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                  CONGRESSIONAL BUDGET OFFICE
                             COST ESTIMATE

                                                                October 27, 2017


                                  H.R. 3562
 A bill to amend title 38, United States Code, to authorize the Secretary of
   Veterans Affairs to furnish assistance for adaptations of residences of
   veterans in rehabilitation programs under chapter 31 of such title, and
                              for other purposes

           As ordered reported by the House Committee on Veterans' Affairs
                               on October 12, 2017


Through the Vocational Rehabilitation and Employment program, the Department of
Veterans Affairs (VA) provides assistance to veterans whose disabilities prevent them
from working. That assistance can include the cost of modifying veterans' homes to
enable them to live independently. The cost of those benefits are paid from mandatory
appropriations.
H.R. 3562 would cap payments for housing modifications at $79,874 per beneficiary in
2018; that amount would be adjusted annually for inflation. However, the bill would
allow VA to waive the cap if higher amounts are necessary. The bill also would transfer
the management of those benefits to a related program that pays for housing adaptions for
severely disabled veterans.

On the basis of information from VA regarding how it would implement the bill, CBO
expects that very few veterans would be affected. Over the last four years, an average of
eight veterans a year have received housing adaptations under the vocational
rehabilitation program in amounts that would exceed the limit in H.R 3562. In addition,
the department indicates that it would likely waive enforcement of the cap in most cases.

Pay-as-you-go procedures apply to H.R. 3562 because enacting the bill would decrease
direct spending. However, those decreases in direct spending would be insignificant,
CBO estimates. Enacting the bill would not affect revenues.

CBO estimates that enacting H.R. 3562 would not increase net direct spending or on-
budget deficits in any of the four consecutive 10-year periods beginning in 2028.
H.R. 3562 contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is David Newman. The estimate was approved by
H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis.

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