passed by the House on May 19, 2006, would provide a total of $77.9 billion for the VA budget with $36.5 billion of the bill's $94.7 billion 302(b) allocation going for VA discretionary spending. The Senate Appropriations Committee approved the bill with the same totals on July 20, 2006. On January 31, 2007, the House approved H.J.Res. 20, a continuing resolution to provide funding for FY2007. VA Cash Benefits. Eligibility requirements and benefit levels for VA cash benefits are specified in law. Since spending for these programs is mandatory as noted above, the amounts requested in the budget are based on projected caseloads. While the total number of veterans is declining, the number receiving benefits is increasing. VA entitlement spending (outlays), mostly service-connected compensation, pensions, and readjustment (primarily education) payments, rose from $31.2 billion in FY2004 to $38.1 billion in FY2005 and is projected at $38.2 billion in FY2007. In addition to the increased number of beneficiaries, much of the projected increases in recent years result from cost-of-living adjustments for compensation benefits and from liberalizations to the Montgomery GI Bill, the primary education program. Medical Care The Veterans Health Administration (VHA) is a direct service provider of primary care, specialized care, and related medical and social support services to veterans through an integrated health care system. In FY2005, VHA operated 156 hospitals, 135 nursing homes, 43 residential rehabilitation treatment centers, and 711 community-based 18 For further information on this bill, see CRS Report RL33298, FY2006 Supplemental Appropriations: Iraq and Other International Activities; Additional Katrina Hurricane Relief, coordinated by Paul M. Irwin and Larry Nowels. CRS-18 outpatient clinics (CBOCs).19 VHA also pays for care provided to veterans by independent providers and practitioners on a fee basis under certain circumstances. Inpatient and outpatient care is provided in the private sector to eligible dependents of veterans under the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA). In addition, VHA provides grants for construction of state-owned nursing homes and domiciliary facilities, and collaborates with the Department of Defense (DOD) in sharing health care resources and services. The President's FY2007 budget proposal to Congress requested $32.7 billion for VHA, a 11.3% increase over the FY2006 enacted amount of $29.3 billion, and a 10% increase over the FY2005 enacted amount of $29.7 billion. As in previous budget proposals, the President's FY2007 budget request also includes a set of legislative proposals. The Administration is requesting authorization from Congress to assess an annual enrollment fee of $250 for all Priority 7 and 8 veterans, increase the veterans' share of pharmaceutical co-payments from $8 to $15 (for each 30-day prescription) for all enrolled veterans in Priority Groups 7 and 8, and bill veterans receiving treatment for nonservice-connected conditions for the entire co-payment amount. The House passed its version of the Military Construction, Military Quality of Life, and Veterans Affairs Appropriations bill (MIL-CON-QUAL-appropriations bill) for FY2007 (H.R. 5385, H.Rept. 109-464) on May 19, 2006. H.R. 5385 provides $32.7 billion for the Veterans Health Administration (VHA) for FY2007, about the same amount as the President's request. This includes $25.4 billion for medical services, a $2.6 billion (11.6%) increase over the FY2006 enacted amount and $100 million less than the President's requested amount of $25.5 billion. The MIL-CON- QUAL-appropriations bill also includes $3.3 billion for medical administration, a $100 million increase over the President's request; $3.6 billion for medical facilities; and $412 million for medical and prosthetic research, a $13.0 million increase over the Administration's request. The House-passed bill does not include any provisions that would give VA the authority to implement fee increases as requested by the Administration's budget proposal for VHA for FY2007 On July 20, 2006, the Senate Committee on Appropriations reported out of committee its version of the Military Construction and Veterans Affairs and Related Agencies Appropriations bill (MIL-CON-VA-appropriations bill) for FY2007 (H.R. 5385, H.Rept. 109-286). H.R. 5385, as amended, provides $32.7 billion for VHA for FY2007, about the same as the House-passed amount and the President's request. This amount includes $28.7 billion for medical services, a 26.0% increase over the FY2006 enacted amount, and a 13.0% increase over the House-passed amount. Although it appears that the Committee-recommended amount is significantly higher than the President's request ($25.5 billion) and the House-passed amount ($25.4 billion), it should be noted that the Committee combined the medical administration account into the medical services account. The MIL-CON-VA-appropriations bill 19 Data on the number of hospitals and nursing homes includes facilities damaged by Hurricane Katrina. Data on the number of CBOCs differ from source to source. Some count clinics located at VA hospitals while others count only freestanding CBOCs. The number represented in this report excludes clinics located in VA hospitals. The data are current as of Dec. 1, 2005. CRS-19 also includes $3.6 billion for medical facilities, and $412 million for medical and prosthetic research. The Senate Appropriations Committee reported bill does not include any provisions that would give VA the authority to implement fee increases as requested by the Administration's budget proposal for VHA for FY2007. The third continuing resolution (H.J.Res. 102 , P.L. 109-383) extended funding for VHA through February 15, 2007. Section 136 of H.J.Res. 102 provided VA with the authority to transfer up to $684 million into the medical services account from other non-medical care accounts. Since the beginning of FY2007, VA has been using unobligated balances carried over from FY2006 to bridge the approximately $250 million per month shortfall in the VHA accounts. Funding Level for Defense and Veterans Brain Injury Center During Senate floor consideration of the FY2007 Department of Defense Appropriations Act (H.R. 5631), controversy erupted about the adequacy of funding for the Defense and Veterans Brain Injury Center, a center that coordinates treatment and research for traumatic brain injuries affecting active-duty military, their dependents and veterans provided.20 Concerned about traumatic and other brain injuries in Iraq and Afghanistan due to Improvised Explosive Device (IED) attacks, Congress increased DOD's funding request for this program in FY2006, and commissioned an extensive report due October 6, 2006.21 In FY2007, the final funding level for this program will be set in the conference version of the Military Construction, Military Quality of Life, Veterans Affairs & related agencies bill (H.R. 5385). Despite the controversy about the funding level for this particular program, military personnel are entitled to full medical coverage under the TRICARE program. The Defense and Veterans Brain Injury Center is funded within the "Blast Injury Prevention, Mitigation and Treatment" program, and received $10.7 million of the $19.6 million appropriated in FY2006. Last year, Congress increased DOD's request for blast injury from $7 million to $19.6 million, including monies for both treatment and R&D, all provided within the appropriation for Defense Health. In FY2007, DOD again proposed $7 million for the Blast Injury Prevention, Mitigation and Treatment program including $4.9 million for the Defense and Veterans Brain Injury Center. On September 6, 2007, the Senate unanimously adopted an amendment to the FY2007 DOD Appropriations bill (H.R. 5631) offered by Senators Allen and Durbin (SA4883) that made $19 million available for the Defense and Veterans Brain Injury Center from monies for the Defense Health Program.22 The House did not change DOD's request for $7 million for the Blast 20 Treatment is provided at three military hospitals, three VA hospitals and two private centers. 21 See Sec. 255 in P.L. 109-163, H.Rept. 109-360, pp.47-50, and p. 622 for reporting requirement, and see H.Rept. 109-359, Conference Report on FY2006 DOD Appropriations Bill for FY2006 Congressional action, p. 458. 22 See Congressional Record, September 5, 2006, pp. S8928ff and September 6, 2006, p. (continued...) CRS-20 Injury Prevention, Mitigation and Treatment program and funded the program in a different bill, the Military Construction, Military Quality of Life and Veterans Affairs appropriations bill (H.R. 5385).23 In FY2007, the appropriation conferees for the FY2007 Military Construction, Military Quality of Life and Veterans Affairs appropriation bills (H.R. 5385) will need to resolve differences in funding for the Blast Injury Prevention, Mitigation and Treatment program, and the amount of that funding that will go to Defense and Veterans Brain Injury Center.24 For a more detailed discussion of the VA medical care budget, see CRS Report RL33409, Veterans' Medical Care: FY2007 Appropriations, by Sidath Viranga Panangala. 22 (...continued) S8992 and S9035. 23 For DOD request, see "Exhibit OP-5, In-House Care," Defense Health Program, FY2007 Budget Estimates, February 2006, pp. 2-4; [http://www.dod.mil/comptroller/defbudget/ fy2007/budget_justification/pdfs/dhp/VOL_1/Vol_1_Sec_5_-_A_OP-5_IHC_07PB_DH P.pdf]. Because this program is part of In-house Care and because the House did not change DOD's request, the House report does not specifically mention its funding. 24 At the beginning of the 109th Congress, the appropriations committees changed the jurisdictional responsibility of various subcommittees. Funding for Defense Health is included in Military Construction bill in the House and in the Defense Appropriations bill in the Senate. The appropriators follow the House rules in odd years like FY2007 and the Senate rules in even years. CRS-21 Title III: Related Agencies Independent Commissions American Battle Monuments Commission. The American Battle Monuments Commission (ABMC) is responsible for the maintenance and construction of U.S. monuments and memorials commemorating the achievements in battle of U.S. armed forces since the nation's entry into World War I; the erection of monuments and markers by U.S. citizens and organizations in foreign countries; and the design, construction, and maintenance of permanent military cemetery memorials in foreign countries. The Commission maintains 24 military memorial cemeteries and 25 monuments, memorials, and markers in 15 countries, including three memorials on U.S. soil. The ABMC was responsible for the planning and construction of the World War II Memorial on the Mall in Washington, DC. Though the National Park Service assumed responsibility for the operation and maintenance of the Memorial at its dedication, the ABMC retains a fiduciary responsibility for the remaining public contributions given for its construction. The ABMC has undertaken the construction of an Interpretive Center at the Normandy American Cemetery, Normandy, France, to commemorate the World War II Allied invasion of France on June 6, 1944, and the subsequent land battles in Europe. The Commission is scheduled to open the facility on June 6, 2007. U.S. Court of Appeals for Veterans Claims. The U.S. Court of Appeals for Veterans Claims was established by the Veterans' Judicial Review Act of 1988. The Court is an independent judicial tribunal with exclusive jurisdiction to review decisions of the Board of Veterans' Appeals. It has the authority to decide all relevant questions of law; interpret constitutional, statutory, and regulatory provisions; and determine the meaning or applicability of the terms of an action by the Department of Veterans Affairs (VA). It is authorized to compel action by the VA. It is authorized to hold unconstitutional or otherwise unlawful and set aside decisions, findings, conclusions, rules and regulations issued or adopted by the Department of Veterans Affairs or the Board of Veterans' Appeals. The Court currently occupies leased facilities near Judiciary Square in the District of Columbia and is searching for a permanent location. The Court's major operational initiative is its transition to an electronic case filing system, which is also funded through this appropriation. Cemeterial Expenses, Army. The Secretary of the Army is responsible for the administration, operation and maintenance of Arlington National Cemetery and the Soldiers' and Airmen's Home National Cemetery. In addition to its principal function as a national cemetery, Arlington is the site of approximately 3,100 non- funeral ceremonies each year and has approximately 4,000,000 visitors annually. Armed Forces Retirement Home (AFRH). The Armed Forces Retirement Home account provides funds to operate and maintain the Armed Forces Retirement Home in Washington, DC (also known as the United States Soldiers' and Airmen's CRS-22 Home), and the Armed Forces Retirement Home in Gulfport, Mississippi (originally located in Philadelphia, PA, and known as the United States Naval Home). These two facilities provide long-term housing and medical care for approximately 1,600 needy veterans. The appropriation is not drawn from the general treasury, but rather comes from a special trust fund that is maintained through gifts, bequests, and a $0.50 per month assessment on the pay of active duty enlisted military personnel and warrant officers. The Gulfport campus, encompassing a 19-story living accommodation and medical facility tower, was severely damaged by Hurricane Katrina at the end of August, 2005, and is not currently in use. Four hundred fourteen of the 583 residents then occupying the facility were transferred to the Washington, DC, location immediately after the storm. CRS-23 Appendix A. Consolidated Funding Tables Table 6a. DOD Military Construction (budget authority in $000) FY2006 FY2007 Account House Senate Cont. Res. Enacted Request Military Construction, Army 1,757,507 2,059,762 1,756,298 2,137,822 2,013,000 Emergency Appropriations -- -- -- 34,800 -- Rescissions (19,746) -- (43,348) (43,348) -- Rescissions (Emerg. Approps.) -- -- -- (125,800) -- Emerg. Approps. 187,100 -- -- -- -- (P.L. 109-234) Total 1,924,861 2,059,762 1,712,950 2,003,474 2,013,000 Military Construction, 1,145,570 1,162,038 1,193,834 -- 1,129,000 Navy and Marine Corps Rescissions (50,037) -- (38,000) -- -- Emerg. Approps. 291,219 -- -- -- -- (P.L. 109-148) Emerg. Approps. 44,770 -- -- -- -- (P.L. 109-234) Total 1,431,522 1,162,038 1,155,834 1,200,065 1,129,000 Military Construction, 1,275,645 1,156,148 1,187,550 -- 1,083,000 Air Force Rescissions (29,100) -- (2,694) -- -- Emerg. Approps. 52,612 -- -- -- -- (P.L. 109-148) Emerg. Approps. 125,000 -- -- -- -- (P.L. 109-234) Rescissions -- -- -- (10,800) -- (Emerg. Approps.) Total 1,424,157 1,156,148 1,184,856 1,181,575 1,083,000 Military Construction, 998,766 1,208,198 1,107,606 1,061,395 1,127,000 Defense-wide Emergency Appropriations -- -- -- 100,886 -- Rescissions (20,000) -- (110,229) (124,065) -- Emerg. Approps. 45,000 -- -- -- -- (P.L. 109-148) Emerg. Approps. 20,600 -- -- -- -- (P.L. 109-234) Total 1,044,366 1,208,198 997,377 1,038,216 1,127,000 Total, Active components 5,824,906 5,586,146 5,051,017 5,423,330 5,352,000 CRS-24 FY2006 FY2007 Account House Senate Cont. Res. Enacted Request Military Construction, 517,919 473,197 512,873 539,804 473,000 Army National Guard Rescissions -- -- -- (2,129) -- Emerg. Approps. 374,300 -- -- -- -- (P.L. 109-148) Emerg. Approps. 210,071 -- -- -- -- (P.L. 109-234) Total 1,102,290 473,197 512,873 537,675 473,000 Military Construction, 312,956 125,788 207,088 252,834 126,000 Air National Guard Rescissions (13,700) -- -- -- -- Emerg. Approps. 35,000 -- -- -- -- (P.L. 109-148) Emerg. Approps. 5,800 -- -- -- -- (P.L. 109-234) Total 340,056 125,788 207,088 252,834 126,000 Military Construction, 151,043 166,487 167,774 191,450 166,000 Army Reserve Total 151,043 166,487 167,774 -- 166,000 Military Construction, 46,395 48,408 55,158 48,408 43,000 Naval Reserve Rescissions (66,090) -- -- -- -- Emerg. Approps. 120,132 -- -- -- -- (P.L. 109-148) Emerg. Approps. 24,270 -- -- -- -- (P.L. 109-234) Total 124,707 48,408 55,158 48,408 43,000 Military Construction, 104,824 44,936 56,836 44,936 45,000 Air Force Reserve Rescissions (13,815) -- -- -- -- Total 91,009 44,936 56,836 44,936 45,000 Total, Reserve components 1,809,105 858,860 999,729 1,075,303 853,000 Total, Military Construction 7,634,011 6,444,962 6,050,746 6,498,633 6,205,000 NATO Security Investment 204,789 220,985 200,985 205,985 204,789 Program Rescissions (30,000) -- -- -- -- Total 174,789 220,985 200,985 205,985 204,789 Family Housing Construction, 544,140 594,991 578,791 578,781 579,000 Army Rescissions (16,000) -- -- -- -- Total 528,140 594,991 578,791 578,781 579,000 CRS-25 FY2006 FY2007 Account House Senate Cont. Res. Enacted Request Family Housing Ops and Debt, 795,953 676,829 674,657 675,617 671,000 Army Family Housing Construction, 216,753 305,071 308,956 305,071 305,000 Navy and Marine Corps Emerg. Approps. 86,165 -- -- -- -- (P.L. 109-148) Total 302,918 305,071 308,956 305,071 305,000 Family Housing Ops and Debt, 582,773 509,126 509,126 498,525 505,000 Navy and Marine Corps Emerg. Approps. 48,889 -- -- -- -- (P.L. 109-148) Total 631,662 509,126 509,126 498,525 505,000 Family Housing Construction, 1,090,868 1,183,138 1,169,138 1,182,138 1,168,000 Air Force Rescissions (43,900) -- (66,200) (66,200) -- Emerg. Approps. 278,000 -- -- -- -- (P.L. 109-148) Total 1,368,868 1,183,138 1,102,938 1,115,938 1,168,000 Family Housing Ops and Debt, 759,270 755,071 755,071 755,071 750,000 Air Force Emerg. Approps. 47,019 -- -- -- -- (P.L. 109-148) Total 806,289 755,071 755,071 755,071 750,000 Family Housing Construction, 0 8,808 8,808 8,808 9,000 Defense-wide Family Housing Ops and Debt, 45,927 48,506 48,506 48,506 49,000 Defense-wide DOD Family Housing 45,927 57,314 57,314 57,314 45,927 Improvement Fund Total, Family Housing 4,482,232 4,092,848 3,998,161 3,997,625 4,081,927 Chemical Demilitarization 0 130,993 90,993 140,993 131,000 Construction, Defense-wide Base Realignment and Closure BRAC, 1990 252,279 191,220 216,220 191,220 252,279 BRAC, 2005 1,489,421 5,626,223 5,309,876 5,237,100 2,489,421 Total 1,741,700 5,817,443 5,546,096 5,428,320 2,741,700 Grand Total, MilCon & FH 14,032,732 16,707,231 15,866,981 16,271,556 13,364,416 CRS-26 Table 6b. DOD Basic Allowance for Housing (budget authority in $000) FY2006 FY2007 House Senate Cont. Res. Enacted Request Army 3,880,723 3,715,905 3,687,905 3,715,905 3,880,723 Navy 3,511,570 4,185,061 4,135,061 4,185,061 3,511,570 Marine Corps 1,166,686 1,351,921 1,350,921 1,351,921 1,166,686 Air Force 3,162,073 2,979,327 2,934,327 -- -- Emerg. Approps. 6,526 -- -- -- -- (P.L. 109-148) Total 3,168,599 2,979,327 2,934,362 2,979,327 3,168,599 Army National Guard 444,819 469,109 469,109 469,109 -- Emerg. Approps. 32,294 -- -- -- -- (P.L. 109-148) Total 477,113 469,109 469,109 469,109 477,113 Air National Guard 238,396 277,533 277,533 277,533 -- Emerg. Approps. 10,289 -- -- -- -- (P.L. 109-148) Total 248,685 277,533 277,533 277,533 248,685 Army Reserve 306,642 347,607 347,607 347,607 -- Emerg. Approps. 361 -- -- -- -- (P.L. 109-148) Total 307,003 347,607 347,607 347,607 307,003 Naval Reserve 189,141 208,838 208,838 208,838 -- Emerg. Approps. 1,053 -- -- -- -- (P.L. 109-148) Total 190,194 208,838 208,838 208,838 190,194 Marine Corps Reserve 40,134 43,082 43,082 43,082 40,134 Air Force Reserve 69,357 76,218 76,218 76,218 -- Emerg. Approps. 85 -- -- -- -- (P.L. 109-148) Total 69,442 76,218 76,218 76,218 69,442 Total 13,060,149 13,654,601 13,530,636 13,654,601 13,060,149 Note: Reserve Component (Reserve and National Guard) BAH is not listed as a separate line item in the Senate Committee on Appropriations Report. CRS-27 Table 6c. DOD Facilities Sustainment, Restoration, & Modernization (budget authority in $000) FY2006 FY2007 House Senate Conf. Enacted Request Army 1,832,607 1,810,774 1,810,774 1,780,774 -- Navy 1,331,521 1,201,313 1,201,313 1,208,313 -- Emerg. Approps. 215,499 -- -- -- -- (P.L. 109-148) Total 1,547,020 1,201,313 1,201,313 1,201,313 -- Marine Corps 548,420 473,141 473,141 473,141 -- Air Force 1,827,246 1,684,019 1,684,019 1,511,019 -- Emerg. Approps. 69,005 -- -- -- -- (P.L. 109-148) Total 1,896,251 1,684,019 1,684,019 1,511,019 -- Defense-Wide 115,731 86,386 86,386 86,386 -- Emerg. Approps. 5,238 -- -- -- -- (P.L. 109-148) Total 120,969 86,386 86,386 86,386 -- Army National Guard 392,579 387,882 387,882 387,882 -- Emerg. Approps. 49,217 -- -- -- -- (P.L. 109-148) Total 441,796 387,882 387,882 387,882 -- Air National Guard 177,993 255,322 255,322 175,122 -- Emerg. Approps. 13,557 -- -- -- -- (P.L. 109-148) Total 191,550 255,322 255,322 175,122 -- Army Reserve 202,326 215,890 215,890 215,890 -- Emerg. Approps. 1,128 -- -- -- -- (P.L. 109-148) Total 203,454 215,890 215,890 215,890 -- Naval Reserve 67,110 52,136 52,136 101,524 -- Emerg. Approps. 310,024 -- -- -- -- (P.L. 109-148) Total 377,134 52,136 52,136 101,524 -- Marine Corps Reserve 10,004 9,579 9,579 9,579 -- Emerg. Approps. 1,094 -- -- -- -- (P.L. 109-148) Total 11,098 9,579 9,579 9,579 -- Air Force Reserve 49,860 59,849 59,849 59,849 -- Emerg. Approps. 1,917 -- -- -- -- (P.L. 109-148) Total 51,777 59,849 59,849 59,849 -- Total 7,222,076 6,236,291 6,236,291 6,009,479 -- Note: Defense-Wide FSRM is not broken out in the Senate report and is estimated. CRS-28 Table 6d. DOD Environmental Remediation (budget authority in $000) FY2006 FY2007 House Senate Conf. Enacted Request Army 403,786 413,794 413,794 413,794 -- Navy 302,222 304,409 304,409 304,409 -- Air Force 402,396 423,871 423,871 423,871 -- Defense-Wide 27,885 18,431 18,431 18,431 -- Formerly Used Defense Sites 254,352 242,790 257,790 257,790 -- (FUDS) Total 1,390,641 1,403,295 1,418,295 1,418,295 -- Table 6e. DOD Health Program (budget authority in $000) FY2006 FY2007 House Senate Conf. Enacted Request Operation and Maintenance 19,106,789 20,498,163 20,218,205 20,544,605 -- Rescissions -- -- (40,042) -- -- Emerg. Approps. 120,000 -- -- -- -- (P.L. 109-148) Emerg. Approps. 172,958 -- -- -- -- (P.L. 109-148) Total 19,399,747 20,498,163 20,178,163 20,544,605 -- Procurement 375,328 396,355 402,855 397,355 -- Emerg. Approps. 28,592 -- -- -- -- (P.L. 109-148) Total 403,920 396,355 402,855 397,355 -- Research and Development 536,883 130,603 444,103 467,903 -- Total, Defense Health 20,340,550 21,025,121 21,025,121 21,409,863 -- Table 6f. DOD Military Totals (budget authority in $000) FY2005 FY2006 Account House Senate Conf. Enacted Request Total, Department of Defense, Military New Budget Authority 56,046,148 59,026,539 58,077,324 58,763,794 -- CRS-29 Table 7. Related Agencies (budget authority in $000) Account FY2006 FY2007 House Senate Conf. Enacted Request American Battle Monuments Commission Salaries and Expenses 35,888 35,838 37,088 37,088 37,000 Foreign Currency Fluctuations 15,098 4,900 4,900 4,900 5,000 Total 50,986 40,738 41,988 41,988 42,000 U.S. Court of Appeals for Veterans Claims Salaries and Expenses 18,607 19,790 19,790 19,790 20,100 Department of Defense-Civil Cemeterial Expenses, Army 28,760 26,550 26,550 26,550 28,760 Armed Forces Retirement Home Operation and Maintenance 56,463 54,846 54,846 54,846 -- Capital Program 1,236 -- -- -- -- Emerg. Approps. 65,800 -- -- -- -- (P.L. 109-148) Emerg. Approps. 176,000 -- -- -- -- (P.L. 109-234) Total 299,499 54,846 54,846 54,846 299,499 Total, Agencies 397,852 141,924 143,174 143,174 390,359 CRS-30 Appendix B. Additional Resources Budget CRS Report RL30002, A Defense Budget Primer, by Mary T. Tyszkiewicz and Stephen Daggett. CRS Report 98-720, Manual on the Federal Budget Process, by Robert Keith and Allen Schick. Selected Websites House Committee on Appropriations [http://appropriations.house.gov/] Senate Committee on Appropriations [http://appropriations.senate.gov/] House Committee on Armed Services [http://www.house.gov/hasc/] Senate Committee on Armed Services [http://armed-services.senate.gov/] House Committee on Veterans Affairs [http://veterans.house.gov/] Senate Committee on Veterans Affairs [http://veterans.senate.gov/] Commission on Review of Overseas Military Facility Structure of the United States (Overseas Basing Commission) [http://www.obc.gov/] CRS Appropriations Products Guide [http://www.crs.gov/products/appropriations/apppage.shtml] CRS Multimedia Library [http://www.crs.gov/products/multimedia/multimedialibrary.shtml] Congressional Budget Office [http://www.cbo.gov/] Defense Base Closure and Realignment Commission (BRAC Commission) [http://www.brac.gov] Government Accountability Office [http://www.gao.gov/] ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33427