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B-323157 1 (2012-05-21)

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j              A                                                      Comptroller General
        Accountability * Integrity* Reliability                        of the United States
United States Government Accountability Office
Washington, DC 20548


          B-323157


          May 21, 2012

          The Honorable Patty Murray
          Chairman
          The Honorable Richard Burr
          Ranking Member
          Committee on Veterans' Affairs
          United States Senate

          The Honorable Jeff Miller
          Chairman
          The Honorable Bob Filner
          Ranking Member
          Committee on Veterans' Affairs
          House of Representatives

          Subject: The Budget Control Act and the Department of Veterans Affairs' Programs

          This responds to the request for a legal opinion on the effect of the Budget Control
          Act1 on the Department of Veterans Affairs (VA). Letter from Chairman, Committee
          on Veterans' Affairs, United States Senate, to Comptroller General (Feb. 16, 2012)
          (Request Letter). The Budget Control Act, which amended the Balanced Budget
          and Emergency Deficit Control Act of 1985 (BBEDCA),2 provides that the Office of
          Management and Budget (OMB) shall calculate, and the President shall order, a
          sequestration of discretionary and direct spending on January 2, 2013, to achieve
          the necessary deficit reduction for fiscal year 2013.3 The request arises because of
          an apparent conflict between two provisions of BBEDCA. Section 255(b) exempts
          all programs administered by the Department of Veterans Affairs from sequestration.
          However, section 256(e) provides for a reduction in one VA account, the veterans'


          1 Pub. L. No. 112-25, 125 Stat. 240 (Aug. 2, 2011).

          2 Pub. L. No. 99-177, title II, 99 Stat. 1037 (Dec. 12, 1985). BBEDCA, as amended,
          is classified at 2 U.S.C. §§ 900-907d.


3 Pub. L. No. 112-25, § 302.

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