House sends fiscal 2007 VA appropriations to senate for action.

Federal spending on direct medical services for veterans would rise just over 6 percent in the fiscal year that begins Oct. 1, under a House-approved bill funding the Department of Veterans Affairs and a number of military programs. That increase would still leave the VA short of what the DAV believes is needed to care for the nation's sick and disabled veterans.

"Funding for veterans health care fell well short of what was needed last year, which meant Congress had to pass emergency appropriations to make up for the shortfall," said National Legislative Director Joseph A. Violante. "We do not want to have a repeat of that situation again. Congress needs to step up to the plate and fully fund the need so veterans won't be waiting months for a doctor's appointment or denied treatment altogether."

The $136 billion Military Construction, Military Quality of Life and Veterans Affairs Appropriations Act (H.R. 5385) now goes to the Senate for consideration.

The House bill would provide a total of $77.9 billion for the VA, about what the President requested. But that total includes collections and unspecified "efficiencies." Of the $36.5 billion in discretionary spending for the VA, $25.4 billion is for veterans medical services, a $2.6 billion increase over the current level.

The Independent Budget authored by the DAV and other veterans service organizations calls for a total of $38.5 billion in discretionary spending for the VA. That includes nearly $26 billion for veterans medical services.

Also included in the House-passed bill is $38 billion in mandatory funding for VA disability compensation, pension and burial benefits--a $4.2 billion increase over current levels.

H.R. 5385 also would provide $21 billion in discretionary funding for the Defense Department's health care program and $10.6 billion for military and family housing construction, among other programs.

In drafting the bill, the House Appropriations Committee rejected the President's proposals for a new enrollment fee and higher prescription co-payments for certain veterans using the VA and higher fees for military retirees under age 65 who are eligible for the Defense Department's Tricare medical program. The committee found $800 million in its budget cap to cover lost revenues the VA fees would have generated, but it did not make up for the $735 million the administration estimated the proposed Tricare fees would generate. That funding gap would have to be addressed, probably in conference with the Senate, before a final bill is sent to the White House.

Democrats on the Appropriations Committee offered amendments that would have paid for increased spending, much of it for veterans programs, by repealing some tax breaks for individuals with annual incomes exceeding $1 million.

The committee voted down an amendment offered by Rep. John T. Salazar (D-Colo.) to increase VA health care funding by $2.6 billion. Also rejected was an amendment offered by Rep. Chet Edwards (D-Texas) that would have added $735 million to replace the lost Tricare fee revenue. Both were defeated along party lines.

Instead of providing additional appropriations, the bill shifts $100 million from medical services to help improve medical administration as a way to avoid potential funding shortfalls.

The appropriation for general operating expenses, which includes funds for the Veterans Benefits Administration to process and decide disability compensation claims, would be $1.48 billion. That is $340 million less than The Independent Budget recommendation.

"The VA simply must have the resources it needs to hire, train and properly manage enough qualified staff to clear out the backlog and improve the quality and timeliness of veterans' claims," said National Service Director Randy Reese. "Without a commitment to quality assurance and the resources to make the necessary improvements, veterans will continue to suffer injustice and endure long waits for proper decisions on their claims."

H.R. 5385 added $25 million to the President's request to open at least 10 new community-based outpatient clinics in the coming fiscal year. Those would be in addition to the 27 clinics funded in the budget submitted to Congress.

Medical and prosthetics research would be funded at $412 million, $13 million more than the President requested. In addition, the House bill adds $12 million to the administration budget to modernize VA medical research facilities nationwide. The Independent Budget recommends $460 million for medical and prosthetics research.

Funding for major construction projects would be $283.6 million, $691 million below the current level and $115 less than the President asked for. Minor construction, on the other hand, would increase $9 million to $210 million.

The House-passed bill would provide $105 million, or $20 million over the current level, to improve state veterans homes. That amount is $45 million less than The Independent Budget recommendation.

"DAV members need to urge their Senators and Representatives to support an adequate appropriation of $38.5 billion in discretionary spending for the VA, including $25.9 billion for veterans medical services," said Violante. "The DAV Legislative staff in Washington can only do so much, so our entire grassroots network has a vital role to play in convincing Congress to fully fund veterans health care and other vital services."