Bush will seek a record $70.8 billion in 2006 for Veterans Affairs

Feb 7 2005

Secretary of Veterans Affairs Jim Nicholson announced today that President Bush will seek a record $70.8 billion in the fiscal year 2006 budget for the Department of Veterans Affairs (VA), with the overwhelming majority of these resources targeted for health care and disability compensation.

"This budget demonstrates the President's ongoing commitment to provide the very best health care and benefits to those veterans who count on VA the most," Nicholson said.

The FY '06 budget proposal calls for $33.4 billion in discretionary funding -- mostly for health care -- and $37.4 billion in mandatory funding, mostly for compensation, pension and other benefit programs. This represents an increase of 2.7 percent over this year's discretionary budget.

FY '06 Budget Highlights

This budget proposal guarantees that the department will be able to care for those veterans who count on VA the most.

• With this budget proposal, the President, working in partnership with Congress, will have increased health care funding for veterans by 47 percent since FY '01.

• The budget ensures continuation of the Presidential priority where VA is working closely with the Department of Defense to ensure that service members returning from Iraq and Afghanistan and their families are provided timely, high-quality services.

• VA will be able to care for more than 5.2 million patients. With this budget, the department will be able to care for a record number of our high-priority patients, those veterans counting on us the most, including veterans of Operations Iraqi and Enduring Freedom.

• The FY '06 budget proposal includes $750 million for the Capital Asset Realignment for Enhanced Services (CARES) program, bringing the total department investment to date to $2.15 billion. The FY '06 proposal includes 28 new outpatient clinics, funding for design work for two new medical facilities in Biloxi, Miss., and Fayetteville, Ark., as well as additional funding for five other major construction projects in Las Vegas, Nev.; Cleveland, Ohio; Pittsburgh, Pa.; Gainesville, Fla., and Anchorage, Alaska.

• The FY '06 budget request calls for a total investment of $2.2 billion in enhanced mental health services, which is $100 million above this year's funding level. This budget proposal ensures a full continuum of care for veterans with mental health issues, to include comprehensive treatment for those veterans with post-traumatic stress disorder.

• The FY '06 budget calls for $1.2 billion for prosthetics and sensory aids, a $100 million increase over FY '05.

• Funding for non-institutional long-term care would increase by more than 18 percent over FY '05, with a total investment of $400 million in the President's proposed budget.

• Continuing the largest expansion of the national cemetery system since the Civil War, the FY '06 budget proposal includes $90 million for construction projects, including funds for the purchase of land for six new national cemeteries in Bakersfield, Calif.; Birmingham, Ala.; Columbia-Greenville, S.C.; Jacksonville, Fla.; Sarasota, Fla.; and southeastern Pennsylvania; and expansion of the Fort Rosecrans Annex in Miramar, Calif. The budget also includes $32 million for new state cemetery grants. FY '06 Budget Highlights for the Veterans Health Administration

The Veterans Health Administration has received record budget increases over the last four years. With this budget proposal, the President, working in partnership with Congress, will have increased health care funding for veterans by more than 47 percent since FY '01. The President's FY '06 budget proposal requests $30.7 billion for VA's health care program.

With these resources, VA will be able to treat more than 5.2 million patients. In 2006, nearly 80 percent of veteran patients are expected to be high priority -- those veterans who count on VA the most.

The President's budget request also includes $750 million to continue the Capital Asset Realignment for Enhanced Services (CARES) program designed to modernize VA's health care system. The FY '06 proposal brings the total department investment to date to $2.15 billion. This historic transformation means that VA will be able to provide greater access to high-quality care closer to where most veterans live.

For the last five years, the independent American Customer Satisfaction index found veterans were happier than most Americans with the health care they receive. In December, a study by the prestigious RAND Corporation reported that VA patients were also significantly more likely than non-VA patients to receive needed preventative care.

FY '06 Budget Highlights for the Veterans Benefits Administration

The President's budget proposal for FY '06 will enable the Veterans Benefits Administration to maintain record increases in educational assistance and home loan programs.

Continuing the nation's long-standing commitment to provide educational benefits to veterans, service members and certain family members of veterans, the department will continue to offer veterans and service members educational assistance up to $1,004 per month -- a record amount -- for full-time education or training in an approved institution.

VA's support to service members and veterans purchasing or improving homes through the home loan guaranty program will remain at record levels.

VA is now guarantying home loans with no down payment of nearly $360,000 for eligible veterans, up from the $240,000 maximum last year.

Vocational rehabilitation and employment benefits for service-disabled veterans will increase by $64 million in FY '06, which is 11 percent more than FY '05.

Men and women still on active duty will find it easier to access VA benefits when they near the end of their military service because of the enhancements in the FY '06 budget proposal for VA programs that allow early application for disability claims and other benefits.

FY '06 Budget Highlights for the National Cemetery Administration

Over the past four years, the President has committed to the largest expansion of the national cemetery system since the Civil War. To this end, the FY '06 budget calls for $290 million, nearly $17 million, or 6.4 percent, more than the level for FY '05.

The FY '06 budget proposal calls for $90 million for construction projects, including funds for the purchase of land for six new national cemeteries in the areas of Bakersfield, Calif.; Birmingham, Ala.; Columbia- Greenville, S.C.; Jacksonville, Fla.; Sarasota, Fla.; and southeastern Pennsylvania.

The 2006 budget also includes funds for cemetery expansion and improvement at the Fort Rosecrans Annex in Miramar, Calif., and $32 million for the state cemetery grant program. The share of veterans living within 75 miles of a national or state veterans cemetery will increase to more than 82 percent in 2006, which means that about 1.7 million more veterans will have access to a burial option in 2006 than in 2004.

FY '06 Budget Highlights for Legislative Proposals

The President's 2006 budget includes legislative proposals that will further ensure VA is able to care for those veterans who count on it the most. The proposals include:

• ending all copayments for former prisoners of war;
• ending copayments for hospice care;
• authorizing VA to pay for emergency room care or urgent care for enrolled veterans in non-VA medical facilities;
• allowing more resources to be devoted to the homeless providers grant and per diem program;
• establishing a priority system for veterans receiving care in state veterans homes;
• increasing pharmacy copayments from $7 to $15 for a 30-day supply of drugs; and
• establishing an annual enrollment fee of $250.