Order Code RL33427
Military Construction, Military Quality of Life and
Veterans Affairs: FY2007 Appropriations
Updated January 26, 2007
Daniel H. Else
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Christine Scott
Specialist in Tax Economics
Domestic Social Policy Division
Sidath Viranga Panangala
Analyst in Social Legislation
Domestic Social Policy Division

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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 were changed at the beginning
of the 109th Congress, altering 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, rested 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 were vested in 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. At the opening of the 110th Congress, the House subcommittee structure was
again adjusted, returning some non-construction defense activities to 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 implementation of the current BRAC round have drawn
committee attention during the appropriation process. To fund the
activities included in the military construction and family housing
portion of this bill, the President requested $16.7 billion, the House
appropriated $15.9 billion, and the Senate Committee on
Appropriations recommended $16.3 billion.
! 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 and $41.4
billion, respectively) of the VA appropriation of approximately $71
billion for FY2006 and almost $78 billion proposed for FY2007.
! 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. The House
passed version of H.R. 5385 provides $32.7 billion for the Veterans
Health Administration (VHA) for FY2007, about the same amount
as the President’s request. On July 20, 2006, the Senate Committee
on Appropriations reported out of committee its version of H.R.
5385. H.R. 5385, as amended, provides $32.7 billion for VHA for
FY2007, almost equivalent to the House-passed amount and the
President’s request. The House-passed bill and the Senate
Appropriations Committee-reported bill do not include any
provisions that would give VA the authority to implement fee
increases.

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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
Christine Scott
7-7366
cscott@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
Defense Appropriation (H.R. 5631) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Continuing Resolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Appropriations Subcommittee Jurisdiction Realignment, 109th Congress . . 4
House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Subsequent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Title I: Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Defense Health Program (DHP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Military Base Realignments and Closures . . . . . . . . . . . . . . . . . . . . . . . 6
Recapitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
NATO Security Investment Program (NSIP) . . . . . . . . . . . . . . . . . . . . . 8
Special Inspector General for Iraq Reconstruction (SIGIR) . . . . . . . . . 9
Additional Appropriations, House . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Additional Appropriations, Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Title II: Department of Veterans Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Agency Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Key Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
VA Cash Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Funding Level for Defense and Veterans Brain Injury Center . . . . . . . . . . . 18
Title III: Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Independent Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
American Battle Monuments Commission . . . . . . . . . . . . . . . . . . . . . 20
U.S. Court of Appeals for Veterans Claims . . . . . . . . . . . . . . . . . . . . . 20
Cemeterial Expenses, Army . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Armed Forces Retirement Home (AFRH) . . . . . . . . . . . . . . . . . . . . . . 20
Appendix A. Consolidated Funding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Appendix B. Additional Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Selected Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

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List of Tables
Table 1a. Status of FY2007 Military Construction, Military Quality of Life
and Veterans Affairs Appropriations (H.R. 5385) . . . . . . . . . . . . . . . . . . . . . 4
Table 1b. Status of FY2007 Defense Authorization (H.R. 5122, S. 2766) . . . . . . 4
Table 2. Additional Appropriations, House, FY2007 . . . . . . . . . . . . . . . . . . . . . 12
Table 3. Additional Appropriations, Senate, FY2007 . . . . . . . . . . . . . . . . . . . . . 13
Table 4. Department of Veterans Affairs Appropriations, FY2000-FY2006 . . . 14
Table 5. Appropriations: Department of Veterans Affairs, FY2006-FY2007 . . . 15
Table 6a. DOD Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Table 6b. DOD Basic Allowance for Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Table 6c. DOD Facilities Sustainment, Restoration, & Modernization . . . . . . . . 26
Table 6d. DOD Environmental Remediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Table 6e. DOD Health Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Table 6f. DOD Military Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Table 7. Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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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. The Rules
Committee reported H.Res. 821, providing for one hour of general debate and leaving
the bill open to general amendments, on May 18. The resolution passed on May 19,
when the House began debate. Several Members offered amendments, though none
was adopted, and raised points of order before the bill passed by the Yeas and Nays
395-0 (Roll No. 176).
The Senate received the bill and referred it to the Committee on Appropriations.
The Committee reported H.R. 5385 with an amendment in the nature of a substitute
favorably on July 20 (S.Rept. 109-286).1 It was then placed on the Legislative
Calendar under General Orders (Calendar No. 525). The Senate considered the bill
on November 13 and 14, passing it by voice vote after floor amendment to the bill
and title.2 Nevertheless, the measure, along with most of the other regular
appropriations bills, did not conference before the 109th Congress ended. Only the
appropriations for the Departments of Defense and Homeland Security were enacted
for Fiscal Year 2007, with the remaining functions of the federal government being
sustained by a series of continuing resolutions.
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
1 The Committee also recommended a change of the bill’s title from “Military Quality of
Life and Veterans Affairs, and Related Agencies Appropriations Bill, 2007” to “Military
Construction and Veterans Affairs and Related Agencies Appropriation Bill, 2007,”
reflecting the differences between the chambers in appropriations subcommittee names and
jurisdictions.
2 The amended title read, “Military Construction and Veterans Affairs and Related Agencies
Appropriations Act, 2007.”

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CRS-2
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). The measure was
laid before the Senate on June 12, debated, amended, and passed on June 22 by a
Yea-Nay vote of 96-0 (Record Vote No. 186).
H.R. 5122 was received on May 15 and placed on the Legislative Calendar
under General Orders (Calendar No. 431). On June 22, the Senate struck all after the
Enacting Clause and substituted the language of S. 2766 amended, passing the
amended measure by Unanimous Consent and requesting a conference. The House
disagreed to the Senate amendment on September 7 and agreed to a conference. The
conference began on September 12, 2006.
The Conference Report (H.Rept. 109-702) was filed in the House on September
29, 2006, and agreed the same day by the Yeas and Nays: 398-23 (Roll no. 510). The
Senate agreed the report by Unanimous Consent on the following day. The bill was
presented to the President on October 5.
Defense Appropriation (H.R. 5631). Several items in the House version of
H.R. 5385 lie within the jurisdiction of the Senate Committee on Appropriations
Subcommittee on Defense. These include basic allowance for housing (military
personnel account), facilities, sustainment, restoration, and modernization (operations
and maintenance account), and defense-related agencies. Appropriations for these
activities are therefore included in the Senate’s defense appropriation bill.
Nevertheless, they are included in the tables appended to this report.
H.R. 5631 was introduced in the House on June 16, 2006, and passed on June
20 by a vote of 407-19 (H.Rept. 109-504, Roll no. 305). Referred to the Senate
Committee on Appropriations, it was reported out on July 25 with an amendment in
the form of a substitute (S.Rept. 109-292) and was placed on the Legislative Calendar
under General Orders (Calendar No. 532). The Senate agreed to the committee
substitute by Unanimous Consent on August 1. The Senate debated and amended the
bill between August 1 and 3 and continued on September 5 through 7, passing it with
amendment on a Yea-Nay vote of 98-0 (Record Vote No. 239) and requesting a
conference.
The House appointed conferees on September 21, and the Conference Report
(H.Rept. 109-676) was filed on September 25, 2006. The House agreed to the report
by the Yeas and Nays: 394-22 (Roll no. 486). The Senate agreed to the conference
report on September 29 by a Yeas and Nays vote of 100-0 (Record Vote No. 261).
Presented to the President, he signed the bill on the same day (P.L. 109-289).
Continuing Resolutions. In the absence of an annual appropriation, Fiscal
Year 2007 funding for all of the accounts included in the House version of H.R. 5385
has been sustained by a series of continuing resolutions. Div. B of H.R. 5631 (P.L.

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CRS-3
109-289), the Department of Defense Appropriations Act for Fiscal Year 2007,
continued appropriations for a variety of activities, including those covered by H.R.
5385, from the beginning of Fiscal Year 2007 through November 16, 2006, using
various formulas.3 In general, these equated to the lowest of the House-passed,
Senate-passed, or last-enacted funding levels.
H.J.Res. 100 (P.L. 109-369) continued appropriations through December 18,
2006.
H.J.Res. 102 (P.L. 109-383) continued appropriations through February 15,
2007.
Additional information regarding the recent history of and practices regarding
continuing resolutions can be found in CRS Report RL30343, Continuing
Appropriations Act: Brief Overview of Recent Practices, by Sandy Streeter, and CRS
Report RL32614, Duration of Continuing Resolutions in Recent Years, by Robert
Keith.
3 See Div. B, Sec. 101(b) – (e) of the Act.

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Status of Legislation
Table 1a. Status of FY2007 Military Construction, Military Quality
of Life and Veterans Affairs Appropriations (H.R. 5385)
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.
5/4/06
7/18/06
5/19/06
11/14/06
—
—
—
—
109-464
109-286
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.
H.Rept.
P.L. 109-
5/18/05
5/4/06
5/11/06
9/7/06
9/29/06
9/30/06
109-452
109-254
109-702
364
Summary and Key Issues
Appropriations Subcommittee Jurisdiction Realignment,
109th Congress
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

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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 and
transferred 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 Commission 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 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.4
Appropriations Subcommittee Jurisdiction Realignment,
110th Congress
With the opening of the 110th Congress, the House and Senate brought the
responsibilities of their appropriations subcommittees more closely into alignment.
On the House side, this resulted in a new alignment of jurisdictions and the renaming
of several subcommittees.
The non-construction quality-of-life defense appropriations, including Facilities
Sustainment, Restoration, and Modernization, Basic Allowance for Housing,
Environmental Restoration, and the Defense Health Program returned to the
jurisdiction of the Subcommittee on Defense. The former Subcommittee on Military
Quality of Life, Veterans Affairs, and Related Agencies became the Subcommittee
on Military Construction, Veterans Affairs, and Related Agencies, mirroring its
counterpart in the Senate.
4 See Tim Starks, “Bill Targets Veterans’ Funding Shortfall,” CQ Weekly (November 18,
2005), p. 3136.

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Title I: Department of Defense
Defense Health Program (DHP)
H.R. 5385 considered funding for the Defense Health Program (DHP) in
FY2007, the medical and health care programs of the Department of Defense. The
bill’s DHP funding, which included Operation & Maintenance, Procurement and
Research, Development, Test, and Evaluation activities associated with military
health care, would have totaled approximately $21 million.5 The DHP figure
included funds for military medical facilities and contracts with Tricare civilian
health care providers, which provide medical care to some 8 million military
personnel, their dependents, retirees and their dependents. Differences between
amounts approved by the House were Senate are relatively small; the House
approved $21.065 million; the Senate, $21.409 million.
Military Construction
Military Base Realignments and Closures.6 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 statutory deadline of September 2011, according to the
Department of Defense.7
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
5 Funds ($7 billion) for military medical personnel were appropriated in the Department of
Defense Appropriations Act for Fiscal Year 2007 (H.R. 5631, P.L. 109-289). P.L. 109-289
also includes an $11 billion contribution to the fund that will provide care for future
Medicare-eligible military retirees and dependents, the Medicare Eligible Retiree Health
Care Fund.
6 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.
7 10 U.S.C. 2687 note, the Defense Base Closure and Realignment Act of 1990, as amended,
requires the Secretary of Defense to implement all BRAC Commission recommendations
not later than six years after their final approval. For the 2005 round, DOD has calculated
that date to be September 15, 2011.

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CRS-7
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.
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 was 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 Senate Committee on Appropriations endorsed
the President’s request for $191.2 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, DOD 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. DOD refers to this worldwide redeployment as
the Integrated Global Presence and Basing Strategy, or IGPBS, and has identified its
associated military construction in budget justification documents using that
acronym.8
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
8 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-8
appropriation for FY2007, while the Senate Committee on Appropriations
recommended $5.2 billion.
Impact of Military Redeployments on Local Schools. Unit and function
movements associated with BRAC and IGPBS 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. Several other installations, such as Ft. Bliss in Texas
and Ft. Sill in Oklahoma, are also preparing for significant additions to the personnel
stationed there. 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.
Recapitalization. In 2001, the Department of Defense estimated its existing
recapitalization rate at 192 years.9 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 Grone, the
Deputy Undersecretary of Defense for Installations and Environment, stated that the
Fiscal Year 2007 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.
9 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).

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CRS-9
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.”10
The President requested $221.0 million for the NSIP for FY2007, while the
House approved $201.0 million. The Senate approved an appropriation of $206.0
million.
Special Inspector General for Iraq Reconstruction (SIGIR). Language
in the John Warner National Defense Authorization Act for Fiscal Year 2007 (H.R.
5122, P.L. 109-364) provided for the termination of the Special Inspector General for
Iraq Reconstruction (SIGIR).
The House-passed version of the bill contained no provision regarding the
operation of the SIGIR.11 During floor debate of the Senate’s national defense
authorization bill (S. 2766), Senator Russell D. Feingold proposed an amendment
that would extend the investigative, auditing, and reporting authorities of the SIGIR
to cover “any funds appropriated or otherwise made available for fiscal year 2006 for
the reconstruction of Iraq, regardless of how such funds may be designated.”12 The
measure was agreed by voice vote on June 15, 2006, and incorporated into the bill
as Sec. 1054. It became part of H.R. 5122 when the Senate amended that bill by
substituting the language of S. 2766 on June 22. The section read as follows:
SEC. 1054. STRENGTHENING THE SPECIAL INSPECTOR GENERAL FOR
IRAQ RECONSTRUCTION.
For purposes of discharging the duties of the Special Inspector General for Iraq
Reconstruction under subsection (f) of section 3001 of the Emergency
Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq
and Afghanistan, 2004 (5 U.S.C. 8G note), and for purposes of determining the
date of termination of the Office of the Special Inspector General under
subsection (o) of such section, any funds appropriated or otherwise made
available for fiscal year 2006 for the reconstruction of Iraq, regardless of how
such funds may be designated, shall be treated as amounts appropriated or
otherwise made available for the Iraq Relief and Reconstruction Fund.
10 House, Military Quality of Life and Veterans Affairs, and Related Agencies
Appropriations Bill, 2007, 109th Cong., 2nd Sess., 2006, H.Rept. 109-464, p. 27.
11 The SIGIR maintains a website, through which access to information on its’ audits,
investigations, and reports can be gained. This website can be found at
[http://www.sigir.mil/].
12 S.Amdt. 4256. Consideration of the measure is found in the Congressional Record for
June 15 (S5914-S5916, the text of the amendment is located on page S5968).

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CRS-10
Conference on the authorization bill began on September 12, and the conference
report (H.Rept. 109-702) was filed on September 29. Sec. 1054, as entered into the
Congressional Record, now read:
SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE
SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.
(a) Duties — For purposes of carrying out the duties of the Special Inspector
General for Iraq Reconstruction under section 3001(f) of the Emergency
Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq
and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1235 et seq.; 5 U.S.C.
App., note to section 8G of Public Law 95-452), any United States funds
appropriated or otherwise made available for fiscal year 2006 for the
reconstruction of Iraq, irrespective of the designation of such funds, shall be
deemed to be amounts appropriated or otherwise made available to the Iraq
Relief and Reconstruction Fund.
(b) Termination — Section 3001(o) of the Emergency Supplemental
Appropriations Act for Defense and for the Reconstruction of Iraq and
Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1238; 5 U.S.C. App., note to
section 8G of Public Law 95-452) is amended to read as follows:
‘(o) Termination - The Office of the Inspector General shall terminate on
October 1, 2007, with transition operations authorized to continue through
December 31, 2007.’.
By way of explanation, the accompanying Joint Explanatory Statement read:13
The Senate amendment contained a provision (sec. 1054) that would expand the
authority of the Special Inspector General for Iraq Reconstruction (SIGIR) by
considering any funds appropriated or made available in the Emergency
Supplemental Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 (Public Law 109-234) for relief and reconstruction in
Iraq as part of the Iraqi Relief and Reconstruction Fund (IRRF), and under the
jurisdiction of the SIGIR, regardless of the source of the funds.
The House bill contained no similar provision.
The House recedes with an amendment that would clarify that the additional
SIGIR jurisdiction is limited to U.S. funds and would provide a sunset date of
October 1, 2007, for the Office of the SIGIR, with transition operations
authorized to continue through December 31, 2007.
The conferees support the comprehensive audit efforts of the SIGIR and believe
the office continues to perform a critical function as long as significant resources
flow to Iraq reconstruction and until a transition plan is in place to return to
regular order. The conferees direct the SIGIR, jointly with the Inspectors General
of the Departments of State and Defense and the Inspector General of the U.S.
Agency for International Development (USAID), to develop and submit such a
transition plan to Congress by April 1, 2007. The plan should ensure
13 H.Rept. 109-702, p. 817.

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CRS-11
maintenance and accountability of all accumulated records and minimal, if any,
disruption in the ability to oversee reconstruction funding or other U.S.
assistance to Iraq. The plan should include a process and time line for transfer of
open audits and investigations to the appropriate Departments of Defense, State
or USAID office and should consider various contingency scenarios which may
impact the transition time line. The conferees recognize that a significant change
in the assumptions underlying this provision, such as a major new commitment
of U.S. funds for Iraq reconstruction, would require changes to the transition plan
and time line.
The conference report was agreed by the House by the Yeas and Nays: 398-23
(Roll no. 510) on September 29, 2006. The Senate agreed to the report by Unanimous
Consent on the following day. The bill was presented to the President on October 5
and became law on October 17, 2006 (P.L. 109-364).
The Joint Explanatory Statement notwithstanding, Senators Susan M. Collins
and Joseph I. Lieberman appeared in a press conference on November 14, 2006, to
state, in part:
COLLINS: How did the termination provision ... get put in? That’s a very good
question. We are both conferees — were conferees. And, speaking for myself,
what I thought was the last version of the bill did not include that provision.
But I think it’s important that however it got in there — and it certainly did not
originate on the Senate side — that it’s important that we correct the problem,
go forward, and extend the life of the office...
LIEBERMAN: Yes. I’d just add, also as a conferee, that we didn’t see this in the
last version that we saw. We checked after this became public, and I don’t
believe that the leaders of the committee on the Senate side or their staff knew
it was in there....
Senator Collins had introduced an amendment to the military construction
appropriations bill then under consideration on the Senate floor. This provision
stated:14
On page 82, between lines 19 and 20, insert the following:
Sec. 126. Section 3001(o) of the Emergency Supplemental Appropriations Act
for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public
Law 108-106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of Public Law
95-452), as amended by section 1054(b) of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364), is amended to
read as follows:
14 S.Amdt. 5123 to H.R. 5385, titled “To extend the Office of the Inspector General for Iraq
until 80 percent of the funds appropriated or otherwise made available to the Iraq Relief and
Reconstruction Fund has been expended.” Amendment text may be found in the
Congressional Record for November 13, 2006, on pages S10881-S10882. Consideration of
the measure is detailed on pages S10895-S10897.

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CRS-12
“(o) Termination. — (1)(A) The Office of the Inspector General shall terminate
10 months after 80 percent of the funds appropriated or otherwise made available
to the Iraq Relief and Reconstruction Fund have been expended.
“(B) For purposes of calculating the termination of the Office of the Inspector
General under this subsection, any United States funds appropriated or otherwise
made available for fiscal year 2006 for the reconstruction of Iraq, irrespective of
the designation of such funds, shall be deemed to be amounts appropriated or
otherwise made available to the Iraq Relief and Reconstruction Fund.
“(2) The Special Inspector General for Iraq Reconstruction shall, prior to the
termination of the Office of the Special Inspector General under paragraph (1),
prepare a final forensic audit report on all funds deemed to be amounts
appropriated or otherwise made available to the Iraq Relief and Reconstruction
Fund.”.
The amendment was agreed to in the Senate by voice vote, and the bill passed
as amended on November 14, 2006.
Additional Appropriations, House. In Title IV of its bill, the House
Committee on Appropriations recommended an additional $507 million for military
construction accounts for “projects supporting contingency operations related to the
global war on terrorism” (see Table 2). These funds were intended for “projects
related to urgent transformation efforts, as well as projects directly supporting
operations in the theater and those that will enhance training in urban operations and
close quarters combat.”15
Table 2. Additional Appropriations, House, FY2007
Military Construction
New Budget Authority
Account
($ 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.
Each of these appropriations was addressed in a separate paragraph under Title
IV, and each was designated an emergency appropriation by language stating that
“the amount under this heading is designated as making appropriations for
contingency operations related to the global war on terrorism pursuant to section 402
15 House, Military Quality of Life, p. 69.

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CRS-13
of H.Con.Res. 376 (109th Congress), the concurrent resolution on the budget for
FY2007.” This language would have constituted legislation within a general
appropriations bill by changing the existing concurrent resolution. It therefore
violated Clause 2(b) of Rule XXI of the House Rules.16 Representative Jeb
Hensarling, of Texas, raised a point of order against each of these paragraphs and was
sustained by the Chair.
Additional Appropriations, Senate. The Senate Committee on
Appropriations included in its defense appropriation recommendation $50 billion in
additional appropriations to fund the global war on terrorism for the first several
months of Fiscal Year 2007. Of this, $897 million was recommended as an addition
to the recommended basic allowance for housing for Army active and reserve
component members, as noted in Table 3.
Table 3. Additional Appropriations, Senate, FY2007
($ in thousands)
Basic Allowance for Housing
Amount
Army
888,704
Army Reserve
3,164
Army National Guard
5,141
Total
897,009
Source: S.Rept. 109-292, p. 236.
16 The clause states, “A provision changing existing law may not be reported in a general
appropriation bill, including a provision making the availability of funds contingent on the
receipt or possession of information not required by existing law for the period of the
appropriation, except germane provisions that retrench expenditures by the reduction of
amounts of money covered by the bill (which may include those recommended to the
Committee on Appropriations by direction of a legislative committee having jurisdiction
over the subject matter) and except rescissions of appropriations contained in appropriation
Acts.”

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CRS-14
Title II: Department of Veterans Affairs
Table 4. 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
$71.46
Source: Amounts shown are from reports of the Appropriations Committees accompanying the
appropriations bills for the following years.
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.

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CRS-15
Table 5. Appropriations: Department of Veterans Affairs,
FY2006-FY2007
(budget authority in billions)
FY2006
FY2007
FY2007
FY2007
FY2007
Program
enacted
request
House
Senate
Conf
Total: (VA)
$71.458
$77.909
$77.909
$77.909
Compens., pension, burial
$33.898
$38.007
$38.007
$38.007
Readjustment benefits
3.309
3.262
3.262
3.262
Insurance/indemnities
0.046
0.050
0.050
0.050
Housing prog. (net, indef.)
-0.047a
0.097
0.097
0.097
Subtotal: Mandatory
$37.206
$41.416
$41.416
$41.416
Medical services
21.322
25.512
25.412
28.689
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
3.569
Med. & prosthetic research
0.412
0.399
0.412
0.412
Med. care collection fundb
(offsetting
receipts)
-2.170
-2.329
-2.329
-2.329
(approps.
indefinite)
2.170
2.329
2.329
2.329
Subtotal: Med. programs &
29.341
32.657
32.695
32.670
admin. (appropriations)
Total available to VHA
31.511
34.986
35.024
34.999
Gen. admin. exp. (total)
1.411
1.481
1.481
1.468

Emerg. funding
0.025
—
—
—
(P.L. 109-148)
Information technology
1.214
1.257
1.302
1.256
National Cemetery Admin.
0.156
0.161
0.161
0.161

Emerg. funding
c
—
—
—
(P.L. 109-148)
Inspector General
0.070
0.069
0.069
0.071
Construction
0.806
0.597
0.494
0.597

Emerg. funding
0.955
—
—
—
(P.L. 109-148 & 234)
Grants; state facilities
0.085
0.085
0.105
0.085
State veteran cemeteries
0.032
0.032
0.032
0.032
Housing & other loan
0.155
0.154
0.154
0.154
admin.
Disaster comp. — emerg.
0.003
—
—
—
(P.L. 106-148)
Subtotal: Discretionary
$34.252
$36.493
$36.493
$36.493

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CRS-16
Source: Table prepared by the Congressional Research Service based on H.Rept. 109-464 and S.Rept.
109-286.
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 5). This would be an
increase of $6.5 billion, or 9.0%, over the FY2006 total including the supplemental
appropriations. The most recent supplemental (P.L. 109-234) added FY2006 funds
for construction of a replacement for the VA Medical Center in New Orleans.17
The Senate passed its version of the budget resolution for FY2007 (S.Con.Res.
83) on March 16, 2006, and the House passed H.Con.Res 376 on May 18, 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-passed 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 (H.R.
5385) including about the same amount as requested for VA on May 10, 2006. The
bill, as passed by the House on May 19, 2006, 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
approved the bill with the same totals on July 20, 2006.
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 $38.1 billion in FY2005 and is projected at $38.2 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.
17 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-17
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 §228.18 In response to this provision, VA is conducting outreach
efforts in Illinois, Indiana, Michigan, Ohio, New Jersey, and Connecticut. The
reports of both the House and Senate Appropriations Committees on H.R. 5385
express concern about the time veterans must wait to have their claims processed.
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 community-based
outpatient clinics (CBOCs).19 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 veterans receiving
treatment for nonservice-connected conditions for the entire co-payment amount.
The House passed its version of the Military Construction, Military Quality of
Life, and Veterans Affairs Appropriations bill (MIL-CON-QUAL-appropriations bill)
for FY2007 (H.R. 5385, H.Rept. 109-464) on May 19, 2006. H.R. 5385 provides
$32.7 billion for the Veterans Health Administration (VHA) for FY2007, about the
same amount as the President’s request. This includes $25.4 billion for medical
18 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.
19 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.

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CRS-18
services, a $2.6 billion (11.6%) increase over the FY2006 enacted amount and $100
million less than the President’s requested amount of $25.5 billion. The MIL-CON-
QUAL-appropriations bill also includes $3.3 billion for medical administration, a
$100 million increase over the President’s request; $3.6 billion for medical facilities;
and $412 million for medical and prosthetic research, a $13.0 million increase over
the Administration’s request. The House-passed bill does not include any provisions
that would give VA the authority to implement fee increases as requested by the
Administration’s budget proposal for VHA for FY2007
On July 20, 2006, the Senate Committee on Appropriations reported out of
committee its version of the Military Construction and Veterans Affairs and Related
Agencies Appropriations bill (MIL-CON-VA-appropriations bill) for FY2007 (H.R.
5385, H.Rept. 109-286). H.R. 5385, as amended, provides $32.7 billion for VHA for
FY2007, about the same as the House-passed amount and the President’s request.
This amount includes $28.7 billion for medical services, a 26.0% increase over the
FY2006 enacted amount, and a 13.0% increase over the House-passed amount.
Although it appears that the Committee-recommended amount is significantly higher
than the President’s request ($25.5 billion) and the House-passed amount ($25.4
billion), it should be noted that the Committee combined the medical administration
account into the medical services account. The MIL-CON-VA-appropriations bill
also includes $3.6 billion for medical facilities, and $412 million for medical and
prosthetic research. The Senate Appropriations Committee reported bill does not
include any provisions that would give VA the authority to implement fee increases
as requested by the Administration’s budget proposal for VHA for FY2007.
The third continuing resolution (H.J.Res. 102 , P.L. 109-383) extended funding
for VHA through February 15, 2007. Section 136 of H.J.Res. 102 provided VA with
the authority to transfer up to $684 million into the medical services account from
other non-medical care accounts. Since the beginning of FY2007, VA has been using
unobligated balances carried over from FY2006 to bridge the approximately $250
million per month shortfall in the VHA accounts.
Funding Level for Defense and Veterans Brain Injury Center
During Senate floor consideration of the FY2007 Department of Defense
Appropriations Act (H.R. 5631), controversy erupted about the adequacy of funding
for the Defense and Veterans Brain Injury Center, a center that coordinates treatment
and research for traumatic brain injuries affecting active-duty military, their
dependents and veterans provided.20 Concerned about traumatic and other brain
injuries in Iraq and Afghanistan due to Improvised Explosive Device (IED) attacks,
Congress increased DOD’s funding request for this program in FY2006, and
commissioned an extensive report due October 6, 2006.21 In FY2007, the final
20 Treatment is provided at three military hospitals, three VA hospitals and two private
centers.
21 See Sec. 255 in P.L. 109-163, H.Rept. 109-360, pp.47-50, and p. 622 for reporting
requirement, and see H.Rept. 109-359, Conference Report on FY2006 DOD Appropriations
(continued...)

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CRS-19
funding level for this program will be set in the conference version of the Military
Construction, Military Quality of Life, Veterans Affairs & related agencies bill (H.R.
5385). Despite the controversy about the funding level for this particular program,
military personnel are entitled to full medical coverage under the TRICARE program.
The Defense and Veterans Brain Injury Center is funded within the “Blast Injury
Prevention, Mitigation and Treatment” program, and received $10.7 million of the
$19.6 million appropriated in FY2006. Last year, Congress increased DOD’s request
for blast injury from $7 million to $19.6 million, including monies for both treatment
and R&D, all provided within the appropriation for Defense Health.
In FY2007, DOD again proposed $7 million for the Blast Injury Prevention,
Mitigation and Treatment program including $4.9 million for the Defense and
Veterans Brain Injury Center. On September 6, 2007, the Senate unanimously
adopted an amendment to the FY2007 DOD Appropriations bill (H.R. 5631) offered
by Senators Allen and Durbin (SA4883) that made $19 million available for the
Defense and Veterans Brain Injury Center from monies for the Defense Health
Program.22 The House did not change DOD’s request for $7 million for the Blast
Injury Prevention, Mitigation and Treatment program and funded the program in a
different bill, the Military Construction, Military Quality of Life and Veterans Affairs
appropriations bill (H.R. 5385).23
In FY2007, the appropriation conferees for the FY2007 Military Construction,
Military Quality of Life and Veterans Affairs appropriation bills (H.R. 5385) will
need to resolve differences in funding for the Blast Injury Prevention, Mitigation and
Treatment program, and the amount of that funding that will go to Defense and
Veterans Brain Injury Center.24
For a more detailed discussion of the VA medical care budget, see CRS Report
RL33409, Veterans’ Medical Care: FY2007 Appropriations, by Sidath Viranga
Panangala.
21 (...continued)
Bill for FY2006 Congressional action, p. 458.
22 See Congressional Record, September 5, 2006, pp. S8928ff and September 6, 2006, p.
S8992 and S9035.
23 For DOD request, see “Exhibit OP-5, In-House Care,” Defense Health Program, FY2007
Budget Estimates, February 2006, pp. 2-4; [http://www.dod.mil/comptroller/defbudget/
fy2007/budget_justification/pdfs/dhp/VOL_1/Vol_1_Sec_5_-_A_OP-5_IHC_07PB_DH
P.pdf]. Because this program is part of In-house Care and because the House did not change
DOD’s request, the House report does not specifically mention its funding.
24 At the beginning of the 109th Congress, the appropriations committees changed the
jurisdictional responsibility of various subcommittees. Funding for Defense Health is
included in Military Construction bill in the House and in the Defense Appropriations bill
in the Senate. The appropriators follow the House rules in odd years like FY2007 and the
Senate rules in even years.

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CRS-20
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

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CRS-21
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.

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CRS-22
Appendix A. Consolidated Funding Tables
Table 6a. 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
2,137,822
Emergency Appropriations
—
—
—
34,800
Rescissions
(19,746)
—
(43,348)
(43,348)
Rescissions (Emerg. Approps.)
—
—
—
(125,800)
Emerg. Approps.
187,100
—
—
—
(P.L. 109-234)
Total
1,924,861
2,059,762
1,712,950
2,003,474
Military Construction,
1,145,570
1,162,038
1,193,834
—
Navy and Marine Corps
Rescissions
(50,037)
—
(38,000)
—
Emerg. Approps.
291,219
—
—
—
(P.L. 109-148)
Emerg. Approps.
44,770
—
—
—
(P.L. 109-234)
Total
1,431,522
1,162,038
1,155,834
1,200,065
Military Construction,
1,275,645
1,156,148
1,187,550
—
Air Force
Rescissions
(29,100)
—
(2,694)
—
Emerg. Approps.
52,612
—
—
—
(P.L. 109-148)
Emerg. Approps.
125,000
—
—
—
(P.L. 109-234)
Rescissions
—
—
—
(10,800)
(Emerg. Approps.)
Total
1,424,157
1,156,148
1,184,856
1,181,575
Military Construction,
998,766
1,208,198
1,107,606
1,061,395
Defense-wide
Emergency Appropriations
—
—
—
100,886
Rescissions
(20,000)
—
(110,229)
(124,065)
Emerg. Approps.
45,000
—
—
—
(P.L. 109-148)
Emerg. Approps.
20,600
—
—
—
(P.L. 109-234)
Total
1,044,366
1,208,198
997,377
1,038,216
Total, Active components
5,824,906
5,586,146
5,051,017
5,423,330

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CRS-23
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Military Construction,
517,919
473,197
512,873
539,804
Army National Guard
Rescissions
—
—
—
(2,129)
Emerg. Approps.
374,300
—
—
—
(P.L. 109-148)
Emerg. Approps.
210,071
—
—
—
(P.L. 109-234)
Total
1,102,290
473,197
512,873
537,675
Military Construction,
312,956
125,788
207,088
252,834
Air National Guard
Rescissions
(13,700)
—
—
—
Emerg. Approps.
35,000
—
—
—
(P.L. 109-148)
Emerg. Approps.
5,800
—
—
—
(P.L. 109-234)
Total
340,056
125,788
207,088
252,834
Military Construction,
151,043
166,487
167,774
191,450
Army Reserve
Total
151,043
166,487
167,774
—
Military Construction,
46,395
48,408
55,158
48,408
Naval Reserve
Rescissions
(66,090)
—
—
—
Emerg. Approps.
120,132
—
—
—
(P.L. 109-148)
Emerg. Approps.
24,270
—
—
—
(P.L. 109-234)
Total
124,707
48,408
55,158
48,408
Military Construction,
104,824
44,936
56,836
44,936
Air Force Reserve
Rescissions
(13,815)
—
—
—
Total
91,009
44,936
56,836
44,936
Total, Reserve components
1,809,105
858,860
999,729
1,075,303
Total, Military Construction
7,634,011
6,444,962
6,050,746
6,498,633
NATO Security Investment
204,789
220,985
200,985
205,985
Program
Rescissions
(30,000)
—
—
—
Total
174,789
220,985
200,985
205,985
Family Housing Construction,
544,140
594,991
578,791
578,781
Army
Rescissions
(16,000)
—
—
—
Total
528,140
594,991
578,791
578,781

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CRS-24
FY2006
FY2007
Account
House
Senate
Conf.
Enacted
Request
Family Housing Ops and Debt,
795,953
676,829
674,657
675,617
Army
Family Housing Construction,
216,753
305,071
308,956
305,071
Navy and Marine Corps
Emerg. Approps.
86,165
—
—
—
(P.L. 109-148)
Total
302,918
305,071
308,956
305,071
Family Housing Ops and Debt,
582,773
509,126
509,126
498,525
Navy and Marine Corps
Emerg. Approps.
48,889
—
—
—
(P.L. 109-148)
Total
631,662
509,126
509,126
498,525
Family Housing Construction,
1,090,868
1,183,138
1,169,138
1,182,138
Air Force
Rescissions
(43,900)
—
(66,200)
(66,200)
Emerg. Approps.
278,000
—
—
—
(P.L. 109-148)
Total
1,368,868
1,183,138
1,102,938
1,115,938
Family Housing Ops and Debt,
759,270
755,071
755,071
755,071
Air Force
Emerg. Approps.
47,019
—
—
—
(P.L. 109-148)
Total
806,289
755,071
755,071
755,071
Family Housing Construction,
0
8,808
8,808
8,808
Defense-wide
Family Housing Ops and Debt,
45,927
48,506
48,506
48,506
Defense-wide
DOD Family Housing
45,927
57,314
57,314
57,314
Improvement Fund
Total, Family Housing
4,482,232
4,092,848
3,998,161
3,997,625
Chemical Demilitarization
0
130,993
90,993
140,993
Construction, Defense-wide
Base Realignment and Closure
BRAC, 1990
252,279
191,220
216,220
191,220
BRAC, 2005
1,489,421
5,626,223
5,309,876
5,237,100
Total
1,741,700
5,817,443
5,546,096
5,428,320
Grand Total, MilCon & FH
14,032,732
16,707,231
15,866,981
16,271,556

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CRS-25
Table 6b. DOD Basic Allowance for Housing
(budget authority in $000)
FY2006
FY2007
House
Senate
Conf.
Enacted
Request
Army
3,880,723
3,715,905
3,687,905 3,715,905
Navy
3,511,570
4,185,061
4,135,061
4,185,061
Marine Corps
1,166,686
1,351,921
1,350,921
1,351,921
Air Force
3,162,073
2,979,327
2,934,327
—
Emerg. Approps.
6,526
—
—
—
(P.L. 109-148)
Total
3,168,599
2,979,327
2,934,362
2,979,327
Army National Guard
444,819
469,109
469,109
469,109
Emerg. Approps.
32,294
—
—
—
(P.L. 109-148)
Total
477,113
469,109
469,109
469,109
Air National Guard
238,396
277,533
277,533
277,533
Emerg. Approps.
10,289
—
—
—
(P.L. 109-148)
Total
248,685
277,533
277,533
277,533
Army Reserve
306,642
347,607
347,607
347,607
Emerg. Approps.
361
—
—
—
(P.L. 109-148)
Total
307,003
347,607
347,607
347,607
Naval Reserve
189,141
208,838
208,838
208,838
Emerg. Approps.
1,053
—
—
—
(P.L. 109-148)
Total
190,194
208,838
208,838
208,838
Marine Corps Reserve
40,134
43,082
43,082
43,082
Air Force Reserve
69,357
76,218
76,218
76,218
Emerg. Approps.
85
—
—
—
(P.L. 109-148)
Total
69,442
76,218
76,218
76,218
Total
13,060,149
13,654,601
13,530,636
13,654,601
Note: Reserve Component (Reserve and National Guard) BAH is not listed as a separate line item in the Senate
Committee on Appropriations Report.

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CRS-26
Table 6c. DOD Facilities Sustainment, Restoration, & Modernization
(budget authority in $000)
FY2006
FY2007
House
Senate
Conf.
Enacted
Request
Army
1,832,607
1,810,774
1,810,774
1,780,774
Navy
1,331,521
1,201,313
1,201,313
1,208,313
Emerg. Approps.
215,499
—
—
—
(P.L. 109-148)
Total
1,547,020
1,201,313
1,201,313
1,201,313
Marine Corps
548,420
473,141
473,141
473,141
Air Force
1,827,246
1,684,019
1,684,019
1,511,019
Emerg. Approps.
69,005
—
—
—
(P.L. 109-148)
Total
1,896,251
1,684,019
1,684,019
1,511,019
Defense-Wide
115,731
86,386
86,386
86,386
Emerg. Approps.
5,238
—
—
—
(P.L. 109-148)
Total
120,969
86,386
86,386
86,386
Army National Guard
392,579
387,882
387,882
387,882
Emerg. Approps.
49,217
—
—
—
(P.L. 109-148)
Total
441,796
387,882
387,882
387,882
Air National Guard
177,993
255,322
255,322
175,122
Emerg. Approps.
13,557
—
—
—
(P.L. 109-148)
Total
191,550
255,322
255,322
175,122
Army Reserve
202,326
215,890
215,890
215,890
Emerg. Approps.
1,128
—
—
—
(P.L. 109-148)
Total
203,454
215,890
215,890
215,890
Naval Reserve
67,110
52,136
52,136
101,524
Emerg. Approps.
310,024
—
—
—
(P.L. 109-148)
Total
377,134
52,136
52,136
101,524
Marine Corps Reserve
10,004
9,579
9,579
9,579
Emerg. Approps.
1,094
—
—
—
(P.L. 109-148)
Total
11,098
9,579
9,579
9,579
Air Force Reserve
49,860
59,849
59,849
59,849
Emerg. Approps.
1,917
—
—
—
(P.L. 109-148)
Total
51,777
59,849
59,849
59,849
Total
7,222,076
6,236,291
6,236,291
6,009,479
Note: Defense-Wide FSRM is not broken out in the Senate report and is estimated.

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CRS-27
Table 6d. DOD Environmental Remediation
(budget authority in $000)
FY2006
FY2007
House
Senate
Conf.
Enacted
Request
Army
403,786
413,794
413,794
413,794
Navy
302,222
304,409
304,409
304,409
Air Force
402,396
423,871
423,871
423,871
Defense-Wide
27,885
18,431
18,431
18,431
Formerly Used Defense Sites
254,352
242,790
257,790
257,790
(FUDS)
Total
1,390,641
1,403,295
1,418,295
1,418,295
Table 6e. DOD Health Program
(budget authority in $000)
FY2006
FY2007
House
Senate
Conf.
Enacted
Request
Operation and Maintenance
19,106,789 20,498,163
20,218,205
20,544,605
Rescissions
—
—
(40,042)
—
Emerg. Approps.
120,000
—
—
—
(P.L. 109-148)
Emerg. Approps.
172,958
—
—
—
(P.L. 109-148)
Total
19,399,747
20,498,163
20,178,163
20,544,605
Procurement
375,328
396,355
402,855
397,355
Emerg. Approps.
28,592
—
—
—
(P.L. 109-148)
Total
403,920
396,355
402,855
397,355
Research and Development
536,883
130,603
444,103
467,903
Total, Defense Health
20,340,550
21,025,121
21,025,121
21,409,863
Table 6f. DOD Military Totals
(budget authority in $000)
FY2005
FY2006
Account
House
Senate
Conf.
Enacted
Request
Total, Department of Defense, Military
New Budget Authority
56,046,148
59,026,539
58,077,324
58,763,794

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CRS-28
Table 7. 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
37,088
Foreign Currency Fluctuations
15,098
4,900
4,900
4,900
Total
50,986
40,738
41,988
41,988
U.S. Court of Appeals for Veterans Claims
Salaries and Expenses
18,607
19,790
19,790
19,790
Department of Defense-Civil
Cemeterial Expenses, Army
28,760
26,550
26,550
26,550
Armed Forces Retirement Home
Operation and Maintenance
56,463
54,846
54,846
54,846
Capital Program
1,236
—
—
—
Emerg. Approps.
65,800
—
—
—
(P.L. 109-148)
Emerg. Approps.
176,000
—
—
—
(P.L. 109-234)
Total
299,499
54,846
54,846
54,846
Total, Agencies
397,852
141,924
143,174
143,174

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CRS-29
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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