Veterans Benefits: An Overview

Veterans Benefits: An Overview
Carol D. Davis
Knowledge Services Group
Sidath Viranga Panangala and Christine Scott
Domestic Social Policy Division
Summary
The Department of Veterans Affairs (VA) offers a wide range of benefits and
services to eligible veterans, members of their families, and survivors of deceased
veterans. VA programs include disability compensation and pensions, readjustment
benefits, and health care programs. The VA also provides life insurance, burial benefits,
housing and other loan guaranty programs, and special counseling and outreach
programs. While eligibility for specific benefits varies, veterans generally must meet
requirements related to discharge type and length of active duty military service. This
report provides an overview of major VA benefits and the VA budget. It will be
updated as events warrant.
Introduction
The provision of various post-service benefits to military veterans dates back to the
period before the Revolutionary War. Since 1789, Congress has expanded the range of
benefits available to veterans through the passage of a multitude of laws. This report
highlights the major benefits offered by the Department of Veterans Affairs (VA) and
provides further references where appropriate. It concludes with a summary of the VA
budget authority and the number of beneficiaries from FY1980 through FY2007.
Veterans Benefits
Disability Benefit Programs. Disability compensation is paid to veterans who
have disabilities from injuries and illnesses that were incurred during, or aggravated by,
active duty military service.¹ The individual monthly disability compensation payment
is determined by the veteran’s disability rating, whether the veteran has a spouse or other

¹ For more information on eligibility for disability benefit programs for veterans, see CRS Report
RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit Programs, and CRS Report
RL33323, Veterans Affairs: Benefits for Service-Connected Disabilities, both by Douglas Reid
Weimer.

dependents, and whether the veteran has a disability entitling him or her to special
monthly compensation (SMC) because of the loss, or loss of the use of, certain
extremities or organs as a result of active duty military service. Disability ratings
generally range from 10% to 100% in 10% intervals and are based on the presumed
average impact of the disability on employment or earnings capacity; however, some
disabilities are given a zero-percent rating.² Disabled veterans may also be eligible for
vocational rehabilitation, grants for adaptive housing and automobiles, and a clothing
allowance. Dependency and indemnity compensation (DIC) is paid to the surviving
dependents of veterans who died as a result of service-connected causes; certain totally
(100%) disabled veterans who died as the result of nonservice-connected causes; and
servicemembers who died on active duty. In FY2007, about 2.8 million disabled veterans
and 333,000 survivors received $33.6 billion in compensation payments.³
Veterans’ Pensions. Veterans’ pensions⁴ are means-tested cash benefits that are
paid to veterans who served during a period of war and have become permanently and
totally disabled from nonservice-connected causes or are elderly (over age 65), and to the
survivors of such veterans. Veterans must also meet income or net worth criteria to be
eligible for VA pensions. Under the current pension program (also known as the⁵
Improved Disability Pension program), benefits are based on family size, and the
pensions provide a floor of income. Almost all sources of income, including Social
Security benefits, are subtracted from the basic pension benefit. Although Supplemental
Security Income (SSI) payments are not subtracted from the basic VA pension benefit, all
veterans’ benefits (including pension benefits) are counted as income for the SSI program.
In FY2007, 325,378 veterans and 198,047 survivors received $3.7 billion in veterans’⁶
pension payments.
Readjustment Benefits. Several VA programs support readjustment, or
education, job training, and vocational rehabilitation, benefits for veterans and military
personnel who meet certain eligibility criteria. The largest of these programs is the
Montgomery GI Bill (MGIB). The MGIB provides educational assistance to persons
who, as members of the Armed Forces or the Selected Reserve, elected to participate in
the program since June 30, 1985. The purposes of the MGIB are to aid servicemembers
leaving the Armed Forces in their readjustment to civilian life, to provide an incentive for
the recruitment and retention of qualified personnel in the Armed Forces, and to develop
a more educated and productive workforce.

² Links to current and historical monthly benefit rate tables for disability compensation can be
found on the VA Website at [http://www.vba.va.gov/bln/21/Rates/].
³ Department of Veterans Affairs, FY2009 Budget Submission, Benefits and Burial Programs and
Departmental Administration, Volume 3 of 4, p. 2A-3, available at [http://www.va.gov/budget/
summa ry/2009/V olume _3-Benefits_and_Burial_and_Dept_Admi n.pdf].
⁴ For more information on veterans’ pensions, see CRS Report RS22804, Veterans’ Benefits:
Pension Benefit Programs, by Carol D. Davis and Christine Scott.
⁵ Links to current and historical monthly benefit rate tables for VA pensions can be found on the
VA Website at [http://www.vba.va.gov/bln/21/Rates/].
⁶ Department of Veterans Affairs, FY2009 Budget Submission, Benefits and Burial Programs and
Departmental Administration, Volume 3 of 4, p. 2A-3, available at [http://www.va.gov/budget/
summa ry/2009/V olume _3-Benefits_and_Burial_and_Dept_Admi n.pdf].

To participate in the MGIB, active duty military personnel contribute $100 per month
for the first 12 months of enlistment. Eligibility depends on the veteran having made the
required monthly contributions and having met a minimum length of active duty service
requirement, which is determined by the length of the service obligation. Benefit levels
are determined by the type of training sought (institutional, apprenticeship, or on-the-job)
and enrollment status (full-time or part-time). A servicemember earns one month in
MGIB benefits for each month of active duty service, up to a maximum of 36 months.⁷
In FY2007, spending for VA readjustment programs was $3.3 billion (Table 1). In
addition to the benefits and services provided by the VA, the Department of Labor
provides employment counseling and job training for veterans.⁸
Housing and Homeless Benefits. The VA provides housing benefits for
veterans, such as guaranteed and direct loan programs that enable veterans to purchase
homes.⁹ In FY2007, the VA guaranteed 129,261 loans at a cost of $24.2 billion and
provided 1,143 direct loans at a cost of $118.6 million.¹⁰
Several federal programs have been created to aid homeless veterans, whose numbers
were estimated at 154,000 in January 2007. In FY2007, the federal government spent
about $282 million for homeless veterans’ programs, covering such areas as health care,
employment services, and housing.¹¹
Health Benefits. Veterans generally must enroll in the VA health care system to
receive inpatient and outpatient medical care. Eligibility for enrollment is based primarily
on previous military service, disability, and income. VA provides free inpatient and
outpatient medical care to veterans for service-connected conditions and to low-income
veterans for nonservice-connected conditions. For 2008, a veteran with an income of
$28,429 or less with no dependents, or $34,117 or less with one dependent (add $1,909
for each additional dependent), is eligible to receive free medical care. The FY2008
National Defense Authorization Act (P.L. 110-181) extended from two to five years the
eligibility period for enrollment for those veterans who served in a combat theater of
operations after November 11, 1998. Therefore, active duty, National Guard and Reserve
servicemembers returning from Operation Enduring Freedom and Operation Iraqi
Freedom (OEF/OIF) may, after their most recent discharge from active duty, enroll in the
VA health care system for free VA medical care for a period of five years for conditions

⁷ For more information on the Montgomery GI Bill (MGIB) program, see CRS Report RL33281,
Montgomery GI Bill Education Benefits: Analysis of College Prices and Federal Student Aid
Under the Higher Education Act, by Charmaine Mercer. Information on the MGIB monthly
benefit rates can be found at [https://www.gibill.va.gov/GI_Bill_Info/rates.htm].
⁸ For more information on veterans’ programs offered by the Department of Labor, see CRS
Report RS22666, Veterans Benefits: Federal Employment Assistance, by Christine Scott.
⁹ For information on the veterans’ guaranteed housing loan program, see CRS Report RS20533,
VA-Home Loan Guarantee Program: An Overview, by Bruce E. Foote and Meredith Peterson.
¹⁰ Department of Veterans Affairs, FY2009 Budget Submission, Benefits and Burial Programs
and Departmental Administration, Volume 3 of 4, p. 2E-14, available at [http://www.va.gov/
budget/summa ry/2009/V olume _3-Benefits_and_Burial_and_Dept_Admi n.pdf].
¹¹ For more information on homeless veterans’ programs, see CRS Report RL34024, Veterans
and Homelessness, by Libby Perl.

that are, or may be, related to their combat service. Following this initial five-year period,
these veterans may continue their enrollment in the VA health care system, but they may
be subject to applicable copayments for nonservice-connected conditions.¹²
VA provides a comprehensive medical benefits package to all enrolled veterans.
Broadly, this includes preventive care services (e.g., immunizations, physical
examinations, health care assessments, and screening tests); inpatient and outpatient
medical care, surgery, and mental health care, including care for substance abuse;
prescription drugs, over-the-counter drugs, and medical and surgical supplies; and durable
medical equipment and prosthetic and orthotic devices, including eyeglasses and hearing
aids. VA provides this care through 155 medical centers, 135 nursing homes, 717
ambulatory care and community-based outpatient clinics (CBOCs), 45 residential
rehabilitation treatment programs, and 209 Vet Centers (generally these are community-
based, non-medical facilities that offer counseling services). Under certain circumstances,
VA also pays for care provided to veterans by independent providers and practitioners on
a fee basis. Eligible dependents of veterans receive inpatient and outpatient care in the
private sector under the Civilian Health and Medical Program of the Department of
Veterans Affairs (CHAMPVA).¹³ In addition, VA provides grants for the construction
of state-owned veterans’ nursing homes and domiciliary facilities and collaborates with
the Department of Defense (DOD) in sharing health care resources and services.
In general, VA provides nursing home care to veterans with service-connected
conditions that are clinically determined to require nursing home care and to veterans with
service-connected disabilities that are rated 70% or more. The department may also
provide VA nursing home care to other veterans if space and resources are available. In
FY2007, VA health care programs cost $36.2 billion (Table 1). VA medical services¹⁴
were provided to about 5.1 million “unique patients,” resulting in about 811,000
inpatient episodes and 63 million outpatient visits (Table 2).

¹² For more information on veterans’ medical care, see CRS Report RL33993, Veterans’ Health
Care Issues, by Sidath Viranga Panangala.
¹³ For more information on the CHAMPVA program, see CRS Report RS22483, Health Care for
Dependents and Survivors of Veterans, by Sidath Viranga Panangala and Susan Janeczko.
¹⁴ “Unique patients” include individuals other than veterans who are eligible for VA medical care.

Table 1. Budget Authority For Veterans Benefits And Services,
Department of Veterans Affairs, FY1980-FY2007
(millions of dollars)
^Co^m^p^ensa^tioⁿ^Rea^d^justm^e^nt^c^Oth^{er Ben}^e^fi^ts^,^To^t^a^{l B}^udg^et
^Fi^s^c^al^Y^e^ar^a^{nd P}^e^nsioⁿ^a^Ben^e^fi^ts^b^Heal^th^Care^Services^{, and}^d^Autho^r^ity
^Ben^e^fi^ts^Admⁱ^nistra^tioⁿ
^{1980 $11,202}^$2,319^$6,007^$1,024^$20,552
^{1981 12,592}^2,290^6,533^1,044^22,459
^{1982 13,824}^1,939^7,302^1,161^24,225
^{1983 13,431}^1,666^7,980^1,531^24,607
^{1984 14,127}^1,453^8,529^1,525^25,634
^{1985 14,168}^1,138^9,202^1,879^26,387
^{1986 14,427}⁸⁷⁸^9,363^1,563^26,230
^{1987 14,445}⁷⁴¹^9,983^1,436^26,605
^{1988 14,832}⁸⁰⁸^10,345^2,257^28,242
^{1989 15,461}⁶²⁰^11,146^2,118^29,345
^{1990 15,555}⁴⁹⁸^11,696^2,029^29,778
^{1991 16,397}^1,004^12,604^2,519^32,525
^{1992 16,342}⁶³⁵^13,908^2,272^33,158
^{1993 16,969}⁸¹⁴^14,962^2,409^35,155
^{1994 17,526}^1,051^15,974^2,229^36,780
^{1995 17,627}^1,287^16,480^2,073^37,466
^{1996 18,432}^1,345^16,863^1,995^38,635
^{1997 19,599}^1,377^17,337^1,741^40,054
^{1998 20,483}^1,366^18,056^1,782^41,687
^{1999 21,857}^1,175^18,236^1,870^43,138
^{2000 21,568}^1,469^19,871^1,911^44,819
^{2001 23,356}^1,981^21,415^1,913^48,665
^{2002 26,044}^2,135^23,028^2,288^53,495
^{2003 28,949}^2,265^25,836^2,624^59,673
^{2004 29,845}^2,530^28,824^2,626^63,825
^{2005 32,608}^2,556^31,642^2,630^69,436
^{2006 33,898}^3,309^31,511^5,019^73,737
^{2007 38,172}^3,262^36,222^4,357^82,014
^Source:^T^a^bl^{e prepared by}^t^h^{e C}^oⁿ^g^r^e^ssi^on^al^R^e^s^earch^S^e^rvⁱ^{ce (C}^R^S^{) bas}^e^{d on}^dat^a^obt^aiⁿ^e^{d f}^r^om^t^h^e
^Gen^e^r^a^{l A}^d^mⁱⁿⁱ^str^a^tioⁿ^&^Co^o^r^dⁱⁿ^a^tioⁿ^Ser^v^{ice, Of}^fⁱ^{ce o}^f^th^{e B}^u^d^g^{et, Dep}^a^r^t^m^eⁿ^t^o^f^Veter^aⁿ^s^A^f^f^a^ir^s.
^{a. In}^clu^d^es^com^p^en^s^a^tion^an^d^pen^s^ion^s^f^o^{r v}^e^teran^s^an^d^su^r^v^iv^o^r^{s, b}^u^rⁱ^{al o}^b^lig^atioⁿ^s^{, clo}^t^hⁱⁿ^g^allo^w^aⁿ^ces,
^an^{d oth}^e^{r s}^p^{ecial com}^p^en^s^a^tion^f^o^{r ch}^ildren^of^certain^categ^ories^of^v^e^teran^s^.
^b^.^Iⁿ^clu^d^{es ed}^u^catioⁿ^a^{l b}^eⁿ^e^f^{its f}^o^r^v^e^ter^aⁿ^s^{, r}^e^ser^v^{ists, an}^d^d^e^p^eⁿ^d^en^{ts; v}^o^catioⁿ^a^l^r^e^h^a^b^ilitatioⁿ^;^tu^itioⁿ
^as^sⁱ^s^t^an^{ce; g}^r^an^ts^{to s}^t^{ate approv}ⁱⁿ^g^ag^en^cies^f^o^{r MGIB}^ben^e^f^its^{; an}^d^g^r^an^ts^f^o^r^{adapted h}^o^u^sⁱⁿ^g^,
^au^tom^obiles^,^an^{d equ}ⁱ^pm^en^t.
^{c. B}^u^d^g^{et au}^th^o^r^ity^f^o^r^th^{e Veter}^aⁿ^s^Health^A^d^mⁱⁿⁱ^str^a^tioⁿ^.^A^s^id^{e f}^r^o^m^dⁱ^r^{ect ap}^p^r^o^p^r^iatioⁿ^s^f^o^r^m^e^dⁱ^cal
^c^a^r^e^,^V^A^ha^{s b}^e^eⁿ^a^b^l^e^t^o^sup^p^l^e^m^eⁿ^tⁱ^t^s^a^p^p^r^o^p^rⁱ^a^tⁱ^o^ns^t^h^r^o^ugh^M^e^dⁱ^c^a^l^Ca^r^e^Co^l^l^e^c^tⁱ^o^{ns Fund}
⁽^M^CCF)^co^llectioⁿ^s^{. T}^h^{ese in}^clu^d^{e in}^p^a^tien^t^{, o}^u^tp^atien^t^{, m}^e^dⁱ^catioⁿ^,^an^dⁿ^u^r^sⁱⁿ^g^h^o^m^e
^copay^m^en^t^s^f^r^om^v^e^t^e^ran^s^an^{d t}^hⁱ^r^d-^part^y^pay^m^en^t^s^recov^e^{red f}^r^om^v^e^t^e^ran^s^’ⁱⁿ^su^rers^{. S}ⁱⁿ^c^e
^FY1998^(th^e^fⁱ^rs^t^y^{ear VA}^s^t^{arted retain}ⁱⁿ^g^th^es^{e collection}^s^{), VA}^h^a^s^u^{tilized th}^es^{e collection}^s
^to^p^r^o^v^id^{e m}^e^dⁱ^{cal ser}^v^{ices to}^v^e^ter^aⁿ^s^{. MCCF to}^{tals ar}^{e in}^clu^d^edⁱⁿ^b^u^d^g^{et au}^th^o^r^ity^fⁱ^g^u^r^es^f^r^o^m
^F^Y^{1998 f}^o^rw^ard.
^d^.^Iⁿ^c^l^ud^e^sⁱⁿ^sur^a^nc^e^p^r^o^g^r^a^m^s^,^ho^usi^{ng a}ⁿ^d^o^t^he^r^l^o^aⁿ^gua^r^a^nt^y^p^r^o^g^r^a^m^s^,^aⁿ^d^a^d^mⁱⁿⁱ^st^r^a^tⁱ^o^n.^B^e^giⁿⁿⁱ^ng
ⁱⁿ^F^Y^{2006, t}^hⁱ^s^cat^eg^ory^al^s^oⁱⁿ^cl^u^d^esⁱⁿ^f^o^rm^atⁱ^oⁿ^t^echⁿ^o^l^o^g^y^{, w}^hⁱ^c^h^w^a^s^prevⁱ^o^u^s^l^y^report^e^{d as}
^{part of}^each^prog^ram^.

Table 2. Number of Recipients of Veterans Benefits and Services,
FY1980-FY2007
(in thousands)
^Rea^d^justm^e^nt,^M^e^{dical Care}^Hou^sⁱⁿ^{g L}^oan
^Fi^s^c^al^Y^e^ar^Co^m^p^ensa^tioⁿ^a^{nd P}^e^nsio^ns^Educa^t^io^{n, a}ⁿ^d^Program^s^a^b
^Job^T^r^aiⁿⁱⁿ^g^Inpa^tⁱ^ent^Ou^tp^ati^eⁿ^t
^{1980 4,646}^1,233^1,359^17,930²⁹⁷
^{1981 4,535}^1,081^1,360^17,809¹⁸⁸
^{1982 4,407}⁹⁰⁶^1,358^18,510¹⁰³
^{1983 4,286}⁷⁵⁵^1,401^18,616²⁴⁵
^{1984 4,123}⁶²⁹^1,412^19,601²⁵²
^{1985 4,005}⁴⁹²^1,435^20,188¹⁷⁹
^{1986 3,900}⁴¹⁹^1,462^21,635³¹⁴
^{1987 3,850}³⁶⁵^1,466^21,635⁴⁷⁹
^{1988 3,762}³⁵²^1,224^23,233²³⁵
^{1989 3,686}³⁴⁹^1,153^22,629¹⁹⁰
^{1990 3,614}³⁶⁰^1,113^22,600¹⁹⁶
^{1991 3,546}³²²^1,072^23,007¹⁸¹
^{1992 3,462}³⁸⁸⁹⁸⁸^23,902²⁶⁶
^{1993 3,397}⁴³⁸⁹⁷⁴^24,236³⁸³
^{1994 3,351}⁴⁷²⁹⁶³^25,443⁶⁰²
^{1995 3,332}⁴⁷⁶⁹³⁰^27,565²⁶³
^{1996 3,315}⁴⁷⁵⁸⁵⁰^30,055²⁹²
^{1997 3,290}⁴⁸⁰⁷⁰⁰^32,648²³⁹
^{1998 3,270}⁴⁷⁹⁶³²^35,777³⁶⁹
^{1999 3,254}⁴⁵⁸⁷⁵²^37,799³⁹⁶
^{2000 3,241}⁴⁵⁹⁷¹⁸^39,266¹⁷⁶
^{2001 3,220}⁴⁸⁵⁷²⁹^43,808²⁵³
^{2002 3,246}⁵⁵⁹⁷⁴⁶^47,032²⁹⁵
^{2003 3,328}⁵⁵⁴⁷⁴²^50,756⁵²²
^{2004 3,396}⁵⁸²⁷⁶¹^54,776²⁷¹
^{2005 3,476}⁵⁹¹⁸¹¹^58,236¹⁶²
^{2006 3,548}⁵⁸⁷⁷⁷⁴^60,194¹³⁹
^{2007 3,646}⁶¹⁰⁸¹¹^62,936¹³⁰
^Source:^T^a^{ble prepared by}^th^{e C}^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch^S^e^rvⁱ^{ce (C}^R^S^{) base}^d^oⁿ^dat^a^obt^aiⁿ^e^{d f}^r^om^t^h^e
^Gen^e^r^a^{l A}^d^mⁱⁿⁱ^str^a^tioⁿ^&^Co^o^r^dⁱⁿ^a^tioⁿ^Ser^v^{ice, Of}^fⁱ^{ce o}^f^th^{e B}^u^d^g^{et, Dep}^a^r^t^m^eⁿ^t^o^f^Veter^aⁿ^s^A^f^f^a^ir^s.
^{a. Pat}ⁱ^eⁿ^t^s^t^r^eat^{ed i}^s^t^h^e^s^u^m^of^di^s^c^h^a^rg^es^an^{d deat}^h^s^du^riⁿ^g^t^h^{e report}ⁱⁿ^g^peri^{od pl}^u^s^patⁱ^eⁿ^t^s^rem^aⁱⁿⁱⁿ^g
^as^{bed occu}^pan^t^s^{or abs}^eⁿ^t^{bed occu}^pan^t^s^at^t^h^{e en}^{d of}^t^h^{e report}ⁱⁿ^g^peri^od.
^b^.^{Visits f}^o^r^o^u^tp^atien^t^car^e.