Statement of Administration Policy: H.R. 5299 - Veterans Compensation Cost-of-Livinq Adjustments and Gramm-Rudman-Hollings Exemptions

(REVISION)
(House)

Unless the provisions of H.R. 5299 which exempt a number of VA programs from Gramm-Rudman-Hollings sequester orders are deleted, the President's Senior Advisors will recommend disapproval of this bill. The Administration favors an exemption only for two self-financed programs — the Canteen Service Revolving Fund and the Special Therapeutic and Rehabilitation Activities Fund.

The Administration favors the same cost-of-living adjustment (COLA) for VA compensation and Dependency and Indemnity Compensation beneficiaries as will be given to social security beneficiaries effective December 1986. H.R. 5299 contains a higher COLA than is currently estimated for social security. The Administration will work to amend the bill appropriately in the Senate.