27–494 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–464 

MILITARY QUALITY OF LIFE AND VETERANS AFFAIRS, 

AND RELATED AGENCIES APPROPRIATIONS BILL, 2007 

MAY 15, 2006.—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. 5385] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for the 

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, 2007. 

CONTENTS 

Page 

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

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

Summary of Committee Recommendation ............................................................ 3 

Items of Interest ...................................................................................................... 19 

Department of Defense: 

Military Construction ....................................................................................... 21 

NATO Security Investment Program .............................................................. 27 

Family Housing Construction and Operation and Maintenance .................. 29 

Chemical Demilitarization Construction, Defense-Wide ............................... 32 

Department of Defense Base Closure Account 1990 ..................................... 32 

Department of Defense Base Closure Account 2005 ..................................... 32 

Basic Allowance for Housing ........................................................................... 33 

Facilities Sustainment, Restoration and Modernization ............................... 35 

Environmental Restoration .............................................................................. 38 

Defense Health Program .................................................................................. 39 

Administrative Provisions ................................................................................ 46 

Department of Veterans Affairs: 

Overview ............................................................................................................ 48 

Veterans Benefits Administration ................................................................... 51 


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Veterans Health Administration ..................................................................... 54 

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

Administrative Provisions ................................................................................ 65 

Related Agencies: 

American Battle Monuments Commission ..................................................... 66 

U.S. Court of Appeals for Veterans Claims .................................................... 68 

Cemeterial Expenses, Army ............................................................................ 68 

Armed Forces Retirement Home ..................................................................... 68 

Additional Appropriations ....................................................................................... 69 

General Provisions ................................................................................................... 69 

Changes in Application of Existing Law ................................................................ 70 

Appropriations Not Authorized by Law ................................................................. 73 

Transfer of Funds .................................................................................................... 75 

Rescissions ................................................................................................................ 76 

Constitutional Authority ......................................................................................... 76 

Comparisons With Budget Resolution ................................................................... 76 

Five-Year Projection of Outlays .............................................................................. 77 

Financial Assistance to State and Local Governments ........................................ 77 

Statement of General Performance Goals and Objectives .................................... 77 

Full Committee Votes .............................................................................................. 77 

State List .................................................................................................................. 82

Additional Views ...................................................................................................... 101 

PURPOSE OF THE BILL

The structure of this bill allows for 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 witnesses, including 

the Chief of Staff of the military services, who have testified before 

the Committee in preparation for this bill, have spoken in full support of the bill structure 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 

continues to hear repeatedly 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 Committee is deeply concerned that 

wounded veterans receive the treatment they require and deserve. 

The Committee is also concerned that the mental health needs of 

servicemenbers and veterans are properly addressed. Therefore, 

the Committee will continue 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 


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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; and the chemical demilitarization construction program. 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 3, 2006, the Armed Services Committee reported out the 

National Defense Authorization Act for 2007. At this time, conference action on the legislation has not concluded; therefore, 

projects in this bill are approved subject to authorization. 

SUMMARY OF COMMITTEE RECOMMENDATION

The Committee recommends $136,120,452,000 in new budget authority for the programs and activities funded in the bill. This recommendation is $824,000,000 below the President’s request and 

$13,923,359,000 above the fiscal year 2006 enacted level. Included 

in this amount is $41,415,643,000 in mandatory authority and 

$94,704,809,000 in discretionary authority. The following table 

compares amounts recommended in the bill to the President’s request and amounts appropriated in fiscal year 2006: 


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ITEMS OF INTEREST

Budget Justifications.—The House Committee on Appropriations 

is committed to enactment of all appropriations bills prior to the 

start of the fiscal year. The Committee waited more than eight 

weeks after the release of the President’s budget proposal to receive budget justifications for all the programs in this bill. This is 

unacceptable. For the Committee to adequately review the budget 

proposal and make informed decisions on the recommendations 

therein, justification material must arrive in a more timely manner. The Department of Defense is directed to submit detailed justification material to the Committee on the date the President’s 

budget is released. 

Joint Incentives Program.—The Committee is concerned about 

the large amount of carryover funding in the Departments of Defense and Veterans Affairs Joint Incentive Fund and held a hearing on the issue this year. While the Committee believes that many 

of the issues that have precluded the funding from being spent 

have been resolved, there is still a large amount of funding that remains unobligated. This program has been authorized for four 

years and as of January of this year, only a small percentage of the 

funds had been obligated to projects. The Committee does not disagree with the rationale for having such a fund, but is waiting to 

see tangible results before continuing to provide additional funding. 

The Committee has not agreed to increase funding for payments 

into the fund in fiscal year 2007 and, in the case of the Department 

of Defense, has rescinded $15,042,000 in unobligated balances from 

the fund. 

Information Technology Data Sharing.—The Committee is concerned about the progress being made in implementing medical 

record data sharing between the Department of Defense and the 

Department of Veterans Affairs and also held a hearing on this 

issue earlier this year. While improvements are being made, problems with data sharing are still being experienced at the local 

level. In addition, the Department of Veterans Affairs is considering a new system for storing and housing individual medical 

records data. The Committee feels strongly that the two Departments should, to the maximum extent possible, use identical software platforms, data standards, and data repositories to increase 

the viability of data sharing and reduce system development costs. 

The Departments should report to the Committee on their plans for 

going forward with data sharing systems and standards no later 

than December 15, 2006. 

Incremental Funding for Military Construction Projects.—The 

Committee understands that the Office of Management and Budget 

(OMB) has altered Administration policy on incremental funding of 

military construction projects. The Committee understands that approval of incremental funding in the past has been based on the 

following criteria: (1) the estimated cost of the project must be at 

least $50,000,000; (2) the construction schedule must be at least 24 

months; (3) incrementally funded contracts must conform with Federal Acquisition Regulations; and (4) incremental funding will not 

significantly increase the cost of the project. The Committee further 

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mental funding except for those projects subjectively determined by 

OMB to have a ‘‘major national security impact.’’

It is the Committee’s view that military construction projects 

should be fully funded or separated into stand-alone phases whenever practical. In some cases, however, incremental funding makes 

fiscal and programmatic sense, regardless of OMB’s subjective 

judgments. While the appropriations for incrementally funded 

projects are spread across two or more fiscal years, the total cost 

must be authorized in the first year, which allows Congress to exercise oversight before committing to such projects. The Committee 

will continue to exercise its prerogative to recommend incremental 

funding where it is deemed appropriate, in accordance with authorizing legislation. The Committee has therefore recommended that 

two projects be incrementally funded: Hangar 5 Recapitalization, 

NAS Whidbey Island, Washington, under Military Construction, 

Navy and Marine Corps; and Clinic Replacement, MacDill AFB, 

under Military Construction, Defense-Wide. 

Facilities Sustainment, Restoration and Modernization 

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

form 1390 the backlog of FSRM requirements at installations with 

future construction projects. For troop housing requests, form 1391 

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

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

below: 

(1) components of the facility may be repaired by replacement. Such replacement can be up to current standards or 

codes; 

(2) interior arrangements and restorations may be included 

as repair; 

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

be performed as military construction projects. Such projects 

may be done concurrently with repair projects as long as the 

final conjunctively funded project is a complete and usable facility; and 

(4) the appropriate service secretary shall notify the appropriate committees 21 days prior to carrying out any repair 

project with an estimated cost in excess of $7,500,000. 

The Committee notes that, when adjusted for supplemental appropriations, funding for facilities sustainment, restoration, and 

modernization (FSRM) across the Department of Defense will be 

reduced by $319,106,000, or 4.9 percent from fiscal year 2006. The 

reduction for the active components and Defense agencies alone is 

7.1 percent. The Committee believes that this decrease in funding 

does not result from a declining requirement, but rather from current fiscal pressures and the Department’s historic unwillingness 

to fully fund FSRM in its request. The Committee notes that under 

the recommended account structure the Department will no longer 

have the option of reprogramming funds between FSRM and base 

operating support (which is also historically underfunded), as has 

been the usual practice. It is the Committee’s intention to stop this 


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practice, and therefore the Committee urges the Department to 

begin budgeting up front for full funding of the FSRM requirement. 

Reprogramming Criteria.—Reprogramming requests are required 

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

$2,000,000, whichever is less. 

Impact of 2005 BRAC Round and Global Rebasing on Local 

Schools.—The Committee is deeply concerned by the impact that 

the 2005 Base Realignment and Closure process, as well as global 

rebasing, could have on school districts near recipient installations. 

The Committee urges the Department of Defense to be as proactive 

as possible in assisting local communities with planning for growth 

in school enrollment due to increases in personnel with children. 

The Department must share, to the greatest extent possible, information concerning the schedule of BRAC and global rebasing actions, as well as demographic data and housing plans. The Committee intends to monitor the Department’s actions in this regard. 

Basic Allowance for Housing Rate Calculations.—The Committee 

is concerned that the annual process for determining basic allowance for housing (BAH) rates is too cumbersome to keep pace with 

a dynamic family housing market, leading to shortfalls in the year 

of execution that must be made up either with additional appropriations or funds from other accounts. This concern will grow as 

the number of government-owned family housing units decreases 

and more servicemembers move into privatized housing. The Committee believes that the BAH rate-setting process should be part of 

the 10th Quadrennial Review of Military Compensation now underway. The Committee also directs the Department of Defense to provide a report on the execution of each BAH appropriation recommended in this bill for the five most recent fiscal years for which 

data is available. The report shall include for each year and appropriation the budget request, appropriated amount (including supplemental appropriations), and the actual executed amount. The report shall also note legislative and policy initiatives affecting any 

differences between the budget request and executed amount in 

each year. This report shall be submitted no later than September 

1, 2006. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSIONS OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $1,737,761,000 

Fiscal year 2007 budget request ....................................................... 2,059,762,000 

Committee recommendation in the bill (including rescissions) ...... 1,712,950,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (24,811,000) 

Fiscal year 2007 budget request ................................................ (346,812,000) 

The Committee recommends an appropriation of $1,756,298,000 and a rescission of $43,348,000 for Military Construction, Army, for 

fiscal year 2007. In addition, the Committee recommends an appropriation of $379,300,000 in Title IV for projects supporting contingency operations related to the global war on terrorism. Together 


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this is an increase of $354,489,000 above the fiscal year 2006 enacted level and an increase of $32,488,000 above the budget request. The Committee recommends rescissions from previous appropriations to the account due to bid savings as follows: 

Public Law/location Project title Recommended 

PL 109–114 (FY 2006): 

Korea: Camp Humphreys ................................. Barracks Complex (PN 058248) .............................. (11,898,000) 

Korea: Camp Humphreys ................................. Barracks Complex (PN 058354) .............................. (17,044,000) 

Korea: Camp Humphreys ................................. Barracks Complex (PN 058398) .............................. (14,406,000) 

Total ............................................................ .................................................................................. (43,348,000) 

Arizona—Yuma Proving Ground: Special Operations Free Fall 

Simulator Facility. Of the funds provided for planning and design in this account, the Committee directs that not less than $365,000 

be made available for the design of this project. 

Georgia—Fort Benning: Combat Pistol Qualification Course. Of 

the funds provided for minor construction in this account, the Committee directs that not less than $930,000 be made available for 

this project. 

Utah—Dugway Proving Ground: Community Dining Facility. Of 

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

Committee directs that not less than $243,000 be made available 

for the design of this project. 

Virginia—Fort Belvoir: Sensitive Compartmented Information Facility. Of the funds provided for planning and design in this account, the Committee directs that not less than $1,260,000 be made 

available for the design of this project. 

Reducing Overhead for Army Military Construction Projects. The 

Committee is aware that cooperative efforts with the U.S. Army 

Corps of Engineers are underway to reduce design and overhead 

costs on military construction projects. The Committee understands 

that the increased use of standard designs and changes in Supervision, Inspection and Overhead (SIOH) practices will allow the 

Army to reduce the cost of projects. The Committee supports and 

encourages these efforts, and directs the Army to provide a status 

report on these efforts by October 2, 2006. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

(INCLUDING RESCISSIONS OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $1,386,752,000 

Fiscal year 2007 budget request ....................................................... 1,162,038,000 

Committee recommendation in the bill (including rescissions) ...... 1,155,834,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (230,918,000) 

Fiscal year 2007 budget request ................................................ (6,204,000) 

The Committee recommends an appropriation of $1,193,834,000 

and rescissions of $38,000,000 for Military Construction, Navy and 

Marine Corps, for fiscal year 2007. In addition, the Committee recommends an appropriation of $26,037,000 in Title IV for projects 

supporting contingency operations related to the global war on terrorism. Together this is a decrease of $204,881,000 below the fiscal 

year 2006 enacted level and an increase of $19,833,000 above the 

budget request. When adjusted for supplemental funding, the recommendation is an increase of $86,338,000 above the fiscal year 


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2006 enacted level. The Committee recommends rescissions from 

previous appropriations to the account due to cancelled or delayed 

projects as follows: 

Public Law/location Project title Recommended 

PL 108–132 (FY 2004) 

Italy: La Maddalena ......................................... Consolidate Santo Stefano Facilities ....................... (30,000,000) 

PL 108–324 (FY 2005) 

NC: OLF Washington County ............................ OLF Land Acquisition (Phase I) ............................... (8,000,000) 

Total ............................................................ .................................................................................. (38,000,000) 

Pennsylvania—Philadelphia: Full Scale Electric Test Drive Facility. Of the funds provided for planning and design in this account, 

the Committee directs that not less than $945,000 be made available for the design of this project. 

North Carolina: Outlying Landing Field. The Committee expects 

the Navy to comply with the requirements of federal law and relevant court decisions regarding the completion of a supplemental 

environmental impact statement (SEIS) for the Outlying Landing 

Field (OLF) in North Carolina. The Committee further directs that, 

no later than 30 days after completion of the draft SEIS, the Navy 

submit a report to the Committee detailing how the SEIS addresses the deficiencies in the initial EIS as identified by the relevant 

court decisions. That report shall also include the Navy’s explanation of how it has complied with the Committee’s previous direction to ‘‘fully reconsider alternative sites in cooperation with the 

State of North Carolina.’’

MILITARY CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSIONS OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $1,299,157,000 

Fiscal year 2007 budget request ....................................................... 1,156,148,000 

Committee recommendation in the bill (including rescissions) ...... 1,184,856,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (114,301,000) 

Fiscal year 2007 budget request ................................................ 28,708,000 

The Committee recommends an appropriation of $1,187,550,000 

and a rescission of $2,694,000 for Military Construction, Air Force, 

for fiscal year 2007. In addition, the Committee recommends an appropriation of $49,923,000 in Title IV for projects supporting contingency operations related to the global war on terrorism. Together this is a decrease of $64,378,000 below the fiscal year 2006 

enacted level and an increase of $78,631,000 above the budget request. When adjusted for supplemental funding, the recommendation is a decrease of $11,766,000 below the fiscal year 2006 enacted 

level. The Committee recommends rescissions from previous appropriations to the account due to bid savings and a cancelled project 

as follows: 

Public Law/location Project title Recommended 

PL 108–324 (FY 2005): 

MD: Andrews AFB ............................................ ASA Munitions Storage Igloos .................................. (1,100,000) 

Italy: Aviano AB ............................................... Flight Simulator Facility .......................................... (1,594,000) 

Total ............................................................ .................................................................................. (2,694,000) 


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California—Travis AFB: C–17 and C–5 Squadron Operations and 

Aircraft Generation Squadron Facility. Of the funds provided for 

planning and design in this account, the Committee directs that 

not less than $1,134,000 be made available for the design of this 

project. 

Georgia—Robins AFB: Software Support Facility. Of the funds 

provided for planning and design in this account, the Committee 

directs that not less than $1,935,000 be made available for the design of this project. 

Idaho—Mountain Home AFB: Logistics Readiness Center. Of the 

funds provided for planning and design in this account, the Committee directs that not less than $1,530,000 be made available for 

the design of this project. 

New Mexico–Kirtland AFB: Parajumper/Combat Rescue Officers 

Rescue Recovery Training Center. Of the funds provided for planning and design in this account, the Committee directs that not 

less than $1,026,000 be made available for the design of this 

project. 

North Dakota–Grand Forks AFB: Fire Station. Of the funds provided for planning and design in this account, the Committee directs that not less than $1,071,000 be made available for the design 

of this project. 

Ohio–Wright-Patterson AFB: Information Technology Complex, 

Phase 1. Of the funds provided for planning and design in this ac- count, the Committee directs that not less than $2,070,000 be made 

available for the design of this project. 

Energy Conservation.—In previous years, the Committee encouraged the Navy to expand opportunities for the use of advanced photovoltaic technology such as triple junction amorphous silicon photovoltaic roofing in military construction projects. The Committee 

believes that many Air Force projects would also benefit from a 

similar emphasis on renewable energy technology. The Committee 

directs the Air Force to provide a report on plans and opportunities 

to include photovoltaic capability in Military Construction projects 

no later than January 15, 2007. 

MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING RESCISSIONS OF FUNDS) 

Fiscal year 2006 enacted level ........................................................... $1,023,766,000 

Fiscal year 2007 budget request ....................................................... 1,208,198,000 

Committee recommendation in the bill (including rescissions) ...... 997,377,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (26,389,000) 

Fiscal year 2007 budget request ................................................ (210,821,000) 

The Committee recommends an appropriation of $1,107,606,000 

and rescissions of $110,229,000 for Military Construction, DefenseWide, for fiscal year 2007. In addition, the Committee recommends 

an appropriation of $44,500,000 in Title IV for projects supporting 

contingency operations related to the global war on terrorism. Together this is an increase of $63,111,000 above the fiscal year 2006 

enacted level and a decrease of $166,321,000 below the budget request. When adjusted for supplemental funding, the recommendation is $63,111,000 above the fiscal year 2006 enacted level. Within 

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provement Program, an increase of $5,000,000 above the fiscal year 

2006 level and a decrease of $5,000,000 below the budget request. 

The Committee recommends rescissions from previous appropriations to the account due to bid savings and projects cancelled as a 

result of the 2005 base realignment and closure process. The rescissions are as follows: 

Public Law/location Project title Recommended 

PL 108–132 (FY 2004): 

DC: Walter Reed AMC ...................................... Hospital Energy Plant Addition ................................ (9,000,000) 

PL 108–324 (FY 2005): 

VA: Fort Belvoir ................................................ Hospital Replacement, Phase I ............................... (43,000,000) 

PL 109–114 (FY 2006): 

VA: Fort Belvoir ................................................ Alter Air Intakes ....................................................... (1,900,000) 

VA: Fort Belvoir ................................................ Hospital Replacement, Phase II .............................. (56,329,000) 

Subtotal, PL 109–114 ............................ .................................................................................. (58,229,000) 

Total ............................................... .................................................................................. (110,229,000) 

Florida: MacDill AFB—Clinic Replacement. The Committee recommends incremental funding of this project. The Committee understands that this project was originally programmed by the Department of Defense as an incrementally funded project. After the 

Office of Management and Budget denied the Department’s request 

for incremental funding (see earlier in this report), the project was 

reprogrammed as two phases: the Clinic Replacement in fiscal year 

2007, with a follow-on Pharmacare addition in fiscal year 2008. 

Programming the project as two separate phases increases overhead costs, as the two phases will have to be done under separate 

contracts. Furthermore, since the Pharmacare phase will not be 

awarded until fiscal year 2008, the overall cost of the complete facility may actually increase due to inflation. The Committee believes that the entire project, including the Pharmacare addition, 

should be done as a single project under one contract, which will 

both control costs and ensure that the facility will be completed in 

a timely manner as an integrated whole. 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $892,219,000 

Fiscal year 2007 budget request ....................................................... 473,197,000 

Committee recommendation in the bill ............................................ 512,873,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (379,346,000) 

Fiscal year 2007 budget request ................................................ 39,676,000 

The Committee recommends an appropriation of $512,873,000 for 

Military Construction, Army National Guard, for fiscal year 2007. 

In addition, the Committee recommends an appropriation of 

$5,530,000 in Title IV for projects supporting contingency operations related to the global war on terrorism. Together this is a decrease of $373,816,000 below the fiscal year 2006 enacted level and 

an increase of $45,206,000 above the budget request. When adjusted for supplemental funding, the recommendation is $484,000 

above the fiscal year 2006 enacted level. 

New York—Camp Smith: Combined Support Maintenance Shop. 

Of the funds provided for planning and design in this account, the 

Committee directs that not less than $1,031,000 be made available 

for the design of this project. 


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Oregon—Salem: Readiness Center Addition/Alteration. Of the 

funds provided for planning and design in this account, the Committee directs that not less than $749,000 be made available for 

the design of this project. 

North Carolina—Raleigh: Armed Forces Reserve Center (Joint 

Headquarters). The Committee has previously noted the importance of this project, which is currently programmed for fiscal year 

2010 in the current Future Years Defense Plan (FYDP). The Committee recommends that the Army National Guard accelerate the 

programming of this project to fiscal year 2008, and directs the 

Guard to submit a status report on the planning and design for 

this project by December 1, 2006. 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $334,256,000 

Fiscal year 2007 budget request ....................................................... 125,788,000 

Committee recommendation in the bill ............................................ 207,088,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (127,168,000) 

Fiscal year 2007 budget request ................................................ 81,300,000 

The Committee recommends an appropriation of $207,088,000 for 

Military Construction, Air National Guard, for fiscal year 2007. 

This is a decrease of $127,168,000 below the fiscal year 2006 enacted level and an increase of $81,300,000 above the budget request. When adjusted for supplemental funding, the recommendation is $92,168,000 below the fiscal year 2006 enacted level. 

New York—Gabreski ANGB: Replace Pararescue Complex. Of the 

funds provided for planning and design in this account, the Committee directs that not less than $502,000 be made available for 

the design of this project. 

South Carolina—McEntire JRB: Wing Operations and Training 

Complex. Of the funds provided for planning and design in this account, the Committee directs that not less than $1,000,000 be made 

available for the design of this project. 

Tennessee—McGhee-Tyson ANGB: Squadron Operations Facility/ 

Relocate Main Gate. Of the funds provided for planning and design 

in this account, the Committee directs that not less than 

$1,000,000 be made available for the design of this project. 

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2006 enacted level ........................................................... $151,043,000 

Fiscal year 2007 budget request ....................................................... 166,487,000 

Committee recommendation in the bill ............................................ 167,774,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 16,731,000 

Fiscal year 2007 budget request ................................................ 1,287,000 

The Committee recommends an appropriation of $167,774,000 for 

Military Construction, Army Reserve, for fiscal year 2007. In addition, the Committee recommends an appropriation of $1,713,000 in 

Title IV for projects supporting contingency operations related to 

the global war on terrorism. Together this is an increase of 

$18,444,000 above the fiscal year 2006 enacted level and an increase of $3,000,000 above the budget request. 

California—Camp Parks: Combat Support Training Center 

Range Control Facility. Of the funds provided for planning and deVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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

$252,000 be made available for the design of this project. 

New York—Mattydale: Syracuse Armed Forces Reserve Center/ 

Organizational Maintenance Shop/Area Maintenance Support Activity/Unheated Storage. Of the funds provided for planning and 

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

$2,414,000 be made available for the design of this project. 

MILITARY CONSTRUCTION, NAVY RESERVE

Fiscal year 2006 enacted level ........................................................... $149,967,000 

Fiscal year 2007 budget request ....................................................... 48,408,000 

Committee recommendation in the bill ............................................ 55,158,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (94,809,000) 

Fiscal year 2007 budget request ................................................ 6,750,000 

The Committee recommends an appropriation of $55,158,000 for 

Military Construction, Navy Reserve, for fiscal year 2007. This is 

a decrease of $94,809,000 below the fiscal year 2006 enacted level 

and an increase of $6,750,000 above the budget request. When adjusted for supplemental funding, the recommendation is 

$25,323,000 above the fiscal year 2006 enacted level. 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2006 enacted level ........................................................... $91,009,000 

Fiscal year 2007 budget request ....................................................... 44,936,000 

Committee recommendation in the bill ............................................ 56,836,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (34,173,000) 

Fiscal year 2007 budget request ................................................ 11,900,000 

The Committee recommends an appropriation of $56,836,000 for 

Military Construction, Air Force Reserve, for fiscal year 2007. This 

is a decrease of $34,173,000 below the fiscal year 2006 enacted 

level and an increase of $11,900,000 above the budget request. 

NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

Fiscal year 2006 enacted level ........................................................... $174,789,000 

Fiscal year 2007 budget request ....................................................... 220,985,000 

Committee recommendation in the bill ............................................ 200,985,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 26,196,000 

Fiscal year 2007 budget request ................................................ (20,000,000) 

NSIP consists of annual contributions by NATO member countries. The program finances the costs of construction needed to support the roles of the major NATO commands. The investments 

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

communications and information systems, radar and navigational 

aids, and military headquarters. 

The Committee recommends an appropriation of $200,985,000 for 

the North Atlantic Treaty Organization Security Investment Program (NSIP) for fiscal year 2007. This is an increase of $26,196,000 

above the fiscal year 2006 enacted level and $20,000,000 below the 

budget request. The Committee believes the exchange rate between 

the dollar and the euro will produce savings. The Committee expects projects will be prioritized with the highest priority given to 

NATO on-going missions such as those in Iraq and Afghanistan. 


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28 

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

(INCLUDING RESCISSIONS OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $4,438,332,000 

Fiscal year 2007 budget request ....................................................... 4,084,040,000 

Committee recommendation in the bill (including rescissions) ...... 3,989,353,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (448,979,000) 

Fiscal year 2007 budget request ................................................ (94,687,000) 

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

costs for family housing privatization projects, and planning and 

design. The operation and maintenance accounts provide funds to 

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

The Committee recommends a total appropriation of $4,055,553,000 and rescissions of $66,200,000 for the family housing construction and operation and maintenance accounts for fiscal 

year 2007. This is a decrease of $448,979,000 below the fiscal year 

2006 enacted level and a decrease of $94,687,000 below the budget 

request. When adjusted for supplemental funding, the recommendation is $11,094,000 above the fiscal year 2006 enacted 

level. 

Family Housing Privatization Progress Reports.—The Committee 

directs the Department of Defense to continue submitting semi-annual progress reports on the family housing privatization program 

as directed by House Report 109–95. 

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, 

2006. 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.—The Secretary of Defense is directed to report to the Committee quarterly on the details of all 

new or renewed domestic leases entered into during the previous 

quarter that exceed $20,000 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 renewed lease agreements that exceed $30,000 per unit per 

year 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 

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struction projects and improvement projects over $2,000,000 as 

well. 

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2006 enacted level ........................................................... $528,140,000 

Fiscal year 2007 budget request ....................................................... 594,991,000 

Committee recommendation in the bill ............................................ 578,791,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 50,651,000 

Fiscal year 2007 budget request ................................................ (16,200,000) 

The Committee recommends an appropriation of $578,791,000 for 

Family Housing Construction, Army, for fiscal year 2007. This is 

an increase of $50,651,000 above the fiscal year 2006 enacted level 

and a decrease of $16,200,000 below the budget request. The reduction from the request is taken from family housing improvements 

construction for general officers quarters at Fort McNair. The appropriation includes $241,800,000 to construct new family housing 

units, $320,659,000 to improve existing units, and $16,332,000 for 

planning and design. This funding level supports the elimination of 

9,925 inadequate family housing units. 

FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2006 enacted level ........................................................... $795,953,000 

Fiscal year 2007 budget request ....................................................... 676,829,000 

Committee recommendation in the bill ............................................ 674,657,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (121,296,000) 

Fiscal year 2007 budget request ................................................ (2,172,000) 

The Committee recommends an appropriation of $674,657,000 for 

Family Housing Operation and Maintenance, Army, for fiscal year 

2007. This is a decrease of $121,296,000 below the fiscal year 2006 

enacted level and a decrease of $2,172,000 below the budget request for repair of general officers quarters in Stuttgart, Germany. 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2006 enacted level ........................................................... $302,918,000 

Fiscal year 2007 budget request ....................................................... 305,071,000 

Committee recommendation in the bill ............................................ 308,956,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 6,038,000 

Fiscal year 2007 budget request ................................................ 3,885,000 

The Committee recommends an appropriation of $308,956,000 for 

Family Housing Construction, Navy and Marine Corps, for fiscal 

year 2007. This is an increase of $6,038,000 above the fiscal year 

2006 enacted level and an increase of $3,885,000 above the budget 

request. When adjusted for supplemental funding, the recommendation is $92,203,000 above the fiscal year 2006 enacted 

level. The appropriation includes $126,025,000 to construct new 

family housing units, $180,146,000 to improve existing units, and 

$2,785,000 for planning and design. This funding level supports the 

elimination of 7,811 inadequate family housing units. 

California—Twentynine Palms: Install Air Conditioning—Vista 

Del Sol, Phase 1. Of the funds provided for construction improvements in this account, the Committee directs that no less than 

$3,700,000 be made available for this project. 


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FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2006 enacted level ........................................................... $631,662,000 

Fiscal year 2007 budget request ....................................................... 509,126,000 

Committee recommendation in the bill ............................................ 509,126,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (122,536,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $509,126,000 for 

Family Housing Operation and Maintenance, Navy and Marine 

Corps, for fiscal year 2007. This is a decrease of $122,536,000 

below the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $73,647,000 below the fiscal year 2006 enacted 

level. 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

(INCLUDING RESCISSIONS OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $1,324,968,000 

Fiscal year 2007 budget request ....................................................... 1,183,138,000 

Committee recommendation in the bill (including rescissions) ...... 1,102,938,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (222,030,000) 

Fiscal year 2007 budget request ................................................ (80,200,000) 

The Committee recommends an appropriation of $1,169,138,000 

and rescissions of $66,200,000 for Family Housing Construction, 

Air Force, for fiscal year 2007. This is a decrease of $222,030,000 

below the fiscal year 2006 enacted level and a decrease of 

$80,200,000 below the budget request. When adjusted for supplemental funding, the recommendation is $55,970,000 above the fiscal year 2006 enacted level. The recommendation includes a reduction from the request for an Air Force programming error. The appropriation includes $752,159,000 to construct new family housing 

units, $403,777,000 to improve existing units, and $13,202,000 for 

planning and design. This funding level supports the elimination of 

17,457 inadequate family housing units. 

The Committee recommends rescissions from previous appropriations to the account. The Committee believes that these funds are 

not required to execute any currently scheduled family housing 

projects. The Committee notes that the Air Force frequently reprograms funds within the Family Housing Construction account. In 

order to allow the Air Force to maintain this flexibility, the Committee recommends general rescissions as follows: ¥$23,400,000 

from P.L. 108–324 (fiscal year 2005), and ¥$42,800,000 from P.L. 

109–114 (fiscal year 2006). 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2006 enacted level ........................................................... $806,289,000 

Fiscal year 2007 budget request ....................................................... 755,071,000 

Committee recommendation in the bill ............................................ 755,071,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (51,218,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $755,071,000 for 

Family Housing Operation and Maintenance, Air Force, for fiscal 


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31 

year 2007. This is a decrease of $51,218,000 below the fiscal year 

2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $4,199,000 

below the fiscal year 2006 enacted level. 

FAMILY HOUSING CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2006 enacted level ........................................................... ............................

Fiscal year 2007 budget request ....................................................... $8,808,000 

Committee recommendation in the bill ............................................ 8,808,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 8,808,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $8,808,000 for 

Family Housing Construction, Defense-Wide, for fiscal year 2007. 

This is an increase of $8,808,000 above the fiscal year 2006 enacted 

level and the same as the budget request. 

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2006 enacted level ........................................................... $45,927,000 

Fiscal year 2007 budget request ....................................................... 48,506,000 

Committee recommendation in the bill ............................................ 48,506,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 2,579,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $48,506,000 for 

Family Housing Operation and Maintenance, Defense-Wide, for fiscal year 2007. This is an increase of $2,579,000 above the fiscal 

year 2006 enacted level and the same as the budget request. 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2006 enacted level ........................................................... $2,475,000 

Fiscal year 2007 budget request ....................................................... 2,500,000 

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

Comparison with: 

Fiscal year 2006 enacted level ................................................... 25,000 

Fiscal year 2007 budget request ................................................ ............................

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. 

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

the Department of Defense Family Housing Improvement Fund 

(FHIF) for fiscal year 2007. This is an increase of $25,000 above 

the fiscal year 2006 enacted level and the same as the budget request. 


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CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2006 enacted level ........................................................... ............................

Fiscal year 2007 budget request ....................................................... $130,993,000 

Committee recommendation in the bill ............................................ 90,993,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 90,993,000 

Fiscal year 2007 budget request ................................................ (40,000,000) 

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

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

the Chemical Demilitarization program. 

The Committee recommends an appropriation of $90,993,000 for 

Chemical Demilitarization Construction, Defense-Wide, for fiscal 

year 2007. This is an increase of $90,993,000 above the fiscal year 

2006 enacted level and a decrease of $40,000,000 below the budget 

request. 

The Committee commends the Department for requesting funds 

for the Chemical Demilitarization program and is committed to the 

United States treaty obligations in this area. However, the Committee notes that there are currently sufficient funds to continue 

planning activities and begin construction in fiscal year 2007. Additionally, the Committee is awaiting the revised program baseline 

decisions that are due later this year. Therefore, the Committee 

has reduced the recommended funding level by $40,000,000. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 1990 

Fiscal year 2006 enacted level ........................................................... $252,279,000 

Fiscal year 2007 budget request ....................................................... 191,220,000 

Committee recommendation in the bill ............................................ 216,220,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (36,059,000) 

Fiscal year 2007 budget request ................................................ 25,000,000 

The Committee recommends an appropriation of $216,220,000 for 

the Base Realignment and Closure Account 1990 for fiscal year 

2007. This is a decrease of $36,059,000 below the fiscal year 2006 

enacted level and an increase of $25,000,000 above the budget request to accelerate cleanup at closed installations. The Committee 

is aware that there is a backlog of remaining requirements, particularly for cleanup of unexploded ordnance, for closed installations dating back to the 1988 BRAC round. The Committee is concerned by the slow pace of progress in remediating these properties 

and directs the Department of Defense to make funding for previous BRAC rounds a higher priority. 

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005 

Fiscal year 2006 enacted level ........................................................... $1,489,421,000 

Fiscal year 2007 budget request ....................................................... 5,626,223,000 

Committee recommendation in the bill ............................................ 5,309,876,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 3,820,455,000 

Fiscal year 2007 budget request ................................................ (316,347,000) 

The Committee recommends an appropriation of $5,309,876,000 

for the Base Realignment and Closure Account 2005 for fiscal year 

2007. This is an increase of $3,820,455,000 above the fiscal year 


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33 

2006 enacted level and a decrease of $316,347,000 below the budget request. 

BASIC ALLOWANCE FOR HOUSING, ARMY

Fiscal year 2006 enacted level ........................................................... $3,880,723,000 

Fiscal year 2007 budget request ....................................................... 3,687,905,000 

Committee recommendation in the bill ............................................ 3,687,905,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (192,818,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $3,687,905,000 

for Basic Allowance for Housing, Army for fiscal year 2007. This is 

a decrease of $192,818,000 below the fiscal year 2006 enacted level 

and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, NAVY

Fiscal year 2006 enacted level ........................................................... $3,511,570,000 

Fiscal year 2007 budget request ....................................................... 4,135,061,000 

Committee recommendation in the bill ............................................ 4,135,061,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 623,491,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $4,135,061,000 

for Basic Allowance for Housing, Navy for fiscal year 2007. This is 

an increase of $623,491,000 above the fiscal year 2006 enacted 

level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, MARINE CORPS

Fiscal year 2006 enacted level ........................................................... $1,166,686,000 

Fiscal year 2007 budget request ....................................................... 1,350,921,000 

Committee recommendation in the bill ............................................ 1,350,921,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 184,235,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $1,350,921,000 

for Basic Allowance for Housing, Marine Corps for fiscal year 2007. 

This is an increase of $184,235,000 above the fiscal year 2006 enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, AIR FORCE

Fiscal year 2006 enacted level ........................................................... $3,168,599,000 

Fiscal year 2007 budget request ....................................................... 2,934,327,000 

Committee recommendation in the bill ............................................ 2,934,327,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (234,272,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $2,934,327,000 

for Basic Allowance for Housing, Air Force for fiscal year 2007. 

This is a decrease of $234,272,000 below the fiscal year 2006 enacted level and the same as the budget request. When adjusted for 

supplemental funding, the recommendation is $227,746,000 below 

the fiscal year 2006 enacted level. 


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BASIC ALLOWANCE FOR HOUSING, ARMY NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $477,113,000 

Fiscal year 2007 budget request ....................................................... 469,109,000 

Committee recommendation in the bill ............................................ 469,109,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (8,004,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $469,109,000 for 

Basic Allowance for Housing, Army National Guard for fiscal year 

2007. This is a decrease of $8,004,000 below the fiscal year 2006 

enacted level and the same as the budget request. When adjusted 

for supplemental funding, the recommendation is $24,290,000 

above the fiscal year 2006 enacted level. 

BASIC ALLOWANCE FOR HOUSING, AIR NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $248,685,000 

Fiscal year 2007 budget request ....................................................... 277,533,000 

Committee recommendation in the bill ............................................ 277,533,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 28,848,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $277,533,000 for 

Basic Allowance for Housing, Air National Guard for fiscal year 

2007. This is an increase of $28,848,000 above the fiscal year 2006 

enacted level and the same as the budget request. When adjusted 

for supplemental funding, the recommendation is $39,137,000 

above the fiscal year 2006 enacted level. 

BASIC ALLOWANCE FOR HOUSING, ARMY RESERVE

Fiscal year 2006 enacted level ........................................................... $307,003,000 

Fiscal year 2007 budget request ....................................................... 347,607,000 

Committee recommendation in the bill ............................................ 347,607,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 40,604,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $347,607,000 for 

Basic Allowance for Housing, Army Reserve for fiscal year 2007. 

This is an increase of $40,604,000 above the fiscal year 2006 enacted level and the same as the budget request. When adjusted for 

supplemental funding, the recommendation is $40,965,000 above 

the fiscal year 2006 enacted level. 

BASIC ALLOWANCE FOR HOUSING, NAVY RESERVE

Fiscal year 2006 enacted level ........................................................... $190,194,000 

Fiscal year 2007 budget request ....................................................... 208,838,000 

Committee recommendation in the bill ............................................ 208,838,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 18,644,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $208,838,000 for 

Basic Allowance for Housing, Navy Reserve for fiscal year 2007. 

This is an increase of $18,644,000 above the fiscal year 2006 enacted level and the same as the budget request. When adjusted for 

supplemental funding, the recommendation is $19,697,000 above 

the fiscal year 2006 enacted level. 


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BASIC ALLOWANCE FOR HOUSING, MARINE CORPS RESERVE

Fiscal year 2006 enacted level ........................................................... $40,134,000 

Fiscal year 2007 budget request ....................................................... 43,082,000 

Committee recommendation in the bill ............................................ 43,082,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 2,948,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $43,082,000 for 

Basic Allowance for Housing, Marine Corps Reserve for fiscal year 

2007. This is an increase of $2,948,000 above the fiscal year 2006 

enacted level and the same as the budget request. 

BASIC ALLOWANCE FOR HOUSING, AIR FORCE RESERVE

Fiscal year 2006 enacted level ........................................................... $69,442,000 

Fiscal year 2007 budget request ....................................................... 76,218,000 

Committee recommendation in the bill ............................................ 76,218,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 6,776,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $76,218,000 for 

Basic Allowance for Housing, Air Force Reserve for fiscal year 

2007. This is an increase of $6,776,000 above the fiscal year 2006 

enacted level and the same as the budget request. When adjusted 

for supplemental funding, the recommendation is $6,861,000 above 

the fiscal year 2006 enacted level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

Fiscal year 2006 enacted level ........................................................... $1,832,607,000 

Fiscal year 2007 budget request ....................................................... 1,810,774,000 

Committee recommendation in the bill ............................................ 1,810,774,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (21,833,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $1,810,774,000 

for facilities sustainment, restoration and modernization, Army for 

fiscal year 2007. This is a decrease of $21,833,000 below the fiscal 

year 2006 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, NAVY

Fiscal year 2006 enacted level ........................................................... $1,547,020,000 

Fiscal year 2007 budget request ....................................................... 1,201,313,000 

Committee recommendation in the bill ............................................ 1,201,313,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (345,707,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $1,201,313,000 

for Facilities Sustainment, Restoration and Modernization, Navy 

for fiscal year 2007. This is a decrease of $345,707,000 below the 

fiscal year 2006 enacted level and the same as the budget request. 

When adjusted for supplemental funding, the recommendation is 

$130,208,000 below the fiscal year 2006 enacted level. 


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FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, MARINE CORPS

Fiscal year 2006 enacted level ........................................................... $548,420,000 

Fiscal year 2007 budget request ....................................................... 473,141,000 

Committee recommendation in the bill ............................................ 473,141,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (75,279,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $473,141,000 for 

Facilities Sustainment, Restoration and Modernization, Marine 

Corps for fiscal year 2007. This is a decrease of $75,279,000 below 

the fiscal year 2006 enacted level and the same as the budget request. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

FORCE

Fiscal year 2006 enacted level ........................................................... $1,896,251,000 

Fiscal year 2007 budget request ....................................................... 1,684,019,000 

Committee recommendation in the bill ............................................ 1,684,019,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (212,232,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $1,684,019,000 

for Facilities Sustainment, Restoration and Modernization, Air 

Force for fiscal year 2007. This is a decrease of $212,232,000 below 

the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $143,227,000 below the fiscal year 2006 enacted level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, 

DEFENSE-WIDE

Fiscal year 2006 enacted level ........................................................... $120,969,000 

Fiscal year 2007 budget request ....................................................... 86,386,000 

Committee recommendation in the bill ............................................ 86,386,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (34,583,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $86,386,000 for 

Facilities Sustainment, Restoration and Modernization, DefenseWide for fiscal year 2007. This is a decrease of $34,583,000 below 

the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $29,345,000 below the fiscal year 2006 enacted level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $441,796,000 

Fiscal year 2007 budget request ....................................................... 387,882,000 

Committee recommendation in the bill ............................................ 387,882,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (53,914,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $387,882,000 for 

Facilities Sustainment, Restoration and Modernization, Army National Guard for fiscal year 2007. This is a decrease of $53,914,000 

below the fiscal year 2006 enacted level and the same as the budgVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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37 

et request. When adjusted for supplemental funding, the recommendation is $4,697,000 below the fiscal year 2006 enacted 

level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

NATIONAL GUARD

Fiscal year 2006 enacted level ........................................................... $191,550,000 

Fiscal year 2007 budget request ....................................................... 255,322,000 

Committee recommendation in the bill ............................................ 255,322,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 63,772,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $255,322,000 for 

Facilities Sustainment, Restoration and Modernization, Air National Guard for fiscal year 2007. This is an increase of $63,772,000 

above the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $77,329,000 above the fiscal year 2006 enacted 

level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, ARMY

RESERVE

Fiscal year 2006 enacted level ........................................................... $203,454,000 

Fiscal year 2007 budget request ....................................................... 215,890,000 

Committee recommendation in the bill ............................................ 215,890,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 12,436,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $215,890,000 for 

Facilities Sustainment, Restoration and Modernization, Army Reserve for fiscal year 2007. This is an increase of $12,436,000 above 

the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $13,564,000 above the fiscal year 2006 enacted level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, NAVY

RESERVE

Fiscal year 2006 enacted level ........................................................... $377,134,000 

Fiscal year 2007 budget request ....................................................... 52,136,000 

Committee recommendation in the bill ............................................ 52,136,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (324,998,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $52,136,000 for 

Facilities Sustainment, Restoration and Modernization, Navy Reserve for fiscal year 2007. This is a decrease of $324,998,000 below 

the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $14,974,000 below the fiscal year 2006 enacted level. 


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FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, MARINE CORPS RESERVE

Fiscal year 2006 enacted level ........................................................... $11,098,000 

Fiscal year 2007 budget request ....................................................... 9,579,000 

Committee recommendation in the bill ............................................ 9,579,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (1,519,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $9,579,000 for 

Facilities Sustainment, Restoration and Modernization, Marine 

Corps Reserve for fiscal year 2007. This is a decrease of $1,519,000 

below the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $425,000 below the fiscal year 2006 enacted level. 

FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION, AIR

FORCE RESERVE

Fiscal year 2006 enacted level ........................................................... $51,777,000 

Fiscal year 2007 budget request ....................................................... 59,849,000 

Committee recommendation in the bill ............................................ 59,849,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 8,072,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $59,849,000 for 

Facilities Sustainment, Restoration and Modernization, Air Force 

Reserve for fiscal year 2007. This is an increase of $8,072,000 

above the fiscal year 2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is $9,989,000 above the fiscal year 2006 enacted 

level. 

ENVIRONMENTAL RESTORATION, ARMY

Fiscal year 2006 enacted level ........................................................... $403,786,000 

Fiscal year 2007 budget request ....................................................... 413,794,000 

Committee recommendation in the bill ............................................ 413,794,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 10,008,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $413,794,000 for 

Environmental Restoration, Army for fiscal year 2007. This is an 

increase of $10,008,000 above the fiscal year 2006 enacted level 

and the same as the budget request. 

ENVIRONMENTAL RESTORATION, NAVY

Fiscal year 2006 enacted level ........................................................... $302,222,000 

Fiscal year 2007 budget request ....................................................... 304,409,000 

Committee recommendation in the bill ............................................ 304,409,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 2,187,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $304,409,000 for 

Environmental Restoration, Navy for fiscal year 2007. This is an 

increase of $2,187,000 above the fiscal year 2006 enacted level and 

the same as the budget request. 


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ENVIRONMENTAL RESTORATION, AIR FORCE

Fiscal year 2006 enacted level ........................................................... $402,396,000 

Fiscal year 2007 budget request ....................................................... 423,871,000 

Committee recommendation in the bill ............................................ 423,871,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 21,475,000 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $423,871,000 for 

Environmental Restoration, Air Force for fiscal year 2007. This is 

an increase of $21,475,000 above the fiscal year 2006 enacted level 

and the same as the budget request. 

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

Fiscal year 2006 enacted level ........................................................... $27,885,000 

Fiscal year 2007 budget request ....................................................... 18,431,000 

Committee recommendation in the bill ............................................ 18,431,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (9,454,000) 

Fiscal year 2007 budget request ................................................ ............................

The Committee recommends an appropriation of $18,431,000 for 

Environmental Restoration, Defense-Wide for fiscal year 2007. This 

is a decrease of $9,454,000 below the fiscal year 2006 enacted level 

and the same as the budget request. 

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

Fiscal year 2006 enacted level ........................................................... $254,352,000 

Fiscal year 2007 budget request ....................................................... 242,790,000 

Committee recommendation in the bill ............................................ 257,790,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 3,438,000 

Fiscal year 2007 budget request ................................................ 15,000,000 

The Committee recommends an appropriation of $257,790,000 for 

Environmental Restoration, Formerly Used Defense Sites for fiscal 

year 2007. This is an increase of $3,438,000 above the fiscal year 

2006 enacted level and an increase of $15,000,000 above the budget 

request. 

The Committee understands that this is a large, nationwide 

issue and urges the Department to increase funding levels in future years. 

DEFENSE HEALTH PROGRAM

(INCLUDING RESCISSIONS OF FUNDS) 

Fiscal year 2006 enacted level ........................................................... $20,340,550,000 

Fiscal year 2007 budget request ....................................................... 21,025,121,000 

Committee recommendation in the bill (including rescissions) ...... 21,025,121,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 684,571,000 

Fiscal year 2007 budget request ................................................ ............................

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 Military Health System (MHS) to ensure the nation 

has available at all times a healthy force supported by a combat 


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40 

ready health care system and to provide cost effective, quality 

healthcare. The program provides medical care for 9.2 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 Committee recommends a total appropriation of 

$21,025,121,000 for the Defense Health Program (DHP) for fiscal 

year 2007. This is an increase of $684,571,000 above the fiscal year 

2006 enacted level and the same as the budget request. When adjusted for supplemental funding, the recommendation is 

$1,006,121,000 above the fiscal year 2006 enacted level. 

Mental Health.—The Committee is very concerned about the 

mental health and wellness of troops returning from conflicts overseas. The full impact of the emotional toll that combat takes from 

our troops may not be fully realized for years into the future. The 

Committee believes that mental health and wellness need to be integrated into all aspects of military training, combat and support 

and that care cannot stop when the soldier returns home from the 

battlefield. The Department of Defense should be commended for 

the work it is doing and the improvements that have been made 

in the mental health area, but more needs to be done. The primary 

reason for soldiers failing to seek treatment for mental health 

issues is the stigma associated with seeking help. The Committee 

feels that the military needs to begin to integrate mandatory mental health services and counseling into the daily activities of soldiers and has included a $25,000,000 increase in funds for this purpose. By making these programs a mandatory part of a soldier’s 

tour of duty, the stigma associated with seeking care is eliminated. 

The Committee directs the Department of Defense to use the increased funds to initiate programs that make mental health screening and counseling a mandatory part of the operating procedures 

of soldiers in battle. The Department of Defense should report to 

the Committee on the use of these funds and an assessment of future funding requirements for this initiative by December 15, 2006. 

Further, the Committee directs the Department to continue to 

work with the Department of Veterans Affairs to study mental 

health issues, particularly Post Traumatic Stress Disorder (PTSD). 

The Committee has included Post Traumatic Stress Disorder as a 

disease available for study under the Peer-Reviewed Medical Research Fund in the Research, Development, Test, and Evaluation 

section of this appropriation and encourages increased research in 

this area. 

Sustaining the Benefit.—The goal of the Committee is to ensure 

that the absolute highest quality health care is available to military personnel, retirees, and their families. 

The Defense Health Program, like the rest of the Nation, is facing the challenges of rising health care costs. This issue is not new. 

In addition to health care inflation, the program is experiencing an 

increase in the number of beneficiaries, increased beneficiary demand, and military transformation all of which are placing greater 

demands on the system. However, the Department of Defense has 

had existing authority to increase some fees and co-pays and has 

failed to use this authority to make modest annual fee adjustments 

over time. The result of this is that we are now faced with large 


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41 

fee increases for beneficiaries and an extreme funding deficit if fee 

increases are not enacted. 

The budget request assumes a number of legislative changes that 

have not been adopted by the Congress. The proposal to increase 

co-pays and enrollment fees to combat the rise in health care costs 

is a legislative proposal that is being considered by the Authorization Committees of the House and Senate. Additionally, the proposal to provide federal contract prices for drugs at TRICARE retail outlets has not yet been transmitted to Congress for consideration. The Committee cannot responsibly address the funding implications of these proposals until these legislative issues are resolved. The Committee will continue to monitor the progress of 

these proposals throughout the appropriations process. 

Military Health System Office of Transformation.—The Committee supports the establishment of the Office of Transformation 

for the Military Health System, but feels that this office should be 

working closely in conjunction with the Department of Veterans Affairs on issues that affect service men and women, specifically, 

seamless transition and co-location of facilities. The Committee directs the Department to report on the extent to which the Department of Veterans Affairs is integrated into the Office of Transformation by December 15, 2006. 

Unified Medical Command.—The Committee understands that 

there has been some interest in creating a unified medical command structure to direct the management of health care services 

in the Department of Defense. The Committee directs the Department of Defense to report on the feasibility of this option and the 

potential costs savings associated with this command structure by 

December 15, 2006. 

Madigan Army Medical Trauma Center.—The Committee is 

aware of the critical needs at Madigan Army Medical Trauma Center and expects the Department of Defense to continue to support 

the needs of this facility at or above the fiscal year 2006 funding 

level. 

Avian Influenza.—The Committee is concerned about increased 

cases of avian influenza around the globe and the potential for pandemic influenza outbreak. Troops typically share close living quarters and work in situations where the spread of a virus could potentially impact overall troop readiness. The Committee understands that the Department is currently conducting basic research 

on avian influenza, but is unclear on what steps are being taken 

to protect active troop levels if there is an outbreak. The Committee directs the Department of Defense to report on its plans to 

protect troop readiness during an avian influenza outbreak scenario by December 15, 2006. 

Fort Drum Regional Health Planning Organization.—The Committee fully supports the Fort Drum Regional Health Planning Organization pilot project, authorized in last year’s Defense Authorization bill. The Committee believes that innovative options for addressing health care needs in military communities need to be investigated, particularly as military transformation and the base realignment and closure process move forward. The Committee directs the Department of Defense to provide $400,000 for this pilot 

project and report on its progress by December 15, 2006. 


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Armed Forces Institute of Pathology.—The Committee is aware 

that the Department is considering a realignment of the Armed 

Forces Institute of Pathology (AFIP), and that one option is the relocation of AFIP components to the Uniformed Services University 

of the Health Sciences. The Committee remains strongly committed 

to maintaining the AFIP Tissue Repository within the Department 

of Defense. The Tissue Repository is recognized for its tremendous 

national value, housing over a quarter of the nation’s tissue that 

is available for cancer and drug research. Therefore, the Department is directed to report to the Committee on its plans for AFIP 

including plans to maintain the Tissue Repository, pathology consultations, training and education functions by November 1, 2006. 

Unobligated Balances.—The Committee is concerned with the 

amount of unobligated balances that are annually turned back to 

the Treasury. While the Committee understands the need to finalize remaining contracts and obligations, the amount of funds being 

canceled and returned to the Treasury is unacceptable. The Committee believes that the Department of Defense should be fiscally 

responsible in its budgeting of the Defense Health Program and 

should make annual adjustments to the budget activity groups 

based on prior year execution. The Committee does not agree with 

the proposal to increase the amount of funds that can be carried 

into the next fiscal year to three percent, and based upon the concerns stated above, has reduced that percentage to one percent. 

The Committee directs the Department to report on its plan to reduce the amount of funding returned to the Treasury by December 

15, 2006. 

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. 

Reprogramming Procedures.—The Committee has included 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. 

OPERATION AND MAINTENANCE

Fiscal year 2006 enacted level ........................................................... $19,399,747,000 

Fiscal year 2007 budget request ....................................................... 20,498,163,000 

Committee recommendation in the bill ............................................ 20,178,163,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 778,416,000 

Fiscal year 2007 budget request ................................................ (320,000,000) 

The Committee recommends an appropriation of $20,178,163,000 

for operation and maintenance for fiscal year 2007. This is an increase of $778,416,000 above the fiscal year 2006 enacted level and 

a decrease of $320,000,000 below the budget request. When adjusted for supplemental funding, the recommendation is 


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$1,071,374,000 above the fiscal year 2006 enacted level. The Committee’s recommendations are as follows: 

[In thousands of dollars] 

Activity Budget request Committee recommendation 

Operations and Maintenance ...................................................................................................... 20,249,163 20,178,163 

In-House Care .............................................................................................................................. 5,592,799 5,513,899 

Mental Health Initiative ...................................................................................................... ...................... 25,000 

Pharmacy Reduction ........................................................................................................... ...................... ¥48,000 

Reversal of DOD/VA Joint Incentives Fund Payment .......................................................... ...................... ¥15,858 

Unobligated Balances—Joint Incentive Fund .................................................................... ...................... ¥15,042 

Unobligated Balances—Operations and Maintenance ...................................................... ...................... ¥25,000 

Private Sector Care ...................................................................................................................... 10,638,784 10,638,784 

Consolidated Health Care Support .............................................................................................. 1,219,873 1,219,873 

Information Management ............................................................................................................ 904,899 912,799 

Integrated Clinical Systems Collaboration ......................................................................... ...................... 1,500 

Medical Records Digital Conversion at Bethesda and Walter Reed ................................. ...................... 1,000 

Interactive Internet at Bethesda ........................................................................................ ...................... 1,900 

Trauma Registry and Research Database ......................................................................... ...................... 3,500 

Management Activities ................................................................................................................ 237,388 237,388 

Education and Training ............................................................................................................... 460,082 460,082 

Base Operations/Communications ............................................................................................... 1,195,338 1,195,338 

Mental Health Funding.—The Committee, as stated previously, 

has included an increase of $25,000,000 to begin to integrate mandatory mental health services and counseling into the standard operating procedures for soldiers. 

Pharmacy Reduction in Direct Care.—The Committee remains 

concerned that the current execution rate for pharmaceuticals does 

not justify the requested increase in funding. The Committee therefore reduces the amount provided for In-House Care by 

$48,000,000. 

TRICARE Mail Order Pharmacy.—The Committee believes that 

the Defense Health Program could realize additional savings by increased use of the mail-order pharmacy option. In previous years, 

the Committee asked the Defense Health Program to increase the 

use of this option for beneficiaries through marketing and education. This has had little effect. The Committee believes that the 

Defense Health Program should investigate the option of making 

the mail order pharmacy mandatory, to the maximum extent possible, for beneficiaries using long-term maintenance pharmaceuticals. The Department should report to the Committee on its 

plans to do this by December 15, 2006. 

Joint Incentive Fund.—The Committee is concerned about the 

large amount of carryover funding in the Departments of Defense 

and Veterans Affairs Joint Incentive Fund and held a hearing on 

the issue this year. While the Committee believes that many of the 

issues that have precluded the funding from being spent have been 

resolved, there is still a large amount of funding that remains 

unallocated after four years of authorization. The Committee does 

not agree to the proposed increase of $15,858,000 for payment into 

the fund for fiscal year 2007. In addition, the Committee has rescinded $15,042,000 from unobligated balances in the Joint Incentive Fund. 

Unobligated Balances.—The Committee has rescinded 

$25,000,000 in unobligated operation and maintenance funding and 

has shifted this funding to the mental health initiative described 

above. 


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Information Technology.—The Committee has included funding 

in the Information Technology account to continue and complete 

several ongoing projects. Funds are included to continue the Integrated Systems Collaboration Project in North Carolina, continue 

digital conversion of medical records at Bethesda and Walter Reed, 

establish interactive internet capabilities for wounded soldiers at 

Bethesda Naval Hospital, and to complete the Trauma Registry 

and Research Database. 

The Committee fully supports the requested increase of $4,644,000 for the Defense Medical Logistics Standard Support 

(DMLSS) and Blood Standard Support. 

Carryover Funds.—The Committee does not agree to proposed 

bill language that increases the amount of funding available for 

carryover into the next fiscal year to three percent, and because of 

the amount of funding being cancelled and returned to the Treasury every year, has reduced this carryover percentage to one percent. 

PROCUREMENT

Fiscal year 2006 enacted level ........................................................... $403,920,000 

Fiscal year 2007 budget request ....................................................... 396,355,000 

Committee recommendation in the bill ............................................ 402,855,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (1,065,000) 

Fiscal year 2007 budget request ................................................ 6,500,000 

The Committee recommends an appropriation of $402,855,000 for 

procurement for fiscal year 2007. This is a decrease of $1,065,000 

below the fiscal year 2006 enacted level and an increase of 

$6,500,000 above the budget request. When adjusted for supplemental funding, the recommendation is $27,527,000 above the fiscal year 2006 enacted level. The Committee’s recommendation is as 

follows: 

[In thousands of dollars] 

Activity Budget request Committee recommendation 

Procurement ................................................................................................................................. 396,355 402,855 

Protected Health Information Initiative .............................................................................. ...................... 3,000 

Air Force Surgeon General Server Consolidation Initiative ................................................ ...................... 3,500 

The Committee has included funding to continue the protected 

health information initiative and the Air Force general server consolidation program. The Committee believes that in future years, 

these programs should be integrated into an overall Defense-Wide 

plan for upgrading and consolidating information technology hardware and developing data standards. The Committee directs the 

Department to report back to the Committee on its plan for upgrading, replacement, and consolidation of information technology 

hardware by March 1, 2007. 

Procurement of Information Technology Systems.—The Committee is concerned with the increased number of requests it receives for procuring information technology systems for the Defense 

Health Program. Many of these requests are for geographically localized systems to improve information sharing with the Department of Veterans Affairs, consolidating and upgrading hardware, 


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software packages for reviewing and auditing data, geographic information system tools, and assorted other information technology 

issues. While many of these requests represent worthy products, 

implementing multiple systems in multiple locations could ultimately lead to more problems with system interoperability rather 

than fewer problems. The Committee directs the Department to include a detailed report on its information technology needs in future budget submissions. The Committee will be reluctant to fund 

projects that are geographically localized or cannot be implemented 

Defense-Wide in the future. 

RESEARCH AND DEVELOPMENT

Fiscal year 2006 enacted level ........................................................... $536,883,000 

Fiscal year 2007 budget request ....................................................... 130,603,000 

Committee recommendation in the bill ............................................ 444,103,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (92,780,000) 

Fiscal year 2007 budget request ................................................ 313,500,000 

The Committee recommends an appropriation of $444,103,000 for 

research and development for fiscal year 2007. This is a decrease 

of $92,780,000 below the fiscal year 2006 enacted level and an increase of $313,500,000 above the budget request. The Committee’s 

recommendation is as follows: 

[In thousands of dollars] 

Activity Budget request Committee recommendation 

Research, Development, Testing and Evaluation ........................................................................ 130,603 444,103 

Peer Reviewed Breast Cancer Research Program .............................................................. ...................... 115,000 

Peer Reviewed Ovarian Cancer Research .......................................................................... ...................... 15,000 

Peer Reviewed Prostate Cancer Research Program ........................................................... ...................... 80,000 

Peer Reviewed Medical Research Program ........................................................................ ...................... 45,000 

Advanced Military Wound Healing and Treatment ............................................................. ...................... 1,900 

Amyotrophic Lateral Sclerosis (ALS) ................................................................................... ...................... 2,000 

Bethesda Hospital Emergency Preparedness Partnership ................................................. ...................... 5,000 

Biomolecular Materials Composites Research Program .................................................... ...................... 1,000 

Copper Antimicrobial Research Program ........................................................................... ...................... 2,000 

DOD Global HIV/AIDS Prevention Program ......................................................................... ...................... 7,000 

Downed Pilot Forward Osmosis Water Filtration System ................................................... ...................... 2,500 

Early Diagnosis, Treatment and Care of Cancer Patients ................................................. ...................... 2,500 

Leukemia Research (CMLRP) .............................................................................................. ...................... 5,000 

Medical Surveillance Technology—Clinical Looking Glass ................................................ ...................... 2,100 

Metabolic Defense Research Program ................................................................................ ...................... 2,500 

Microencapsulation and Vaccine Delivery Research .......................................................... ...................... 3,000 

Muscle Research Consortium ............................................................................................. ...................... 3,500 

Periscopic Surgery Research .............................................................................................. ...................... 2,500 

Post Traumatic Stress Disorder Center at Phoebe Putney Medical Center ....................... ...................... 2,000 

Stress Disorder Research Initiative at Fort Hood .............................................................. ...................... 3,500 

Tuberous Sclerosis Complex (TSC) ..................................................................................... ...................... 5,000 

United States Military Cancer Care Institute at WRAMC .................................................. ...................... 2,500 

Water-Related Viral Disease Countermeasures for Air Force Medical Service .................. ...................... 3,000 

Peer Reviewed Cancer Research.—The Committee has provided 

$210,000,000 for Peer Reviewed Cancer Research for Breast, Ovarian, and Prostate Cancers. 

Peer Reviewed Medical Research Program.—The Committee has 

provided $45,000,000 for the Peer Reviewed Medical Research Program. The Committee recommends the following issues as candidates for research: autism, chronic epilepsy, tissue transplant 

technology, duchenne and limb girdle muscular dystrophy, 


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46 

hemastasis and thrombosis, immunology research, manganese research, obesity and nutritional factors in military health, polycystic 

kidney disease, prader-willi syndrome, pulmonary hypertension, 

post traumatic stress disorder, lupus, and eye and vision research. 

The Committee has included post traumatic stress disorder in 

this fund and encourages increased research in this area. Much 

more research needs to be initiated to determine the most effective 

treatment methods for this disorder as more troops return from operations in Iraq and Afghanistan. 

ADMINISTRATIVE PROVISIONS

The Administration proposed eliminating several administrative 

provisions enacted in the Military Construction, Military Quality of 

Life and Veterans Affairs Appropriations Act, 2006 (P.L. 109–114), 

including sections 111, 113, 118, 121, 122, 125, 126, 128, 129, and 

130. 

The Administration proposed eliminating three general provisions enacted in the Department of Defense Appropriations Act, 

2006 (P.L. 109–148), including sections 8049, 8051, and 8085(b). 

The Administration proposed one new administrative provision 

to allow for the transfer of expired funds to the ‘‘Foreign Currency 

Fluctuations, Construction, Defense’’ account. 

The bill includes 34 provisions that were included in the fiscal 

year 2006 appropriations bill and one new provision proposed by 

the Administration. The administrative provisions included in the 

bill are as follows: 

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

Section 102 permits the hire of passenger motor vehicles. 

Section 103 permits funds to be expended on the construction of 

defense access roads under certain circumstances. 

Section 104 prohibits construction of new bases in the United 

States without a specific appropriation. 

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

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

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

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

funds have been appropriated. 

Section 107 limits the use of minor construction funds to be 

transferred or relocated from one installation to another. 

Section 108 prohibits the procurement of steel unless American 

producers, fabricators, and manufacturers have been allowed to 

compete. 

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

in foreign nations. 

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

Section 111 establishes a preference for American architectural 

and engineering services where the services are in Japan, NATO 

member countries, and countries bordering the Arabian Gulf. 

Section 112 establishes a preference for American contractors for 

military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in countries borVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00046 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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dering 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, either 

temporary or permanent, exceed $100,000. 

Section 114 limits obligations to no more than 20 percent during 

the last two months of the fiscal year. 

Section 115 allows funds appropriated in prior years to be used 

for new projects authorized during the current session of Congress. 

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

cost of supervision for any project being completed with lapsed 

funds. 

Section 117 provides that funds for military construction projects 

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

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

Section 118 requires the Secretary of Defense to report annually 

on actions taken during the current fiscal year to encourage other 

member nations of the NATO, Japan, Korea, and United States allies bordering the Arabian Gulf to assume a greater share of defense costs. 

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

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

Housing Improvement Fund. 

Section 121 prohibits the obligation of funds for Partnership for 

Peace Programs in the New Independent States of the former Soviet Union. 

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 funds in this title be the sole source of 

all operation and maintenance for flag and general officer quarter 

houses, except at military service academies, 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. 

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 prohibits the use of funds for military construction, 

family housing, or land acquisition projects at installations closed 

or realigned under BRAC, except under certain conditions. 

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

Currency Fluctuations, Construction, Defense’’ account. 

Section 130 prohibits the reimbursement of any health care provider for inpatient mental health services for care received when a 


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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, except under certain conditions. 

Section 131 allows the distribution of surplus medical and dental 

equipment, at no cost to the Department of Defense, to Indian 

Health Service facilities and to federally qualified health centers. 

Section 132 allows the Secretary of Defense to adjust wage rates 

for civilian employees hired for certain health care occupations. 

Section 133 limits the amount of environmental remediation 

funds that can be obligated under indefinite delivery/indefinite 

quantity contracts with a total contract value of $130,000,000 or 

higher. 

Section 134 allows for the transportation of medical supplies and 

equipment to American Samoa and the Indian Health Service 

under certain conditions. 

Section 135 allows the Secretary of Defense to exercise the provisions of section 7403(g) of title 38, United Stated Code. 

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS 

Fiscal year 2006 enacted level 1 ........................................................ $70,871,913,000 

Fiscal year 2007 budget request ....................................................... 77,908,797,000 

Committee recommendation in the bill ............................................ 77,908,797,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 7,036,884,000 

Fiscal year 2007 budget request ................................................ ............................

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 Appropriations 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 223,327. It administers benefits for more than 

24,600,000 veterans, and 37,840,000 family members of living veterans and survivors of deceased veterans. Thus, close to 64,400,000 

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 $77,908,797,000 in new 

budget authority for programs in fiscal year 2007. This is an increase of $7,036,884,000 above the fiscal year 2006 enacted level 

and the same as the budget request. When adjusted for supplemental funding, the recommendation is $8,884,520,000 above the 

fiscal year 2006 enacted level. 

The funds recommended provide compensation payments to 

3,215,492 veterans and survivors of deceased veterans with serviceconnected disabilities; pension payments to 519,809 non-serviceconnected disabled veterans, widows and children in need of financial assistance; education training, tuition assistance, and vocational assistance to 589,478 veterans, service members, and reservists, and 83,235 eligible dependents of deceased veterans or seriously disabled veterans; housing credit assistance in the form of 

230,000 guaranteed loans to veterans and servicepersons; administration or supervision of life insurance programs with 7,270,907 

policies for veterans and active duty servicepersons providing covVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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erage of $1,100,182,000,000; inpatient care and treatment of beneficiaries in 156 hospitals, 43 Department of Veterans Affairs domiciliary residential rehabilitation treatment programs (formerly 

called ‘‘domiciliaries’’), 135 nursing homes, and 935 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. 

Joint Research Initiatives.—The Committee understands that the 

Department has been involved in discussions with the Israeli Ministry of Defense regarding a number of research issues including 

Post Traumatic Stress Disorder, virtual reality rehabilitation for 

motor recovery and ambulatory training for veterans with prosthetic limbs, and robotic rehabilitation trials for the neurologically 

impaired and for veterans with missing limbs. The Committee is 

supportive of continued discussions regarding the possibility of developing a working group composed of the Veterans Health Administration, the Israeli Ministry of Defense, clinicians, and researchers that would guide collaborative research in these areas. 

Not later than March 1, 2007, the Secretary shall submit to the 

Committees on Appropriations of both Houses of Congress a report 

that describes: (1) the ways in which the Department of Veterans 

Affairs and Israel have cooperated on Post Traumatic Stress Disorder, virtual reality rehabilitation for motor recovery and ambulatory training for veterans with prosthetic limbs, and robotic rehabilitation trials for the neurologically impaired and for veterans 

with missing limbs; (2) projects initiated; and (3) plans for future 

cooperation and joint projects. 

Veterans’ Transportation Services.—The Committee is concerned 

that veterans’ transportation services are largely uncoordinated 

with the existing community and public transportation network 

and are heavily reliant upon a pool of volunteer services and drivers that has dwindled in many areas as fuel and insurance costs 

have soared. The current system is inefficient and in some cases 

veterans find themselves isolated from the vital health care they 

need. Further, studies have shown that veterans who need health 

care transportation, particularly those with long-term health care 

needs, are also likely to need transportation solutions to work, to 

shop, to socialize, and to otherwise enjoy a high quality of life. The 

Department spends about $170,000,000 annually on various transportation services for veterans, but has no uniform or consistent 

approach to their mobility needs. Some facilities work with local 

volunteers, others with available transit services, some provide no 

transportation at all. The lack of coordination of transportation 

services at the headquarters level has led to inconsistent and inefficient mobility for many veterans. Furthermore, the Department 

does not appear to have a way to communicate with hospitals, clinics, and Veterans Service Organizations on best practices in nonemergency transportation and the most cost efficient ways to get 

veterans, in both cities and rural areas, to hospitals and clinics. 

The Committee directs the Department to develop a program of 

coordination, information sharing, and technical assistance for veterans’ transportation. In developing such a program, the Committee recommends that the Department consult with organizations, such as the Community Transportation Association of AmerVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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50 

ica (CTAA), which have expertise in transit program design and development and provides technical assistance to transit systems and 

community and human services transportation providers. 

Fort Ord Cemetery.—The Committee notes the success of the 

military housing Residential Communities Initiatives as a public/ 

private partnership. The Committee encourages the Department of 

Veterans Affairs to work with the Fort Ord Reuse Authority in 

Monterey, California to develop a pilot program to demonstrate the 

cost effectiveness of using public/private partnerships in establishing a state veterans cemetery at Fort Ord. 

Centers of Excellence.—The Committee recommendation for Medical Services includes an additional $400,000,000 for mental health 

programs, when compared to the fiscal year 2006 program as adjusted for inflation. Within this amount, the Committee directs the 

Department to ensure adequate resources are dedicated to establishing and supporting the three Centers of Excellence established 

by Public Law 109–114. 

Veterans Centers.—The Committee has repeatedly noted its concerns regarding the Department’s efforts to detect and treat increasing incidents of Post Traumatic Stress Disorder among returning soldiers. A recent Army report found that more than one in 

three soldiers and Marines who returned from service in Iraq later 

sought help for mental health problems. This data indicates a clear 

need to improve the mental health services we provide to our nation’s service men and women. At the forefront of the Department’s 

efforts to ensure that the needs of returning soldiers and their families are met are the Veterans Centers. Specifically, the Veterans 

Centers provide outreach and psychological counseling, war-related 

counseling, and marital and family counseling, in addition to many 

other services. An important step in addressing this need is to ensure adequate Veterans Centers are located throughout the nation, 

including rural areas, to ensure that veterans do not fall through 

the cracks. The Committee directs the Department to report to the 

Committees on Appropriations of both Houses of Congress on the 

plans for expanding the network of Veterans Centers over the next 

five years, with a particular emphasis on rural centers. The report 

shall be submitted no later than November 10, 2006. 

Design-Build Project Delivery.—The Committee notes that the 

Department has used the design-build project delivery method in 

the past and believes the Department should expand its use in 

order to expedite construction projects. In addition, the Committee 

understands that current Department regulations preclude the option of design-build when the Department provides grants and 

loans for capital projects. Since current Federal regulations allow 

the design-build process to be used for federal projects, the Committee feels the option should be available for grant-funded 

projects. Therefore, the Committee directs the Department to study 

this issue and report by March 1, 2007 on options for revising its 

regulations. 

Disability Determinations.—The Committee is concerned about 

the length of time it takes the Department to determine eligibility 

for disability compensation, in particular those cases that may take 

three years or longer. The Committee directs the Department to report, within 30 days of enactment, on the number of cases which 


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take three years or longer for a final determination, and to report 

on those cases where the beneficiary is a retired military person. 

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $33,897,787,000 

Fiscal year 2007 budget request ....................................................... 38,007,095,000 

Committee recommendation in the bill ............................................ 38,007,095,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 4,109,308,000 

Fiscal year 2007 budget request ................................................ ............................

This appropriation provides funds for service-connected compensation payments to an estimated 3,215,492 beneficiaries and 

pension payments to another 519,809 beneficiaries with non-service-connected disabilities. The average cost per compensation case 

in 2007 is estimated at $10,600, and pension payments are projected at a unit cost of $6,811. 

The Committee recommends an appropriation of $38,007,095,000 

for compensation, pension and burial benefits for fiscal year 2007. 

This is an increase of $4,109,308,000 above the fiscal year 2006 enacted level and the same as the budget request. 

The appropriation includes funding not to exceed $28,112,000 of 

which $13,536,000 is for the general operating expenses account 

and $14,576,000 is for the medical administration account for the 

administrative expenses of implementing cost saving provisions required by the Omnibus Budget Reconciliation Act of 1990, Public 

Law 101–508, the Veterans’ Benefits Act of 1992, Public Law 102–

568, and the Veterans’ Benefits Improvements Act of 1994, Public 

Law 103–446. These cost 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 medical 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 

2.6 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, 2006, has an estimated 

cost of $590,293,000 during fiscal year 2007 and is reflected in the 

Compensation and Pensions budget request, pending authorization 

approval. 

Claims Processing.—The Committee is concerned about the 

lengthy wait time veterans experience in receiving a benefit claims 

decision. The Committee directs the Department to report on their 

plan for resolving the backlog and the timeline for implementation 


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52 

of this plan, including any needs for additional personnel. The report shall be submitted no later than November 10, 2006. 

READJUSTMENT BENEFITS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $3,309,234,000 

Fiscal year 2007 budget request ....................................................... 3,262,006,000 

Committee recommendation in the bill ............................................ 3,262,006,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (47,228,000) 

Fiscal year 2007 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 $3,262,006,000 

for readjustment benefits for fiscal year 2007. This is a decrease of 

$47,228,000 below the fiscal year 2006 enacted level and the same 

as the budget request. 

VETERANS INSURANCE AND INDEMNITIES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $45,907,000 

Fiscal year 2007 budget request ....................................................... 49,850,000 

Committee recommendation in the bill ............................................ 49,850,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 3,943,000 

Fiscal year 2007 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 $49,850,000 for 

veterans insurance and indemnities for fiscal year 2007. This is an 

increase of $3,943,000 above the fiscal year 2006 enacted level and 

the same as the budget request. The amount provided will enable 

the Department to transfer funding to the service-disabled veterans 

insurance fund and transfer additional amounts for payments for 


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the 2,350 policies under the veterans mortgage life insurance program. These policies are identified under the veterans’ insurance 

and indemnity appropriation since they provide insurance to service-disabled veterans unable to qualify under basic NSLI. 

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Program account 

Limitation on direct loans for 

specially adapted 

housing loans 

Administrative 

expenses 

Fiscal year 2006 enacted level .................................................................. 1 $64,586,000 $500,000 $153,575,000 

Fiscal year 2007 budget request ............................................................... 196,692,000 500,000 153,185,000 

Committee recommendation in the bill ...................................................... 196,692,000 500,000 153,185,000 

Comparison with: 

Fiscal year 2006 enacted level ......................................................... 132,106,000 ........................ (390,000) 

Fiscal year 2007 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 programs. The Federal Credit Reform Act of 1990 requires budgetary 

resources to be available prior to incurring a direct loan obligation 

or a loan guaranty commitment. In addition, the bill requires all 

administrative expenses of a direct or guaranteed loan program to 

be funded through a program account. 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 $42,892,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially 

adapted housing loans, and $153,185,000 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 2006 enacted level .................................................................. $53,000 $4,242,000 $305,000 

Fiscal year 2007 budget request ............................................................... 53,000 4,242,000 305,000 

Committee recommendation in the bill ...................................................... 67,000 3,369 305,000 

Comparison with: 

Fiscal year 2006 enacted level ......................................................... ........................ ........................ ........................

Fiscal year 2007 budget request ...................................................... ........................ ........................ ........................


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54 

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 $977.00 (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 $67,000 for funding subsidy pro- gram 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 $3,369,000. It is estimated that the Department will 

make 4,630 loans in fiscal year 2007, with an average amount of 

$728.00. 

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Administrative expenses: 

Fiscal year 2006 enacted level ................................................... $580,000 

Fiscal year 2007 budget recommendation ................................. 615,000 

Committee recommendation in the bill ............................................ 615,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 35,000 

Fiscal year 2007 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 $615,000 for administrative expenses, which may be transferred to and merged with the General Operating Expenses account. 

GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS

VETERANS PROGRAM ACCOUNT

Public Law 105–368, the Veterans 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 2007. 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 Department of Veterans Affairs operates the largest Federal 

medical care delivery system in the country, with 156 hospitals, 43 


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domiciliary residential rehabilitation treatment programs (formerly 

called ‘domiciliaries’), 135 nursing homes, and 935 outpatient clinics which includes independent, satellite, community-based, and 

rural outreach clinics. 

The Veterans Health Administration (VHA) is comprised of four 

accounts: medical services, medical administration, medical facilities, and medical and prosthetic research. For these four accounts, 

the Administration has requested total resources of 

$32,657,000,000 in direct appropriations and $2,329,000,000 in 

Medical Care Collections Fund appropriations, to fund the various 

operating programs of the VHA. 

MEDICAL SERVICES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $22,772,406,000 

Fiscal year 2007 budget request ....................................................... 25,512,000,000 

Committee recommendation in the bill ............................................ 25,412,000,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 2,639,594,000 

Fiscal year 2007 budget request ................................................ (100,000,000) 

This 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 $25,412,000,000 

for Medical Services for fiscal year 2007. This is an increase of 

$2,639,594,000 above the fiscal year 2006 enacted level and a decrease of $100,000,000 below the budget request. When adjusted 

for supplemental funding, the recommendation is $2,864,859,000 

above the fiscal year 2006 enacted level. 

The Committee recommendation builds on the information provided in public hearings by the organizations responsible for development of the Independent Budget for the Department of Veterans 

Affairs. The Committee notes that during fiscal year 2006, when 

significant medical services shortfalls were identified by the Department, there was general acceptance that the model used by the 

Independent Budget performed better than the model used by the 

Department of Veteran Affairs. With this in mind, the Committee 

recommendation takes as its baseline, the Independent Budget calculation of current services and anticipated workload increases to 

arrive at a core funding need of $24,821,600,000. To this baseline, 

the Committee recommendation adds program enhancements, including $400,000,000 for mental health initiatives, $100,000,000 for 

prosthetics, $32,000,000 for dental care, and $58,400,000 for activations and other operational changes not covered in the baseline 

program adjustment. 

Within the amount provided, not less that $2,800,000,000 is designated for specialty mental health care. 

The bill includes requested language in the Compensation and 

Pension appropriation transferring $14,576,000 for administrative 

expenses of implementing cost saving provisions required by the 


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Omnibus Budget Reconciliation Act of 1990, and the Veterans’ Benefits Act of 1992. 

The Committee has included bill language to make available through September 30, 2008, up to $1,100,000,000 of the Medical 

Services appropriation. This provides flexibility to the Department 

as it continues to implement significant program changes. 

The bill does not include requested language to allow for the transfer of $15,000,000 to 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, for any purpose authorized by 38 

U.S.C. 8111. The Committee notes that the Fund has a large unobligated balance in its fourth year of existence and additional funds 

are not recommended at this time. 

The Committee has included bill language under Administrative 

Provisions of this title to allow the Secretary to transfer funds 

among the Medical Services, Medical Administration, and Medical 

Facilities appropriations, after notifying the Committees on Appropriations of both Houses of Congress and receiving approval. This 

authority is to be used solely for the purpose of perfecting the accounts as the three-account structure is implemented. 

The Committee directs the Department to continue the use of the 

long-employed Joslin Vision Network for its collaborative diabetes 

project. 

Telemedicine Programs.—The Committee notes that the Department started telemedicine pilot projects in the mid 1990s to confirm technical feasibility and started funding projects in 1998 to define telemedicine’s role in supporting home care and making specialty consultations locally available. The Committee notes the significant benefits already received as a result of telemedicine programs and encourages the Department to expand such programs to 

gain even greater benefits. 

Genomic Medicine Program.—The Committee is aware the Veterans Health Administration has created a Committee to advise 

the Department on emerging issues in genomic medicine. The Committee is also aware of the Department’s long-term relationship 

with the Research Foundation of the State University of New York 

on this issue and urges the Department to move forward with this 

important initiative. 

MEDICAL CARE COLLECTIONS FUND

The Department of Veterans Affairs Medical Care Collections 

Fund (MCCF) was established by the Balanced Budget Act of 1997 

(Public Law 105–33). The Department deposits first-party and 

pharmacy co-payments, third-party insurance payments and enhanced-use collections, long-term care co-payments, Compensated 

Work Therapy Program collections, Compensation and Pension Living Expenses Program collections, and Parking Program fees into 

the MCCF. The Congressional Budget Office (CBO) estimate of fees 

that will be collected in fiscal year 2007 is $2,329,000,000. The 

original budget request anticipated collections of $2,832,778,000, 

which included new user fees which have not been enacted by the 

Congress and are not therefore included in the CBO scoring of the 

budget request. The bill does not include any language regarding 

the Medical Care Collections Fund since permanent authority was 


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57 

included in the fiscal year 2005 appropriations bill, Public Law 

108–447. 

MEDICAL ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $2,858,442,000 

Fiscal year 2007 budget request ....................................................... 3,177,000,000 

Committee recommendation in the bill ............................................ 3,277,000,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 418,558,000 

Fiscal year 2007 budget request ................................................ 100,000,000 

The Medical Administration appropriation provides funds for the 

expenses of management and administration of the Department of 

Veterans Affairs health care system. Included under this heading 

are provisions for costs associated with operation of medical centers, other facilities, and VHA headquarters, plus the costs of Veteran’s Integrated Service Network (VISN) offices and facility director offices, chief of staff operations, quality of care oversight, legal 

services, billing and coding activities, procurement, and medical 

program information technology personnel services, travel, and 

training. The Committee recommends an appropriation of $3,277,000,000 

for Medical Administration for fiscal year 2007. This is an increase 

of $418,558,000 above the fiscal year 2006 enacted level and an increase of $100,000,000 above the budget request. 

The Committee has included bill language to make available through September 30, 2008, 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 under Administrative 

Provisions of this title to allow the Secretary to transfer funds 

among the Medical Services, Medical Administration, and Medical 

Facilities appropriations, after notifying the Committees on Appropriations of both Houses of Congress and receiving approval. This 

authority is to be used solely for the purpose of perfecting the accounts as the three-account structure is implemented. 

MEDICAL FACILITIES

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2006 enacted level ........................................................... $3,297,669,000 

Fiscal year 2007 budget request ....................................................... 3,569,000,000 

Committee recommendation in the bill ............................................ 3,594,000,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 296,331,000 

Fiscal year 2007 budget request ................................................ 25,000,000 

The Medical Facilities appropriation provides funds for the operation and maintenance of the Department’s 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 an appropriation of $3,594,000,000 

for Medical Facilities for fiscal year 2007. This is an increase of 


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$296,331,000 above the fiscal year 2006 enacted level and an increase of $25,000,000 above the budget request. 

The Committee has included bill language to make available through September 30, 2008, up to $250,000,000 of the Medical Facilities appropriation. This provides flexibility to the Department as 

it continues to implement significant program changes. 

The Committee has included bill language under Administrative 

Provisions of this title to allow the Secretary to transfer funds 

among the Medical Services, Medical Administration, and Medical 

Facilities appropriations, after notifying the Committees on Appropriations of both Houses of Congress and receiving approval. This 

authority is to be used solely for the purpose of perfecting the accounts as the three-account structure is implemented. 

Community-Based Outpatient Clinics.—The Committee continues 

to receive conflicting information from the Department on the status of implementing the recommendations of the Capital Asset Realignment for Enhanced Services (CARES) Commission regarding 

new community-based outpatient clinics (CBOC). In response to direction of the fiscal year 2006 appropriations conference report (H. 

Rept. 109–305), the Department submitted a report on the status 

of establishing CBOC’s in various locations around the country. 

The report submitted to the Committee on March 17, 2006 was a 

convoluted discussion of the business plan review process, 

‘‘anticipate[d] possible activation’’ schedules, and undefined national CBOC planning criteria. During the Committee’s hearing on 

CARES last year, in response to a direct question asking how many 

CBOC’s were opened in 2005, the Department did not provide a definitive answer. During the Committee’s hearing earlier this year, 

the Secretary stated that 22 were opened in fiscal year 2005, 31 

are under analysis for opening in fiscal year 2006, and 27 are proposed for analysis in fiscal year 2007. Despite these definitive 

statements during the hearing, the budget material submitted to 

the Congress does not provide such definition, and in no case does 

it give a listing of sites under consideration. It is with this as background that the Committee recommends an addition of $25,000,000 

to the budget request for the establishment of at least 10 new community-based outpatient clinics in fiscal year 2007. This is in addition to the 27 funded in the budget submission. In order to have 

a clearer understanding about the status establishing new CBOC’s, 

the Department is directed to provide a report to the Committees 

on Appropriations of both Houses of Congress on the location of 

CBOCs opened in each of the last three years and the cost of establishing each CBOC. In addition, the report shall include a listing 

of all business plans not approved for funding and the reasons for 

the rejection. The report shall be submitted no later than August 

4, 2006. 

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2006 enacted level ........................................................... $412,000,000 

Fiscal year 2007 budget request ....................................................... 399,000,000 

Committee recommendation in the bill ............................................ 412,000,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... ............................

Fiscal year 2007 budget request ................................................ 13,000,000 

This account includes medical, rehabilitative and health services 

research. Medical research is an important aspect of the DepartVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00058 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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ment’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 

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 an appropriation of $412,000,000 for 

Medical and Prosthetic Research for fiscal year 2007. This is an increase of $13,000,000 above the budget request. This is the same 

amount as the fiscal year 2006 enacted level and within the Construction, Minor Projects account, the Committee recommendation 

includes $12,000,000 to begin an effort to modernize and upgrade 

research facilities. 

Smart Technologies for Electromechanical Prosthetic Systems.— Continued advances in microsystem technologies, gait analysis, 

computer-aided prosthetic design, and neurology may one day provide the means to fully restore physical and sensory capabilities 

lost as a result of amputation, injury, arthritis, arterial disease, diabetes, and other causes. Because of its competencies and extensive 

collaborative relationships, the Committee believes the Infotonics 

Technology Center of Rochester, New York is well positioned to 

work with the Department of Veterans Affairs to help disabled veterans take their first steps along this journey. The Committee 

urges the Department to establish a beneficial working relationship 

with the Center. 

Photon-Mediated Pain Treatment.—The Committee is aware of 

non-drug alternative treatments available for pain relief, in particular the option of using light-based treatments, also known as 

photon-mediated treatment for pain. The Committee believes that 

such treatment options deserve careful study and consideration by 

the Department and encourages the Department to work with 

qualified researchers to validate the possible benefits of such treatment. 

Technology Transfer.—The Committee directs the Department to 

continue its technology transfer activities with the West Virginia 

High Technology Consortium Foundation. 

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

Fiscal year 2006 enacted level ........................................................... $1,435,391,000 

Fiscal year 2007 budget request ....................................................... 1,480,764,000 

Committee recommendation in the bill ............................................ 1,480,764,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 45,373,000 

Fiscal year 2007 budget request ................................................ ............................

The General Operating Expenses appropriation provides for the 

administration of non-medical veterans benefits through the Veterans Benefits Administration (VBA) and Departmental manageVerDate Aug 31 2005 01:21 May 16, 2006 Jkt 027494 PO 00000 Frm 00059 Fmt 6659 Sfmt 6602 E:\HR\OC\HR464.XXX HR464

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ment 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 and vocational rehabilitation programs 

for administration of these credit programs are reimbursed by 

those accounts. The bill includes the budget requests totaling 

$132,374,000 in other accounts for these credit programs. In addition, $13,536,000 is transferred from the compensation and pensions account for administrative costs of implementing cost saving 

provisions required by the Omnibus Budget Reconciliation Act of 

1990 and the Veterans’ Benefits Act of 1992. Section 207 of the administrative provisions provides requested language which permits 

excess revenues in three insurance funds to be used for administrative expenses. The Department estimates that $39,863,000 will be 

utilized for such purposes in fiscal year 2007. Prior to fiscal year 

1996, such costs were included in the general operating expenses 

appropriation. In total, $1,825,697,000 is requested in fiscal year 

2007 for administrative costs of non-medical benefits. 

The Committee recommends an appropriation of $1,480,764,000 

for General Operating Expenses for fiscal year 2007. This is an increase of $45,373,000 above the fiscal year 2006 enacted level and 

the same as the budget request. When adjusted for Supplemental 

funding, the recommendation is $70,244,000 above the fiscal year 

2006 enacted level. 

INFORMATION TECHNOLOGY

Fiscal year 2006 enacted level ........................................................... $1,213,820,000 

Fiscal year 2007 budget request ....................................................... 1,257,000,000 

Committee recommendation in the bill ............................................ 1,302,330,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 88,510,000 

Fiscal year 2007 budget request ................................................ 45,330,000 

The Information Technology Systems account was established in 

P.L. 109–114. The account encompasses the entire non-pay information technology portfolio for the Department of Veterans Affairs, 

including all automation efforts in all administrations. The Committee recommends an appropriation of $1,302,330,000 for Information Technology Systems. In addition, the bill includes $21,731,000 

in other accounts for information technology in support of credit 

programs and $4,032,000 in excess revenues from three insurance 

funds for information technology support in fiscal year 2007. In 

total, $1,328,093,000 is requested in fiscal year 2007 for information technology. 

The Committee recommendation includes an additional 

$45,330,000, centrally managed by the Office of the Chief Information Officer, to continue the Regional Data Processing Center consolidation initiative, to include data center consolidation, as well as 

the telecommunication network enhancements necessary to support 

this initiative, and to achieve a valid continuity of operations capability. The Committee believes this will have significant benefit to 

the Department and will result in reduced cost of operations. 


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NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2006 enacted level ........................................................... $156,647,000 

Fiscal year 2007 budget request ....................................................... 160,733,000 

Committee recommendation in the bill ............................................ 160,733,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 4,086,000 

Fiscal year 2007 budget request ................................................ ............................

The National Cemetery Administration was established in accordance with Public Law 93–43, the National Cemeteries Act of 

1973. It has a fourfold mission: to provide for the interment in any 

national cemetery with available grave space the remains of eligible deceased servicepersons and discharged veterans, together with 

their spouses and certain dependents, and to permanently maintain their graves; to provide headstones for, and to mark graves of 

eligible persons in national, State, and private cemeteries; to administer the grant program for aid to States in establishing, expanding, or improving State veterans’ cemeteries; and to administer the Presidential Memorial Certificate Program. This appropriation provides for the operation and maintenance of 158 

cemeterial installations in 39 States, the District of Columbia, and 

Puerto Rico. 

The Committee recommends an appropriation of $160,733,000 for 

the National Cemetery Administration for fiscal year 2007. This is 

an increase of $4,086,000 above the fiscal year 2006 enacted level 

and the same as the budget request. When adjusted for Supplemental funding, the recommendation is $4,286,000 above the fiscal 

year 2006 enacted level. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2006 enacted level ........................................................... $70,174,000 

Fiscal year 2007 budget request ....................................................... 69,499,000 

Committee recommendation in the bill ............................................ 69,499,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (675,000) 

Fiscal year 2007 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 an appropriation of $69,499,000 for 

the Office of Inspector General for fiscal year 2007. This is a decrease of $675,000 below the fiscal year 2006 enacted level and the 

same as the budget request. 

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2006 enacted level ........................................................... $974,600,000 

Fiscal year 2007 budget request ....................................................... 399,000,000 

Committee recommendation in the bill ............................................ 283,670,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (690,930,000) 

Fiscal year 2007 budget request ................................................ (115,330,000) 


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The Construction, Major Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department of Veterans 

Affairs, including planning, architectural and engineering services, 

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 an appropriation of $283,670,000 for 

Construction, Major Projects for fiscal year 2007. This is a decrease 

of $690,930,000 below the fiscal year 2006 enacted level and a decrease of $115,330,000 below the budget request. When adjusted 

for supplemental funding, the recommendation is $323,430,000 

below the fiscal year 2006 enacted level. 

The Committee recommendation does not include funding for refurbishment of operating rooms at the Columbia, Missouri VAMC, 

and refurbishment of the Spinal Cord Injury Center at the Milwaukee, Wisconsin VAMC, both of which are relatively low priority 

projects. The estimate submitted in the budget for the Capital Region Data Center project includes a contingency reserve of over 25 

percent, well in excess of needs for such a project. The funding for 

this project is therefore reduced by $5,000,000, leaving 12.5 percent 

for a contingency reserve. The Committee recommendation includes 

no funding for the replacement hospital in Denver, Colorado. The 

Committee notes that less than two years ago, when original planning funds were appropriated for the Denver facility, the estimated 

total cost of the project was $328,000,000. The current estimate for 

the project is in the range of $621,000,000, almost double the previous estimate. This is not the only instance of large cost growth 

for construction projects of the Department, but this is a project at 

a stage where work can be halted before significant and irreversible financial damage is done. The Committee is concerned with the 

rapid escalation in the cost of building new facilities and cautions 

the Department that few, if any, projects will be approved in the 

future if such costs are not brought under control. 

The Committee recommendation also includes a general provision which places restrictions on the use of funds previously appropriated for a new facility in Biloxi, Mississippi. It is the Committee’s direction that no funds can be expended on a new facility unless it is a joint-use facility shared with Keesler Air Force Base. 

The specific amounts recommended by the Committee are as follows: 

[In thousands of dollars] 

Location and description 2007 request 

Committee 

recommendation 

Veterans Health Administration [VHA]: 

American Lake, WA Seismic Correction, NHCU & Dietetics ................................................... $38,220 $38,220 

Columbia, MO OR Replacement ............................................................................................. 25,830 0 

Denver, CO Replacement Medical Center Facility .................................................................. 52,000 0 

Long Beach, CA Seismic Correction, Bldg. 7 & 126 ............................................................. 97,545 97,545 

Milwaukee, WI Spinal Cord Injury (SCI) Center ..................................................................... 32,500 0 

St. Louis (JB), MO Medical Facil Improv & Cem Exp ............................................................ 7,000 7,000 

Advance planning fund: Various locations ............................................................................ 39,255 39,255 

Asbestos abatement: Various locations ................................................................................. 5,000 5,000 

Claims Analyses: Various locations ....................................................................................... 2,000 2,000 


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[In thousands of dollars] 

Location and description 2007 request 

Committee 

recommendation 

Judgment Fund: Various locations ......................................................................................... 2,000 2,000 

Hazardous Waste: Various locations ...................................................................................... 2,000 2,000 

Facility Security Fund: Various locations ............................................................................... 4,000 4,000 

Total VHA construction, major projects ......................................................................... 307,350 197,020 

National Cemetery Administration [NCA]: 

Dallas/Fort Worth, TX Phase 2 Gravesite Expansion ............................................................. 13,000 13,000 

Gerald B. H. Solomon-Saratoga, NY Phase 2 Gravesite Expansion ...................................... 7,600 7,600 

Great Lakes, MI Phase 1B Development ................................................................................ 16,900 16,900 

Design Fund: Various locations .............................................................................................. 2,300 2,300 

Advance planning fund: Various locations ............................................................................ 13,600 13,600 

Total NCA construction, major projects ........................................................................ 53,400 53,400 

General Administration (Staff Offices): 

Martinsburg, WV Capital Region Data Center ....................................................................... 35,000 30,000 

Asset Management (APF) Various Locations .......................................................................... 3,250 3,250 

Total construction, major projects ................................................................................ 399,000 283,670 

San Juan Veterans Medical Center.—The Committee remains 

concerned that the need for medical facility improvements in San 

Juan, Puerto Rico is not being adequately addressed. The Committee urges the Department to explore all options, including the 

option of a public/private partnership, to construct and operate a 

facility which would replace the current hospital. 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2006 enacted level ........................................................... $200,737,000 

Fiscal year 2007 budget request ....................................................... 198,000,000 

Committee recommendation in the bill ............................................ 210,000,000 

xlComparison with:.

Fiscal year 2006 enacted level ................................................... 9,263,000 

Fiscal year 2007 budget request ................................................ 12,000,000 

The Construction, Minor Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department, including 

planning, 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 an appropriation of $210,000,000 for 

Construction, Minor Projects for fiscal year 2007. This is an increase of $9,263,000 above the fiscal year 2006 enacted level and 

an increase of $12,000,000 above the budget request. When compared to Supplemental funding, the recommendation is $11,063,000 

above the fiscal year 2006 enacted level. 

The Committee received testimony earlier this year from a number of organizations concerned about the state of research facilities 

within the Department of Veterans Affairs organization. In the 

words of one witness, ‘‘[S]tate-of-the-art research requires state-ofthe-art technology, equipment, and facilities.’’ Many Department 

research facilities have run out of space, and ventilation, electrical 

supply, and plumbing problems continue to fall at the bottom of the 

list when minor construction funds are allocated. This situation 

cannot continue long before serious problems begin to emerge. The 

Committee shares the concern of the research community and 


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therefore has provided an increase of $12,000,000 to this account 

to be used solely for a program of upgrade and modernization of 

research facilities to ensure they maintain or attain state-of-the-art 

status. The Committee directs the Department to institute a process by which research infrastructure needs are given full and careful consideration for funding within this account. In addition, the 

Department is directed to report to the Committee by March 1, 

2007 on the value of research infrastructure improvements, by 

project location, made in each of the last three fiscal years and the 

projects competing for the funding provided by this appropriation. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2006 enacted level ........................................................... $85,000,000 

Fiscal year 2007 budget request ....................................................... 85,000,000 

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

Comparison with: 

Fiscal year 2006 enacted level ................................................... 20,000,000 

Fiscal year 2007 budget request ................................................ 20,000,000 

This program provides grants to assist States to construct State 

home facilities, for furnishing domiciliary or nursing home care to 

veterans, and to expand, remodel or alter existing buildings for furnishing domiciliary, nursing home or hospital care to veterans in 

State homes. A grant may not exceed 65 percent of the total cost 

of the project. The Committee recommends an appropriation of $105,000,000 for 

Grants for Construction of State Extended Care Facilities for fiscal 

year 2007. This is an increase of $20,000,000 above the fiscal year 

2006 enacted level and an increase of $20,000,000 above the budget 

request. The Committee recommendation also includes bill language specifying that not less that $20,000,000 shall be for grants 

for modifications to existing facilities, including life/patient safety 

improvements. The Committee has taken this action to ensure that 

while new construction in some areas of the country is urgently 

needed, such new construction will not crowd out necessary modifications to existing older facilities. 

GRANTS FOR CONSTRUCTION OF STATE VETERANS CEMETERIES

Fiscal year 2006 enacted level ........................................................... $32,000,000 

Fiscal year 2007 budget request ....................................................... 32,000,000 

Committee recommendation in the bill ............................................ 32,000,000 

Comparson with: 

Fiscal year 2006 enacted level ................................................... ............................

Fiscal year 2007 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 an appropriation of 

$32,000,000 for Grants for Construction of State Veterans Cemeteries for fiscal year 2007. This is the same as the fiscal year 2006 

enacted level and the same as the budget request. 


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The Committee encourages the Department to work with States 

for maximum usage of this grant program. Given that over ten percent of the nation’s veterans reside in California, the Committee 

encourages the Department to work with the state of California as 

it applies for a grant. 

ADMINISTRATIVE PROVISIONS

(INCLUDING TRANSFER OF FUNDS)

The Administration proposed eliminating several administrative 

provisions enacted in the Military Construction, Military Quality of 

Life and Veterans Affairs Appropriations Act, 2006 (P.L. 109–114). 

Including section 203, 208, 211, 217, 220, 221, 223–226, 228, and 

229. 

The bill continues 22 administrative provisions, all of which were 

included in the fiscal year 2006 appropriations 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 

2007 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, 

and ‘‘Veterans insurance and indemnities’’ for payment of accrued 

obligations recorded in the last quarter of fiscal year 2006. 

Section 206 allows for the use of fiscal year 2007 funds to pay 

prior year obligations resulting from implementation of sections 

3328(a), 3334, and 3712(a) of title 31, United States Code. 

Section 207 allows the Department to use surplus earning from 

the National service life insurance, U.S. Government life insurance, 

and veterans special life insurance program to administer these 

programs. 

Section 208 allows the Department to cover the administrative 

expenses of structuring enhanced-use leasing proposals and provides authority to obligate these reimbursements in the year funds 

are received. 

Section 209 limits the amount of reimbursement the Office of 

Resolution Management and the Office of Employment Discrimination Complaint Adjudication can charge other offices and accounts 

of the Department for services provided. 

Section 210 requires the Secretary to submit a report to the 

Committees on Appropriations to approve new leases of real property more than $300,000. 

Section 211 requires the Department to collect current, accurate 

third-party reimbursement information for the purposes of thirdparty insurance collections. If persons receiving care or medical 


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services do not disclose this information, the Department is allowed 

to bill them reasonable charges for services provided. 

Section 212 allows the Department to use enhanced-use leasing 

funds for construction and alterations for medical facilities to facilitate the CARES efforts as the Department restructures the delivery of healthcare to veterans. 

Section 213 allows the Department to use the ‘‘Medical services’’ appropriation for expenses related to the broader mission of medical care to veterans. 

Section 214 allows the Department to transfer Medical Care Collections to the ‘‘Medical services’’ appropriation to be used for veterans’ medical care. 

Section 215 allows the Department to transfer funding between 

the three medical care appropriations in fiscal year 2007 to implement the three-account structure which was directed by Congress 

in fiscal year 2004. 

Section 216 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 217 allows the Department to transfer the proceeds received from the transfer of real property deposited into the Department of Veterans Affairs Capital Asset Fund (CAF) to the major 

and minor construction appropriations. 

Section 218 prohibits the expenditure of any funds available to 

the Department for implementation of a national standardized contract for diabetes monitoring systems. 

Section 219 provides that no funds may be used to prohibit Directors of Veterans Integrated Service Networks form conducting 

outreach or marketing programs. 

Section 220 requires the Secretary to submit quarterly reports on 

the financial status of the Veterans Health Administration. 

Section 221 requires the Department to request Congressional authority to transfer funding in excess of $1,000,000 between information technology system projects. 

Section 222 extends authorization for the Department of Veterans Affairs homeless programs until September 30, 2007. 

TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2006 enacted level ........................................................... $35,888,000 

Fiscal year 2007 budget request ....................................................... 35,838,000 

Committee recommendation in the bill ............................................ 37,088,000 

Comparsion with: 

Fiscal year 2006 enacted level ................................................... 1,200,000 

Fiscal year 2007 budget request ................................................ 1,250,000 

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 


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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 $37,088,000 for 

the American Battle Monuments Commission’s fiscal year 2007 salaries and expenses account. This is an increase of $1,200,000 above 

the fiscal year 2006 enacted level and $1,250,000 above the budget 

request. Included in the increase is $300,000 to continue the study 

being 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. Also included in the increase is additional funding for 

maintenance and repair work. 

Language is included allowing up to $7,500 to be used for official 

reception and representation expenses. 

Normandy Interpretive Center.—The recommendation includes 

funding for the Normandy Interpretive Center at the Normandy 

American Cemetery in France. The new center will provide a full 

array of interactive services to put the D-Day landings and the following battles in Europe in perspective as one of the greatest military achievements of all time. The Committee looks forward to the 

opening of this important facility on June 6, 2007, the anniversary 

of D-Day. 

FOREIGN CURRENCY FLUCTUATION ACCOUNT

Fiscal year 2006 enacted level ........................................................... $15,098,000 

Fiscal year 2007 budget request ....................................................... 4,900,000 

Committee recommendation in the bill ............................................ 4,900,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (10,198,000) 

Fiscal year 2007 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 $4,900,000 to 

re-capitalize the Commission’s Foreign Currency Fluctuations account. This is a decrease of $10,198,000 below the fiscal year 2006 

enacted level and the same as the budget request. Re-capitalization 

of the account ensures that funds are available to offset dollar 

losses during fiscal year 2007. 


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UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2006 enacted level ........................................................... $18,607,000 

Fiscal year 2007 budget request ....................................................... 19,790,000 

Committee recommendation in the bill ............................................ 19,790,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... 1,183,000 

Fiscal year 2007 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 $19,790,000 for 

the Court of Appeals for Veterans Claims for fiscal year 2007. This 

is an increase of $1,183,000 above the fiscal year 2006 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. 

DEPARTMENT OF DEFENSE—CIVIL

CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2006 enacted level ........................................................... $28,760,000 

Fiscal year 2007 budget request ....................................................... 26,550,000 

Committee recommendation in the bill ............................................ 26,550,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (2,210,000) 

Fiscal year 2007 budget request ................................................ ............................

The Secretary of the Army is responsible for the administration, 

operation and maintenance of Arlington National Cemetery and 

the Soldiers’ and Airmen’s Home National Cemetery. In addition to 

its principal function as a national cemetery, Arlington is the site 

of approximately 3,100 non-funeral ceremonies each year and has 

approximately 4,000,000 visitors annually. 

The Committee recommends an appropriation of $26,550,000 for 

salaries and expenses for fiscal year 2007. This is a decrease of 

$2,210,000 below the fiscal year 2006 enacted level and the same 

as the budget request. 

The Committee notes that the 1998 Master Plan for Arlington 

National Cemetery recommended relocating all utilities from under 

open space to below roadways. Such a change would yield between 

8,000 and 10,000 additional gravesite spaces. The Committee believes the Department of the Army should actively pursue this 

course of action and directs the Department to report by March 1, 

2007 on the cost and barriers to moving forward with this project. 

ARMED FORCES RETIREMENT HOME

Fiscal year 2006 enacted level ........................................................... $123,499,000 

Fiscal year 2007 budget request ....................................................... 54,846,000 

Committee recommendation in the bill ............................................ 54,846,000 

Comparison with: 

Fiscal year 2006 enacted level ................................................... (68,653,000) 

Fiscal year 2007 budget request ................................................ ............................


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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 Committee recommendation provides authority to expend 

$54,846,000 from the Armed Forces Retirement Home Trust Fund 

for operations of the United States Soldiers’ and Airmen’s Home 

and the United States Naval Home. This is a decrease of 

$68,653,000 below the fiscal year 2006 enacted level and the same 

as the budget request. 

The bill does not provide authority to expend funding from the 

Armed Forces Retirement Home Trust Fund for capital activities at 

the Soldiers’ and Airmen’s Home and the United States Naval 

Home as proposed in the budget request. This is a decrease of 

$1,236,000 below the fiscal year 2006 enacted level and the same 

as the budget request. 

TITLE IV 

DEPARTMENT OF DEFENSE 

ADDITIONAL APPROPRIATIONS

The Committee recommends $507,003,000 in additional funds for 

military construction accounts for projects supporting contingency 

operations related to the global war on terrorism. In its recommendation, the Committee has emphasized projects related to 

urgent transformation efforts, as well as projects directly supporting operations in the theater and those that will enhance training in urban operations and close quarters combat. 

Military Construction, Army ............................................................. $379,300,000 

Military Construction, Navy and Marine Corps .............................. 26,037,000 

Military Construction, Air Force ....................................................... 49,923,000 

Military Construction, Defense-Wide ................................................ 44,500,000 

Military Construction, Army National Guard .................................. 5,530,000 

Military Construction, Army Reserve ............................................... 1,713,000 

Total ............................................................................................. 507,003,000 

TITLE V 

GENERAL PROVISIONS 

The Administration proposed to delete two general provisions in 

the Military Construction, Military Quality of Life and Veterans 

Affairs Appropriations Act, 2006, including section 406 and 408. 

The bill includes seven provisions that were included in the fiscal 

year 2006 appropriations bill and one new provision. The general 

provisions included in the bill are as follows: 

Section 501 prohibits the obligation of funds beyond the current 

fiscal year unless expressly so provided. 

Section 502 requires pay raises to be absorbed within the levels 

appropriated. 


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Section 503 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 504 prohibits the use of funds to support or defeat legislation pending before Congress. 

Section 505 encourages the expansion of E-Commerce technologies and procedures. 

Section 506 limits funds from being transferred from this appropriations measure to any instrumentality of the United States Government without authority from an appropriation Act. 

Section 507 specifies the congressional committees that are to receive all reports and notifications. 

Section 508 requires funds provided for medical facilities of the 

Department of Defense and the Department of Veterans Affairs in 

the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 division 

of Public Law 109–148 to be used for joint-use and/or co-located facilities. 

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. 

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 in the Defense Health Program limiting 

the amount of funding available for contracts entered into under 

the TRICARE Program. 

Language is included in the Defense Health Program providing 

funds for HIV educational activities. 

Language is included under Title I, Administrative Provisions 

limiting payments for cost-plus-a-fixed-fee contract under certain 

circumstances. 

Language is included under Title I, Administrative Provisions allowing the hire of passenger motor vehicles. 


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Language is included under Title I, Administrative Provisions allowing advances to the Federal Highway Administration, Department of Transportation under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for implementing construction of new bases in the 

United States without specific appropriations. 

Language is included under Title I, Administrative Provisions 

limiting funds for purchase of land or land easements under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for land acquisition, site preparation, and utility installation unless funds have been made available in annual appropriations acts. 

Language is included under Title I, Administrative Provisions 

limiting funds for the procurement of steel for any activity if American steel producers have been denied the opportunity to compete 

for such steel procurements. 

Language is included under Title I, Administrative Provisions 

limiting funds for initiating new installations overseas without notifying the Committees on appropriations. 

Language is included under Title I, Administrative Provisions 

limiting the use of funds for architect and engineer contracts under 

certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for awarding contracts to foreign contractors under 

certain circumstances. 

Language is included under Title I, Administrative Provisions requiring the Department of Defense to notify the appropriate committees of Congress of any proposed military exercises under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funding obligations in the last two months of the fiscal 

year to 20 percent. 

Language is included under Title I, Administrative Provisions allowing prior year construction funding to be available for current 

year projects. 

Language is included under Title I, Administrative Provisions allowing payment for the cost associated with supervision, inspection, 

overhead, engineering and design on family housing or military 

construction projects that are being completed expired or lapsed 

funds. 

Language is included under Title I, Administrative Provisions allowing funds to be expended on military construction projects for 

four fiscal years after enactment under certain circumstances. 

Language is included under Title I, Administrative Provisions requiring the Secretary of Defense to provide the Committees on Appropriations and annual report on actions to encourage other member nations of the North Atlantic Treaty Organization to assume a 

greater share of common defense burden. 

Language is included under Title I, Administrative Provisions 

that limiting funds for the Partnership for Peace Programs in the 

New Independent States of the former Soviet Union. 

Language is included under Title I, Administrative Provisions 

that requiring the various military departments to submit notice to 

the Committee on Appropriations of solicitation for contracts with 


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the private sector for military family housing under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for the operation and maintenance of family housing 

to those provided in this appropriations with exceptions under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for the North Atlantic Treaty Organization Security 

Investment Program for the conduct of missile defense studies. 

Language is included under Title I, Administrative Provisions requiring officials from the agencies covered in this appropriation to 

respond to requests within 21 days. 

Language is included under Title I, Administrative Provisions allowing funds for the Ford Island Improvement Account to be available until expended for certain purposes. 

Language is included under Title I, Administrative Provisions 

limiting funds for realignment of installations under certain circumstances. 

Language is included under Title I, Administrative Provisions allowing transfer of expired funding to the Foreign Currency Fluctuation Account under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting funds for reimbursement for mental health services under 

certain circumstances. 

Language is included under Title I, Administrative Provisions allowing surplus medical equipment to be distributed to other federal 

agencies under certain circumstances. 

Language is included under Title I, Administrative Provisions allowing the Secretary of Defense to adjust wage rates for civilian 

medical employees under certain circumstances. 

Language is included under Title I, Administrative Provisions 

limiting the amount of funds for indefinite/indefinite quantity contracts for environmental remediation under certain circumstances. 

Language is included under Title I, Administrative Provisions allowing funds to be used for transportation of medical supplies and 

equipment to American Samoa and the Indian Health Service. 

Language is included under Title I, Administrative Provisions allowing the Secretary of Defense to appoint and promote certain 

health care professionals. 

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. 


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Language is included under the Department of Veterans Affairs, 

Grants for Construction of State Extended Care Facilities, providing that not less than $20,000,000 may be used for modifications 

to existing facilities. 

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, 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, allowing the Secretary to establish a priority system for medical services, allowing a recovery audit collection program, prohibiting the use of funds for instituting a new standard for glucose 

monitoring systems, extending the authority to operate the homeless program, allowing veterans in the state of Alaska to use Indian Health Service facilities under certain conditions, and allowing medical services funds for recreational and funeral expenses. 

Language is included under the Court of Appeals for Veterans 

Claims, Salaries and Expenses, permitting the use of funds for a 

pro bono program. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, permitting the use of funds for parking maintenance 

and repairs. 

Language is included under Title V, General Provisions requiring 

sums necessary for pay raises to be absorbed within levels appropriated. 

Language is included under Title V, General Provisions limiting 

the use of funds for federal entities when they are not in compliance with federal law relating to risk assessment, the protection of 

private property rights, or unfunded mandates. 

Language is included under Title V, General Provisions limiting 

funding for publicity or propaganda designed to support or defeat 

legislation pending before Congress. 

Language is included under Title V, General Provisions encouraging the expanded use of ‘‘E-Commerce’’ technology. 

Language is included under Title V, General Provisions delineating the recipients of reports required in this Act. 

Language is included under Title V, General Provisions limiting 

funding for construction of certain Department of Defense and Department of Veterans Affairs facilities unless these facilities are colocated. 

Language is included under the Department of Veterans Affairs, 

Information Technology Systems, limiting the obligation of funds 

until certain reporting requirements are met. 

Language is included under the Department of Veterans Affairs, 

Medical Services, designating $2,800,000,000 for specialty mental 

health care. 

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 

$28,112,000 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 

($153,185,000), the Vocational Rehabilitation Loans Program Account ($305,000) and the Native American Veteran Housing Loan 

Program Account ($615,000). 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 recommends providing authority for the Department of Veterans Affairs for any funds appropriated in 2007 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 

$34,305,000 to be transferred to General Operating Expenses from 

any funds appropriated in 2007 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. 

The Committee has included language 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 among the Medical 

Services, Medical Administration and Medical Facilities accounts to 


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the extent necessary to implement the restructuring of these accounts subject to certain notification and approval requirements. 

The Committee recommends providing authority for the Department of Veterans Affairs to transfer amounts among the programs 

within the Information Technology Systems account subject to certain notification and approval 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. 

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following is submitted describing the rescissions recommended in the accompanying bill: 

Department/Activity 

Amounts 

recommended 

for rescission 

Department of Defense, Military Construction, Army ...................................................................................... $43,348,000 

Department of Defense, Military Construction, Navy ....................................................................................... 38,000,000 

Department of Defense, Military Construction, Air Force ................................................................................ 2,694,000 

Department of Defense, Military Construction, Defense-Wide ......................................................................... 110,229,000 

Department of Defense, Family Housing Construction, Air Force ................................................................... 66,200,000 

Department of Defense, Defense Health Program ........................................................................................... 40,042,000 

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 


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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 .................................................................................. 94,705 36,388 94,705 36,388 

Mandatory ...................................................................................... 88,728 36,284 88,728 36,284 

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: 

2007 .............................................................................................. 106,267 

2008 .............................................................................................. 16,013 

2009 .............................................................................................. 6,708 

2010 .............................................................................................. 2,964 

2011 and beyond .......................................................................... 1,287 

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 ........................................................................ 692 

Fiscal year 2007 outlays resulting therefrom .................................. 488 

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. 

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the Rules 

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: 


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ADDITIONAL VIEWS OF REPRESENTATIVES CHET 

EDWARDS, SAM FARR, AND DAVID R. OBEY 

MILITARY QUALITY OF LIFE AND VETERANS AFFAIRS AND RELATED

AGENCIES APPROPRIATIONS BILL, 2007 

The two most important decisions affecting the Military Quality 

of Life bill were not made while the bill was before the Committee. 

On May 9, 2006, on a party-line vote, Committee Republicans cut 

the allocation for this bill by $824 million below the President’s request. 

The next day the Majority pushed a bill through the House that 

provides taxpayers with incomes greater than $1 million per year 

tax cuts of $42,000, while families with incomes of $50,000 a year 

would only get on average a $46 tax cut. 

Those two actions by the Republican Majority are the reason for 

this bare bones bill. While it provides a $635 million increase in 

veterans spending above the President’s request it also has to rely 

on a $500 million budget gimmick; even with this fiscal sleight of 

hand the bill still fails military retirees’ and veterans’ medical 

needs. 

Democrats offered three amendments that would have significantly improved the bill by eliminating the budget gimmick, making certain military retirees would not face increased costs, and ensuring the quality and timeliness of VA medical care. These 

amendments were part of a fiscally disciplined, balanced Democratic approach that would return Congressional budgeting to the 

principle of ‘‘paying-as-you-go’’, providing additional funding for key 

investments and reducing the deficit by scaling back the supersized 

tax cuts for those making more than $1 million a year. 

MILITARY RETIREES

The President proposed to increase enrollment fees, co-payments 

and deductibles for military retirees less than 65 years of age within the Defense Health Program. The President’s proposal included: 

• Raising the annual enrollment fees for TRICARE Prime; 

• Establishing annual enrollment fees for the more basic 

TRICARE Standard; 

• Increasing annual deductibles; and, 

• Raising the mail-order and retail pharmacy co-payments. 

The Administration’s budget claimed that these increased costs 

imposed on military retirees would raise $735 million. 

Democrats wholly reject imposing these fee increases on military 

retirees. Thankfully, the House Committee on Armed Services 

agreed and rejected the proposal. However, this bill fails to deal 


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with the President’s proposal to increase fees, leaving a $735 million hole in the Defense Health Program. 

Mr. Edwards offered an amendment to provide the necessary 

$735 million that is needed to get the Defense Health Program 

through the next year, and to offset the costs proposed a minor reduction in the tax cut for those with annual incomes above a million dollars. A less than two percent reduction in the average tax 

cuts for people making over $1 million a year would ensure the Defense Health Program is fully funded. Presented with a choice between reducing the tax cut for millionaires or adequately funding 

healthcare for military retirees, Republicans voted to protect the 

super-sized tax cuts for millionaires and rejected Mr. Edwards’

amendment on a party-line vote. 

BUDGET GIMMICKRY

The second Democratic amendment would have eliminated the 

budget gimmick that designated $507 million for 20 routine military construction projects as an ‘‘emergency’’ so that this funding 

would not count against the bill’s allocation. 

None of these projects were unforeseen. The Administration 

budget requested 310 military construction projects, including 

these 20 projects. They are all conventional military construction 

projects—things like hangars, barracks and unit headquarters. 

These projects are selected through long-term planning exercises 

developed by the services, coordinated by the Department of Defense, and then vetted by the Office of Management and Budget. 

None of these projects were designated by the Administration as 

emergency requirements. 

Democrats recognized these projects as valid and continue to 

support our service men and women. However, the Minority has a 

more fiscally disciplined and balanced approach to addressing these 

critical needs. 

Mr. Obey offered an amendment to pay for these 20 military construction projects by reducing the tax cuts for people making more 

than $1 million a year by $1,400 or one percent. Republicans defeated the amendment on a party-line vote. 

VETERANS HEALTHCARE

Last year, the Administration was twice forced to admit that it 

failed to adequately budget for veterans health care. Twice, at the 

urging of Democrats, Congress provided additional funding to close 

the shortfall. After that fiasco, Congress understandably cast a 

skeptical eye on the President’s 2007 request for VA healthcare. 

This year, the Committee wisely chose to set its mark to the estimates offered in the Independent Budget, which is drafted by veterans service organizations, rather than the request of the Administration. As this report notes, the Independent Budget provides a 

more reliable yardstick. In total, the Committee provided an additional $635 million above the President’s budget. 

While this increase is necessary and commendable we still believe that the bill leaves much room for improvement. The bill’s allocation is still too low to meet many of the Independent Budget’s 

recommendations, high priority construction projects were cut, and 


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increases recommended by the authorizers could not be accommodated. 

Mr. Farr offered an amendment to increase veterans health care 

funding by $1.82 billion. For example, the amendment would have 

provided: • $300 million to fully fund the Independent Budget’s mental health and prosthetics initiatives; • An additional $119 million to increase the number of fulltime employees as suggested by the Independent Budget; • An additional $48 million in medical and prosthetic research; • An additional $232 million to offset in unjustifiable ‘‘savings’’ claimed by the President’s budget; • An additional $471 million for long-term care the VA is 

statutorily required to provide; • An additional $341 million to enroll ‘‘lower priority’’ veterans who, while often called high income, are excluded from 

the VA healthcare system even though they make as little as 

$27,000 a year; • An additional $8 million to allow the Inspector General to 

expand oversight efforts to make certain that veterans get the 

best healthcare in a timely manner; • An additional $115 million to restore badly needed hospital construction projects cut from the Administration’s request; and, • An additional $73 million for General Operating Expenses 

to help reduce the claims processing backlog. Last year, 74,000 

veterans waited more than six months to resolve a claim; 

today, over 95,000 are waiting. 

The Farr amendment was paid for by reducing the average tax cut for people making more than $1 million a year by slightly more 

than $5,000, leaving them with $109,025. The Majority defeated 

the amendment on a party-line vote. 

Time and again, the Majority prioritized the needs of people 

making more than $1 million a year ahead of key investments, 

such as health care for our veterans. 

As a result, veterans will continue to wait too long for care, many 

will not get the mental health assistance they need, prosthetic research and services will be under funded, and ‘‘wealthy’’ lower priority veterans will continue to be denied access to VA healthcare 

altogether. 

Meanwhile, there are 362,000 taxpayers with annual incomes 

over $1 million who are scheduled to receive an average tax cut of 

$114,172. 

Committee Democrats only asked that we give a little bit less to 

those who already have much so that we could do a little bit better 


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by our veterans. We were told by the Majority that this was not 

‘‘legitimate.’’ In a time of war, reducing a millionaire’s tax cut in order to care 

for those ‘‘who shall have borne the battle’’ is not only legitimate, 

it is a moral imperative. 

CHET EDWARDS. 

SAM FARR. 

DAVID R. OBEY. 

Æ 


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