Senator TALMADGE. Thank you very much, Mrs. Arthurs, for a very fine and very comprehensive statement.

Some of the matters that you addressed your remarks to the jurisdictions comes under the Armed Services Committee and not the Veterans' Affairs Committee. We'll ask our staff to send copies of that over to the staff of the Armed Services Committee for their consideration.

Mrs. ARTHURS. Sir, I realize that, this could be interpreted in this manner. The only thing is, that when you're trying to present survivor benefits it's impossible to separate the two.

Senator TALMADGE. I recognize the interrelationship between the two.

Senator Matsunaga, any questions?

Senator MATSUNAGA. No questions.

Senator TALMADGE. Thank you very much, Mrs. Arthurs.

The next witness is Mr. AI M. Poteet III, special assistant to the director, national legislative service, Veterans of Foreign Wars.

TESTIMONY OF AL M. POTEET III, SPECIAL ASSISTANT TO THE DIRECTOR, NATIONAL LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS

Mr. POTEET. Good morning. My name is Al Poteet. I'm a special assistant to the director, national legislative service, VFW.

I am accompanied this morning by Fred Juarbe, assistant director of veterans' service, for VFW.

I will now summarize my statement.

S. 1703, introduced by the chairman of this subcommittee, Hon. Herman E. Talmadge, would grant a 6.3 percent cost-of-living increase for those drawing compensation effective October 1, 1977.

In March of 1977, Commander in Chief R. D. "Bulldog" Smith testified before the full Senate Veterans' Affairs Committee and recommended a cost-of-living increase of at least 6 percent for those in receipt of compensation and DIC, which is met by the provisions of S. 1703.

Regarding legislation which would authorize compensation to widows and orphans of 100 percent service-connected, disabled veterans, regardless of the cause of death, the commander in chief of the VFW views the passage of this legislation as one of the priority goals of this administration.

We strongly urge this subcommittee to include in the bill advanced a provision which would expand chapter 13 of title 38 United States Code to include DIC payments to widows and orphans of 100 percent service-connected veterans regardless of the cause of death.

S. 1642, introduced by the chairman of the full committee, Hon. Alan Cranston, would grant a 6.7 percent cost-of-living increase to those in receipt of a veterans pension payable by the VA.

Commander in Chief Smith recommended at least a 6 percent costof-living increase for VA pensions, but in light of the projected 6.7 percent increase in the Consumer Price Index by the end of the calendar year, the VFW urges the subcommittee to advance legislation

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which would grant a 7 percent cost-of-living increase effective January 1, 1978.

Another bill before this subcommittee, S. 379, introduced by Hon. Harrison A. Williams, Jr., would grant increased awards of serviceconnected compensation to a veteran who, because of a non-service-connected disability, not the result of his own willful misconduct, has suffered the loss, or loss of use, of paired extremities.

VFW resolution No. 617 is fulfilled by S. 379 and we fully support this legislation.

S. 1141, introduced by the chairman of the Housing, Insurance, and Cemeteries Subcommittee, Hon. Richard Stone, would assist veterans with a permanent and total service-connected disability due to the loss, or loss of use, of one upper and one lower extremity to acquire specially adapted housing. Even though the VFW has no specific resolution addressing this particular issue, we have historically championed the granting of equal benefits to similarly circumstanced veterans of all wars as far as practicable. However, with respect to those disabled veterans who have lost, or lost the use, of one lower and one upper extremity who are ambulating satisfactorily with crutches, braces, or a cane, we believe the changes made to title 38 by Public Law 94-581, the "Veterans Omnibus Health Care Act of 1976," are adequate for needed housing modifications.

Under section 612(a), title 38 United States Code, the Administrator of Veterans' Affairs may pay up to $2,500 for structural improvement to provide access to the home or lavatory facilities.

And, finally, in the interest of equity, the VFW recommends that the 25 percent supplemental increase for veterans 78 years or older, which was granted under Public Law 94-432, the "Veterans and Survivors Pension Adjustment Act of 1976," should also include the 208,000 surviving spouses who may also benefit from this supplemental pension payment.

The VFW commends the Chairman and members of this subcommittee and the full committee for their continuing concern for the well-being of our Nation's veterans, their dependents and survivors. Senator TALMADGE. Thank you very much, Mr. Poteet, for a very fine and very comprehensive statement. We will insert your full statement in the record at this point.

[The prepared statement of Al M. Poteet of the VFW and other material follows:]

PREPARED STATEMENT OF AL M. POTEET III, SPECIAL ASSISTANT, NATIONAL LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS OF THE UNITED STATES

Mr. Chairman and members of the subcommittee, thank you for the privilege of appearing before this distinguished Subcommittee to present the views of the Veterans of Foreign Wars of the United States with respect to the pending compensation and pension legislation under consideration.

My name is Al Poteet and my title is Special Assistant to the Director, National Legislative Service, Veterans of Foreign Wars of the United States. One of these bills before you, S. 1703, introduced by the Chairman of this Subcommittee, the Honorable Herman E. Talmadge, has complete bipartisan support of the full Senate Veterans' Affairs Committee. This bill would grant a 6.3 percent cost-of-living increase, effective October 1, 1977, to:

(1) Some 2.2 million veterans in receipt of compensation for their serviceconnected disabilities;

(2) Approximately 365,000 veterans whose service-connected disabilities are rated 50 percent or more and are provided additional allowances for dependents;

(3) For those veterans entitled to an annual clothing allowance, such would be increased from $190 to $202 per year;

(4) The more than 366,000 beneficiaries in receipt of dependency and indemnity compensation.

As you are aware, the Commander-in-Chief of the Veterans of Foreign Wars, R. D. "Bulldog" Smith, recommended at least a six percent increase in compensation and DIC when he testified before the full Committee in March of 1977. In addition, our position was reiterated in recent testimony before the House and Senate Appropriations Committees. Paragraph number eleven of our current Resolution No. 601, entitled, "Veterans Administration Programs," supports such_cost-of-living increases, as does one of our priority legislative goals for the First Session of the 95th Congress.

Regarding legislation which would authorize dependency and indemnity compensation to widows and orphans of 100 percent service-connected, disabled veterans, regardless of the cause of death, the Veterans of Foreign Wars has been mandated by successive National Conventions to seek such legislation. The Commander-in-Chief of the V.F.W. has made this one of his priority legislative goals for 1977. We strongly urge this Subcommittee to include in the bill advanced a provision which would expand Chapter 13 of Title 38, United States Code, to include payments of DIC to the widows and orphans of 100 percent service-connected veterans regardless of the cause of death.

S. 1642, introduced by the Chairman of the full Committee, the Honorable Alan Cranston, would grant a 6.7 percent cost-of-living increase to those in receipt of disability and death pension, increase the rates of dependency and indemnity compensation for parents, and increase income limitations for veterans and widows alone by $235 (from $3,540 per annum to $3,775) and for those with dependents by $320 (from $4,760 per annum to $5,080). This increase would affect nearly 2.3 million beneficiaries of whom more than 33,000 are of the Vietnam Era. Again, in testimony before the Senate Veterans' Affairs Committee last March, Commander-in-Chief R. D. “Bulldog" Smith, recommended at least a 6 percent cost-of-living increase for those in receipt of a VA pension. In light of the projected 6.7 percent increase in the Consumer Price Index by the end of this calendar year, we strongly urge this Subcommittee to advance legislation granting a seven percent increase in pension rates and income limitations, to become effective January 1, 1978.

Another bill before this Subcommittee, S. 379, introduced by the Honorable Harrison A. Williams, Jr., would grant increased awards of service-connected compensation to a veteran who, because of a non-service-connected disability, not the result of his own willful misconduct, has suffered the loss, or loss of use, of paired extremities.

V.F.W. Resolution No. 617, entitled, "Relationship of Disabilities," is fulfilled by S. 379 and I am pleased to state that the Veterans of Foreign Wars fully supports this legislation.

S. 1141, introduced by the Chairman of the Housing, Insurance, and Cemeteries Subcommittee, the Honorable Richard Stone, would amend Title 38 of the United States Code to assist veterans with a permanent and total service-connected disability due to the loss, or loss of use, of one upper and one lower extremity to acquire specially adapted housing.

The Veterans of Foreign Wars currently has no resolution addressing this specific issue. However, and as you are aware, we have historically championed the granting of equal benefits to similarly circumstanced veterans of all wars insofar as practicable.

S. 408, as amended, which became Public Law 91-22, made the most recent change to section 801, Title 38 U.S.C. According to the legislative history of S. 408, the original bill would have granted adaptive housing to those suffering the loss, or loss of use, of a lower extremity and other service-connected neurological or orthopedic disability impeding locomotion to the extent that a wheelchair is regularly required, and, thus, would have made provision for the most seriously impaired in the instant bill. However, the final language changed the wording "neurological or orthopedic disability" to organic disease or injury. There is no question that any veteran so disabled by the loss, or loss of use, of one upper and one lower extremity as to be confined to a wheelchair is in need of specially adapted housing. This provision of the bill we support wholeheartedly. It is also reasonable to anticipate some veterans disabled within the context of S. 1141 are, with great difficulty, managing to ambulate with crutches, who, in fact, should be in wheelchairs. However, authority has not been available for

needed specially adapted housing. Therefore, we can in good conscience support specially adapted housing for these disabled veterans.

With respect to those disabled veterans who have lost, or lost the use of, one upper and one lower extremity, who are ambulating satisfactorily with crutches, braces, or a cane, we believe the changes made to Title 38 by Public Law 94-581, the "Veterans Omnibus Health Care Act of 1976," are adequate for needed housing modifications. Under the provisions of section 612 (a), Title 38 U.S.C., the Administrator of Veterans' Affairs may pay or reimburse a serviceconnected veteran up to $2,500 for improvements and structural alterations necessary to assure the continuation of treatment or provide access to the home or to essential lavatory and sanitary facilities.

In the interest of equity, the V.F.W. recommends that the 25 percent supplemental increase for veterans 78 years or older, which was granted under Public Law 94-432, the "Veterans and Survivors Pension Adjustment Act of 1976," should also include the 208,000 surviving spouses who may also benefit from this supplemental pension payment.

The Veterans of Foreign Wars commends the Chairman and Members of this Subcommittee and the full Committee for their continuing concern for the well-being of our nation's veterans, their dependents and survivors. We trust the bills considered today will be advanced expeditiously and passed by the Senate.

Cited resolutions are appended to my testimony. Thank you.

RESOLUTION No. 601.-VETERANS' ADMINISTRATION PROGRAMS

Whereas, the justification for continuous review and liberal changes up-dating all programs administered by the Veterans' Administration is clearly evident; and Whereas, the Veterans' Administration has been the sole agency since 1930 dedicated to carrying out veterans programs and benefits approved by Congress; and

Whereas, the establishing of the Veterans' Administration and subsequent enactment of hard fought for right and benefits represents the Nation's recognition of its debt to veterans; and

Whereas, notwithstanding, there are continuous assaults on the integrity of veterans programs by so called "welfare planners" which recommend that veterans programs be merged with programs of other agencies, legislative proposals in the Congress or Executive Orders or actions; now, therefore be it

Resolved, by the 77th National Convention of the Veterans of Foreign Wars of the United States, that we seek approval of the following recommendations by changes in legislation as applicable:

1. Authorize presumption of service connection for psychosis and malignancy if manifested within five years following wartime service.

2. Oppose any and all proposals which could be construed as dismembering, dismantling or in any way diminishing the integrity of the programs of veterans' rights and benefits as administered by the Veterans' Administration.

3. Oppose judicial review of veterans benefits excluding contractual obligations. 4. Authorize service connection for conditions related to radiation exposure in service regardless of time when disease occurs after separation from service. 5. Oppose set off of disability compensation or pension in Railroad Retirement benefits, or any other federal retirement to which a veteran is entitled.

6. Oppose the irrevocability clause of Federal Employees' Compensation in order to permit an election of the greater benefit between Federal Employees' Compensation and VA.

7. The present rating schedule utilized by the Veterans' Administration to remain in effect without change and no revision be made unless it is first submitted to Congress subject to public hearings.

8. To provide additional funds and personnel for the Veterans' Administration to insure adequate staffing at all VA facilities and prompt administration of all VA benefits to all veterans.

9. Allow the additional 9 months extension under P.L. 93-508 for post-graduate studies or to whatever extent it is necessary for him to meet his educational objective.

10. Permit veterans to temporarily waive or interrupt their training to conserve entitlement.