21–327

109TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 1st Session 109–95

MILITARY QUALITY OF LIFE AND VETERANS AFFAIRS, 

AND RELATED AGENCIES APPROPRIATIONS BILL, 2006

MAY 23, 2005.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. WALSH, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 2528] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military quality of life functions of the Department of Defense, 

military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2006.

CONTENTS 

Page 

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

Conformance With Authorization Bill .................................................................... 3

Summary of Committee Recommendation ............................................................ 4

Items of Interest ...................................................................................................... 15

Military Construction: 

Army .................................................................................................................. 19

Navy and Marine Corps ................................................................................... 20

Air Force ............................................................................................................ 21

Defense-wide ..................................................................................................... 22

Army National Guard ...................................................................................... 22

Air National Guard .......................................................................................... 23

Army Reserve .................................................................................................... 24

Naval Reserve ................................................................................................... 24

Air Force Reserve ............................................................................................. 24

NATO Security Investment Program ..................................................................... 24

Family Housing Overview ....................................................................................... 25

Family Housing: 

Army .................................................................................................................. 26

Navy and Marine Corps ................................................................................... 27

2

Air Force ............................................................................................................ 28

Defense-wide ..................................................................................................... 28

Department of Defense Family Housing Improvement Fund .............................. 29

Chemical Demilitarization Construction, Defense-wide ....................................... 29

Base Realignment and Closure Account 1990 ....................................................... 30

Base Realignment and Closure Account 2005 ....................................................... 30

Basic Allowance for Housing: 

Army .................................................................................................................. 30

Navy ................................................................................................................... 30

Marine Corps .................................................................................................... 31

Air Force ............................................................................................................ 31

Army National Guard ...................................................................................... 31

Air National Guard .......................................................................................... 31

Army Reserve .................................................................................................... 31

Naval Reserve ................................................................................................... 32

Marine Corps Reserve ...................................................................................... 32

Air Force Reserve ............................................................................................. 32

Facilities Sustainment, Restoration and Modernization: 

Army .................................................................................................................. 32

Navy ................................................................................................................... 33

Marine Corps .................................................................................................... 33

Air Force ............................................................................................................ 34

Defense-wide ..................................................................................................... 34

Army National Guard ...................................................................................... 34

Air National Guard .......................................................................................... 34

Army Reserve .................................................................................................... 35

Naval Reserve ................................................................................................... 35

Marine Corps Reserve ...................................................................................... 35

Air Force Reserve ............................................................................................. 35

Environmental Restoration: 

Army .................................................................................................................. 36

Navy ................................................................................................................... 36

Air Force ............................................................................................................ 36

Defense-wide ..................................................................................................... 36

Formerly Used Defense Sites .......................................................................... 36

Defense Health Program: 

Operation and Maintenance ............................................................................ 39

Procurement ...................................................................................................... 42

Research and Development .............................................................................. 43

Administrative Provisions ....................................................................................... 45

Department of Veterans Affairs: 

Veterans Benefits Administration ................................................................... 48

Veterans Health Administration ..................................................................... 52

Departmental Administration ......................................................................... 59

Administrative Provisions ................................................................................ 63

American Battle Monuments Commission ............................................................ 65

U.S. Court of Appeals for Veterans Claims ........................................................... 66

Cemeterial Expenses, Army .................................................................................... 67

Armed Forces Retirement Home ............................................................................ 67

General Provisions ................................................................................................... 68

Changes in Application of Existing Law ................................................................ 68

Appropriations Not Authorized by Law ................................................................. 69

Transfer of Funds .................................................................................................... 71

Constitutional Authority ......................................................................................... 72

Comparisons With Budget Resolution ................................................................... 72

Five-Year Projection of Outlays .............................................................................. 73

Financial Assistance to State and Local Governments ........................................ 73

Statement of General Performance Goals and Objectives .................................... 73

Full Committee Votes .............................................................................................. 74

State List .................................................................................................................. 75

Additional Views ...................................................................................................... 95

PURPOSE OF THE BILL

This bill marks the introduction of the first Military Quality of 

Life and Veterans Affairs, and Related Agencies Appropriations 

bill. The Committee has formed this bill for the purpose of moving 

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towards taking a more comprehensive look at the quality of life for 

U.S. servicemen and women, from recruitment through retirement. 

Since the advent of the All Volunteer Force in 1973, quality of life 

has come to play an increasingly prominent role in preserving the 

unmatched professionalism and capability of the U.S. armed forces. 

All of the military witnesses who have testified before the Committee in preparation for this bill have spoken in full support of the 

new structure of the bill highlighting the importance of maintaining a suitable quality of life for soldiers, sailors, airmen and marines. This quality of life necessarily involves the construction and 

maintenance of military facilities and housing, the basic allowance 

for housing, the Defense Health Program, and environmental restoration. Several witnesses affirmed the saying, ‘‘you recruit the 

soldier and you retain the family,’’ and all of these elements contribute to that purpose, while maintaining a high level of readiness. 

Quality of life should also be a guiding concept upon a service 

member’s retirement, making veterans affairs another primary 

component in achieving the purpose of this bill. The Committee 

heard repeatedly during hearings of gaps and flaws in the transition from active duty to retirement, particularly in the switch from 

active duty health care to veterans health care. Unacceptable in 

peacetime, this situation becomes intolerable in a time of war. Advances in battlefield medicine have resulted in dramatic increases 

over previous conflicts in the percentage of service personnel who 

survive their wounds. The other side of this salutary change is an 

increase in certain medical cases, such as amputee and trauma 

cases. The Committee is deeply concerned that wounded veterans 

receive the treatment they require and deserve. The Committee 

will thus continue in the future to examine opportunities for improving quality of life for active and reserve personnel, veterans, 

and those making the transition from active to veteran status. 

The programs funded in the bill for the Department of Defense 

(DOD) include: military construction, including housing; operation 

and maintenance of family housing; the family housing improvement fund; the basic allowance for housing payment; facilities 

sustainment, restoration and modernization; environmental restoration; the Defense Health Program; the U.S. share of the North 

Atlantic Treaty Organization Security Investment Program; funds 

to execute projects identified by the base realignment and closure 

authorities; the chemical demilitarization construction program; 

and the foreign currency fluctuation account. The bill also funds 

the Department of Veterans Affairs (VA). Finally, the bill funds 

four related agencies, including the American Battle Monuments 

Commission, Cemeterial Expenses, Army, the U.S. Court of Appeals for Veterans Claims, and the Armed Forces Retirement 

Home. 

CONFORMANCE WITH AUTHORIZATION BILL

On May 12, 2005, the Readiness Subcommittee of the Armed 

Services Committee reported out its section of the National Defense 

Authorization Act for 2006. At this time, conference action on the 

legislation has not concluded; therefore, projects in this bill are approved subject to authorization. 

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SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommends $121,783,618,000 in new budget authority for the programs and activities funded in the bill. This recommendation is $1,050,081,000 above the President’s request and 

$7,396,777,000 above the fiscal year 2005 enacted level. Included in 

this amount is $35,654,933,000 in mandatory authority and 

$85,158,000,000 in discretionary authority. The following table 

compares amounts recommended in the bill to the President’s request and amounts appropriated in fiscal year 2005:

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ITEMS OF INTEREST

Post Traumatic Stress Disorder.—There has been a great deal of 

concern that current military operations in Iraq and Afghanistan 

will result in a large number of service members returning with 

psychological problems and that there is a lack of care available. 

The Committee believes that hardships resulting from U.S. troop 

deployments to Iraq and Afghanistan make it imperative for the 

VA and DOD to offer thorough and wide-ranging mental health 

services for active duty and reserve members deployed to combat 

theaters as well as for their families. The Committee is concerned 

that sufficient mental health services are lacking to treat combat 

and mental illnesses that affect our soldiers and veterans. Additionally, there is a concern that the stresses of deployment are having an adverse effect on the families of deployed service members 

and that mental health services will not be available to them. 

According to the Department of Defense, across all programs, 

mental health support is available to individual service members 

before, during and after deployment. Post Traumatic Stress Disorder (PTSD) was added to the manual of mental health diagnoses 

primarily as a result of the long-term experience of veterans of the 

Vietnam War. Treatment for PTSD involves a combination of medication, psychotherapy, and group therapy. 

Military personnel returning from Operation Enduring Freedom 

(OEF) and Operation Iraqi Freedom (OIF) are given education on 

depression and PTSD prior to redeployment and are screened during redeployment, using the Post-Deployment Health Assessment 

process. The Department of Defense is making use of the Internet 

to provide improved access to information and mental health care 

in order to reduce the stigma with seeking mental health services. 

The Committee directs the Department of Veterans Affairs and 

Department of Defense to jointly study mental healthcare, the 

onset and nature of PTSD, panic disorder, and bipolar disorder. 

Also, to improve mental health testing, tracking of returning combat duty servicemen, to include the Reserve Component for a period of not less than 10 years. In addition, the Departments of Defense and Veterans Affairs are encouraged to establish a classification for psychiatric nurses, and increase hires of individuals with 

those capabilities. 

The Committee notes that more than 20 years ago, the Congress 

established a Department of Veterans Affairs Special Committee on 

Post Traumatic Stress Disorder to determine the Department’s capacity to provide assessment and treatment for PTSD and to guide 

the Department’s educational, research, and benefits activities with 

regard to PTSD. The Special Committee has provided the Department of Veterans Affairs and the Congress with annual reports 

that contain recommendations for improving PTSD programs and 

some progress has been made. But it is also clear from the most 

recent report, dated October, 2004, that much more needs to be 

done so that this issue is given its proper attention. 

First and foremost, the VA must prepare to meet the needs of a 

new generation of combat veterans, many of whom are still in uniform. This requires, according to the report, a prospective approach 

including the earliest possible identification and treatment of post 

traumatic readjustment problems and the prevention of chronic 

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PTSD. Since many post combat individuals remain on active duty, 

the Departments of Defense and Veterans Affairs must work together to identify at-risk individuals early on and coordinate treatment options and benefits at the on-set to minimize long-term consequences. During demobilization, every returning service member 

completes the Post Deployment Evaluation Screen (Form 2796). Although Post Deployment Evaluation Screen results include essential information about stressors and about signs of post traumatic 

responses, they are not currently being made available for VA planners or clinicians. The Special Committee believes this must 

change in order for the VA to have important information should 

an individual present to the VA for treatment. The Committee directs the DOD and VA to report on the obstacles to providing such 

information to the VA and possible remedies. 

For those individuals who serve in Guard and Reserve components, who return to civilian life after deployment and thus don’t 

have a ‘‘support community’’ at hand, special efforts must be made 

to identify potential problems once individuals have settled in to 

their former lives. This is the most vexing challenge for the VA, but 

it is not insurmountable. As the report of the Special Committee 

notes, Guard and Reserve troops have 90 days of leave before they 

report again for weekend duty following deployment. After this 90 

days, according to the report, would be an ideal time to adopt as 

the standard period after which the post deployment mental health 

intervention would be made, using mental health professionals 

leading small group discussions of the experiences the troops faced. 

The Committee believes this recommendation deserves serious consideration and directs the DOD and VA to report on their plans for 

establishing such a procedure. 

With regard to VA capabilities, the Special Committee has had 

a long-running recommendation that every VA Medical Center 

have a PTSD Clinical Team (PCT), yet two decades after the recommendation was first put forth, only 86 of 163 VA medical centers 

have PCTs. Coupled with this fact is the VA’s growing reliance on 

Community Based Outpatient Clinics and the lack of PTSD service 

at those locations. The Committee notes that the Department estimates it will spend at least $2,200,000,000 on specialty mental 

health programs in fiscal year 2006, and the entirety of health care 

supporting veterans with mental illness will approach 

$10,000,000,000. By way of illustration, during fiscal year 2002, a 

total of 202,862 veterans had a clinical visit in which PTSD was 

a focus of treatment, but only 29 percent of these veterans received 

treatment in a specialized PTSD program. VA’s primary care program is a de facto mental health system for the majority of those 

seeking VA care. But the VA must ensure that PTSD services are 

provided in Primary Care settings by design, not by default. To 

provide the true continuum of care necessary to treat PTSD effectively, the Primary Care services need to be fully integrated with 

general mental health and specialty PTSD services. The VA has a 

long road to travel before this becomes the actual practice, but effective PCTs at the VA Medical Centers will provide the basis to 

travel down that road. The Committee is very concerned about this 

lack of responsiveness to the Special Committee recommendation in 

this regard and directs the VA to develop a plan for implementaVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
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tion of effective PCTs at each VA Medical Center and identify any 

resource shortfalls which would impede implementation. 

Seamless Transition from Active Duty to Veterans Affairs.—

Healthcare is a great concern for our active duty and reserve components, their dependents as well as our retirees. Placing the military health care system and the veterans health care system in one 

bill has allowed the committee to explore coordinated efforts and 

efficiencies within the two systems. The Committee believes this 

will enable a comprehensive health care system to meet the needs 

of our soldiers and their dependents as well as retirees. 

An over arching concern of this Committee as well as for Congress, is the seamless transition from active duty to veteran and 

what medical services are available for soldiers and their families. 

Today the age of the retiree is much more prevalent as parents are 

talking on behalf of their children as they transition to retiree status. The VA established an Office of Seamless Transition in 2003. 

This office is to improve coordination between the Veterans Health 

Administration, the Veterans Benefits Administration, and the Department of Defense to ensure that appropriate veterans affairs 

policies and procedures are in place to enhance the continuity of 

care as the soldiers’ transition to the various health care and disability services available within both Departments. The Committee 

understands that DOD is coordinating with this office on many programs, but believes more could be done. 

Also established in 2003 was a joint DOD/VA Seamless Transition Program at Walter Reed Army Medical Center (WRAMC) to 

provide case management for combat veterans. This program has 

expanded to the National Naval Medical Center and to the Brooke, 

Eisenhower, Fort Hood, Madigan and Evans Army Medical Centers. 

To further improve the transition, in April 2004 the Army and 

the VA announced the Disabled Soldier Support System (DS3) designed to assist severely disabled soldiers and their families during 

transition from military service to civilian life. The DS3 provides 

personal outreach to disabled soldiers to ensure accessibility and 

responsiveness of DOD, VA and civilian services, including medical 

care, family services, and other support services. Soldiers will be 

followed for five years after retirement to ensure they receive the 

TRICARE and VA benefits for which they are eligible. 

In February 2005, DOD announced the Military Severely Injured 

Joint Support Operations Center, designed to ensure that service 

members with severe injuries have accessibility to all available resources. The Center will act as a core resource for injured service 

members and their families and as a supplement to service-specific 

programs. It ties together DOD and other government programs 

such as those run by the VA and the Department of Labor. The 

Center is intended to coordinate several existing programs such as 

DS3 and Marine for Life, but not replace them. 

Additional programs for all service members and their families 

include Military One Source, DOD Deployment Health Clinical 

Center, Cooperative Separation Physical Examination Process for 

DOD and VA with 51 locations in the United States and the Family Assistant Centers at 419 locations in the United States established by the National Guard. 

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Since late 2003, DOD has provided updated rosters, on a recurring basis to the VA of those who served in OIF and OEF and then 

separated from active duty. VA has used these lists to determine 

the rates of VA health care utilization by OIF and OEF veterans, 

including the most frequent diagnoses made during hospitalizations and clinic visits. VA uses these lists to send out mass mailings about the availability of VA health care and benefits. To date, 

the VA has provided medical care to 49,000 veterans of OIF and 

OEF and has received claims for disability compensation from 

38,000 veterans. 

The DOD/VA Deployment Health Working Group, which was established under the DOD/VA Health Executive Council, provides 

leadership on issues related to deployed service members. This 

Working Group has served as a forum to inform the VA about disease and injury data from combat theaters, about DOD data on environmental surveillance in theater, and clinical research issues related to mental health. 

Information Sharing.—An additional concern of the Committee is 

the integration of IT systems and records sharing. There are seven 

initiatives fostering interoperability between DOD and VA health 

information systems. They include the Federal Health Information 

Exchange (FHIE) which enables the transfer of protected electronic 

health information from DOD to VA at the time of a service member’s separation; the Bidirectional Health Information Exchange 

(BHIE) which enables near real-time sharing of allergy, outpatient 

prescription and demographic data between DOD and VA for patients treated in both; Consolidated Health Informatics (CHI) 

which DOD serves as a leading partner with the Department of 

Veterans Affairs and with the managing partner, the Department 

of Health and Human Services to advance the nation in the adoption of a portfolio of existing health information interoperability 

standards; a Centralized Credentials Quality Assurance System/

VetPro where the VA and DOD have developed a prototype interface to support data sharing between their systems; a Laboratory 

Data Sharing Interoperability (LDSI) that facilitates the electronic 

sharing of laboratory order entry and results retrieval among DOD, 

VA and commercial reference laboratories; a Clinical Data Repository/Health Data Repository that establishes interoperability between DOD’s Clinical Data Repository and the VA’s Health Data 

Repository; and lastly the Federal Health Architecture (FHA) initiative managed by the Department of Health and Human Services 

that links business processes to IT solutions demonstrating improvements in health outcomes. 

The Committee is encouraged by these initiatives and directs the 

Department of Defense and Veterans Affairs to continue to examine the synergies that exist between the two Departments that will 

enhance the continuity of care for our military families and retirees. The Committee directs the DOD and VA to report back to the 

Committee by February 1, 2006 on any internal or external obstacles that exist to prevent such a transition along with plans and 

recommendations. 

Facilities Sustainment, Restoration and Modernization.—The Department is directed to continue describing on form 1390 the backlog of SRM requirements at installations with future construction 

projects. For troop housing requests, form 1391 should describe any 

19

SRM 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 account are described below: 

• Components of the facility may be repaired by replacement. 

Such replacement can be up to current standards or codes. 

• Interior arrangements and restorations may be included as repair. 

• 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. 

• 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.

Reprogramming Criteria.—Reprogramming requests are required 

for military construction projects when the increase equals or exceeds 25 percent of the appropriated amount or $2,000,000, whichever is less. 

Backlog of Facilities Restoration and Modernization.—The Committee is concerned that the current operations tempo is increasing 

the backlog of restoration and modernization at installations across 

all services. The Committee therefore directs each service and the 

Department of Defense to report to the Committee on the backlog 

of restoration and modernization, including (1) the backlog by facility type, (2) the installations at which the backlog is most severe 

(including overseas installations), and (3) trends in the backlog 

over the past five fiscal years for which data is available. These reports are due no later than 90 days after the enactment of this Act. 

Full Funding of Facilities Sustainment.—The Committee commends the Army for its 90–90 funding initiative for Sustainment, 

Restoration and Modernization (SRM) and Base Operations Support (BOS). This initiative is discussed in further detail under Military Construction, Army in this report. While the Committee recognizes that the services do not follow the same practices in estimating and budgeting for sustainment requirements, the Committee urges all the services and the Department to consider the 

implementation of initiatives that will make full funding of SRM 

and BOS costs a visible priority. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION, ARMY

Fiscal year 2005 appropriation .......................................................... $1,962,108,000 

Fiscal year 2006 budget request ....................................................... 1,479,841,000 

Committee recommendation in the bill ............................................ 1,652,552,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (309,556,000) 

Fiscal year 2006 budget request ................................................ 172,711,000 

The Committee recommends an appropriation of $1,652,552,000 

for Military Construction, Army, for fiscal year 2006. This is a deVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
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crease of $309,556,000 below the fiscal year 2005 enacted level and 

an increase of $172,711,000 above the budget request.

Maryland—Fort Detrick: Research Acquisition Building.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $540,000 be made available for 

the design of this facility. 

Maryland—Fort Detrick: Satellite Communications Facility.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $1,206,000 be made available 

for the design of this facility. 

Virginia—Fort Belvoir: National Ground Intelligence Center Facility Expansion.—Of the amount provided for planning and design in this account, the Committee directs that not less than $211,000 

be made available for the design of this facility. 

Overhead Cover Systems.—Within the appropriation for Military 

Construction, Army, the Committee recommends an additional 

amount of $50,000,000 for overhead cover systems for force protection in Iraq. 

Fort Ord.—The Committee is aware that the Army and the reuse authority at the former Fort Ord have begun discussions to develop creative means to transfer the remaining surplus land at the 

base to the re-use authority prior to the completion of clean up activities at the site. The Committee encourages the Army and the 

re-use authority to explore the use of an environmental services cooperative agreement. Such an arrangement would allow the Army 

to transfer the land immediately but guarantee the re-use authority access to funds to pursue clean up through third parties. The 

Committee asks the Army to provide the Committee with a report 

no later than December 1, 2005 on the progress and status of this 

effort. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2005 appropriation .......................................................... $1,180,397,000 

Fiscal year 2006 budget request ....................................................... 1,029,249,000 

Committee recommendation in the bill ............................................ 1,109,177,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (71,220,000) 

Fiscal year 2006 budget request ................................................ 79,928,000 

The Committee recommends an appropriation of $1,109,177,000 

for Military Construction, Navy and Marine Corps, for fiscal year 

2006. This is a decrease of $71,220,000 below the fiscal year 2005 

enacted level and an increase of $79,928,000 above the budget request. 

California—NAWC Weapons Division China Lake: Air Traffic 

Control Tower.—Of the amount provided for planning and design in this account, the Committee directs that not less than $710,000 

be made available for the design of this facility. 

Florida—NS Mayport: Wharf Upgrades.—Of the amount provided for planning and design in this account, the Committee directs that not less than $500,000 be made available for the design 

of this project. 

North Carolina—Outlying Landing Field.—The Committee is 

aware that the U.S. District Court for the Eastern District of North 

Carolina has ruled that the Navy did not fulfill its obligations 

under the National Environmental Policy Act when making a deciVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
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sion to construct an Outlying Landing Field in Washington and 

Beaufort Counties in North Carolina. The Committee urges the 

Navy to fully reconsider alternative sites in cooperation with the 

State of North Carolina. 

Energy Conservation.—In the fiscal year 2005 House report accompanying the Military Construction Appropriations Act, 2005, 

the Committee encouraged the Navy to expand opportunities to use 

advanced photovoltaic technology such as the use of triple junction 

amorphous silicon photovoltaic roofing in military construction 

projects. The Committee understands the Navy has begun exploring this potential technology with industry. The Committee requests a report no later than January 15, 2006 on actions taken 

to incorporate this technology into specific project proposals.

MILITARY CONSTRUCTION, AIR FORCE

Fiscal year 2005 appropriation .......................................................... $844,531,000 

Fiscal year 2006 budget request ....................................................... 1,069,640,000 

Committee recommendation in the bill ............................................ 1,171,338,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (326,807,000) 

Fiscal year 2006 budget request ................................................ 101,698,000 

The Committee recommends an appropriation of $1,171,338,000 

for Military Construction, Air Force, for fiscal year 2006. This is an 

increase of $326,807,000 above the fiscal year 2005 enacted level 

and an increase of $101,698,000 above the budget request. 

The Committee understands the Air Force is developing new 

long-range munitions and is looking at several sites for required 

testing. The Committee also understands the citizens of Taylor 

County, Florida, through a straw poll, overwhelmingly rejected a 

resolution to locate the testing range in that County. The Committee urges the Air Force to give full consideration to local community concerns throughout the decision process.

Arizona: Davis-Monthan Air Force Base.—It is the Committee’s 

understanding that the residents of Pima County, Arizona approved in May 2004 a bond issue to facilitate the acquisition of 

land around Davis-Monthan Air Force Base to prevent encroachment upon the base from urban development. It is also the Committee’s understanding that the Air Force has not studied the potential problem of encroachment upon the base, and has not developed any estimate of the requirements for a land buffer. The Committee believes that the willingness of the citizens of Pima County 

to work with the Air Force to plan for land use around DavisMonthan AFB in order to protect the base’s mission merits consideration. The Committee therefore requests the Air Force to report 

to the Committee no later than January 31, 2006 on the potential 

for encroachment upon Davis-Monthan AFB, as well as potential 

land-use solutions to prevent or mitigate such encroachment. 

Mississippi—Columbus AFB: Consolidated Mission Support 

Group Facility.—Of the amount provided for planning and design 

in this account, the Committee directs that not less than $900,000 

be made available for the design of this facility. 

Montana—Malmstrom AFB: Add/Alter Fitness Center.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $990,000 be made available for 

the design of this facility. 

22

New Mexico—Kirtland AFB: Wyoming Boulevard.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $550,000 be made available for 

the design of this project.

Texas—Sheppard AFB: Base Operations Ramp.—Of the amount 

provided for planning and design in this account, the Committee 

directs that not less than $900,000 be made available for the design of this facility. 

Utah—Hill AFB: Missile Storage Facilities Consolidation.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $800,000 be made available 

for the design of this project. 

Washington—Fairchild AFB: Mission Support Complex, Air Education and Training Command.—Of the amount provided for planning and design in this account, the Committee directs that not 

less than $706,000 be made available for the design of this facility. 

Wyoming—F.E. Warren AFB: Storm Water Drainage.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $900,000 be made available for 

the design of this project. 

MILITARY CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $663,318,000 

Fiscal year 2006 budget request ....................................................... 1,042,730,000 

Committee recommendation in the bill ............................................ 976,664,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 313,346,000 

Fiscal year 2006 budget request ................................................ (66,066,000) 

The Committee recommends an appropriation of $976,664,000 for 

Military Construction, Defense-wide, for fiscal year 2006. This is an 

increase of $313,346,000 above the fiscal year 2005 enacted level 

and a decrease of $66,066,000 below the budget request. Within 

this appropriation is $50,000,000 for the Energy Conservation Improvement Program, the same as the fiscal year 2005 level and 

$10,000,000 below the budget request. Also within this appropriation, the Committee recommends $5,000,000 for contingency construction, which is $5,000,000 below the fiscal year 2005 enacted 

level and $5,000,000 below the request.

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $446,748,000 

Fiscal year 2006 budget request ....................................................... 327,012,000 

Committee recommendation in the bill ............................................ 410,624,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (36,124,000) 

Fiscal year 2006 budget request ................................................ 83,612,000

The Committee recommends an appropriation of $410,624,000 for 

Military Construction, Army National Guard, for fiscal year 2006. 

This is a decrease of $36,124,000 below the fiscal year 2005 enacted 

level and an increase of $83,612,000 above the budget request.

Iowa—Iowa City: Readiness Center/Field Maintenance Shop.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $431,000 be made available 

for the design of this project. 

Nebraska—Lincoln: Joint Forces Headquarters.—Of the amount 

provided for planning and design in this account, the Committee 

23

directs that not less than $956,000 be made available for the design of this project. 

Tennessee—Kingsport: Joint Armed Forces Reserve Center.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $918,000 be made available 

for the design of this project. 

Tennessee—Tullahoma: Readiness Center.—Of the amount provided for planning and design in this account, the Committee directs that not less $602,000 be made available for the design of this 

project. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $238,043,000 

Fiscal year 2006 budget request ....................................................... 165,256,000 

Committee recommendation in the bill ............................................ 225,727,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (12,316,000) 

Fiscal year 2006 budget request ................................................ 60,471,000 

The Committee recommends an appropriation of $225,727,000 for 

Military Construction, Air National Guard, for fiscal year 2006. 

This is a decrease of $12,316,000 below the fiscal year 2005 enacted 

level and an increase of $60,471,000 above the budget request.

California—March ARB: Replace Aircraft Maintenance Hangar 

and Shops.—Of the amount provided for planning and design in 

this account, the Committee directs that not less than $960,000 be 

made available for the design of this facility. 

Illinois—Peoria Regional Airport: Replace Composite ASOC/

ASOS Training Facility.—Of the amount provided for planning and 

design in this account, the Committee directs that not less than 

$790,000 be made available for the design of this facility. 

Michigan—Selfridge ANGB: Fighter Aircraft Alert Complex.—Of 

the amount provided for planning and design in this account, the 

Committee directs that not less than $1,700,000 be made available 

for the design of this facility. 

New York—Francis Gabreski ANGB: Pararescue Facility.—Of the 

amount provided for planning and design in this account, the Committee directs that not less than $920,000 be made available for 

the design of this facility. 

New York—Griffiss Northeast Air Defense: Northeast Air Defense 

Sector Support Facility.—Of the amount provided for planning and 

design in this account, the Committee directs that not less than 

$850,000 be made available for the design of this facility. 

Oklahoma—Will Rogers World Airport: Replace Composite Aircraft Maintenance Complex.—Of the amount provided for planning 

and design in this account, the Committee directs that not less 

than $1,172,000 be made available for the design of this facility. 

Pennsylvania—Willow Grove ARS: Operations and Communications Training Complex.—Of the amount provided for planning and 

design in this account, the Committee directs that not less than 

$570,000 be made available for the design of this facility. 

24

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2005 appropriation .......................................................... $101,077,000 

Fiscal year 2006 budget request ....................................................... 106,077,000 

Committee recommendation in the bill ............................................ 138,425,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 37,348,000 

Fiscal year 2006 budget request ................................................ 32,348,000 

The Committee recommends an appropriation of $138,425,000 for 

Military Construction, Army Reserve, for fiscal year 2006. This is 

an increase of $37,348,000 above the fiscal year 2005 enacted level 

and an increase of $32,348,000 above the budget request. 

Massachusetts—Worcester: Reserve Center.—Of the amount provided for planning and design in this account, the Committee directs that not less than $990,000 be made available for the design 

of this facility. 

MILITARY CONSTRUCTION, NAVAL RESERVE

Fiscal year 2005 appropriation .......................................................... $48,596,000 

Fiscal year 2006 budget request ....................................................... 45,226,000 

Committee recommendation in the bill ............................................ 45,226,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (3,370,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $45,226,000 for 

Military Construction, Naval Reserve, for fiscal year 2006. This is 

a decrease of $3,370,000 below the fiscal year 2005 enacted level 

and the same as the budget request. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2005 appropriation .......................................................... $123,977,000 

Fiscal year 2006 budget request ....................................................... 79,260,000 

Committee recommendation in the bill ............................................ 110,847,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (13,130,000) 

Fiscal year 2006 budget request ................................................ 31,587,000 

The Committee recommends an appropriation of $110,847,000 for 

Military Construction, Air Force Reserve, for fiscal year 2006. This 

is a decrease of $13,130,000 below the fiscal year 2005 enacted 

level and an increase of $31,587,000 above the budget request. 

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2005 appropriation .......................................................... $160,800,000 

Fiscal year 2006 budget request ....................................................... 206,858,000 

Committee recommendation in the bill ............................................ 206,858,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 46,058,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $206,858,000 for 

the North Atlantic Treaty Organization Security Investment Program (NSIP). This is an increase of $46,058,000 above the fiscal 

year 2005 enacted level and the same level as the budget request. 

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, 

25

communications and information systems, radar and navigational 

aids, and military headquarters. 

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 2005 appropriation .......................................................... $4,074,603,000 

Fiscal year 2006 budget request ....................................................... 4,242,169,000 

Committee recommendation in the bill ............................................ 4,201,661,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 127,058,000 

Fiscal year 2006 budget request ................................................ (40,508,000) 

The Committee recommends a total appropriation of $4,201,661,000 for the family housing construction and operation 

and maintenance accounts for fiscal year 2006. This is an increase 

of $127,058,000 above the fiscal year 2005 enacted level and a decrease of $40,508,000 below the budget request. The operation and 

maintenance accounts provide funds to pay for maintenance and 

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

Family Housing Privatization Progress Reports.—The Committee 

continues to support the efforts of the Military Housing Privatization Initiative (MHPI) to move service members and their families 

out of inadequate and substandard housing. The Department has 

set the goal of formalizing all the necessary agreements with the 

private sector to eliminate such housing within the United States 

by 2007, and overseas by 2009. The Committee is pleased with the 

rapid progress of the program; the Department anticipates that the 

number of inadequate housing units on inventory will be reduced 

to 36,572 by the end of fiscal year 2006—a projected reduction of 

nearly 80 percent from the January 2001 inventory of approximately 180,000. The Committee emphasizes that this reduction 

does not mean that those inadequate homes will be replaced with 

new homes by that time; it merely means that the necessary contracts will be in place to replace or renovate such homes. The 

MHPI is thus in the process of transition, as the Department begins to shift its focus from the conception and initiation of privatization agreements with developers to the implementation and 

monitoring of those projects already in place. In order to ensure 

that military families receive new, better housing on schedule and 

that developers keep their contractual obligations to the Federal 

government, it is important for the Committee to maintain oversight of the program. The Committee is aware that the Department 

uses a tool known as the Program Evaluation Plan (PEP) to monitor the MHPI, and that data for the PEP is collected semi-annually. The Committee therefore directs the Department to provide a 

report, on a no less than semi-annual basis, summarizing the results of the PEP and giving status reports on each privatization 

project underway. 

Family Housing Management Costs.—The Committee remains 

concerned about requested increases in family housing management accounts, especially in the Navy and Air Force, both of which 

are requesting substantial increases in per unit costs. While the 

26

Committee understands that these costs are essentially overhead, 

and do not decline in proportion to the reduction in inventory as 

housing is privatized, the Committee nevertheless believes that increases in per unit costs can and should be controlled. The table 

below shows the increases in per unit management costs for housing in the continental United States requested by the services:

Service 

Per unit costs,

FY 2005

($000) 

Per unit costs,

FY 2006 request

($000) 

Requested per 

unit increase,

FY05–06

Projected decline in housing inventory 

CONUS family 

housing management request,

FY 2006

($000) 

Reduction 

from FY06 request

($000) 

Army .............................................. 1,308 1,442 10.3% (43.9%) 30,304 ....................

Navy .............................................. 2,198 4,046 84.1% (43.7%) 51,049 (5.000) 

USMC ............................................ 903 1,499 66.1% (56.8%) 10,443 ....................

USAF ............................................. 1,069 2,693 151.8% (16.3%) 53,298 (11,620) 

The Committee believes that the Navy and Air Force should be 

able to manage family housing with more restrained per unit increases. The Committee therefore has reduced the Navy and Air 

Force family housing operation and maintenance requests by 

$5,000,000 and $11,620,000, respectively. 

Foreign Currency Savings.—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 1, 

2005. Likewise, 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 Requirement.—As in prior years, the Secretary 

of Defense is directed to report quarterly on the details of all new 

or renewal domestic leases entered into during the previous quarter that exceed $15,000 per unit per year, 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 renewal 

lease agreements that exceed $20,000 per year (as adjusted for foreign currency fluctuation from October 1, 1987, but not adjusted for 

inflation) 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. 

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2005 appropriation .......................................................... $615,099,000 

Fiscal year 2006 budget request ....................................................... 549,636,000 

Committee recommendation in the bill ............................................ 549,636,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (65,463,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $549,636,000 for 

Family Housing Construction, Army, for fiscal year 2006. This is 

27

a decrease of $65,463,000 below the fiscal year 2005 enacted level 

and the same as the budget request. The appropriation includes 

$231,700,000 to construct new family housing units, $300,400,000 

to improve existing units, and $17,536,000 for planning and design. 

This funding level will provide the budget request of $138,000,000 

for the privatization of family housing at 5 installations, and supports the elimination of 14,478 inadequate family housing units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2005 appropriation .......................................................... $927,707,000 

Fiscal year 2006 budget request ....................................................... 812,993,000 

Committee recommendation in the bill ............................................ 803,993,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (123,714,000) 

Fiscal year 2006 budget request ................................................ (9,000,000) 

The Committee recommends an appropriation of $803,993,000 for 

Family Housing Operation and Maintenance, Army, for fiscal year 

2006. This is a decrease of $123,714,000 below the fiscal year 2005 

enacted level and a decrease of $9,000,000 below the budget request. The decrease is to be taken from the Maintenance and Real 

Property account for general and flag officer quarters in the National Capital Region. 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2005 appropriation .......................................................... $126,806,000 

Fiscal year 2006 budget request ....................................................... 218,942,000 

Committee recommendation in the bill ............................................ 218,942,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 92,136,000

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $218,942,000 for 

Family Housing Construction, Navy and Marine Corps, for fiscal 

year 2006. This is an increase of $92,136,000 above the fiscal year 

2005 enacted level and the same as the budget request. The appropriation includes $40,298,000 to construct new family housing units 

and $178,644,000 to improve existing units. This funding level will 

provide the budget request of $112,327,000 for three family housing privatization projects, and supports the elimination of 7,103 inadequate family housing units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2005 appropriation .......................................................... $705,404,000 

Fiscal year 2006 budget request ....................................................... 593,660,000 

Committee recommendation in the bill ............................................ 588,660,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (116,744,000) 

Fiscal year 2006 budget request ................................................ (5,000,000) 

The Committee recommends an appropriation of $588,660,000 for 

Family Housing Operation and Maintenance, Navy and Marine 

Corps, for fiscal year 2006. This is a decrease of $116,744,000 

below the fiscal year 2005 enacted level and a decrease of 

$5,000,000 below the budget request. The decrease is to be taken 

from the management account as explained in the family housing 

overview. 

28

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2005 appropriation .......................................................... $801,788,000 

Fiscal year 2006 budget request ....................................................... 1,251,108,000 

Committee recommendation in the bill ............................................ 1,236,220,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 434,432,000 

Fiscal year 2006 budget request ................................................ (14,888,000) 

The Committee recommends an appropriation of $1,236,220,000 

for Family Housing Construction, Air Force, for fiscal year 2006. 

This is an increase of $434,432,000 above the fiscal year 2005 enacted level and a decrease of $14,888,000 below the budget request. 

The appropriation includes $570,340,000 to construct new family 

housing units, $790,013,000 to improve existing units, and 

$37,104,000 for planning and design. The funding level will provide 

the budget request of $65,142,000 for three family housing privatization projects, and supports the elimination of 9,033 inadequate 

family housing units. 

The reductions to the request are as follows: $488,000 from new 

construction and $11,100,000 from construction improvements for 

general officers quarters in the National Capital Region; and 

$3,300,000 from planning and design for an Air Force programming 

error. 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2005 appropriation .......................................................... $864,784,000 

Fiscal year 2006 budget request ....................................................... 766,939,000 

Committee recommendation in the bill ............................................ 755,319,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (109,465,000) 

Fiscal year 2006 budget request ................................................ (11,620,000) 

The Committee recommends an appropriation of $755,319,000 for 

Family Housing Operation and Maintenance, Air Force, for fiscal 

year 2006. This is a decrease of $109,465,000 below the fiscal year 

2005 enacted level and a decrease of $11,620,000 below the budget 

request. 

The decrease below the request is from the Management account 

as explained in the family housing overview. 

FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $49,000 

Fiscal year 2006 budget request ....................................................... ............................

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

Comparison with: 

Fiscal year 2005 appropriation .................................................. (49,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee does not recommend an appropriation for Family 

Housing Construction, Defense-wide, for fiscal year 2006. This is a 

decrease of $49,000 below the fiscal year 2005 enacted level and 

the same as the budget request. 

29

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $49,575,000 

Fiscal year 2006 budget request ....................................................... 46,391,000 

Committee recommendation in the bill ............................................ 46,391,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (3,184,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $46,391,000 for 

Family Housing Operation and Maintenance, Defense-wide, for fiscal year 2006. This is a decrease of $3,184,000 below the fiscal year 

2005 enacted level and the same as the budget request. 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2005 appropriation .......................................................... $ (16,609,000) 

Fiscal year 2006 budget request ....................................................... 2,500,000 

Committee recommendation in the bill ............................................ 2,500,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 19,109,000 

Fiscal year 2006 estimate ........................................................... ............................

The Committee recommends an appropriation of $2,500,000 for 

the Department of Defense Family Housing Improvement Fund 

(FHIF) for fiscal year 2006. This is an increase of $19,109,000 

above the fiscal year 2005 enacted level and the same as the budget request. The Military Construction Appropriations Act, 2005 (PL 

108–324) appropriated $2,500,000 to the Fund while rescinding $19,109,000 for projects that were no longer required. 

The 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.

CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $81,886,000 

Fiscal year 2006 budget request ....................................................... ............................

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

Comparison with: 

Fiscal year 2005 appropriation .................................................. (81,886,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee does not recommend an appropriation for Chemical Demilitarization Construction, Defense-wide, for fiscal year 

2006. This is a decrease of $81,886,000 below the fiscal year 2005 

enacted level and the same as the 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 inVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
30

stallation support facilities and infrastructures required to support 

the Chemical Demilitarization program. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 1990

Fiscal year 2005 appropriation .......................................................... $246,166,000 

Fiscal year 2006 budget request ....................................................... 377,827,000 

Committee recommendation in the bill ............................................ 377,827,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 131,661,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $377,827,000 for 

the Base Realignment and Closure Account 1990 for fiscal year 

2006. This is an increase of $131,661,000 above the fiscal year 2005 

enacted level and the same as the budget request. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005

Fiscal year 2005 appropriation .......................................................... ............................

Fiscal year 2006 budget request ....................................................... $1,880,466,000 

Committee recommendation in the bill ............................................ 1,570,466,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,570,466,000

Fiscal year 2006 budget request ................................................ (310,000,000) 

The Committee recommends an appropriation of $1,570,466,000 

for the Base Realignment and Closure Account 2005 for fiscal year 

2006. This is a decrease of $310,000,000 below the budget request. 

No funds were appropriated for this account in fiscal year 2005, as 

this is a new account. 

BASIC ALLOWANCE FOR HOUSING, ARMY

Fiscal year 2005 appropriation .......................................................... $3,341,882,000 

Fiscal year 2006 budget request ....................................................... 3,945,392,000 

Committee recommendation in the bill ............................................ 3,945,392,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 603,510,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $3,945,392,000 

for Basic Allowance for Housing, Army for fiscal year 2006. This is 

an increase of $603,510,000 above the fiscal year 2005 enacted 

level and the same as the budget request.

BASIC ALLOWANCE FOR HOUSING, NAVY

Fiscal year 2005 appropriation .......................................................... $3,471,251,000 

Fiscal year 2006 budget request ....................................................... 3,592,905,000 

Committee recommendation in the bill ............................................ 3,592,905,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 121,654,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $3,592,905,000 

for Basic Allowance for Housing, Navy for fiscal year 2006. This is 

an increase of $121,654,000 above the fiscal year 2005 enacted 

level and the same as the budget request. 

31

BASIC ALLOWANCE FOR HOUSING, MARINE CORPS

Fiscal year 2005 appropriation .......................................................... $1,053,573,000

Fiscal year 2006 budget request ....................................................... 1,179,071,000 

Committee recommendation in the bill ............................................ 1,179,071,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 125,498,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $1,179,071,000 

for Basic Allowance for Housing, Marine Corps for fiscal year 2006. 

This is an increase of $125,498,000 above the fiscal year 2005 enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, AIR FORCE

Fiscal year 2005 appropriation .......................................................... $3,010,770,000 

Fiscal year 2006 budget request ....................................................... 3,240,113,000 

Committee recommendation in the bill ............................................ 3,240,113,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 229,343,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $3,240,113,000 

for Basic Allowance for Housing, Air Force for fiscal year 2006. 

This is an increase of $229,343,000 above the fiscal year 2005 enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, ARMY NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $434,073,000 

Fiscal year 2006 budget request ....................................................... 453,690,000 

Committee recommendation in the bill ............................................ 453,690,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 19,617,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $453,690,000 for 

Basic Allowance for Housing, Army National Guard for fiscal year 

2006. This is an increase of $19,617,000 above the fiscal year 2005 

enacted level and the same as the budget request.

BASIC ALLOWANCE FOR HOUSING, AIR NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $214,151,000 

Fiscal year 2006 budget request ....................................................... 248,317,000 

Committee recommendation in the bill ............................................ 248,317,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 34,166,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $248,317,000 for 

Basic Allowance for Housing, Air National Guard for fiscal year 

2006. This is an increase of $34,166,000 above the fiscal year 2005 

enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, ARMY RESERVE

Fiscal year 2005 appropriation .......................................................... $290,117,000 

Fiscal year 2006 budget request ....................................................... 310,566,000 

Committee recommendation in the bill ............................................ 310,566,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 20,449,000 

Fiscal year 2006 budget request ................................................ ............................

32

The Committee recommends an appropriation of $310,566,000 for 

Basic Allowance for Housing, Army Reserve for fiscal year 2006. 

This is an increase of $20,449,000 above the fiscal year 2005 enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, NAVAL RESERVE

Fiscal year 2005 appropriation .......................................................... $202,282,000 

Fiscal year 2006 budget request ....................................................... 191,338,000 

Committee recommendation in the bill ............................................ 191,338,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (10,944,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $191,338,000 for 

Basic Allowance for Housing, Naval Reserve for fiscal year 2006. 

This is a decrease of $10,944,000 from the fiscal year 2005 enacted 

level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, MARINE CORPS RESERVE

Fiscal year 2005 appropriation .......................................................... $38,945,000 

Fiscal year 2006 budget request ....................................................... 40,609,000 

Committee recommendation in the bill ............................................ 40,609,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,664,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $40,609,000 for 

Basic Allowance for Housing, Marine Corps Reserve for fiscal year 

2006. This is an increase of $1,664,000 above the fiscal year 2005 

enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, AIR FORCE RESERVE

Fiscal year 2005 appropriation .......................................................... $59,781,000 

Fiscal year 2006 budget request ....................................................... 71,286,000 

Committee recommendation in the bill ............................................ 71,286,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 11,505,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $71,286,000 for 

Basic Allowance for Housing, Air Force Reserve for fiscal year 

2006. This is an increase of $11,505,000 above the fiscal year 2005 

enacted level and the same as the budget request.

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

Fiscal year 2005 appropriation .......................................................... $1,967,028,000 

Fiscal year 2006 budget request ....................................................... 1,825,518,000 

Committee recommendation in the bill ............................................ 1,850,518,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (116,510,000) 

Fiscal year 2006 budget request ................................................ 25,000,000 

The Committee recommends an appropriation of $1,850,518,000 

for facilities sustainment, restoration and modernization, Army for 

fiscal year 2006. This is a decrease of $116,510,000 below the fiscal 

year 2005 enacted level and an increase of $25,000,000 above the 

budget request.

Army 90–90 Funding Initiative.—The Army announced in March 

2004 that it will institute a policy of funding both base operations 

support (BOS) and facilities sustainment at no less than 90 perVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00032 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
33

cent. The Committee approves of this initiative but laments that it 

was not instituted prior to the release of the fiscal year 2006 budget request. The underfunding of both BOS and sustainment accounts has been a chronic problem. In the past, funds were routinely transferred from the underfunded sustainment accounts to 

the even more severely underfunded BOS accounts to meet ‘‘mustpay’’ obligations such as utilities. The fiscal year 2006 budget request would not depart from this practice; BOS is budgeted at 72 

percent of the requirement, while sustainment is budgeted at 91 

percent. This practice has been of no small consequence, as the 

Army rates its overall facilities at C–3—meaning its facilities have 

significant deficiencies that prevent performance of some missions. 

This draining of funds from sustainment to pay for BOS or other 

urgent operational needs increased the rate at which facilities deteriorate and needed to be recapitalized. The end result was increased costs for military construction. Over time, such a situation 

has produced a less efficient use of taxpayer dollars and has led to 

a situation where our service men and women live and work in deteriorated and at times unsafe facilities. The Committee notes that, 

as sustainment is provided as a separate appropriation within this 

bill, neither the Army nor any other service component has the option of transferring funds out of sustainment to pay for BOS or 

other operational costs. This change presents an opportunity to 

fund facilities sustainment more sufficiently and with greater 

transparence. The Committee approves of the Army’s 90–90 initiative, and urges the Army to go beyond this goal (as well as the Department of Defense goal of 95 percent funding for sustainment, repair and modernization) to fund sustainment at 100 percent. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, NAVY

Fiscal year 2005 appropriation .......................................................... $1,333,288,000 

Fiscal year 2006 budget request ....................................................... 1,344,971,000 

Committee recommendation in the bill ............................................ 1,344,971,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 11,683,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $1,344,971,000 

for Facilities Sustainment, Restoration and Modernization, Navy 

for fiscal year 2006. This is an increase of $11,683,000 above the 

fiscal year 2005 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, 

MARINE CORPS

Fiscal year 2005 appropriation .......................................................... $523,756,000 

Fiscal year 2006 budget request ....................................................... 553,960,000 

Committee recommendation in the bill ............................................ 553,960,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 30,204,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $553,960,000 for 

Facilities Sustainment, Restoration and Modernization, Marine 

Corps for fiscal year 2006. This is an increase of $30,204,000 above 

the fiscal year 2005 enacted level and the same as the budget request.

34

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

FORCE

Fiscal year 2005 appropriation .......................................................... $1,991,710,000 

Fiscal year 2006 budget request ....................................................... 1,815,701,000 

Committee recommendation in the bill ............................................ 1,845,701,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (146,009,000) 

Fiscal year 2006 budget request ................................................ 30,000,000 

The Committee recommends an appropriation of $1,845,701,000 

for Facilities Sustainment, Restoration and Modernization, Air 

Force for fiscal year 2006. This is a decrease of $146,009,000 below 

the fiscal year 2005 enacted level and an increase of $30,000,000 

above the budget request. Within the amount provided, $1,500,000 

is for airfield lighting improvements at Avon Park. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $95,000,000 

Fiscal year 2006 budget request ....................................................... 115,400,000 

Committee recommendation in the bill ............................................ 115,400,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 20,400,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $115,400,000 for 

Facilities Sustainment, Restoration and Modernization, DefenseWide for fiscal year 2006. This is an increase of $20,400,000 above 

the fiscal year 2005 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $384,044,000 

Fiscal year 2006 budget request ....................................................... 391,544,000 

Committee recommendation in the bill ............................................ 391,544,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 7,500,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $391,544,000 for 

Facilities Sustainment, Restoration and Modernization, Army National Guard for fiscal year 2006. This is an increase of $7,500,000 

above the fiscal year 2005 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

NATIONAL GUARD

Fiscal year 2005 appropriation .......................................................... $230,642,000 

Fiscal year 2006 budget request ....................................................... 169,791,000 

Committee recommendation in the bill ............................................ 184,791,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (45,851,000) 

Fiscal year 2006 budget request ................................................ 15,000,000 

The Committee recommends an appropriation of $184,791,000 for 

Facilities Sustainment, Restoration and Modernization, Air National Guard for fiscal year 2006. This is a decrease of $45,851,000 

below the fiscal year 2005 enacted level and an increase of 

$15,000,000 above the budget request. 

35

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

RESERVE

Fiscal year 2005 appropriation .......................................................... $201,141,000 

Fiscal year 2006 budget request ....................................................... 204,370,000 

Committee recommendation in the bill ............................................ 204,370,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 3,229,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $204,370,000 for 

Facilities Sustainment, Restoration and Modernization, Army Reserve for fiscal year 2006. This is an increase of $3,229,000 above 

the fiscal year 2005 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, 

NAVAL RESERVE

Fiscal year 2005 appropriation .......................................................... $73,410,000 

Fiscal year 2006 budget request ....................................................... 62,788,000 

Committee recommendation in the bill ............................................ 67,788,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (5,622,000) 

Fiscal year 2006 budget request ................................................ 5,000,000

The Committee recommends an appropriation of $67,788,000 for 

Facilities Sustainment, Restoration and Modernization, Naval Reserve for fiscal year 2006. This is a decrease of $5,622,000 from the 

fiscal year 2005 enacted level and an increase of $5,000,000 above 

the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, 

MARINE CORPS RESERVE

Fiscal year 2005 appropriation .......................................................... $12,126,000 

Fiscal year 2006 budget request ....................................................... 10,105,000 

Committee recommendation in the bill ............................................ 10,105,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (2,021,000) 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $10,105,000 for 

Facilities Sustainment, Restoration and Modernization, Marine 

Corps Reserve for fiscal year 2006. This is a decrease of $2,021,000 

from the fiscal year 2005 enacted level and the same as the budget 

request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

FORCE RESERVE

Fiscal year 2005 appropriation .......................................................... $53,056,000 

Fiscal year 2006 budget request ....................................................... 55,764,000 

Committee recommendation in the bill ............................................ 55,764,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 2,708,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $55,764,000 for 

Facilities Sustainment, Restoration and Modernization, Air Force 

Reserve for fiscal year 2006. This is an increase of $2,708,000 

above the fiscal year 2005 enacted level and the same as the budget request. 

36

ENVIRONMENTAL RESTORATION, ARMY

Fiscal year 2005 appropriation .......................................................... $400,948,000 

Fiscal year 2006 budget request ....................................................... 407,865,000 

Committee recommendation in the bill ............................................ 407,865,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 6,917,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $407,865,000 for 

Environmental Restoration, Army for fiscal year 2006. This is an 

increase of $6,917,000 above the fiscal year 2005 enacted level and 

the same as the budget request. 

ENVIRONMENTAL RESTORATION, NAVY

Fiscal year 2005 appropriation .......................................................... $266,820,000 

Fiscal year 2006 budget request ....................................................... 305,275,000 

Committee recommendation in the bill ............................................ 305,275,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 38,455,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $305,275,000 for 

Environmental Restoration, Navy for fiscal year 2006. This is an 

increase of $38,455,000 above the fiscal year 2005 enacted level 

and the same as the budget request. 

ENVIRONMENTAL RESTORATION, AIR FORCE

Fiscal year 2005 appropriation .......................................................... $397,368,000 

Fiscal year 2006 budget request ....................................................... 406,461,000 

Committee recommendation in the bill ............................................ 406,461,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 9,093,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $406,461,000 for 

Environmental Restoration, Air Force for fiscal year 2006. This is 

an increase of $9,093,000 above the fiscal year 2005 enacted level 

and the same as the budget request. 

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

Fiscal year 2005 appropriation .......................................................... $23,684,000 

Fiscal year 2006 budget request ....................................................... 28,167,000 

Committee recommendation in the bill ............................................ 28,167,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 4,483,000 

Fiscal year 2006 budget request ................................................ ............................

The Committee recommends an appropriation of $28,167,000 for 

Environmental Restoration, Defense-wide for fiscal year 2006. This 

is an increase of $4,483,000 above the fiscal year 2005 enacted 

level and the same as the budget request. 

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

Fiscal year 2005 appropriation .......................................................... $266,516,000 

Fiscal year 2006 budget request ....................................................... 221,921,000 

Committee recommendation in the bill ............................................ 221,921,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (44,595,000) 

Fiscal year 2006 budget request ................................................ ............................

37

The Committee recommends an appropriation of $221,921,000 for 

Environmental Restoration, Formerly Used Defense Sites for fiscal 

year 2006. This is a decrease of $44,595,000 below the fiscal year 

2005 enacted level and the same as the budget request. 

DEFENSE HEALTH PROGRAM

Fiscal year 2005 appropriation ........................................................ $18,171,436,000 

Fiscal year 2006 budget request ..................................................... 19,791,612,000 

Committee recommendation in the bill .......................................... 19,983,912,000 

Comparison with: 

Fiscal year 2005 appropriation ................................................ 1,812,476,000 

Fiscal year 2006 budget request .............................................. 192,300,000 

The Committee recommends a total appropriation of $19,983,912,000 for the Defense Health Program for fiscal year 

2006. This is an increase of $1,812,476,000 above the fiscal year 

2005 enacted level, not including supplemental funding, and an increase of $192,300,000 above the budget request. 

There has been a lot of work done to improve the Defense Health 

Program (DHP) and in recent years the Department has made 

great strides toward improving the quality of DHP estimates; however, the Committee continues to be concerned about the growing 

stress on the program. In light of the growing cost of health care 

in general, the Military Health System (MHS) must provide for 

medical readiness and force health protection as its primary goal. 

The DHP appropriation provides for worldwide medical and dental services to active forces and other eligible beneficiaries, veterinary services, medical command headquarters, specialized services 

for the training of medical personnel, and occupational and industrial health care. The budget request for normal peacetime funding 

sustains the MHS to ensure the nation has available at all times 

a healthy force supported by a combat ready health care system 

and to provide a cost effective, quality healthcare. The program 

provides medical care for 9.1 million beneficiaries through a worldwide network of over 500 military hospitals and health clinics, and 

the Department of Defense’s extensive private sector health care 

partners. 

The budget request supports increasing benefits provided to the 

Active Duty and Reserve Components and their dependents, as 

well as retirees. The Committee is aware that DHP faces many financial challenges. This year is no different. More and more demands are being placed on the system through the increased number of beneficiaries using TRICARE, increased beneficiary demand, 

health care inflation, and military transformation. The largest 

growth in the fiscal year 2006 budget request is in the operation 

and maintenance budget activity group for the program with an 

overall increase of $1.9 billion. This growth is in the principle element of the Department’s health care costs in the Private Sector 

Care budget activity group which pays health care costs to the civilian providers. 

The Committee, however, has concerns with the amount of overand under-executed dollars in the seven operation and maintenance budget activity groups and the unobligated dollars that are 

annually turned back to the Treasury. The Committee believes that 

the MHS should be fully funded, with each budget activity group 

properly executing the amounts budgeted. The Committee expects 

38

the Department to be fiscally responsible in its budgeting of the 

Defense Health Program and make annual adjustments to budget 

activity groups based on prior year execution. 

The Committee is pleased that the TRICARE contract transformation efforts and the cooperation by the various Military Treatment Facilities and private sector health care entities has not disrupted beneficiary health care. The Next Generation TRICARE 

contracts (TNEX) include incentives for efficient health care delivery that maximizes the In-House (or Direct) Care System utilization. The ongoing implementation of the Prospective Payment System that uses performance based budgeting focusing on the value 

of outputs rather than that of the cost of inputs for the health care 

services provided links the budgets and productivity together. The 

Committee is also encouraged by the Department’s ongoing business practice improvements by empowering the Military Treatment 

Facility (MTF) Commanders with the authority and responsibility 

for the PRIME enrollee care provided both at the MTF and in the 

private sector. 

The Committee continues to expect the Department to provide 

ongoing outreach programs regarding the full array of TRICARE 

programs to all categories of beneficiaries, beneficiary representative groups and health care providers. 

The Composite Health Care System, the military electronic medical record, is robustly funded in the fiscal year 2006 budget request. The Committee is hopeful that this funding increase will enhance the continuation of streamlining financial operations, improve business practices and most importantly, improve customer 

service. The electronic medical record ensures continuity of health 

information and patient-centered health care delivery. 

Reprogramming Procedures.—The Committee remains concerned 

with the transfer of funds from Direct (or In-house) Care to pay for 

contractor-provided medical care. To continue oversight within the 

operation and maintenance account, the Committee includes language in the bill similar to last year to limit the funds available 

for Private Sector Care under the TRICARE program and make 

transfers above this limit subject to prior approval reprogramming 

procedures. This language should not be interpreted by the Department as limiting the amount of funds that may be transferred to 

the direct care system from other budget activities within the Defense Health Program. In addition, the Committee directs the Department to provide budget execution data for all the DHP accounts on a quarterly basis through the DD–COMP(M) 1002 accounting form. 

Special Items of Interest.—Programs or activities for which additional funds have been provided above the budget request are to be 

considered as congressional interest items for the purpose of the 

Base for Reprogramming Form (DD 1414). Therefore, each of these 

items must be submitted to the Committee on the DD 1414 at the 

stated amount. These items remain special interest items whether 

or not they are repeated in a subsequent conference report. 

Health Care Benefits for Reservists and Their Families.—Since 

September 2001, more than 340,000 National Guard and Reserve 

personnel have been called to active duty and have served for a 

year or more. It is clear their use in military operations is expected 

to remain high for the foreseeable future. Congress has made many 

39

improvements and enhancements to compensation and benefits 

programs for the reservists. Additional changes are being proposed, 

including a proposal to expand TRICARE to all reservists and their 

families when the member is not on active duty. The Department 

estimates the cost to implement the current proposal would be $7.7 

billion over the next five years. Therefore, the Committee directs 

the Department to report back no later than March 1, 2006 on the 

need and ramifications of additional health care for reservists and 

their families. The report should include, but not be limited to the 

total estimated costs—delineated among the Budget Activity 

Groups in the Defense Health Program; long-term costs and implications of the proposal; a demographic trend and rising health care 

costs comparison on how current benefits compare to national 

healthcare 

TRICARE Reimbursement Rates for Physicians.—The establishment of the Military Quality of Life and Veterans Affairs subcommittee provides the Committee with opportunities to look at 

areas of concern that it may not otherwise have had the opportunity to review. The Committee directs the Assistant Secretary of 

Defense for Health Affairs to report on the process for establishing 

reimbursement rates and the adequacy of current reimbursement 

rates for physicians in all three TRICARE Regions by March 1, 

2006. 

Prevention and Treatment of Noise-Induced Hearing Loss.—

Noise-induced hearing loss is one of the most common injuries associated with military service that has an affect on medical readiness and combat effectiveness. The Committee understands that as 

a result of ongoing combat operations, one in three post-deploying 

soldiers report acute acoustic trauma and one in four report hearing loss and/or hearing complaints. While the Department has instituted hearing conservation initiatives for over 30 years, the 

Committee feels that efforts and effectiveness of these measures 

could be improved. Therefore, the Committee recommends the Department enhance its hearing conservation programs by ensuring 

that properly trained personnel are available to provide and manage effective and robust hearing conservation programs and to develop and test protective devices that address combat-associated 

noise. 

OPERATION AND MAINTENANCE

Fiscal year 2005 appropriation ........................................................ $17,297,419,000

Fiscal year 2006 budget request ..................................................... 19,247,137,000 

Committee recommendation in the bill .......................................... 19,184,537,000 

Comparison with: 

Fiscal year 2005 appropriation ................................................ 1,887,118,000 

Fiscal year 2006 budget request .............................................. (62,600,000) 

The Committee recommends an appropriation of $19,184,537,000 

for operation and maintenance for fiscal year 2006. This is an increase of $1,887,118,000 above the fiscal year 2005 enacted level, 

not including supplemental funding, and a decrease of $62,600,000 

below the budget request. The Committee’s recommendations are 

as follows:

40

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS 

[In thousands of dollars] 

Budget request Committee recommended 

Operation and Maintenance .................................................................................................... 19,247,137 19,184,537

In-House Care ......................................................................................................................... 5,210,340 5,141,740

Interactive Internet @ WRAMC ...................................................................................... ........................ 2,000

Walter Reed Amputee Care Center ................................................................................ ........................ 5,500

Unobligated Balances (No-year $: Army $9.8m, Navy $8.7m, TMA $2m & AF $5.6m) ........................ (26,100) 

Pharmacy Reduction (CONUS) ....................................................................................... ........................ (50,000) 

Private Sector Care ................................................................................................................. 10,212,427 10,212,427

Consolidated Health Care Support ......................................................................................... 1,162,589 1,162,589

Information Management ........................................................................................................ 841,554 847,554

Maternal Fetal Informatics and Outreach Program ...................................................... ........................ 1,000 

Medical Data Conversion at WRAMC ............................................................................. ........................ 1,000

Trauma Registry and Research Database ..................................................................... ........................ 4,000 

Management Activities ............................................................................................................ 229,382 229,382 

Education and Training .......................................................................................................... 443,462 443,462

Base Operations/Communications .......................................................................................... 1,147,383 1,147,383

Pharmacy Reduction in Direct Care.—The current execution rate 

for pharmaceuticals, In-House Care (CONUS) is 10.1 percent. The 

increase in the budget request for pharmaceuticals, In-House Care 

(CONUS) is based on a 13 percent execution rate. The justification 

for this increase is lacking, therefore the Committee reduces the 

amount provided for In-House Care (CONUS) pharmaceuticals by 

$50,000,000. The Committee notes the National execution rate for 

pharmaceuticals is 7.8 percent. The Committee expects the Department to take the necessary steps to reduce its execution rate to be 

more inline with the national rate. 

Unobligated Balances.—The Committee has adjusted the 

amounts available for operation and maintenance in fiscal year 

2006 to account for no-year funding left unobligated at the end of 

prior fiscal years and the effect of such under-obligations on estimated future requirements. 

TRlCARE Mail Order Pharmacy.—The Committee believes the 

TRICARE Mail Order Pharmacy (TMOP) is an economical option 

for long-term prescription drug needs. The Committee, however, is 

concerned that beneficiary use of this program remains stagnant 

with only an increase of 20 percent in new users for 2005–2006. 

The Committee directs the Department of Defense to educate the 

TRICARE beneficiary population on the benefits and the value of 

this program and report back on their findings no later than March 

1, 2006. 

Private Sector Care.—During the fiscal year 2006 budget briefs 

the documentation presented to the Committee was wrought with 

errors making it extremely difficult to follow specifics regarding the 

total program requirement. Therefore, the Committee directs the 

Department to notify the Committee on the movement of dollars 

within the private sector care budget activity group on a quarterly 

basis beginning in the first quarter of fiscal year 2006. 

TRlCARE Enterprise-Wide Referral and Authorization Process.— The Committee is concerned that the current referral management 

process is extremely complex, and at times can be unresponsive 

and burdensome to the patient, providers, and healthcare administrators in both the direct and purchased care systems. The result 

has been growing patient dissatisfaction with access to care and inVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00040 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
41

creased administrative workload. The Committee understands that 

the Services’ Deputy Surgeons General identified the need for a 

streamlined referral management process to facilitate clinical and 

administrative communication across the enterprise. As such, the 

Committee directs the Secretary of Defense to report back to the 

Committee with an update on the TRICARE Enterprise-Wide Referral and Authorization Process, as recommended by the Services’ Deputy Surgeons General by March 1, 2006. 

Medical Readiness of Reserve Components.—The Committee is 

concerned about the medical readiness of our Reserve Components. 

At the height of the medical hold over (MHO), the majority of soldiers in MHO status were reservists who were not medically ready 

to serve, many due to poor dental hygiene. Reserve Components 

are required to be medically and physically fit, yet at the same 

time there is not an emphasis on dental readiness. The Committee 

directs the Department to do a study on incorporating dental examinations into the routine reserve medical readiness examinations on an annual basis. The report should include, but not be limited to cost estimates, services requirements to incorporate dental 

examinations into medical readiness, availability of physicians and 

dentists to handle the increase in workload in the reservists home 

station and a feasible date in which dental exams will be incorporated. The report should be submitted no later than March 1, 

2006. 

Smoking Cessation.—The Committee commends the Department 

on initiatives that help soldiers and their families make healthier 

decisions especially in the area of tobacco use and encourages the 

Department to continue this work. Currently, TRICARE does not 

cover the cost of smoking cessation products, even though smoking 

cessation programs are available at Military Treatment Facilities. 

The Committee is aware of the ‘‘Healthy Choices for Life’’ demonstration program that will be offered to those individuals who 

are enrolled in TRICARE Prime. This program will cover the costs 

of medications if needed during participation in this program. The 

Committee directs the Department to report back on the successes 

and lessons learned from this initiative including an analysis of the 

costs associated with covering the medications needed for all 

TRICARE beneficiaries no later than March 1, 2006.

Great Lakes—VA/DOD Health Care Resource Sharing.—The 

Committee is pleased that the Department of the Navy and the Department of Veterans Affairs recently finalized their agreement to 

construct and operate a joint federal health care center in North 

Chicago, Illinois. This unique arrangement will allow our military 

community and veterans to enjoy the expertise and combined services of naval and VA medical professionals in a brand new, stateof-the-art facility. The Committee directs the Department of the 

Navy and the Department of Veterans Affairs to complete the work 

on governance of the joint institution by March 1, 2006. The Committee also directs the Navy to report on the architecture of the 

new joint hospital by October 31, 2005. 

Walter Reed Army Medical Center Amputee Patient Care Center.—At the request of the Department, the Committee approved a 

military construction reprogramming request to construct the Amputee Patient Care Center at Walter Reed and provided initial operating costs through DHP to get the Center going with the underVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
42

standing that the Center’s full operating costs would be built into 

the fiscal year 2006 budget. The Committee commends the Army 

and those associated with this vital effort; however, the Committee 

is extremely disappointed that no operating funds are included in 

the budget request. The Committee is further frustrated to learn 

that the Amputee Center did not make the POM 07–12 process for 

the fiscal year 2007 budget as well. 

The Center provides state-of-the-art treatment and rehabilitation 

of military amputee patients during the surge in combat injuries 

involving amputations of major limbs. When the Global War on 

Terrorism ends, this vital program will continue to serve and assist 

amputees and their families throughout their lives and requires 

proper annual budgeting that goes beyond the guidelines for Global 

War on Terrorism funding requirements. The Committee provides 

$5,500,000 above the budget request for operating costs associated 

with the center, including but not limited to personnel, equipment, 

patient travel and prosthetic device costs and directs the Secretary 

of Defense and the Surgeon General of the Army to secure full 

funding for all costs associated with this invaluable center in fiscal 

year 2007 and beyond. The Department should not rely on Congress to fund the annual operating cost of this Center. 

Interactive Internet at Walter Reed Army Medical Center.—The 

Committee provides $2,000,000 above the budget request to the 

Army to provide interactive internet at Walter Reed Army Medical 

Center to approximately 265 rooms in the in-patient wards, including the ICU. This will enable the soldiers to communicate with 

their families and have access to the various soldier support services. 

Department of Defense Trauma Registry and Research Database.—The Committee provides an additional $4,000,000 for the 

DOD Trauma Registry and Research Database. The project will be 

conducted through the Army Institute of Surgical Research to enhance the Army’s ability to track wounded soldiers and target research initiatives that would enhance medical care for the soldier. 

PROCUREMENT

Fiscal year 2005 appropriation ........................................................ $367,035,000

Fiscal year 2006 budget request ..................................................... 375,319,000

Committee recommendation in the bill .......................................... 355,119,000

Comparison with: 

Fiscal year 2005 appropriation ................................................ (11,916,000) 

Fiscal year 2006 budget request .............................................. (20,200,000) 

The Committee recommends an appropriation of $355,119,000 for 

procurement for fiscal year 2006. This is a decrease of $11,916,000 

below the fiscal year 2005 enacted level, not including supplemental funding, and a decrease of $20,200,000 below the budget request. The Committee’s recommendation is as follows:

43

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS 

[In thousands of dollars] 

Budget request Committee recommended 

Procurement ............................................................................................................................ 375,319 355,119

Protected Health Information Initiative ......................................................................... ........................ 3,000

Unobligated Balances (03–05) ...................................................................................... ........................ (23,200) 

Unobligated Balances.—The Committee has adjusted the 

amounts available for procurement in fiscal year 2006 to account 

for funding left unobligated at the end of prior fiscal years and the 

effect of such under-obligations on estimated future requirements. 

RESEARCH AND DEVELOPMENT

Fiscal year 2005 appropriation ........................................................ $506,982,000

Fiscal year 2006 budget request ..................................................... 169,156,000

Committee recommendation in the bill .......................................... 444,256,000

Comparison with: 

Fiscal year 2005 appropriation ................................................ (62,726,000) 

Fiscal year 2006 budget request .............................................. 275,100,000

The Committee recommends an appropriation of $444,256,000 for 

research and development for fiscal year 2006. This is a decrease 

of $62,726,000 below the fiscal year 2005 enacted level, not including supplemental funding, and an increase of $275,100,000 above 

the budget request. The Committee’s recommendation is as follows:

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS 

[In thousands of dollars] 

Budget request Committee recommended 

Research, Development, Test and Evaluation ........................................................................ 169,156 444,256

Air Force Surgeon General Server Consolidation Initiative ........................................... ........................ 3,500

Amyotrophic Lateral Sclerosis (ALS) .............................................................................. ........................ 3,000

Bethesda Hospitals Emergency Preparedness Partnership ........................................... ........................ 5,000

Bio-Molecular Material Composites Research Program ................................................ ........................ 1,000

Chronic Epilepsy in Severe Head Injuries ..................................................................... ........................ 1,500

Computer Assisted Medical Diagnostics ....................................................................... ........................ 1,500

Copper Antimicrobial Research Program ....................................................................... ........................ 2,000

Directed Mission Upgrades of the Defense Medical Logistics Standard Support System (DMLSS) .............................................................................................................. ........................ 5,000

Downed Pilot Forward Osmosis Water Filtration System .............................................. ........................ 4,100

Early Diagnosis, Treatment and Care of Cancer Patients ............................................ ........................ 2,500

Global HIV/AIDS Prevention Program ............................................................................. ........................ 7,500

Healthcare Informatics Testbed ..................................................................................... ........................ 2,500

Leukemia Research (CMLRP) ......................................................................................... ........................ 5,000

Metabolic Defense Research Program ........................................................................... ........................ 2,500

Microencapsulation and Vaccine Delivery Research ..................................................... ........................ 3,000

Muscle Research Consortium ........................................................................................ ........................ 3,500

Peer Reviewed Breast Cancer Program ......................................................................... ........................ 115,000

Peer Reviewed Prostate Cancer Program ...................................................................... ........................ 80,000

Peer Reviewed Ovarian Cancer Program ....................................................................... ........................ 15,000

Periscopic Surgery Research .......................................................................................... ........................ 2,500

Stress Disorders Research Initiative @ Ft. Hood .......................................................... ........................ 3,000

Tuberous Sclerosis Complex (TSC) ................................................................................ ........................ 5,000

United States Military Cancer Care Institute @ WRAMC ............................................. ........................ 2,500

Unobligated Balances (04–05) ...................................................................................... ........................ (2,100) 

Unobligated Balances-TMA (04–05) .............................................................................. ........................ (5,900) 

USAF Environmental and Occupational Factors in Women’s Health Program ............. ........................ 2,000

USAF Military Burn Victim Treatment and Care ........................................................... ........................ 2,000

44

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS—Continued

[In thousands of dollars] 

Budget request Committee recommended 

Water-Related Viral Disease Countermeasures for the Air Force ................................. ........................ 3,000

Unobligated Balances.—The Committee has adjusted the 

amounts available for research and development in fiscal year 2006 

to account for funding left unobligated at the end of prior fiscal 

years and the effect of such under-obligations on estimated future 

requirements. 

Peer Reviewed Cancer Research.—The Committee has provided $210,000,000 for Peer Reviewed Cancer Research. These additional 

dollars are complementary to research funding that is currently 

provided by the National Institutes of Health (NIH) for cancer research. In fiscal year 2006 breast, ovarian, and prostate cancer research will receive $1,210,000,000 from the NIH. 

Directed Mission Upgrades of the Defense Medical Logistics 

Standard Support System (DMLSS).—The Department has mandated that its suppliers use Radio Frequency Identification (RFID) 

on all pallets and cases in the supply chain by 2008. For this to 

happen, RFID technology must be integrated into the Defense Medical Logistics Standard Support System (DMLSS) by January 1, 

2007. The Committee is concerned that the Office of the Secretary 

of Defense (OSD) mandated this policy initiative while at the same 

time allowing the TRICARE Management Activity to cut the budget for this program in fiscal year 2006. The budget request reduces 

the DMLSS development budget for new capabilities to the current 

application and defers development for this mandate to fiscal year 

2009, completing development in fiscal year 2010 and deployment 

in fiscal year 2011, three years beyond the established OSD mandate. The Committee has provided $5,000,000 to prevent this program from slipping further and directs the Department to fully 

fund this initiative in the fiscal year 2007 budget and beyond to 

reach the Department’s own established goal of January 1, 2007 for 

DMLSS and 2008 for the supply chain. 

Air Force Surgeon General Server Consolidation Initiative.—The 

Composite Occupational Health and Operational Risk Tracking 

(COHORT) system addresses the Air Force Surgeon General’s need 

by providing real-time surveillance of the medical care and treatment of specified groups of military personnel across multiple medical health facilities throughout the world. However, the Committee 

is concerned that the Air Force Surgeon General does not have a 

viable integrated medical surveillance system to adequately execute the mission. Therefore, the Committee provides $3,500,000 for 

the Air Force Surgeon General’s Server Consolidation Initiative to 

begin to deploy basic infrastructure to Military Treatment Facilities to enable better medical care in a more efficient manner and 

alleviate the need to query multiple databases to retrieve patient 

information. 

Water-Related Viral Disease Countermeasures.—The Committee 

provides $3,000,000 for Water-Related Viral Disease Countermeasures for the U.S. Air Force. The Committee believes that this 

vital research will enable the Air Force to protect its warfighters 

using therapeutics and vaccines. 

45

Copper Antimicrobial Research Program.—The Committee pro- vides $2,000,000 for a Copper Antimicrobial Research program to 

validate the effectiveness of copper in deactivating dangerous microbes to reduce the incidence of infection in medical facilities. 

U.S. Air Force Military Burn Treatment.—The Committee pro- vides $2,000,000 to the U.S. Air Force Surgeon General to enhance 

efforts at the mid-Atlantic specialized burn victim treatment center. 

Microencapsulation and Vaccine Delivery Research.—The Committee provides an additional $3,000,000 for research into one-time 

delivery of vaccines, drugs and antidotes to be used during deployment or training, when necessary. 

Bethesda Hospitals Emergency Preparedness Partnership 

(BHEPP).—The Committee provides an additional $5,000,000 for 

the BHEPP to enhance an emergency preparedness partnership between National Naval Medical Center, the Clinical Center at the 

national Institutes of Health and Suburban Hospital Healthcare 

System in order to use their complementary strengths to provide 

emergency preparedness that is beneficial to the National Capital 

Region.

ADMINISTRATIVE PROVISIONS

The Administration proposed eliminating several administrative 

provisions enacted as general provisions in the Military Construction Appropriations and Emergency Hurricane Supplemental Appropriations Act, 2005 (P.L. 108–324), including sections 111, 113, 

118, 121, 122, 126, 127, 128, 130, and 131. 

The Administration proposed eliminating two general provisions 

enacted as general provisions in the Department of Defense Appropriations Act, 2005 (P.L. 108–287), including sections 8018 and 

8070. 

The Administration proposed two new administrative provisions. 

The first one allows for the transfer of expired funds to the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. The 

second one amends section 8070 of the Department of Defense Appropriations Act, 2005 to allow the obligation of administrative 

costs for all military construction funded through operation and 

maintenance accounts. Administrative Provisions included in the 

bill are as follows: 

Section 101 limits DOD from spending funds appropriated in this 

title for payments under a cost-plus-a-fixed-fee contract for construction where cost estimates exceed $25,000. An exception for 

Alaska is provided. 

Section 102 permits 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. 

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. 

46

Section 108 prohibits the procurement of steel unless American 

producers, fabricators, and manufacturers have been allowed to 

compete. 

Section 109 limits appropriations from being used 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 the Arabian Gulf. 

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 the Arabian Gulf, 

except bids by Marshallese contractors for military construction on 

Kwajalein Atoll. 

Section 113 requires the Secretary of Defense to give prior notice 

to Congress of military exercises where construction costs exceed 

$100,000. 

Section 114 limits obligations to no more than 20 percent during 

the last two months of the fiscal year. 

Section 115 permits DOD to make available funds appropriated 

in prior years for new projects authorized during the current session of Congress. 

Section 116 permits 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 the NATO, Japan, Korea, and United States allies in the Arabian Gulf to assume a greater share of defense costs. 

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

Section 120 permits the transfer of funds from Family Housing, 

Construction accounts to the DOD Family Housing Improvement 

Fund. 

Section 121 limits the obligation of funds for Partnership for 

Peace Programs. 

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. 

Section 123 provides transfer authority to the Homeowners Assistance Program. 

Section 124 requires that appropriations from 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. 

Section 125 prohibits funds appropriated for the NATO Security 

Investment Program from being obligated or expended for the purpose of missile defense studies. 

47

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. 

Section 127 makes funds in the Ford Island Improvement Fund 

available until expended.

Section 128 allows the transfer of expired funds to the ‘‘Foreign 

Currency Fluctuations, Construction, Defense’’ account. 

Section 129 prohibits the reimbursement of any health care provider for inpatient mental health service for care received when a 

patient is referred to a provider of inpatient mental health care or 

residential treatment care by a medical or health care professional 

having an economic interest in the facility to which the patient is 

referred.

Section 130 allows the distribution of surplus medical and dental 

equipment, at no cost to DOD, to Indian Health Service facilities 

and to federally qualified health centers. 

Section 131 prohibits the Secretary of Defense from spending 

funds provided for projects at installations identified for closure or 

realignment in BRAC 2005 without Congressional consent. 

Section 132 prohibits the use of funds for the operation, maintenance and repair of general and flag officers quarters in the National Capital Region until the Department of Defense submits a 

report required by law.

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS

Fiscal year 2005 appropriation .............................................. 1 $65,838,832,000

Fiscal year 2006 budget request ........................................... 67,477,300,000

Committee recommendation in the bill ................................ 68,112,300,000

Comparison with: 

Fiscal year 2005 appropriation ...................................... 2,273,468,000

Fiscal year 2006 budget request .................................... 635,000,000 1 Includes impact of 0.8% rescission totaling $246,828,040 pursuant to Public law 108–447 and additional 

funding of $124,070,000 pursuant to Public Law 108–324, the Military Construction Appropriation and Emergency Hurricane Supplemental Appropriations Act, 2005. 

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 218,077. It administers benefits for more than 

24,800,000 veterans, and 38,363,200 family members of living veterans and survivors of deceased veterans. Thus, close to 63,000,000 

people, comprising about 21 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 $68,112,300,000 in new 

budget authority for programs in fiscal year 2006. This is an increase of $2,273,468,000 above the fiscal year 2005 enacted level 

and an increase of $635,000,000 above the budget request. 

The funds recommended provide compensation payments to 

3,023,329 veterans and survivors of deceased veterans with serviceconnected disabilities; pension payment to 532,414 non-service-connected disabled veterans, widows and children in need of financial 

assistance; education training, tuition assistance, and vocational 

assistance to 575,421 veterans, servicepersons, and reservists, and 

80,094 eligible dependents of deceased veterans or seriously disVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00047 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
48

abled veterans; housing credit assistance in the form of 300,000 

guaranteed loans to veterans and servicepersons; administration or 

supervision of life insurance programs with 7,385,456 policies for 

veterans and active duty servicepersons providing coverage of 

$756,138,000,000; inpatient care and treatment of beneficiaries in 

157 hospitals, 42 VA domiciliary residential rehabilitation treatment programs (formerly called ‘‘domiciliaries’’), 134 nursing 

homes, and 944 outpatient clinics which includes independent, satellite, community-based, and rural outreach clinics involving 

61,555,000 visits; and administration of the National Cemetery Administration for burial of eligible veterans, servicepersons and their 

survivors. 

The VA submitted the 2006 budget request in an alternative appropriations structure for the year. The Committee once again rejects this new structure because it does not address the needs of 

the Congress in its role of reviewing and allocating federal budgetary resources. The Committee directs the Secretary to submit the 

fiscal year 2007 budget justifications based on the fiscal year 2006 

appropriation structure.

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2005 appropriation .......................................................... $32,607,688,000

Fiscal year 2006 budget request ....................................................... 33,412,879,000

Committee recommendation in the bill ............................................ 33,412,879,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 805,191,000

Fiscal year 2006 budget request ................................................ ............................

This appropriation provides funds for service-connected compensation payments to an estimated 3,023,329 beneficiaries and 

pension payments to another 532,413 beneficiaries with non-service-connected disabilities. The average cost per compensation case 

in 2006 is estimated at $10,081, and pension payments are projected at a unit cost of $6,475. 

The Committee recommends an appropriation of $33,412,879,000 

for compensation, pension and burial benefits for fiscal year 2006. 

This is an increase of $805,191,000 above the fiscal year 2005 enacted level and the same as the budget request. 

The appropriation includes funding not to exceed $23,491,000 in 

payments to the general operating expenses account of which 

$9,740,000 is for the medical administration account and 

$13,751,000 is for 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 savings provisions include verifying pension income against Internal Revenue 

Service and Social Security Administration (SSA) data; establishing 

a match with the SSA to obtain verification of Social Security numbers; and the $90 monthly VA pension cap for Medicaid-eligible single veterans and surviving spouses alone in Medicaid-covered nursing homes. The bill includes requested language permitting this appropriation to reimburse such sums as may be earned to the medVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
49

ical care collections fund to help defray the operating expenses of 

individual medical facilities for nursing home care provided to pensioners. 

The Administration has proposed to provide a cost-of-living adjustment, based on the change in the Consumer Price Index, to all 

compensation beneficiaries, including dependency and indemnity 

compensation for spouses and children. It is currently estimated at 

2.3 percent. This is the same as the COLA that will be provided, 

under current law, to veterans pension and Social Security recipients. The increase, effective December 1, 2005, has an estimated 

cost of $478,294,000 during fiscal year 2006 and is reflected in the 

Compensation and Pensions budget request, pending authorization 

approval. 

The Administration has proposed language that would provide 

indefinite 2006 supplemental appropriations for compensation and 

pension payments. The Committee believes current procedures are 

adequate and has not included the requested language in the bill.

READJUSTMENT BENEFITS

Fiscal year 2005 appropriation .......................................................... $2,556,232,000

Fiscal year 2006 budget request ....................................................... 3,214,246,000

Committee recommendation in the bill ............................................ 3,214,246,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 658,014,000

Fiscal year 2006 budget request ................................................ ............................

This appropriation finances the education and training of veterans and servicepersons 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 Departments of Defense and 

Homeland Security. In addition, certain disabled veterans are provided with vocational rehabilitation, 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 servicepersons who were captured 

or missing-in-action. The Committee recommends an appropriation of $3,214,246,000 

for readjustment benefits in fiscal year 2006. This is an increase 

of $658,014,000 above the fiscal year 2005 enacted level and the 

same as the budget request. The increase is primarily due to expanded benefits for Reserve personnel ordered to active service and 

changes in the Montgomery GI Bill education program. The fiscal 

year 2005 funding cited does not reflect a transfer from Compensation and Pensions to Readjustment Benefits necessary to execute 

program changes enacted for fiscal year 2005, which would have 

the effect of lowering this year-to-year increase by about 

$185,000,000. 

Task Force on VRE Benefits.—The Committee is aware that the 

Department’s Task Force on the Vocational Rehabilitation and EmVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
50

ployment benefits program made extensive recommendations for 

changes that have not yet been fully implemented. The Committee 

believes this area of Veterans Benefits deserves focused attention 

and directs the Department to report to the Committee by July 1, 

2005 on its efforts to implement the Task Force recommendations. 

The Committee will use this information as we move forward with 

this bill to ensure that the proper resources are put into the program to ensure its success. 

VETERANS INSURANCE AND INDEMNITIES

Fiscal year 2005 appropriation .......................................................... $44,380,000

Fiscal year 2006 budget request ....................................................... 45,907,000

Committee recommendation in the bill ............................................ 45,907,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,527,000

Fiscal year 2006 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 $45,907,000 for 

veterans insurance and indemnities in fiscal year 2006. This is an 

increase of $1,527,000 above the fiscal year 2005 enacted level and 

the same as the budget request. The amount provided will enable 

VA to transfer funding to the service-disabled veterans insurance 

fund and transfer additional amounts for payments for the 2,470 

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. 

The Administration has proposed language that would provide 

indefinite 2006 supplemental appropriations for the insurance program. The Committee believes current procedures are adequate 

and has not included the requested language in the bill. 

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 2005 appropriation .................................................................. 1 $43,784,000 $500,000 $152,842,000

Fiscal year 2006 budget request ............................................................... 64,586,000 500,000 153,575,000

Committee recommendation in the bill ...................................................... 64,586,000 500,000 153,575,000

Comparison with: 

Fiscal year 2005 appropriation ......................................................... (20,802,000) ........................ 733,000

Fiscal year 2006 budget request ...................................................... ........................ ........................ ........................

1 Reflects subsidy estimate from last year’s report. The new estimate for 2005 is $1,900,392. 

The purpose of the VA 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 

loan program, of the Department’s direct and guaranteed loans proVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00050 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
51

grams. 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. VA loan guaranties are 

made to service members, 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 $64,586,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially 

adapted housing loans, and $153,575,000 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 

expenses 

Fiscal year 2005 appropriation .............................................................................. $47,000 $4,108,000 $309,000

Fiscal year 2006 budget request ........................................................................... 53,000 4,242,000 305,000

Committee recommendation in the bill .................................................................. 53,000 4,242,000 305,000

Comparison with: 

Fiscal year 2005 appropriation ..................................................................... 6,000 134,000 (4,000) 

Fiscal year 2006 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 $948.54 (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 

to be funded through a program account. 

The Committee recommends the budget requests of $53,000 for 

funding subsidy program costs and $305,000 for administrative expenses. The administrative expenses may be transferred to and 

merged with the General Operating Expenses account. 

In addition, the Committee includes language limiting program 

direct loans to $4,242,000, the same as the budget request. It is esVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
52

timated that VA will make 4,634 loans in fiscal year 2006, with an 

average amount of $926. 

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Administrative expenses:.

Fiscal year 2005 appropriations ................................................. $566,000

Fiscal year 2006 budget recommendation ................................. 580,000

Committee recommendation in the bill ............................................ 580,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 14,000

Fiscal year 2006 budget request ................................................ ............................

This program tests the feasibility of authorizing VA to make direct home loans to Native American veterans who live on U.S. trust 

land. This is a pilot program which began in 1993 and expires on 

December 31, 2008. The Committee recommends the budget request of $580,000 for administration expenses, which may be transferred to and merged with the General Operating Expenses account. 

GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS

VETERANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Public Law 105–368, the Veterans Programs 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 2006. Bill language is included allowing the use of funds in Medical Administration and General Operating Expenses to administer this program 

up to a total of $750,000.

VETERANS HEALTH ADMINISTRATION

The VA operates the largest Federal medical care delivery system in the country, with 157 hospitals, 42 VA domiciliary residential rehabilitation treatment programs (formerly called ‘‘domiciliaries’’), 134 nursing homes, and 944 outpatient clinics which includes independent, satellite, community-based, and rural outreach 

clinics. 

In 2004, Congress agreed to fund Veterans Health Administration (VHA) through a new account structure comprised of four accounts: medical services, medical administration, medical facilities, 

and medical and prosthetic research. This action was taken to provide better oversight and receive a more accurate accounting of 

funds. This four account structure will continue in 2006. Under 

this structure, the Administration has requested total resources of 

$28,203,684,000 in direct appropriations and $2,170,000,000 in 

Medical Care Collections Fund appropriations, to fund the various 

operating programs of the VHA. The budget request assumes a 

number of Presidential policy changes that as of this time have not 

been adopted by the Congress. The Committee recommendation of 

$28,820,684,000 in direct appropriations and $2,170,000,000 in 

Medical Care Collections appropriations does not prejudge action 

on these policy proposals. 

53

MEDICAL SERVICES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2005 appropriation .......................................................... $19,355,278,000

Fiscal year 2006 budget request ....................................................... 19,995,141,000

Committee recommedation in the bill .............................................. 20,995,141,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,639,863,000

Fiscal year 2006 budget request ................................................ 1,000,000,000

This Medical Services appropriation provides for medical services 

of eligible veterans and beneficiaries in VA 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 $20,995,141,000 for Medical Services. This is an increase of $1,000,000,000 above 

the budget request and an increase of $1,639,863,000 above the fiscal year 2005 enacted level. The Committee does not agree with the 

budget proposal to restrict payments to State Homes for long-term 

care and directs the Secretary to work with the National Association of State Veterans Homes and other stakeholders to develop 

and implement solutions that will give our veterans the best options for quality long-term care at the most reasonable cost to the 

taxpayer. The funding provided is sufficient to continue the policy 

regarding State Homes that was in effect prior to submission of the 

budget request.

Within the amount provided in the Medical Services appropria- tion, not less that $2,200,000,000 is designated for specialty mental 

health care. During the budget hearing earlier this year, the Department’s Undersecretary for Health Administration testified that 

the budget supported this level of funding. The Undersecretary further testified that although there is a statutory definition for mental illness, the breadth of mental health care services will approach 

$3,000,000,000 and the entirety of health care supporting veterans 

with mental illness will approach $10,000,000,000. The Committee 

has taken the unusual action of fencing a portion of medical services funding for one category of treatment because the Committee 

recognizes the need to dedicate resources to such treatment and 

wishes to be assured that funding for mental health care will not 

be siphoned off for other purposes during the year of execution. 

The bill includes requested language in the Compensation and Pension appropriation transferring $13,751,000 for administrative 

expenses of implementing cost saving provisions required by the 

Omnibus Budget Reconciliation Act of 1990, and the Veterans’ Benefits Act of 1992. 

The Committee has included bill language to allow the Secretary 

to transfer funds between the Medical Services appropriation, Medical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations. This authority is to be used solely for the purpose of perfecting the accounts as the three-account structure is implemented. 

The Committee has included bill language to make available through September 30, 2007, up to $1,100,000,000 of the Medical 

54

Services appropriation. This provides flexibility to the Department 

as it continues to implement significant program changes. 

The bill also includes requested language for the DoD/VA Health 

Care Sharing Incentive Fund, as authorized by section 721 of the 

Fiscal Year 2003 National Defense Authorization Act, Public Law 

107–314, to transfer a minimum of $15,000,000, to remain available until expended, for any purpose authorized by 38 U.S.C. 8111.

Integrated Information Technology.—The Committee is aware 

that the VA has entered into a Cooperative Research and Development Agreement (CRADA) to develop technologies that would integrate information from peripheral medical devices into a centralized monitoring system. It is understood that if successful, this 

technology could reduce medical errors and improve the quality of 

health care. The Committee directs the VA to report back on the 

results of the CRADA and expects the Department of Veterans Affairs to dedicate the resources necessary to complete the CRADA 

full trial. 

Multiple Sclerosis.—The Committee is aware that the Department’s process for allocating health care funding is based upon categories of care, including basic care and complex care. While in 

most cases the Department would classify Multiple Sclerosis patients as needing only basic care, in fact, even in its earliest phase 

this condition requires intensive treatment and therapy. With this 

in mind, the Committee urges the Department to review and provide a report to the Committee on changing the status of MS patients to that of complex care to ensure that each VISN and hospital gets the resources it needs to provide comprehensive care for 

these patients. 

Distance Learning.—The Committee recognizes the need for 

VAMC health professionals to master complex technologies and to 

build and maintain those skills. The Committee supports an initiative to demonstrate the potential effectiveness of a two-way 

broadband web-based tele-training system for medical training between the VAMC in Syracuse and the Upstate Medical University 

of the State University of New York. 

Assistive Devices Technology.—Given the large number of wounded soldiers returning from Iraq and Afghanistan, our aging population, and the increase in people suffering from diabetes, assistive 

devices that do not cause additional harm to the patients they are 

designed to help are needed. Therefore, the Committee urges the 

Department of Veterans Affairs to institute a pilot program to develop capabilities such as portable non-invasive transfer devices, 

individual monitoring systems for wound healing, and innovative 

mechanisms for rehabilitation and physical/mental stimulation for 

those patients with assistive technology needs. 

Data Warehouses for Medications.—The Committee notes that in 

the past the Department has saved significant amounts of money 

by using generic versus patented medications and believes there is 

more potential in this area if the correct information is available 

to the Department. With this in mind, the Committee directs the 

Department to report on its efforts to develop and utilize an extensive data warehouse for medication comparisons, as well as the patient privacy issues associated with such an effort. 

55

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 estimate of fees that will be collected in fiscal year 

2006 is $2,170,000,000. 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

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2005 appropriation .......................................................... $4,669,300,000 

Fiscal year 2006 budget request ....................................................... 4,517,874,000 

Committee recommendation in the bill ............................................ 4,134,874,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (534,426,000) 

Fiscal year 2006 budget request ................................................ (383,000,000) 

The Medical Administration appropriation provides funds for the 

expenses of management and administration of the VA health care 

system. Included under this heading are provisions for costs associated with operation of VA 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, all information technology hardware and software, legal services, billing 

and coding activities, and procurement. The Committee recommends $4,134,874,000 for Medical Administration, a decrease of $534,426,000 when compared to the fiscal 

year 2005 appropriation and a decrease of $383,000,000 from the 

budget request. The Committee recommendation includes a reduction of $383,000,000 from the budget request for information technology programs. The budget request for all information technology 

programs in fiscal year 2006 is $1,076,950,000, an increase of 

$385,740,000 when compared to the fiscal year 2005 program. The 

requested increase, most of it tied to one project, has not been adequately justified in the budget or in responses to questions asked 

during the budget hearing earlier this year. Therefore, the Committee recommendation does not include funding for the 

HealtheVet-VistA project in fiscal year 2006. The Committee recommendation also denies the increase of $40,000,000 (an increase 

of more than 10%) associated with the VistA Legacy project. Additional reductions are derived from the VHA portion of the CoreFLS 

program reduction and the VA computing infrastructure reduction 

addressed under the General Operating Expenses account. 

The Committee has included bill language to make available 

through September 30, 2007, up to $250,000,000 of the Medical Administration appropriation. This provides flexibility to the Department as it continues to implement significant program changes. 

The Committee has included bill language to allow the Secretary 

to transfer funds between the Medical Services appropriation, MedVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00055 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
56

ical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations. 

The bill does not include language, proposed in the budget, which 

would allow funds to be used for cost comparison studies. 

Revenue Improvement Demonstration.—The Committee recommends $10,000,000 in funding to initiate a new pilot program 

that will provide a comprehensive restructuring of the complete 

revenue improvement cycle including cash flow management and 

accounts receivable processes in certain VA hospital(s). The Committee envisions the implementation of this project be achieved 

through the execution of a performance-based contract with a vendor, who has demonstrated extensive success in substantially reducing accounts receivable, increasing cash flow, reducing operating expenses and significantly improving revenue collections. The 

VHA Chief Business Officer must have the concurrence of the VA 

Chief Information Officer on the business plan for this demonstration. The Department must initiate this demonstration by September 30, 2005 and provide quarterly progress reports to the Committees on Appropriations and Veterans’ Affairs.

Contract Care Coordination.—The Committee agrees with the 

recommendations submitted for the second year in a row in this 

year’s budget hearings by the Independent Budget veterans’ service 

organizations that encourages the Department to implement by the 

end of this calendar year the first phase, including at least three 

VISN’s, a program that will fully integrate in-house and community care for enrolled veterans. 

The Committee directs the Department to contract with a managed care company with experience in this arena and having national experience working with the Department to implement this 

program in 2005. To fully take advantage of such an initiative, this 

program needs to include an electronic claims processing component, a standardized approach to providing non-VA care, allow VA 

to meet community access standards, ensure that the records of 

veterans being treated in the community are returned to VA and 

have credentialed provider networks to address timeliness, access, 

and cost effectiveness. 

The current preferred pricing program should be incorporated 

into this new community care coordination program, and, as it is 

rolled out across the country in phase two, cost-savings will be 

greatly enhanced. Preferred pricing is currently saving the Department $1,700,000 per month. When fully implemented, preferred 

pricing alone can save the Department $40,000,000 per year. However, this community care coordination program with a preferred 

pricing program incorporated, is projected to save the Department 

$400,000,000 per year. While at the same time improving patient 

satisfaction, clinical results, and allowing the Department to manage its own resources, budget planning, and hiring more efficiently. 

The Committee will review the progress of this program’s Phase 

I implementation in Committee hearings held in 2006 and, assuming it is meeting the objectives outlined above, will expect that the 

Department will expand its scope nationwide. Thus, the Phase I 

contract should be structured to allow the contractor to move ahead 

without delay for a nationwide implementation. 

57

MEDICAL FACILITIES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2005 appropriation .......................................................... $3,761,949,000 

Fiscal year 2006 budget request ....................................................... 3,297,669,000 

Committee recommendation in the bill ............................................ 3,297,669,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (464,280,000) 

Fiscal year 2006 budget request ................................................ ............................

The Medical Facilities appropriation provides funds for the operation and maintenance of the VA health care system’s vast capital 

infrastructure. Included under this heading are provisions for costs 

associated with utilities, engineering, capital planning, leases, 

laundry and food services, groundskeeping, garbage, housekeeping, 

facility repair, and property disposition and acquisition. The Committee recommends $3,297,669,000 for Medical Facilities, a decrease of $464,280,000 from the fiscal year 2005 appropriation level and the same as the budget request. 

The Committee has included bill language to allow the Secretary 

to transfer funds between the Medical Services appropriation, Medical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations. 

The Committee has included bill language to make available through September 30, 2007, up to $250,000,000 of the Medical Facilities appropriation. This provides flexibility to the Department as 

it continues to implement significant program changes.

Community Based Outpatient Clinics.—The Committee has received numerous requests for funding specific Community Based 

Outpatient Clinics (CBOCs) but has retained the practice of not 

earmarking funds for these facilities. However, the Committee is 

concerned that the promises made as a result of the final recommendations of the Capital Asset Realignment for Enhanced 

Services Commission may not be kept due to a variety of reasons. 

The Committee directs the Department to report on the status of 

CBOCs in Bessemer, Alabama; Richmond County (Hamlet), North 

Carolina; Conroe, Texas; Athens, Tennessee; and North Central 

Washington, including the reasons for any delay associated with 

their establishment. In addition, the Committee urges the Department to re-evaluate the need for CBOCs in Capitola, California; 

Jackson County, Florida; Levittown (Bucks County), Pennsylvania; 

Sunbury (Northumberland County), Pennsylvania; Bellingham, 

Washington; and Gladstone, Michigan.

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2005 appropriation .......................................................... $402,348,000 

Fiscal year 2006 budget request ....................................................... 393,000,000 

Committee recommendation in the bill ............................................ 393,000,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (9,348,000) 

Fiscal year 2006 budget request ................................................ ............................

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 

for veterans. The prosthetic research program is also essential in 

the development and testing of prosthetic, orthopedic and sensory 

58

aids for the purpose of improving the care and rehabilitation of eligible disabled veterans, including amputees, paraplegics and the 

blind. The health service 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 agencies provide support for the Department’s researchers. 

The Committee recommends $393,000,000 for Medical and Prosthetic Research, the same as the budget request and a decrease of 

$9,348,000 when compared to the fiscal year 2005 appropriation. 

Hepatitis C.—The Committee is concerned with the long-term 

consequences of hepatitis C infection on veterans, including the development of primary liver cancer. The Committee is also concerned about the long-term consequences of hepatitis C in those 

with HIV infection. Given the unique capabilities of the VA system, 

the Committee urges the VA to consider developing multi-center 

trials for management of primary liver cancer and treatment of 

HCV/HIV co-infection.

Mental Health Research.—In the opinion of most experts in the 

field, mental health issues will be the most pressing problem for 

the Department of Veterans Affairs in the coming years. The Committee is concerned that in fiscal year 2005 the Department of Veterans Affairs’ researchers are expecting to execute mental health 

research projects totaling $56,000,000 out of a total of $784,000,000 

in funding from various sources, including its own budget. This accounts for only 7% of the total resources available to the Department’s researchers being spent on one of the most pressing issues 

facing the Department. The Committee believes that more effort 

into research will lead to earlier identification of problems and 

more effective treatment, thereby reducing the long-term complications and costs associated with mental health issues. As a goal for 

fiscal year 2006, the Committee believes the Department should 

dedicate at least 20% of its research budget to dealing with the 

issues of mental health diagnosis and treatment. The Committee 

directs the Department to establish this goal and work toward 

achieving the goal by focusing its investments in facilities with 

mental health specialization. Any significant deviation from this 

goal shall be reported to the Committee by the third quarter of fiscal year 2006 with explanations as to why the goal was not met 

and remedies being put in place to achieve the goal in the future. 

Research Equipment and Facilities.—The Committee is concerned that equipment and facilities to support the research program of the Department may be lacking and that some mechanism 

is necessary to ensure the Department’s research facilities remain 

competitive. In order to successfully compete for research grants, 

the Committee believes that more resources may be required to ensure that research facilities are properly maintained to support the 

Department’s research mission. The Committee directs the Department to undertake a comprehensive review of its research facilities 

and report to the Congress on the deficiencies found and suggestions for correction of the identified deficiencies. 

59

Stress Disorders Research.—The Committee recognizes the Waco 

VAMC as a national resource in psychiatric care for veterans and 

directs the VA to leverage the relationship between the Waco VA 

and nearby Fort Hood to further PTSD research. The Committee 

notes that the Stress Disorders Research Initiative is funded at 

Fort Hood through the Defense Health Program, and directs the 

Waco VAMC to work with Fort Hood on this effort. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

Fiscal year 2005 appropriation .......................................................... $1,314,700,000 

Fiscal year 2006 budget request ....................................................... 1,418,827,000 

Committee recommendation in the bill ............................................ 1,411,827,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 97,127,000 

Fiscal year 2006 budget request ................................................ (7,000,000) 

The General Operating Expenses appropriation provides for the 

administration of non-medical veterans benefits through the Veterans Benefits Administration (VBA) and Departmental management and support. The Federal Credit Reform Act of 1990 changed 

the accounting 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, education, and vocational rehabilitation 

programs for administration of these credit programs are reimbursed by those accounts. The bill includes the budget requests totaling $154,459,500 in other accounts for these credit programs. In 

addition, $9,740,000 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 VA estimates that $40,928,000 will be utilized 

for such purposes in fiscal year 2006. Prior to fiscal year 1996, such 

costs were included in the general operating expenses appropriation. In total, $2,052,093,000 is requested in fiscal year 2006 for administrative costs of non-medical benefits.

The Committee recommends $1,411,827,000 for General Operating Expenses, a decrease of $7,000,000 from the budget request 

and an increase of $97,127,000 when compared to the fiscal year 

2005 appropriation. The Committee recommendation includes a reduction of $30,000,000 ($1,000,000 in this account and $29,000,000 

in the Medical Administration account) from the budget request of 

$70,100,000 from the CoreFLS project and $20,000,000 ($6,000,000 

in this account and $14,000,000 in the Medical Administration account) from the VA computing infrastructure program. The amount 

of funding remaining in both these efforts will be sufficient to carry 

on existing activities, particularly in the case of CoreFLS where the 

effort to be accomplished is not yet defined. 

60

NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2005 appropriation .......................................................... $147,784,000 

Fiscal year 2006 budget request ....................................................... 156,447,000 

Committee recommendation in the bill ............................................ 156,447,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 8,663,000 

Fiscal year 2006 budget request ................................................ ............................

The National Cemetery Administration was established in accordance with 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 servicepersons and discharged veterans, together with their spouses and 

certain dependents, and to permanently maintain their graves; to 

mark graves of eligible persons in national 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 

cemeterial installations in 39 States, the District of Columbia, and 

Puerto Rico. 

The Committee recommends $156,447,000 for the National Cemetery Administration, an increase of $8,663,000 when compared to 

the fiscal year 2005 appropriation and the same as the budget request for fiscal year 2006. Funding for new cemetery construction 

and other associated costs are included in the Construction, Major 

Projects account.

Fort Ord, California.—The Committee is concerned that land located at Fort Ord, California and set-aside for a cemetery is not 

being used for that purpose due to established policies that may 

not have adequately considered situations that exist at Fort Ord. 

The Committee directs the Secretary and the Undersecretary for 

Memorial Affairs to examine the unique situation at Fort Ord and 

report back to the Committee by September 30, 2005 on what is 

necessary for the Department to make use of this site. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2005 appropriation .......................................................... $69,153,000 

Fiscal year 2006 budget request ....................................................... 70,174,000 

Committee recommendation in the bill ............................................ 70,174,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,021,000 

Fiscal year 2006 budget request ................................................ ............................

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 prevent 

and deter recurring and potential fraud, waste and inefficiencies. 

The Committee recommends the budget request of $70,174,000 

for the Office of Inspector General, an increase of $1,021,000 when 

compared to the fiscal year 2005 appropriation. 

61

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2005 appropriation .......................................................... $455,130,000 

Fiscal year 2006 budget request ....................................................... 607,100,000 

Committee recommendation in the bill ............................................ 607,100,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 151,970,000 

Fiscal year 2006 budget request ................................................ ............................

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 VA, including planning, 

architectural and engineering services, Capital Asset Realignment 

Enhanced Services (CARES) activities, assessments and site acquisition where the estimated cost of a project is $7,000,000 or more. 

Emphasis is placed on correction of life/safety code deficiencies in 

existing Department medical facilities. 

The Committee recommends $607,100,000 for construction, major 

projects, the same as the budget request and $151,970,000 more 

than the fiscal year 2005 appropriation.

San Juan Medical Facilities.—The Committee is aware of the 

need for major medical facility improvements in San Juan, Puerto 

Rico and urges the Department to move forward in an expeditious 

manner. While the initial efforts at contracting for construction of 

a new bed tower encountered problems because bids exceeded 

funds available, the Committee understands that a new Step 1 Request for Proposal was issued on February 25, 2005 and the current schedule has a Step 2 Request for Proposal to be issued on 

June 1, 2005. The goal of the Department is to award a designbuild contract prior to September 30, 2005 using approximately 

$75,000,000 available to the Department for construction. The 

Committee is in complete agreement with this plan of action. In addition to this effort to provide a new bed tower, the Department is 

also engaged in a thorough evaluation of the seismic and safety upgrades to existing facilities in San Juan for which $15,000,000 has 

been appropriated. The Committee is concerned that such upgrades 

may prove to be rather expensive and directs the Department to 

evaluate the feasibility of building a replacement for the existing 

facility rather that merely following its current path of upgrading 

the facility and constructing a new administration building. The 

Department is to report to the Committee on the feasibility of such 

a plan no later than September 30, 2005. 

The specific amounts recommended by the Committee are as follows:

[In thousands of dollars] 

Location and Description Available 

through 2005 2006 Request 

Committee 

Recommendation 

Veterans Health Administration (VHA): 

Cleveland, OH Cleveland-Brecksville Consolidation, Phase 2 ...................... $15,000 $87,300 $87,300 

Pittsburgh, PA Consolidation of Campuses, Phase 2 ................................... 20,000 82,500 82,500 

Las Vegas, NV New Medical Facility, Phase 2 .............................................. 60,000 199,000 199,000 

Gainesville, FL Correct Patient Privacy Deficiencies, Phase 2 ..................... 8,800 76,400 76,400 

Anchorage, AK Outpatient Clinic and Regional Office, Phase 2 .................. 11,760 63,510 63,510 

Biloxi, MS Consolidation—Mental Health ..................................................... 0 17,500 17,500 

Fayetteville, AR Clinical Addition .................................................................. 0 5,800 5,800 

Advance planning fund: Various stations ..................................................... NA 28,290 28,290 

Asbestos abatement: Various stations .......................................................... NA 5,000 5,000 

Claims Analyses: Various locations ............................................................... NA 3,000 3,000 

62

[In thousands of dollars] 

Location and Description Available 

through 2005 2006 Request 

Committee 

Recommendation 

Judgment Fund: Various locations ................................................................ NA 2,500 2,500 

Hazardous Waste: Various locations ............................................................. NA 2,000 2,000 

Facility Security Fund: Various locations ...................................................... NA 15,000 15,000

Total VHA construction, major projects .................................................... .................... 587,800 587,800 

Less Proceeds and revenues from Lakeside, IL ..................................................... .................... ¥48,000 ¥48,000

Total VHA ................................................................................................... .................... 539,800 539,800 

Veterans Benefits Administration (VBA) ................................................................. 0 0 

National Cemetery Administration (NCA): 1

Land Acquisition: Bakersfield, Birmingham, Columbia/Greenville, Jacksonville, Sarasota County, South East Pennsylvania ..................................... 41,000 41,000 

Fort Rosecrans Annex at Miramar, CA Phase I Development ....................... 19,450 19,450 

Subtotal, Construction .......................................................................... (60,450) (60,450) 

Design Fund: Various locations ..................................................................... 3,850 3,850 

Advance planning fund: Various locations ................................................... 1,000 1,000 

Subtotal, Other line-items .................................................................... (4,850) (4,850) 

Total NCA construction, major projects ........................................... .................... 65,300 65,300 

Staff Offices: Advanced Planning Activities at Various locations ......................... .................... 2,000 2,000 

Total construction, major projects ................................................... $607,100 $607,100 

1 National Cemetery Administration major project requests do not include the purchase of pre-placed crypts, which are funded by the Compensation and Pensions appropriation. 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2005 appropriation .......................................................... $265,276,000 

Fiscal year 2006 budget request ....................................................... 208,937,000 

Committee recommendation in the bill ............................................ 208,937,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (56,339,000) 

Fiscal year 2006 budget request ................................................ ............................

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, CARES activities, assessment of needs, architectural and 

engineering services, and site acquisition, where the estimated cost 

of a project is less than $7,000,000. 

The Committee recommends $208,937,000 for construction, 

minor projects, the same as the budget request and a decrease of 

$56,339,000 from the fiscal year 2005 appropriation. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2005 appropriation .......................................................... $104,322,000 

Fiscal year 2006 budget request ....................................................... ............................

Committee recommendation in the bill ............................................ 25,000,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (79,322,000) 

Fiscal year 2006 budget request ................................................ 25,000,000 

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 $25,000,000 for grants for life safety 

improvements to existing State home facilities. The Committee directs the Secretary to undertake a rigorous and extensive analysis 

63

of long-term care needs of veterans and report to the Congress no 

later than March 31, 2006 on the results of that study with recommendations for future funding needed to address all known life 

and safety deficiencies within existing State home facilities. This 

study is to be done with all interested stakeholders. 

GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES

Fiscal year 2005 appropriation .......................................................... $31,744,000 

Fiscal year 2006 budget request ....................................................... 32,000,000 

Committee recommendation in the bill ............................................ 32,000,000 

Comparson with: 

Fiscal year 2005 appropriation .................................................. 256,000 

Fiscal year 2006 budget request ................................................ ............................

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 the budget request of 

$32,000,000 for grants for construction of state veterans cemeteries, an increase of $256,000 when compared to the fiscal year 

2005 appropriation. 

West Hawaii Veterans Cemetery.—The Committee is aware of the 

need for funding to complete Phase II of the West Hawaii Veterans 

Cemetery and encourages the Department to expeditiously evaluate any application for funding for this project. 

ADMINISTRATIVE PROVISIONS

(INCLUDING TRANSFER OF FUNDS)

The bill continues nineteen administrative provisions from title 

I, of division I of the Consolidated Appropriations Act, 2005 (Public 

Law 108–447), with revised dollar figures and other conforming 

modifications. Two new administrative provisions are included in 

the bill. 

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. 

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 

2006 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, 

and ‘‘Veterans insurance and indemnities’’ for payment of accrued 

obligations recorded in the last quarter of fiscal year 2005. 

64

Section 206 allows for the use of fiscal year 2006 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 enables the Department to use surplus earning from 

the National service life insurance, U.S. Government life insurance, 

and veterans special life insurance program to administer these 

programs. The Department estimates that $40,928,000 will be reimbursed to the ‘‘General operating expenses’’ account as a result 

of the provision. 

Section 208 allows for the continuation of the Franchise Fund for 

the Department of Veterans Affairs during fiscal year 2006. 

Section 209 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 210 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. 

Section 211 requires the Secretary to submit a report to the 

Committees on Appropriations to approve new leases of real property more than $300,000. 

Section 212 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, VA is allowed to bill them 

reasonable charges for services provided. 

Section 213 prohibits the Department from using any funds for 

establishment of medical emergency preparedness centers as defined in Public Law 107–287 or Public Law 108–422. 

Section 214 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 215 allows the Department to use the ‘‘Medical services’’

appropriation for expenses related to the broader mission of medical care to veterans. 

Section 216 allows the Department to transfer Medical Care Collections to the ‘‘Medical services’’ appropriation to be used for veterans’ medical care. 

Section 217 allows the Department to transfer funding between 

the three medical care appropriations with a limitation on transfers of 20 percent in fiscal year 2006 to implement the three-account structure which was directed by Congress in fiscal year 2004. 

Section 218 allows for the use of funds designated for the Veterans Benefit Administration to be used for a nationwide property 

management contract if the value of that contract exceeds 

$8,800,000 in any budget year. 

Section 219 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 220 allows the Department to transfer the proceeds received from the transfer of real property deposited into the DepartVerDate jul 14 2003 08:56 May 24, 2005 Jkt 021327 PO 00000 Frm 00064 Fmt 6659 Sfmt 6602 E:\HR\OC\HR095.XXX HR095
65

ment of Veterans Affairs Capital Asset Fund (CAF) to the major 

and minor construction appropriations. 

Section 221 prohibits the expenditure of any funds available to 

the Department on implementation of a national standardized contract for diabetes monitoring systems. 

TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2005 appropriation .......................................................... $40,771,000 

Fiscal year 2006 budget request ....................................................... 35,250,000 

Committee recommendation in the bill ............................................ 35,750,000 

Comparsion with: 

Fiscal year 2005 appropriation .................................................. (5,021,000) 

Fiscal year 2006 budget request ................................................ 500,000 

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 

twenty-four permanent American military cemetery memorials and 

thirty-one monuments, memorials, markers and offices in fifteen 

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 $35,750,000 for 

the American Battle Monuments Commission’s fiscal year 2006 salaries and expenses account. This is a decrease of $5,021,000 below 

the fiscal year 2005 enacted level and an increase of $500,000 

above the budget request. The increase in funding is to be used to 

have a study conducted to determine what, if any, action is warranted to preserve the stability of the site of the World War II 

Pointe du Hoc Ranger Monument located near the Normandy 

American Cemetery in France. 

The recommendation includes $3,100,000 for the cost to complete 

construction of the Normandy Interpretive Center at the Normandy 

American Cemetery in France, the full amount requested. The cemetery averages nearly two million visitors per year, and the existing facilities are over 40 years old and inadequate to serve this 

large number of visitors. The new and expanded center will provide 

a fuller array of interpretive 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. 

While the Commission was responsible for overseeing the planning and construction of the World War II Memorial in Washington, D.C., the responsibility for operation and maintenance of 

the Memorial passed to the National Park Service when it was 

66

dedicated. The Commission, however, retains a fiduciary role in 

overseeing the remainder of funding donated by the public for construction of the Memorial. The Commission is directed to report annually to the Committee on the financial position of the fund including any expenditures during the prior year. Language is included allowing up to $7,500 to be used for official 

reception and representation expenses.

FOREIGN CURRENCY FLUCTUATION ACCOUNT

Fiscal year 2005 appropriation .......................................................... $11,904,000 

Fiscal year 2006 budget request ....................................................... 15,250,000 

Committee recommendation in the bill ............................................ 15,250,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. 3,346,000 

Fiscal year 2006 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 $15,250,000 to 

re-capitalize the Commission’s Foreign Currency Fluctuations account. This is an increase of $3,346,000 above the fiscal year 2005 

enacted level and the same as the budget request. Due to declining 

exchange rates during prior years, all available resources in the account have been depleted and necessary Commission activities 

have been deferred. Current estimates of exchange rates during fiscal year 2006 indicate that the Commission’s budget submission 

will be insufficient to support Commission activities. Re-capitalization of the account ensures that funds are available to offset dollar 

losses during fiscal year 2006.

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2005 appropriation .......................................................... $17,112,000 

Fiscal year 2006 budget request ....................................................... 18,295,000 

Committee recommendation in the bill ............................................ 18,295,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 1,183,000 

Fiscal year 2006 budget request ................................................ ............................

The Veterans’ Judicial Review Act established the 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 $18,295,000 for 

the Court of Appeals for Veterans Claims for fiscal year 2006. This 

is an increase of $1,183,000 above the fiscal year 2005 enacted 

level and the same as the budget request. 

The bill also identifies $1,260,000 to be used for the pro bono representation program, the same as proposed in the budget request. 

The Committee is pleased that the Court has moved forward in 

a responsible manner to assess its facility needs and looks forward 

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to working with the Court to ensure that the most cost-effective solution is selected. 

DEPARTMENT OF DEFENSE—CIVIL

CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2005 appropriation .......................................................... $29,363,000 

Fiscal year 2006 budget request ....................................................... 28,050,000 

Committee recommendation in the bill ............................................ 29,550,000

Comparison with: 

Fiscal year 2005 appropriation .................................................. 187,000 

Fiscal year 2006 budget request ................................................ 1,500,000 

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 appropriations of $29,550,000 for 

operations and maintenance for fiscal year 2006. This is an increase of $187,000 above the fiscal year 2005 enacted level and an 

increase of $1,500,000 above the budget request. 

The Committee recommends that at least $1,500,000 in fiscal 

year 2006 be used for the Arlington Cemetery’s automation project. 

The Committee is concerned about the need for physical security 

of existing ‘‘hard copy’’ records and recommends that the additional 

funds first be used to accelerate data entry of these records into the 

automation system. A priority should also be placed on providing 

for the physical security of the records. The Committee remains 

supportive of the automation effort, but continues to be concerned 

that detailed information on the overall project plan, cost, and 

schedule needs to be refined to allow for responsible decision-making. The Army is directed to update the report provided to the 

Committee earlier this year and include more detailed cost estimates for the total project as well as costs for key components 

which may be procured on a stand-alone basis. 

ARMED FORCES RETIREMENT HOME

Fiscal year 2005 appropriation .......................................................... $61,131,000 

Fiscal year 2006 budget request ....................................................... 58,281,000 

Committee recommendation in the bill ............................................ 58,281,000 

Comparison with: 

Fiscal year 2005 appropriation .................................................. (2,850,000) 

Fiscal year 2006 budget request ................................................ ............................

The Armed Forces Retirement Home 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 old 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 AFRH is home 

to 1,600 veterans and provides residential, social, and health services. 

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The Committee recommendation provides authority to expend $58,281,000 from the Armed Forces Retirement Home Trust Fund 

for operations and capital activities at the United States Soldiers’ and Airmen’s Home and the United States Naval Home. This is a 

decrease of $2,850,000 below the comparable fiscal year 2005 appropriation and the same as the budget request. The bill provides authority to expend $57,033,000 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 as proposed in the budget request. The bill provides authority to expend $1,248,000 from the Armed 

Forces Retirement Home Trust Fund for capital activities at the 

Soldiers’ and Airmen’s Home and the United States Naval Home, 

a decrease of $2,720,000 below the comparable fiscal year 2005 appropriation and the same as the budget request. 

TITLE IV 

GENERAL PROVISIONS

Section 401 prohibits the obligation of funds beyond the current 

fiscal year unless expressly so provided. 

Section 402 limits the amount that can be paid for consultants. 

Section 403 requires pay raises to be absorbed within the levels 

appropriated. 

Section 404 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. 

Section 405 prohibits the use of funds to support or defeat legislation pending before Congress. 

Section 406 encourages the expansion of E-Commerce technologies and procedures. 

Section 407 limits funds from being transferred from this appropriations measure to any instrumentality of the United States Government without authority from an appropriation Act. 

Section 408 specifies the congressional committees that are to receive all reports and notifications. 

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) 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. 

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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 the Department of Veterans Affairs, 

General Operating Expenses, providing for the reimbursement to 

the Department of Defense for the costs of overseas employee mail. 

This language has been carried previously and permits free mailing 

privileges for personnel stationed in the Philippines. 

Language is included under the Department of Veterans Affairs, 

Construction, Major Projects, 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 the Department of Veterans Affairs, 

Construction, Major Projects, providing that unobligated balances 

of previous appropriations may be used for any project with an estimated cost of less than $4,000,000, allowing the use of funds for 

program costs, and making funds available for damage caused by 

natural disasters. 

Language is included under the Department of Veterans Affairs, 

Administrative Provisions, permitting transfers between mandatory and discretionary accounts, limiting and providing for the use 

of certain funds, funding administrative expenses associated with 

VA life insurance programs from excess program revenues, extending authority to operate the Franchise Fund, allowing reimbursement from enhanced-use leases, allowing for reimbursement for 

certain services, requiring notification of new lease agreements, requiring disclosure of insurance and income information, prohibiting 

funds for implementation of two sections of Public Law 107–287 or 

section 303 of Public Law 108–422, allowing the Secretary to establish a priority system for medical services, allowing a recovery 

audit collection program, 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 in the Defense Health Program which 

places a limitation on the amount of funding available for contracts 

entered into under the TRICARE Program. 

Language is included in the Defense Health Program which 

makes available funds for HIV prevention educational activities.

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) 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:

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TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, a statement is required describing the transfer 

of funds provided in the accompanying bill. 

Language under ‘‘Military Construction, Defense-wide’’, ‘‘Environmental Restoration, Army’’, ‘‘Environmental Restoration, Navy’’, 

‘‘Environmental Restoration, Air Force’’, ‘‘Environmental Restoration, Defense-wide’’, Environmental Restoration, Formerly Used 

Defense Sites’’, and sections 115, 119, 120, 123, 128 of Administrative Provisions, provide certain transfer authority. 

The Committee has included language transferring not to exceed 

$23,491,000 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. 

The Committee recommends transferring 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 

($153,575,000), the Vocational Rehabilitation Loans Program Account ($305,000) and the Native American Veteran Housing Loan 

Program Account ($5,718,000). 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 

Homeless Veterans Program Account. 

The Committee has included language 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 

under section 721 of Public Law 107–317. 

The Committee recommends providing authority for the Department of Veterans Affairs for any funds appropriated in 2006 for 

Compensation and Pensions, Readjustment Benefits, and Veterans 

Insurance and Indemnities to be transferred between those three 

accounts. This will provide the Department of Veterans Affairs 

flexibility in administering its entitlement programs. 

The Committee has included language permitting the funds from 

three life insurance funds to be transferred to General Operating 

Expenses for the costs of administering such programs. 

The Committee recommends language permitting up to 

$32,817,000 to be transferred to General Operating Expenses from 

any funds appropriated in 2006 to reimburse the Office of Resolution Management and the Office of Employment Discrimination 

Complaint Adjudication for services provided. 

The Committee has included language that would transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects and Construction, Minor Projects Accounts. 

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The Committee has included languge under the Department of 

Veterans Affairs that would transfer funds from the Medical Care 

Collections Fund to Medical Services. 

The Committee recommends providing authority for the Department of Veterans Affairs to transfer amounts between the Medical 

Services, Medical Administration and Medical Facilities accounts to 

the extent necessary to implement the restructuring of these accounts subject to certain notification requirements. 

The Committee recommends language under the Department of 

Veterans Affairs that would allow the transfer of funds from the 

General Operating Expenses account to the Veterans Housing Benefit Program Fund Program Account for certain purposes. 

The Committee recommends language under the Department of 

Veterans Affairs that would allow the transfer of funds from the 

Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts. 

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that:

Each report of a committee on a bill or joint resolution 

of a public character shall include a statement citing the 

specific powers granted to the Congress in the Constitution 

to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report 

this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states:

No money shall be drawn from the Treasury but in consequence of Appropriations made by law * * *

Appropriations contained in this bill are made pursuant to this 

specific power granted by the Constitution. 

COMPARISONS WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 

308(a)(1)(A) of the Congressional Budget and Impoundment Control 

Act of 1974 (Public Law 93–344), as amended, which requires that 

the report accompanying a bill providing new budget authority contain a statement detailing how that authority compares with the 

reports submitted under section 302 of the Act for the most recently agreed to concurrent resolution on the budget for the fiscal 

year from the Committee’s section of 302(a) allocation.

[In millions of dollars] 

302(b) allocation This bill 

Budget authority Outlays Budget authority Outlays 

Discretionary .................................................................................. 85,158 81,634 85,158 81,634

Mandatory ...................................................................................... 35,640 35,570 35,640 35,570 

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FIVE-YEAR PROJECTION OF OUTLAYS

In compliance with section 308(a)(1)(B) of the Congressional 

Budget and Impoundment Control Act of 1974 (Public Law 93–

344), as amended, the following table contains five-year projections 

associated with the budget authority provided in the accompanying 

bill:

[In millions of dollars] 

Outlays: 

2006 .............................................................................................. 98,519

2007 .............................................................................................. 14,899

2008 .............................................................................................. 5,057

2009 .............................................................................................. 1,715

2010 and beyond .......................................................................... 1,035

The bill will not affect the levels of revenues, tax expenditures, 

direct loan obligations, or primary loan guarantee commitments 

under existing law. 

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional 

Budget and Impoundment Control Act of 1974 (Public Law 93–

344), as amended, the financial assistance to State and local governments is as follows:

[In millions of dollars] 

New budget authority ........................................................................ 520 

Fiscal year 2006 outlays resulting therefrom .................................. 403 

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. 

74

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House 

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those 

voting for and those voting against, are printed below: 

ROLLCALL NUMBER: 1

Date: May 18, 2005. 

Measure: Military Quality of Life and Veterans Affairs Appropriations Bill, FY 2006. 

Motion by: Mr. Obey. 

Description of motion: To increase certain veterans programs by 

$2,605,000,000, offset by a reduction to tax cuts for certain income 

groups. 

Results: Rejected 27 yeas to 34 nays. 

Members Voting Yea Members Voting Nay 

Mr. Berry Mr. Aderholt 

Mr. Bishop Mr. Alexander 

Mr. Boyd Mr. Bonilla 

Mr. Clyburn Mr. Carter 

Mr. Cramer Mr. Crenshaw 

Ms. DeLauro Mr. Culberson 

Mr. Dicks Mr. Cunningham 

Mr. Edwards Mr. Doolittle 

Mr. Farr Mrs Emerson 

Mr. Fattah Mr. Frelinghuysen 

Mr. Hinchey Mr. Goode 

Mr. Jackson Ms. Granger 

Ms. Kaptur Mr. Hobson 

Mr. Kennedy Mr. Istook 

Mrs. Lowey Mr. Kingston 

Mr. Mollohan Mr. Kirk 

Mr. Moran Mr. Knollenberg 

Mr. Murtha Mr. Kolbe 

Mr. Obey Mr. LaHood 

Mr. Olver Mr. Latham 

Mr. Pastor Mr. Lewis 

Mr. Price Mrs. Northup 

Mr. Rothman Mr. Peterson 

Ms. Roybal-Allard Mr. Regula 

Mr. Sabo Mr. Rehberg 

Mr. Serrano Mr. Rogers 

Mr. Visclosky Mr. Sherwood 

Mr. Simpson 

Mr. Taylor 

Mr. Walsh 

Mr. Wamp 

Dr. Weldon 

Mr. Wolf 

Mr. Young 

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STATE LIST

The following is a complete listing, by State and country, of the 

Committee’s recommendations for military construction and family 

housing projects:


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ADDITIONAL VIEWS OF THE HONORABLE DAVID OBEY 

While the FY 2006 Military Quality of Life and Veterans Affairs 

bill is a much-needed improvement over the President’s inadequate 

budget for veterans health care, this bill will not get the job done 

for the men and women who are depending on the VA to meet their 

health care needs. 

I presented to the Majority a very simple amendment: provide 

veterans with an additional $2.6 billion for VA health care and pay 

for it by reducing the size of the tax cut for those persons who 

make more than a million dollars a year. Instead of receiving a tax 

cut of $140,000, people making over one million dollars this year 

would get $129,000. 

This is an issue of shared sacrifice. I think it is completely appropriate for the most well off in our society to take a slightly smaller 

tax break so we can provide health care for the men and women 

who have fought, sacrificed, and risked life and limb to protect the 

freedoms we all enjoy. 

Under mendment, veterans would get: 

• $1.5 billion more for medical services to meet increased demand; 

• $500 million to meet rising medical administrative costs; 

• $300 million to keep VA medical facilities up and running; 

• $67 million for VA medical and prosthetic research; 

• $201 million to build medical clinics and long-term care facilities; 

• $37 million for general administrative costs so veterans receive the prompt attention. 

Why are these increases needed? The number of veterans treated 

at VA facilities increased from 2.7 million to 4.7 million from 1995 

to 2004. Medical costs are increasing at nearly double the rate of 

inflation. VA facilities are old and crumbling and improvements 

will cost at least $1 billion a year for the next ten years according 

to the VA itself. Unfortunately, the Committee rejected my amendment. 

I have heard some on the majority side say, ‘enough is never 

enough for you guys on veteran’s health care.’ Enough will be 

enough when every veteran receives the timely and high quality 

health care that they were promised. I did not serve in the military, but I believe we have a moral obligation when it comes to veterans’ health care. If in America we cannot provide health care to 

45 million Americans who are without any coverage, we ought to 

at least be providing top-shelf, top-quality, no questions asked medical care to veterans who have risked more than anybody else in 

this society to keep it as free and open as it is today. 

We also have a moral obligation to point out at every opportunity 

that the reason why veterans will not be receiving the health care 

they deserve is because of the misbegotten, ill-advised budget that 

96

the Republican Congress passed just a few short weeks ago. That 

budget, which only one Republican member of the Appropriations 

Committee opposed, is the reason that veterans will not receive the 

health care that they were promised and that they deserve.

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