```

[House Document 109-120]
[From the U.S. Government Publishing Office]

                                     

109th Congress, 2d Session - - - - - - - - - - - - House Document 109-120

                 REQUEST FOR FY 2006 BUDGET AMENDMENTS

                               __________

                             COMMUNICATION

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

 
  A REQUEST FOR A FY 2006 FULLY OFFSET PROPOSAL TO PROVIDE ADDITIONAL 
    FUNDS FOR THE INFORMATION TECHNOLOGY SYSTEMS ACCOUNT WITHIN THE 
                     DEPARTMENT OF VETERANS AFFAIRS

June 29, 2006.--Referred to the Committee on Appropriations and ordered 
                             to be printed
                                           The White House,
                                         Washington, June 28, 2006.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider 
expeditiously the enclosed fully offset FY 2006 request for the 
Department of Veterans Affairs (VA) to address the security of 
personal information of veterans and service personnel.
    I am requesting these additional resources for VA to cover 
the increased costs to the VA information technology account in 
FY 2006 as a result of providing credit monitoring and fraud 
watch services for veterans and service members impacted by a 
security breach that occurred on May 3, 2006. The total cost of 
this effort, estimated to be $160.5 million in FY 2006, is 
fully offset.
    The details of these proposals are set forth in the 
enclosed letter from the Director of the Office of Management 
and Budget.
            Sincerely,
                                                    George W. Bush.
                [Estimate No. 8, 109th Congr., 2d Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, June 28, 2006.
The President,
The White House.
    Submitted for your consideration is a request for a FY 2006 
fully offset proposal to provide additional funds for the 
Information Technology Systems account within the Department of 
Veterans Affairs (VA). This request supplements the $1.214 
billion already appropriated for FY 2006 information technology 
costs.
    VA plans to provide one year of credit monitoring and fraud 
watch services to those veterans and service members whose 
personal identifiable information was exposed as a result of 
the theft of a personal laptop computer and external hard drive 
of a VA employee. The total cost of this effort is estimated to 
be $160.5 million in FY 2006. In addition to the new funding 
requested in this transmittal, VA has identified $29 million of 
excess FY 2006 funding in its General Operating Expenses that 
will be transferred to the Information Technology Systems 
account through existing transfer authority.
    Your Administration is committed to ensuring the security 
of the personal information of the veterans and service 
personnel who may be affected by the security breach. The 
offsets identified would not impact current operations and were 
not expected to be obligated this year. The $131.5 million in 
requested funding is fully offset by the proposals described 
below and in more detail in the enclosures:
     Reductions of unobligated balances to the Food 
Stamp Employment and Training Program (-$20.0 million) and the 
Trade Adjustment Assistance for Farmers program (-$40.0 
million) in the Department of Agriculture that are in excess of 
current requirements.
     Cancellation of balances from the Health 
Professions Student Loans program (-$6.7 million) in the 
Department of Health and Human Services.
     Cancellation of funds in the Responsible 
Reintegration of Youthful Offenders program (-$49.1 million) in 
the Department of Labor.
     Reduction of unobligated balances in the Next 
Generation High Speed Rail program (-$9.0 million) in the 
Department of Transportation.
     Cancellation of funds in the Bureau of Public Debt 
(-$1.4 million) and the Internal Revenue Service (-$5.3 
million) in the Department of the Treasury.
Recommendation
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected agencies in recommending that you 
transmit these proposals to the Congress.
            Sincerely,
                                               Rob Portman,
                                                          Director.
    Enclosures.
                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration

                     INFORMATION TECHNOLOGY SYSTEMS

    For an additional amount for ``Information Technology 
Systems,'' $131,500,000, to remain available until September 
30, 2007.
    The total estimated cost of providing credit monitoring and 
fraud watch services to those veterans and service members 
whose personal identifiable information was exposed as a result 
of the theft of a personal laptop computer and external hard 
drive of a Veterans Affairs (V A) employee is $160.5 million.
    VA has identified $29.0 million in current funds within the 
agency to partially cover the funds needed. This proposal would 
provide the remaining $131.5 million needed, fully offset by 
funds available in the Departments of Agriculture, Health and 
Human Services, Labor, Transportation, and the Treasury. 
Details regarding the offsets proposed are described in the 
accompanying proposals.
                                ------                                

                       DEPARTMENT OF AGRICULTURE

                      Foreign Agricultural Service

                TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

    Of the unobligated balances available under this heading of 
funds provided pursuant to section 298(a) of the Trade Act of 
1974, as amended, $40,000,000 are canceled.
    This proposal would cancel $40 million in unobligated 
balances in the Trade Adjustment Assistance for Farmers 
program. These balances are in excess of current program 
requirements.
                                ------                                

                       DEPARTMENT OF AGRICULTURE

                       Food and Nutrition Service

                           FOOD STAMP PROGRAM

    Of the unobligated balances available under this heading of 
funds provided pursuant to section 16(h)(1)(A) of the Food 
Stamp Act of 1977, $20,000,000 are canceled.
    This proposal would cancel $20 million in unobligated 
prior-year balances in the Food Stamp Employment and Training 
program. These balances are in excess of current program 
requirements.
                                ------                                

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

              HEALTH RESOURCES AND SERVICES ADMINISTRATION

    Of the unobligated balances of the Health Professions 
Student Loan program, authorized in subpart II, Federally 
Supported Student Loan Funds, of title VII of the Public Health 
Service Act, $6,700,000 are canceled.
    This proposal would cancel $6.7 million in unobligated 
balances in the Health Resources and Services account. These 
funds represent collections of excess balances held by health 
professions training institutions.
                                ------                                

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    TRAINING AND EMPLOYMENT SERVICES

    Of the funds provided under this heading in Public Law 109-
149, $49,104,000 are cancelled.
    This proposal would cancel $49.1 million provided for the 
Responsible Reintegration of Youthful Offenders program in FY 
2006, available for the period July 1, 2006, through June 30, 
2007.
    Responsible Reintegration of Youthful Offenders is a 
narrow-purpose demonstration project that provides employment 
and training services to ex-offenders under age 35. Although it 
has been funded since 1998, the program has not demonstrated 
employment outcomes. Services would be better provided through 
the more comprehensive Prisoner Re-entry Initiative, which 
would offer a range of job training, housing, and mentoring 
services and harness the experience of faith-based and 
community organizations.
                                ------                                

                      DEPARTMENT OF TRANSPORTATION

                    Federal Railroad Administration

                    NEXT GENERATION HIGH-SPEED RAIL

    Of the unobligated balances available under this heading, 
$9,000,000 are cancelled.
    No funding was requested for this program in FY 2007. This 
proposal would cancel a portion of unobligated balances in this 
account and would not impact program operations.
                                ------                                

                       DEPARTMENT OF THE TREASURY

                         Bureau of Public Debt

                     ADMINISTERING THE PUBLIC DEBT

    Of the unobligated balances available under this heading, 
$1,400,000 are cancelled.
    Section 511 of P.L. 108-477 makes 50 percent of unobligated 
balances remaining available at the end of FY 2005 from this 
account available through September 30, 2006, of which $1.4 
million are proposed for cancellation and would not impact 
program operations.
                                ------                                

                       DEPARTMENT OF THE TREASURY

                        Internal Revenue Service

                 PROCESSING, ASSISTANCE, AND MANAGEMENT

    Of the unobligated balances available under this heading, 
$5,300,000 are cancelled.
    Section 511 of P.L. 108-477 makes 50 percent of unobligated 
balances remaining available at the end of FY 2005 from this 
account available through September 30, 2006, of which $5.3 
million are proposed for cancellation and would not impact 
program operations.

                                  

```