February 6, 2006
Media contact: Jeff Schrade (202)224-9093

(Washington, DC) U.S. Senator Larry Craig, Chairman of the U.S. Senate Committee on Veterans' Affairs, said that today's proposed record $80.6 billion budget for the U.S. Department of Veterans Affairs next year brings both good news for veterans, and a reality check for Congress.

"The President has always made it clear that military veterans are among his highest priorities, and he has demonstrated that today with this budget," Craig said.  Under the leadership of President Bush, VA's budget has increased more than 50 percent since 2001.

The proposed VA budget for 2007 asks for $8.8 billion more than this year's funding level, a number which is a 12.2 percent increase above the 2006 budget. With that money VA would be able to provide medical services to an estimated 5.3 million patients.

"Last year I was extremely critical of VA's budget problems. But this year, with this budget, Congress can quickly dispense with the debate about the adequacy of the President's request, and instead focus more attention on the long term sustainability of double-digit increases in VA's budget," Craig said. "Last year our nation's overall inflation rate was 3.4 percent, which means this year's proposed VA budget is three and a half times greater than the rate of inflation. These are mathematical realities that merit very serious attention."

The President's proposed increase include $3.5 billion more for health care (11 percent more than last year), $457 million for on-going construction for the Capital Asset Realignment for Enhanced Services (CARES) health care modernization effort, and a mandatory spending increase of $5.4 billion (14.5 percent) for a variety of payments to veterans: disability compensation, pension payments, survivor payments, education payments, vocational rehabilitation, and loan guaranties.

"These are stunning increases that are going to require a reality check from Congress," Craig said.

Since the start of military operations four years ago, approximately 16,500 servicemembers have been injured or wounded, with approximately half of those warriors able to return to duty within 72 hours.

"From 2005 through 2007, VA is anticipating that over 266,000 veterans [net] will be granted disability compensation. Exploring that increase, unprecedented during my time in the Senate, will be a topic of discussion of my committee this year," Craig said.

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