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DEPARTMENT OF VETERANS AFFAIRS
Since 2001, the Administration:
• Increased the medical care budget by 83.4 percent, an average of 9.1 percent a year;
• Provided medical care to over 155,000 returning Operation Iraqi Freedom and Operation
Enduring Freedom servicemembers in 2006;
• Expanded the national cemetery system to ensure that more aging veterans will have a burial
option within 75 miles of their homes;
• Delivered on its promise to award disability claims faster; and
• Expanded and improved seamless transition from active duty to civilian status, including
access to Department benefits.
The President’s 2008 Budget:
• Meets the growing health care needs of our Nation’s veterans;
• Expands the Department’s ability to provide mental heath care and prosthetics, especially to
servicemembers returning from Iraq and Afghanistan;
• Supports continued restructuring of the medical care system to ensure health care services
are available where veterans live;
• Funds the construction of six new veterans’ cemeteries in five States to accommodate
increased burials primarily of veterans of World War II, and the Korean and Vietnam Wars;
and
• Continues the collaboration between the Department of Veterans Affairs and the Department
of Defense to better serve veterans and returning Operation Iraqi Freedom and Operation
Enduring Freedom servicemembers.

117

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DEPARTMENT OF VETERANS AFFAIRS

FOCUSING ON THE NATION’S PRIORITIES
Expanding Access to Health Care for Veterans
The President’s 2008 Budget for the Department of Veterans Affairs (VA) proposes $36.6 billion
(including collections) for medical care—83 percent more than when President Bush took office. VA
operates the largest direct health care delivery system in the country, providing care at over 800
locations to over five million veterans. The Department is recognized as a leader in using high
standards and technology to improve the quality of health care.

Providing Increases in Health Care and
Other Services for Veterans
Budget authority in billions of dollars

45
Medical Care
Total VA

40
35

81-percent increase
from 2001 to 2008

30
25
83-percent increase
from 2001 to 2008

20
15
2001

2002

2003

2004

2005

2006

2007

Today, VA treats a million more veteran
patients a year than it did in 2001. Caring
for returning combat veterans and veterans
with military disabilities, low incomes, and
special needs has always been VA’s core
medical care mission and its highest priority.
To continue to prioritize resources for these
targeted veterans, the 2008 Budget proposes
income-based enrollment fees and higher
pharmaceutical copayments for all other
veterans, better aligning the VA system with
the fees paid by career military retirees under
the healthcare system at the Department of
Defense (DOD).

2008

VA continues to expand access to
non-institutional long-term care, enabling
veterans to live and be cared for near or in the comfort of their homes surrounded by family. In
addition, veterans from all combat eras are requiring more prosthetics and sensory aids. The
Budget proposes $1.3 billion to meet this need. The President’s Budget also recognizes the increased
need for mental health care services and provides a total investment of $3 billion to afford a full
continuum of care for veterans with mental health issues.
The 2008 Budget provides $750 million in medical care construction funds to better align facilities
with patient needs, bringing the total investment to $3.7 billion since 2004. This funding will provide
care in places where veterans needs are greatest, improving access to both primary and specialty
care services.

Improving Benefits for Veterans and their Families
Veterans’ disability compensation is a monthly cash benefit paid to veterans for income loss due to
service-related disabilities. In 2008, more than three million veterans and beneficiaries will receive
approximately $37 billion in tax-free benefits from VA, an 84-percent increase in total payments
from 2001. When President Bush took office, the number of disability benefit claims waiting to be
processed had soared to over 600,000, resulting in many veterans waiting an average of over 230
days for VA to process their claims. Several statutory requirements have expanded eligibility and
increased claim volume over the last six years, further impeding timeliness. The Administration and
VA are committed to reducing processing time by continually improving methods and technology.
In 2006, the average length of time to process a veteran’s disability claim dropped to 177 days. To

THE BUDGET FOR FISCAL YEAR 2008

119

continue improvement in processing veterans’ disability claims, the Budget provides resources to
further reduce the processing time to 145 days.
VA honors veterans with a hallowed final resting place at 125 national veterans’ cemeteries in
39 States and Puerto Rico. These cemeteries are maintained as national shrines and serve as a
lasting tribute to commemorate veterans’ sacrifice for this Nation. VA is currently experiencing the
largest expansion of the national cemetery system since the Civil War. On Veterans Day 2003, the
President signed into law P.L. 108-109, the National Cemetery Expansion Act of 2003, directing the
establishment of six new national cemeteries—two in Florida and one each in Alabama, California,
Pennsylvania, and South Carolina. The 2008 Budget fully funds the final design and construction
of these cemeteries and advances the President’s goal of ensuring that most veterans have a final
resting place within 75 miles of their homes.

Ensuring a Seamless Transition for Veterans Leaving the Military
President Bush identified increased coordination of VA and DOD programs and systems as one of
the 14 key management priorities for his Administration, and these efforts have resulted in more
efficient delivery of services and benefits to active and separated servicemembers and their families.
In 2008, nearly 263,000 returning servicemembers from Iraq and Afghanistan will receive medical
care from VA. VA outreach programs ensure that returning combat veterans know how to access
care quickly and with minimal paperwork. VA caseworkers are stationed at major DOD hospitals to
make direct contact with those leaving the service. VA and DOD are also working together to identify
departing servicemembers who may be at risk for Post Traumatic Stress Disorder and to determine
the appropriate care best suited to each veteran.
The Departments have made great progress in sharing electronic data necessary to make eligibility
determinations for VA benefits and services for separated servicemembers. Over the past year, the
Departments have reduced the time it takes for making DOD deactivation and separation data available to VA hospital and benefits processing centers from 90 days to within 3 days. Increased data
sharing between VA and DOD lessens the burden on the veteran for providing requested information,
thus reducing the time necessary for VA to complete decisions and for the veteran to receive benefits
and services. VA continues to reach out to educate all servicemembers on VA benefits, offering assistance in applying for these benefits prior to separation from active duty. Under this Administration,
VA and DOD have proactively partnered to better share valuable resources benefiting veterans and
military beneficiaries.

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DEPARTMENT OF VETERANS AFFAIRS

Department of Veterans Affairs
(In millions of dollars)
Estimate

2006
Actual

2007

2008

Spending
Discretionary Budget Authority:
Medical Care ..........................................................................................................

28,772

29,312

34,202

Medical Collections (non-add) ...................................................................
Total, Medical Care with collections (non-add) ....................................
Medical and Prosthetic Research ...................................................................

1,994
30,766
412

2,198
31,510
409

2,352
36,554
411

Information Technology ......................................................................................
Construction ...........................................................................................................
Veterans Benefits Administration ....................................................................
General Administration .......................................................................................
Housing and Other Credit..................................................................................
National Cemetery Administration..................................................................
Office of Inspector General ...............................................................................
Other funds and transactions ...........................................................................
Total, Discretionary budget authority .................................................................
Total, Discretionary budget authority (with medical collections) .............

1,214
923
1,054
296
155
150
69
175
32,869
34,863

1,077
555
1,103
335
155
156
69
—
33,171
35,369

1,859
1,078
1,198
274
156
167
73
—
39,418
41,769

...............

1,206

—

—

Total, Discretionary outlays ...................................................................................

32,313

33,359

38,476

Memorandum: Budget authority from enacted supplementals

Mandatory Outlays:
New Proposed Medical Care Receipts .........................................................
Benefit Programs:
Disability Compensation and Pensions....................................................
Education Benefits...........................................................................................
Vocational Rehabilitation and Employment ............................................
Housing................................................................................................................
Insurance ............................................................................................................
Other receipts and transactions ..................................................................
Total, Mandatory outlays ........................................................................................

—

—

355

34,680
2,376
573
46
1,237
1,416
37,496

35,849
2,660
618
67
1,278
1,504
38,968

41,046
2,620
668
19
1,297
481
44,814

Total, Outlays ..............................................................................................................

69,809

72,327

83,290

Credit activity
Direct Loan Disbursements:
Vendee and Acquired Loans ............................................................................
All other programs ................................................................................................
Total, Direct loan disbursements .........................................................................

166
8
174

337
7
344

530
7
537

Guaranteed Loan Disbursements:
Veterans Home Loans ........................................................................................
Total, Guaranteed loan disbursements .............................................................

23,500
23,500

28,260
28,260

29,104
29,104