II 
Calendar No. 267
108TH CONGRESS 
1ST SESSION H. R. 2861
IN THE SENATE OF THE UNITED STATES 
JULY 28 (legislative day, JULY 21), 2003
Received 
AUGUST 1 (legislative day, JULY 21), 2003
Read the first time 
SEPTEMBER 2, 2003
Read the second time and placed on the calendar 
AN ACT 
Making appropriations for the Departments of Veterans Af-
fairs and Housing and Urban Development, and for sun-
dry independent agencies, boards, commissions, corpora-
tions, and offices for the fiscal year ending September 
30, 2004, and for other purposes.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
That the following sums are appropriated, out of any 
money in the Treasury not otherwise appropriated, for the 
Departments of Veterans Affairs and Housing and Urban 
Development, and for sundry independent agencies, 
boards, commissions, corporations, and offices for the fis-
cal year ending September 30, 2004, and for other pur-
poses, namely: 
TITLE I—DEPARTMENT OF VETERANS AFFAIRS 
VETERANS BENEFITS ADMINISTRATION 
COMPENSATION, PENSION AND BURIAL BENEFITS 
(INCLUDING TRANSFER OF FUNDS) 
For the payment of compensation benefits to or on 
behalf of veterans and a pilot program for disability ex-
aminations as authorized by law (38 U.S.C. 107, chapters 
11, 13, 18, 51, 53, 55, and 61); pension benefits to or 
on behalf of veterans as authorized by law (38 U.S.C. 
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur-
ial benefits, emergency and other officers’ retirement pay, 
adjusted-service credits and certificates, payment of pre-
miums due on commercial life insurance policies guaran-
teed under the provisions of article IV of the Soldiers’ and 
Sailors’ Civil Relief Act of 1940 (50 U.S.C. App. 540 et 
seq.) and for other benefits as authorized by law (38 
U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53,
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55, and 61; 50 U.S.C. App. 540–548; 43 Stat. 122, 123; 
45 Stat. 735; 76 Stat. 1198), $29,845,127,000, to remain 
available until expended: Provided, That not to exceed 
$17,617,000 of the amount appropriated under this head-
ing shall be reimbursed to ‘‘General operating expenses’’ 
and ‘‘Medical services for priority 1–6 veterans’’ for nec-
essary expenses in implementing those provisions author-
ized in the Omnibus Budget Reconciliation Act of 1990, 
and in the Veterans’ Benefits Act of 1992 (38 U.S.C. 
chapters 51, 53, and 55), the funding source for which 
is specifically provided as the ‘‘Compensation, pension and 
burial benefits’’ appropriation: Provided further, That such 
sums as may be earned on an actual qualifying patient 
basis, shall be reimbursed to ‘‘Medical facilities revolving 
fund’’ to augment the funding of individual medical facili-
ties for nursing home care provided to pensioners as au-
thorized. 
READJUSTMENT BENEFITS 
For the payment of readjustment and rehabilitation 
benefits to or on behalf of veterans as authorized by law 
(38 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 
55, and 61), $2,529,734,000, to remain available until ex-
pended: Provided, That expenses for rehabilitation pro-
gram services and assistance which the Secretary is au-
thorized to provide under section 3104(a) of title 38, 
United States Code, other than under subsection (a)(1),
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(2), (5), and (11) of that section, shall be charged to this 
account. 
VETERANS INSURANCE AND INDEMNITIES 
For military and naval insurance, national service life 
insurance, servicemen’s indemnities, service-disabled vet-
erans insurance, and veterans mortgage life insurance as 
authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72 
Stat. 487, $29,017,000, to remain available until ex-
pended.
VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM 
ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct and guaranteed loans, such 
sums as may be necessary to carry out the program, as 
authorized by 38 U.S.C. chapter 37, subchapters I–III, 
as amended: Provided, That such costs, including the cost 
of modifying such loans, shall be as defined in section 502 
of the Congressional Budget Act of 1974, as amended: 
Provided further, That during fiscal year 2004, within the 
resources available, not to exceed $300,000 in gross obli-
gations for direct loans are authorized for specially adapt-
ed housing loans, 38 U.S.C. 3711(i). 
In addition, for administrative expenses to carry out 
the direct and guaranteed loan programs, $154,850,000, 
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
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EDUCATION LOAN FUND PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $1,000, as authorized 
by 38 U.S.C. 3698, as amended: Provided, That such 
costs, including the cost of modifying such loans, shall be 
as defined in section 502 of the Congressional Budget Act 
of 1974, as amended: Provided further, That these funds 
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $3,400. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $70,000, which may 
be transferred to and merged with the appropriation for 
‘‘General operating expenses’’. 
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $52,000, as authorized 
by 38 U.S.C. chapter 31, as amended: Provided, That such 
costs, including the cost of modifying such loans, shall be 
as defined in section 502 of the Congressional Budget Act 
of 1974, as amended: Provided further, That funds made 
available under this heading are available to subsidize 
gross obligations for the principal amount of direct loans 
not to exceed $3,938,000. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $300,000, which may
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be transferred to and merged with the appropriation for 
‘‘General operating expenses’’. 
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM 
ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For administrative expenses to carry out the direct 
loan program authorized by 38 U.S.C. chapter 37, sub-
chapter V, as amended, $571,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General 
operating expenses’’: Provided, That no new loans in ex-
cess of $40,000,000 may be made in fiscal year 2004. 
GUARANTEED TRANSITIONAL HOUSING LOANS FOR 
HOMELESS VETERANS PROGRAM ACCOUNT 
For the administrative expenses to carry out the 
guaranteed transitional housing loan program authorized 
by 38 U.S.C. chapter 37, subchapter VI, not to exceed 
$350,000 of the amounts appropriated by this Act for 
‘‘General operating expenses’’ and ‘‘Medical services for 
priority 1–6 veterans) may be expended. 
VETERANS HEALTH ADMINISTRATION 
MEDICAL SERVICES FOR PRIORITY 1–6 VETERANS 
For necessary expenses for furnishing, as authorized 
by law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs other 
than veterans described in paragraphs (7) and (8) of sec-
tion 1705(a) of title 38, United States Code, including
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care and treatment in facilities not under the jurisdiction 
of the department and including medical supplies and 
equipment and salaries and expenses of health-care em-
ployees hired under title 38, United States Code, and aid 
to State homes as authorized by section 1741 of title 38, 
United States Code; $15,779,220,000, plus reimburse-
ments: Provided, That of the funds made available under 
this heading, not less than $200,000,000 is for the equip-
ment object classification, which amount shall not become 
available for obligation until August 1, 2004, and shall 
remain available until September 30, 2005: Provided fur-
ther, That of the funds made available under this heading, 
not to exceed $700,000,000 shall be available until Sep-
tember 30, 2005. 
MEDICAL SERVICES FOR PRIORITY 7–8 VETERANS 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for furnishing, as authorized 
by law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs who 
are veterans described in paragraphs (7) and (8) of section 
1705(a) of title 38, United States Code, including care 
and treatment in facilities not under the jurisdiction of 
the Department and including medical supplies and equip-
ment and salaries and expenses of health-care employees 
hired under title 38, United States Code, and aid to State 
homes as authorized by section 1741 of title 38, United
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States Code; $2,164,000,000, plus reimbursements: Pro-
vided, That of the amounts provided under this heading, 
$1,500,000,000 shall be derived from amounts deposited 
during the current fiscal year in the Department of Vet-
erans Affairs Medical Care Collections Fund under section 
1729A of title 38, United States Code, and transferred 
to this account, to remain available until expended. 
MEDICAL AND PROSTHETIC RESEARCH 
For necessary expenses in carrying out programs of 
medical and prosthetic research and development as au-
thorized by chapter 73 of title 38, United States Code, 
to 
remain 
available 
until 
September 
30, 
2005, 
$408,000,000, plus reimbursements. 
MEDICAL ADMINISTRATION 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses in the administration of the 
medical, hospital, nursing home, domiciliary, construction, 
supply, and research activities, as authorized by law; ad-
ministrative expenses in support of capital policy activi-
ties; information technology hardware and software; uni-
forms or allowances therefor, as authorized by sections 
5901–5902 of title 5, United States Code; and administra-
tive and legal expenses of the department for collecting 
and recovering amounts owed the department as author-
ized under chapter 17 of title 38, United States Code, and 
the Federal Medical Care Recovery Act (42 U.S.C. 2651
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et seq.); $4,854,000,000, of which $300,000,000 shall be 
available until September 30, 2005, plus reimbursements: 
Provided, That funds available under this heading may be 
transferred to ‘‘Medical Services for Priority 1–6 Vet-
erans’’ or to ‘‘Medical Services for Priority 7–8 Veterans’’ 
after notice of the amount and purpose of the transfer 
is provided to the Committees on Appropriations of the 
Senate and House of Representatives and a period of 30 
days has elapsed. 
MEDICAL FACILITIES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the maintenance and op-
eration of hospitals, nursing homes, and domiciliary facili-
ties and other necessary facilities for the Veterans Health 
Administration; for administrative expenses in support of 
planning, design, project management, real property ac-
quisition and disposition, construction and renovation of 
any facility under the jurisdiction or for the use of the 
department; for oversight, engineering and architectural 
activities not charged to project costs; for repairing, alter-
ing, improving or providing facilities in the several hos-
pitals and homes under the jurisdiction of the department, 
not otherwise provided for, either by contract or by the 
hire of temporary employees and purchase of materials; 
for leases of facilities; and for laundry and food services, 
$4,000,000,000: Provided, That of the funds made avail-
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able under this heading, not less than $80,000,000 is for 
the land and structures object classification, which amount 
shall not become available for obligation until August 1, 
2004, and shall remain available until September 30, 
2005: Provided further, That funds available under this 
heading may be transferred to ‘‘Medical Services for Pri-
ority 1–6 Veterans’’ or to ‘‘Medical Services for Priority 
7–8 Veterans’’ after notice of the amount and purpose of 
the transfer is provided to the Committees on Appropria-
tions of the Senate and House of Representatives and a 
period of 30 days has elapsed. 
DEPARTMENTAL ADMINISTRATION 
GENERAL OPERATING EXPENSES 
For necessary operating expenses of the Department 
of Veterans Affairs, not otherwise provided for, including 
administrative expenses in support of department-wide 
capital planning, management and policy activities, uni-
forms or allowances therefor; not to exceed $25,000 for 
official reception and representation expenses; hire of pas-
senger motor vehicles; and reimbursement of the General 
Services Administration for security guard services, and 
the Department of Defense for the cost of overseas em-
ployee mail, $1,283,272,000: Provided, That expenses for 
services and assistance authorized under 38 U.S.C. 
3104(a)(1), (2), (5), and (11) that the Secretary deter-
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mines are necessary to enable entitled veterans: (1) to the 
maximum extent feasible, to become employable and to ob-
tain and maintain suitable employment; or (2) to achieve 
maximum independence in daily living, shall be charged 
to this account: Provided further, That the Veterans Bene-
fits Administration shall be funded at not less than 
$1,005,000,000: Provided further, That of the funds made 
available under this heading, not to exceed $66,000,000 
shall be available for obligation until September 30, 2005: 
Provided further, That from the funds made available 
under this heading, the Veterans Benefits Administration 
may purchase up to two passenger motor vehicles for use 
in operations of that Administration in Manila, Phil-
ippines: Provided further, That travel expenses for this ac-
count shall not exceed $17,082,000. 
NATIONAL CEMETERY ADMINISTRATION 
For necessary expenses of the National Cemetery Ad-
ministration for operations and maintenance, not other-
wise provided for, including uniforms or allowances there-
for; cemeterial expenses as authorized by law; purchase 
of one passenger motor vehicle for use in cemeterial oper-
ations; 
and 
hire 
of 
passenger 
motor 
vehicles, 
$144,223,000, to remain available until September 30, 
2005.
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OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector 
General in carrying out the provisions of the Inspector 
General Act of 1978, as amended, $61,750,000, to remain 
available until September 30, 2005. 
CONSTRUCTION, MAJOR PROJECTS 
For constructing, altering, extending and improving 
any of the facilities under the jurisdiction or for the use 
of the Department of Veterans Affairs, or for any of the 
purposes set forth in sections 316, 2404, 2406, 8102, 
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, 
United States Code, including planning, architectural and 
engineering services, maintenance or guarantee period 
services costs associated with equipment guarantees pro-
vided under the project, services of claims analysts, offsite 
utility and storm drainage system construction costs, and 
site acquisition, where the estimated cost of a project is 
$4,000,000 or more or where funds for a project were 
made available in a previous major project appropriation, 
$274,690,000, to remain available until expended, of 
which $173,000,000 shall be for Capital Asset Realign-
ment for Enhanced Services (CARES) activities; and of 
which $10,000,000 shall be to make reimbursements as 
provided in 41 U.S.C. 612 for claims paid for contract 
disputes: Provided, That except for advance planning ac-
tivities, including needs assessments which may or may
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not lead to capital investments, and other capital asset 
management related activities, such as portfolio develop-
ment and management activities, and investment strategy 
studies funded through the advance planning fund and the 
planning and design activities funded through the design 
fund and CARES funds, including needs assessments 
which may or may not lead to capital investments, none 
of the funds appropriated under this heading shall be used 
for any project which has not been approved by the Con-
gress in the budgetary process: Provided further, That 
funds provided in this appropriation for fiscal year 2004, 
for each approved project (except those for CARES activi-
ties referenced above) shall be obligated: (1) by the award-
ing of a construction documents contract by September 
30, 2004; and (2) by the awarding of a construction con-
tract by September 30, 2004: Provided further, That the 
Secretary of Veterans Affairs shall promptly report in 
writing to the Committees on Appropriations any ap-
proved major construction project in which obligations are 
not incurred within the time limitations established above: 
Provided further, That no funds from any other account 
except the ‘‘Parking revolving fund’’, may be obligated for 
constructing, altering, extending, or improving a project 
which was approved in the budget process and funded in 
this account until one year after substantial completion
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and beneficial occupancy by the Department of Veterans 
Affairs of the project or any part thereof with respect to 
that part only. 
CONSTRUCTION, MINOR PROJECTS 
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 
and assessments of needs which may lead to capital invest-
ments, architectural and engineering services, mainte-
nance or guarantee period services costs associated with 
equipment guarantees provided under the project, services 
of claims analysts, offsite utility and storm drainage sys-
tem construction costs, and site acquisition, or for any of 
the purposes set forth in sections 316, 2404, 2406, 8102, 
8103, 8106, 8108, 8109, 8110, 8122, and 8162 of title 
38, United States Code, where the estimated cost of a 
project is less than $4,000,000, $252,144,000, to remain 
available until expended, along with unobligated balances 
of previous ‘‘Construction, minor projects’’ appropriations 
which are hereby made available for any project where the 
estimated cost is less than $4,000,000, of which 
$35,000,000 shall be for Capital Asset Realignment for 
Enhanced Services (CARES) activities: Provided, That 
from amounts appropriated under this heading, additional 
amounts may be used for CARES activities upon notifica-
tion of and approval by the Committees on Appropria-
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tions: Provided further, That funds in this account shall 
be available for: (1) repairs to any of the nonmedical facili-
ties under the jurisdiction or for the use of the Depart-
ment which are necessary because of loss or damage 
caused by any natural disaster or catastrophe; and (2) 
temporary measures necessary to prevent or to minimize 
further loss by such causes. 
PARKING REVOLVING FUND 
For the parking revolving fund as authorized by 38 
U.S.C. 8109, income from fees collected, to remain avail-
able until expended, which shall be available for all author-
ized expenses except operations and maintenance costs, 
which will be funded from ‘‘Medical facilities’’. 
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE 
FACILITIES 
For grants to assist States to acquire or construct 
State nursing home and domiciliary facilities and to re-
model, modify or alter existing hospital, nursing home and 
domiciliary facilities in State homes, for furnishing care 
to veterans as authorized by 38 U.S.C. 8131–8137, 
$102,100,000, to remain available until expended. 
GRANTS FOR THE CONSTRUCTION OF STATE VETERANS 
CEMETERIES 
For grants to aid States in establishing, expanding, 
or improving State veterans cemeteries as authorized by
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38 U.S.C. 2408, $32,000,000, to remain available until 
expended. 
ADMINISTRATIVE PROVISIONS 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 101. Any appropriation for fiscal year 2004 for 
‘‘Compensation, pension and burial benefits’’, ‘‘Readjust-
ment benefits’’, and ‘‘Veterans insurance and indemnities’’ 
may be transferred to any other of the mentioned appro-
priations. 
SEC. 102. Appropriations available to the Depart-
ment of Veterans Affairs for fiscal year 2004 for salaries 
and expenses shall be available for services authorized by 
5 U.S.C. 3109 hire of passenger motor vehicles; lease of 
a facility or land or both; and uniforms or allowances 
therefore, as authorized by 5 U.S.C. 5901–5902. 
SEC. 103. No appropriations in this Act for the De-
partment of Veterans Affairs (except the appropriations 
for ‘‘Construction, major projects’’, ‘‘Construction, minor 
projects’’, and the ‘‘Parking revolving fund’’) shall be 
available for the purchase of any site for or toward the 
construction of any new hospital or home. 
SEC. 104. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available for hos-
pitalization or examination of any persons (except bene-
ficiaries entitled under the laws bestowing such benefits
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to veterans, and persons receiving such treatment under 
5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless re-
imbursement of cost is made to the Medical care collec-
tions fund account at such rates as may be fixed by the 
Secretary of Veterans Affairs. 
SEC. 105. Appropriations available to the Depart-
ment of Veterans Affairs for fiscal year 2004 for ‘‘Com-
pensation, pension and burial benefits’’, ‘‘Readjustment 
benefits’’, and ‘‘Veterans insurance and indemnities’’ shall 
be available for payment of prior year accrued obligations 
required to be recorded by law against the corresponding 
prior year accounts within the last quarter of fiscal year 
2003. 
SEC. 106. Appropriations accounts available to the 
Department of Veterans Affairs for fiscal year 2004 shall 
be available to pay prior year obligations of corresponding 
prior year appropriations accounts resulting from title X 
of the Competitive Equality Banking Act, Public Law 
100–86, except that if such obligations are from trust 
fund accounts they shall be payable from ‘‘Compensation, 
pension and burial benefits’’. 
SEC. 107. Notwithstanding any other provision of 
law, during fiscal year 2004, the Secretary of Veterans 
Affairs shall, from the National Service Life Insurance 
Fund (38 U.S.C. 1920), the Veterans’ Special Life Insur-
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ance Fund (38 U.S.C. 1923), and the United States Gov-
ernment Life Insurance Fund (38 U.S.C. 1955), reim-
burse the ‘‘General operating expenses’’ account for the 
cost of administration of the insurance programs financed 
through those accounts: Provided, That reimbursement 
shall be made only from the surplus earnings accumulated 
in an insurance program in fiscal year 2004 that are avail-
able for dividends in that program after claims have been 
paid and actuarially determined reserves have been set 
aside: Provided further, That if the cost of administration 
of an insurance program exceeds the amount of surplus 
earnings accumulated in that program, reimbursement 
shall be made only to the extent of such surplus earnings: 
Provided further, That the Secretary shall determine the 
cost of administration for fiscal year 2004 which is prop-
erly allocable to the provision of each insurance program 
and to the provision of any total disability income insur-
ance included in such insurance program. 
SEC. 108. Notwithstanding any other provision of 
law, the Department of Veterans Affairs shall continue the 
Franchise Fund pilot program authorized to be estab-
lished by section 403 of Public Law 103–356 until Octo-
ber 1, 2004: Provided, That the Franchise Fund, estab-
lished by title I of Public Law 104–204 to finance the
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operations of the Franchise Fund pilot program, shall con-
tinue until October 1, 2004. 
SEC. 109. Amounts deducted from enhanced-use 
lease proceeds to reimburse an account for expenses in-
curred by that account during a prior fiscal year for pro-
viding enhanced-use lease services, may be obligated dur-
ing the fiscal year in which the proceeds are received. 
SEC. 110. Funds available in any Department of Vet-
erans Affairs appropriation for fiscal year 2004 or funds 
for salaries and other administrative expenses shall also 
be available to reimburse the Office of Resolution Manage-
ment and the Office of Employment Discrimination Com-
plaint Adjudication for all services provided at rates which 
will recover actual costs but not exceed $29,318,000 for 
the Office of Resolution Management and $3,010,000 for 
the Office of Employment and Discrimination Complaint 
Adjudication: Provided, That payments may be made in 
advance for services to be furnished based on estimated 
costs: Provided further, That amounts received shall be 
credited to ‘‘General operating expenses’’ for use by the 
office that provided the service. 
SEC. 111. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available to enter 
into any new lease of real property if the estimated annual 
rental is more than $300,000 unless the Secretary submits
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a report which the Committees on Appropriations of the 
Congress approve within 30 days following the date on 
which the report is received. 
SEC. 112. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available for hos-
pitalization or treatment of any person by reason of eligi-
bility under section 1710(a)(3) of title 38, United States 
Code, unless that person has disclosed to the Secretary 
of Veterans Affairs, in such form as the Secretary may 
require—
(1) current, accurate third-party reimbursement 
information for purposes of section 1729 of such 
title; and 
(2) annual income information for purposes of 
section 1722 of such title. 
SEC. 113. Of the amounts provided in this Act, 
$25,000,000 shall be for information technology initiatives 
to support the enterprise architecture of the Department 
of Veterans Affairs. 
SEC. 114. Notwithstanding any other provision of 
law, the Secretary of Veterans Affairs may establish a pri-
ority for treatment for veterans who have service-con-
nected disability, who are lower-income veterans, or who 
have special needs.
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SEC. 115. (a) The Secretary of Veterans Affairs shall 
conduct by contract a program of recovery audits for the 
fee basis and other medical services contracts with respect 
to payments for hospital care. Notwithstanding section 
3302(b) of title 31, United States Code, amounts col-
lected, by setoff or otherwise, as the result of such audits 
shall be available, without fiscal year limitation, for the 
purposes for which funds are appropriated under ‘‘Medical 
services for priority 7–8 veterans’’ and the purposes of 
paying a contractor a percent of the amount collected as 
a result of an audit carried out by the contractor. 
(b) All amounts so collected under subsection (a) with 
respect to a designated health care region (as that term 
is defined in section 1729A(d)(2) of title 38, United States 
Code) shall be allocated, net of payments to the con-
tractor, to that region. 
SEC. 116. Amounts made available for Medical Serv-
ices are available—
(1) for furnishing veterans provided Medical 
Services with recreational facilities, supplies, and 
equipment; and 
(2) for funeral expenses, burial expenses, and 
other expenses incidental to funerals and burials for 
beneficiaries receiving care in the department.
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SEC. 117. Balances in excess of $1,500,000,000 in 
the Medical Care Collections Fund as of August 1, 2004 
shall be transferred to ‘‘Medical services for priority 7–
8 veterans’’ for the purposes under that heading to be 
available until expended. 
SEC. 118. Amounts made available for fiscal year 
2004 under the ‘‘Medical services for priority 1–6 vet-
erans’’ and ‘‘Medical services for priority 7–8 veterans’’ 
accounts may be transferred between either account to the 
extent necessary to implement the restructuring of the 
Veterans Health Administration accounts after notice of 
the amount and purpose of the transfer is provided to the 
Committees on Appropriations of the Senate and House 
of Representatives and a period of 30 days has elapsed: 
Provided, That the limitation on transfers is ten percent 
in fiscal year 2004. 
SEC. 119. The Department of Veterans Affairs med-
ical center in Houston, Texas, shall after the date of the 
enactment of this Act be known as designated as the ‘‘Mi-
chael E. DeBakey Department of Veterans Affairs Med-
ical Center’’. Any reference in any law, regulation, map, 
document, record, or other paper of the United States to 
such medical center shall be considered to be a reference 
to the Michael E. DeBakey Department of Veterans Af-
fairs Medical Center.
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SEC. 120. The Secretary of Veterans Affairs shall 
maximize, to the greatest extent possible, sharing agree-
ments for services, programs and facilities with the De-
partment of Defense, particularly in areas where facilities 
and/or targeted populations are in close proximity: Pro-
vided, That the Secretary of Veterans Affairs shall submit 
a report to the Committees on Appropriations no later 
than December 1, 2003, detailing restrictive regulations, 
policies, and regulatory redundancies that inhibit resource 
sharing, and provide milestone dates to address each iden-
tified issue. 
TITLE II—DEPARTMENT OF HOUSING AND 
URBAN DEVELOPMENT 
PUBLIC AND INDIAN HOUSING 
HOUSING CERTIFICATE FUND 
(INCLUDING TRANSFER AND RESCISSION OF FUNDS) 
For activities and assistance under the United States 
Housing Act of 1937, as amended (42 U.S.C. 1437 et 
seq.) (‘‘the Act’’ herein), not otherwise provided for, 
$18,430,606,000 (increased by $150,000,000), and 
amounts that are recaptured in this account, to remain 
available until expended: Provided, That of the amounts 
made available under this heading, $14,230,606,000 (in-
creased by $150,000,000) and the aforementioned recap-
tures shall be available on October 1, 2003 and 
$4,200,000,000 shall be available on October 1, 2004:
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Provided further, That amounts made available under this 
heading are provided as follows: 
(1) 
$16,295,578,000 
(increased 
by 
$150,000,000) for expiring or terminating section 8 
project-based subsidy contracts (including section 8 
moderate rehabilitation contracts), for amendments 
to section 8 project-based subsidy contracts, for con-
tracts entered into pursuant to section 441 of the 
McKinney-Vento Homeless Assistance Act, for the 
renewal of section 8 contracts for units in projects 
that are subject to approved plans of action under 
the Emergency Low Income Housing Preservation 
Act of 1987 or the Low-Income Housing Preserva-
tion and Resident Homeownership Act of 1990, and 
for renewals of expiring section 8 tenant-based an-
nual contributions contracts (including amendments 
and renewals of enhanced vouchers under any provi-
sion of law authorizing such assistance under section 
8(t) of the Act (42 U.S.C. 1437f(t))): Provided, 
That notwithstanding any other provision of law, the 
Secretary shall renew expiring section 8 tenant-
based annual contributions contracts for each public 
housing agency, (including for agencies participating 
in the Moving to Work demonstration, unit months 
representing section 8 tenant-based assistance funds
HR 2861 PCS 
committed by the public housing agency for specific 
purposes, other than reserves, that are authorized 
pursuant to any agreement and conditions entered 
into under such demonstration, and utilized in com-
pliance with any applicable program obligation dead-
lines) based on the total number of unit months 
which were under lease as reported on the most re-
cent end-of-year financial statement submitted by 
the public housing agency to the Department, ad-
justed by such additional information submitted by 
the public housing agency to the Secretary which the 
Secretary determines to be timely and reliable re-
garding the total number of unit months under lease 
at the time of renewal of the annual contributions 
contract, and by applying an inflation factor based 
on local or regional factors to the actual per unit 
cost as reported on such statement: Provided further, 
That none of the funds made available in this para-
graph may be used to support a total number of unit 
months under lease which exceeds a public housing 
agency’s authorized level of units under contract; 
(2) $568,503,000 for a central fund to be allo-
cated by the Secretary for amendments to section 8 
tenant-based annual contributions contracts for such 
purposes set forth in this paragraph: Provided, That
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subject to the following proviso, the Secretary may 
use amounts made available in such fund, as nec-
essary, for contract amendments resulting from a 
significant increase in the per unit cost of vouchers 
or an increase in the total number of unit months 
under lease as compared to the per unit cost or the 
total number of unit months provided for by the an-
nual contributions contract: Provided further, That if 
a public housing agency, at any point in time during 
their fiscal year, has obligated the amounts made 
available to such agency pursuant to paragraph (1) 
under this heading for the renewal of expiring sec-
tion 8 tenant-based annual contributions contracts, 
and if such agency has expended fifty percent of the 
amounts available to such agency in its annual con-
tributions contract reserve account, the Secretary 
shall make available such amounts as are necessary 
from amounts available from such central fund to 
fund amendments under the preceding proviso with-
in thirty days of a request from such agency: Pro-
vided further, That none of the funds made available 
in this paragraph may be used to support a total 
number of unit months under lease which exceeds a 
public housing agency’s authorized level of units 
under contract: Provided further, That the Secretary
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shall provide quarterly reports to the Committees on 
Appropriations of the House and the Senate on the 
obligation of funds provided in this paragraph in ac-
cordance with the directions specified in the report 
accompanying this Act; 
(3) $206,495,100 for section 8 rental assistance 
for relocation and replacement of housing units that 
are demolished or disposed of pursuant to the Omni-
bus Consolidated Rescissions and Appropriations Act 
of 1996 (Public Law 104–134), conversion of section 
23 projects to assistance under section 8, the family 
unification program under section 8(x) of the Act, 
relocation of witnesses in connection with efforts to 
combat crime in public and assisted housing pursu-
ant to a request from a law enforcement or prosecu-
tion agency, enhanced vouchers under any provision 
of law authorizing such assistance under section 8(t) 
of the Act (42 U.S.C.1437f(t)), and tenant protec-
tion assistance, including replacement and relocation 
assistance; 
(4) $48,000,000 for family self-sufficiency coor-
dinators under section 23 of the Act; 
(5) not to exceed $1,209,020,000 for adminis-
trative and other expenses of public housing agencies 
in administering the section 8 tenant-based rental
HR 2861 PCS 
assistance program: Provided, That, notwithstanding 
any other provision of law or regulation, the Sec-
retary shall allocate funds provided in this para-
graph among public housing agencies in a manner 
prescribed by the Secretary: Provided further, That 
none of the funds provided in this Act or any other 
Act may be used to supplement the amounts pro-
vided in this paragraph: Provided further, That, 
hereafter, the Secretary shall recapture any funds 
provided under this heading in this Act or any other 
Act for administrative fees and other expenses from 
a public housing agency which are in excess of the 
amounts expended by such agency for the section 8 
tenant-based rental assistance program and not oth-
erwise needed to maintain an administrative fee re-
serve account balance of not to exceed five percent: 
Provided further, That all such administrative fee 
amounts provided under this paragraph shall be only 
for activities directly related to the provision of rent-
al assistance under section 8; 
(6) $100,000,000 for contract administrators 
for section 8 project-based assistance; and 
(7) not less than $3,010,000 shall be trans-
ferred to the Working Capital Fund for the develop-
ment of and modifications to information technology
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systems which serve programs or activities under 
‘‘Public and Indian Housing’’: Provided, That the 
Secretary may transfer up to 15 percent of funds 
provided under paragraphs (1), (2) or (5), herein to 
paragraphs (1) or (2), if the Secretary determines 
that such action is necessary because the funding 
provided under one such paragraph otherwise would 
be depleted and as a result, the maximum utilization 
of section 8 tenant-based assistance with the funds 
appropriated for this purpose by this Act would not 
be feasible: Provided further, That prior to under-
taking the transfer of funds in excess of 10 percent 
from any paragraph pursuant to the previous pro-
viso, the Secretary shall notify the Chairman and 
Ranking Member of the Subcommittees on Veterans 
Affairs and Housing and Urban Development, and 
Independent Agencies of the Committees on Appro-
priations of the House of Representatives and the 
Senate and shall not transfer any such funds until 
30 days after such notification: Provided further, 
That incremental vouchers previously made available 
under this heading for non-elderly disabled families 
shall, to the extent practicable, continue to be pro-
vided to non-elderly disabled families upon turnover: 
Provided further, That $1,372,000,000 is rescinded
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from unobligated balances remaining from funds ap-
propriated to the Department of Housing and Urban 
Development under this heading or the heading 
‘‘Annual contributions for assisted housing’’ or any 
other heading for fiscal year 2003 and prior years, 
to be effected by the Secretary no later than Sep-
tember 30, 2004: Provided further, That any such 
balances governed by reallocation provisions under 
the statute authorizing the program for which the 
funds were originally appropriated shall be available 
for the rescission: Provided further, That any obli-
gated balances of contract authority from fiscal year 
1974 and prior that have been terminated shall be 
cancelled. 
PUBLIC HOUSING CAPITAL FUND 
(INCLUDING TRANSFER OF FUNDS) 
For the Public Housing Capital Fund Program to 
carry out capital and management activities for public 
housing agencies, as authorized under section 9 of the 
United States Housing Act of 1937, as amended (42 
U.S.C. 1437g) (the ‘‘Act’’) $2,712,255,000, to remain 
available until September 30, 2007: Provided, That of the 
total amount provided under this heading, in addition to 
amounts 
otherwise 
allocated 
under 
this 
heading, 
$429,000,000 shall be allocated for such capital and man-
agement activities only among public housing agencies