Military Construction, Veterans Affairs, and Related Agencies: FY2012 Appropriations

Daniel H. Else, Coordinator
Specialist in National Defense

Christine Scott
Specialist in Social Policy

Sidath Viranga Panangala
Specialist in Veterans Policy

The Military Construction, Veterans Affairs, and Related Agencies appropriations bill provides funding for the planning, design, construction, alteration, and improvement of facilities used by active and reserve military components worldwide. It capitalizes military family housing and the U.S. share of the NATO Security Investment Program and finances the implementation of installation closures and realignments. It underwrites veterans benefit and health care programs administered by the Department of Veterans Affairs (VA), provides for the creation and maintenance of U.S. cemeteries and battlefield monuments within the United States and abroad, and supports the U.S. Court of Appeals for Veterans Claims, Armed Forces Retirement Homes, and Arlington National Cemetery. The bill also funds advance appropriations for veterans’ medical services.

President Barack Obama submitted his request to Congress for FY2012 appropriations on February 14, 2011. For the appropriations accounts included in this bill, his request totaled $145.2 billion in new budget authority, divided into three major categories: Title I (military construction and family housing) at $14.8 billion; Title II (veterans affairs) at $130.2 billion; and Title III (related agencies) at $246.4 million. Of the total, $75.7 billion (52.1%) would be discretionary appropriations, with the remainder considered mandatory.

Military construction funding amounts requested by the President and enacted by Congress have fallen off as the 2005 Defense Base Closure and Realignment (BRAC) round has reached completion. Funding support for military family housing construction has also declined as the military departments (Army, Navy, and Air Force) continue their efforts to privatize formerly government-owned accommodations.

Funding for the VA between FY2011 and FY2012 in the Administration request, and both the House- and Senate-passed versions of H.R. 2055, reflect increases for veterans’ benefits and health care and reductions in general administration. The largest percentage increases between FY2011 and FY2012 are for mandatory benefits—disability compensation and pension benefits, and readjustment benefits (where the largest component is for education benefits).

The House Committee on Appropriations reported its FY2012 bill (H.R. 2055) on May 31, 2011 (H.Rept. 112-94), and the House passed it on June 14. The Senate referred the bill to its Appropriations Committee, which reported it with an amendment in the form of a substitute on June 30 (S.Rept. 112-29). The Senate began debate on July 14 and passed the bill on July 20, 2011. Failing the bill’s enactment before the beginning of the fiscal year, military construction has been funded in the interim by temporary appropriations, including the First FY2012 Continuing Resolution (H.R. 2017, P.L. 112-33, through October 4, 2011), the Second FY2012 Continuing Resolution (H.R. 2608, P.L. 112-36, through November 18, 2011), and the Third FY2012 Continuing Resolution (H.R. 2112, P.L. 112-55, through December 16, 2011). The conference on H.R. 2055 began on December 5, 2011, with conferees expected to use it as a vehicle for the incorporation of several appropriations bills.


Date of Report: December 9, 2011
Number of Pages: 26
Order Number: R41939
Price: $29.95

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