June 27, 2005
Contact: Jeff Schrade
202-224-9093

(Washington, DC) Secretary of Veterans Affairs Jim Nicholson will appear before the U.S. Senate Committee on Veterans' Affairs tomorrow, Tuesday, June 28, concerning the more-than $1 billion budget shortfall for the agency, Chairman Larry Craig confirmed today.

The starting time for the emergency hearing has now been set for 11 a.m., instead of 10:30 a.m. as previously announced.

Congress recently approved a $71 billion budget for 2006, which includes an additional $450 million in additional fundingwhich Chairman Larry Craig sought above the President's request, . The total budget for 2006 is now scheduled to be $1.2 billion larger than the VA's budget for 2005.

Since that $1.2 billion increase was approved, VA officials have been using a reported $600 million from the VA's capital infrastructure fund, and drawing down $400 million on money planned for carry-over into next year's budget, to fund the health care need of veterans this year.

Three members of the Senate Veterans' Affairs Committee ? Chairman Larry Craig (R-Idaho), Sen. Kay Bailey Hutchison (R-Texas) and Sen. Patty Murray (D-Washington) ? are also members of the Senate Appropriations Committee Senate Appropriations Committee which will decide the funding process to fill the shortfall. Because the House has already passed its VA appropriations bill, the Senate is the only forum to have the debate on how to address this problem.

The hearing, titled, "Emergency Hearing to Examine the Shortfall in VA's Medical Care Budget" will be held Tuesday, June 28, in room 418 of the Russell Senate Office Building, starting at 11 a.m. It will be webcast live on the committee's website. It may also be audiocast on C-SPAN's hearing's website, located at http://www.capitolhearings.org.

Witnesses

The Honorable R. James Nicholson, Secretary of Veterans Affairs, accompanied by
     ? The Honorable Dr. Jonathon Perlin, Veterans Affairs Under Secretary for Health
      ? The Honorable Tim S. McClain, General Counsel and interim Chief Management Officer

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