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S. 274 would amend section 601 (4) of title 38, U.S.C., to permit the use of private contract hospitals for the care of war veterans in Alaska or Hawaii who are suffering from tuberculosis, Hansen's disease, or neuropsychiatric ailment, or who are permanently and totally disabled, where these conditions are nonservice connected.

The statutory term "Veterans' Administration facilities" now includes private contract facilities to provide hospital care "for veterans of any war in a territory, commonwealth, or possession of the United States." This is an exception to the general provision that hospital care for non-service-connected disorders can only be provided to the extent beds are available in VA or other Federal hospitals. With the admission of Alaska and Hawaii to statehood, the Veterans' Administration was deprived of its general authority to provide contract hospital care there for veterans suffering from non-service-connected disabilities.

It has long been Government policy to provide hospital care for our war veterans for conditions not related to their service only to the extent of available Government facilities. It has not been the policy to attempt to care for all such

cases.

Historically, the exception to permit hospital care in private facilities for war veterans with non-service-connected conditions in a territory or possession was based upon special considerations. These apparently included the factors of great distances from the mainland, difficulty in transferring patients to the States, and the relatively small volume of patient demand in the territories and possessions. The practical situation at this time does not, however, present as serious problems as might be assumed to exist.

It is true that there is no VA hospital in either Alaska or Hawaii. But arrangements have been made in both to care for war veterans with non-serviceconnected disabilities in other Government hospitals. In Alaska, we have beds allocated for VA beneficiaries in hospitals of the Department of Defense and the Department of Health, Education, and Welfare. In Hawaii, beds are allocated for our use by the Defense Department in Tripler General Hospital. We believe that the needs in both Alaska and Hawaii are being met to a reasonable extent by the use of these Government facilities.

We were advised by the Public Health Service that it is continuing to provide grants to the State of Hawaii for the care of patients with Hansen's disease. Service-connected veterans with this disability in Hawaii are currently hospitalized under VA authority. Veterans whose disability is nonservice connected will continue to be taken care of under the Public Health Service grant program. In other States, a substantial share of the responsibility for hospitalizing veterans for conditions not arising from service is borne by the States themselves. It seems reasonable to expect that this should also be true of these two new States. Use of private contract facilities in Alaska and Hawaii, as States, for providing hospital care to veterans with conditions not growing out of their service might well become a precedent for authorizing the use of contract facilities in other States.

Veterans needing care for service-connected conditions in both Alaska and Hawaii will, of course, continue to receive that care in private contract hospitals wherever necessary. The basic law applicable throughout the United States permits this, when the use of Federal facilities is not feasible, so that our primary responsibility to the veteran with service-connected disability will be fully met. The additional cost of this type of legislation would be influenced in future years by changes in the veteran populations in Alaska and Hawaii. The annual cost in the early years after enactment would be relatively small.

Under all the circumstances, we are unable to recommend favorable action on any of these bills.

We are advised by the Bureau of the Budget that there is no objection to the presentation of this report from the standpoint of the administration's program.

Sincerely,

J. S. GLEASON, JR., Administrator.

HON. LISTER HILL,

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C., March 13, 1963.

Chairman, Committee on Labor and Public Welfare,
U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This will acknowledge your letters of January 18 and 23 and February 1, 1963, requesting the views of the Bureau of the Budget regarding S. 274, S. 342, and S. 625, 88th Congress, all of which deal with the hospitalization of veterans in Alaska and Hawaii.

S. 274 would amend section 601 (4) of title 38, U.S.C., to permit the use of private contract hospitals for the care of war veterans in Alaska or Hawaii who are suffering from tuberculosis, Hansen's disease, or a neuropsychiatric ailment, or who are permanently and totally disabled, where these conditions are nonservice connected.

S. 342 and S. 625 would broaden the definition of the term "Veterans' Administration facilities" in 38 U.S.C. 601 (4) (C) to include private contract facilities in a State if (1) no Veterans' Administration hospital is located in the State on the effective date of the act, and (2) no Veterans' Administration hospital is located within 500 miles of the border of the State. These bills would permit the use of private contract hospitals for the care of war veterans with nonservice-connected disabilities in the States of Alaska and Hawaii.

The Bureau of the Budget concurs in the views of the Veterans' Administration in its report on S. 274, S. 342, and S. 625, and accordingly recommends against enactment of these bills.

Sincerely yours,

PHILLIP S. HUGHES,

Assistant Director for Legislative Reference.

[S. 331, 88th Cong., 1st sess.]

A BILL To amend section 632 of title 38, United States Code, to extend the period during which the Administrator of Veterans' Affairs may contract for the hospital and medical care of certain veterans in the Republic of the Philippines

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the second sentence of paragraph (1) of section 632 of title 38, United States Code, is amended

(1) by striking out "five consecutive fiscal years", and inserting in lieu thereof "ten consecutive fiscal years,”; and

(2) by striking out the period at the end of such sentence and inserting in lieu thereof "ending prior to July 1, 1963, nor $500,000 for any one fiscal year beginning on or after such date.".

EXPLANATION OF S. 331

This bill extends for 5 years the programs of hospital and medical care assistance for service-connected disabled veterans of the Commonwealth Army of the Republic of the Philippines. These programs, authorized in 1958 by Public Law 85-461, will terminate on June 30, 1963, unless extension legislation is enacted.

Two basic forms of assistance for service-connected disabled veterans would be extended by the bill. First, the bill extends the grant-in-aid program which reimburses the Republic of the Philippines for expenditures made by it for hospital care for service-conected disabled veterans for the Commonwealth Army: Secondly, the bill extends the program of outpatient care to Comomnwealth Army veterans which is managed directly by the Veterans Administration.

All of the assistance extended by this legislation is limited to service-connected disabled veterans of the Commonwealth Army of the Philippines who served during World War II.

Under the present operation of the grant-in-aid program, the United States Government reimburses the Philippine Government for the cost of hospitalization incurred by Philippine war veterans with service-connected disabilities. Although these reimbursements are authorized up to $2 million in any one fiscal

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year, the program has not required an expenditure of the maximum amount. In the fiscal year 1961, for instance, the Veterans Memorial Hospital provided its services to an average of 173 patients a day at a cost of $498,890. The operating cost the first 10 months of the 1962 fiscal year indicate a total fiscal expenditure of about the same amount.

Therefore, this bill provides for the lowering of the upper limit ceiling to $500,000 for each fiscal year during the 5-year extended period. Veterans' Administration data shows that the cost would not exceed $350,000 for the first year of the extended period (fiscal year 1964) with respect to hospitalization for Commonwealth Army veterans, including travel. The total cost of grantsin-aid for the extended period would be less than $2 million.

Hon. LISTER HILL,

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C. February 27, 1963.

Chairman, Committee on Labor and Public Welfare,
U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This will acknowledge your letter of January 23, 1963, requesting the views of the Bureau of the Budget regarding S. 331, a bill "To amend section 632 of title 38, United States Code, to extend the period during which the Administrator of Veterans' Affairs may contract for the hospital and medical care of certain veterans in the Republic of the Philippines."

The Bureau of the Budget concurs in the views of the Veterans Administration, as set forth in its report to your commitee, and would have no objection to enactment of this legislation.

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Chairman, Committee on Labor and Public Welfare,
U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This is in response to your request for comments by the Veterans' Administration on S. 331, 88th Congress.

Briefly, the purpose of this bill is to extend for another 5 years the program for reimbursement of the Philippine Government covering hospitalization for service-connected conditions of Commonwealth Army veterans who served with the Armed Forces of the United States during World War II. It is also designed to extend for the additional period the program of outpatient care for this group for service-connected disabilities.

Since the enactment of Public Law 865, 80th Congress, approved July 1, 1948, there has been a special program of financial assistance to the Republic of the Philippines in providing hospitalization for Commonwealth Army veterans who sustained disabilities during their service in World War II. Initially, funds were provided for the construction of the Veterans Memorial Hospital at Manila which was dedicated in November 1955 and turned over to the Philippine Government which assumed responsibility for its operation. That law also provided a program of grants to cover hospitalization expenses for this group for a period of 5 years.

These grants were continued by Public Law 421, 83d Congress, for 5 additional years to extend through calendar year 1959 on a decreasing annual scale of payments.

Public Law 85-461, approved June 18, 1958 (now embodied in 38 U.S.C. 631-634), extended, with modifications, for a 5-year period beginning July 1, 1958, the program of financial assistance for hospitalization of these veterans. This program expires June 30, 1963. The law places a ceiling of $2 million for any one fiscal year on payments for expenses, including travel in connection with such hospital care. That law also brought in a supplementary authoriza

tion for the Veterans Administration to furnish through its own facilities, or otherwise, outpatient treatment to these veterans for their service-connected conditions during the new 5-year period. Thus, the bill would authorize an extension of both features of this hospital and medical care program.

However, the bill places a ceiling of $500,000 on the amount which may be expended for payments covering hospital care, including travel expenses, for any fiscal year during the extended 5-year period. We think this is desirable and that sufficient funds for this purpose can be provided within the proposed ceiling.

The Veterans Memorial Hospital is a 722-bed institution currently recognized as one of the outstanding medical facilities in the Far East and is a symbol of the solidarity of the two nations. In its original concept, the provision for hospital care for Commonwealth Army veterans with service-connected disorders contemplated that the Philippine Government would gradually accept full financial responsibility for the operation of the hospital and the treatment of these veterans. However, it has been demonstrated throughout the period of the grant-in-aid program that grave difficulties would be faced by the Republic of the Philippines in attempting to finance the operation of the hospital and provide for the medical needs of these veterans who fought alongside our own veterans in World War II. While there is a decreasing number of service-connected veterans in this group who require hospitalization or out-patient care, it now seems apparent that continued assistance for an additional temporary period will be required after the end of fiscal year 1963.

Some data on the status of the program will be of interest. In fiscal year 1960 the average daily patient load in the hospital phase of the program was 211; in fiscal year 1961 it was 172; and for fiscal year 1962 it had decreased to 166. This factor, coupled with the declining per diem rate, shows a gradual lessening of cost to the U.S. Government for its part in continuing this important program. Based on experience in the last 4 years, the first-year cost of hospitalizing Commonwealth Army veterans, including travel, would not exceed $350,000 for fiscal year 1964, and the entire cost for the additional full 5 years would probably be less than $2 million. In addition, we estimate that the cost to the Veterans Administration for the supplementary outpatient part of the program for Commonwealth Army veterans is now approximating $300,000 per year, and this annual rate should not be materially exceeded during the additional 5 years of the proposed extension.

We believe that the existing statutory program, with the implementing agreement, provides a reasonable and prudent manner for furnishing hospital and medical care to Commonwealth Army veterans and that, under all the circumstances, it should be continued for another 5 years. Accordingly, we recommend that S. 331 be favorably considered.

We are advised by the Bureau of the Budget that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely,

J. S. GLEASON, Jr.,
Administrator.

[S. 384, 88th Cong., 1st sess.]

A BILL To amend the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, in order to provide increased protection against eviction of dependents from premises rented for dwelling purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (1) of section 300 of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (50 App. U.S.C. 530), is amended by striking out "$80" and inserting in lieu thereof "$135".

EXPLANATION OF S. 384

This bill amends section 300 of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended regarding eviction of dependents of servicemen, drafted or involuntarily called into service, from a rented dwelling place, by increasing the present monthly rental limitation of $80 to a rental limitation of $135 per month. Because of the rise in the costs of rent since 1940, the $80 per month limitation

does not afford today the protection for servicemen and their families intended by the original act. The new monthly rental limitation of $135 takes into ac count the increased rental costs, as gaged by the Business Consumer Price Index.

Hon. LISTER HILL,

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C., March 12, 1963.

Chairman, Committee on Labor and Public Welfare,
Senate Office Building, Washington, D.C.

DEAR MR. CHAIRMAN: This will reply to your letter of January 23, 1963, with respect to your request for the comments of this Bureau on S. 384, a bill to amend the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, in order to provide increased protection against eviction of dependents from premises rented for dwelling purposes.

The Bureau of the Budget would have no objection to the enactment of S. 384. Sincerely yours,

PHILLIP S. HUGHES, Assistant Director for Legislative Reference.

DEPARTMENT OF THE AIR FORCE,

OFFICE OF THE SECRETARY, Washington, D.C., March 12, 1963.

Hon. LISTER HILL

Chairman, Committee on Labor and Public Welfare,
U.S. Senate

DEAR MR. CHAIRMAN.: Reference is made to your request to the Secretary of Defense for the views of the Department of Defense with respect to S. 384, 88th Congress, a bill to amend the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, in order to provide increased protection against eviction of dependents from premises rented for dwelling purposes. The Secretary of Defense has delegated to the Department of the Air Force the responsibility for expressing the views of the Department of Defense.

The purpose of S. 384 is to amend the Soldiers' and Sailors' Civil Relief Act of 1940, to provide increased protection against eviction of dependents of military personnel from premises rented for dwelling purposes.

Current law provides that where dependents of a person in the military service occupy a dwelling for which the rent does not exceed $80 per month, they are protected from eviction from such dwelling during the period of military service except upon court order. S. 384 would extend this protection to the dependents of servicemen who occupy dwellings for which the rent does not exceed $135 per month. This increase in the maximum rent for which protection is afforded recognizes the increase in current rental prices over those in effect at the time of enactment of the present law. This proposed amendment to the Soldiers' and Sailors' Civil Relief Act would increase the number of service families protected by law. Current law which establishes $80 per month as the maximum rental for which protection is afforded significantly limits the number of families protected. The Department of the Air Force, on behalf of the Department of Defense recommends that favorable consideration be given to the enactment of S. 384. This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary of Defense.

The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee.

Sincerely,

EUGENE M. ZUCKERT.

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