House Veterans’ Affairs Committee Issues Report on Veterans Employment, Education, Healthcare Improvement Act
Excerpts of the report follow:
PURPOSE AND SUMMARY
H.R. 3016, the VA Provider Equity Act, was introduced by
H.R. 3016, as amended, would: (1) make Doctors of Podiatric Medicine (podiatrists) equal to Doctors of Osteopathy (DOs) and Medical Doctors (MDs) within
HEARINGS
On
The Honorable
A statement for the record was submitted by the following: The
On
The Honorable
Statements for the Record were submitted by the following:
On
The Honorable
A statement for the record was submitted by the following:
On
Honorable
Statements for the Record were submitted by:
SUBCOMMITTEE CONSIDERATION
On
An amendment in the nature of a substitute offered by
An amendment in the nature of a substitute offered by
On
On
COMMITTEE CONSIDERATION
On
An amendment in the nature of a substitute offered by Rep.
An amendment to the amendment in the nature of substitute offered by Rep.
An amendment to the amendment in the nature of substitute offered by
An amendment to the amendment in the nature of a substitute offered by
An amendment to the amendment in the nature of substitute by
A motion by Ranking Member
COMMITTEE VOTES
In compliance with clause 3(b) of rule XIII of the Rules of the
An amendment to the amendment in the nature of substitute by
Insert graphic folio 59 HR358.001
COMMITTEE OVERSIGHT FINDINGS
In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) of rule X of the Rules of the
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
In accordance with clause 3(c)(4) of rule XIII of the Rules of the
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules of the
EARMARKS AND TAX AND TARIFF BENEFITS
H.R. 3016, as amended, does not contain any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI of the Rules of the
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate on H.R. 3016, as amended, prepared by the Director of the
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
U.S.
Hon.
Chairman,
DEAR MR. CHAIRMAN: The
If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is
Sincerely,
Enclosure.
H.R. 3016--Veterans Employment, Education, and Healthcare Improvement Act
Summary: H.R. 3016 would modify certain mandatory veterans' programs, including those that provide educational benefits and mortgage loan guarantees. On net, CBO estimates that enacting H.R. 3016 would decrease direct spending by
In addition, H.R. 3016 would expand the types of medical care provided by the
Pay-as-you-go procedures apply because enacting the legislation would affect direct spending. Enacting the bill would not affect revenues.
CBO estimates that enacting H.R. 3016 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026.
H.R. 3016 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments. State agencies that serve veterans would benefit from contact and service information about veterans provided electronically by
Estimated cost to the Federal Government: The estimated budgetary effects of H.R. 3016 are shown in Table 1. The costs of this legislation fall within budget function 700 (veterans benefits and services).
TABLE 1- BUDGETARY EFFECTS OF H.R. 3016, THE VETERANS EMPLOYMENT, EDUCATION, AND HEALTH CARE IMPROVEMENT ACT
To view the table, click this link: http://thomas.loc.gov/cgi-bin/cpquery/17?&sid=cp114O4coM&refer=&r_n=hr358.114&db_id=114&item=17&&sid=cp114O4coM&r_n=hr358.114&hd_count=50&item=17&&sel=TOC_215454&
Basis of estimate: For this estimate, CBO assumes that H.R. 3016 will be enacted early in fiscal year 2016, the estimated amounts will be appropriated each year, and outlays will follow historical spending patterns for affected programs.
Direct spending
CBO estimates that enacting H.R. 3016 would decrease net direct spending by
Changes to Education Benefits. H.R. 3016 would make several changes to education benefits provided under the Post-9/11 GI Bill. On net, those changes would decrease direct spending by
Under the Post-9/11 GI Bill,
TABLE 2- ESTIMATED EFFECTS OF H.R. 3016 ON DIRECT SPENDING
To view the table, click this link:
In addition, students who face tuition and fees above what
Service members and veterans can use those benefits themselves or transfer up to a total of 36 months of benefits to their spouses and children after serving at least six years in the military. Spouses can use the benefits as soon as they are transferred, but children must wait until the member has completed 10 years of service.
Transferred Education Benefits. Section 301 would modify the authorities under which service members may transfer education benefits to their dependents. On net, those changes would reduce direct spending by
Section 301 would reduce by half the monthly housing allowance paid to children who use transferred benefits. That reduction would apply to benefits that are transferred to children 180 days or more after the bill is enacted. Based on current payment levels and adjusting for expected inflation, CBO estimates that the annual payment for the housing allowance under the Post-9/11 GI Bill will average about
Based on data from the
Section 301 also would change the terms under which service members may transfer Post-9/11 GI Bill benefits to their spouses and children. Under current law, members must serve at least six years and agree to serve another four years to transfer their benefits. Under section 301, members would have to serve at least 10 years, and agree to serve an additional two years in order to transfer benefits. Spouses and children would be allowed to begin using benefits as soon as they are transferred by the member.
CBO expects that those changes would cause some service members to leave the military and use their benefits themselves, rather than transfer them to their dependents. Because service members would have to wait four more years before committing to additional military service, they would have more opportunities to leave the armed forces. Also, spouses would have to wait an additional four years to use transferred benefits, somewhat reducing their value to the spouse. Finally, the length of service required from the member would increase from 10 years to 12 years.
Based on the rate at which personnel leave the military between their 6th and 10th years of service, CBO estimates that each year about 2,000 members who would have committed to additional service in order to transfer benefits under current law would, under this provision, leave the military and retain those benefits for their own use. That change would have several offsetting effects that would increase net direct spending by about
Increased costs of
Increased costs of
Decreased costs of
Decreased costs of
Decreased costs of
Payments for Flight Training. Section 306 would cap payments for tuition and fees for educational programs that involve flight training. Flight-training programs require significant expenditures for aircraft purchases, equipment maintenance, aviation fuel, and insurance. In 2014,
Section 306 would apply the limit for private institutions to all flight-training programs. (Students who are enrolled in flight-training programs before enactment of H.R. 3016 would not see their education benefits reduced for two years.) Payments for students whose tuition is below the new cap would not be affected. In 2014, the average cost for the 544 students whose tuition and fees exceeded the
Under the bill, the savings realized by capping tuition payments would be partially offset because some students may be eligible for additional assistance under the Yellow Ribbon Program.
Based on data from
On that basis, CBO estimates that in most years about 600 individuals would be affected by the new limit on tuition and fees. The number of students affected would be smaller in 2016 and 2017 because payments for students who enrolled before H.R. 3016 was enacted would not be reduced in those years. In 2018, the first year that the cap would apply to payments for all students in flight training, payments for affected students would decline by about
Fry Scholarships. The Marine Gunnery Sergeant John David Fry Scholarship provides 36 months of education benefits under the Post-9/11 GI Bill to spouses and children of service members who died on active duty at any time after
Under current law, service members must complete at least 36 months of active duty or be discharged from the military for a service-connected disability to earn YRP benefits. (Spouses and children who receive transferred benefits from members who were eligible for the YRP program can also receive that additional assistance.) Under the bill, recipients of the Fry Scholarship could receive additional education assistance through the Yellow Ribbon Program; thus, the roughly 6,000 dependents who use Fry Scholarship benefits each year also would become eligible for YRP assistance.
In 2014,
Section 302 also would extend the time that certain spouses have to use Fry Scholarship benefits before they expire. On
Credit for Time in Medical Care. Section 307 would allow the time a reservist serves on active duty while receiving medical care or undergoing a medical evaluation, to count as qualifying active service for accruing education benefits under chapter 33. Based on historical data from the
However, some activated reservists will already qualify for the maximum benefit as a result of other time on active duty; others would not use their benefits at all, even if the amount of the benefit were increased. Based on personnel data from DoD, CBO estimates that under section 307, about half of the reservists who are activated for medical care would receive and use additional benefits as a result of that service. Section 307 would apply to active-duty service after the date of enactment of the bill; thus, the initial budgetary effect would be small--about
Work-Study Program. Section 308 would renew for five years an expired authority to pay veterans to work in certain positions at
In 2012, the last full year before the authority expired,
In-State Tuition for Dependents. For dependents who receive transferred benefits under chapter 33, section 408 would require public institutions of higher learning to set tuition and fees at rates that are no higher than those charged to state residents. Institutions that declined to do so would be disapproved for attendance by students using
Section 408 is similar to a requirement in current law that public institutions must offer in-state tuition rates to veterans who were discharged within the three-year period preceding their enrollment in the institution. That requirement should similarly reduce mandatory spending under the YRP. However, the Secretary of
Loan Guarantee Limit.
Section 501 would eliminate the cap on the loan amount for which
[Footnote 1: Under the Federal Credit Reform Act of 1990, the subsidy cost of a loan guarantee is the net present value of estimated payments by the government to cover defaults and delinquencies, interest subsidies, or other expenses, offset by an payments to the government, including origination fees, other fees, penalties, and recoveries on defaulted loans. Such subsidy costs are calculated by discounting those expected cash flows using the rate on
Spending subject to appropriation
H.R. 3016 would expand the types of medical care provided by
Medical Care. The bill would expand neonatal care, increase the benefits paid to podiatrists at
Care for Newborns. Section 103 would authorize
Based on data from
Table 3- Budgetary Effects of H.R. 3016, The Veterans Employment, Education, and Health Care Improvement Act
To view the table, click this link: http://thomas.loc.gov/cgi-bin/cpquery/17?&sid=cp114O4coM&refer=&r_n=hr358.114&db_id=114&item=17&&sid=cp114O4coM&r_n=hr358.114&hd_count=50&item=17&&sel=TOC_215454&
Podiatrists. Section 101 would require
Dog Training Therapy. Section 106 would require
Outreach on Credit Protection. Section 105 would require
Section 105 would also require the
Disability compensation;
Pension, dependency and indemnity compensation, burial, and fiduciary programs;
Readjustment benefits (including education and vocational rehabilitation benefits);
Home-loan guarantees;
Small business programs; and
Insurance.
This bill would transfer some programs that are currently administered by VBA to VEOTA. Under this new organizational structure, all readjustment benefit programs (including employment programs), the home-loan guarantee program, and veterans' small business programs would instead be managed by VEOTA. VBA and VEOTA each would be led by an Undersecretary. Section 201 would limit the total number of full-time equivalent (FTE) positions serving in both administrations to 22,118 in fiscal years 2017 and 2018.
Based on information from
CBO estimates that establishing VEOTA and transferring the programs, personnel, and accompanying assets and hiring the additional 20 personnel would cost
Veterans Employment and Training Services. In 2014, DOL employed about 230 individuals and spent about
Many of the transferred programs are grant programs that require grant management and data collection systems to analyze and evaluate the effectiveness of each program. Under current law, DOL relies on its customized IT systems to manage those programs. Those systems are currently used throughout DOL and embedded in the department's greater IT infrastructure. CBO expects that
Based on information from DOL, CBO estimates that about 140 of the 230 transferring employees work outside of the
Because
Benefit Processing Improvements. H.R. 3016 would make several changes to the systems and methods used to process benefit claims. In total, those changes would increase costs by
Claims Processing. Section 407 would require
Section 310 would require
CBO estimates that implementing those provisions would cost
Information on Benefit Entitlement. Section 402 would require
Reports, Surveys, and Studies. The bill would require
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3016 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS
To view the table, click this link: http://thomas.loc.gov/cgi-bin/cpquery/17?&sid=cp114O4coM&refer=&r_n=hr358.114&db_id=114&item=17&&sid=cp114O4coM&r_n=hr358.114&hd_count=50&item=17&&sel=TOC_215454&
Increase in long term direct spending and deficits: CBO estimates that enacting H.R. 3016 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026.
Intergovernmental and private-sector impact H.R. 3016 contains no intergovernmental or private-sector mandates as defined in UMRA and would impose no costs on state, local, or tribal governments. State agencies that serve veterans would benefit from contact and service information about veterans provided electronically by
Previous cost estimates: On
Estimate prepared by: Federal Costs:
Estimate approved by:
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal mandates regarding H.R. 3016, as amended, prepared by the Director of the
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act would be created by H.R. 3016, as amended.
STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to Article I, section 8 of the United States Constitution, the reported bill is authorized by
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act.
STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS
Pursuant to section 3(g) of
DISCLOSURE OF DIRECTED RULEMAKING
Pursuant to section 3(i) of
The full text of the report is found at: http://thomas.loc.gov/cgi-bin/cpquery/17?cp114:temp/~cp114O4coM&sid=cp114O4coM&item=17&sel=TOCLIST&l_f=351&l_file=list/cp114ch.lst&l_b=301&l_file=list/cp114ch.lst&report=hr358.114&hd_count=50&&&l_t=435&&&
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