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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-305

======================================================================

 
  MAKING APPROPRIATIONS FOR MILITARY QUALITY OF LIFE FUNCTIONS OF THE 
    DEPARTMENT OF DEFENSE, MILITARY CONSTRUCTION, THE DEPARTMENT OF 
   VETERANS AFFAIRS, AND RELATED AGENCIES FOR THE FISCAL YEAR ENDING 
               SEPTEMBER 30, 2006, AND FOR OTHER PURPOSES

                                _______
                                

   November 18 (legislative day, November 17), 2005.--Ordered to be 
                                printed

                                _______
                                

  Mr. Walsh, from the Committee of Conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2528]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendments of the Senate to the bill (H.R. 
2528) ``making appropriations for military quality of life 
functions of the Department of Defense, military construction, 
the Department of Veterans Affairs, and related agencies for 
the fiscal year ending September 30, 2006, and for other 
purposes'', having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
    That the House recede from its disagreement to the 
amendment of the Senate to the text, and agree to the same with 
an amendment, as follows:
    In lieu of the matter stricken and inserted by said 
amendment, insert:
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated for military quality of 
life functions of the Department of Defense, military 
construction, the Department of Veterans Affairs, and related 
agencies, for the fiscal year ending September 30, 2006, and 
for other purposes, namely:

                                TITLE I

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

                    (INCLUDING RESCISSIONS OF FUNDS)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Army as currently 
authorized by law, including personnel in the Army Corps of 
Engineers and other personal services necessary for the 
purposes of this appropriation, and for construction and 
operation of facilities in support of the functions of the 
Commander in Chief, $1,775,260,000, to remain available until 
September 30, 2010: Provided, That of this amount, not to 
exceed $170,021,000 shall be available for study, planning, 
design, architect and engineer services, and host nation 
support, as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations of both 
Houses of Congress of the determination and the reasons 
therefor: Provided further, That of the funds provided, 
$50,000,000, to remain available until September 30, 2007, 
shall be for overhead cover systems to support force protection 
activities in Iraq: Provided further, That of the funds 
appropriated for ``Military Construction, Army'' under Public 
Law 107-249, $3,046,000 are hereby rescinded: Provided further, 
That of the funds appropriated for ``Military Construction, 
Army'' under Public Law 108-324, $16,700,000 are hereby 
rescinded.

              Military Construction, Navy and Marine Corps

                    (INCLUDING RESCISSIONS OF FUNDS)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, naval installations, 
facilities, and real property for the Navy and Marine Corps as 
currently authorized by law, including personnel in the Naval 
Facilities Engineering Command and other personal services 
necessary for the purposes of this appropriation, 
$1,157,141,000, to remain available until September 30, 2010: 
Provided, That of this amount, not to exceed $34,893,000 shall 
be available for study, planning, design, and architect and 
engineer services, as authorized by law, unless the Secretary 
of Defense determines that additional obligations are necessary 
for such purposes and notifies the Committees on 
Appropriationsof both Houses of Congress of the determination and the 
reasons therefor: Provided further, That of the funds appropriated for 
``Military Construction, Navy and Marine Corps'' under Public Law 108-
132, $5,767,000 are hereby rescinded: Provided further, That of the 
funds appropriated for ``Military Construction, Navy and Marine Corps'' 
under Public Law 108-324, $44,270,000 are hereby rescinded.

                    Military Construction, Air Force

                    (INCLUDING RESCISSIONS OF FUNDS)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, military installations, 
facilities, and real property for the Air Force as currently 
authorized by law, $1,288,530,000, to remain available until 
September 30, 2010: Provided, That of this amount, not to 
exceed $95,537,000 shall be available for study, planning, 
design, and architect and engineer services, as authorized by 
law, unless the Secretary of Defense determines that additional 
obligations are necessary for such purposes and notifies the 
Committees on Appropriations of both Houses of Congress of the 
determination and the reasons therefor: Provided further, That 
of the funds appropriated for ``Military Construction, Air 
Force'' under Public Law 108-11, $13,000,000 are hereby 
rescinded: Provided further, That of the funds appropriated for 
``Military Construction, Air Force'' under Public Law 108-132, 
$6,600,000 are hereby rescinded: Provided further, That of the 
funds appropriated for ``Military Construction, Air Force'' 
under Public Law 108-324, $9,500,000 are hereby rescinded: 
Provided further, That of the funds appropriated for ``Military 
Construction, Air Force'' under Public Law 109-13, $46,500,000 
are hereby rescinded.

                  Military Construction, Defense-Wide

              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)

    For acquisition, construction, installation, and equipment 
of temporary or permanent public works, installations, 
facilities, and real property for activities and agencies of 
the Department of Defense (other than the military 
departments), as currently authorized by law, $1,008,855,000, 
to remain available until September 30, 2010: Provided, That 
such amounts of this appropriation as may be determined by the 
Secretary of Defense may be transferred to such appropriations 
of the Department of Defense available for military 
construction or family housing as the Secretary may designate, 
to be merged with and to be available for the same purposes, 
and for the same time period, as the appropriation or fund to 
which transferred: Provided further, That of the amount 
appropriated, not to exceed $136,406,000 shall be available for 
study, planning, design, and architect and engineer services, 
as authorized by law, unless the Secretary of Defense 
determines that additional obligations are necessary for such 
purposes and notifies the Committees on Appropriations of both 
Houses of Congress of the determination and the reasons 
therefor: Provided further, That of the funds appropriated for 
``Military Construction, Defense-Wide'' under Public Law 108-
324, $20,000,000 are hereby rescinded.

               Military Construction, Army National Guard

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$523,151,000, to remain available until September 30, 2010.

               Military Construction, Air National Guard

                    (INCLUDING RESCISSION OF FUNDS)

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air National Guard, and contributions 
therefor, as authorized by chapter 1803 of title 10, United 
States Code, and Military Construction Authorization Acts, 
$316,117,000, to remain available until September 30, 2010: 
Provided, That of the funds appropriated for ``Military 
Construction, Air National Guard'' under Public Law 108-324, 
$13,700,000 are hereby rescinded.

                  Military Construction, Army Reserve

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Army Reserve as authorized by chapter 
1803 of title 10, United States Code, and Military Construction 
Authorization Acts, $152,569,000, to remain available until 
September 30, 2010.

                  Military Construction, Naval Reserve

                    (INCLUDING RESCISSIONS OF FUNDS)

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the reserve components of the Navy and Marine 
Corps as authorized by chapter 1803 of title 10, United States 
Code, and Military Construction Authorization Acts, 
$46,864,000, to remain available until September 30, 2010: 
Provided, That of the funds appropriated for ``Military 
Construction, Naval Reserve'' under Public Law 108-132, 
$5,368,000 are hereby rescinded: Provided further, That of the 
funds appropriated for ``Military Construction, Naval Reserve'' 
under Public Law 108-324, $11,192,000 are hereby rescinded.

                Military Construction, Air Force Reserve

                    (INCLUDING RESCISSION OF FUNDS)

    For construction, acquisition, expansion, rehabilitation, 
and conversion of facilities for the training and 
administration of the Air Force Reserve as authorized by 
chapter 1803 of title 10, United States Code, and Military 
Construction Authorization Acts, $105,883,000, to remain 
available until September 30, 2010: Provided, That of the funds 
appropriated for ``Military Construction, Air Force Reserve'' 
under Public Law 108-324, $13,815,000 are hereby rescinded.

                   North Atlantic Treaty Organization

                      Security Investment Program

                    (INCLUDING RESCISSION OF FUNDS)

    For the United States share of the cost of the North 
Atlantic Treaty Organization Security Investment Program for 
the acquisition and construction of military facilities and 
installations (including international military headquarters) 
and for related expenses for the collective defense of the 
North Atlantic Treaty Area as authorized by section 2806 of 
title 10, United States Code, and Military Construction 
Authorization Acts, $206,858,000, to remain available until 
expended: Provided, That of the funds appropriated for ``North 
Atlantic Treaty Organization Security Investment Program'' 
under Public Law 108-324, $30,000,000 are hereby rescinded.

                   Family Housing Construction, Army

                    (INCLUDING RESCISSION OF FUNDS)

    For expenses of family housing for the Army for 
construction, including acquisition, replacement, addition, 
expansion, extension, and alteration, as authorized by law, 
$549,636,000, to remain available until September 30, 2010: 
Provided, That of the funds appropriated for ``Family Housing 
Construction, Army'' under Public Law 108-324, $16,000,000 are 
hereby rescinded.

             Family Housing Operation and Maintenance, Army

    For expenses of family housing for the Army for operation 
and maintenance, including debt payment, leasing, minor 
construction, principal and interest charges, and insurance 
premiums, as authorized by law, $803,993,000.

           Family Housing Construction, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine 
Corps for construction, including acquisition, replacement, 
addition, expansion, extension, and alteration, as authorized 
by law, $218,942,000, to remain available until September 30, 
2010.

    Family Housing Operation and Maintenance, Navy and Marine Corps

    For expenses of family housing for the Navy and Marine 
Corps for operation and maintenance, including debt payment, 
leasing, minor construction, principal and interest charges, 
and insurance premiums, as authorized by law, $588,660,000.

                 Family Housing Construction, Air Force

                    (INCLUDING RESCISSIONS OF FUNDS)

    For expenses of family housing for the Air Force for 
construction, including acquisition, replacement, addition, 
expansion, extension, and alteration, as authorized by law, 
$1,101,887,000, to remain available until September 30, 2010: 
Provided, That of the funds appropriated for ``Family Housing 
Construciton, Air Force'' under Public Law 107-249, $7,700,000 
are hereby rescinded: Provided further, That of the funds 
appropriated for ``Family Housing Construction, Air Force'' 
under Public Law 108-132, $4,500,000 are hereby rescinded: 
Provided further, That of the funds appropriated for ``Family 
Housing Construction, Air Force'' under Public Law 108-324, 
$31,700,000 are hereby rescinded.

          Family Housing Operation and Maintenance, Air Force

    For expenses of family housing for the Air Force for 
operation and maintenance, including debt payment, leasing, 
minor construction, principal and interest charges, and 
insurance premiums, as authorized by law, $766,939,000.

         Family Housing Operation and Maintenance, Defense-Wide

    For expenses of family housing for the activities and 
agencies of the Department of Defense (other than the military 
departments) for operation and maintenance, leasing, and minor 
construction, as authorized by law, $46,391,000.

         Department of Defense Family Housing Improvement Fund

    For the Department of Defense Family Housing Improvement 
Fund, $2,500,000, to remain available until expended, for 
family housing initiatives undertaken pursuant to section 2883 
of title 10, United States Code, providing alternative means of 
acquiring and improving military family housing and supporting 
facilities.

            Department of Defense Base Closure Account 1990

    For deposit into the Department of Defense Base Closure 
Account 1990, established by section 2906(a)(1) of the Defense 
Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
$254,827,000, to remain available until expended.

            Department of Defense Base Closure Account 2005

    For deposit into the Department of Defense Base Closure 
Account 2005, established by section 2906A(a)(1) of the Defense 
Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
$1,504,466,000, to remain available until expended: Provided, 
That these funds may not be obligated or expended until the 
Secretary of Defense submits to the congressional defense 
committees and receives approval of a report describing the 
specific programs, projects, and activities for which such 
funds are to be obligated.

                       Administrative Provisions

    Sec. 101. None of the funds made available in this title 
shall be expended for payments under a cost-plus-a-fixed-fee 
contract for construction, where cost estimates exceed $25,000, 
to be performed within the United States, except Alaska, 
without the specific approval in writing of the Secretary of 
Defense setting forth the reasons therefor.
    Sec. 102. Funds made available in this title for 
construction shall be available for hire of passenger motor 
vehicles.
    Sec. 103. Funds made available in this title for 
construction may be used for advances to the Federal Highway 
Administration, Department of Transportation, for the 
construction of access roads as authorized by section 210 of 
title 23, United States Code, when projects authorized therein 
are certified as important to the national defense by the 
Secretary of Defense.
    Sec. 104. None of the funds made available in this title 
may be used to begin construction of new bases in the United 
States for which specific appropriations have not been made.
    Sec. 105. None of the funds made available in this title 
shall be used for purchase of land or land easements in excess 
of 100 percent of the value as determined by the Army Corps of 
Engineers or the Naval Facilities Engineering Command, except: 
(1) where there is a determination of value by a Federal court; 
(2) purchases negotiated by the Attorney General or the 
designee of the Attorney General; (3) where the estimated value 
is less than $25,000; or (4) as otherwise determined by the 
Secretary of Defense to be in the public interest.
    Sec. 106. None of the funds made available in this title 
shall be used to: (1) acquire land; (2) provide for site 
preparation; or (3) install utilities for any family housing, 
except housing for which funds have been made available in 
annual Acts making appropriations for military construction.
    Sec. 107. None of the funds made available in this title 
for minor construction may be used to transfer or relocate any 
activity from one base or installation to another, without 
prior notification to the Committees on Appropriations of both 
Houses of Congress.
    Sec. 108. None of the funds made available in this title 
may be used for the procurement of steel for any construction 
project or activity for which American steel producers, 
fabricators, and manufacturers have been denied the opportunity 
to compete for such steel procurement.
    Sec. 109. None of the funds available to the Department of 
Defense for military construction or family housing during the 
current fiscal year may be used to pay real property taxes in 
any foreign nation.
    Sec. 110. None of the funds made available in this title 
may be used to initiate a new installation overseas without 
prior notification to the Committees on Appropriations of both 
Houses of Congress.
    Sec. 111. None of the funds made available in this title 
may be obligated for architect and engineer contracts estimated 
by the Government to exceed $500,000 for projects to be 
accomplished in Japan, in any North Atlantic Treaty 
Organization member country, or in countries bordering the 
Arabian Sea, unless such contracts are awarded to United States 
firms or United States firms in joint venture with host nation 
firms.
    Sec. 112. None of the funds made available in this title 
for military construction in the United States territories and 
possessions in the Pacific and on Kwajalein Atoll, or in 
countries bordering the Arabian Sea, may be used to award any 
contract estimated by the Government to exceed $1,000,000 to a 
foreign contractor: Provided, That this section shall not be 
applicable to contract awards for which the lowest responsive 
and responsible bid of a United States contractor exceeds the 
lowest responsive and responsible bid of a foreign contractor 
by greater than 20 percent: Provided further, That this section 
shall not apply to contract awards for military construction on 
Kwajalein Atoll for which the lowest responsive and responsible 
bid is submitted by a Marshallese contractor.
    Sec. 113. The Secretary of Defense is to inform the 
appropriate committees of both Houses of Congress, including 
the Committees on Appropriations, of the plans and scope of any 
proposed military exercise involving United States personnel 30 
days prior to its occurring, if amounts expended for 
construction, either temporary or permanent, are anticipated to 
exceed $100,000.
    Sec. 114. Not more than 20 percent of the funds made 
available in this title which are limited for obligation during 
the current fiscal year shall be obligated during the last two 
months of the fiscal year.

                          (TRANSFER OF FUNDS)

    Sec. 115. Funds appropriated to the Department of Defense 
for construction in prior years shall be available for 
construction authorized for each such military department by 
the authorizations enacted into law during the current session 
of Congress.
    Sec. 116. For military construction or family housing 
projects that are being completed with funds otherwise expired 
or lapsed for obligation, expired or lapsed funds may be used 
to pay the cost of associated supervision, inspection, 
overhead, engineering and design on those projects and on 
subsequent claims, if any.
    Sec. 117. Notwithstanding any other provision of law, any 
funds made available to a military department or defense agency 
for the construction of military projects may be obligated for 
a military construction project or contract, or for any portion 
of such a project or contract, at any time before the end of 
the fourth fiscal year after the fiscal year for which funds 
for such project were made available, if the funds obligated 
for such project: (1) are obligated from funds available for 
military construction projects; and (2) do not exceed the 
amount appropriated for such project, plus any amount by which 
the cost of such project is increased pursuant to law.
     Sec. 118. The Secretary of Defense is to provide the 
Committees on Appropriations of both Houses of Congress with an 
annual report by February 15, containing details of the 
specific actions proposed to be taken by the Department of 
Defense during the current fiscal year to encourage other 
member nations of the North Atlantic Treaty Organization, 
Japan, Korea, and United States allies bordering the Arabian 
Sea to assume a greater share of the common defense burden of 
such nations and the United States.

                          (TRANSFER OF FUNDS)

    Sec. 119. In addition to any other transfer authority 
available to the Department of Defense, proceeds deposited to 
the Department of Defense Base Closure Account established by 
section 207(a)(1) of the Defense Authorization Amendments and 
Base Closure and Realignment Act (10 U.S.C. 2687 note) pursuant 
to section 207(a)(2)(C) of such Act, may be transferred to the 
account established by section 2906(a)(1) of the Defense Base 
Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), to 
be merged with, and to be available for the same purposes and 
the same time period as that account.

                          (TRANSFER OF FUNDS)

    Sec. 120. Subject to 30 days prior notification to the 
Committees on Appropriations of both Houses of Congress, such 
additional amounts as may be determined by the Secretary of 
Defense may be transferred to: (1) the Department of Defense 
Family Housing Improvement Fund from amounts appropriated for 
construction in ``Family Housing'' accounts, to be merged with 
and to be available for the same purposes and for the same 
period of time as amounts appropriated directly to the Fund; or 
(2) the Department of Defense Military Unaccompanied Housing 
Improvement Fund from amounts appropriated for construction of 
military unaccompanied housing in ``Military Construction'' 
accounts, to be merged with and to be available for the same 
purposes and for the same period of time as amounts 
appropriated directly to the Fund: Provided, That 
appropriations made available to the Funds shall be available 
to cover the costs, as defined in section 502(5) of the 
Congressional Budget Act of 1974, of direct loans or loan 
guarantees issued by the Department of Defense pursuant to the 
provisions of subchapter IV of chapter 169 of title 10, United 
States Code, pertaining to alternative means of acquiring and 
improving military family housing, military unaccompanied 
housing, and supporting facilities.
    Sec. 121. None of the funds made available in this title 
may be obligated for Partnership for Peace Programs in the New 
Independent States of the former Soviet Union.
    Sec. 122. (a) Not later than 60 days before issuing any 
solicitation for a contract with the private sector for 
military family housing the Secretary of the military 
department concerned shall submit to the Committees on 
Appropriations of both Houses of Congress the notice described 
in subsection (b).
    (b)(1) A notice referred to in subsection (a) is a notice 
of any guarantee (including the making of mortgage or rental 
payments) proposed to be made by the Secretary to the private 
party under the contract involved in the event of--
            (A) the closure or realignment of the installation 
        for which housing is provided under the contract;
            (B) a reduction in force of units stationed at such 
        installation; or
            (C) the extended deployment overseas of units 
        stationed at such installation.
    (2) Each notice under this subsection shall specify the 
nature of the guarantee involved and assess the extent and 
likelihood, if any, of the liability of the Federal Government 
with respect to the guarantee.

                          (TRANSFER OF FUNDS)

    Sec. 123. In addition to any other transfer authority 
available to the Department of Defense, amounts may be 
transferred from the account established by section 2906(a)(1) 
of the Defense Base Closure and Realignment Act of 1990 (10 
U.S.C. 2687 note), to the fund established by section 1013(d) 
of the Demonstration Cities and Metropolitan Development Act of 
1966 (42 U.S.C. 3374) to pay for expenses associated with the 
Homeowners Assistance Program. Any amounts transferred shall be 
merged with and be available for the same purposes and for the 
same time period as the fund to which transferred.
    Sec. 124. Notwithstanding this or any other provision of 
law, funds made available in this title for operation and 
maintenance of family housing shall be the exclusive source of 
funds for repair and maintenance of all family housing units, 
including general or flag officer quarters: Provided, That not 
more than $35,000 per unit may be spent annually for the 
maintenance and repair of any general or flag officer quarters 
without 30 days prior notification to the Committees on 
Appropriations of both Houses of Congress, except that an 
after-the-fact notification shall be submitted if the 
limitation is exceeded solely due to costs associated with 
environmental remediation that could not be reasonably 
anticipated at the time of the budget submission: Provided 
further, That the Under Secretary of Defense (Comptroller) is 
to report annually to the Committees on Appropriations of both 
Houses of Congress all operation and maintenance expenditures 
for each individual general or flag officer quarters for the 
prior fiscal year.
    Sec. 125. None of the funds made available in this title 
under the heading ``North Atlantic Treaty Organization Security 
Investment Program'', and no funds appropriated for any fiscal 
year before fiscal year 2006 for that program that remain 
available for obligation, may be obligated or expended for the 
conduct of studies of missile defense.
    Sec. 126. Whenever the Secretary of Defense or any other 
official of the Department of Defense is requested by the 
subcommittee on Military Quality of Life and Veterans Affairs, 
and Related Agencies of the Committee on Appropriations of the 
House of Representatives or the subcommittee on Military 
Construction and Veterans Affairs, and Related Agencies of the 
Committee on Appropriations of the Senate to respond to a 
question or inquiry submitted by the chairman or another member 
of that subcommittee pursuant to a subcommittee hearing or 
other activity, the Secretary (or other official) shall respond 
to the request, in writing, within 21 days of the date on which 
the request is transmitted to the Secretary (or other 
official).
    Sec. 127. Amounts contained in the Ford Island Improvement 
Account established by subsection (h) of section 2814 of title 
10, United States Code, are appropriated and shall be available 
until expended for the purposes specified in subsection (i)(1) 
of such section or until transferred pursuant to subsection 
(i)(3) of such section.

                          (TRANSFER OF FUNDS)

    Sec. 128. None of the funds made available in this title, 
or in any Act making appropriations for military construction 
which remain available for obligation, may be obligated or 
expended to carry out a military construction, land 
acquisition, or family housing project at or for a military 
installation approved for closure, or at a military 
installation for the purposes of supporting a function that has 
been approved for realignment to another installation, in 2005 
under the Defense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
note), unless such a project at a military installation 
approved for realignment will support a new mission or function 
that is planned for that installation, or unless the Secretary 
of Defense certifies that the cost to the United States of 
carrying out such project would be less than the cost to the 
United Statesof cancelling such project, or if the project is 
at an active component base that shall be established as an enclave or 
in the case of projects having multi-agency use, that another 
Government agency has indicated it will assume ownership of the 
completed project. The Secretary of Defense may not transfer funds made 
available as a result of this limitation from any military construction 
project, land acquisition, or family housing project to another account 
or use such funds for another purpose or project without the prior 
approval of the Committees on Appropriations of both Houses of 
Congress.
    Sec. 129. (a) Of the amount in the Department of Defense 
Base Closure Account 1990 under section 2906(a)(1) of the 
Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) that is 
derived from the disposal of Department of the Navy property 
under that Act, not less than $300,000,000 shall be available 
exclusively to the Department of the Navy for the costs of 
environmental restoration and property management and disposal 
of property at installations of the Department of the Navy 
closed or realigned under that Act.
    (b) The amount available under subsection (a) shall remain 
available for the costs specified in that subsection until 
expended.
    (c) Not later than 45 days after the date of enactment of 
this Act, the Secretary of the Navy shall submit to the 
Committees on Appropriations of both Houses of Congress a 
report containing a plan for the use of the funds made 
available under subsection (a) for environmental restoration, 
and for property management and disposal, at covered Navy 
installations, including specific sites and work to be 
accomplished at those sites. None of the funds made available 
under subsection (a) shall be obligated until both of such 
committees approve such report or the expiration of the 30-day 
period beginning on the date such committees receive such 
report, whichever occurs earlier.
    Sec. 130. Not later than 45 days after the date of the 
enactment of this Act, the Secretary of the Air Force shall 
submit to the Committees on Appropriations of both Houses of 
Congress a report containing a housing plan for Spangdahlem Air 
Base, Germany, as outlined in the Statement of Managers 
accompanying the Conference report for H.R. 2528 of the 109th 
Congress. None of the funds made available in this title shall 
be used for the construction of family housing at Spangdahlem 
Air Base, Germany, until both of such committees approve such 
report or the expiration of the 30-day period beginning on the 
date such committees receive such report, whichever occurs 
earlier.

                                TITLE II

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)

    For the payment of compensation benefits to or on behalf of 
veterans and a pilot program for disability examinations as 
authorized by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 
55, and 61); pension benefits to or on behalf of veterans as 
authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 
92 Stat. 2508); and burial benefits, the Reinstated Entitlement 
Program for Survivors, emergency and other officers' retirement 
pay, adjusted-service credits and certificates, payment of 
premiums due on commercial life insurance policies guaranteed 
under the provisions of title IV of the Servicemembers Civil 
Relief Act (50 U.S.C. App. 540 et seq.) and for other benefits 
as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, 
chapters 23, 51, 53, 55, and 61; 43 Stat. 122, 123; 45 Stat. 
735; 76 Stat. 1198), $33,897,787,000, to remain available until 
expended: Provided, That not to exceed $23,491,000 of the 
amount appropriated under this heading shall be reimbursed to 
``General operating expenses'' and ``Medical administration'' 
for necessary expenses in implementing the provisions of 
chapters 51, 53, and 55 of title 38 United States Code, the 
funding source for which is specifically provided as the 
``Compensation and pensions'' appropriation: Provided further, 
That such sums as may be earned on an actual qualifying patient 
basis, shall be reimbursed to ``Medical care collections fund'' 
to augment the funding of individual medical facilities for 
nursing home care provided to pensioners as authorized.

                         READJUSTMENT BENEFITS

    For the payment of readjustment and rehabilitation benefits 
to or on behalf of veterans as authorized by law (38 U.S.C. 
chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61), 
$3,309,234,000, to remain available until expended: Provided, 
That expenses for rehabilitation program services and 
assistance which the Secretary is authorized to provide under 
section 3104(a) of title 38 United States Code, other than 
under subsection (a)(1), (2), (5), and (11) of that section, 
shall be charged to this account.

                   VETERANS INSURANCE AND INDEMNITIES

    For military and naval insurance, national service life 
insurance, servicemen's indemnities, service-disabled veterans 
insurance, and veterans mortgage life insurance as authorized 
by title 38, United States Code, chapter 19; 70 Stat. 887; 72 
Stat. 487, $45,907,000, to remain available until expended.

         VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

    For the cost of direct and guaranteed loans, such sums as 
may be necessary to carry out the program, as authorized by 
chapter 37 of title 38, United States Code: Provided, That such 
costs, including the cost of modifying such loans, shall be as 
defined in section 502 of the Congressional Budget Act of 1974: 
Provided further, That during fiscal year 2006, within the 
resources available, not to exceed $500,000 in gross 
obligations for direct loans are authorized for specially 
adapted housing loans.
    In addition, for administrative expenses to carry out the 
direct and guaranteed loan programs, $153,575,000, which may be 
transferred to and merged with the appropriation for ``General 
operating expenses''.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

    For the cost of direct loans, $53,000, as authorized by 
chapter 31 of title 38, United States Code: Provided, That such 
costs, including the cost of modifying such loans, shall be as 
defined in section 502 of the Congressional Budget Act of 1974: 
Provided further, That funds made available under this heading 
are available to subsidize gross obligations for the principal 
amount of direct loans not to exceed $4,242,000.
    In addition, for administrative expenses necessary to carry 
out the direct loan program, $305,000, which may be transferred 
to and merged with the appropriation for ``General operating 
expenses''.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

    For administrative expenses to carry out the direct loan 
program authorized by subchapter V of chapter 37 of title 38, 
United States Code, $580,000, which may be transferred to and 
merged with the appropriation for ``General operating 
expenses'': Provided, That no new loans in excess of 
$30,000,000 may be made in fiscal year 2006.

  GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM 
                                ACCOUNT

    For the administrative expenses to carry out the guaranteed 
transitional housing loan program authorized by subchapter VI 
of chapter 37 of title 38, United States Code, not to exceed 
$750,000 of the amounts appropriated by this Act for ``General 
operating expenses'' and ``Medical administration'' may be 
expended.

                     Veterans Health Administration

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

    For necessary expenses for furnishing, as authorized by 
law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs and 
veterans described in section 1705(a) of title 38, United 
States Code, including care and treatment in facilities not 
under the jurisdiction of the Department, and including medical 
supplies and equipment and salaries and expenses of health-care 
employees hired under title 38, United States Code, and aid to 
State homes as authorized by section 1741 of title 38, United 
States Code; $22,547,141,000, plus reimbursements, of which not 
less than $2,200,000,000 shall be expended for specialty mental 
health care: Provided, That $1,225,000,000 of the amount 
provided under this heading is designated by the Congress as an 
emergency requirement pursuant to section 402 of H. Con. Res. 
95 (109th Congress), the concurrent resolution on the budget 
for fiscal year 2006: Provided further, That such 
$1,225,000,000 shall be available only if an official budget 
request is transmitted by the President to the Congress that 
revises the President's budget amendment of July 14, 2005, to 
designate the entire $1,225,000,000 as an emergency 
requirement: Provided further, That of the funds made available 
under this heading, not to exceed $1,100,000,000 shall be 
available until September 30, 2007: Provided further, That, 
notwithstanding any other provision of law, the Secretary of 
Veterans Affairs shall establish a priority for treatment for 
veterans who are service-connected disabled, lower income, or 
have special needs: Provided further, That, notwithstanding any 
other provision of law, the Secretary of Veterans Affairs shall 
give priority funding for the provision of basic medical 
benefits to veterans in enrollment priority groups 1 through 6: 
Provided further, That, notwithstanding any other provision of 
law, the Secretary of Veterans Affairs may authorize the 
dispensing of prescription drugs from Veterans Health 
Administration facilities to enrolled veterans with privately 
written prescriptions based on requirements established by the 
Secretary: Provided further, That the implementation of the 
program described in the previous proviso shall incur no 
additional cost to the Department of Veterans Affairs: Provided 
further, That for the Department of Defense/Department of 
Veterans Affairs Health Care Sharing Incentive Fund, as 
authorized by section 721 of Public Law 107-314, a minimum of 
$15,000,000, to remain available until expended, for any 
purpose authorized by section 8111 of title 38, United States 
Code.

                         MEDICAL ADMINISTRATION

    For necessary expenses in the administration of the 
medical, hospital, nursing home, domiciliary, construction, 
supply, and research activities, as authorized by law; 
administrative expenses in support of capital policy 
activities; uniforms or allowances therefor, as authorized by 
sections 5901-5902 of title 5, United States Code; and 
administrative and legal expenses of the Department for 
collecting and recovering amounts owed the Department as 
authorized under chapter 17 of title 38, United States Code, 
and the Federal Medical Care Recovery Act (42 U.S.C. 2651 et 
seq.); $2,858,442,000, plus reimbursements, of which 
$250,000,000 shall be available until September 30, 2007.

                           MEDICAL FACILITIES

    For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities and other 
necessary facilities for the Veterans Health Administration; 
for administrative expenses in support of planning, design, 
project management, real property acquisition and disposition, 
construction and renovation of any facility under the 
jurisdiction or for the use of the Department; for oversight, 
engineering and architectural activities not charged to project 
costs; for repairing, altering, improving or providing 
facilities in the several hospitals and homes under the 
jurisdiction of the Department, not otherwise provided for, 
either by contract or by the hire of temporary employees and 
purchase of materials; for leases of facilities; and for 
laundry and food services, $3,297,669,000, plus reimbursements, 
of which $250,000,000 shall be available until September 30, 
2007.

                    MEDICAL AND PROSTHETIC RESEARCH

    For necessary expenses in carrying out programs of medical 
and prosthetic research and development as authorized by 
chapter 73 of title 38, United States Code, to remain available 
until September 30, 2007, $412,000,000, plus reimbursements, of 
which not less than $15,000,000 shall be used for Gulf War 
Illness research.

                      Departmental Administration

                       GENERAL OPERATING EXPENSES

    For necessary operating expenses of the Department of 
Veterans Affairs, not otherwise provided for, including 
administrative expenses in support of Department-Wide capital 
planning, management and policy activities, uniforms or 
allowances therefor; not to exceed $25,000 for official 
reception and representation expenses; hire of passenger motor 
vehicles; and reimbursement of the General Services 
Administration for security guard services, and the Department 
of Defense for the cost of overseas employee mail, 
$1,410,520,000: Provided, That expenses for services and 
assistance authorized under paragraphs (1), (2), (5), and (11) 
of section 3104(a) of title 38, United States Code, that the 
Secretary of Veterans Affairs determines are necessary to 
enable entitled veterans: (1) to the maximum extent feasible, 
to become employable and to obtain and maintain suitable 
employment; or (2) to achieve maximum independence in daily 
living, shall be charged to this account: Provided further, 
That the Veterans Benefits Administration shall be funded at 
not less than $1,053,938,000: Provided further, That of the 
funds made available under this heading, not to exceed 
$70,000,000 shall be available for obligation until September 
30, 2007: Provided further, That from the funds made available 
under this heading, the Veterans Benefits Administration may 
purchase up to two passenger motor vehicles for use in 
operations of that Administration in Manila, Philippines.

                     INFORMATION TECHNOLOGY SYSTEMS

    For necessary expenses for information technology systems 
and telecommunications support, including developmental 
information systems and operational information systems; for 
the capital asset acquisition of information technology 
systems, including management and related contractual costs of 
said acquisitions, including contractual costs associated with 
operations authorized by chapter 3109 of title 5, United States 
Code, $1,213,820,000, to remain available until September 30, 
2007: Provided, That none of these funds may be obligated until 
the Department of Veterans Affairs submits to the Committees on 
Appropriations of both Houses of Congress, and such Committees 
approve, a plan for expenditure that: (1) meets the capital 
planning and investment control review requirements established 
by the Office of Management and Budget; (2) complies with the 
Department of Veterans Affairs enterprise architecture; (3) 
conforms with an established enterprise life cycle methodology; 
and (4) complies with the acquisition rules, requirements, 
guidelines, and systems acquisition management practices of the 
Federal Government: Provided further, That within 30 days of 
enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committees on Appropriations of both Houses of 
Congress a reprogramming base letter which provides, by 
project, the costs included in this appropriation.

                    NATIONAL CEMETERY ADMINISTRATION

    For necessary expenses of the National Cemetery 
Administration for operations and maintenance, not otherwise 
provided for, including uniforms or allowances therefor; 
cemeterial expenses as authorized by law; purchase of one 
passenger motor vehicle for use in cemeterial operations; and 
hire of passenger motor vehicles, $156,447,000: Provided, That 
of the funds made available under this heading, not to exceed 
$7,800,000 shall be available until September 30, 2007.

                      OFFICE OF INSPECTOR GENERAL

    For necessary expenses of the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, $70,174,000, to remain available until September 30, 
2007.

                      CONSTRUCTION, MAJOR PROJECTS

    For constructing, altering, extending and improving any of 
the facilities including parking projects under the 
jurisdiction or for the use of the Department of Veterans 
Affairs, or for any of the purposes set forth in sections 316, 
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110,and 8122 of 
title 38, United States Code, including planning, architectural and 
engineering services, construction management services, maintenance or 
guarantee period services costs associated with equipment guarantees 
provided under the project, services of claims analysts, offsite 
utility and storm drainage system construction costs, and site 
acquisition, where the estimated cost of a project is more than the 
amount set forth in section 8104(a)(3)(A) of title 38, United States 
Code, or where funds for a project were made available in a previous 
major project appropriation, $607,100,000, to remain available until 
expended, of which $532,010,000 shall be for Capital Asset Realignment 
for Enhanced Services (CARES) activities; and of which $2,500,000 shall 
be to make reimbursements as provided in section 13 of the Contract 
Disputes Act of 1978 (41 U.S.C. 612) for claims paid for contract 
disputes: Provided, That except for advance planning activities, 
including needs assessments which may or may not lead to capital 
investments, and other capital asset management related activities, 
such as portfolio development and management activities, and investment 
strategy studies funded through the advance planning fund and the 
planning and design activities funded through the design fund and CARES 
funds, including needs assessments which may or may not lead to capital 
investments, none of the funds appropriated under this heading shall be 
used for any project which has not been approved by the Congress in the 
budgetary process: Provided further, That funds provided in this 
appropriation for fiscal year 2006, for each approved project (except 
those for CARES activities referenced above) shall be obligated: (1) by 
the awarding of a construction documents contract by September 30, 
2006; and (2) by the awarding of a construction contract by September 
30, 2007: Provided further, That the Secretary of Veterans Affairs 
shall promptly report in writing to the Committees on Appropriations of 
both Houses of Congress any approved major construction project in 
which obligations are not incurred within the time limitations 
established above: Provided further, That none of the funds in this or 
any other Act may be used to reduce the mission, services or 
infrastructure, including land, of the 18 facilities on the Capital 
Asset Realignment for Enhanced Services (CARES) list requiring further 
study as specified by the Secretary of Veterans Affairs without prior 
approval of the Committees on Appropriations of both Houses of 
Congress.

                      CONSTRUCTION, MINOR PROJECTS

    For constructing, altering, extending, and improving any of 
the facilities including parking projects under the 
jurisdiction or for the use of the Department of Veterans 
Affairs, including planning and assessments of needs which may 
lead to capital investments, architectural and engineering 
services, maintenance or guarantee period services costs 
associated with equipment guarantees provided under the 
project, services of claims analysts, offsite utility and storm 
drainage system construction costs, and site acquisition, or 
for any of the purposes set forth in sections 316, 2404, 2406, 
8102, 8103, 8106, 8108, 8109, 8110, 8122, and 8162 of title 38, 
United States Code, where the estimated cost of a project is 
equal to or less than the amount set forth in section 
8104(a)(3)(A) of title 38, United States Code, $198,937,000, to 
remain available until expended, along with unobligated 
balances of previous ``Construction, minor projects'' 
appropriations which are hereby made available for any project 
where the estimated cost is equal to or less than the amount 
set forth in such section, of which $155,000,000 shall be for 
Capital Asset Realignment for Enhanced Services (CARES) 
activities: Provided, That funds in this account shall be 
available for: (1) repairs to any of the nonmedical facilities 
under the jurisdiction or for the use of the Department which 
are necessary because of loss or damage caused by any natural 
disaster or catastrophe; and (2) temporary measures necessary 
to prevent or to minimize further loss by such causes.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

    For grants to assist States to acquire or construct State 
nursing home and domiciliary facilities and to remodel, modify 
or alter existing hospital, nursing home and domiciliary 
facilities in State homes, for furnishing care to veterans as 
authorized by sections 8131-8137 of title 38, United States 
Code, $85,000,000, to remain available until expended.

        GRANTS FOR THE CONSTRUCTION OF STATE VETERANS CEMETERIES

    For grants to aid States in establishing, expanding, or 
improving State veterans cemeteries as authorized by section 
2408 of title 38, United States Code, $32,000,000, to remain 
available until expended.

                       Administrative Provisions

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 201. Any appropriation for fiscal year 2006 for 
``Compensation and pensions'', ``Readjustment benefits'', and 
``Veterans insurance and indemnities'' may be transferred as 
necessary to any other of the mentioned appropriations: 
Provided, That before a transfer may take place, the Secretary 
of Veterans Affairs shall request from the Committees on 
Appropriations of both Houses of Congress the authority to make 
the transfer and an approval is issued, or absent a response, a 
period of 30 days has elapsed.
    Sec. 202. Appropriations available in this title for 
salaries and expenses shall be available for services 
authorized by section 3109 of title 5, United States Code, hire 
of passenger motor vehicles; lease of a facility or land or 
both; and uniforms or allowances therefore, as authorized by 
sections 5901-5902 of title 5, United States Code.
    Sec. 203. No appropriations in this title (except the 
appropriations for ``Construction, major projects'', and 
``Construction, minor projects'') shall be available for the 
purchase of any site for or toward the construction of any new 
hospital or home.
    Sec. 204. No appropriations in this title shall be 
available for hospitalization or examination of any persons 
(except beneficiaries entitled under the laws bestowing such 
benefits to veterans, and persons receiving such treatment 
under sections 7901-7904 of title 5, United States Code or the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.)), unless reimbursement of cost is made 
to the ``Medical services'' account at such rates as may be 
fixed by the Secretary of Veterans Affairs.
    Sec. 205. Appropriations available in this title for 
``Compensation and pensions'', ``Readjustment benefits'', and 
``Veterans insurance and indemnities'' shall be available for 
payment of prior year accrued obligations required to be 
recorded by law against the corresponding prior year accounts 
within the last quarter of fiscal year 2005.
    Sec. 206. Appropriations available in this title shall be 
available to pay prior year obligations of corresponding prior 
year appropriations accounts resulting from sections 3328(a), 
3334, and 3712(a) of title 31, United States Code, except that 
if such obligations are from trust fund accounts they shall be 
payable from ``Compensation and pensions''.
    Sec. 207. Notwithstanding any other provision of law, 
during fiscal year 2006, the Secretary of Veterans Affairs 
shall, from the National Service Life Insurance Fund (38 U.S.C. 
1920), the Veterans' Special Life Insurance Fund (38 U.S.C. 
1923), and the United States Government Life Insurance Fund (38 
U.S.C. 1955), reimburse the ``General operating expenses'' 
account for the cost of administration of the insurance 
programs financed through those accounts: Provided, That 
reimbursement shall be made only from the surplus earnings 
accumulated in an insurance program in fiscal year 2006 that 
are available for dividends in that program after claims have 
been paid and actuarially determined reserves have been set 
aside: Provided further, That if the cost of administration of 
an insurance program exceeds the amount of surplus earnings 
accumulated in that program, reimbursement shall be made only 
to the extent of such surplus earnings: Provided further, That 
the Secretary shall determine the cost of administration for 
fiscal year 2006 which is properly allocable to the provision 
of each insurance program and to the provision of any total 
disability income insurance included in such insurance program.
    Sec. 208. The paragraph under the heading ``Franchise 
Fund'' in title I of Public Law 104-204 (31 U.S.C. 501 note) is 
amended--
            (1) by striking ``franchise fund pilot, as 
        authorized by section 403 of Public Law 103-356, to be 
        available as provided in such section'' and inserting 
        ``Department of Veterans Affairs franchise fund, to be 
        available without fiscal year limitation''; and
            (2) by striking the final proviso.
    Sec. 209. Amounts deducted from enhanced-use lease proceeds 
to reimburse an account for expenses incurred by that account 
during a prior fiscal year for providing enhanced-use lease 
services, may be obligated during the fiscal year in which the 
proceeds are received.
    Sec. 210. Funds available in this title or funds for 
salaries and other administrative expenses shall also 
beavailable to reimburse the Office of Resolution Management and the 
Office of Employment Discrimination Complaint Adjudication for all 
services provided at rates which will recover actual costs but not 
exceed $29,758,000 for the Office of Resolution Management and 
$3,059,000 for the Office of Employment and Discrimination Complaint 
Adjudication: Provided, That payments may be made in advance for 
services to be furnished based on estimated costs: Provided further, 
That amounts received shall be credited to ``General operating 
expenses'' for use by the office that provided the service.
    Sec. 211. No appropriations in this title shall be 
available to enter into any new lease of real property if the 
estimated annual rental is more than $300,000 unless the 
Secretary submits a report which the Committees on 
Appropriations of both Houses of Congress approve within 30 
days following the date on which the report is received.
    Sec. 212. No funds of the Department of Veterans Affairs 
shall be available for hospital care, nursing home care, or 
medical services provided to any person under chapter 17 of 
title 38, United States Code, for a non-service-connected 
disability described in section 1729(a)(2) of such title, 
unless that person has disclosed to the Secretary of Veterans 
Affairs, in such form as the Secretary may require, current, 
accurate third-party reimbursement information for purposes of 
section 1729 of such title: Provided, That the Secretary may 
recover, in the same manner as any other debt due the United 
States, the reasonable charges for such care or services from 
any person who does not make such disclosure as required: 
Provided further, That any amounts so recovered for care or 
services provided in a prior fiscal year may be obligated by 
the Secretary during the fiscal year in which amounts are 
received.
    Sec. 213. Notwithstanding any other provision of law, at 
the discretion of the Secretary of Veterans Affairs, proceeds 
or revenues derived from enhanced-use leasing activities 
(including disposal) may be deposited into the ``Construction, 
major projects'' and ``Construction, minor projects'' accounts 
and be used for construction (including site acquisition and 
disposition), alterations and improvements of any medical 
facility under the jurisdiction or for the use of the 
Department of Veterans Affairs. Such sums as realized are in 
addition to the amount provided for in ``Construction, major 
projects'' and ``Construction, minor projects''.
    Sec. 214. Amounts made available under ``Medical services'' 
are available--
            (1) for furnishing recreational facilities, 
        supplies, and equipment; and
            (2) for funeral expenses, burial expenses, and 
        other expenses incidental to funerals and burials for 
        beneficiaries receiving care in the Department.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 215. That such sums as may be deposited to the Medical 
Care Collections Fund pursuant to section 1729A of title 38, 
United States Code, may be transferred to ``Medical services'', 
to remain available until expended for the purposes of this 
account.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 216. Amounts made available for fiscal year 2006 under 
the ``Medical services'', ``Medical administration'', and 
``Medical facilities'' accounts may be transferred among the 
accounts to the extent necessary to implement the restructuring 
of the Veterans Health Administration accounts: Provided, That 
before a transfer may take place, the Secretary of Veterans 
Affairs shall request from the Committees on Appropriations of 
both Houses of Congress the authority to make the transfer and 
an approval is issued.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 217. Any appropriation for fiscal year 2006 for the 
Veterans Benefits Administration made available under the 
heading ``General operating expenses'' may be transferred to 
the ``Veterans Housing Benefit Program Fund Program Account'' 
for the purpose of providing funds for the nationwide property 
management contract if the administrative costs of such 
contract exceed $8,800,000 in the fiscal year.
    Sec. 218. Notwithstanding any other provision of law, the 
Secretary of Veterans Affairs shall allow veterans eligible 
under existing Department of Veterans Affairs medical care 
requirements and who reside in Alaska to obtain medical care 
services from medical facilities supported by the Indian Health 
Service or tribal organizations. The Secretary shall: (1) limit 
the application of this provision to rural Alaskan veterans in 
areas where an existing Department of Veterans Affairs facility 
or Veterans Affairs-contracted service is unavailable; (2) 
require participating veterans and facilities to comply with 
all appropriate rules and regulations, as established by the 
Secretary; (3) require this provision to be consistent with 
Capital Asset Realignment for Enhanced Services activities; and 
(4) result in no additional cost to the Department of Veterans 
Affairs or the Indian Health Service.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 219. That such sums as may be deposited to the 
Department of Veterans Affairs Capital Asset Fund pursuant to 
section 8118 of title 38, United States Code, may be 
transferred to the ``Construction, major projects'' and 
``Construction, minor projects'' accounts, to remainavailable 
until expended for the purposes of these accounts.
    Sec. 220. None of the funds available to the Department of 
Veterans Affairs, in this Act or any other Act, may be used to 
replace the current system by which the Veterans Integrated 
Service Networks select and contract for diabetes monitoring 
supplies and equipment.
    Sec. 221. None of the funds made available in this Act may 
be used to implement any policy prohibiting the Directors of 
the Veterans Integrated Service Networks from conducting 
outreach or marketing to enroll new veterans within their 
respective Networks.
    Sec. 222. The Secretary of Veterans Affairs shall submit to 
the Committees on Appropriations of both Houses of Congress a 
quarterly report on the financial status of the Veterans Health 
Administration.
    Sec. 223. None of the funds made available in this Act or 
any other Act may be used--
            (1) with respect to the 2,100 compensation cases 
        identified in the Scope and Methodology description in 
        VA Inspector General Report No. 05-00765-137 as having 
        been reviewed by the Office of Inspector General--
                    (A) to retroactively revoke or reduce a 
                veteran's disability compensation payments for 
                post traumatic stress disorder based on a 
                finding that the Department of Veterans Affairs 
                failed to collect justifying documentation 
                unless the award of compensation was the direct 
                result of fraud by the applicant; or
                    (B) to prospectively revoke or reduce a 
                veteran's disability compensation payments for 
                post traumatic stress disorder, based on a 
                finding that the Department of Veterans Affairs 
                failed to collect justifying documentation, 
                effective before the date on which the 
                veteran's time to exhaust all available 
                administrative and judicial appeals has expired 
                or such administrative and judicial appeals are 
                finally decided; or
            (2) for the implementation of Recommendation 3 of 
        VA Inspector General Report No. 05-00765-137 or any 
        related review and investigation of post traumatic 
        stress, individual unemployability, and schedular 100 
        percent ratings cases, until the Department of Veterans 
        Affairs reports to the Committees on Appropriations of 
        both Houses of Congress on its plans for implementing 
        this recommendation, and outlines the staffing and 
        funding requirements.
    Sec. 224. Clinical Training and Protocols. (a) Findings.--
Congress finds that--
            (1) the Iraq War Clinician Guide has tremendous 
        value; and
            (2) the Secretary of Defense and the National 
        Center on Post Traumatic Stress Disorder should 
        continue to work together to ensure that the mental 
        health care needs of servicemembers and veterans are 
        met.
    (b) Collaboration.--The National Center on Post Traumatic 
Stress Disorder shall collaborate with the Secretary of 
Defense--
            (1) to enhance the clinical skills of military 
        clinicians through training, treatment protocols, web-
        based interventions, and the development of evidence-
        based interventions; and
            (2) to promote pre-deployment resilience and post-
        deployment readjustment among servicemembers serving in 
        Operation Iraqi Freedom and Operation Enduring Freedom.
    (c) Training.--The National Center on Post Traumatic Stress 
Disorder shall work with the Secretary of Defense to ensure 
that clinicians in the Department of Defense are provided with 
the training and protocols developed pursuant to subsection 
(b)(1).

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 225. Amounts made available under the ``Medical 
administration'', ``Medical services'', ``Medical facilities'', 
``General operating expenses'', ``National Cemetery 
Administration'' and ``Office of Inspector General'' accounts 
for fiscal year 2006, may be transferred to or from the 
``Information technology systems'' account: Provided, That 
before a transfer may take place, the Secretary of Veterans 
Affairs shall request from the Committees on Appropriations of 
both Houses of Congress the authority to make the transfer and 
an approval is issued.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 226. For purposes of perfecting the funding sources of 
the Department of Veterans Affairs' new ``Information 
technology systems'' account, funds made available for fiscal 
year 2006 may be transferred from the ``General operating 
expenses'', ``National Cemetery Administration'', and ``Office 
of Inspector General'' accounts to the ``Medical 
administration'' account: Provided, That before a transfer may 
take place, the Secretary of Veterans Affairs shall request 
from the Committees on Appropriations of both Houses of 
Congress the authority to make the transfer and an approval is 
issued.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 227. Amounts made available for the ``Information 
technology systems'' account may be transferred between 
projects: Provided, That no project may be increased or 
decreased by more than $1,000,000 of cost prior to submitting a 
request to the Committees on Appropriations of both Houses of 
Congress the authority to make the transfer and an approval is 
issued, or absent a response, a period of 30 days has elapsed.
    Sec. 228. The Department of Veterans Affairs shall conduct 
an information campaign in States with an average annual 
disability compensation payment of less than $7,300 (according 
to the report issued by the Department of Veterans Affairs 
Office of Inspector General on May 19, 2005), to inform all 
veterans receiving disability compensation, by direct mail, of 
the history of below average disability compensation payments 
to veterans in such States, and to provide all veterans in each 
such State, through broadcast or print advertising, with the 
aforementioned historical information and instructions for 
submitting new claims and requesting review of past disability 
claims and ratings.
    Sec. 229. Of the funds available to the Department of 
Veterans Affairs in this Act or any other Act, no more than 
$50,000,000 shall be available for the HealtheVetVista project, 
for fiscal year 2006: Provided, That none of the funds made 
available for the HealtheVetVista project may be obligated 
until the Committees on Appropriations of both Houses of 
Congress approve a financial expenditure plan for the entire 
project.
    Sec. 230. The authority provided by section 2011 of title 
38, United States Code, shall continue in effect through 
September 30, 2006.

                               TITLE III

                            RELATED AGENCIES

                  American Battle Monuments Commission

                         SALARIES AND EXPENSES

    For necessary expenses, not otherwise provided for, of the 
American Battle Monuments Commission, including the acquisition 
of land or interest in land in foreign countries; purchases and 
repair of uniforms for caretakers of national cemeteries and 
monuments outside of the United States and its territories and 
possessions; rent of office and garage space in foreign 
countries; purchase (one for replacement only) and hire of 
passenger motor vehicles; not to exceed $7,500 for official 
reception and representation expenses; and insurance of 
official motor vehicles in foreign countries, when required by 
law of such countries, $36,250,000, to remain available until 
expended.

                 FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

    For necessary expenses, not otherwise provided for, of the 
American Battle Monuments Commission, $15,250,000, to remain 
available until expended, for purposes authorized by section 
2109 of title 36, United States Code.

           United States Court of Appeals for Veterans Claims

                         SALARIES AND EXPENSES

    For necessary expenses for the operation of the United 
States Court of Appeals for Veterans Claims as authorized by 
sections 7251-7298 of title 38, United States Code, 
$18,795,000, of which $1,260,000 shall be available for the 
purpose of providing financial assistance as described, and in 
accordance with the process and reporting procedures set forth, 
under this heading in Public Law 102-229.

         Department of Defense--Civil Cemeterial Expenses, Army

                         SALARIES AND EXPENSES

    For necessary expenses, as authorized by law, for 
maintenance, operation, and improvement of Arlington National 
Cemetery and Soldiers' and Airmen's Home National Cemetery, 
including the purchase of two passenger motor vehicles for 
replacement only, and not to exceed $1,000 for official 
reception and representation expenses, $29,050,000, to remain 
available until expended. In addition, such sums as may be 
necessary for parking maintenance, repairs and replacement, to 
be derived from the Lease of Department of Defense Real 
Property for Defense Agencies account.

                      Armed Forces Retirement Home

    For expenses necessary for the Armed Forces Retirement Home 
to operate and maintain the Armed Forces Retirement Home--
Washington, District of Columbia and the Armed Forces 
Retirement Home--Gulfport, Mississippi, to be paid from funds 
available in the Armed Forces Retirement Home Trust Fund, 
$58,281,000, of which $1,248,000 shall remain available until 
expended for construction and renovation of the physical plants 
at the Armed Forces Retirement Home--Washington, District of 
Columbia and the Armed Forces Retirement Home--Gulfport, 
Mississippi.

                                TITLE IV

                           GENERAL PROVISIONS

    Sec. 401. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year unless expressly so provided herein.
    Sec. 402. Such sums as may be necessary for fiscal year 
2006 pay raises for programs funded by this Act shall be 
absorbed within the levels appropriated in this Act.
    Sec. 403. None of the funds made available in this Act may 
be used for any program, project, or activity, when it is made 
known to the Federal entity or official to which the funds are 
made available that the program, project, or activity is not in 
compliance with any Federallaw relating to risk assessment, the 
protection of private property rights, or unfunded mandates.
    Sec. 404. No part of any funds appropriated in this Act 
shall be used by an agency of the executive branch, other than 
for normal and recognized executive-legislative relationships, 
for publicity or propaganda purposes, and for the preparation, 
distribution or use of any kit, pamphlet, booklet, publication, 
radio, television or film presentation designed to support or 
defeat legislation pending before Congress, except in 
presentation to Congress itself.
    Sec. 405. All departments and agencies funded under this 
Act are encouraged, within the limits of the existing statutory 
authorities and funding, to expand their use of ``E-Commerce'' 
technologies and procedures in the conduct of their business 
practices and public service activities.
    Sec. 406. None of the funds made available in this Act may 
be transferred to any department, agency, or instrumentality of 
the United States Government except pursuant to a transfer made 
by, or transfer authority provided in, this Act or any other 
appropriations Act.
    Sec. 407. Unless stated otherwise, all reports and 
notifications required by this Act shall be submitted to the 
Subcommittee on Military Quality of Life and Veterans Affairs, 
and Related Agencies of the Committee on Appropriations of the 
House of Representatives and the Subcommittee on Military 
Construction and Veterans Affairs, and Related Agencies of the 
Committee on Appropriations of the Senate.
    Sec. 408. (a) Section 613 of the Science, State, Justice, 
Commerce, and Related Agencies Appropriations Act, 2006, is 
amended by striking ``the United States-China Economic and 
Security Review Commission'', and inserting in lieu thereof ``a 
grant for the Trade Lawyers Advisory Group''.
    (b) The amendment made by paragraph (1) shall take effect 
on the date of enactment of the Science, State, Justice, 
Commerce, and Related Agencies Appropriations Act, 2006.
    This Act may be cited as the ``Military Construction, 
Military Quality of Life and Veterans Affairs Appropriations 
Act, 2006''.
    And the Senate agree to the same.
    That the Senate recede from its amendment to the title of 
the bill.
                                   James T. Walsh,
                                   Robert B. Aderholt,
                                   Anne M. Northup,
                                   Michael K. Simpson,
                                   Ander Crenshaw,
                                   C.W. Bill Young,
                                   Mark Steven Kirk,
                                   Dennis R. Rehberg,
                                   John Carter,
                                   Jerry Lewis,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Sanford D. Bishop, Jr.,
                                   David E. Price,
                                   Robert E. Cramer, Jr.,
                                   David R. Obey,
                                 Managers on the Part of the House.

                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry Craig,
                                   Mike DeWine,
                                   Sam Brownback,
                                   Wayne Allard,
                                   Mitch McConnell,
                                   Thad Cochran,
                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary L. Landrieu,
                                   Robert C. Byrd,
                                   Patty Murray,
                                   Patrick Leahy,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendments of the Senate to the bill (H.R. 2528) making 
appropriations for military quality of life functions of the 
Department of Defense, military construction, the Department of 
Veterans Affairs, and related agencies for the fiscal year 
ending September 30, 2006, and for other purposes, submit the 
following joint statement to the House of Representatives and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report.
      The Senate amended the House bill with two amendments. 
The Senate amendment to the text deleted the entire House bill 
after the enacting clause and inserted the Senate bill. The 
conference agreement includes a revised bill.
      The Senate amended the title of the House bill. The 
conference agreement adopts the title of the bill as proposed 
by the House.

                       Items of General Interest

      Matters Addressed by Only One Committee.--The language 
and allocations set forth in House Report 109-95 and Senate 
Report 109-105 should be complied with unless specifically 
addressed to the contrary in the conference report and 
statement of the managers. Report language included by the 
House, which is not changed by the report of the Senate or the 
conference, and Senate report language, which is not changed by 
the conference is approved by the committee of conference. The 
statement of the managers, while repeating some report language 
for emphasis, does not intend to negate the language referred 
to above unless expressly provided herein. In cases where the 
House or the Senate have directed the submission of a report, 
such report is to be submitted to both Houses of Congress.
      Timely Submissions of Military Construction Reprogramming 
Requests.--The conferees regret that submissions of military 
construction reprogramming requests to Congress are often 
delayed. Such delays are of particular concern when projects 
carry bid expiration deadlines, which can lead to increased 
costs when those deadlines are not met. Therefore, the 
conferees direct the Comptroller of the Department of Defense 
to ensure reprogramming requests are processed expeditiously to 
allow Congress sufficient time to consider and act upon such 
requests.
      Impact of Natural Disasters on Military Construction 
Costs.--The conferees are aware that military construction 
costs have increased in the United States due to reduced 
contractor availability and increased competition, as well as 
increased prices for certain materials, as a result of recent 
natural disasters. The conferees are additionally concerned 
that damage and reconstruction requirements caused by these 
natural disasters will seriously exacerbate this problem. 
Therefore, the conferees direct the Department of Defense to 
account for the potential increased cost to military 
construction projects in the fiscal year 2007 budget request. 
Further, the Assistant Secretary of each military department 
with responsibility for installations and the head of each 
Defense agency should certify that such costs have been taken 
into account upon the submission of the Administration's fiscal 
year 2007 military construction budget request.
      Revisions to CENTCOM Master Plan.--The conferees have 
rescinded funds for the repair of an airfield at Karshi-
Khanabad Air Base, Uzbekistan, because access to that base is 
no longer available to the United States. The conferees 
understand that revisions to the Central Command (CENTCOM) 
master plan, submitted to Congress in 2005, have already been 
made for Iraq, and the conferees believe that the loss of 
access rights in Uzbekistan will require further revisions to 
the plan. The conferees emphasize that it isthe duty of CENTCOM 
to keep the congressional defense committees apprised of any changes to 
this plan and direct CENTCOM to report to the Committees on 
Appropriations of both Houses of Congress on changes made since its 
original submission no later than January 31, 2006.
      Submission of Defense-Wide Military Construction Future 
Years Defense Plan.--The conferees clarify that Military 
Construction, Defense-Wide is not exempt from the Future Years 
Defense Program (FYDP) submission requirements of 10 U.S.C. 
221. The conferees direct the Department of Defense to submit 
the FYDP for the Defense-Wide military construction budget with 
the fiscal year 2007 request.
      Military Construction and Global Rebasing.--The conferees 
are aware that the Army spent approximately $71,400,000 of 
fiscal year 2005 operation and maintenance funds on the 
renovation of 14 ``rolling-pin'' barracks at Fort Carson, 
Colorado, to accommodate soldiers of the 2nd Brigade, 2nd 
Infantry Division, which was restationed from Korea as part of 
the Department of Defense's Integrated Global Presence and 
Basing Strategy (IGPBS). The Army indicated that the expected 
life cycle of these renovated barracks is 15-20 years and 
asserted that, at a cost of approximately $41,000 per soldier, 
renovated barracks are more cost-efficient than new 
construction, at a cost of approximately $71,000 per soldier. 
The conferees note that given the Department of Defense's 
recapitalization goal of 67 years, the comparable cost of the 
renovated barracks is likely to be much higher. The Army, 
however, further indicated that the overriding factor was not 
cost efficiency, but expediency, which raises another concern 
of the conferees. Costs associated with IGPBS and the 
modularity initiative should not be funded solely through 
supplemental appropriations and reprogrammings, but rather 
should be considered through the regular authorization and 
appropriations process. The conferees therefore direct the 
Department of Defense to integrate IGPBS, and the Army's 
modularity initiative, with the regular military construction 
program beginning with its fiscal year 2007 budget submission.

                                TITLE I

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,775,260,000 for 
Military Construction, Army, instead of $1,652,552,000 as 
proposed by the House and $1,640,641,000 as proposed by the 
Senate. Within this amount, the conference agreement provides 
$170,021,000 for study, planning, design, architect and 
engineer services, and host nation support instead of 
$168,804,000 as proposed by the House and $179,343,000 as 
proposed by the Senate. The agreement also includes $50,000,000 
for force protection activities in Iraq as proposed by the 
House. The Senate bill contained no similar provision.
      The conference agreement also rescinds $3,046,000 from 
Public Law 107-249 and $16,700,000 from Public Law 108-324. The 
conferees direct the Army to submit by March 31, 2006 a report 
describing how the rescissions of funds in this Act will be 
applied. This report shall list, by project, the amount of 
funds to be sourced to such rescissions.
      The conference agreement does not include language 
proposed by the Senate to designate funding for two projects. 
The agreement addresses this language in the attached detail 
table by State. The House bill contained no similar provision.
      Of the funds provided for planning and design in this 
account, the conferees direct that $90,000 be made available 
for the planning and design of the land purchase, Main Gate, 
Yakima Training Center, Washington.
      Of the funds provided for minor construction in this 
account, the conferees direct that $1,100,000 be made available 
for the construction of a high explosive magazine at McAlester 
Army Ammunition Plant, Oklahoma.
      Of the funds provided for minor construction in this 
account, the conferees direct that $1,500,000 be made available 
for the construction of the first phase of a tactical 
operations center on Kwajalein Atoll, instead of dome housing 
as proposed by the Senate. However, the conferees continue to 
expect the Secretary of Defense to submit a report to the 
Committees on Appropriations of both Houses of Congress no 
later than December 1, 2005, detailing the timeline for the 
replacement of substandard housing on Kwajalein Atoll.

              Military Construction, Navy and Marine Corps

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,157,141,000 for 
Military Construction, Navy and Marine Corps, instead of 
$1,109,177,000 as proposed by the House and $1,045,882,000 as 
proposed by the Senate. Within this amount, the conference 
agreement provides $34,893,000 for study, planning, design, 
architect and engineer services instead of $36,029,000 as 
proposed by the House and $32,524,000 as proposed by the 
Senate.
      The conference agreement rescinds $5,767,000 from Public 
Law 108-132. The agreement also rescinds $44,270,000 from 
Public Law 108-324, instead of $92,354,000 as proposed by the 
Senate. The House bill contained no similar provision. The 
conferees direct the Navy to submit by March 31, 2006 a report 
describing how the rescissions of funds in this Act will be 
applied. This report shall list, by project, the amount of 
funds to be sourced to such rescissions.
      North Island, California--Bachelor Enlisted Quarters, 
Homeport Ashore.--The conferees are very supportive of the 
Homeport Ashore program to provide unaccompanied housing for 
enlisted sailors when in port, and encourage the Navy to pursue 
this initiative as part of the bachelor enlisted quarters (BEQ) 
privatization pilot program. Although the conferees commend the 
Navy for seeking innovative solutions, including privatization, 
to expedite the construction of new BEQ units, they also note 
that the authorization, as contained in the fiscal year 2003 
Defense Authorization Act, limits the Navy to three pilot 
projects. The North Island proposal is not among the projects 
earlier identified by the Navy as part of the pilot program, 
and is therefore not authorized under current law. Although the 
conferees have denied funding for the North Island project for 
this reason, they urge the Navy to proceed as expeditiously as 
possible with the projects currently authorized under the BEQ 
privatization pilot program so that Congress has a basis on 
which to evaluate the potential for expansion of the program in 
future years.

                    Military Construction, Air Force

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,288,530,000 for 
Military Construction, Air Force, instead of $1,171,338,000 as 
proposed by the House and $1,209,128,000 as proposed by the 
Senate. Within this amount, the conference agreement provides 
$95,537,000 for study, planning, design, architect and engineer 
services instead of $91,733,000 as proposed by the House and 
$83,626,000 as proposed by the Senate.
      The conference agreement rescinds $13,000,000 from Public 
Law 108-11, $6,600,000 from Public Law 108-132, and $9,500,000 
from Public Law 108-324. The agreement also rescinds 
$46,500,000 from Public Law 109-13 for the runway repair 
project, including associated planning and design, at Karshi-
Khanabad Air Base, Uzbekistan. The conferees direct the Air 
Force to submit by March 31, 2006 a report describing how the 
rescissions offunds in this Act will be applied. This report 
shall list, by project, the amount of funds to be sourced to such 
rescissions.
      The conference agreement does not include language 
proposed by the Senate to designate funding for two projects. 
The agreement addresses this language in the attached detail 
table by State. The House bill contained no similar provision.

                  Military Construction, Defense-Wide

              (INCLUDING RESCISSION AND TRANSFER OF FUNDS)

      The conference agreement appropriates $1,008,855,000 for 
Military Construction, Defense-Wide, instead of $976,664,000 as 
proposed by the House and $1,072,165,000 as proposed by the 
Senate. Within this amount, the conference agreement provides 
$136,406,000 for study, planning, design, architect and 
engineer services instead of $107,285,000 as proposed by the 
House and $133,120,000 as proposed by the Senate.
      The conference agreement also rescinds $20,000,000 from 
Public Law 108-324 due to unobligated balances in contingency 
construction.
      The conference agreement provides $50,000,000 for the 
Energy Conservation Improvement Program as proposed by the 
House, instead of $60,000,000 as proposed by the Senate. The 
agreement does not provide funding for contingency construction 
due to the recurrence of carryover amounts.
      The conferees direct the National Security Agency to 
follow standard acquisition and design-review procedures on its 
fiscal year 2006 projects.

               Military Construction, Army National Guard

      The conference agreement appropriates $523,151,000 for 
Military Construction, Army National Guard, instead of 
$410,624,000 as proposed by the House and $467,146,000 as 
proposed by the Senate.
      Of the funds provided for planning and design in this 
account, the conferees direct that $186,000 be made available 
for the planning and design of the Combined Support Maintenance 
Shop, Searcy, Arkansas.
      Of the funds provided for minor construction in this 
account, the conferees direct the specified amounts be made 
available for the construction of the following facilities: 
Marana, Arizona--Fire Station, $1,499,000; Camp Murray, 
Washington--Homeland Security Multi-Functional Education 
Center, $1,424,000.

               Military Construction, Air National Guard

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $316,117,000 for 
Military Construction, Air National Guard, instead of 
$225,727,000 as proposed by the House and $279,156,000 as 
proposed by the Senate. The conference agreement also rescinds 
$13,700,000 from Public Law 108-324. The conferees direct the 
Air National Guard to submit by March 31, 2006 a report 
describing how the rescission of funds in this Act will be 
applied. This report shall list, by project, the amount of 
funds to be sourced to such rescission.
      Of the funds provided for planning and design in this 
account, the conferees direct that the specified amounts be 
made available for the planning and design of the following 
facilities: New Castle County Airport, Delaware--Replacement C-
130 Maintenance Hangar, $1,440,000; Duluth IAP, Minnesota--
Addition to Joint FAA/ANG Fire Station Facility, Phase 2, 
$700,000; March ARB, California--Replace Aircraft Maintenance 
Hangar and Shops, $960,000; Fresno Yosemite IAP, California--
Replace Vehicle Maintenance Complex, $340,000.
      Of the funds provided for minor construction in this 
account, the conferees direct that $1,500,000 be made available 
for the construction of an arm and disarm apron at the end of 
runway 13 at Atlantic City IAP, New Jersey.

                  Military Construction, Army Reserve

      The conference agreement appropriates $152,569,000 for 
Military Construction, Army Reserve, instead of $138,425,000 as 
proposed by the House and $136,077,000 as proposed by the 
Senate.

                  Military Construction, Naval Reserve

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $46,864,000 for 
Military Construction, Naval Reserve, instead of $45,226,000 as 
proposed by the House and $46,676,000 as proposed by the 
Senate. The conference agreement also rescinds $5,368,000 from 
Public Law 108-132 and $11,192,000 from Public Law 108-324. The 
conferees direct the Naval Reserve to submit by March 31, 2006 
a report describing how the rescissions of funds in this Act 
will be applied. This report shall list, by project, the amount 
of funds to be sourced to such rescissions.

                Military Construction, Air Force Reserve

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $105,883,000 for 
Military Construction, Air Force Reserve, instead of 
$110,847,000 as proposed by the House and $89,260,000 as 
proposed by the Senate. The conference agreement also rescinds 
$13,815,000 from Public Law 108-324. The conferees direct the 
Air Force Reserve to submit by March 31, 2006 a report 
describing how the rescission of funds in this Act will be 
applied. This report shall list, by project, the amount of 
funds to be sourced to such rescission.
      Of the funds provided for planning and design in this 
account, the conferees direct that $207,000 be made available 
for the planning and design of the Addition/Alteration Aerial 
Port Facility, Homestead ARB, Florida.

     North Atlantic Treaty Organization Security Investment Program

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $206,858,000 for 
the North Atlantic Treaty Organization Security Investment 
Program as proposed by both the House and the Senate. The 
conference agreement also includes a rescission of $30,000,000 
from Public Law 108-324 due to the slow spendout rate of the 
program and the recurrence of carryover amounts.

                        Family Housing Overview

      Family Housing Reprogramming Requests.--The conferees 
note the language contained in House Report 109-95 regarding 
the applicability of reprogramming guidelines to family housing 
projects. The conferees feel strongly that these guidelines 
should continue to apply to family housing projects, including 
privatization projects, to enable adequate congressional 
oversight.

                   Family Housing Construction, Army

                         (INCLUDING RESCISSION)

      The conference agreement appropriates $549,636,000 for 
Family Housing Construction, Army as proposed by both the House 
and the Senate. The conference agreement also rescinds 
$16,000,000 from Public Law 108-324. The conferees direct the 
Army to submit by March 31, 2006 a report describing how the 
rescission of funds in this Act will be applied. This report 
shall list, by project, the amount of funds to be sourced to 
such rescission.

             Family Housing Operation and Maintenance, Army

      The conference agreement appropriates $803,993,000 for 
Family Housing Operation and Maintenance, Army as proposed by 
the House, instead of $812,993,000 as proposed by the Senate.

           Family Housing Construction, Navy and Marine Corps

      The conference agreement appropriates $218,942,000 for 
Family Housing Construction, Navy and Marine Corps as proposed 
by both the House and the Senate.

    Family Housing Operation and Maintenance, Navy and Marine Corps

      The conference agreement appropriates $588,660,000 for 
Family Housing Operation and Maintenance, Navy and Marine Corps 
as proposed by the House, instead of $593,660,000 as proposed 
by the Senate.

                 Family Housing Construction, Air Force

                        (INCLUDING RESCISSIONS)

      The conference agreement appropriates $1,101,887,000 for 
Family Housing Construction, Air Force, instead of 
$1,236,220,000 as proposed by the House and $1,142,622,000 as 
proposed by the Senate. The conference agreement also rescinds 
$7,700,000 from Public Law 107-249, $4,500,000 from Public Law 
108-132, and $31,700,000 from Public Law 108-324. The conferees 
direct the Air Force to submit by March 31, 2006 a report 
describing how the rescissions of funds in this Act will be 
applied. This report shall list, by project, the amount of 
funds to be sourced to such rescissions.
      Adjustments to Air Force Family Housing Program.--The 
conferees note the progress made in the Air Force family 
housing privatization program, allowing the 2006 construction 
program to be adjusted without adversely affecting Air Force 
families. The privatization program leverages private sector 
capital and expertise to build superior family housing at less 
direct cost to the Federal government. Progress in the 
privatization program has resulted in unanticipated savings 
most recently on projects at four installations: Peterson AFB, 
Colorado; the United States Air Force Academy, Colorado; 
Bolling AFB, District of Columbia; and F.E. Warren AFB, 
Wyoming. The conferees note that privatization at these four 
installations will now allow for the construction or renovation 
of 3,156 homes, a 33 percent increase over the 2,371 units 
originally proposed in the budget request.
      Spangdahlem Air Base, Germany.--The conferees note the 
current need for housing at Spangdahlem Air Base, Germany, and 
have provided funding for such purpose. The conferees urge the 
Air Force to consider all options to address the housing need 
at Spangdahlem Air Base. Specifically, build-to-lease housing 
has the potential to provide quality housing quickly to the 
families at Spangdahlem, while also providing a more cost-
effective and flexible option to the United States. The 
conferees direct the Secretary of the Air Force to report on 
the housing plan at Spangdahlem.
      The report must include the following:
            Footprint requirements for family housing relative 
        to land on hand at Spangdahlem and land purchase, if 
        any, required.
            A complete cost-benefit analysis of all available 
        housing options at Spangdahlem, including build-to-
        lease. The analysis should include, but not be limited 
        to, the cost per housing unit of each option and 
        evidence of efforts made to lower such cost.
            A certification that all options have been pursued 
        with the German government, including, but not limited 
        to, cost-sharing, road repair between housing units, 
        and loan guarantees.
      As provided in the administrative provisions of this 
title, none of the funds appropriated for family housing at 
Spangdahlem may be obligated until the Secretary of the Air 
Force certifies to the Committees on Appropriations of both 
Houses of Congress that the above-mentioned report has been 
completed and received the Committees' response, or a period of 
30 days has elapsed after receipt of the report.

          Family Housing Operation and Maintenance, Air Force

      The conference agreement appropriates $766,939,000 for 
Family Housing Operation and Maintenance, Air Force as proposed 
by the Senate, instead of $755,319,000 as proposed by the 
House.

               Family Housing Construction, Defense-Wide

      The conference agreement does not appropriate funding for 
Family Housing Construction, Defense-Wide. The Administration's 
budget request did not propose funding for this account in 
fiscal year 2006.

         Family Housing Operation and Maintenance, Defense-Wide

      The conference agreement appropriates $46,391,000 for 
Family Housing Operation and Maintenance, Defense-Wide as 
proposed by both the House and the Senate.

         Department of Defense Family Housing Improvement Fund

      The conference agreement appropriates $2,500,000 for the 
Department of Defense Family Housing Improvement Fund as 
proposed by both the House and the Senate.

          Chemical Demilitarization Construction, Defense-Wide

      The conference agreement does not appropriate funding for 
Chemical Demilitarization Construction, Defense-Wide. The 
purpose of this account is to provide funds for the design and 
construction of full-scale chemical disposal facilities and 
associated projects to upgrade installation support facilities 
and infrastructure required to support the chemical 
demilitarization program.
      Because the Department of Defense requested no funding 
for this account for fiscal year 2006, the conferees have not 
provided funding. However, the conferees remain mindful that 
obligations exist to complete construction associated with the 
Department's chemical demilitarization program, including the 
Assembled Chemical Weapons Alternatives (ACWA) program. The 
chemical demilitarization construction account within the 
Military Construction title of the relevant House and Senate 
appropriations bills is the appropriate account for funding 
construction associated with this program. The conferees expect 
the Department of Defense to include any requests for chemical 
demilitarization construction funding in future years, 
including for ACWA, to be included in the Chemical 
Demilitarization Construction, Defense-Wide account.

                 Base Realignment and Closure Overview

      Past Years Military Construction Impacted by BRAC.--The 
conferees note that some projects appropriated in this Act or 
in previous Acts making appropriations for military 
construction may be rendered unnecessary as a result of the 
2005 base realignment and closure recommendations, which became 
effective on November 9, 2005. The conference agreement 
rescinds funds due to anticipated savings as a result. In the 
event that additional savings are realized, the conferees 
remind the Department that excess funds may not be reprogrammed 
except in accordance with the guidelines set forth by the 
Committees on Appropriations of both Houses of Congress. 
Further, the conferees have provided a single appropriation for 
the implementation of BRAC 2005, as requested by the 
Department, in order to ensure the Department has maximum 
flexibility to carry out this effort. All expenses resulting 
from the 2005 base realignment and closure recommendations 
should be paid from this account. The conferees have also 
included a statutory reporting requirement to maintain 
appropriate fiscal oversight.
      BRAC Environmental Remediation.--The conferees note the 
language included in the Senate report regarding the use of 
Office of Economic Adjustment (OEA) funding, which is 
appropriated through the Department of Defense Appropriations 
Act, for the community share of certain environmental 
remediation activities at the former McClellan Air Force Base, 
California. The conferees support this language and further 
emphasize that OEA funds are to be used in all instances for 
the purpose for which they were appropriated and not used to 
supplant BRAC environmental remediation funding at any 
Department of Defense installation.

            Department of Defense Base Closure Account 1990

      The conference agreement appropriates $254,827,000 for 
the Department of Defense Base Closure Account 1990, instead of 
$377,827,000 as proposed by the House and $402,827,000 as 
proposed by the Senate. This amount fully funds the 
Administration's request for environmental cleanup and other 
activities associated with past BRAC rounds of all the Services 
with the exception of the Navy, which will self-finance its 
program. Included in the funding is an additional $14,000,000 
for the Army and $6,000,000 for the Air Force above the 
Administration's request. The purpose of this additional 
funding is to expedite cleanup activities in fiscal year 2006 
that the Services have identified as candidates for 
acceleration.
      The conferees note that the Navy has collected 
approximately $650,000,000 from the recent sale of property at 
the former El Toro, California, Marine Corps Air Station. By 
law, proceeds from the sale of property closed under the 
Defense Base Closure and Realignment Act of 1990 must be 
deposited into the 1990 Department of Defense Base Closure 
(BRAC) account to be used for BRAC related activities, 
including environmental cleanup. By agreement between the 
military Services and the Office of the Secretary of Defense, 
BRAC land sale revenues are credited to the military Service 
owner of the property that was sold and are used to offset BRAC 
costs by that Service. Based on this agreement and the Navy's 
recent land sale revenues, the Navy no longer requires the 
$143,000,000 in fiscal year 2006 appropriated funds as 
requested in the President's budget submission for activities 
funded through the BRAC 1990 account.
      Environmental remediation associated with the BRAC 
process remains a key concern of the conferees. The conferees 
commend the Navy for its efforts to maximize revenue from the 
disposal of property from installations closed under previous 
BRAC rounds and for its application of those revenues to the 
environmental cleanup of closed Navy facilities. The conferees 
further encourage the Department of Defense and the other 
Services to pursue similar land sale strategies to provide 
additional revenue for the cleanup of their installations. To 
ensure that Navy land sale revenues are used to expedite 
environmental remediation activities at Navy installations, the 
conferees have included a provision in the conference report 
directing that no less than $300,000,000 of the revenues 
deposited into the BRAC 1990 account from the sale of Navy 
property be used to execute the Navy's fiscal year 2006 
environmental cleanup program. This level of funding is 
$24,000,000 above the original budget estimate, including both 
appropriated funds and earlier projected land sale revenues.

            Department of Defense Base Closure Account 2005

      The conference agreement appropriates $1,504,466,000 for 
the Department of Defense Base Closure Account 2005, instead of 
$1,570,466,000 as proposed by the House and $1,479,466,000 as 
proposed by the Senate. The agreement includes language 
proposed by the Senate to prohibit the use of these funds until 
the Secretary of Defense submits and receives approval of a 
report describing the specific use of these funds. The House 
bill contained no similar provision.

                       Administrative Provisions

                     (INCLUDING TRANSFERS OF FUNDS)

      The conference agreement includes section 101 to limit 
the use of funds under a cost-plus-a-fixed-fee contract as 
proposed by both Houses of Congress.
      The conference agreement includes section 102 as proposed 
by the House to allow the use of construction funds in this 
title for hire of passenger motor vehicles. The Senate bill 
contained a similar provision, but allowed the use of all funds 
in the title for such purpose.
      The conference agreement includes section 103 as proposed 
by the House to allow the use of construction funds in this 
title for advances to the Federal Highway Administration for 
the construction of access roads. The Senate bill contained a 
similar provision, but allowed the use of all funds in the 
title for such purpose.
      The conference agreement includes section 104 to prohibit 
construction of new bases in the United States without a 
specific appropriation as proposed by both Houses of Congress.
      The conference agreement includes section 105 to limit 
the use of funds for the purchase of land or land easements 
that exceed 100 percent of the value as proposed by both Houses 
of Congress.
      The conference agreement includes section 106 to prohibit 
the use of funds, except funds appropriated in this title for 
that purpose, for family housing as proposed by both Houses of 
Congress.
      The conference agreement includes section 107 to limit 
the use of minor construction funds to transfer or relocate 
activities as proposed by both Houses of Congress.
      The conference agreement includes section 108 to prohibit 
the procurement of steel unless American producers, 
fabricators, and manufacturers have been allowed to compete as 
proposed by both Houses of Congress.
      The conference agreement includes section 109 as proposed 
by the House to prohibit the use of construction and family 
housing funds available to pay real property taxes in any 
foreign nation. The Senate bill contained a similar provision, 
but prohibited the use of all funds in the title for such 
purpose.
      The conference agreement includes section 110 to prohibit 
the use of funds to initiate a new installation overseas 
without prior notification as proposed by both Houses of 
Congress.
      The conference agreement includes section 111 to 
establish a preference for American architectural and 
engineering services for overseas projects as proposed by both 
Houses of Congress.
      The conference agreement includes section 112 to 
establish a preference for American contractors in certain 
locations as proposed by both Houses of Congress.
      The conference agreement includes section 113 to require 
congressional notification of military exercises where 
construction costs exceed $100,000 as proposed by both Houses 
of Congress.
      The conference agreement includes section 114 to limit 
obligations in the last two months of the fiscal year as 
proposed by both Houses of Congress.
      The conference agreement includes section 115 to allow 
funds appropriated in prior years for new projects authorized 
during the current session of Congress as proposed by both 
Houses of Congress.
      The conference agreement includes section 116 to allow 
the use of lapsed or expired funds to pay the cost of 
supervision for any project being completed with lapsed funds 
as proposed by both Houses of Congress.
      The conference agreement includes section 117 to allow 
military construction funds to be available for five years as 
proposed by both Houses of Congress.
      The conference agreement includes section 118 to require 
an annual report on actions taken to encourage other nations to 
assume a greater share of the common defense burden as proposed 
by both Houses of Congress.
      The conference agreement includes section 119 to allow 
the transfer of proceeds between BRAC accounts as proposed by 
both Houses of Congress.
      The conference agreement includes section 120 to allow 
the transfer of funds from Family Housing Construction accounts 
to the Family Housing Improvement Fund as proposed by both 
Houses of Congress.
      The conference agreement includes section 121 to limit 
the obligation of funds for Partnership for Peace programs as 
proposed by both Houses of Congress.
      The conference agreement includes section 122 to require 
congressional notification prior to issuing a solicitation for 
a contract with the private sector for family housing as 
proposed by both Houses of Congress.
      The conference agreement includes section 123 to allow 
transfers to the Homeowners Assistance Fund as proposed by both 
Houses of Congress.
      The conference agreement includes section 124 to limit 
the source of operation and maintenance funds for flag and 
general officer quarters as proposed by both Houses of 
Congress.
      The conference agreement includes section 125 to prohibit 
the use of NATO Security Investment Program funds for missile 
defense studies as proposed by both Houses of Congress.
      The conference agreement includes section 126 as proposed 
by the House to require the Department of Defense to respond to 
a question or inquiry, in writing, within 21 days of the 
request. The Senate bill contained no similar provision.
      The conference agreement includes section 127 to extend 
the availability of funds in the Ford Island Improvement Fund 
as proposed by both Houses of Congress.
      The conference agreement includes a modified section 128 
to place limitations on the expenditure of funds for projects 
impacted by BRAC 2005.
      The conference agreement includes a new section 129 to 
designate $300,000,000 of the funds available in the Department 
of Defense Base Closure Account 1990 for the Department of Navy 
and require a report on a plan for the use of the funds.
      The conference agreement includes a new section 130 to 
require a report from the Secretary of the Air Force containing 
a housing plan for Spangdahlem Air Base, Germany.
      The conference agreement does not include a provision 
proposed by the House to allow the transfer of expired funds to 
the Foreign Currency Fluctuation, Construction, Defense 
account. The Senate bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the House to prohibit the use of funds in this 
title for maintenance and repair of general and flag officer 
quarters in the National Capital Region until the Department 
submits a report as required in Public Law 108-375. The Senate 
bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the Senate to provide planning and design funds for 
a project. The agreement addresses this language under the 
Military Construction, Air National Guard account. The House 
bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the Senate to provide funding for a project. The 
agreement addresses this language in the attached detail table 
by State. The House bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the Senate regarding funding for the Department of 
Defense Base Closure Accounts. The House bill contained no 
similar provision.

                TITLE II--DEPARTMENT OF VETERANS AFFAIRS

      Centers of Excellence.--The conferees feel the Department 
of Veterans Affairs should consider designating specialized 
medical treatment facilities for mental health and post 
traumatic stress disorder as ``Centers of Excellence''. 
Establishing these centers would allow the VA to consolidate 
personnel, training and specialized resources. This will ensure 
the VA utilizes these resources in the most efficient manner, 
while providing better service to our Nation's veterans. The 
conferees are concerned that mental health care is one of the 
most critical needs of our Nation's veterans, particularly 
those veterans returning from Operations Iraqi Freedom and 
Enduring Freedom.
      Therefore, the conferees direct the Department of 
Veterans Affairs to place more emphasis on psychiatric care of 
our veterans by designating three centers of excellence to 
focus on mental health/PTSD needs. These three centers will be 
established at Waco VAMC, Texas; San Diego VAMC, California; 
and the Canandaigua VAMC, New York.
      The VA should submit a report within six months of 
enactment of this Act to the Committees on Appropriations in 
both Houses of Congress outlining the progress made in this 
area.
      Housing for Low-Income Veterans.--The conferees agree 
that the Government Accountability Office shall conduct a study 
on housing assistance to low-income veterans and submit the 
report to the Congress within six months of enactment of this 
Act. As jurisdiction over assistance to veterans spans many 
departments, the conferees expect the Government Accountability 
Office to consult with the Committees on Appropriations of both 
Houses of Congress concerning the scope of such a study. This 
issue was addressed by the Senate as an administrative 
provision, section 222.
      Veterans Benefits Handbooks.--The conferees recognize the 
valuable information contained in the Department's annual 
publication ``Federal Benefits for Veterans and Dependents.'' 
Adequate distribution of this publication is essential to keep 
veterans informed of the benefits to which they are entitled. 
The conferees urge the Secretary to work in coordination with 
the various veterans services organizations, including the 
National Association of County Veterans Service Officers, as 
well as with State departments of veterans affairs, to ensure 
that a comprehensive plan exists to distribute an adequate 
supply of the 2006 and future editions of ``Federal Benefits 
for Veterans and Dependents.'' This issue was addressed by the 
Senate as section 223 of the administrative provisions which 
the conferees have deleted from the bill.
      Post Traumatic Stress Disorder.--The conferees agree with 
the House direction under the ``Items of Interest'' regarding 
Post Traumatic Stress Disorder Clinical Teams.
      Changing Veterans Population.--The conferees agree with 
the direction of the Senate responding to the changing 
population of veterans.

                    Veterans Benefits Administration

                       COMPENSATION AND PENSIONS

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates $33,897,787,000 for 
Compensation and Pensions, instead of $33,412,879,000 as 
proposed by both the House and the Senate. The amount provided 
reflects the most current estimate of funding required for this 
mandatory account and reflects a 4.1 percent cost-of-living 
adjustment. Of the amount provided, not more than $23,491,000 
is to be transferred to General Operating Expenses and Medical 
Services for reimbursement of necessary expenses in 
implementing the Omnibus Budget Reconciliation Act of 1990 and 
the Veterans' Benefits Act of 1992.
      Annual Benefits Report.--The conferees agree with the 
Senate language directing the Department to continue production 
of the annual benefits report which shall include select 
veteran data for all benefit programs by State.

                         READJUSTMENT BENEFITS

      The conference agreement appropriates $3,309,234,000 for 
Readjustment Benefits, instead of $3,214,246,000 as proposed by 
both the House and the Senate. The amount provided reflects the 
most current estimate of funding required for this mandatory 
account.
      Task Force on VRE Benefits.--The conferees direct the 
Department to report to the Committees on Appropriations of 
both Houses of Congress by March 16, 2006 on its efforts to 
implement the recommendations of the Task Force on the 
Vocational Rehabilitation and Employment benefits program.

                   VETERANS INSURANCE AND INDEMNITIES

      The conference agreement appropriates $45,907,000 for 
Veterans Insurance and Indemnities as proposed by both the 
House and the Senate.

         VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates such sums as may be 
necessary for costs associated with direct and guaranteed loans 
from the Veterans Housing Benefit Program Fund Program Account 
as proposed by both the House and the Senate. The agreement 
limits obligations for direct loans to not more than $500,000 
and provides that $153,575,000 is to be transferred to and 
merged with General Operating Expenses.

            VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates $53,000 for the 
costs of direct loans from the Vocational Rehabilitation Loans 
Program Account as proposed by both the House and the Senate, 
plus $305,000 to be transferred to and merged with General 
Operating Expenses. The agreement provides for a direct loan 
limitation of $4,242,000.

          NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates $580,000 for 
administrative expenses of the Native American Veteran Housing 
Loan Program Account to be transferred to and merged with 
General Operating Expenses as proposed by both the House and 
the Senate. The agreement also provides for a loan limitation 
of $30,000,000 for the program as proposed by both the House 
and the Senate.

  GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM 
                                ACCOUNT

      The conference agreement provides up to $750,000 of the 
funds available in Medical Administration and General Operating 
Expenses to carry out the Guaranteed Transitional Housing Loans 
for Homeless Veterans program as proposed by both the House and 
the Senate.

                     Veterans Health Administration

                            MEDICAL SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates $22,547,141,000 to 
finance Medical Services for all veterans and beneficiaries in 
Department of Veterans Administration facilities, State nursing 
homes, and contract medical facilities, of which $1,225,000,000 
is designated an emergency. The House had proposed 
$20,995,141,000 and the Senate had proposed $23,308,011,000, of 
which $1,977,000,000 was designated as emergency funding.
      Of the amount provided, $1,100,000,000 is available for 
obligation until September 30, 2007 as proposed by the House, 
instead of $1,500,000,000 as proposed by the Senate. The 
conferees also agree that the Department shall spend not less 
than $2,200,000,000 for specialty mental health care as 
proposed by the House.
      The conference agreement includes a net increase of 
$1,100,000,000 to the original budget request to reverse policy 
proposals contained in the budget. These proposals included a 
priority system of care relating to veterans needing long-term 
or nursing home care, a proposal to institute an enrollment fee 
for certain veterans, and a change in the co-pay amount 
forprescription drugs. The conferees reject all of these proposals and 
direct the Department to maintain policies in existence prior to 
submission of the budget. It is the agreement of the conferees that the 
budget savings anticipated from such policy proposals in the future 
should not be included in the budget unless the proposals are enacted 
and savings are realized. For the last four years, there has been a 
proposal for an enrollment fee and an increase in pharmacy co-payments 
included in the budget with unrealistic savings. Every year the 
Congress has had to find resources to make up for savings projections 
which do not materialize.
      In addition, the conference agreement includes funding of 
$1,452,000,000 tied to various corrections of errors in the 
original budget submission and adjustments for workload due to 
corrections of the Department's actuarial model. The conferees 
have made some funding adjustments to accommodate this 
increased need for funding, and language is included which 
requires submission of a revised budget amendment by the 
President to enable the use of emergency funding for the 
remaining funds.
      The conference agreement retains language proposed by 
both the House and the Senate providing the Secretary with the 
authority to establish a priority system for veterans seeking 
medical care, allowing the Secretary to give priority to 
medical services for priority 1-6 veterans, allowing 
theSecretary to fill privately written prescriptions by Department of 
Veterans Affairs facilities, and provides $15,000,000 for the 
Department of Defense/Veterans Affairs Health Care Sharing Incentive 
Fund.
      Long-Term Care.--The conferees do not agree with the 
proposal contained in the budget to alter the long-term care 
policies, including a policy of priority care in nursing homes. 
The conferees have provided, within this total appropriation, 
sufficient resources to maintain a policy of providing long-
term care to all veterans, utilizing VA-owned facilities, 
community nursing homes, State nursing homes, and other non-
institutional venues. The conferees expect there to be no 
change from the policy in existence prior to fiscal year 2005.
      Prosthetics Research and Integrative Health Care.--The 
conferees note that the fiscal year 2005 conference agreement 
included language directing the Department to prioritize 
prosthetics in its research agenda and establish a new 
prosthetics and integrative health care initiative. The 
conferees are pleased with the response of the Department, 
including designating four VA Medical Centers as polytrauma 
centers which will provide medical care and rehabilitation to 
service members sustaining multiple conditions such as 
amputation, visual and auditory impairment, post traumatic 
stress, traumatic brain injury, and spinal cord injury. The 
conferees continue to be interested in progress being made in 
this area of integrative treatment and direct the Department to 
provide semi-annual updates on the status of this initiative.

                         MEDICAL ADMINISTRATION

      The conference agreement appropriates $2,858,442,000 for 
Medical Administration as proposed by the Senate instead of 
$4,134,874,000 as proposed by the House. The conference funding 
level includes the movement of information technology 
development funding to a new Information Technology Systems 
account, as proposed by the Senate, under Departmental 
Administration. The agreement also includes language allowing 
$250,000,000 of the funds to be available until September 30, 
2007.
      Revenue Improvement Demonstration.--The conferees share 
the Senate concern that the Department of Veterans Affairs is 
only collecting 41 percent (unadjusted for Medicare impacts) of 
the billed amounts from third party insurance companies and 
expect the Department to report to both Houses of Congress on 
its efforts to improve this collection rate by January 1, 2006. 
Furthermore, the conference agreement does not support all the 
guidelines as specified in House Report 109-95; however, the 
conferees do support the following guidelines regarding a 
revenue improvement demonstration project: the recommendation 
that the VA initiate a new pilot program that will provide a 
comprehensive restructuring of the complete revenue cycle 
including cash-flow management and accounts receivableprocesses 
in certain VA hospitals; the recommendation that the VHA Chief Business 
Officer must have the concurrence of the VA Chief Information Officer 
on the business plan for this demonstration; and that the Department 
provide quarterly progress reports to the Committees on Appropriations 
in both Houses of Congress.
      In selecting a site for this project, the conferees 
direct the Department to select one medical center in a 
Veterans Integrated Service Network (VISN) other than 10, which 
is the host site of a demonstration project authorized by 
Public Law 108-357. The Department must initiate this project 
within 60 days of the date of enactment of this Act. The 
conferees expect that no Department full-time equivalent 
employees associated with the demonstration project would be 
terminated during the term of the project, except for purposes 
of personnel action relating to employee misconduct or 
unsatisfactory performance, in accordance with existing labor 
management agreements and personnel authorities of titles 5 and 
38, United States Code, as applicable.
      Contract Care Coordination.--The conferees support 
expeditious action by the Department to implement care 
management strategies that have proven valuable in the broader 
public and private sectors. It is essential that care purchased 
for enrollees from private sector providers be secured in a 
cost effective manner, in a way that complements the larger 
Veterans Health Administration system of care, and preserves 
important agency interest, such as sustaining a partnership 
with university affiliates. In that interest, the VHA shall 
establish through competitive award by the end of calendar year 
2006, at least three managed care demonstration programs 
designed to satisfy a set of health system objectives related 
to arranging and managing care. The conferees encourage the 
Department to formulate demonstration objectives in 
collaboration with industry and academia, and the Secretary 
will report objectives to the Committees on Appropriations of 
both Houses of Congress within 90 days of the enactment of this 
Act. Multiple competitive awards and designs may be employed 
that may incorporate a variety of forms of public-private 
participation. The demonstrations, in satisfying the objectives 
to be enumerated, must be established in at least three VISNs, 
be comprehensive in scope, and serve a substantial patient 
population.
      Management Efficiencies.--The conferees share the concern 
of the Senate that estimated management efficiencies are not 
supported by adequate budget justification details. Therefore, 
in future budget submissions, the Department is directed to 
provide more detail on its justification for management 
efficiencies.

                           MEDICAL FACILITIES

      The conference agreement appropriates $3,297,669,000 for 
operation, maintenance and security of Medical Facilities as 
proposed by both the House and the Senate. The agreement also 
includes language allowing $250,000,000 of the funds to be 
available until September 30, 2007.
      Community Based Outpatient Clinics.--The conferees have 
received numerous requests for funding specific Community Based 
Outpatient Clinics (CBOCs) but have retained the practice of 
not earmarking funds for these facilities. However, the 
conferees are concerned that the commitments made as a result 
of the final recommendations of the Capital Asset Realignment 
for Enhanced Services Commission may not be kept due to a 
variety of reasons. The conferees direct the Department to 
report on the status of CBOC's in Bessemer, Alabama; Richmond 
County (Hamlet), North Carolina; Conroe, Texas; Athens, 
Tennessee; North Central Washington; Lynchburg, Virginia; and 
Charlottesville, Virginia, including the reasons for any delay 
associated with their establishment. In addition, the conferees 
urge the Department to reevaluate the need for CBOC's in 
Capitola, California; Jackson County, Florida; Levittown (Bucks 
County), Pennsylvania; Sunbury (Northumberland County), 
Pennsylvania; Bellingham, Washington; and Gladstone, Michigan. 
The conferees direct the Department to complete this report no 
later than March 15, 2006 and submit it to the Committees on 
Appropriations of both Houses of Congress.
      Community Based Outpatient Clinics in Rural Areas.--The 
conferees remain concerned about veterans' access to healthcare 
in rural areas. As such, the conferees direct the Secretary to 
reevaluate Veterans Health Administration Handbook 1006.1 and 
other guidance and procedures related to planning, activating, 
staffing, and maintaining Community Based Outpatient Clinics to 
ensure that rural areas are adequately served. In addition, the 
Secretary should also review the criteria utilized, including 
geographic access, number of Priority 1 through 6 veterans, 
market penetration, cost effectiveness and distance to parent 
facilities, to determine whether planning criteria disadvantage 
rural veterans. The Senate had addressed this issue as 
administrative provision 227.
      Beckley, West Virginia.--The conferees agree with 
language included in the Senate report urging the Department to 
include sufficient funding in its fiscal year 2007 budget 
request for construction of a 120-bed nursing home care unit at 
the Beckley, West Virginia VAMC, consistent with the CARES 
priority list as described in the Department's February 2005 
Five-Year Capital Plan 2005-2010 report.

                    MEDICAL AND PROSTHETIC RESEARCH

      The conference agreement appropriates $412,000,000 for 
Medical and Prosthetic Research as proposed by the Senate 
instead of $393,000,000 as proposed by the House. The conferees 
agree with the Senate provision which designates $15,000,000 
for Gulf War Illness research.
      Mental Health Research.--The conferees agree that 
research on mental health diagnosis and treatment should be a 
priority of the Department of Veterans Affairs. The conferees 
believe that more research may lead to earlier identification 
of problems and more effective treatment, thereby reducing the 
long-term complications and costs associated with mental health 
issues. The conferees strongly suggest that the Department 
encourage research in this discipline by establishing a 
balanced and goal-based research program which takes into 
consideration the potential benefit of better treatment as well 
as reducing the cost of care provided by the Department.
      Gulf War Illness.--The conferees recognize the unique 
nature of Gulf War Illness and direct the Department to 
implement the recommendations of the Research Advisory 
Committee (RAC) on Gulf War Veterans' Illness in the context of 
the overall Department research program. One aspect of this 
effort is the establishment of a research center of excellence 
devoted to Gulf War Illness research. The conferees are 
supportive of this effort and direct the Department to report 
to the Committees on Appropriations of both Houses of Congress 
regarding establishment of such a center by March 15, 2006. In 
complying with the RAC recommendations, the Department is 
directed to devote at least $15,000,000 to Gulf War Illness 
research in this fiscal year, and in each of the next four 
fiscal years. In addition, this initiative shall, at a minimum, 
begin with a pilot study involving collaborative research 
between a VA Medical Center and the University of Texas, 
Southwestern Medical Center, which is presently conducting 
extensive research on Gulf War Illness.

                      Departmental Administration

                       GENERAL OPERATING EXPENSES

      The conference agreement appropriates $1,410,520,000 for 
General Operating Expenses instead of $1,411,827,000 as 
proposed by the House and $1,418,827,000 as proposed by the 
Senate. The conference agreement provides not less than 
$1,053,938,000 for the Veterans Benefits Administration, 
instead of $1,086,938,000 as proposed by the House and 
$1,093,937,500 as proposed by the Senate. Of the amount 
provided, $70,000,000 is available for obligation until 
September 30, 2007, as proposed by the House instead of 
$71,000,000 as proposed by the Senate.
      The agreement also provides for a limitation on the 
purchase of passenger motor vehicles for use in operations by 
the Veterans Benefits Administration in Manila, Philippines, as 
proposed by the House. The Senate had proposed no limitation.
      Senate language directing the Department to conduct an 
information campaign in States with lower disability 
compensation payments has been moved to administrative 
provisions, section 228.
      The conferees do not agree to the Senate language calling 
for a report on the cost of replacing non-standardized home 
glucose monitoring equipment while maintaining existing 
equipment, depending upon patient choice. The report is not 
required since the conferees have adopted an administrative 
provision (section 220) prohibiting the Department from moving 
forward with a national standardization effort for home glucose 
monitoring equipment.

                     INFORMATION TECHNOLOGY SYSTEMS

      The conference agreement appropriates $1,213,820,000 for 
Information Technology Systems as a new account instead of 
$1,456,821,000 as proposed by the Senate. The House had 
maintained information technology funding as part of existing 
accounts, including Medical Administration.
      Senate language regarding the HealtheVet program has been 
moved to administrative provisions, section 229.
      Based upon the funding provided, the Department is to 
provide a comprehensive listing of priority projects for fiscal 
year 2006 and submit it to the Committees on Appropriations of 
both Houses of Congress within 30 days of enactment of this 
Act.
      The conferees note that on October 19, 2005, the 
Secretary of the Department of Veterans Affairs approved a 
federated information technology model for the Department. This 
model will require significant reorganization of the 
Department's information technology management and operations 
and will take a minimum of 12 months to accomplish. The 
conferees hope that the revised account structure approved in 
this appropriations Act and the management model approved by 
the Secretary will go far in improving the efficiency of the 
Department's information technology systems while giving 
Congress better insight into these programs.
      The conferees agree that in this first year of a major 
reorganization of information technology activities, funding 
will be available for a two-year period instead of one year. 
This will allow sufficient time for the Department to 
reorganize and execute its information technology projects in 
an effective manner.
      The conferees agree that the Department is to provide the 
Committees on Appropriations of both Houses of Congress with 
quarterly reports on the status of each information technology 
project included in the budget. Each report shall include, but 
not be limited to, a milestone schedule for each project, each 
project's scheduled completion date, the amount appropriated 
for each project, planned and actual obligations of each 
project with explanations of the variance, and the unobligated 
balances of each project.
      The conferees are in agreement that the amount provided 
for the CoreFLS project shall be limited to $30,000,000 in 
fiscal year 2006.

                    NATIONAL CEMETERY ADMINISTRATION

      The conference agreement appropriates $156,447,000 for 
the National Cemetery Administration as proposed by both the 
House and the Senate. The conferees agree that the Department 
is to provide a report to the Committees on Appropriations of 
both Houses of Congress on the potential use of land at Fort 
Ord, California, for a national cemetery. The conferees direct 
the Secretary and the Undersecretary for Memorial Affairs to 
examine the unique situation at Fort Ord and report back to the 
Committees no later than January 16, 2006.

                      OFFICE OF INSPECTOR GENERAL

      The conference agreement appropriates $70,174,000 for the 
Office of Inspector General as proposed by both the House and 
the Senate.

                      CONSTRUCTION, MAJOR PROJECTS

      The conference agreement appropriates $607,100,000 for 
Construction, Major Projects as proposed by both the House and 
the Senate. Within the amount provided, $532,010,000 is for 
Capital Asset Realignment for Enhanced Services (CARES) 
projects as proposed by the House instead of $539,800,000 as 
proposed by the Senate. The agreement also provides $2,500,000 
for reimbursement for contract disputes as proposed by the 
Senate, instead of $8,091,000 as proposed by the House. The 
conferees have included a modified provision, proposed by the 
Senate, which restricts the Department's ability to reduce the 
mission, services or infrastructure, including land, of 18 
facilities on the CARES list requiring further study, without 
prior approval of the Committees on Appropriations of both 
Houses of Congress.
      CARES Feasibility Studies.--The conferees are concerned 
with ongoing delays in the feasibility study for new veterans 
hospitals. The CARES decision recognized that these hospitals 
need to be replaced with new hospitals in order to provide 
veterans with the access and quality of care they need. The 
feasibility study delays are undermining the Secretary's 
decision and threaten to unnecessarily delay construction of 
these new hospitals. The Department is directed to work with 
the contractor conducting the feasibility studies to ensure 
that they are completed and the Secretary has made a final 
decision, by June 1, 2006, on building these new hospitals. The 
Department will report to the Committees on Appropriations of 
both Houses of Congress within 30 days of enactment of this 
bill on the action it has taken to meet these requirements.

                      CONSTRUCTION, MINOR PROJECTS

      The conference agreement appropriates $198,937,000 for 
Construction, Minor Projects instead of $208,937,000 as 
proposed by both the House and the Senate. The conference 
agreement provides $155,000,000 for construction projects 
implementing CARES recommendations, instead of $160,000,000 as 
proposed by both the House and the Senate. The agreement does 
not include a provision proposed by the Senate which would make 
additional funding available for CARES activities upon 
notification and approval by the Committees on Appropriations 
of both Houses of Congress.

       GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

      The conference agreement appropriates $85,000,000 for 
Grants for Construction of State Extended Care Facilities 
instead of $25,000,000 as proposed by the House and 
$104,322,000 as proposed by the Senate.
      The conferees agree with the direction of the House 
calling for the Department to undertake a rigorous and 
extensive analysis of long-term care needs of veterans and 
report to the Committees on Appropriations of both Houses of 
Congress by March 31, 2006, on the results of that study. This 
study is to be done with all interested stakeholders 
participating.
      The conferees do not agree with the Senate position 
restricting grants to any one state to one-third of the amount 
appropriated in any one fiscal year.

        GRANTS FOR THE CONSTRUCTION OF STATE VETERANS CEMETERIES

      The conference agreement appropriates $32,000,000 for 
Grants for the Construction of State Veterans Cemeteries, as 
proposed by both the House and the Senate.

                       ADMINISTRATIVE PROVISIONS

                     (INCLUDING TRANSFERS OF FUNDS)

      The conference agreement includes section 201 allowing 
for transfers among various mandatory accounts as proposed by 
both the House and the Senate and includes a proviso requiring 
Congressional notification and approval as proposed by the 
Senate.
      The conference agreement includes section 202 allowing 
for the use of salaries and expenses funds to be used for other 
authorized purposes as proposed by both the House and the 
Senate.
      The conference agreement includes section 203 restricting 
the use of funds for the acquisition of land as proposed by the 
House.
      The conference agreement includes section 204, as 
proposed by both the House and the Senate, limiting the use of 
funds in the Medical Services account to only entitled 
beneficiaries or unless reimbursement is made to the 
Department.
      The conference agreement includes section 205 allowing 
for the use of certain mandatory appropriations accounts for 
payment of prior year accrued obligations for those accounts as 
proposed by both the House and the Senate.
      The conference agreement includes section 206 allowing 
for the use of appropriations available in this title to pay 
prior year obligations as proposed by both the House and the 
Senate.
      The conference agreement includes section 207, as 
proposed by both the House and the Senate, regarding 
administration of the National Service Life Insurance Fund, the 
Veterans' Special Life Insurance Fund, and the United States 
Government Life Insurance Fund.
      The conference agreement includes section 208 making the 
Department's Franchise Fund authority permanent. The House had 
proposed a one-year extension and the Senate had proposed 
permanent authority with different language.
      The conference agreement includes section 209, as 
proposed by both the House and the Senate, allowing for the 
proceeds from enhanced-use leases to be obligated in the year 
in which the proceeds are received.
      The conference agreement includes section 210, as 
proposed by both the House and the Senate, allowing for the use 
of funds in this title for salaries and other administrative 
expenses to be used to reimburse the Office of Resolution 
Management and the Office of Employment Discrimination 
Complaint Adjudication.
      The conference agreement includes section 211 limiting 
the use of funds for any lease with an estimated annual rental 
of more than $300,000 unless approved by the Committees on 
Appropriations of both Houses of Congress, as proposed by both 
the House and the Senate.
      The conference agreement includes section 212 requiring 
the Secretary of the Department of Veterans Affairs to collect 
third-party payer information for persons treated for non-
service connected disability, as proposed by both the House and 
the Senate.
      The conference agreement includes section 213, as 
proposed by both the House and the Senate, allowing for the use 
of enhanced-use leasing revenue for Construction, Major 
Projects and Construction, Minor Projects.
      The conference agreement includes section 214 allowing 
for the use of Medical Services funds to be used for 
recreational facilities and funeral expenses as proposed by 
both the House and the Senate.
      The conference agreement includes section 215 allowing 
for funds deposited into the Medical Care Collections Fund to 
be transferred to the Medical Services account, as proposed by 
both the House and the Senate.
      The conference agreement includes section 216 allowing 
for the transfer of funds among three medical accounts for the 
purpose of perfecting the restructuring of the Veterans Health 
Administration accounts. Such transfers are subject to prior 
Congressional approval. Both the House and the Senate had 
proposed similar transfer provisions with slightly different 
language. The conferees would like to emphasize that the 
transfers permitted by this provision are to be highlighted to 
the Congress in a timely manner. The conferees note that this 
new account structure has been in place for three years and 
sufficient time has passed for the Department to budget 
properly in this account structure. The conferees do not expect 
to continue this provision in the future.
      The conference agreement includes section 217 allowing 
for the transfer of funds from General Operating Expenses to 
the Veterans Housing Benefit Program Fund Program Account for 
the cost of a nationwide property management contract, as 
proposed by both the House and the Senate.
      The conference agreement includes section 218, as 
proposed by both the House and the Senate, which allows Alaskan 
veterans to use medical facilities of the Indian Health Service 
or tribal organizations at no additional cost to the Department 
of Veterans Affairs or the Indian Health Service.
      The conference agreement includes section 219 which 
provides for the transfer of funds from the Department of 
Veterans Affairs Capital Asset Fund to the Construction, Major 
Projects and Construction, Minor Projects accounts and makes 
those funds available until expended. This provision was 
included in both the House and the Senate bills.
      The conference agreement includes section 220, which 
prohibits the expenditure of funds to replace the current 
system by which VISNs select and contract for diabetes 
monitoring supplies and equipment. The House had proposed a 
similar prohibition and the Senate had proposed report language 
on this issue.
      The conference agreement includes section 221, 
prohibiting the use of funds on any policy prohibiting the 
outreach or marketing to enroll new veterans, as proposed by 
the Senate.
      The conference agreement includes section 222, which 
requires the Secretary to submit quarterly reports on the 
financial status and service level status of the Veterans 
Health Administration. The report shall contain, at a minimum, 
both planned and actual expenditure rates, unobligated 
balances, potential financial shortfalls, any transfers between 
major accounts (medical services, medical administration, and 
medical facilities), and status of any equipment or non-
recurring maintenance funds--including whether theyhave been 
used to pay for operating expenses. In addition, the service portion of 
the report will contain, at a minimum, the time required for new 
patients to get their first appointment, the time required for 
established patients to get their next appointment, and the number of 
unique veterans and patients being served. Each report should address 
data for the system total and for each VISN, and for comparison 
purposes the initial report shall also provide patient data for the 
preceding eight quarters. The conference agreement modifies Senate 
section 203.
      The conference agreement includes section 223, requiring 
the Department of Veterans Affairs to submit to the Committees 
on Appropriations of both Houses of Congress, a plan for 
implementation of the third recommendation contained in Office 
of Inspector General Report No. 05-00765-137. The provision 
also prohibits the expenditure of funds retroactively to revoke 
or reduce disability compensation payments related to 2,100 
cases used in preparing the Inspector General report. The 
language in the conference agreement is a modification of the 
language included in the Senate bill.
      The conference agreement includes section 224, as 
proposed by the Senate, calling for collaboration between the 
National Center for Post Traumatic Stress Disorder and the 
Department of Defense. The provision was not in the House bill.
      The conference agreement includes section 225, allowing 
for the transfer of funds from various accounts to the 
Information Technology Systems account to complete the 
restructuring in this appropriations Act, subject to 
congressional approval. This provision was not in either the 
House or Senate bill.
      The conference agreement includes section 226, allowing 
for the transfer of funds among various accounts to perfect the 
accounting structure of the Information Technology Systems 
account, subject to congressional approval. This provision was 
not in either the House or Senate bill.
      The conference agreement includes section 227, providing 
for transfer of funds among projects within the Information 
Technology Systems account, subject to congressional 
notification and approval for any change of $1,000,000 or more.
      The conference agreement includes section 228, providing 
for the Department to conduct an information campaign in States 
where disability compensation payments are less than $7,300. 
The Senate had proposed this language as a proviso within the 
General Operating Expenses account.
      The conference agreement includes section 229, which 
places a cap on the total funding available for HealtheVetVista 
in fiscal year 2006 and requires approval of an expenditure 
plan for the project by the Committees on Appropriations of 
both Houses of Congress. The Senate had proposed similar 
language as part of the Information Technology account.
      The conference agreement includes section 230, which 
extends the authorization of the Department's homeless program 
until September 30, 2006. This provision was not in either the 
House or Senate bill.
      The conference agreement does not include a provision 
proposed by the Senate (section 204), which would have required 
the Department to seek approval of the Congress for a change of 
10 percent or more in the scope of a major construction 
project. The proposed provision would have duplicated section 
8104 of title 38, United States Code.
      The conference agreement does not include a provision 
proposed by the House (section 213) restricting the use of 
funds for implementing sections 2 and 5 of Public Law 107-287 
and section 303 of Public Law 108-422.
      The conference agreement does not include a provision 
proposed by the Senate (section 222). The report requested in 
the provision has been addressed in the overview language at 
the beginning of this section on the Department of Veterans 
Affairs.
      The conference agreement does not include a provision 
proposed by the Senate (section 223) regarding distribution of 
veterans' benefits handbooks. This issue is addressed in the 
overview language at the beginning of this section on the 
Department of Veterans Affairs.
      The conference agreement does not include a provision 
proposed by the Senate (section 226) because it duplicates the 
intent of Senate section 203.
      The conference agreement does not include a provision 
proposed by the Senate (section 227) regarding Community Based 
Outpatient Clinics in rural areas. This issue is addressed in 
the Medical Facilities section of the statement of the 
managers.

                               TITLE III

                            RELATED AGENCIES

                  American Battle Monuments Commission

                         SALARIES AND EXPENSES

      The conference agreement appropriates $36,250,000 for 
Salaries and Expenses as proposed by the Senate, instead of 
$35,750,000 as proposed by the House.
      Within the amount provided, the conferees are in 
agreement that the Commission is to use $500,000 to have a 
study conducted to determine what action is warranted to 
preserve the stability of the World War II Point du Hoc Ranger 
Monument located near the Normandy American Cemetery in France.
      The conferees have also provided the full budget request 
of $3,100,000 for the completion of funding required to 
construct the Normandy Interpretive Center at the Normandy 
American Cemetery in France.
      The conferees agree with direction in the House report 
that the Commission is to provide a report of the financial 
position of the World War II Memorial fund annually to the 
Committees on Appropriations of the House and Senate.

                 FOREIGN CURRENCY FLUCTUATIONS ACCOUNT

      The conference agreement appropriates $15,250,000 for the 
Foreign Currency Fluctuations Account as proposed by both the 
House and the Senate.

           United States Court of Appeals for Veterans Claims

                         SALARIES AND EXPENSES

      The conference agreement appropriates $18,795,000 for the 
Salaries and Expenses account as proposed by the Senate, 
instead of $18,295,000 as proposed by the House. The conferees 
are in agreement that the increase shall be used to begin 
implementation of an electronic case management system as 
directed in the Senate report.

         Department of Defense--Civil Cemeterial Expenses, Army

                         SALARIES AND EXPENSES

      The conference agreement appropriates $29,050,000 for 
Salaries and Expenses, instead of $29,550,000 as proposed by 
the House and $28,550,000 as proposed by the Senate.
      The conferees are in agreement that $1,000,000 is to be 
used to continue the Arlington Cemetery automation process with 
a priority placed on providing for the physical security of the 
``hard copy'' records. Additionally, the conferees direct the 
Army to provide an updated report to the Committees on 
Appropriations of the House and Senate on its automation 
process. The report shall identify detailed cost estimates for 
the total project as well as costs for key components, which 
may be procured on a stand-alone basis.

                      Armed Forces Retirement Home

      The conference agreement appropriates $58,281,000 for the 
Armed Forces Retirement Home as proposed by both the House and 
the Senate. These funds are to be paid from funds available in 
the Armed Forces Retirement Home Trust Fund. Of the amount 
provided, $1,248,000 shall remain available until expended for 
construction and renovation of physical plants at the Armed 
Forces Retirement Home. The conferees recognize that the 
Washington, D.C. facility is undergoing a transformation as a 
result of moving residents from the Gulfport, Mississippi 
facility after Hurricane Katrina. The conferees wish to be 
fully informed of any changes at the Washington, D.C. facility 
and direct the Armed Forces Retirement Home to provide periodic 
updates and information to the Committees on Appropriations of 
the House and Senate.

                                TITLE IV

                           GENERAL PROVISIONS

      The conference agreement includes section 401 as proposed 
by the House to prohibit the obligation of funds in the Act 
beyond the current fiscal year unless expressly so provided. 
The Senate bill contained no similar provision.
      The conference agreement includes section 402 as proposed 
by the House to require pay raises to be absorbed within the 
levels appropriated in the Act. The Senate bill contained no 
similar provision.
      The conference agreement includes section 403 as proposed 
by the House to prohibit the use of funds in the Act for 
programs, projects or activities not in compliance with Federal 
law relating to risk assessment, the protection of private 
property rights, or unfunded mandates. The Senate bill 
contained no similar provision.
      The conference agreement includes section 404 as proposed 
by the House to prohibit the use of funds in the Act to support 
or defeat legislation pending before Congress. The Senate bill 
contained no similar provision.
      The conference agreement includes section 405 as proposed 
by the House to encourage the expansion of E-Commerce 
technologies and procedures. The Senate bill contained no 
similar provision.
      The conference agreement includes section 406 as proposed 
by both Houses of Congress to prohibit the transfer of funds to 
any instrumentality of the United States Government without 
authority from an appropriations Act.
      The conference agreement includes section 407 as proposed 
by both Houses of Congress to specify the congressional 
committees that are to receive all reports and notifications.
      The conference agreement includes a new section 408 to 
amend section 613 of the Science, State, Justice, Commerce and 
Related Agencies Appropriations Act, 2006.
      The conference agreement does not include a provision 
proposed by the House regarding reimbursements for consultants. 
The Senate bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the House regarding a reporting requirement in the 
Defense Base Closure and Realignment Act of 1990. The Senate 
bill contained no similar provision.
      The conference agreement does not include a provision 
proposed by the Senate regarding conference report 
requirements. The House bill contained no similar provision.


                   Conference Total--With Comparisons

      The total new budget (obligational) authority for the 
fiscal year 2006 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2005 amount, the 2006 
budget estimates, and the House and Senate bills for 2006 
follow:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2005...     $78,799,417
Budget estimates of new (obligational) authority, fiscal 
    year 2006...........................................      81,726,037
House bill, fiscal year 2006............................      80,531,818
Senate bill, fiscal year 2006...........................      82,984,618
Conference agreement, fiscal year 2006..................      82,573,514
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2005..............................................      +3,774,097
    Budget estimates of new (obligational) authority, 
      fiscal year 2006..................................        +847,477
    House bill, fiscal year 2006........................      +2,041,696
    Senate bill, fiscal year 2006.......................        -411,104

                                   James T. Walsh,
                                   Robert B. Aderholt,
                                   Anne M. Northup,
                                   Michael K. Simpson,
                                   Ander Crenshaw,
                                   C.W. Bill Young,
                                   Mark Steven Kirk,
                                   Dennis R. Rehberg,
                                   John Carter,
                                   Jerry Lewis,
                                   Chet Edwards,
                                   Sam Farr,
                                   Allen Boyd,
                                   Sanford D. Bishop, Jr.,
                                   David E. Price,
                                   Robert E. Cramer, Jr.,
                                   David R. Obey,
                                 Managers on the Part of the House.

                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Larry Craig,
                                   Mike DeWine,
                                   Sam Brownback,
                                   Wayne Allard,
                                   Mitch McConnell,
                                   Thad Cochran,
                                   Dianne Feinstein,
                                   Daniel K. Inouye,
                                   Tim Johnson,
                                   Mary L. Landrieu,
                                   Robert C. Byrd,
                                   Patty Murray,
                                   Patrick Leahy,
                                Managers on the Part of the Senate.