110TH CONGRESS 
1ST SESSION H. R. 2642 
AN ACT 
Making appropriations for military construction, the Depart-
ment of Veterans Affairs, and related agencies for the 
fiscal year ending September 30, 2008, and for other 
purposes. 
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 
military construction, the Department of Veterans Affairs, 
and related agencies for the fiscal year ending September 
30, 2008, and for other purposes, namely: 
TITLE I 
DEPARTMENT OF DEFENSE 
MILITARY CONSTRUCTION, ARMY 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military 
installations, facilities, and real property for the Army as 
currently authorized by law, including personnel in the 
Army Corps of Engineers and other personal services nec-
essary for the purposes of this appropriation, and for con-
struction and operation of facilities in support of the func-
tions of the Commander in Chief, $4,070,959,000, to re-
main available until September 30, 2012: Provided, That 
of this amount, not to exceed $481,468,000 shall be avail-
able for study, planning, design, architect and engineer 
services, and host nation support, as authorized by law, 
unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies 
the Committees on Appropriations of both Houses of Con-
gress of the determination and the reasons therefor.
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS 
(INCLUDING RESCISSION OF FUNDS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, naval in-
stallations, facilities, and real property for the Navy and 
Marine Corps as currently authorized by law, including 
personnel in the Naval Facilities Engineering Command 
and other personal services necessary for the purposes of 
this appropriation, $2,125,138,000, to remain available 
until September 30, 2012: Provided, That of this amount, 
not to exceed $110,167,000 shall be available for study, 
planning, design, and architect and engineer services, as 
authorized by law, unless the Secretary of Defense deter-
mines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations 
of both Houses of Congress of the determination and the 
reasons therefor: Provided further, That of the funds ap-
propriated for ‘‘Military Construction, Navy and Marine 
Corps’’ under Public Law 108–132, $5,862,000 are here-
by rescinded. 
MILITARY CONSTRUCTION, AIR FORCE 
(INCLUDING RESCISSION OF FUNDS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, military 
installations, facilities, and real property for the Air Force
as currently authorized by law, $927,428,000, to remain 
available until September 30, 2012: Provided, That of this 
amount, not to exceed $51,587,000 shall be available for 
study, planning, design, and architect and engineer serv-
ices, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for 
such purposes and notifies the Committees on Appropria-
tions of both Houses of Congress of the determination and 
the reasons therefor: Provided further, That of the funds 
appropriated for ‘‘Military Construction, Air Force’’ under 
Public Law 108–324, $5,319,000 are hereby rescinded. 
MILITARY CONSTRUCTION, DEFENSE-WIDE 
(INCLUDING TRANSFER AND RESCISSION OF FUNDS) 
For acquisition, construction, installation, and equip-
ment of temporary or permanent public works, installa-
tions, facilities, and real property for activities and agen-
cies of the Department of Defense (other than the military 
departments), 
as 
currently 
authorized 
by 
law, 
$1,806,928,000, to remain available until September 30, 
2012: Provided, That such amounts of this appropriation 
as may be determined by the Secretary of Defense may 
be transferred to such appropriations of the Department 
of Defense available for military construction or family 
housing as the Secretary may designate, to be merged with 
and to be available for the same purposes, and for the
same time period, as the appropriation or fund to which 
transferred: Provided further, That of the amount appro-
priated, not to exceed $154,728,000 shall be available for 
study, planning, design, and architect and engineer serv-
ices, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for 
such purposes and notifies the Committees on Appropria-
tions of both Houses of Congress of the determination and 
the reasons therefor: Provided further, That of the funds 
appropriated for ‘‘Military Construction, Defense-Wide’’ 
under Public Law 110–5, $7,592,000 are hereby re-
scinded. 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army National Guard, and contribu-
tions therefor, as authorized by chapter 1803 of title 10, 
United States Code, and Military Construction Authoriza-
tion Acts, $439,291,000, to remain available until Sep-
tember 30, 2012. 
MILITARY CONSTRUCTION, AIR NATIONAL GUARD 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United
States Code, and Military Construction Authorization 
Acts, $95,517,000, to remain available until September 
30, 2012. 
MILITARY CONSTRUCTION, ARMY RESERVE 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Army Reserve as authorized by chapter 
1803 of title 10, United States Code, and Military Con-
struction Authorization Acts, $154,684,000, to remain 
available until September 30, 2012. 
MILITARY CONSTRUCTION, NAVY RESERVE 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the reserve components of the Navy and 
Marine Corps as authorized by chapter 1803 of title 10, 
United States Code, and Military Construction Authoriza-
tion Acts, $69,150,000, to remain available until Sep-
tember 30, 2012. 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
(INCLUDING RESCISSION OF FUNDS) 
For construction, acquisition, expansion, rehabilita-
tion, and conversion of facilities for the training and ad-
ministration of the Air Force Reserve as authorized by 
chapter 1803 of title 10, United States Code, and Military 
Construction Authorization Acts, $39,628,000, to remain
available until September 30, 2012: Provided, That of the 
funds appropriated for ‘‘Military Construction, Air Force 
Reserve’’ under Public Law 109–114, $3,069,000 are 
hereby rescinded. 
NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
For the United States share of the cost of the North 
Atlantic Treaty Organization Security Investment Pro-
gram for the acquisition and construction of military fa-
cilities and installations (including international military 
headquarters) and for related expenses for the collective 
defense of the North Atlantic Treaty Area as authorized 
by section 2806 of title 10, United States Code, and Mili-
tary Construction Authorization Acts, $201,400,000, to 
remain available until expended. 
FAMILY HOUSING CONSTRUCTION, ARMY 
For expenses of family housing for the Army for con-
struction, including acquisition, replacement, addition, ex-
pansion, extension, and alteration, as authorized by law, 
$419,400,000, to remain available until September 30, 
2012. 
FAMILY HOUSING OPERATION AND MAINTENANCE, 
ARMY 
For expenses of family housing for the Army for op-
eration and maintenance, including debt payment, leasing,
minor construction, principal and interest charges, and in-
surance premiums, as authorized by law, $742,920,000. 
FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE 
CORPS 
For expenses of family housing for the Navy and Ma-
rine Corps for construction, including acquisition, replace-
ment, addition, expansion, extension, and alteration, as 
authorized by law, $298,329,000, to remain available until 
September 30, 2012. 
FAMILY HOUSING OPERATION AND MAINTENANCE, 
NAVY AND MARINE CORPS 
For expenses of family housing for the Navy and Ma-
rine Corps for operation and maintenance, including debt 
payment, leasing, minor construction, principal and inter-
est charges, and insurance premiums, as authorized by 
law, $371,404,000. 
FAMILY HOUSING CONSTRUCTION, AIR FORCE 
For expenses of family housing for the Air Force for 
construction, including acquisition, replacement, addition, 
expansion, extension, and alteration, as authorized by law, 
$362,747,000, to remain available until September 30, 
2012.
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR 
FORCE 
For expenses of family housing for the Air Force for 
operation and maintenance, including debt payment, leas-
ing, minor construction, principal and interest charges, 
and 
insurance 
premiums, 
as 
authorized 
by 
law, 
$688,335,000. 
FAMILY HOUSING OPERATION AND MAINTENANCE, 
DEFENSE-WIDE 
For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the 
military departments) for operation and maintenance, 
leasing, and minor construction, as authorized by law, 
$48,848,000. 
DEPARTMENT OF DEFENSE FAMILY HOUSING 
IMPROVEMENT FUND 
For the Department of Defense Family Housing Im-
provement Fund, $500,000, to remain available until ex-
pended, for family housing initiatives undertaken pursu-
ant to section 2883 of title 10, United States Code, pro-
viding alternative means of acquiring and improving mili-
tary family housing and supporting facilities.
CHEMICAL DEMILITARIZATION CONSTRUCTION, 
DEFENSE-WIDE 
(INCLUDING TRANSFER OF FUNDS) 
For expenses of construction, not otherwise provided 
for, necessary for the destruction of the United States 
stockpile of lethal chemical agents and munitions in ac-
cordance with the provisions of section 1412 of the De-
partment of Defense Authorization Act, 1986 (50 U.S.C. 
1521), and for the destruction of other chemical warfare 
materials that are not in the chemical weapon stockpile, 
as currently authorized by law, $86,176,000, to remain 
available until September 30, 2012: Provided, That such 
amounts of this appropriation as may be determined by 
the Secretary of Defense may be transferred to such ap-
propriations of the Department of Defense available for 
military construction as the Secretary may designate, to 
be merged with and to be available for the same purposes, 
and for the same time period, as the appropriation to 
which transferred. 
DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
1990 
For deposit into the Department of Defense Base 
Closure Account 1990, established by section 2906(a)(1) 
of the Defense Base Closure and Realignment Act of 1990
(10 U.S.C. 2687 note), $270,689,000, to remain available 
until expended. 
DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
2005 
For deposit into the Department of Defense Base 
Closure Account 2005, established by section 2906A(a)(1) 
of the Defense Base Closure and Realignment Act of 1990 
(10 U.S.C. 2687 note), $8,174,315,000, to remain avail-
able until expended. 
ADMINISTRATIVE PROVISIONS 
SEC. 101. None of the funds made available in this 
title shall be expended for payments under a cost-plus-a- 
fixed-fee contract for construction, where cost estimates 
exceed $25,000, to be performed within the United States, 
except Alaska, without the specific approval in writing of 
the Secretary of Defense setting forth the reasons there-
for. 
SEC. 102. Funds made available in this title for con-
struction shall be available for hire of passenger motor ve-
hicles. 
SEC. 103. Funds made available in this title for con-
struction may be used for advances to the Federal High-
way Administration, Department of Transportation, for 
the construction of access roads as authorized by section 
210 of title 23, United States Code, when projects author-
ized therein are certified as important to the national de-
fense by the Secretary of Defense. 
SEC. 104. None of the funds made available in this 
title may be used to begin construction of new bases in 
the United States for which specific appropriations have 
not been made. 
SEC. 105. None of the funds made available in this 
title shall be used for purchase of land or land easements 
in excess of 100 percent of the value as determined by 
the Army Corps of Engineers or the Naval Facilities Engi-
neering Command, except: (1) where there is a determina-
tion of value by a Federal court; (2) purchases negotiated 
by the Attorney General or the designee of the Attorney 
General; (3) where the estimated value is less than 
$25,000; or (4) as otherwise determined by the Secretary 
of Defense to be in the public interest. 
SEC. 106. None of the funds made available in this 
title shall be used to: (1) acquire land; (2) provide for site 
preparation; or (3) install utilities for any family housing, 
except housing for which funds have been made available 
in annual Acts making appropriations for military con-
struction. 
SEC. 107. None of the funds made available in this 
title for minor construction may be used to transfer or 
relocate any activity from one base or installation to an-
other, without prior notification to the Committees on Ap-
propriations of both Houses of Congress. 
SEC. 108. None of the funds made available in this 
title may be used for the procurement of steel for any con-
struction project or activity for which American steel pro-
ducers, fabricators, and manufacturers have been denied 
the opportunity to compete for such steel procurement. 
SEC. 109. None of the funds available to the Depart-
ment of Defense for military construction or family hous-
ing during the current fiscal year may be used to pay real 
property taxes in any foreign nation. 
SEC. 110. None of the funds made available in this 
title may be used to initiate a new installation overseas 
without prior notification to the Committees on Appro-
priations of both Houses of Congress. 
SEC. 111. None of the funds made available in this 
title may be obligated for architect and engineer contracts 
estimated by the Government to exceed $500,000 for 
projects to be accomplished in Japan, in any North Atlan-
tic Treaty Organization member country, or in countries 
bordering the Arabian Sea, unless such contracts are 
awarded to United States firms or United States firms 
in joint venture with host nation firms. 
SEC. 112. None of the funds made available in this 
title for military construction in the United States terri-
tories and possessions in the Pacific and on Kwajalein 
Atoll, or in countries bordering the Arabian Sea, may be 
used to award any contract estimated by the Government 
to exceed $1,000,000 to a foreign contractor: Provided, 
That this section shall not be applicable to contract 
awards for which the lowest responsive and responsible bid 
of a United States contractor exceeds the lowest respon-
sive and responsible bid of a foreign contractor by greater 
than 20 percent: Provided further, That this section shall 
not apply to contract awards for military construction on 
Kwajalein Atoll for which the lowest responsive and re-
sponsible bid is submitted by a Marshallese contractor. 
SEC. 113. The Secretary of Defense is to inform the 
appropriate committees of both Houses of Congress, in-
cluding the Committees on Appropriations, of the plans 
and scope of any proposed military exercise involving 
United States personnel 30 days prior to its occurring, 
if amounts expended for construction, either temporary or 
permanent, are anticipated to exceed $100,000. 
SEC. 114. Not more than 20 percent of the funds 
made available in this title which are limited for obligation 
during the current fiscal year shall be obligated during 
the last two months of the fiscal year. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 115. Funds appropriated to the Department of 
Defense for construction in prior years shall be available
for construction authorized for each such military depart-
ment by the authorizations enacted into law during the 
current session of Congress. 
SEC. 116. For military construction or family housing 
projects that are being completed with funds otherwise ex-
pired or lapsed for obligation, expired or lapsed funds may 
be used to pay the cost of associated supervision, inspec-
tion, overhead, engineering and design on those projects 
and on subsequent claims, if any. 
SEC. 117. Notwithstanding any other provision of 
law, any funds made available to a military department 
or defense agency for the construction of military projects 
may be obligated for a military construction project or 
contract, or for any portion of such a project or contract, 
at any time before the end of the fourth fiscal year after 
the fiscal year for which funds for such project were made 
available, if the funds obligated for such project: (1) are 
obligated from funds available for military construction 
projects; and (2) do not exceed the amount appropriated 
for such project, plus any amount by which the cost of 
such project is increased pursuant to law. 
SEC. 118. The Secretary of Defense is to provide the 
Committees on Appropriations of both Houses of Congress 
with an annual report by February 15, containing details 
of the specific actions proposed to be taken by the Depart-
ment of Defense during the current fiscal year to encour-
age other member nations of the North Atlantic Treaty 
Organization, Japan, Korea, and United States allies bor-
dering the Arabian Sea to assume a greater share of the 
common defense burden of such nations and the United 
States. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 119. In addition to any other transfer authority 
available to the Department of Defense, proceeds depos-
ited to the Department of Defense Base Closure Account 
established by section 207(a)(1) of the Defense Authoriza-
tion Amendments and Base Closure and Realignment Act 
(10 U.S.C. 2687 note) pursuant to section 207(a)(2)(C) 
of such Act, may be transferred to the account established 
by section 2906(a)(1) of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note), to be 
merged with, and to be available for the same purposes 
and the same time period as that account. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 120. Subject to 30 days prior notification to the 
Committees on Appropriations of both Houses of Con-
gress, such additional amounts as may be determined by 
the Secretary of Defense may be transferred to: (1) the 
Department of Defense Family Housing Improvement 
Fund from amounts appropriated for construction in 
‘‘Family Housing’’ accounts, to be merged with and to be
available for the same purposes and for the same period 
of time as amounts appropriated directly to the Fund; or 
(2) the Department of Defense Military Unaccompanied 
Housing Improvement Fund from amounts appropriated 
for construction of military unaccompanied housing in 
‘‘Military Construction’’ accounts, to be merged with and 
to be available for the same purposes and for the same 
period of time as amounts appropriated directly to the 
Fund: Provided, That appropriations made available to 
the Funds shall be available to cover the costs, as defined 
in section 502(5) of the Congressional Budget Act of 
1974, of direct loans or loan guarantees issued by the De-
partment of Defense pursuant to the provisions of sub-
chapter IV of chapter 169 of title 10, United States Code, 
pertaining to alternative means of acquiring and improv-
ing military family housing, military unaccompanied hous-
ing, and supporting facilities. 
SEC. 121. None of the funds made available in this 
title may be obligated for Partnership for Peace Programs 
in the New Independent States of the former Soviet 
Union. 
SEC. 122. (a) Not later than 60 days before issuing 
any solicitation for a contract with the private sector for 
military family housing the Secretary of the military de-
partment concerned shall submit to the Committees on
Appropriations of both Houses of Congress the notice de-
scribed in subsection (b). 
(b)(1) A notice referred to in subsection (a) is a no-
tice of any guarantee (including the making of mortgage 
or rental payments) proposed to be made by the Secretary 
to the private party under the contract involved in the 
event of— 
(A) the closure or realignment of the installa-
tion for which housing is provided under the con-
tract; 
(B) a reduction in force of units stationed at 
such installation; or 
(C) the extended deployment overseas of units 
stationed at such installation. 
(2) Each notice under this subsection shall specify 
the nature of the guarantee involved and assess the extent 
and likelihood, if any, of the liability of the Federal Gov-
ernment with respect to the guarantee. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 123. In addition to any other transfer authority 
available to the Department of Defense, amounts may be 
transferred from the accounts established by sections 
2906(a)(1) and 2906A(a)(1) of the Defense Base Closure 
and Realignment Act of 1990 (10 U.S.C. 2687 note), to 
the fund established by section 1013(d) of the Demonstra-
tion Cities and Metropolitan Development Act of 1966 (42
U.S.C. 3374) to pay for expenses associated with the 
Homeowners Assistance Program. Any amounts trans-
ferred shall be merged with and be available for the same 
purposes and for the same time period as the fund to 
which transferred. 
SEC. 124. Notwithstanding this or any other provi-
sion of law, funds made available in this title for operation 
and maintenance of family housing shall be the exclusive 
source of funds for repair and maintenance of all family 
housing units, including general or flag officer quarters: 
Provided, That not more than $35,000 per unit may be 
spent annually for the maintenance and repair of any gen-
eral or flag officer quarters without 30 days prior notifica-
tion to the Committees on Appropriations of both Houses 
of Congress, except that an after-the-fact notification shall 
be submitted if the limitation is exceeded solely due to 
costs associated with environmental remediation that 
could not be reasonably anticipated at the time of the 
budget submission: Provided further, That the Under Sec-
retary of Defense (Comptroller) is to report annually to 
the Committees on Appropriations of both Houses of Con-
gress all operation and maintenance expenditures for each 
individual general or flag officer quarters for the prior fis-
cal year.
SEC. 125. Whenever the Secretary of Defense or any 
other official of the Department of Defense is requested 
by the subcommittee on Military Construction, Veterans 
Affairs, and Related Agencies of the Committee on Appro-
priations of the House of Representatives or the sub-
committee on Military Construction, Veterans Affairs, and 
Related Agencies of the Committee on Appropriations of 
the Senate to respond to a question or inquiry submitted 
by the chairman or another member of that subcommittee 
pursuant to a subcommittee hearing or other activity, the 
Secretary (or other official) shall respond to the request, 
in writing, within 21 days of the date on which the request 
is transmitted to the Secretary (or other official). 
SEC. 126. Amounts contained in the Ford Island Im-
provement Account established by subsection (h) of sec-
tion 2814 of title 10, United States Code, are appro-
priated and shall be available until expended for the pur-
poses specified in subsection (i)(1) of such section or until 
transferred pursuant to subsection (i)(3) of such section. 
SEC. 127. None of the funds made available in this 
title, or in any Act making appropriations for military con-
struction which remain available for obligation, may be ob-
ligated or expended to carry out a military construction, 
land acquisition, or family housing project at or for a mili-
tary installation approved for closure, or at a military in-
stallation for the purposes of supporting a function that 
has been approved for realignment to another installation, 
in 2005 under the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101– 
510; 10 U.S.C. 2687 note), unless such a project at a mili-
tary installation approved for realignment will support a 
continuing mission or function at that installation or a 
new mission or function that is planned for that installa-
tion, or unless the Secretary of Defense certifies that the 
cost to the United States of carrying out such project 
would be less than the cost to the United States of cancel-
ling such project, or if the project is at an active compo-
nent base that shall be established as an enclave or in the 
case of projects having multi-agency use, that another 
Government agency has indicated it will assume ownership 
of the completed project. The Secretary of Defense may 
not transfer funds made available as a result of this limi-
tation from any military construction project, land acquisi-
tion, or family housing project to another account or use 
such funds for another purpose or project without the 
prior approval of the Committees on Appropriations of 
both Houses of Congress. This section shall not apply to 
military construction projects, land acquisition, or family 
housing projects for which the project is vital to the na-
tional security or the protection of health, safety, or envi-
ronmental quality: Provided, That the Secretary of De-
fense shall notify the congressional defense committees 
within seven days of a decision to carry out such a military 
construction project. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 128. During the 5-year period after appropria-
tions available in this Act to the Department of Defense 
for military construction and family housing operation and 
maintenance and construction have expired for obligation, 
upon a determination that such appropriations will not be 
necessary for the liquidation of obligations or for making 
authorized adjustments to such appropriations for obliga-
tions incurred during the period of availability of such ap-
propriations, unobligated balances of such appropriations 
may be transferred into the appropriation ‘‘Foreign Cur-
rency Fluctuations, Construction, Defense’’, to be merged 
with and to be available for the same time period and for 
the same purposes as the appropriation to which trans-
ferred. 
SEC. 129. None of the funds in this title shall be used 
for any activity related to the construction of an Outlying 
Landing Field in Washington County, North Carolina.
TITLE II 
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 ex-
aminations as authorized by section 107 and chapters 11, 
13, 18, 51, 53, 55, and 61 of title 38, United States Code; 
pension benefits to or on behalf of veterans as authorized 
by chapters 15, 51, 53, 55, and 61 of title 38, United 
States Code; and burial benefits, the Reinstated Entitle-
ment Program for Survivors, emergency and other offi-
cers’ retirement pay, adjusted-service credits and certifi-
cates, payment of premiums due on commercial life insur-
ance policies guaranteed under the provisions of title IV 
of the Servicemembers Civil Relief Act (50 U.S.C. App. 
541 et seq.) and for other benefits as authorized by sec-
tions 107, 1312, 1977, and 2106, and chapters 23, 51, 
53, 55, and 61 of title 38, United States Code, 
$41,236,322,000, to remain available until expended: Pro-
vided, That not to exceed $25,033,000 of the amount ap-
propriated under this heading shall be reimbursed to 
‘‘General operating expenses’’ and ‘‘Medical administra-
tion’’ for necessary expenses in implementing the provi-
sions of chapters 51, 53, and 55 of title 38, United States
Code, the funding source for which is specifically provided 
as the ‘‘Compensation and pensions’’ appropriation: Pro-
vided further, That such sums as may be earned on an 
actual qualifying patient basis, shall be reimbursed to 
‘‘Medical care collections 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 chap-
ters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61 of 
title 38, United States Code, $3,300,289,000, to remain 
available until expended: Provided, That expenses for re-
habilitation program services and assistance which the 
Secretary is authorized to provide under subsection (a) of 
section 3104 of title 38, United States Code, other than 
under paragraphs (1), (2), (5), and (11) of that sub-
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 title 38, United States Code, chapters 19 
and 21, $41,250,000, 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 subchapters I through III of chapter 37 of 
title 38, United States Code: Provided, That such costs, 
including the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of 
1974: Provided further, That during fiscal year 2008, 
within the resources available, not to exceed $500,000 in 
gross obligations for direct loans are authorized for spe-
cially adapted housing loans. 
In addition, for administrative expenses to carry out 
the direct and guaranteed loan programs, $154,562,000, 
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’. 
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $71,000, as authorized 
by chapter 31 of title 38, United States Code: Provided, 
That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974: Provided further, That funds 
made available under this heading are available to sub-
sidize gross obligations for the principal amount of direct 
loans not to exceed $3,287,000. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $311,000, 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 subchapter V of chapter 37 
of title 38, United States Code, $628,000, which may be 
transferred to and merged with the appropriation for 
‘‘General operating expenses’’: Provided, That no new 
loans in excess of $30,000,000 may be made in fiscal year 
2008. 
GUARANTEED TRANSITIONAL HOUSING LOANS FOR 
HOMELESS VETERANS PROGRAM ACCOUNT 
For the administrative expenses to carry out the 
guaranteed transitional housing loan program authorized 
by subchapter VI of chapter 37 of title 38, United States 
Code, not to exceed $750,000 of the amounts appropriated 
by this Act for ‘‘General operating expenses’’ and ‘‘Med-
ical administration’’ may be expended.
VETERANS HEALTH ADMINISTRATION 
MEDICAL SERVICES 
(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 and 
veterans described in 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, food services, and sala-
ries 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; 
$28,906,400,000 (increased by $125,000,000), plus reim-
bursements, of which not less than $2,900,000,000 shall 
be expended for specialty mental health care; not less than 
$130,000,000 shall be expended for the homeless grants 
and per diem program; not less than $428,873,754 shall 
be expended for the substance abuse program; and not less 
than $100,275,000 shall be expended for blind rehabilita-
tion services: Provided, That of the funds made available 
under this heading, not to exceed $1,100,000,000 shall be 
available until September 30, 2009: Provided further, 
That, notwithstanding any other provision of law, the Sec-
retary of Veterans Affairs shall establish a priority for the 
provision of medical treatment for veterans who have serv-
ice-connected disabilities, 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, notwithstanding any 
other provision of law, the Secretary of Veterans Affairs 
may authorize the dispensing of prescription drugs from 
Veterans Health Administration facilities to enrolled vet-
erans with privately written prescriptions based on re-
quirements established by the Secretary: Provided further, 
That the implementation of the program described in the 
previous proviso shall incur no additional cost to the De-
partment of Veterans Affairs: Provided further, That for 
the DOD–VA Health Care Sharing Incentive Fund, as au-
thorized by section 8111(d) of title 38, United States 
Code, a minimum of $15,000,000, to remain available 
until expended, for any purpose authorized by section 
8111 of title 38, United States Code. 
MEDICAL ADMINISTRATION 
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; and administrative and legal expenses of the Depart-
ment for collecting and recovering amounts owed the De-
partment as authorized under chapter 17 of title 38, 
United States Code, and the Federal Medical Care Recov-
ery Act (42 U.S.C. 2651 et seq.); $3,635,600,000 (in-
creased by $5,000,000) (reduced by $5,000,000) (reduced 
by $125,000,000), plus reimbursements, of which 
$250,000,000 shall be available until September 30, 2009. 
MEDICAL FACILITIES 
For necessary expenses for the maintenance and op-
eration of hospitals, nursing homes, and domiciliary facili-
ties, and other necessary facilities of 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 Depart-
ment, not otherwise provided for, either by contract or by 
the hire of temporary employees and purchase of mate-
rials; for leases of facilities; and for laundry services, 
$4,100,000,000, 
plus 
reimbursements, 
of 
which 
$250,000,000 shall be available until September 30, 2009: 
Provided, That $300,000,000 for non-recurring mainte-
nance provided under this heading shall be allocated in
a manner not subject to the Veterans Equitable Resource 
Allocation. 
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, 
$480,000,000, plus reimbursements, to remain available 
until September 30, 2009. 
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, $1,598,500,000: Provided, That expenses for 
services and assistance authorized under paragraphs (1), 
(2), (5), and (11) of section 3104(a) of title 38, United 
States Code, that the Secretary of Veterans Affairs deter-
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 
$1,324,957,000: Provided further, That of the funds made 
available under this heading, not to exceed $75,000,000 
shall be available for obligation until September 30, 2009: 
Provided further, That from the funds made available 
under this heading, the Veterans Benefits Administration 
may purchase (on a one-for-one replacement basis only) 
up to two passenger motor vehicles for use in operations 
of that Administration in Manila, Philippines: Provided 
further, That of the funds made available under this head-
ing, $2,000,000 is for the Advisory Committee on Women 
Veterans under section 542 of title 38, United States 
Code. 
INFORMATION TECHNOLOGY SYSTEMS 
For necessary expenses for information technology 
systems and telecommunications support, including devel-
opmental information systems and operational information 
systems and pay and associated cost for operations and 
maintenance associated staff; for the capital asset acquisi-
tion of information technology systems, including manage-
ment and related contractual costs of said acquisitions, in-
cluding contractual costs associated with operations au-
thorized by chapter 3109 of title 5, United States Code, 
$1,859,217,000, to remain available until September 30,