U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

39–012 2005

109th Congress, 1st Session – – – – – – – – – – – – – House Document 109–39 

REQUEST FOR FY 2005 BUDGET AMENDMENTS 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

A REQUEST FOR FY 2005 SUPPLEMENTAL APPROPRIATIONS FOR 

THE DEPARTMENT OF VETERANS AFFAIRS 

JUNE 30, 2005.—Referred to the Committee on Appropriations and ordered 

to be printed 


E:\Seals\Congress.#13
(1) 

THE WHITE HOUSE, 

Washington, DC, June 30, 2005. 

Hon. J. DENNIS HASTERT, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: I ask the Congress to consider expeditiously 

the enclosed request in the amount of $975 million for a supplemental appropriation for the Department of Veterans Affairs (VA). 

I am requesting these resources to cover the increased costs in 

FY 2005 that the VA is experiencing in its medical care system. 

As Secretary Nicholson informed the Congress on June 28th, additional needs in the VA medical care system have also been identified for FY 2006. Details on specific FY 2006 requirements are 

under review and will be transmitted separately. My Administration is committed to ensuring that our Nation’s veterans continue 

to receive timely and high-quality health care. 

The details of the FY 2005 request are set forth in the enclosed 

letter from the Director of the Office of Management and Budget. 

Sincerely, 

GEORGE W. BUSH. 

(3) 

[Estimate No. 7, 109th Congr., 1st Sess.] 

EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET, 

Washington, DC, June 30, 2005. 

The PRESIDENT, The White House. 

Submitted for your consideration is a request for an FY 2005 

supplemental appropriation in the amount of $975 million to fund 

the Medical Services account within the Department of Veterans 

Affairs (VA) Medical Care budget. This request is in addition to the 

$28.0 billion already appropriated for FY 2005 medical care costs. 

As Secretary Nicholson testified on June 28, 2005, the actuarial 

model used by the Administration forecasted 2.3 percent annual 

growth in health care demand in FY 2005. The Administration recently discovered that growth had accelerated through April 2005 

to 5.2 percent above FY 2004, which is almost 3 percent above the 

Administration’s annual projection. 

A significant, but not the predominant component of this growth, 

is the increase in the number of veterans, including an increased 

number of reservists, who are entitled to receive medical care from 

the VA as a result of their combat service in the Global War on 

Terror. While VA’s estimate of those returning from Iraq and Afghanistan in FY 2005 has increased from its initial projection, 

these individuals are generally in good health and most do not 

need intensive health care. Many of them are being treated for dental care only—an area in which VA has seen considerable cost 

growth. A relatively small percentage of these veterans treated by 

VA in 2005 who have returned from the current combat theatres 

are traumatically disabled. The majority of the increased cost is 

due to higher utilization of services by veterans from prior combat 

eras. 

The Department had been planning to defer $600 million from 

anticipated capital items (equipment and non-emergency, non-recurring maintenance) as well as to expend $375 million in planned 

carryover into FY 2006, on VA medical care costs. This supplemental will ensure VA has the funds it needs to continue scheduled 

maintenance and capital improvements, as well as to replenish the 

$375 million projected carryover into FY 2006. 

I have carefully reviewed this proposal and am satisfied that it 

is necessary at this time. Therefore, I join the Secretary of Veterans Affairs in recommending you transmit the proposal to the 

Congress. 

Details on specific FY 2006 requirements are under review and 

will be transmitted separately. Your Administration remains comVerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HD039.XXX HD039
4

mitted to ensuring that our Nation’s veterans continue to receive 

timely and high-quality health care. 

Sincerely, 

JOSHUA B. BOLTEN, Director. 

Enclosure. 

DEPARTMENT OF VETERANS AFFAIRS 

VETERANS HEALTH ADMINISTRATION

MEDICAL SERVICES

For an additional amount for ‘‘Medical Services,’’ $975,000,000 to 

remain available until—expended. 

At the beginning of FY 2005, the VA medical care system was 

expecting an increase in patients over FY 2004 of 2.3 percent, but 

is now estimating an increase of 5.2 percent resulting in an increased need of $975 million.

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