107th Congress

VA/HUD Appropriations Act, Fiscal Year 2003

H.R. 5605/S. 2797

Background

The fiscal year (FY) 2003 spending bill for the U.S. Department of Veterans Affairs (VA), the U.S. Department of Housing and Urban Development (HUD), and 20 independent agencies provides direct funding for the National Institute of Environmental Health Sciences (NIEHS). Prior to FY 2001, NIEHS received funding for these activities through a transfer from the Hazardous Substance Superfund account within the Environmental Protection Agency (EPA) budget via an interagency agreement. Currently, NIEHS has a separate appropriation in this measure in order to carry out legislatively mandated research and worker training activities set forth in the Comprehensive Environmental Response, Compensation, and Liability Act. The Senate level for NIEHS was $76,074,000, and the House level was $84,074,000. The accompanying Senate Report language encouraged active participation from NIH in the Administration's nanotechnology interagency research initiative. The House Report language supported the children's health research centers program jointly funded by the EPA and NIEHS and encouraged the continuation of this partnership.

VA/HUD, along with all other non-defense-related agencies, has been provided with funding for FY 2003 through a series of continuing resolutions, the fifth and most recent of which provides funding through January 11, 2003, at the current rate of spending for FY 2002.

Provisions of the Legislation/Impact on NIH

H.R. 5605

• NIEHS: "For necessary expenses for the National Institute of Environmental Health Sciences in carrying out activities set forth in section 311(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and section 126(g) of the Superfund Amendments and Reauthorization Act of 1986, $84,074,000."
• Prosthetic Research: "For necessary expenses in carrying out programs of medical and prosthetic research and development as authorized by 38 U.S.C. Chapter 73, to remain available until September 30, 2004, $405,000,000, plus reimbursements: provided, that of the funds available under this heading, $5,000,000 shall be transferred to medical care for research oversight activities."

House Report 107-740

• Hepatitis C: The Committee is concerned about the prevalence of veterans with hepatitis C. The Committee, therefore, is aware of the August 2002 NIH Management of Hepatitis C Consensus Conference final statement, which presents new opportunities for the treatment of individuals with hepatitis C and complicating co-morbid conditions and describes the need for expanded patient education regarding hepatitis C. VA is directed to do more screening and testing for hepatitis C for certain vulnerable veteran populations.
• Amputation Research: The Committee wants VA to consider using collagen- based therapies that reduce the need for amputations. The Committee is aware of studies that have found that these therapies are successful.
• Antibiotic Resistance: The Committee recognizes the work done by VA to combat antibiotic resistant infections, particularly its outstanding vaccination against pneumonia program. The Committee directs the Secretary to be prepared to testify to the Committee about antibiotic resistance during the FY 2004 budget hearing on steps taken by the Department to combat this growing public health crisis.
• NIEHS Research Centers: The Committee is supportive of the children's health research centers program jointly funded by EPA and NIEHS and looks forward to the continuation of this partnership.
• Medical and Prosthetic Research: The recommended funding level is $405,000,000, which includes medical, rehabilitative, and health services research. The Committee also observed that in addition to these directly appropriated funds there are other budgetary resources, including grants from NIH, that are tapped for this account.

S. 2797

• Grantee Indirect Costs: "None of the funds appropriated in this Act may be used to implement any cap on reimbursements to grantees for indirect costs, except as published in Office of Management and Budget Circular A-21."
• NIEHS: "For necessary expenses for the National Institute of Environmental Health Sciences in carrying out activities set forth in section 311(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and section 126(g) of the Superfund Amendments and Reauthorization Act of 1986, $76,074,000."
• Prosthetic Research: "For necessary expenses in carrying out programs of medical and prosthetic research and development as authorized by 38 U.S.C. chapter 73, to remain available until September 30, 2004, $400,000,000 plus reimbursements."

Senate Report 107-222

• NIEHS: NIEHS was authorized to conduct multidisciplinary research and training activities associated with the Nation's Hazardous Substance Superfund program, and to conduct training and education of workers who are or may be engaged in activities related to hazardous waste removal or containment or emergency response. The Committee recommended $76,074,000 for NIEHS, which is $4,654,000 below the FY 2002 enacted level. The recommendation includes $27,137,520 for worker training grants and $48,936,480 for research.
• Nanotechnology: The Committee supports the Administration's interagency initiatives in nanoscience and engineering and information technology research. In the area of nanotechnology, the National Academy of Sciences has made a number of recommendations that would strengthen the interagency National Nanotechnology Initiative (NNI). The Committee urges the Office of Science and Technology Policy (OSTP) to give serious consideration to the Academy's recommendations. The Committee is particularly supportive of the recommendation for an independent advisory council modeled on the one used for the information technology initiative. The Committee supports the recommendation calling for increased interagency investments in areas related to nanotechnology and the life sciences. It is already apparent that applications of nanotechnology can have significant impacts in disease diagnosis and treatment. Accordingly, the Committee calls on OSTP to ensure the active participation of NIH in this interagency research initiative.
• Amputation Research: The Committee wants VA to consider using collagen- based therapies that reduce the need for amputations. The Committee is aware of studies that have found that these therapies are successful.
• Medical and Prosthetic Research: "The Committee recommends $400,000,000 for medical and prosthetic research, an increase of $5,627,000 above the budget request and $29,000,000 above the fiscal year 2002 enacted level."

Status and Outlook

The VA/HUD Appropriations bills stalled behind the controversial Labor, Health and Human Services, and Education spending bill and never made it to the floor of either chamber. The House Appropriations Committee approved H.R. 5605 (House Report 107-740) on October 9, 2002. The Senate Appropriations Committee approved S. 2797 (Senate Report 107-222) on July 25, 2002. The bill is likely to be incorporated into an "omnibus" spending package early in the 108th Congress. In the meantime, the programs within VA/HUD are being funded at FY 2002 levels under a stopgap spending bill (P.L. 107-294).

For information on other FY 2003 appropriations legislation, see the articles entitled:

• "21st Century Department of Justice Appropriations Authorization Act"
• "Department of Defense Appropriations, Fiscal Year 2003"
• "Agriculture Appropriations Act, Fiscal Year 2003"
• "Appropriations for the National Institutes of Health, Fiscal Year 2003"
• "Treasury and General Government Appropriations Act, Fiscal Year 2003"