February 14, 2006
Media contact: Jeff Schrade (202)224-9093

(Washington, DC) At a hearing concerning President Bush's record spending budget proposal for the Department of Veterans Affairs, U.S. Sen. Larry Craig praised the president's commitment to our nation's former servicemen and women, while at the same time warning that federal spending on veterans' programs is on a collision course with other federal spending.

"When I first learned of the President's request I was, on the one hand, pleased that President Bush again made care for veterans a top budget priority, and on the other hand, sobered," said Craig (R-Idaho), who serves as chairman of the U.S. Senate Committee on Veterans' Affairs.

[See photographs and charts from today's hearing by clicking here: 2006 - Feb 16 VA Budget hearing.]

Should Congress approve the President's latest proposal, which seeks about $80 billion for 2007, spending on VA will have increased 64 percent since 2001. At present rates of spending, VA's budget will have gone from $48 billion in 2001 to over $100 billion in the next three years.

"What will occur in the near future -- be it under the current discretionary funding process or under a mandatory funding formula -- is that VA spending will collide with spending demands made in other areas of government," Craig said. "I ask all of my colleagues and the veterans' organizations: What do we do in the face of this challenge?"

Ten years ago when Congress created a then-new system for prioritizing veterans into eight separate categories, a broad coalition of veteran service organizations (VSO's), called for charging fees for higher income veterans, those without service connected disabilities, to access VA medical care.

This year the Bush administration once again asked Congress to do just: allow VA to charge higher income veterans ? those with no service connected injuries or disabilities ? $21 a month to access VA health care. But the same VSO's which once advocated for those fees now oppose them.

"I was convinced that the President's request would unite Republicans, Democrats, and the veterans' advocates. Surely a budget plan proposing an 11.3 percent increase in medical care during a time of war, high deficits, and restrained discretionary spending in every account unrelated to national security was one we could all support," Craig said. "Boy, was I wrong."

Since the budget numbers were released, various senators and interest groups have blasted the financial proposal. Some of them have said that the record budget increase for veterans sends the wrong message to, and may be inadequate for, those servicemen and women now in Iraq and Afghanistan.

Chairman Craig disagreed.

"VA's budget tells us that just over 2 percent of its medical care patients are veterans from Operations Iraqi Freedom or Enduring Freedom. It is hard to imagine that within its $35 billion medical care budget VA does not have the funds to care for returning combat-wounded veterans," Craig said.

The Idaho Republican sponsored legislation last year which provides those servicemembers wounded and injured since 2001, anywhere from $25,000 to $100,000 to help offset the expenses they incur while they recuperate. The first checks went out just before this past Christmas.

"I am clearly dedicated to our seeing that our service men and women receive the highest quality of care we can provide," Craig said. But, he said, there are financial realities which must be faced.

"If the President's proposals are not acceptable, then let's discuss other options. Either way, we cannot pretend that taxpayer funding of programs that support our nation's veterans exist in a vacuum. VA's budget presents mathematical realties that Congress will be forced to address," Craig said.

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