Veterans Get Nearly $81 Billion in Historic FY 07 Plan

Landmark Budget Includes Largest Increase in Health Care Spending in History WASHINGTON - Secretary of Veterans Affairs R. James Nicholson announced on February 6, 2006 that President Bush will seek a record $80.6 billion in the fiscal year 2007 budget for the Department of Veterans Affairs (VA), with the overwhelming majority of these resources targeted for health care and disability compensation. The FY '07 proposal represents an increase of $8.8 billion, or 12.2 percent, above the budget for 2006. "Veterans are a priority. That's why the President is proposing this historic budget with a landmark increase to continue the best health care and vital benefits to those veterans who count on VA the most," Nicholson said. "With the support of Congress, we can take care of the needs of our newest generation of combat veterans, while honoring our commitment to veterans of earlier eras." The FY '07 budget proposal calls for $38.5 billion in discretionary funding -- mostly for health care. This budget contains the largest increase in discretionary funding for VA ever requested by a President. For health care alone, the President's request is an increase of $3.5 billion (or more than 11 percent) over the FY '06 level. The budget proposal also would provide $42.1 billion in mandatory funding, mostly for compensation, pension and other benefit programs. FY '07 Budget Highlights This budget proposal ensures that the Department will be able to care for those veterans who count on VA the most. * With this budget proposal, the President, working in partnership with Congress, will have increased health care funding for veterans by 69 percent since FY '01. * The budget continues the President's commitment for VA to work closely with the Department of Defense to ensure that service members returning from Iraq and Afghanistan and their families receive timely, high-quality services and benefits. * VA will be able to care for an estimated 5.3 million patients. With this budget, the Department will continue providing world-class care for its high-priority patients, including over 100,000 veterans of Operation Iraqi Freedom and Operation Enduring Freedom. * The FY '07 budget request calls for a total investment of almost $3.2 billion in mental health services, which is $339 million above this year's level. This budget proposal ensures a full continuum of care for veterans with mental health issues, to include comprehensive treatment for veterans with post-traumatic stress disorder (PTSD). * The FY '07 budget proposal requests $1.4 billion for prosthetics and sensory aids, a $160 million increase over FY '06. *Funding for non-institutional long-term care would increase by nearly 10 percent over FY '06, with a total investment of $535 million in the President's proposed budget. * The FY '07 budget proposal includes over $78 million for national cemetery construction projects, including funds for cemetery expansion and improvement at Great Lakes, Mich.; Dallas/Ft. Worth, Texas; and Saratoga, N.Y. Resources are also included for the development of master plans for six new national cemeteries in Bakersfield, Calif.; Birmingham, Ala.; Columbia-Greenville, S.C.; Jacksonville, Fla.; Sarasota, Fla.; and southeastern Pennsylvania. The budget also includes $32 million in grants for the construction of state veterans' cemeteries.