Order Code RL33427
CRS Report for Congress
Received through the CRS Web
Military Construction, Military Quality of Life and
Veterans Affairs:
FY2007 Appropriations
Updated May 17, 2006
Daniel H. Else
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Paul J. Graney
Analyst in Social Legislation
Domestic Social Policy Division
Sidath Viranga Panangala
Analyst in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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The annual consideration of appropriations bills (regular, continuing, and
supplemental) by Congress is part of a complex set of budget processes that also
encompasses the consideration of budget resolutions, revenue and debt-limit legislation,
other spending measures, and reconciliation bills. In addition, the operation of programs and
the spending of appropriated funds are subject to constraints established in authorizing
statutes. Congressional action on the budget for a fiscal year usually begins following the
submission of the President's budget at the beginning of each annual session of Congress.
Congressional practices governing the consideration of appropriations and other budgetary
measures are rooted in the Constitution, the standing rules of the House and Senate, and
statutes, such as the Congressional Budget and Impoundment Control Act of 1974.
This report is a guide to one of the regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House Military
Quality of Life and Veterans Affairs and Senate Military Construction and Veterans Affairs
Appropriations Subcommittees. It summarizes the status of the bill, its scope, major issues,
funding levels, and related congressional activity, and is updated as events warrant. The
report lists the key CRS staff relevant to the issues covered and related CRS products.
NOTE: A Web version of this document with active links is
available to congressional staff at
[http://beta.crs.gov/cli/cli.aspx?PRDS_CLI_ITEM_ID=2349].

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Military Construction, Military Quality of Life and
Veterans Affairs: FY2007 Appropriations
Summary
The structure of the Committees on Appropriations underwent significant
change with the beginning of the 109th Congress. As a result, jurisdictions over the
appropriations covered in this report, including military construction, military
housing allowances, military installation maintenance and operation, the Department
of Veterans Affairs, and other veteran-related agencies, rest in the House Committee
on Appropriations with the new Subcommittee on Military Quality of Life and
Veterans Affairs. In the Senate Committee on Appropriations, jurisdiction for
military construction, the Department of Veterans Affairs, and other veteran-related
agencies lies with the Subcommittee on Military Construction and Veterans Affairs,
while military housing allowances and military installation maintenance and
operation are the responsibility of the Subcommittee on Defense. Authorization
jurisdictions lie with the two Committees on the Armed Services and Committees on
Veterans Affairs.
Key issues in congressional action to date include:
! Military Construction: The changing structure of the Army, the
redeployment of troops from overseas garrisons to domestic bases,
and the current BRAC round have drawn committee attention during
the appropriation process. In addition, recapitalization of real
property infrastructure, NATO’s use of the infrastructure funding
provided by its member states, and the provision of additional
construction appropriations for unspecified use in contingency
operations related to the global war on terrorism are discussed in the
context of the approximately $58.9 billion defense appropriations
request.
! Veteran Benefits: Entitlement spending is rising as the number of
beneficiaries is increasing, education benefits are being augmented,
and annual cost of living adjustments are being granted. Benefits
such as disability compensation, pensions, and education are
mandatory payments and constitute more than half ($37.2 billion) of
the VA appropriation of approximately $71 billion for FY2006.
! Veteran Medical Care: The Administration has again requested
legislative changes to increase certain co-payments and other cost-
sharing fees for veterans in lower priority categories. On May 10 ,
2006, the House Appropriations Committee recommended $32.7
billion for veterans health programs for FY2007, an 11.4% increase
over the FY2006 enacted amount. The Committee did not
recommend any fee increases as requested by the President’s
FY2007 budget proposal.

---

Key Policy Staff for Military Construction, Military Quality of Life, and
Veterans Affairs Appropriations
Area of
Name
Telephone
E-Mail
Expertise
Acquisition
David E. Lockwood
7-7621
dlockwood@crs.loc.gov
Base Closure
Daniel H. Else
7-4996
delse@crs.loc.gov
David E. Lockwood
7-7621
dlockwood@crs.loc.gov
Defense Budget
Stephen Daggett
7-7642
sdaggett@crs.loc.gov
Amy Belasco
7-7627
abelasco@crs.loc.gov
Health Care;
Richard A. Best, Jr.
7-7607
rbest@crs.loc.gov
Military
Military
Daniel H. Else
7-4996
delse@crs.loc.gov
Construction
Military
Charles A. Henning
7-8866
chenning@crs.loc.gov
Personnel
David F. Burrelli
7-8033
dburrelli@crs.loc.gov
Military
Lawrence Kapp
7-7609
lkapp@crs.loc.gov
Personnel;
Reserves
Related Agencies
Daniel H. Else
7-4966
delse@crs.loc.gov
Veterans Affairs
Paul J. Graney
7-2290
pgraney@crs.loc.gov
Veterans Affairs;
Sidath Viranga
7-0623
spanangala@crs.loc.gov
Healthcare
Panangala

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Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Military Construction, Military Quality of Life and Veterans
Affairs Appropriations (H.R. 5385) . . . . . . . . . . . . . . . . . . . . . . . . 1
Defense Authorization (H.R. 5122, S. 2766) . . . . . . . . . . . . . . . . . . . . . 1
Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Realignment of Appropriations Subcommittee Jurisdictions . . . . . . . . . . . . 2
House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Subsequent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Title I: Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Military Base Realignments and Closures . . . . . . . . . . . . . . . . . . . . . . . 3
Rescissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Recapitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
NATO Security Investment Program (NSIP) . . . . . . . . . . . . . . . . . . . . . 5
Additional Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Title II: Department of Veterans Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Agency Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Key Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
VA Cash Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Title III: Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Independent Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
American Battle Monuments Commission . . . . . . . . . . . . . . . . . . . . . 11
U.S. Court of Appeals for Veterans Claims . . . . . . . . . . . . . . . . . . . . . 11
Cemeterial Expenses, Army . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Armed Forces Retirement Home (AFRH) . . . . . . . . . . . . . . . . . . . . . . 11
Appendix A. Consolidated Funding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Appendix B. Additional Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Selected Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
List of Tables
Table 1a. Status of FY2007 Military Construction, Military Quality of Life
and Veterans Affairs Appropriations (H.R. 2528) . . . . . . . . . . . . . . . . . . . . . 1
Table 1b. Status of FY2007 Defense Authorization (H.R. 5122, S. 2766) . . . . . . 2
Table 2. Additional Appropriations, FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

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Table 3. Department of Veterans Affairs Appropriations,
FY2000-FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 4. Appropriations: Department of Veterans Affairs,
FY2006-FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5a. DOD Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 5b. DOD Basic Allowance for Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table 5c. DOD Facilities Sustainment, Restoration, & Modernization . . . . . . . . 17
Table 5d. DOD Environmental Remediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 5e. DOD Health Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 5f. DOD Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 6. Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 7. Grand Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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Military Construction, Military Quality of Life
and Veterans Affairs:
FY2007 Appropriations
Most Recent Developments
Military Construction, Military Quality of Life and Veterans Affairs
Appropriations (H.R. 5385). The House Committee on Appropriations
Subcommittee on Military Quality of Life and Veterans Affairs and Related Agencies
reported its draft of the appropriations bill on May 15, 2006 (H.R. 5385, H.Rept. 109-
464), recommending a total Fiscal Year appropriation of $136.9 billion.
Defense Authorization (H.R. 5122, S. 2766). Representative Duncan
Hunter introduced (by request) the draft National Defense Authorization Act to the
House on April 6, 2006. After referral to the Committee on Armed Services, the bill
was reported (amended) to the House on May 5 (H.Rept. 109-452). The chamber
considered the bill on May 10-11, 2006, and after amending it, considered
recommitting it with instructions to Armed Services. Recommittal failed on a
recorded vote 202-220 (Roll no. 144). The House then passed the measure 396-31
(Roll no. 145). Senator John Warner reported the Senate Committee on Armed
Services bill (S. 2766) and its accompanying report (S.Rept. 109-254) to the Senate
on May 9, 2006. Additional views were filed simultaneously. The measure was
placed on the Senate Legislative Calendar under General Orders (Calendar No. 426).
Status of Legislation
Table 1a. Status of FY2007 Military Construction, Military Quality
of Life and Veterans Affairs Appropriations (H.R. 2528)
Conference Report
Committee Markup
House
House
Senate
Senate
Conf.
Approval
Public
Report
Passage
Report
Passage
Report
Law
House
Senate
House
Senate
H.Rept.
5/4/06
—
—
—
—
—
—
—
—
109-464

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CRS-2
Table 1b. Status of FY2007 Defense Authorization
(H.R. 5122, S. 2766)
Conference Report
Committee Markup
House
House
Senate
Senate
Conf.
Approval
Public
Report
Passage
Report
Passage
Report
Law
House
Senate
House
Senate
H.Rept.
S.Rept.
5/18/05
—
—
—
—
—
—
—
109-452
109-254
Summary and Key Issues
Realignment of Appropriations Subcommittee Jurisdictions
House. During the first session of the 109th Congress, the Committee on
Appropriations reorganized its subcommittee structure and realigned subcommittee
jurisdictions. In the resulting redistribution of subcommittee responsibilities, the
Subcommittees on Veterans Affairs, Housing and Urban Development (VA-HUD)
and Military Construction were eliminated and some of their responsibilities were
assigned to a new Subcommittee on Military Quality of Life and Veterans Affairs and
Related Agencies. The new subcommittee was given jurisdiction for appropriations
to the following accounts:
! Department of Defense (DOD): Military Construction, Army, Navy
(including Marine Corps), Air Force, Defense-wide, and Guard and
Reserve Forces, Facilities Sustainment, Restoration and
Modernization, Army, Navy (including Marine Corps), Air Force,
and Guard and Reserve Forces, Chemical Demilitarization
Construction, Defense-wide Military Family Housing Construction
and Operation and Maintenance, Army, Navy (including Marine
Corps), Air Force, and Defense-wide Family Housing Improvement
Fund, Military Unaccompanied Housing Improvement Fund,
Homeowners Assistance Fund, Basic Allowance for Housing, Army,
Navy (including Marine Corps), Air Force, and Guard and Reserve
Forces, Environmental Restoration Accounts, Base Realignment and
Closure Account, NATO Security Investment Program, Defense
Health Program Account.
! Department of Veterans Affairs
! Related Agencies: American Battle Monuments Commission, Armed
Forces Retirement Home, Cemeterial Expenses, Army (DOD), Court
of Appeals for Veterans Claims.
Senate. At the same time, the Senate Committee on Appropriations dissolved
its Subcommittee on Veterans Affairs, Housing and Urban Development was
dissolved and its responsibilities for Veterans Affairs, the American Battle
Monuments Commission, Cemeterial Expenses, Army (Arlington National
Cemetery), the Court of Appeals for Veterans Claims, and the Selective Service

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CRS-3
Commission were transferred to the former Subcommittee on Military Construction,
which retained its responsibility for military construction appropriations. The
reconstituted organization was renamed the Subcommittee on Military Construction
and Veterans Affairs.
Subsequent Agreement. After negotiating the differing jurisdictions
between the two subcommittees, House and Senate appropriators agreed that
legislation considered by the would include appropriations to all of the accounts
within the jurisdiction of the former Military Construction subcommittees and those
related to the Department of Veterans Affairs and the related agencies. When
considering appropriations for odd-numbered fiscal years (e.g., 2007, 2009, etc.), the
legislation add the appropriations accounts specific to the jurisdiction of the House
subcommittee.1
Title I: Department of Defense
Military Construction
Military Base Realignments and Closures.2 Actions to implement
recommendations to realign or close a number of defense installations throughout the
United States began during FY2006. Originally drafted by the Department of Defense
and modified by the independent nine-member BRAC Commission (officially known
as the Defense Base Closure and Realignment Commission of 2005), the list of
actions will close 25 major military bases, realign another 24, and carry out some 765
other actions before the end of September 2011, according to the Department of
Defense.
The 2005 round marked the fifth time that a commission took part in
determining which military installations are to be closed or significantly reduced in
scope. The first, the Base Realignment and Closure Commission, was chartered by,
and reported its recommendations to, the Secretary of Defense. All subsequent
commissions were created by Congress in the Defense Base Closure and
Realignment Act of 1990, as amended. Three subsequent rounds (in 1991, 1993, and
1995) were authorized by Congress in the original legislation. The 2005 round was
authorized in an amendment to the original law incorporated into the National
Defense Authorization Act for Fiscal Year 2002.
1 See Tim Starks, “Bill Targets Veterans’ Funding Shortfall,” CQ Weekly (November 18,
2005), p. 3136.
2 CRS products that discuss the BRAC process in greater detail include CRS Report
RL32216, Military Base Closures, Implementing the 2005 Round by David E. Lockwood,
CRS Report RS22291, Military Base Closures: Highlights of the 2005 BRAC Commission
Report and Proposed Legislation by Daniel H. Else and David E. Lockwood, and CRS
Report RL33092, Base Realignment and Closure (BRAC): Property Transfer and Disposal
by Aaron M. Flynn. Current BRAC-related products can most easily be found through the
CRS web page under Current Legislative Issues: Defense and then Military Base Closures.

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CRS-4
Several BRAC-related issues arose during the formulation and consideration of
the list of recommendations, as indicated below.
Requested Funding for BRAC Accounts. The appropriation request for
FY2007 is split between two BRAC Accounts, one labeled the 1990 account and the
other the 2005 account.
The BRAC 1990 account is the consolidation of what had been four separate
accounts, one for each of the previous BRAC rounds. Because all of the
recommended BRAC actions from those rounds were completed in 2001, the BRAC
1990 account is devoted to funding the continuing environmental remediation
required on the federal property deemed excess during those rounds but not yet
conveyed to non-DOD ownership. There was $246 million appropriated to the 1990
account for FY2005, and $252.2 million was enacted for FY2006. For FY2007, the
President requested $191.2 million, while the House Committee on Appropriations
recommended $216.2 million.
The BRAC 2005 account funds the many realignment and closure actions, to
include the movement of units and equipment, the construction of new infrastructure
at receiving installations, and the realignment and closure of property deemed excess
in the current BRAC round. In addition, the Department of Defense has incorporated
into the BRAC 2005 account funding for construction to accommodate units being
redeployed to the United States and its territories from garrisons located overseas —
primarily in Germany and the Republic of Korea.
BRAC appropriations in previous rounds rose rapidly during the first two or
three years in order to initiate needed military construction. Appropriations then
stabilized and fell off as units and functions were moved to new locations and surplus
properties were relinquished. Continuing appropriations, as mentioned above, have
been dedicated primarily to environmental remediation of remaining problematic real
property for which title remains with DOD.
Congress appropriated $1.59 billion to the BRAC 2005 account for FY2006.
The President requested $5.6 billion for FY2007. If DOD follows its historic pattern,
this request is likely to be repeated for FY2008 before falling off to perhaps half that
for FY2009. The House Committee on Appropriations recommended a $5.3 billion
appropriation for FY2007.
Impact of Military Redeployments on Local Schools. Unit and function
movements associated with BRAC and the associated Integrated Global Presence and
Basing Strategy (IGPBS)3 will significantly increase the populations in and around
some military installations. For example, the 2005 BRAC Commission estimated that
Aberdeen Proving Ground and Ft. Meade in Maryland are expected to gain more than
1,800 and 10,000 military, civilian, and contractor positions, respectively. Ft.
Belvoir, Virginia, is calculated to gain more than 21,000 direct and indirect positions.
3 BRAC deals with the closure and realignment of defense installations within the United
States and its territories, while the IGPBS addresses all other U.S. military installations
worldwide.

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CRS-5
Local jurisdictions in the vicinity of gaining installations have expressed concern that
they may have difficulty creating the infrastructure needed to support such large-scale
changes in population.
One such issue concerns the provision of primary and secondary education for
the children of families being moved into the various areas. Some school boards have
expressed concern that the process for providing federal impact aid, which subsidizes
the maintenance and operation of local education institutions adversely affected by
federal government activity such as maintaining a military installation, may not be
received in time to construct and staff new school facilities before these new students
arrive. A detailed discussion of impact aid in the BRAC context can be found in CRS
Report RL33137, Military Base Closures and the Impact Aid Program for Education,
by Rebecca R. Skinner.
Rescissions. The House Committee on Appropriations recommended that
$194.3 million in previous-year military construction appropriations be rescinded due
to favorable contract bids, the cancellation or delay of some construction projects.
Recapitalization. In 2001, the Department of Defense estimated its existing
recapitalization rate at 192 years.4 This meant that, on average, the Department was
funding military construction at a rate that would replace its real property inventory
every 192 years. At that time, the Department established a recapitalization goal of
67 years. In testimony to Congress on February 15, 2006, the Hon. Philip Gone, the
Deputy Undersecretary of Defense for Installations and Environment, stated that the
current budget request would support a recapitalization cycle of 72 years, indicating
an acceleration of construction that is approaching, but has not yet reached, its goal.
NATO Security Investment Program (NSIP). The NSIP constitutes the
United States contribution to the common North American Treaty Organization
(NATO) infrastructure fund. Traditionally, these common alliance funds have
constructed facilities such as petroleum pipelines, roads, communications networks,
and the like that are employed in the defense of the NATO alliance.
Since the end of the Cold War, the military focus of the North Atlantic Alliance
has shifted from the defense member states in Western Europe to the potential for
“out-of-area” operations in areas such as the Balkans and Central Asia. In its report
to the House (H.Rept. 109-464), the Committee on Appropriations recommended
$201.0 million for the NSIP, noting that the “Committee expects projects will be
prioritized with the highest priority given to NATO on-going missions such as those
in Iraq and Afghanistan.”5
4 Recapitalization is the process of replacing old structures as they reach the end of their
expected service life (assuming that facility sustainment, or routine maintenance, is fully
funded). If maintenance is inadequate, the service life of any structure is correspondingly
shortened. The Department of Defense often quotes a shorthand Department-wide
“recapitalization rate” that is the funded service life (e.g., 192 years) and an “expected
service life” that is a replacement goal (e.g., 67 years).
5 House, Military Quality of Life and Veterans Affairs, and Related Agencies Appropriations
(continued...)

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CRS-6
The President requested $221.0 million for the NSIP for FY2007, while the
House Committee on Appropriations recommended $201.0 million.
Additional Appropriations. In Title IV of its bill, the House Committee on
Appropriations recommended an additional $507 million for military construction
accounts for “projects supporting contingency operations related to the global war on
terrorism” (see Table 2). These funds are intended for “projects related to urgent
transformation efforts, as well as projects directly supporting operations in the theater
and those that will enhance training in urban operations and close quarters combat.”6
Table 2. Additional Appropriations, FY2007
Military Construction
New Budget Authority
Account
($ millions)
Army
379,300
Navy and Marine Corps
26,037
Air Force
49,923
Defense-Wide
44,500
Army National Guard
5,530
Army Reserve
1,713
Total
507,003
Source: H.Rept. 109-464, p. 69.
Title II: Department of Veterans Affairs
Table 3. Department of Veterans Affairs Appropriations,
FY2000-FY2006
(budget authority in billions)
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
VA
$46.04
$47.95
$52.38 $58.10 $61.84
$65.84
$70.87
Source: Amounts shown are from reports of the Appropriations Committees accompanying the
appropriations bills for the following years.
5 (...continued)
Bill, 2007, 109th Cong., 2nd Sess., 2006, H.Rept. 109-464, p. 27.
6 House, Military Quality of Life, p. 69.

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CRS-7
Agency Mission
Federal policy toward veterans recognizes the importance of their service to the
nation and the effect that service may have on their subsequent civilian lives. The
Department of Veterans Affairs (VA) administers, directly or in conjunction with
other federal agencies, programs that provide benefits and other services to veterans
and their dependents and beneficiaries. The three primary organizations in VA that
work together to accomplish this mission are the Veterans Benefits Administration
(VBA), the Veterans Health Administration (VHA), and the National Cemetery
Administration (NCA). The benefits provided include compensation for disabilities
sustained or worsened as a result of active duty military service; pensions for totally
disabled, poor war veterans; cash payments for certain categories of dependents
and/or survivors; education, training, rehabilitation, and job placement services to
assist veterans upon their return to civilian life; loan guarantees to help them obtain
homes; free medical care for conditions sustained during military service as well as
medical care for other conditions, much of which is provided free to low income
veterans; life insurance to enhance financial security for their dependents; and burial
assistance, flags, grave-sites, and headstones when they die.
Table 4. Appropriations: Department of Veterans Affairs,
FY2006-FY2007
(budget authority in billions)
FY2007
FY2006
FY2007
House
FY2007
FY2007
Program
enacted
request
Approp
Senate
Conf
Comm.
Total: (VA)
$70.872
$77.909
$77.909
Compens., pension, burial
$33.898
$38.007
$38.007
Readjustment benefits
3.309
3.262
3.262
Insurance/indemnities
0.046
0.050
0.050
Housing prog. (net, indef.)
-0.047a
0.097
0.097
Subtotal: Mandatory
$37.206
$41.416
$41.416
Medical services
21.322
25.512
25.412
Emerg.
funding
1.225
—
—

Emerg. funding
0.225
—
—
(P.L. 109-148)
Medical administration
2.858
3.177
3.277
Medical facilities
3.298
3.569
3.594
Med. & prosthetic research
0.412
0.399
0.412
Med. care collection fundb
(offsetting
receipts)
-2.170
-2.329
-2.329
(approps.
indefinite)
2.170
2.329
2.329
Subtotal: Med. programs &
29.341
32.657
32.695
admin. (appropriations)

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CRS-8
FY2007
FY2006
FY2007
House
FY2007
FY2007
Program
enacted
request
Approp
Senate
Conf
Comm.
Total available to
31.511
34.986
35.024
VHA
Gen. admin. exp. (total)
1.411
1.481
1.481

Emerg. funding
0.025
—
—
(P.L. 109-148)
Information technology
1.214
1.257
1.302
Nat’l Cemetery Admin.
0.156
0.161
0.161

Emerg. funding
c
—
—
(P.L. 109-148)
Inspector General
0.070
0.069
0.069
Construction
0.806
0.597
0.494

Emerg. funding
0.369
—
—
(P.L. 109-148)
Grants; state facilities
0.085
0.085
0.105
State veteran cemeteries
0.032
0.032
0.032
Housing & other loan
0.155
0.154
0.154
admin.
Subtotal: Discretionary
$33.666
$36.493
$36.493
Source: Table prepared by the Congressional Research Service based on H.Rept. 109-464.
a. This negative budget authority is the result of combining the loan subsidy payments estimated to
be needed during FY2006 with the offsetting receipts expected to be collected.
b. Medical Care Collections Fund (MCCF) receipts are restored to the VHA as an indefinite budget
authority equal to the revenue collected.
c. $200,000.
Key Budget Issues
The budget submitted by the Administration in February 2006 calls for funding
VA at a level of $77.9 billion dollars for FY2007 (see Table 4). This would be an
increase of $7.0 billion, or 9.9%, over the FY2006 total including the supplemental
appropriations. Another supplemental appropriations bill (H.R. 4939) that would add
FY2006 funds for construction of a replacement for the VA Medical Center in New
Orleans is currently in conference.7
7 For further information on this bill, see CRS Report RL33298, FY2006 Supplemental
Appropriations: Iraq and Other International Activities; Additional Katrina Hurricane
Relief, coordinated by Paul M. Irwin and Larry Nowels.

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CRS-9
Although the Senate passed its version of the budget resolution for FY2007
(S.Con.Res. 83) on March 16, 2006, the House has not yet passed H.Con.Res 376
which was reported (H.Rept. 109-402) by the House Budget Committee on March
31, 2006. The overall budget function 700 for veterans benefits and services
addressed in the budget resolution is broader than just the VA and includes money
that will be appropriated in other bills for other departments as well. The House-
reported version recommends $74.6 billion in new budget authority for veterans
benefits and services. The Senate version was amended on the floor to increase the
total to $74.8 billion for the veterans budget function.
The House Appropriations Committee approved its appropriations bill
including about the same amount as requested for VA on May 10, 2006. The bill
would provide a total of $77.9 billion for the VA budget with $36.5 billion of the
bill’s $94.7 billion 302(b) allocation going for VA discretionary spending. The
Senate Appropriations Committee has not yet announced its proposed subcommittee
allocations for FY2007.
VA Cash Benefits. Eligibility requirements and benefit levels for VA cash
benefits are specified in law. Since spending for these programs is mandatory as
noted above, the amounts requested in the budget are based on projected caseloads.
While the total number of veterans is declining, the number receiving benefits is
increasing. VA entitlement spending (outlays), mostly service-connected
compensation, pensions, and readjustment (primarily education) payments, rose from
$31.2 billion in FY2004 to $39.7 billion in FY2005 and is projected at $39.2 billion
in FY2007. In addition to the increased number of beneficiaries, much of the
projected increases in recent years result from cost-of-living adjustments for
compensation benefits and from liberalizations to the Montgomery GI Bill, the
primary education program.
Out of concern for the disparity in the amounts of disability compensation
awarded to veterans living in different regions of the country, the Senate passed an
amendment on September 22, 2005, to instruct the VA to conduct a veterans
disability compensation information campaign in states with an average annual
disability compensation payment of less than $7,300. The conference report included
this provision in §228.8 In response to this provision, VA is conducting outreach
efforts in Illinois, Indiana, Michigan, Ohio, New Jersey, and Connecticut.
Medical Care
The Veterans Health Administration (VHA) is a direct service provider of
primary care, specialized care, and related medical and social support services to
veterans through an integrated health care system. In FY2005, VHA operated 156
hospitals, 135 nursing homes, 43 residential rehabilitation treatment centers, and 711
8 House, Making Appropriations for Military Quality of Life Functions of the Department
of Defense, Military Construction, the Department of Veterans Affairs, and Related
Agencies for the Fiscal Year ending September 30, 2006, and for Other Purposes, 109th
Cong., 2nd Sess., 2006, H.Rept. 109-305, p. 22.

---

CRS-10
community-based outpatient clinics (CBOCs).9 VHA also pays for care provided to
veterans by independent providers and practitioners on a fee basis under certain
circumstances. Inpatient and outpatient care is provided in the private sector to
eligible dependents of veterans under the Civilian Health and Medical Program of the
Department of Veterans Affairs (CHAMPVA). In addition, VHA provides grants for
construction of state-owned nursing homes and domiciliary facilities, and
collaborates with the Department of Defense (DOD) in sharing health care resources
and services.
The President’s FY2007 budget proposal to Congress requested $32.7 billion
for VHA, a 11.3% increase over the FY2006 enacted amount of $29.3 billion, and
a 10% increase over the FY2005 enacted amount of $29.7 billion. As in previous
budget proposals, the President’s FY2007 budget request also includes a set of
legislative proposals. The Administration is requesting authorization from Congress
to assess an annual enrollment fee of $250 for all Priority 7 and 8 veterans, increase
the veterans’ share of pharmaceutical co-payments from $8 to $15 (for each 30-day
prescription) for all enrolled veterans in Priority Groups 7 and 8, and bill those
veterans receiving treatment for nonservice-connected conditions for the entire co-
payment amount.
On May 10, 2006, the House Appropriations Committee recommended $32.7
billion for VHA for FY2007, a 11.4% increase over the FY2006 enacted amount of
$29.3 billion, and about the same as the President’s request. This amount includes
$25.4 billion for medical services, $100 million less than the President’s request and
$2.6 billion (11.6%) over the FY2006 enacted amount of $22.8 billion. The
Committee recommendation also includes $3.3 billion for medical administration,
$100 million above the Administration’s request of $3.2 billion; $3.6 billion for
medical facilities; and $412 million for medical and prosthetic research, a 3.2%
increase over the President’s request of $399 million. The Committee did not
recommend any fee increases as requested by the Administration’s budget proposal
for VHA for FY2007.
For a more detailed discussion of the VA medical care budget, see CRS Report
RL33409, Veterans’ Medical Care: FY2007 Appropriations, by Sidath Viranga
Panangala.
9 Data on the number of hospitals and nursing homes includes facilities damaged by
Hurricane Katrina. Data on the number of CBOCs differ from source to source. Some count
clinics located at VA hospitals while others count only freestanding CBOCs. The number
represented in this report excludes clinics located in VA hospitals. The data are current as
of Dec. 1, 2005.

---

CRS-11
Title III: Related Agencies
Independent Commissions
American Battle Monuments Commission. The American Battle
Monuments Commission (ABMC) is responsible for the maintenance and
construction of U.S. monuments and memorials commemorating the achievements
in battle of U.S. armed forces since the nation’s entry into World War I; the erection
of monuments and markers by U.S. citizens and organizations in foreign countries;
and the design, construction, and maintenance of permanent military cemetery
memorials in foreign countries. The Commission maintains 24 military memorial
cemeteries and 25 monuments, memorials, and markers in 15 countries, including
three memorials on U.S. soil.
The ABMC was responsible for the planning and construction of the World War
II Memorial on the Mall in Washington, DC. Though the National Park Service
assumed responsibility for the operation and maintenance of the Memorial at its
dedication, the ABMC retains a fiduciary responsibility for the remaining public
contributions given for its construction. The ABMC has undertaken the construction
of an Interpretive Center at the Normandy American Cemetery, Normandy, France,
to commemorate the World War II Allied invasion of France on June 6, 1944, and
the subsequent land battles in Europe. The Commission is scheduled to open the
facility on June 6, 2007.
U.S. Court of Appeals for Veterans Claims. The U.S. Court of Appeals
for Veterans Claims was established by the Veterans’ Judicial Review Act of 1988.
The Court is an independent judicial tribunal with exclusive jurisdiction to review
decisions of the Board of Veterans’ Appeals. It has the authority to decide all relevant
questions of law; interpret constitutional, statutory, and regulatory provisions; and
determine the meaning or applicability of the terms of an action by the Department
of Veterans Affairs (VA). It is authorized to compel action by the VA. It is
authorized to hold unconstitutional or otherwise unlawful and set aside decisions,
findings, conclusions, rules and regulations issued or adopted by the Department of
Veterans Affairs or the Board of Veterans’ Appeals.
The Court currently occupies leased facilities near Judiciary Square in the
District of Columbia and is searching for a permanent location. The Court’s major
operational initiative is its transition to an electronic case filing system, which is also
funded through this appropriation.
Cemeterial Expenses, Army. The Secretary of the Army is responsible for
the administration, operation and maintenance of Arlington National Cemetery and
the Soldiers’ and Airmen’s Home National Cemetery. In addition to its principal
function as a national cemetery, Arlington is the site of approximately 3,100 non-
funeral ceremonies each year and has approximately 4,000,000 visitors annually.
Armed Forces Retirement Home (AFRH). The Armed Forces Retirement
Home account provides funds to operate and maintain the Armed Forces Retirement
Home in Washington, DC (also known as the United States Soldiers’ and Airmen’s

---

CRS-12
Home), and the Armed Forces Retirement Home in Gulfport, Mississippi (originally
located in Philadelphia, PA, and known as the United States Naval Home). These
two facilities provide long-term housing and medical care for approximately 1,600
needy veterans. The appropriation is not drawn from the general treasury, but rather
comes from a special trust fund that is maintained through gifts, bequests, and a
$0.50 per month assessment on the pay of active duty enlisted military personnel and
warrant officers.
The Gulfport campus, encompassing a 19-story living accommodation and
medical facility tower, was severely damaged by Hurricane Katrina at the end of
August, 2005, and is not currently in use. Four hundred fourteen of the 583 residents
then occupying the facility were transferred to the Washington, DC, location
immediately after the storm.
Congress required the AFRH to consider alternative paths to future. The Home
forwarded its special report with Congress on February 28, 2006, proposing five
options for future planning:
Option 1: Renewal of the Gulfport facility. This plan would restore the existing
tower, though with modifications to enhance its use by the disabled and better protect
it against future storms.
Option 2: Replacement of the Gulfport campus. This requires the damaged
existing tower to be torn down and replaced with a new Americans with Disabilities
Act-compliant facility also designed to be more resistant to storm damage.
Option 3: Surrender the Gulfport site to use by another federal agency: The
preferred agency would be the Department of Defense, with its future use envisioned
as a military recreation site (the land lies within a few yards of the Gulf of Mexico).
AFRH would retain title and maintain the site.
Option 4: Reposition the AFRH: In this option, the Home would close and
dispose of the Gulfport site and focus its operations on its Washington location. The
AFRH would maintain the site until disposal.
Option 5: Immediately sell the Gulfport site.
Options 3 through 5 would establish funding that could eliminate the $0.50 per
month military pay contribution. The Home would also consider establishing a new
location or locations elsewhere in the country. One recommendation under
consideration would reconstitute the Home as an independent nonprofit corporation,
requiring the repeal the 1991 act establishing it under Department of Defense
supervision and enabling the Home’s management to engage in outside fundraising
activities.

---

CRS-13
Appendix A. Consolidated Funding Tables
Table 5a. DOD Military Construction
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Military Construction, Army
1,757,507
2,059,762
1,756,298
—
—
Rescissions
(19,746)
—
(43,348)
—
—
Total
1,737,761
2,059,762
1,712,950
—
—
Military Construction,
1,145,570
1,162,038
1,193,834
—
—
Navy and Marine Corps
Rescissions
(50,037)
—
(38,000)
—
—
Emerg. Approps. (P.L. 109-148)
291,219
—
—
—
—
Total
1,386,752
1,162,038
1,155,834
—
—
Military Construction,
1,275,645
1,156,148
1,187,550
—
—
Air Force
Rescissions
(29,100)
—
(2,694)
—
—
Emerg. Approps. (P.L. 109-148)
52,612
—
—
—
—
Total
1,299,157
1,156,148
1,184,856
—
—
Military Construction, Defense-
998,766
1,208,198
1,107,606
—
—
wide
Rescissions
(20,000)
—
(110,229)
—
—
Emerg. Approps. (P.L. 109-148)
45,000
—
—
—
—
Total
1,023,766
1,208,198
997,377
—
—
Total, Active components
5,447,436
5,586,146
5,051,017
—
—
Military Construction,
517,919
473,197
512,873
—
—
Army National Guard
Emerg. Approps. (P.L. 109-148)
374,300
—
—
—
—
Total
892,219
473,197
512,873
—
—
Military Construction,
312,956
125,788
207,088
—
—
Air National Guard
Rescissions
(13,700)
—
—
—
—
Emerg. Approps. (P.L. 109-148)
35,000
—
—
—
—
Total
334,256
125,788
207,088
—
—
Military Construction,
151,043
166,487
167,774
—
—
Army Reserve

---

CRS-14
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Total
151,043
166,487
167,774
—
—
Military Construction,
46,395
48,408
55,158
—
—
Naval Reserve
Rescissions
(16,560)
—
—
—
—
Emerg. Approps. (P.L. 109-148)
120,132
—
—
—
—
Total
149,967
48,408
55,158
—
—
Military Construction, Air Force
104,824
44,936
56,836
—
—
Reserve
Rescissions
(13,815)
—
—
—
—
Total
91,009
44,936
56,836
—
—
Total, Reserve components
1,618,494
858,816
999,729
—
—
Total, Military Construction
7,065,930
6,444,962
6,050,746
—
—
NATO Security Investment
204,789
220,985
200,985
—
—
Program
Rescissions
(30,000)
—
—
—
—
Total
174,789
220,985
200,985
—
—
Family Housing Construction,
544,140
594,991
578,791
—
—
Army
Rescissions
(16,000)
—
—
—
—
Total
528,140
594,991
578,791
—
—
Family Housing Ops and Debt,
795,953
676,829
674,657
—
—
Army
Family Housing Construction,
216,753
305,071
308,956
—
—
Navy and Marine Corps
Emerg. Approps. (P.L. 109-148)
86,165
—
—
—
—
Total
302,918
305,071
308,956
—
—
Family Housing Ops and Debt,
582,773
509,126
509,126
—
—
Navy and Marine Corps
Emerg. Approps. (P.L. 109-148)
48,889
—
—
—
—
Total
631,662
509,126
509,126
—
—
Family Housing Construction, Air
1,090,868
1,183,138
1,169,138
—
—
Force
Rescissions
(43,900)
—
(66,200)
—
—
Emerg. Approps. (P.L. 109-148)
278,000
—
—
—
—
Total
1,324,968
1,183,138
1,102,938
—
—
Family Housing Ops and Debt, Air
759,270
755,071
755,071
—
—
Force

---

CRS-15
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Emerg. Approps. (P.L. 109-148)
47,019
—
—
—
—
Total
806,289
755,071
755,071
—
—
Family Housing Construction,
0
8,808
8,808
—
—
Defense-wide
Family Housing Ops and Debt,
45,927
48,506
48,506
—
—
Defense-wide
DOD Family Housing
2,475
2,500
2,500
—
—
Improvement Fund
Total, Family Housing
4,438,332
4,084,040
3,989,353
—
—
Chemical Demilitarization
0
130,993
90,993
—
—
Construction, Defense-wide
Base Realignment and Closure
BRAC, 1990
252,279
191,220
216,220
—
—
BRAC, 2005
1,489,421
5,626,223
5,309,876
—
—
Total
1,741,700
5,817,443
5,526,096
—
—
Grand Total, MilCon & FH
13,420,751
16,698,423
15,858,173
—
—

---

CRS-16
Table 5b. DOD Basic Allowance for Housing
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Army
3,880,723
3,687,905
3,687,905
—
—
Navy
3,511,570
4,135,061
4,135,061
—
—
Marine Corps
1,166,686
1,350,921
1,350,921
—
—
Air Force
3,162,073
2,934,327
2,934,327
—
—
Emerg. Approps. (P.L.
6,526
—
—
—
—
109-148)
Total
3,168,599
2,934,327
2,934,327
—
—
Army National Guard
444,819
469,109
469,109
—
Emerg. Approps. (P.L.
32,294
—
—
—
—
109-148)
Total
477,113
469,109
469,109
—
—
Air National Guard
238,396
277,533
277,533
—
—
Emerg. Approps. (P.L.
10,289
—
—
—
—
109-148)
Total
248,685
277,533
277,533
—
—
Army Reserve
306,642
347,607
347,607
—
—
Emerg. Approps. (P.L.
361
—
—
—
—
109-148)
Total
307,003
347,607
347,607
—
—
Naval Reserve
189,141
208,838
208,838
—
—
Emerg. Approps. (P.L.
1,053
—
—
—
—
109-148)
Total
190,194
208,838
208,838
—
—
Marine Corps Reserve
40,134
43,082
43,082
—
—
Air Force Reserve
69,357
76,218
76,218
—
—
Emerg. Approps. (P.L.
85
—
—
—
—
109-148)
Total
69,442
76,218
76,218
—
—
Total
13,060,149
13,530,601
13,530,601
—
—

---

CRS-17
Table 5c. DOD Facilities Sustainment, Restoration, & Modernization
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Army
1,832,607
1,810,774
1,810,774
—
—
Navy
1,331,521
1,201,313
1,201,313
—
—
Emerg. Approps. (P.L. 109-148)
215,499
—
—
—
—
Total
1,547,020
1,201,313
1,201,313
—
—
Marine Corps
548,420
473,141
473,141
—
—
Air Force
1,827,246
1,684,019
1,684,019
—
—
Emerg. Approps. (P.L. 109-148)
69,005
—
—
—
—
Total
1,896,251
1,684,019
1,684,019
—
—
Defense-Wide
115,731
86,386
86,386
—
—
Emerg. Approps. (P.L. 109-148)
5,238
—
—
—
—
Total
120,969
86,386
86,386
—
—
Army National Guard
392,579
387,882
387,882
—
—
Emerg. Approps. (P.L. 109-148)
49,217
—
—
—
—
Total
441,796
387,882
387,882
—
—
Air National Guard
177,993
255,322
255,322
—
—
Emerg. Approps. (P.L. 109-148)
13,557
—
—
—
—
Total
191,550
255,322
255,322
—
—
Army Reserve
202,326
215,890
215,890
—
—
Emerg. Approps. (P.L. 109-148)
1,128
—
—
—
—
Total
203,454
215,890
215,890
—
—
Naval Reserve
67,110
52,136
52,136
—
—
Emerg. Approps. (P.L. 109-148)
310,024
—
—
—
—
Total
377,134
52,136
52,136
—
—
Marine Corps Reserve
10,004
9,579
9,579
—
—
Emerg. Approps. (P.L. 109-148)
1,094
—
—
—
—
Total
11,098
9,579
9,579
—
—
Air Force Reserve
49,860
59,849
59,849
—
—
Emerg. Approps. (P.L. 109-148)
1,917
—
—
—
—
Total
51,777
59,849
59,849
—
—
Total
7,222,076
6,236,291
6,236,291
—
—

---

CRS-18
Table 5d. DOD Environmental Remediation
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Army
403,786
413,794
413,794
—
—
Navy
302,222
304,409
304,409
—
—
Air Force
402,396
423,871
423,871
—
—
Defense-Wide
27,885
18,431
18,431
—
—
Formerly Used Defense Sites (FUDS)
254,352
242,790
257,790
—
—
Total
1,390,641
1,403,295
1,418,295
—
—
Table 5e. DOD Health Program
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Operation and Maintenance
19,106,789
20,498,163
20,218,205
—
—
Rescissions
—
—
(40,042)
—
—
Emerg. Approps. (P.L. 109-148)
120,000
—
—
—
—
Emerg. Approps. (P.L. 109-148)
172,958
—
—
—
—
Total
19,399,747
20,498,163
20,178,163
—
—
Procurement
375,328
396,355
402,855
—
—
Emerg. Approps. (P.L. 109-148)
28,592
—
—
—
—
Total
403,920
396,355
402,855
—
—
Research and Development
536,883
130,603
444,103
—
—
Total, Defense Health
20,340,550
21,025,121
21,025,121
—
—
Table 5f. DOD Totals
(budget authority in $000)
FY2005
FY2006
Account
House
Senate
Conf.
Enacted
Request
Total, Department of Defense
New Budget Authority
??
??
??
—
—

---

CRS-19
Table 6. Related Agencies
(budget authority in $000)
Account
FY2006
FY2007
House
Senate
Conf.
Enacted
Request
American Battle Monuments Commission
Salaries and Expenses
35,888
35,838
37,088
—
—
Foreign Currency
15,098
4,900
4,900
—
—
Fluctuations
Total
50,986
40,738
41,988
—
—
U.S. Court of Appeals for Veterans Claims
Salaries and Expenses
18,607
19,790
19,790
—
—
Department of Defense-Civil
Cemeterial Expenses,
28,760
26,550
26,550
—
—
Army
Armed Forces Retirement
—
—
Home
Operation and
56,463
54,846
54,846
—
—
Maintenance
Capital Program
1,236
—
—
—
—
Emerg. Approp.
65,800
—
—
—
—
Total
123,499
54,846
54,846
—
—
Total, Agencies
221,852
141,924
143,174
—
—
Table 7. Grand Total
(budget authority in $000)
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Grand Total, All Titles
New Budget Authority
$126,527,932
$136,944,452
$136,120,466
—
—
Appropriations
($122,450,181) ($136,944,452) ($136,420,979)
—
—
Emergency
($4,330,609)
—
—
—
—
Appropriations
Rescissions
($252,858)
—
($300,513)
—
—
Note: House figures include Additional Appropriations noted in Table 2, above.

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CRS-20
Appendix B. Additional Resources
Budget
CRS Report RL30002, A Defense Budget Primer, by Mary T. Tyszkiewicz and
Stephen Daggett.
CRS Report 98-720, Manual on the Federal Budget Process, by Robert Keith and
Allen Schick.
Selected Websites
House Committee on Appropriations
[http://appropriations.house.gov/]
Senate Committee on Appropriations
[http://appropriations.senate.gov/]
House Committee on Armed Services
[http://www.house.gov/hasc/]
Senate Committee on Armed Services
[http://armed-services.senate.gov/]
House Committee on Veterans Affairs
[http://veterans.house.gov/]
Senate Committee on Veterans Affairs
[http://veterans.senate.gov/]
Commission on Review of Overseas Military Facility Structure of the United States
(Overseas Basing Commission)
[http://www.obc.gov/]
CRS Appropriations Products Guide
[http://www.crs.gov/products/appropriations/apppage.shtml]
CRS Multimedia Library
[http://www.crs.gov/products/multimedia/multimedialibrary.shtml]
Congressional Budget Office
[http://www.cbo.gov/]
Defense Base Closure and Realignment Commission (BRAC Commission)
[http://www.brac.gov]
Government Accountability Office
[http://www.gao.gov/]

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