**Partial Elimination of Tax on Disabled Veterans (Concurrent Receipt)**

Responding to pressure from the discharge petition filed by Rep. Jim
Marshall (D-GA), the Congress passed a two-tier system in HR 1588 (the
National Defense Authorization Act of 2004) which will allow some
disabled veterans to receive tax-free Combat-Related Special
Compensation (CRSC) for those disabilities attributed to combat and
would permit a phase in of taxable military retirement benefits for
those rated by VA at 50% disabled or more. Veterans rated 40% disabled
or less who cannot prove that their disabilities were related to combat
will continue to pay the Disabled Veterans Tax, a dollar for dollar
offset of military retired pay and\
VA disability compensation. In addition, a commission would be
established to review the compensation paid to disabled veterans. The
President has signed the National Defense Authorization Act.

Democrats believe that it is unfair to pit one group of disabled
veterans against another or, as one veterans' representative put it,
"one limb against another." We will continue to press for legislation to
allow all military retirees to receive the retirement benefits they have
earned by years of service and just compensation for the disabilities
which were incurred during or aggravated by military service. The
discharge petition has [203 signatures]{.underline} as of November 24,
2003. The petition needs 218 signatures, for the complete elimination of
this unfair measure to be considered.

**VA Appropriations**

**Timeline on Funding Fiscal 2004 Veterans' Discretionary Programs**

[January 17, 2003:]{.underline} President makes request for funding
federal government

**\$28.1 billion in budget authority** (\$25.2 billion for medical care,
not including collections)

-request includes savings and revenues from new policy and legislative
proposals, including new user fees, higher copayments and restrictions
on access to long-term care services totaling \$1.4 billion

-savings from "management efficiencies" and delayed equipment purchases
comprise another \$1.1 billion of budget request

[February 11, 2003:]{.underline} Independent Budget co-authored by four
major veterans service organizations submits its budget for
discretionary programs for FY 2004

**\$31.0 billion in budget authority** (\$27.2 billion for medical care)

[February 28, 2003:]{.underline} House Veterans' Affairs Committee
submits Views & Estimates to House Budget Committee

**\$30.8 billion in budget authority** (\$27 billion for medical care)

[March 17, 2003:]{.underline} House Budget Committee approves H.Con.Res.
95

**\$27.3 billion in budget authority**

[March 20, 2003:]{.underline} House Veterans' Affairs Committee Chairman
Christopher Smith elicits a commitment from House Budget Chairman Jim
Nussle to accept Senate budget committee funding levels in conference
for mandatory and discretionary funding

[March 21, 2003:]{.underline} House approves H.Con.Res. 95

**\$28.2 billion in budget authority**

(note: restored \$14.6 billion cut out of mandatory spending, which
would have required VA Committee to identify savings over 10 years)

[April 11, 2003:]{.underline} H.Con.Res. 95 Conference Report approved
by Senate (House approved April 10)

**\$30 billion in budget authority**

[July 25, 2003:]{.underline} House approves H.R. 2861

**\$28.1 billion in budget authority** (\$25.2 billion for medical care,
not including collections)

-copayments for drugs and new enrollment fee are not authorized, but
funding is not restored

-management efficiencies assumed

[September 4, 2003:]{.underline} Senate Appropriators approve mark
\$1.57 billion above President's request

**\$30 billion in budget authority**

-\$1.3 billion to be designated emergency spending by President (won't
be available if no action taken by President)

-\$270 million from past years' funding

[September 9, 2003:]{.underline} Rep. Lane Evans and 120 Democrats send
letter to Speaker Hastert and Leader Pelosi asking for motion to
instruct conferees to seek \$1.8 billion additional funding (over H.R.
2861) for health care

[November 18, 2003]{.underline}: Senate approves S. 1584

**\$29.3 billion in budget authority** (\$26.8 billion for medical care,
not including collections)

-funding is direct appropriations (requirement for designating as
emergency spending was eliminated)

**As of November 25, 2003, the House and the Senate are in conference.
It is likely that VA/HUD will be part of a larger omnibus appropriation
package, rather than a stand alone appropriations bill.**

**Timeline on Emergency Supplemental Fiscal Year 2004**

[October 17, 2003]{.underline}: Senate approves S. 1689, Emergency
Supplemental for fiscal year 2004 including S. Amdt. 25 introduced by
Senator Christopher Bond and Barbara Mikulski which added \$1.3 billion
for veterans' health care.

[October 17, 2003]{.underline}: House approves H.R. 3289, Emergency
Supplemental for fiscal year 2004 without additional funding for
veterans' health care.

[October 21, 2003]{.underline}: House approves a Motion to Instruct
conferees offered by Mr. Obey. One provision in the motion asked House
conferees to recede to the Senate on S. Amdt. 25. Conferees appointed.

[October 30, 2003]{.underline}: House defeated a Motion to Recommit by
Mr. Obey which included instructions to add back \$1.3 billion for
veterans' health care and approved the Supplemental without additional
funding for veterans' health care.

[November 3, 2003:]{.underline} Senate passed Supplemental
Appropriations without the \$1.3 billion, but some conferees were
assured that these funds would be added to VA/HUD appropriation in
conference. Sent to President and became P.L. 108-106.

**[142 Members]{.underline} Have Kept Their Promise to America's
Veterans by Supporting Mandatory Funding for Veterans Health Care**

***Cosponsor H.R. 2318, the "Assured Funding for Veterans Health Care
Act of 2003"***

Thousands of young men and women in uniform are putting their lives on
hold and on the line every day in service to our country. When they
return home many will find VA hospitals inaccessible [because tens of
thousands of veterans are waiting more than six months for an
appointment at VA medical facilities]{.underline}. **These problems will
only be solved when Congress makes veterans a priority and ensures their
health care through mandatory funding.**

-   **HR 2318 would:**

    -   Improve access to health care

    -   Create a guaranteed funding stream for veterans' health care

    -   Improve funding for special VA programs such as post-traumatic
        stress disorder treatment, blind rehabilitation, spinal cord
        injury centers, homelessness, psychosocial rehabilitation and
        long-term care

The bill has garnered overwhelming support from veterans groups
including The American Legion, AMVETS, Blinded Veterans Association,
Disabled American Veterans, Military Order of the Purple Heart,
Paralyzed Veterans of America, Veterans of Foreign Wars, and Vietnam
Veterans of America.

For further information on H.R. 2318 bill please visit
<http://veterans.house.gov/democratic/hr2318/hr2318.htm>

**Competitive Sourcing**

All public-private competitions in the Veterans Health Administration
are on hold pursuant to a VA Office of General Counsel opinion and
administrative direction from the Deputy Secretary. The suspension of
competitive sourcing actions was based on an interpretation of a title
38 provision requiring specific authorization to spend funds for such
activities. The House Veterans' Affairs Committee is reviewing several
outsourcing actions completed prior to the suspension and has noted
anomalies in process and procedures.

**PUBLIC LAWS**

**P.L. 108-109 (H.R. 1516, the National Cemetery Expansion Act of
2003)** -- Authorizes six new national cemeteries to be established in
the following areas: Southeastern Pennsylvania; Birmingham, Alabama;
Jacksonville, Florida; Bakersfield, California; Greenville/Columbia,
South Carolina; and Sarasota County, Florida. These locations were based
on VA's latest burial needs assessment, which was updated to reflect
Census 2000 data. H.R. 1516 passed the House with a vote of 408-0 on
July 21, 2003. The Senate passed the bill with an amendment on October
17^th^ under Unanimous Consent (The Senate adopted the language of H.R.
1516 with an amendment to add the Sarasota County, Florida, cemetery.)
On October 29^th^ the House passed the amended bill with a vote of 412-0
and H.R. 1516 was signed by the President on November 11, 2003.

**RECENT BILLS PASSED BY THE HOUSE AND SENATE\
**

**S. 1156, Veterans Health Care, Capital Asset, and Business Improvement
Act of** **2003** -- On November 21, 2003, the House gave final approval
to a major veterans' health care bill (423-2) that authorizes several
major medical construction projects, improves employment practices for
Department of Veterans Affairs (VA) clinical personnel, extends some
veterans' eligibility for certain programs, and enhances specialized
services for seriously disabled veterans. [S. 1156 included many
provisions from H.R. 116, H.R. 1720, H.R. 2357, H.R. 2433, and H.R.
3260.]{.underline} *See attached blue sheet on S.1156 for more details
on the bill.*

**H.R. 1683, Veterans Cost-of Living Adjustment Act of 2003** -- Passed
by the House with a vote of 426-0 on May 22, 2003. This bill will
increase the amount of benefits paid to service-disabled veterans and
their survivors by 2.1% effective December 1, 2003 (for checks issued
January 1, 2004). The bill was passed by the Senate on November 21, 2003
by unanimous consent. The President is expected to sign the bill.

**H.R. 100, Servicemembers Civil Relief Act** -- Passed by the House
with a vote of 425-0 on May 7, 2003. This bill would modernize the
Soldiers and Sailors Civil Relief Act and would provide additional
protections from civil liability when servicemembers are called to
active duty. The bill was amended and passed by the Senate on November
21, 2003. It is expected to be acted upon when the House returns from
the Thanksgiving recess.

**H.R. 2297, as amended, Veterans Benefits Act of 2003** -- HR 2297 is a
compromise agreement that was carefully negotiated between the House and
Senate, and contains a number of important measures to improve a broad
range of veterans' benefits. Major provisions in the bill include:
permanent authorization of the VA home loan program for members of the
Guard and Reserve, as well as lowering their usage fees; elimination of
the 30-day internment requirement for former prisoners of war to be
presumptively service connected for psychiatric and other medical
conditions; authorization for certain children with spina bifida whose
parents were exposed to herbicides in Korea to qualify for VA benefits;
allows surviving spouses to remarry after age 57 without loss of
dependency and indemnity compensation, home loan and education benefits;
and increases the amount of educational assistance payable to the
spouses or surviving spouses and dependent children of veterans who are
either permanently and totally disabled or deceased.

The bill also contains a number of important measures that will increase
veterans education benefits, expand self-employment and small business
opportunities, clarify prohibitions against assignment of VA benefits
and provide valuable employment counseling and job search services to
servicemembers transitioning from the military to civilian life. On
November 20, 2003, H.R. 2297 passed the House by voice vote. The
President is expected to sign the bill. H.R. 2297 included many
provisions from S. 1132. *See attached blue sheet on H.R. 2297 for more
details on the bill.*

**H. Con. Res. 159, declaring Emporia, Kansas, to be the founding city
of the Veterans Day Holiday** -- Passed by the House (voice vote) on
September 30, 2003. The bill was received in the Senate and referred to
the Senate Committee on Veterans' Affairs. The resolution was agreed to
in the Senate without amendment and with a preamble by Unanimous Consent
on October, 31, 2003.

**RECENT BILLS PASSED BY THE HOUSE**

**H.R. 1460, the Veterans Entrepreneurship and Benefits Improvement Act
of 2003** -- Expands veterans' self-employment and small business
educational opportunities; authorizes a new federal procurement program
for service-disabled veteran small business owners in the form of
sole-source and restricted competition contracts; extends VA's specially
adapted housing grant; reinstates the VA's vendee loan program; and
authorizes accrued benefits claim process beyond the current two-year
limitation. Passed by the House with a vote of 421-0 on June 24, 2003.
The bill was received in the Senate and referred to the Senate Committee
on Veterans' Affairs. [Provisions from this bill were included in H.R.
2297, as amended, and passed by the House and Senate.]{.underline}

**H.R. 1720, Veterans Health Care Facilities Capital Improvement Act**
-- Appropriates a total of \$800 million for FY 2004 and \$600 million
for FY 2005 for major medical facility construction projects to improve,
renovate, replace, update, or establish patient care facilities of the
Department of Veterans Affairs in Chicago; San Diego; West Haven,
Connecticut; Columbus, Ohio; Pensacola, Florida; Charlotte, North
Carolina; Clark County, Nevada; and Aurora, Colorado. Additionally, this
bill would also raise the threshold for major construction projects from
\$4 million to \$6 million.

H.R. 1720 also includes provisions to rename the VA health care facility
in Chicago as the "Jesse Brown Department of Veterans' Affairs Medical
Center" and to rename the outpatient clinic in New London, Connecticut
as the "John J. McGuirk Department of Veterans Affairs Outpatient
Clinic."

[H.R. 1720 includes all the language from H.R. 116 (see
below).]{.underline}

H.R. 1720 includes provisions from H.R. 1585 which (1) establishes
within the Department of Veterans' Affairs (VA) an independent office to
oversee VA research compliance and assurance, promote responsible
research, and ensure the ethical treatment and safety of research
subjects; (2) establishes a Director of such office, whose duties shall
include the conduct of periodic inspections and evaluations of research
integrity at research facilities, the observation of external
accreditation site visits for human subjects and animal welfare, and
investigations of allegations of research improprieties, misconduct, and
non-compliance with policies and regulations; (3) establishes a
non-delegable communications requirement between the Director of the
Oversight Office and the VA Under Secretary for Health. It also empowers
the Director of the Oversight Office to take actions to suspend,
restrict or modify VA research if the safety of human research subjects
is deemed in jeopardy, or for other specified reasons. Passed by the
House with a vote of 417-0 on October 29, 2003. The bill was received in
the Senate and referred to the Senate Committee on Veterans' Affairs.

[Many of the provisions in H.R. 1720 were included in S. 1156 (see
above).]{.underline}

**H.R. 2357, Veterans Health Care Improvement Act of 2003** -- The
amendment provides for hospital and nursing home care and medical
services to certain Filipino WWII veterans of the Philippines
Commonwealth Army and former Philippines "New Scout" veterans who
permanently reside in the United States. It also allows the Secretary of
VA to appoint chiropractors to the Veterans Health Administration under
title 38, USC. Passed by the House (voice vote) on July 21, 2003. The
bill was received in the Senate and referred to the Senate Committee on
Veterans' Affairs. [Many of the provisions in H.R. 2357 were included in
S. 1156 (see above).]{.underline}

**H.R. 2433, Health Care for Veterans of Project 112/Project SHAD Act of
2003** -- Designates veterans who participated in a test conducted by
the Department of Defense Deseret Test Center from 1962 through 1973 as
"higher priority" for hospital care, medical services, and nursing home
care without any requirement for proof of service-connection. It also
contains provisions to alleviate the nursing shortage in VA hospitals by
allowing registered nurses who have accomplished the performance
elements of promotion to the next higher grade, regardless of whether or
not they hold a specific type of educational degree. Passed by the House
(voice vote) on September 10, 2003. The bill was received in the Senate
and referred to the Senate Committee on Veterans' Affairs. [Many of the
provisions in H.R. 2433 were included in S. 1156 (see
above).]{.underline}

**H.R. 2595, to restore the operation of the Native American Veteran
Housing Loan Program during fiscal year 2003 to the scope of the program
as in effect on September 20, 2002** -- Restores the pilot program of
home loans for Native Americans to the scope that was in effect on
September 30, 2002, and ratifies any home loans acted upon by the
Secretary of VA while the funding limitation was in effect. [Note: This
provision was included as section 603 of the emergency supplemental
appropriations bill for FY 2003]{.underline}**.** Passed by the House
(voice vote) on September 10, 2003. The bill was received in the Senate
and referred to the Senate Committee on Veterans' Affairs.

**H.Con.Res. 212, Recognizing the goals and ideals of the Year of the
Korean War Veterans -** Passed by the House with a vote of 408-0 on July
21, 2003. The bill was received in the Senate and referred to the Senate
Committee on Veterans' Affairs.

**RECENT BILLS REPORTED FAVORABLY TO THE FLOOR FROM FULL COMMITTEE
MARKUP**

**H.R. 116, the "Veterans' New Fitzsimons Health Care Facilities Act of
2003"** -- Authorizes the Secretary of Veterans Affairs to carry out a
major medical facility project at the site of the former Fitzsimons Army
Medical Center in Aurora, Colorado, in consultation with the Secretary
of Defense, and appropriates no more than \$300 million for the
completion of the project either through direct construction or capital
leasing. However, if the Secretary chooses to forego major construction,
the bill would authorize funding of only \$90 million over the same
period. [The entire language of H.R. 116 was included in H.R. 1720,
which was passed by House (see above).]{.underline}

**H.R. 1562, Veterans Health Care Cost Recovery Act of 2003 -**
Prohibits the absence of a participation agreement or other contractual
arrangement entered into by the Secretary of Veterans Affairs under a
health-plan contract or with a preferred provider organization from
being used to, or from operating to, prevent or reduce the amount of any
veterans\' medical care cost recovery or collection by the United
States. Mandates that whenever the Secretary furnishes care and services
to a person other than a veteran, the United States shall have the right
to recover the costs of such care and services in the same manner and to
the same extent as care and services provided to a veteran. On May 19,
2003, H.R. 1562 was reported by the Committee on Veterans' Affairs

\###