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utilized fully for veterans injured in the service of the Nation, services
also will be available for other veterans unable to pay the cost of
medical care.
Legislation is again proposed that seeks reimbursement to the WA
from health insurers for treatment of insured veterans' non-service-
connected disabilities. This recognizes that an insurer's obligation to
premium-paying veterans is no different from its obligation to insured
nonveterans. Additional legislation is again being proposed to limit
travel reimbursement for those veterans treated for non-service-
connected disabilities. These legislative proposals would help focus
VA resources on the provision of quality care to those with service-
connected disabilities and are expected to save $158 million in 1979
and 1980. The budget assumes continued authority for incentive pay
for medical personnel.
In 1979, medical care for veterans will be improved through the
opening of 15 new alcohol treatment units, and through two proposed
new programs. Authority will be sought to allow WA to contract
with community halfway houses and other programs for a pilot drug
and alcohol treatment effort. Also, legislation will be proposed to
establish a program of mental and psychological readjustment services
for Vietnam era veterans.
In adjusting to the growing number of aging veterans, WA will
increase the number of nursing home beds by 702 and will increase
training programs dealing with geriatric care. Other medical pro-
grams also will target services on aging and physically disabled
The 1979 budget provides outlays for medical and prosthetic re-
search in such varied areas as spinal cord and aging research, and
adaptive equipment for disabled veterans. New funding in 1979 also
will be directed towards expanding WA’s cooperative studies research
program, and will support full-year operation of a new rehabilitation
research center at Hines, Ill. The budget also requests funds to
support commitments to health manpower training programs.

Construction of hospital and extended care facilities.—Budget authority of $220 million is requested for 1979 to fund the construction of VA replacement hospitals at Seattle, Wash., and Portland, Oreg. Additional budget authority of $197 million is requested for 1979 to support renovation and construction of medical facilities. Included is funding for new nursing homes and outpatient facilities. Finally, budget authority of $5 million is requested in 1979 for grants to States for the construction of extended care facilities, permitting the establishment or repair of additional State veterans homes for the care of aging veterans.


[In millions of dollars)

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Guaranteed loans: 2

New loans...
Net credit guaranteed.


7, 879

15, 230

1 Includes sale of loan assets.
* Includes loans counted as direct loans of other accounts.

Veterans housing.To meet the mission of veterans housing, the VA mortgage loan guarantee and direct loan programs are expected to assist 375,000 veterans obtain mortgage loans totaling $15.0 billion in 1979.

Other veterans benefits and services. The Veterans Administration administers a National Cemetery System for burial of eligible veterans, servicemen, and their survivors. Under administration policy one large active national cemetery will be designated as the regional cemetery in each of the 10 Federal regions. New regional cemeteries are under construction in regions I, II, III, and IX; existing cemeteries have been designated in regions VI, VII, VIII, and X; and site selection is underway in regions IV and V. The National Capital area's cemetery capacity is being expanded by the construction of an annex at Quantico, Va.

Other VA expenditures include the costs of undistributed nonmedical program administration, both in VA headquarters and in

field units. Outlays for these programs are estimated to be $625 million in 1979.

Related programs.-In addition to the programs discussed above, there are a number of programs with other primary missions that also assist veterans. For example, the Department of Labor has instituted a program to assist in finding employment for those who suffer extremely high rates of unemployment, including young Vietnam era veterans. $145 million has been set aside for use in 1978 and 1979. The Department of Labor also monitors the State employment service agencies to insure that veterans receive the priority service they are accorded by law. Firms holding Government contracts are required to list their job vacancies with the State employment service and are required to take affirmative action to employ Vietnam era and handicapped veterans.


National Needs Statement: |

• Protect interests of the public in legal matters.
Provide fair and prompt prosecution and trial procedures.
Help to improve State and local criminal justice systems.
Maintain public order and enforce Federal statutes.
Provide detention and correctional facilities for those
charged with or convicted of violating Federal laws.

To address national needs in the administration of justice in 1979, the Federal Government will spend an estimated $4.2 billion in support of the following major missions: • Federal law enforcement activities: $2.0 billion. • Federal litigative and judicial activities: $1.1 billion. • Federal correctional activities: $373 million. • Criminal justice assistance: $717 million. The budget includes proposals that will improve the effectiveness of Federal programs focused on these national needs. Resources for Federal enforcement will be redirected toward problems of major national concern. The Federal prison system will be improved through the construction of new facilities and by increased use of minimum security facilities and community treatment alternatives. Increased resources are recommended to handle a growing litigative caseload in order to prosecute more promptly criminal violators and to protect the rights of all citizens. To carry out these missions, the following proposals are included in the budget: • Increase resources for law enforcement efforts directed against criminal activities of special national concern: organized crime, public corruption, white collar crime, and drug trafficking. • Increase staff to enforce the immigration laws and to maintain the integrity of the borders. • Increase the effectiveness of the Equal Employment Opportunity Commission by reorganizing the Commission. The major missions are supported by the programs shown in the table on the following page.

Federal law enforcement activities.—Enforcing Federal laws requires the largest share of outlays for the administration of justice. To accomplish this mission, outlays are estimated to rise from $1.7 billion in 1977 to $1.9 billion in 1978 and $2.0 billion in 1979. Part of these increases are required to r ‘ory pay raises and higher

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Subtotal, Federal litigative and judicial







Federal correctional activities.-
Criminal justice assistance...-
Deductions for offsetting receipts..





377 755 -8






4, 294

operating costs. Other increases, coupled with savings realized by reducing expenditures on lower priority programs, will support new initiatives in high priority areas.

To reduce the impact of serious crimes of pressing national concern, the budget proposes to: • Increase Federal Bureau of Investigation (FBI) staff directed

against organized crime by 21%. • Expand FBI staff dealing with white collar crime and public

corruption by 10%. • Improve Federal drug interdiction efforts by expanding border

enforcement and by increasing the Drug Enforcement Adminis

tration staff by 3%. The FBI carries out the general investigation activities of this mission by enforcing a broad range of Federal criminal statutes. Support of this law enforcement mission is shared by the Drug Enforcement Administration, which investigates both foreign and domestic narcotics violations.

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