House moves to provide VA infusion to address shortfall

The House is moving to provide as early as Thursday an emergency fiscal 2005 supplemental appropriation of about $975 million for the Veterans Affairs Department, seeking to show support for veterans before the July 4 recess.

Senate leaders were also looking at a stand-alone bill, even as they added $1.5 billion for VA health care to an unrelated appropriations measure Wednesday.

Veterans Affairs Secretary James Nicholson was expected to outline the estimated $975 million FY05 request at a hearing Thursday morning before the House Veterans Affairs Committee, and aides said a stand-alone supplemental might be on the floor as early as Thursday.

Senate action might follow, but senators were still examining their options.

"If we get a clean supp, I'd be OK with that. If it turns into a Christmas tree, that could delay needed funds," said Senate Military Construction and Veterans Affairs Appropriations Subcommittee Chairwoman Kay Bailey Hutchison, R-Texas.

VA funds might still be included in the Interior bill as a fallback.

The Senate approved the added funds to the $26.3 billion fiscal 2006 Interior Appropriations bill Wednesday on a 96-0 vote, aiming to cover the fiscal 2005 shortfall and provide a cushion for the first few months of fiscal 2006, until Congress approves additional VA funds.

The additional funds would go toward replenishing maintenance and equipment accounts the agency raided to make up for a shortfall in health care funds, and for paying back funds intended for use next fiscal year.

The department also faces a funding gap for 2006, when they will have to make up for money already spent and unforeseen workload increases.

After adding the additional funds to the Interior spending bill, the Senate approved the underlying bill, 94-0.

But with the 2006 elections on senators' minds, the votes came only after sharp words exposing underlying partisan divisions -- particularly evident during a testy exchange between Minority Leader Harry Reid, D-Nev., and Republicans including Republican Conference Chairman Rick Santorum of Pennsylvania. Santorum faces a tough re-election battle next year.

The agency and the Office of Management and Budget are working on a budget amendment for 2006 that might be another $1.1 billion and would be attached to another 2006 spending bill.

Lawmakers were spurred to action by revelations of a $975 million 2005 shortfall, plugged by shifting $600 million from capital projects and $375 million set aside as a contingency fund for 2006.

Department officials told lawmakers the gap is due to three-year old budget projections that did not take into account rising long-term care costs or soldiers returning from Iraq and enrolling in the VA health care system.

But Democrats argued they have been calling for increased VA health care funds for months, only to be rebuffed by the White House and GOP leaders.

Even as Republican and Democratic senators were joining forces to co-sponsor the $1.5 billion amendment, Reid took to the floor to lambaste Nicholson for a "deceitful" decision to cover the health care shortfall discovered in April with other funds without informing Congress, and suggested the only reasons Republicans were supporting more funds now were political.

Reid also said of Nicholson, a former RNC Chairman: "By the way, his qualifications are, he was chairman of the national Republican Party."

Senate Veterans Affairs Committee Chairman Larry Craig, R-Idaho, responded that he was "highly disappointed" in Reid's remarks and defended Nicholson's devotion to veterans as a former Army ranger and paratrooper and 22-year reservist.

Santorum called Reid's comments an "insult" to Nicholson and "his service to our country," and said the remarks "were beneath the leader of the Democratic Party."

Reid later apologized for not acknowledging Nicholson's military service, but said "I will not be lectured by the junior senator from Pennsylvania, who has repeatedly disrespected veterans."

Reid cited three votes by Santorum against increased veterans funds, adding "now, with an election cycle upon us he supports, under pressure, voting for veterans. Talk about crass politics."