§ 113. — Treatment of certain programs under sequestration procedures.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 38USC113]
TITLE 38--VETERANS' BENEFITS
PART I--GENERAL PROVISIONS
CHAPTER 1--GENERAL
Sec. 113. Treatment of certain programs under sequestration
procedures
(a) The following programs shall be exempt from sequestration or
reduction under part C of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901 et seq.) or any other sequestration
law and shall not be included in any report specifying reductions in
Federal spending:
(1) Benefits under chapter 21 of this title, relating to
specially adapted housing and mortgage-protection life insurance for
certain veterans with service-connected disabilities.
(2) Benefits under section 2307 of this title, relating to
burial benefits for veterans who die as the result of a service-
connected disability.
(3) Benefits under chapter 39 of this title, relating to
automobiles and adaptive equipment for certain disabled veterans and
members of the Armed Forces.
(4) Assistance and services under chapter 31 of this title,
relating to training and rehabilitation for certain veterans with
service-connected disabilities.
(5) Benefits under chapter 35 of this title, relating to
educational assistance for survivors and dependents of certain
veterans with service-connected disabilities.
(6) Benefits under subchapters I, II, and III of chapter 37 of
this title, relating to housing loans for certain veterans and for
the spouses and surviving spouses of certain veterans.
(b) The following accounts of the Department shall be exempt from
sequestration or reduction under part C of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) or any
other sequestration law and shall not be included in any report
specifying reductions in Federal spending:
(1) The following life insurance accounts:
(A) The National Service Life Insurance Fund authorized by
section 1920 of this title.
(B) The Service-Disabled Veterans Insurance Fund authorized
by section 1922 of this title.
(C) The Veterans Special Life Insurance Fund authorized by
section 1923 of this title.
(D) The Veterans Reopened Insurance Fund authorized by
section 1925 of this title.
(E) The United States Government Life Insurance Fund
authorized by section 1955 of this title.
(F) The Veterans Insurance and Indemnity appropriation
authorized by section 1919 of this title.
(2) The following revolving fund accounts:
(A) The Department of Veterans Affairs Special Therapeutic
and Rehabilitation Activities Fund established by section
1718(c) of this title.
(B) The Veterans' Canteen Service revolving fund authorized
by section 7804 of this title.
(c)(1) A benefit under section 2301, 2302, 2303, 2306, or 2308 of
this title that is subject to reduction under a sequestration order or
sequestration law shall be paid in accordance with the rates determined
under the sequestration order or law (if any) in effect on the date of
the death of the veteran concerned.
(2) A benefit paid to, or on behalf of, an eligible veteran for
pursuit of a program of education or training under chapter 30, 31, 34,
35, or 36 of this title that is subject to a sequestration order or a
sequestration law shall be paid in accordance with the rates determined
under the sequestration order or law (if any) in effect during the
period of education or training for which the benefit is paid.
(3) In implementation of a sequestration order or law with respect
to each account from which a benefit described in paragraph (1) or (2)
of this subsection is paid (including the making of determinations of
the amounts by which such benefits are to be reduced), the total of the
amounts (as estimated by the Secretary after consultation with the
Director of the Congressional Budget Office) by which payments of such
benefit will be reduced by reason of such paragraph after the last day
of the period during which such order or law is in effect shall be
deemed to be additional reductions in the payments of such benefit made,
and in new budget authority for such payments, during such period.
(d) In computing the amount of new budget authority by which a
budget account of the Department is to be reduced for a fiscal year
under a report of the Director of the Office of Management and Budget,
or under an order of the President under part C of the Balanced Budget
and Emergency Deficit Control Act of 1985, the base from which the
amount of the reduction for such account is determined shall be
established without regard to any amount of new budget authority in such
account (determined under section 251(a)(6) \1\ of such Act) for any of
the programs listed in subsection (a) of this section.
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\1\ See References in Text note below.
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(e) This section applies without regard to any other provision of
law (whether enacted before, on, or after the date of the enactment of
this section) unless such Act expressly provides that it is enacted as a
limitation to this section.
(f) For the purposes of this section:
(1) The term ``sequestration'' means a reduction in spending
authority and loan guarantee commitments generally throughout the
Government under the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901 et seq.) or any other law.
(2) The term ``sequestration law'' means a law enacted with
respect to a sequestration under the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) or any other law
(under the procedures specified in that Act or otherwise).
(3) The term ``sequestration order'' means an order of the
President issued under part C of such Act.
(Added Pub. L. 99-576, title VI, Sec. 601(a)(1), Oct. 28, 1986, 100
Stat. 3287; amended Pub. L. 100-198, Sec. 12(a), Dec. 21, 1987, 101
Stat. 1325; Pub. L. 100-322, title IV, Sec. 411(b), (c), May 20, 1988,
102 Stat. 547; Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991,
105 Stat. 239; Pub. L. 102-83, Secs. 4(a)(2)(B)(i), (3), (4), (b)(1),
(2)(E), 5(c)(1), Aug. 6, 1991, 105 Stat. 403-406.)
References in Text
The Balanced Budget and Emergency Deficit Control Act of 1985,
referred to in subsecs. (a), (b), (d), and (f), is title II of Pub. L.
99-177, Dec. 12, 1985, 99 Stat. 1038, as amended. Part C of the Act is
classified generally to subchapter I (Sec. 900 et seq.) of chapter 20 of
Title 2, The Congress. Section 251 of the Act is classified to section
901 of Title 2, and was amended generally by Pub. L. 101-508, title
XIII, Sec. 13101(a), Nov. 5, 1990, 104 Stat. 1388-577. For complete
classification of this Act to the Code, see Short Title note set out
under section 900 of Title 2 and Tables.
The date of the enactment of this section, referred to in subsec.
(e), is the date of enactment of Pub. L. 99-576, which was approved Oct.
28, 1986.
Amendments
1991--Subsec. (a)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted
``2307'' for ``907''.
Subsec. (b). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted
``Department'' for ``Veterans' Administration'' in introductory
provisions.
Subsec. (b)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1920''
for ``720'' in subpar. (A), ``1922'' for ``722'' in subpar. (B),
``1923'' for ``723'' in subpar. (C), ``1925'' for ``725'' in subpar.
(D), ``1955'' for ``755'' in subpar. (E), and ``1919'' for ``719'' in
subpar. (F).
Subsec. (b)(2)(A). Pub. L. 102-83, Sec. 5(c)(1), substituted
``1718(c)'' for ``618(c)''.
Pub. L. 102-83, Sec. 4(a)(2)(B)(i), substituted ``Department of
Veterans Affairs'' for ``Veterans' Administration''.
Subsec. (b)(2)(B). Pub. L. 102-40 substituted ``7804'' for ``4204''.
Subsec. (c)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted ``2301,
2302, 2303, 2306, or 2308'' for ``901, 902, 903, 906, or 908''.
Subsec. (c)(3). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
``Secretary'' for ``Administrator''.
Subsec. (d). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted
``Department'' for ``Veterans' Administration''.
1988--Subsec. (a)(4), (5). Pub. L. 100-322, Sec. 411(b), struck out
``(but only with respect to fiscal year 1987)'' before period at end.
Subsec. (d). Pub. L. 100-322, Sec. 411(c), substituted ``a report of
the Director of the Office of Management and Budget'' for ``a joint
report of the Directors of the Office of Management and Budget and the
Congressional Budget Office''.
1987--Subsec. (a)(6). Pub. L. 100-198, Sec. 12(a)(1), added par.
(6).
Subsec. (c)(2). Pub. L. 100-198, Sec. 12(a)(3), substituted ``31,
34, 35, or 36'' for ``34, or 36''.
Subsecs. (e) to (g). Pub. L. 100-198, Sec. 12(a)(2), redesignated
subsecs. (f) and (g) as (e) and (f), respectively, and struck out former
subsec. (e) which read as follows: ``If a final order issued by the
President pursuant to a law providing for the cancellation of loan
guarantee commitments imposes a limitation on the total amount of loans
that may be guaranteed under chapter 37 of this title in any fiscal
year, the Administrator shall submit to the Committees on Veterans'
Affairs of the Senate and the House of Representatives a monthly report
(not later than the 10th day of each month during the remainder of such
fiscal year following the issuance of such final order) providing the
following information:
``(1) The total amount of the loans for which commitments of
guarantees were made under such chapter during the preceding month.
``(2) The total amount of the loans for which commitments were
made during the fiscal year through the end of such preceding month.
``(3) The Administrator's estimates as to the total amounts of
the loans for which commitments would, in the absence of any limits
on such commitments or guarantees, be made during (A) the month in
which the report is required to be submitted, and (B) the succeeding
months of the fiscal year.''
Effective Date of 1987 Amendment
Section 12(b) of Pub. L. 100-198 provided that: ``The amendments
made by subsection (a) [amending this section] shall take effect on
November 19, 1987.''
Effective Date
Section 601(b) of Pub. L. 99-576 provided that: ``Section 113 of
title 38, United States Code (as added by subsection (a)), shall apply
with respect to a sequestration order issued, or a sequestration law
enacted, for a fiscal year after fiscal year 1986.''
Restoration of Certain Revolving Funds
Section 411(a) of Pub. L. 100-322 provided that:
``(1) Notwithstanding section 601(b) of the Veterans' Benefits
Improvement and Health-Care Authorization Act of 1986 (Public Law 99-
576) [set out as a note above], section 113(b)(2) of title 38, United
States Code, shall apply with respect to a sequestration order issued,
or a sequestration law enacted, for any fiscal year after fiscal year
1985.
``(2) The Secretary of the Treasury shall take such action as is
necessary to implement paragraph (1). Not later than 60 days after the
date of the enactment of this Act [May 20, 1988], the Secretary shall
submit to the Committees on Veterans' Affairs of the Senate and House of
Representatives a report on the action taken by the Secretary pursuant
to that paragraph.''
