In the Senate of the United States,
November 18, 2003.
Resolved, That the bill from the House of Representa-
tives (H.R. 2861) entitled ‘‘An Act making appropriations for
the Departments of Veterans Affairs and Housing and Urban
Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year end-
ing September 30, 2004, and for other purposes.’’, do pass
with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
Departments of Veteran Affairs and Housing and Urban
Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year
ending September 30, 2004, and for other purposes, namely:
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TITLE I—DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFER OF FUNDS)
For the payment of compensation benefits to or on be-
half of veterans and a pilot program for disability examina-
tions 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 burial benefits,
emergency and other officers’ retirement pay, adjusted-serv-
ice credits and certificates, payment of premiums due on
commercial life insurance policies guaranteed 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, 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 $17,056,000 of the amount ap-
propriated under this heading shall be reimbursed to ‘‘Gen-
eral operating expenses’’ and ‘‘Medical care’’ for necessary
expenses in implementing those provisions authorized 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 pro-
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HR 2861 EAS
vided as the ‘‘Compensation and pensions’’ 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 facilities for nursing home care pro-
vided to pensioners as authorized.
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 program
services and assistance which the Secretary is authorized
to provide under section 3104(a) of title 38, United States
Code, other than under subsection (a)(1), (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 expended.
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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, 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 obligations for direct loans are authorized
for specially adapted housing loans.
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’’.
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, in-
cluding 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 principal amount of
direct loans not to exceed $3,400.
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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 ‘‘Gen-
eral 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: Provided further, That the loan level
shall be considered an estimate and not a limitation.
In addition, for administrative expenses necessary to
carry out the direct loan program, $300,000, which may
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 transferred
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to and merged with the appropriation for ‘‘General oper-
ating expenses’’.
GUARANTEED TRANSITIONAL HOUSING LOANS FOR
HOMELESS VETERANS PROGRAM ACCOUNT
For the administrative expenses to carry out the guar-
anteed transitional housing loan program authorized by 38
U.S.C. chapter 37, subchapter VI, not to exceed $750,000
of the amounts appropriated by this Act for ‘‘General oper-
ating expenses’’ and ‘‘Medical care’’ may be expended.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses for the maintenance and oper-
ation of hospitals, nursing homes, and domiciliary facili-
ties; for furnishing, as authorized by law, inpatient and
outpatient care and treatment to beneficiaries of the De-
partment of Veterans Affairs, including care and treatment
in facilities not under the jurisdiction of the department;
and furnishing recreational facilities, supplies, and equip-
ment; funeral, burial, and other expenses incidental thereto
for beneficiaries receiving care in the department; adminis-
trative expenses in support of planning, design, project
management, real property acquisition and disposition,
construction and renovation of any facility under the juris-
diction or for the use of the department; oversight, engineer-
ing and architectural activities not charged to project cost;
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repairing, altering, improving or providing facilities in the
several hospitals 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 ma-
terials; uniforms or allowances therefor, as authorized by
5 U.S.C. 5901–5902; aid to State homes as authorized by
38 U.S.C. 1741; administrative and legal expenses of the
department for collecting and recovering amounts owed the
department as authorized under 38 U.S.C. chapter 17, and
the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et
seq., $25,488,080,000, plus reimbursements: Provided, That,
notwithstanding any other provision of law, the Secretary
of Veterans Affairs shall establish a priority for treatment
for veterans who are service-connected disabled, lower in-
come, or have special needs: Provided further, That, not-
withstanding any other provision of law, the Secretary of
Veterans Affairs shall give priority funding for the provi-
sion of basic medical benefits to veterans in enrollment pri-
ority groups 1 through 6: Provided further, That of the
funds made available under this heading, $1,100,000,000
is for equipment and land and structures object classifica-
tions only, which amount shall not become available for ob-
ligation until August 1, 2004, and shall remain available
until September 30, 2005: Provided further, That of the
funds made available under this heading, not to exceed
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$1,100,000,000 shall be available until September 30, 2005:
Provided further, That of the funds made available under
this 
heading, 
the 
Secretary 
may 
transfer 
up 
to
$400,000,000 to ‘‘Construction, major projects’’ for purposes
of implementing CARES subject to a determination by the
Secretary that such funds will improve access and quality
of veteran’s health care needs: Provided further, That, not-
withstanding any other provision of law, the Secretary of
Veterans Affairs may provide prescription drugs to enrolled
veterans with privately written prescriptions based on re-
quirements established by the Secretary: Provided further,
That the Secretary of Veterans Affairs shall conduct by con-
tract a program of recovery audits for the fee basis and
other medical services contracts with respect to payments
for hospital care; and, notwithstanding 31 U.S.C. 3302(b),
amounts collected, by setoff or otherwise, as the result of
such audits shall be available, without fiscal year limita-
tion, for the purposes for which funds are appropriated
under this heading and the purposes of paying a contractor
a percent of the amount collected as a result of an audit
carried out by the contractor: Provided further, That all
amounts so collected under the preceding proviso with re-
spect to a designated health care region (as that term is
defined in 38 U.S.C. 1729A(d)(2)) shall be allocated, net
of payments to the contractor, to that region: Provided fur-
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ther, That such sums as may be deposited to the Medical
Care Collections Fund pursuant to 38 U.S.C. 1729A may
be transferred to this account, to remain available until ex-
pended for the purposes of this account: Provided further,
That Medical Care Collections Funds may be used for con-
struction, alteration and improvement of any parking facil-
ity set forth in 38 U.S.C. 8109: Provided further, That of
the unobligated balances remaining from prior year recov-
eries under this heading, $270,000,000 is rescinded.
For an additional amount for ‘‘Medical care’’,
$1,300,000,000.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of
medical and prosthetic research and development as author-
ized by 38 U.S.C. chapter 73, to remain available until
September 30, 2005, $413,000,000 plus reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS
OPERATING EXPENSES
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 activities,
$79,146,000: Provided further, That of the funds made
available under this heading, not to exceed, $4,000,000 shall
be available until September 30, 2005, plus reimbursements:
Provided further, That technical and consulting services of-