The Committee recommends the budget estimate of $27,530,000 for veterans insurance and indemnities. This is an increase of $1,330,000 above the fiscal year 2002 enacted level. The Department estimates there will be 4,203,880 policies in force in fiscal year 2003 with a value of $599,263,090,000.

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

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                         Program account Administrativeexpenses 

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Appropriations, 2002        $203,278,000           $164,497,000 

Budget estimate, 2003        437,522,000            168,207,000 

Committee recommendation     437,522,000            168,207,000 

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PROGRAM DESCRIPTION

This appropriation provides for all costs, with the exception of the Native American Veteran Housing Loan Program, of VA's direct and guaranteed loans, as well as the administrative expenses to carry out these programs, which may be transferred to and merged with the general operating expenses appropriation.

VA loan guaranties are made to service members, veterans, reservists and unremarried surviving spouses for the purchase of homes, condominiums, manufactured homes and for refinancing loans. VA guarantees part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a downpayment if the lender agrees. VA requires that a downpayment be made for a manufactured home. With a VA guaranty, the lender is protected against loss up to the amount of the guaranty if the borrower fails to repay the loan.

COMMITTEE RECOMMENDATION

The Committee recommends such sums as may be necessary for funding subsidy payments, estimated to total $437,522,000, and $168,207,000 for administrative expenses. The administrative expenses may be transferred to the `General operating expenses' account. Bill language limits gross obligations for direct loans for specially adapted housing to $300,000.

EDUCATION LOAN FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

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                         Programaccount Administrative expenses 

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Appropriations, 2002             $1,000                 $64,000 

Budget estimate, 2003             1,000                  70,000 

Committee recommendation          1,000                  70,000 

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PROGRAM DESCRIPTION

This appropriation covers the cost of direct loans for eligible dependents and, in addition, it includes administrative expenses necessary to carry out the direct loan program. The administrative funds may be transferred to and merged with the appropriation for the general operating expenses to cover the common overhead expenses.

COMMITTEE RECOMMENDATION

The Committee recommends $1,000 for funding subsidy program costs and $70,000 for administrative expenses. The administrative expenses may be transferred to and merged with the `General operating expenses' account. Bill language is included limiting program direct loans to $3,400.

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

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                         Programaccount Administrative expenses 

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Appropriations, 2002            $72,000                $274,000 

Budget estimate, 2003            55,000                 289,000 

Committee recommendation         55,000                 289,000 

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