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j   Congressional Budget Office
       Cost Estimate


March 3, 2020


By Fiscal Year, Millions of Dollars 2020              2020-2025             2020-2030
Direct Spending (Outlays)              0                    0                     0


Revenues
Increase or Decrease (-)
in the Deficit


0

0


0

0


0

0


S. 850 would permanently extend the authority for the Department of Veterans Affairs (VA)
to transport veterans who require assistance traveling-and their family members or
attendants-to VA facilities for medical care, educational counseling, and vocational
rehabilitation. Under current law, that authority expires at the end of fiscal year 2020. In
2019, VA spent $40 million on drivers and vehicles to transport veterans to 95 of the
department's locations. After adjusting for inflation and the expected 30 percent increase in
the number of locations where transportation would be provided, CBO estimates that
extending the program would cost $330 million over the 2021-2025 period. However, based
on information from the department, CBO expects that those transportation services would
partially supplant the demand for other transportation services that VA provides under
service contracts. Because the department expects that its costs would be lower than the
contracts, that substitution would reduce spending for those services by $326 million over
the same period. On net, CBO estimates that implementing this section would cost $4 million
over the 2021-2025 period, subject to appropriations consistent with the bill's provisions.

The bill also would authorize the appropriation of $3 million in 2021 for grants to veteran
service organizations that transport veterans in rural areas to and from VA facilities. VA
disbursed $1.8 million in grants to such organizations in 2018. CBO estimates implementing
that authority would cost $3 million over the 2020-2025 period, subject to the appropriation
of the specified amount.



                 See also CBO's Cost Estimates Explained, www cbo.gov/pubicationi54437;
  How CBO Prepares Cost Estimates, www.cbo.gov/publicationi53519; and Glossary, www cbo~govipubication/42904.

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