Statement of Administration Policy: H.R. 4368 - National Cemetery System and VA Home Loan Amendments

(SENT 6/8/92)
(House)
(Harris (D) AL)

The Administration opposes enactment of H.R. 4368. The bill would:

—   Extend eligibility for burial in a national cemetery to certain persons whose military service does not include actual active duty. Extension of veterans' benefits to individuals who are not now defined as veterans is an unwarranted broadening of the definition of veteran contained in current law. It would hurt veterans by making it more difficult for them to gain access to burial in national cemeteries operated by the Department of Veterans Affairs (VA), where space is limited.

—   Reduce from 1.25 percent to 0.5 percent the fee paid by veterans when they refinance their existing VA guaranteed home loans. The cost to the taxpayers of operating the loan program and paying claims on the loans resulting in foreclosure is significant. The Administration believes that it is just and equitable that veterans who take advantage of the interest rate reduction refinancing program pay the same fee as all other veterans obtaining guaranteed loans. This reduction would result in an increase in direct spending totaling $32.5 million over the next five fiscal years, without any offsetting savings.

Scoring for the Purpose of Pay-As-You-Go

The reduced refinancing loan fee provision of H.R. 4368 would increase direct spending. Therefore, it is subject to the pay- as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990 (OBRA). No offsets to the direct spending increases are provided in the bill. A budget point of order applies in both the House and the Senate against any bill that is not fully offset under CBO scoring. If, contrary to the Administration's recommendation, the House waives any such point of order that applies against H.R. 4368, the effects of this legislation would be included in a look back pay-as-you-go sequester report at the end of the congressional session.

OMB's preliminary scoring estimates of this bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If H.R. 4368 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending will be issued in monthly reports transmitted to the Congress.

Fiscal Years
(outlays in millions)