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‘‘(j) Notwithstanding any other provision of this sec-
tion, each employee who is a Senator and is paid at an
annual rate of pay exceeding $100,000 shall pay the em-
ployee contribution and the full amount of the Government
contribution which applies under this section. The Sec-
retary of the Senate shall deduct and withhold the contribu-
tions required under this section and deposit such contribu-
tions in the Employees Health Benefits Fund.’’.
(c) EFFECTIVE DATE.—This section shall take effect
on the first day of the first pay period beginning on or
after the date of enactment of this Act.
Subtitle B—GSA Property Sales
SEC. 6011. SALE OF GOVERNORS ISLAND, NEW YORK.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Administrator of General Services shall,
no earlier than fiscal year 2002, dispose of by sale at fair
market value all rights, title, and interests of the United
States in and to the land of, and improvements to, Gov-
ernors Island, New York.
(b) RIGHT OF FIRST OFFER.—Before a sale is made
under subsection (a) to any other parties, the State of New
York and the city of New York shall be given the right of
first offer to purchase all or part of Governors Island at
fair market value as determined by the Administrator of
General Services. Not later than 90 days after notification
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by the Administrator of General Services, such right may
be exercised by either the State of New York or the city of
New York or by both parties acting jointly.
(c) PROCEEDS.—Proceeds from the disposal of Gov-
ernors Island under subsection (a) shall be deposited in the
general fund of the Treasury and credited as miscellaneous
receipts.
SEC. 6012. SALE OF AIR RIGHTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Administrator of General Services shall sell,
at fair market value and in a manner to be determined
by the Administrator, the air rights adjacent to Washington
Union Station described in subsection (b), including air
rights conveyed to the Administrator under subsection (d).
The Administrator shall complete the sale by such date as
is necessary to ensure that the proceeds from the sale will
be deposited in accordance with subsection (c).
(b) DESCRIPTION.—The air rights referred to in sub-
section (a) total approximately 16.5 acres and are depicted
on the plat map of the District of Columbia as follows:
(1) Part of lot 172, square 720.
(2) Part of lots 172 and 823, square 720.
(3) Part of lot 811, square 717.
(c) PROCEEDS.—Before September 30, 2002, proceeds
from the sale of air rights under subsection (a) shall be de-
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posited in the general fund of the Treasury and credited
as miscellaneous receipts.
(d) CONVEYANCE OF AMTRAK AIR RIGHTS.—
(1) GENERAL RULE.—As a condition of future
Federal financial assistance, Amtrak shall convey to
the Administrator of General Services on or before
December 31, 1997, at no charge, all of the air rights
of Amtrak described in subsection (b).
(2) FAILURE TO COMPLY.—If Amtrak does not
meet the condition established by paragraph (1), Am-
trak shall be prohibited from obligating Federal funds
after March 1, 1998.
TITLE VII—COMMITTEE ON
LABOR AND HUMAN RESOURCES
SEC. 7001. MANAGEMENT AND RECOVERY OF RESERVES.
(a) AMENDMENT.—Section 422 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1072) is amended by adding
after subsection (g) the following new subsection:
‘‘(h) RECALL OF RESERVES; LIMITATIONS ON USE OF
RESERVE FUNDS AND ASSETS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the Secretary shall, except as other-
wise provided in this subsection, recall $1,028,000,000
from the reserve funds held by guaranty agencies
under this part (which for purposes of this subsection
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shall include any reserve funds held by, or under the
control of, any other entity) on September 1, 2002.
‘‘(2) DEPOSIT.—Funds recalled by the Secretary
under this subsection shall be deposited in the Treas-
ury.
‘‘(3) EQUITABLE
SHARE.—The Secretary shall
require each guaranty agency to return reserve funds
under paragraph (1) based on such agency’s equitable
share of excess reserve funds held by guaranty agen-
cies as of September 30, 1996. For purposes of this
paragraph, a guaranty agency’s equitable share of ex-
cess reserve funds shall be determined as follows:
‘‘(A) The Secretary shall compute each
agency’s reserve ratio by dividing (i) the amount
held in such agency’s reserve (including funds
held by, or under the control of, any other entity)
as of September 30, 1996, by (ii) the original
principal amount of all loans for which such
agency has an outstanding insurance obligation.
‘‘(B) If the reserve ratio of any agency as
computed under subparagraph (A) exceeds 1.12
percent, the agency’s equitable share shall in-
clude so much of the amounts held in such agen-
cy’s reserve fund as exceed a reserve ratio of 1.12
percent.
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‘‘(C) If any additional amount is required
to be recalled under paragraph (1) (after deduct-
ing the total of the equitable shares calculated
under subparagraph (B)), the agencies’ equitable
shares shall include additional amounts—
‘‘(i) determined by imposing on each
such agency an equal percentage reduction
in the amount of each agency’s reserve fund
remaining after deduction of the amount re-
called under subparagraph (B); and
‘‘(ii) the total of which equals the addi-
tional amount that is required to be recalled
under paragraph (1) (after deducting the
total of the equitable shares calculated under
subparagraph (B)).
‘‘(4) RESTRICTED ACCOUNTS.—Within 90 days
after the beginning of each of fiscal years 1998
through 2002, each guaranty agency shall transfer a
portion of each agency’s equitable share determined
under paragraph (3) to a restricted account estab-
lished by the guaranty agency that is of a type se-
lected by the guaranty agency with the approval of
the Secretary. Funds transferred to such restricted ac-
counts shall be invested in obligations issued or guar-
anteed by the United States or in other similarly low-
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risk securities. A guaranty agency shall not use the
funds in such a restricted account for any purpose
without the express written permission of the Sec-
retary, except that a guaranty agency may use the
earnings from such restricted account for activities to
reduce student loan defaults under this part. The por-
tion required to be transferred shall be determined as
follows:
‘‘(A) In fiscal year 1998—
‘‘(i) all agencies combined shall trans-
fer to a restricted account an amount equal
to one-fifth of the total amount recalled
under paragraph (1);
‘‘(ii) each agency with a reserve ratio
(as computed under paragraph (3)(A)) that
exceeds 2 percent shall transfer to a re-
stricted account so much of the amounts
held in such agency’s reserve fund as exceed
a reserve ratio of 2 percent; and
‘‘(iii) each agency shall transfer any
additional amount required under clause (i)
(after deducting the amount transferred
under clause (ii)) by transferring an
amount that represents an equal percentage
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‘‘(7) DEFINITION.—For purposes of this sub-
section the term ‘reserve funds’ when used with re-
spect to a guaranty agency—
‘‘(A) includes any reserve funds held by, or
under the control of, any other entity; and
‘‘(B) does not include buildings, equipment,
or other nonliquid assets.’’.
(b) CONFORMING AMENDMENT.—Section 428(c)(9)(A)
of the Higher Education Act of 1965 (20 U.S.C.
1078(c)(9)(A)) is amended—
(1) in the first sentence, by striking ‘‘for the fis-
cal year of the agency that begins in 1993’’; and
(2) by striking the third sentence.
SEC. 7002. REPEAL OF DIRECT LOAN ORIGINATION FEES TO
INSTITUTIONS OF HIGHER EDUCATION.
Section 452 of the Higher Education Act of 1965 (20
U.S.C. 1087b) is amended—
(1) by striking subsection (b); and
(2) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
SEC. 7003. FUNDS FOR ADMINISTRATIVE EXPENSES.
Subsection (a) of section 458 of the Higher Education
Act of 1965 (20 U.S.C. 1087h(a)) is amended to read as
follows:
‘‘(a) ADMINISTRATIVE EXPENSES.—
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‘‘(1) IN GENERAL.—Each fiscal year, there shall
be available to the Secretary from funds not otherwise
appropriated, funds to be obligated for—
‘‘(A) administrative costs under this part,
including the costs of the direct student loan pro-
grams under this part, and
‘‘(B) administrative cost allowances payable
to guaranty agencies under part B and cal-
culated in accordance with paragraph (2),
not to exceed (from such funds not otherwise appro-
priated) 
$532,000,000 
in 
fiscal 
year 
1998,
$610,000,000 in fiscal year 1999, $705,000,000 in fis-
cal year 2000, $750,000,000 in fiscal year 2001, and
$750,000,000 in fiscal year 2002. Administrative cost
allowances under subparagraph (B) of this paragraph
shall be paid quarterly and used in accordance with
section 428(f). The Secretary may carry over funds
available under this section to a subsequent fiscal
year.
‘‘(2) CALCULATION BASIS.—Administrative cost
allowances payable to guaranty agencies under para-
graph (1)(B) shall be calculated on the basis of 0.85
percent of the total principal amount of loans upon
which insurance is issued on or after the date of en-
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actment of the Balanced Budget Act of 1997, except
that such allowances shall not exceed—
‘‘(A) $170,000,000 for each of the fiscal
years 1998 and 1999; or
‘‘(B) $150,000,000 for each of the fiscal
years 2000, 2001, and 2002.’’.
SEC. 7004. EXTENSION OF STUDENT AID PROGRAMS.
Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) is amended—
(1) in section 424(a), by striking ‘‘1998.’’ and
‘‘2002.’’ and inserting ‘‘2002.’’ and ‘‘2006.’’, respec-
tively;
(2) in section 428(a)(5), by striking ‘‘1998,’’ and
‘‘2002.’’ and inserting ‘‘2002,’’ and ‘‘2006.’’, respec-
tively; and
(3) in section 428C(e), by striking ‘‘1998.’’ and
inserting ‘‘2002.’’.
TITLE VIII—COMMITTEE ON
VETERANS’ AFFAIRS
SEC. 8001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Veterans Reconciliation Act of 1997’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE VIII—COMMITTEE ON VETERANS’ AFFAIRS
Sec. 8001. Short title; table of contents.
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Subtitle A—Extension of Temporary Authorities
Sec. 8011. Enhanced loan asset sale authority.
Sec. 8012. Home loan fees.
Sec. 8013. Procedures applicable to liquidation sales on defaulted home loans
guaranteed by the Department of Veterans Affairs.
Sec. 8014. Income verification authority.
Sec. 8015. Limitation on pension for certain recipients of medicaid-covered nurs-
ing home care.
Subtitle B—Copayments and Medical Care Cost Recovery
Sec. 8021. Authority to require that certain veterans make copayments in ex-
change for receiving health care benefits.
Sec. 8022. Medical care cost recovery authority.
Sec. 8023. Department of Veterans Affairs medical-care receipts.
Subtitle C—Other Matters
Sec. 8031. Rounding down of cost-of-living adjustments in compensation and
DIC rates in fiscal years 1998 through 2002.
Sec. 8032. Increase in amount of home loan fees for the purchase of repossessed
homes from the Department of Veterans Affairs.
Sec. 8033. Withholding of payments and benefits.
Subtitle A—Extension of Temporary
Authorities
SEC. 8011. ENHANCED LOAN ASSET SALE AUTHORITY.
Section 3720(h)(2) of title 38, United States Code, is
amended by striking out ‘‘December 31, 1997’’ and insert-
ing in lieu thereof ‘‘December 31, 2002’’.
SEC. 8012. HOME LOAN FEES.
Section 3729(a) of title 38, United States Code, is
amended—
(1) in paragraph (4), by striking out ‘‘October 1,
1998’’ and inserting in lieu thereof ‘‘October 1, 2002’’;
and
(2) in paragraph (5)(C), by striking out ‘‘Octo-
ber 1, 1998’’ and inserting in lieu thereof ‘‘October 1,
2002’’.
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SEC. 8013. PROCEDURES APPLICABLE TO LIQUIDATION
SALES ON DEFAULTED HOME LOANS GUAR-
ANTEED BY THE DEPARTMENT OF VETERANS
AFFAIRS.
Section 3732(c)(11) of title 38, United States Code, is
amended by striking out ‘‘October 1, 1998’’ and inserting
in lieu thereof ‘‘October 1, 2002’’.
SEC. 8014. INCOME VERIFICATION AUTHORITY.
Section 5317(g) of title 38, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and insert-
ing in lieu thereof ‘‘September 30, 2002’’.
SEC. 8015. LIMITATION ON PENSION FOR CERTAIN RECIPI-
ENTS 
OF 
MEDICAID-COVERED 
NURSING
HOME CARE.
Section 5503(f)(7) of title 38, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and insert-
ing in lieu thereof ‘‘September 30, 2002’’.
Subtitle B—Copayments and
Medical Care Cost Recovery
SEC. 8021. AUTHORITY TO REQUIRE THAT CERTAIN VETER-
ANS MAKE COPAYMENTS IN EXCHANGE FOR
RECEIVING HEALTH CARE BENEFITS.
(a) HOSPITAL AND MEDICAL CARE.—Section 8013(e)
of the Omnibus Budget Reconciliation Act of 1990 (38
U.S.C. 1710 note) is amended by striking out ‘‘September
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30, 1998’’ and inserting in lieu thereof ‘‘September 30,
2002’’.
(b) OUTPATIENT MEDICATIONS.—Section 1722A(c) of
title 38, United States Code, is amended by striking out
‘‘September 30, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 2002’’.
SEC. 8022. MEDICAL CARE COST RECOVERY AUTHORITY.
Section 1729(a)(2)(E) of title 38, United States Code,
is amended by striking out ‘‘October 1, 1998’’ and inserting
in lieu thereof ‘‘October 1, 2002’’.
SEC. 8023. DEPARTMENT OF VETERANS AFFAIRS MEDICAL-
CARE RECEIPTS.
(a) ALLOCATION OF RECEIPTS.—(1) Chapter 17 of
title 38, United States Code, is amended by inserting after
section 1729 the following new section:
‘‘§ 1729A. Department of Veterans Affairs Medical
Care Collections Fund
‘‘(a) There is in the Treasury a fund to be known as
the Department of Veterans Affairs Medical Care Collec-
tions Fund.
‘‘(b) Amounts recovered or collected after June 30,
1997, under any of the following provisions of law shall
be deposited in the fund:
‘‘(1) Section 1710(f) of this title.
‘‘(2) Section 1710(g) of this title.
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‘‘(3) Section 1711 of this title.
‘‘(4) Section 1722A of this title.
‘‘(5) Section 1729 of this title.
‘‘(6) Public Law 87–693, popularly known as
the ‘Federal Medical Care Recovery Act’ (42 U.S.C.
2651 et seq.), to the extent that a recovery or collec-
tion under that law is based on medical care and
services furnished under this chapter.
‘‘(c)(1) Subject to the provisions of appropriations
Acts, amounts in the fund shall be available to the Secretary
for the following purposes:
‘‘(A) Furnishing medical care and services under
this chapter, to be available during any fiscal year for
the same purposes and subject to the same limitations
as apply to amounts appropriated for that fiscal year
for medical care.
‘‘(B) Expenses of the Department for the identi-
fication, billing, auditing, and collection of amounts
owed the United States by reason of medical care and
services furnished under this chapter.
‘‘(2) Amounts available under paragraph (1) shall be
available only for the purposes set forth in that paragraph.
‘‘(d) The Secretary shall ensure that the amount made
available to a Veterans Integrated Service Network in a fis-
cal year from amounts in the fund is an amount equal to
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June 30, 1997, shall be deposited, not later than December
31, 1997, in the Department of Veterans Affairs Medical
Care Collections Fund established by section 1729A(a) of
title 38, United States Code, as added by subsection (a).
Subtitle C—Other Matters
SEC. 8031. ROUNDING DOWN OF COST-OF-LIVING ADJUST-
MENTS IN COMPENSATION AND DIC RATES IN
FISCAL YEARS 1998 THROUGH 2002.
(a) COMPENSATION COLAS.—(1) Chapter 11 of title
38, United States Code, is amended by inserting after sec-
tion 1102 the following new section:
‘‘§ 1103. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1998 through 2002 in the rates of, and dol-
lar limitations applicable to, compensation payable under
this chapter, such adjustments shall be made by a uniform
percentage that is no more than the percentage equal to the
social security increase for that fiscal year, with all in-
creased monthly rates and limitations (other than increased
rates or limitations equal to a whole dollar amount) round-
ed down to the next lower whole dollar amount.
‘‘(b) For purposes of this section, the term ‘social secu-
rity increase’ means the percentage by which benefit
amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
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as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1102 the following new item:
‘‘1103. Cost-of-living adjustments.’’.
(b) DIC COLAS.—(1) Chapter 13 of title 38, United
States Code, is amended by inserting after section 1302 the
following new section:
‘‘§ 1303. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1998 through 2002 in the rates of depend-
ency and indemnity compensation payable under this chap-
ter, such adjustments (except as provided in subsection (b))
shall be made by a uniform percentage that is no more than
the percentage equal to the social security increase for that
fiscal year, with all increased monthly rates (other than in-
creased rates equal to a whole dollar amount) rounded down
to the next lower whole dollar amount.
‘‘(b)(1) Cost-of-living adjustments for each of fiscal
years 1998 through 2002 in old-law DIC rates shall be in
a whole dollar amount that is no greater than the amount
by which the new-law DIC rate is increased for that fiscal
year as determined under subsection (a).
‘‘(2) For purposes of paragraph (1):
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‘‘(A) The term ‘old-law DIC rates’ means the
dollar amounts in effect under section 1311(a)(3) of
this title.
‘‘(B) The term ‘new-law DIC rate’ means the
dollar amount in effect under section 1311(a)(1) of
this title.
‘‘(c) For purposes of this section, the term ‘social secu-
rity increase’ means the percentage by which benefit
amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1302 the following new item:
‘‘1303. Cost-of-living adjustments.’’.
SEC. 8032. INCREASE IN AMOUNT OF HOME LOAN FEES FOR
THE PURCHASE OF REPOSSESSED HOMES
FROM THE DEPARTMENT OF VETERANS AF-
FAIRS.
Section 3729(a) of title 38, United States Code, is
amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by striking out
‘‘or 3733(a)’’;
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(B) in subparagraph (D), by striking out
‘‘and’’ at the end;
(C) in subparagraph (E), by striking out
the period at the end and inserting in lieu there-
of ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(F) in the case of a loan made under section
3733(a) of this title, the amount of such fee shall be
2.25 percent of the total loan amount.’’; and
(2) in paragraph (4), as amended by section
8012(1) of this Act, by striking out ‘‘or (E)’’ and in-
serting in lieu thereof ‘‘(E), or (F)’’.
SEC. 8033. WITHHOLDING OF PAYMENTS AND BENEFITS.
(a) NOTICE REQUIRED
IN LIEU
OF CONSENT
OR
COURT ORDER.—Section 3726 of title 38, United States
Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘No officer’’; and
(2) by striking out ‘‘unless’’ and all that follows
and inserting in lieu thereof the following: ‘‘unless the
Secretary provides such veteran or surviving spouse
with notice by certified mail with return receipt re-
quested of the authority of the Secretary to waive the
payment of indebtedness under section 5302(b) of this
title.
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‘‘(b) If the Secretary does not waive the entire amount
of the liability, the Secretary shall then determine whether
the veteran or surviving spouse should be released from li-
ability under section 3713(b) of this title.
‘‘(c) If the Secretary determines that the veteran or
surviving spouse should not be released from liability, the
Secretary shall notify the veteran or surviving spouse of
that determination and provide a notice of the procedure
for appealing that determination, unless the Secretary has
previously made such determination and notified the vet-
eran or surviving spouse of the procedure for appealing the
determination.’’.
(b) CONFORMING AMENDMENT.—Section 5302(b) of
such title is amended by inserting ‘‘with return receipt re-
quested’’ after ‘‘certified mail’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to any indebtedness to the
United States arising pursuant to chapter 37 of title 38,
United States Code, before, on, or after the date of enact-
ment of this Act.
Attest:
Secretary.