H. R. 2673—361
DIVISION G—DEPARTMENTS OF VETERANS AFFAIRS
AND HOUSING AND URBAN DEVELOPMENT, AND INDE-
PENDENT AGENCIES APPROPRIATIONS ACT, 2004
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 ending September 30, 2004, and
for other purposes.
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 fiscal year ending September 30, 2004, and
for other purposes, namely:
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 behalf of
veterans and a pilot program for disability examinations as author-
ized 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-service credits and certificates, payment of premiums due
on commercial life insurance policies guaranteed under the provi-
sions 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 avail-
able until expended: Provided, That not to exceed $17,056,000 of
the amount appropriated under this heading shall be reimbursed
to ‘‘General operating expenses’’ and ‘‘Medical services’’ for nec-
essary 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 provided as the ‘‘Compensa-
tion 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
provided 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
H. R. 2673—362
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61), $2,529,734,000,
to remain available until expended: 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 insur-
ance, servicemen’s indemnities, service-disabled veterans 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.
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 trans-
ferred to and merged with the appropriation 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, including the cost
of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended: Provided fur-
ther, That these funds are available to subsidize gross obligations
for the principal 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 be transferred
H. R. 2673—363
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 pro-
gram authorized by 38 U.S.C. chapter 37, subchapter V, as
amended, $571,000, which may be transferred to and merged with
the appropriation for ‘‘General operating expenses’’: Provided, That
no new loans in excess of $50,000,000 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 $600,000 of the amounts appro-
priated by this Act for ‘‘General operating expenses’’ and ‘‘Medical
services’’ may be expended.
VETERANS HEALTH ADMINISTRATION
MEDICAL SERVICES
For necessary expenses for furnishing, as authorized by law,
inpatient and outpatient care and treatment to beneficiaries of
the Department of Veterans Affairs and veterans described in para-
graphs (1) through (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
equipment 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 States Code;
$17,867,220,000, plus reimbursements: Provided, That of the funds
made available under this heading, not to exceed $1,100,000,000
shall be available until September 30, 2005: Provided further, That,
notwithstanding any other provision of law, the Secretary of Vet-
erans Affairs shall establish a priority for treatment for veterans
who are service-connected disabled, lower income, or have special
needs: Provided further, That, notwithstanding any other provision
of law, the Secretary of Veterans Affairs shall give priority funding
for the provision of basic medical benefits to veterans in enrollment
priority groups 1 through 6: 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, notwithstanding any other provi-
sion of law, the Secretary of Veterans Affairs may authorize the
dispensing of prescription drugs from Veterans Health Administra-
tion facilities to enrolled veterans with privately written prescrip-
tions based on requirements established by the Secretary: Provided
further, That the implementation of the program described in the
previous proviso shall incur no additional cost to the Department
of Veterans Affairs.
H. R. 2673—364
MEDICAL ADMINISTRATION
For necessary expenses in the administration of the medical,
hospital, nursing home, domiciliary, construction, supply, and
research activities, as authorized by law; administrative expenses
in support of capital policy activities; information technology hard-
ware and software; uniforms or allowances therefor, as authorized
by sections 5901–5902 of title 5, United States Code; and adminis-
trative and legal expenses of the department for collecting and
recovering amounts owed the department as authorized under
chapter 17 of title 38, United States Code, and the Federal Medical
Care Recovery Act (42 U.S.C. 2651 et seq.); $5,000,000,000, of
which $150,000,000 shall be available until September 30, 2005,
plus reimbursements.
MEDICAL FACILITIES
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities and other nec-
essary facilities for the Veterans Health Administration; for
administrative expenses in support of planning, design, project
management, real property acquisition 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, 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 materials; for leases of facilities; and for laundry and
food services, $4,000,000,000, of which $150,000,000 shall be avail-
able until September 30, 2005.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of medical
and prosthetic research and development as authorized by chapter
73 of title 38, United States Code, to remain available until Sep-
tember 30, 2005, $408,000,000, plus reimbursements.
DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department of Vet-
erans Affairs, not otherwise provided for, including administrative
expenses in support of department-wide capital planning, manage-
ment and policy activities, uniforms or allowances therefor; not
to exceed $25,000 for official reception and representation expenses;
hire of passenger motor vehicles; and reimbursement of the General
Services Administration for security guard services, and the Depart-
ment of Defense for the cost of overseas employee 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 determines are necessary to enable entitled veterans:
(1) to the maximum extent feasible, to become employable and
to obtain and maintain suitable employment; or (2) to achieve
maximum independence in daily living, shall be charged to this
account: Provided further, That the Veterans Benefits Administra-
tion shall be funded at not less than $1,005,000,000: Provided
H. R. 2673—365
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 oper-
ations of that Administration in Manila, Philippines.
NATIONAL CEMETERY ADMINISTRATION
For necessary expenses of the National Cemetery Administra-
tion for operations and maintenance, not otherwise provided for,
including uniforms or allowances therefor; cemeterial expenses as
authorized by law; purchase of one passenger motor vehicle for
use in cemeterial operations; and hire of passenger motor vehicles,
$144,203,000: Provided, That of the funds made available under
this heading, not to exceed $7,200,000 shall be available until
September 30, 2005.
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, $62,000,000, to remain available until September 30,
2005.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving any of the
facilities including parking projects 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 guaran-
tees provided 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 more than
the amount set forth in 38 U.S.C. 8104(a)(3)(A) or where funds
for a project were made available in a previous major project appro-
priation, $272,690,000, to remain available until expended, of which
$181,000,000 shall be for Capital Asset Realignment 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 plan-
ning activities, including needs assessments which may or may
not lead to capital investments, and other capital asset management
related activities, such as portfolio development 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 Congress
in the budgetary process: Provided further, That funds provided
in this appropriation for fiscal year 2004, for each approved project
(except those for CARES activities referenced above) shall be obli-
gated: (1) by the awarding of a construction documents contract
by September 30, 2004; and (2) by the awarding of a construction
H. R. 2673—366
contract by September 30, 2005: Provided further, That the Sec-
retary of Veterans Affairs shall promptly report in writing to the
Committees on Appropriations any approved major construction
project in which obligations are not incurred within the time limita-
tions established above.
CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving any of
the facilities including parking projects under the jurisdiction or
for the use of the Department of Veterans Affairs, including plan-
ning and assessments of needs which may lead to capital invest-
ments, architectural and engineering services, maintenance or guar-
antee period services costs associated with equipment guarantees
provided under the project, services of claims analysts, offsite utility
and storm drainage system 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 equal
to or less than the amount set forth in 38 U.S.C. 8104(a)(3)(A),
$252,144,000, to remain available until expended, along with unobli-
gated balances of previous ‘‘Construction, minor projects’’ appropria-
tions which are hereby made available for any project where the
estimated cost is equal to or less than the amount set forth in
38 U.S.C. 8104(a)(3)(A), of which $40,000,000 shall be for Capital
Asset Realignment for Enhanced Services (CARES) activities: Pro-
vided, That from amounts appropriated under this heading, addi-
tional amounts may be used for CARES activities upon notification
of and approval by the Committees on Appropriations: Provided
further, That funds in this account shall be available for: (1) repairs
to any of the nonmedical facilities under the jurisdiction or for
the use of the department 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.
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 remodel, 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 38 U.S.C.
2408, $32,000,000, to remain available until expended.
ADMINISTRATIVE PROVISIONS
(INCLUDING RESCISSION OF FUNDS)
SEC. 101. Any appropriation for fiscal year 2004 for ‘‘Compensa-
tion and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insur-
ance and indemnities’’ may be transferred to any other of the
mentioned appropriations.
H. R. 2673—367
SEC. 102. Appropriations available to the Department of Vet-
erans Affairs for fiscal year 2004 for salaries and expenses shall
be available for services authorized by 5 U.S.C. 3109 hire of pas-
senger 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 Department
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 Department
of Veterans Affairs shall be available for hospitalization or examina-
tion of any persons (except beneficiaries entitled under the laws
bestowing such benefits to veterans, and persons receiving such
treatment under 5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204),
unless reimbursement of cost is made to the ‘‘Medical services’’
account at such rates as may be fixed by the Secretary of Veterans
Affairs.
SEC. 105. Appropriations available to the Department of Vet-
erans Affairs for fiscal year 2004 for ‘‘Compensation and pensions’’,
‘‘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
and pensions’’.
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 Vet-
erans’ Special Life Insurance Fund (38 U.S.C. 1923), and the United
States Government Life Insurance Fund (38 U.S.C. 1955), reimburse
the ‘‘General operating expenses’’ account for the cost of administra-
tion 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 available 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 properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income insurance
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 established by section 403 of Public
Law 103–356 until October 1, 2004: Provided, That the Franchise
Fund, established by title I of Public Law 104–204 to finance
H. R. 2673—368
the operations of the Franchise Fund pilot program, shall continue
until October 1, 2004.
SEC. 109. Amounts deducted from enhanced-use lease proceeds
to reimburse an account for expenses incurred by that account
during a prior fiscal year for providing enhanced-use lease services,
may be obligated during the fiscal year in which the proceeds
are received.
SEC. 110. Funds available in any Department of Veterans
Affairs appropriation for fiscal year 2004 or funds for salaries
and other administrative expenses shall also be available to
reimburse the Office of Resolution Management and the Office
of Employment Discrimination Complaint Adjudication for all serv-
ices provided at rates which will recover actual costs but not exceed
$29,318,000 for the Office of Resolution Management and
$3,059,000 for the Office of Employment and Discrimination Com-
plaint 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 ‘‘Gen-
eral operating expenses’’ for use by the office that provided the
service.
SEC. 111. No appropriations in this Act for the Department
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 a report which the Commit-
tees 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 Department
of Veterans Affairs shall be available for hospitalization or treat-
ment of any person by reason of eligibility 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 informa-
tion 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 enter-
prise architecture of the Department of Veterans Affairs.
SEC. 114. None of the funds in this Act may be used to imple-
ment sections 2 and 5 of Public Law 107–287.
SEC. 115. Receipts that would otherwise be credited to the
Veterans Extended Care Revolving Fund, the Medical Facilities
Revolving Fund, the Special Therapeutic and Rehabilitation Fund,
the Nursing Home Revolving Fund, the Veterans Health Services
Improvement Fund, and the Parking Revolving Fund shall be depos-
ited into the Medical Care Collections Fund, and shall be trans-
ferred to ‘‘Medical services’’, to remain available until expended,
to carry out the purposes of ‘‘Medical services’’.
SEC. 116. (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 hos-
pital care. Notwithstanding section 3302(b) of title 31, United States
Code, amounts collected, 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’’ and the purposes of paying a contractor a percent of
H. R. 2673—369
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 allo-
cated, net of payments to the contractor, to that region.
SEC. 117. Notwithstanding any other provision of law, at the
discretion of the Secretary of Veterans Affairs, proceeds or revenues
derived from enhanced-use leasing activities (including disposal)
that are deposited into the Medical Care Collections Fund may
be transferred and merged with ‘‘Construction, major projects’’ and
‘‘Construction, minor projects’’ accounts and be used for construction
(including site acquisition and disposition), alterations and improve-
ments of any medical facility under the jurisdiction or for the
use of the Department of Veterans Affairs. Such sums as realized
are in addition to the amount provided for in ‘‘Construction, major
projects’’ and ‘‘Construction, minor projects’’.
SEC. 118. Amounts made available under ‘‘Medical services’’
are available—
(1) for furnishing recreational facilities, supplies, and equip-
ment; and
(2) for funeral expenses, burial expenses, and other
expenses incidental to funerals and burials for beneficiaries
receiving care in the department.
SEC. 119. That such sums as may be deposited to the Medical
Care Collections Fund pursuant to 38 U.S.C. 1729A may be trans-
ferred to ‘‘Medical services’’, to remain available until expended
for the purposes of this account.
SEC. 120. Amounts made available for fiscal year 2004 under
the ‘‘Medical services’’, ‘‘Medical administration’’, and ‘‘Medical
facilities’’ accounts may be transferred between the accounts 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 Appropria-
tions of the Senate and House of Representatives and a period
of 30 days has elapsed: Provided, That the limitation on transfers
is 20 percent in fiscal year 2004.
SEC. 121. The Department of Veterans Affairs shall implement
the Veterans Health Administration account structure described
under this Act by no later than 90 days after the date of enactment
of this Act and shall submit its fiscal year 2005 budget justifications
using the identical structure provided under this Act.
SEC. 122. That of the unobligated balances remaining from
prior 
year 
recoveries 
under 
the 
heading 
‘‘Medical 
care’’,
$270,000,000 are rescinded.
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, $19,371,481,762, and amounts that are