87–075 

[FULL COMMITTEE PRINT] 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113– 

MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND 

RELATED AGENCIES APPROPRIATIONS BILL, 2015 

, 2014.—Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

Mr. CULBERSON, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

[To accompany H.R. ] 

The Committee on Appropriations submits the following report in 

explanation of the accompanying bill making appropriations for 

military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2015, and 

for other purposes. 

CONTENTS 

Page 

Purpose of the Bill ................................................................................................... 00 

Summary of Committee Recommendation ............................................................ 00 

Comparative Statement of New Budget Authority ............................................... 00 

Management and Oversight Initiatives ................................................................. 00 

Department of Defense: 

Military Construction ....................................................................................... 00 

NATO Security Investment Program .............................................................. 00 

Family Housing Construction and Operation and Maintenance .................. 00 

Chemical Demilitarization Construction, Defense-Wide ............................... 00 

Department of Defense Base Closure Account ............................................... 00 

Administrative Provisions ................................................................................ 00 

Department of Veterans Affairs: 

Veterans Benefits Administration ................................................................... 00 

Veterans Health Administration ..................................................................... 00 

National Cemetery Administration ................................................................. 00 

Departmental Administration ......................................................................... 00 

Administrative Provisions ................................................................................ 00 

Related Agencies: 

American Battle Monuments Commission ..................................................... 00 

U.S. Court of Appeals for Veterans Claims .................................................... 00 

Cemeterial Expenses, Army ............................................................................ 00 

Armed Forces Retirement Home ..................................................................... 00 

Administrative Provision ................................................................................. 00 


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General Provisions ...................................................................................................

House of Representatives Report Requirements ...................................................

Statement of General Performance Goals and Objectives ............................ 00 

Rescissions ........................................................................................................ 00 

Transfer of Funds ............................................................................................. 00 

Disclosure of Earmarks and Congressionally Directed Spending Items ...... 00 

Changes in Application of Existing Law ........................................................ 00 

Appropriations Not Authorized by Law .......................................................... 00 

Program Duplication ........................................................................................ 00 

Directed Rule Making ...................................................................................... 00 

Full Committee Votes ...................................................................................... 00 

Ramseyer Rule .................................................................................................. 00 

Comparison With the Budget Resolution ....................................................... 00 

Five-Year Projection of Outlays ...................................................................... 00 

Assistance to State and Local Governments .................................................. 00 

State Project List .............................................................................................. 00 

Minority Views .................................................................................................. 00 

PURPOSE OF THE BILL

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

have earned for their service to our Nation. This is accomplished 

through the programs funded in the bill, which provide the facilities and infrastructure needed to house, train, and equip our military personnel to defend this Nation, both in the United States and 

abroad; provide the housing and military community infrastructure 

that supports a good quality of life for them and their families; and 

allow the military to maintain an efficient and effective base structure. The bill also funds programs to ensure that all veterans receive the benefits and medical care that they have earned as a result of the sacrifices they have made in their service to our country. 

Finally, the bill funds four related agencies that provide support to 

our Nation’s heroes: the American Battle Monuments Commission, 

Cemeterial Expenses, Army (including Arlington National Cemetery), the United States Court of Appeals for Veterans Claims, and 

the Armed Forces Retirement Home. 

SUMMARY OF COMMITTEE RECOMMENDATION

The scale of the Nation’s debt and the continuing annual deficit 

weighed heavily on the Committee as it formulated this bill. A 

driving force behind the Committee recommendations was the bipartisan, bicameral discretionary budget caps established for fiscal 

year 2015. As part of the fiscal year 2014 appropriations, Congress 

provided an additional $1,200,000,000 to the Veterans Health Administration in advance funding for fiscal year 2015. This exceeds 

the increase provided for non-security accounts within the discretionary budget cap, requiring the additional funds to be offset by 

reductions in other non-security activities. Similarly, it was essential that the Committee carefully review military construction activities and judge their merit against all security needs. As a result, the Committee recommendation continues essential support 

for servicemembers and veterans but does not provide funds for 

projects or activities that lacked sufficient justification or amounts 

in excess of expected obligations for the fiscal year. Where it was 

prudent, the Committee recommendation rescinds prior year funding that is no longer needed for the purpose for which it was appropriated while leaving sufficient resources to close out contracts. 


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The Committee recommends $165,012,275,000 in budget authority for the fiscal year 2015 programs and activities funded in the 

bill. The fiscal year 2015 recommendation is an increase of 

$7,023,706,000 above the fiscal year 2014 enacted level and 

$397,696,000 below the President’s request. Included in this 

amount is $93,512,828,000 in mandatory budget authority and 

$71,499,447,000 in discretionary budget authority. 

The programs funded in the bill for the Department of Defense 

address the priorities of the Department’s Agencies and the Services for numerous facility challenges that they face. The funds provided support new construction, family housing, continued cleanup 

of military bases closed during previous Base Realignment and Closure rounds, resource the military’s global re-stationing and force 

re-structure plans, and ensure that our military personnel and 

their families’ quality of life is preserved within the constraints of 

the fiscal 2015 discretionary budget cap for security accounts. 

The total recommended funding level for military construction 

and family housing is $6,557,447,000, which is $3,250,553,000 

below the fiscal year 2014 enacted level and the same as the budget request. During hearings, the Department testified that while 

this budget reduction assumes some risk, the Services chose to take 

risk in the military construction program in order to reduce risk in 

readiness accounts. The Services also noted that many factors are 

currently under review, such as force structure and European basing, which may impact construction needs. The Committee, while 

concerned by the reduction, acknowledges the merit of these issues. 

The Committee also acknowledges that the success of the Housing 

Privatization Program has dramatically reduced the need for family housing construction. Additionally, Congress has provided substantial funding in recent years through BRAC construction 

projects in excess of $24,000,000,000 and through funding initiatives for Guard and Reserve construction, barracks, hospitals and 

schools. 

Although the fiscal year budget request is a considerable reduction, the due diligence of the Department, the Services and the 

Committee will enable the military construction program to sustain 

the pause. 

The total funding level for fiscal year 2015 for the Department 

of Veterans Affairs is $158,221,261,000, an increase of 7.0 percent 

over the fiscal year 2014 enacted level. Of the total, 

$93,512,828,000 is provided for mandatory benefit programs and 

$64,708,433,000 is allocated to discretionary programs such as 

medical care, claims processing, and construction. Discretionary 

funding increases by 2.3 percent. In addition to funds for fiscal 

year 2015, of which $55,634,227,000 have already been appropriated in advance, the Committee recommendation includes 

$58,662,202,000 in advance appropriations for fiscal year 2016 for 

the three health care accounts of the Department. 

The following table compares amounts recommended in the bill 

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

2014: 


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MANAGEMENT AND OVERSIGHT INITIATIVES

The Committee believes the effective stewardship of taxpayer 

dollars is of the highest priority. In the interest of eliminating 

waste, fraud, and abuse in Federal programs, the Committee has 

and will continue to use public hearings, briefings, and information 

requests, and reviews by the Government Accountability Office and 

the Inspectors General to promote strong financial and program 

management, oversight and leadership at the Department of Defense, the Department of Veterans Affairs, and other agencies 

under the jurisdiction of this bill. 

The fiscal year 2015 appropriations Act and the accompanying 

report address management challenges of the Federal agencies 

funded herein, including directives to strengthen financial and program management, eliminate redundancy, and improve implementation and oversight of initiatives that support the mission of this 

bill. The Committee will use every means at its disposal to reduce 

mismanagement that results in waste, fraud, and abuse. 

Department of Defense (DOD).—In addition to the notification 

and reporting requirements for military construction programs contained in Title 10, United States Code, the Committee’s recommendations include several provisions requiring the Department 

of Defense to report on various aspects of military construction programs, or to provide notification to the Committee when certain actions are taken. The Committee also retains prior approval authority for any reprogramming of funds exceeding a specific threshold. 

Department of Veterans Affairs (VA).—With the $158,221,261,000 

provided for the VA in this bill and the increase in the number of 

veterans seeking VA medical services, the Committee believes it is 

important to strengthen its tools to monitor spending as well as the 

skills and operating procedures of the VA workforce. The following 

initiatives demonstrate the Committee’s oversight focus: 

VA electronic health record.—The Committee continues to feel it 

is critical to closely track VA’s development of its VistA Evolution 

electronic health record. In the aftermath of the DOD and VA decision not to pursue a single integrated health record, it becomes 

doubly important to ensure that the two health records are designed in a way that permits interoperability between the two systems. The Committee continues the practice of the fiscal year 2013 

and 2014 bills to include language requiring the VA to provide information on the VistA Evolution system before release of 75 percent of the funding provided. The fiscal year 2015 directive requires 

information to track the implementation of the system as described 

in the documents VA provided to fulfill the 2014 bill language directive. The Committee does not intend to delay the progress of developing the health record, but believes continuing oversight is necessary to ensure that the health record will have the capabilities 

and interoperability promised in the VA documents. The Committee also requires specific information on the planned interoperability capability of VistA Evolution, to be provided to the Committee by July 31, 2014. 

Disability claims backlog reduction.—In addition to fully funding 

the administration request of $173,318,000 for the Veterans Benefits Management System, the paperless information technology system designed to speed processing, the Committee provides 


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$20,000,000 in additional funding for digital scanning of health and 

benefits files, the centralized mail initiative, and staff overtime to 

increase workforce capacity to reduce the backlog. The Committee 

bill continues the aggressive monthly reporting requirements from 

each specific regional office on claims processing performance and 

quarterly reports on remediation efforts at the poorest performing 

regional offices. 

Excessive overhead in medical services funding.—The Committee 

has heard concerns from Members that the VA retains too much 

of the funding provided by Congress at headquarters and at the regional health networks instead of allowing it to flow through to the 

medical centers. The Committee is monitoring the allocation process VA uses, mandating that VA provide information annually 

identifying the use of all funding retained at headquarters, as well 

as the funding retained by each network and for which purposes. 

In addition, the Committee is requesting regular budget information to better identify administrative expenses that are hidden in 

medical services appropriations. 

Stricter control of construction funding.—The VA historically has 

allowed billions of dollars for its major construction projects to remain unobligated for years at a time while VA completes designs, 

negotiates with contractors, and complies with local, State, and 

Federal paperwork. The Committee continues bill language limiting the availability of these funds to five years, which is the same 

period of time the Committee makes Military Construction funding 

available. The Committee understands that this limitation has already forced modifications to the VA construction process and anticipates that it will generate more efficient construction that will 

better serve veterans. 

Bid savings and project scope control.—In the past, the VA has 

had considerable flexibility in allocating funding for major construction projects. The Committee continues bill language requiring 

the VA to notify the Committee of all bid savings totaling 

$5,000,000 or more, or five percent, whichever is less, within 14 

days of the contract, as well as the proposed use of the funds. Additionally, the VA is not permitted to make any change in the scope 

of major construction projects. With these tools, the Committee expects to gain more control of construction funding that is no longer 

needed for its original purposes. 

Notification of change in use of funds.—To ensure that the Committee is informed of and approves of changes in planned uses of 

medical services funds, the bill continues a reprogramming requirement for significant changes in funding of non-model initiatives. 

TITLE I 

DEPARTMENT OF DEFENSE 

MILITARY CONSTRUCTION OVERVIEW

Fiscal year 2014 enacted level (including rescissions) .................... $9,808,000,000 

Fiscal year 2015 budget request ....................................................... 6,557,447,000 

Committee recommendation in the bill (including rescissions) ...... 6,557,447,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (3,250,553,000) 

Fiscal year 2015 budget request ................................................ – – – 


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

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

housing, utilities infrastructure, and land acquisition. 

Reprogramming guidelines.—The following reprogramming 

guidelines apply for all military construction and family housing 

projects. A project or account (including the sub-elements of an account) which has been specifically reduced by the Congress in acting on the budget request is considered to be a Congressional interest item and as such, prior approval is required. Accordingly, no reprogramming to an item specifically reduced below the threshold 

by the Congress is permitted, except that the Department of Defense may seek reprogramming for appropriated increments. 

The reprogramming criteria that apply to military construction projects (25 percent of the funded amount or $2,000,000, whichever 

is less) continue to apply to new housing construction projects and 

to improvements over $2,000,000. To provide the services the flexibility to proceed with construction contracts without disruption or 

delay, the costs associated with environmental hazard remediation 

such as asbestos removal, radon abatement, lead-based paint removal or abatement, and any other legislated environmental hazard remediation may be excluded, if such remediation requirements 

could not be reasonably anticipated at the time of the budget submission. This exclusion applies to projects authorized in this budget 

year, as well as projects authorized in prior years for which construction has not been completed. Planning and design costs associated with military construction and family housing projects may 

also be excluded from these guidelines. In instances where prior 

approval to a reprogramming request for a project or account has 

been received from the Committees on Appropriations of both 

Houses of Congress, the adjusted amount approved becomes the 

new base for any future increase or decrease via below-threshold 

reprogramming (provided that the project or account is not a Congressional interest item as defined above). 

In addition to these guidelines, the services are directed to adhere to the guidance for military construction reprogramming actions and notifications, including the pertinent statutory authorities contained in Department of Defense Financial Management 

Regulation 7000.14–R and relevant updates and policy memoranda. 

The Committee further encourages the Office of the Director of National Intelligence to use a format similar to that used by the Office 

of the Secretary of Defense to submit reprogramming requests. 

Facilities Sustainment, Restoration and Modernization 

(FSRM).—The Department of Defense is directed to continue describing on form 1390 the backlog of FSRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any FSRM conducted in the past 

two years. Likewise, future requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms should include English equivalent measurements for 

projects presented in metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance accounts 

are described below: 


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(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 strongly encourages the services and defense agencies to indicate the plant replacement value of the facility to be repaired on each such notification. 

Quarterly summary of notifications.—The Committee directs the 

services and the Office of the Secretary of Defense (on behalf of 

itself and defense agencies) to continue to submit a quarterly report listing all notifications that have been submitted to the Committees during the preceding three-month period. 

Work in Progress or Planned (WIP) curve.—The Committee directs the services and the Office of the Secretary of Defense (on behalf of itself and defense agencies) to submit a WIP curve for each 

project requested in a budget submission over $100,000,000 with 

the 1391 justification to the congressional defense committees. 

Transfer of funds to and from the Foreign Currency Fluctuations, 

Construction, Defense Account.—The Committee directs the Department of Defense to submit a quarterly report to the Committees on 

Appropriations of both Houses of Congress on the transfer of funds 

from military construction and family housing accounts to the Foreign Currency Fluctuations, Construction, Defense account. The report shall specify the amount transferred to the Foreign Currency 

account from each military construction and/or family housing account, and all other accounts for which an appropriation is provided in this Act, during the preceding fiscal quarter, and the 

amounts transferred from the Foreign Currency account to the 

above accounts during the same period. This report shall be submitted no later than 30 days after the close of each fiscal quarter. 

In addition, the Department of Defense shall notify the Committees 

on Appropriations of both Houses of Congress within 7 days of 

transferring any amount in excess of $10,000,000 to or from the 

Foreign Currency account. 

Bid savings.—The Committee has ascertained from cost variation 

notices required by 10 U.S.C. 2853 that the Department of Defense 

continues to have bid savings on previously appropriated military 

construction projects. The Committee’s recommendation therefore 

includes rescissions to the Army construction account and NATO 

Security Investment Program. As a result of bid savings, the Committee directs the Secretary of Defense to continue to submit 1002 

reports on military construction bid savings at the end of each fiscal quarter to the Subcommittee on Military Construction, Veterans Affairs and Related Agencies of both the House and Senate. 

Facilities management, life-cycle costs, and construction method 

alternatives.—The Committee believes that the military construction program best serves both our military personnel and the taxpayers when projects are open to competitive bidding from contracVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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tors representing the widest possible range of construction methods. To that end, the Committee urges the Department of Defense 

and the execution agents for military construction, principally the 

Army Corps of Engineers and the Naval Facilities Engineering 

Command, to ensure that requests for proposals or qualifications 

do not arbitrarily foreclose, discourage, or privilege any type of construction method. The Committee continues to encourage a level 

playing field for both traditional construction methods and alternative methods such as permanent modular construction. The Committee also encourages DOD to evaluate the regular use of carbon 

fiber grid precast concrete technology in military construction 

projects. 

The Committee is also concerned by the recent report from the 

Government Accountability Office (GAO–10–436) indicating that 

varying services’ attitudes toward the life-cycle costs of different 

construction methods were based more on pre-formed opinions, personal experiences, and anecdotal evidence rather than quantitative 

information or analyses. The Committee therefore urges DOD and 

the services to conduct further research regarding comparative lifecycle costs for differing types of construction, establish clear goals 

and benchmarks, and ensure these standards are communicated to 

contracting officials. Until such an empirical basis is established, 

the Committee urges DOD and the services to carefully reconsider 

blanket use of any new life-cycle approaches that depart from prior, 

standard practices. 

Life cycle costs and facility window technologies.—The Committee 

supports the Department of Defense’s goal to promote cost-effective 

installations by reducing building energy use within the DOD, and 

is aware that advanced window technologies, such as 

electrochromic windows, can be a key part of achieving such goals. 

The Committee is aware of the need to provide additional support 

to sustain, restore and modernize the building stock of the DOD 

and believes that deployment of demonstrated building envelope efficiency technologies can further both goals. The Committee understands that such efficiency technologies have a higher upfront cost, 

making deployment difficult even when such technologies payback 

quickly. As part of the Department’s funding for installation 

sustainment, restoration, and modernization, the Committee supports building envelope efficiency technologies when these technologies are justified through life-cycle-cost assessments and continue to follow existing Buy America requirements. 

Defense Access Roads FYDP.—The Committee is concerned about 

the lack of future planning for Defense Access Roads (DAR) and 

transportation infrastructure needs around bases beyond fiscal 

year 2014. The Committee urges the Secretary of Defense to work 

with the Secretary of Transportation to prioritize DAR certified 

roads and projects in the outyears 2015–2018, specifically examining bases in communities that have contributed to transportation 

infrastructure that benefits bases and report to the congressional 

defense committees no later than 30 days after enactment of this 

Act on its findings. 

Defense Access Roads project timeline.—The Committee is very 

concerned about the lack of use of the Defense Access Roads program within the Department of Defense. The Committee has heard 

of many worthwhile road construction/expansion projects in and 


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around military installations that are in great need of funding. 

These projects would provide a great benefit to the installations 

and the surrounding communities. Therefore, the Committee directs the Department to review needed projects around military installations as well as a timeline on when those projects will be completed and report back to the Committee not later than 30 days 

after enactment of this Act. If the Department cannot provide a 

timeline, they should explain how the program can be changed to 

meet those requirements. 

Facility closures.—The Committee is concerned that the Department of Defense will authorize the closure of military installations 

under Title 10 USC 2687, without adequate Congressional consultation. The Department is reminded that only Congress can authorizes a Base Realignment and Closure (BRAC) round. Therefore, 

the Committee directs the Secretary of Defense to consult with the 

Committee in advance of any use of title 10 USC 2687. 

Military construction priorities.—The Committee is concerned 

that the Department of Defense does not give the highest priority 

to projects that directly impact the safety and health of our 

servicemembers. The Committee believes that the Department of 

Defense should consider more than the mission requirements and 

training objectives of installations when prioritizing MILCON 

projects. The safety and health of our servicemembers is and will 

always be the top priority of this Committee. The Committee requests the Department submit a report to the Committee along 

with its annual budget submission that prioritizes projects that impact health and safety of our servicemembers. 

Dining facilities deficiencies.—The Committee is aware of serious 

infrastructure deficiencies at dining facilities at Joint Bases. The 

failure or unavailability of a dining facility would result in mission 

stoppage at certain Joint Base facilities, many of which use dining 

facilities constructed several decades ago as temporary structures. 

Further, relative to the total cost of training operations and in the 

context of critical training missions, the Committee believes that 

replacing severely deficient dining facilities is an appropriate, costeffective method of preserving the mission capabilities at Joint 

Bases. The Committee strongly encourages the Department of Defense and each Service which oversees Joint Bases to take into consideration the necessity of reducing risk of mission stoppage by investing in the replacement of dining facilities that have deficiencies 

in infrastructure that cause health and safety issues. 

Air traffic control towers.—Air traffic control towers are a critical 

component of safe and efficient operation at Air Force and Army 

installations with aviation assets. These facilities ensure the safety 

of service members and the aircraft they operate, while preventing 

collisions which would also be dangerous for surrounding communities near Air Force or Army bases. The Committee strongly encourages the Air Force and the Army to prioritize the funding of 

replacement air traffic control towers where existing facilities may 

have obstructed views of their airfields or where structural, mechanical, or electrical components of a facility are severely deficient 

and impact its full operations. 

Aging infrastructure.—The Committee recognizes the need to 

fully support the Department of Defense’s (DOD) requirement to 

replace the aging infrastructure at installations deemed critical in 


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executing the current Defense Strategic Guidance. These installations support missions critical to our Nation’s military pivot to the 

Pacific region and our Nation’s reliance on these installations’ ability to execute their assigned missions will undoubtedly increase in 

the future. This further highlights the necessity of DOD to ensure 

that such installations infrastructure is fully capable to support 

service requirements. 

Real property utilization. The Committee is concerned that the 

Department of Defense (DOD) is not be updating in a timely fashion its non BRAC Real Property Inventory Database, creating a 

significant obstacle to DOD’s ability to maximize the utility of existing real property and to reduce taxpayer expenses. To address 

this concern, the Committee urges the Secretary of Defense to report to the Committee no later than 90 days after enactment of this 

Act on (1) the Department’s strategy for maximizing utilization of 

existing facilities, progress implementing this strategy, and obstacles to implementing this strategy; (2) efforts of DOD’s to systematically collect, process, and analyze data on real property utilization to aid in the planning and implementation of the strategy referred to in (1); (3) the number of underutilized Department facilities, to be defined as facilities rated less than 66 percent utilization, and unutilized DOD’s facilities, to be defined as facilities 

rated at zero percent utilization, in the Real Property Inventory 

Database of DOD; (4) any mitigating factors for why facilities in 

the Database may be listed as zero percent utilization; (5) the annual cost of maintaining and improving underutilized and unutilized DOD facilities; and (6) efforts of the DOD to dispose of underutilized and unutilized facilities. The report may include a classified annex if necessary to fully describe the matters listed above. 

MILITARY CONSTRUCTION, ARMY

(INCLUDING RESCISSION OF FUNDS)

Fiscal year 2014 enacted level ........................................................... $1,104,875,000 

Fiscal year 2015 budget request ....................................................... 539,427,000 

Committee recommendation in the bill ............................................ 526,427,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (578,448,000) 

Fiscal year 2015 budget request .................................................... (13,000,000) 

The Committee recommendation includes a rescission of bid savings under Administrative Provisions. 

Army Privatized Lodging Program.—While the Committee has 

been supportive of the Army’s Privatized Lodging Program (PAL), 

the Committee is very concerned that the Army has not been as 

forthcoming when communicating with local communities regarding economic and related impacts of such facilities. There is a concern of local Hoteliers that these facilities will gain an unfair advantage by being able to offer rooms on Army bases to the general 

public while also benefiting from the Army policy of directing some 

transient soldiers to stay at on-post facilities when possible. The 

Committee believes that the Army needs to better address these 

concerns and therefore directs the Secretary of the Army to develop 

a proactive outreach and communication program with local communities with respect to the impact of both new and existing lodging facilities. The Department of the Army is directed to submit an 


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outreach plan for such a program not later than 90 days after enactment of this bill. 

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2014 enacted level ........................................................... $1,629,690,000 

Fiscal year 2015 budget request ....................................................... 1,018,772,000 

Committee recommendation in the bill ............................................ 998,772,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (630,918,000) 

Fiscal year 2015 budget request .................................................... (20,000,000) 

MILITARY CONSTRUCTION, AIR FORCE

Fiscal year 2014 enacted level ........................................................... $1,052,796,000 

Fiscal year 2015 budget request ....................................................... 811,774,000 

Committee recommendation in the bill ............................................ 719,551,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (333,245,000) 

Fiscal year 2015 budget request .................................................... (92,223,000) 

Air education and training command.—The Committee recognizes the important role that Air Education and Training Command (AETC) plays in recruiting, training, and educating Airmen. 

A key mission set filled by AETC is the initial and follow-on flight 

training for pilots and aircrews. This includes Initial Flight Screening, Specialized Undergraduate Pilot Training, Euro-NATO (North 

Atlantic Treaty Organization) Joint Jet Pilot Training, Undergraduate Remotely-Piloted Aircraft (RPA) Training, and Undergraduate Combat Systems Officer Training among other programs. 

The Committee has been made aware of adverse impacts to aircraft, facilities, equipment, and operations due to flooding and deficiencies in infrastructure at AETC. The Committee encourages the 

Air Force to consider the impact these infrastructure deficiencies 

have on AETC’s ability to train Airmen and to prioritize investments within the military construction account. 

Space launch infrastructure.—The Committee recognizes the national importance of having a safe, secure, reliable, and modern 

space launch range infrastructure to support the national security 

space mission. The Committee is aware that there are a number 

of aging facilities, with structural and technological deficiencies, 

that are indispensable hubs for command, telemetry, and radar 

support for U.S. space launch capabilities as well as warfighters 

down-range. The Committee is concerned that the current condition 

of the aging facilities, such as the Range Communications Facility 

at Cape Canaveral Air Force Station, the Air Force Space Command’s number one current mission MILCON project for fiscal 

years 2013–2016 and the impact such conditions may have on the 

ability of U.S. Air Force Space Command to meet its mission and 

operational requirements until such facilities are recapitalized. The 

Committee urges the Air Force to prioritize resources and future 

requests to Congress, as appropriate, to ensure that U.S. space 

launch range capabilities are in a safe, secure, and reliable condition. 


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MILITARY CONSTRUCTION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2014 enacted level ........................................................... $3,445,423,000 

Fiscal year 2015 budget request ....................................................... 2,061,890,000 

Committee recommendation in the bill ............................................ 2,021,690,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (1,423,733,000) 

Fiscal year 2015 budget request .................................................... (40,200,000) 

Reductions.—The Committee recommendation includes a reduction to Missile Defense Agency’s planning and design of 

$20,000,000 and contingency construction of $9,000,000, the budget 

request. This account has not been used since 2008. 

Transfer of funds.—The accompanying bill provides transfer authority to the Secretary of Defense to allow the transfer of funds 

to such appropriations of the Department of Defense available for 

military construction or family housing as the Secretary may designate. 

DODEA school construction.—The Committee fully supports the 

fiscal year 2015 request for the construction of seven schools in the 

United States and overseas. The Committee however, is concerned 

that the changes that are occurring across the Department of Defense associated with force structure reductions may impact whether funding is needed at an installation or if it is determined not 

to be an enduring installation. The Committee therefore directs the 

Director of the Department of Defense Education Activity (DODEA) 

to report on the status of DODEA funding and provide by location 

any funding that has been placed on hold for any reason to the congressional defense committees 90 days after enactment of this Act. 

Energy Conservation Investment Program.—The Committee believes that as new construction and retrofit projects are undertaken 

at facilities to improve building energy efficiency and achieve the 

objectives prescribed in statutes, executive orders, and initiatives, 

the Department of Defense is encouraged to utilize new and underutilized, low-cost energy efficient technologies that provide the best 

value to taxpayers through minimal lifecycle costs. The Deputy 

Under Secretary for Installations and Environment shall report to 

the congressional defense committees on the Department’s plan to 

implement these technologies across the Department of Defense 

within 60 days of enactment of this Act. 

Special Operations Command resiliency and human performance 

centers.—The Committee’s recommendation does not include funding for the Human Performance Center. The Committee is concerned that these facilities are redundant in nature to existing 

medical facilities, clinics and gymnasiums located at the installations. 

Defense Health Agency budget submission for fiscal year 2015.— 

The fiscal year 2015 budget submission included funding for five 

hospitals. Within the request the Defense Health Agency deliberately underfunded the Fort Bliss Hospital Replacement, Increment 6 and fully funded Rhine Ordnance Barracks Medical Center 

Replacement in Germany. Based on the Work In Progress curve 

(WIP curve) of the Medical Center Replacement in Germany the 

Committee has reduced the request in Germany by $70,000,000 

and provided that funding for the Fort Bliss Hospital. 


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GUARD AND RESERVE ITEM OF INTEREST

Enforcement of border security.—Recognizing the need to bolster 

resources for the enforcement of border security, the Committee encourages the Army National Guard and the Air National Guard to 

consider, design, and construct facilities adjacent to our southwestern border that will support National Guard activities and 

house and support defense assets used by Customs and Border Protection and other law enforcement agencies for the terrestrial, maritime, and aerial surveillance of those borders, to include aircraft 

hangars suitable for unmanned aerial systems. 

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Fiscal year 2014 enacted level ........................................................... $314,740,000 

Fiscal year 2015 budget request ....................................................... 126,920,000 

Committee recommendation in the bill ............................................ 126,920,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (187,820,000) 

Fiscal year 2015 budget request .................................................... – – – 

MILITARY CONSTRUCTION, AIR NATIONAL GUARD

Fiscal year 2014 enacted level ........................................................... $119,800,000 

Fiscal year 2015 budget request ....................................................... 94,663,000 

Committee recommendation in the bill ............................................ 94,663,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (25,137,000) 

Fiscal year 2015 budget request .................................................... – – – 

MILITARY CONSTRUCTION, ARMY RESERVE

Fiscal year 2014 enacted level ........................................................... $156,560,000 

Fiscal year 2015 budget request ....................................................... 103,946,000 

Committee recommendation in the bill ............................................ 103,946,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (52,614,000) 

Fiscal year 2015 budget request .................................................... – – – 

MILITARY CONSTRUCTION, NAVY RESERVE

Fiscal year 2014 enacted level ........................................................... $29,000,000 

Fiscal year 2015 budget request ....................................................... 51,528,000 

Committee recommendation in the bill ............................................ 51,528,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... 22,528,000 

Fiscal year 2015 budget request .................................................... – – – 

MILITARY CONSTRUCTION, AIR FORCE RESERVE

Fiscal year 2014 enacted level ........................................................... 45,659,000 

Fiscal year 2015 budget request ....................................................... 49,492,000 

Committee recommendation in the bill ............................................ 49,492,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... 3,833,000 

Fiscal year 2015 budget request .................................................... – – – 


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NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM

(INCLUDING RESCISSION OF FUNDS)

Fiscal year 2014 enacted level ........................................................... $199,700,000 

Fiscal year 2015 budget request ....................................................... 199,700,000 

Committee recommendation in the bill ............................................ 199,700,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... – – – 

Fiscal year 2015 budget request .................................................... – – – 

The Committee recommendation includes a rescission under Administrative Provisions. 

The North Atlantic Treaty Organization Security Investment 

Program (NSIP) consists of annual contributions by NATO member 

countries. The program finances the costs of construction needed to 

support the roles of the major NATO commands. The investments 

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

communications and information systems, radar and navigational 

aids, and military headquarters, both within NATO nations and for 

‘‘out of area’’ operations such as Afghanistan. 

The U.S. occasionally has been forced to temporarily delay the 

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

Committee within 14 days of the U.S. taking action to temporarily 

delay the authorization of projects, or to temporarily withhold 

funds from previously authorized projects, due to shortfalls in U.S. 

obligation authority. 

FAMILY HOUSING OVERVIEW

Fiscal year 2014 enacted level ........................................................... $1,515,713,000 

Fiscal year 2015 budget request ....................................................... 1,190,535,000 

Committee recommendation in the bill ............................................ 1,190,535,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................................... (325,178,000) 

Fiscal year 2015 budget request .................................................... – – – 

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

costs for family housing privatization projects, and planning and 

design. The operation and maintenance accounts provide funds to 

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

The decrease below the 2014 enacted level is due partly to the 

Department of Defense’s success in implementing the Military 

Housing Privatization Initiative on military installations and the 

reduced requirement for appropriated construction and operating 

costs. The Committee encourages the Department, where feasible, 

to utilize energy efficient, environmentally friendly, and easily 

deployable composite building materials in new family housing construction. 

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, 

including a breakout of military tenant satisfaction rates by 

project. 


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Foreign currency savings and sub-account transfers.—The Committee directs that savings in family housing operation and maintenance accounts from foreign currency re-estimates be used to maintain and repair existing family housing units. The Comptroller is 

directed to report to the Committees on Appropriations of both 

Houses of Congress on how these savings are allocated 90 days 

after enactment of this Act. In addition, the Committee directs the 

services and Defense agencies to notify the Committees on Appropriations of both Houses of Congress within 30 days of a transfer 

of funds between sub-accounts within the family housing construction and family housing operation and maintenance accounts, if 

such transfer is in excess of 10 percent of the funds appropriated 

to the sub-account to which the funds are being transferred. Notifications to the Committees shall indicate the sub-accounts and 

amounts that are being used to source the transfer. 

Leasing reporting requirements.—The Secretary of Defense is directed to report to the Committees on Appropriations of both 

Houses of Congress quarterly on the details of all new or renewed 

domestic leases entered into during the previous quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), including certification that less expensive housing was not available for lease. 

For foreign leases, the Department is directed to: (1) perform an 

economic analysis on all new leases or lease/contract agreements 

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

new or renewed lease agreements that exceed the cost threshold 

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

agreement; and (3) base leasing decisions on the economic analysis. 

Military family housing.—The Committee is concerned about the 

potential repurposing of existing installation property currently 

used for training in order to meet the pressing needs for expanded 

military housing for service personnel and their families. The Committee urges the Department of Defense to work cooperatively with 

state and local governments, as well as relevant nongovernmental 

entities, in communities adjacent to Department installations within the United States, where a need for additional housing has been 

identified by garrison command and such development is supported 

by local government authorities and other relevant entities. Specific focus must be given to meeting the federal government’s obligations under the Uniform Relocation Act of 1970, and the Committee urges the Department of Defense to identify potential 

sources of funding necessary to meet these obligations. The Committee directs the Department to provide a report of its determinations to the Committee no later than 90 days from the enactment 

of this Act. 

FAMILY HOUSING CONSTRUCTION, ARMY

Fiscal year 2014 enacted level ........................................................... $27,408,000 

Fiscal year 2015 budget request ....................................................... 78,609,000 

Committee recommendation in the bill ............................................ 78,609,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 51,201,000 

Fiscal year 2015 budget request ................................................ – – – 


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FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

Fiscal year 2014 enacted level ........................................................... $512,871,000 

Fiscal year 2015 budget request ....................................................... 350,976,000 

Committee recommendation in the bill ............................................ 350,976,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (161,895,000) 

Fiscal year 2015 budget request ................................................ – – – 

FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS

Fiscal year 2014 enacted level ........................................................... $73,407,000 

Fiscal year 2015 budget request ....................................................... 16,412,000 

Committee recommendation in the bill ............................................ 16,412,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (56,995,000) 

Fiscal year 2015 budget request ................................................ – – – 

FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND

MARINE CORPS

Fiscal year 2014 enacted level ........................................................... $379,444,000 

Fiscal year 2015 budget request ....................................................... 354,029,000 

Committee recommendation in the bill ............................................ 354,029,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (25,415,000) 

Fiscal year 2015 budget request ................................................ – – – 

FAMILY HOUSING CONSTRUCTION, AIR FORCE

Fiscal year 2014 enacted level ........................................................... $76,360,000 

Fiscal year 2015 budget request ....................................................... – – – 

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

Comparison with: 

Fiscal year 2014 enacted level ................................................... (76,360,000) 

Fiscal year 2015 budget request ................................................ – – – 

FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2014 enacted level ........................................................... $388,598,000 

Fiscal year 2015 budget request ....................................................... 327,747,000 

Committee recommendation in the bill ............................................ 327,747,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (60,851,000) 

Fiscal year 2015 budget request ................................................ – – – 

FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2014 enacted level ........................................................... $55,845,000 

Fiscal year 2015 budget request ....................................................... 61,100,000 

Committee recommendation in the bill ............................................ 61,100,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 5,255,000 

Fiscal year 2015 budget request ................................................ – – – 

DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND

Fiscal year 2014 enacted level ........................................................... $1,780,000 

Fiscal year 2015 budget request ....................................................... 1,662,000 

Committee recommendation in the bill ............................................ 1,662,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (118,000) 

Fiscal year 2015 budget request ................................................ – – – 

The Family Housing Improvement Fund (FHIF) is authorized by 

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


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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 using 

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 directly appropriated and transferred funds from family housing construction accounts. 

CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE

Fiscal year 2014 enacted level ........................................................... $122,536,000 

Fiscal year 2015 budget request ....................................................... 38,715,000 

Committee recommendation in the bill ............................................ 38,715,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (83,821,000) 

Fiscal year 2015 budget request ................................................ – – – 

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

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

the Chemical Demilitarization program. 

THE DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT

Fiscal year 2014 enacted level ........................................................... $451,357,000 

Fiscal year 2015 budget request ....................................................... 270,085,000 

Committee recommendation in the bill ............................................ 270,085,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (181,272,000) 

Fiscal year 2015 budget request ................................................ – – – 

Legacy BRAC sites.—As the Committee has previously noted in 

H. Rept. 112–94, the Committee remains extremely concerned regarding the current pace of Legacy BRAC site clean-up. The fiscal 

year 2013 National Defense Authorization Act combined the 2005 

and 1990 BRAC accounts so the resources in the 2005 BRAC account could be used to clean up Legacy BRAC sites. However, it is 

unclear to the Committee how these resources shall be used. Therefore, the Committee directs the Department of Defense to report 

back to the Committee within 90 days of enactment of this Act its 

plan to expedite and expand clean-up activities of BRAC legacy 

bases and how it will fully utilize the funds previously appropriated. 

BRAC criteria.—The Committee is concerned that the Department of Defense (DOD) does not consider the intellectual capabilities of a region when evaluating the criteria for BRAC. The Committee recommends that the DOD clearly establish an intellectual 

capabilities criteria consideration, especially when considering academic and technical institutions, in addition to the already established BRAC final selection criteria. The Committee believes that 

DOD should not solely focus on cost analysis and military training 

value when going through the BRAC process, but should heavily 

consider the importance and cost of intellectual capabilities of a region, especially with military academic and technical organizations. 


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ADMINISTRATIVE PROVISIONS

The bill includes 32 provisions of which 26 were in effect in fiscal 

year 2014 and 6 new provisions. The administrative provisions included in the bill are as follows: 

The bill includes section 101 prohibiting the use of funds for payments under a cost-plus-a-fixed-fee contract for construction where 

cost estimates exceed $25,000. An exception for Alaska is provided. 

The bill includes section 102 permitting the use of construction 

funds for the hire of passenger motor vehicles. 

The bill includes section 103 permitting funds to be expended on 

the construction of defense access roads under certain circumstances. 

The bill includes section 104 prohibiting construction of new 

bases in the United States without a specific appropriation. 

The bill includes section 105 limiting the use of funds for the 

purchase of land or land easements that exceed 100 percent of 

value except under certain conditions. 

The bill includes section 106 prohibiting the use of funds to acquire land, prepare sites, or install utilities for family housing except housing for which funds have been appropriated. 

The bill includes section 107 limiting the use of minor construction funds to relocate any activity from one installation to another 

without prior notification. 

The bill includes section 108 prohibiting the procurement of steel 

unless American producers, fabricators, and manufacturers have 

been allowed to compete. 

The bill includes section 109 prohibiting the use of funds to pay 

real property taxes in foreign nations. 

The bill includes section 110 prohibiting the use of funds to initiate a new installation overseas without prior notification. 

The bill includes section 111 establishing a preference for United 

States architectural and engineering services where the services 

are in Japan, NATO member countries, or countries bordering the 

Arabian Sea. 

The bill includes section 112 establishing a preference for United 

States contractors for military construction in the United States 

territories and possessions in the Pacific and on Kwajalein Atoll, or 

countries within the Central Command area of responsibility, except bids by Marshallese contractors for military construction on 

Kwajalein Atoll. 

The bill includes section 113 requiring the Secretary of Defense 

to give prior notice to Congress of military exercises where construction costs exceed $100,000. 

The bill includes section 114 limiting the obligation of funds during the last two months of the fiscal year. 

The bill includes section 115 allowing funds appropriated in prior 

years to be used for new projects authorized during the current session of Congress. 

The bill includes section 116 allowing the use of expired or 

lapsed funds to pay the cost of supervision for any project being 

completed with lapsed funds. 

The bill includes section 117 providing that funds for military 

construction projects are available until the end of the fourth fiscal 


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

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 118 allowing for the transfer of proceeds 

from ‘‘Base Realignment and Closure Account, Part I’’ to the continuing Base Realignment and Closure accounts. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 119 allowing for the transfer of funds 

from Family Housing Construction accounts to the Department of 

Defense Family Housing Improvement Fund and funds from Military Construction accounts to the Department of Defense Military 

Unaccompanied Housing Improvement Fund. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 120, as amended, providing transfer authority to the Homeowners Assistance Program. 

The bill includes section 121, as amended, requiring that funds 

in this title be the sole source of all operation and maintenance for 

flag and general officer quarter houses, and limits the repair on 

these quarters to $15,000 per year without notification. 

The bill includes section 122 making funds in the Ford Island 

Improvement Fund available until expended. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 123 allowing the transfer of expired 

funds to the ‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

The bill includes section 124 prohibiting the use of funds to relocate a unit of the Army that would impact more than 200 personnel. 

The bill includes section 125 allowing the transfer of funds 

among projects and activities in accordance with the reprogramming guidelines. 

The bill includes section 126 prohibiting the use of funds for 

projects at Arlington National Cemetery. 

The bill includes section 127 making funds available for previously authorized military construction projects. 

The bill includes section 128 making funds available for accelerated military construction projects requested by the Department of 

the Army. 

(INCLUDING RESCISSION OF FUNDS)

The bill includes section 129 rescinding funds from prior appropriations Acts. 

(INCLUDING RESCISSION OF FUNDS)

The bill includes section 130 rescinding funds from prior appropriations Acts. 

(INCLUDING RESCISSION OF FUNDS)

The bill includes section 131 rescinding funds from prior appropriations Acts. 


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The bill includes section 132 defining the congressional defense 

committees. 

The bill does not include section 121 as requested to provide authority to the Secretary of the Army to use O&M to supplement repair and renovation at Arlington Cemetery in addition to funds 

provided in title III. 

The bill does not include section 122 as requested to provide authority under a continuing resolution when an authorization bill 

has been enacted to obligate funds that have not been appropriated. 

TITLE II 

DEPARTMENT OF VETERANS AFFAIRS 

Fiscal year 2014 enacted level 1 .................................................... $147,934,261,000 

Fiscal year 2015 budget request 1 ................................................. 158,639,938,000 

Committee recommendation in the bill 1 ...................................... 158,221,261,000 

Comparison with: 

Fiscal year 2014 enacted level ............................................... 10,287,000,000 

Fiscal year 2015 budget request ............................................ (418,677,000) 

Fiscal year 2016 advance budget request 1 .................................. 58,662,202,000 

Fiscal year 2016 Committee recommendation in the bill 1 ......... 58,662,202,000 1 All funding cited excludes amounts in the Medical Care Collections Fund. 

The Department of Veterans Affairs (VA) serves approximately 

48,500,000 people: 22,000,000 veterans and 26,500,000 family 

members of living veterans or survivors of deceased veterans. To 

serve adequately the nation’s veterans, the VA employs 319,000 

people, making it one of the largest Federal agencies in terms of 

employment. 

VETERANS BENEFITS ADMINISTRATION (VBA) 

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2014 enacted level ....................................................... $71,476,104,000 

Fiscal year 2015 budget request ................................................... 78,687,709,000 

Committee recommendation in the bill ........................................ 78,687,709,000 

Comparison with: 

Fiscal year 2014 enacted level ............................................... 7,211,605,000 

Fiscal year 2015 budget request ............................................ – – – 

This appropriation will provide funds for service-connected compensation payments to an estimated 4,569,000 veterans, survivors, 

and dependents. In addition, pension payments will be funded for 

519,000 veterans and their survivors. The average cost per compensation case for veterans in 2015 is estimated at $15,652, and 

pension payments are projected at $12,444. 

The appropriation includes authority to transfer funding not to 

exceed $15,430,000, of which $15,253,000 is for the General Operating Expenses, Veterans Benefit Administration account and 

$177,000 is for the Information Technology Systems account. These 

funds are for the administrative expenses of implementing cost-saving provisions required by the Omnibus Budget Reconciliation Act 

of 1990, Public Law 101–508, the Veterans’ Benefits Act of 1992, 

Public Law 102–568, and the Veterans’ Benefits Improvements Act 

of 1994, Public Law 103–446. These cost-saving provisions include 

verifying pension income against Internal Revenue Service (IRS) 


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and Social Security Administration (SSA) data; establishing a 

match with the SSA to obtain verification of Social Security numbers; and applying the VA pension cap for Medicaid-eligible single 

veterans and surviving spouses alone in Medicaid-covered nursing 

homes. The bill also continues to include 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. 

READJUSTMENT BENEFITS

Fiscal year 2014 enacted level ............................................... $13,135,898,000 

Fiscal year 2015 budget request ........................................... 14,761,862,000 

Committee recommendation in the bill ................................ 14,761,862,000 

Comparison with: 

Fiscal year 2014 enacted level ....................................... 1,625,964,000 

Fiscal year 2015 budget request .................................... – – – 

This appropriation finances the education and training of veterans and servicemembers through the Post 9–11 GI Bill and the 

All-Volunteer Force Educational Assistance Program. Supplemental 

education benefits are also provided to certain veteran members of 

the Selected Reserve and are funded through transfers from the 

Department of Defense (DOD). In addition, certain disabled veterans are provided with vocational rehabilitation, specially adapted 

housing grants, and grants for automobiles with approved adaptive 

equipment. This account also finances educational assistance allowances for eligible dependents of veterans who died from service-connected causes or have a total and permanent service-connected disability, as well as dependents of servicemembers who were captured or are missing in action. More than 80 percent of the funds 

in the account support the Post 9–11 GI Bill. 

VETERANS INSURANCE AND INDEMNITIES

Fiscal year 2014 enacted level ........................................................... $77,567,000 

Fiscal year 2015 budget request ....................................................... 63,257,000 

Committee recommendation in the bill ............................................ 63,257,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (14,310,000) 

Fiscal year 2015 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 veterans 

mortgage life insurance, applicable to individuals who have received a grant for specially adapted housing. 

The amount provided will enable the Department to transfer 

funding to the service-disabled veterans insurance fund and transfer additional amounts for payments for 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. 


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VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

Program account 

Limitation on 

direct loans for 

specially adapted 

housing loans 

Administrative 

expenses 

Fiscal year 2014 enacted level ........................................................ – – – ($500,000) $158,430,000 

Fiscal year 2015 budget request est. .............................................. – – – (500,000) 160,881,000 

Committee recommendation est. in the bill .................................... – – – (500,000) 160,881,000 

Comparison with: 

Fiscal year 2014 enacted level ............................................... – – – – – – 2,451,000 

Fiscal year 2015 budget request ............................................ – – – – – – – – – 

The purpose of the home loan guaranty program is to facilitate 

the extension of mortgage credit on favorable terms by private 

lenders to eligible veterans. This appropriation provides for all 

costs, with the exception of the Native American veterans housing 

loan program, of the Department’s direct and guaranteed loans programs. The Federal Credit Reform Act of 1990 requires budgetary 

resources to be available prior to incurring a direct loan obligation 

or a loan guaranty commitment. In addition, the bill requires all 

administrative expenses of a direct or guaranteed loan program to 

be funded through a program account. Loan guaranties are made 

to servicemembers, veterans, reservists, and single surviving 

spouses for the purchase of homes, condominiums, and manufactured homes and for refinancing loans. The Department guarantees 

part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. The Department requires that a down 

payment be made for a manufactured home. With a Department 

guaranty, the lender is protected against loss, up to the amount of 

the guaranty, if the borrower fails to repay the loan. 

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

Program account Limitation on 

direct loans 

Administrative 

expenses 

Fiscal year 2014 enacted level ........................................................ $5,000 ($2,500,000) $354,000 

Fiscal year 2015 budget request ..................................................... 10,000 (2,877,000) 361,000 

Committee recommendation in the bill ............................................ 10,000 (2,877,000) 361,000 

Comparison with: 

Fiscal year 2014 enacted level ............................................... 5,000 (377,000) 7,000 

Fiscal year 2015 budget request ............................................ – – – – – – – – – 

This appropriation covers the subsidy cost of direct loans for vocational rehabilitation of eligible veterans and includes administrative expenses necessary to carry out the direct loan program. Loans 

of up to $1,108 (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. 

It is estimated that the Department will make 3,099 loans in fiscal year 2015, with an average amount of $929. 


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NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM

Administrative expenses: 

Fiscal year 2014 enacted level ........................................................... $1,109,000 

Fiscal year 2015 budget request ....................................................... 1,130,000 

Committee recommendation in the bill ............................................ 1,130,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 21,000 

Fiscal year 2015 budget request ................................................ – – – 

The Native American Veteran Housing Loan Program, as authorized by title 38 United States Code, chapter 37, subchapter V, provides the Secretary with authority to make direct housing loans to 

Native American veterans for the purpose of purchasing, constructing, or improving dwellings on trust lands. 

VETERANS HEALTH ADMINISTRATION

The Department operates the largest Federal medical care delivery system in the country, with 152 hospitals, 107 domiciliary residential rehabilitation treatment programs, 133 nursing homes, 300 

Vet Centers, 70 mobile Vet Centers, and 821 outpatient clinics 

which include independent, satellite, community-based, and rural 

outreach clinics. Approximately 6,742,000 patients will be treated 

in 2015. 

The Veterans Health Administration (VHA) is comprised of four 

accounts: Medical Services, Medical Support and Compliance, Medical Facilities, and Medical and Prosthetic Research. For the first 

three accounts, the Administration has requested total resources 

for fiscal year 2016 of $58,662,202,000 in direct appropriations to 

fund the three advance appropriations of the VHA. In addition, VA 

will receive an estimated $3,065,000,000 in Medical Care Collections Fund in fiscal year 2015. The Committee also provides 

$588,922,000 for medical and prosthetic research. 

MEDICAL SERVICES

Fiscal year 2014 enacted level ........................................................... $43,597,000,000 

Fiscal year 2015 enacted level ........................................................... 45,015,527,000 

Fiscal year 2015 additional request .................................................. 367,885,000 

Committee 2015 additional recommendation ................................... – – – 

Fiscal year 2016 advance budget request ......................................... 47,603,202,000 

Committee 2016 recommendation in the bill ................................... 47,603,202,000 

Comparison with: 

Fiscal year 2015 enacted level ................................................... 2,587,675,000 

Fiscal year 2016 budget request ................................................ – – – 

This appropriation provides for medical services of eligible veterans and beneficiaries in Department medical centers, outpatient 

clinic facilities, contract hospitals, State homes, and outpatient programs on a fee basis. Hospital and outpatient care is also provided 

by the private sector for certain dependents and survivors of veterans under the civilian health and medical programs for the VA. 

The bill does not include the current year budget request of 

$367,885,000, which would be in addition to the advance appropriation that has already been provided. With $450,000,000 in unobligated balances expected to be available and a drop of $690,000,000 

in projected medical services expenditures, the Committee believes 

that the identified need can be absorbed within existing resources. 

The Committee has not included requested bill language to make available through September 30, 2017, $1,400,000,000 of the MedVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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ical Services appropriation for fiscal year 2016, instead maintaining current policy of providing extended availability on a current 

year rather than advance funding basis. 

Changes in funding requirements due to modeling.—The Committee expects VA to continue to include in the sufficiency letter required by section 117(d) of title 38, United States Code, that is due 

to the Congress on July 31 of each year, a description of any 

changes exceeding $250,000,000 in funding requirements for the 

Medical Services account resulting from the spring recalculation of 

the Enrollee Healthcare Projection Model. 

Presentation of medical care obligations.—The Committee is 

pleased that the VA has adjusted its budget presentation of initiatives to include them within the lines of Health Care Services. This 

display more accurately shows a new activity in the first year and 

then reflects it in the base program lines in subsequent years. The 

presentation of the advance appropriation column in the fiscal year 

2015 budget is more realistic than in previous years when the advance year often showed zero funding for what were actually ongoing activities. 

To ensure that it is informed of changes in planned expenditure 

of medical care ‘initiatives’ during the budget year, the Committee 

repeats the administrative provision requiring the VA to submit a 

reprogramming request if, at any point during the fiscal year, the 

funding allocated for a medical care ‘initiative’ in the fiscal year 

2015 expenditure plan is adjusted by more than $25,000,000 from 

the allocation shown in the corresponding congressional budget justification. The Committee directs the VA to provide an expenditure 

plan within 20 days of receiving a full-year appropriation. 

Allocation of health funding.—The Committee is concerned that 

the process the VA uses to allocate the health services appropriation through the Veterans Integrated Services Networks (VISNs) 

and from them to the medical centers may shortchange the ultimate users because of excessive funding retained at headquarters 

or at the VISNs. The Committee continues to request a report each 

year no later than thirty days after VA allocates the medical services appropriation to the VISNs that identifies: (1) the amount of 

general purpose funding that is allocated to each VISN; (2) the 

amount of funding that is retained by central headquarters for specific purposes, with amounts identified for each purpose; and (3) 

the amount of funding that is retained by each VISN before allocating it to the medical centers, identifying separately the amounts 

retained for purposes such as network operations, network initiatives, and emergencies. 

Homeless assistance 

The Committee provides the full fiscal year 2016 budget request 

of $1,265,000,000 for VA homeless assistance programs, in addition 

to $6,397,595,000 for homeless veterans treatment costs. These programs include the Homeless Providers Grant and Per Diem, the 

Domiciliary Care for Homeless Veterans, the Supportive Services 

for Low Income Veterans and Families, and the Department of 

Housing and Urban Development—Department of Veterans Affairs 

Supported Housing (HUD–VASH) programs. 

Homeless female veterans.—The Committee remains committed 

to helping homeless veterans and commends the VA for its efforts 


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in reducing homelessness among the veteran population. However, 

the Committee is concerned about the VA’s efforts to reduce homelessness among female veterans. The Committee requests an analysis of the challenges facing homeless female veterans and the 

means within the VA to address those challenges. The report 

should address how the VA will work to provide equal treatment 

and assistance for female veterans. The Committee requests that 

this report be provided within 90 days of enactment of this Act. 

Expanding the definition of homeless veteran.—The Committee 

supports the authorizing committees’ efforts to broaden the definition for homeless veterans to include any individual or family who 

is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or other dangerous or life-threatening conditions in the individual’s or family’s current housing situation, including where the health and safety of children are jeopardized, and who have no other residence and lack the resources 

or support networks to obtain other permanent housing. 

Mental health issues 

The Committee provides the full fiscal year 2016 budget request of $7,448,900,000 for mental health programs. Of the amounts provided for mental health programs in fiscal year 2015, an additional 

$20,000,000 shall be used for suicide prevention outreach. The Department is directed to provide a report to the Committee no later 

than 30 days after enactment of this Act identifying a detailed expenditure plan for all suicide outreach programs. 

Military sexual trauma (MST).—Recent studies have shown that 

servicewomen who experience sexual assault while serving in the 

military are far more likely to develop post-traumatic stress disorder (PTSD), compared to other female veterans. The Committee 

strongly encourages the VA to maximize the availability of mental 

health services available to veterans who were victims of MST. 

Post-Traumatic Stress Disorder Study.— The Committee understands that new technologies using magnetic resonance therapy 

have successfully treated Veterans with PTSD. Recent clinical 

trials and pilot studies have produced promising results in the evolution of treatment for PTSD. The Committee encourages the VA 

to report to the Committee about whether it uses Magnetic Resonance Therapy to treat PTSD, and if not, whether it would be appropriate to conduct a study on use of the technology. 

Neurological conditions.—The Committee is very interested in 

the progress the VA is making regarding neurological conditions, 

particularly PSTD and traumatic brain injury (TBI)-related injuries. The Committee requests a report within 90 days of the enactment of this bill detailing efforts and programs addressing these 

issues. This report should include detailed expenditures and current year spending levels versus prior year spending. 

Mental health provider training.—The Committee is concerned 

about the impact of VA’s accreditation process, which excludes from 

employment at the VA qualified marriage and family therapists 

(MFTs) from educational institutions that are regionally accredited. 

This unnecessarily causes vacant mental health provider positions 

within the VHA system at a time when these services are in critical need. The Committee understands that VA uses national accrediting bodies because the regional accrediting bodies do not 


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cover the occupation at a national level standard of care. But the 

Committee encourages VA to explore the possibility of using a 

grouping of multiple regional accrediting bodies under the auspices 

of a national accrediting body. The Committee directs the VHA to 

submit a report no later than 90 days after enactment of this Act 

specifying how it plans to fill all the vacant mental health positions 

by the end of fiscal year 2015. 

Clinical psychologist supply.—The Committee is aware that the 

Psychological Clinical Science Accreditation System (PCSAS) in 

September 2012 received recognition and accreditation authority 

from the Council for Higher Education Accreditation (CHEA) to 

provide accreditation of doctoral programs in psychological clinical 

science, and that the Veterans Health Administration has been 

modifying its regulations over the past year to recognize PCSAS 

graduates in its training and employment settings. The Committee 

is disappointed that the process has now taken more than one year 

and urges the VHA to recognize graduates of PCSAS-accredited 

psychological doctoral programs without any additional delay. 

Community-based mental health care.—The Committee urges the 

VA to begin the implementation of the community-based mental 

health initiative established in the fiscal year 2014 conference report. The VA should select the major metropolitan areas with substantial veterans populations and health infrastructure, coordinate 

with local VA facilities, and recruit behavioral health partners. 

Community-based awardees should be evaluated on the basis of the 

metrics identified in the fiscal year 2014 conference report. The 

Committee requests a report on these efforts no later than 60 days 

after enactment of this Act. 

Access to alternative treatment options.—The Committee encourages the VA to include non-invasive treatments in its scope of approved treatment options for veterans receiving mental health care. 

Non-invasive treatments should be considered an acceptable component of any treatment regimen, particularly in light of an increase in co-occurring substance abuse issues. 

Rural health issues 

The Committee provides the full fiscal year 2016 budget request 

of $250,000,000 to improve access and quality of care for the more 

than 3,100,000 veterans residing in rural and highly rural areas. 

The Committee directs the Office of Rural Health to submit to the 

Committee within 30 days of enactment of this Act an operating 

plan for this funding, as well as any changes to that operating plan 

at the start of the fiscal year for which the funds are provided. 

Patient-Centered Community Care Program.—The Committee 

has supported the Department’s efforts to provide more efficient 

medical services to veterans in rural areas through the patient-centered community care program (PC3). The Committee continues to 

urge the Department to ensure that PC3 contractors consider public hospitals in their implementation plans, especially when a public hospital is adjacent or proximate to a VA clinic, outpatient facility or long-term care facility. 

The Committee believes that the PC3 initiative could provide an 

effective method for improving convenience of care and decreasing 

costs when patients require services not readily available at local 

VA medical centers. The Committee requests that, not later than 


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30 days after enactment of this act, the VA report on the progress 

of the PC3 program, describing the progress of program implementation, the types of care provided, the level of communication and 

coordination between the VA and providers, the cost effectiveness 

of the program, the reduction of wait times, the timeliness of payments to contractors, and the satisfaction level of patients who 

have participated in the program. Because this is a new program, 

baseline data and reporting is necessary to ensure that the Committee can conduct oversight on the program’s performance and respond to areas in need of improvement. 

The Committee also requests the VA Office of Inspector General 

to do a cost assessment study of PC3. VA has described PC3 as an 

efficiency-improving contract and estimates $13,000,000 in PC3 

savings in fiscal year 2014. Consequently, it is important to do a 

review of the actual costs associated with the contract and potential savings. 

The Committee understands that VA is not planning to conduct 

a controlled study to compare prices, health outcomes or other 

quality measures of PC3 to traditional fee-based care. The Committee instructs VA to contract with an external evaluator to do a 

cost and quality comparison study of PC3. The comparative study 

should be provided to the Committee by March 1, 2015. 

The Committee understands that VA will be conducting semi-annual briefings to monitor the uptake and use of the PC3 contract, 

the results from specific VISNs, and associated cost savings. The 

Committee would like to be kept informed of the data from the 

briefings to learn how the contract progresses in the coming years. 

Care through multi-specialty clinics.—The Committee remains 

concerned about VA’s ability to provide high quality, reliable, accessible, timely and efficient health care to veterans in rural states. 

The Committee strongly encourages the VA to pursue multi-specialty clinics (MSC), giving special consideration to future MSCs 

that have the potential to partner with private medical institutions 

and or medical teaching facilities. These partnerships could provide 

significant benefits to current and future veteran patients by significantly increasing the services delivered to veterans. Furthermore, these affiliations could significantly enhance VA research 

and education missions. 

Rural transportation.—The Committee recognizes the importance 

of providing adequate access to needed services, including for veterans living in rural communities. The Committee encourages the 

VA to propose authorizing legislation to permit including considerations of a veteran’s distance from a VA facility as a criterion in 

addition to the number of veterans in a given area in implementing 

recent statutory changes providing transportation grants to veterans service agencies and veterans service organizations. 

Other health issues 

Dialysis.—The Committee requests the VA to obtain an independent and full evaluation of the four-site dialysis pilot program 

by September 30, 2015. In the interim, in an effort to improve efficiencies and save taxpayer funds, the VA should not create duplicate contract-provided dialysis capacity. An independent evaluation 

of the four-pilot program will give the Committee the opportunity 


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to consider the findings and determine if such findings justify expanding VA-operated dialysis clinics. 

Hepatitis C virus.—The Committee has previously encouraged 

the VA to increase hepatitis C (HCV) testing and work to implement the Center for Disease Control and Prevention’s (CDC) HCV 

testing recommendations within the VA system. In light of the 

growing burden of hepatitis C-related liver complications and mortality among Veterans and the recent introduction of more effective 

treatments for HCV, the Committee directs the VA to establish a 

plan for testing and treating veterans enrolled in the VHA system 

and considered to be at risk for hepatitis C, including Vietnam-era 

veterans in the baby boomer birth cohort. Additionally, the VA 

shall submit a report to the Committee, no later than six months 

after enactment of this Act, updating its 2010 report, The State of 

Care for Veterans with Chronic Hepatitis C, on the prevalence of 

hepatitis C among veterans and detailing the estimated impact its 

HCV treatment plan will have on preventing hepatitis C-related 

cirrhosis, hepatocellular carcinoma, and mortality among veterans. 

HIV/AIDS among veterans.—The VA has the opportunity and responsibility to ensure that veterans are tested for HIV and receive 

appropriate care. The number of veterans ever tested remains 

below the national average and reported infection rates exceed the 

CDC threshold of 0.1 percent for routine HIV screening. The Committee encourages the VA to further increase testing rates and to 

provide reports of progress on the number of veterans tested and 

activities through the annual HIV Testing Rates reports. 

Prostheses.—The Committee is disappointed in reports of VA providers ‘‘sanding down’’ prosthetics that were made for men in order 

to fit female patients, and requests that the VA ensure that there 

is prosthetic equipment proportionate to the amount of female veterans in need. 

Prescription drug abuse.—The Committee is pleased with the 

Opioid Safety Initiative and the results it is producing in reducing 

the dependence of veterans on prescription opioids. The Committee 

requests a report 60 days after enactment of this Act providing updated findings on patient outcomes in the initiative, any VA plans 

to expand it to other VISNs, and efforts to circulate treatment protocols from the Initiative to all VISNs. 

Service dogs.—The VA supports service dogs that assist veterans 

with vision, hearing, and mobility impairments. The Committee encourages VA to partner with nonprofits that match veterans with 

service dogs. The VA should explore new opportunities for service 

to these veterans, possibly through a pilot project, that allows veterans to train shelter dogs, and to continue its research on the 

mental health benefits of service dogs. 

Ophthalmology services.—The Committee urges the VA to help 

ensure veterans have access to high quality care by moving quickly 

with its plans to expand its national ophthalmology services. 

Medical school affiliations with VA health care facilities.—The 

Committee continues to prioritize collaboration between VA health 

care facilities and historically black health professions schools. The 

Committee acknowledges the improved collaboration, particularly 

with smaller community-based sites. However, the Committee continues to be concerned by the lack of historically black colleges and 

universities (HBCU) medical school participation and collaboration 


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with local VA hospitals located in large urban areas with HBCU 

medical schools. The Committee directs the Secretary of VA to provide a report on the VA’s plan for expansion of HBCU medical 

school participation with local VA medical facilities. The report 

should be submitted to the Committee no later than 90 days after 

enactment of this act. 

Transportation services.—The Committee commends VA for its 

collaborative efforts with the Department of Transportation and 

other Federal agencies to improve transportation resources for veterans. In particular, the Veterans Transportation and Community 

Living Initiative, the Veterans Transportation Service, VA Beneficiary Travel, and the Highly Rural Transportation Grant programs make use of existing local public transportation system options, where appropriate. 

Pharmacy dispensing process for specialized medicines.—The 

Committee urges the VA to consider a pilot program to study the 

use of specialized automated pharmacy workflow systems that 

manage the entire intravenous and oral liquid dose preparation 

and dispensing process within the VHA in order to promote intravenous and oral liquid dose preparation safety, reduce waste, and 

improve health system pharmacy productivity. The Committee believes that such a pilot program focused on the specialized field of 

intravenous and oral dose preparation would improve staffing productivity and patient safety. 

MEDICAL SUPPORT AND COMPLIANCE

Fiscal year 2014 enacted level ........................................................... $6,033,000,000 

Fiscal year 2015 enacted level ........................................................... 5,879,700,000 

Fiscal year 2016 advance budget request ......................................... 6,144,000,000 

Committee 2016 recommendation in the bill ................................... 6,144,000,000 

Comparison with: 

Fiscal year 2015 enacted level ................................................... 264,300,000 

Fiscal year 2016 advance budget request ................................. – – – 

The Medical Support and Compliance appropriation funds the expenses of management and administration of the Department’s 

health care system, including financial management, public health 

and environmental hazard, quality and performance management, 

medical inspection, human research oversight, training programs 

and continuing education, security, volunteer operations, and 

human resources. 

The Committee has not included requested bill language to make 

available through September 30, 2017, $100,000,000 of the Medical 

Support and Compliance appropriation for fiscal year 2016, instead 

maintaining current policy of providing extended availability on a 

current year rather than advance funding basis. 

MEDICAL FACILITIES

Fiscal year 2014 enacted level ........................................................... $4,957,000,000 

Fiscal year 2015 enacted level ........................................................... 4,739,000,000 

Fiscal year 2016 advance budget request ......................................... 4,915,000,000 

Committee 2016 recommendation in the bill ................................... 4,915,000,000 

Comparison with: 

Fiscal year 2015 enacted level ................................................... 176,000,000 

Fiscal year 2016 advance budget request ................................. – – – 

The Medical Facilities appropriation provides funds for the operation and maintenance of the Department’s health care system’s 


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capital infrastructure. Included under this heading are provisions 

for costs associated with utilities, engineering, capital planning, 

leases, laundry, groundskeeping, garbage, housekeeping, facility repair, and property disposition and acquisition. 

The Committee has not included requested bill language to make available through September 30, 2017, $250,000,000 of the advance 

Medical Facilities appropriation for fiscal year 2016, instead maintaining current policy of providing extended availability on a current year rather than advance funding basis. 

In-patient facilities for female veterans.—The Committee looks 

forward to receiving the report directed in the fiscal year 2014 bill 

on the availability of in-patient facilities for female veterans, an inventory of available resources, and recommendations on areas for 

improvement. 

Non-recurring maintenance costs.—The Committee is aware that 

the VA has numerous non-recurring maintenance projects that cost 

millions of dollars to complete, yet the Administration continues to 

request a mere fraction of the funding necessary to complete these 

maintenance needs. The Committee believes that while the Strategic Capital Investment Planning (SCIP) process has improved the 

VA construction process, it still lacks transparency about future 

plans for non-recurring maintenance at VA facilities. The Committee believes that non-recurring maintenance projects for the 

most part are small dollar items that can be completed quickly to 

improve the quality of life and care given to Veterans. Therefore, 

the Committee directs the VA to provide a report to the Committee 

no later than 60 days after enactment of this Act explaining how 

non-recurring maintenance projects are rated, a timeline for completion of these projects, and their cost. 

MEDICAL AND PROSTHETIC RESEARCH

Fiscal year 2014 enacted level ........................................................... $585,664,000 

Fiscal year 2015 budget request ....................................................... 588,922,000 

Committee recommendation in the bill ............................................ 588,922,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 3,258,000 

Fiscal year 2015 budget request ................................................ – – – 

This appropriation provides for medical, rehabilitative, and 

health services research. The bill makes this account funding available through September 30, 2016. Medical research is an important 

aspect of the Department’s programs, providing complete medical 

and hospital services for veterans. The prosthetic research program 

is also essential in the development and testing of prosthetic, orthopedic, and sensory aids for the purpose of improving the care and 

rehabilitation of eligible disabled veterans, including amputees, 

paraplegics, and the blind. The health services research program 

provides unique opportunities to improve the effectiveness and efficiency of the health care delivery system. Budgetary resources from 

a number of areas, including appropriations from the medical care 

accounts, reimbursements from DOD, grants from the National Institutes of Health, private proprietary sources, and voluntary organizations, provide support for the Department’s researchers. Estimated total research resources from all sources in 2015 are 

$1,863,000,000. The VA will support about 2,200 research projects 

during fiscal year 2015. 


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Prosthetics.—The Committee strongly supports the fiscal year 

2015 budget request for Medical and Prosthetic Research. Recognizing that approximately six percent of wounded veterans returning from Iraq and Afghanistan are amputees, and the number of 

veterans accessing VA health care for prosthetics and sensory aids 

continues to increase, this funding greatly enhances the quality of 

life of veteran amputees. Since three percent of military amputees 

are female, the Committee feels that a proportionate amount of 

prosthetics research should be focused on prosthetics intended for 

females. The need for this type of research is acute, as most prostheses are designed to fit male veterans. 

Advanced prosthetics.—The Committee encourages the VA to 

fund research at the intersection of bioengineering, neuroscience, 

and rehabilitation to support neural interfaces to peripheral nerves 

and advanced prosthetics that deliver more functionality to amputees. 

Intelligent prostheses.—The Committee requests a report within 

90 days of enactment of this act on current efforts in the use of intelligent prosthetics, highlighting delivery of more functionality to 

amputees. The Committee encourages the VA to create a working 

group on intelligent prosthetics that includes representatives from 

the VA, DOD, the National Science Foundation and the National 

Aeronautics and Space Administration. 

Collaboration with research universities.—The Committee encourages the VA to strengthen its collaborations with research universities and teaching hospitals for the treatment and research of 

mental health disorders, such as PTSD and traumatic brain injury, 

to improve the psychological health of veterans and train mental 

health professionals so they will understand the unique needs of 

Veterans. The Committee repeats its request for a report on current VA-university partnerships on mental health research and 

training no later than 90 days after enactment of this Act. 

Colorectal cancer.—Colorectal cancer is treatable if detected 

early, yet it is the second leading cause of cancer death in America. 

The VA has made screening patients for colorectal cancer a priority. The National Cancer Institute estimates the annual cost of 

colorectal cancer will be almost $20,000,000,000 by 2020. Medicare 

and the VA will be responsible for much of that cost. The Committee encourages the VA to support additional research and development in the field, including investigation of a less costly blood 

test for colorectal cancer. 

Point of injury care.—The Committee is very concerned about 

care from the point of injury and transport to the hospital. The 

Committee encourages consultation with neurological hospitals for 

best practices at the site of the injury and requests a report by 90 

days after enactment of this Act on what new or improved diagnostic tools are needed at the site of the injury. 

Traumatic brain injury treatment.—The Committee encourages 

the VA to evaluate the effectiveness of promising prophylactic 

treatments for TBI involving the development of drugs administered via intranasal application. Upon review, if the scientific evidence warrants, the VA should identify opportunities to support 

the clinical trials and toxicity studies that would be required to 

move these treatments into practice. 


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Access to research findings.—The Committee is pleased that VA 

is developing a public access policy to make publicly available the 

research findings that are financed through VA. The Committee 

understands that VA is working with the White House Office of 

Science and Technology Policy to ensure that its policy is consistent 

with the government-wide effort on public access and is planning 

to use the resources of the National Institutes of Health PubMed 

Central to implement its program. The Committee requests a report 90 days after enactment of this Act describing the status of 

the VA public access program, the timeline for its implementation, 

and estimates of the number of articles that will be posted by fiscal 

year. 

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 Department uses these funds for medical care and 

services to veterans. The estimate of fees that will be collected in 

fiscal year 2015 is $3,065,000,000. 

Third party health billing collection.—The Committee directs the 

VA to submit an annual report identifying the amount of third 

party health billings that are owed to VA and the annual amount 

collected. The report should describe VA’s plan to capture the third 

party billings that currently go uncollected. 

NATIONAL CEMETERY ADMINISTRATION

Fiscal year 2014 enacted level ........................................................... $250,000,000 

Fiscal year 2015 budget request ....................................................... 256,800,000 

Committee recommendation in the bill ............................................ 256,800,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 6,800,000 

Fiscal year 2015 budget request ................................................ – – – 

The National Cemetery Administration (NCA) 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 of, in 

any national cemetery with available grave space, the remains of 

eligible deceased servicemembers and discharged veterans, together 

with their spouses and certain dependents, and to permanently 

maintain their graves; to provide headstones for, and to mark 

graves of eligible persons in national, State and tribal, and private 

cemeteries; to administer the grant program for aid to States and 

tribal governments in establishing, expanding, or improving State 

and tribal government veterans’ cemeteries; and to administer the 

Presidential Memorial Certificate Program. This appropriation will 

provide for the operation and maintenance of 133 operational national cemeteries and 33 other cemeterial installations. 

The bill includes language making $25,600,000 of the total available until September 30, 2016. 

Rural areas.—In the explanatory statement that accompanied 

the Consolidated and Further Continuing Appropriations Act of 


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2013 (P.L. 113–6), the Committees expressed concern that the NCA 

is not adequately serving the nation’s veterans in rural areas. The 

Act included legislative language in House Report 112–491 requiring the Secretary to provide a report outlining a strategy to address the shortcomings identified with proposed policies and an implementation timeframe, no later than six months after enactment 

of Public Law 113–6. The Committee reiterated its support of this 

request in House Report 113–90, and looks forward to timely receipt. 

DEPARTMENTAL ADMINISTRATION

GENERAL ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2014 enacted level * ........................................................ $327,591,000 

Fiscal year 2015 budget request ....................................................... 321,591,000 

Committee recommendation in the bill ............................................ 321,591,000 

Comparison with: 

Fiscal year 2014 enacted level * ................................................. (6,000,000) 

Fiscal year 2015 budget request ................................................ – – – 

* Funding included in this account for fiscal year 2014 for the Board of Veterans Appeals is now shown in 

that account for comparability purposes. 

The General Administration account provides funds for the Office 

of the Secretary, six Assistant Secretaries, and three independent 

staff offices. The Committee has included bill language to make 

available through September 30, 2016, up to $16,080,000 of these 

funds and to permit the transfer of funds in this account to the 

General Operating Expenses, Veterans Benefits Administration account. 

VA contracting issues.—The Committee continues to be concerned about the contracting practices of the Department of Veteran Affairs. The Committee directs the Department to provide a 

report due not later than 60 days after enactment of this Act that 

describes the number of active prime contractors that do not (1) 

have a satisfactory performance record; (2) have a satisfactory 

record of integrity and business ethics; or (3) have pending civil 

lawsuits brought by subcontractors and material suppliers for failure to make timely payments. 

VA budget office communication.—The Committee has traditionally channeled most of its inquiries and requests for information 

and assistance through the VA budget office. The Committee reiterates its longstanding position that, while the Committee reserves 

the right to call upon all VA offices, the primary communication between the Committee and the VA should normally be through the 

budget office. Responses to Committee inquiries, regardless of 

whether they concern funding or policy, are to be transmitted without delay by other offices within the VA, unless otherwise requested by the Committee. In addition, to facilitate the work of the 

Committee, it expects that the Department will make available to 

all personal and committee staff of Members of the Committee the 

same direct contact with the budget office. The Committee also expects that a staff member of the VA budget office will be present 

at every meeting held between the Chairman and ranking member 

of the Full Committee and Subcommittee and the Secretary or 

other senior VA officials. 


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Quarterly full-time equivalents (FTE) reports.—The Committee 

continues to request that the VA provide, on a quarterly basis, the 

total current FTE by appropriation account and, in the case of General Operating Expenses, Veterans Benefits Administration, by 

program. The Committee feels it needs to have current staffing information throughout the year in order to monitor the use of salaries and expenses resources. 

Additional budgetary information.—The Committee continues its 

request that items described in the fiscal year 2014 House report 

113–90 continue to be included in the budget justifications submitted each year. In addition, the Committee requests that the following items be addressed in the budget justifications: • Do not include the cost of proposed legislation in charts 

identifying current law obligations. • Display a current year estimate column for all accounts, 

not just medical care accounts. For the medical care accounts, 

the re-estimate column should be displayed for both the budget 

year and advance year. • Provide a reimbursable FTE summary chart for the General Administration account for past year, current year, and 

budget year. • Provide an FTE by grade and regional/central office totals 

chart for the Information Technology account. • Include in the Board of Veterans Appeals justification information by fiscal year on the number of appeals received, the 

number of cases decided, the number of cases remanded, the 

beginning-of-year and end-of-year appeals inventory, and the 

average number of days required to resolve appeals. Also include projected receipt and decisions on cases for the five years 

following the budget year. 

Performance measures.—While the Committee is pleased that VA 

included performance measures in the fiscal year 2015 budget justifications, the Committee is concerned that these performance 

measures were not result-oriented and did not clearly demonstrate 

the extent to which performance reporting under 31 USC 1116 

demonstrates that prior year investments in programs, projects, 

and activities are tied to progress toward achieving performance 

and priority goals and include estimates for how proposed investments will contribute to additional progress. The Committee believes that in order for these measures to be beneficial for legislative oversight they must directly link the agency’s performance 

plan under 31 USC 1115(b) and performance goals designated as 

agency priority goals under 31 USC 1120 (b) to such agency funding requests. The Committee instructs the agency, in consultation 

with GAO, to develop result-oriented performance measures on the 

improvement of the quality and accessibility of health care, benefits, and memorial services; performance measures on the accuracy 

and reduction of the amount of time it takes to process veterans 

disability benefit claims; veterans education performance measures; 

vocational rehabilitation and employment performance measures; 

housing performance measures; insurance coverage performance 

measures; burial program performance measures; and performance 

measures for the Board of Veterans Appeals. The information 

should be categorized by the most recent fiscal year and previous 

fiscal year for comparison and should include performance measVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00042 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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ures on outcome (results/impact); output (volume); efficiency; and 

customer service. This information should be reported to the Committee within 90 days of enactment of this act. 

Staff relocations within VA.—The bill continues the administrative provision requiring written notification 15 days prior to organizational changes which result in the transfer of 25 or more fulltime equivalent staff from one organizational unit of the Department to another. 

Senior VA staff performance.—Congress has been concerned by 

past instances of VA Senior Executive Service (SES) employees receiving performance bonuses when patient care standards have not 

been met in VA hospitals or when the disability claims backlogs 

have grown. However, recent actions taken by the VA have assuaged Member concerns. VA has centralized Senior Executive 

award decisions, strengthened the link between organizational performance and awards, added an additional level of review in consideration of awards, and significantly reduced the value of awards 

compared to prior years. Most importantly, the Secretary has demonstrated his willingness to use the bonus system as a way to reward and penalize staff based on performance. As one example, he 

made the decision to withhold performance awards for the entire 

Veterans Benefits Administration Senior Executive cadre based on 

failure to meet targets on reducing disability claims backlogs. The 

Secretary has all the authority he needs to use bonuses to influence 

performance. 

BOARD OF VETERANS APPEALS

Fiscal year 2014 enacted level ........................................................... $88,294,000*

Fiscal year 2015 budget request ....................................................... 94,294,000 

Committee recommendation in the bill ............................................ 94,294,000 

Comparison with: 

Fiscal year 2014 enacted level* .................................................. 6,000,000 

Fiscal year 2015 budget request ................................................ – – – *Funding for the Board of Veterans Appeals was provided within the General Administration account for 

fiscal year 2014 but is shown here for comparability purposes. 

The bill makes $9,429,000 of this funding available through September 30, 2016. 

The bill separates this account from the larger General Administration account, as requested in the budget. The Committee believes the separate account will provide more transparency and accountability as the Board of Veterans Appeals (BVA) faces a greatly increased workload in coming years as the disability claims 

backlog diminishes and veterans appeal their awards. 

BVA is the component of VA responsible for making final decisions on behalf of the Secretary for the thousands of claims for veterans benefits that are presented to BVA for appellate review. The 

majority of the BVA’s workload derives from the benefit claims initiated at the VBA regional offices. The appellate process has multiple steps, most of which occur at the local regional office level. If 

a veteran is not satisfied with a regional office determination, he 

or she may appeal to BVA for a final agency decision. BVA adjudicates appeals covering all areas of veterans benefits, but most of 

the workload concerns appeals for veterans’ disability compensation 

or pension benefits. Appeals received by BVA are projected to increase from 47,763 in 2011 to 72,786 cases in 2015. 


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Actions to reduce the claims appeal backlog.—The VA has set a 

goal to process all disability claims within 125 days, with 98 percent accuracy by the end of 2015. While it is critical that this goal 

be achieved, it is also essential that the growing backlog in veteran 

appeals claims be addressed by the VA. The Committee fears the 

VBA has neglected the appeals of veteran claims in its effort to reduce the disability claims backlog and has lost sight of the appeals 

process. The VBA should consider hiring more staff to specifically 

work on lowering the growing backlog of appeals. The BVA is encouraged to do everything possible to lower the appeals processing 

time. The BVA should provide an annual report on its actions to 

lower the backlog in appeals claims. 

The Committee requests a report identifying the BVA’s definition 

of backlog and whether that definition accounts for all the time a 

claim resides in VBA or just when it reaches the Board. 

GENERAL OPERATING EXPENSES, VETERANS BENEFITS

ADMINISTRATION

Fiscal year 2014 enacted level ........................................................... $2,465,490,000 

Fiscal year 2015 budget request ....................................................... 2,494,254,000 

Committee recommendation in the bill ............................................ 2,514,254,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 48,764,000 

Fiscal year 2015 budget request ................................................ 20,000,000 

The General Operating Expenses, Veterans Benefits Administration account provides funding for the VBA to administer entitlement programs such as service-connected disability compensation, 

education benefits, and vocational rehabilitation services. 

The bill makes available through September 30, 2016, up to $125,000,000 of these funds. 

The Committee has added $20,000,000 to the budget request to 

be used for three purposes: the Veterans Claims Intake Program 

(VCIP) records scanning system, the centralized mail initiative, 

and staff overtime. The Committee believes the additional funds for 

VCIP and overtime will further increase VA’s capacity to tackle the 

claims backlog. The centralized mail initiative will also reduce 

claims processing time, and its decommissioning of documents will 

save VA resources as fewer documents will be stored in hardcopy. 

Claims processing backlog 

Projected staffing.—The Committee is concerned that VBA may 

not be requesting adequate resources to expeditiously handle either 

the current backlog or to mitigate a predictable influx of new 

claims. Therefore, in addition to maintaining the current reporting 

requirements as listed in House Report 113–90, the Committee directs VA to provide a report outlining future staffing requests 

based on anticipated separation numbers provided by DOD no later 

than 6 months after enactment of this Act. While this report is for 

the use of the Appropriations Committee, it is also to be made 

available by the VA Office of Congressional and Legislative Affairs 

to any Member of the House of Representatives upon request. 

Fully developed claims.—The Committee commends the VA on 

efforts to reduce the disability claims backlog and encourages the 

VA to work more closely with congressional offices to eliminate the 

remaining backlog and improve claims processing time. The Fully 


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Developed Claim (FDC) program instituted by the VA has proven 

to be an efficient and effective tool when utilized. The Committee 

supports the partnership the VA has established with veteran service organizations to expand the FDC program and urges the VA to 

develop similar partnerships with congressional offices to move 

more veterans into the FDC process. 

Other issues 

Serving underserved areas.—Not later than 180 days after the 

date of the enactment of this act, the Committee requests the Secretary of VA to submit to Congress a report detailing the VBA’s efforts to serve veterans in remote and underserved areas such as 

areas in Arizona, the Commonwealth of the Northern Mariana Islands, and Alaska. The report shall include the number of veterans 

living in such areas, the number of veterans served, the type of 

services available and provided, the frequency of service, follow-up 

actions, and the method of follow-up. The department shall also include in the report the costs incurred for providing service to veterans in these areas, the success or sufficiency of efforts and plans 

to improve services to veterans living in remote and underserved 

areas, as well as the resources needed to ensure these veterans receive access to earned benefits. 

Military sexual trauma (MST)-related claims.—The Committee is 

pleased with the VA’s increased focus on disability claims based on 

in-service personal assault, including VA’s intensive training and 

identification of specialized employees for MST-related claims. 

However, the Committee continues to be informed about inconsistencies in the ratings process for MST victims and a lack of sufficient VA data identifying weaknesses and what strides have been 

made. Accordingly, the Committee requests the VA to report to the 

Committee certain information regarding MST-related claims to 

ensure veterans across the country receive consistent, timely and 

accurate decisions based on these claims. The VA should include in 

the report: (a) the number of MST-related claims submitted in fiscal year 2014; (b) the number and percentage of claims submitted 

by gender; (c) the number of denied claims, including number and 

percentage by gender; (d) the number of approved claims, including 

number and percentage by gender; (e) the number of claims assigned to each rating percentage; (f) the three most common reasons given for denial of such claims under section 5104(b)(1) of title 

38, U.S.C.; (g) the number of denials that were based on the failure 

of the veteran to report for a medical examination; (h) the number 

of claims that were pending at the end of the fiscal year (including 

claims on appeal); (i) the average number of days to complete MST 

claims; and (j) a description of the training provided to employees 

of VBA specifically with respect to covered claims, including the 

frequency, length and content of such training. 

Job placement.—The Committee recommends that the VA, in 

conjunction with the Department of Labor, consider establishing a 

specialized job placement demonstration program. This program 

would target job placement efforts for those veterans who have not 

been able to secure employment through services currently offered 

by the VA and the Department of Labor. The program would be administered by an entity that has significant experience working 

with local businesses on job placement. 


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Services for job-seekers.—The Committee believes that the employment of veterans should be a top priority for the Secretary and 

is pleased that the VA is working to upgrade VetSuccess.gov to provide a system that connects employers with registered job-seeking 

veterans. The improved system, called the eBenefits Employment 

Center, will be available to the Department of Labor’s American 

Job Centers. 

Rehabilitation and training for veterans with difficult employment circumstances.—The Committee encourages the VA to expand 

its partnerships with non-profit employment and training organizations with experience in assisting individuals with difficult employment circumstances, such as prior substance abuse or criminal 

records, to find long-term employment. 

Filipino veterans.—The American Recovery and Reinvestment 

Act (P.L. 111–5) established a benefit for Filipino veterans who 

aided American troops in World War II. In the fiscal year 2014 appropriations act, the Committee directed the VA to consider all 

forms of evidence of service and not just those originally considered. The Committee looks forward to VA execution of this directive. 

Change in regional office locations.—The Committee directs the 

Veterans Benefits Administration not to change the location of any 

of its regional offices without reporting to the Committee, at least 

90 days in advance, the cost-benefit analysis of a proposed location 

change and how a location change will benefit veterans and increase operational efficiency. 

Training veteran medics.—According to data from the VA, former 

Armed Forces medics and Navy corpsmen fall within the category 

of highest unemployment rates among military service members. 

Although uniquely trained in the health care field, these veterans 

are often unlicensed health providers with limited ability to secure 

civilian job opportunities without a direct transition to a career as 

a licensed health professional. The Committee encourages the VA 

to establish a pilot program in coordination with HBCU and other 

university health professions schools to channel Armed Forces medics and Navy Corpsmen to physician assistant training using their 

post-9/11 GI bill benefits. This training would facilitate their acquisition of health provider jobs in both the civilian and VA sectors. 

Independent living services.—The Committee supports the budget 

proposal to increase the cap on the number of veterans eligible to 

participate in the Independent Living Program from 2,700 to 3,000. 

The program has been highly successful in providing services to 

maximize independence in daily living for veterans who are too severely disabled to pursue employment. It allows eligible veterans to 

live independently and participate in family and community life. 

Disaster training.—The Committee notes that many returning 

veterans have skills and training that make them ideal for employment in a post-disaster environment. The Committee suggests that 

the VA consider directing these veterans to training that would 

qualify them for work in the wake of a natural disaster or terrorist 

attack and help place them in state and local agencies and non-governmental organizations that perform disaster relief work. 

Burial benefits.—The Committee is concerned about the potentially adverse impact of regulatory changes made in P.L. 111–275, 

which increased certain burial and funeral benefits for veterans 


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from $300 to $700. The Committee requests a report on the 

progress in implementing the new benefit standard; how the VA 

Maintenance Centers (MC) work to accurately inform the applicants about the benefits for which they are eligible before they 

apply; how the MC certifies that benefits and compensation due are 

processed and distributed accurately in the first attempt; and what 

efforts are being taken to ensure that the initial responses and 

Congressional requests are reviewed and processed in a timely and 

fair manner. This report should be submitted to the Committee no 

later than 90 days after the enactment of this Act. 

INFORMATION TECHNOLOGY SYSTEMS

(INCLUDING TRANSFER OF FUNDS)

Fiscal year 2014 enacted level ........................................................... $3,703,344,000 

Fiscal year 2015 budget request ....................................................... 3,903,344,000 

Committee recommendation in the bill ............................................ 3,870,552,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 167,208,000 

Fiscal year 2015 budget request ................................................ (32,792,000) 

The Information Technology Systems account supports information technology (IT) services such as systems development and performance, operations and maintenance, information protection, and 

customer support. The program permits the effective and efficient 

delivery of veterans’ healthcare services and benefits programs. 

Within the account total, the Committee allocates in bill language $1,039,000,000 for pay and associated costs, which is the 

same as the budget request; $2,283,217,000 for operations and 

maintenance, which is $50,000,000 below the request but 

$101,564,000 above fiscal year 2014; and $548,335,000 for development, modernization, and enhancement, which is $17,208,000 

above the request. The bill makes available $31,170,000 of pay and 

associated costs and $160,000,000 of operations and maintenance 

funds until September 30, 2016. All development, modernization, 

and enhancement funds are available until September 30, 2016. 

In the current stringent budget environment, the Committee 

places the highest funding priority on information technology development projects, including the three described below, and directs 

the VA to apply the $50,000,000 reduction to the discretionary 

sustainment category of IT projects, which was increased by 

$157,776,000 in the budget request. The bill provides: the budget request of $137,000,000 for the Veterans Benefits Management System (VBMS), the paperless claims 

processing system; the budget request of $99,614,000 for the Veterans Relationship Management (VRM) system which will create 

multiple communication channels for veterans; and $343,614,000 

for the electronic health record, which is $17,208,000 above the 

budget request, restoring funding for the record to the fiscal year 

2014 level. Within the electronic health record funding, 

$269,406,000 is provided for VistA Evolution, the modernization of 

the VA electronic health record, and $74,208,000 is provided for 

electronic health record interoperability and Virtual Lifetime Electronic Record (VLER) health. An administrative provision limits 

the funding for the electronic health record provided by the Veterans Health Administration to $123,074,000—$8,371,000 from the 


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Medical Services account and $114,703,000 from the Medical Support and Compliance account. 

The Committee continues to feel it is critical to closely track VA’s 

development of its electronic health record. In the aftermath of the 

DOD and VA decision not to pursue a single integrated health 

record, it becomes doubly important to ensure that the two health 

records are designed in a way that permits interoperability between the two—that computable data from one record can be 

viewed and used by clinicians with a different electronic record system. In the fiscal year 2014 bill, Congress included language requiring the VA to provide information on the cost, timeline, performance benchmarks, and interoperability capacity of the VistA 

Evolution system before release of 75 percent of the funding provided. The Committee believes it remains important to track the 

implementation of the system as described in the documents VA 

provided to fulfill the 2014 bill language directive. Accordingly, the 

Committee includes fiscal year 2015 bill language limiting expenditure of IT development funds for VistA Evolution to 25 percent of 

funds provided until the Secretary submits to the Committees on 

Appropriations of both Houses of Congress, and such Committees 

approve, a report that describes: (1) the status of VistA Evolution 

project development and any corrective actions taken where the 

plan established in the VistA Evolution program plan (Plan), the 

VistA 4 product roadmap (Roadmap), and VistA Evolution cost estimate, dated March 24, 2014 may have fallen short; (2) any changes 

to the scope of the VistA Evolution program as established in the 

Plan; (3) any refinements to the cost estimate presented in the 

Plan and actual costs incurred; (4) progress in meeting the schedule milestones that have been established in the Plan; (5) program 

performance relative to the performance measures that have been 

identified in the Plan and the Roadmap; (6) plans for testing the 

VistA system and the results of any testing; (7) VistA Evolution 

program risks and issues that have been identified and agency response; (8) the effort to achieve interoperability between the electronic health records of the Department of Defense and the Department of Veterans Affairs, including scope, cost, schedule and performance benchmarks; and (9) progress toward implementing the 

interoperable electronic health record throughout the two Departments’ medical facilities. 

The Committee does not intend to delay the progress of developing the health record, but believes continuing oversight is necessary to ensure that the health record will have the capabilities 

and interoperability promised in the VA documents. 

The Committee was pleased to receive the VistA Evolution Program plan, dated March 24, 2014. It contains important information regarding the development of the VA VistA Evolution electronic record. However, the plan falls short in its description of efforts to achieve interoperability between DOD and VA medical 

records. The Committee directs VA to provide to the Committee by 

July 31, 2014 additional detail about the interoperability plan: (1) 

explanation of the definition of interoperability used by DOD and 

VA, including a description of the scope of planned interoperability; 

(2) what systems will be used to achieve interoperability; (3) the estimated total cost of reaching interoperability between the two sysVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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tems; and (4) the timeline for achieving interoperability, with identified performance benchmarks. 

The Committee continues to include bill language prohibiting obligation or expenditure of funds for information technology systems 

development, modernization and enhancement until the VA submits to the Committees a certification of the amounts. In addition, 

the Committee continues bill language permitting the transfer of 

funding among the three subaccounts upon approval of the Committees. The bill contains language which allows for the reprogramming of funds among development, modernization and enhancement projects upon prior notification to, and approval by, the Committees. The bill continues to include language indicating that 

funds for development, modernization and enhancement are available only for the projects and in the amounts specified in the report 

accompanying the bill. 

The chart below reflects the Administration’s budget request for 

development projects and includes the Committee recommendation 

for each. This chart will serve as the Department’s approved list 

of development projects, and all requested changes are subject to 

the reprogramming guidelines as outlined in the accompanying Act. 


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The Committee expects the Office of Information Technology to 

continue to provide an IT expenditure report to the Committees on 

Appropriations on a monthly basis. This report shall include a comparison to the project costs included in the development, modernization, and enhancement project funding chart included in the 

House report, and provide an explanation for any differences in excess of $1,000,000. 

OFFICE OF INSPECTOR GENERAL

Fiscal year 2014 enacted level ........................................................... $121,411,000 

Fiscal year 2015 budget request ....................................................... 121,411,000 

Committee recommendation in the bill ............................................ 121,411,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... – – – 

Fiscal year 2015 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 to prevent and deter recurring and potential fraud, waste, and inefficiencies. 

The bill makes $10,000,000 of this funding available until September 30, 2016. 

The Committee requests a report from the Office of Inspector 

General describing the findings of the report the Office was directed to conduct in the fiscal year 2014 conference report on the 

processes in place for the transmission of service treatment and 

personnel records from DOD to VA. 

CONSTRUCTION, MAJOR PROJECTS

Fiscal year 2014 enacted level ........................................................... $342,130,000 

Fiscal year 2015 budget request ....................................................... 561,800,000 

Committee recommendation in the bill ............................................ 561,800,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 219,670,000 

Fiscal year 2015 budget request ................................................ – – – 

The Construction, Major Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department of Veterans 

Affairs, including planning, architectural and engineering services, 

assessments, and site acquisition where the estimated cost of a 

project is $10,000,000 or more. 

The Committee recommendation makes all but $34,000,000 of 

these funds available for a five-year period rather than until expended, reflecting concern about the lengthy period that VA has 

taken to design and build major construction projects. The Committee hopes that limiting the time period during which these 

funds may be used will motivate the VA to better plan and design 

projects before funding is requested. 

The Committee recommendation provides requested funding to 

continue four major construction projects with seismic deficiency 

and patient safety concerns. The Committee recommendation repeats an administrative provision which requires the Department 


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to notify the Committee of all bid savings on contracts for construction projects that total at least $5,000,000 or 5 percent of the programmed amount of the project and prohibits any changes from the 

original scope of work identified in the justification material submitted with the budget for each project. 

The specific amounts recommended by the Committee are as follows: 

[In thousands of dollars] 

Location Description 2015 request Committee 

recommendation 

Veterans Health Administration (VHA): 

West Los Angeles, CA ..................... Seismic deficiency corrections ................. 35,000 35,000 

Long Beach, CA .............................. Seismic deficiency corrections ................. 101,900 101,900 

Canandaigua, NY ............................ Construction and renovation ................... 122,400 122,400 

San Diego, CA ................................. Seismic deficiency corrections ................. 187,500 187,500 

Advance Planning Fund .................. Various Stations ....................................... 69,000 69,000 

Major Construction Staff ................ Various Stations ....................................... 24,000 24,000 

Claims Analysis .............................. Various Stations ....................................... 2,000 2,000 

Hazardous Waste ............................ Various Stations ....................................... 6,000 6,000 

Total VHA ............................... .................................................................. 547,800 547,800 

National Cemetery Administration (NCA): 

Advance Planning Fund .................. Various Stations ....................................... 2,500 2,500 

NCA Land Acquisition Fund ............ .................................................................. 7,500 7,500 

Total NCA ............................... .................................................................. 10,000 10,000 

Dept Advance Planning Fund .................. .................................................................. 4,000 4,000 

Major Construction total ................. .................................................................. 561,800 561,800 

Facility construction priority-setting.—The Committee is aware 

that the VA undertakes a complex process each year to prioritize 

all the facility projects that are eligible for funding. But the Committee is disturbed that the priorities assigned to particular 

projects have changed from one year to the next without explanation. The Committee requests that the Department prepare each 

year no later than 30 days after the release of the budget request 

a comprehensive report describing the process used to identify that 

year’s project priority listing, any changes in methodology or priority criteria, and the architectural design elements that must be 

in place before a project is considered ready for the priority list. 

In-patient facilities in rural areas.—Recognizing the lack of accessible VA services in some regions of the country, the Committee 

requested in the fiscal year 2013 report that the VA include in the 

VA Strategic Capital Improvement Plan (SCIP) the expansion of 

existing VA health care centers to include inpatient accommodations, urgent care services, and the full range of services required 

by women veterans when the absence of such services locally requires veterans to make round trips of more than five hours to access such services at a VA facility. The Committee instructs the VA 

to report within 180 days of enactment of this act whether any 

health care center facilities currently in the SCIP include inpatient 

accommodations and urgent care. If such facilities are not currently 

included in the SCIP, the report should provide an explanation of 

why this is not VA’s preferred mechanism to address veterans access problems. 

Energy efficient technologies.—As new construction and retrofit 

projects are undertaken at facilities to improve building energy effiVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00052 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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ciency and achieve the objectives prescribed in related statutes, executive orders, and initiatives, the Committee encourages VA to 

utilize new and underutilized, low-cost energy efficient technologies 

that provide the best value to taxpayers through minimal lifecycle 

costs. 

CONSTRUCTION, MINOR PROJECTS

Fiscal year 2014 enacted level ........................................................... $714,870,000 

Fiscal year 2015 budget request ....................................................... 495,200,000 

Committee recommendation in the bill ............................................ 495,200,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (219,670,000) 

Fiscal year 2015 budget request ................................................ – – – 

The Construction, Minor Projects appropriation provides for constructing, altering, extending, and improving any of the facilities 

under the jurisdiction or for the use of the Department, including 

planning, assessment of needs, architectural and engineering services, and site acquisition, where the estimated cost of a project is 

less than $10,000,000. 

As with the Major Construction account, the Committee recommendation makes these funds available for a five-year period 

rather than until expended as requested in the budget, reflecting 

concern about the long period that VA has taken to design and 

build construction projects. 

Errors in leasing.—The Committee has been concerned in the 

past with errors made by VA in the process of establishing leases 

for medical facilities. These errors have caused needless delay in 

projects providing needed facilities in underserved areas. The Committee requests a report within 60 days of enactment of the act describing corrective actions the VA has taken, including training, revoking delegations of authority, and personnel changes, to ensure 

that such mistakes do not occur in the future. 

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

Fiscal year 2014 enacted level ........................................................... $85,000,000 

Fiscal year 2015 budget request ....................................................... 80,000,000 

Committee recommendation in the bill ............................................ 80,000,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (5,000,000) 

Fiscal year 2015 budget request ................................................ – – – 

This appropriation 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 bill makes this funding available until 

expended. 

Future funding needs.—The Committee is aware that more than 

half of the VA long-term care patient workload is now being met 

by State veterans homes. In light of the projected increase in elderly veterans in future years, VA may determine that additional 

State veterans homes need to be built. However, given the ongoing 

budget deficits being experienced by some State governments, the 

Committee is concerned that some States may be unable to contribute the required 35 percent of total construction costs needed 

to obtain Federal matching funds. Accordingly, the Committee reVerDate Mar 15 2010 22:22 Apr 03, 2014 Jkt 087075 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\A075.XXX A075

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quests a report no later than 60 days after the enactment of this 

act describing possible alternative financing mechanisms to ensure 

that a sufficient number of State veterans homes are available to 

meet the needs of future patients. 

GRANTS FOR CONSTRUCTION OF VETERANS CEMETERIES

Fiscal year 2014 enacted level ........................................................... $46,000,000 

Fiscal year 2015 budget request ....................................................... 45,000,000 

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

Comparison with: 

Fiscal year 2014 enacted level ................................................... (1,000,000) 

Fiscal year 2015 budget request ................................................ – – – 

This program provides grants to assist States and tribal governments with the establishment, expansion, and improvement of veterans cemeteries which are operated and permanently maintained 

by the States and tribal governments. Grants under this program 

fund up to 100 percent of construction costs and the initial equipment expenses when the cemetery is established. The States and 

tribal governments 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 bill makes this funding available until expended. 

ADMINISTRATIVE PROVISIONS

The bill includes 33 administrative provisions, 31 of which were 

included in the fiscal year 2014 bill and two of which are new. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 201 allowing for the transfer of funds 

among three mandatory appropriations. The Administration proposal to modify this provision is not adopted. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 202 allowing the Department to transfer 

funding among the three medical appropriations accounts in fiscal 

year 2015. The Administration proposal to modify this provision is 

not adopted. 

The bill includes section 203 allowing for salaries and expenses 

funds to be used for hire of passenger vehicles, lease of facilities 

or land, and purchase of uniforms. 

The bill includes section 204 providing that only funding in the 

‘‘Construction, Major Projects’’ and ‘‘Construction, Minor Projects’’ 

accounts can be used for the purchase of any site for any new hospital or home or to construct any new hospital or home. 

The bill includes section 205 requiring 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. 

The bill includes section 206 allowing for the use of funds appropriated in fiscal year 2015 for ‘‘Compensation and Pensions’’, ‘‘Readjustment Benefits’’, and ‘‘Veterans Insurance and Indemnities’’ 

for payment of accrued obligations recorded in the last quarter of 

fiscal year 2014. 


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The bill includes section 207 allowing for the use of fiscal year 

2015 funds to pay prior year obligations resulting from implementation of sections 3328(a), 3334, and 3712(a) of title 31, United 

States Code. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 208 allowing the Department to use surplus earnings from the national service life insurance, U.S. Government life insurance, and veterans special life insurance program to 

administer these programs. 

The bill includes section 209 allowing the Department to obligate 

enhanced-use lease proceeds for administrative expenses that were 

incurred in a prior fiscal year during the year funds are received. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 210 limiting 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. 

The bill includes section 211 prohibiting the Secretary from approving new leases of real property with estimated annual rental 

cost of more than $1,000,000 unless the Committees on Appropriations of both Houses of Congress approve a report on such lease 

within 30 days of receipt. The Administration proposal to modify 

this provision is not adopted. 

The bill includes section 212 requiring the Department to collect 

current and accurate third-party reimbursement information for 

the purposes of third-party insurance collections. If persons receiving care or medical services do not disclose this information, the 

Department is allowed to bill them reasonable charges for services 

provided. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 213 allowing the Department to use enhanced-use lease funds for construction and alteration of medical 

facilities. 

The bill includes section 214 allowing the Department to use the 

‘‘Medical Services’’ appropriation for expenses related to the broader mission of medical care to veterans. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 215 allowing the Department to transfer 

Medical Care Collections to the ‘‘Medical Services’’ appropriation to 

be used for veterans medical care and makes those funds available 

until expended. 

The bill includes section 216 allowing veterans who reside in 

Alaska to obtain medical services from medical facilities supported 

by the Indian Health Service or tribal organizations, and provides 

for reimbursement for those services from the Department of Veterans Affairs. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 217 allowing the Department to transfer 

the proceeds received from the transfer of real property deposited 


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into the Department of Veterans Affairs Capital Asset Fund to the 

major and minor construction appropriations accounts and makes 

those funds available until expended. 

The bill includes section 218 providing that no funds may be 

used to prohibit Directors of the Veterans Integrated Service Networks from conducting outreach or marketing programs. The Administration proposed to delete this provision. 

The bill includes section 219 requiring the Secretary to submit 

quarterly reports to the Committees on Appropriations of both 

Houses of Congress on the financial status of the Veterans Health 

Administration. The Administration proposed to delete this provision. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 220 requiring the Department to notify 

and receive approval from the Committees on Appropriations of 

any proposed transfer of funding to or from the ‘‘Information Technology Systems’’ account. The Administration proposal to modify 

this provision is not adopted. 

The bill includes section 221 limiting the amount of funding 

made available under the ‘‘Medical Facilities’’ account for non-recurring maintenance that may be obligated during the last two 

months of the fiscal year. The Administration proposal to delete 

this provision is not adopted. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 222 permitting the transfer of 

$252,366,000 appropriated for medical accounts, minor construction, and information technology systems to the Joint Department 

of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund for the operation of facilities designated as combined Federal medical facilities. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 223 permitting the transfer of funds deposited in the Medical Care Collections Fund to the Joint Medical 

Facility Demonstration Fund for facilities designated as combined 

Federal medical facilities. 

(INCLUDING TRANSFER OF FUNDS)

The bill includes section 224 directing that a minimum of 

$15,000,000 shall be transferred from the three medical care appropriations to the Department of Defense/Department of Veterans Affairs Health Care Sharing Incentive Fund, to be available until expended. 

The bill includes section 225 rescinding and reappropriating 

$1,400,000,000 from the Medical Services, $100,000,000 from Medical Support and Compliance, and $250,000,000 from Medical Facilities accounts. 

The bill includes section 226 requiring the Secretary to notify the 

Committees on Appropriations of both Houses of Congress of all bid 

savings in Major Construction projects that total at least 

$5,000,000, or five percent of the programmed amount, whichever 

is less. Such notification must occur within 14 days of a contract. 


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The Secretary is required to notify the Committees 14 days prior 

to the obligation of such bid savings and shall describe the anticipated use of such savings. The budget request proposed to delete 

this provision. 

The bill includes section 227 prohibiting the original scope of 

work for a Major Construction project from being increased above 

the scope specified for that project in the original justification data 

provided to the Congress as part of the request for appropriations. 

The budget request proposed to delete this provision. 

The bill includes section 228 requiring the Secretary of Veterans 

Affairs to provide on a quarterly basis to the Committees on Appropriations of both Houses of Congress notification of any single national outreach and awareness marketing campaign in which obligations exceed $2,000,000. The budget request proposed to delete 

this provision. 

The bill includes section 229 requiring the Department to submit 

a reprogramming request if it wishes to change fiscal year 2015 

spending on Medical Services initiatives identified in the budget 

justification by more than $25,000,000. The budget request proposed to delete this provision. 

The bill includes section 230 identifying the maximum funding 

that may be obligated for Veterans Health Administration VistA 

Evolution and electronic health record interoperability activities. 

The budget request proposed to delete this provision. 

The bill includes section 231 requiring advance written notification to the Committees on Appropriations of both Houses of Congress 15 days prior to organizational changes which result in the 

transfer of 25 or more full-time equivalent staff from one organizational unit to another. The budget request proposed to delete this 

provision. 

The bill includes section 232 prohibiting funds made available by 

this Act from being used to award a contract to any contractor 

whose past performance record indicates that its performance during the construction of a VA facility resulted in a completion date 

more than 24 months later than the original agreed-upon completion date. 

The bill includes section 233 rescinding $38,000,000 of unobligated balances available from prior year discretionary appropriations, with the Secretary given authority to allocate this rescission 

among accounts. 

The bill does not include a provision requested in the budget limiting contracting out of functions performed by more than ten employees without a fair competition process. This limitation is unnecessary because it has already been enacted into law. 


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TITLE III 

RELATED AGENCIES 

AMERICAN BATTLE MONUMENTS COMMISSION

SALARIES AND EXPENSES

Fiscal year 2014 enacted level ........................................................... $63,200,000 

Fiscal year 2015 budget request ....................................................... 70,100,000 

Committee recommendation in the bill ............................................ 75,000,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... 11,800,000 

Fiscal year 2015 budget request ................................................ 4,900,000 

The American Battle Monuments Commission is responsible for 

the administration, operation and maintenance of cemetery and 

war memorials to commemorate the achievements and sacrifices of 

the American Armed Forces where they have served since April 6, 

1917. In performing these functions, the Commission maintains 24 

permanent American military cemetery memorials and 25 monuments, memorials, and markers. 

The Committee includes additional funds to support the interpretive program and nonrecurring maintenance needs. Language is included allowing up to $7,500 to be used for official reception and 

representation expenses. 

FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

Fiscal year 2014 enacted level ........................................................... $14,100,000 

Fiscal year 2015 budget request est. ................................................ 1,900,000 

Committee recommendation in the bill est. ..................................... 1,900,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (12,200,000) 

Fiscal year 2015 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 because of fluctuations in currency exchange rates of foreign countries occurring after 

a budget request for the Commission is submitted to Congress. The 

account may not be used for any other purpose. 

The Committee recommendation includes bill language as proposed which makes ‘‘such sums as may be necessary’’ available to 

the Commission to cover unanticipated foreign currency fluctuations, currently estimated at $1,900,000. The Committee notes that 

the budget proposal adjusts the Commission’s rate for euro transactions so that charges to the foreign currency account comply with 

recommendations made by the Government Accountability Office. 

Therefore, a portion of the funds previously included within the 

Foreign Currency Fluctuation Account are now proposed and provided within the Salaries and Expenses account. 


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UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

SALARIES AND EXPENSES

Fiscal year 2014 enacted level ........................................................... $35,408,000 

Fiscal year 2015 budget request ....................................................... 31,386,000 

Committee recommendation in the bill ............................................ 31,386,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (4,022,000) 

Fiscal year 2015 budget request ................................................ – – – 

The Veterans’ Judicial Review Act established the U.S. Court of 

Appeals for Veterans Claims. The Court reviews appeals from 

claimants seeking review of a benefit denial. The Court has the authority to overturn findings of fact, regulations, and interpretations 

of law. 

The Committee understands that the decrease proposed in the 

budget request is because funding obligations imposed by Beer, 

supra and the unfunded liability in the Retirement Fund have been 

resolved. The Committee notes, however, that the Court has historically experienced an increase in appeals a year after the Board 

of Veterans’ Appeals (BVA) has an increase in claims. The Committee directs the Court to monitor BVA’s claims workload and ensure that future Court budget requests include a future caseload 

plan and anticipate any increase in workload in order to avoid a 

backlog. 

DEPARTMENT OF DEFENSE—CIVIL CEMETERIAL EXPENSES, ARMY

SALARIES AND EXPENSES

Fiscal year 2014 enacted level ........................................................... $65,800,000 

Fiscal year 2015 budget request ....................................................... 45,800,000 

Committee recommendation in the bill ............................................ 61,881,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (3,919,000) 

Fiscal year 2015 budget request ................................................ 16,081,000 

The Secretary of the Army is responsible for the administration, 

operation and maintenance of Arlington National Cemetery (ANC) 

and the Soldiers’ and Airmen’s Home National Cemetery. In addition to its principal function as a national cemetery, ANC is the 

site of approximately 3,000 non-funeral ceremonies each year and 

has approximately 4,000,000 visitors annually. 

The Committee is frustrated to receive a budget proposal that 

has again included funding for Arlington National Cemetery within 

the Operation and Maintenance, Army account. This practice undermines federal budgeting principles requiring expenditures to be 

charged against the same account each year, once an account has 

been identified for such purpose. The Committee rejects this proposal and instead provides all funds within the Cemeterial Expenses, Army account. The Committee directs that future budget 

requests will include all funding proposed for Arlington National 

Cemetery within the Cemeterial Expenses, Army account. 

Cemetery capacity.—The Committee supports the efforts of the 

ANC Advisory Commission to identify solutions for when ANC inevitably reaches capacity. Accurately identifying the burial needs of 

our service members, veterans, and their families from all 50 states 

is critical to ensuring that the future plans for ANC meet those 

needs. The Committee recommends the ANC Advisory Commission 


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establish metrics to determine whether the Department of the 

Army should establish a new national cemetery of the same stature 

as ANC. The Committee requests the ANC Advisory Committee to 

develop those metrics in consultation with the Committee. 

ARMED FORCES RETIREMENT HOME

TRUST FUND

OPERATION AND MAINTENANCE

Fiscal year 2014 enacted level ........................................................... $66,800,000 

Fiscal year 2015 budget request ....................................................... 62,400,000 

Committee recommendation in the bill ............................................ 62,400,000 

Comparison with: 

Fiscal year 2014 enacted level ................................................... (4,400,000) 

Fiscal year 2015 budget request ................................................ – – – 

The Armed Forces Retirement Home (AFRH) consists of two retirement communities, one in Washington, D.C. and the other in 

Gulfport, Mississippi. The Washington, D.C. facility was established in 1851 as a soldiers’ home for elderly and disabled veterans. 

The original home for Navy officers, sailors, and Marines was established in Philadelphia, Pennsylvania in 1811, and was relocated 

to Gulfport, Mississippi almost a century and a half later. 

CAPITAL PROGRAM

Fiscal year 2014 enacted level ........................................................... $1,000,000 

Fiscal year 2015 budget request ....................................................... 1,000,000 

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

Comparison with: 

Fiscal year 2014 enacted level ................................................... – – – 

Fiscal year 2015 budget request ................................................ – – – 

The Committee recommendation provides authority to expend 

$1,000,000 from the Armed Forces Retirement Home Trust Fund 

for construction and renovations. 

ADMINISTRATIVE PROVISION

The bill includes 1 provision that was in effect in fiscal year 

2014. The administrative provision included in the bill is as follows: 

The bill includes section 301 permitting Arlington National Cemetery to provide funds to Arlington County to relocate a water 

main. 

TITLE IV 

GENERAL PROVISIONS 

The bill includes 15 provisions that are effective in fiscal year 

2014 and the new provisions as follows: 

The bill includes section 401 prohibiting the obligation of funds 

beyond the current fiscal year unless expressly so provided. 

The bill includes section 402 prohibiting the use of funds for programs, projects or activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, 

or unfunded mandates. 

The bill includes section 403 prohibiting the use of funds to support or defeat legislation pending before Congress. 


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The bill includes section 404 encouraging all departments and 

agencies funded in this Act to expand the use of ‘‘E-Commerce’’ 

technologies and procedures. 

The bill includes section 405 specifying the Congressional committees that are to receive all reports and notifications. 

The bill includes section 406 prohibiting the transfer of funds to 

any instrumentality of the United States Government without authority from an appropriations Act. 

The bill includes section 407 prohibiting any funds in this Act to 

be used for a project or program named for an individual serving 

as a Member, Delegate, or Resident Commissioner of the United 

States House of Representatives. 

The bill includes section 408 requiring all reports submitted to 

the Congress to be posted on official websites of the submitting 

agency. 

The bill includes section 409 prohibiting the use of funds to establish or maintain a computer network unless such network 

blocks the viewing, downloading, and exchanging of pornography, 

except for law enforcement investigation, prosecution or adjudication activities. 

The bill includes section 410 prohibiting the use of funds for payment of first-class travel by an employee of the executive branch. 

The bill includes section 411 prohibiting the use of funds in this 

Act for the renovation, expansion, or construction of any facility in 

the continental United States for the purpose of housing any individual who has been detained at the United States Naval Station, 

Guantanamo Bay, Cuba. 

The bill includes section 412 prohibiting the use of funds in this 

Act for any contract where the contractor has not complied with EVerify requirements. 

The bill includes section 413 limiting the use of funds to enter 

into a contract, memorandum of understanding, or cooperative 

agreement with, make a grant to, or provide a loan or loan guarantee to, corporations convicted of a felony criminal violation of 

Federal law within the preceding 24 months. The Department shall 

provide an annual report to the Committee, due within 30 days of 

the end of each fiscal year, detailing its implementation of this provision, including a list of affected corporations and a justification 

for any cases in which the Department has determined that the 

limitation should not apply. 

The bill includes section 414 limiting the use of funds to enter 

into a contract, memorandum of understanding, or cooperative 

agreement with, make a grant to, or provide a loan or loan guarantee to, corporations with certain unpaid Federal tax liabilities. 

The Department shall provide an annual report to the Committee, 

due within 30 days of the end of each fiscal year, detailing its implementation of this provision, including a list of affected corporations and a justification for any cases in which the Department has 

determined that the limitation should not apply. 

The bill includes section 415 prohibiting the use of funds in this 

Act by the Department of Defense or the Department of Veterans 

Affairs for the purchase or lease of a new vehicle except in accordance with Presidential Memorandum—Federal Fleet Performance, 

dated May 24, 2011. 


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The bill includes new section 416 establishing a ‘‘Spending Reduction Account’’ in the bill. 

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

The following items are included in accordance with various requirements of the Rules of the House of Representatives. 

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. 

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following table lists the rescissions in the 

accompanying bill: 

DEPARTMENT/ACTIVITY

AMOUNTS RECOMMENDED FOR RESCISSION

Department of Defense, Military Construction, Army (Sec. 129) ... $79,577,000 

42 USC 3374 (Sec. 131) ...................................................................... 100,000,000 

NATO Security Investment Program (Sec. 130) .............................. 25,000,000 

Department of Veterans Affairs, Medical Services* ........................ 1,400,000,000 

Department of Veterans Affairs, Medical Support and Compliance* ................................................................................................. 100,000,000 

Department of Veterans Affairs, Medical Facilities* ....................... 250,000,000 

Department of Veterans Affairs, Prior Year Unobligated Balances 38,000,000 

* Reappropriated in the bill 

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House 

of Representatives, the following statements are submitted describing the transfer of funds provided in the accompanying bill. 

Language is included to allow for the transfer of funds from 

Family Housing, Construction accounts to the Department of Defense Family Housing Improvement Fund and funds from Military 

Construction accounts to the Department of Defense Military Unaccompanied Housing Improvement Fund. 

Language is included to provide transfer authority from the 

BRAC account to the Homeowners Assistance Program. 

Language is included to allow the transfer of expired funds to the 

‘‘Foreign Currency Fluctuations, Construction, Defense’’ account. 

Language is included to transfer not to exceed $15,430,000 from 

Compensation and Pensions to General Operating Expenses, Veterans Benefits Administration and Information Technology Systems. 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 transferring funds to the medical care collections 


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fund to augment funding of medical facilities for nursing home care 

provided to pensioners. 

Language is included to permit the transfer of funds from General Administration to General Operating Expenses, Veterans Benefits Administration. 

Language is included to permit the transfer of funds between Information Technology Systems development projects and among the 

three sub-accounts identified in bill language subject to the approval of the Committee. 

Language is included to provide authority for the Department of 

Veterans Affairs for any funds appropriated in 2015 for Compensation and Pensions, Readjustment Benefits, and Veterans Insurance 

and Indemnities to be transferred among those three accounts. 

Language is included to transfer funds among the Medical Services, Medical Support and Compliance, and Medical Facilities accounts. 

Language is included to permit the funds from three life insurance funds to be transferred to General Operating Expenses, Veterans Benefits Administration and Information Technology Systems for the costs of administering such programs. Language is included to permit up to $46,304,000 to be transferred to General Administration and Information Technology Systems from any funds appropriated in fiscal year 2015 to reimburse 

the Office of Resolution Management and the Office of Employment 

Discrimination Complaint Adjudication for services provided. 

Language is included to transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects 

and Construction, Minor Projects accounts. 

Language is included to transfer funds from the Medical Care 

Collections Fund to the Medical Services account. 

Language is included to allow the transfer of funds from the Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts. 

Language is included to allow the transfer of funds from various 

accounts to the Information Technology Systems account subject to 

approval by the Committee. 

Language is included to allow the transfer of funds provided for 

the Department of Veterans Affairs to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included permitting funds deposited to the Medical 

Care Collections Fund for health care provided at a combined Federal medical facility to be transferred to the Joint Department of 

Defense-Department of Veterans Affairs Medical Facility Demonstration Fund. 

Language is included under the Department of Veterans Affairs 

that would transfer no less than $15,000,000 for the DOD/VA 

Health Care Sharing Incentive Fund as authorized by section 

8111(d) of title 38, United States Code. 

DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED

SPENDING ITEMS

Neither the bill nor the report contains any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9 of rule XXI. 


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CHANGES IN APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of the 

House of Representatives, the following statements are submitted 

describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law. 

Language is included in various parts of the bill to continue ongoing activities that require annual authorization or additional legislation, which to date have not been enacted. 

Language is included in various parts of the bill to place limitations on the use of funds in the bill or change existing limitations 

and which might, under some circumstances, be construed as 

changing the application of existing law. 

Language is included in various parts of the bill to allow the Secretary of Defense to exceed certain limitations upon notification to 

the Committee. 

Language is included in various parts of the bill to allow funding 

to be used for official reception and representation expenses. 

Language is included in various parts of the bill to enable 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 to permit the 

transfer of funds to other accounts. 

Language is included under Title I to prohibit payments for costplus-a-fixed-fee contracts under certain circumstances. 

Language is included in various parts of the bill to allow funds 

to be used for the hire of passenger motor vehicles. 

Language is included under Title I to allow advances to the Federal Highway Administration, Department of Transportation under 

certain circumstances. 

Language is included under Title I to prohibit the use of funds 

to begin construction of new bases without specific appropriations. 

Language is included under Title I to prohibit the use of funds 

for purchase of land or land easements under certain circumstances. 

Language is included under Title I to prohibit the use of funds 

for land acquisition, site preparation, and utility installation for 

family housing unless funds have been made available in annual 

appropriations Acts. 

Language is included under Title I to prohibit the use of minor 

construction funds to transfer an activity between installations 

without prior notification. 

Language is included under Title I to prohibit the use of 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 to prohibit the use of funds 

to pay real property taxes in any foreign nation. 

Language is included under Title I to prohibit the use of funds 

to initiate a new installation overseas without prior notification. 

Language is included under Title I to limit the use of funds for 

architect and engineer contracts under certain circumstances. 


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Language is included under Title I to limit the use of funds for 

awarding contracts to foreign contractors under certain circumstances. 

Language is included under Title I to require 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 to allow prior year construction funding to be available for currently authorized projects. 

Language is included under Title I to allow payment for the cost 

associated with supervision, inspection, overhead, engineering and 

design on family housing or military construction projects that are 

being completed with expired or lapsed funds. 

Language is included under Title I to allow funds to be expended 

on military construction projects for four fiscal years after enactment under certain circumstances. 

Language is included under Title I to allow for the transfer of 

BRAC proceeds to the BRAC account. 

Language is included under Title I to allow construction funds to 

be transferred to Housing Improvement Funds. 

Language is included under Title I to allow for the transfer of 

BRAC funds to the Homeowners Assistance Program. 

Language is included under Title I to limit funds for the operation and maintenance of family housing to those provided in this 

appropriation and to limit amounts expended on repairs of general 

and flag officer quarters under certain circumstances. 

Language is included under Title I to allow funds in the Ford Island Improvement Account to be available until expended for certain purposes. 

Language is included under Title I to allow for the transfer of expired funding to the Foreign Currency Fluctuation Account under 

certain circumstances. 

Language is included under Title I limiting movement of an 

Army unit with a testing mission. 

Language is included under Title I that rescinds funds from prior 

year appropriations Acts. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs establish a priority for treatment of veterans 

who are service-connected disabled, lower income, or have special 

needs. 

Language is included under Title II to require that the Secretary 

of Veterans Affairs give priority funding of basic medical benefits 

to priority groups 1 through 6. 

Language is included under Title II to allow the Secretary of Veterans Affairs to dispense prescription drugs from VHA facilities to 

enrolled veterans with privately written prescriptions. 

Language is included under Title II providing for the reimbursement to the Department of Defense for the costs of overseas employee mail. 

Language is included under Title II to require approval of a 

transfer between development, modernization, and enhancement 

projects in the Information Technology Systems account. 

Language is included under Title II establishing time limitations 

and reporting requirements concerning the obligation of Major Construction funds, limiting the use of funds, and allowing the use of 

funds for program costs. 


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Language is included under Title II to allow Minor Construction 

funds to be used to repair non-medical facilities damaged by natural disaster or catastrophe. 

Language is included under Title II permitting transfers between 

mandatory and discretionary accounts, limiting and providing for 

the use of certain funds, funding administrative expenses associated with life insurance programs from excess program revenues, 

allowing reimbursement from enhanced-use leases and for certain 

services, requiring notification of new lease agreements, requiring 

disclosure of insurance and income information, allowing a recovery 

audit collection program, allowing veterans in the State of Alaska 

to use Indian Health Service facilities under certain conditions, allowing medical services funds for recreational and funeral expenses, limiting the obligation of non-recurring maintenance funds 

during the last two months of the fiscal year, and requiring approval of a reprogramming prior to any major reallocation of medical services initiatives funding. 

Language is included under the Court of Appeals for Veterans 

Claims, Salaries and Expenses, to permit the use of funds for a pro 

bono program. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, to permit the use of funds for parking maintenance 

and repairs. 

Language is included under Cemeterial Expenses, Army, Salaries 

and Expenses, to permit the use of funds to relocate a water main. 

Language is included under Title IV to limit the use of funds for 

Federal entities when they are not in compliance with Federal law 

relating to risk assessment, the protection of private property 

rights, or unfunded mandates. 

Language is included under Title IV to limit the use of funds for 

publicity or propaganda designed to support or defeat legislation 

pending before Congress. 

Language is included under Title IV to prohibit the use of funds 

for a project or program named for a serving Member of the United 

States Congress. 

Language is included under Title IV prohibiting funds from being 

used to maintain or establish a computer network unless such network blocks the viewing, downloading, and exchanging of pornography. 

Language is included under Title IV prohibiting funds from being 

used to pay for first class travel in violation of federal regulations. 

Language is included under Title IV prohibiting funds from being 

used to execute a contract for goods or services where a contractor 

has not complied with Executive Order 12989. 

Language is included under Title IV prohibiting funds from being 

provided to any corporation that was convicted of a felony criminal 

violation. 

Language is included under Title IV prohibiting funds from being 

provided to a corporation with an unpaid Federal tax liability. 

Language is included under Title IV prohibiting funds from being 

used by the Department of Defense or the Department of Veterans 

Affairs for the purchase or lease of a new vehicle except in accordance with Presidential Memorandum—Federal Fleet Performance, 

dated May 24, 2011. 


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APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of the 

House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law for 

the period concerned: 


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PROGRAM DUPLICATION

No provision of this bill establishes or reauthorizes a program of 

the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DIRECTED RULE MAKING

The bill does not direct any rule making. 

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House 

of Representatives, the results of each roll call 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: 

COMPLIANCE WITH RULE XIII, CL. 3(e) (RAMSEYER RULE) 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, the Committee notes that the accompanying bill does not propose to repeal or amend a statute or part 

thereof. 

COMPARISON WITH THE BUDGET RESOLUTION

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House 

of Representatives and section 308(a)(1)(A) of the Congressional 

Budget Act of 1974, the following table compares the levels of new 

budget authority provided in the bill with the appropriate allocation under section 302(b) of the Budget Act. 

FIVE-YEAR PROJECTION OF OUTLAYS

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House 

of Representatives and section 308(a)(1)(B) of the Congressional 

Budget Act of 1974, the following table contains five-year projections prepared by the Congressional Budget Office of outlays associated with the budget authority provided in the accompanying bill: 

Millions 

Budget Authority ................................................................................... $ 

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House 

of Representatives and section 308(a)(1)(C) of the Congressional 

Budget Act of 1974, the amount of financial assistance to State and 

local governments is as follows: 

Millions 

Budget Authority ................................................................................... $ 

Fiscal Year 2015 outlays resulting therefrom .....................................

STATE LIST

The following is a complete listing, by title, State and country, 

of the Committee’s recommendations for military construction and 

family housing projects: 


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MINORITY VIEWS


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