Veterans programs spared from budget cuts.

Congress has agreed on a compromise fiscal year 2004 budget that includes a total of $63.8 billion for the VA, about $6.2 billion more than the department's current funding level.

The $2.2 trillion overall federal budget blueprint worked out in a House-Senate conference eliminated severe spending reductions in veterans health care and benefits called for in the House version to offset tax cuts sought by President Bush.

"It appears that cuts in veterans benefits are off the table for now, but the budget resolution merely sets priorities for spending in various areas, details and actual funding levels will be determined by other legislation," said DAV National Legislative Director Joseph A. Violante.

During debate on the House budget plan, an agreement to keep veterans' health care, pensions, and disability compensation off the chopping block was brokered by House Veterans' Affairs Committee Chairman Christopher H. Smith (R-N.J.), who won assurances from House Budget Committee Chairman Jim Nussle (R-Iowa) to "accept a level of discretionary and mandatory spending for veterans programs at least as high as reported by the Senate Budget Committee." (See related article on page 3.)

"America's veterans are grateful to those members of the House who stood by them in opposing deep cuts in veterans programs," said National Commander Edward R. Heath Sr. "They are to be commended for the courage of their convictions."

"There's no question that this is a major victory for veterans," said DAV Washington Headquarters Executive Director David W. Gorman. "Our members waged a vigorous grassroots campaign to fight cuts in veterans program spending, and Congress heard our message loud and clear."

"Much of the credit for this victory goes to Chairman Smith and VA Health Subcommittee Chairman Rob Simmons. They worked tirelessly to exempt veterans benefits from across-the-board cuts that were in the Budget Committee's resolution," said Mr. Gorman.

Chairman Smith and Rep. Simmons were joined in efforts to shield veterans programs from the spending cuts by fellow Republicans Rick Renzi of Arizona. Michael Bilirakis of Florida, Walter B. Jones of North Carolina, and Charles W. Pickering Jr. of Mississippi.

"Throughout debate on the budget resolution, lawmakers on both sides of the political aisle made moving arguments against robbing already under funded veterans programs to pay for huge tax cuts. The House Budget Committee's ranking Democrat John Spratt of South Carolina, fellow Committee member Chet Edwards of Texas, House Veterans' Affairs Committee ranking Democrat Lane Evans of Illinois, and others were among those who made the case for protecting veterans during the budget debate," Mr. Violante said.

To offset the President's proposed tax cut, the House Budget Committee plan would have reduced funding for veterans health care and benefit programs by nearly $25 billion. The proposed budget initially cut $844 million from the President's request for veterans health care next year, and almost $10 billion over 10 years. It also proposed a $15 billion cut in mandatory spending from current levels, including disability compensation and pensions. The House Budget Committee's proposal would have cut funding for veterans more deeply than at any time since the Great Depression.

As recommended by the Senate Budget Committee, funding for veterans health care would increase by $1.8 billion over the President's request.

In addition to increased funding for veterans health care. the Senate budget plan included an amendment offered by Senator Harry Reid (D-Nev.) to phase in concurrent receipt of military retired pay and veterans' disability compensation for longevity retirees with service-connected disabilities rated 60% or higher.

"Although the amendment was later dropped, we are encouraged that meaningful steps are being taken to end the unfair ban against concurrent receipt," Mr. Violante said. "The DAV will continue to fight for full concurrent receipt far all disabled military longevity retirees. Their career service to our nation must be honored."

"While the budget is important, it is merely a blueprint for spending priorities. It is the House and Senate Appropriations Committees that determine the actual spending levels for our government agencies," said Mr. Violante. "We will continue to focus our efforts on appropriations as they move forward with their recommendations for VA spending levels."