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and the Secretary of Defense may not transfer funds made 
available for such a military construction project, land ac-
quisition, 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. 
SEC. 129. Unless stated otherwise, all reports and noti-
fications required by this title shall be submitted to the Sub-
committee on Military Quality of Life and Veterans Affairs, 
and Related Agencies of the Committee on Appropriations 
of the House of Representatives and the Subcommittee on 
Military Construction and Veterans Affairs, and Related 
Agencies of the Committee on Appropriations of the Senate. 
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 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, the 
Reinstated Entitlement Program for Survivors, emergency 
and other officers’ retirement pay, adjusted-service credits 
and certificates, payment of premiums due on commercial
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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), 
$33,412,879,000, to remain available until expended: Pro-
vided, That not to exceed $23,491,000 of the amount appro-
priated under this heading shall be reimbursed to ‘‘General 
operating expenses’’ and ‘‘Medical administration’’ for nec-
essary expenses in implementing those provisions author-
ized 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 ‘‘Compensation and pensions’’ appropria-
tion: Provided 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 law 
(38 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, 
and 61), $3,214,246,000, to remain available until ex-
pended: Provided, That expenses for rehabilitation program
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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 title 38, United States Code, chapter 19; 70 
Stat. 887; 72 Stat. 487, $45,907,000, 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 title 38, United States Code, chapter 37: 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: Provided further, That during fiscal year 2006, 
within the resources available, not to exceed $500,000 in 
gross obligations for direct loans are authorized for spe-
cially adapted housing loans. 
For administrative expenses to carry out the direct 
and guaranteed loan programs, $153,575,000, which may
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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, $53,000, as authorized by 
title 38, United States Code, chapter 31: 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: Provided further, That funds made available 
under this heading are available to subsidize gross obliga-
tions for the principal amount of direct loans not to exceed 
$4,242,000. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $305,000, 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 title 38, United States Code, 
chapter 37, subchapter V, $580,000, which may be trans-
ferred 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 2006.
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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 
title 38, United States Code, chapter 37, subchapter VI, not 
to exceed $750,000 of the amounts appropriated by this Act 
for ‘‘General operating expenses’’ and ‘‘Medical administra-
tion’’ 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 vet-
erans described in paragraphs (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 De-
partment of Veterans Affairs and including medical sup-
plies and equipment and salaries and expenses of healthcare 
employees hired under title 38, United States Code, and aid 
to State homes as authorized by section 1741 of title 38, 
United States Code; $23,308,011,000, plus reimbursements, 
of which $1,977,000,000 are designated as an emergency re-
quirement pursuant to section 402 of House Concurrent 
Resolution 95 (109th Congress), the fiscal year 2006 budget 
resolution: Provided further, That of the emergency funds
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provided under this heading, the Department of Veterans 
Affairs shall submit for approval by the Committees on Ap-
propriations of both Houses of Congress, a financial plan 
outlining how the emergency funds will be obligated: Pro-
vided further, That the Department of Veterans Affairs shall 
include these emergency funds in their base request for the 
fiscal year 2007 budget submission: Provided further, That 
of the funds made available under this heading, not to ex-
ceed $1,500,000,000 shall be available until September 30, 
2007: Provided further, That notwithstanding any other 
provision of law, the Secretary of Veterans Affairs shall es-
tablish 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 vet-
erans in enrollment priority groups 1 through 6: Provided 
further, That notwithstanding any other provision of law, 
the Secretary of Veterans Affairs may authorize the dis-
pensing of prescription drugs from Veterans Health Admin-
istration facilities to enrolled veterans with privately writ-
ten prescriptions 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: Pro-
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vided further, That for the Department of Defense/Veterans 
Affairs Health Care Sharing Incentive Fund, as authorized 
by section 721 of Public Law 107–314, a minimum of 
$15,000,000, to remain available until expended, for any 
purpose authorized by title 38, United States Code, section 
8111. 
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 activities; 
uniforms or allowances therefore, as authorized by sections 
5901–5902 of title 5, United States Code; and administra-
tive and legal expenses of the Department of Veterans Af-
fairs for collecting and recovering amounts owed the depart-
ment 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.); $2,858,442,000, plus reimburse-
ments, of which $250,000,000 shall be available until Sep-
tember 30, 2007. 
INFORMATION TECHNOLOGY 
For necessary expenses, $1,456,821,000 shall be avail-
able for the Department of Veterans Affairs Information 
Technology program: Provided, That within 90 days of en-
actment of this Act, the Secretary of Veterans Affairs shall 
establish an office for Information Technology (IT) with the
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authority and responsibility for all IT projects: Provided 
further, That this office shall report directly to the Deputy 
Secretary of Veterans Affairs: Provided further, That this 
new organizational structure shall be subject to approval 
of the Committees on Appropriations in both Houses of 
Congress: Provided further, That within this amount, no 
more than $100,000,000 from all sources shall be available 
for the HealtheVet project for fiscal year 2006: Provided fur-
ther, That none of the funds made available for the 
HealtheVet project may be obligated until such time that 
the Department of Veterans Affairs creates a single position 
with the responsibility for and the authority to manage the 
entire project, including budgetary authority: Provided fur-
ther, That none of the funds made available for the 
HealtheVet project may be obligated until the Committees 
on Appropriations in both Houses of Congress approve a 
financial expenditure plan for the entire project. 
MEDICAL FACILITIES 
For necessary expenses for the maintenance and oper-
ation of hospitals, nursing homes, and domiciliary facilities 
and other necessary facilities for the Veterans Health Ad-
ministration; for administrative expenses in support of 
planning, design, project management, real property acqui-
sition and disposition, construction and renovation of any 
facility under the jurisdiction or for the use of the Depart-
ment of Veterans Affairs; for oversight, engineering and ar-
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chitectural activities not charged to project costs; for repair-
ing, altering, improving or providing facilities in the sev-
eral hospitals and homes under the jurisdiction of the De-
partment of Veterans Affairs, 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, $3,297,669,000, plus reimburse-
ments, of which $250,000,000 shall be available until Sep-
tember 30, 2007. 
MEDICAL AND PROSTHETIC RESEARCH 
For necessary expenses in carrying out programs of 
medical and prosthetic research and development as author-
ized by chapter 73 of title 38, United States Code to remain 
available until September 30, 2007, $412,000,000, plus re-
imbursements, of which, not less than $15,000,000 shall be 
used for Gulf War Illness research. 
DEPARTMENTAL ADMINISTRATION 
GENERAL OPERATING EXPENSES 
For necessary operating expenses of the Department of 
Veterans Affairs, not otherwise provided for, including ad-
ministrative expenses in support of department-wide cap-
ital planning, management and policy activities, uniforms 
or allowances therefore; 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-
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ment of Defense for the cost of overseas employee mail, 
$1,418,827,000: Provided, That expenses for services and as-
sistance authorized under title 38, United States Code, sec-
tions 3104(a)(1), (2), (5), and (11) that the Secretary of 
Veterans Affairs determines are necessary to enable entitled 
veterans: (1) to the maximum extent feasible, to become em-
ployable 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 Administration shall be funded at not less 
than $1,093,937,500: Provided further, That of the funds 
made available under this heading, not to exceed 
$71,000,000 shall be available for obligation until Sep-
tember 30, 2007. 
NATIONAL CEMETERY ADMINISTRATION 
For necessary expenses of the National Cemetery Ad-
ministration for operations and maintenance, not otherwise 
provided for, including uniforms or allowances therefore; 
cemeterial expenses as authorized by law; purchase of one 
passenger motor vehicle for use in cemeterial operations; 
and hire of passenger motor vehicles, $156,447,000: Pro-
vided, That of the funds made available under this heading, 
not to exceed $7,800,000 shall be available until September 
30, 2007.
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OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector Gen-
eral in carrying out the provisions of the Inspector General 
Act of 1978, $70,174,000, to remain available until Sep-
tember 30, 2007. 
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, archi-
tectural and engineering services, maintenance or guar-
antee period services costs associated with equipment guar-
antees provided under the project, services of claims ana-
lysts, 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 title 38, United 
States Code, section 8104(a)(3)(A) or where funds for a 
project were made available in a previous major project ap-
propriation, $607,100,000, to remain available until ex-
pended, of which $539,800,000 shall be for Capital Asset 
Realignment for Enhanced Services (CARES) activities; 
and of which $2,500,000 shall be to make reimbursements 
as provided in title 41, United States Code, section 612 for 
claims paid for contract disputes: Provided, That except for
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advance planning 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 in-
vestment strategy studies funded through the advance plan-
ning 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 invest-
ments, 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 
2006, for each approved project (except those for CARES 
activities referenced above) shall be obligated: (1) by the 
awarding of a construction documents contract by Sep-
tember 30, 2006; and (2) by the awarding of a construction 
contract by September 30, 2007: Provided further, That the 
Secretary of Veterans Affairs shall promptly report in writ-
ing to the Committees on Appropriations of both Houses 
of Congress any approved major construction project in 
which obligations are not incurred within the time limita-
tions established above: Provided further, That none of the 
funds in this or any other Act may be used to modify or 
alter the mission, services or infrastructure of the 18 facili-
ties on the Capital Asset Realignment for Enhanced Serv-
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ices (CARES) list requiring further study as specified by 
the Secretary of Veterans Affairs. 
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 planning and assessments of needs which 
may lead to capital investments, architectural and engi-
neering services, maintenance or guarantee 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 acquisi-
tion, 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 title 38, United States Code, section 8104(a)(3)(A), 
$208,937,000, to remain available until expended, along 
with unobligated balances of previous ‘‘Construction, minor 
projects’’ appropriations, of which $160,000,000 shall be for 
Capital Asset Realignment for Enhanced Services (CARES) 
activities: Provided, That from amounts appropriated 
under this heading, additional amounts may be used for 
CARES activities upon notification of and approval by the 
Committees on Appropriations of both Houses of Congress: 
Provided further, That funds in this account shall be avail-
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able for: (1) repairs to any of the nonmedical facilities 
under the jurisdiction or for the use of the Department of 
Veterans Affairs which are necessary because of loss or dam-
age 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 re-
model, modify or alter existing hospital, nursing home and 
domiciliary facilities in State homes; and for furnishing 
care to veterans as authorized by title 38, United States 
Code, sections 8131–8137, $104,322,000, to remain avail-
able 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 
title 38, United States Code, section 2408, $32,000,000, to 
remain available until expended. 
GENERAL PROVISIONS 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 201. Any appropriation for the Veterans Benefits 
Administration for fiscal year 2006 for ‘‘Compensation and 
pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insur-
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ance and indemnities’’ may be transferred as necessary to 
any other of the mentioned appropriations: Provided, That 
before a transfer may take place, the Secretary of Veterans 
Affairs shall request from the Committees on Appropria-
tions of both Houses of Congress the authority to make the 
transfer and an approval is issued, or absent a response, 
a period of 30 days has elapsed. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 202. Amounts made available for the Veterans 
Health Administration for fiscal year 2006 under the ‘‘Med-
ical services’’, ‘‘Medical administration’’, ‘‘Information 
technology’’, and ‘‘Medical facilities’’ accounts may be 
transferred between the mentioned accounts: Provided, That 
before a transfer may take place, the Secretary of Veterans 
Affairs shall request from the Committees on Appropria-
tions of both Houses of Congress the authority to make the 
transfer and an approval is issued, or absent a response, 
a period of 30 days has elapsed: Provided further, That no 
transfer may be made out of the ‘‘Medical and Prosthetic 
Research’’ account. 
SEC. 203. The Secretary of Veterans Affairs shall sub-
mit to the Committees on Appropriations in both Houses 
of Congress a quarterly report on the financial status of 
the Veterans Health Administration. This report shall con-
tain, at a minimum, both planned and actual expenditure
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rates, unobligated balances, and any potential financial 
shortfalls. 
SEC. 204. No project for which funds have been appro-
priated in the ‘‘Construction, major projects’’ account may 
be canceled or altered in scope by more than 10 percent 
in cost without submitting a request to the Committees on 
Appropriations of both Houses of Congress and an approval 
is issued, or absent a response, a period of 30 days has 
elapsed. 
SEC. 205. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available for hos-
pitalization or examination of any persons (except bene-
ficiaries entitled under the laws bestowing such benefits to 
veterans, and persons receiving such treatment under 5 
U.S.C., sections 7901–7904 or 42 U.S.C., sections 5141– 
5204), unless reimbursement of cost is made to the ‘‘Medical 
services’’ account at such rates as may be fixed by the Sec-
retary of Veterans Affairs. 
SEC. 206. Appropriations available to the Department 
of Veterans Affairs for fiscal year 2006 for ‘‘Compensation 
and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans in-
surance and indemnities’’ shall be available for payment 
of prior year accrued obligations required to be recorded 
by law against the corresponding prior year accounts with-
in the last quarter of fiscal year 2005.
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SEC. 207. Appropriations accounts available to the De-
partment of Veterans Affairs for fiscal year 2006 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 ac-
counts they shall be payable from ‘‘Compensation and pen-
sions’’. 
SEC. 208. Notwithstanding any other provision of law, 
during fiscal year 2006, the Secretary of Veterans Affairs 
shall, from the National Service Life Insurance Fund (38 
U.S.C. 1920), the Veterans’ 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 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 2006 that are available for dividends in that 
program after claims have been paid and actuarially deter-
mined reserves have been set aside: Provided further, That 
if the cost of administration of an insurance program ex-
ceeds 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 Sec-
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retary of Veterans Affairs shall determine the cost of admin-
istration for fiscal year 2006 which is properly allocable 
to the provision of each insurance program and to the pro-
vision of any total disability income insurance included in 
such insurance program. 
SEC. 209. Notwithstanding any other provision of law 
and hereafter, the Department of Veterans Affairs shall con-
tinue the Franchise Fund established by title I of Public 
Law 104–204. 
SEC. 210. Amounts deducted from enhanced-use lease 
proceeds to reimburse an account for expenses incurred by 
that account during a prior fiscal year for providing en-
hanced-use lease services, may be obligated during the fiscal 
year in which the proceeds are received. 
SEC. 211. Funds available in any Department of Vet-
erans Affairs appropriation for fiscal year 2006 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 services provided at rates which will 
recover actual costs but not exceed $29,758,000 for the Office 
of Resolution Management and $3,059,000 for the Office of 
Employment and Discrimination Complaint Adjudication: 
Provided, That payments may be made in advance for serv-
ices to be furnished based on estimated costs: Provided fur-