VETERANS BENEFITS AND SERVICES Program Highlights • Support improvements in VA medical care, including $261 million for structural improvements of VA hospitals and clinics. • Provide 22.7% GI Bill increase for 2.5 million trainees in 1975. • Increase VA pension benefits 12%, effective January 1, 1975. • Continue activation of new VA medical facilities including 3 new VA hospitals and 10 outpatient clinics. • Provide for over one million new job and training opportunities for Vietnam veterans through the President's veterans program. This budget recognizes the Nation's continuing obligation to provide help to returning veterans seeking a productive place in the civilian economy. It provides liberalized readjustment benefits on a broad front-education, training, housing, and jobs. The budget also provides increased assistance to VA pension beneficiaries in recognition of the rising cost of living. Spending for benefits and services to veterans and their families is proposed to rise from $15.5 billion in 1975 to $15.6 billion in 1976. In addition, tax expenditures flowing from the tax exempt status of compensation and pension payments, and readjustment benefits amounted to $0.6 billion and $0.2 billion respectively in 1976. For an explanation of tax expenditures, see pages 67 to 69 above, or Special Analysis F in the Special Analyses volume of the Budget. Income security for veterans. Several programs help to maintain family income when veterans are disabled, aged, or deceased. Total outlays for these programs will be $7.7 billion in 1976. Service-connected compensation.-The Veterans Administration pays compensation to those veterans who, as a result of military service, have a disability that impairs their earning ability. The amount paid varies with the degree of earnings impairment. For the severely disabled, compensation is supplemented by a dependent's allowance and special statutory awards for certain disabilities. Survivors of veterans who have died from service-connected injuries also receive compensation. Compensation payments are estimated to be $4.6 billion in 1976. Non-service-connected pensions.-Disabled and aged veterans whose income falls below minimal levels are eligible for pensions, provided they have served in wartime. The families of deceased wartime veterans also qualify for pensions if they are in financial need. In recently enacted legislation, basic benefits were raised 12%, assisting 2.3 million VA pension beneficiaries in 1975. With this enactment, outlays for pensions will rise from $2.5 billion in 1974 to $2.7 billion in 1975. Cemetery and burial benefits.-The budget provides for $143 million in burial assistance payments to an estimated 338 thousand families of deceased veterans in 1976. Life insurance.-Insurance programs for veterans and their survivors provide $34.9 billion of coverage for 5 million families. In addition, the Veterans Administration supervises the Servicemen's group life insurance program for active duty military personnel, providing $63.6 billion of coverage for 3.2 million families. Veterans education, training, and rehabilitation.-The educational benefits of the "GI Bill" are varied. They range from college courses to vocational and on-the-job training; all are designed to pre pare recipients for productive civilian careers. The Vietnam Veterans Readjustment Act of 1974 extends the scope and amount of education benefits. Monthly payments are increased by 22.7%, some entitlements are extended for an additional 9 months, work-study opportunities are expanded and up to $600 per academic year can be provided in direct VA educational loans. Most of the 2.5 million current beneficiaries are Vietnam-era veterans, although servicemen on active duty, and widows and children of veterans who have died or been totally disabled in military service are also eligible. Service-disabled veterans with significant disabilities have a choice between regular GI bill benefits or vocational education. Legislation to rescind the 2 year extension of eligibility is being resubmitted effective March 1. This action will reduce 1976 outlays by $600 million. Outlays per veteran trainee are projected to rise from $1,490 in 1975 to $1,564 in 1976. Between 1969 and 1976, outlays for VA educational benefits will have risen from $0.7 billion to $3.6 billion. The number of returning veterans who will have received training under the Vietnamera GI Bill will reach 6.5 million by the end of 1976. Veterans housing.-In 1976, the VA will help some 366,000 veterans to become homeowners by guaranteeing $9.1 billion worth of mortgage loans. Efforts to help veterans secure mortgage loans from private lenders have greatly reduced the need for direct Government loans. In addition, recently enacted housing amendments increase the loan amounts for all programs, including the mobile home loan program. Hospital and medical care for veterans.-The Veterans Administration operates a nationwide civilian medical care system, which includes 171 hospitals, 209 outpatient clinics, and 84 nursing homes. Outlays for medical programs will reach $3,906 million in 1976, a $353 million increase over 1975. Medical care and hospital services.-Medical care is available to all veterans with service-connected disabilities. To the extent that available facilities and staff are not fully utilized by these veterans, care is also provided for other veterans unable to pay the cost of care. Many patients receiving treatment in VA facilities for nonservice connected ailments have private health insurance coverage which prohibits reimbursement for care in Federal facilities. Legislation is being proposed to require reimbursement to the VA medical system in such cases. A 1975 quality survey report of VA hospitals identified specific actions needed to bring the quality of care up to VA's high standards throughout the system. The survey report proposed an immediate start on these improvements in the 1975 and 1976 budgets. This budget fully meets that objective. It further relies upon authority conferred by the Health Care Expansion Act of 1973 to strengthen outpatient ambulatory care, and nursing home care. Emphasis will be placed on arrangements, such as medical care in the home, which will permit. earlier discharge of patients and convalescence in a more familiar environment. The Health Care Expansion Act also extends care to some dependents and survivors of veterans who previously have had no Government-sponsored health care. In 1976, over 1.1 million veterans will be treated in VA hospitals with another 27 thousand treated in other hospitals at VA expense. In addition, an estimated 14.7 million outpatient visits will be funded1.1 million more than in 1975. Quality and efficiency of services will continue to advance in 1975 and 1976, including: ⚫ the opening of 32 mental hygiene clinics; • the addition of 63 specialized medical services, such as intensive care units; and ⚫ the strengthening of regional management to provide faster responses to problems at individual hospitals. Construction of hospital and extended care facilities.-Budget authority of $404 million, an increase of $101 million over 1975, will finance |