IB 
Union Calendar No. 460
107TH CONGRESS 
2D SESSION 
H. R. 5605
[Report No. 107–740] 
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 Sep-
tember 30, 2003, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 10, 2002
Mr. WALSH, from the Committee on Appropriations, reported the following 
bill; which was committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
A BILL 
Making appropriations for the Departments of Veterans Af-
fairs and Housing and Urban Development, and for sun-
dry independent agencies, boards, commissions, corpora-
tions, and offices for the fiscal year ending September 
30, 2003, 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 the
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Departments of Veteran Affairs and Housing and Urban 
Development, and for sundry independent agencies, 
boards, commissions, corporations, and offices for the fis-
cal year ending September 30, 2003, and for other pur-
poses, 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 ex-
aminations as authorized by law (38 U.S.C. 107, chapters 
11, 13, 18, 51, 53, 55, and 61); pension benefits to or 
on behalf of veterans as authorized by law (38 U.S.C. 
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur-
ial benefits, emergency and other officers’ retirement pay, 
adjusted-service credits and certificates, payment of pre-
miums due on commercial life insurance policies guaran-
teed under the provisions of article IV of the Soldiers’ and 
Sailors’ Civil Relief Act of 1940 (50 U.S.C. App. 540 et 
seq.) and for other benefits as authorized by law (38 
U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 
55, and 61; 50 U.S.C. App. 540–548; 43 Stat. 122, 123; 
45 Stat. 735; 76 Stat. 1198), $28,949,000,000 to remain 
available until expended: Provided, That not to exceed 
$17,138,000 of the amount appropriated under this head-
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ing shall be reimbursed to General operating expenses and 
Medical care for necessary expenses in implementing those 
provisions authorized in the Omnibus Budget Reconcili-
ation 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 pa-
tient basis, shall be reimbursed to the Medical facilities 
revolving fund to augment the funding of individual med-
ical 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 21, 30, 31, 34, 35, 36, 39, 51, 53, 
55, and 61), $2,264,808,000 to remain available until ex-
pended: Provided, That expenses for rehabilitation pro-
gram services and assistance which the Secretary is au-
thorized to provide under section 3104(a) of title 38, 
United States Code, other than under subsection (a)(1), 
(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-
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erans insurance, and veterans mortgage life insurance as 
authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72 
Stat. 487, $27,530,000 to remain available until ex-
pended. 
VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM 
ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct and guaranteed loans, such 
sums as may be necessary to carry out the program, as 
authorized by 38 U.S.C. chapter 37, as amended: Pro-
vided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974, as amended: Provided fur-
ther, That during fiscal year 2003, 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, $168,207,000, 
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, including the cost of modifying such loans, shall be
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as defined in section 502 of the Congressional Budget Act 
of 1974, as amended: Provided further, That these funds 
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $3,400. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $70,000, which may 
be transferred to and merged with the appropriation for 
General operating expenses. 
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For the cost of direct loans, $55,000, 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 $3,626,000. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $289,000, which may 
be transferred to and merged with the appropriation for 
General operating expenses.
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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, $558,000, which may be trans-
ferred to and merged with the appropriation for General 
operating expenses: Provided, That no new loans in excess 
of $5,000,000 may be made in fiscal year 2003. 
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 
$750,000 of the amounts appropriated by this Act for 
General operating expenses and Medical care may be ex-
pended. 
VETERANS HEALTH ADMINISTRATION 
MEDICAL CARE 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the maintenance and op-
eration 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 treat-
ment in facilities not under the jurisdiction of the depart-
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ment; and furnishing recreational facilities, supplies, and 
equipment; funeral, burial, and other expenses incidental 
thereto for beneficiaries receiving care in the department; 
administrative expenses in support of planning, design, 
project management, real property acquisition and disposi-
tion, construction and renovation of any facility under the 
jurisdiction or for the use of the department; oversight, 
engineering and architectural activities not charged to 
project cost; repairing, altering, improving or providing fa-
cilities in the several hospitals and homes under the juris-
diction of the department, not otherwise provided for, ei-
ther by contract or by the hire of temporary employees 
and purchase of materials; uniforms or allowances there-
for, 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, 
U.S.C. 
2651 
et 
seq., 
$23,889,304,000, plus reimbursements: Provided, That of 
the 
funds 
made 
available 
under 
this 
heading, 
$250,000,000 is for the equipment and land and struc-
tures object classifications only, which amount shall not 
become available for obligation until August 1, 2003, and 
shall remain available until September 30, 2004: Provided
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further, That of the funds made available under this head-
ing, not to exceed $900,000,000 shall be available until 
September 30, 2004: Provided further, That the Secretary 
of Veterans Affairs shall conduct by contract a program 
of recovery audits for the fee basis and other medical serv-
ices contracts with respect to payments for hospital care; 
and, notwithstanding 31 U.S.C. 3302(b), amounts col-
lected, by setoff or otherwise, as the result of such audits 
shall be available, without fiscal year limitation, for the 
purposes for which funds are appropriated under 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 respect to 
a designated health care region (as that term is defined 
in 38 U.S.C. 1729A(d)(2)) shall be allocated, net of pay-
ments to the contractor, to that region. 
MEDICAL CARE COLLECTIONS FUND 
(INCLUDING TRANSFER OF FUNDS) 
Amounts deposited during the current fiscal year in 
the Department of Veterans Affairs Medical Care Collec-
tions Fund under section 1729A of title 38, United States 
Code, shall be transferred to Medical care, to remain avail-
able until expended.
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MEDICAL AND PROSTHETIC RESEARCH 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses in carrying out programs of 
medical and prosthetic research and development as au-
thorized by 38 U.S.C. chapter 73, to remain available until 
September 30, 2004, $405,000,000, plus reimbursements: 
Provided, That of the funds available under this heading 
$5,000,000 shall be transferred to Medical care for re-
search oversight activities. 
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 activi-
ties, $74,716,000, plus reimbursements: Provided, That 
technical and consulting services offered by the Facilities 
Management Field Service, including project management 
and real property administration (including leases, site ac-
quisition and disposal activities directly supporting 
projects), shall be provided to Department of Veterans Af-
fairs components only on a reimbursable basis, and such 
amounts will remain available until September 30, 2003.
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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, $1,251,418,000: Provided, That expenses for 
services and assistance authorized under 38 U.S.C. 
3104(a)(1), (2), (5), and (11) that the Secretary deter-
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 
$992,100,000: Provided further, That of the funds made 
available under this heading, not to exceed $60,000,000 
shall be available for obligation until September 30, 2004: 
Provided further, That from the funds made available 
under this heading, the Veterans Benefits Administration
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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 2003, the Secretary of Veterans 
Affairs shall, from the National Service Life Insurance 
Fund (38 U.S.C. 1920), the Veterans’ Special Life Insur-
ance Fund (38 U.S.C. 1923), and the United States Gov-
ernment Life Insurance Fund (38 U.S.C. 1955), reim-
burse the ‘‘General operating expenses’’ account for the 
cost of administration of the insurance programs financed 
through those accounts: Provided, That reimbursement 
shall be made only from the surplus earnings accumulated 
in an insurance program in fiscal year 2003 that are avail-
able for dividends in that program after claims have been 
paid and actuarially determined reserves have been set 
aside: Provided further, That if the cost of administration 
of an insurance program exceeds the amount of surplus 
earnings accumulated in that program, reimbursement 
shall be made only to the extent of such surplus earnings: 
Provided further, That the Secretary shall determine the 
cost of administration for fiscal year 2003 which is prop-
erly allocable to the provision of each insurance program 
and to the provision of any total disability income insur-
ance included in such insurance program.