Statement of Administration Policy: H.R. 3666 - Departments of Veterans Affairs, Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1997

(House Floor)
(Sponsors: Livingston (R), Louisiana; Lewis (R), California)

This Statement of Administration Policy provides the Administration's views on H.R. 3666, the Veterans Affairs, Housing and Urban Development, and Independent Agencies Appropriations Bill, FY 1997, as reported by the House Appropriations Committee. For the reasons discussed below, the Administration strongly opposes the legislation in its current form.

The Administration has previously communicated its strong objection to the overall inadequate discretionary fending level assumed in the House- and Senate-passed Budget Resolutions. While the Administration appreciates the Committee's efforts in removing the 1.322 percent across-the-board cut, the Committee bill would still reduce discretionary budget authority by $2.9 billion (four percent) from the President's request. Funding is reduced for the environment, veterans, National Service, housing, Community Development Financial Institutions. NASA, and NSF.

Environmental Protection Agency (EPA)

The Administration appreciates the Committee's efforts in keeping the bill free of the numerous legislative riders that were included in last year's bill but continues to have concerns about report language that would restrict EPA's ability to perform its mission. The Administration is also concerned about the Committee's overall $479 million, or 6.8-percent, reduction to the President's request for EPA. This reduction would significantly reduce key activities to protect drinking water, enforce environmental laws, and promote air and water pollution control efforts.

The Administration urges the House to restore the $100 million, or 18-percent, reduction to the request for the Drinking Water State Revolving Fund contained in the Committee bill. This cut would impair implementation of the Safe Drinking Water reauthorization bill now pending and would contradict the bipartisan consensus that drinking water protection should be strengthened.

The House is urged to restore $50 million to help improve the water quality in Boston Harbor and reduce the number of beach closings. This funding request continues to fulfill a bipartisan Federal commitment to Boston because of the city's special needs and high user charges.

The Administration is deeply concerned about the $335 million, or 10-percent, reduction in EPA's vital Operating Programs. Key among these reductions are the elimination of funding that would spur development of new technologies to protect public health, reduce pollution control costs, and create new jobs and cuts which would hinder EPA's ability to enforce environmental laws adequately, taking environmental cops off the beat.

In addition, the Committee would prevent expansion of the Toxic Release Inventory (TRI) to include data on toxic use that is needed to determine exposure risks and give the public information about which the communities have a right to know. The reduction to TRI is particularly objectionable because the Committee uses a funding reduction in an attempt to accomplish what was included in one of last year's discredited legislative riders.

The Committee's targeted reductions to international programs, the Environmental Technology Initiative (which would be eliminated), and to programs associated with NAFTA, would be harmful to the Administration's environmental commitments and priorities abroad. The bill would also seriously reduce funding for climate change activities and eliminate funding for the innovative GLOBE program.

The Administration appreciates the Committee's restoration of Justice Department authority to hind its Superfund enforcement efforts. But it remains concerned about how, and to what extent, the cleanups are funded. The Committee reduced funding for Superfund by $55 million, which will reduce the number of cleanups.

The Committee indicated that it will provide additional funding - but only through a future appropriation, and only in the event that Congress reauthorizes Superfund. 'The Senate sponsor of the authorization bill has indicated that the chances of passage are low. Thus, this purported "contingency fund" amounts to nothing more than a promise to appropriate money in the future. The Administration continues to strongly oppose the intended use of such additional funding. Polluters should pay for cleanups, as they do under the current Superfund program. Taxpayers should not.

Department of Veterans Affairs (VA)

The Administration is pleased that the Committee has restored funding for VA medical care, VA home loans, and funding for a new cemetery in Dallas/Fort Worth, Texas. However, funding for the Veterans Benefits Administration and other administrative support would still be $20 million below the request. These reductions could cause delays in the processing of disability, educational, survivor's, and other veterans benefits. The Committee bill would also provide no funding for a new hospital that is needed to improve services to veterans in the Brevard County, Honda, area.

Finally, the Committee has retained objectionable language that would limit the travel and personnel expenses of the Office of the Secretary. This restriction would prevent the Centers for Women and Minority Veterans from being able to perform their functions as mandated by Congress and undermine the Secretary's ability to manage and lead the second largest department in the government.

Department of Housing and Urban Development (HUD)

Since FY 1995, HUD appropriations have been cut more deeply than those of other cabinet agencies. HUD's discretionary budget authority was reduced by 24 percent in the FY 1995 rescission bill, from $26.3 billion (the FY 1994 enacted level) to $20.1 billion (the FY 1995 post-rescission level). In FY 1996, HUD's budget authority was reduced again to $19.5 billion. In FY 1997, the Committee would once again reduce HUD program levels (after adjusting for one-time savings). The Administration is strongly opposed to the further reductions in funding levels for the Department.

While the Administration appreciates the Committee amendments that increase certain programs, the Committee bill would still: provide virtually no new incremental rental certificates for households in dire need for the third year in a row; institute a three-month delay in reissuing housing certificates to families most in need; reduce critical funding to States and communities for economic development through the Community Development Block Grant program and Homeless Assistance Grants by almost $500 million; and, cut funding for the demolition of the worst public housing projects - a successful effort with bipartisan support by $100 million.

Corporation for National and Community Service

The Administration is strongly opposed to the 34-percent reduction to the President's request for the Corporation for National and Community Service, one of the Administration's highest priorities. At the level included in the Committee bill, approximately 6,000 young people would not have the opportunity to serve their communities through AmeriCorps and earn an education award to help pay for college or other post-secondary education. In addition, almost 50,000 school-age youth would lose the opportunity to learn about service in their communities through the Learn and Serve program.

Community Development Financial Institutions (CDFI)

The Administration strongly urges the House to fund the Community Development Financial Institutions program at the requested level. In response to the initial competition, the CDFI program received applications nearly 10 times the amount of funds available. The Committee's decision to reduce the request by $80 million would reduce the fund's ability to leverage additional investments, loans, and financial services in the country's most distressed communities.

National Aeronautics and Space Administration (NASA)

The Committee bill would cut the President's request for NASA by $L1 billion. In particular, the Administration is concerned that the bill would cut the Mission to Planet Earth program by over $200 million and would provide no up-front funding for the New Millennium Initiative and the Tracking and Data Relay Satellite Replenishment program.

The Administration strongly objects to report language that would direct the elimination of funding for NASA's and EPA's contributions to the Global Learning and Observation to Benefit the Environment (GLOBE) program. GLOBE teaches young students how to make climate-related measurements and share this information with other students, teachers, and scientists over the Internet. These reductions would seriously impact thousands of teachers and students in 2,500 U.S. schools and in 35 other countries who have invested their resources, time, and energy in this valuable program. Both NASA and EPA believe that the GLOBE program provides low cost and scientifically valuable data.

The Administration would oppose any amendment that would seek to terminate or significantly reduce funding for the space station. Such action would jeopardize over 30,000 thousand space station-related jobs located in Florida, Texas, California, and Alabama, at would also significantly undermine the critical partnerships that the U.S. has developed with Russia, Canada, Europe, and Japan on this important, cooperative project.

Council on Environmental Quality (CEQ)

The Administration appreciates the increase provided for CEQ but urges support for the foil request for this key agency with, responsibilities for coordinating policy and advising the President. Even at the President's requested level, funding and personnel levels for CEQ would remain below that of the previous Administration.

In addition to the concerns discussed above, the Administration has additional concerns with the bill that were detailed in a June 13th letter to the House Appropriations Committee.