July 27, 2005

Contact: Jeff Schrade (202)224-9093

(Washington, DC) Senate and House negotiators working the Interior Appropriations bill have agreed to the $1.5 billion number adopted by the Senate several weeks ago to cover a budget shortfall in the Department of Veterans Affairs health care budget for 2005. Sen. Larry Craig, who sponsored the $1.5 billion amendment, was a member of the Senate negotiating team that reached agreement with the House.

"This is good news for veterans. It sends a strong signal that their health care needs will be met this year and next," said Craig, who serves as chairman of the Senate Committee on Veterans' Affairs.

A final vote on the Interior bill will occur before Congress adjourns for the August recess. The fiscal year ends September 30.

"I'm glad that we have seen veterans through on this one," Craig said. "The effort to finalize the funding for the VA's 2005 has been a long one."

On June 28, the U.S. Senate Committee on Veterans' Affairs held a hearing at which VA Secretary Jim Nicholson testified that VA needed "approximately $1.5 billion." Two days later, the Senate voted for Craig's amendment to add $1.5 billion the Interior Appropriations bill for veterans.

The same day the Senate took that action, the House of Representatives approved a stand alone bill which would have granted the VA $975 million for the remainder of 2005. The Senate adjourned for the 4th of July recess without taking up the legislation passed by the House.

On July 12, the Senate passed another amendment ? this one to the Homeland Security bill ? which would have also added $1.5 billion for the VA. The vote was 96-0. A short time later Veterans Administration officials indicated that the agency needed an additional $2.952 billion in money for the end of 2005 and 2006.

"The confusion over the numbers has now come to a close. $1.5 billion is it for 2005," Craig said. "The remainder of the administration's 2005 and 2006 request will be part of the 2006 budget."

The addition of $1.5 billion brings the total for VA's health care budget for 2005 to over $28 billion.

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