| Date | May 30, 2012 (112th Congress, 2nd Session) |
| Staff Contact | Andy Koenig |
On Thursday, May 31, 2012, the House is scheduled to begin consideration of H.R. 5854, the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2013, under a rule. The bill was introduced on May 23, 2012, by Rep. John Culberson (R-TX) and referred to the Committee on Appropriations.

H.R. 5854 would provide a total of $71.7 billion in non-emergency, discretionary budget authority for Military Construction and Veterans Affairs in FY 2013, which is the same as the FY 2012 level. The bill would provide $10.6 billion for military construction projects, a decrease of $2.4 billion below last year’s level and $573 million below the President’s request. Funding for Department of Veterans Affairs (VA) programs in FY 2013 would include $60.7 billion in discretionary funding which is $2.3 billion above last year. In addition, the legislation would provide $54.5 billion in advance appropriations for VA medical accounts in FY 2014. Including $74.6 billion in mandatory spending, which does not count against the subcommittee’s allocation, the bill would provide a total of $146.3 billion in budget authority for Military Construction and Veterans Affairs funding in FY 2013. H.R. 5854 would contribute to an overall level of discretionary budget authority of $1.028 trillion for FY 2013 as contained in H.Con.Res. 112, the Concurrent Resolution on the Budget for Fiscal Year 2013.
TITLE I—Department of Defense and Military Construction
The bill would provide $10.6 billion for military construction projects, a decrease of $2.4 billion below last year’s level and $573 million below the President’s request. According to Committee Report 112-491, a significant portion of this decrease is attributed to the deliberate pause in military construction by the Air Force and a continued decline in funding requirements for the BRAC 2005 process.
Department of Defense Military Construction: The bill would provide a total appropriation of $8.7 billion for Department of Defense (DoD) military construction, a decrease of $2.6 billion below last year and $338 million below the President’s request. This funding provides for the Army, Navy and Marine Corps, Air Force and Defense-wide military construction, including reserve and National Guard construction.
Military Family Housing: The bill would provide a total of $1.65 billion for family housing maintenance and construction, which is a decrease of $32 million below last year and the same amount as the President’s request. According to the Committee, the funding provided will ensure quality housing is continued for 1,231,044 military families, and also supports privatization efforts of the remaining 7 percent of DoD family housing inventory.
NATO Security Investment Program: The bill would provide $247 million for the North Atlantic Treaty Organization (NATO) Security Investment Program, an increase of $6 million over last year and the same as the President’s request. The program finances the provision of the installations and facilities needed to support the roles of NATO Strategic Commands. These investments cover such installations and facilities as communications and information systems, radar, military headquarters, airfields, fuel pipelines and storage, and harbors.
TITLE II—Department of Veterans Affairs
The legislation includes a total of $135.4 billion in combined discretionary and mandatory funding for the Department of Veterans Affairs. Funding includes $60.7 billion in appropriated funding and $74.6 billion in mandatory spending. Discretionary funding in the bill is $2.3 billion above last year’s level and $258 million below the President’s request. Approximately $52 billion of this discretionary total was provided last year via an advance of funding in the FY 2012 appropriations bill.
Veterans Benefits Administration: The bill would provide a total mandatory and discretionary funding level of $61.7 billion for the Veterans Benefits Administration, an increase of $10.5 billion or 20 percent over FY 2012 and equal to the President’s request. The vast majority of the Veterans Benefits Administration’s funds are provided through mandatory spending for compensation, pensions, burial benefits, and other veterans’ benefits that were established in previous legislation.
Readjustment Benefits: Funding provided to the Veterans’ Benefits Administration would include $12.6 billion in readjustment benefits which finances the education and training of veterans and service members. The funding level represents an increase of $499 million or 4 percent over FY 2012 and is equal to the President’s request.
Veterans Health Administration: The bill would provide a total of $52 billion for the Veterans Health Administration, an increase of $1.9 billion over FY 2012 and equal to the President’s request. Funding for the Veterans Health Administration medical services comes primarily from advanced appropriations from previous years. Advanced appropriations from previous funding measures for the VA Administration for FY 2014 includes $41.3 billion for Veterans Medical Services, $5.7 billion for Medical Support Compliance and $5.4 billion for Medical Facilities. The bill also contains $54.5 billion in advanced appropriations to finance these programs in FY 2014.
Information Technology: The bill would provide $3.3 billion for VA information technology needs at medical facilities, an increase of $216 million or 7 percent above from FY 2012 and the same as the President’s request.
Operating Expenses: The bill would provide $2.1 billion for general VA operating expenses, an increase of $145 million above last year and the same as the President’s request.
VA Construction: The bill would provide $532 million for major VA construction projects, a decrease of $57 million from last year and the same as the President’s request. The bill would also provide $607 million for minor VA construction projects, an increase of $125 million above last year and the same as the President’s budget request.
VA Inspector General: The bill would provide $113 million for the Department of Veterans Affairs Office of Inspector General, the same amount as last year and the same amount as the President’s request.
Advanced Appropriations: The bill would provide $54.5 billion in advance fiscal year 2014 appropriations for the Veterans Health Administration for medical services, medical support, and medical facilities.
TITLE III—Related Agencies
American Battle Monuments Commission: The American Battle Monuments Commission, responsible for operating and supporting U.S. military monuments and cemeteries around the world, would be funded at $75 million, a decrease of $2 million from last year and $890,000 above the President’s budget request.
Arlington National Cemetery: The bill would provide $173 million for the operation of Arlington National Cemetery, $128 million more than last year and the President’s request.
Armed Forces Retirement Home: The bill would provide $67 million for the Armed Forces Retirement Home Trust Fund, the same as the President’s request.
Additional Provisions
Use of Funds: The bill would prohibit funds from being made available to acquire land, provide for site preparation, or install utilities for any family housing, unless it has been made available in appropriations for military construction.
Steel Procurement: The bill would prohibit the procurement of steel unless U.S. producers and manufacturers are able to compete.
Project Labor Agreements: The bill would prohibit the use of funds for construction bid solicitations that require or prohibit project labor agreements.
E-Verify: The bill would prohibit the use of funds for any contract where the contractor has not complied with E-Verify requirements. E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States.
Guantanamo Bay Detainees: The bill would prohibit the use of funds for the renovation, expansion, or construction of any facility in the continental United States for the purpose of housing any individual who has been detained at the United States Naval Station, Guantanamo Bay, Cuba.
Total Budget Authority (In Thousands) | |||||||
Program | FY 2012 Enacted | President's Request | H.R. 5854 | Change From FY 2012 | Change From Request | % Change from 2012 | % Change From Request |
TITLE I--Department of Defense Military Construction | |||||||
Army Military Construction | 3,006,491 | 1,923,323 | 1,820,323 | -1,186,168 | -103,000 | -39.5% | -5.4% |
Navy and Marine Corps Military Construction | 2,112,823 | 1,701,985 | 1,551,217 | -561,606 | -150,768 | -26.6% | -1.0% |
Air Force Military Construction | 1,227,058 | 388,200 | 388,200 | -838,858 | 0 | -68.4% | -8.6% |
Defense-Wide Military Construction | 3,431,957 | 3,654,623 | 3,569,623 | 137,666 | -85,000 | 4.0% | -8.2% |
Reserve Components | 1,230,306 | 1,022,542 | 1,022,542 | -207,764 | 0 | -16.9% | 0.0% |
NATO Security Investment | 247,611 | 254,163 | 254,163 | 6,552 | 0 | 2.6% | 0.0% |
Family Housing Maintenance and Construction | 1,682,946 | 1,650,781 | 1,650,781 | -32,165 | 0 | -1.9% | 0.0% |
Chemical Demilitarization Construction | 75,312 | 151,000 | 151,000 | 75,688 | 0 | 100.5% | 0.0% |
Base Realignment and Closure | 582,319 | 476,093 | 476,093 | -106,226 | 0 | -18.2% | 0.0% |
Department of Defense Military Construction Total | 13,049,647 | 11,222,710 | 10,649,317 | -2,400,330 | -573,393 | -18.4% | -5.1% |
TITLE II - Department of Veterans Affairs | |||||||
Compensation and Pensions | 51,237,567 | 61,741,232 | 61,741,232 | 10,503,665 | 0 | 20.5% | 0.0% |
Readjustment Benefits | 12,108,488 | 12,607,476 | 12,607,476 | 498,988 | 0 | 4.1% | 0.0% |
Veterans Insurance and Indemnities | 100,252 | 104,600 | 104,600 | 4,348 | 0 | 4.3% | 0.0% |
Veterans Housing Benefit Program (administrative) | 154,698 | 157,814 | 157,814 | 3,116 | 0 | 2.0% | 0.0% |
Medical Services (Advanced Appropriation for FY 2014) | 41,354,000 | 43,557,000 | 43,557,000 | 2,203,000 | 0 | 5.3% | 0.0% |
Medical Support Compliance (Advanced Appropriation for FY 2014) | 5,746,000 | 6,033,000 | 6,033,000 | 287,000 | 0 | 5.0% | 0.0% |
Medical Facilities (Advanced for FY 2014) | 5,441,000 | 4,872,000 | 4,872,000 | -569,000 | 0 | -10.5% | 0.0% |
Medical and Prosthetic Research | 581,000 | 582,674 | 582,674 | 1,674 | 0 | 0.3% | 0.0% |
National Cemetery Administration | 250,934 | 258,284 | 258,284 | 7,350 | 0 | 2.9% | 0.0% |
General Department Operating Expenses | 2,018,764 | 2,164,074 | 2,164,074 | 145,310 | 0 | 7.2% | 0.0% |
General Administration | 416,737 | 416,737 | 416,737 | 0 | 0 | 0.0% | 0.0% |
Information Technology Systems | 3,111,376 | 3,327,444 | 3,327,444 | 216,068 | 0 | 6.9% | 0.0% |
Office of the Inspector General | 112,391 | 113,000 | 113,000 | 609 | 0 | 0.5% | 0.0% |
Construction of Major Projects | 589,604 | 532,470 | 532,470 | -57,134 | 0 | -9.7% | 0.0% |
Construction of Minor Projects | 482,386 | 607,530 | 607,530 | 125,144 | 0 | 25.9% | 0.0% |
Grants for State Extended Care Construction | 85,000 | 85,000 | 85,000 | 0 | 0 | 0.0% | 0.0% |
Grants for State Veterans Cemetery Construction | 46,000 | 46,000 | 46,000 | 0 | 0 | 0.0% | 0.0% |
Department of Veterans Affairs Discretionary | 58,470,368 | 60,998,481 | 60,739,683 | 2,269,315 | -258,798 | 3.9% | -0.4% |
Department of Veterans Affairs Total* | 122,226,272 | 135,636,648 | 135,377,850 | 13,151,578 | -258,798 | 10.8% | -0.2% |
*This account includes $74.638 billion in mandatory spending which does not count against the subcommittee allocation | |||||||
TITLE III--RELATED AGENCIES | |||||||
American Battle Monuments Commission | 77,100 | 73,600 | 74,490 | -2,610 | 890 | -3.4% | 1% |
US Court of Appeals for Vets Claims | 30,770 | 32,481 | 31,187 | 417 | -1,294 | 1.4% | -4% |
Army Cemeteries Expenses | 45,800 | 45,800 | 173,733 | 127,933 | 127,933 | 279.3% | 279% |
Armed Forces Retirement Home | 82,330 | 67,590 | 67,590 | -14,740 | 0 | -17.9% | 0% |
Related Agencies Total | 236,000 | 219,471 | 347,000 | 111,000 | 127,529 | 47.0% | 58% |
TOTAL FUNDING LEVELS | |||||||
Discretionary Budget Authority | 71,747,000 | 72,440,662 | 71,747,000 | 0 | -693,662 | 0.0% | -1.0% |

According to CBO, H.R. 5854 would provide $71.747 billion in discretionary budget authority for programs funded through the Military Construction and Veterans Affairs appropriations bill for Fiscal Year 2013.
