VA funds trimmed in delayed spending bill.

The 108th Congress has sent the President a catch-all "omnibus appropriations" bill which provides a modest increase in funding for veterans health care. Included in the $388 billion measure that funds most of the federal government is it total of $65.4 billion for the Department of Veterans Affairs.

Funding levels for nearly all domestic programs were trimmed by eight-tenths of a percent to remain within overall budget limits. That left even less money to fund a 3.5% pay increase for federal workers that was not budgeted for, requiring the VA and other agencies to pare back programs even further of resort to personnel actions.

House and Senate negotiators, meeting, in an after-election session, agreed to provide $28 billion in so-called discretionary appropriations for the Veterans Health Administration (VHA), Plus $2 billion in anticipated collections. The measure also provides $30.6 billion for mandatory programs such as disability compensation, survivors' benefits, and pensions.

But final approval of the measure hit an unexpected snag when a provision was inserted at the last minute that would give the chairmen of the Appropriations Committees and their staffs access to the income tax returns of any American. The provision was taken out, clearing the way for the President's signature.

"Veterans Health care finding for fiscal year 2005 is $1.5 billion higher than in 2004 and $1.2 billion more than President Bush had requested. But it is $1.7 billion less than what the DAV recommended just to maintain current benefits and services," said National Legislative Director Joseph A. Violante.

The fiscal year 2005 appropriations bill also allows the VA to transfer $125 million from unspecified accounts for Veterans Benefits Administration claims processing.

"It is troubling that the benefits delivery system was apparently shortchanged, instead the money will be taken from somewhere else in the VA's inadequate budget," said Violante.

Medical and prosthetics research is funded at $402 million. nearly $3.5 million less than in 2004. However, $20 million has been slated for a joint VA-Department of Defense (DoD) Prosthetics and Integrative Health Care Initiative. This new program will benefit returning war veterans with amputations and other severe injuries, ensuring continuity of care as they transition from the DoD health system to the VA.

"Health care and rehabilitation services, as well as disability compensation, vocational rehabilitation, and other benefits for disabled veterans are essential," Violante said. "Making sure the men and women returning from operations in Iraq, Afghanistan, and the war on terrorism have timely access to the full range of benefits through the VA once they leave the military is absolutely vital."

The fiscal year 2005 spending bill appropriates $455 million for major construction projects at VA facilities and $229 million for minor construction. Those amounts are below the President's budget request.

The massive spending bill includes $370 million for major construction and $180 million for minor construction under the Capital Asset Realignment for Enhanced Services (CARES) program. It also allows the VA to transfer $400 million from elsewhere in its budget for construction projects recommended under CARES.

Once again Congress has failed to adequately fund veterans health care and other vital programs in a timely manner, leaving the VA to do more with less," said Violante. "With the country at war, the demand on the VA system continues to grow, while the cost of health care has never been higher," Violante said.

"When you consider that thousands of veterans returning from Iraq, Afghanistan, and the global war on terrorism will have life-long disabilities, the VA's problems will be compounded by yet another inadequate budget," Violante said. "It is absolutely vital that Congress and the Administration overhaul the current budget and appropriations process 10 guarantee full funding for the veterans health care system.