Bush administration weighing amendment to cover VA budget shortfall

The Bush administration might advise lawmakers as early as Tuesday that it intends to ask Congress for an additional $1 billion or so in fiscal 2006 for the Veterans Affairs Department, following last week's disclosure of a gap in healthcare funds that has caused the agency to dip into money set aside for other projects to meet the needs of veterans returning from Iraq and Afghanistan.

Veterans Affairs Secretary Jim Nicholson is scheduled to testify at a pair of hearings Tuesday, before the House Military Quality of Life and Veterans Affairs Appropriations Subcommittee and the Senate Veterans Affairs Committee.

Congressional aides said it was possible Nicholson would announce at the hearings that the administration would submit an amendment to its fiscal 2006 budget request.

An administration official would say only that Nicholson is expected to provide more details of how the administration plans to address next year's shortfall.

The White House has told lawmakers it has sufficient funds to cover the VA healthcare gap for this fiscal year, ending Sept. 30, but is facing a budget shortfall next year due to the VA's reallocation of funds.

The House has already passed an $85.2 billion fiscal 2006 Military Quality of Life and Veterans Affairs appropriations bill, but additional funds might be attached to the Senate version, which will be debated next month.

Nicholson is expected to explain in further detail Tuesday how the agency's budget forecasts came up short.

Administration officials have told lawmakers that to make up the estimated $1 billion fiscal 2005 healthcare shortfall, the department has had to delay around $600 million -- for needs ranging from fixing leaky roofs to buying new medical equipment -- into the next fiscal year, and spend another $450 million that had been originally budgeted for fiscal 2006.

Those needs will still be there next year. House Military Quality of Life and Veterans Affairs Appropriations Subcommittee Chairman James Walsh, R-N.Y., said that to close the gap, lawmakers might have to make room for an additional $1 billion in the fiscal 2006 appropriations process. "If we need more money we'll find it," said Walsh, who spoke with OMB Director Bolten about the issue Monday.

Meanwhile, Democrats are seeking to outflank the White House by moving immediately to augment veterans' spending. House Democrats, led by Military Quality of Life and Veterans Affairs Appropriations Subcommittee ranking member Chet Edwards, D-Texas, might try to add $1 billion in fiscal 2005 emergency funds to the $20.3 billion fiscal 2006 Foreign Operations appropriations bill scheduled for the floor today, after having failed on procedural grounds to do so on the Labor-HHS measure last week.

Senate Democrats have offered an amendment to attach an extra $1.42 billion in emergency funds to the $26.3 billion fiscal 2006 Interior appropriations bill that could be voted on as early as Tuesday.

That would cover the $1 billion fiscal 2005 shortfall while protecting capital funds, as well as another $420 million in flexible funds Democrats argue is necessary for veterans' regional networks to open new clinics and meet local needs.

Senate Appropriations ranking member Robert Byrd, D-W.Va., who co-sponsored the amendment with Sen. Patty Murray, D-Wash., and Senate Military Construction and Veterans Affairs Appropriations Subcommittee ranking member Dianne Feinstein, D-Calif., said the administration "intends to respond to the shortfall on the cheap by robbing Peter to pay Paul."