35–895 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–186 

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND 

RELATED AGENCIES APPROPRIATIONS BILL, 2008 

JUNE 11, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. EDWARDS, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 2642] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2008, and 

for other purposes. 

CONTENTS 

Page 

Purpose of the Bill ................................................................................................... 2 

Summary of Committee Recommendation ............................................................ 2 

Comparative Statement of New Budget Authority ............................................... 4 

Items of Interest ...................................................................................................... 11 

Department of Defense: 

Military Construction ....................................................................................... 15 

NATO Security Investment Program .............................................................. 20 

Family Housing Construction and Operation and Maintenance .................. 20 

Chemical Demilitarization Construction, Defense-Wide ............................... 24 

Department of Defense Base Closure Account 1990 ..................................... 25 

Department of Defense Base Closure Account 2005 ..................................... 27 

Administrative Provisions ................................................................................ 32 

Department of Veterans Affairs: 

Overview ............................................................................................................ 34 

Veterans Benefits Administration ................................................................... 36 

Veterans Health Administration ..................................................................... 40 

Departmental Administration ......................................................................... 47 

Administrative Provisions ................................................................................ 53 


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Related Agencies: 

American Battle Monuments Commission ..................................................... 55 

U.S. Court of Appeals for Veterans Claims .................................................... 56 

Cemeterial Expenses, Army ............................................................................ 57 

Armed Forces Retirement Home ..................................................................... 57 

General Provisions ................................................................................................... 58 

Changes in Application of Existing Law ................................................................ 59 

Appropriations Not Authorized by Law ................................................................. 62 

Transfer of Funds .................................................................................................... 62 

Rescissions ................................................................................................................ 64 

Constitutional Authority ......................................................................................... 64 

Comparison With the Budget Resolution .............................................................. 64 

Five-Year Projection of Outlays .............................................................................. 64 

Financial Assistance to State and Local Governments ........................................ 65 

Statement of General Performance Goals and Objectives .................................... 65 

Compliance with Rule XIII ..................................................................................... 65 

Earmarks .................................................................................................................. 65 

Full Committee Votes .............................................................................................. 66 

State Project List ..................................................................................................... 67 

Additional Views ...................................................................................................... 83 

PURPOSE OF THE BILL

The purpose of the bill is to support our military and their families and provide the benefits and medical care that our veterans 

have earned for their service. This is accomplished through the programs funded in the bill. Programs that provide the facilities and 

infrastructure needed to house, train, and equip our military personnel to defend this nation; both in the United States and abroad; 

programs that provide the housing and military community infrastructure that sustains quality of life for them and their families; 

and programs that allow the military to efficiently and effectively 

maintain a right-sized base structure. The bill also funds programs 

to ensure that all of our veterans receive the benefits and medical 

care that they have earned as a result of the sacrifices they have 

made in their service to our country. Finally, the bill funds four related agencies that provide support to our nation’s heroes; the 

American Battle Monuments Commission, Cemeterial Expenses, 

Army (Arlington Cemetery), the United States Court of Appeals for 

Veterans Claims, and the Armed Forces Retirement Home. 

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommends $109,231,766,000 in new budget authority for the programs and activities funded in the bill. This recommendation is an increase of $18,196,417,000 above the fiscal 

year 2007 enacted level and an increase of $4,000,000,000 above 

the President’s request. Included in this amount is $44,487,250,000 

in mandatory authority and $64,744,516,000 in discretionary authority. 

The Committee recommendation highlights the commitment to 

our servicemembers and their families and to our veterans. The bill 

includes an unprecedented increase in the Department of Veterans 

Affairs’ budget. The total funding level of $87,696,839,000 is a 12.8 

percent increase over the fiscal year 2007 enacted level. The Committee provides funding to increase support for benefits claims in 

order to reduce the claims processing backlog and length of time 

it takes to process an initial claim. The Committee provides increases for medical care funding for all veterans and provides additional funding in particular to areas that have been highlighted as 


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the signature injuries of Operation Enduring Freedom (OEF) and 

Operation Iraqi Freedom (OIF). The Committee is also concerned 

with the backlog in non-recurring maintenance and has provided 

additional resources to address this issue. Finally, the Committee 

is deeply concerned by recent reports that highlight the difficulties 

many veterans have in obtaining their benefits and medical care 

and strongly urges the Department of Defense and the Department 

of Veterans Affairs to make every effort to partner on the development of programs that will ensure a seamless transition. 

The bill also includes an unprecedented increase in the Department of Defense budget with a total funding level of 

$21,371,944,000. The programs funded in the bill for the Department of Defense address the numerous challenges we have asked 

our military to accomplish simultaneously. They support an increase in troop strength for both the Army and Marine Corps, continue the cleanup of military bases closed during Base Realignment 

and Closure rounds, resource the military’s global re-stationing 

plan, and ensure that our military personnel and their families’ quality of life is preserved within these plans. 

The following table compares amounts recommended in the bill 

to the President’s request and amounts appropriated in fiscal year 

2007: 


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ITEMS OF INTEREST

Long-term Challenges for Military Construction.—At 

$21,165,182,000, the fiscal year 2008 military construction and 

family housing request represents an unprecedented investment in 

facilities for the Armed Forces. Requests of this magnitude are likely for the next several years due to several major initiatives with 

military construction impacts, including: 

• Base Realignment and Closure/Integrated Global Presence 

and Basing Strategy.—The Department of Defense currently 

estimates that $30.8 billion will be required from 2006 through 

2011 to complete the Base Realignment and Closure (BRAC) 

2005 round, which includes the Integrated Global Presence and 

Basing Strategy (IGPBS) initiative to re-station 70,000 troops 

and their families from Europe and Korea to the United 

States. This estimate is $8 billion higher than that given by 

the Department just one year ago. The Committee is concerned 

that even this increased estimate is understated, due to the 

unrealistic construction inflation estimate used by the Administration; 

• Growing the Force.—The Administration has proposed to 

increase the permanent authorized end-strength of the active 

Army by 65,000 soldiers, and the Marine Corps by 27,000 marines, over the next five years. The Administration also has 

proposed to increase the Army National Guard and Army Reserve by a combined 9,200 personnel. The Administration’s fiscal year 2007 supplemental and fiscal year 2008 requests (including the Global War on Terrorism request) include over $3.7 

billion for these initiatives. The Committee also notes the Congressional Budget Office’s recent estimate that up to $15.7 billion in military construction and family housing will be required to completely implement Growing the Force; and 

• Overseas Initiatives.—The Department continues to pursue 

a number of initiatives in basing overseas. The United States 

reached an agreement with the Government of Japan in 2006 

to relocate 8,000 marines and 9,000 dependents from Okinawa 

to Guam. The Japanese government has agreed to fund approximately $6 billion of the estimated $10 billion in construction required for the move, leaving $4 billion in U.S.-funded 

construction. In addition, the Army, Navy, and Air Force are 

pursuing an enhanced presence in Guam, which could add another $4 billion or more to the cost of the buildup. In Korea, 

the Department continues to consolidate U.S. forces in hubs to 

the south of Seoul; although the Republic of Korea will provide 

the largest share of costs, current estimates call for $750 million in additional U.S.-funded construction. In the Middle East, 

the Department intends to continue the buildup of infrastructure in Persian Gulf nations, while establishing ‘‘enduring’’ locations for U.S. forces in Afghanistan and Djibouti. The Department will also stand up a new Africa Command in 2008, 

which could result in new military construction requirements 

within the African theater. Finally, the Department will continue the establishment of numerous forward operating sites 

and cooperative security locations throughout the European 

Command, Pacific Command, Central Command, and Southern 


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Command areas of responsibility. Though these sites are austere and individually require relatively little in construction, 

their cumulative requirements are significant. 

A number of other initiatives will also add to growing requirements for military construction. For example, the Army, Marine 

Corps, and Air Force all have large outstanding requirements to 

modernize unaccompanied housing. Special Operations Command 

estimates that $1.7 billion will be required through fiscal year 2013 

to support growth, transformation, and current operations. The Air 

Force currently estimates that over $1 billion in construction is required to bed-down future deliveries of aircraft. The National Security Agency, Defense Logistics Agency, and Department of Defense 

Education Activity all have significant needs for recapitalization. 

The cumulative impact of these initiatives and requirements point 

to a very challenging five-to-ten year period in the construction and 

maintenance of military facilities. It is therefore the Committee’s 

responsibility to continue exercising active oversight of planning 

and budgeting for military construction and family housing. 

Incremental Funding of Military Construction Projects.—The 

Committee will continue to exercise its prerogative to recommend 

incremental funding of military construction projects where appropriate, in accordance with authorizing legislation. The Committee 

notes that several projects submitted in the fiscal year 2008 request could have been requested as incremented projects, but for 

the Office of Management and Budget’s (OMB) insistence that only 

those projects subjectively determined by OMB to have a ‘‘major 

national security impact’’ will be requested as such. 

Planning for Growing the Force.—The Committee remains concerned about the ability of the Army and Marine Corps to adequately plan and execute military construction and family housing 

requirements for the Administration’s proposed end-strength increases over the next five years, especially in the context of concurrent base realignment and closure actions. The manner in which 

budget requests for Growing the Force have been presented and 

justified thus far give the impression of a rushed, improvisational 

planning process. With both the fiscal year 2007 supplemental and 

fiscal year 2008 requests, the Army and Marine Corps have submitted large requests for unspecified construction and then scrambled to backfill these lump sum requests with specific locations and 

projects. Despite frequently expressed concerns about this process, 

the Committee has been supportive of Growing the Force, but also 

believes that an independent review of this planning is needed. The 

Committee therefore directs the General Accountability Office 

(GAO) to review the planning and budgeting process for Growing 

the Force requirements and report its findings to the Committee by 

March 15, 2008. This report may include a review of models and 

processes used to generate construction requirements and costs, the 

process for determining where Growing the Force projects will be 

located, the use of interim facilities, the impact of base realignment 

and closure requirements on Growing the Force, environmental impact issues, and any other information that GAO considers relevant. 

Impact of Growing the Force on Defense-Wide Military Construction.—The Committee believes that the proposal to increase the 

end-strength of the active Army and Marine Corps will have a subVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

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stantial impact on construction requirements for Defense Agencies 

and activities that fall under the Military Construction, DefenseWide account, such as the Tricare Management Activity, the Defense Logistics Agency, and the Department of Defense Education 

Activity. The Committee therefore directs the Secretary of Defense 

to submit a report to the Committee providing estimates of Defense-Wide military construction requirements related to Growing 

the Force, and the extent to which these requirements are incorporated in the current Future Years Defense Plan. This report 

shall be submitted no later than October 1, 2007. 

Potential Missile Defense Sites in Central Europe.—The Committee believes that the construction requirements for any future 

missile defense sites in Central Europe should be incorporated into 

the Overseas Master Plan for European Command, and therefore 

directs that the appropriate data be incorporated into the plan 

upon the conclusion of any missile defense basing agreements with 

host nations. 

Impact of BRAC on Local School Districts.—The Committee remains concerned by the potential impact of the 2005 Base Realignment and Closure (BRAC) process on school districts in proximity 

to installations that will gain large numbers of additional military 

personnel and school-age dependents. The Committee is concerned 

that the influx of new students in these districts due to BRAC will 

strain the physical and operational capacities of local schools, resulting in a reduced quality of life for both military and civilian 

families. The Committee urges the Department of Defense to work 

closely with local school districts and base commands to accurately 

project the increases in school-age population near these installations and help these communities plan for the necessary infrastructure and operating costs to minimize the impact on educational 

quality. The Committee intends to continue monitoring this issue 

and work with the Department of Defense to identify possible remedies for this situation. 

Facilities Sustainment, Restoration and Modernization 

(FSRM).—The Department is directed to continue describing on 

form 1390 the backlog of FSRM requirements at installations with 

future construction projects. For troop housing requests, form 1391 

should describe any FSRM conducted in the past two years. Likewise, future requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms 

should include English equivalent measurements for projects presented in metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance accounts are described 

below: 

(1) components of the facility may be repaired by replacement. 

Such replacement can be up to current standards or codes; 

(2) interior arrangements and restorations may be included as repair; 

(3) additions, new facilities, and functional conversions must be 

performed as military construction projects. Such projects may be 

done concurrently with repair projects as long as the final conjunctively funded project is a complete and usable facility; and 

(4) the appropriate service secretary shall notify the appropriate 

committees 21 days prior to carrying out any repair project with an 

estimated cost in excess of $7,500,000. 


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Increase in Use of 10 U.S.C. 2811 Authority.—The Committee 

notes a significant increase in the use of authority under 10 U.S.C. 

2811 to execute repair projects with operation and maintenance 

funds. The Committee is concerned that this practice is being used 

as a substitute for permanent military construction when facilities 

are in need of replacement. The Committee therefore directs the 

Department of Defense to submit a report providing the amounts 

executed using 10 U.S.C. 2811 authority over the last five fiscal 

years for which data are available. The data shall be broken out 

by account and shall include the total number of individual projects 

executed within each fiscal year. This report shall be submitted no 

later than September 14, 2007. 

Funding Levels for FSRM and Base Operating Support (BOS).— The Committee remains concerned that the services are taking 

risks in the FSRM and BOS accounts. The perennial underfunding 

of these accounts negatively affects both quality of life and the rate 

at which military facilities must be replaced. The Committee notes 

that the recently publicized problems with facility conditions at 

Walter Reed Army Medical Center and other military health care 

facilities are partly attributable to this long-standing practice. 

Even though the Department of Defense has set a goal of funding 

95 percent of sustainment, all of the services’ fiscal year 2008 requests for FSRM fall short of this mark. The respective percentages 

of sustainment funded in the services’ requests are as follows: 

Army, 86 percent; Navy, 83 percent; Marine Corps, 89 percent; and 

Air Force, 92 percent. Likewise, the services continue to take risks 

in the BOS account. Shortfalls in BOS have often been covered in 

the past by raiding FSRM funds. The Committee continues to urge 

the services to end this practice by fully funding both BOS and 

FSRM requirements in the budget. 

Execution Rates of Military Construction Projects.—The Committee notes the increased incidence of scope reductions, project 

cancellations, and bid busts for military construction projects in recent years. Heightened demand in the construction market and 

shortages of certain materials have driven up construction prices, 

affecting the ability of the Department of Defense to execute military construction projects within the year of funding without either 

scaling back requirements or seeking approval for reprogramming. 

The Committee therefore directs the Department to provide a report to the Committee on the rate of execution for military construction projects within the year of funding during each of the last 

five fiscal years for which data is available. The data shall be broken out by each military construction and family housing construction account included in this Act. This report shall be submitted no 

later than September 14, 2007. 

Reprogramming Criteria.—Reprogramming requests are required 

for military construction and family housing projects when the increase equals or exceeds 25 percent of the appropriated amount or 

$2,000,000, whichever is less. 

Future Veterans Health Care Estimates.—The Committee is concerned that the President’s budget has not accurately projected the 

cost of health care for our veterans from fiscal year 2008 through 

fiscal year 2012. While the Veterans Health Administration has 

averaged a four percent increase in workload for the last five years 

and the Centers for Medicare and Medicaid Services projects that 


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‘‘health spending growth is anticipated to remain in the seven percent range over the next decade,’’ the current budget estimates for 

hospital and medical care for veterans for the fiscal years through 

2012 are actually lower than the budget request for fiscal year 

2008 of $35,304,000,000. Additionally the Committee is not confident that the actuarial model currently used to project health 

care demand for our Operation Enduring Freedom/Operation Iraqi 

Freedom veterans has sufficiently matured to ensure accuracy. For 

these reasons, the Committee has included a general provision directing the Congressional Budget Office to submit a report projecting the annual funding level necessary for the Department to 

continue providing health care for our veterans from fiscal year 

2009 through fiscal year 2012. 

Seamless Transition.—Recent reviews of the health care programs for our servicemembers and veterans continue to highlight 

challenges in caring for our traumatic brain injury, polytrauma injury, blast injury, burn, mental health/PTSD, and amputee patients 

as well as continued difficulty with seamless transition and information sharing. With the large volume of Reserve and National 

Guard that have deployed to Operation Enduring Freedom and Operation Iraqi Freedom, it is critical that the Department of Defense 

and Department of Veterans Affairs work as partners if they are 

to ensure that care is available to this geographically dispersed 

population and all veterans. The Committee strongly urges the Department to make every effort to collaborate with the Department 

of Defense on programs and initiatives that serve our veterans. Additionally, the Committee has provided funding authority within 

this bill that highlights this issue. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION OVERVIEW

Fiscal year 2007 enacted level ........................................................... $6,025,242,000 

Fiscal year 2008 budget request ....................................................... 9,550,119,000 

Committee recommendation in the bill ............................................ 9,706,881,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 3,681,639,000 

Fiscal year 2008 budget request ................................................ 156,762,000 

Military construction accounts provide funds for new construction, construction improvements, planning and design, and host nation support. Projects funded by these accounts include facilities for 

operations, training, maintenance, research and development, supply, medical care, and force protection, as well as unaccompanied 

housing, utilities infrastructure, and land acquisition. 

The Committee recommends a total appropriation of 

$9,706,881,000 for Military Construction, an increase of 

$3,681,639,000 above the fiscal year 2007 enacted level and an increase of $156,762,000 above the budget request. 

Construction Inflation.—The Committee is concerned that the inflation adjustments used by the Administration for military construction and family housing are insufficient to keep pace with actual price inflation in the construction market. The adjustment 

used by the Administration is 2.2 percent. According to a March 

2007 report by the Association of General Contractors, the price of 


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construction materials alone could be rising at a 6 to 8 percent rate 

by the end of the calendar year. Underestimates of construction inflation have real world consequences in the form of scope reductions and project cancellations. The Committee directs the Department of Defense and the Office of Management and Budget to 

budget more realistically for inflation in military construction and 

family housing. 

Report on Projects Provided for Hurricane Recovery.—The Committee directs the Department of Defense to provide a report on the 

execution of military construction and family housing projects provided for recovery from hurricanes in P.L. 108–324, P.L. 109–148, 

and P.L. 109–234. This report should include the award date, estimated completion date, and current working estimate for each 

project, as well as an explanation regarding each unawarded 

project. This report shall be submitted no later than July 31, 2007. 

Transfer of Funds to Foreign Currency Account.—The Committee 

directs the Department of Defense to submit a report no later than 

December 3, 2007, on the amounts of expired funds transferred 

from military construction and family housing accounts to the Foreign Currency Fluctuations, Construction, Defense account at the 

end of fiscal year 2007. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

military construction projects submitted by the Administration appear on pages 66 through 79. The Administration, in selecting 

these projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter 

or modify this list to reflect additional priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 

MILITARY CONSTRUCTION, ARMY

Fiscal year 2007 enacted level ........................................................... $1,973,973,000 

Fiscal year 2008 budget request ....................................................... 4,039,197,000 

Committee recommendation in the bill ............................................ 4,070,959,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 2,096,986,000 

Fiscal year 2008 budget request ................................................ 31,762,000 

The Committee recommends an appropriation of $4,070,959,000 

for Military Construction, Army, an increase of $2,096,986,000 

above the fiscal year 2007 enacted level and an increase of 

$31,762,000 above the budget request. 


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MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

(INCLUDING RESCISSION OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $1,103,321,000 

Fiscal year 2008 budget request ....................................................... 2,104,276,000 

Committee recommendation in the bill (including rescission) ........ 2,119,276,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 1,015,955,000 

Fiscal year 2008 budget request ................................................ 15,000,000 

The Committee recommends an appropriation of $2,125,138,000 

and a rescission of $5,862,000 for Military Construction Navy and 

Marine Corps, an increase of $1,015,955,000 above the fiscal year 

2007 enacted level and an increase of $15,000,000 above the budget 

request. 

The Committee recommends the following rescissions due to bid 

savings on previously appropriated projects: 

Public Law/location Project title Recommendation 

PL 108–132 (FY 2004) 

AL: Barin OLF ............................................................................. Clear Zone Land Acquisition ....... ¥2,420,000 

NC: Camp Lejeune ..................................................................... Consolidated Armories ................. ¥3,442,000 

Total .................................................................................. ...................................................... ¥5,862,000 

Carrier Homeporting.—The Committee understands that it is the 

Navy’s publicly stated policy to maintain two nuclear carrier-capable homeports on the east coast. The Committee further understands that the Navy is in the process of drafting an environmental 

impact statement (EIS) that includes the evaluation of the necessary infrastructure and dredging required to make Naval Station 

Mayport the second such homeport in addition to Naval Station 

Norfolk, and that a draft EIS will be released in early 2008. The 

Committee directs the Navy to provide a report to the Committee 

identifying the military construction requirements and an estimated timetable for completion for making Mayport a nuclear carrier-capable homeport no later than 30 days after release of the 

draft EIS. 

Outlying Landing Field, North Carolina.—The Committee does 

not support the establishment of an Outlying Landing Field (OLF) 

at Site C in North Carolina. The Committee further notes that the 

defense authorization bill that passed the House on May 17, 2007 

recommends no authorization for the fiscal year 2008 budget request and further repeals prior authorizations for an OLF at Site 

C. The Committee is aware that the Navy is in the process of considering alternative sites for an OLF in North Carolina to serve 

Naval Air Station Oceana and Marine Corps Air Station Cherry 

Point. The Committee intends to closely monitor the Navy’s 

progress in considering alternative locations in North Carolina, and 

expects the Navy to fully and fairly consider pilot safety, negative 

environmental impacts, and potential disruptive effects on surrounding communities in its consideration of such sites. The Committee directs the Navy to provide a progress report on its efforts 

no later than July 31, 2007. 


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MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSION OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $1,080,306,000 

Fiscal year 2008 budget request ....................................................... 912,109,000 

Committee recommendation in the bill (including rescission) ........ 922,109,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (158,197,000) 

Fiscal year 2008 budget request ................................................ 10,000,000 

The Committee recommends an appropriation of $927,428,000 and a rescission of $5,319,000 for Military Construction, Air Force, 

a decrease of $158,197,000 below the fiscal year 2007 enacted level 

and an increase of $10,000,000 above the budget request. 

The Committee recommends the following rescission due to bid 

savings on a previously appropriated project: 

Public Law/location Project title Recommendation 

P.L. 108–324 (FY 2005) 

Greenland: Thule AB .................................................................. Dormitory ...................................... ¥5,319,000 

Total .................................................................................. ...................................................... ¥5,319,000 

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER AND RESCISSION OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $1,016,771,000 

Fiscal year 2008 budget request ....................................................... 1,799,336,000 

Committee recommendation in the bill (including rescission) ........ 1,799,336,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 782,565,000 

Fiscal year 2008 budget request ................................................ –––

The Committee recommends an appropriation of $1,806,928,000 

and a rescission of $7,592,000 for Military Construction, DefenseWide, an increase of $782,565,000 above the fiscal year 2007 enacted level and the same as the budget request. 

The Committee recommends the following rescission from a Missile Defense Agency (MDA) project. The Committee notes that 

MDA has the authority to fund construction in support of missile 

defense systems with research, development, testing and evaluation (RDT&E) funds. The Committee directs MDA to fund this 

project under its RDT&E construction authority: 

Public Law/location Project title Recommendation 

PL 110–5 (FY 2007) 

Kwajalein Atoll ........................................................................... Launch Control Facility Upgrades ¥7,592,000 

Total .................................................................................. ...................................................... ¥7,592,000 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2007 enacted level ........................................................... $470,871,000 

Fiscal year 2008 budget request ....................................................... 404,291,000 

Committee recommendation in the bill ............................................ 439,291,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (31,580,000) 

Fiscal year 2008 budget request ................................................ 35,000,000 

The Committee recommends an appropriation of $439,291,000 for 

Military Construction, Army National Guard, a decrease of 


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$31,580,000 below the fiscal year 2007 enacted level and an increase of $35,000,000 above the budget request. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2007 enacted level ........................................................... $126,000,000 

Fiscal year 2008 budget request ....................................................... 85,517,000 

Committee recommendation in the bill ............................................ 95,517,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (30,483,000) 

Fiscal year 2008 budget request ................................................ 10,000,000 

The Committee recommends an appropriation of $95,517,000 for 

Military Construction, Air National Guard, a decrease of 

$30,483,000 below the fiscal year 2007 enacted level and an increase of $10,000,000 above the budget request. 

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2007 enacted level ........................................................... $166,000,000 

Fiscal year 2008 budget request ....................................................... 119,684,000 

Committee recommendation in the bill ............................................ 154,684,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (11,316,000) 

Fiscal year 2008 budget request ................................................ 35,000,000 

The Committee recommends an appropriation of $154,684,000 for 

Military Construction, Army Reserve, a decrease of $11,316,000 

below the fiscal year 2007 enacted level and an increase of 

$35,000,000 above the budget request. 

MILITARY CONSTRUCTION, NAVY RESERVE

Fiscal year 2007 enacted level ........................................................... $43,000,000 

Fiscal year 2008 budget request ....................................................... 59,150,000 

Committee recommendation in the bill ............................................ 69,150,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 26,150,000 

Fiscal year 2008 budget request ................................................ 10,000,000 

The Committee recommends an appropriation of $69,150,000 for 

Military Construction, Navy Reserve, an increase of $26,150,000 

above the fiscal year 2007 enacted level and an increase of 

$10,000,000 above the budget request. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

(INCLUDING RESCISSION OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $45,000,000 

Fiscal year 2008 budget request ....................................................... 26,559,000 

Committee recommendation in the bill (including rescission) ........ 36,559,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (8,441,000) 

Fiscal year 2008 budget request ................................................ 10,000,000 

The Committee recommends an appropriation of $39,628,000 and 

a rescission of $3,069,000 for Military Construction, Air Force Reserve, a decrease of $8,441,000 below the fiscal year 2007 enacted 

level and an increase of $10,000,000 above the budget request. 

The Committee recommends the following rescission due to a 

cancelled project: 


bajohnson on PRODPC60 with HEARING
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Public Law/location Project title Recommendation 

PL 109–114 (FY 2006): 

AK: Elmendorf AFB ..................................................................... C–17 Convert Hangar for AFRC 

Group HQ.

¥3,069,000 

Total .................................................................................. ...................................................... ¥3,069,000 

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2007 enacted level ........................................................... $204,789,000 

Fiscal year 2008 budget request ....................................................... 201,400,000 

Committee recommendation in the bill ............................................ 201,400,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (3,389,000) 

Fiscal year 2008 budget request ................................................ –––

The North Atlantic Treaty Organization Security Investment 

Program (NSIP) consists of annual contributions by NATO member 

countries. The program finances the costs of construction needed to 

support the roles of the major NATO commands. The investments 

cover facilities such as airfields, fuel pipelines and storage, harbors, 

communications and information systems, radar and navigational 

aids, and military headquarters. The Committee recommends an appropriation of $201,400,000 for NSIP, a decrease of $3,389,000 below the fiscal year 2007 enacted 

level and the same as the budget request. 

Occasionally, the U.S. has been forced to delay temporarily the 

authorization of projects due to shortfalls in U.S. obligation authority. The Committee directs the Secretary of Defense to notify the 

Committee 30 days prior to taking such action. 

FAMILY HOUSING OVERVIEW

Fiscal year 2007 enacted level ........................................................... $4,021,258,000 

Fiscal year 2008 budget request ....................................................... 2,932,483,000 

Committee recommendation in the bill ............................................ 2,932,483,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (1,088,775,000) 

Fiscal year 2008 budget request ................................................ – – –

Family housing construction accounts provide funds for new construction, construction improvements, the Federal government 

costs for family housing privatization projects, and planning and 

design. The operation and maintenance accounts provide funds to 

pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses. 

The Committee recommends a total appropriation of $2,932,483,000 for the family housing construction and operation 

and maintenance accounts, a decrease of $1,088,775,000 below the 

fiscal year 2007 enacted level and the same as the budget request. 

Family Housing Privatization Progress Reports.—The Committee 

directs the Department of Defense to continue submitting semiannual progress reports on the family housing privatization program. The Committee further directs the Department to include in 

each future report a breakout of military tenant satisfaction rates 

by project. 

Inclusion of Child Development Centers in Family Housing Privatization Projects.—Senior non-commissioned officers of the miliVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

bajohnson on PRODPC60 with HEARING
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tary services have annually identified child care as one of the most 

pressing concerns of enlisted personnel and their families in hearings before the Committee. The Committee notes that 10 U.S.C. 

2881 allows for the acquisition or construction of ancillary facilities 

as part of military housing privatization projects. These include facilities for ‘‘any nonappropriated fund activity of the Department of 

Defense for the morale, welfare, and recreation of members of the 

Armed Forces,’’ which would include child care and development. 

The Committee therefore directs the Department of Defense and 

the services to actively seek the inclusion of child care and development facilities within housing privatization projects wherever financially feasible. 

Foreign Currency Savings and Sub-Account Transfers.—The 

Committee directs that savings from foreign currency re-estimates 

be used to maintain existing family housing units. The Comptroller 

is directed to report to the Committee on how these savings are allocated by December 3, 2007. In addition, only 10 percent of funds 

made available to the construction and operation and maintenance 

sub-accounts may be transferred between the sub-accounts. Such 

transfers must be reported to the Committee within 30 days of 

such action. 

Leasing Reporting Requirements.—The Secretary of Defense is directed to report to the Committee quarterly on the details of all 

new or renewed domestic leases entered into during the previous 

quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), 

including certification that less expensive housing was not available for lease. For foreign leases, the Department is directed to: (1) 

perform an economic analysis on all new leases or lease/contract 

agreements where more than 25 units are involved; (2) report the 

details of new or renewed lease agreements that exceed the cost 

threshold set by 10 U.S.C. 2828(e)(1) 21 days prior to entering into 

such an agreement; and (3) base leasing decisions on the economic 

analysis. 

Reprogramming Criteria.—The reprogramming criteria that 

apply to military construction projects (25 percent of the funded 

amount or $2,000,000, whichever is less) apply to new housing construction projects and improvement projects over $2,000,000 as 

well. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

family housing construction projects submitted by the Administration appear on pages 79 through 81. The Administration, in selecting these projects, goes through a process that is the functional 

equivalent of earmarking. When the Committee reviews the budget 

request, it goes through a process of rigorous review and may alter 

or modify this list to reflect additional priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 


bajohnson on PRODPC60 with HEARING
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FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2007 enacted level ........................................................... $579,000,000 

Fiscal year 2008 budget request ....................................................... 419,400,000 

Committee recommendation in the bill ............................................ 419,400,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (159,600,000) 

Fiscal year 2008 budget request ................................................ – – –

The Committee recommends an appropriation of $419,400,000 for 

Family Housing Construction, Army, a decrease of $159,600,000 

below the fiscal year 2007 enacted level and the same as the budget request. The appropriation includes $52,000,000 to construct 

new family housing units, $365,400,000 to improve or privatize existing units, and $2,000,000 for planning and design. This funding 

level supports the elimination of 10,023 inadequate family housing 

units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2007 enacted level ........................................................... $671,311,000 

Fiscal year 2008 budget request ....................................................... 742,920,000 

Committee recommendation in the bill ............................................ 742,920,000 

Comparison with: 

Fiscal year 2007 enacted level ....................................................... 71,609,000 

Fiscal year 2008 budget request ................................................... – – –

The Committee recommends an appropriation of $742,920,000 for 

Family Housing Operation and Maintenance, Army, an increase of 

$71,609,000 above the fiscal year 2007 enacted level and the same 

as the budget request. 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2007 enacted level ........................................................... $305,000,000 

Fiscal year 2008 budget request ....................................................... 298,329,000 

Committee recommendation in the bill ............................................ 298,329,000 

Comparison with: 

Fiscal year 2007 enacted level ....................................................... (6,671,000) 

Fiscal year 2008 budget request ................................................... – – –

The Committee recommends an appropriation of $298,329,000 for 

Family Housing Construction, Navy and Marine Corps, a decrease 

of $6,671,000 below the fiscal year 2007 enacted level and the same 

as the budget request. The appropriation includes $57,167,000 to 

construct new family housing units, $237,990,000 to improve or privatize existing units, and $3,172,000 for planning and design. The 

Navy and Marine Corps currently project to have all contracts in 

place by the end of fiscal year 2007 to eliminate all family housing 

units defined as inadequate. 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2007 enacted level ........................................................... $505,472,000 

Fiscal year 2008 budget request ....................................................... 371,404,000 

Committee recommendation in the bill ............................................ 371,404,000 

Comparison with:.

Fiscal year 2007 enacted level ....................................................... (134,068,000) 

Fiscal year 2008 budget request ................................................... – – –

The Committee recommends an appropriation of $371,404,000 for 

Family Housing Operation and Maintenance, Navy and Marine 


bajohnson on PRODPC60 with HEARING
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Corps, a decrease of $134,068,000 below the fiscal year 2007 enacted level and the same as the budget request. 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2007 enacted level ........................................................... $1,150,000,000 

Fiscal year 2008 budget request ....................................................... 362,747,000 

Committee recommendation in the bill ............................................ 362,747,000 

Comparison with: 

Fiscal year 2007 enacted level ....................................................... (787,253,000) 

Fiscal year 2008 budget request ................................................... – – –

The Committee recommends an appropriation of $362,747,000 for 

Family Housing Construction, Air Force, a decrease of 

$787,253,000 below the fiscal year 2007 enacted level and the same 

as the budget request. The appropriation includes $56,275,000 to 

construct new family housing units, $294,262,000 to improve or privatize existing units, and $12,210,000 for planning and design. 

This funding level supports the elimination of 3,704 inadequate 

family housing units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2007 enacted level ........................................................... $750,000,000 

Fiscal year 2008 budget request ....................................................... 688,335,000 

Committee recommendation in the bill ............................................ 688,335,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (61,665,000) 

Fiscal year 2008 budget request ................................................ – – –

The Committee recommends an appropriation of $688,335,000 for 

Family Housing Operation and Maintenance, Air Force, a decrease 

of $61,665,000 below the fiscal year 2007 enacted level and the 

same as the budget request. 

FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2007 enacted level ........................................................... $9,000,000 

Fiscal year 2008 budget request ....................................................... – – –

Committee recommendation in the bill ............................................ – – –

Comparison with: 

Fiscal year 2007 enacted level ................................................... (9,000,000) 

Fiscal year 2008 budget request ................................................ – – –

The Committee does not recommend an appropriation for Family 

Housing Construction, Defense-Wide. This is a decrease of 

$9,000,000 below the fiscal year 2007 enacted level and the same 

as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2007 enacted level ........................................................... $49,000,000 

Fiscal year 2008 budget request ....................................................... 48,848,000 

Committee recommendation in the bill ............................................ 48,848,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (152,000) 

Fiscal year 2008 budget request ................................................ – – –

The Committee recommends an appropriation of $48,848,000 for 

Family Housing Operation and Maintenance, Defense-Wide, a decrease of $152,000 below the fiscal year 2007 enacted level and the 

same as the budget request. 


bajohnson on PRODPC60 with HEARING
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DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2007 enacted level ........................................................... $2,475,000 

Fiscal year 2008 budget request ....................................................... 500,000 

Committee recommendation in the bill ............................................ 500,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (1,975,000) 

Fiscal year 2008 budget request ................................................ – – –

The Family Housing Improvement Fund (FHIF) is authorized by 

section 2883, title 10, United States Code, and provides the Department of Defense with authority to finance joint ventures with the 

private sector to revitalize and to manage the Department’s housing inventory. The statute authorizes the Department to use limited partnerships, make direct and guaranteed loans, and convey 

Department-owned property to stimulate the private sector to increase the availability of affordable, quality housing for military 

personnel. 

The FHIF is used to build or renovate family housing by mixing 

or matching various legal authorities, and by utilizing private capital and expertise to the maximum extent possible. The fund is administered as a single account without fiscal year limitations and 

contains appropriated and transferred funds from family housing 

construction accounts. 

The Committee recommends an appropriation of $500,000 for the 

Department of Defense Family Housing Improvement Fund, a decrease of $1,975,000 below the fiscal year 2007 enacted level and 

the same as the budget request. 

CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $131,000,000 

Fiscal year 2008 budget request ....................................................... 86,176,000 

Committee recommendation in the bill ............................................ 86,176,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (44,824,000) 

Fiscal year 2008 budget request ................................................ – – –

The Chemical Demilitarization Construction, Defense-Wide account provides funds for the design and construction of full-scale 

chemical disposal facilities and associated projects to upgrade installation support facilities and infrastructures required to support 

the Chemical Demilitarization program. 

The Committee recommends an appropriation of $86,176,000 for 

Chemical Demilitarization Construction, Defense-Wide, a decrease 

of $44,824,000 below the fiscal year 2007 enacted level and the 

same as the budget request. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

table below is a breakout of the chemical demilitarization construction projects submitted by the Administration.The Administration, 

in selecting these projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the 

budget request, it goes through a process of rigorous review and 

may alter or modify this list to reflect additional priorities. 


bajohnson on PRODPC60 with HEARING
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The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 

[In thousands of dollars] 

Location FY 2008 administration request 

Colorado: Pueblo Chem-Agent Disposal Pilot Plant ...................................................................................... 35,159 

Kentucky: Blue Grass Chem-Agent Disposal Pilot Plant ............................................................................... 51,017 

BASE REALIGNMENT AND CLOSURE ACCOUNT 1990 

Fiscal year 2007 enacted level ........................................................... $252,279,000 

Fiscal year 2008 budget request ....................................................... 220,689,000 

Committee recommendation in the bill ............................................ 270,689,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 18,410,000 

Fiscal year 2008 budget request ................................................ 50,000,000 

The Committee recommends an appropriation of $270,689,000 for 

the Base Realignment and Closure Account 1990, an increase of 

$18,410,000 above the fiscal year 2007 enacted level and an increase of $50,000,000 above the budget request. The Committee is 

aware that there is a backlog of remaining requirements, particularly for cleanup of unexploded ordnance, for closed installations 

dating back to the 1988 BRAC round. The Committee is concerned 

by the slow pace of progress in remediating these properties and 

directs the Department of Defense to make funding for previous 

BRAC rounds a higher priority. 

Reprogramming Guidelines for BRAC 1990.—The Committee directs the Department of Defense to seek a prior approval reprogramming when the amount to be obligated for a site or closure 

package exceeds the amount programmed in the fiscal year 2008 

budget request (as identified by the following table) by 20 percent 

or $2,000,000, whichever is less. These guidelines shall not apply 

to sites or closure packages for which the programmed amount is 

less than $2,000,000. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

table below is an illustrative list of base realignment and closure 

construction projects submitted by the Administration. The Administration, in selecting these projects, goes through a process that is 

the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 


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[In thousands of dollars] 

BRAC location/closure package FY 2008 administration request 

Army 

Alabama ................................................................................................................................................ 103 

ARL Woodbridge ..................................................................................................................................... 135 

Cameron Station .................................................................................................................................... 73 

Fort Chaffee ........................................................................................................................................... 30 

Fort Devens ............................................................................................................................................ 1,237 

Fort McClellan ....................................................................................................................................... 659 

Fort Meade ............................................................................................................................................. 2,491 

Fort Monmouth ...................................................................................................................................... 41 

Fort Ord ................................................................................................................................................. 24,620 

Fort Ritchie ............................................................................................................................................ 436 

Fort Wingate .......................................................................................................................................... 10,163 

Jefferson ................................................................................................................................................ 3,923 

Letterkenny Army Depot ......................................................................................................................... 53 

Lexington ............................................................................................................................................... 110 

Minor Fort Dix ........................................................................................................................................ 32 

Minor FORSCOM ..................................................................................................................................... 60 

Minor Fort Lewis .................................................................................................................................... 2,003 

Oakland Army Base ............................................................................................................................... 2 

Pueblo .................................................................................................................................................... 6,212 

Red River Army Depot ........................................................................................................................... 239 

Sacramento ............................................................................................................................................ 836 

Savanna Army depot ............................................................................................................................. 4,952 

Seneca Army depot ................................................................................................................................ 737 

Stratford Engine Plant .......................................................................................................................... 660 

Tooele ..................................................................................................................................................... 401 

Umatilla ................................................................................................................................................. 493 

Vint Hill Farms ...................................................................................................................................... 179 

Defense Distribution Depot Ogden ........................................................................................................ 906 

Army Program Managament .................................................................................................................. 11,930 

Subtotal, Army .............................................................................................................................. 73,716 

NAVY 

Adak ....................................................................................................................................................... 9,279 

Agana .................................................................................................................................................... 838 

Alameda ................................................................................................................................................. 30,658 

Barbers Point ......................................................................................................................................... 26 

Cecil Field .............................................................................................................................................. 1,452 

Charleston Naval Supply Center ........................................................................................................... 53 

Dallas .................................................................................................................................................... 841 

Davisville ............................................................................................................................................... 1,617 

El Toro ................................................................................................................................................... 10,898 

Key West ................................................................................................................................................ 6 

Long Beach Naval Shipyard .................................................................................................................. 265 

Long Beach Naval Station .................................................................................................................... 775 

Louisville ................................................................................................................................................ 54 

Mare Island ........................................................................................................................................... 11,254 

Memphis ................................................................................................................................................ 646 

Moffett Field .......................................................................................................................................... 2,725 

Oakland FISC ......................................................................................................................................... 4,850 

Orlando USRD ........................................................................................................................................ 116 

Orlando NTC .......................................................................................................................................... 565 

Philadelphia Naval Station ................................................................................................................... 34 

Roosevelt Roads .................................................................................................................................... 16,321 

San Diego NTC ...................................................................................................................................... 2,768 

San Francisco PWC ............................................................................................................................... 1,155 

South Weymouth .................................................................................................................................... 3,854 

Treasure Island ...................................................................................................................................... 6,765 

Treasure Island—Hunters Point Annex ................................................................................................. 36,909 

Trenton ................................................................................................................................................... 600 

Tustin ..................................................................................................................................................... 1,648 

Warminster ............................................................................................................................................ 755 

White Oak .............................................................................................................................................. 300 

Various Locations .................................................................................................................................. 23,415 

Planning, Design, and Management ..................................................................................................... 7,315 


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[In thousands of dollars] 

BRAC location/closure package FY 2008 administration request 

Unspecified ............................................................................................................................................ 1 

Land Sales Revenue .............................................................................................................................. ¥178,758 

Subtotal, Navy .............................................................................................................................. 0 

AIR FORCE 

Kelly AFB ................................................................................................................................................ 9,275 

McClellan AFB ....................................................................................................................................... 29,931 

Reese AFB .............................................................................................................................................. 7,071 

Program Management ’95 ..................................................................................................................... 42,332 

Program Management ’93 ..................................................................................................................... 9,104 

Program Management ’91 ..................................................................................................................... 45,546 

Unspecified ............................................................................................................................................ 1 

Subtotal, Air Force ........................................................................................................................ 143,260 

DEFENSE LOGISTICS AGENCY 

Memphis ................................................................................................................................................ 3,196 

Philadelphia DPSC ................................................................................................................................. 517 

Subtotal, DLA ................................................................................................................................ 3,713 

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005 

Fiscal year 2007 enacted level ........................................................... $2,489,421,000 

Fiscal year 2008 budget request ....................................................... 8,174,315,000 

Committee recommendation in the bill ............................................ 8,174,315,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 5,684,894,000 

Fiscal year 2008 budget request ....................................................... – – –

The Committee recommends an appropriation of $8,174,315,000 

for the Base Realignment and Closure Account 2005, an increase 

of $5,684,894,000 above the fiscal year 2007 enacted level and the 

same as the budget request. This funding supports the most recent 

base realignment and closure round which affects over 800 locations across the nation through 24 major closures, 24 major realignments, and 765 other actions. 

BRAC and Inflation Estimates.—The Committee is deeply concerned that the costs for the 2005 BRAC program remain underestimated by the Department of Defense, in part due to unrealistic 

inflation estimates. The Committee is especially concerned that the 

business plans upon which BRAC construction estimates are based 

were formed using outdated pricing guidelines and area cost factors. The Committee therefore directs the Secretary of Defense to 

submit a report on the application of DOD facilities pricing guides 

and area cost factors to BRAC business plans. This report shall 

identify what year’s pricing guide and area cost factor was applied 

to the construction estimates included in each business plan, and 

indicate the additional cost that would be incurred if all business 

plans were updated to reflect the most recent pricing guide and 

area cost factors. This report shall be submitted no later than October 1, 2007. 

Prior Notice of Significant Changes to the BRAC 2005 program.— The Committee directs the Department of Defense to notify the 

Committee 14 days in advance of obligating funds to implement a 

recommendation of the 2005 Base Realignment and Closure Commission if the amount to be obligated exceeds the amount programmed for that recommendation in the 2008 budget request (as 


bajohnson on PRODPC60 with HEARING
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identified by the following table) by 20 percent or $10,000,000, 

whichever is less. These guidelines shall not apply to recommendations for which the programmed amount is less than $5,000,000. 

Reserve Centers.—The Committee requests the Secretary of Defense to submit a report no later than February 1, 2008 on excess 

property at reserve centers realigned in the 2005 BRAC round. For 

each such reserve center, the report shall identify and describe unused acreage and any improvements thereon, provide an estimate 

of the fair market value (if available) of such property, identify the 

authorities under which such property may be transferred to a nonFederal entity, and indicate any potential impact of reducing excess 

property on operations or training. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

table below is an illustrative list of base realignment and closure 

construction projects submitted by the Administration. The Administration, in selecting these projects, goes through a process that is 

the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 

[In thousands of dollars] 

BRAC recommendation FY 2008 administration request 

ARMY 

2—Fort Gillem ...................................................................................................................................... 13,194 

3—Fort McPherson ............................................................................................................................... 3,327 

4—Fort Bragg ....................................................................................................................................... 56,164 

5—Fort Monmouth ................................................................................................................................ 268,298 

6—Fort Hood ......................................................................................................................................... 220,369 

7—Red River ........................................................................................................................................ 12,352 

8—Fort Monroe ..................................................................................................................................... 2,000 

9—Maneuver Training .......................................................................................................................... 269,119 

10—Operational Army (IGPBS) ............................................................................................................. 756,891 

11—RC Alabama .................................................................................................................................. 42,225 

12—RC Arizona .................................................................................................................................... 4,090 

13—RC Arkansas ................................................................................................................................. 44,592 

14—RC California ................................................................................................................................ 23,900 

15—RC Connecticut ............................................................................................................................. 6,403 

18—RC Hawaii ..................................................................................................................................... 49,201 

19—RC Illinois ..................................................................................................................................... 51,610 

20—RC Indiana .................................................................................................................................... 28,605 

21—RC Iowa ......................................................................................................................................... 285 

22—RC Kentucky .................................................................................................................................. 4,669 

23—RC Louisiana ................................................................................................................................. 40,701 

24—RC Maryland ................................................................................................................................. 2,074 

25—RC Massachusetts ........................................................................................................................ 14,820 

27—RC Minnesota ................................................................................................................................ 17,829 

28—RC Missouri ................................................................................................................................... 30,263 

29—RC Montana .................................................................................................................................. 19,412 

30—RC Nebraska ................................................................................................................................. 3,055 

33—RC New Mexico ............................................................................................................................. 3,379 


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[In thousands of dollars] 

BRAC recommendation FY 2008 administration request 

34—RC New York ................................................................................................................................. 98,965 

37—RC Ohio ......................................................................................................................................... 55,795 

38—RC Oklahoma ................................................................................................................................ 149,338 

40—RC Pennsylvania ........................................................................................................................... 57,930 

44—RC Texas ....................................................................................................................................... 140,242 

45—RC Vermont ................................................................................................................................... 23,000 

46—RC Washington ............................................................................................................................. 25,372 

48—RC Wisconsin ................................................................................................................................ 6 

49—RC Wyoming .................................................................................................................................. 42,057 

50—Single Drill Sergeant School ......................................................................................................... 26,610 

51—US Army Garrison (Selfridge) ........................................................................................................ 5,361 

52—USAR New England ....................................................................................................................... 5,056 

53—USAR Northeast ............................................................................................................................. 69,597 

54—USAR Northwest ............................................................................................................................ 10,951 

55—USAR Southeast ............................................................................................................................ 1,259 

56—USAR Southwest ............................................................................................................................ 8,443 

57—MCLB Barstow ............................................................................................................................... 2,450 

73—Army/Navy/USMC Reserve Centers ................................................................................................ 30,100 

121—Combat Service Support Centers ................................................................................................ 413,221 

122—JCTR Transmgmt ......................................................................................................................... 13,400 

124—JCTR Religious Training .............................................................................................................. 11,600 

126—Net Fires Center .......................................................................................................................... 106,768 

129—Co-Loc Misc AF & NG Lease ....................................................................................................... 1,472 

131—Co-Loc Intel Act .......................................................................................................................... 276 

137—Consolidate CPOs ........................................................................................................................ 96 

138—Consolidate Correctional Facilities ............................................................................................. 8,254 

142—Consolidate TRANSCOM .............................................................................................................. 1,100 

143—Consolidate Act-Rsv P&R Centers .............................................................................................. 112,794 

144—Joint Mobilization Sites ............................................................................................................... 71 

148—Re-Ioc Army HQ & FOA ............................................................................................................... 30,711 

151—River Bank AAP ........................................................................................................................... 11,127 

152—Sierra AD ..................................................................................................................................... 15,732 

153—Rock Island Arsenal .................................................................................................................... 17,918 

154—Newport Chemical Depot ............................................................................................................ 800 

155—Kansas AAP ................................................................................................................................. 25,482 

157—Mississippi AAP ........................................................................................................................... 706 

160—Umatilla Chemical Depot ............................................................................................................ 1,800 

162—Lone Star AAP ............................................................................................................................. 39,000 

163—Deseret Chemical Depot ............................................................................................................. 1,000 

169—Walter Reed ................................................................................................................................. 57,730 

173—Convert Inpatient Services .......................................................................................................... 921 

174—JCOE for Chem-Bio ..................................................................................................................... 60,157 

175—Commodity Management Privatization ....................................................................................... 1,006 

176—Depot Level Repairables ............................................................................................................. 29,653 

183—Consolidate Sea Vehicle ............................................................................................................. 1,516 

187—Defense Research Led Lab ......................................................................................................... 6,008 

Army Program Management .................................................................................................................. 304,068 

Subtotal, Army .............................................................................................................................. 4,015,746 

NAVY 

63—NSCS Athens ................................................................................................................................. 4,657 

62—NAS Atlanta ................................................................................................................................... 8,734 

57—MCLB Barstow ............................................................................................................................... 4,087 

65—NAS Brunswick .............................................................................................................................. 46,272 

59—NWS Seal Beach DET Concord ...................................................................................................... 12,896 

71—NS Ingleside & NAS Corpus Christi .............................................................................................. 49,214 

66—MCSA Kansas City ........................................................................................................................ 90 

64—NSA New Orleans .......................................................................................................................... 30,525 

70—NS Newport ................................................................................................................................... 116 

67—NS Pascagoula .............................................................................................................................. 1,169 

61—OTC Pensacola .............................................................................................................................. 91 

68—NAS JRB Willow Grove & Cambria RAP ........................................................................................ 87,215 

72—Engineering Field Division/Activity ............................................................................................... 25,522 

73—Marine Corps Reserve Centers ..................................................................................................... 8,737 

76—Navy Reserve Centers ................................................................................................................... 8,931 


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[In thousands of dollars] 

BRAC recommendation FY 2008 administration request 

123—Culinary Training ........................................................................................................................ 10 

125—JSF Flight Training Site .............................................................................................................. 254 

124—Religious Training & Education .................................................................................................. 35 

137—Consolidated CPOs ...................................................................................................................... 99 

138—Consolidated Correctional Facilities ........................................................................................... 206 

131—Co-Ioc MILDEP Investigation Agencies ....................................................................................... 143,132 

146—Joint Basing ................................................................................................................................ 11,770 

149—Re-Ioc Misc Dept of Navy ........................................................................................................... 2,025 

165—Fleet Readiness Centers ............................................................................................................. 20,137 

166—Naval Shipyard Detachments ..................................................................................................... 11,110 

165—Ship Intermediate Maintenance Activity Norfolk ........................................................................ 19,450 

170—Brooks City Base ......................................................................................................................... 8 

173—Convert Inpatient Services to Clinics ......................................................................................... 1,205 

174—Joint Chem, Bio, and Medical .................................................................................................... 21,095 

172—San Antonio Regional Medical Center ........................................................................................ 10,744 

169—Walter Reed ................................................................................................................................. 720 

175—Commodity Management Privatization ....................................................................................... 36 

176—Depot Level Repairables ............................................................................................................. 311 

177—Supply, Storage & Distribution Management ............................................................................. 13 

188—Fixed Wing Air Platform .............................................................................................................. 8,804 

186—Integrated Weapons & Armaments ............................................................................................. 119 

181—Maritime C4ISR ........................................................................................................................... 1,181 

184—Naval Integrated Weapons & Armaments .................................................................................. 140,762 

189—Rotary Wing Platform .................................................................................................................. 521 

Navy Planning, Design, and Management ............................................................................................ 47,648 

Various Locations .................................................................................................................................. 4,044 

Subtotal, Navy .............................................................................................................................. 733,695 

AIR FORCE: 

3A—Fort McPherson ............................................................................................................................. 25,000 

68—NAS JRB Willow Grove & Cambria RAP ........................................................................................ 123 

79—Eielson AFB, Moody AFB, & Shaw AFB ......................................................................................... 7,055 

80—Kulis AGS / Elmendorf AFB ........................................................................................................... 26,790 

81—Fort Smith AGS & Luke AFB ......................................................................................................... 12 

82—Beale AFB & Selfridge ANGB ........................................................................................................ 10,962 

83—March ARB .................................................................................................................................... 5,184 

84—Onizuka AFS .................................................................................................................................. 1,974 

85—Bradley lAP AGS, Barnes AGS, Selfridge ANGB, Shaw AFB, Martin State AGS ........................... 5,811 

87—Robins AFB .................................................................................................................................... 2,102 

88—Boise Air Terminal AGS ................................................................................................................. 678 

89—Mountain Home AFB, Nellis AFB, & Elmendorf AFB ..................................................................... 3,356 

90—Capital AGS & Hulman RAP AGS ................................................................................................. 3,482 

91—New Orleans ARS .......................................................................................................................... 3,312 

92—Andrews AFB, Will Rogers AGS, Tinker AFB, Randolph AFB ........................................................ 1,613 

93—Martin State AGS .......................................................................................................................... 656 

94—Otis ANGB, Lambert-St Louis lAP AGS, Atlantic City AGS ........................................................... 39,871 

95—W.K. Kellogg AGS .......................................................................................................................... 1,109 

97—Key Field AGS ................................................................................................................................ 164 

98—Great Falls lAP AGS ...................................................................................................................... 3,868 

100—Cannon AFB ................................................................................................................................ 929 

101—Niagara Falls ARS ....................................................................................................................... 2,561 

103—Pope AFB, Pittsburgh lAP ARS, Yeager AGS ............................................................................... 38,607 

104—Grand Forks AFB ......................................................................................................................... 53,613 

105—Hector lAP AGS ............................................................................................................................ 1,639 

106—Mansfield Lahm MAP AGS .......................................................................................................... 6,216 

107—Springfield-Beckley MAP AGS ..................................................................................................... 287 

108—Portland lAP AGS ........................................................................................................................ 10,874 

110—Nashville lAP AGS ....................................................................................................................... 7,769 

111—Ellington Field AGS ..................................................................................................................... 4,651 

112—Lackland AFB .............................................................................................................................. 520 

113—Hill AFB, Edwards AFB, Mountain Home AFB, Luke AFB, Nellis AFB ......................................... 6,997 

115—Richmond AGS, Des Moines lAP AGS ......................................................................................... 3,074 

116—Fairchild AFB ............................................................................................................................... 346 

117—General Mitchell ARS .................................................................................................................. 143 

118—Air Force Logistics Support Centers ........................................................................................... 1,330 


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[In thousands of dollars] 

BRAC recommendation FY 2008 administration request 

119—F100 Engine Centralized Inter Repair Facilities ........................................................................ 387 

123—JOINT COE for Culinary Training ................................................................................................. 300 

124—JOINT COE for Religious Training and Education ...................................................................... 10 

125—JSF Initial Joint Training Site ..................................................................................................... 43,075 

128—Undergrad Pilot and Navigator Training .................................................................................... 58,882 

129—Co-Ioc Misc AF & NG Lease ....................................................................................................... 34,810 

137C—Consolidated CPOs ................................................................................................................... 11,644 

142—Consolidate TRANSCOM .............................................................................................................. 86,272 

143B—Consolidate/Co-Ioc Recruiting Centers ..................................................................................... 9,022

146—Joint Basing ................................................................................................................................ 3,697 

147—Air Force Real Property Agency ................................................................................................... 4,107 

170—Brooks City Base ......................................................................................................................... 239,454 

172—San Antonio Regional Medical Center ........................................................................................ 227,937 

173F—Convert Inpatient Services (MacDill) ........................................................................................ 60 

173H—Convert Inpatient Services (Scott) ........................................................................................... 70

175—Commodity Management Privatization ....................................................................................... 1,442 

176—Depot Level Repairables ............................................................................................................. 14,595 

177—Supply, Storage, and Distribution Management ........................................................................ 707 

187—Defense Research Led Lab ......................................................................................................... 85,476 

188A—Centers for Fixed Wing RDT&E ................................................................................................. 2,289 

195—Galena FOL .................................................................................................................................. 1,391 

Program Management BRAC 05 ........................................................................................................... 75,507 

Subtotal, Air Force ........................................................................................................................ 1,183,812 

COUNTERINTELLIGENCE FIELD ACTIVITY: 

131—Co-Ioc Investigative Agencies—West Peterson .......................................................................... 2,779 

DEFENSE COMMISSARY AGENCY: 

139—DECA Fort Lee ............................................................................................................................. 31,530 

DEFENSE CONTRACT MANAGEMENT AGENCY: 

133—Co-Ioc Misc OSD Leased Loc ...................................................................................................... 4,000 

DEFENSE FINANCE & ACCOUNTING SERVICE: 

145—Close/Realign DFAS Sites ........................................................................................................... 129,152 

DEFENSE INFORMATION SYSTEMS AGENCY: 

140—Realign Arlington Service Center ................................................................................................ 1,749 

140—Move Sky IV and V to Fort Meade .............................................................................................. 6,120 

140—Construct Facility at Fort Meade ................................................................................................ 267,236 

140—Realign DJC2 to Fort Meade ....................................................................................................... 437 

140—Realign JTRS to Fort Meade ....................................................................................................... 437 

Subtotal, DISA .............................................................................................................................. 275,979 

DEFENSE INTELLIGENCE AGENCY: 

130—Co-loc MILDEP Adjudication ....................................................................................................... 1,315 

167—Bolling AFB/Crystal Park 5 ......................................................................................................... 41,000 

Subtotal, DIA ................................................................................................................................ 42,315 

DEFENSE LOGISTICS AGENCY: 

175—Commodity Management Privatization ....................................................................................... 5,600 

176—Procurement & Item Management .............................................................................................. 54,918 

177—Supply, Storage, and Distribution Management ........................................................................ 153,182 

Subtotal, DLA ................................................................................................................................ 213,700 

DEFENSE SECURITY SERVICE: 

130—Fort Meade .................................................................................................................................. 582 

131—Quantico ...................................................................................................................................... 3,503 

Subtotal, DSS ............................................................................................................................... 4,085 

DEFENSE THREAT REDUCTION AGENCY: 

174—Aberdeen Proving Ground ........................................................................................................... 1,750 

MISSILE DEFENSE AGENCY: 

134—Co-loc Missile and Space Agencies ........................................................................................... 103,219 

NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY: 

168—NGA ............................................................................................................................................. 438,880 

NATIONAL SECURITY AGENCY: 

130—Fort Meade .................................................................................................................................. 2,831 

TRICARE MANAGEMENT ACTIVITY-DHP: 

169—Walter Reed ................................................................................................................................. 434,200 


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[In thousands of dollars] 

BRAC recommendation FY 2008 administration request 

172—San Antonio Regional Medical Center ........................................................................................ 226,816 

Subtotal, TMA ............................................................................................................................... 661,016 

WASHINGTON HEADQUARTERS SERVICE: 

133—Co-Ioc 4th Estate WHS ............................................................................................................... 326,051 

130—Consolidate Adjudication—WHS ................................................................................................. 3,264 

130—Consolidate Adjudication—WHS ................................................................................................. 490 

137—Co-Ioc CPOs to Columbus .......................................................................................................... 21 

Subtotal, WHS ............................................................................................................................... 329,826 

ADMINISTRATIVE PROVISIONS

The bill includes 28 provisions that were included in the fiscal 

year 2006 enacted appropriations bill. The bill also includes one 

new provision proposed by the Administration. This provision was 

included in the fiscal year 2007 House passed appropriations bill. 

Finally, the bill includes one new provision not proposed by the Administration. The administrative provisions included in the bill are 

as follows: 

Section 101 prohibits the use of funds for payments under a costplus-a-fixed-fee contract for construction where cost estimates exceed $25,000. An exception for Alaska is provided. 

Section 102 permits the use of construction funds for the hire of 

passenger motor vehicles. 

Section 103 permits funds to be expended on the construction of 

defense access roads under certain circumstances. 

Section 104 prohibits construction of new bases in the United 

States without a specific appropriation. 

Section 105 limits the use of funds for the purchase of land or 

land easements that exceed 100 percent of value except under certain conditions. 

Section 106 prohibits the use of funds to acquire land, prepare 

sites, or install utilities for family housing except housing for which 

funds have been appropriated. 

Section 107 limits the use of minor construction funds to be 

transferred or relocated from one installation to another. 

Section 108 prohibits the procurement of steel unless American 

producers, fabricators, and manufacturers have been allowed to 

compete. 

Section 109 prohibits the use of funds to pay real property taxes 

in foreign nations. 

Section 110 prohibits the use of funds to initiate a new installation overseas without prior notification. 

Section 111 establishes a preference for American architectural 

and engineering services where the services are in Japan, NATO 

member countries, and countries bordering the Arabian Gulf. The 

Administration proposed to delete this provision. 

Section 112 establishes a preference for American contractors for 

military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf, except bids by Marshallese contractors for 

military construction on Kwajalein Atoll. 


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Section 113 requires the Secretary of Defense to give prior notice 

to Congress of military exercises where construction costs, either 

temporary or permanent, exceed $100,000. The Administration proposed to delete this provision. 

Section 114 limits obligations to no more than 20 percent during 

the last two months of the fiscal year. The Administration proposed 

to delete this provision. 

Section 115 allows funds appropriated in prior years to be used 

for new projects authorized during the current session of Congress. 

Section 116 allows the use of expired or lapsed funds to pay the 

cost of supervision for any project being completed with lapsed 

funds. 

Section 117 provides that funds for military construction projects 

are available until the end of the fourth fiscal year following the 

fiscal year in which funds are appropriated, subject to certain conditions. 

Section 118 requires the Secretary of Defense to report annually 

on actions taken during the current fiscal year to encourage other 

member nations of NATO, Japan, Korea, and United States allies 

bordering the Arabian Gulf to assume a greater share of defense 

costs. The Administration proposed to delete this provision. 

Section 119 allows for the transfer of proceeds from ‘‘Base Realignment and Closure Account, Part I’’ to the continuing Base Realignment and Closure accounts. 

Section 120 allows for the transfer of funds from Family Housing, Construction accounts to the Department of Defense Family 

Housing Improvement Fund and funds from Military Construction 

accounts to the Department of Defense Military Unaccompanied 

Housing Improvement Fund. 

Section 121 prohibits the obligation of funds for Partnership for 

Peace Programs in the New Independent States of the former Soviet Union. The Administration proposed to delete this provision. 

Section 122 requires the Secretary of Defense to notify Congressional Committees sixty days prior to issuing a solicitation for a 

contract with the private sector for military family housing. The 

Administration proposed to delete this provision. 

Section 123 provides transfer authority to the Homeowners Assistance Program. 

Section 124 requires that funds in this title be the sole source of 

all operation and maintenance for flag and general officer quarter 

houses, and limits the repair on these quarters to $35,000 per year 

without notification. The Administration proposed to modify this 

provision. 

Section 125 prohibits funds appropriated for the NATO Security 

Investment Program from being obligated or expended for the purpose of missile defense studies. The Administration proposed to delete this provision. 

Section 126 requires the Secretary of Defense or any other official of the Department of Defense to respond in writing to a question or inquiry submitted by the chairman or another member of 

the subcommittee within 21 days. The Administration proposed to 

delete this provision. 

Section 127 makes funds in the Ford Island Improvement Fund 

available until expended. 


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Section 128 prohibits the use of funds for military construction, 

family housing, or land acquisition projects at installations closed 

or realigned under BRAC, except under certain conditions. The Administration proposed to delete this provision. 

Section 129 allows the transfer of expired funds to the ‘‘Foreign 

Currency Fluctuations, Construction, Defense’’ account. This provision was included in the fiscal year 2007 House passed appropriations bill and is proposed by the Administration in fiscal year 2008. 

Section 130 prohibits the use of funds in this title for any activity 

related to the construction of an Outlying Landing Field in Washington County, North Carolina. 

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS 

Fiscal year 2007 enacted level ..................................... 1 $77,761,944,000 

Fiscal year 2008 budget request ................................. 1 83,903,751,000 

Committee recommendation in the bill ...................... 1 87,696,839,000 

Comparison with: 

Fiscal year 2007 enacted level ............................. 9,934,895,000 

Fiscal year 2008 budget request .......................... 3,793,088,000 1 All funding cited above excludes amounts in the Medical Care Collections Fund. 

The Department of Veterans Affairs is one of the largest Federal 

agencies in terms of employment with an average employment of 

approximately 227,000. The nation has more than 24,000,000 veterans, and 36,600,000 family members of living veterans and survivors of deceased veterans. Thus, close to 61,000,000 people, comprising about 20 percent of the total population of the United 

States, are potential recipients of veterans benefits provided by the 

Federal government. The Committee recommends a total of $87,696,839,000 in new 

budget authority for programs in fiscal year 2008, an increase of 

$9,934,895,000 or 12.8 percent above the fiscal year 2007 enacted 

level and an increase of $3,793,088,000 above the budget request. 

The funds recommended provide compensation payments to 

3,221,238 veterans and survivors of deceased veterans with serviceconnected disabilities; pension payments to 513,034 non-serviceconnected disabled veterans, widows and children in need of financial assistance; education training, tuition assistance, and vocational assistance to 670,934 veterans, servicemembers, and reservists, and 89,214 eligible dependents of deceased veterans or seriously disabled veterans; housing credit assistance in the form of 

180,000 guaranteed loans to veterans and servicemembers; administration or supervision of life insurance programs with 7,149,360 

policies for veterans and active duty servicemembers providing coverage of $1,116,486,000,000; inpatient care and treatment of beneficiaries in 155 hospitals, 45 domiciliary residential rehabilitation 

treatment programs (formerly called ‘‘domiciliaries’’), 135 nursing 

homes, and 925 outpatient clinics, which includes independent, satellite, community-based, and rural outreach clinics involving 

67,423,000 visits; and administration of the National Cemetery Administration for burial of eligible veterans, servicemembers and 

their survivors. 

Paralympic Military Program.— The Committee understands 

that the Department has entered into a Memorandum of Understanding with the United States Olympic Committee to develop a 


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Paralympic Military Program. The Committee encourages the Department to continue its work with the United States Olympic 

Committee and explore efforts to promote Paralympic sport and 

other physical activity programs to disabled veterans in their communities. The Committee believes that the programs and activities 

that constitute the Paralympic Military Program are central to the 

rehabilitation, health promotion, and prevention of secondary medical conditions. 

Veterans Rights and Feedback.—Recent events at Walter Reed 

Army Medical Center have shown that our servicemembers and 

veterans often struggle not only with the processes required to obtain health care and benefits, but also with the procedures to obtain assistance with and provide feedback on these systems. While 

it is important to continue to make every effort to streamline the 

health care and benefits systems, we must also ensure that our veterans have easy access to help when they need it and the opportunity to express their concerns. The Committee appreciates that 

there are a number of methods the Department uses to measure 

satisfaction and offer assistance, but is concerned that our veterans 

do not have sufficient information on how to access these tools. The 

Committee believes that the best assessment of how well we as a 

nation provide for our veterans comes from our veterans and that 

all veterans should be able to easily find, both at Department facilities and on-line, a method for obtaining assistance and/or providing 

feedback. Therefore, the Committee directs that of the funds available within the General Operating Expenses appropriation, 

$5,000,000 shall be used to develop and operate a toll-free telephone and web based assistance and feedback system similar to the 

Wounded Soldier and Family Hotline recently adopted by the Department of Defense. 

Silicosis Pneumoconiosis.—The Committee received testimony 

raising concerns with respect to the Department of Veterans Affairs management and adjudication of inquiries and claims from 

veterans potentially suffering from silicosis pneumoconiosis, a dust 

induced lung disease. The Committee requests the Department to 

report, by September 5, 2007, on the number of all inquiries or 

claims by veterans with this disease, the status of such inquiries 

and claims, and the current number of diagnosed cases of this disease among veterans. 

Homeless Veterans.—The Committee understands that on any 

given night, there are an estimated 200,000 homeless veterans in 

the United States. The Committee is also aware that the Federal 

Emergency Management Agency (FEMA) has surplus trailers 

available. The Committee directs the Secretary of Veterans Affairs 

to work with FEMA and other relevant Federal agencies on a feasibility study to determine how these surplus FEMA trailers can be 

used to house homeless veterans and report its findings to the 

Committee within six months after the date of enactment of this 

Act. 

Rural Health.—The Committee notes that Public Law 109–461 

directed the establishment of an Office of Rural Health within the 

Office of the Under Secretary for Health. To date, after more than 

six months, there has been no action taken to implement the provision regarding the Office of Rural Health. The Committee urges the 

Department to move forward in an expeditious manner. 


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Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

Administration, in selecting these projects, goes through a process 

that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional 

priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 

Department use of Contractors and Non-competitive Contracting.—In the Department of Veterans Affairs, billions of dollars 

of funding is allocated per year solely at the discretion of the Executive Branch through numerous grant programs. Hard and fast 

rules on how these funding proposals are evaluated and rank ordered are not in place. In an attempt to learn more about the Executive Branch process, the Committee requested information on the 

number of non-competitive contracts awarded in 2005 and 2006. 

The Committee was informed that the requested information was 

not available. As light is shone on the Congressional process in directing funding, so should it be shone on the Executive Branch 

process. 

In addition to non-competitive contracting and grant authority, 

the Executive Branch steers or directs money to specific entities or 

purposes through a process of contracting-out various activities and 

services. In many important work locations, the number of people 

working for contractors exceeds the number of Federal employees 

in the same building or location. For example, the Department of 

Veterans Affairs recently submitted to the Committee information 

which indicates 11,270 people, or 42 percent, working at the VA 

Central Office are contractors. When asked how that number has 

changed over the past years, the Department responded that the 

information was not available. 

Considering all sources, the Executive Branch steers or directs 

far greater spending to specific projects or corporations than is directed or earmarked by Congress. Many of these, in fact, are noncompetitive or sole-sourced. 

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $38,007,095,000 

Fiscal year 2008 budget request ....................................................... 41,236,322,000 

Committee recommendation in the bill ............................................ 41,236,322,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 3,229,227,000 

Fiscal year 2008 budget request ................................................ – – –

This appropriation provides funds for service-connected compensation payments to an estimated 3,221,238 beneficiaries and 


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pension payments to another 513,034 beneficiaries with non-service-connected disabilities. The average cost per compensation case 

in 2008 is estimated at $12,786, and pension payments are projected at a unit cost of $7,402. The Committee recommends an appropriation of $41,236,322,000 

for compensation, pension, and burial benefits, an increase of 

$3,229,227,000 above the fiscal year 2007 enacted level and the 

same as the budget request. 

The appropriation includes authority to transfer funding not to exceed $25,033,000, of which $9,583,000 is for the general operating expenses account and $15,450,000 is for the medical administration account. These funds are for the administrative expenses of 

implementing cost saving provisions required by the Omnibus 

Budget Reconciliation Act of 1990, Public Law 101–508, the Veterans’ Benefits Act of 1992, Public Law 102–568, and the Veterans’ Benefits Improvements Act of 1994, Public Law 103–446. These 

cost saving provisions include verifying pension income against Internal Revenue Service (IRS) and Social Security Administration 

(SSA) data; establishing a match with the SSA to obtain 

verification of Social Security numbers; and the VA pension cap for 

Medicaid-eligible single veterans and surviving spouses alone in 

Medicaid-covered nursing homes. The bill also includes language 

permitting this appropriation to reimburse such sums as may be 

earned to the medical care collections fund to help defray the operating expenses of individual medical facilities for nursing home 

care provided to pensioners. 

The Committee concurs with the Administration proposal to provide a cost-of-living adjustment (COLA), based on the change in the 

Consumer Price Index, to all compensation beneficiaries, including 

dependency and indemnity compensation for spouses and children. 

This adjustment is currently estimated at 1.4 percent and is the 

same as the COLA that will be provided, under current law, to veterans’ pension and Social Security recipients. The increase, effec- tive December 1, 2007, has an estimated cost of $348,421,000 during fiscal year 2008 and is reflected in the Compensation and Pensions appropriation level 

READJUSTMENT BENEFITS

Fiscal year 2007 enacted level ........................................................... $3,262,006,000 

Fiscal year 2008 budget request ....................................................... 3,300,289,000 

Committee recommendation in the bill ............................................ 3,300,289,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 38,283,000 

Fiscal year 2008 budget request ................................................ – – –

This appropriation finances the education and training of veterans and servicemembers whose initial entry on active duty took 

place on or after July 1, 1985. These benefits are included in the 

All-Volunteer Force Educational Assistance Program. Eligibility to 

receive this assistance began in 1987. Basic benefits are funded 

through appropriations made to the readjustment benefits appropriation and transfers from the Department of Defense. Supplemental benefits are also provided to certain veterans through education assistance to certain members of the Selected Reserve and 

are funded through transfers from the Department of Defense. In 

addition, certain disabled veterans are provided with vocational reVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

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habilitation, specially adapted housing grants, and automobile 

grants with approved adaptive equipment. 

This account also finances educational assistance allowances for 

eligible dependents of those veterans who died from service-connected causes or have a total and permanent service-connected disability as well as dependents of servicemembers who were captured 

or missing-in-action. The Committee recommends an appropriation of $3,300,289,000 for readjustment benefits, an increase of $38,283,000 above the fiscal year 2007 enacted level and the same as the budget request. 

VETERANS INSURANCE AND INDEMNITIES

Fiscal year 2007 enacted level ........................................................... $49,850,000 

Fiscal year 2008 budget request ....................................................... 41,250,000 

Committee recommendation in the bill ............................................ 41,250,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (8,600,000) 

Fiscal year 2008 budget request ................................................ – – –

The Veterans Insurance and Indemnities appropriation is made 

up of the former appropriations for military and naval insurance, 

applicable to World War I veterans; national service life insurance 

(NSLI), applicable to certain World War II veterans; servicemen’s 

indemnities, applicable to Korean conflict veterans; and the veterans mortgage life insurance, applicable to individuals who have 

received a grant for specially adapted housing. 

The Committee recommends an appropriation of $41,250,000 for 

veterans insurance and indemnities, a decrease of $8,600,000 below 

the fiscal year 2007 enacted level and the same as the budget request. The amount provided will enable the Department to transfer 

funding to the service-disabled veterans insurance fund and transfer additional amounts for payments for the 2,310 policies under 

the veterans mortgage life insurance program. These policies are 

identified under the veterans’ insurance and indemnity appropriation since they provide insurance to service-disabled veterans unable to qualify under basic NSLI. 

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Program account 

Limitation on direct 

loans for specially 

adapted housing 

loans 

Administrative expenses 

Fiscal year 2007 enacted 

level .................................. $66,234,000 $500,000 $154,284,000 

Fiscal year 2008 budget request ................................. 17,389,000 500,000 154,562,000 

Committee recommendation 

in the bill ......................... 17,389,000 500,000 154,562,000 

Comparison with: 

Fiscal year 2007 enacted level ........................ (48,845,000) – – – 278,000 

Fiscal year 2008 budget request ......................... – – – – – – – – –

The purpose of the home loan guaranty program is to facilitate 

the extension of mortgage credit on favorable terms by private 

lenders to eligible veterans. This appropriation provides for all 

costs, with the exception of the Native American veterans housing 


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loan program, of the Department’s direct and guaranteed loans programs. The Federal Credit Reform Act of 1990 requires budgetary 

resources to be available prior to incurring a direct loan obligation 

or a loan guaranty commitment. In addition, the bill requires all 

administrative expenses of a direct or guaranteed loan program to 

be funded through a program account. Loan guaranties are made 

to servicemembers, veterans, reservists, and single surviving 

spouses for the purchase of homes, condominiums, and manufactured homes and for refinancing loans. The Department guarantees 

part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. The Department requires that a down 

payment be made for a manufactured home. With a Department 

guaranty, the lender is protected against loss, up to the amount of 

the guaranty, if the borrower fails to repay the loan. 

The Committee recommends such sums as may be necessary 

(currently estimated to total $17,389,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially 

adapted housing loans, and $154,562,000 for administrative expenses. The appropriation for administrative expenses may be 

transferred to and merged with the General Operating Expenses 

account. 

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Program account Limitation on direct 

loans 

Administrative ex- penses 

Fiscal year 2007 enacted 

level .................................. $53,000 $4,242,000 $305,000 

Fiscal year 2008 budget request ................................. 71,000 3,287,000 311,000 

Committee recommendation 

in the bill ......................... 71,000 3,287,000 311,000 

Comparison with: 

Fiscal year 2007 enacted level ........................ 18,000 (955,000) 6,000 

Fiscal year 2008 budget request ................................. – – – – – – – – –

This appropriation covers the funding subsidy cost of direct loans 

for vocational rehabilitation of eligible veterans and, in addition, it 

includes administrative expenses necessary to carry out the direct 

loan program. Loans of up to $1,016 (based on indexed chapter 31 

subsistence allowance rate) are available to service-connected disabled veterans enrolled in vocational rehabilitation programs when 

the veteran is temporarily in need of additional assistance. Repayment is made in monthly installments, without interest, through 

deductions from future payments of compensation, pension, subsistence allowance, educational assistance allowance, or retirement 

pay. Most loans are repaid in full in less than one year. The Federal Credit Reform Act of 1990 requires budgetary resources to be 

available prior to incurring a direct loan obligation. In addition, the 

Act requires all administrative expenses of a direct loan program 

be funded through a program account. 

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trative expenses may be transferred to and merged with the General Operating Expenses account. 

In addition, the Committee includes language limiting direct loans to $3,287,000. It is estimated that the Department will make 

4,349 loans in fiscal year 2008, with an average amount of $756. 

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Administrative expenses: 

Fiscal year 2007 enacted level ........................................................... $584,000 

Fiscal year 2008 budget recommendation ........................................ 628,000 

Committee recommendation in the bill ............................................ 628,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 44,000 

Fiscal year 2008 budget request ................................................ – – –

The Native American Veteran Housing Loan Program, as authorized by title 38 United States Code, chapter 37, subchapter V, provides the Secretary with authority to make direct housing loans to 

Native American veterans for the purpose of purchasing, constructing, or improving dwellings on trust lands. The Committee 

recommends the budget request of $628,000 for administrative expenses of the Native American Veteran Housing Loan Program, 

which may be transferred to and merged with the General Operating Expenses account. 

GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS

VETERANS PROGRAM ACCOUNT

Public Law 105–368, the Veterans Benefits Enhancement Act of 

1998, established this program. All funds authorized for this program were appropriated in fiscal year 2000. Therefore, no appropriation request has been included for fiscal year 2008. Bill language is included allowing the use of up to a total of $750,000 in 

Medical Administration and General Operating Expenses funds to 

administer this program. 

VETERANS HEALTH ADMINISTRATION

The Department operates the largest Federal medical care delivery system in the country, with 155 hospitals, 45 domiciliary residential rehabilitation treatment programs (formerly called ‘domiciliaries’), 135 nursing homes, and 925 outpatient clinics which include independent, satellite, community-based, and rural outreach 

clinics. 

The Veterans Health Administration is comprised of four accounts: medical services, medical administration, medical facilities, 

and medical and prosthetic research. For these accounts, the Administration has requested total resources of $34,612,671,000 in direct appropriations and $2,414,000,000 in Medical Care Collections 

Fund appropriations, to fund the various operating programs of the 

VHA. 

The Committee recommends an appropriation of $37,122,000,000 

for these accounts. This is an increase of $4,442,265,000, or 13.6 

percent, above the fiscal year 2007 enacted level and an increase 

of $2,509,329,000 above the budget request. The Committee recommendation builds on the information provided in public hearings 


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to include testimony from the Government Accountability Office 

which indicated that health care spending per capita has grown on 

average 6.9 percent annually; testimony from the Congressional 

Budget Office (CBO) which indicated that the demand for VHA 

medical services may grow 3.6 percent annually; and testimony 

from the Centers for Medicare and Medicaid Services which 

projects growth in health care spending to continue to increase by 

7 percent annually. Based on this testimony and the fact that the 

VHA has had an average annual increase in workload of 4 percent, 

the Committee believes that a workload growth estimate for Medical Services of 5.5 percent is more realistic than the 2.4 percent 

that was used by the Department to prepare the budget request. 

Additionally, the Committee agrees with the recommendation of 

the many research organizations and veteran advocates that testified during hearings that an increase in funding for medical and 

prosthetic research is necessary to allow the Department to increase research in areas that are most relevant to our veterans, 

such as traumatic brain injury, post-traumatic stress disorder 

(PTSD), and geriatric psychiatry. 

Health Care Sharing Incentive Fund.—Recent reviews of the 

health care programs for our servicemembers and veterans continue to highlight challenges in caring for our traumatic brain injury, polytrauma injury, blast injury, burn, mental health/PTSD, 

and amputee patients as well as continued difficulty with seamless 

transition and the transfer of medical records. With the large volume of Reserve and National Guard that have deployed to Operation Enduring Freedom and Operation Iraqi Freedom (OEF/OIF), 

it is critical that the Department of Defense and Department of 

Veterans Affairs work as partners if they are to ensure that care 

is available to this geographically dispersed population and to all 

veterans. The bill includes language to allow the Department of 

Veterans Affairs to transfer a minimum of $15,000,000 to the DoD/ 

VA Health Care Sharing Incentive Fund. The Committee directs 

that these funds are to be used for joint programs between the Departments that seek to improve the continuity of care for veterans 

through the establishment of Joint Centers of Excellence for traumatic brain injury and PTSD as recommended by the Independent 

Review Group (report of April, 2007); joint research and/or treatment of polytrauma injury, traumatic brain injury, blast injury, 

mental health/PTSD, burn, and amputee patients; joint research 

and the development of comprehensive and universal clinical practice guidelines based on evidence-based medicine and clinical efficacy for blast injuries, traumatic brain injuries, and PTSD; increased access to services through joint clinics; and projects that 

promote a seamless transition to include programs that improve 

the electronic exchange of information, the development of a system of co-management and case management as recommended by 

The Task Force on Returning Global War on Terror Heroes, and 

the development of a single transition physical examination. The 

Committee urges the Department to fully and fairly consider all incentive fund applications, including those for feasibility studies. 

Polytrauma and Mental Health.—Recent appropriation acts have 

sought to ensure that the very best in medical care is provided to 

our veterans, particularly those veterans who have suffered multiple trauma injuries or require mental health services. Support for 


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these veterans include the four current Level I Polytrauma Centers, one additional pending Level I Polytrauma Center, and the 

three Centers of Excellence on Mental Health and PTSD. The Committee wants to be certain that these important medical resources 

are funded at levels that ensure that they are all fully operational 

by the end of fiscal year 2008. Therefore, the Committee has increased funding within the medical accounts so that sufficient 

funds may be provided to the Level I Polytrauma Centers and the 

Centers of Excellence on Mental Health and PTSD to ensure that 

they are each fully operational by the end of fiscal year 2008. The 

Committee directs the Secretary to provide a report on the status 

of these facilities by February 1, 2008. 

Traumatic Brain Injury.—All reports indicate that traumatic 

brain injury is among the signature injuries of the Global War on 

Terror. The Committee recognizes that the Department is working 

diligently to address the challenges associated with this injury 

through early detection and treatment. The Committee wishes to 

further highlight the importance of this by directing that all future 

budget requests include traumatic brain injury as a Select Program. 

Far South Texas Inpatient Care.—The Committee notes that the 

Capital Asset Realignment for Enhanced Services (CARES) report 

recognized inpatient access gaps existed in various locations, including the Valley-Coastal Bend market in Texas. The CARES solution was to recommend that the Department use existing authorities and policies to contract for care to improve access to inpatient care in this market. It has come to the attention of the Committee that this solution has been less than optimal. Accordingly, 

the Secretary is directed to review the CARES recommendation for 

the Valley-Coastal market, and report to the Committees on Appropriations of both Houses of Congress on all options available to address the inpatient access issues facing this market’s population, 

including the feasibility of new hospital construction by February 

1, 2008. 

Veterans Services in Los Angeles County.—The Committee notes 

the concentration of veterans’ health care services in West Los Angeles to the exclusion of other areas of that county, particularly the 

San Gabriel Valley. The Committee directs the Department to report on how new or additional veterans’ facilities and services in 

Los Angeles County can be located more proximate to the many 

veterans who live in the San Gabriel Valley and further to the east. 

Hospital Quality Report Card.—The Committee urges the Secretary of the Department of Veterans Affairs to report to Congress 

on the quality of veterans’ health facilities. This report shall include quality measurements that allow for an assessment of effectiveness, safety, timeliness, efficiency, patient-centeredness, and 

equity. The report shall provide the data used to make these determinations, including, but not limited to, the staffing levels of 

nurses and other health professionals; rates of nosocomial infection; 

the volume of various procedures performed; hospital sanctions and 

other violations; the quality of care for various patient populations 

including female, geriatric, disabled, rural, homeless, mentally ill, 

racial and ethnic minority populations; the availability of emergency rooms, intensive care units, maternity care, and specialty 

services; the quality of care in various hospital settings including 


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inpatient, outpatient, emergency, maternity, and intensive care 

units; ongoing patient safety initiatives; and other measures 

deemed appropriate by the Secretary. 

MEDICAL SERVICES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2007 enacted level ........................................................... $25,518,254,000 

Fiscal year 2008 budget request ....................................................... 27,167,671,000 

Committee recommendation in the bill ............................................ 28,906,400,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 3,388,146,000 

Fiscal year 2008 budget request ................................................ 1,738,729,000 

This appropriation provides for medical services of eligible veterans and beneficiaries in Department medical centers, outpatient 

clinic facilities, contract hospitals, State homes, and outpatient programs on a fee basis. Hospital and outpatient care is also provided 

by the private sector for certain dependents and survivors of veterans under the civilian health and medical programs for the Department of Veterans Affairs. The Committee recommends an appropriation of $28,906,400,000 for Medical Services, an increase of $3,388,146,000 or 13.3 percent 

above the fiscal year 2007 enacted level and an increase of 

$1,738,729,000 above the budget request. The Committee is concerned that current VHA treatment capacity in areas that are seeing increased patient demand from returning OEF/OIF veterans 

will be insufficient to provide for these veterans and the veterans 

who were already on waiting lists to receive care in these areas. 

The Committee recommendation builds on the information provided in public hearings to include testimony from the Government 

Accountability Office which indicated that health care spending per 

capita had grown on average 6.9 percent annually; testimony from 

the Congressional Budget Office which indicated that the demand 

for VHA medical services may grow 3.6 percent annually; and testimony from the Centers for Medicare and Medicaid Services which 

projects growth in health care spending to continue to increase by 

seven percent annually. Therefore, the Committee recommendation 

for the current services as submitted in the budget request is 

$28,195,873,388 and was obtained by applying an inflation increase 

of 4.45 percent and a workload increase of 5.5 percent to the fiscal 

year 2007 appropriation. The Committee recommendation also includes an additional $70,880,754 for substance abuse; $12,500,000 

for expanded outpatient services for the blind; and $604,325,858 to 

increase funding for mental health and traumatic brain injury initiatives and/or services; ensure that the Level I Polytrauma Centers and the Centers of Excellence on Mental Health and PTSD 

will be fully staffed and operational by the end of fiscal year 2008; 

and to maintain inpatient psychiatric capacity at fiscal year 2007 

levels. This recommendation also increases the homeless grants 

and per diem program to the full authorized level of $130,000,000. 

The Committee has included bill language to make available 

through September 30, 2009, up to $1,100,000,000 of the Medical 

Services appropriation. 

The Committee concurs with the request to allow the Secretary 

to realign 5,689 full-time equivalents and $400,000,000 for food 

service operations from the Medical Facilities appropriation to the 


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Medical Services appropriation. The cost for food service operations 

support hospital food service workers, provisions, and supplies 

which are related to the direct care of patients. 

Mental Health and Substance Abuse.—The Committee is disappointed that the Department elected to increase funding for substance abuse by less than one percent for fiscal year 2008. Substance abuse, to include alcohol dependence, exacerbates psychiatric and medical problems and undermines patient treatment. 

The National Center for PTSD has reported that 58 percent of veterans with Substance Use Disorder also have lifetime PTSD and 

that the odds of drug use disorders are three times more likely to 

occur in veterans who have a PTSD diagnosis. The Committee recommends an appropriation of $428,873,754 for the Substance 

Abuse Program which is an increase of $70,880,754 above the 

President’s request. The Committee is also disappointed that the 

budget request included a reduction in the number of inpatient 

psychiatric admissions and has increased funding within the Medical Services appropriations account to return admissions to the fiscal year 2007 level. The Committee directs that inpatient psychiatric beds will not be reduced at any facility that has a waiting 

list for inpatient psychiatric treatment. The Committee is also very 

concerned that many veterans are being denied inpatient psychiatric care due to substance abuse and urges the Department to 

consider the feasibility of dual diagnosis treatment programs. Additionally, the Committee is concerned that our veterans do not have 

equal access to mental health services. For example, veterans that 

live in areas where there are insufficient mental health providers 

or live too far from VHA facilities to make access and/or compliance 

realistic, struggle to obtain the care they need. Mental health is not 

only important to overall health, it is also a key component to a 

veteran’s readjustment. The Committee therefore urges the Department to consider these veterans in particular as it implements the 

mental health initiative funding provided in this account and to 

look for all opportunities to ensure mental health parity to include 

contracting for care when needed and developing internet based 

services like the Network of Care for Mental Health recommended 

in the President’s New Freedom Commission on Mental Health. 

Outpatient Services for the Blind.—One of the outcomes of OEF/ 

OIF is an increase in the number of servicemembers that have sustained an eye injury and/or have suffered partial or total blindness. 

Their injuries are going to result in an increased demand for VHA 

blind rehabilitation services. It is reported that there is already a 

waiting list in excess of 1200 patients for inpatient rehabilitation 

services and the Committee is concerned that this increased demand is going to result in even longer waiting times for all veterans. The Committee supports the recommendations of the GAO 

Report: More Outpatient Rehabilitative Services for Blind Veterans 

Could Better Meet their Needs and directs that of the funds available within the Medical Services appropriation, not less than 

$12,500,000 is to be used for expanding outpatient blind rehabilitation services and training while maintaining current inpatient capacity. 


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MEDICAL CARE COLLECTIONS FUND

The Department of Veterans Affairs Medical Care Collections 

Fund (MCCF) was established by the Balanced Budget Act of 1997 

(Public Law 105–33). The Department deposits first-party and 

pharmacy co-payments, third-party insurance payments and enhanced-use collections, long-term care co-payments, Compensated 

Work Therapy Program collections, Compensation and Pension Living Expenses Program collections, and Parking Program fees into 

the MCCF. The Congressional Budget Office estimate of fees that 

will be collected in fiscal year 2008 is $2,414,000,000. The bill does 

not include any language regarding the Medical Care Collections 

Fund since permanent authority was included in the fiscal year 

2005 appropriations bill, Public Law 108–447. 

MEDICAL ADMINISTRATION

Fiscal year 2007 enacted level ........................................................... $3,177,968,000 

Fiscal year 2008 budget request ....................................................... 3,442,000,000 

Committee recommendation in the bill ............................................ 3,635,600,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 457,632,000 

Fiscal year 2008 budget request ................................................ 193,600,000 

The Medical Administration appropriation provides funds for the 

expenses of management and administration of the Department’s 

health care system. Included under this heading are provisions for 

costs associated with operation of department medical centers, 

other facilities, and VHA headquarters, plus the costs of VISN offices and facility director offices, chief of staff operations, quality of 

care oversight, legal services, billing and coding activities, procurement, financial management, and human resources management. 

The Committee recommends an appropriation of $3,635,600,000 

for Medical Administration, an increase of $457,632,000 above the 

fiscal year 2007 enacted level and an increase of $193,600,000 

above the budget request. Funding within the Medical Administration appropriation has been increased to ensure that the Level I 

Polytrauma Centers and the Centers of Excellence on Mental 

Health and PTSD will be fully staffed and operational by the end 

of fiscal year 2008. 

The Committee has included bill language to make available through September 30, 2009, up to $250,000,000 of the Medical Administration appropriation. 

MEDICAL FACILITIES

Fiscal year 2007 enacted level ........................................................... $3,569,533,000 

Fiscal year 2008 budget request ....................................................... 3,592,000,000 

Committee recommendation in the bill ............................................ 4,100,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 530,467,000 

Fiscal year 2008 budget request ................................................ 508,000,000 

The Medical Facilities appropriation provides funds for the operation and maintenance of the Department’s health care system’s 

capital infrastructure. Included under this heading are provisions 

for costs associated with utilities, engineering, capital planning, 

leases, laundry, groundskeeping, garbage, housekeeping, facility repair, and property disposition and acquisition. 


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The Committee recommends an appropriation of $4,100,000,000 for Medical Facilities, an increase of $530,467,000 above the fiscal 

year 2007 enacted level and an increase of $508,000,000 above the 

budget request. 

The Committee concurs with the request to allow the Secretary to realign 5,689 full-time equivalents and $400,000,000 for food 

service operations from the Medical Facilities appropriation to the 

Medical Services appropriation. The cost for food service operations 

support hospital food service workers, provisions, and supplies 

which are related to the direct care of patients. 

The Committee has included bill language to make available through September 30, 2009, up to $250,000,000 of the Medical Facilities appropriation. The bill provides $300,000,000, in addition to the budget request, 

for non-recurring maintenance. The additional amount provided is 

to be allocated in a manner not subject to the Veterans Equitable 

Resource Allocation. The Committee recommendation reflects concern that the Department has been placing less than adequate emphasis on maintenance of facilities. In the extreme, such neglect 

could give rise to serious problems that would have negative consequences for patient care. The Committee will continue to view facility maintenance as an item of special interest and directs the 

Secretary to report within 30 days of enactment of this Act on the 

distribution of all non-recurring maintence funding by facility and 

project or effort. 

Community-Based Outpatient Clinics.—The Committee remains 

concerned that the Congress is not receiving the most accurate and 

timely information on plans for new community-based outpatient 

clinics proposed by the Department. The Department is directed to 

report to the Committees on Appropriations of both Houses of Congress, within 60 days of enactment of this Act, on its plans for activation of the 29 clinics (funded in prior years) identified in response to questions from the Committee and the unspecified number of clinics, alluded to in testimony presented to the Committee, 

being planned for fiscal year 2008. This report is to include the location of each facility, the type of facility being planned, the cost 

for activation and operation of each facility, the fiscal year funding 

being used for activation of each facility, the type of funding being 

used for activation and operations, and the date on which the facility will be fully activated. In addition, the Department is urged to 

examine the need for, and report on the feasibility of, clinics in the 

following locations: Riverhead, New York; Northwest Washington; 

El Centro, California; Jackson County, Florida; Port Angeles, 

Washington; Plymouth, Massachusetts; Charlottesville, Virginia; 

and Southeastern Pennsylvania. 

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2007 enacted level ........................................................... $413,980,000 

Fiscal year 2008 budget request ....................................................... 411,000,000 

Committee recommendation in the bill ............................................ 480,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 66,020,000 

Fiscal year 2008 budget request ................................................ 69,000,000 

This account includes medical, rehabilitative, and health services 

research. Medical research is an important aspect of the Department’s programs, providing complete medical and hospital services 


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for veterans. The prosthetic research program is also essential in 

the development and testing of prosthetic, orthopedic, and sensory 

aids for the purpose of improving the care and rehabilitation of eligible disabled veterans, including amputees, paraplegics, and the 

blind. The health services research program provides unique opportunities to improve the effectiveness and efficiency of the health 

care delivery system. In addition, budgetary resources from a number of areas including appropriations from the medical care accounts, reimbursements from the Department of Defense, and 

grants from the National Institutes of Health, private proprietary 

sources, and voluntary organizations provide support for the Department’s researchers. 

The Committee recommends an appropriation of $480,000,000 for Medical and Prosthetic Research, an increase of $66,020,000 above 

the fiscal year 2007 enacted level and an increase of $69,000,000 

above the budget request. The Committee is pleased by the 

progress the Department has made in adjusting its research program to support the medical issues most prevalent within our veteran population. The Committee urges the Department to continue 

these efforts and to also consider additional research in the areas 

of mental health—especially the causes, prevention, mitigation, 

and treatment of PTSD; the development of clinical practices using 

evidence-based medicine for the treatment of PTSD/Substance Use 

Disorder comorbidity; the full spectrum of traumatic brain injury; 

substance abuse; geriatric psychiatry; and obesity. 

Evidence-Based Technology Research.—The Committee believes 

the Department is uniquely positioned to lead the nation in applying medical research to medical practice. One important advantage 

of this intramural research program is that it allows the Department to develop a requirements driven program based on patient 

demand that allows for adjustment of clinical practices using evidence-based medicine and clinical efficacy. Recent testimony has 

reinforced with the Committee that this nation continues to struggle to control the cost of health care due in no small part to the 

increased use of expensive technologies without sufficient evidence 

to justify their costs. These contribute to unwarranted variations in 

clinical practices where good evidence-based medicine would reduce 

this variation and attendant costs. The Committee encourages the 

Department to expand its research in this area, to form a more active partnership with the Department of Defense, and to increase 

its efforts to share those outcomes within the national health care 

community. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

Fiscal year 2007 enacted level ........................................................... $1,481,473,000 

Fiscal year 2008 budget request ....................................................... 1,471,837,000 

Committee recommendation in the bill ............................................ 1,598,500,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 117,027,000 

Fiscal year 2008 budget request ................................................ 126,663,000 

The General Operating Expenses appropriation provides for the 

administration of non-medical veterans benefits through the Veterans Benefits Administration and departmental management and 

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counting of Federal credit programs and required that all administrative costs associated with such programs be included within the 

respective credit accounts. Beginning in fiscal year 1992, costs incurred by housing and vocational rehabilitation programs for administration of these credit programs are reimbursed by those accounts. The bill includes the budget requests totaling $123,846,000 

in other accounts for these credit programs. In addition, $9,583,000 

is transferred from the compensation and pensions account for administrative costs of implementing cost saving provisions required 

by the Omnibus Budget Reconciliation Act of 1990 and the Veterans’ Benefits Act of 1992. Section 207 of the administrative provisions provides requested language which permits excess revenues 

in three insurance funds to be used for administrative expenses. 

The Department estimates that $36,085,000 will be utilized for 

such purposes in fiscal year 2008. Prior to fiscal year 1996, such 

costs were included in the general operating expenses appropriation. 

The Committee recommends an appropriation of $1,598,500,000 for General Operating Expenses, an increase of $117,027,000 above 

the fiscal year 2007 enacted level and an increase of $126,663,000 

above the budget request. This increase includes $5,000,000 to develop and operate a toll free telephone and web based assistance 

and feedback system. 

The Congress added funding and authority for hiring and training claims processing personnel to the fiscal year 2007 supplemental. While that legislation is not yet enacted, the Committee 

has every confidence that the funding will be available to the Department soon so that hiring and training activities can begin. The 

fiscal year 2008 Committee recommendation includes the full-year 

costs associated with these additional personnel, as well as funding 

to enable the Department to hire at least 457 additional claims 

processing personnel as proposed in the budget submission. 

The Committee is concerned that disabled military retirees, 

whose successful disability claims take more than three years to be 

resolved, are unable to receive the back tax they are owed due to 

Internal Revenue Service (IRS) statute of limitations. The Committee directs the Department to determine within 60 days of enactment of this Act, the number of disabled veterans whose claims 

take more than three years to resolve and are therefore affected by 

the IRS statute of limitations. Furthermore, the Committee directs 

the Department to determine what changes are needed in statutory 

law that would permit the Department to share this information 

with the IRS for the purpose of cross referencing affected veterans. 

INFORMATION TECHNOLOGY SYSTEMS

Fiscal year 2007 enacted level ........................................................... $1,214,000,000 

Fiscal year 2008 budget request ....................................................... 1,859,217,000 

Committee recommendation in the bill ............................................ 1,859,217,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 645,217,000 

Fiscal year 2008 budget request ................................................ –––

The Information Technology Systems account was established in 

P.L. 109–114. The account previously encompassed the entire nonpay information technology portfolio for the Department of Veterans Affairs, including all automation efforts in all administrations. Starting in fiscal year 2007, and reflected for the first time 


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in the budget request for fiscal year 2008, this account also includes pay and associated costs for information technology maintenance and operations staff. The Committee recommends an appropriation of $1,859,217,000 for Information Technology Systems, an increase of $645,217,000 

above the fiscal year 2007 enacted level and the same as the budget request. The total funding provided is comprised of 

$1,303,841,000 for non-pay costs associated with information technology and $555,376,000 for operations and maintenance payroll 

expenses. 

The Committee has included bill language requiring the Department to submit an expenditure plan for the total amount provided, 

not later than 30 days after enactment of this Act. In addition, an 

administrative provision is included in the bill which allows for the 

reprogramming of funds in this account between projects upon 

prior notification to, and approval by, the Committee. 

While the Committee is pleased that the Department’s VistA system is a national model for electronic medical records (EMR), the 

Committee is concerned that VistA still utilizes MUMPS programming language technology and that the Department of Veterans Affairs and Department of Defense still do not have electronic interoperability between their EMRs. The Committee therefore directs 

that, of the funds available within the Information Technology appropriation, no funds be used for the development of an EMR that 

is not interoperable with the Department of Defense. The Committee further urges the Department to involve leading software 

companies in this process to increase the likelihood that the resulting EMR will be interoperable with existing systems used by the 

private sector. The Committee also urges the Department to continue to pursue the development of a portable EMR so that veterans may have a personal electronic record of their care. 

The Committee is very concerned that the Department continues 

to struggle to ensure the security of electronic data. The Committee 

directs the Department to adopt a zero tolerance policy with regard 

to violations in the area of electronic security. The Committee will 

continue to monitor the Department’s performance in this area. 

NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2007 enacted level ........................................................... $160,747,000 

Fiscal year 2008 budget request ....................................................... 166,809,000 

Committee recommendation in the bill ............................................ 170,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 9,253,000 

Fiscal year 2008 budget request ................................................ 3,191,000 

The National Cemetery Administration was established in accordance with Public Law 93–43, the National Cemeteries Act of 

1973. It has a fourfold mission: to provide for the interment, in any 

national cemetery with available grave space, the remains of eligible deceased servicemembers and discharged veterans, together 

with their spouses and certain dependents, and to permanently 

maintain their graves; to provide headstones for, and to mark 

graves of eligible persons in national, State, and private cemeteries; to administer the grant program for aid to States in establishing, expanding, or improving State veterans’ cemeteries; and to 

administer the Presidential Memorial Certificate Program. This appropriation provides for the operation and maintenance of 158 


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cemeterial installations in 39 States, the District of Columbia, and 

Puerto Rico. 

The Committee recommends an appropriation of $170,000,000 for the National Cemetery Administration, an increase of $9,253,000 

above the fiscal year 2007 enacted level and an increase of 

$3,191,000 above the budget request. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2007 enacted level ........................................................... $70,641,000 

Fiscal year 2008 budget request ....................................................... 72,599,000 

Committee recommendation in the bill ............................................ 76,500,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 5,859,000 

Fiscal year 2008 budget request ................................................ 3,901,000 

The Office of Inspector General was established by the Inspector 

General Act of 1978 and is responsible for the audit, investigation, 

and inspection of all Department of Veterans Affairs programs and 

operations. The overall operational objective is to focus available 

resources on areas which would help improve services to veterans 

and their beneficiaries, assist managers of Department programs to 

operate economically in accomplishing program goals, and to prevent and deter recurring and potential fraud, waste, and inefficiencies. 

The Committee recommends an appropriation of $76,500,000 for the Office of Inspector General, an increase of $5,859,000 above the 

fiscal year 2007 enacted level and an increase of $3,901,000 above 

the budget request. 

The Committee notes that funding for the Office of Inspector 

General has remained static for three years and the result has 

been a loss of over 40 personnel. The Committee does not believe 

this situation should continue and therefore recommends funding 

sufficient to allow for 50 additional personnel for the Office of Inspector General in fiscal year 2008. 

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2007 enacted level ........................................................... $399,000,000 

Fiscal year 2008 budget request ....................................................... 727,400,000 

Committee recommendation in the bill ............................................ 1,410,800,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 1,011,800,000 

Fiscal year 2008 budget request ................................................ 683,400,000 

The Construction, Major Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department of Veterans 

Affairs, including planning, architectural and engineering services, 

assessments, and site acquisition where the estimated cost of a 

project is $10,000,000 or more. 

The Committee recommends an appropriation of $1,410,800,000 

for Construction, Major Projects, an increase of $1,011,800,000 

above the fiscal year 2007 enacted level and an increase of 

$683,400,000 above the budget request. The Committee recommendation does not include the proposed reprogramming of 

$45,000,000 appropriated in prior years. 

Projects.—Congress has made significant reforms in the way it 

reviews funding for the Federal government, reforms which the 

Committee takes very seriously as it executes its constitutional auVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00050 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

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thority. Earmarking or directed spending of Federal dollars does 

not begin with Congress. It begins with the Executive Branch. The 

table below is an illustrative list of construction, major projects 

submitted by the Administration. The Administration, in selecting 

these projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter 

or modify this list to reflect additional priorities. 

The Committee provides no recommendation at this time for specific projects contained in either the Administration’s budget or 

proposed by Members of Congress. Individual project allocations 

will be considered comprehensively after the Committee has properly analyzed all relevant information. 

[In thousands of dollars] 

Location FY 2008 Administration Request 

Veterans Health Admin.: 

Pittsburgh, PA ............................................................................................................................................. $40,000 

Denver, CO ................................................................................................................................................... 61,300 

Orlando, FL .................................................................................................................................................. 35,000 

Las Vegas, NV ............................................................................................................................................. 341,400 

Syracuse, NY ................................................................................................................................................ 23,800 

Lee County, FL ............................................................................................................................................. 9,900 

Advance Planning fund ............................................................................................................................... 40,300 

Asbestos Abatement .................................................................................................................................... 3,000 

BRAC Land Acquisition ............................................................................................................................... 5,000 

Claims Analyses .......................................................................................................................................... 2,000 

Facility Security ........................................................................................................................................... 21,300 

Hazardous Waste Abatement ...................................................................................................................... 2,000 

Judgment Fund ............................................................................................................................................ 30,000 

Reprogram prior year funds ........................................................................................................................ ¥45,000 

Sale of VA Assets ........................................................................................................................................ ¥10,000 

Total Veterans Health Admin. ..................................................................................................................... 560,000 

National Cemetery Admin.: 

Columbia/Greenville-area ............................................................................................................................ 19,200 

Sarasota-area .............................................................................................................................................. 27,800 

Jacksonville-area ......................................................................................................................................... 22,400 

Southeastern PA .......................................................................................................................................... 29,600 

Birmingham-area ........................................................................................................................................ 18,500 

Bakersfield-area .......................................................................................................................................... 19,500 

Ft. Sam Houston .......................................................................................................................................... 29,400 

Advance Planning fund ............................................................................................................................... 1,000 

Total NCA ............................................................................................................................................ 167,400 

Total Major Construction ........................................................................................................... 727,400 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2007 enacted level ........................................................... $198,937,000 

Fiscal year 2008 budget request ....................................................... 233,396,000 

Committee recommendation in the bill ............................................ 615,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 416,063,000 

Fiscal year 2008 budget request ................................................ 381,604,000 

The Construction, Minor Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department, including 

planning, assessment of needs, architectural and engineering servVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

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ices, and site acquisition, where the estimated cost of a project is 

less than $10,000,000. 

The Committee recommends an appropriation of $615,000,000 for Construction, Minor Projects, an increase of $416,063,000 above 

the fiscal year 2007 enacted level and an increase of $381,604,000 

above the budget request. 

The Committee has included bill language requiring the Department to submit an expenditure plan for the total amount provided, 

not later than 30 days after enactment of this Act. In addition, an 

administrative provision is included in the bill which allows for the 

reprogramming of funds in this account between projects upon 

prior notification to, and approval by, the Committee. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2007 enacted level ........................................................... $85,000,000 

Fiscal year 2008 budget request ....................................................... 85,000,000 

Committee recommendation in the bill ............................................ 165,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 80,000,000 

Fiscal year 2008 budget request ................................................ 80,000,000 

This program provides grants to assist States to construct State 

home facilities, for furnishing domiciliary or nursing home care to 

veterans, and to expand, remodel or alter existing buildings for furnishing domiciliary, nursing home or hospital care to veterans in 

State homes. A grant may not exceed 65 percent of the total cost 

of the project. The Committee recommends an appropriation of $165,000,000 for 

Grants for Construction of State Extended Care Facilities, an increase of $80,000,000 above the fiscal year 2007 enacted level and 

an increase of $80,000,000 above the budget request. The amount 

recommended will provide sufficient funding to address all current 

high priority life/safety requirements as well as provide for new 

construction. The Department is directed to submit an updated priority list for all pending grant applications within 30 days of enactment of this Act. 

GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES

Fiscal year 2007 enacted level ........................................................... $32,000,000 

Fiscal year 2008 budget request ....................................................... 32,000,000 

Committee recommendation in the bill ............................................ 37,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 5,000,000 

Fiscal year 2008 budget request ................................................ 5,000,000 

This program provides grants to assist States with the establishment, expansion, and improvement of State veterans’ cemeteries 

which are operated and permanently maintained by the States. 

Grants under this program fund up to 100 percent of construction 

costs and the initial equipment expenses when the cemetery is established. The States remain responsible for providing the land and 

for paying all costs related to the operation and maintenance of the 

State cemeteries, including the costs for subsequent equipment 

purchases. The Committee recommends an appropriation of $37,000,000 for 

Grants for Construction of State Veterans Cemeteries, an increase 

of $5,000,000 above the fiscal year 2007 enacted level and an increase of $5,000,000 above the budget request. 


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The Committee notes the success of the military housing Residential Communities Initiative (RCI) as a public-private partnership. The Committee continues to encourage the Department to 

work with the Fort Ord Reuse Authority in Monterey County, California to develop a pilot program to demonstrate the cost effectiveness of using public-private partnerships in establishing a State 

veteran’s cemetery. 

The Committee encourages the Department to work with States 

for maximum usage of this grant program. Given that almost ten 

percent of the nation’s veterans reside in California, the Committee 

encourages the Department to work with the State of California as 

it applies for grant funding. 

The Committee notes that tribes are now eligible for the State 

Veterans Cemetery Grant program and encourages the VA to update relevant information and, whenever possible, alert tribes of 

their eligibility. 

ADMINISTRATIVE PROVISIONS

The Committee recommends twenty-two administrative provisions for fiscal year 2008, including fifteen which were proposed by 

the Administration, five which were included in prior appropriations Acts, and two new provisions. 

Section 201 allows for the transfer of funds among three mandatory appropriations. 

Section 202 allows for salaries and expenses funds to be used for 

hire of passenger vehicles, lease of facilities or land, and purchase 

of uniforms. 

Section 203 provides that only funding in the ‘‘Construction, 

major projects’’ and ‘‘Construction, minor projects’’ accounts can be 

used for the purchase of any site for any new hospital or home or 

to construct any new hospital or home. The Administration proposed to delete this provision. 

Section 204 requires the Department to be reimbursed for medical services it provides to any person not defined as a beneficiary 

to ensure the Department is receiving payment for all medical 

services provided. 

Section 205 allows for the use of funds appropriated in fiscal year 

2008 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’ for payment of accrued 

obligations recorded in the last quarter of fiscal year 2007. 

Section 206 allows for the use of fiscal year 2008 funds to pay 

prior year obligations resulting from implementation of sections 

3328(a), 3334, and 3712(a) of title 31, United States Code. 

Section 207 allows the Department to use surplus earnings from 

the National service life insurance, U.S. Government life insurance, 

and veterans special life insurance program to administer these 

programs. 

Section 208 allows the Department to cover the administrative 

expenses of structuring enhanced-use leasing proposals and provides authority to obligate these reimbursements in the year funds 

are received. 

Section 209 limits the amount of reimbursement the Office of 

Resolution Management and the Office of Employment Discrimination Complaint Adjudication can charge other offices and accounts 

of the Department for services provided. 


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Section 210 requires the Secretary to submit a report to the 

Committees on Appropriations to approve new leases of real property more than $300,000. The Administration proposed to delete 

this provision. 

Section 211 requires the Department to collect current, accurate 

third-party reimbursement information for the purposes of thirdparty insurance collections. If persons receiving care or medical 

services do not disclose this information, the Department is allowed 

to bill them reasonable charges for services provided. 

Section 212 allows the Department to use enhanced-use leasing 

funds for construction and alterations for medical facilities to facilitate the CARES efforts as the Department restructures the delivery of healthcare to veterans. 

Section 213 allows the Department to use the ‘‘Medical services’’ appropriation for expenses related to the broader mission of medical care to veterans. 

Section 214 allows the Department to transfer Medical Care Collections to the ‘‘Medical services’’ appropriation to be used for veterans medical care. 

Section 215 allows veterans who reside in Alaska to obtain medical services from medical facilities supported by the Indian Health 

Services or tribal organizations, and provides for reimbursement 

for those services from the Department of Veterans Affairs. 

Section 216 allows the Department to transfer the proceeds received from the transfer of real property deposited into the Department of Veterans Affairs Capital Asset Fund (CAF) to the major 

and minor construction appropriations. 

Section 217 prohibits the expenditure of any funds available to 

the Department for implementation of a national standardized contract for diabetes monitoring systems. The Administration proposed 

to delete this provision. 

Section 218 provides that no funds may be used to prohibit Directors of Veterans Integrated Service Networks (VISN) from conducting outreach or marketing programs. The Administration proposed to delete this provision. 

Section 219 requires the Secretary to submit quarterly reports on 

the financial status and service level status of the Veterans Health 

Administration. The report shall contain, at a minimum and by account, both planned and actual expenditure rates, unobligated balances, potential financial shortfalls, and the status of any equipment or non-recurring maintenance funds—including whether they 

have been used to pay for operating expenses. In addition, the service portion of the report will contain, at a minimum, the time required for new patients to get their first appointment, the time required for established patients to get their next appointment, the 

number of patients on a wait list for inpatient services or any mental health or substance abuse program, the number of staff shortages for mental health services, the planned and actual expenditure rates for contracted mental health care, and the number of 

unique veterans and patients being served. Each report should address data for the system total and for each VISN, and for comparison purposes should provide data for the preceding eight quarters. 

In addition the report shall also contain the planned and actual expenditure rates for the blind rehabilitation service, VA/DoD sharing, homeless veterans, mental health, OIF/OEF veterans, prosVerDate Aug 31 2005 04:32 Jun 12, 2007 Jkt 035895 PO 00000 Frm 00054 Fmt 6659 Sfmt 6602 E:\HR\OC\HR186.XXX HR186

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thetics, and substance abuse programs. The Administration proposed to delete this provision. 

Section 220 requires the Department to notify and receive approval from the Committee of any proposed transfer of funding in 

excess of $1,000,000 between information technology system 

projects. The Administration had proposed a threshold of 

$5,000,000 for such transfers. 

Section 221 provides for the transfer of prior year account balances established for the payment of benefits under the Reinstated 

Entitlement Program for Survivors to the ‘‘Compensation and pensions’’ account. 

Section 222 requires the Department to notify and receive approval from the Committee of any proposed transfer of funding in 

excess of $1,000,000 between minor construction projects. 

TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2007 enacted level ........................................................... $37,000,000 

Fiscal year 2008 budget request ....................................................... 42,100,000 

Committee recommendation in the bill ............................................ 43,470,000 

Comparsion with: 

Fiscal year 2007 enacted level ................................................... 6,470,000 

Fiscal year 2008 budget request ................................................ 1,370,000 

The American Battle Monuments Commission is responsible for 

the administration, operation and maintenance of cemetery and 

war memorials to commemorate the achievements and sacrifices of 

the American Armed Forces where they have served since April 6, 

1917. In performing these functions, the Commission maintains 24 

permanent American military cemetery memorials and 31 monuments, memorials, markers, and offices in 15 foreign countries, the 

Commonwealth of the Northern Mariana Islands, and the British 

dependency of Gibraltar. In addition, six memorials are located in 

the United States: the East Coast Memorial in New York; the West 

Coast Memorial, The Presidio in San Francisco; the Honolulu Memorial in the National Memorial Cemetery of the Pacific in Honolulu, Hawaii; and the American Expeditionary Forces Memorial, 

and the World War II and Korean War Veterans Memorials in 

Washington, D.C. 

The Committee recommends an appropriation of $43,470,000 for 

the American Battle Monuments Commission’s salaries and expenses account. This is an increase of $6,470,000 above the fiscal 

year 2007 enacted level and an increase of $1,370,000 above the 

budget request. The Committee recommendation includes a reduction of $200,000 to the budget request for travel, an increase of 

$570,000 for capital improvements, and an increase of $1,000,000 

for infrastructure modernization. 

Language is included allowing up to $7,500 to be used for official 

reception and representation expenses. 

Normandy Visitor Center.—The recommendation includes full 

operational funding for the Normandy Visitor Center at the Normandy American Cemetery in France. The new center will provide 


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a full array of interactive services to put the D-Day landings and 

the following battles in Europe in perspective as one of the greatest 

military achievements of all time. With the opening of the Center 

scheduled for June 6, 2007, the anniversary of D-Day, the Committee is pleased to note that this project has been completed on 

time and within original budget estimates. The Committee commends the Commission for this noteworthy accomplishment. 

Pointe du Hoc Study.—The fiscal year 2006 appropriations Act 

included funding for the Commission to have a study conducted to 

determine what action is warranted to preserve the stability of the 

World War II Pointe du Hoc Ranger Monument in France. The 

Committee understands that this study has been completed and directs the Commission to provide the Committee with a copy of the 

completed study and recommendations for any additional work regarding preservation of the Pointe du Hoc site. The Commission is 

to provide the report to the Committee no later than July 2, 2007. 

FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

Fiscal year 2007 enacted level ........................................................... $5,000,000 

Fiscal year 2008 budget request ....................................................... 11,000,000 

Committee recommendation in the bill ............................................ 11,000,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 6,000,000 

Fiscal year 2008 budget request ................................................ – – –

The Commission’s foreign currency fluctuations account is authorized pursuant to 36 U.S.C. 2109 to pay the costs of salaries and 

expenses that exceed the amount appropriated for salaries and expenses because of fluctuations in currency exchange rates of foreign 

countries occurring after a budget request for the Commission is 

submitted to the Congress. The account may not be used for any 

other purpose. The Committee recommends an appropriation of $11,000,000 to 

re-capitalize the Commission’s Foreign Currency Fluctuations ac- count. This is an increase of $6,000,000 above the fiscal year 2007 

enacted level and the same as the budget request. Re-capitalization 

of the account ensures that funds are available to offset dollar 

losses during fiscal year 2008. 

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2007 enacted level ........................................................... $20,189,000 

Fiscal year 2008 budget request ....................................................... 21,217,000 

Committee recommendation in the bill ............................................ 21,397,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 1,208,000 

Fiscal year 2008 budget request ................................................ 180,000 

The Veterans’ Judicial Review Act established the U.S. Court of 

Appeals for Veterans Claims. The Court reviews appeals from Department of Veterans Affairs claimants seeking review of a benefit 

denial. The Court has the authority to overturn findings of fact, 

regulations, and interpretations of law. The Committee recommends an appropriation of $21,397,000 for 

the U.S. Court of Appeals for Veterans Claims, an increase of 

$1,208,000 above the fiscal year 2007 enacted level and an increase 

of $180,000 above the budget request. Of the amount provided, 


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$1,300,000 is to be used for the pro bono representation program, 

an increase of $180,000 above the budget request. 

DEPARTMENT OF DEFENSE—CIVIL

CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2007 enacted level ........................................................... $30,000,000 

Fiscal year 2008 budget request ....................................................... 26,892,000 

Committee recommendation in the bill ............................................ 30,592,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 592,000 

Fiscal year 2008 budget request ................................................ 3,700,000 

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. 

The Committee recommends an appropriation of $30,592,000 for 

Cemeterial Expenses, Army, salaries and expenses, an increase of 

$592,000 above the fiscal year 2007 enacted level and an increase 

of $3,700,000 above the budget request. 

The Committee recommendation includes an increase of 

$1,800,000 for realignment of government-issued headstones and 

$1,900,000 for construction of a heavy equipment storage facility. 

ARMED FORCES RETIREMENT HOME

TRUST FUNDS

Fiscal year 2007 enacted level ........................................................... $57,227,000 

Fiscal year 2008 budget request ....................................................... 55,724,000 

Committee recommendation in the bill ............................................ 55,724,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... (1,503,000) 

Fiscal year 2008 budget request ................................................ – – –

The Armed Forces Retirement Home (AFRH) consists of two retirement communities, one in Washington, D.C. and the other in 

Gulfport, Mississippi. The Washington, D.C. facility was established in 1851 as a soldiers’ home for elderly and disabled veterans. 

The original home for Navy officers, sailors, and Marines was established in Philadelphia, Pennsylvania in 1811, and was relocated 

to Gulfport, Mississippi almost a century and a half later. 

The Committee recommendation provides authority to expend 

$55,724,000 from the Armed Forces Retirement Home Trust Fund 

for operations of the United States Soldiers’ and Airmen’s Home 

and the United States Naval Home. This is a decrease of 

$1,503,000 below the fiscal year 2007 enacted level and the same 

as the budget request. 

The Committee is aware that a Memorandum of Agreement has 

been signed with the General Services Administration (GSA) related to the rebuilding of the Armed Forces Retirement Home’s 

Gulfport campus. The Committee urges GSA to work with the 

AFRH to ensure that the rebuilt Gulfport campus reflects the latest best-practices in independent living, assisted living, and long 

term care through implementation of the Green House approach to 


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the maximum extent feasible. The Committee hopes that the Gulfport campus can become a national model for deinstitutionalized 

care and serve veterans with an industry standard-setting approach in a manner worthy of their service to our nation. To that 

end, the Committee expects that the final design will accommodate 

on-site pre-Katrina scope and availability of medical, dental, and 

pharmaceutical care and services within the current project. 

ARMED FORCES RETIREMENT HOME

FEDERAL FUNDS

Fiscal year 2007 enacted level ........................................................... – – –

Fiscal year 2008 budget request ....................................................... $5,900,000 

Committee recommendation in the bill ............................................ 800,000 

Comparison with: 

Fiscal year 2007 enacted level ................................................... 800,000 

Fiscal year 2008 budget request ................................................ (5,100,000) 

The budget request included provisions which would provide for 

a Federal fund contribution to the Trust in fiscal year 2008 and 

thereafter. In addition, the budget request proposed that $800,000 

be used for a study of the long-term viability of the Trust. The 

Committee does not recommend a Federal fund payment to the 

Trust at this time, but has included in its recommendation funding 

for a study of the Trust to ensure its long-term viability. 

TITLE IV 

GENERAL PROVISIONS 

The bill includes seven provisions that were included in the fiscal 

year 2006 enacted appropriations bill and the fiscal year 2007 

House passed appropriations bill and one new provision as follows: 

Section 401 prohibits the obligation of funds beyond the current 

fiscal year unless expressly so provided. 

Section 402 requires pay raises to be absorbed within the levels 

appropriated in the bill. 

Section 403 prohibits the use of funds for programs, projects or 

activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, or unfunded 

mandates. The Administration proposed to delete this provision. 

Section 404 prohibits the use of funds to support or defeat legislation pending before Congress. 

Section 405 encourages all departments and agencies funded in 

this Act to expand the use of E-Commerce technologies and procedures. 

Section 406 limits funds from being transferred from this appropriations measure to any instrumentality of the United States Government without authority from an appropriation Act. The Administration proposed to delete this provision. 

Section 407 specifies the congressional committees that are to receive all reports and notifications. 

Section 408 directs the Congressional Budget Office to submit a 

report projecting annual appropriations necessary for the Department of Veterans Affairs to continue providing health care to veterans. 


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HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

The following items are included in accordance with various requirements of the rules of the House of Representatives. 

CHANGES IN APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of the 

House of Representatives, the following statements are submitted 

describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law. 

Language is included in various parts of the bill to continue ongoing activities that require annual authorization or additional legislation, which to date have not been enacted. 

The bill includes a number of provisions which place limitations 

on the use of funds in the bill or change existing limitations and 

which might, under some circumstances, be construed as changing 

the application of existing law. 

Language is included in various parts of the bill to allow the Secretary of Defense to exceed certain limitations upon notification to 

the Committee. 

Language is included in various parts of the bill to allow funding 

to be used for official reception and representation expenses. 

Language is included that enables various appropriations to remain available for more than one year for some programs for which 

the basic authority legislation does not presently authorize such extended availability. 

Language is included in various parts of the bill which permits 

the transfer of funds to other accounts in the bill. 

Language is included under Title I limiting payments for costplus-a-fixed-fee contract under certain circumstances. 

Language is included in various parts of the bill to allow funds 

to be used for the hire of passenger motor vehicles. 

Language is included under Title I allowing advances to the Federal Highway Administration, Department of Transportation under 

certain circumstances. 

Language is included under Title I limiting funds for implementing construction of new bases in the United States without 

specific appropriations. 

Language is included under Title I limiting funds for purchase 

of land or land easements under certain circumstances. 

Language is included under Title I limiting funds for land acquisition, site preparation, and utility installation unless funds have 

been made available in annual appropriations Acts. 

Language is included under Title I to prohibit the use of minor 

construction funds to transfer an activity between installations 

without prior notification. 

Language is included under Title I limiting funds for the procurement of steel for any activity if American steel producers have 

been denied the opportunity to compete for such steel procurements. 

Language is included under Title I limiting funds for initiating 

new installations overseas without notifying the Committees on appropriations. 

Language is included under Title I limiting the use of funds for 

architect and engineer contracts under certain circumstances. 


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Language is included under Title I limiting funds for awarding 

contracts to foreign contractors under certain circumstances. 

Language is included under Title I requiring the Department of 

Defense to notify the appropriate committees of Congress of any 

proposed military exercises under certain circumstances. 

Language is included under Title I limiting funding obligations 

in the last two months of the fiscal year to 20 percent. 

Language is included under Title I allowing prior year construction funding to be available for current year projects. 

Language is included under Title I allowing payment for the cost 

associated with supervision, inspection, overhead, engineering and 

design on family housing or military construction projects that are 

being completed with expired or lapsed funds. 

Language is included under Title I allowing funds to be expended 

on military construction projects for four fiscal years after enactment under certain circumstances. 

Language is included under Title I to allow for the transfer of 

BRAC proceeds to the BRAC account. 

Language is included under Title I to allow construction funds to 

be transferred to Housing Improvement Funds. 

Language is included under Title I limiting funds for the Partnership for Peace Programs in the New Independent States of the 

former Soviet Union. 

Language is included under Title I requiring the various military 

departments to submit prior notice to the Committee of solicitation 

for contracts with the private sector for military family housing 

under certain circumstances. 

Language is included under Title I to allow for the transfer of 

BRAC funds to the Homeowners Assistance Program. 

Language is included under Title I limiting funds for the operation and maintenance of family housing to those provided in this 

appropriation with exceptions under certain circumstances. 

Language is included under Title I limiting funds for the North 

Atlantic Treaty Organization Security Investment Program for the 

conduct of missile defense studies. 

Language is included under Title I requiring officials from the 

agencies covered in this appropriation to respond to requests within 21 days. 

Language is included under Title I allowing funds for the Ford 

Island Improvement Account to be available until expended for certain purposes. 

Language is included under Title I limiting funds for realignment of installations under certain circumstances. 

Language is included under Title I to allow for the transfer of expired funding to the Foreign Currency Fluctuation Account under 

certain circumstances. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs establish a priority for treatment of veterans 

who are service-connected disabled, lower income, or have special 

needs. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs give priority funding of basic medical benefits 

to priority groups 1 through 6. 


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Language is included under Title II to allow the Secretary of Veterans Affairs to dispense prescription drugs from VHA facilities to 

enrolled veterans with privately written prescriptions. 

Language is included under Title II to allocate a portion of nonrecurring maintenance funds outside the Veterans Equitable Resource Allocation. 

Language is included under Title II providing for the reimbursement to the Department of Defense for the costs of overseas employee mail. 

Language is included under Title II to require approval of a plan 

for the expenditure of information technology funds. 

Language is included under Title II establishing time limitations 

and reporting requirements concerning the obligation of major construction funds, limiting the use of funds, and allowing the use of 

funds for program costs. 

Language is included under Title II to prohibit the use of funds 

to reduce the mission, services or infrastructure of 18 facilities on 

the CARES list without prior approval of the Committee. 

Language is included under Title II to allow minor construction 

funds to be used to repair non-medical facilities damaged by natural disaster or catastrophe. 

Language is included under Title II permitting transfers between 

mandatory and discretionary accounts, limiting and providing for 

the use of certain funds, funding administrative expenses associated with life insurance programs from excess program revenues, 

allowing reimbursement from enhanced-use leases and for certain 

services, requiring notification of new lease agreements, requiring 

disclosure of insurance and income information, allowing a recovery 

audit collection program, prohibiting the use of funds for instituting a new standard for glucose monitoring systems, extending 

the authority to operate the homeless program, allowing veterans 

in the state of Alaska to use Indian Health Service facilities under 

certain conditions, and allowing medical services funds for recreational and funeral expenses. 

Language is included under the Court of Appeals for Veterans 

Claims, Salaries and Expenses, permitting the use of funds for a 

pro bono program. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, permitting the use of funds for parking maintenance 

and repairs. 

Language is included under Title IV requiring sums necessary 

for pay raises to be absorbed within levels appropriated. 

Language is included under Title IV limiting the use of funds for 

federal entities when they are not in compliance with federal law 

relating to risk assessment, the protection of private property 

rights, or unfunded mandates. 

Language is included under Title IV limiting funding for publicity or propaganda designed to support or defeat legislation pending before Congress. 

Language is included under Title IV prohibiting the transfer of 

any funds except pursuant to authority provided in appropriations 

Acts. 

Language is included under the Department of Veterans Affairs, 

Information Technology Systems, limiting the obligation of funds 

until certain reporting requirements are met. 


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Language is included under the Department of Veterans Affairs, Medical Services, designating $2,900,000,000 for specialty mental 

health care. 

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of the 

House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law for 

the period concerned: 

[Dollars in thousands] 

Agency/program Last year of authorization Authorization level Appropriations in last 

year of authorization 

Appropriations in this 

bill 

Military Construction, Army ................... 2007 2,264,042 2,017,321 4,070,959 

Military Construction, Navy .................... 2007 1,291,285 1,130,821 2,125,138 

Military Construction, Air Force ............. 2007 1,308,233 1,083,000 927,428 

Military Construction, Defense-Wide ...... 2007 1,145,181 1,127,000 1,806,928 

Military Construction, Army National 

Guard ................................................. 2007 561,375 473,000 439,291 

Military Construction, Air National 

Guard ................................................. 2007 294,283 126,000 95,517 

Military Construction, Army Reserve ...... 2007 190,617 166,000 154,684 

Military Construction, Navy Reserve ...... 2007 49,998 43,000 69,150 

Military Construction, Air Force Reserve 2007 56,836 45,000 39,628 

North Atlantic Treaty Organization Security Investment Program ................ 2007 200,985 204,789 201,400 

Family Housing Construction, Army ....... 2007 578,791 579,000 419,400 

Family Housing Operation and Maintenance, Army ....................................... 2007 675,617 671,311 742,920 

Family Housing Construction, Navy and 

Marine Corps ..................................... 2007 308,956 305,000 298,329 

Family Housing Operation and Maintenance, Navy and Marine Corps ......... 2007 509,126 505,472 371,404 

Family Housing Construction, Air Force 2007 1,168,138 1,168,000 362,747 

Family Housing Operation and Maintenance, Air Force ................................ 2007 755,071 750,000 688,335 

Family Housing Operation and Maintenance, Defense-Wide ......................... 2007 48,506 49,000 48,848 

Department of Defense Family Housing 

Improvement Fund ............................. 2007 2,500 2,475 500 

Chemical Demilitarization Construction, 

Defense-Wide ..................................... 2007 140,993 131,000 86,176 

Base Realignment and Closure, 1990 .. 2007 191,220 252,279 270,689 

Base Realignment and Closure, 2005 .. 2007 5,626,223 2,489,421 8,174,315 

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following statements are submitted describing the transfer of funds provided in the accompanying bill. 

Language is included to allow Military Construction, DefenseWide funds to be transferred to other military construction and 

family housing appropriations to be merged with and available for 

the same purpose and same time period. 

Language is included to allow Chemical Demilitarization Construction funds to be transferred to other military construction appropriations to be merged with and available for the same purpose 

and same time period. 

Language is included to allow Department of Defense prior year 

construction funds to be available for current year authorizations. 


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Language is included to allow BRAC proceeds to be transferred 

to the BRAC account to be merged with and available for the same 

purpose and same time period. 

Language is included to allow for the transfer of funds from 

Family Housing, Construction accounts to the Department of Defense Family Housing Improvement Fund and funds from Military 

Construction accounts to the Department of Defense Military Unaccompanied Housing Improvement Fund. 

Language is included to provide transfer authority to the Homeowners Assistance Program. 

Language is included to allow the transfer of expired funds to the 

‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

Language is included to transfer not to exceed $25,033,000 from 

Compensation and Pensions to General Operating Expenses and 

Medical Services. These funds are for the administrative costs of 

implementing cost-savings proposals required by the Omnibus 

Budget Reconciliation Act of 1990 and the Veterans’ Benefits Act 

of 1992. Language is also included permitting necessary sums to be 

transferred to the medical facilities revolving fund to augment 

funding of medical centers for nursing home care provided to pensioners as authorized by the Veterans’ Benefits Act of 1992. 

Language is included to transfer the following amounts to the 

Department of Veterans Affairs General Operating Expenses appropriation pursuant to the Federal Credit Reform Act of 1990: the 

Veterans Housing Benefit Program Fund Program Account 

($154,562,000), the Vocational Rehabilitation Loans Program Account ($311,000) and the Native American Veteran Housing Loan 

Program Account ($628,000). In addition, the bill provides up to 

$750,000 in General Operating Expenses and Medical Services for 

administration of the Guaranteed Transitional Housing Loans for 

the Homeless Veterans Program Account. 

Language is included under the Department of Veterans affairs 

that would transfer no less than $15,000,000 for the DoD/VA 

Health Care Sharing Incentive Fund as authorized by section 

8111(d) of title 38, United States Code. 

Language is included to provide authority for the Department of 

Veterans Affairs for any funds appropriated in 2008 for Compensation and Pensions, Readjustment Benefits, and Veterans Insurance 

and Indemnities to be transferred among those three accounts. 

This will provide the Department of Veterans Affairs flexibility in 

administering its entitlement programs. 

Language is included to permit the funds from three life insurance funds to be transferred to General Operating Expenses for the 

costs of administering such programs. 

Language is included to permit up to $35,215,000 to be transferred to General Operating Expenses from any funds appropriated 

in fiscal year 2008 to reimburse the Office of Resolution Management and the Office of Employment Discrimination Complaint Adjudication for services provided. 

Language is included to transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects 

and Construction, Minor Projects accounts. 

Language is included to transfer funds from the Medical Care 

Collections Fund to Medical Services. 


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Language is included to allow the transfer of funds from the Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts. 

Language is included under the Department of Veterans Affairs 

that would transfer balances in prior year accounts established for 

payment of benefits under the Reinstated Entitlement Program for 

Survivors to the Compensation and Pensions account. 

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following table lists the rescissions in the 

accompanying bill: 

Department/activity 

Amounts recommended for 

rescission 

Department of Defense, Military Construction, Navy and Marine Corps ............................................................ $5,862,000 

Department of Defense, Military Construction, Air Force .................................................................................... 5,319,000 

Department of Defense, Military Construction, Defense-Wide ............................................................................. 7,592,000 

Department of Defense, Military Construction, Air Force Reserve ...................................................................... 3,069,000 

CONSTITUTIONAL AUTHORITY

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee on Appropriations bases its authority to report this legislation from clause 7 of section 9 of article 

I of the U.S. Constitution which states: 

‘‘No money shall be drawn from the Treasury 

but in consequence of Appropriations made by law 

***’’

COMPARISON WITH THE BUDGET RESOLUTION

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House 

of Representatives and section 308(a)(1)(A) of the Congressional 

Budget Act of 1974, the following table compares the levels of new 

budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act. 

[In millions of dollars] 

302(b) allocation This bill 

Budget authority Outlays Budget authority Outlays 

Discretionary .......................................... 64,745 54,831 64,745 54,831 

Mandatory .............................................. 40,978 40,856 40,978 40,856 

FIVE-YEAR PROJECTION OF OUTLAYS

Pursuant to section 308(a)(1)(B) of the Congressional Budget Act 

of 1974, the following table contains five-year projections prepared 

by the Congressional Budget Office of outlays associated with the 

budget authority provided in the accompanying bill: 

[In millions of dollars] 

Budget Authority ................................................................................... 105,723 

Outlays: 

2008 ................................................................................................. 81,446 

2009 ................................................................................................. 12,762 

2010 ................................................................................................. 8,166 


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2011 ................................................................................................. 3,108 

2012 ................................................................................................. 1,993 

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

Pursuant to section 308(a)(1)(C) of the Congressional Budget Act 

of 1974, the amount of financial assistance to State and local governments is as follows: 

[In millions of dollars] 

Budget Authority ................................................................................... 828 

Fiscal Year 2008 outlays resulting therefrom ..................................... 552 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding: 

The Committee on Appropriations considers program performance, including a program’s success in developing and attaining 

outcome-related goals and objectives, in developing funding recommendations. 

COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE) 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, the Committee notes that the accompanying bill does not propose to repeal or amend a statute or part 

thereof. 

EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives, this bill, as reported, contains no congressional 

earmarks, limited tax benefits, or limited tariff benefits as defined 

in clause 9(d), 9(e), or 9(f) of rule XXI. 


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ADDITIONAL VIEWS OF REPRESENTATIVES JERRY LEWIS 

AND REPRESENTATIVE ROGER WICKER 

302(B) ALLOCATION

The 302(b) discretionary allocation for the fiscal year 2008 Military Construction, Veterans Affairs, and Related Agencies bill is 

$64.4 billion, an increase of$4 billion (6.6 percent) above the President’s request and almost $15 billion (32 percent) above the 

amount provided in fiscal year 2007, with the bulk of the increased 

discretionary spending directed for the programs and services provided by the Department of Veterans Affairs. Much has been said 

by the majority in creating the fiscal year 2008 302(b) allocations 

that $3.5 billion had to be cut from the President’s Defense budget 

request in order to plus up the funds available for veterans programs. However, that math just does not add up. A read of the Fiscal Year 2008 Budget Resolution shows, in clear, concise language 

and tables, that the Budget Committee fully funded the Administration’s Defense request and provided for the Committee’s proposed plus-up of veterans programs. No cut in Defense funding is 

needed to care for our Nation’s veterans under the adopted Fiscal 

Year 2008 Budget Resolution. Weare supportive of this bill, but as 

this process moves forward and the remaining bills are considered 

by the Committee, we have to question where the defense money 

went. 

VETERANS PROGRAMS

This bill continues the tradition started in the 104th Congress of 

trying to make the Veterans Health Administration a modem, effective, and efficient medical system providing care to our Nation’s 

heroes. The system needed change—change from the antiquated 

war-wounded only enrollment, to the eligibility reform of 1996 that 

opened the system to veterans regardless of service connection; 

change from the in-patient bed towers to the more than 900 community-based outpatient clinics; change from an aging population 

to the challenges and opportunities to care for a broad spectrum of 

patients as our young men and women return from the Middle 

East. These changes are being ushered in successfully not simply 

by throwing massive amounts of money at the VA. Rather, they are 

achieved by oversight and direction provided by the Congress, program implementation and performance evaluation by the Department and GAO, and working with the veterans community, keeping the mission focused on the top priorities and authorizations of 

the Department. 

Considering the funds in this bill, plus the funds provided in the 

Fiscal Year 2007 Supplemental bill, the VA will see an astounding 

23 percent increase from the level provided for fiscal year 2007. 

Weare greatly concerned that we are setting up the VA for failure 

in terms of what they can implement and account for in one fiscal 

year. We will partner with and support the Committee in efforts 

to ensure that this investment is wisely spent. 

As we look to future years, we need to come together, rising 

above partisan pettiness, and provide funding to the VA based on 

a sound methodology and policy, rather than a ‘‘who can spend 

more’’ mantra. We support Chairman Edwards’s method of looking 


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at the rate of inflation and the number of veterans estimated to receive care from the VA medical administration to create a reasonable and balanced expectation for how the system should be funded. We also endorse the decision to add funds to address facilities 

repair and maintenance, investing in the capital infrastructure necessary to deliver the quality care VA is capable of providing. Weare 

very supportive of the increased funds to address the backlog in 

claims processing, and we strongly urge the authorizing committees to give a long, hard look at the entire VA benefits rubric and 

propose a system that is fair, understandable, significantly less 

complicated, and addresses the realities of a modern war and a 

modern workplace. 

MILITARY CONSTRUCTION PROJECTS

The absence of identified funds for specific construction projects 

breaks with a tradition that began with the very first Military Construction bill in 1958. This Committee has a strong relationship 

with the authorizers and the Pentagon, and we trust that each 

Member knows full well the needs of his or her district. Since the 

first Military Construction bill, the Committee has worked with its 

partners to identify and fund capital infrastructure projects necessary to meet the needs of a well-prepared military force and their 

families. This bill walks away from that tradition. 

To ignore the very essence of the military funding in this bill 

demonstrates the sheer absurdity of the mandate that every bill be 

without earmarks—this edict is ill-conceived and has little regard 

for the true reform that needs to take place as the broad brush of 

self-righteousness takes the place of well thought out ideas and policy. It is not the Congress that will suffer, but rather the men and 

women of the military and their families when base improvements 

for their security, training, and their quality of life are left to the 

whim of bureaucrats. We are not supportive of the Committee’s decision to retreat from this basic task at this point in the process. 


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