FACT SHEET:

Republican Budget Shortchanges America’s Veterans and Members of the Armed Forces

On the battlefield, our troops pledge to leave no soldier behind. Here at home, Democrats know that we must also leave no veteran behind. We must ensure health care, pensions, and benefits for veterans and members of the armed forces. Yet the Republican budget fails to adequately invest in veterans’ health care, refuses to end the Disabled Veterans’ Tax, and continues the penalty on benefit to widows of military retirees. In addition, the President’s budget proposes new increases in the cost of veterans’ health care and slash long-term care funding.

Republican budget fails our promise to America’s veterans’ and soldiers. The Bush budget is completely inadequate, as is the budget drafted by House Republicans. The House Republican budget increases funding above the inadequate Bush request for veterans’ health care, but is still more than $1 billion short of what veterans need. It fails to repeal the Disabled Veterans Tax, which forces disabled military retirees to give up one dollar of their pension for every dollar of disability pay they receive, and contains an empty promise to end the Survivor Benefit Penalty, but only if cuts to other programs are made. And Republicans rejected Democratic efforts to increase family separation and imminent danger pay for men and women in uniform deployed around the world.

Democratic budget places priority on America’s veterans and supporting our troops. The Democratic alternative significantly increases support for American troops in Iraq and Afghanistan. The Democrat plan provides $2 billion to restore full survivor benefits to families of military retirees and to improve military housing for 50,000 families. It also permanently permits many reservists to buy military health care through TRICARE and calls for continuing targeted pay raises for enlisted personnel. The Democratic alternative includes a $2.5 billion increase over Bush budget for veterans’ health care next year, which veterans’ groups critically needed to maintain the current levels of veterans’ health care services.

Republican budget fails to adequately invest in veterans’ health care. Right now, 30,000 veterans are waiting six months or longer for an appointment at VA hospitals. But the President’s budget includes an increase of less than 2 percent for veterans’ health care – not enough to maintain current services and nearly $3 billion less than veterans’ organizations agree is needed. It also proposes new increases in the cost of veterans' health care for up to 1 million veterans, and slashes long-term care funding. Similarly, the House Republican budget is $1.3 billion short of the needed investments in veterans’ health, and House Republicans rejected efforts by Congressman Chet Edwards (D-TX) led Democratic to provide an additional $2.5 billion for veterans' health care to ensure that current levels of veterans' health care services can be maintained.

Republican budget refuses to end the Survivor Benefit Penalty. The Survivor Benefit Penalty penalizes aging survivors, mostly widows, of the veterans of our county. Military retirees pay premiums for years and rightfully expect that upon their death, their spouse will receive 55 percent of their benefit. But when their survivor reaches 62, a Social Security “offset” drops the benefit to a mere 35 percent. The Bush budget forces the spouses of military retirees to continue to pay this unfair penalty, and the House Republican budget contains an empty promise to end the Survivor Benefit Penalty, but only if cuts to other programs are made.

Republican budgets refuse to end the Disabled Veterans’ Tax. Both the Republican and the President’s budget fails to repeal the Disabled Veterans Tax, which forces disabled military retirees to give up one dollar of their pension for every dollar of disability pay they receive. It continues to require nearly 400,000 military retirees with service-connected disabilities to continue to pay the Disabled Veterans’ Tax.

Bush budget fails to expedite disability claims and threatens all veterans’ benefits. The President’s budget slashes funding for more than 800 employees needed to process disability and other benefit claims in 2005. Today, more than 465,000 veterans are awaiting a decision on their claims for compensation and pension benefits, and an additional 148,000 have appeals awaiting action. More than 106,000 of those veterans have been waiting six months or more for their decisions. Despite this backlog, the budget makes it harder for veterans to get their disability, education, pension, housing and employment benefits by eliminating critically needed staff who process claims for veterans’ benefits.

Bush budget slashes funding for long-term care. The President’s budget slashes $294 million in funding for long-term care for America’s veterans, which will reduce the number of patients treated by more than 8,000.

Bush budget cuts 50,000 VA home loans. The Bush budget cuts the number of VA home loans for veterans by 50,000 – denying VA home loans to veterans who have taken out a VA home loan in the past.

Bush budget slashes funding for medical and prosthetic research. The President budget calls for a $50 million cut in award-winning VA medical and prosthetic research. This would set the research grant program back six years, just as many of our troops in Iraq and Afghanistan are coming home with terrible injuries that require this expertise.

Health services for Gulf War & Iraqi veterans fail to meet growing need. The President's budget calls for only about 6 percent more for the Gulf War programs to provide health-related services to veterans of the Gulf War, as well as veterans now returning from Iraq and Afghanistan. To meet the needs of returning troops, these programs will likely have to increase significantly.

Office of the House Democratic Leader Nancy Pelosi, March 25, 2004