Veterans Affairs: Historical Budget Authority,
Fiscal Years 1940 Through 2010
Christine Scott
Specialist in Social Policy
January 20, 2011
Congressional Research Service
7-5700
www.crs.gov
RS22897
CRS Report for Congress
P
repared for Members and Committees of Congress
Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
Summary
Budget authority—the amount of money a federal department or agency can spend or obligate to
spend by law—for veterans’ benefits and services has increased significantly since FY1940. In
FY1940, the budget authority for veterans’ benefits and services was $561.1 million, and in
FY2010 the budget authority was $112.7 billion, or 200.8 times the FY1940 budget authority. In
constant 2010 dollars (i.e., inflation-adjusted), the FY2010 budget authority is 12.9 times the
FY1940 budget authority. The increases over time have reflected the impact of increases in the
number of veterans as the result of wars and other conflicts, the aging of the veteran population,
and changes in benefits and services provided for veterans. This report provides information on
the historical budget authority of the Department of Veterans Affairs (formerly the Veterans
Administration) for FY1940 through FY2010. Budget authority is presented in both current
dollars and constant 2010 dollars (i.e., inflation-adjusted).
This report will be updated as additional information becomes available.
Introduction
Because of the annual budget and appropriation process in Congress and the current conflicts
involving U.S. servicemembers overseas, there is a strong interest in the levels of spending by the
federal government for veterans’ benefits and services1 among members of Congress and the
public. For this report, veterans’ benefits and services include direct spending on veterans (such
as disability compensation or health care) and indirect spending (such as administration and
construction of facilities). This report provides information on the historical budget authority for
veterans’ benefits and services for FY1940 through FY2010. Budget authority is presented in
both current dollars and constant 2010 dollars (i.e., inflation-adjusted).
Budget Authority for Veterans’ Programs, FY1940 -
FY2010
The budget authority2 for veterans’ benefits and services over the FY1940 - FY2010 period has
generally shown a steady increase. As can be seen in Table 1 and Figure 1, the FY2010 budget
authority in current dollars was 200.8 times the FY1940 budget authority, reflecting an average
annual growth rate for the period of 7.8%.3 In constant 2010 dollars (i.e., inflation-adjusted), the
1 For information on FY2010 appropriations for veterans’ benefits and services, see CRS Report R40731, Military
Construction, Veterans Affairs, and Related Agencies: FY2010 Appropriations, coordinated by Daniel H. Else.
2 Budget authority is the amount of money the federal department or agency can spend or obligate to spend by law.
Budget authority has several forms, including appropriations; authority to borrow; contract authority; and authority to
spend from offsetting collections. For more information see CRS Report 98-721, Introduction to the Federal Budget
Process, coordinated by Bill Heniff Jr.
3 The federal fiscal year changed between 1976 and 1977. For fiscal years 1940 through 1976, the federal fiscal year
was July through June. For fiscal years 1977 and later, the federal fiscal year was October through September. The
adjustment quarter in 1976 is not shown in the figures used in this report.
Congressional Research Service
Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
FY2010 budget authority is 12.9 times the FY1940 budget authority and reflects a 3.7% average
annual growth rate over the period.4
World War II
A large number of Americans, 16.1 million,5 served in the military in World War II (WWII,
December 7, 1941, through December 31, 1946), making WWII the largest conflict to date in
terms of the number of servicemembers. Because the servicemembers volunteered (or were
drafted) for “the duration,” a large number of servicemembers were released in a relatively short
period of time at the end of the war.
Before the end of the war, the Servicemen’s Readjustment Act (P.L. 346 of the 78th Congress),
commonly known as the GI Bill, was signed into law in 1944, providing a major change in
benefits for veterans. The GI Bill introduced education and training benefits that enabled millions
of servicemembers who may have otherwise been unable to attend college or training schools to
receive a college education or specific job skills training. In addition, the housing loan guarantee
benefits provided by the GI Bill enabled WWII veterans to purchase homes for their families.
As shown in Table 1, the combination of the large number of veterans being released in a
relatively short period of time and the change in benefits resulted in the budget authority for
veterans increasing from $561.1 million before the war in FY1940 to a peak in the post-war
period in FY1947 of $8.4 billion.
In current dollars, the FY1947 budget authority was 14.9 times the pre-war budget authority for
veterans. In constant 2010 dollars, the FY1947 budget authority for veterans was $80.7 billion, or
9.3 times the pre-war budget authority for veterans.
The Vietnam Era
The Vietnam era (February 28, 1961 through May 7, 1975) was significantly longer than WWII,
with a total of 8.7 million Americans who served in the military during the period. Until the end
of 1972, a military draft was in place (the last drafted servicemembers began service in 1973),
and drafted servicemembers were released through the period at the end of their military
obligation. Also, while benefit changes or expansions were made during the period, no new large
benefit programs were started during the period (unlike the WWII period). As a result of the
regular release of servicemembers from the military over the period and the relatively stable
levels of veterans’ benefits and services, the large peak in budget authority at the end of WWII
was not repeated at the end of the Vietnam era.
4 For this report, constant dollar budget authority figures were calculated using the current dollar budget authority data
provided by the Department of Veterans Affairs and the Consumer Price Index for All Urban Consumers (CPI-U) on an
annual basis published by the Bureau of Labor Statistics.
5 For information on the number of military personnel serving in American war and military operations, see CRS
Report RL32492, American War and Military Operations Casualties: Lists and Statistics, by Anne Leland and Mari-
Jana “M-J” Oboroceanu.
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Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
There was however a smaller peak in budget authority for the FY1975-FY1976 period that
reflected an increase in the number of veterans at the end of the Vietnam conflict. While the
current dollar budget authority for FY1975 and FY1976 was 2.0 and 2.3 times the FY1947
budget authority, in constant 2010 dollars (after adjusting for inflation) the budget authority for
FY1975 and FY1976 was below that of FY1947. This reflects in large part the differences
between the two conflicts in terms of the timing for release of servicemembers and veterans
benefits and services (compared to the pre-conflict period).
Current Conflicts
During the current conflicts, Operation Enduring Freedom (OEF, which began October 2001) and
Operation Iraqi Freedom (OIF, which began March 2003), there is no military draft in place.
Servicemembers generally leave at the end of their obligation, or at retirement. The somewhat
steady increase in budget authority for veterans’ benefits and administration each year since the
late 1990s reflects the impact of the aging of the veteran population (with an accompanying
increased demand for services) in addition to the impact of the returning OEF/OIF veterans. In
FY2000, of the 83,159 veterans who began receiving disability compensation that year, 19.8%
were aged 55 or older. By FY2010, of the 224,902 veterans who began receiving disability
compensation that year, 45.6% were aged 55 or older.6 The budget authority for FY2009 and
FY2010 also reflect the impact of the Post-9/11 Veterans Educational Assistance Program,7 and
the establishment of additional disability presumptions related to Agent Orange.
Over time, the increases in the budget authority for veterans’ benefits and services have reflected
the impact of increases in the number of veterans as the result of wars and other conflicts, the
aging of the veteran population, and changes in the benefits and services provided for veterans.
The most dramatic impact of the combination of an increase in the number of veterans and
changes in veterans’ benefits can be seen in the period shortly after World War II.
6 Department of Veterans Affairs, Annual Benefits Report, various years, available at http://www.vba.va.gov/
REPORTS/abr/index.asp.
7 Established by the Post 9/11 Veterans Education Assistance Act of 2008, P.L. 110-252.
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Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
Table 1. Historical Budget Authority for the Department of Veterans Affairs (VA) in
Current and Constant (2010) Dollars, FY1940-FY2010
(dollars in millions)
Fiscal
Current
Constant
Current
Constant
Year
Dollars
(2010) Dollars
Fiscal Year
Dollars
(2010) Dollars
1940 $561.1
$8,739.3
1976 $19,300.0
$73,962.6
1941 582.0
8,633.6
1977 18,572.9
66,830.7
1942 611.0
8,173.8
1978 18,515.0
61,921.9
1943 608.6
7,671.5
1979 19,901.4
59,774.4
1944 947.8
11,742.5
1980 20,551.8
54,386.5
1945 1,517.2
18,379.5
1981 22,455.2
53,866.8
1946 4,780.6
53,458.6
1982 24,205.4
54,695.6
1947 8,354.4
81,691.9
1983 24,607.0
53,872.5
1948 6,972.7
63,088.8
1984 25,634.4
53,799.2
1949 5,961.8
54,622.3
1985 26,387.0
53,474.4
1950 6,611.1
59,817.3
1986 26,230.4
52,187.0
1951 5,831.6
48,908.6
1987 26,605.4
51,069.2
1952 4,409.3
36,281.8
1988 28,242.0
52,056.9
1953 4,157.2
33,951.4
1989 29,344.9
51,603.5
1954 4,199.7
34,043.8
1990 29,778.1
49,681.0
1955 4,232.4
34,436.4
1991 32,525.0
52,072.5
1956 4,706.9
37,733.8
1992 33,157.6
51,534.0
1957 4,792.1
37,186.6
1993 35,154.7
53,049.8
1958 4,985.0
37,612.8
1994 36,780.1
54,116.8
1959 5,070.7
37,996.5
1995 37,466.1
53,606.9
1960 5,153.4
37,963.9
1996 38,634.9
53,693.9
1961 5,424.2
39,557.8
1997 40,054.4
54,418.1
1962 4,946.5
35,715.5
1998 41,686.6
55,766.9
1963 5,333.1
38,003.6
1999 43,137.8
56,461.3
1964 5,425.2
38,161.5
2000 44,818.9
56,754.0
1965 5,641.1
39,050.3
2001 48,665.2
59,919.5
1966 6,002.6
40,398.4
2002 53,495.0
64,841.1
1967 6,438.0
42,031.6
2003 59,673.1
70,717.9
1968 6,707.1
42,026.4
2004 63,824.8
73,675.9
1969 7,408.6
44,018.6
2005 69,436.4
77,526.9
1970 8,473.3
47,620.0
2006 73,736.8
79,755.7
1971 9,909.4
53,353.2
2007 82,013.8
86,251.7
1972 10,935.8
57,048.0
2008 90,525.5
91,683.0
1973 12,391.3
60,855.9
2009 99,447.3
101,078.5
1974 13,540.8
59,891.5
2010 $112,694.6
$112,694.6
1975 $16,304.0
$66,081.7
Source: Table prepared by the Congressional Research Service (CRS) using data provided by the Department
of Veterans Affairs, Office of the Budget, General Administration & Coordination Service.
Note: Budget authority shown in constant (2010) dollars was calculated using the annual Consumer Price Index
Al Urban Consumers (CPI-U) published by Bureau of Labor Statistics.
Congressional Research Service
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Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
Figure 1. Historical Budget Authority for the Department of Veterans Affairs (VA) in Current and
Constant (2010) Dollars, FY1940-FY2010
$120,000
$100,000
$80,000
ity
or
th
u
$60,000
A
udget
B
$40,000
$20,000
$0
1940
1944
1948
1952
1956
1960
1964
1968
1972
1976
1980
1984
1988
1992
1996
2000
2004
2008
Fiscal Year
Source: Table prepared by the Congressional Research Service (CRS) using data provided by the Department of Veterans Affairs, Office of the Budget, General
Administration & Coordination Service.
Note: Budget authority shown in constant (2010) dol ars was calculated using the annual Consumer Price Index Al Urban Consumers (CPI-U) published by Bureau of
Labor Statistics.
CRS-7
Veterans Affairs: Historical Budget Authority, Fiscal Years 1940 Through 2010
Author Contact Information
Christine Scott
Specialist in Social Policy
cscott@crs.loc.gov, 7-7366
Congressional Research Service
8