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*January 2000*

**FACTS ABOUT THE DEPARTMENT OF VETERANS AFFAIRS**

The Department of Veterans Affairs (VA) was established March 15, 1989.
It succeeded the Veterans Administration and has responsibility for
providing federal benefits to veterans and their dependents. Headed by
the Secretary of Veterans Affairs, VA is the second largest of the 14
Cabinet departments and operates nationwide programs of health care,
assistance services and national cemeteries.

The veteran population is estimated at 24.8 million, as of July 1, 1999.
Nearly 80 of every 100 living veterans served during official periods of
armed hostilities. Altogether, almost one-third of the nation\'s
population \-- approximately 70 million persons who are veterans,
dependents or survivors of deceased veterans \-- are potentially
eligible for VA benefits and services.

Care for veterans and dependents spans centuries. The last dependent of
a Revolutionary War veteran died in 1911; the War of 1812\'s last
dependent died in 1946; the Mexican War\'s, in 1962. There are widows
and children of Civil War and Indian War veterans who still draw VA
benefits. Some 815 children and widows of Spanish-American War veterans
are receiving VA compensation or pension benefits.

VA\'s fiscal year 2000 appropriation is \$44.3 billion \-- \$23.4
billion for benefit programs and \$19.4 billion for medical programs.
The Administration\'s fiscal year 1999 appropriation was \$43.7 billion.
Fifty-four percent of outlays will go for direct payments such as
compensation, pension and education benefits; 43 percent is targeted for
medical care; less than one percent is for construction of hospitals,
national cemeteries and other programs; and 2 percent is for general
operating expenses.

Today, VA provides the world\'s most comprehensive and diverse programs
of benefits for veterans and dependents.

**[COMPENSATION AND PENSION]{.underline}**

About 2.7 million veterans receive disability compensation or pension
payments from VA. Some 619,291 widows, children and parents of deceased
veterans are paid survivor compensation or death pension benefits, as of
November 1998. Among them are 130,288 survivors of Vietnam Era veterans
and 310,708 survivors of World War II veterans. VA disability and death
compensation and pension payments are expected to exceed \$21.5 billion
in fiscal year 2000.

**[EDUCATION AND TRAINING]{.underline}**

Since 1944, when the first GI Bill became law, more than 20.7 million
beneficiaries have participated in GI Bill education and training
programs. This includes 7.8 million World War II veterans, 2.4 million
Korean Conflict veterans, and 8.2 million Post-Korean and Vietnam Era
veterans and active-duty service personnel.

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VA Facts \-- Page 2

Proportionally, Vietnam Era veterans have been the greatest participants
in GI Bill training. About 62 percent of those eligible took training,
compared with 50.5 percent for World War II veterans and 43.4 percent
for Korean Conflict veterans.

The All-Volunteer Force Educational Assistance Program pays for
veterans, service members and people in the Selected Reserve who train
under the Montgomery GI Bill. In 1999, training went to 288,052 veterans
and active-duty personnel, and 73,580 reservists and National Guardsmen.
In 2000, trainees are expected to number 279,100 veterans and
active-duty members and 71,300 reservists and Guardsmen. VA also has
assisted in the education of more than 730,000 dependents of veterans
whose deaths or permanent and total disabilities were service-connected.
The cost of educational benefits has totaled more than \$73 billion.

**[MEDICAL CARE]{.underline}**

Perhaps the most visible of all VA benefits and services is VA health
care.

From 54 hospitals in 1930, VA\'s health-care system has grown to 172
medical centers, with at least one in each of the 48 contiguous states,
Puerto Rico and the District of Columbia. VA operates more than 600
ambulatory care and community-based outpatient clinics; 132 nursing
homes, 40 domiciliaries and 73 comprehensive home-care programs. VA
health-care facilities provide a broad spectrum of medical, surgical and
rehabilitative care.

Over the last three years, VA has restructured its medical system into
22 integrated networks. These networks pool resources to meet local
needs in the most cost-effective manner, while permitting more veterans
to receive a wider array of care.

In fiscal year 2000, VA will treat about 673,000 patients in VA
hospitals, 111,000 in nursing homes and 26,000 in domiciliaries. VA\'s
outpatient clinics will register approximately 37.6 million visits. More
than 3.6 million people will receive care in all VA health-care
facilities this fiscal year. Over a six-year period (recognizing that
everyone does not become ill every year), VA cared for 4.7 million
different veterans. VA is used by more than 40 percent of its priority
target group of service-connected and low-income veterans.

VA manages the largest medical education and health professions training
program in the United States. VA medical centers are affiliated with 107
medical schools, 55 dental schools and more than 1,200 other schools
across the country. More than half of the physicians practicing in the
United States have had part of their professional education in the VA
health-care system. Each year, about 91,000 health professionals receive
training in VA medical centers.

VA\'s medical system also serves as a backup to the Defense Department
during national security contingencies, for VA internal emergencies and
as a federal support organization for major catastrophic disasters.

Since 1979, VA has operated Readjustment Counseling Service (RCS) Vet
Centers, which provide psychological counseling for war-related trauma,
community outreach, case management and referral activities, and
supportive social services to veterans and family members. Currently,
there are 206 Vet Centers.

Since the program began, about 1.4 million veterans have visited the
centers 10 million times, and another 1.2 million visits were made by
family members and friends. Eligibility is open to any veteran who
served in the military in a combat theater in any war, or in any area
during a period in which armed hostilities occurred. Vet Centers also
provide trauma counseling to veterans who were sexually assaulted and/or
harassed while on active duty.

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VA Facts \-- Page 3

VA conducts a variety of special programs to assist homeless veterans.
Both alcohol/drug rehabilitation and post-traumatic stress disorder
programs have been expanded in recent years, along with attention to
environmental agents.

Indispensable to providing America\'s veterans with quality medical care
are the more than 105,000 volunteers in VA\'s Voluntary Service who
donate nearly 14 million hours of service each year to bring
companionship and additional care to hospitalized veterans.

**[RESEARCH]{.underline}**

While providing high quality health care to the nation\'s veterans, VA
also conducts an array of research activities on some of the most
difficult challenges facing medical science today. VA has become a world
leader in such research areas as aging, women veterans\' health
concerns, AIDS, post-traumatic stress disorder and other mental health
issues. VA research has improved medical care not only for veterans but
also for the population in general.

VA researchers played key roles in developing the cardiac pacemaker; the
CT scan; magnetic source imaging, which permits safe removal of brain
tumors; and in improving artificial limbs. The first kidney transplant
in the United States was performed at a VA medical facility, and the
first successful drug treatments for high blood pressure and
schizophrenia were pioneered by VA researchers. The \"Seattle Foot\" was
created by VA to give amputees the push-off needed to run and jump, as
well as walk. VA contributions to medical knowledge have won VA
scientists many prestigious awards, including the Nobel Prize.

Seventy-five percent of VA researchers are clinicians. Because of their
dual roles, VA research can immediately benefit patients. Functional
electrical stimulation, a technology using controlled electrical current
to activate paralyzed muscles, is being developed at VA clinical
facilities and laboratories throughout the country. Through this
technology, paraplegic patients have been able to stand and, in some
instances, walk short distances and climb stairs. Patients with
quadriplegia are able to use their hands to grasp objects.

Special VA centers nationwide conduct research on AIDS, alcoholism,
aging, rehabilitation and schizophrenia. Multi-center clinical trials
investigate the best therapy for various conditions, such as aspirin
therapy for heart patients, surgical treatment to reduce risk of stroke,
and treatment options for prostate cancer.

Post-traumatic stress disorder and Agent Orange exposure, research areas
resulting from the Vietnam experience, are continuing with new twists
added from the Gulf War. Researchers are now examining the early effects
of war trauma and gender differences. VA is involved in a number of Gulf
War-related research projects and has established three environmental
hazards research centers focusing on the possible health effects of
environmental exposures of Gulf War veterans. In 1996, VA established a
research center in Louisville, Ky., to investigate potential
environmental reproductive hazards of military service.

**[HOME LOAN ASSISTANCE]{.underline}**

From 1944, when this program was established as part of the original GI
Bill, through December 1999, about 16.2 million VA home loan guarantees
have been issued, with a total valued of \$661 billion.

In fiscal year 1999, VA guaranteed 485,610 loans valued at \$54 billion
and assisted 496 disabled veterans with grants totaling \$19.9 million
for specially adapted housing.

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VA Facts \-- Page 4

**[INSURANCE]{.underline}**

VA operates one of the largest life insurance programs in the world and
the fourth largest in the United States. VA administers six life
insurance programs under which 2.2 million policies, with a face value
of \$24.1 billion, remained in force at the end of fiscal year 1998. In
addition, VA supervises the Servicemen\'s Group Life Insurance and the
Veterans\' Group Life Insurance programs, which provide some \$480
billion in insurance coverage to approximately three million veterans,
active-duty members, reservists and Guardsmen. VA will return almost
\$751 million to 1.9 million veterans holding certain in-force VA life
insurance policies.

**[VA NATIONAL CEMETERY ADMINISTRATION]{.underline}**

Since 1973, when most Army-administered national cemeteries were
transferred to VA, available grave space within the National Cemetery
Administration has doubled to nearly two million sites. Currently, VA
maintains 117 national cemeteries in 41 states and Puerto Rico.

In July 1999, VA dedicated the Saratoga National Cemetery near Albany,
N.Y. In September 1999, VA dedicated the Abraham Lincoln National
Cemetery near Joliet, Ill. VA will open the Dallas-Fort Worth National
Cemetery, and the Ohio Western Reserve National Cemetery near Cleveland
during the year 2000.

There were 77,680 interments in VA national cemeteries in fiscal year
1999 and that number is expected to increase to more than 110,000 in
2008. In fiscal year 1999, VA provided 345,389 headstones or markers for
the unmarked graves of eligible veterans. Since taking over the cemetery
program in 1973, VA has provided more than 7 million headstones and
markers for veterans' graves.

VA administers the Presidential Memorial Certificate program. The
engraved paper certificates, signed by the President, commemorate
honorably discharged, deceased veterans and are presented to the
veteran\'s next of kin and loved ones. VA provided 321,999 certificates
in fiscal year 1999. VA has provided more than 2.6 million of the
certificates since it began operating national cemeteries.

VA also administers the State Cemetery Grants Program, a grant program
between federal and state governments established to complement national
cemeteries. From 1980 through fiscal year 1998, VA split the grant costs
with state governments. VA now provides 100 percent of the funds to
construct cemeteries operated and maintained by states on state-provided
land. Since the program began in 1980, more than \$62 million has been
awarded to establish, expand or improve 38 veterans cemeteries in 20
states and Guam. Six new VA-supported state cemeteries are under
construction. In fiscal year 1999, state cemeteries that received VA
grants provided 13,392 burials for eligible veterans and dependents.
Since the program began, 142,718 veterans and their dependents have been
buried in the VA-supported state cemeteries.

**[VA EMPLOYEES]{.underline}**

As of December 31, 1999, 218,319 employees were on VA rolls. Among all
departments and agencies of the federal government, only the Department
of Defense has a larger work force.

Of the total number of VA employees, 198,207 were in the Veterans Health
Administration, 11,501 in the Veterans Benefits Administration, 1,379 in
the National Cemetery System, 3,366 in the Veterans Canteen Service and
365 in the Revolving Supply Fund. The remainder \-- 3,501 employees \--
were in various staff offices. Approximately 56.5 percent of VA
employees are women.

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VA Facts \-- Page 5

VA is a leader in hiring veterans. About 53.9 percent of all male
employees are veterans. As of December 31, 1999, VA had 7,551 women
employees who served in the U.S. armed forces. Some 67.1 percent of male
and 40.6 percent of female veteran employees served during the Vietnam
Era. About 6.7 percent of all VA employees are disabled veterans.

**Chronological History of the Department of Veterans Affairs**

1930\...\.... The Veterans Administration was created by Executive Order
5398, signed by President Herbert Hoover on July 21. At that time, there
were 54 hospitals, 4.7 million living veterans, and 31,600 employees.

1933\...\.... The Board of Veterans Appeals was established.

1944\...\.... On June 22, President Roosevelt signed the \"Servicemen\'s
Readjustment Act of 1944\" (Public Law 346, passed unanimously by the
78th Congress), more commonly known as "The GI Bill of Rights," offering
home loan and education benefits to veterans.

1946\...\.... The Department of Medicine & Surgery was established,
succeeded in 1989 by the Veterans Health Services and Research
Administration, renamed the Veterans Health Administration in 1991.

1953\...\.... The Department of Veterans Benefits was established,
succeeded in 1989 by the Veterans Benefits Administration.

1973\...\.... The National Cemetery System \-- renamed the National
Cemetery Administration in 1998 \-- was created when Congress
transferred 82 national cemeteries from the Department of the Army to
VA. The Army kept Arlington National Cemetery and the United State
Soldiers\' and Airmen\'s Home National Cemetery in Washington, D.C.

1988\...\.... Legislation to elevate VA to Cabinet status was signed by

President Reagan.

1989\...\.... On March 15, VA became the 14th Department in the
President\'s Cabinet.

**[Secretaries of Veterans Affairs]{.underline} [Administrators of
Veterans Affairs]{.underline}**

Edward J. Derwinski\...\... 1989 - 1992 Frank T.
Hines\...\...\...\...\...\...\...\... 1930 - 1945

Jesse Brown\...\...\...\...\...\.....1993 - 1997 Omar
Bradley\...\...\...\...\...\...\...\.... 1945 - 1948

Togo D. West, Jr\...\...\...\.... 1998 - Carl R.
Gray\...\...\...\...\...\...\...\...\.... 1948 - 1953

Harvey V. Higley\...\...\...\...\...\..... 1953 - 1957

Sumner G. Whittier\...\...\...\...\.... 1957 - 1961

John S. Gleason\...\...\...\...\...\..... 1961 - 1964

William J. Driver\...\...\...\...\...\...\... 1965 - 1969

Donald E. Johnson\...\...\...\...\.... 1969 - 1974

Richard L. Roudebush\...\...\.... 1974 - 1977

Max Cleland\...\...\...\...\...\...\...\...\... 1977 - 1981

Robert P. Nimmo\...\...\...\...\...\..... 1981 - 1982

Harry N. Walters\...\...\...\...\...\...\... 1982 - 1986

Thomas K. Turnage\...\...\...\...\... 1986 - 1989

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