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. Congress passed less than the request, appropriating $13.6 billion for Title I (less $547 million in funds rescinded from prior years), $122.2 billion for Title II, and $236 million for Title III.

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, reflects 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 enactment before the beginning of the fiscal year, military construction was funded in the interim by temporary appropriations, including the First (H.R. 2017, P.L. 112-33, through October 4, 2011), Second (H.R. 2608, P.L. 112-36, through November 18, 2011), Third (H.R. 2112, P.L. 112-55, through December 16, 2011), Fourth (H.J.Res. 94, P.L. 112-67, through December 17, 2011) and Fifth Continuing Resolutions (H.J.Res. 95, through December 23, 2011). H.R. 2055 became the vehicle for a number of unenacted appropriations, and the conference began on December 8, 2011. Conferees filed their report (H.Rept. 112-331) on what was now the “Consolidated Appropriations Act, 2012” on December 15, which was agreed to in the House on December 16 and in the Senate on December 17, 2011. The Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2012, formed Division H of the larger bill. The President signed the legislation on December 23, 2011, which subsequently became P.L. 112-74.


Date of Report: January 26, 2012
Number of Pages: 27
Order Number: R41939
Price: $29.95

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