FROM: Dennis Cullinan, Director, National Legislative Service

SUBJ: PL 109-114: FY 2006 VA Funding

DATE: December 12, 2005


On 30 November 2005 the President signed into law the fiscal year (FY) 2006 Military Quality of Life and Veterans Affairs appropriations bill, Public Law 109-114. This measure provides funding for a variety of federal agencies, including the Department of Veterans Affairs (VA). The VA funding breakdown follows.

DEPARTMENT OF VETERANS AFFAIRS FUNDING:
$36.995 billion mandatory (Primarily Veterans Compensation)
$31.818 billion discretionary (Primarily Veterans Health Care)
$1.225 billion contingent emergency funding for medical services (Must be approved/authorized by the President)
$70.038 billion TOTAL VA
*Including the recently passed COLA, total VA funding would be brought up to $70.249 billion.
Department of Veterans Affairs Medical Care and Benefits:
• Veterans Medical Services are funded at $22.5 billion, $575 million above the President’s budget request and $1.7 billion above FY05. VA also has available an additional $1.14 billion in available funding from FY 05 for carry over into the FY 06 funds.
• Mental Health Services - for the first time ever, $2.2 billion is fenced for specialty mental health care and the bill doubles funding for mental health research.
• This bill contains a new “Prosthetics and Integrative Health Care Initiative” to treat returning soldiers from Iraq and Afghanistan who have lost limbs in combat. $412 million will provide for medical and prosthetic research, which is $19 million over the budget request.
• For construction programs, the bill recommends the budget request levels of $607 million for major construction and $199 million for minor construction. Of these funds, $532 million of major construction and $155 million of minor construction are designated for the “Capital Asset Realignment for Enhanced Services” or CARES program.
• Veteran’s Benefits are increased $1.9 billion over last year.


Other highlights include:
• $1.2 billion for VA IT and IT restructuring.
• An additional $40 million for VBA operation expenses to prevent staff reductions in processing disability claims benefits.
• $85 million for state extended care facilities.
• Creates 3 “Centers of Excellence” for Mental Health/PTSD medical care.
• Requires VA to brief Congress on a quarterly basis on the status of their financial situation.
• Requires the VA to maintain the current system of processing home monitoring devices for diabetes patients.
• Fully funds all mental health care and PTSD requirements.
• The agreement encourages the VA to provide full assistance to veterans in rural areas through information campaigns and distribution of VA benefits handbooks.

VA Breaks Ground on New Regional Office in Reno

WASHINGTON (December 13, 2005) - Deputy Secretary of Veterans Affairs
Gordon H. Mansfield today presided over the groundbreaking ceremony for
a new Department of Veterans Affairs (VA) Regional Office in Reno, Nev.

"This landmark event signifies the continued commitment this nation has
to Nevada's veterans," said Mansfield. "The new Regional Office
building will be a first-class, 21st century facility where veterans and
their families can come for assistance in obtaining the benefits they
have earned in service to our country."

The new facility will house approximately 60 VA employees, as well as
employees of the Nevada Office of Veteran Services, veterans service
organizations including the Veterans of Foreign Wars, Disabled American
Veterans, AMVETS and American Ex-POWs.

This project is part of a VA pilot program to build VA facilities that
are high-performance inside and out, more energy- and cost-efficient,
more environmentally friendly and more comfortable for the people who
will occupy them. It will be certified by the Department of Energy's
U.S. Green Building Council as a Leadership in Energy & Environmental
Design (LEED) facility, making it the first federal office building in
Nevada that is LEED certified.

SDA, Inc., of Greenwood Village, Colo., was awarded the $8.5 million
construction contract in October 2005, and it is estimated the project
will infuse approximately $3.5 million into the local economy through
local contracting. VA will lease the 35,000 square foot facility from
the General Services Administration.

The Reno VA Regional Office serves 238,000 veterans in the state of
Nevada and 7,000 veterans in four northeastern California counties. It
is one of 57 regional offices nationwide that provide financial and
other forms of assistance to veterans, their dependents and survivors.

Major benefits include veterans' disability compensation and pension,
survivors' benefits, vocational rehabilitation and employment
assistance, educational assistance, home loan guaranties and life
insurance coverage.

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