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STATEMENT OF SENATOR DANIEL K. AKAKA BEFORE THE SENATE VETERANS' AFFAIRS COMMITTEE HEARING ON PENDING LEGISLATION

July 25, 1997

Mr. Chairman, I am pleased to be here and would like to welcome our witnesses to today's hearing. I am delighted to extend a warm welcome to the senior Senator from Hawaii, Senator Inouye, who will testify before our Committee this morning. Senator Inouye has been a champion of our World War II Filipino veterans for many years, and I am pleased that the Committee has included his legislation on the agenda. I would also like to recognize two members from the House of Representatives who are with us. Representative Filner and Representative Gilman have also been staunch supporters of our World War II Filipino veterans. I am pleased that these Members of Congress are able to be with us today to share with this Committee the importance of providing benefits to World War II Filipino veterans.

Few Americans realize the pivotal role Filipinos played during World War II. Thousands of Filipinos served with United States military personnel in the Pacific during World War II. Of the nearly 142,000 Filipino veterans who fought during World War II, only some 70,000 survivors remain today. From the Japanese landing at Lingayen to the liberation of the Philippines in 1944, thousands of Filipino soldiers gave the ultimate sacrifice to defend the Pacific. I am sure that we will hear more of their heroic contributions from our witnesses here today.

Let me take this opportunity to also welcome Dr. Thomas Garthwaite, Deputy Under Secretary for Health, Mr. Stephens Lemons, Acting Under Secretary for Benefits, Mr. John Thompson, and Mr. Neal Lawson from the Department of Veterans Affairs, and representatives from the Veterans Service Organizations.

Mr. Chairman, there are three bills on the agenda that I would like to speak on briefly. S. 309, which I introduced, would allow VA to waive the parking fee requirement for joint venture parking facilities. Under current law, the Department of Veterans Affairs (VA) is required to charge health care employees and those having business at a VA health care facility a parking fee, if the parking facilities were funded through the special revolving fund account. There are no exemptions to this fee requirement, particularly with respect to joint use facilities. This inflexibility has result in a inequitable and inefficient regulation.

The current parking facility at Tripler Army Medical Center is a fine example of the inefficiencies that result in requiring parking fees for joint use facilities. Given the limited land available in Hawaii, the VA established an agreement with the Department of the Army to provide health care services and benefits to veterans on this military installation. Because VA facilities would displace Department of Defense employees and visitors parking, VA agreed to construct a replacement parking facility to accommodate both DOD and VA employees and visitors.

However, not everyone who uses the facility will be required to pay a parking fee. VA personnel who work for the Veterans Benefits Administration, those veterans receiving treatment at a VA medical facility, those transporting a patient to a VA medical facility, and volunteers are not required to pay a parking fee. In addition, Department of Defense personnel, patients, and visitors are not required to pay for parking at a treatment facility. Therefore, only those VA employees who provide health care services to our veterans and those who have business with the Veterans Health Care Administration would be required to pay for parking. It seems inherently unfair to require those that provide health care services to our veterans to pay for parking while essentially exempting everyone else.

It would not be cost-effective to require such a limited group of people to pay for parking, while the majority of personnel and visitors are entitled to free parking. The cost to administer the parking fee will far outweigh the collections received. According to an independent study, the VA found that there were no comparable commercial parking garages within a two-mile radius of the facility and has, therefore, determined that the Department will have to charge $7.50 a month, $5 daily or 50 cents an hour. Waiving the fee for VA health care providers and those who have business at the facility will not adversely impact the revolving parking fund, but it will enable those work and visit the DOD/VA facility to be fairly treated.

Mr. Chairman, in 1992, the Committee passed a bill which enabled Native American veterans who live on trust lands to receive housing loan benefits that had been enjoyed by other American veterans. The five-year pilot program allowed the VA to provide direct home loan to Native American veterans residing on trust lands. Since passage of this landmark legislation, the VA has entered in Memorandums of Understanding (MOUs) with 46 federally recognized Indian Tribes, Native Hawaiians and 4 Pacific Islander groups. The first loan for this program was made in 1994, since that time over 150 Native American veterans have been able to achieve homeownership, and none of the loans approved by the VA have been foreclosed.

The Native American Home Loan Program was established with a $5 million appropriation, to support an estimated $58.4 million in direct loans. As of today, the cost of the existing loans total approximately $16 million. Unfortunately, the authority to issue new loans under this successful program will cease on September 20, 1997. This would be tragic and devastating to a number of Native American veterans who want to participate in this program.

Mr. Chairman, I understand that the VA will testify today in support of a two-year extension. I find this request to be wholly inadequate and unresponsive in addressing the basic underlying reason for this program. Native American veterans residing on trust lands have no other alternative to this current program, a permanent authorization will ensure that Native American veterans residing on trust lands are afforded the same benefits enjoyed by other American veterans.

The VA will testify that they support a two-year extension to demonstrate to private lenders that there is a market for private mortgages on trust lands. From VA's own experiences, VA will testify that these loans require "time-consuming groundwork". It took VA nearly two years after the program was established to make its first loan. How can VA reasonably expect a private lender to decide to participate in such a program within two years. It will take many years to demonstrate to private lenders that this is a viable market, and even then developing Memorandums of Understanding with the tribes and the Bureau of Indian Affairs will take additional time. Meanwhile, if the program is extended for only two, or even three years, Native American veterans residing on trust lands will once again face the prospect of being denied access to home loans. The VA needs to recognize that this is the only program available for Native Americans who live on trust land to acquire a home for themselves and their families.

Mr. Chairman, VA should work with the Committee to determine a fair and reasonable budget estimate to ensure that the program will continue for more than two or three years. The original appropriation of $5 million was estimated to support direct loans totaling $58.4 million. To date, the current loans approximate $16 million of this budget estimate, clearly the current appropriation can sustain the program for more than two or three years. I believe that my colleagues and I can work together to find funding to support an additional appropriation should the need arise, but to limit the program to two years because of tenuous funding considerations will mean that we treat Native American veterans who reside on trust lands with less consideration than other veterans who enjoy access to VA home loan programs. Permanent authorization of the Native American Direct Housing Loan program will ensure that Native American veterans are provided equal access to services and benefits afforded to other veterans.

Mr. Chairman, from 1898 to 1946, the Philippines were a U.S. possession. Although the Philippine Independence Act of 1934 established a ten year timetable for independence and bestowed the Commonwealth of the Philippines with certain powers over internal affairs, its full independence was delayed until 1946 because of the Japanese occupation from 1942 to 1945.

Between 1934 and 1946, the United States retained certain sovereign powers over the Philippines. President Roosevelt invoked an executive order on July 26, 1941, which ordered the Philippine Commonwealth Army into the service of the U.S. Army Forces of the Far East under the command of Lieutenant General Douglas MacArthur.

Thousands of Filipinos served with United States military personnel in the Pacific during World War II. Of the nearly 142,000 Filipino veterans who fought during World War II, fewer than 70,000 survivors remain today. From the Japanese landing to the liberation of the Philippines in 1944, Filipino soldiers were asked to fight with American soldiers to repel Japanese forces. Filipino forces marched alongside Americans in the "Death March" after the surrender at Bataan and Corregidor. Thousands of Filipinos continued to resist Japanese occupation and continued to assist the United States through intelligence gathering throughout the war.

In return for their faithful service, Filipino veterans were granted benefits amounting to only fifty cents on the dollar compared to other veterans. President Truman objected to the restrictions on benefits for the Commonwealth Army veterans. He recognized the service Filipino soldiers gave to our nation. The Filipino veterans who were called into service by the United States served just as honorably and faithfully as American veterans and deserve to be treated fairly and with dignity.

Mr. Chairman, thank you for the opportunity to express my concerns on these particular bills pending before the Committee. I look forward to working with you and the members of this Committee to ensure that our country maintains its commitment to our nation's veterans.

Thank you, Mr. Chairman.


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