Order Code RL34558
Military Construction, Veterans Affairs, and
Related Agencies: FY2009 Appropriations
July 7, 2008
Daniel H. Else
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Christine Scott
Specialist in Social Policy
Domestic Social Policy Division
Sidath Viranga Panangala
Analyst in Veterans Policy
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 and Senate
Military Construction, Veterans Affairs, and Related Agencies 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, Veterans Affairs, and Related
Agencies: FY2009 Appropriations
Summary
The President submitted his FY2009 appropriations request to Congress on
February 4, 2008, including $115.3 billion for programs covered in this
appropriations bill: $24.4 billion for Title I (military construction and family
housing); $90.8 billion for Title II (veterans affairs); and $183 million for Title III
(related agencies). Compared with funding thus far appropriated for FY2008
(emergency supplemental appropriations are pending), this represents increases for
Title I of $3.8 billion (18.3%), for Title II of $3.2 billion (3.6%), and for Title III of
$16.7 million (10.1%). The overall increase in appropriations between that requested
for FY2009 and enacted for FY2008 is $7.0 billion (6.4%).
The House Committee on Appropriations reported its version of the FY2009
Military Construction, Veterans Affairs and Related Agencies appropriations bill on
June 24, 2008. The bill’s legislative path is laid out in detail in the Fiscal Year 2009
Appropriations section of this report.
The House committee recommended appropriating $118.7 billion in new budget
authority, $3.4 billion above the President’s request. This included $24.8 billion for
Title I, $400 million above the request and $4.2 billion above the FY2008 enactment.
In the area of veterans’ non-medical benefits, mandatory spending is increasing
as claims for disability compensation, pension, and readjustment benefits increase
due to a combination of several factors including the aging of the veterans population
and the current conflicts in Iraq and Afghanistan. As a result of the increase in the
number of claims, the average processing time for a disability claim in FY2007 was
183 days. To reduce the pending claims workload and improve the claims processing
time, funds were provided in the FY2008 appropriation for hiring and training
additional claims processing staff. In FY2008 mandatory spending was $44.5 billion,
increasing to $46.0 billion in FY2009.
In terms of medical care afforded to veterans, similar to the past six years, the
Administration has included several cost sharing proposals including increase in
pharmacy copayments and enrollment fees for lower priority veterans. An additional
proposal would bill veterans directly for treatment of nonservice-connected
conditions. The House Appropriations Committee draft bill provides $40.8 billion
for Veterans Health Administration for FY2009, a 9.6% increase over the FY2008
enacted amount of $37.2 billion, and 4.1% above the President’s request of $39.2
billion. The draft bill does not include any provisions that would give the Department
of Veterans Affairs the authority to implement fee increases. This report will be
updated as events warrant.

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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
Valerie Bailey Grasso
7-7617
vgrasso@crs.loc.gov
Base Closure
Daniel H. Else
7-4996
delse@crs.loc.gov
Stephen Daggett
7-7642
sdaggett@crs.loc.gov
Defense Budget
Amy Belasco
7-7627
abelasco@crs.loc.gov
Pat Towell
7-2122
ptowell@crs.loc.gov
Legal Issues
R. Chuck Mason
7-9294
rcmason@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
David F. Burrelli
7-8033
dburrelli@crs.loc.gov
Personnel
Charles A. Henning
7-8866
chenning@crs.loc.gov
Military
Personnel;
Lawrence Kapp
7-7609
lkapp@crs.loc.gov
Reserves
Related Agencies
Christine Scott
7-7366
cscott@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
Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Fiscal Year 2009 Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Appropriations Subcommittee Jurisdiction Realignment, 110th Congress,
1st Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Appropriations for Fiscal Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Regular Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
FY2008 Emergency Supplemental Request for the Global War on
Terror . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Second FY2008 Supplemental Appropriations for Military
Operations, International Affairs, and Other Purposes . . . . . . . . . 4
Executive Order 13457 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Title I: Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Key Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Base Realignment and Closure (BRAC)/Integrated Global Presence
and Basing Strategy (IGPBS)/Global Defense Posture
Realignment (GDPR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
“Growing the Force” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Overseas Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Title II: Department of Veterans Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Agency Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Key Budget Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Title III: Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
American Battle Monuments Commission . . . . . . . . . . . . . . . . . . . . . . . . . 18
U.S. Court of Appeals for Veterans Claims . . . . . . . . . . . . . . . . . . . . . . . . . 19
Department of Defense - Civil (Army Cemeterial Expenses) . . . . . . . . . . . 19
Armed Forces Retirement Home (AFRH) . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Appendix A. Consolidated Non-VA Funding Tables . . . . . . . . . . . . . . . . . . . . . 21
Appendix B. Additional Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Selected Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
List of Figures
Figure 1. New Budget Authority Estimates, BRAC 2005 Implementation . . . . . . 9

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List of Tables
Table 1a. Status of FY2009 Military Construction, Veterans Affairs, and
Related Agencies Appropriations (H.R. — ) . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 1b. Status of FY2009 National Defense Authorization
(H.R. 5658, S. 3001) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2. Second FY2008 Supplemental (P.L. 110-252) . . . . . . . . . . . . . . . . . . . . 5
Table 3. IGPBS/GDPR One-Time Implementation Costs . . . . . . . . . . . . . . . . . . 10
Table 4. Department of Veterans Affairs Appropriations, FY2002-FY2008 . . . 12
Table 5. Appropriations: Department of Veterans Affairs, FY2008-FY2009 . . 13
Table 6. Mandatory and Discretionary Appropriations: Department of Veterans
Affairs, FY2008-FY2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 7. Appropriations: Related Agencies, FY2008-FY2009 . . . . . . . . . . . . . . 20
Table 8. DOD Military Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Military Construction, Veterans Affairs, and
Related Agencies:
FY2009 Appropriations
Most Recent Developments
The House Committee on Appropriations Subcommittee on Military
Construction, Veterans Affairs and Related Agencies marked its bill on June 12,
2008. The full committee marked the bill on June 24, 2008, adopting the measure by
voice vote. Floor action is not expected until after the week-long recess in early July.
The Senate subcommittee has scheduled the markup of its own version of the
bill for July 17, 2008.
A detailed description of the legislative path for the appropriations bill, the
accompanying national defense authorization bills, and other associated legislation
can be found in the section of this report entitled Fiscal Year 2009 Appropriations.

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CRS-2
Status of Legislation
Table 1a. Status of FY2009 Military Construction,
Veterans Affairs, and Related Agencies Appropriations
(H.R. — )
Committee
Conference
Markup
House
House
Senate
Senate
Conf.
Report Approval
Public
Report
Passage
Report
Passage
Report
Law
House
Senate
House
Senate
06/24/08
—
—
—
—
—
—
—
—
—
Table 1b. Status of FY2009 National Defense Authorization
(H.R. 5658, S. 3001)
Committee
Conference
Markup
House
House
Senate
Senate
Conf.
Report Approval
Public
Report
Passage
Report
Passage Report
Law
House
Senate
House
Senate
H.Rept.
S.Rept.
05/14/08 05/12/08
05/22/08
—
—
—
—
—
110-652
110-335
Summary and Key Issues
Fiscal Year 2009 Appropriations
The President submitted his FY2009 appropriations request to Congress on
February 4, 2008. The House Committee on Appropriations Subcommittee on
Military Construction, Veterans Affairs, and Related Agencies, chaired by
Representative Chet Edwards (17th Congressional District of Texas), began its series
of hearings on February 14 by addressing requested appropriations for the
Department of Veterans Affairs (DVA). Subsequent hearings focused on the small
agencies funded by the appropriation, the DVA’s Office of Inspector General,
veterans’ medical care, military construction for the Departments of the Army, Navy,
Air Force, and Defense, the Central, European, and Pacific combatant commands,
and DVA’s use of information technology. House subcommittee hearings ended on
April 10 with the European Command presentation.1
The Senate subcommittee, chaired by Senator Tim Johnson (South Dakota),
held two hearings. The first, concerned with the DVA request, convened on April 10.
The second, on military construction, took place on April 24, 2008.
1 The Related Agencies funded by this appropriation include the American Battlefield
Monuments Commission, the U.S. Court of Appeals for Veterans Claims, Arlington
National Cemetery and the Soldiers’ and Airmen’s Home National Cemetery, and the
Armed Forced Retirement Home.

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CRS-3
The House subcommittee marked its bill on June 12, adopting the mark by voice
vote. The full committee mark took place on June 24, 2008, and was also adopted by
voice vote.
The Senate subcommittee markup is scheduled for July 17, 2008.
Passage and enactment of a final appropriation, though, may be delayed. Recent
press accounts suggest that a number of appropriations bills, this included, may be
held until the 111th Congress convenes in January 2009.2 Should a regular
appropriation not be enacted prior to the end of FY2008, funding to extend
operations may be effected through one or more continuing resolutions.
Appropriations Subcommittee Jurisdiction Realignment,
110th Congress, 1st Session
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.
As a result, non-construction quality-of-life defense appropriations that had been
considered in the House version of this appropriations bill during the 109th Congress,
including Facilities Sustainment, Restoration, and Modernization, Basic Allowance
for Housing, Environmental Restoration, and the Defense Health Program, were
transferred to the jurisdiction of the House Committee on Appropriations
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.
Appropriations for Fiscal Year 2008
Regular Appropriations. The Military Construction, Veterans Affairs and
Related Agencies Appropriations Act (H.R. 2642) was introduced in the House on
May 22, 2007. Passed by the House on June 15,it was extensively amended by the
Senate and adopted on September 6. A conference convened in early November,
when the bill was inserted into the Labor-HHS-Education appropriations bill (H.R.
3043) as its Division B. Division B was struck from H.R. 3043 on November 7,
2007, when a point of order was raised on the Senate floor.3
2 Manu Raju, “Approps Bills May Wait,” The Hill, July 2, 2008, p. 1.
3 Federal funding through the first several months of FY2008 was sustained by a series of
continuing resolutions. For more detailed discussion of the legislative history of FY2008
appropriations, see CRS Report RL34038, Military Construction, Veterans Affairs, and
Related Agencies: FY2008 Appropriations, by Daniel H. Else, Christine Scott, and Sidath
Viranga Panangala.

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CRS-4
The appropriations bill was eventually bundled with others and added to the
existing State Foreign Operations and Related Activities appropriations bill (H.R.
2764) as Division I of what then became the Consolidated Appropriations Act for
Fiscal Year 2008. H.R. 2764 was enacted by the President on December 26, 2007,
as P.L. 110-161. H.R. 2642 was later amended to become the Second FY2008
Supplemental Appropriations for Military Operations, International Affairs, and
Other Purposes (see below).
FY2008 Emergency Supplemental Request for the Global War on
Terror. In February 2007, coincident with its annual request for FY2008
appropriations, DOD submitted a supplemental request for $141.7 billion dedicated
primarily, but not exclusively, to funding continued military operations in Iraq and
Afghanistan. Additional requests transmitted to Congress in July and October 2007
brought total supplemental funding to $189.3 billion.4
Some construction was covered by these funds. These included new or
upgraded facilities in direct support of military units deployed in Kygyzstan,
Afghanistan, Iraq, Kuwait, and Qatar. Additional construction funds were dedicated
to building a new headquarters in Djibouti, Africa, and facilities at a number of
installations across the United States. Funding for the realignment of Walter Reed
Army Medical Center in the District of Columbia, part of the implementation of the
2005 Base Realignment and Closure (BRAC) round, and an addition to the Burn
Rehabilitation Unit at the Brooke Army Medical Center, Ft. Sam Houston, Texas,
was also part of the supplemental request.
Second FY2008 Supplemental Appropriations for Military
Operations, International Affairs, and Other Purposes. H.R. 2642, the
Military Construction, Veterans Affairs, and Related Agencies Appropriations Act,
was reintroduced to the House in mid-May 2008 and reconstituted as a second
supplemental appropriation for FY2008. After debate and amendment by both
chambers, the supplemental appropriation was presented to the President on June 27,
2008, and signed into law on June 30 as P.L. 110-252.5
The act provides additional funds for a number of accounts related to military
construction and veterans’ affairs, as delineated in Table 2:6
4 For further information, see CRS Report RL34278, FY2008 Supplemental Appropriations
for Global War on Terror Military Operations, International Affairs, and Other Purposes,
by Stephen Daggett, Susan B. Epstein, Rhoda Margesson, Curt Tarnoff, and Pat Towell.
5 For additional information, see CRS Report RL34451, Second FY2008 Supplemental
Appropriations for Military Operations, International Affairs, and Other Purposes, by
Stephen Daggett, Susan B. Epstein, Rhoda Margesson, Curt Tarnoff, Pat Towell, Catherine
Dale, and Shannon S. Loane.
6 Amounts are drawn from the legislation. Most of these funds may be obligated through
September 30, 2009 (i.e., throughout FY2009). Some construction funding remains available
through September 30, 2012, while the remainder is so-called “no year” dollars, which are
available until expended.

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CRS-5
Table 2. Second FY2008 Supplemental (P.L. 110-252)
(budget authority in thousands)
Account
Request
Enacted
Military Construction, Army
1,486,100
1,108,200
Military Construction, Army (barracks

200,000
improvement)
Military Construction, Navy and Marine
360,257
355,907
Corps
Military Construction, Air Force
409,627
399,627
Military Construction, Defense-Wide
27,600
890,921
Family Housing Construction, Navy and
11,766
11,766
Marine Corps
Base Realignment and Closure (BRAC)
1,202,886
1,278,886
2005
Total, Military Construction
3,498,236
4,245,307
General Administration Expenses
100,000
100,000
Information Technology Systems
20,000
20,000
Construction
396,377
396,377
Total, Veterans Affairs
516,377
516,377
Note: Second Supplemental amounts are not included in subsequent appropriations tables.
Executive Order 13457
Congress typically funds this act by appropriating directly to broadly defined
appropriations accounts, such as Military Construction — Army or Family Housing
— Air Force. These appropriations have typically been stated within the statutory
language of the act itself. Nevertheless, within the budget documentation that the
President submits to Congress each year are hundreds of detailed justifications for
individual construction projects at specified locations for stated purposes in
established funding amounts. The appropriations and authorization committees
consider each of these as individual requests and indicate their approval, disapproval,
or additions to the project lists in the explanatory statements reported to their
respective chambers. While it is generally recognized by legal experts that statutory
language (provisions stated in the body of legislation passed by Congress and enacted
by the President) carries the full weight of law, the legal standing of statements
contained within what is generally considered supporting language, such as
explanatory statements written into reports to the chambers by members of
committees, is less clear.

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CRS-6
On January 29, 2008, President George W. Bush issued Executive Order (E.O.)
13457, titled “Protecting American Taxpayers From Government Spending on
Wasteful Earmarks.” In that E.O., the President stated, in part, that:
For appropriations laws and other legislation enacted after the date of this order,
executive agencies should not commit, obligate, or expend funds on the basis of
earmarks included in any non-statutory source, including requests in reports of
committees of the Congress or other congressional documents, or
communications from or on behalf of Members of Congress, or any other
non-statutory source, except when required by law or when an agency has itself
determined a project, program, activity, grant, or other transaction to have merit
under statutory criteria or other merit-based decisionmaking.7
The impact of E.O. 13457 on appropriation or implementation practices of
either the executive or the legislative branches is unclear. For example, the order
states that “executive agencies should [emphasis added] not commit, obligate, or
expend funds ...” under certain circumstances. In law, “should” is interpreted as non-
binding guidance to those to whom it is addressed. However, in a subsequent section
of the E.O., the President directs that “the head of each agency shall [emphasis
added] take all necessary steps ...” to implement the policy according to certain
criteria that he then lays out. It should be noted that “shall” is a much stronger,
directive term. The E.O. applies only to appropriations enacted after January 29,
2008, and will therefore not affect any existing or prior-year appropriation.
The E.O. does not appear to bar the implementation of congressionally directed
funding in cases where spending is “required by law or when an agency has itself
determined a project, program, activity, grant, or other transaction to have merit
under statutory criteria or other merit-based decisionmaking.” Examples of such a
situation have existed where particular construction projects have been directed in
the text of previously enacted authorization acts. The President’s order also allows
agency heads to “consider the views of a House, committee, Member, officer, or staff
of the Congress with respect to commitments, obligations, or expenditures to carry
out any earmark” when “such views are in writing....”
In addition, the definition of an “earmark” written into the E.O. may reduce
somewhat the clarity of exactly what spending is to be avoided. That definition states
that earmarks are “purported congressional direction (whether in statutory text, report
language, or other communication) [that] circumvents otherwise applicable
merit-based or competitive allocation processes, or specifies the location or
recipient” (emphasis added).8 While much of the E.O. stresses the necessity of
7 The President defines “earmark” as “funds provided by the Congress for projects,
programs, or grants where the purported congressional direction (whether in statutory text,
report language, or other communication) circumvents otherwise applicable merit-based or
competitive allocation processes, or specifies the location or recipient, or otherwise curtails
the ability of the executive branch to manage its statutory and constitutional responsibilities
pertaining to the funds allocation process.” The full text of E.O. 13457 can be found online
at [http://www.whitehouse.gov/news/releases/2008/01/20080129-5.html].
8 Legal interpretation in this section has been assisted by CRS Legislative Attorney R.
(continued...)

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CRS-7
adhering to the letter of the law, this definition could be interpreted as preventing an
agency from observing some statutory text.
More generally, the E.O. may raise a number of other questions regarding future
expenditure of appropriated funds. Two examples are suggested below.
1. There are instances where a construction project is not stated within the statutory
text of the law in question, but rather is referenced in the text of another. An example
might be a statutory requirement for the Department of Veterans Affairs to construct
a number of cemeteries for the use of veterans at specified locations for which
appropriations are not provided until a number of years later.9 Would the E.O. bar the
initiation of construction until such a statutory link is found and proven to
unambiguously cover each project?
2. The E.O. grants agency heads the authority to accept congressionally directed
funding when a project has “merit under statutory criteria or other merit-based
decisionmaking,” or when considering “the views of a House, committee, Member,
officer, or staff of the Congress ... when such views are in writing....” Do these
provisions constitute a broad discretion on the part of agency heads to accept
congressional guidance on spending?
In drafting its version of the FY2009 appropriations bill, the House committee
clarified the status of congressionally directed spending within the context of the
Executive Order by referencing the list of construction projects within the statute. For
each appropriation account for which specific construction projects are identified in
the committee report, the proposed legislation states, “That the amount appropriated
in this paragraph shall be for the projects and activities, and in the amounts, specified
under the headings ... in the table entitled ... in the report of the Committee on
Appropriations of the House of Representatives to accompany this bill.”10
8 (...continued)
Chuck Mason.
9 Other instances where text outside of an appropriations act may be considered as legally
binding can occur when Congress incorporates language such as “shall be effective as if
enacted by law,” or “in accordance with” into statute.
10 In the FY2009 House bill, the referenced accounts include Military Construction, Army;
Military Construction, Navy; Military Construction, Air Force; Military Construction,
Defense-Wide; Military Construction, Army National Guard; Military Construction, Air
National Guard; Military Construction, Army Reserve; Military Construction, Navy
Reserve; Military Construction, Air Force Reserve; Family Housing Construction, Army;
Family Housing Construction, Navy and Marine Corps; Family Housing Construction, Air
Force; and Chemical Demilitarization Construction, Defense-Wide.

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CRS-8
Title I: Department of Defense
Military Construction
Military construction accounts provide funds for new construction, construction
improvements, planning and design, and host nation support of active and reserve
military forces and Department of Defense agencies. The North Atlantic Treaty
Organization Security Investment Program (NSIP) is the U.S. contribution to defray
the costs of construction (airfields, fuel pipelines, military headquarters, etc.) needed
to support major NATO commands. Family housing accounts fund new construction,
construction improvements, federal government costs for family housing
privatization, maintenance and repair, furnishings, management, services, utilities,
and other expenses incurred in providing suitable accommodation for military
personnel and their families where needed.
The DOD Housing Improvement Fund is the vehicle by which funds, both
directly appropriated and transferred from other accounts, support military housing
privatization. The Homeowners Assistance Fund provides relief to federal personnel
stationed at or near an installation scheduled for closure or realignment who are
unable to sell their homes. The Chemical Demilitarization Construction, Defense-
Wide, account provides for the design and construction of disposal facilities required
for the destruction of chemical weapons stockpiles. The Base Realignment and
Closure Account 1990 funds the remaining environmental remediation requirements
(including the disposal of unexploded ordnance) arising from the first four base
realignment and closure (BRAC) rounds (1988, 1991, 1993, and 1995). The Base
Realignment and Closure Account 2005 provides funding for the military
construction, relocation, and environmental requirements of the implementation of
both the 2005 BRAC round and the DOD Integrated Global Presence and Basing
Strategy/Global Defense Posture Realignment (military construction only).
Key Budget Issues
Several issues regarding military construction funding may be of interest to
some Members in their consideration of the Fiscal Year 2009 appropriation request.
Funding of the various accounts included under Title I (Department of Defense) is
listed in Table 8 of Appendix A to this report.
Base Realignment and Closure (BRAC)/Integrated Global Presence
and Basing Strategy (IGPBS)/Global Defense Posture Realignment
(GDPR).
Cost of Implementation. In its appropriations request for Fiscal Year 2007,
DOD estimated that the total one-time implementation between 2006 and 2011 of the
2005 BRAC round (the realignment and closure of a number of military installations
on United States territory) and the Integrated Global Presence and Basing Strategy

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CRS-9
(IGPBS, the redeployment of 60,000 - 70,000 troops and their families from overseas
garrisons to bases within the United States) would cost $17.9 billion.11
Between the submission of that request in February 2006 and submission of the
Fiscal Year 2008 BRAC funding request a year later, DOD advanced its planning for
the execution of all military construction, movement of facilities, and relocation of
personnel necessary to carry out the approved recommendations of the 2005 BRAC
Commission. This revision caused the estimate of one-time implementation cost to
rise to more than $30.7 billion, due principally to significantly higher implementation
cost estimates for Fiscal Years 2008-2011. The same estimate made by DOD in
February 2008 for the FY2009 appropriations request rose again, now totaling $32.0
billion. Figure 1 compares DOD BRAC 2005 new budget authority requirement
estimates made for FY2007, FY2008, and FY2009.12
Figure 1. New Budget Authority Estimates, BRAC 2005
Implementation
10,000
)
n
9,065
9,000
illio
8,000
M
$
8,174
7,912
7,000
(
y
6,000
rit
5,623
o
5,626
5,696
5,473
5,558
5,000
th
4,000
Au
3,000
et
g
2,996
2,071
2,104
d
2,000
u
1,502
1.489
1,563
1,000
w B
0
484
Ne
2006
2007
2008
2009
2010
2011
Fiscal Ye ar
F Y 2007 Es t.
F Y 2008 Es t.
F Y 2009 Es t.
Sources: DOD Budget Justification Documents for FY2007, FY2008, and FY2009
Although the BRAC 2005 account pays for buildings, moving, cleanup, and the
like, the most significant factor driving implementation cost estimates for the peak
years (originally FY2007 and FY2008, and later FY2008 and FY2009) is military
construction. This wavelike cost profile is characteristic of BRAC rounds and is
produced by the combined effects of the six-year statutory deadline for completing
BRAC implementation and the need to commit funds for the execution of
11 The DOD Integrated Global Presence and Basing Strategy (IGPBS) has been renamed the
Global Defense Posture Realignment (GDPR).
12 Office of the Under Secretary of Defense (Comptroller), National Defense Budget
Estimates for FY 2008, Department of Defense, March 2007. A thorough discussion of the
defense budget, including definition of budget-related terms such as “new budget authority,”
can be found in CRS Report RL30002, A Defense Budget Primer, by Mary T. Tysziewicz
and Stephen Daggett.

---

CRS-10
construction contracts at least two to three years before new building can be accepted
and occupied.
Force Redeployment to United States Territory. The one-time
implementation costs to carry out the President’s redeployments to new garrisons on
United States territory are included within the BRAC 2005 cost estimate. Table 3
displays DOD cost during the six-year BRAC implementation. This shows that
$495.3 million of the $9.1 billion (5.5%) of the FY2009 BRAC 2005 appropriation
request is devoted to the IGPBS/GDPR redeployment.13
Table 3. IGPBS/GDPR One-Time Implementation Costs
(budget authority in millions)
BRAC 2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
Total
Subaccount
Military
344.6
881.8
682.7
439.0
272.0
0.0
2,612.1
Construction
Environment
0.8
0.0
0.0
0.0
0.0
0.0
0.8
Ops. &
6.7
20.1
67.2
55.9
57.4
134.8
342.1
Maint.
Other
0.0
14.3
26.2
8.4
16.5
8.8
74.1
Budget
352.0
916.1
776.1
495.3
345.9
143.6
3,029.0
Request
Source: DOD FY2009 Army Budget Justification Documentation.
Note: The Department of the Army segregates funds into One-Time Implementation Costs, Recurring
Costs, One-Time Savings, and Recurring Savings in calculating the net cost of IGPBS/GDPR. This
table presents only One-Time Implementation Costs. Budget Request may not add precisely due to
rounding.
“Growing the Force”. DOD is planning to increase the end strength of the
regular Army by 65,000 soldiers and Marine Corps by 27,000 Marines and the Army
National Guard and Army Reserves by an additional 9,200 citizen-soldiers by 2012.
This will require additional military construction to accommodate, train, and house
these personnel and their families.
DOD requested more than $3.7 billion in Fiscal Year 2007 emergency
supplemental and Fiscal Year 2008 military construction appropriations to support
this increase. The Congressional Budget Office has estimated that the additional
military construction cost between 2007 and 2013 of these soldiers and Marines will
total $15.7 billion, with the bulk of the appropriations required during Fiscal Years
2008-2010.14
Overseas Initiatives. While redeploying a number of troops to the United
States, DOD is also renegotiating the location and garrisoning of a number of its
remaining overseas installations. These efforts are principally focused on the Federal
Republic of Germany, Italy, the Republic of Korea, and Japan. In addition, a number
13 IGPBS/GDPR is wholly funded by the Department of the Army BRAC 2005 account.
14 Letter from Peter R. Orszag, Director, Congressional Budget Office, to the Hon. Carl
Levin, Chairman, Senate Committee on Armed Services, April 16, 2007, p. 8.

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CRS-11
of new, relatively austere, installations are being created in eastern Europe and in the
Pacific, Central, and Southern Command areas. The creation of Africa Command
(AFRICOM) under U.S. Army Gen. William E. “Kip” Ward may soon require the
construction of a number of minimally manned or unmanned “cooperative security
locations” at critical sites across the continent.15
In Germany, U.S. forces are continuing to consolidate at existing installations
in the south of the country, while the installation near Vicenza, Italy, is being
expanded in anticipation of the deployment of a modular brigade.
DOD and the Government of Japan have agreed to move approximately 8,000
Marines and 9,000 of their family members from bases on Okinawa to new facilities
in the U.S. territory of Guam. The construction costs associated with this move have
been estimated at $10 billion, and Japan has agreed to underwrite 60% of this
expense. The Departments of the Army, Navy, and Air Force have separately
initiated their own increase in presence on Guam, which is expected to add personnel
and family members to this total over the next several years. The Senate Committee
on Appropriations expressed concern that an expansion of this scale of U.S. forces
on the island would require the creation of a well-developed master plan for the
efficient use of the limited available land.16
The Government Accountability Office addressed the issue of DOD planning
for overseas installations in a report completed in September 2007.17 The report
concluded that although DOD had updated its overseas master plans, which lay out
projected infrastructure requirements at overseas military installations, the
Department had not sufficiently incorporated into its calculations the “residual value”
15 DOD defines and ranks its overseas installations by a three-tier system. A Cooperative
Security Location (CSL) is “A facility located outside the United States and U.S. territories
with little or no permanent U.S. presence, maintained with periodic Service [sic], contractor,
or host-nation support. Cooperative security locations provide contingency access, logistic
support, and rotational use by operating forces and are a focal point for security cooperation
activities.” A Forward Operating Site(FOS) is more substantial, being “A scaleable location
outside the United States and U.S. territories intended for rotational use by operating forces.
Such expandable ‘warm facilities’ may be maintained with a limited U.S. military support
presence and possibly pre-positioned equipment. Forward operating sites support rotational
rather than permanently stationed forces and are a focus for bilateral and regional training.”
The Main Operating Base (MOB) is “A facility outside the United States and U.S. territories
with permanently stationed operating forces and robust infrastructure. Main operating bases
are characterized by command and control structures, enduring family support facilities, and
strengthened force protection measures.” Joint Publication 1-02, Department of Defense
Dictionary of Military and Associated Terms, April 12, 2001 (as amended through May 30,
2008). This publication is available on the World Wide Web at [http://www.dtic.mil
/doctrine/jel/new_pubs/jp1_02.pdf].
16 Senate Committee on Appropriations, Military Construction and Veterans Affairs and
Related Agencies Appropriations Bill (S.Rept. 110-85), p. 14.
17 Government Accountability Office, Defense Infrastructure: Overseas Master Plans are
Improving, but DOD Needs to Provide Congress Additional Information about the Military
Buildup on Guam (GAO-07-1015), September 12, 1007.

---

CRS-12
of property being returned to host nations for reuse.18 GAO also noted that neither
DOD nor the military departments (Army, Navy, and Air Force) had yet finalized the
number or makeup of forces being transferred to Guam from Japan and the United
States. This meant that the housing, training and operational requirements, and
community impact of significant force relocation could not be estimated.19
U.S. forces in the Republic of Korea are in the process of shifting from sites
immediately along the Demilitarized Zone, at the frontier between that nation and the
Democratic People’s Republic of Korea (DPRK), and from a large headquarters
garrison in the capital of Seoul to expanded facilities further to the south. While the
bulk of construction cost will be borne by the Korean government, this initiative
could require as much as $750 million in U.S. construction funding to complete.
Title II: Department of Veterans Affairs
Table 4. Department of Veterans Affairs Appropriations,
FY2002-FY2008
(budget authority in billions)
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
VA
$52.38 $58.10 $61.84
$65.84
$71.46 $79.55
$87.60
Source: Amounts shown are from reports of the Appropriations Committees accompanying the
appropriations bills for the following years.
Agency Overview
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 spouses, dependents and beneficiaries. The VA has three primary
organizations to provide these benefits: the Veterans Benefits Administration
(VBA), the Veterans Health Administration (VHA), and the National Cemetery
Administration (NCA). Benefits available to veterans include service-connected
disability compensation; a pension for low-income veterans who are elderly or have
a nonservice-connected disability; vocational rehabilitation for disabled veterans;
medical care; life insurance; home loan guarantees; burial benefits; and educational
and training benefits to transition active servicemembers to civilian life.
18 GAO stated that compensation received for the residual value of returned real property
could affect overseas construction funding requirements.
19 Guam’s population is currently estimated at approximately 173, 400, or roughly 30% of
that of the District of Columbia on land area of 212 sq. mi., or about one-eighth (13.7%) that
of the State of Rhode Island. DOD reported that 2,828 active duty military personnel,
predominantly Air Force, were stationed in the territory as of June 27, 2007. The movement
of more than 17,000 military personnel and family members is therefore likely to have a
significant impact on surrounding communities.

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CRS-13
Table 5. Appropriations: Department of Veterans Affairs,
FY2008-FY2009
(budget authority in billions)
FY2009
FY2008
FY2009
Program
House
Enacted
Request
Committee
Compensation and pensions
$41.236
$43.112
$43.112
Readjustment benefits
3.300
3.087
3.087
Insurance and indemnities
0.041
0.042
0.042
Housing programs (net, indefinite)a
-0.090
-0.243
-0.243
Housing programs administration
0.155
0.158
0.158
Total, Veterans Benefits Administration (VBA)
44.643
46.155
46.155
National Cemetery Administration
0.167
0.181
0.240
Contingent emergency (P.L. 110-161)
0.028

Total, National Cemetery Administration (NCA)
0.195
0.181
0.240
Medical servicesb
27.168
34.076
30.854
Contingent emergency (P.L. 110-161)
1.937

Medical support and complianceb
3.442
b 4.400
Contingent emergency (P.L. 110-161)
0.075

Medical facilities
3.592
4.661
5.029
Contingent emergency (P.L. 110-161)
0.508

Medical and prosthetic research
0.411
0.442
0.500
Contingent emergency (P.L. 110-161)
0.069

Medical Care Collection Fundc
(Offsetting receipts)
-2.414
-1.879
-2.544
(Appropriations - indefinite)
2.414
1.879
2.544
Total, Veterans Health Administration (VHA)
37.201
39.179
40.783
Available to VHA (includes collections)c
39.615
41.058
43.327
General operating expensesd
1.472
1.700
1.802
Contingent emergency (P.L. 110-161)
0.133

Information technology
1.859
2.442
2.492
Contingent emergency (P.L. 110-161)
0.107

Inspector General
0.073
0.077
0.088
Contingent emergency (P.L. 110-161)
0.008

Construction, major projects
0.727
0.582
0.923
Contingent emergency (P.L. 110-161)
0.342

Construction, minor projects
0.233
0.329
.991
Contingent emergency (P.L. 110-161)
0.397

Grants for state extended care facilities
0.085
0.085
0.165
Contingent emergency (P.L. 110-161)
0.080

Grants for state veterans cemeteries
0.032
0.032
0.045
Contingent emergency (P.L. 110-161)
0.008

Total, Departmental Administration
5.556
5.246
6.507
Total, Department of Veterans Affairs
$87.595
$90.761
$93.685
Source: Table prepared by the Congressional Research Service based on reports of the House and
Senate Appropriations Committees, various fiscal years.
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.

---

CRS-14
b. The FY2009 request combined medical services and medical support and compliance.
c. Medical Care Collections Fund (MCCF) receipts are restored to the VHA as an indefinite
budget authority equal to the revenue collected.
d. Does not reflect a transfer in the FY2008 omnibus of $6 million of general operating expenses
to maintain funding for payments to state approving agencies at the FY2007 levels.
Note: Figures do not include Second Supplemental.

---

CRS-15
Table 6. Mandatory and Discretionary Appropriations:
Department of Veterans Affairs, FY2008-FY2009
(budget authority in billions)
FY2009 House
Program
FY2008 Enacted FY2009 Request
Committee
Mandatory
Benefits (VBA)
$44.488
$45.998
$45.998
Discretionary
Medical (VHA)
37.201
39.179
40.733
National Cemetery Administration
0.195
0.181
0.240
(NCA)
Departmental administration
5.556
5.246
6.557
Housing administration (VBA)
0.155
0.158
0.158
Total, discretionary
43.107
44.763
47.687
Total, Department of Veterans Affairs
$87.595
$90.761
$93.685
Percentages of Total
Mandatory
50.8%
50.7%
49.1%
Discretionary
49.2%
49.3%
50.9%
Source: Table prepared by the Congressional Research Service based on reports of the House and
Senate Appropriations Committees, various fiscal years.
Note: Figures do not include Second Supplemental.
Key Budget Issues
The FY2009 budget submitted by the Administration in February 2008 called
for funding VA at a level of $90.7 billion for FY2009 (see Table 6). This would be
an increase of $3.2 billion, or 3.6%, over the FY2008 appropriation (including the
contingent emergency funding).
One of the key issues for VA non-medical benefits has been the size of the
disability claims workload and the average time (183 days in FY2007)20 to process
claims. The U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007 (P.L. 110-28) provided additional funding
to the VA for resources to address the large number of pending claims and shorten
processing times. P.L. 110-28 provided an additional $60.75 million for hiring and
training of additional claims processing personnel, and $20.0 million for information
technology to support claims processing.
The FY2008 Omnibus (P.L. 110-161) provided $124.2 million for the hiring of
additional claims processors and $2.0 million for leasing office space for the new
hires. Additional funds were also provided to the Board of Veterans Appeals ($3.7
million) and the Office of General Council ($3.2 million) for additional personnel to
handle the increase in the number of appeals.
20 Department of Veterans Affairs, FY2008 Budget Submission, Summary - Volume 3, pg.
4B-6.

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CRS-16
The House Appropriations Committee bill provides $93.7 billion in FY2009
funding for the VA, an increase of $6.1 billion, or 7%, above the FY2008
appropriation (including the contingent emergency funding). The bill also provides
a large increase in FY2009 funding relative to the FY2008 appropriation for several
programs including:
! Minor construction — an increase of $361.0 million, or 57.2%
! Information technology — an increase of $525.6 million, or 26.7%
! Medical support and compliance — an increase of $883.0 million,
or 25.1%
! National Cemetery Administration — an increase of $45 million, or
23.1%; and
! Medical facilities — an increase of $929.0 million, or 22.7%.
As shown in Table 6, there is an almost equal split between mandatory and
discretionary funding for the VA. In the FY2008 appropriation, mandatory funding
was only slightly above discretionary funding. For the VA appropriation in the
House Appropriations Committee bill, discretionary funding is slightly above
mandatory funding.
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 FY2008, VHA operated 153
medical centers, 135 nursing homes, 795 ambulatory care and community based
outpatient clinics (CBOCs),21 and 232 Readjustment Counseling Centers (Vet
Centers).22 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
21 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. On June 26, 2008, VA announced that
it would be establishing 44 new CBOCs in FY2008 and FY2009. The new CBOCs are to
be located in: Marshall County, and Wiregrass, AL; Matanuska-Susitna Borough area, AK;
Ozark, and White County, AR; East Bay-Alameda County area, CA; Summerfield, FL;
Baldwin County, Coweta County, Glynn County, and Liberty County, GA; Miami County,
and Morgan County, IN; Wapello County, IA; Lake Charles, Leesville, Natchitoches, St.
Mary Parish, and Washington Parish, LA; Lewiston-Auburn area, ME; Douglas County,
and Northwest Metro, MN; Franklin County, MO; Rio Rancho, NM; Robeson County, and
Rutherford County, NC; Grand Forks County, ND; Gallia County, OH; Altus, Craig County,
Enid, and Jay, OK; Giles County, Maury County, and McMinn County, TN; Katy, Lake
Jackson, Richmond, Tomball, and El Paso County, TX; Augusta County, Emporia, and
Wytheville, VA; and Greenbrier County, WV.
22 New Vet Centers in 2008 are located in: Montgomery, AL; Fayetteville, AR; Modesto,
CA; Grand Junction, CO; Fort Myers, Melbourne, and Gainesville, FL; Macon, GA;
Manhattan, KS; Baton Rouge, LA; Cape Cod, MA; Saginaw and Escanaba, MI; Berlin, NH;
Las Cruces, NM; Binghamton, Middletown, Nassau County and Watertown, NY; Toledo,
OH; Du Bois, PA; Killeen, TX; and Everett, WA.

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CRS-17
Civilian Health and Medical Program of the Department of Veterans Affairs
(CHAMPVA).23 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 total amount requested by the Administration for VHA for FY2009 is $39.2
billion, a 2.0 billion increase in funding compared to the FY2008 enacted amount.
The total amount of funding that would be available for VHA under the President’s
budget proposal for FY2009, including third-party collections, is approximately
$41.1 billion. For FY2009, the Administration is requesting $34.1 billion for
medical services, an approximately $5.0 billion, or17%, increase in funding over the
FY2008 enacted amount. However, it should be noted that this amount includes
funding for the medical administration account which the Administration is
proposing to consolidate with the medical services account. The President’s budget
also is requesting $4.6 billion for medical facilities, and $442 million for medical and
prosthetic research.
As in FY2003, FY2004, FY2005, FY2006, FY2007, and FY2008 the
Administration has included several cost sharing proposals. The first proposal is the
tiered annual enrollment fee for all enrolled Priority Group 7 and Priority Group 8
veterans, which is structured to charge $250 for veterans with family incomes from
$50,000 to $74,999; $500 for those with family incomes from $75,000 to $99,999;
and $750 for those with family incomes equal to or greater than $100,000.
According to the VA, this proposal would increase government revenue by $129
million beginning in FY2010, and by $514 million over five years.
The Administration is proposing to increase the pharmacy copayments from $8
to $15 for all enrolled Priority Group 7 and Priority Group 8 veterans, whenever they
obtain medication from VA on an outpatient basis for the treatment of a
nonservice-connected condition.24 The Administration put forward this proposal in
its FY2004, FY2005, FY2006, FY2007 and FY2008 budget requests as well, but did
not receive any approval from Congress. At present, veterans in Priority Groups 2-8
pay $8 for a 30-day supply of medication, including over-the-counter medications.
The VA estimates that this proposal would increase government revenue by $334
million beginning in FY2009, and by $1.6 billion over five years.
Lastly, the Administration is proposing to bill veterans directly for treatment
associated with nonservice-connected conditions. Presently, VA uses third-party
collections to satisfy veterans’ first party debt; that is, if VA treats an insured veteran
for a nonservice-connected disability, and the veteran is also determined by VA to
have copayment responsibilities, VA will apply each dollar collected from the
23 For further information on CHAMPVA see CRS Report RS22483, Health Care for
Dependents and Survivors of Veterans, by Sidath Viranga Panangala and Susan Janeczko.
24 The term “service-connected” means, with respect to disability, that such disability was
incurred or aggravated in the line of duty in the active military, naval, or air service. VA
determines whether veterans have service-connected disabilities, and for those with such
disabilities, assigns ratings from 0 to 100% based on the severity of the disability.
Percentages are assigned in increments of 10%.

---

CRS-18
insurer to satisfy the veteran’s copayment debt related to that treatment. The
Administration proposes eliminating this practice. According to the VA, this
proposal would increase government revenue by $44 million beginning in FY2009,
and by $215 million over five years. The President’s budget request amount for
medical services does not reflect these legislative proposals.
It should be noted that compared to previous budget proposals, the FY2009
budget proposals if implemented would deposit all collections in the U.S. Treasury
and not in the Medical Care Collections Fund (MCCF) as is the current practice with
regard to collections.25
The House Appropriations Committee passed version of the Military
Construction and Veterans Affairs Appropriations bill for FY2009 provides $40.7
billion for the VHA for FY2009. This amount includes $30.9 billion for medical
services, $1.8 billion (6%) over the FY2008 enacted amount of $29.1 billion. The
Committee-passed measure also includes $4.4 billion for medical support and
compliance (previously known as medical administration), $883 million (25%) above
the FY2008 enacted amount of $3.5 billion; $5.0 billion for medical facilities, a
7.8% increase over the President’s request of $4.7billion; and $500 million for
medical and prosthetic research, a 13.1% increase over the President’s request of
$442 million. The House-passed version of the Military Construction and Veterans
Affairs Appropriations bill for FY2009 did not include any bill language authorizing
fee increases as requested by the Administration’s budget proposal for VHA for
FY2009.
Of the amount recommended by the House Appropriations Committee for the
medical services account, $3.8 billion is for specialty mental health care, $584
million is for the substance abuse program, $568 million is to increase the number
of Priority 8 enrollment by 10 percent, and $100 million is to increase the mileage
reimbursement rate from 28.5 cents a mile to 41.6 cents a mile.
Title III: Related Agencies
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
cemeteries and memorials in foreign countries. The Commission maintains 24
25 VA deposits into MCCF copayments collected from veterans obligated to make such
payments for either medical services or inpatient pharmacy benefits for outpatient
medication, and third-party insurance payments from service-connected veterans for
nonservice-connected conditions. These collected funds do not have to be spent in any
particular fiscal year and are available until expended.

---

CRS-19
cemeteries, 22 separate monuments and markers in foreign countries, and 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 also undertook construction of
an Interpretive Center at the Normandy American Cemetery in Normandy, France,
to commemorate the World War II Allied invasion of France on June 6, 1944, and
the subsequent land battles in Europe. The new facility opened 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’ Administration Adjudication Procedure and Judicial Review Act of 1988
(P.L. 100-687). 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 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 VA 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 as the current lease
expires in September 2010. The Court’s major operational initiative is to continue
and develop plans, with the General Services Administration, for a Veterans’
Courthouse and Justice Center.
Department of Defense - Civil (Army Cemeterial Expenses)
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 3,200 non-funeral ceremonies each year and
has approximately 4,000,000 visitors annually.
The FY2008 Omnibus (P.L. 110-161) included additional funds in FY2008 for
realignment of government-issued headstones, construction of a heavy equipment
storage facility, and funds for costs not included in the budget request related to the
relocation of utilities at Arlington Cemetery.
Armed Forces Retirement Home (AFRH)
The Armed Forces Retirement Home Trust Fund provides funds to operate and
maintain the Armed Forces Retirement Home in Washington, DC (also known as the
United States Soldiers’ and Airmen’s Home) and the Armed Forces Retirement

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CRS-20
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 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. Residents of the facility were transferred to the Washington, DC,
location immediately after the storm. A Memorandum of Understanding (MOU) was
signed between the AFRH and the General Services Administration (GSA) for the
rebuilding of the Gulfport facility, with a targeted completion date in 2010.
The appropriation for the AFRH facilities is from the Armed Forces Retirement
Home Trust Fund. The trust fund 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 FY2008 Omnibus (P.L. 110-161) provided $800,000 in general
funds for the study of the long-term viability of the trust fund.
The budget request for FY2009 includes funds for renovation of the Scott
Dormitory Building for residents on the D.C. campus. The renovations are
scheduled to begin in 2010, so the new Gulfport facility can be used to house the
D.C. residents displaced by the renovations.
Table 7. Appropriations: Related Agencies, FY2008-FY2009
(budget authority in thousands)
FY2009
FY2008
FY2009
Account
House
Enacted
Request
Committee
American Battle Monuments Commission (ABMC)
Salaries and expenses
$44.600
$64.570
$55.470
Foreign currency fluctuations account
11.000
0.000
17.100
Total, ABMC
55.600
64.570
72.570
U.S. Court of Appeals for Veterans Claims
Salaries and expenses
22.717
23.975
73.975
Army Cemeterial Expenses
Salaries and expenses
31.230
31.230
31.230
Armed Forces Retirement Home (AFRH)
Operation and maintenance
55.724
63.010
63.010
General Fund Appropriation
0.800
Total, AFRH
56.524
63.010
63.010
Total, All Related Agencies
$166.071
$182.785
$240.785
Source: Table prepared by the Congressional Research Service based on reports of the House and Senate
Appropriations Committees, various fiscal years.
Note: Figures do not include Second Supplemental.

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CRS-21
Appendix A. Consolidated Non-VA Funding Tables
Table 8. DOD Military Construction
(budget authority in $000)
FY2009
FY2007
FY2008
FY2009
FY2009
FY2009
Account
House
Enacted
Enacted
Request
Senate
Enacted
Committee
Military Construction,
3,330,031
3,936,583
4,615,920
4,801,536
—
—
Army
Rescissions
—
(8,690)
—
(51,320)
—
—
Total
3,330,031
3,927,893
4,615,920
4,750,216
—
—
Military Construction,
1,565,407
2,198,394
3,096,399
3,280,809
—
—
Navy and Marine Corps
Rescissions
—
(10,557)
—
—
—
—
Total
1,565,407
2,187,837
3,096,399
3,208,809
—
—
Military Construction,
1,154,756
1,159,747
934,892
976,524
—
—
Air Force
Rescissions
—
(10,470)
—
(17,681)
—
—
Total
1,154,756
1,149,277
934,892
958,843
—
—
Military Construction,
1,135,846
1,609,596
1,783,998
1,614,450
—
—
Defense-wide
Rescissions
—
(10,192)
—
(3,589)
—
—
Total
1,135,846
1,599,404
1,783,998
1,610,861
—
—
Total, Active components
7,186,040
8,864,411
10,431,209
10,600,729
—
—
Military Construction,
473,000
536,656
539,296
628,668
—
—
Army National Guard
Military Construction,
126,000
287,537
34,374
142,809
—
—
Air National Guard
Military Construction,
166,000
148,133
281,687
282,607
—
—
Army Reserve
Military Construction,
43,000
64,430
57,045
57,045
—
—
Naval Reserve
Military Construction,
45,000
28,359
19,265
30,018
—
—
Air Force Reserve
Rescissions
—
(3,069)
—
—
—
—
Total
45,000
25,290
19,265
30,018
—
—
Total, Reserve
853,000
1,062,046
931,667
1,141,147
—
—
components
Total, Military
8,039,040
9,926,457
11,362,876
11,741,876
—
—
Construction
NATO Security
328,111
201,400
240,867
218,867
—
—
Investment Program
Family Housing
595,362
424,400
678,580
646,580
—
—
Construction, Army

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CRS-22
FY2009
FY2007
FY2008
FY2009
FY2009
FY2009
Account
House
Enacted
Enacted
Request
Senate
Enacted
Committee
Rescissions
—
(4,559)
—
—
—
—
Total
595,362
419,841
678,580
646,580
—
—
Family Housing Ops and
718,816
731,920
716,110
716,110
—
—
Debt, Army
Family Housing
Construction, Navy and
231,733
293,129
382,778
382,778
—
—
Marine Corps
Family Housing Ops and
Debt, Navy and Marine
503,165
371,404
376,062
376,062
—
—
Corps
Family Housing
Construction,
1,222,399
327,747
395,879
395,879
—
—
Air Force
Rescissions
—
(15,000)
—
—
—
—
Total
1,222,399
312,747
395,879
395,879
—
—
Family Housing Ops and
795,162
688,335
599,465
594,465
—
—
Debt, Air Force
Family Housing
Construction, Defense-
9,000
—
—
—
—
—
wide
Family Housing Ops and
47,957
48,848
49,231
49,231
—
—
Debt, Defense-wide
DOD Family Housing
—
500
850
850
—
—
Improvement Fund
Homeowners Assistance
—
—
4,500
4,500
—
—
Fund
Total, Family Housing
4,123,594
2,866,724
3,203,455
3,166,455
—
—
Chemical
Demilitarization
131,000
104,176
134,278
134,278
—
—
Construction, Defense-
wide
Base Realignment and Closure
BRAC, 1990
137,393
295,689
393,377
473,377
—
—
BRAC, 2005
5,622,872
7,235,591
9,065,386
9,065,386
—
—
Total, BRAC
5,760,265
7,531,280
9,458,763
9,538,763
—
—
Grand Total, MilCon &
18,382,010 20,630,037
24,400,239
24,800,239
—
—
FH
Note: Figures do not include Second Supplemental.

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CRS-23
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/]
CRS Appropriations Products Guide
[http://www.crs.gov/products/appropriations/apppage.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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