The Committee reported H.R. 5385 lie within the jurisdiction of the Senate Committee on Appropriations Subcommittee on Defense. Continuing Resolutions

In the absence of an annual appropriation, Fiscal Year 2007 funding for all of the accounts included in the House version of H.R. 20 is included later in this report. Status of Legislation

	Summary and Key Issues

		Appropriations Subcommittee Jurisdiction Realignment, 109th Congress

			House

During the first session of the 109 th Congress, the Committee on Appropriations reorganized its subcommittee structure and realigned subcommittee jurisdictions. In the resulting redistribution of subcommittee responsibilities, the Subcommittees on Veterans Affairs, Housing and Urban Development (VA-HUD) and Military Construction were eliminated and some of their responsibilities were assigned to a new Subcommittee on Military Quality of Life and Veterans Affairs and Related Agencies. Senate

At the same time, the Senate Committee on Appropriations dissolved its Subcommittee on Veterans Affairs, Housing and Urban Development and transferred its responsibilities for Veterans Affairs, the American Battle Monuments Commission, Cemeterial Expenses, Army (Arlington National Cemetery), the Court of Appeals for Veterans Claims, and the Selective Service Commission to the former Subcommittee on Military Construction, which retained its responsibility for military construction appropriations. The BRAC 2005 account funds the many realignment and closure actions, to include the movement of units and equipment, the construction of new infrastructure at receiving installations, and the realignment and closure of property deemed excess in the current BRAC round. The President requested $5.6 billion for FY2007. The House Committee on Appropriations recommended a $5.3 billion appropriation for FY2007, while the Senate Committee on Appropriations recommended $5.2 billion. The House-passed version recommends $74.6 billion in new budget authority for veterans benefits and services. In addition to the increased number of beneficiaries, much of the projected increases in recent years result from cost-of-living adjustments for compensation benefits and from liberalizations to the Montgomery GI Bill, the primary education program. 5385 provides $32.7 billion for the Veterans Health Administration (VHA) for FY2007, about the same amount as the President's request. The House-passed bill does not include any provisions that would give VA the authority to implement fee increases as requested by the Administration's budget proposal for VHA for FY2007
On July 20, 2006, the Senate Committee on Appropriations reported out of committee its version of the Military Construction and Veterans Affairs and Related Agencies Appropriations bill (MIL-CON-VA-appropriations bill) for FY2007 ( H.R. 5385 , as amended, provides $32.7 billion for VHA for FY2007, about the same as the House-passed amount and the President's request.
The structure of the Committees on Appropriations were changed at the beginning of the 109th Congress, altering jurisdictions over the appropriations covered in this report, including military construction, military housing allowances, military installation maintenance and operation, the Department of Veterans Affairs, and other veteran-related agencies, rested in the House Committee on Appropriations with the new Subcommittee on Military Quality of Life and Veterans Affairs. In the Senate Committee on Appropriations, jurisdiction for military construction, the Department of Veterans Affairs, and other veteran-related agencies were vested in the Subcommittee on Military Construction and Veterans Affairs, while military housing allowances and military installation maintenance and operation are the responsibility of the Subcommittee on Defense. At the opening of the 110th Congress, the House subcommittee structure was again adjusted, returning some non-construction defense activities to the Subcommittee on Defense. Authorization jurisdictions lie with the two Committees on the Armed Services and Committees on Veterans Affairs.
Key issues in congressional action to date include:
Military Construction: The changing structure of the Army, the redeployment of troops from overseas garrisons to domestic bases, and implementation of the current BRAC round have drawn committee attention during the appropriation process. To fund the activities included in the military construction and family housing portion of this bill, the President requested $16.7 billion, the House appropriated $15.9 billion, and the Senate Committee on Appropriations recommended $16.3 billion. Veteran Benefits: Entitlement spending is rising as the number of beneficiaries is increasing, education benefits are being augmented, and annual cost of living adjustments are being granted. Benefits such as disability compensation, pensions, and education are mandatory payments and constitute more than half ($37.2 and $41.4 billion, respectively) of the VA appropriation of approximately $71 billion for FY2006 and almost $78 billion proposed for FY2007. Veteran Medical Care: The Administration has again requested legislative changes to increase certain co-payments and other cost sharing fees for veterans in lower priority categories. The House passed version of H.R. 5385 provides $32.7 billion for the Veterans Health Administration (VHA) for FY2007, about the same amount as the President's request. On July 20, 2006, the Senate Committee on Appropriations reported out of committee its version of H.R. 5385. H.R. 5385, as amended, provides $32.7 billion for VHA for FY2007, almost equivalent to the House-passed amount and the President's request. The House-passed bill and the Senate Appropriations Committee-reported bill do not include any provisions that would give VA the authority to implement fee increases.