Needed

spending

Proposed

spending

$33.6 b

$29.8 b

(Discretionary in billions, FY2005)

Veterans Benefits

The Iraq War is creating more veterans, yet the veterans benefits system continues to

be under-funded. The Bush Administration’s proposed spending on discretionary

veterans benefits for fiscal year 2005 amounts to $29.8 billion, $3.8 billion below the

Congressional budget resolution passed by the House this month includes $31 billion

in discretionary spending for veterans benefits, a funding gap of $2.6 billion would

remain.

In contrast, war spending for Iraq thus far totals

more than $150 billion. The cost of the war to

Veterans’ medical care comprises the vast majority

veterans health-care facilities would need

$17.7 million more than has been proposed to

Nationally, 170,000 reservists and National Guard

troops are currently active, primarily due to the

war in Iraq, and many of them will become eligible

for veterans benefits. The war has already led to

more than 4,000 soldiers wounded in action. A

significant number of these soldiers will be

permanently disabled.

Veterans benefits under-funded in

Maine while war costs add up

May 2004

The National Priorities Project creates reliable estimates using data culled from various sources, primarily

the federal government. Much of the raw data are available through NPP’s interactive database,

Veterans, total 145,440

Veterans, disabled (service-connected) 18,490

Wounded in action during Iraq War as of May 8 36

Reservists and National Guard troops active 1,509

Consequences of funding gap for veterans

to reduce the backlog, the Bush Administration refused enrollment to one category of

veterans as of January 2003. (Veterans are assigned to categories according to when

they served, their disabilities and income.)

receiving any compensation. While the Iraq War will result in thousands more

proposal for FY 2005 would reduce the number of staff responsible for processing

these claims.

Authorization Bill included an attempt by members of the House leadership to

redefine eligibility for veterans’ disability compensation. They wanted to replace the

“line of duty” standard for eligibility with a strict “performance of duty” standard,

putting the burden on the veteran to prove that his/her disability was caused by

military duties. While this move was rebuffed, the bill established a commission to

study eligibility.

down cost-of-living increases on veterans’ compensation was put into place to help

balance the federal budget. That legislation is scheduled to expire. The

Administration now proposes to make this practice permanent, though it erodes the

value of service-connected disability compensation over time and results in lower

living standards.

by a number of veterans’ organizations including the American Veterans, Disabled American Veterans and Paralyzed

Veterans of America and Veterans of Foreign Wars. Amounts refer to the discretionary portion of veterans benefits

spending. Discretionary spending is debated and decided by Congress each year after receiving a proposal from the

Administration. Mandatory funding, which includes veterans’ pensions and disability compensation, is authorized by

eligibility rules, which then determine the level of funding. 2The total Iraq War spending assumes Congress will pass the

breakdowns are calculated based on each state’s share of veterans medical care spending, according to the Department of

Veterans Affairs (VA) and the $3.9 billion funding gap. 4Data from the VA and Department of Defense. State figures for

one-third of conflict Gulf War veterans, more than 200,000, have filed a claim with the Veterans Benefits Administration.