[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS FOR 2019 _______________________________________________________________________ _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION _________ SUBCOMMITTEE ON MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES CHARLES W. DENT, Pennsylvania, Chairman JEFF FORTENBERRY, Nebraska DEBBIE WASSERMAN SCHULTZ, Florida THOMAS J. ROONEY, Florida SANFORD D. BISHOP, Jr., Georgia DAVID G. VALADAO, California BARBARA LEE, California STEVE WOMACK, Arkansas TIM RYAN, Ohio EVAN H. JENKINS, West Virginia SCOTT TAYLOR, Virginia NOTE: Under committee rules, Mr. Frelinghuysen, as chairman of the full committee, and Mrs. Lowey, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Sue Quantius, Sarah Young, Kiya Batmanglidj, and Tracey E. Russell, Subcommittee Staff _________ PART 4 Page U.S. Department of Veterans Affairs.......................... 1 Fiscal Year 2019 Budget Oversight Hearing on Energy, Installations, and Environment............................. 95 Members' Day................................................. 97 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] _________ U.S. GOVERNMENT PUBLISHING OFFICE 31-445 WASHINGTON : 2018 COMMITTEE ON APPROPRIATIONS ---------- RODNEY P. FRELINGHUYSEN, New Jersey, Chairman HAROLD ROGERS, Kentucky \1\ NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DeLAURO, Connecticut JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina KEN CALVERT, California LUCILLE ROYBAL-ALLARD, California TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania BETTY McCOLLUM, Minnesota TOM GRAVES, Georgia TIM RYAN, Ohio KEVIN YODER, Kansas C.A. DUTCH RUPPERSBERGER, Maryland STEVE WOMACK, Arkansas DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington DEREK KILMER, Washington DAVID P. JOYCE, Ohio MATT CARTWRIGHT, Pennsylvania DAVID G. VALADAO, California GRACE MENG, New York ANDY HARRIS, Maryland MARK POCAN, Wisconsin MARTHA ROBY, Alabama KATHERINE M. CLARK, Massachusetts MARK E. AMODEI, Nevada PETE AGUILAR, California CHRIS STEWART, Utah DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi DAN NEWHOUSE, Washington JOHN R. MOOLENAAR, Michigan SCOTT TAYLOR, Virginia ---------- \1\ Chairman Emeritus Nancy Fox, Clerk and Staff Director (ii) MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS FOR 2019 ---------- Thursday, March 15, 2018. U.S. DEPARTMENT OF VETERANS AFFAIRS WITNESS HON. DAVID J. SHULKIN, SECRETARY, U.S. DEPARTMENT OF VETERANS AFFAIRS Opening Statement of Chairman Dent Mr. Dent. I am pleased to gavel the subcommittee to order for our first hearing on the fiscal year 2019 budget, and before the 2018 budget is even finished, so we are here to talk about 2019. So welcome, Secretary Shulkin. We weren't sure if we were going to be able to pull this hearing off because of the plans to bring the omnibus to the floor this week, but we managed it, thanks to the leadership of Chairman Frelinghuysen, so we are grateful for this opportunity. And so we are delighted, once again, to welcome back Dr. David Shulkin, the Secretary of the Department of Veterans Affairs, and discuss his agency's 2019 budget and the issues that need to be addressed over the coming year. As we all know, there is a lot going on at the VA these days, and that may be an understatement. And there are many challenges that need to be addressed. Those challenges require focused leadership, and we look forward to hearing from you and how you intend to address them. As always, we certainly appreciate your hard work, your dedication to our veterans, and the positive changes that you have been able to make for veterans' lives. Now we are operating under several constraints today. As you know, we are knee deep in negotiations on the omnibus bill to get 2018 funding resolved, so we haven't had much of a chance to delve into the 2019 budget request. Additionally, your budget had late-breaking changes after it was printed, reflecting suggestions for more funding because of the budget caps agreement. As a result, your budget documents haven't been updated at this time, complicating our ability to assess your funding needs. Our second constraint is that, like us, our fellow subcommittees are trying to jump-start their 2019 hearings, so there are five hearings with cabinet secretaries this morning. I am afraid you are going to see more than the usual bouncing around in and out of hearings as they try to also participate in those important hearings and briefings this morning. In any event, let's get started. And before you give your opening statement, Mr. Secretary, I would like to ask our ranking member, the distinguished gentlelady from Florida, Debbie Wasserman Schultz, for her opening statement. Opening Statement Ranking Member Wasserman Schultz Ms. Wasserman Schultz. Thank you, Mr. Chairman. And thank you for joining us, Mr. Secretary. And to your colleagues as well, we appreciate you being here with us. Mr. Chairman, the VA continues to receive tremendous and much-needed increases in its budget. For example, the VA medical care accounts have grown from $36.7 billion in fiscal year 2003 to $64.6 billion in fiscal year 2017. And the overall discretionary accounts have increased from $43.6 billion to a more robust $74.4 billion in the current budget. Fiscal year 2019 is no different. The President's budget requests $85.3 billion in VA discretionary funding, a $10.9 billion, or 15 percent increase, over the 2017-enacted level. Other than defense, I am pretty sure that there is no other Federal agency that has fared better than the VA while we functioned under the budget caps. And that is good news. Certainly not complaining. We want to see a great number for VA medical care in fiscal year 2019. But I am concerned that the budget is seeking to merge a congressionally mandated account, as I have mentioned to you, that was meant to provide greater accountability and transparency of how much care was being sent outside of the VA. Merging these accounts is going to hinder our oversight of non-VA care. And it looks like, honestly, a backdoor privatization effort, especially when you factor in that between fiscal year 2017 and fiscal year 2019 requests, community care spending will have increased by 49 percent, and that is without taking into account the $4.2 billion in emergency funding that Congress provided. This is compared to the 9 percent spending increase in VA- provided care during this same period. What has been emphasized, I am sure, to many of us from our veterans all over the country, is that the best care they get is from the VA. It might be hard to get it. They might have to wait a while, but they get excellent care at the VA. And so moving in the direction of privatization is not something that veterans across this country support, nor would it be in their best interest. So I am glad to see an increased number for the VA in fiscal year 2019, but I am concerned that the 2019 budget folds that community care account back into the medical services account. And I want to hear--I am interested to hear the rationale behind this move, because it is my understanding that the law dictates that there be a separate account. The fiscal year 2019 budget request uses the additional funds provided by the budget agreement to provide $1.9 billion in discretionary funding for the Veterans Choice Fund. Now, my understanding on that is that the budget agreement didn't include specifics, but the spirit of the deal, the very clear understanding that we had is that these funds were to be used for infrastructure needs. I am confident that you will find across the Congress that Members would attest to their VA infrastructure needs in their own districts. It is critical that our understanding from the budget agreement be upheld. Turning to the electronic healthcare record modernization, the fiscal year 2019 budget requests $1.2 billion to continue the massive implementation, preparation, development, interface, management, rollout, and maintenance of a veterans electronic healthcare records system, which is excruciatingly long overdue. But despite having assurance during our closed hearing to discuss this issue, we need to be very careful to establish accountability, which is something I know you share, accountability measures through the whole implementation process that could fundamentally change the Nation's use of electronic records. I mean, we are talking about a $16 billion project that will take a very long time, probably longer than many of us will be here to see it completed. And I can understand this degree of complexity will have its growing pains, but it is crucial that we understand how its procurement will work. I believe that the goal of everyone on this subcommittee is to make sure the VA provides the best care to our veterans at the best possible cost. And with that in mind, Mr. Chairman, it is imperative that we discuss some critical issues, including the Choice Program, and the state of the VA's electronic health records. From our discussions, Mr. Secretary, I believe that you earnestly want to reform and improve the VA. But I believe we must ensure that you have adequate resources to do that--you can't squeeze blood from a turnip--and that proper oversight is in place to guard against abuses and mismanagement, which can and do occur in projects of this magnitude. We have a lot to discuss today. Mr. Chairman, thank you for the opportunity to share my concerns and my observations. But before I yield back, as we begin your final appropriations season, as a Member of Congress, I really think it is important that we acknowledge the remarkable contributions that you have made. You are a classmate of mine. We were both elected together in 2004. You have been a voice of reason. You have been a trusted colleague. You have the respect of many, far beyond the boundaries of your district. Really, in short, they just don't make them like Charlie Dent that much anymore, and you are going to be missed. And I am sure we are going to have an opportunity to celebrate you as you close out your service, but as we begin your final appropriation seasons, I wanted to start the celebration. So thank you, Mr. Chairman, and I yield back. Mr. Dent. Thank you for the very generous remarks of my friend, Debbie Wasserman Schultz. And I also want to say what a pleasure it has been to work with you and every member of this subcommittee, you as ranking member, and, of course, Mr. Bishop, who has also been a great partner too when he was ranking member. It has just been a thrill. And I appreciate the spirit and the bipartisan cooperation you have always demonstrated here. When there are differences, we always figured out ways to work through them, and I want to thank you all for that. It is very kind. So with that, Mr. Secretary, I would just like you to please identify the people at the table with you and then proceed with your oral remarks. Your written statement will be entered into the record, of course. We would appreciate if you could keep your remarks to about 5 minutes so members will have more time to ask questions. So with that, Mr. Secretary. Opening Statement of Secretary Shulkin Secretary Shulkin. Great. Thank you. I appreciate both your comments in terms of the complexity of this budget and how fast it has been moving, so I am going to need a lot of help during this hearing to give accurate answers to all your questions. So I brought with me a lot of people. This is John Rychalski, who is sitting to my right, who is the Assistant Secretary for Management and our chief financial officer, who has been on board about 6 weeks? Mr. Rychalski. Correct. Secretary Shulkin. Okay. And we have an empty chair that hopefully people will join when we need their help. We have Mark Yow, who is our chief financial officer of the Veterans Health Administration; we have Jamie Manker, who is the Acting Principal Deputy Under Secretary for the Veterans Benefits Administration; Richard Chandler, who is the Deputy Assistant Secretary for Resource Management for OIT; and then, finally, Matt Sullivan, who is the Deputy Under Secretary for Finance for the National Cemetery Administration. Mr. Chairman, I can't imagine a nicer introduction of you than the ranking member gave. We believe that we have the best committees in all of Congress who work on veterans affairs issues because we work together in a bipartisan way, put differences aside to do the right thing for veterans. And we all want to thank you for your tremendous leadership, and thank the committee for their continued focus on what is important. I think that--I just wanted to take a moment to say that with all of the distractions that are happening in Washington and all the distractions in VA, the events of the last week that have happened should remind us all about why it is so important that we are doing what we are doing today and getting this budget right and getting VA on track. This past week, we had a very troubled veteran who took the lives of three heroic women, all dedicated to helping veterans who were troubled: Dr. Jennifer Gonzales, who was our employee, a tremendous woman who had trained in the VA, just amazingly dedicated, lost her life; Christine Loeber, who was the Pathway Home director at the state home, who had worked for VA, also tragically lost her life; and then Jennifer Golick, the clinical director of the Pathway Home. And Dr. Gonzales' memorial service is going to be on March 19. We are all saddened by this and just have to recommit ourselves to understanding how important this work is that we are doing here today. President Trump's 2019 budget and the 2020 advanced appropriations is a very strong budget, and it reflects the President's commitment to veterans and their families. I do believe it provides the resources necessary so that we can continue the modernization work that we are doing at VA. It focuses on increasing the foundational services, better access to care, effective management practices, and modernizing our infrastructure and legacy systems, as the ranking member has pointed out, is so important. In my written statement, I have given a detailed plan about how we are going to use these funds to target innovation and improvement. The 2019 budget that the President proposed is $198.6 billion for the Department, $88.9 billion in discretionary, and $109.7 billion in mandatory. The discretionary budget reflects an increase of $6.8 billion, or an 8.3 percent increase over the 2018 request. And it also reflects an additional $2.4 billion in discretionary funding that is now available because of the work that you did to raise the caps. We want to thank Congress for this additional funding that is made available through--in 2019 through the budget caps deal. The additional resources are going to help us address, as the ranking member said, our outstanding infrastructure needs, but also, helping us in funding veterans healthcare, including care from the community under the new legislative proposals that we are working on for reforming the Choice Program. Our capital request of $3.4 billion is a 20 percent increase over 2018 to help us fix those highest priority infrastructure needs. By requesting all of the necessary resources for our community care program and our discretionary budget, we think we can help prevent the funding crises and lapses in veterans care because we funded it from the wrong checking account. Simplifying all of this into a single program, we think, is going to help us run it better and make it work better for veterans. Although we are talking about the 2019 budget today, I would ask for your support in securing a full appropriation for VA in 2018. I know, Mr. Chairman, you have talked about that. As you know, VA relies on a second bite to tailor our total requirements. The budget also seizes an opportunity to expand access to benefits and services, and focuses on the five priorities I have laid out for the Department: greater choice, modernizing our systems, focusing our resources on what is most important to veterans, improving the timeliness in our services, and preventing veteran suicides. Suicide prevention is my top priority, and this budget includes $8.6 billion for mental health, an increase of $468 million or 5.8 percent increase above the 2018 estimate. It is going to enable us to see about 162,000 more outpatient visits in mental health and that directs $190 million for suicide prevention outreach. It provides emergency mental health services for those that were discharged with an other than honorable condition, and it, finally, helps support the President's executive order that he signed on July 9 that allows every transitioning military member to have mental health services during that first critical year after they leave service. Additionally, we are targeting women's health, one of our fastest growing populations in VA, by adding $29 million more in fiscal year 2019, an increase of 6 percent over 2018. The budget provides $1.1 billion in major construction funding, as well as $707 million in minor construction. I am proud that our 2019 request for infrastructure is the largest in the last 5 years, and it is going to allow us to address many of VA's modernization, renovation, and aging infrastructure concerns. In information technology, we have asked for an increase-- the President has asked for an increase of $129 million above the budget to improve the veteran experience. Another major project made possible by this budget is a new financial management system. As you know, our last--our current financial management system is programmed in Cobalt. We can't find people who even know how to program Cobalt, so we are transitioning this to a modern management system. The budget also supports implementation of an electronic health record that has already been mentioned so that we can interoperably manage records between the Department of Defense and the community. We have asked for $1.2 billion to advance the implementation of a single accurate lifetime electronic health record. The 2019 budget also makes important investments in benefits. We have asked to hire an additional 605 personnel for the appeals modernization office--that is a 40 percent increase--to implement the reforms that we have made in appeals modernization, and also hire an additional 225 fiduciary field examiners, which will protect our most vulnerable population. The budget reflects an effort to reform business practices intended for us to be able to continue the transformation of VA. But our responsibility doesn't end with just asking for more resources. Along with requesting more resources comes an obligation to promote financial fiscal responsibility. It is my belief that by focusing on the well-being and the enhanced functioning of veterans, conducting administrative reviews to disability payment rates and focusing on fraud, waste, and abuse prevention initiatives for benefits, we are going to make benefits more equitable for all veterans and wisely use taxpayer resources. Advances in treatment and medical technologies have significantly reduced the impact of certain disabilities in the lives of veterans. And our goal is to get veterans better, decrease their need for compensation, and to do that, we have to modernize our rating system. Caring for veterans is personal. The quality of the healthcare and services is the highest priority that I have. More importantly, veterans and their families deserve better access, choice, and control over their healthcare. We know that the work that we are doing to improve the Choice Program can help clarify and simplify eligibility requirements and streamline the administrative processes, build a high-performing network, and implement new care coordination for veterans. Simply put, improving the Choice Program will have a full spectrum of care for veterans that capitalizes on our foundational services and delivers on the promise for world care services. Finally, Mr. Chairman, as Secretary of VA, my job is to build a modern, adaptable, and sustainable VA for a changing world. My job is also to ensure the VA's care, benefits, and systems, and policies are stronger in the future. The President's budget supports our mission at VA, and in the coming years, these priorities will help us maintain our commitment to our Nation's veterans. I look forward to working with all of you on the committee, and for doing what is right for veterans, and I look forward to any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. Secretary. I thought I would start the hearing off just by saying I very much enjoyed working with you when you were in the previous administration, and now in this administration. Your expertise and your experience in healthcare systems management is extraordinary, and I am glad you are in the job that you are in. Secretary Shulkin. Thank you. INTERNAL DYNAMICS Mr. Dent. But I do feel I have to acknowledge the proverbial elephant in the room, as the public and Congress have been inundated recently with reports, press reports regarding palace intrigue at the VA and the White House. Some reports even mentioned that you stationed an armed guard outside your office. If these reports are true, have the issues been resolved, and if not, why not? And the other question, which is more important, is this internecine squabbling affecting your ability to manage the VA and jeopardize your mission to support veterans? Secretary Shulkin. Yeah. Let me just say that I have publicly acknowledged that the distraction that has happened, that you have talked about, is something that I deeply regret. I have come here for one reason, and that is to improve the lives of veterans, and that is what I am focused solely on doing. There are a lot of people that, frankly, are more interested in politics than I am. I am interested in getting this job done. In terms of--and I have made it clear to everybody in my Department that I have no tolerance for anything other than the business that we have to do for VA. I believe that we are getting back on track with that, and I am going to do everything I can to keep our focus on the work that we have to do, because there is a lot of work to do, as you have mentioned, that impacts people's lives. In terms of the issues about, you know, how I am running things and my security, I will tell you, every cabinet member has a security detail that is armed. I am no different. I have done nothing different in my security protocol. There is no change from what it ever has been. But I don't like discussing my security protocol, and I am not going to give these details. But there is nothing different than what we have been doing. My security detail assesses the risk and makes the decisions on how to best protect the cabinet member. FUNDING THE CHOICE PROGRAM Mr. Dent. Well, I appreciate that answer, Mr. Secretary, because my interactions with you have always been very substantive and professional and on these very weighty issues, so I appreciate that. I would like to now focus on the Choice funding shortfall. After the original mandatory funding of $10 billion for the Choice Program provided by the authorizers was exhausted, the program's funding has lurched from one shutdown risk to the next, with Congress approving two doses of mandatory funding totaling $4 billion. There is still no authorizing bill to consolidate choice with the other non-VA care programs. And once that is enacted, it will take a year to do the implementing regulations. So are you looking at another 12 months of Choice with no additional mandatory funding? I know your budget suggestions released after the budget caps deal include $700 million in fiscal year 2018, and $1.9 billion in 2019 for Choice, but I am not sure there is an appetite to provide discretionary money for a program that remains a mandatory one for another year. So what is your most recent estimate of when the existing Choice funds run dry? And are you talking with the authorizing committees about providing enough mandatory funding to keep the Choice Program going while the new consolidated non-VA care program is implemented? Secretary Shulkin. Yeah. As of March 6, we had a balance in our current Choice budget of $1.1 billion. When you take out the reserve that we have to keep, because we have to keep a certain amount of money for obligations that are incurred, we have, on our current run rate, enough money to get us probably through the end of May, maybe into the very first or second week of June, so that we will not have enough money in 2018 to be able to make it all the way through the end of the fiscal year. And we would have to start taking management decisions to be able to reduce our spending in the Choice Program and use other sources of community funds. So we are going to be working with the authorizers to make sure that they understand that we do have a 2018 shortfall, and that we have to be able to get through the end of the fiscal year. Mr. Dent. Thank you. ELECTRONIC HEALTH RECORD I thought I would quickly ask, before I recognize the ranking member, just a quick discussion about the electronic health record. And during the past week, there have been press reports alleging that DOD's rollout of their electronic health record system in the Pacific Northwest was plagued with all sorts of problems and difficulties. And DOD and its IT contractors responded by noting that the rollout to four medical centers was designed to identify and fix any issues prior to full implementation. They also note that issues are being--are to be expected in any large-scale IT project, and that DOD's implementation is going more smoothly than the comparable commercial conversions. Since VA is planning to use the same system and contractor as DOD for electronic health record, how concerned are you about the glitches uncovered with DOD's rollout? Secretary Shulkin. Well, first of all, let me just say that I am confident that we made the right decision here, that Congress has been asking us, for now 18 years, to find a way to get our systems to work together with the Department of Defense. And so that will certainly be achieved with this. What I have done is I have asked for a pause until I can make sure that we have the interoperability with community providers. Since 36 percent of veterans now receive care in the community, I think that is essential to do. I do believe that working with the Department of Defense as closely as we are, very close working relationship, we are using their lessons to make sure that our contract reflects the issues that we have learned, but also that we are going to have a smoother implementation. Just this past week, I spent time with Admiral Bono, who heads the Defense Health Agency, and we talked about these specific concerns. And I am confident that, given what she has learned from this and shared with us, that we are going to have a much smoother implementation. Mr. Dent. And can I just quickly say, it sounded like many of the problems were related to resistance from users. And given the enormous ability of the VA doctors, the VistA system, don't you expect more serious user resistance at the VA? Secretary Shulkin. Well, I think--you know, I have done two previous electronic health record implementations, never on this scale, of course. Nobody has done anything on this scale. But if you don't have involvement from your clinicians, you might as well not start in the beginning. So that is the absolute key. And so having this being driven through our clinical leadership and our clinicians is going to be the factor that is going to be successful. We are doing these one VistA instance at a time, and involving our clinicians is going to be critical. Fortunately, we have clinicians that use electronic medical records, have been doing it for a long time. And being able to make an effective transition, I believe, is going to be something that not only is possible, but that our doctors and our nurses and clinicians will be able to be in the leadership position to tell us how to do that well. Mr. Dent. Thank you, Secretary. I would like to recognize the ranking member, Debbie Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. First, I would like to associate myself with your remarks about the distractions, but also with yours about the importance and our singular focus needing to be about making sure that we can care for our veterans. So let's all make sure that we are growing in the same direction---- Secretary Shulkin. Yes. Ms. Wasserman Schultz [continuing]. And focused on who you exist to serve. We discussed in my office, I mentioned in my opening remarks, my concern about rolling back medical services into community care when the statute is in direct conflict with that proposal. You know, the Veterans Affairs Department has given veterans some discretion to pursue care in the community, but I am deeply concerned that this is a, you know, snowball rolling faster and faster down the hill, and appears to be moving in the direction of privatization. The first part of my question is, has this administration, or is anyone pushing you towards privatization of VA care? PRIVATIZATION OF VA CARE Secretary Shulkin. I have been clear that I think this would be the wrong decision for our country's veterans to privatize VA. I have also been clear that I think that VA can't do this alone, that that is what we learned out of the access crisis in 2014. So we have to have a rational system that allows veterans to be able to understand what the choices are that they have and be able to get the best care that they can from the VA. And I completely agree with you that the men and women in the VA that serve are doing an extraordinary job every day. We have problems that I acknowledge and that we have to fix, but we are doing important work on behalf of veterans. And so the right choice here is a system that allows for a strong internal VA that is working properly, as well as taking advantage of working with the private sector when veterans can benefit from those services as well. INTEGRATE COMMUNITY CARE INTO A SINGLE ACCOUNT Now, I also believe that running separate systems administratively, keeping money in different checking accounts, is a very, very tough way and inefficient way to run a system. And I do believe appropriate oversight, asking the questions that you ask, making sure that this is not a back door to privatization, is an appropriate role of Congress. And we are going to try to be as transparent about our plans and our use of funds as possible. But I do think it is the right decision to integrate community care funds into a single pot. Ms. Wasserman Schultz. And I can understand what you are saying, and I hope you can appreciate that it is important that we are able to see---- Secretary Shulkin. Yes. Ms. Wasserman Schultz [continuing]. Even if it becomes one account, how much is going into non-VA care. Because then, if we are masking that, then you are essentially hiding the move towards potentially privatization. COMMUNITY CARE VERSUS VA-PROVIDED CARE And just to make a finer point on it, community care-- between fiscal year 2017 and fiscal year 2019, community care spending will have increased by 49 percent. That is without the $4.2 billion in emergency funding. In the same period, we have only had a 9 percent spending increase in VA-provided care. That is, I assume, not because the VA doesn't have the capacity to absorb a greater increase and be able to provide more services. I know in my own VA medical center, I have talked to them. I know what their resource needs are and what they are not getting. So can you explain the difference between this uneven growth? Secretary Shulkin. Our singular purpose, since I came to VA in 2015, is to make sure that veterans that have healthcare needs are getting access. And, frankly, rather than make veterans wait until we built programs inside, or hired enough people, we have only focused on getting them the care. And that has been easier to get care out in the community in many settings. And I think that this is where you have seen a rapid growth, because we are focused on meeting the needs of the veterans. I will not have veterans who have urgent needs waiting until we get enough access in the system. Having said that, this flexibility will allow our medical centers to make good decisions about what is best for veterans, whether they can use this money to better support programs in the VA, or whether it is a better decision to continue to buy care out in the community. And that is what you want an accountable management team to do, which is to focus on their customers, in this case, veterans, and figure out in their market how do you best supply the services? Ms. Wasserman Schultz. You do. But when you have 49 percent to 9 percent difference in increase in growth, you are clearly favoring their ability--which side of the ledger is their ability to make that choice? And so the more and more resources that go into private community care and the less of an increase that we are focused on in VA care, the longer it takes us--I mean, government wheels turn more slowly anyway--then the longer it takes us to ramp up to be able to make sure that people could choose the option of getting care at the VA rather than the private sector. And, frankly, every--almost every veteran I have ever spoken to--and I don't know if my colleagues have had the same experience--if you ask them, their preference is to go to the VA. I yield back. Mr. Dent. I thank the ranking member. At this time, I would like to recognize the gentleman from California for 5 minutes, Mr. Valadao. Mr. Valadao. Thank you, Chairman. Thank you, Secretary, for being here. Appreciate your time. OIG REPORT ON VETERAN WAIT TIME Last week, the VA Office of Inspector General released an audit of veteran wait time data. As you are well aware, the audit revealed that the VA incorrectly reported wait times experience by veterans seeking first-time care from VA doctors. The report estimated that new patients waited on average about 18 days for an appointment. Additionally, 36 percent of veterans had to wait longer than a month for an appointment, despite the VA scheduling system saying only 10 percent had waited that long. Due to this inaccuracy, nearly 13,800 qualifying veterans were wrongly made ineligible for Veterans Choice Program. Have those responsible for misreporting wait times been properly dealt with, and what do you plan to do to fix this serious ongoing issue? Secretary Shulkin. Yeah. The IG report, I think, was well done and gave us a lot to be able to start going through. There have been some immediate changes that have been made. Many of the inaccuracies that were in that report were because people were inputting specific dates, our schedulers were. That is now automatically taken from the system so that there is not the ability for individual variation. It is what is put into the system. I changed the way that we record wait times to when the veteran first calls and requests an appointment. It used to be there was this judgment in there about when did the patient want the appointment, and that is where I think that you had the ability to see data problems. Now it is the day that they call and ask for the appointment is the way that we start recording things. We have also increased now the number of audits that are going on throughout the system to be able to make sure that these types of data are understandable and accurate. In terms of accountability decisions, VHA, the Health Administration is going through the IG report and seeing what, if any, appropriate actions have to be taken there. But, you know, I have the data on the wait times today, and, you know, overall, for mental health and VISN 15, it is 11.6 days. But for primary care, it is 18 days still, and that is something that we are working very hard to get lower than it is, because that is still too long to have to wait. Mr. Valadao. Well, and that is an issue I have even heard in my own district. My constituents who have approached me throughout the district have always said the same thing. We love the care that we get once we are in the door; the struggle is getting in the door. And so I appreciate the changes are being made. Secretary Shulkin. Yes. BLUE WATER NAVY VETERANS Mr. Valadao. One more question, Mr. Secretary, as we discussed in previous hearings, since 2002, the VA has continued to deny claims from Blue Water Navy veterans, despite studies showing higher rates of cancer and non-Hodgkin's lymphoma among shipboard veterans than those who fought on the ground in the country. I brought this up in a prior meeting and hearings with you, and you replied that you are requesting additional recommendations from the VA on this issue. Additionally, I wrote a letter to you in August to address this issue. In September of 2017, you responded to my letter, and said that you were going to be receiving additional subject matter expert recommendations on the matter, and would update me and my fellow signers and the letter in my coming months. So my question is, is nearly 6 months later, have you come to a decision on the Blue Water Navy veterans? If not, what is the status update, and when exactly can we expect a response as to whether your Department plans to afford these brave Americans the benefits they have fought for and deserve? Secretary Shulkin. Yeah. Well, first of all, I thank you and others in Congress that continue to not let this issue go unanswered. I am aligned with you that these veterans have waited too long, and that this is a responsibility that this country has, and as our veterans get older, it is unfair. I do want to make clear that any veteran who has a disability claim, such as some of the cancers that you talked about, is absolutely able to file that claim, and an individual decision will be made about whether there is evidence to suggest that that disability is related to their service. And we are dealing with these claims every single day. Mr. Valadao. But---- Secretary Shulkin. What we are talking about is a presumption. What we are talking about is a class of veterans who served that wouldn't have to go through that type of disability process. And so, I believe that it is imperative upon us to resolve this issue. I also believe that there will not be strong scientific data to help resolve this. This is going to be an obligation that we feel as a country that these veterans shouldn't be waiting any longer. And I am on the side of trying to find a way to resolve this for the Blue Water Navy veterans, and we are working hard to look at offsets and other ways to be able to do that, and it is a high priority for us. Mr. Valadao. And I appreciate that. But with these types of cancers, time is of the essence. Secretary Shulkin. Absolutely. Mr. Valadao. And so having that extra step that they have to take to be able to get treatment is a huge issue in their, hopefully, healing process. Secretary Shulkin. I agree. Mr. Valadao. So thanks again for your time. Secretary Shulkin. Thank you. Mr. Dent. At this time, I would like to recognize the gentleman from Georgia, Mr. Bishop. Mr. Bishop. Thank you very much, Mr. Chairman. Mr. Secretary, thank you for appearing today and your continued partnership with members of this committee on ensuring that we support our Nation's veterans. I want to also thank you for your leadership of the Department, both as the Medical Director and as Secretary. I, along with the VSOs and veterans all across the country, appreciate your hard work and your commitment to veterans. PROSTHETICS TECHNOLOGY I am going to ask you two questions very quickly to try to try to respect your time. The first has to do with prosthetics. Dr. Shulkin, the fiscal year 2019 budget includes $727 million for research, which is a plus $87 million above the 2018 budget, coupled with an additional $1.1 billion in other Federal and private grants and other support total funding in support of veteran research is $1.9 billion. My understanding that the technology surrounding the prosthetic process for our servicemen and women has grown exponentially over the past few years, and that the VA's prosthetic program may be somewhat outdated. What steps is the administration taking to ensure that veterans have access to the latest prosthetics technology that is available on the market, and that the VA stays competitive with the private sector in this regard? MODERNIZATION AND TELEHEALTH And my second question has to do with modernization and telehealth. I represent a predominantly rural district, and I am concerned with my veteran constituents receiving the highest quality of care from the VA. The VA is modernizing a program ``Anywhere and Everywhere'' VA telehealth program. What cost is associated with expanding this program, and is it included in your fiscal year 2019 request? And will the VA be providing the equipment required for telehealth and medical appointments? I know 45 percent of the telehealth services are for rural veterans. Tell me what steps are being taken to grow that percentage in rural areas with their limited access to broadband? And tell me whether or not you are coordinating your efforts with the Department of Agriculture that has primary responsibility for rural communities, and in particular, broadband access, and whether or not you are participating in the Rural America Task Force that is made up of cabinet secretaries and is convened by Secretary Perdue over at USDA. Secretary Shulkin. Yeah. Okay. So thank you for both those questions. It is essential that VA maintain the most contemporary approach to prosthetics and orthotics. This needs to be a foundational service for us. And I do believe that our research funds, as you suggest, need to be moving us towards those contemporary technologies. I was, this past week, at the Las Vegas VA, and I went specifically to orthotics and prosthetics after our conversation to ask about this. I met with their team. They are using the laser fittings the way that you and I talked about, and that is a best practice. And we are making sure that we are learning about what new therapies and diagnostic approaches are out there. As I mentioned, we are working in several of our sites with 3D printing. We have recently developed a new prosthetic arm with DARPA, and so, it is exactly this type of focus that we need to be doing. And I will make sure that we are using the very best technologies. But we do work with private prosthetists who are constantly telling us about new ways to learn, and we are committed to doing that. So thank you for that. On the telehealth services, as you know, in fiscal year 2017, we had about 727,000 veterans using telehealth. In the rural areas, it is about 300,000. Just this past quarter, we had 110,000 rural veterans in one quarter using telehealth, and so you can see it is increasing. That will be around 450,000 on this type of run rate. It is essential, and especially with this Anywhere to Anywhere, now that we can provide services across State lines, for us to reach more rural veterans and provide that type of expertise. In terms of the budget, we are seeing an increase, particularly for rural health in telehealth. It is a 12 percent growth in our budget for rural telehealth activity in 2019. RURAL AMERICA AND BROADBAND ACCESS Mr. Bishop. Are you working with the Task Force for Rural America with regard to veterans health, particularly with the broadband access? Secretary Shulkin. Yeah. Yeah. Yeah. I have attended a number of the meetings with the telecommunications leaders in the rural areas through the White House conveners. This is a really important problem to solve, and I think you have identified the reason why: Without the broadband technology, it is hard for us to get into veterans homes and even into some of our own facilities. But we need to do everything we can to partner with those companies to be able to find solutions, and so, yes, we will continue to work with our rural counterparts throughout the administration. Mr. Bishop. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mr. Bishop. At this time, I would like to recognize the gentleman from West Virginia for 5 minutes, Mr. Jenkins. Mr. Jenkins. Thank you, Mr. Chairman. Mr. Secretary, thank you for being here and thank you for the opportunity to meet last week. A NATIONAL OPIOID CRISIS A couple of quick things: Number one, we have an opioid crisis nationally. We certainly have it in my State of West Virginia, and tragically, many veterans are impacted by the disease of addiction. With regard to the VA, the VA was siloed in sharing prescription data with State PDMPs. What I am interested in is, have we broken down those barriers? And two things: One, do all prescribers, dispensers at the VA have full, unfettered access to the State PDMP programs; and number two, is all prescribing data relating to prescribing behaviors, dispensing of VA folks put into the State PDMPs two-way communication? Secretary Shulkin. Yeah. Yeah. First of all, you know that VA has focused on the opioid safety initiative since 2012. We have seen a 41 percent reduction to opioid use. What I am most proud of is it is a 90-percent reduction on initial starts now, so we are looking in finding alternatives besides having to reach first for opioids. In terms of the State prescription data monitoring program, it is a requirement for us across the country that all VA prescribers participate in the State monitoring program for the reasons why they exist, so that is a requirement. And as far as I am aware--but I am going to come back and confirm this, because I think your question is one that, for some reason, I wish I had asked and I didn't, to make sure that it is this bidirectional, and that is so important, because if we are not getting that into the State databases, then how do outside prescribers know? So I believe that is the case, but I am going to confirm that and get back to you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ACCOUNTABILITY WITHIN VA Mr. Jenkins. The second--and the gentleman, I think, from California raised the IG report, and I would like to talk about the issues. This Congress, over the last couple of years, has taken great strides, at the administration and the Secretary's request, to give broader authority to hold people within the VA accountable. Our goal is clear: We want the very best care possible for our veterans. And if there are people who aren't committed to providing that care at the level we expect the veterans deserve, we want to hold them accountable. And as I raised with you previously, and I heard your comments just a moment ago talking about appropriate actions and change, and I know you weren't referring specifically--I hope not--to the situation in West Virginia. But I simply want to say, it is not appropriate action, and it is not the change we are talking about where a VA employee in Oregon accused of gaming quality-of-care statistics to refusing to treat certain veterans was proposed to be transferred to my State of West Virginia. And simply because of probably outcry from me and others, the decision was not to do that transfer. POOR PERFORMING EMPLOYEES Can you reassure us that the way in which you are dealing with and handling those employees of the VA that are not committed to the mission of the best possible care aren't being swept under the rug, shifted to another State? I don't want Oregon's hand-me-downs. Secretary Shulkin. Well, first of all, Congressman, we appreciated the feedback, and as you know, we took that into account, right. But this was a decision made by the Health Administration, and the decision was made to demote the individual to a lower level of responsibility so that they could get the appropriate supervision and mentorship potentially to be able to contribute back at a higher level. This was not just a simple lateral transfer. But because of the feedback, as you know, that didn't happen, and I think that is the way it should work. We have to come up with mutual decisions about what is best. But there was not a decision made by the Health Administration that this person should be terminated. The decision was made that they were probably operating above their appropriate level of responsibility, and so a demotion was made. Mr. Jenkins. Well, maybe demotion is appropriate. I don't know the facts. Secretary Shulkin. Yeah. Mr. Jenkins. It is the demotion and the transfer to send a problem from Oregon to the veterans in West Virginia. Secretary Shulkin. Yeah. Mr. Jenkins. That is unacceptable to me. Secretary Shulkin. I appreciate that, yeah. Mr. Jenkins. There needs to be transparency. And while you acknowledge it was a factor, it did not become a factor until there was awareness. And I think those in Oregon probably let the folks in West Virginia know, you got a problem on your way. We need better transparency and not kind of that---- Secretary Shulkin. I understand. Mr. Jenkins [continuing]. Mode of communication. Finally, with regard to the infrastructure, I have visited all of our medical centers--I am out of time, I understand. I will save it for the next round. Secretary Shulkin. Okay. Thanks. Mr. Dent. At this time, I would like to recognize the gentleman from Virginia, Mr. Taylor, for 5 minutes. Mr. Taylor. Thank you, Mr. Chairman. Mr. Secretary, thank you for being here today. We appreciate it. INFRASTRUCTURE One quick thing. As you know, my district has the fastest- growing veteran population, OIF, OEF, women veterans, and obviously our care. And according to the VA, 40 percent more folks in the next decade will fall into the system, and 60 percent more care will be needed. And on that infrastructure note, you know, our outpatient center on the south side in our area is one of 28 major VA medical facilities that were approved by Congress last year. Secretary Shulkin. Yes. Mr. Taylor. My question is, how can we expedite these needs to get them built? Because it is going to be, I think, another 2 years before there is any ground break or anything like that. And are we using the correct contract vehicles to be able to make that happen? Secretary Shulkin. It takes way too long to get this stuff done. We are following the Federal contracting rules and regulations, and we are trying to do this as quickly as we can to get through the process. I do believe that the answer that probably you and I are both looking for to get this done faster is going to be new models to work with the private sector, and allowing public/ private partnerships to help us achieve this. We have asked for legislative authority to use greater enhanced-use leases. You have given us authority to do that with the homeless population. That is where we are limited to being able to do this. If we had greater authority to be able to build your facilities with enhanced-use leases, the private sector could do it and we would lease it back. And I think that is an approach that we should look hard at doing, because with Federal contracting rules, it does take years. Mr. Taylor. Any note on OTAs or SBIRs or the usage of those to expedite contracting? Secretary Shulkin. It is something that I just don't know enough about to answer. I would be glad to get back to you. I don't know if any of my colleagues know enough about that. So we will be glad to have a discussion with you about that. Any ideas--I mean, we need to get this done faster. The money has been authorized. Veterans are waiting. It drives me crazy to see years go by and not do this. [The information follows:] Non-Traditional Contracting (NTC) such as Other Transaction Authority (OTA) and Small Business Innovation Research (SBIR) Phase III programs are streamlined procedures that federal agencies use to support scientific excellence and technological innovation through the investment of federal research funds. The VA routinely evaluates and revises its leasing process to ensure it is grounded in private-sector real estate best practices for health care delivery and responsive to the emerging demands of the Veteran population. We work closely with the General Services Administration (GSA) to ensure our lease acquisition strategy aligns with the latest government- wide guidance, tools, and procedures. Additionally, VA has developed a partnership with the General Services Administration (GSA) to procure seven of the recently authorized leases leveraging GSA's expertise in lease procurement. Hampton Roads is one of the seven projects GSA will procure. GSA will follow competitive lease procurement procedures in its regulations. The NTCs referenced do not apply to the proposed leasing action for the South Hampton Roads Outpatient Clinic in Hampton, Virginia. Mr. Taylor. Thank you, Mr. Secretary. We will get with you on that after that. Secretary Shulkin. Okay. Thank you. PRIVATE CARE VERSUS VA-PROVIDED CARE Mr. Taylor. Another note, I think it is important for me to say, as a post-9/11 service-disabled veteran myself, there is a generational divide in terms of the desire to use the VA or desire to use care. And my generation tends to, in general, want to have private care, because it is easier access. The older generations tend to like the VA better. So there is definitely a generational divide. I will say, you know, we had the IG in my office who talked about our own facilities, and they talked about the care being great, but, of course, the perception still amongst veterans of wait times, of not being called back, is still very poor. In my area, it is a one star, out of your rating. And that is a big-- that is obviously a big problem. My question is, as the ranking member pointed out, where 9 percent has increased in the VA care, but 36 percent in private, what are the numbers--because I didn't see that--but for the folks, the veterans who were using the private care? And let me also say on the record that I agree with you and the ranking member that it is the government's responsibility and our duty to take care of our veterans and to oversee that, to not just be privatized. At the same time, as one who is of that generation, I think it is--to get better, faster access, and not have to wait, which is what you said, we should be able to use those facilities, but--private care, excuse me. What are the numbers and what are the veterans saying in terms of wait times, in terms of being called back that are using private services, because I haven't seen that? Secretary Shulkin. Right. So, look, when you are talking about 9 million veterans who use the VA system, this is never going to be an ``everybody feels this way or everybody feels that way.'' Mr. Taylor. Of course. Not a monolith. Secretary Shulkin. Right. Exactly. That is why we are working towards giving people more choice in how they want their care. Many in your generation, many in my generation increasingly want their care on their mobile phones and convenient access when you need it. That is where we really need to be moving, no doubt about it. But the difference between community care and VA care in terms of access is geographically variable. But in general, as I am going to talk about across the country--and I have a publication I am submitting on this--VA access, compared to the private sector is 11.3 days less across the country. Now, depending upon what region you are in, that can vary. The satisfaction of veterans with access to care is actually improving from where it was in 2014. We are getting better, but there are parts of the country--and I think you come from one--where we need the private sector in order to meet the needs. And so that is what we are doing. That is why you are seeing us prioritizing access, community care growing. We are trying to build capability, hire more people within the VA to address access. That will hopefully give veterans more choice about where they want to get their care, in the VA or outside the VA. Mr. Taylor. Thank you, Mr. Chairman. Mr. Dent. I would now like to recognize the gentlelady from California, Ms. Lee, for 5 minutes. Ms. Lee. Thank you very much. Thank you, Mr. Secretary, for being here. Secretary Shulkin. Sure. Ms. Lee. Once again, as the daughter of a World War II and Korean War veteran, I am really pleased to know that we have a Secretary dedicated to ensuring that veterans receive quality healthcare. I know the VA intimately as a result of my dad, so thank you very much. ALAMEDA POINT I have a couple of things I want to mention to you. First of all, I have a letter that I am going to give to you regarding Alameda Point. We are now--this is the new outpatient clinic in my district. Now it appears it will be 2 years now off track in terms of timing. So I would like, and I am asking you in this letter, to give me monthly updates on the status of this, because I am quite concerned about what is taking place. Secretary Shulkin. Okay. Ms. Lee. So that is for the record, and I will give that to you. [The information follows:] VA will continue to work with Congresswoman Lee's office to provide regular updates on the Alameda Point construction. Secretary Shulkin. Thank you. MEDICAL MARIJUANA Ms. Lee. And then, secondly, okay, now, coming from California, of course, you know we have a variety of dispensaries which make marijuana available to patients and veterans who use it for PTSD or chronic pain and it works. Okay. Now, you have said that the VA can't recommend medical cannabis in accordance with State laws until the Federal law changes. But marijuana schedule 1 status does block formal prescriptions. It does not block the ability of doctors to fill out questionnaire forms in those States. So what is the problem? What is the Federal statute that blocks the VA from doing this and not letting physicians simply recommend cannabis to veterans who need it and has proven that it works? Secretary Shulkin. Congresswoman, so would filling out a questionnaire, isn't that the step towards prescribing? Somebody has to write the prescription. Ms. Lee. It is not a formal prescription, no. It is just a recommendation form. That is all the State requires, not a prescription. Secretary Shulkin. So who writes the prescription for the medical marijuana? Ms. Lee. The physician would write--would just recommend cannabis. Secretary Shulkin. My understanding is, VA Federal law would not allow the physician to write the prescription, but-- so I have to understand what the questionnaire would be in order to make a recommendation, but not write a prescription. Ms. Lee. Okay. Well, could we show you that questionnaire, Mr. Secretary? Secretary Shulkin. Absolutely. Ms. Lee. Because veterans need this, it works, and it is a shame and disgrace that the VA is preventing this type of treatment that works. So--and we know the Federal statutes and what all, but this is a merely questionnaire. So I would like for you to review that. Secretary Shulkin. I would be glad to review that, yes. THE PATHWAY HOME MODEL Ms. Lee. Okay. Yountville, California, the tragedy that occurred in Yountville, it just shows one, of course, the access to guns; but secondly, veterans who need more mental healthcare. And the pathway model, where it leverages benefits from the private sector as well as the public sector and the VA, is really a nationwide model. And so, I hope you look at what took place there, and look at how we can expand the model, first of all, but also how we can prevent these tragedies from happening. Secretary Shulkin. Yeah. Ms. Lee. I don't know. Are you conducting an investigation now? Secretary Shulkin. We are. As you know, this is a State home, so that we weren't providing the security. That is up to the State to be able to do that, but we are looking at every aspect of this. Before you came in, I mentioned that three heroic women lost their lives, as I know you know, but one of them was a VA employee. We are absolutely torn up that this happens to people serving veterans. We are looking at every aspect of this to see what we can do. We don't want our employees ever to have to go through this, but also the fear that when they are serving veterans that they have to worry about this. So we are working very hard to look at what we can do in order to protect our staff and to protect our veterans, quite frankly. The Pathway Home model is a remarkable model. They were dealing with the toughest of the tough, you know, in terms of people who failed other treatments. We are not going to give up on this. That would be a failure of our acceptance of this mission, so we are going to continue to do that. And we are working closely with our California counterparts. We--you know, I spoke to Governor Brown, and we have worked with the State Department head of Veterans Affairs there, and we will continue to work to make sure that we are going to see this model continue. Ms. Lee. Thank you very much. MILITARY PARADE Mr. Secretary, let me ask you one more question about this military parade that the President is proposing. Now, will any part of the VA budget be directed toward this parade? Mr. Mulvaney said $10 million to $30 million. Right now, 1.5 million veterans live in households that receive SNAP benefits. We have an increase in homelessness among veterans. Are you all going to pay for part of this parade, rather than put the money into veterans healthcare and mental health and housing and where it should go? Secretary Shulkin. As you know, Veterans Day is a very important day to us. We put our resources and our efforts into the recognition at Arlington National Cemetery that day. We have no plans to change that. We have not had any discussions with the White House about participating in the parade. Ms. Lee. Thank you very much. Mr. Dent. At this time, I would like to recognize the retiring gentleman from Florida, our good friend, Mr. Rooney, for 10 minutes. Mr. Rooney. I forgot. Thank you to the retiring chairman. Dr. Shulkin, welcome. Thank you. I don't know if you are aware or not, but over the last several years, Congressman Tim Ryan and myself have both served as cochairs of the Military Mental Health Caucus. It has had a few variations of different names. But essentially, you know, we have tried to hold hearings and have meetings to discuss things that would help returning warfighters and veterans deal with any mental health issues or stigmas that have arrived since, quite frankly, the last war on terror, and to try to do something to address the suicide issue that has obviously been a big problem. I wanted to say that we appreciate everything that you have tried to do and your willingness to send someone to participate in a lot of those briefings that we have had for our members and for our staff. And I recently read a report about the VA that raised some concerns about our ability to meet the mental health needs of those post-9/11 veterans. Of the post-9/11 veterans who haven't gone to the VA for help, many reported that they don't know how to apply for benefits. They don't know if they are eligible, or they are not aware that the VA offers mental healthcare benefits altogether. TRANSITION ASSISTANCE PROGRAMS How are you working with the Department of Defense to improve transition assistance programs and reduce this lack of knowledge amongst veterans? How are you working to target veterans who have left the military before these type of transition programs were actually in place? And then, I am going to ask this other question--I will just ask all my questions and then let you answer, if you don't mind. The report also suggests that transportation issues pose challenges for many of these post-9/11 veterans, and I know this is especially true in rural districts like mine. But I also think that it might be true in anybody's district. You know, if you just don't want to go talk to somebody face to face, maybe that is part of an issue. Maybe it would just be easier to be able to discuss these things over a telephone or something like that. But when asked, 45 percent of veterans answered that they would be in favor of using the internet or telephone to receive mental healthcare. TELEHEALTH PROGRAM You recently announced the launch of a new pilot telehealth program for rural veterans with PTSD that will provide veterans with remote access to psychotherapy and related services. Can you provide an overall--an overview of how this program works and any plans you have to expand that program to include other areas? Secretary Shulkin. Yeah. Yeah. Well, first of all, thank you for your leadership in this area. As you know, this is critical to us and our top priority to reduce veterans' suicide. And you are correct that of the 20 veterans a day who take their life through suicide, 14 are not getting care in the VA. They are out in the community. And so we have focused extensive efforts on working with community organizations, churches, synagogues, mosques, as well as not-for-profit organizations, and veteran service organizations to get the message out that people need to get resources, whether in the VA or outside the VA. Our veterans crisis line, we have expanded to now a third center, and we are responding to well over 1,000 calls a day. But you can also text into that as well, so we are using alternative means to be able to do that. Telemental health is a huge area, an opportunity--we use it extensively, close to 400,000 episodes of care delivered through telemental health. And we think it is important to expand that. We now have 11 telemental health hubs where we can hire professionals in usually metropolitan areas that can now serve in more rural areas where the shortages are more significant. Mr. Rooney. With regard to my first question--and I appreciate that. I don't think it just has to be rural. I was just driving around Washington, D.C., and it is maddening just to try to get anywhere here, too. So like a lot of, I think, I am sure it is just sort of the feeling of easy access, especially at critical times when people might need it right now--access to somebody that can talk to them--rather than trying to figure out how they are going to navigate, you know, whether it is a rural district or a city. With regard to my first question, when I PCSed in 2004, there was no transitional advice or whatever for myself and, I assume, for the other people that were PCSing that day or around that time. And since I have been out--and some might say I probably could use some help as well--but I have gotten nothing from the VA or anything to show, ``Hey, by the way, if you PCS from the Army or the Navy or any of the branches before we started doing some kind of an awareness separation briefing and you feel like you might need some of this kind of help, this is some of the things that you should do.'' I have never gotten that kind of phone call or letter or anything like that. So what do you do for people that may have PCSed before those types of efforts were put in place? Secretary Shulkin. Well, first of all, we have worked hard on our TAP program, our Transition Assistance Program, to make sure that, before everybody gets out, that they undergo a seminar on understanding how to use their benefits. But, too often, and I think this is what you were referring to, when I talk to veterans that find themselves transitioned out of the military, they now find themselves somewhat either depressed or in an emotional issue, the last thing that they want to do is start figuring out how you start applying for benefits. So the President's executive order that he signed on January 9 of this year asks for essentially what I call auto enrollment. Now, my staff doesn't like when I say that because it is complex. But I believe before everybody leaves, that paperwork should be done and they should be automatically eligible to have access to mental health services. And that is what we have presented now to the President on March 9, a report that suggests how we are doing that with the Department of Defense. We are implementing that as we speak so that that is essentially automatic that every servicemember will have that mental health benefit when they transition out. Mr. Rooney. Thank you, Dr. Shulkin. I yield back. Mr. Dent. The gentleman from Ohio, Mr. Ryan, is recognized for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. Just to continue along the line of Mr. Rooney, so I think that is a great way to approach the Transitional Assistance Program, is to get people in. To me, it doesn't sound complex at all; it sounds very straightforward. And I think that is the way we need to go. We appreciate your leadership on this. In my estimation, we have a couple major issues, some of which have been brought up here, on the issues of opiates and on the issues of post-traumatic stress. We still have 20, 21, 22 suicides a day. We have, clearly, some budget issues that we need to deal with in the long term, and we have to figure out how we can provide care to these veterans who are coming back or have been back for 30 or 40 years. We talked about this a little bit at our breakfast last week. COMPLEMENTARY CARE I have seen, personally, over the last 15 years of my career here, complementary programs that are having unbelievable effects and improving the health and well-being of veterans who have been suffering for a long, long time. I have sat at the Washington, D.C., VA in a mindfulness-based stress reduction session for 30 minutes of mindfulness-based meditation techniques. And then, afterwards, had conversations with Vietnam veterans who were in tears talking about how they wish they would have found this 40 years ago because they have been on so many medications, they have been divorced two or three times, they have lost touch with their kids, just emotionally disconnected because of what they did. And it is the David Lynch Foundation, what they are doing with transcendental meditation. It is acupuncture. It is yoga. We have had sessions here on Capitol Hill with the veteran yoga teacher, double amputee, who is now going out and helping to heal these vets. I was just in a session last week with a group called Project Welcome Home Troops. They had a Vietnam vet who was on 20 prescription drugs--20--which is not common, but it is not unusual, either, for people to be on 10, 12, 13 drugs. After one session, 5 days of this complementary approach, this guy is off all his meds. And I am just saying: We have got to wake up. There are things out there, that we don't need to come up with any grand new solutions. And so I just want to plant the seed with you to say, as you are doing the TAP program, that I think it would be in the interest of the taxpayer, the veteran, and all of their family members to start figuring out how to have these as options. So get the people through the TAP program aware of what is going on. Let's start studying these. I don't know why this stuff works. I have no clue. It has something to do with your nervous system and your biochemistry and the mind-body connection that we are learning more and more about. But when we have vets that are going from 20 prescription drugs and we do the math on that for the next 30 years--we do, on the Appropriations Committee and the Budget Committee--and then we do the math of that person maybe getting a treatment for 500 bucks for 5 or 6 days and it transforms their lives, that is something that we need to look into. And I don't care what it is. I don't care how it works. But what I would just recommend is that--and I know Tracy Gaudet is doing an amazing job with the patient-centered care-- is that when these young men and women come back, that they are at least made aware of these programs and where they may be in their community and that if we can begin to set up some pilot programs where, whether through the Choice Program or something else, we give them 500 bucks. Because I would much rather--and the people I represent and the veterans and everyone else-- let's give them the 500 bucks to go try this thing out and see if it works, instead of immediately start doling out prescriptions. I would love to work with you on that. I think it is critically important. Time is of the essence. There is a real sense of urgency here. Secretary Shulkin. Congressman Ryan, I am all in. I think you are absolutely correct. It is why we have had a 90-percent reduction on new starts in opioids because we are using a different approach. Ninety-three percent of our VA medical centers offer complimentary care. The Choice Program does pay for complimentary care. We had 47,000 authorizations this past year for acupuncture and 70,000 authorizations for chiropractic care. We need to be doing more of this in alternatives. We have also talked about pet therapy as another strategy that we have seen having an almost similar effect. So we have to continue to reach forward on this. Tracy Gaudet, with the Whole Health Program, is rolling this out across the country. Mr. Ryan. And there is science behind a lot of this now. The literature on this stuff has grown exponentially in the last 10 or 15 years. I appreciate that. I yield back. Mr. Dent. At this time, I would like to recognize the vice chairman of the subcommittee, Mr. Fortenberry from Nebraska. Mr. Fortenberry. Thank you, Mr. Chairman. Mr. Secretary, it is nice to see you. Thanks so much for joining us today. We appreciate it. Look, we have had some great news in Nebraska and some harder news. I think you are well aware of it, but I think it would be important to discuss publicly. PUBLIC-PRIVATE PARTNERSHIPS The slogan ``private, public, public-private partnerships'' has been used exhaustively, and, yet, at the same time, actually making this a reality can sometimes be harder, but we are doing it back home. In Omaha, we are getting ready to break ground, based upon the new piece of legislation that was passed just fairly recently on a new ambulatory care center. Taking the money, which was set aside for years and years and years, struggling to become big enough to actually rehabilitate or rebuild a new hospital just was never going to happen, given all of the difficulties here. So the community has stepped forward and, in partnership with those public dollars and your leadership, are now putting up $30 million to build out this care center. It is a huge first step, I think, in terms of a new way of thinking for the VA. Secretary Shulkin. Absolutely. Mr. Fortenberry. And we are very proud of that. Back to modeling and using this as a scalable template for the rest of the country, I would like to hear your perspective on that. But, secondly, the harder news is the Lincoln VA clinic, where we have a historic structure, beautifully, wonderfully integrated into a campus that is in the center of our city. A redevelopment agreement reached with the city, all things ready to go, and then the process collapses. Now, you have been very generous in trying to shepherd and watch this. But I think it would be helpful, as well, if you could give commentary on the new timeline by which we are going to receive realbids for the buildout of the new clinic there, particularly given that it was just some type of internal technical bureaucratic snafu that has delayed us. And then the opportunity cost of delays are huge, another year or two gone by, in which we are not providing the best type of progressive leading-edge care. Secretary Shulkin. Well, first of all, I guess it is better to focus on the good news. The private-public partnership in Omaha, we hope to have a groundbreaking ceremony in May. And, frankly, thank you for your leadership in this, because I know that you were instrumental in helping us with this. That model, which Congress has authorized us to do five times across the country--Omaha will be the first called the CHIP IN Act--is a model that we hope to replicate. And we are out actively now in communities looking for the other four partners. This is a major priority for us to replicate what you are doing in Omaha. Mr. Fortenberry. Is this a vision that you anticipate catching on throughout the country? Secretary Shulkin. We have interests from at least 18 communities. The great thing about the American public is that we ask for their help when it comes to helping veterans and they step up. Mr. Fortenberry. Exactly. Secretary Shulkin. So thanks, again, to Omaha for leading this, but we believe that we are going to have all five soon, and then we are going to look at this as a model to come back to you with. In terms of Lincoln, this is a contractor that was awarded that, unfortunately, was not able to be able to complete the work. That starts us back in the process. I think, as Congressman Taylor said, we know this stuff takes too long. This was a re-award in 2019, with construction starting in 2020, and it is not the fault of the veterans that this contractor and the contracting process didn't work for them. So I have asked our team to go back. I have told them that that is unacceptable. They are looking at being able to carve about 8 months off that process. But we are still probably 18 months away from being able to do the work that needs to be done. That is why I think these public-private partnerships are a better way to go than VA being directly involved in this contract in the construction process. Mr. Fortenberry. Well, we are where we are in Lincoln, but anything that--and I know you are doing this, and you have communicated that to me--you can do to expedite this is really necessary. Meanwhile, people at home, putting plans on hold, veterans eager for this new unfolding dynamic, have to be told that there were some internal mistakes. So anything that you can do to expedite this would be helpful. Again, not having this in place is a huge opportunity cost, a loss for us. But I know you are on it. I just thought it was important to have the conversation publicly. Secretary Shulkin. Thank you. Mr. Fortenberry. I yield back, Mr. Chairman. Mr. Dent. Before we go on to the second round of questioning, I would like to recognize the distinguished ranking member of the full committee, Mrs. Lowey, for 5 minutes. Mrs. Lowey. Thank you, Mr. Chairman. It has been a busy morning, but I am delighted to be here, and I know you are proceeding. A pleasure to see you, Mr. Secretary. Secretary Shulkin. Nice to see you. Mrs. Lowey. And I do want to apologize to you, as well. We have multiple hearings this morning, and I didn't bring my roller skates, so I am moving along. I know that important questions on investments and oversight on veterans health and benefits have been discussed. I would like to raise a few specific items. INPATIENT SUBSTANCE ABUSE TREATMENT WAIT TIMES Number one, the waiting time for substance abuse treatment, I don't think that has been discussed as yet. Last year, I heard from a local veterans healthcare provider that veterans facing substance abuse who have the courage to seek treatment can face an average wait time of 10 days before a spot in treatment becomes available. Nationally, the average wait time is even worse at 21 days. Delays, as you know, can prevent a veteran who may be ready to confront addiction from actually seeking treatment, and that doesn't honor our end of the bargain to provide care for our veterans. This is really shocking to me. What is the cause for these delays? Is it the availability of funding, staffing, or other structural issues? And, more importantly, what is the VA doing to make inpatient treatment for substance abuse available as soon as possible? Secretary Shulkin. This is critical to the debate that is going on right now about opioids and suicide and the homelessness problem. I mean, these all intersect. Too often--and even our veterans justice issue, that our jails are still places where we are putting people with substance abuse disorders. The VA has a responsibility to increase its capacity for substance abuse, particularly as we are learning more about medication-assisted treatments and other effective treatments. As you know, the substance abuse programs are filled with people who have recycled with recidivism. So the more that we can find more evidence-based treatments that help people essentially get back on track, find jobs, and get back to their life the way that they should be living, it is important. So we do recognize our responsibility to increase capacity. We are looking to hire additional mental health and substance abuse experts. There are shortages of them. As you recognized--and I appreciate you doing it--the private sector is struggling with this as well. And while there are longer waits, my concern in the private sector is: If you don't have the right type of insurance or enough cash, you don't have access to programs at all. So the VA has much easier equity and access to these programs, but we need to expand them faster. Mrs. Lowey. Thank you. And I hope we can work together so that you get the resources you need to do just that. Secretary Shulkin. Thank you. NATIONAL CENTER FOR PTSD Mrs. Lowey. The National Center for Post-Traumatic Stress Disorder conducts important research to access and treat PTSD. With approximately 11 to 20 of every 100 veterans returning from Operation Iraqi Freedom and Enduring Freedom with PTSD, the Center's work is not only critical, but, as you know, it increases the likelihood of discovering effective treatments and even potential cures. If you can, share with us the research informing the VA about the assessment and treatments of PTSD, and how will the VA continue to support the Center in its essential work? Secretary Shulkin. When I looked into this, the law that requested that VA do a study on the evidence-based treatments coming out of the National Center was actually never enacted. So that is something that we would like to make sure--because we have been asked about when is this study going to be done, and I don't believe that law has yet been enacted. But our National Center is moving ahead and doing the study anyway. But I don't have a specific date when that is going to be done. You know, these studies often take a while to do well, so I will get back to you when that study will be done. But I think there was an expectation that we had already begun that. That is going to begin this spring. And then we need to get the timeline for you. But this is a critical area for our National Center to be looking at, and that is why we are moving ahead with this now. Mrs. Lowey. Thank you. HEALTH NEEDS OF FEMALE VETERANS And, lastly, concerning female veterans' care, I am very concerned that the VA is not adequately addressing the health needs of female veterans, including obstetrics, gynecological care, treatment for gender-specific conditions and diseases. According to VA's recent report, suicide rates among female veterans increased more than 60 percent from 2001 to 2014 compared to 29 percent among their male counterparts. The VA also found the risk of suicide among female veterans was 250 percent higher in comparison to U.S. civilian adult women. Frankly, these statistics were shocking to me. If you have any explanation about the disproportionate rate of suicides impacting veterans, I would appreciate it. And, secondly, how will the VA ensure that female veterans' physical and mental health needs are met? Secretary Shulkin. In the President's budget, we have requested a 6-percent increase in women veterans dollars available to be able to support this. Mrs. Lowey. Is that sufficient? Secretary Shulkin. I think on top of what we have been adding each year, this is what our field has asked for. We have just trained an additional 332 women health providers in our certification course, so we are very aggressively expanding our women's clinics, our women's services, and the dollars I think are appropriate to flow with that. The issue of women's suicide, these are really disturbing statistics, as you have said. There is no doubt that the overall incidence among women veterans is higher than the general population. But what we do know is this, is that, in the last 15 years, we have been studying this comprehensive database of suicides. If you were a women veteran who got care in the VA over the last 15 years, your rate of suicide actually decreased by 2.6 percent, a decrease. If you were a woman veteran not seeking care in the VA during those 15 years, it went up 81.6 percent. So I always say to people: If you had a drug where one worked by decreasing and the other didn't, everybody would be using the drug that worked and not the other one. So we have to connect women. And this is why your question is so important. We have to have access to services. We have to have women feel comfortable in the environment that they seek care in a sensitive way. And our culture has not always been that in the VA, so we have to continue to change that. But we can absolutely save lives by getting women connected with care. The reasons why women's suicide among veterans is high is something that we don't totally understand. I think that we need to do more research into that. But, right now, we are focused on getting women the help that they need. Mrs. Lowey. Thank you, Mr. Chairman. I appreciate you giving me the time. I do hope we can follow up on this because, as we know--you call it the President's budget, and I call it Mr. Mulvaney's budget. This is a really important committee and members that do work in a bipartisan way. I was just shocked by these statistics, and I hope we can address it as best as we can with your recommendations. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mrs. Lowey, for that line of questioning. At this time, we are going to move into a second round of questions for those who are here. So, with that, I will recognize myself for 5 minutes. On the same day last week as the release of the unfavorable IG report about the D.C. VA hospital, you announced sweeping plans to reorganize VHA from top to bottom with a plan for Central Office reorganization due by May 1st and a nationwide reorganization plan for your regional hospitals due by July 1st. DC VA HOSPITAL AND RESTRUCTURING VHA Could you quickly just touch on the situation up at the D.C. VA hospital and then, just as importantly, what led you to set in motion such significant changes, and have your market assessments of different healthcare markets revealed systemic problems, and are you considering delayering the VHA and getting rid of the VISN level? Secretary Shulkin. First of all, very briefly, just to update you on the Washington, D.C., situation, back in April of 2017, the inspector general called me in an unusual step and said: I want to tell you about what we are finding during this review. The results were so concerning to me, that day, I removed the medical center director. We ended up having to remove him twice because the court made us bring him back. But we have new leadership in place, Mr. Larry Connell. Since April of 2017, I think this is a very much better environment for our veterans. We have had an increase in veteran satisfaction to recommend that hospital by 26 percent just since April of 2017, which is a big, big number move. In terms of consults, we had 11,000 consults for prosthetics greater than 30 days. Today, that number would be zero. So we are seeing dramatic improvements in the care there. But what we learned from it was, it was a failure at every level of our organization. It should have never gotten to that point. And so when things are failing at the facility level, the VISN should know about it. When things are not getting addressed at the VISN, the Central Office needs to know about it. I will tell you that I was not aware of those types of problems. So what I did in this restructuring move was, we took three VISNs that I think that there was consistent evidence that there was not the proper flow of information, we no longer have VISN directors there, and we are trying a model where there is direct accountability to the VACO Office. That is delayering. And what I want is a plan submitted to me by July 1st for the entire country about how we look at what the role of the VISN should be, if there should be a VISN, and how do we get more direct accountability over performance. I have asked for a quicker plan for the Central Office by May 1st--I met with the team this morning to go over what that plan needs to look like--where we would delayer at the Central Office as well, because too much information is being passed up one level. And nothing is being done about it. We need to be fixing these problems, and the Washington, D.C., should be a wake-up call that these problems, like a 59-percent vacancy rate in supply chain people in a hospital, just should never exist. You can't run a hospital with a 59-percent vacancy rate. So I believe that we are now taking the appropriate actions in place to restructure this across the country. Mr. Dent. Thank you, Mr. Secretary. ELECTRONIC HEALTH RECORD I want to get to the health record interoperability. VA's electronic health record is not only intended to be interoperable with DOD but also with the private sector. We understand that a big challenge to interoperability with the private sector is private health networks tend to hoard data for a competitive advantage and that incentives would be required to change their behavior. What incentives can you bring to the table to modify private health network behavior in this regard? Secretary Shulkin. Well, first of all, we have said to the Cerner Corporation that we are not going to sign a contract that is going to allow proprietary protection and information blocking to continue. We will not allow that for veterans. The Cerner Corporation has been extraordinary in working with us to respond to that. So I believe we will soon be in a contract that will be groundbreaking for new rules in interoperability. This is going to mean that Cerner Corporation is not going to hold intellectual proprietary rights to open APIs. Open APIs are the key to having free flow of information, as well as adhering to industry standards--these are called FHIR standards--that, again, we are going to build into this contract. When you have open APIs without intellectual property protection, you allow people to be able to develop them on behalf of veterans, and you use industry standards. You are now breaking open interoperability in a way that has not been done before, and we are going to do that. We have gotten 11 major hospital systems to sign on to a pledge that they will adhere to open APIs and industry standards. And more and more health systems who want to work with veterans--and I know all across the country there is a commitment to this--are going to be working with us on this pledge. We are going to change care not only for veterans, but across the country for all Americans by working with industry, by working with leading health systems to get this done. And we are working with CMS, of course, and the Office of the National Coordinator and the Federal Government to get this done. Mr. Dent. Thank you, Mr. Secretary. At this time, I would like to recognize the ranking member of the subcommittee, Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. Just piggybacking on the chairman's question on the EHR process, what is a little troubling to me--I mean, I know you find it exciting that they are going to release their proprietary hold on their product--but the risk there is that you would have it lead to increased customization. And so, I mean, it is an internecine very vast network. You have already had some trouble with getting buy-in, and you have physicians and hospitals who like your own proprietary system that you invented--there is a great deal of pride there--but it is a DOS-based system, and it is the 21st century. So what oversight mechanisms are you putting in place to ensure that the VA has sufficient understanding of existing business processes so that you avoid--while you are going do have a bunch of open APIs--that you avoid costly customization that means that, essentially, you don't have an interoperable system that is seamless with DOD or across your whole system? Secretary Shulkin. I think what you are bringing up, appropriately, is this is a very, very risky, complex implementation. And you are absolutely correct that a lot of things could go wrong. But this is not so much about the technology as about how we manage change and management across the system. We are going to go from 130 instances to a single virtual instance in the VA. That is going to require the type of standardization that you are talking about, and that is really very complex. In order to do that, we are standing up a project management office. The project management office's job will be the oversight of that exact process of the change management process. And that needs to be clinician led and driven in the way that you are exactly right about where this could go wrong if we don't include our clinicians in this process. The open API process, I believe, in conjunction with these FHIR standards, will eliminate some of the risk of everybody doing their own thing. If you do it with open standards--and we are going to publish our model instance so that the whole world can see what we are developing and what the data points are-- that is going to allow us, I think, to avoid some of this proprietary customization that is going on in the market right now. Ms. Wasserman Schultz. I know we had spoken--I am not sure during which meeting or conversation we spoke about this--but that there has been an ongoing concern over whether interoperability would extend to the private sector. And MITRE's review, I know at least took a look at that, have those concerns about interoperability with the private sector, and will the private sector be able to share with the VA. Have those been alleviated with that part of their review? And overall, with your pause, are you following the recommendations of MITRE? I am not sure I am pronouncing the acronym right. Secretary Shulkin. No, you are. That was the total purpose of the pause in the review that we brought in MITRE for, who brought in experts around the country. They generated 51 recommendations. We are now building in all 51 recommendations. And, in addition to that, we have sought additional expertise, even beyond MITRE, because we know we have one shot at this. And, as you said, this is an expensive investment, and it is a long investment. And if we don't get it right in the beginning, I don't think that we are going to have a chance to go back and do it over. So we are taking extraordinary lengths to get the expertise around the country to give us their input. But we absolutely did build in the MITRE recommendations, and we are still looking to do a few more reviews before we say that we are ready to move forward. And, hopefully, that will be soon. INFRASTRUTURE Ms. Wasserman Schultz. Okay. Just like one and a half more questions, Mr. Chairman, and then I am done. I mentioned in my opening remarks and to you, in our closed door meetings, about the concern and the difference between what our budget agreement was, which was to spend the increase in the budget for the VA on infrastructure investment. And as our ranking member said, the Mulvaney budget has abandoned that principle and put it into VA Choice and community care. That is on top of the $4.2 billion in the emergency supplemental. Can you explain why the additional funds were not used for infrastructure, and are we on the same page now that that is where the funds should go? Secretary Shulkin. I can't explain where the disconnect was. I think the chairman said it well, which is that there maybe was some informal communications that your intent may not have been understood the way that they are. We understand that this is your decision. We will be looking in 2018 for a $2 billion investment in our recurring maintenance, which I think is desperately needed and we greatly appreciate that. In 2019, the money was suggested to be moved into our Choice and community care funding, which is also needed, on top of the President's budget that requested an unprecedented increase in infrastructure and major or minor construction. So we think that the budget balance is appropriate, at this point, to make sure that we are addressing veterans' needs, as well as the investment in the infrastructure. And, Jon, I don't know if there is anything that you want to add to that. Mr. Rychalski. I would just say that, when we looked at the requirement, as Dr. Shulkin expressed, we suggested maybe $2 billion in 2018. We also have in the omnibus, I think, the potential--depending on how that turns out--of $2.1 billion between nonrecurring maintenance and minor construction. And then our request in 2019 is pretty substantial. So we felt that, between those three, that would probably adequately address us now for infrastructure needs. And, frankly, we do have a need in Choice. So it just seemed like a balanced approach where we would have enough for infrastructure and still meet the needs for care. PRIVATIZATION OF VA CARE Ms. Wasserman Schultz. Okay. And my leftover half a question here is, piggybacking on our ranking member's and your response on the lopsided difference between the increase in the size of the female suicide rate in private care versus VA care. I mean, I think that underscores the point about not going pell-mell in the direction of privatization and investing more than a 9-percent increase in your needs on that side in the VA side of the House, but what you didn't really answer in the last round for me was: Has this administration, or anyone, pushed you to move the VA in the direction of privatization? Secretary Shulkin. First of all, I think your observations are absolutely correct. It is the reason why I am not in favor of privatization, because you can't take 9.1 million veterans getting care in the VA system, 60 percent that carry a mental health diagnosis---- Ms. Wasserman Schultz. Who wait longer now than they do at the VA. Secretary Shulkin. Right, exactly. And just release them into the general public and think that we are going to honor our commitment to our veterans. It just simply couldn't work by turning on a switch and privatizing it. The President is very, very committed to improving services for veterans. There is no pressure to privatize. There is pressure to fix the system. And the way and that we are going to fix the system is by investing in VA where it needs to be improved, the way that you are pushing us to, as well as by working with the private sector, where they can do it better or they have better access than we have. And so that is really the only pressure to get this system working better and not to have the continued problems that we have been seeing for decades in the VA. Ms. Wasserman Schultz. Okay. Well, I look forward to continuing to work with you toward those goals. Thank you so much. Thank you for your service. Mr. Dent. At this time, I would like to recognize the gentleman from Virginia, Mr. Taylor, for 5 minutes. Mr. Taylor. Thank you, Mr. Chairman. VACANT AND UNDER-UTILIZED BUILDINGS One quick thing before I get to suicide. On the request for $2 billion in fiscal year 2019 and then a substantial request in 2019 for infrastructure, understanding that there are infrastructure needs--just real quick--I know, earlier on in the year, we had a hearing and we talked about the not utilized or underutilized office space--700 or something buildings. Where are we at in terms of progress for that, because that sounds like it could be a significant savings? Secretary Shulkin. We have, to date, disposed of--when I say ``to date,'' since February of 2017--disposed of 131 of those facilities. Eighty-three percent of the remaining facilities have historic preservation status, which just makes it a longer process. But we maintain the commitment to get out of all 435 of the vacant buildings; the rest that are underutilized, another 700 or so, we are working to make sure that we adhere to not investing resources in places where veterans aren't getting advantage of it. And so we are continuing to work on that list. We knew this would be challenging, but we are making progress. Mr. Taylor. Thank you. Following up on something that Congressman Rooney talked about, and then also Congressman Ryan. I believe some veterans have been overprescribed drugs or just money thrown at the problem. And, quite frankly, even on the veteran side, there have been folks that have taken advantage and claim PTSD or TBI or something like that to get benefits and then not seek treatment. So I think, veterans, we have to look ourselves in the mirror, too, and be responsible, because if someone does that, you are just taking away from someone else. COMMUNITY OUTREACH PROGRAM On that note, the $190 million spent on outreach with VSOs and telehealth and hotlines and such, the Congressman brought up a great point in terms of veterans who are out there, and we know from suicides, a lot of them are over the age of 50. How or are we also sending out letters to the folks that are in the database that are known veterans to say, ``Hey, listen''--not just looking for them with the VSOs or faith-based organizations, but directly to the veterans, ``Hey, if you are having these problems, come see us''. Are we doing that, and if not, are we going to? Secretary Shulkin. We are trying a number of things. That is why this is our top priority. And we are going to continue to try new approaches here. We do have a community outreach program, a public service message. Tom Hanks is our national spokesperson, #BeThere or www.BeThereforVeterans.com. And we will continue to try to get the message out there. But, in addition, we are using big data analytics, predictive analytics. PREDICTIVE ANALYTICS Mr. Taylor. If I may, I am sorry. I love Tom Hanks, but directly to the veterans. To his point, he hasn't gotten anything, and I haven't gotten anything saying that. But is there something that is going directly to veterans, not just looking for them? Secretary Shulkin. What we are using in predictive analytics is identifying those that are at the highest risk. And we are doing direct outreach calls to them, asking them to come in. Every medical center is involved in this now. Those that we know can use the benefit the most and proactively reaching out. We are adding suicide prevention coordinators at each of our medical centers. These are people whose job it is to outreach specifically the veterans. If you have additional ways that you think we should be reaching out, we are open to new ideas. Mr. Taylor. Okay. I appreciate that. And another thing you mentioned is prevention, which I think is extremely important, too. There is a verifiable gap. And you have heard me say this before, certainly especially in Special Forces, where they do a great job in Active Duty, and these are the populations that are going back and forth in combat over and over again; they do a great job on Active Duties to prevent suicides. But then they get out, and we are certainly part of that group, that 14 that will never seek care from the VA or a hotline or anything like that. But there is definitely a gap there. DOD AND VA SUICIDE PREVENTION COORDINATION Has the VA coordinated with DOD in terms of prevention, like pilot programs, you know, speaking about the best practices in these units that know they have issues and they have problems and do a good job of preventing suicides on Active Duty, has the VA coordinated with them to figure out what the best practices are--perhaps baselines with units that are more susceptible to TBI and blast and CTE and stuff like that--to figure out, ``Okay, you have a baseline, this is where you are,'' which is something that we are implementing in Naval Special Warfare, but it sounds like something that could be a partnership with the VA and DOD to prevent it, therefore, saving lives, saving families, and then costs as well? Secretary Shulkin. I think you are right. And, first of all, I should say Secretary Mattis has been extraordinary to work with. Many of the barriers that existed in the past between DOD and VA have just gone away, and we are working much closer together. I did what I thought the very best thing to do, to get that closer working relationship, is that we took the head of suicide prevention from the DOD and moved her over to VA on detail. So we have now singular leadership who understands exactly what you are saying about DOD and VA who are directing our efforts. And she is Dr. Franklin. She is bringing us really much closer together on these efforts. I have met with Admiral Lane. I have met with the heads of the Services to talk about what we know that we can work better together on, and this is a priority. Mr. Taylor. Is there anything we can do as Members of Congress to help that effort? Secretary Shulkin. I have to tell you, I don't see anything standing in the way right now. We are all focused on this issue. It seems like we are making more progress now than we have in years. Mr. Taylor. Thank you, Mr. Secretary. Thank you, Mr. Chairman. Mr. Dent. I recognize the gentleman from Georgia for 5 minutes, Mr. Bishop. Mr. Bishop. Thank you very much, Mr. Chairman. I would like to return for a moment to the issue of construction. I think it was touched upon earlier. One of the priorities that you have laid out is to focus resources more effectively, and you allocate nearly $2 billion for major and minor construction. Can you discuss with me what the VA is doing to ensure that construction is done in the most efficient and cost-effective manner? CONSTRUCTION And I ask this because I have long awaited for construction on the Columbus, Georgia, community-based health clinic to begin. And I am also awaiting word from the VA on the recipient of the award for the contract. And, moreover, there have been issues that have been brought to my attention that have arisen with VA's construction process. One specific project is the emergency room expansion at the VA North Health Care center in Dallas, Texas. I am told that this particular project experienced numerous concerns, such as extraordinarily slow implementation of contracts, which resulted in extension of an 18-month project by 16 months; improper direction from the contracting officer, suggesting that the contractor should submit the application for payment, although the VA hadn't obtained funding for a change order on the work; and various other contractor problems. What is the VA doing to really manage this construction process and to make sure that the contractors are performing, or are allowed to perform, and that the contracting officers really are adequately and efficiently managing the contracts? Secretary Shulkin. I think the facts of the past and the history suggest that we should have a lot of reason to be concerned about our ability to construct on time and on budget, so this is clearly a work in progress. As you know, we have been asked to bring in the Army Corps of Engineers on our major construction projects for greater oversight. In terms of the way that we operate internally, we are now in the process of a reorganization of our construction and facilities program. That is going to be reporting directly up to our Deputy Secretary to provide greater Department oversight and visibility into these processes. We do know that there is significant risk in dollars in not doing this right. The specifics on the Dallas facility, I am going to have to get back to you with further information on that. But we know there are enough examples like that that suggest that we have to be organized differently in order to be better stewards of taxpayer resources, quite frankly. This is something that the Deputy Secretary is taking on directly. [The information follows:] Construction on the Dallas VAMC emergency room expansion project was completed on July 6, 2018. Ribbon cutting occurred on August 9th. Mr. Bishop. I appreciate that. And let me go to the question of medical research. As one of four statutory missions, the Department is required to conduct education and training programs for students in health professions to enhance the quality of care that is provided to veteran patients within the VHA healthcare system. As you know, one of my major concerns over the years has been the VA's relationship with Historically Black Colleges and University Medical Schools. VA PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES Can you elaborate on VA's partnerships with Historically Black Colleges and Universities and what the VA can do to increase targeted training and education programs at the Historically Black Colleges and Universities, and other minority-serving institutions, and what plans the Department has to expand relationships with these institutions? Secretary Shulkin. We have reached out to these leading organizations around the country, and we want to do more. We think that VA offers tremendous training opportunities, and, frankly, it is in our interest to train these students so that they will look at VA as a potential future career. Just this week, I received a letter from the dean of Meharry Medical College and Morehouse Medical College reinstating their commitment to work with us on this and asking that my office be directly involved in making sure that we continue the progress. Our previous chief of staff had the lead in this, and since she has left the organization, we want to make sure that there is not a gap or a drop in that commitment, which we are extremely committed to, and they are committed to. So we are going to continue to work very closely with them to get more educational opportunities for their students into our organizations. Mr. Bishop. Thank you, Mr. Chairman. And thank you, Mr. Secretary. Mr. Dent. Thank you, Mr. Secretary. Ranking Member, do you have any additional questions at this time? Then, Mr. Secretary, I would like to thank you for your presentation. It is great to be with you again. Thank you for all the great work you are doing at the VA. It is a pleasure working with you. The next hearing is going to be on April 10. With that, this meeting is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Thursday, April 12, 2018. FISCAL YEAR 2019 BUDGET OVERSIGHT HEARING ON ENERGY, INSTALLATIONS, AND ENVIRONMENT WITNESSES HON. LUCIAN NIEMEYER, ASSISTANT SECRETARY OF DEFENSE OF ENERGY, INSTALLATIONS, AND ENVIRONMENT, DEPARTMENT OF DEFENSE LIEUTENANT GENERAL GWEN BINGHAM, ASSISTANT CHIEF OF STAFF FOR INSTALLATION MANAGEMENT, U.S. ARMY VICE ADMIRAL DIXON R. SMITH, DEPUTY CHIEF OF NAVAL OPERATIONS, FLEET READINESS AND LOGISTICS, U.S. NAVY MAJOR GENERAL VINCENT A. COGLIANESE, COMMANDER, MARINE CORPS INSTALLATIONS COMMAND AND ASSISTANT DEPUTY COMMANDANT, INSTALLATION AND LOGISTICS, U.S. MARINE CORPS MAJOR GENERAL TIMOTHY S. GREEN, AIR FORCE DIRECTOR OF CIVIL ENGINEERS, DEPUTY CHIEF OF STAFF FOR LOGISTICS, ENGINEERING AND FORCE PROTECTION, U.S. AIR FORCE Opening Statement of Chairman Dent Mr. Dent. Good morning. Good morning, everybody, and I would like to welcome everybody to this morning's hearing, and oversight Hearing on Energy, Installations and the Environment for Fiscal Year 2019. It is great to see that the fiscal year 2019 budget request of $11.3 billion for military construction and family housing, including Overseas Contingency Operations (OCO), is an increase of $1 billion, or 9.6 percent above fiscal year 2018 budget requests and about $412 million above the fiscal year 2018 enacted level. So hopefully this increase will address some of the most urgent construction needs within the services. The bipartisan budget agreement modified discretionary spending caps imposed by the BCA for fiscal years 2018 and 2019, which I am sure was a great relief to all in this room. The committee is still concerned how force structure changes will affect the military construction budget in fiscal year 2019 and beyond. Another high-profile issue is the European Deterrence Reassurance Initiative, which our allies are very interested in and for which the fiscal year 2019 budget request includes $921.4 million for 11 countries. Last, we have all a keen interest in managing our facilities better in terms requirements versus capacity, both overseas and in the United States. The panel before us today has a lot of answers to these questions, I am sure. But before I introduce our witnesses, I would like to turn to the ranking member, my friend and colleague from Florida, Ms. Debbie Wasserman Schultz, for any opening remarks that she might like to make at this time. Opening Statement of Ranking Member Wasserman Schultz Ms. Wasserman Schultz. Thank you, Mr. Chairman. I am pleased that we are going to be able to talk about the President's 2019 military construction budget request today. And while we normally have the civilian leadership here, we are really thrilled to have the distinguished servicemembers who are able to join us, so you can help explain military construction priorities and services. As you all know, we are once again functioning under another 2-year budget compromise passed by Congress earlier this year. The budget compromise raised the fiscal year 2018 defense spending level from $549 billion dollars to $629 billion, which is an $80 billion increase. For the second year of the deal, it provides an $85 billion increase. It was my hope these additional funds, however, would be better distributed among the Defense Department's needs, notably to ease the crowding barracks and address the mold and rust and other challenging conditions that we sometimes see. However, it appears that the focus remains on weapons systems and readiness. I am concerned about the Department's investment priorities for infrastructure. From 1990 to 2017, the percentage of MILCON family housing and the Department's obligational authority only increased from 1.2 percent to 4.5 percent. I am troubled that the Department is neglecting this need. If you remove specific initiatives like Overseas Contingency Operations (OCO) construction, base realignment, closure rounds and grow the force initiatives, the MILCON percentage of total Defense Department funding is likely much lower. While I believe that each of you has done a great job prioritizing your service's needs with the resources you have and doing what is best for the warfighter with the funds you request, this lack of investment compounds over time, as I have said to some of you when we met in my office. And it has real, often negative consequences for those who serve. For example, at Alaska's Joint Base Elmendorf-Richardson, the Air Force was concerned that they would have to park their $100 million F-35 outside because the hangar was simply not sufficient. I have been to other bases where outside parking of very expensive aerial equipment is a problem, so it is not just Alaska that is the problem. In Hawaii, at Joint Base Pearl Harbor-Hickam, the National Guard parks the F-22, a fifth-generation fighter that costs $339 million per airframe, inside a clamshell hangar made of semi-permanent tensile fabric and aluminum. Given that I live in hurricane alley, I can assure you this is simply not optimal. In addition to the lack of investment in our facilities that we need to house our weapons systems, I believe we are failing to invest in our most important asset; the soldier, the Marine, or the airman or sailor who protects our nation. Servicemembers and their family are regularly voicing frustrations over poor barracks conditions. I have had those frustrations expressed to me directly, the very places that we often ask our warfighters to return home to after tours. These brave men and women deserve decent shelter, and I fear that we are not always providing that. I am especially concerned that quality of life projects continue to be set aside as you all are forced to focus on other needs of the department. The Department of Defense leadership needs to do a better job of investing in critical infrastructures, and request a realistic number for military construction to ensure we have 21st century facilities to go with our 21st century weapons systems. What happens is that MILCON gets the leftovers. I mean, that is basically what happens. All the other budget priorities are taken care of and then whatever is left over is parked in MILCON. I would bet if we had more extensive conversations privately, each of you would agree. Mr. Chairman, in addition to making sure that we have modern infrastructure, we need to make sure that the Department is able to get rid of the infrastructure that it no longer needs. The recent National Defense Strategy stated that the department, quote, ``Will also work to reduce excess property and infrastructure, providing Congress with options for a base realignment and closure.'' I was surprised to see that after 6 straight years of requesting a BRAC ground coupled with a National Defense Strategy, the Administration chose not to do so for fiscal year 2019. While I understand that a BRAC would be difficult for members, we cannot keep maintaining infrastructure that we no longer need. I am curious as to why we are taking a tool for saving money off the table. In addition to excess infrastructure, I have questions on why the Department plans to build another prison at Guantanamo Bay, a facility we should be closing. A $69 million facility--a $69 million facility--is a complete waste of valuable resources. And building a brand new facility for less than 50 people is a serious misallocation of resources, especially when you factor in that we will have to pay the sustainment costs for the next 5 years while the prison is being built. There are far higher MILCON priorities for which we could use that funding, some which I just described. As you can see, Mr. Chairman, we have some difficult issues to cover today, and I thank you for the opportunity to share my concerns. And if I could, Mr. Chairman, though, before we begin, I want to take a brief moment to acknowledge someone very special to me, who has been a part of my team on and off for a very long while. My Deputy Chief of Staff, Rosalyn Kumar will serve her last week with the United States House of Representatives next week, and this is her last hearing with us. I just wanted to thank her for her service, and not only to our country, but to me and the constituents of Florida's 23rd Congressional District. [Applause.] Ms. Wasserman Schultz. With that indulgence, I yield back the balance of my time. Mr. Dent. Thank you for those comments, Representative Wasserman Schultz. And Rosalyn, thank you for your service. It is much appreciated and we wish you all the best in your next chapter in life, whatever that may be. And but thank you for your dedicated service to the Congress when you entered this institution. It is deeply appreciated. We can't say thank you enough to a lot of the staff around here who really do a lot to help make us look very good on a regular basis. So with that, I would like to now introduce our very distinguished panel of guests, starting first with Mr. Lucian Niemeyer, Chadds Ford, Pennsylvania's finest. Mr. Niemeyer. Amen. Mr. Dent. Amen, yes, okay. Assistant Secretary of Defense for Energy Installations and Environment, Office of the Secretary of Defense. He is accompanied by Lieutenant General Gwen Bingham, Assistant Chief of Staff for Installations Management, U.S. Army. Thank you for being here. Vice Admiral Dixon Smith, Deputy Chief of Naval Operations, Fleet Readiness and Logistics, Navy. Major General Vincent Coglianese, almost Lansdale, Pennsylvania's finest, by the way, Commander, Marine Corps Installations Command and Assistant Deputy Commandant for Installations and Logistics FACILITIES. And Major-General Timothy Green, Director of Civil Engineers and Deputy Chief of Staff for Logistics, Engineering, Force Protection, Air Force. I am glad that civil engineers get a shout out in your title. And thank you for taking time to be here and for sharing your perspectives and expertise. And without objection, all written statements will be entered in the official record. Due to the number of witnesses, Mr. Niemeyer, please summarize your statement in about 5 minutes, if you would, so that we can maximize a time for dialogue between the panel and the subcommittee members. With that, you are recognized, Mr. Niemeyer. Statement of Mr. Niemeyer Mr. Niemeyer. Chairman Dent, Ranking Member Wasserman Schultz, I really appreciate the opportunity here to discuss with you the President's fiscal year 2019 installations and environment programs. We look forward to working with this committee to support the priorities of the department and the quality of life for the military members and the family members who are called to sacrifice so much on behalf of our country. I have submitted my written statement for the record, and I am honored to speak on behalf of my colleagues representing the services here this morning. I wish we had prizes for how long our titles are. It seems that we get the longest in the Department of Defense, but I am definitely honored to speak on their behalf, and I am sure you will be able to talk to them more during the question period. Chairman Dent, I also realize this may be my one and only time testifying before you. I want to personally thank you on behalf of the women and men in the military for your service to our country and Congress. And I really appreciate the opportunity. We are grateful to Congress and the American people for the recently enacted Bipartisan Budget Act of 2018, which provided the resources to begin the recovery from the impacts of sequestration. We have a responsibility now to honor that trust of the American people, by spending each defense dollar wisely to address the most urgent priorities, to build a more lethal, resilient and rapidly innovating joint force. Earlier this year the President released a national security strategy, which guided the development of a national defense strategy to clearly articulate the threats and the challenges our nation faces around the world. Our mission is clear. We must be prepared to defend the homeland, remain the preeminent military power in the world, and advance international order that promotes security and prosperity. The strategy confronts the stark reality that the homeland is no longer a sanctuary. America is a target, whether from terrorists seeking to hurt our citizens, malicious cyber activity against personal, commercial or government infrastructure, or political and information subversion. Attacks against our critical defense, government and economic infrastructure must be anticipated, and more importantly, must be deterred. The strategy laid out by the Secretary of Defense also requires each of us in the department to help drive budget discipline and affordability in order to direct resources to the highest warfighter requirements. In our responsibilities for those who are at the table, we strive for the effective use of installations and ranges. Our 2019 budget priorities enable the department to establish a foundation for rebuilding the U.S. military into a more capable, lethal and ready joint force. Each military services has distinct readiness recovery plans, and the increases are targeted to advance these plans. I know I speak for my colleagues to emphasis that readiness, modernization and reform are our top three priorities for each service. The Department of Defense supports these efforts. Continued congressional support for installations ensures that we sustain a total force that is lethal, efficient and trained to counter all threats across 21st century multi-domain battle space. In supporting these priorities, DOD representatives before you today provide warfighter capabilities through over 585,000 installations facilities and over more than 500 bases. With replacement costs exceeding $1 trillion, and that doesn't include the 27 million acres that we train on, we also construct facilities to provide our combatant commanders overseas, in partnership with our allies, the base capability and adaptability needed for worldwide flexibility. The continued support of Congress, and in particularly the hard work of this subcommittee, enables us to enhance agility, resiliency and the readiness and lethality of our forces around the world. With a clear understanding of the roles of this team at this table supporting that strategy, we have set forth the following objectives to confront the challenges posed by years of underfunded facility accounts and as well as infrastructure accounts. Number one, we are using every program and funding source available to us to eliminate waste in Department of Defense (DOD) installations in infrastructure. Number two, we continue to advocate for adequate funding for the installation and infrastructure accounts to meet mission requirements and to address risks to safety and readiness. Number three, we are working to protect installations and ranges from incompatible development and to enhance the combat credibility of our nation's test and training ranges. And that is an important point. How do we actually start simulating more of what we may face around the world, and the abilities to resource that to be able to provide our warfighters an adequate training and test environment? We are implementing programs to enhance the inner security of our forces and assets. This is one of our highest priorities here, and we ask for the support of the committee. What more can we do to make ourselves more resilient, more secure from those who want to attack our electrical grid, or attack or exploit our facility related control systems where we really need this continuous support of this committee in those particular priorities. We are exploring new opportunities, number five, for third- party partnerships engaging with industries to determine the best practices for our current challenges. Number six, we are working with the military engineering contracting community to develop smarter contracts and to execute our contracts more smartly. We continue to provide for the safety and welfare of our people and our resources through unparalleled environmental stewardship and occupational safety programs. And last, but definitely not least, we are enhancing our collaboration with the hundreds of defense communities that you represent and we represent around the nation, supporting our bases and providing for the quality of life for our troops and their families. These guiding principles will allow us to apply the resources requested in fiscal year 2019 budget to achieve real results. We have requested $10.5 billion for military construction and family housing appropriations, an increase of about $700 million from the fiscal year 2018 base budget. While this request before you makes significant progress in recapitalizing facilities in poor and failing condition, this year's funding will not fully restore the damage caused by years of sequestration. Many of our facilities have degraded significantly from reduced investments in all accounts. As the ranking member pointed out, the department currently has an unfunded backlog exceeding $116 billion. A lot of our facilities are in either failed or poor condition. This will ultimately result in DOD facing larger bills in the future to go ahead and restore or replace facilities that deteriorate prematurely. The stark reality is that it may be too costly to buy or sell us out of this backlog. The Department must ensure that its infrastructure is ideally sized to increase the lethality of U.S. forces while minimizing the costs of maintaining unneeded capacity, which otherwise diverts resources from critical readiness and modernization requirements. As noted in the National Defense Strategy, we continue to work to reduce excess capacity in infrastructure. And we will work with Congress on options for base realignments and closures. We realize that we have asked for 6 years, and for 6 years, Congress has said no. We can't keep doing that. We have to work with you on a common way forward that will allow us to make prudent reductions in our infrastructure. We must ensure that our basic infrastructure is ideally sized to increase the lethality of our forces while minimizing the costs of maintaining unneeded capacity. These efforts will be enhanced by a careful evaluation we are currently conducting of how and where we base new forces, new technologies, new capabilities in support of the national defense strategy. Where and how we base new hypersonic systems, autonomous vehicles, cyber forces that will have an impact on their lethality. We need to assess the ideal methods for the training and deployment of the directed energy programs, electronic warfare, and artificial intelligence programs. All of these concepts, which are called for and this country desperately needs, needs to have a basic infrastructure that will allow us to be able to train them effectively. In lieu of another BRAC request in 2019 to authorize initial BRAC round, we are reviewing our facilities to include facility usage optimization. Are we actually ideally sized and are we putting the right number of people in our buildings to ensure we have a better accounting of excess infrastructure. Our efforts will allow us to work with Congress further on fair, objective and transparent options for future base realignments and closures. Absent a new request and a new BRAC round, DOD has also largely been focused on routine demolition and renovation of buildings is part of our MILCON program. The Department is dedicated additional resources in fiscal year 2019 to demolish more unneeded facilities, including $442 million specifically for demolition and another $65 million as part of our MILCON program. This is one step we can take now to go ahead and meet that goal. In order to deliver maximum results for our MILCON program, we are targeting funding into key areas and I will go through that. As actually I have submitted those for the record, and I will go ahead and point those out, but they are stated for the record. One program that is absolutely essential to us, Mr. Chairman, is the ERCIP program. That is the Energy Resiliency Conservation Improvement Program (ERCIP). We are using that $150 million, and we hope at some point we will be able to raise that, to allow us to address those critical resiliency projects that are absolutely important for us for energy security. For many years we have been doing energy projects that don't necessarily feed those critical missions. We are trying to get that changed right now, put investments so all those projects we worked on the last few years, we can now power our critical facilities. The Department is also committed to protecting the quality of life for military personnel and their families by ensuring access to suitable, affordable housing and unaccompanied barracks. The environment and quality of life which our forces and families experience, has an impact on their ability to do their job and the ability of our departments to recruit and retain. We do have a significant unaccompanied barracks recapitalization program, well over $1 billion. And we look forward to help us renovate or upgrade over almost 2,000 new beds. And we are very proud of the fact that we continue to invest in those types of quality of life projects. We do have challenges we are facing. We have an unstable bid climate, particularly as a result of the storms that have affected the southern part of the United States and Puerto Rico. That is driving uncertainty in our military construction programs, for which we are asking for to have the flexibility to be able to continue to apply bid savings for those projects that we desperately need that are high priorities that we need to continue, even though we might have a higher bid than usual due to what is happening with our labor markets. But ask for your support in helping us maintain those unobligated balances. We also have challenges with project delivery. This committee and the Appropriations Committees last year had some serious discussions and we have taken on some serious efforts with the Army Corps of Engineers and Naval Facilities Command on trying to get better project delivery. Too many of our projects are coming in behind schedule or over budget. We are working very diligently with our construction manager partners to try to rein that in. Restoring the military readiness requires us that we maintain access to training lands and for the protection of the health of our force. The Department's environmental budget accomplishes these objectives through activities ranging from managing critical habitats to avoiding training restrictions to addressing drinking water health advisories are making the best use of limited clean-up dollars. Our warfighters also need unencumbered access to land, water and air space to---- Mr. Dent. Mr. Secretary? Mr. Secretary, may I ask that you wrap up your remarks quickly because I would like to let the other panelists make some brief remarks. I want to keep as many members as I can here for questioning. Mr. Niemeyer. Sure thing. I will go ahead and just point out the fact that we are also working on land management issues. And I will go ahead and just finalize comments to the extent of saying thank you, Mr. Chairman. Thank you, ranking member and thank you for the members of the panel for your support for our priorities and continued support for the men and women of the military. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you. And I would like to see if any of the other panelists would like to make any opening remarks for the record? DOD JURISDICTION FOR A BORDER WALL If not, then I will go right to the questions. We will start right in. And first, Mr. Niemeyer, I would like to talk about the so-called border wall. Ultimately, the border wall would be a function of the Department of Homeland Security. It would be under their bill if it were to ever be funded. What part of the wall would be at the cost to DOD and specifically for military construction? And what authorities currently exist to enable MILCON dollars to be used to pay for the so-called wall? Are there any new authorities that would be required? Mr. Niemeyer. So we are in the preliminary stages of responding to the President's desire to want to do more on the border. As you know, we have already deployed forces there, consistent with what has been done in the past. And as far as additional investments for the wall itself, we are exploring options about what potentially could be done. We are very much in the preliminary stages of that. There are authorities that do exist in law, but we understand that Congress provided those authorities for very specific instances. And we are looking to see to what extent that they could be used, to what extent they are appropriated more importantly. Our continued desire to want to work with the committees to making sure that we are working with you on the use of those authorities. COST OF DOD PORTION OF A BORDER WALL Mr. Dent. And what do you think the cost to DOD would be in terms of MILCON? You haven't been able to determine that? Mr. Niemeyer. First of all, we have determined that we would be looking at a relatively small portion of the overall 1,900-mile construction. So we are really looking at the portion that runs adjacent or along the Barry Goldwater Military Range. So we are talking total of about 37 miles. We don't have a firm estimate because there is a range of options about what we would be asked to do there. So we are still exploring that, to what degree we can do that and what ultimately it would cost. I don't have any firm estimates for you at this time. Mr. Dent. Okay. Is it correct too that DOD can only build on DOD property? Mr. Niemeyer. That is the current understanding, sir. Mr. Dent. Okay. And you said the approximate number of miles is about 37 on the Goldwater Range? That is about the extent of it then? Mr. Niemeyer. That is what we are looking at right now and part of that already has a barrier, so---- Mr. Dent. So the whole 2,000-mile border under MILCON, maximum you would estimate would be 37 miles? Mr. Niemeyer. We have not been asked to take a look at the entire portion for use of DOD dollars. Mr. Dent. Okay, and all right. Thanks for that answer. I appreciate that. RHINE ORDNANCE BARRACKS ENERGY STUDY I would like to also now move to another issue for you, Mr. Niemeyer. In fiscal year 2018 a House report for the committee we directed the Defense Health Agency to report to Congress on specific changes in Germany Energy Law that delayed the Rhine Ordnance Barracks Medical Center's replacement lifecycle cost analysis. That is a mouthful, and what effect the changes have on current facilities and construction in the region. Could you provide us an update on the energy study and what effects, if any, the changes would have the replacement project? Mr. Niemeyer. So I can give you some overall response to that legislation. I think the Army can give you some specifics about what we are looking at for that particular area. We definitely understand the intent of Congress. There is a concern that using sources that would be dependent on Russia is probably not in our best interests right now because it is subject to potentially as being disrupted. So we are looking at a dedicated preferred domestic source of fuel that will allow us to have the flexibility and the freedom without necessarily relying on foreign energy sources. And, you know, I am not sure--General Bingham if you have anything to add to that? General Bingham. Good morning, Mr. Chairman. I really can't talk to the specifics of the source for that particular hospital, but I can tell you that decision-making process is in progress. And we will look at the reliability of those energy sources. What I can tell you as it relates to in the broader scheme of energy security and resilience, last year our Acting Secretary signed out a directive whereby all our installations would get after being able to provide for energy and water security for a period of 14 days. We are taking our threats very seriously to that end and going about it that way. Mr. Dent. Thank you for that answer. BIPARTISAN BUDGET AGREEMENT INCREASE FUNDING FOR DOD And now my final question before I yield to the ranking member. As a result of the budget deal for fiscal years 2018 and 2019, there is an increase in Department of Defense funding, as you all know. I supported that budget agreement and want the department to spend the money wisely. I do not support any intention or idea to alter this agreement at this time. Could you provide some insight to the committee on how the department plans on spending the increase in military construction dollars? Mr. Niemeyer. For? Mr. Dent. For 2019. Mr. Niemeyer. For 2019? Mr. Dent. Yes. Mr. Niemeyer. Mainly looking at our National Defense Strategy and seeing where we have additional requirements that could be funded. It runs the gamut from operational facilities. We are looking at some additional projects overseas for 2019 that we added to our budget. But as far as significant cuts it is about a $700 million total that we were able to add to our overall requests. Mr. Dent. Thank you. And at this time I recognize the ranking member for her questions. HIGH VALUE DETENTION FACILITY AT GTMO Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Secretary, I mentioned in my opening remarks my concern about the Administration's proposed fiscal year 2019 $69 million expenditure for a high value detention facility at GTMO. That facility would be built for 41 people at best. Due to potential transfers that have been reported in the press, that number could drop. But even with the 41 detainees, it would cost $1.7 million per detainee for this facility. It is a facility that wouldn't even be finished until 2022. Given that in my opening remarks and in our conversation in my office, we have both acknowledged that there are very high priorities, many of which the chairman and I have seen; whether it is in Puerto Rico, in Florida, across the country, across the world in MILCON, that I would say are a much higher priority in terms of their deterioration than the plight of providing a better facility for a maximum of 41 detainees in GTMO, a facility that should be closed. Can you explain why we need a facility for 41 people to spend $1.7 million---- Mr. Niemeyer. Yes, ma'am. Ms. Wasserman Schultz [continuing]. Per detainee rather than making sure that we can take care of our service personnel who certainly could benefit much more from those funds? Mr. Niemeyer. Yes, ma'am. I mean, this is a tough situation. Our policy in Guantanamo Bay has been contentious for many years. I know there are still bad guys out there that want to kill people that have been determined by this administration we need to go ahead and detain, continue to detain at Guantanamo Bay. That particular facility is a replacement facility and so we have realized we have some pretty poor and continuing to deteriorate existing facilities. And for years while we were looking at the policy to close GTMO we didn't really reinvest that facility so it is in pretty bad shape right now. And we do have a responsibility if we are going to maintain a function down there that we do need to offer adequate facilities for the care of the detainees we do have. The cost is very expensive. Ms. Wasserman Schultz. Secretary, forgive me, but why would it be a higher priority to provide more comfortable facilities for these 41 people and not build more barracks so that we have more comfortable facilities for our soldiers, airmen, seamen and Marines? Mr. Niemeyer. Yes. I am not sure we are actually creating a better quality of life for them. I think there is a realization---- Ms. Wasserman Schultz. If you are building them a brand new facility, that is a better quality of life than a deteriorating facility. Mr. Niemeyer. We have had 8 years where we have had no investments in there because we felt that we had a policy that we were trying to close our detention operations there. Ms. Wasserman Schultz. Right. Mr. Niemeyer. So there has been no investment. So what we are really trying to is, okay, now we have made the decision, okay. Guess what---- Ms. Wasserman Schultz. What I am asking you is why is it a higher priority to build a facility that would provide, you know, better conditions for 41 so-called bad dudes, as the president refers to them, than for the good dudes that are serving our country and trying to keep us safe? Mr. Niemeyer. I think we have a responsibility to anybody that is under our care whether it be bad or good---- Ms. Wasserman Schultz. Why do we have a higher responsibility to the bad dudes at GTMO than we do to our military service members who are protecting our country? Mr. Niemeyer. We balance the full range of our missions in the Department of Defense to include maintaining detention operations. And so we have priorities for our women and men in the military, but we also have a responsibility that if we are going to maintain our operation there that at least we address the life, safety, health concerns that might be getting worse for that particular facility. Ms. Wasserman Schultz. The President made a campaign pledge that is not really an answer. And if your answer is that we should put the needs and well-being of 41 detainees at GTMO higher than the people who serve our country, than that is really demonstrative of this Administration's backwards priorities. But the President has also made a campaign pledge to load up GTMO with some bad dudes. Are there plans to ramp up operations at GTMO? Mr. Niemeyer. That I don't know. I mean it is really difficult to anticipate who you might be catching in the future, and it is beyond my understanding. I just know that we were given a military construction requirement to replace the deteriorating---- Ms. Wasserman Schultz. It is not difficult. I mean, while we are searching--are we planning on, as we search and hunt down bad dudes, are we planning to use GTMO and ramp up operations there to add to the detainees that are there now? Mr. Niemeyer. I am not at a point right now where I can answer that. I just know we have a military construction request---- Ms. Wasserman Schultz. Why? Mr. Niemeyer. Because it is tough to anticipate what we think we may need in the future. Ms. Wasserman Schultz. Well, you are building a brand new facility for 41 people at best. To me, that signals--which won't even be ready until 2022--that you are ramping up operations there. Unless, you are just being colossally fiscally irresponsible and think it is okay to spend $1.7 million per detainee. Mr. Niemeyer. From our perspective it signals that we realize that we are going to have a long-term operation there and that we need to then make sure---- Ms. Wasserman Schultz. So your answer is yes. Mr. Niemeyer [continuing]. That they are adequately housing--I am sorry? Ms. Wasserman Schultz. Your answer is yes then? Mr. Niemeyer. About what? Ms. Wasserman Schultz. About ramping up operations. Mr. Niemeyer. I just--no, I don't know if we are going to ramp up operations. I don't know who we might end up having in the future? Ms. Wasserman Schultz. What does long-term mean? Mr. Niemeyer. Long-term is as long as those folks we can either adjudicate their process or in some case now they have been convicted and for the long term it is a---- Ms. Wasserman Schultz. Some of them haven't even been---- Mr. Niemeyer [continuing]. Detention facility. That is correct. We are in the process of working that. Ms. Wasserman Schultz. How will this facility be used after the Joint Task Force (JTF) mission ends? Mr. Niemeyer. I don't know what the follow-on mission would be. It is tough for me to make that call right now. We do know that we have taken a prudent step. I mean, with the area cost factor in GTMO being so high, it is an expensive facility. The reason why it is going to take until 2022 is if we want to accelerate it it would cost us more. So we have made some prudent decisions on trying to minimize the cost to the taxpayer while addressing the life, safety, health concerns. SUSTAINMENT COSTS OF CURRENT FACILITY Ms. Wasserman Schultz. Lastly, since you touched on that, before I yield back, Mr. Chairman, thank you for your indulgence. Obviously, you are going to have to use operation and maintenance money to sustain the facility. What are the current sustainment costs and how much has been invested in the facility since it started to fail? Mr. Niemeyer. The existing facilities? I would have to get that for the record. I don't have that with me. Ms. Wasserman Schultz. Okay. If you could do that? Thank you, Mr. Chairman. I yield back. Mr. Niemeyer. Yes, ma'am. Mr. Dent. I would like to recognize the gentleman from West Virginia for 5 minutes. Mr. Jenkins. NATIONAL GUARD TRAINING LANDS Mr. Jenkins. Thank you, Mr. Chairman. Welcome. It is an honor to have you all here and thank you for all you do for our men and women in uniform. Thank you for your service. I am from, as the chairman said, West Virginia and candidly, we have been ravaged over the last 8 years, the war on coal. We have got a lot of hardworking coalminers put out of work. These are people who have gone into the bowels of the earth, done tough jobs, worked with their hands, are problem solvers. But we have also got a lot of land in West Virginia. In fact, there is a piece of property originally called Hobet Mine--it is Rock Creek now--12,000 acres, less than a drive's day from over one half of the nation's population. And I was struck by your use of the word simulating and in your also written comments about readiness and prepare for the battles that we fight around the world. We have got steep hills. We have got flat land. We have got almost, like, desert terrain. So my question is our National Guard in West Virginia, which we are so proud of, is already using--they are saving money on transportation, on other training cost factors. Where is this 12,000 acres on your-all's radar screen as a possibility for investment in DOD to simulate, to train, to repair equipment? It is geographically pretty darn good, and it is a pretty special area that could be put to good use. Mr. Niemeyer. So Congressman, the military services take the lead and they are in the process right now of looking at what they need for additional training lands in a whole different variation of topographies around the country. The Navy is working on a significant land expansion for Naval Air Station (NAS) Fallon to what degree we could use the terrain that is unique. I have actually been out that area. It is something that I would wanna work with the National Guard on, work with the Department of the Army and see, okay, how does that fit into an overall training regimen, particularly when General Milley is looking for variations, new ways to train his forces. So that is something we will take a look at. I don't have specifics on it right now. I am not sure if the Army does, but go ahead. General Bingham. Thank you, Congressman Jenkins. I appreciate your question because I often find myself, as a former senior commander, saying that there is absolutely nothing we do inside our gates without the full support and partnership of our community leader and state leaders outside our gates. And so what we could do is link your team up with our Army G-3 to assess what you are proposing and get back to you on that. Mr. Jenkins. Well, we would welcome that. And you have got a very ready and willing partner inside the gate and outside the gate. As an outside-the-gate guy, who is proud father of a son who is inside the gate, you really would have incredible support from community, from state and local government and certainly the federal representatives. And my sense is you might find outside the gate in some states not as welcoming as you would be. We are a proud military state, probably from a per capita standpoint, one of the highest military service member state in the country. READINESS CENTERS The other area of quick attention--and thank you for your commitment to work with our office and others to see if we can't put this land to good use--and that is our readiness centers in West Virginia. We have 31 readiness centers. I certainly, obviously, don't expect to hear at this point the commitment or the deep familiarity with those particular facilities, but we really would like to work with you about our readiness centers in West Virginia. We have got 5,000 National Guardsmen and women and 31 readiness centers, so there is a real facility needs in our state. And we look forward to looking with you and your budget line items. Any comments about readiness centers and the investment to making sure that those are up to the standards that we would expect? General Bingham. Thank you again, Congressman. Actually, the National Guard has a transformation plan that really is the blueprint, if you will, for what we look at as we look to investment. And so our investments in those readiness centers is informed by that plan. We know that the guard has well over 1,000 readiness centers. And when we look at sustainment dollars, restoration modernization dollars and MILCON dollars, we certainly wanna get after those that bring about readiness for your guardsmen. Currently, our guard requests in fiscal year 2019, there are five projects that total $106 million Mr. Jenkins. Thank you. General Bingham. Thank you for your question. Mr. Jenkins. Thank you so much. Look forward to working with you about Rock Creek, Hobet, our readiness centers, and thank you again for your service. I yield back. Mr. Dent. Thank you, Mr. Jenkins. At this time, I would like to recognize the gentle lady from California, Ms. Lee, for 5 minutes. ENVIRONMENTAL REMEDIATION AT CONVEYED LAND Ms. Lee. Thank you very much. Welcome. Thank you for your service. And just if you don't know, I am the daughter of a veteran, 25 years a military brat, stationed at Fort Bliss, Texas, born in El Paso. And so quality of life issues for our troops and our veterans are extremely important to me. I know personally the sacrifices that are made by our servicemen and woman, and want to make sure everything that we do ensures their safety, but also that they are able to live healthy lives and continue forward with their service. Wanted to ask you a couple of questions with regard to specifically my district in the East Bay, including Alameda Point. I think, Vice Admiral Smith, maybe you could answer this question for me. The City of Alameda took title to about 1,400 acres of land from the Navy in I believe it was 2013 and the V.A. took about 624 acres. It has cost about $560 million now as it relates to environmental cleanup. Still not completed, but I think the repurposing of Alameda Point with this V.A. clinic, it is a good example of what can be done. The environmental remediation efforts are still continuing. And I wondered when you think that may be completed and what the next steps would be in terms of long-term environmental sustainability and the overall stewardship efforts of that? Admiral Smith. Yes, ma'am. Thank you for the question. And you articulated with the numbers, we have transferred the majority of it. We are down to about 19--new environmental issue we have got. And as a result of that, we are now working with V.A. regulatory folks to figure out what is the right way ahead on that. Based upon that, now we are looking at finishing transferring probably around 2022, ma'am, right now. Ms. Lee. 2022? Admiral Smith. Yes, ma'am. Ms. Lee. Why is it taking so long? Admiral Smith. Well, because, you know, we want to make sure that we are turning over land that has been properly decontaminated and we don't run into the problem that we did with the land we have already transferred there that we now have that problem with. Ms. Lee. Yes. Admiral Smith. And so we have gotta do it right. We are not sure how to remediate it yet, so we have gotta work through with the regulatory agencies to make sure we do it the right way. And as you know, with PFOS-PFOA, we as a country have not figured out the right way to deal with that yet, so we are working through it. [The information follows:] The remaining environmental remediation and discovery of radium at NAS Alameda is not anticipated to impact or delay the housing projects or VA's outpatient clinic. Ms. Lee. Okay. And let me just ask you--I want to clarify for myself. This is not going to impact the construction and the work with regard to the V.A. clinic in terms of your timeframe of the environmental cleanup. Admiral Smith. I am going to have to take that for the record. I don't have that specific detail. Ms. Lee. I don't know if it is that same area or not. I will double-check. Admiral Smith. Yes, yes. So I owe that to you. OAKLAND ARMY BASE REMEDIATION Ms. Lee. Okay. With regard to the Oakland Army Base, I guess--Lieutenant General Bingham, good to see you. General Bingham. Good to see you, too---- Ms. Lee. Yes. General Bingham [continuing]. Congresswoman. Ms. Lee. Lieutenant General. General Bingham. Thank you. Ms. Lee. That is awesome. [Laughter.] General Bingham. Very humbling. Ms. Lee. That is awesome. General Bingham. Very humbling. Mr. Niemeyer. Hopefully general someday, huh? [Laughter.] Ms. Lee. Wow. The Oakland Army Base remediation, what are any of the current issues that you see? I know there have been some difficulties in terms of this remediation effort. Not sure exactly what they are, but we are trying to get this done as quickly as possible. And again, we have got a lot of work to do on that Army base and I wanna see if there are any outstanding issues that I need to know about that or that our people in the city need to know about. General Bingham. Thank you, Congresswoman Lee. We are working through two remediation projects there in Oakland Army Base at this time. We are pretty much going through the schedule, I should say, as it relates to the cleanup effort. I don't see any problems at this time, certainly none to involve you. And I think those efforts are ongoing. But if there should be a problem with that, we will come back to your office and let you know. But at this time, we don't foresee any problems. Although, we have those two remediation efforts ongoing. Ms. Lee. Do you have any idea of when they will be complete? General Bingham. I don't know. I can come back to your staff with an estimate---- Ms. Lee. I would like to get a sense of completion date. General Bingham. I will be happy to come back to you with that. [The information follows:] The Army is currently working on two remediation projects at Oakland Army Base. They are designated as Parcel 1 and Operable Unit 2. Army is negotiating with the California Department of Toxic Substances Control on final terms for the Parcel 1 site revised Record of Decision (ROD), which will include the schedule for clean-up and property transfer. The revised schedule will be provided to your office and stakeholders upon resolution of outstanding issues and signature of the ROD. Fieldwork will be complete approximately 4 months after ROD signature. Regarding Operable Unit 2, the Army is preparing a draft Wetland Focused Feasibility Study that will inform the appropriate cleanup remedy for the site. Required fieldwork to complete the study is delayed, pending physical access to the wetland area through railroad property owned by the Port of Oakland. Actions at Operable Unit 2 do not affect the Parcel 1 property transfer. The Army will continue to provide periodic updates on remediation progress at Oakland Army Base to you. Ms. Lee. Okay. Thank you. General Bingham. Thank you. FORT BLISS HOSPITAL CONSTRUCTION DELAYS Ms. Lee. And then Assistant Secretary Niemeyer? Mr. Niemeyer. Yes, ma'am. Ms. Lee. Yes. Good to meet you. Fort Bliss, Texas--and I am working with Congressman O'Rourke who represents El Paso and Fort Bliss on these issues. And again, as I said, I was born in El Paso, and I have a very keen interest in what is taking place at Fort Bliss. And Congressman O'Rourke and myself, we are aware of the significant delays as it relates to the contractor who is building--the construction delays for the new Beaumont Hospital. And I am wondering just in general, seeing what has taken place in terms of the history of this construction of Beaumont, how are you looking at cost overruns now and how do we manage this moving forward? Because it is severely over budget, this one project, I know, 'cause I have looked at it with Congressman O'Rourke. And how do we correct for that in the future? Mr. Niemeyer. Ma'am, that is an outstanding question and we have been spending a lot of time on that in the last 8 months as I took this position. I have been meeting with General Semonite personally on that. This is a project that not only is behind schedule, it is significantly over cost. It really is a posterchild for us on what we need to do better in the future. There were some management changes on the part of the both the Corps of Engineers and the contractor. So really what we had was some bad relationships going. There is no way a personal relationship should interfere a project like that, so we have made some changes. More importantly, looking forward, we are using that as an example where we can get better across the board across the Department of Defense. And at the same time, we are also trying to work very, you know, diligently, meeting once every 2 weeks right now at the senior leadership levels to make sure that project gets back on track, we deliver that critical capability to women and men at Fort Bliss. It has been a tragic series of errors that has led to that almost a year and a half delay. Ms. Lee. Mr. Chairman, let me just ask you, though, are there ever any penalties associated with these huge cost overruns with contractors that mess up big time like they have at Fort Bliss? Or do we just say moving forward now, that was then and this is now, and we are gonna make sure it is done correctly in the future''? Mr. Niemeyer. So Congress asked us to actually get the Inspector General involved, so we have a DOD I.G. investigation going on on that particular project to determine if there is any culpability or any concerns that we need to take a look at. There are damages that are applied when the contract is running late, normally they are called liquidated damages onto the contractor. It may not be enough to change behavior right now, and I am not sure the construction contractor is solely the problem. I think we had a problem with the design and some other issues, too, with the program management. Ms. Lee. Yes. Okay. Mr. Niemeyer. So the goal for us, ma'am, is to get to the bottom of this, to making sure we understand clearly what went wrong, when. If we need to hold people accountable, we will. But more importantly is to use this as--first of all, get this project back on track, but not to make these mistakes again in the future. Ms. Lee. Okay, thank you very much. Could you just keep Congressman O'Rourke and myself---- Mr. Niemeyer. Absolutely, ma'am. Ms. Lee [continuing]. Informed of this? Mr. Niemeyer. Yes, ma'am. Ms. Lee. Thank you, Mr. Chairman. Mr. Dent. Let us move to Mr. Taylor from Virginia. CONTRACTING MECHANISM Mr. Taylor. Thank you, Mr. Chairman. And appreciate you guys being here, appreciate your service, and please give our best to the men and women who serve under you as well and we appreciate them. A couple things--let us see--bids. You know, you talked about bid costs and, obviously, there is a plus-up and we have a timing issue, of course. Are you guys using things like Other Transaction Authorities (OTAs) and Small Business Innovation Research (SBIR) for contract vehicles to make sure that we are being able to spend the money and do it efficiently and effectively? Mr. Niemeyer. So we have been given a lot of money in a short amount of time, particularly in the O&M accounts. And I think that is something that all the Services and the Execution Agencies have taken seriously. We have about 5 months to address some of the readiness needs in our country. We are pursuing any possible opportunity to include expedited contracting while still being able to provide a good product that addresses our warfighter needs. It is going to be a challenge, but the services are dedicated to coming up with the best projects and the best way to spend the money between now and October 31st, particularly in O&M. Mr. Taylor. Are they using those---- Mr. Niemeyer. Or October 1st. Mr. Taylor [continuing]. Those contract vehicles, like OTAs and SPIRs? Mr. Niemeyer. That and others. I mean, we have a whole range of abilities to be able to put money towards good projects. BASE CLOSURE AND REALIGNMENT Mr. Taylor. Appreciate it. You spoke about 6 years asking for a BRAC and Congress saying no. I agree. I just want to be on the record that I agree with that statement. I think that we need to make some courageous decisions up here, otherwise, we are contributing to the problem, if you will. RESILIENCY AND SEA LEVEL RISE Virginia Beach and the State of Virginia have been very good about spending monies, if you will, dealing with encroachment on things like Oceana and trying to work with resiliency. And on the subject of resiliency, of course, we have sea level rise in Virginia that does affect our bases. Have there been studies, actions, requests for money to ensure resiliency around those bases? Mr. Niemeyer. Yes, that is the key step here is right now is we are taking a look at what needs to be done, what has been done. We have always responded to flood conditions as part of what we have done as military engineers, why we look at preserving our military capabilities across the country. And we will continue to do that. In the Hampton Roads area in Virginia Beach, wherever we can make good decisions about how high we raise a dry dock or how high we raise a dam, those are all engineering decisions that we make every day. And we will continue to make those as we see, you know, conditions change around the country. Mr. Taylor. If I may, and specifically in the Hampton Roads area with sea level rise, not being reactionary, but are we also looking at potentially investing in the future and understanding where we are gonna be years out? Mr. Niemeyer. Right, so we are looking at adjustments to what our engineering forecasts are and to what degree we can start planning now, and just making prudent engineering decisions across the board and be able to make our facilities resilient to whatever may happen. You know, could be a lot of things that ultimately could affect environmental conditions and affect our facilities. The goal is resiliency across the board. Do you want to add? General Green. Yes, sir. I would like to add, for Langley Air Force Base, which is in that same region, we have already raised the elevations of our new construction. We have already moved mechanical rooms and things like that from basements up to higher elevations. So part of it is just, as you said, prudent planning, and I think that is being done both on the Navy side but certainly on the Air Force side. We are already altering how we do the engineering work to protect our facilities and our missions. EXCESS CAPACITY AT MILITARY INSTALLATIONS Mr. Taylor. Appreciate that. You know, we were talking about realignment and talking about getting monies for demo, and General, we spoke about it as well. And I have had meetings with senior military leaders, installation commanders, talking about excess infrastructure and the cost. And like I just said, I am on the record about that Congress has to also make some tough decisions on that note. But can I just get a quick briefing from each of the services. We talked to the services in OSD and requested, you know, where they are. Can you just speak your current posture as it pertains to excess infrastructure and any plans for targeted demolition going forward? General Bingham. Thank you, Congressman, I appreciate the question. Actually, we have looked at our excess infrastructure. We know we have about 170 million square feet of excess capacity. It is not all contiguous space. So what we did in the Army, we took on an initiative we call the reduce the footprint, which we were able to consolidate our soldiers into our best facilities first, use conversion authority and then demo those facilities that were in poor and failing condition that we know we wouldn't use again. We have really taken on our demolition budget since 2016. We have increased it significantly. And I can tell you in 2018, we have about $100 million that is going toward demolition. In fiscal year 2019, we more than doubled that, well over $200 million. So we are taking it seriously and we are trying to rid ourselves of that excess because we know it is costing dollars. Mr. Taylor. Thank you. Admiral Smith. Now, Congressman, so for the Navy we estimate we have between 7 percent and 9 percent excess infrastructure right now. This year, with the increased budget proposal, for the first time in several years, we are putting a significant amount of money to demolition in the order of $122 million. We have currently got an integrated priority list of about $311 million, so about a little of a third we are going after in 2019. That compares to zero dollars to demolition last year, $8 million the year before. So much like the Army and I am sure all the services, we are going after it this year as proposed budgets gives us that opportunity to do it. Mr. Taylor. Thank you. General Coglianese. Congressman, thanks for the question. We talked a little bit about this yesterday. In the infrastructure reset program that was signed by the commandant, it is really a Comprehensive program and demolition is a big part of it. We are looking to reduce footprint over the FYDP by 11 million square feet. We are investing in PB 2019 is 1.8 million square feet, about $77 million. And what does that give us? In the strategy itself, we want to reduce and optimize the infrastructure footprint, make facilities investments at the lowest lifecycle cost and leverage the best practices and process and align the installation management enterprise we govern. So we signed-- recently the Assistant Commandant of the Marine Corps signed a governance. And the 1.8 million square feet, what does that equate to? It is really a great return on investment because it is about $19.4 million of cost avoidance or ability to invest in another program, you know? And so I said $77 million for PB 2019 pretty much with a goal across the FYDP to reduce 11 million square feet just for this FYDP. So we are going after it. The low-hanging fruit is easy right now. I mean, the demolition to go after it and as we get rid of that excess and we kind of consolidate our forces and better use of space management of our facilities it will be harder to get after that next round, but thank you for the question. I think it is a really important part of our strategy. General Green. Thank you, sir. So like the others we are working on space management and how we utilize that. We don't have so many units that have stood down and so we don't have vacant buildings per se so it is about how we use the space within that. And then as you hear the Air Force talk about excess capacity much of that is also associated with ramp space, where we have the ability to park aircraft. And so as long as we have got missions there it is about how we need to better leverage our facility space and consolidations, and you have given us some new authorities from Congress to do that better in the future. And then we spend roughly--we have budgeted roughly about $25 million a year, give or take, but we are usually over- executing that amount to do consolidation and demolition. Mr. Taylor. Thank you, General. Thank you. Thank you, Mr. Chairman. Mr. Dent. Mr. Valadao. NAVAL AIR STATION LEMOORE MILITARY CONSTRUCTION Mr. Valadao. Thank you, Mr. Chairman. Thank you, guests, for your time today and for your service to our nation. My questions are mostly aimed at Vice Admiral Smith, but if the Assistant Secretary wants to touch in, please do. The Navy's installation master plan for 2030 for Naval Air Station Lemoore highlights that a large portion of then-- Lemoore facilities and infrastructure are original to the base, which was commissioned in 1961. The master plan lists a series of prioritized military construction projects needed to support the Navy's vision for NAS Lemoore as the premier strike fighter master jet base. However, the master plan separates master plan priority projects and those needed to support the arrival of the F-35C. Given the high importance of both new mission military construction and the maintenance of existing facilities, how does the Navy plan to prioritize investments, support current missions and plan growth in personnel and families? And I would like something touched upon especially with the hospital, clinic and how our sailors have access to and their families health care there on the base? Admiral Smith. Yes, sir, Congressman, thank you. And thank you for that. So as you are aware, between fiscal year 2015 to 2023 we are putting in over half a billion dollars into Lemoore. The preponderance of that is for F-35. With respect to other parts, especially on the other side of the base on the quality of life side, we have put a lot into the quality of life part of that. And whether it be renovating the gym, putting in treks, the things that you have seen. So it is a balanced approach. Yes, the preponderance is to support F-35 and the requirements that that aircraft has. With respect to the clinic, the branch medical clinic there, so after our discussion yesterday I went and pulled some more data on that. So OB deliveries are done at a local clinic by Navy physicians. Based upon some of the concerns that were raised that you articulated yesterday, the acute care clinic hours have expanded so they now run from 7:00 in the morning until 11:00 at night. For inpatient they are using Hanford Hospital. So I spoke to the surgeon general's office yesterday to relay the concerns that you are hearing from our sailors that are out there to make sure he understands that. And we are aware of that to continue to work for and address those concerns as best we can, sir. HOSPITALS INSTEAD OF CLINICS ON INSTALLATIONS Mr. Valadao. Okay. Well, and the clinic used to be a hospital there on the base---- Admiral Smith. Yes. Mr. Valadao [continuing]. Was something that I have heard from a lot of sailors. Every time I go out anywhere around the world and visit with our sailors or even there on the base that is the first thing they mention is they always appreciated having that hospital knowing that their family had somewhere close to home in case of an emergency for their loved ones. DROUGHT CONDITIONS The other question has a little bit to do with the drought. California has been experiencing historic drought conditions. I mean, it got a little bit better last year, but this past year we are kind of on path again. And as you know, such conditions change the operating environment at Naval Air Station Lemoore. During dry periods, dust, ground debris and increased bird strikes exacerbate operational safety challenges for flight operations. Additionally, drought conditions increase public health concerns for military personnel and dependents, specifically at NAS Lemoore where valley fever poses a threat. What is the current status of drought preparedness and resilience at NAS Lemoore? And are there any additional actions that can be taken to improve operations out there? Admiral Smith. Yes, sir. So as you know, there are 12,000 acres out there that is ag land and to be able to farm that land water is essential. And so Lemoore is working closely with the water district out there, as you are well-aware. This also kind of ties into what we are doing to the question we discussed yesterday with respect to the solar PV that is going out there. So that is solar PV. We are providing 930 acres for that. That will not provide any power to Lemoore. That will go into the local grid. Mr. Valadao. Yes. Admiral Smith. The delay right now is because they are trying to find a utility provider who will actually connect to the grid. So the in-kind we will get back from that is a 4.5 megawatt generator to power the critical facilities in case of a loss. So it is a win-win for us because it does give us additional redundancy and capability from an energy needs perspective, but it also takes of that 12,000 acres it is taking almost 1,000 out of the agricultural requirement with the drainage settlement agreement and then the company that runs the PV farm is responsible for maintaining BASH requirements there. Mr. Valadao. All right. Well, thank you. And Mr. Chairman, I yield back. Mr. Dent. Mr. Fortenberry: ENERGY RESILIENCE Mr. Fortenberry. Thank you, Mr. Chairman. Thank you all for appearing before us today. I want to ask you about three areas of policy concern, two of which, or all three actually, were in the initial statement: The conservation initiatives, the issue of energy resilience, as well as what you all keep referring to as BRAC. And so we are going to have a little challenging conversation on that. First, regarding conservation, I was pleasantly surprised to see a lengthy section in your written testimony about the DOD's initiatives in this regard. I have recently introduced a bill. It is called Recovering America's Wildlife Act. And interesting you point out that there is a surge of potential endangered species being listed coming. And that the DOD is orienting itself to participate in preventative measures in that regard. This is exactly what the Recovering America's Wildlife Act does. Bipartisan initiative taking some monies that come from our mineral revenues, off of federal lands and plowing it back into state wildlife management plans, which is a federal mandate. In Nebraska we work voluntarily giving landowners choice in this regard. But the DOD as a part of your policy planning culture should really take a look at this because it could help us create the continuity of habitat with existing public lands, as you are already doing, that addressed environmental species problems. Because once that starts you are in the midst of litigation, the regulation moves to litigation it is a horrible mess. So not many people win, not many communities win. Species don't necessarily win because it takes so long. So this is an innovative approach to, again, trying to provide the continuity of habitat by funding existing state initiatives with federal mineral resource revenues, and so it is actually being a good steward of the revenues that we have or the resources that we have, revenue extraction back into resource recovery. So Recovering America's Wildlife Act I would like you, again, to be aware of this and to potentially incorporate it into your policy planning culture, because it could greatly, I think, assist you in the larger goal. Our problem is we address this in small verticals rather than in a continuity. And given the large footprint of the DOD particularly with land holdings, this could be extremely helpful. So I am very pleased that you raised this in the testimony. So can I have some mild commitment that you will integrate this into your policy planning? Mr. Niemeyer. Congressman, we will definitely take a look at it. And as I said in my written statement, we are working really diligently with Department of Interior (DOI) across the board to---- Mr. Fortenberry. I saw that, yes. Mr. Niemeyer [continuing]. To see what we can do to get in front and proactively manage. We are not in any way trying to dismiss the Endangered Species Act. We think it is absolutely critical---- Mr. Fortenberry. Well, this is an attempt to move from, again, regulation and litigation---- Mr. Niemeyer. Right, right. Mr. Fortenberry [continuing]. To collaboration---- Mr. Niemeyer. Yes, that is---- Mr. Fortenberry [continuing]. Which ends up saving all of us a huge amount of money in the long run and actually achieves the mission of the Endangered Species Act. So it is a novel approach. Mr. Niemeyer. Well, we are working very consistently with what you are proposing there. Mr. Fortenberry. Well, we are also working with the Department of Interior in this regard, so we may be back in touch. OK? Mr. Niemeyer. Yes. Mr. Fortenberry. Energy resilience you have a 25 percent goal of use of renewable resources by 2025. How are we coming? Mr. Niemeyer. Coming along. Mr. Fortenberry. What is the best case story out there, the best return on investment? Do you have some case studies that are showing that could be scalable templates that could be implemented? Mr. Niemeyer. We are continuing to look at all sources of energy. Renewable is one source, but we are looking across the board. We definitely have a desire to want to take our goals with---- Mr. Fortenberry. Yes, but that is your mandate, 25 percent renewable by 2025. Mr. Niemeyer. Right. We are working towards that goal, but honestly we are as concerned with providing security, energy security to our most critical facilities. To what degree that goal is compatible with our overwhelming compelling urgency to making sure our critical facilities can be powered---- Mr. Fortenberry. Okay, do you have case studies or actually implemented processes that could be scalable across the system that meet your goal for security and energy resilience but actually is consistent with the broader mandate here? Mr. Niemeyer. We are working across a whole range of efforts. Mr. Fortenberry. But specifics? I need examples. Mr. Niemeyer. Certainly, if I can ask the services---- Mr. Fortenberry. Examples? Mr. Niemeyer [continuing]. To provide specifics? Mr. Fortenberry. Okay. General Coglianese. Yes, sir, thanks for the question again and the support. So each installation is different because of the environments, and I will give you a good example of energy security. And we are---- Mr. Fortenberry. I have two military installations, Strategic Command and Offutt Air Force Base, do I get it. General Coglianese. Yes, sir. Mr. Fortenberry. I mean, so but just back to specifics---- General Coglianese. Sure. Mr. Fortenberry [continuing]. That are might possibly scalable. I am sorry. I am just running out of time. I need to hurry along. General Coglianese. Yes, sir. So an example is Miramar where we are taking methane off a---- Mr. Fortenberry. Right. General Coglianese [continuing]. A wasteland---- Mr. Fortenberry. Good. General Coglianese. It is how we are getting methane. We will be putting a microgrid in there and we will be able to-- our goal is to operate off the grid. Mr. Fortenberry. Okay, let me ask you this. That is great. That is very helpful. What is the process internally by which you are sharing best practices? Is there some continuity of initiatives going on or is it up to each base to sort of crate its own culture in this regard? Mr. Niemeyer. At the Office of Secretary of Defense (OSD) level we are working very closely with the services. It is every project that comes in we are taking a look at where can we use that? Those lessons are in another---- Mr. Fortenberry. Okay, I may come back to this in the next round because I am running out of time, but thank you. Thank you. So we--hold the thought so let us unpack it a little bit further. General Coglianese. Yes, sir. BRAC NAMING Mr. Fortenberry. One more comment, Mr. Chairman, if you will indulge me? Look, we keep doing this--we keep using the-- it is now a word, BRAC. Does anybody remember what it means? Yes, but it has become its own word like Xerox means copy. So we need to move past this, okay? That was somebody else's idea 25 years ago. Not the intention necessarily, but the way in which we speak about this because we are not implementing it in this way. So I am proposing this to you all as I have proposed before previous panels for years that we move away from the term because the term causes such indigestion. Okay? This is a new term: MISC. It stands for miscellaneous military installation savings commission. It is a much less threatening kind of prospect and it is consistent with what you all are already doing. And if I could, maybe in the next round, and perhaps you said this earlier, I apologize because I wasn't here, but I would like to know the excess inventory across all branches. So if we could just have that in the forefront of our mind again. But when you start saying this closes, this closes, which is, frankly, not real in the environment we are up here, rather than well, look, we have got this outbuilding here that could be sold to Lincoln Parks and Recreation and then carved out. That is a higher and better use for the community. That is consistent with this and it is a lot less frightening and it is more politically viable than the large- scale base realignment closure commission, which again, that is just not reality. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mr. Fortenberry. I have an acronym I am gonna share with you a little later. [Laughter.] Thank you. Mr. Fortenberry. Stop. [Laughter.] Mr. Dent. I would like to recognize the ranking member, Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you---- Mr. Dent. We are starting the second round of questioning. DETAINEES Ms. Wasserman Schultz. Thank you, Mr. Chairman. Just to put a bow on the end of my last series of questions, I had a chance to look up what the average cost according to the Federal Register is of incarcerating federal inmates. Fiscal year 2015 is the most recent year we have numbers for. $31,977.65 as opposed to a $1.7 million cost per detainee at GTMO--a colossal waste of money and an example of backward priorities. BORDER WALL Mr. Secretary, I have questions for you about the border wall. How would moving money from other priority projects, which we have already appropriated for in the omnibus bill, using existing DOD authorities to build part of the border wall, not circumvent Congress' appropriations authority, which was decided in the omnibus appropriations bill? Mr. Niemeyer. We don't have a lot of ability to do that. We can use bid savings, for instance, collectively. All the projects we executed we have excess money we could then, you know, identify that as a source. We do have a very limited ability with consultation with Congress. It would require us to come over and talk to you. And if we feel we have a compelling need that we can find lower priority projects and to further execution--cancel them to further execution take those dollars and apply it to what we would have to convince you is a more compelling requirement and then have the ability to backfill those projects in the future. Ms. Wasserman Schultz. What type of projects would the Department not be able to execute if you choose to use that authority to execute a border wall? Mr. Niemeyer. Oh, I can't say we would not execute it. It would maybe be defer. It would be project that we feel we don't have a compelling need to carry out in that year. Ms. Wasserman Schultz. What type? What type? Mr. Niemeyer. Oh, gosh, I am---- Ms. Wasserman Schultz. We need more specifics. Mr. Niemeyer. Oh, I couldn't tell you right now what specific project or what types of projects. Ms. Wasserman Schultz. Respectfully, if you already have been asked, as I know you have been, to draft potential options for how to move money to build whatever portion of the border wall you can, you do have an idea specifically of what kind of projects would not be able to be executed, would be delayed---- Mr. Niemeyer. Yes, ma'am. Ms. Wasserman Schultz [continuing]. In order to--yes. Mr. Niemeyer. We have not been asked to get into that level of detail. All we are looking at is exploring what is even the range of congressional law or congressional authorizations, what is that range? And we haven't gotten to---- Ms. Wasserman Schultz. Again, respectfully---- Mr. Niemeyer [continuing]. Build the list. Ms. Wasserman Schultz [continuing]. If you know that 37 miles of the wall in Arizona would be built then you know what projects you would be moving the money from to be able to build that 37 miles of wall. If you know where you would be able to build it, then you know from where you would take it to build it. Mr. Niemeyer. We have not built a list of projects from prior years that we would defer, not cancel, and then more importantly the first thing I would want to do is look at prior year unobligated balances and apply that first. We don't have to change any priority. We don't have to effect any other MILCON project. Ms. Wasserman Schultz. So what plans are you drafting then? Mr. Niemeyer. It is more just exploring options. It is really is looking at the range of what authorities exist. Ms. Wasserman Schultz. So, you are exploring options without any detail at all? Mr. Niemeyer. At this point we have not been asked for more detail. Ms. Wasserman Schultz. Okay, you understand that that doesn't make any sense, right? You have to know where you are taking the money from in order to know how much you are going to have, in order to build what it is you are planning. Mr. Niemeyer. So we laid out for the president a range of options of which he has chosen to deploy forces to the border consistent with previous administrations. The other options really haven't gone beyond just hey, they are out there. We have not actually been asked to take any action doing the planning. Ms. Wasserman Schultz. Okay. The chairman and I just had an opportunity to go down to Puerto Rico to look at the impact that Hurricane Maria and Irma have had on the military facilities there. They are in pretty bad shape. Mr. Niemeyer. Yes, ma'am. Ms. Wasserman Schultz. It is really not good. One of the biggest issues that you have is energy resilience. They were without power for days. Mr. Niemeyer. Yes, ma'am. Ms. Wasserman Schultz. You really haven't mentioned Puerto Rico at all. What is it that you are doing to make sure that this key component of our defense infrastructure, which is energy resiliency is a high priority? Mr. Niemeyer. And as you know, PREPA, I mean there was a lot of concerns about the entire island and they are in the process right now of reassessing the entire utility infrastructure. And the Corps of Engineers has got a big part of that long-term planning and ultimately having crucial resiliency for the entire island. Fort Buchanan had some redundant power sources. Those did survive, but it is still long term it may not be the answer. So that is part of what we are looking across the board. Where can we enhance our energy security and resilience, as opposed to other priorities? Ms. Wasserman Schultz. There were numerous stories that we have heard about how services are still using World War II era facilities. We saw some of those facilities. They were in bad shape to begin with and we gave them the authority in a supplemental to build beyond just the existing standard. How many World War II era facilities are there across the entire DOD enterprise? Mr. Niemeyer. Yes, I don't know that off the top of my head how many older facilities we had. You know a lot them are historical so they are still being well-used. And so I would have to go back and pull, you know, exactly the data pre-World War II, which I assume we would know that are obsolete or no longer needed is what you are looking for, right? I can take that for the record. Ms. Wasserman Schultz. Thank you, Mr. Chairman. I yield back. Mr. Dent. Thank you. Mr. Niemeyer, I was going to ask quickly about--it is a mouthful--addressing PFOS and PFOA. I won't read the acronym. And by the way, on the acronym came up with one, didn't I? Mr. Fortenberry. It is quite good actually. Mr. Dent. FORT, funding our readiness together okay---- [Laughter.] As opposed to this. Mr.----[Laughter.] Fortenberry, so okay, but---- Mr. Fortenberry. It is brilliant, Mr. Chair. [Laughter.] Ms. Wasserman Schultz. You guys have another side option if you quit your day job. Mr. Dent. That took me 15 seconds---- Ms. Wasserman Schultz. Coming up with acronyms. [Laughter.] Mr. Dent. But addressing the PFOS and PFOA, DOD has tested all 524 DOD-owned drinking systems worldwide. Can you provide a list of the affected installations broken out by BRAC active and reserve component and what appropriations account was responsible for funding that cleanup? Mr. Niemeyer. Yes, ma'am. Yes, sir, I can do that. Mr. Dent. That would be great. And then---- Mr. Niemeyer. I can't do it right now. Mr. Dent. Yes, I understand. [Laughter.] So at a later date, I understand. I didn't expect you to have that at your fingertips, but that is a very important issue to some of us and some of our communities where we have had these---- Mr. Niemeyer. It is an issue which we are spending so much time in the department on that, Mr. Chairman, with the services coming up with the right way to respond. We would love to continue to work with EPA. I think some of that requires a federal response how we are going to address that issue. Mr. Dent. Okay. I would like to now move--this is kind of more or less to all the witnesses before us today. The fiscal year 2019 budget request proposes a decrease of funding in every reserve and guard component construction account. The guard and reserves have pressing needs for access control points and ranges, in some locations aircraft hangars. For example, the Air Force Reserve has two hangars and one main gate on the Air Force unfunded priority lists and Air Force Reserve has one hangar and two small arms ranges also on the unfunded priority list. Of note the Army and active reserve components have not submitted any unfunded priority lists at this moment. How can it be expected the guard and reserve to be properly trained if you are providing them inadequate resources for their facility? Maybe I would start with the Air Force and we will go back to the Army. We will do it that way. General Green. So thank you, Mr. Chairman. Thank you, Mr. Chairman. the resources provided for the guard and reserve mirror those provided to the active component. And so in this case when we talk about a reduction in funds this year it mirrors the reduction in funds that the active Air Force has. So it has really been about prioritizing amongst all of our ranges of missions in accordance with the national defense strategy. So as we focused on readiness and lethality and modernization this year, we made choices that resulted in reduced accounts across the active guard and reserve components for facilities and infrastructure. Mr. Dent. Could you also answer this, too? Are of the projects on the unfunded priority list for the Air Guard and Reserve requested in the future defense program or are they truly unfunded requirements? General Green. Typically we have brought forward items that were already in the future years' defense program, and I would have to go back and look at each individual project, but that is how we have done that on both the active guard and reserve in the past is if we can accelerate a program or a project as appropriate that is what we choose to ask for your support in doing. Mr. Dent. And I would like--General Bingham, would you like to add anything? Thank you. General Bingham. Thank you, Chairman Dent. As you mentioned, we did not submit MILCON on the CSA's UFR list was not on it. I will tell you though that as a total Army the projects that we have in fiscal year 2019 are well-represented across both the guard, reserves as well as the active component. And so what we do we prioritize those facilities as it relates to operational requirements, whether they be motor pools, airfields, railheads or the readiness centers in the case of the guard and reserves to make sure that we across the force have what we need. Mr. Dent. Anybody else, either the admiral or general? Either of you want to add anything on this issue? Admiral Smith. So I don't have any--I mean, we are working on our Navy Operational Support Center (NOSCs) and we have got consolidation projects we are trying to bring in the fence line. There are no specific MILCONs this year for the NOSCs. Mr. Dent. Okay. General. General Coglianese. Chairman, I know just on sustainment we have increased from 2018 to 2019 on FSRM for MARFORRES and also construction. So it is pretty stead for us and no decrease as far as I have in front of me. I can get back to you the exact numbers though, sir. Mr. Dent. Okay. Thank you, General. At this time I would like to recognize the gentlelady from California, Miss Lee. Ms. Lee. Thanks very much. Let me ask Secretary Niemeyer about the issue as it relates to waste, fraud and abuse in general. Now, for years I have been working with Congressman Burgess and other Republicans. We have been doing this in a bipartisan way to try to get an audit of the Pentagon. Three years delayed now, who knows when it is gonna be complete. Several years ago it was reported in the Washington Post that maybe $125 billion in waste, fraud and abuse. That report was somehow squashed. Listening today to the comments with regard to the border wall, the possible $69 million for maybe 41 or less inmates at Guantanamo, and this upcoming military parade. I mean, this is one of the reasons--I don't vote for the defense budget. I vote for our budget generally here because this is more about our troops and quality of life. But how do you see this whole issue of waste, fraud and abuse within your jurisdiction and what can we do to make sure that we move the Pentagon along if that is something that you can do? Because this is getting to be outrageous because it is taking away from quality of life priorities for our troops. Mr. Niemeyer. So each of the services and and the military departments--I mean, military departments and defense agencies are dedicated and working on it right now. We have a process where we are doing internal audits. It is called FIRE is the acronym. We are spending a lot of time and resources on trying to get to an auditable financial statement for each of the servicers that we can present to Congress. It is an effort which has been delayed. It has been going on for a while. Our goal here is to be as transparent, as accountable for every dollar we spend. I know that is our priority right now. Secretary Mattis has made it very clear to us. So we are committed to trying to get to auditable financial statements for each defense agency. You saw DLA have theirs released a few months ago. Other agencies will follow. Services aren't that far behind. Actually Marine Corps is doing some good work. And so I think we are getting there. It is definitely taking longer than the American people deserve or expect. But we are making some good progress, particularly in the last 2 years on trying to get to those financial statements. Ms. Lee. Do you have any role in this upcoming, quote, military parade that this president is presenting to the public for whatever reasons he is doing this? Mr. Niemeyer. No, ma'am, I do not. Ms. Lee. You don't have any--you don't have any fiscal responsibility---- Mr. Niemeyer. No, ma'am. Ms. Lee [continuing]. For this parade? Mr. Niemeyer. No. Ms. Lee. Okay. Let me ask you with regard to your contracting as it relates to minority, women-owned, veteran- owned businesses. I am a former small business owner, 11 years 8-A (it's a specific class) contractor. And it was really hard to break into DOD. I wanted to find out right now how your agency is doing as it relates to contracting and subcontracting with minority and women-owned and veteran-owned businesses? Mr. Niemeyer. So my office works within the secretary of acquisition sustainment and that is a top priority of Ms. Lord is to take a look at what can we do to break down the barriers to have innovative young businesses, small businesses come up with an adaptive acquisition framework where we can open the doors to some of these smaller businesses with their innovative ideas and come in and do business with the department of Defense? It is difficult not just for small businesses but for all businesses to have to enter into the bureaucracy of the federal acquisition regulations and other forms and all kinds of things we impose upon our contractors. We are diligently working not just for the bigs and the mids, but also those small businesses to what degree we can incentivize them to want to continue to do business with the department. Ms. Lee. Okay. Not just small businesses, mind you. Mr. Niemeyer. No. Yes. Ms. Lee. Do you know the distinction? Mr. Niemeyer. Oh, yes, ma'am, I do. Ms. Lee [continuing]. Between minority-owned business---- Mr. Niemeyer. Yes, ma'am. Ms. Lee [continuing]. Women-owned businesses, veteran-owned businesses and small businesses because if you have the reporting data--if you have the data it will show, as many agencies show that the small businesses contracting and subcontracting may be a bit better than the contracting with minority-owned businesses, specifically African American-owned businesses and women-owned businesses and veteran-owned businesses. Mr. Niemeyer. So we track by categories making sure we meet our quotas across the board for the full range acquisition programs within DOD. Ms. Lee. Could you submit to us the report? Mr. Niemeyer. Yes, ma'am. Ms. Lee. And I would like to see, if you can, disaggregate the data based on gender and ethnicity. Mr. Niemeyer. Yes, ma'am. Ms. Lee. Okay. Thank you very much. Thank you, Mr. Chairman. Mr. Dent. Mr. Fortenberry. Mr. Fortenberry. Thank you, Mr. Chairman. General, I interrupted you, so if you would like to continue your train of thought about best practices in terms of implementation of stable energy projects? And then if someone would comment further as to how this is discussed internally in terms of sharing templates or ideas, just tell me the process. That would be helpful. General Coglianese. So with the goal, and we have always had the goal. I mean, our installations are combat power, to project combat power in time of peace and support a national defense period. And that is what we are out there for. So over the years we have done some, I think, some really good projects to force the ability to operate off the grid, whether it is pulling methane off the San Diego, whether it is co-generation plants at twentynine Palms, which we would be able to operate off the grid, whether it is Albany, Georgia, a depot, which we are basically net zero down there. But it is about operating combat power and each installation depending, as you know, sir, whether you are in a warm hemisphere area or a desert or a mountainous area, what renewables, what type of energy resiliency, it applies more geographically than it. We share that within the Department of Navy and then with OSD. So I think the information is out there. Now we just have to make the right investments, I think, to ensure not just the renewable energy but that microgrid ability or wheel energy around that base in order to generate combat power. Mr. Fortenberry. Look, your comments are fair, that your mission is to keep us safe and you have to do that through the means that are available to you. However, because again, the footprint is so large and the investment is so big, sometimes what by thinking constructively and creatively you actually can, for the long term, enhance the ability to deliver a mission under adverse circumstances while also furthering a larger societal goal. And you have talked about it here in terms of environmental protection, but also in terms of establishing the next phases and generations of what we need to move to anyway in terms of bridging to a more sustainable future. So it is not putting that fundamental mission on the DOD but to the degree you can partner with it and leverage it for your own sake, but also furthering this broad societal public good is necessary. That is why I am trying to understand best practices that are out there and then the internal dynamics in which those are shared. From my perspective, looking from the outside in, dealing primarily with, not in this capacity but in who I represent back home, we have just kicked off the initiative to try to create a working group around deeper exploration of how is geothermal possible, is wind where we are possible. Solar has potential, but there are some complexities where I live. So can anyone address this? Yes, General? General Bingham. Thank you, Vice Chairman Fortenberry, and I would like to comment on when I talked about partnerships and working outside the gates, if you will. When you talk about it, think about energy security and resilience in the state of Hawaii right now, the Army has taken on a partnership with Hawaii Electric Company for a 50-megawatt biofuel plant. And the intent of that is in the case of a natural disaster or power interruption we are able to sustain the whole of Schofield Barracks, Wheeler Airfield, Kunia Field and one of the local hospitals for a period of 30 days. It is above the tsunami zone and we think that is a model, a partnership---- Mr. Fortenberry. Okay, all right, well, you now live in a state where there is public power, so sometimes it is a little easier for us to actually urge a municipal entity to partner constructively with another municipal entity and that is what we are trying to do. But there are all types of distributed generation options that are out there, and again, they might be able to incorporate depending on circumstances, sustainable energy models. Mr. Niemeyer. I will also say that the Army and the Air Force actually collaborated their efforts. They took their energy offices and combined them into one. So they are taking the lessons learned every day and they are applying them. And now we are looking at, okay, now let us bundle them at more than one installation. Let us look at our range of missions as to what we can do working with a local utility company on addressing the utility needs without just having to be in these stovepipes. So there is a lot of that collaboration going on right now within DOD. Mr. Fortenberry. Okay, good. Yes, sir? Admiral Smith. Sir, I was really going to echo the same thing. So the Navy has got an office that focuses on this. They also work collaboratively and share the---- Mr. Fortenberry. Called the Energy Office? Admiral Smith. Yes sir. REPO, Renewable Energy Office that is now actually Resiliency Office, that resides in Naval Facilities Command and we have done a lot of work over the past couple years putting in projects. We have got a lot of projects going right now. And I can easily get you a list of what has been done and what is happening with specifics. Mr. Fortenberry. Well, that is okay. That is just more work for you guys, because I would just ask you to keep doing this because it is important for this broader reasons that we just discussed here. But again, I don't know if it is a mandate or a strong suggestion, somewhere embedded in law, but by 2025, 25 percent now. I hear what you are saying about geographic diversity and it has got to be consistent with the fundamental mission. I get that, but I think it can be. So we are pushing on this back home as well just to let you all know, so I may have officials at the installations that I work directly would come directly. Would that be all right, Mr. Secretary? Mr. Niemeyer. Absolutely. Mr. Fortenberry. Secondly, back to the Military Installation Savings Commission, what is just a quick summary of your excess inventory across the branches? General Green. So we will go from my end. The last reported savings that we had was roughly 30 percent or excess. The majority of that, as I alluded to earlier, is really built upon ramps. And so we are right now working toward getting our arms better around facilities. So people normally associate facilities and excess facilities, and I don't have a good figure to give you. Mr. Fortenberry. What do you mean on ramps? Runway? General Green. So bases, so when we talk about ramps is where we park out aircraft and so if you have reduced the number of aircraft in a wing over time or reduced the number of squadrons, then we have excess parking spaces. Mr. Fortenberry. So that is a little bit harder to deal with. I think the types of things that we are talking about what we spun off or sold---- General Green. Yes sir. Mr. Fortenberry [continuing]. Or integrated in the community in a constructive manner so you are not disrupting community lives. General Green. Yes sir, so what you are looking for I don't have at hand right now to tell you. We will come back and get you the best answer we can. Mr. Fortenberry. So that 30 percent figure includes these-- -- General Green [continuing]. Excess ramps, yes sir. Mr. Fortenberry. Well, these large infrastructure that in all likelihood doesn't have a repurposed use for some type of community need. General Green. Yes, sir, that is correct. General Coglianese. Sir so, we know right now what we have is--just in Q3 and Q4, 17 percent or is in the facility or Q3 to Q4 conditions. The Q4 we would say we need to demo now. So there are about 733 buildings that we know we can get rid of now. But part of the infrastructure reset is recapitalization is as important or more important sometimes than MILCON, taking that money from the MILCON, as opposed to new platform from the MILCON. So as we are doing our basic facility requirements, so what is the infantry battalion rate space-wise? And that is where we are coming up. This is where you rate and this is what you should have. And if you are a typical Marine and if you get a facility you will expand that facility. You will use it for martial arts. You will use it for storage of equipment and things like that. So we are coming up with standards. We actually have them now, and we are consolidating Marines, moving Marines from barracks into, you know, consolidating. Maybe they were spread out in two barracks and put them in one to get the occupancy rate. And as we do then then we can recapitalize that building for another purpose or if it is not in good condition to demo it. So right now we know low-hanging fruit, there are, like, 733 Q4 buildings. Mr. Fortenberry. So I think this question of excess inventory perhaps is too broad. There are a lot of subsets of this. As you are talking about that kind of infrastructure really transitioning into something else, minimal likelihood, so it has lessening and lessening value. You are talking about a consolidation of assets that you already have versus in my mind I am thinking of, again, going back to BRAC where you are actually spinning off or closing certain things. But rather than looking at it through that lens, how do you actually integrate those into some other community use. So I think that we need some subsets of what excess inventory means. I think that is---- Mr. Niemeyer. And Congressman, also it is not just the savings. It is military value. The biggest part of the BRAC process---- Mr. Fortenberry. Well, that is savings---- Mr. Niemeyer. But what I am getting at is---- Mr. Fortenberry [continuing]. In that sense. Mr. Niemeyer [continuing]. We have to assess what future value would those facilities be to future missions? So we are having to do that level of complexity, too. Mr. Fortenberry. Okay, but one more moment, Mr. Chairman, if you would? But the general suggests, I guess we have heard for many years, particularly from the Air Force, is you have got 30 percent excess inventory. Well, what that implies is that you have got wasted space sitting out there. We are just paying electrical utility bills or it is not meeting its highest and best use in terms of community repurposing. But it is not exactly right. That is what I am trying to get to. What is the percent of assets that could be sold off, reintegrated into or repurposed into another community use or repurposed as you are suggesting into a higher value for the military itself. Mr. Niemeyer. So we have been working on that. Congress has given us authorities over 15 years to take an unutilized or sub-optimized piece of property or a building and go ahead and spin it off. Go ahead and lease it, give to somebody else, get it off our inventory. We have been working at that. We have been working at demolition. So we have been exploring those other ways to reduce that number of excess facilities. We are getting to the point where all the low-hanging fruit is done. Now, we have got to get to a bigger process here that allows us to think like holistically at the enterprise. Mr. Fortenberry. Thank you, Mr. Chairman. Mr. Dent. Sounds like you are advocating for a BRAC in this--or a FORT, a MISC? Okay, so with that---- Mr. Fortenberry. A MISC. Mr. Dent. So I would like to, at this time, recognize the ranking member for any closing comments she might have. Ms. Wasserman Schultz. No closing comments, just a motion to include this graph, which indicates MILCONs as a percent of total DOD appropriation for the record. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Without objection. I have other questions that I will ask, but not today. I will submit them to you and then you can then send them back to us with responses on the official record. So with that, thank you all for being here and this committee meeting is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, April 17, 2018. MEMBERS' DAY ---------- WITNESS HON. TIM WALZ, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MINNESOTA Opening Statement of Chairman Dent Mr. Dent. Good afternoon and I want to welcome everyone to today's Member Day hearing for MilCon, VA and Related Agencies. Chairman Frelinghuysen asked all subcommittees to hold these hearings to ensure that all members have an opportunity to provide input in the appropriations for fiscal year 2019. We are pleased that we have six members here to discuss a variety of military construction and veterans programs. I would like to recognize my friend and Ranking Member Ms. Wasserman Schultz for any remarks she would like to make before we get into the hearing testimony. Opening Statement of Ranking Member Wasserman Schultz Ms. Wasserman Schultz. Thank you, Mr. Chairman. Looking forward to hearing from our colleagues today, each of whom I am sure will provide us an important perspective, that is why being a representative body like the House of Representatives gives us a chance to really on a Member Day like this to look through their lens. But most importantly, I think it is especially appropriate to acknowledge your announcement, your service today. You announced that you will be resigning from the House of Representatives in several weeks, and being a classmate of yours, having been elected together in the class of 2004, serving together side by side on this committee, having an opportunity to be your ranking member and to work with you, you have always been not only incredibly fair but have provided a perspective that was sorely missed and too infrequent, promoting bipartisanship, being rational, reasonable and straightforward and having the kind of integrity that your constituents deserve and that Americans deserve. And most importantly, it has been incredible to get to know you and to call you a friend and I look forward to your last few weeks. But we know you will be gone, but never forgotten and will continue to serve this country in other ways. Mr. Dent. Well, thank you, Congresswoman Wasserman Schultz, for those very kind words. It has been a pleasure serving with you and I remember we came into Congress together in 2004, elected in 2004, we were there with our young families and they are a little less young now and so are we but it has just been a pleasure serving with you and, frankly, everybody on this subcommittee and the full House. I've got to tell you, everybody is a friend here and I just want to thank you for the kind and generous words. And I know that all of you will carry on the great traditions of this institution and this subcommittee which has had a great tradition of bipartisan cooperation. So, it is with mixed emotions that I am leaving. But nonetheless I thought it was just the right time and I will have more to say about it in the not too distant future, but thank you again and I appreciate it. And so, without objection, I would just like to mention that your written statements will be entered into the record and please feel free to summarize your remarks for five minutes and I will go through the announced order. We will first recognize our good friend from Minnesota Tim Walz with whom I went on one of my first CODELs to Iraq and Afghanistan many years ago. Statement of Congressman Walz Mr. Walz. Well, thank you, Mr. Chairman. And I know you are not dead so it is not a eulogy, but I would be remiss if I didn't say it because it is well-earned. Your reputation as a man of his word, integrity, a legislator of thoughtfulness and I think a friend to so many of us and I would be remiss if it is a little selfish, we hate to see you go. This place needs you. It needs the type of person that you are and I think many of us feel that way. And I think it shows that the people up here with the ranking member, Ms. Wasserman Schultz, also a dear friend, appreciate what you have done and of course, the vice chairman, Mr. Fortenberry. As a subcommittee and what you have done on here, you have served veterans well. You have always been there in a bipartisan way as champions to make sure we got this right. And over the years that you served as chairman, Mr. Dent, the appropriations have continued to increase for our warriors at a time of war and that has not gone unnoticed. So, I for one am grateful for your work. This institution will miss you. I think the American people oftentimes, they have good right to be a little bit cynical; they should know that happens here and especially with people like you in this committee is really why we came. So, thank you. Thanks for the opportunity to be here today. Mr. Dent. Thank you. I should mention, too, that Jeff Fortenberry is also our classmate. We all came in together. Mr. Walz. Yes. Mr. Fortenberry. With small kids. Mr. Dent. With small kids except he had five, and all girls. Mr. Walz. Well, thank you, all, for having us here today. Before I get started, I would just like to ask if I could have a couple of things entered into the record. One is a letter from Representatives Brownley and Larson. They request VA in vitro funding and adoption assistance be made a permanent program or extended at least through 2020. I support making this program permanent so our disabled warriors have the opportunity to have families also. And then I request that a table of selected VHA accounts be entered into the record as part of my testimony. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Thank you. And, again, I want to thank this committee and thank the Congress for the appropriations that we have received. This is our sacred responsibility to care for our warriors. We also have a sacred responsibility to look after taxpayer dollars. How that money is spent is critically important, because if it is not targeted at the care of our veterans, it is money wasted and opportunity wasted. And time and again we hear the concerns over privatization of the VA. This budget lends credibility to those concerns and I want to just lay out a few reasons why I think we all need to be concerned. Between fiscal year 2017 and the appropriate levels for 2018, community care will have increased 49 percent. That is not taking into consideration the $4.2 billion in additional emergency spending that we are continuously asked every few months to inject into the system. That is a nine percent increase in care in hospitals and in the clinics. In February when we passed the Bipartisan Budget Act, we included another $4 billion over time for building and improving VA hospitals. That was done with the VSOs, the American Legion, the Disabled American Veterans, everyone, understanding that that money was going to be put into catching up on the backlog of work we need to do on our VA hospitals. But instead of prioritizing that, the budget proposed spending half that money on care in the community. That is after we authorized the $4.2 billion. A huge increase in community care is not enough. This year's budget requests mergers of the medical community care accounts that were congressionally mandated to be kept separate with the medical services account. Let me just make clear what is happening here. We made sure that VA kept this community care money separate when we did the bill in 2015 so that we would know what we are spending. There is no way right now to track what we are getting for our money in care in the community. And to be very clear, I am a veteran myself, I believe it makes sense if somebody needs a blood test in Sleepy Eye Minnesota, don't drive 200 miles to Minneapolis VA to get it; we can do it locally. Those things have always happened in the VA. But what has happened now is a massive shift to the outside with no accountability of it and no spending on the internal capacity. So, we end up in a death spiral. Well, yes, there are less physicians at the VA hospitals so we force more people to the outside. And so, we said let us at least have transparency in our system to make sure these accounts are kept separate. They are now asking us to bleed them together. As an oversight body, we should all be very concerned with this, and making no mistake about it, you will not be able to track where money is spent. You will not be able to know what is happening in the outside. So, instead of addressing the infrastructure, the money will be spent purchasing community care. To put it into perspective, we have spent $38.5 billion since the Phoenix VA crisis. During that time, we had 31,000 vacancies of providers that have not been filled, 4,000 to support physicians in the VA. That $38.5 billion would have paid for everything to fill every single one of those. I am not saying that is what we could have done. I am making the case that this has always been a balance. And when it comes to the veterans service organizations, 90 percent of VFW members who were polled said they wanted their care in the VA. They want that to be the main care. So, what I would like to say and we see this and so we know, we are getting information and the GAO will put out a report soon anecdotally that we are hearing, you go to care in the community, you are put outside the VA, the average wait time in some places is now longer than it would have been if the individual just stayed in VA, it is up to 90 days in some cases. So, what I am asking all of you is this philosophical debate about privatization while valid, does get to the heart of this. Our job is to provide quality care that was promised and must be delivered to our veterans. We have a VA system that in many cases does that well. In other cases, there are gaps in the system and we use community-based purchasing power to do that. All we are asking for is to make sure in this budget that it stays transparent and separate and that we have accountability in this budget about what are we getting on the outside for that. So, I would ask us to keep close eye over that, make sure that this budget has the capacity to analyze what we are getting for it, make sure we are taking into account that every time we transfer money out of capacity into care, we are forcing more veterans outside the system with no coordinated care and no measures of success against what the veterans want. I understand the challenge for elected members of this body. If you ask the general public what we should do, they think they are helping by saying give them a card and let them go wherever they want to. Nobody in the veterans community is saying that. Nobody wants it. There is no evidence to prove it works. In fact, the evidence proves it works worse than that. And I think, again, coming back to you, we are not asking you for more money. We are asking you to make sure that money is targeted, that it is specific and there is data to support where it is going and that we keep this budget separate for community care from the care that is happening inside the VA, because I think when you look at this right now, it is pretty hard to argue. And I would say this, that unsolicited, several weeks ago, the VA put out a memorandum to everyone and said why privatization isn't happening. That is the equivalent of asking all of you not to think about a draft. Of course, you are thinking of the draft, so why did they bring it up? No one asked them about it. They spontaneously said it because it was on the verge or the eve of this budget coming out. So, I want to be very clear that thanks to you and to this committee, fair and appropriate appropriations that let us try and tackle the things that we are obligated to do have been unprecedented, and for that I am grateful, that care at the VA continues to, I believe, improve, but it is a zero sum proposition, every time it falls short, we need to be there. And there is a role as there always has been for care in the community, but allowing this budget to be all put together with no accountability I think would be a dereliction of our first, responsibility to veterans and secondly, to the taxpayers. I don't think you will get your money's worth. So, thank you for the time. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] CARE IN THE COMMUNITY Mr. Dent. Thank you, Representative Walz. I want to thank you, too, for your leadership on the authorizing committee. You are the ranking member and you are obviously a servicemember yourself and very committed. I just want to make this one quick comment. Sooner or later, there will be some authorization, I am told, consolidating the various Choice and care in the community programs. Currently, we are funding Choice through mandatory dollars and, of course, that could all change once the authorization bill is enacted, if it is enacted. And I just wanted to point out one issue, too. Where I live, I will tell you that many of the veterans want to be served in the community where they live. Our closest hospital is 60 miles away in a town called Wilkes-Barre. And that is the number one complaint I hear from my local veterans. They want scheduled procedures to be able to be done closer to home out of convenience for them and their family members. And in many cases they feel they will be going to superior medical institutions and hospitals if given that opportunity. So, I just want to put this on the record. I don't have any questions but thank you for your advocacy and all that you have done for veterans all these years. Ranking member. Ms. Wasserman Schultz. Thank you. Thank you, Mr. Chairman. Congressman Walz, thank you for your service to our country and for your friendship. We have been friends for many years and as you are departing as well, it has really been a pleasure to get to know you. And I certainly hope you are successful in your endeavors. My question for you is do you share--well, let me preface my question because, Mr. Chairman, we have not seriously debated this but we definitely have a slightly different point of view when it comes to the direction that we are going in potentially combining these accounts and veterans seeking service in the community. There is no question that everyone, veteran or not, prefers to get the health care that they need closer to home. Our VA hospital is probably 35 to 40 miles from, say, 35 miles from most constituents in my district. It is also in the middle of a very dense urban area and hard to get to, hard to find parking. But we have solved a lot of that problem through clinics, as has the VA throughout this country. And so, we have a fairly large clinic that was built in Sunrise, in my district, the Bill Kling clinic. Much of the care that is provided at the main hospital is able to be provided there because there is a shuttle that can take veterans from that clinic down to our hospital and overwhelmingly the care that veterans say they seek, they prefer if they can to access it at the VA and believe that that is the care they have the most confidence in. So, with that preface, are you concerned, Representative Walz, about the combining of those accounts really being the first step, intentionally being the first step towards privatization of healthcare services at the VA? Mr. Walz. I am. And I don't deny and I think there is validity in this because the issue is it is not the false choice of privatization versus VA itself; it is a hybrid model of this. Ms. Wasserman Schultz. Yes. Mr. Walz. But the understanding is if this money is cycled away, it drains off and will kill the VA as that institution. I want to be very clear about that. That means all of the research, all the specialty care and those veterans who want to get care close to home, my guess is if they are members of Paralyzed Veterans of America, the disabled veterans, depending on where their injuries are, it changes where they are at on that. If you are a veteran that is getting a blood test in the city of Sleepy Eye, they should be able to do that. So, my concern is that if we are taking those sets of resources and transferring them somewhere else and there is, there is assumption on this and we have research to support this, if you are going to die in a hospital, you are going to die from a hospital-acquired infection. The place where you are least likely to have that happen is not even at the Mayo Clinic; it is at the Minneapolis VA. That is where the best care in terms of that is. So, this idea that it is cheaper, it is quicker and it is better in the private sector, there is no data to support that. But it doesn't change the chairman's point on this is if you are closer to home. So, we have always delivered up to 25 percent of our care in the private sector anyway. We have expanded the CBOCs as the gentlelady said but I think we need to get out of this trap. There is an ideological belief and it is my belief right now that is dominating, certainly coming out of the White House that the idea is that we can go totally to the private sector care, no need for the VA. That is where the danger lies. I think for all of us, it is striking the proper balance. And what I am asking for is in this budget is for us to at least have the transparency to know where it is going. If that money is going into the private sector, if we are getting more bang for the buck and veterans are being seen quicker and they are getting there, I am open to the possibility that would be there. But don't forget, inside VA is all of that research, all that delivered care, all of that managed care on multiple modalities that these people are going through. If you go in to see your physician, when you go in to see a VA doctor, yes, you will see them longer and I know people complain about this where you spend too much time with the person. My veterans say, yes, when I am in there I mentioned to them, yes, what about this thing on my hand and they found out that it was skin cancer. Had I been to another doctor, I would have had another appointment. So, it is my belief that this is not the best way to manage the care. It is not my belief that there is not quality care to be delivered in the community. I represent the Mayo Clinic; they do a wonderful job. There is a place for that. But at the expense of and to be very honest, why blend them together if it is not just to continue to move money out of there. Why not keep them separate so we can see it? You are appropriators, you are budget people, let us see where that money is going. Mr. Fortenberry. I think it was appropriate to mention as Congresswoman Debbie Wasserman Schultz did that you are also ending your service as well. Mr. Walz. Well, thank you. Mr. Fortenberry. So, I don't want to divert from the issue at hand because clearly you are passionate about caring for veterans and have a very detailed grasp as to what ought not be a conflict that is I think what you are communicating. But either on a case by case or geography or level of medical infrastructure that is already in a place or not, we have to find the right balance between the movement toward a singular goal which is care for our veterans, not a debate over whether this is going to be public or this is going to be private. I think it is a fair set of comments. Thank you. But I primarily, I want to thank you as well for your friendship and your service. I don't think Mr. Dent intended this to be a meeting in which we are all saying goodbye but, nonetheless, it is kind of going that direction. But I am really grateful for your friendship and wish you all the best in your possible future leadership roles as well. Mr. Walz. Well, no, thank you. It does mean a lot. I think it is an interesting intersection of folks here who I have come to admire and call friends. We have worked together on some very diverse issues, and I think maybe this all comes together on what is possible, and Mr. Fortenberry was at the heart and the nexus of a very new way of delivering veterans care in the Omaha, Lincoln area of Nebraska where we used public-private partnerships to build a facility that wouldn't have gotten done by the private sector alone, wouldn't have gotten done by the VA alone, but it is getting done now because of that leadership. And I think if you can help us and that is all I am asking for on this, I think what will muddy the water is those two accounts coming together, not the ideological argument. And thank you for the kind words. Thank you. Mr. Dent. Thank you, again, Congressman Walz, for your service. And, yes, you are leaving at the end of the Congress, too, and good luck to you in your race. And, again, just to say, I don't like to use the term privatization. I would like to talk about the integration, a better integration I should say of the civilian and the veterans health systems that we have. And I often found that my local VA medical directors are quite skilled and I would like to see them take on a role not just as a provider of care but maybe a little bit more of a manager and a coordinator of care. They do understand the healthcare resources in their regions and, frankly, I don't think they are empowered enough to make some decisions. When Secretary Shulkin served here as Secretary and Undersecretary under the Obama administration, we had the debate about should the VA deliver babies. And they came, I think, to the right conclusion that the VA probably would not be able to do a very good job of it because they wouldn't deliver enough to be very good at it and basically that is done in the community as it should be. And so, I think we have to have a thoughtful discussion about where the VA can best meet the needs of the veterans in that system and where maybe a community option would be better to serve the veterans. So, thank you. We appreciate hearing from you and great to see you and see you around. Thanks. Let us go to Congresswoman Claudia Tenney of New York, recognized for five minutes. ---------- Tuesday, April 17, 2018. WITNESS HON. CLAUDIA TENNEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK STATEMENT OF CONGRESSWOMAN TENNEY Ms. Tenney. Yes. Thank you, Mr. Chairman. I am sorry to hear the news; I just got to know you and now you are leaving. So, anyway, I just want to say thank you to Chairman Dent, Ranking Member Wasserman Schultz and the members of the Appropriations Committee for providing me the opportunity to testify today in support of the request submitted to Congress by the Secretary of the Air Force for a perimeter fence around the Air Force Research Laboratory Information Directorate, otherwise known as Rome Lab and I will refer to it as Rome Lab. Rome Lab is a premier research and development facility committed to our nation's safety and cyber security. As a leader in communications and information technologies, Rome Lab ensures that our defense capabilities remain on the cutting edge. In a world where defense is increasingly technological in nature, Rome Lab is critical to the mission success of your warfighters. At the present time, Rome Lab lacks a perimeter fence to secure the facility and meet the existing force protection requirements as outlined by the Department of Defense. The highly sensitive nature of Rome Lab's research and development projects place the site at heightened risk. The critical work conducted at Rome Lab necessitates appropriate security safeguards including a secure system of perimeter fencing. Without this important precaution, the facility's sensitive information is vulnerable. A security fence around Rome's perimeter will also increase the safety of the lab's more than 3,000 personnel. Additionally, the fencing will reduce the facility's susceptibility to terrorist-type activities. Joint Staff Integrated Vulnerability Assessment or JSIVA teams identified security vulnerability risk at Rome Lab in 2008 and then again in 2014. Indeed, in the last 10 years, over 240 individuals were detained, interviewed and released by security at Rome Lab due to the lack of perimeter security. Mr. Chairman, it is 10 years since the JSIVA identification that I mentioned, that is far too long a time to allow the site to remain unsecured. As the parent of an active duty Marine officer and Representative to over 50,000 veterans, I sincerely appreciate the important work that this subcommittee does for our military and our nation's veterans. I urge the subcommittee to provide strong consideration on the request for perimeter fence as submitted to Congress by the secretary of the Air Force and to prioritize the safety of the men and women who sacrifice so much to defend our nation as well as the vulnerability of this very sensitive military research. Thank you for allowing me to testify and I yield back the balance of my time or any questions you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ROME LAB SECURITY FENCE COST Mr. Dent. Real quickly, this projected is on the unfunded priority list I believe. Do you know what the price tag is on this one? Ms. Tenney. $14.2 million. Mr. Dent. Okay. The only comment I am going to make, I am sympathetic to perimeter fences; we just were able to do one in my own area for the same reasons you just outlined very well. So, I am sympathetic. These facilities obviously are in great need of greater security given the risk of terrorists and other bad actors who might try to penetrate. So, I don't have any questions. We will do our best in the unfunded priority list to try to see if we can accommodate you. Ms. Tenney. Thank you. I appreciate your advocacy. Thank you. Mr. Dent. Okay. Well then, thank you so much, Congresswoman Tenney. Ms. Tenney. Thank you. ---------- Tuesday, April 17, 2018. WITNESS HON. MARK TAKANO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mr. Dent. Representative Takano, from California. Welcome. We look forward to receiving your testimony. You are recognized for five minutes. statement of congressman takano Mr. Takano. Thank you, Chairman Dent, Ranking Member Wasserman Schultz and other members of the subcommittee. Thank you for allowing me to join you this afternoon to discuss funding priorities for the Department of Veterans Affairs. I have been a proud member of the House Committee on Veterans Affairs since my first term in Congress and I currently serve as the committee's vice ranking member. The main issue I would like to address this afternoon is the administration's proposal to consolidate the VA's medical services and community care accounts. I heard Congressman Walz's testimony, some of it. Given the VA's notorious difficulty in forecasting the spend rate of the Choice program, I believe this proposal is misguided and will make it harder for members of Congress to provide critical oversight of how the VA spends its funding for medical care and in turn will undermine the care that veterans receive. Now, as many of you will recall, the Choice program arose from the Phoenix wait time scandal. It was a rushed response to a serious emergency and its implementation reflected the prioritization of speed over effectiveness. The program was actually set to sunset in August of 2017 or when the VA had spent the $10 billion Choice fund. After months of being told by VA officials that the Choice fund would be depleted well short of the sunset day, the VA revised its estimate. By spring of 2017, the VA forecasted that it would actually hit the 2017 sunset date with more than $1 billion remaining in the account. Now, Congress then acted quickly and lifted the sunset date to allow the remaining funds to be spent on veterans' care. However, by July of that year, the VA reverted back to its previous estimates, prompting Congress to pass the VA Choice and Quality Employment Act of 2017 to provide $2.1 billion to the program. Well, by December, the VA notified Congress that it would again run out of funding for Choice in January 2018. So, what did Congress do? It appropriated an additional $2.1 billion to the Choice fund. This latest funding was expected to last through the end of this fiscal year, 2018. But now, the VA expects it will run out of funding in early June, more than three months before the end of the fiscal year. Now, if you found that narrative difficult to follow, then you understand my point. Tracking the cost of the VA's Choice fund is difficult even when it is separate from the medical services account. Merging the two accounts would make meaningful oversight nearly impossible. Additionally, the merger of the community care and medical services accounts runs directly counter to the Surface Transportation and Veterans Health Improvement Act of 2015 which mandated that VA provide a request for community care in the budget. And most importantly, this change would invite community care spending to encroach upon the budget that is dedicated to maintaining the VA facilities and workforce that provide high quality care to our nation's veterans. Every year, roughly nine million veterans rely on VA services. So, I implore us to reject any proposal that jeopardizes our ability to ensure those services will remain available. In my remaining time, I would like to highlight the need for funding to fully implement the Forever GI Bill. The landmark bill guarantees veterans a lifetime GI Bill benefit rather than benefits that expire. It simplifies and consolidates the Montgomery GI Bill and the post 9/11 GI Bill and has valuable protection so that veterans don't lose their benefits when a school closes mid semester like ITT Tech or Corinthian did. However, for this to succeed, the VA needs full funding for implementation. And I am concerned that without proper funding for IT upgrades, the VA is ill-equipped to comply with the new provisions of the law and will fall short of keeping the promise we have made to veterans. I ask that the Appropriations Committee provide the full $30 million authorized in Section 115 of the law for claims processing and IT upgrades. The Forever GI Bill is an historic step forward and we owe it to our veterans not just to authorize it but to fully fund implementation so that veterans can receive its full benefit. I thank you for your time this afternoon. I look forward to continuing to work with you to ensure that veterans receive the services and support they deserve, and I yield back. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Representative Takano, for your comments on the GI Bill, and as appropriators we do our best to try to accommodate the authorizing committee and what you have just stated on the GI Bill is extremely important. And we are deeply committed, also on the health care. I won't belabor what was spoken about earlier except to say that your concerns about transparency are well-founded. And I think we have all been a little bit frustrated about getting reliable data from the VA. And this has been going on for some time, about the cost of care at the agency, either that they provide or they pay for. So your point is well-taken. And I thank you for your testimony. Representative Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. I would associate myself with your remarks and underscore that I share your concerns not only about transparency, but also on what appears to be a potential march towards privatization, which I find inappropriate and would not be what is best for our veterans. And I share their concerns on moving in that direction as well. Mr. Dent. Thank you. Ms. Wasserman Schultz. I yield back. Mr. Fortenberry. Just to take an opportunity to also follow through on a comment that was made when Congressman Walz was here. Congressman Takano also played a very constructive role of helping navigate the bill that we were able to pass last year that created the public private partnership option that we are now implementing in Omaha. So that, again, the first time I have to thank you publicly. I wanted to take it and really appreciated your negotiating skills, your flexibility and then joining with that team effort to get this done. Mr. Takano. Thank you, Vice Chairman Fortenberry. It was when I was the vice ranking member of the Veterans Affairs Committee and worked with Congressman Ashford, worked with your junior Senator at the time and it was a coming together of knowing that we could bring the private sector into how we operate the VA. And I am so glad that that came to pass. So I am very pleased. I just want to mention one more thing--you are from a state that is very rural. The thing I will say is that we are facing a tremendous doctor shortage in our country. And part of the problem with the VA is the understaffing and to make sure it is fully staffed out. And I imagine also in Pennsylvania we have also serious problems with doctors. The solution is graduate medical school education. And I really believe the VA--one of the reasons we can't do away with VA health care is actually in rural communities, it is a strategy to get doctors into those communities. And to fund the training of those doctors through the VA, so I would love to have more conversations about that in the future. So thanks. Mr. Dent. Thank you, Representative Takano. Tuesday, April 17, 2018. WITNESS HON. JOHN RUTHERFORD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Statement of Congressman Rutherford Mr. Dent. Let's go to Representative Rutherford of Florida. You are recognized for five minutes. Mr. Rutherford. Chairman Dent and Ranking Member Wasserman Schultz, thank you, and distinguished members of the Committee, thank you for this opportunity to testify on behalf of my Northeast Florida priorities for the fiscal year 2019 Military Construction and Veteran Affairs appropriations bills. First, as a member of the House Veteran Affairs Committee, I want to thank all of your work to ensure that veterans are receiving the best care possible. And the 115th Congress has made great strides in increasing the access to quality care, improving accountability and reforming many broken systems of VA. These reforms are a testament to our two committees effectively working together and I look forward to continuing this important progress. However, I would like to use today to focus on two projects of high importance to Naval Station Mayport, which I am proudly representing here in Congress. The mission of Naval Station Mayport is to sustain and enhance warfighter readiness and is the third largest fleet concentration area in the United States. While serving as the home to an amphibious ready group, several destroyers, cruisers and other ships, Mayport is also the proud east coast home port for the littoral combat ship Freedom Class. The USS Milwaukee, the USS Detroit and the USS Little Rock have already been delivered to the Navy and homeported at Mayport. And as Congress strongly supported the LCS program, eventually a total of up to 14 LCS will be homeported at Mayport by 2020. As the LCS continues to be delivered to the fleet, it is vital that required military construction projects are funded by this Congress. That is why the president's fiscal year 2019 budget request includes funding for the LCS support facility and the LCS operational training facility located at Mayport. These projects are a second phase of MILCON that is essential to the training and equipping of the LCS squadrons as this class of ship begins to enter its active deployments over the next few years. Before I discuss why these projects are so important to fund in this coming fiscal year, I want to explain what makes the LCS different than other surface combatants. The LCS training and manning plans are designed to maximize efficiency of deployed ships, transferring traditional training and administrative functions to shore facilities. The Blue/Gold crew swapping in the shore facilities allow for training and financial efficiencies. Without these capabilities the Navy would require larger crews, diminishing the tactical advantages of the LCS in close-contested waters. As we see the threats across the globe on the rise, having this capability will prove essential in the years to come. The two projects requested by the President in fiscal year 2019 will accommodate the LCS squadron command staff, classrooms, systems trainers, operation watch floor and other space critical for the LCS mission. It will also provide a multistory parking garage, which has been a need at Mayport for many years, especially as it continues to expand into the coming years and will convert other portions of the base to support the LCS mission. The Navy has clearly stated the need for these projects to be completed quickly and included them on the unfunded priorities list for 2018. The LCS concept of operations requires these facilities to be in place two years in advance of ship arrival in order to meet training and support requirements. The first phase of these buildings was funded in 2015 and later constructed. However, due to the delay in funding for phase two, crews have been training in temporary structures at Mayport and enabled base station in San Diego, the West Coast LCS homeport. This leads to inadequate training for the crews and is, in the Navy's own words, unsustainable. The Navy also stated that without these structures both the squadron and the ship crews cannot be adequately supported by existing shore facilities due to primarily overcrowding, which will serve severely impact ConOps in mission capability. And as we have seen in the recent ship collisions in the Pacific fleet, funding and supporting of adequate training for our sailors is truly a matter of life and death. The Navy is in many ways leading the Services and how they look at training. This includes the immersive virtual shipboard environment lab training systems that are used for these LCS crews. Congress has supported this game-based training strategy which has already proven to save training hours and can be done ashore instead of on the ship. I believe that this model has the potential to reshape how training is carried out across the fleet which is why funding this facility is so important. We owe it to the LCS crews, the squadron leadership, and to all of our sailors to ensure these training and support facilities are in place before we ask them to carry out their mission. Inadequate structures and temporary work grounds, workarounds for a growing program only weakens our security. And again, I want to thank you all for the opportunity to speak here today. And also I want to say thank you on behalf of a grateful nation for all of the hard work that you all are doing to ensure that our nation remains the strongest and safest in the world. And I am always available for further discussion on these and other topics of interest. And I yield back. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] LCS PROGRAM Mr. Dent. Well, thank you Representative Rutherford for your testimony and updating the subcommittee on the importance of the LCS program. It is vitally important. And I also want to certainly let you know that we will continue to work with you on the Mayport Naval Station and the unfunded priority list. I am sure there is going to be a lot of demand for it this year, but we are going to do our best to accommodate as many of the Members as we can, so with that thank you. And I yield to the ranking member. Ms. Wasserman Schultz. Thank you, Mr. Chairman, for the opportunity to greet my fellow Floridian. As you know, we were not able to get all of our MILCON needs in Florida addressed in the hurricane supplemental that recently passed and was signed by the President. Were there any facilities at Mayport specifically damaged by the recent hurricanes that have MILCON needs and still need to be addressed that weren't included in this one? Mr. Rutherford. I don't believe there were. Ms. Wasserman Schultz. Okay. Thank you. Mr. Dent. Thank you, Representative Rutherford. I appreciate your testimony and pleased to work with you over this appropriations process. Mr. Rutherford. Thank you, Mr. Chairman. And I just want to say congratulations on a great term and time in Congress and thank you for all that you have done personally for us in Florida. Thank you. Mr. Dent. Thank you. I hope to get to spend more time in northeast Florida. Mr. Rutherford. Yes. Mr. Dent. It's a very nice part of the world. Mr. Rutherford. Come and see. Mr. Dent. Really, I know it is a wonderful place. Mr. Rutherford. Thank you. ---------- Tuesday, April 17, 2018. WITNESS HON. ANN McLANE KUSTER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW HAMPSHIRE Opening Statement of Congresswoman Kuster Mr. Dent. Okay. Thank you. I would like to recognize Representative Kuster of New Hampshire. And you are recognized for five minutes. Ms. Kuster. Thank you, Mr. Chairman, and distinguished colleagues. Thank you for the opportunity to come before you today to join my colleagues on the Veterans Affairs Committee to talk about veterans' benefits and services from my perspective as ranking member of the House Veterans Affairs Subcommittee on Oversight and Investigations. And coincidentally, the only Congressional delegate in our New Hampshire delegation to serve on either the House or Senate Committee on Veterans Affairs. It is no secret that VA's capital assets are in serious need of repair. For Granite State veterans, this reality is so much more obvious when the Manchester, New Hampshire VAMC experienced a catastrophic water pipe breach. Emergency repairs have been ongoing since this episode, which occurred within days last spring of the Boston Globe's report on patient access to care issues at the facility. What I wanted to bring to your attention is that my home state of New Hampshire lacks the same robust VA capital assets that other veterans across the country enjoy. We are one of the only states that does not have a full service VA hospital within our borders. As the ranking member of the Oversight and Investigations Subcommittee, it was my displeasure to learn about the gross misuse of funds in major construction projects like Aurora, Colorado while the Granite State veterans continue to see their needed improvements deprioritized. As proud, frugal Yankees, New Hampshire veterans understand the realities of our current budgetary environment. And from that perspective, I respectfully request that the subcommittee seriously examine leveraging innovative concepts to deliver veterans' health care, both economically and effectively. In my letter to the subcommittee dated March 16, 2018, I requested the prioritization of ambulatory surgical centers (ASC) as a solution that provides both quality health care while being fiscally responsible. As you know, ASCs have long been utilized by the private sector to lower cost and improve health outcomes. ASCs would help resolve many of the issues surrounding veteran health care today. And it is incumbent upon us to provide VA with the tools it needs to care for those who have borne the battle. It is imperative that the Appropriations Committee continue to robustly fund the Choice program. And here I join my colleague Mark Takano to ensure its operation while an improved community care program is implemented. I remain concerned, however, that the funding shortfalls would put patients at risk. And one of the most important lessons from the Manchester VAMC is the need for a program that values clinical input over budgetary issues. Patients must always come first. I request the subcommittee consider two aspects of my bill, the VA Community Care Enhancement Act, that would require VA to implement a demonstration program between Veterans Affairs Medical Centers (VAMCs) and federally qualified health centers (FQHCs). Like Mr. Fortenberry, I have a rural district. I consider that to be a compliment, not a slight. And I respectfully request that you recognize the importance of FQHCs for the future of the VA community care. Unfortunately, VA has not directed enough of its resources to integrating FQHCs into the VA community care network, despite the fact that right now, FQHCs treat over 300,000 veterans. My bill also provides a mechanism to potentially resolve the issue with improper payments. In some cases it appears these payments are made to incentivize participation of certain community providers. But FQHCs provide a novel solution. FQHCs receive an enhanced Medicare rate, negotiated to better cover their actual cost, while tying the rate to periodic audits by the Human Resources and Services Administration to ensure that FQHCs are only claiming legitimate costs. VA currently lacks the flexibility to apply these rates to FQHCs and it has proven to be a significant disincentive for their participation. I urge my colleagues on the subcommittee to work with the Veteran's Affairs Committee to develop these authorities. If I may, I wish to take this opportunity to applaud the Subcommittee for separating funds for VA's modernization efforts for the new electronic health records, from the VA's general IT account. This move wisely recognizes the importance of enhanced oversight over the VA's IT modernization. As the ranking member in the O & I Subcommittee, I welcome continued coordination between our subcommittees to ensure effective oversight. However, I urge my colleagues to heed the lesson and deny VA's proposed consolidation of the medical services account and the community care account. Consolidating these accounts would only serve to make VA's expenditures on community care less accountable for Congress. Increasing the opacity of these accounts will likely heighten the pressure to ration care and further dissuade medical centers from requesting additional funding. I remain encouraged by the work of your subcommittee. And it was my pleasure to appear before you today. And I want to join my colleagues in thanking you, Mr. Dent, for your extraordinary service to our country. We are very grateful. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Representative Kuster. And you have got a lot in there for five minutes. I just want to say I think the areas of concern that you have highlighted are probably shared by many members of the subcommittee. While the funding issues are something we certainly can address, it seems to me that some of the priorities fall within your own committee's jurisdiction, and so to the extent that we can where funding is the issue, we will certainly work with you and seriously consider all the issues you have raised. I don't have any questions but thank you. Ms. Kuster. Thank you very much. I worked very closely with my chair, General Jack Bergman. And so, we would be happy to work with you to resolve any of these issues. Thank you so much for your time. I appreciate it. Mr. Dent. Representative Wasserman Schultz. ELECTRONIC HEALTH RECORD Ms. Wasserman Schultz. Just a quick question. As the chairman mentioned, your committee obviously manages the authorization of a lot of the issues you mentioned. I agree with you on the electronic health records concerns. No question. In fact, we inserted in the omnibus appropriations bill language that would ensure, that I suggested, that the GAO oversee the process through the years, which will be lengthy. Ms. Kuster. Yes. Ms. Wasserman Schultz. But that helped in the past, like when we were trying to bring the Capitol Visitor Center project, which was over budget and extended far beyond its original completion time, so that helped a bit. But does your Oversight and Investigations Subcommittee plan to look into this issue? I mean, as you know, Secretary Shulkin was fired literally today before he was supposed to sign the Cerner contract. And we have quite a bit of uncertainty as to when that contract will be signed. Ms. Kuster. I can't speak for the Chair in terms of what he is planning. But I do know from previous conversations that he shares the concerns. In fact, our Chair, Dr. Roe, it is very bipartisan. Ms. Wasserman Schultz. Yes. Ms. Kuster. Our concern is about both the time table for IT improvements and the deliverables if you will. If it is any indication, we had a very good roundtable discussion this morning on a slightly different topic, the VA appeals process, but it related to new IT, and when we met with them in January, we had been very frustrated. We had no time timetable, no deliverables. Today with the GAO's help, they were much, much more attentive to the questions that we had raised and I would expect that that would become a model for the committee as with regard to the electronic health record. Ms. Wasserman Schultz. Good oversight process to put in place while you are in the process of going through instead of coming in at the end. AURORA PROJECT Ms. Kuster. Yes. And I will say, I mean, I have been on the committee for five years and certainly the Aurora example was eye-opening for everyone on the committee, that this much money could be spent without accountability. And so, I think you would find the committee to be much more attentive to these details at this point. Ms. Wasserman Schultz. Thank you. Ms. Kuster. And to our oversight role. Thank you very much. Mr. Dent. Thank you, Representative Kuster. You have raised the Aurora project that is the project of which we shall never speak again. Ms. Kuster. I never should have mentioned it. Mr. Dent. We have very good friends in Ed Perlmutter and Mike Coffman and your Senators have become very close friends to the subcommittee as a result of that project. And hope we never see another one like that. Ms. Kuster. Well, our subcommittee was out there, summer before last and we had an excellent hearing, but I have to say I was a little bit stunned that some of the testimony was that despite opening Aurora, that they had a large increase coming out of Colorado Springs of veterans that needed care. And it was too far to get from there to Aurora and that they needed additional facilities. And I shouldn't laugh, I am sorry. Mr. Dent. I know. Ms. Kuster. I just shook my head. Mr. Dent. If you don't laugh, you will cry. Ms. Kuster. Yes, exactly. Thank you. Thanks very much. Mr. Dent. Thank you. Thank you, Representative Kuster. ---------- Tuesday, April 17, 2018. WITNESS HON. FRENCH HILL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARKANSAS Statement of Congressman Hill Mr. Dent. At this time, I would like to recognize the gentleman from Little Rock, Arkansas, French Hill. Mr. Hill. Thank you, Mr. Chairman. I appreciate Chairman Dent, Madam Wasserman Schultz and my friend Jeff Fortenberry for letting me testify today. I appreciate the chance to present my views. That was fun to hear Congressman Rutherford reference the USS Little Rock arriving in North Florida. They have been stuck in the ice in Montreal since December 16, 2017 when that ship was launched and they just arrived in the last two weeks. So it was a cold, bleary winter in Montreal in the Saint Lawrence Seaway for the USS Little Rock. I know they are reveling shore leave in Florida. I appreciate the opportunity to testify in front of you today to talk about expanded research into the U.S. Department of Veteran Affairs 40-mile rule. The Veterans Choice Program that you heard so much about today provides veterans with the ability to receive medical care from the community outside the VA when required or necessary. One requirement for eligibility under this program is for a veteran to live more than 40 miles as defined by driving distance from the nearest VA medical facility with a fulltime primary care physician. This does not account for facilities within the 40-mile radius that may not provide the proper services for any given veteran. I have three wounded warriors on my staff at our district office in Little Rock. And we have 50,000 veterans in the second congressional district of Arkansas. So it is a prime focus of my office as we are home to Little Rock Air Force Base and Camp Robinson, the National Training Facility for the National Guard. And so I hear persistent concerns from our veterans about the 40-mile rule within the Choice program. The program was designed to make it easier for our veterans to receive the care they deserve. And I don't believe the distance a veteran lives from a facility should necessarily affect the quality care they receive. For this reason, I respectfully request that you include the following language in the fiscal year 2019 MILCON VA bill. And I quote that language. ``The U.S. Department of Veterans Affairs Secretary shall conduct a review of the Veterans Choice Program 40-mile rule and determine whether it serves the best interest of our veterans. ``The Secretary shall issue a report to Congress on such policy not later than one year after enactment of the Act''. I appreciate the chance, Chairman Dent, to be before you today and also give you my very best regards and fraternal friendship as you leave your quality service in the Congress. Congress will be a less wise, less commonsense place with your departure. And thanks for the ability to testify today. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] 40 MILE RULE Mr. Dent. Well, thank you, Congressman Hill, really I have enjoyed serving with you too. It was a pleasure to get to meet your wife too and her service to our country on the National Security Council during the Bush Administration. So, I want to thank you for that. But now, if you are going to be stuck in Montreal, let it be during hockey season. And hope you enjoyed it up there. A couple of things just on the 40-mile rule, I know there are areas in your state where that 40-mile rule does limit access to care. I have been frustrated by that rule as well. I know that VA is trying to make some accommodations in the application of that particular rule, but I think the better news is that the authorizers are conferencing right now on a replacement program for Choice. And I don't think that they intend to use the mileage-based measures to determine eligibility for non-VA care. But we had three members here previously from the VA authorizing committee who might be able to give us some insights on what this new VA Choice 2.0 is going to look like. But I share your concerns on that issue. It is something that is enormously frustrating to me that geographic criteria is quite limiting to the people in so many ways, that I don't think it should be geographically based anymore. In many cases we are denying veterans' access to some of the best health care institutions in the world based on where they live. And I think that is unfair. So, with that I thank you and I yield to Mr. Fortenberry to see if he has any questions. Mr. Fortenberry. Mr. Fortenberry. No. I think you raised a reasonable point. It is just I don't know the criteria by which 40-miles is selected. It might be just a pure budgetary constraint, but yet an artificial one that perhaps keeps some people from the quality of care that they deserve. You have got to have some set of criteria that make it somewhat objective and yet at the same time the rules are for the benefit of persons and when they interfere with that, then the rule itself ought to be reexamined. So, I don't know where the authorizers are either. But thanks for raising the issue. Mr. Hill. Thanks for the opportunity. Mr. Dent. Well, thank you, Representative Hill. And that concludes our hearing today. I see no other Members here for this Member Hearing Day. Are there any others here who want to speak up? Say so now, or forever hold your peace. So with that any comments from the ranking member? If not, this hearing is adjourned. W I T N E S S E S ---------- Page Bingham, Lieutenant General Gwen................................. 95 Coglianese, Major General V. A................................... 95 Green, Major General T. S........................................ 95 Hill, Hon. French................................................ 248 Kuster, Hon. A. M................................................ 237 Niemeyer, Hon. Lucian............................................ 95 Rutherford, Hon. John............................................ 231 Shulkin, Hon. D. J............................................... 1 Smith, Vice Admiral D. R......................................... 95 Takano, Hon. Mark................................................ 224 Tenney, Hon. Claudia............................................. 219 Walz, Hon. Tim................................................... 197 I N D E X ---------- U.S. Department of Veterans Affairs Page Chairman, Opening Statement of................................... 1 Ranking Member, Opening Statement of............................. 2 Shulkin, Hon. David J., Opening Statement of..................... 4 Shulkin, Hon. David J., Prepared Statement of.................... 8 A National Opioid Crisis......................................... 35 Accountability Within VA......................................... 37 Alameda Point.................................................... 40 Blue Water Navy Veterans......................................... 32 Community Care versus VA-Provided Care........................... 30 Community Outreach Program....................................... 55 Complementary Care............................................... 45 Construction..................................................... 57 DC VA Hospital and Restructuring VHA............................. 50 DOD and VA Suicide Prevention Coordination....................... 56 Electronic Health Record.........................................28, 51 Funding the Choice Program....................................... 27 Health Needs of Female Veterans.................................. 49 Infrastructure...................................................38, 53 Inpatient Substance Abuse Treatment Wait Times................... 48 Integrate Community Care into a Single Account................... 30 Internal Dynamics................................................ 27 Medical Marijuana................................................ 40 Military Parade.................................................. 42 Modernization and Telehealth..................................... 33 National Center for PTSD......................................... 49 OIG Report on Veteran Wait Time.................................. 31 Poor Performing Employees........................................ 37 Predictive Analytics............................................. 56 Private Care versus VA-Provided Care............................. 39 Privatization of VA Care.........................................30, 54 Prosthetics Technology........................................... 33 Public-Private Partnerships...................................... 46 Rural America and Broadband Access............................... 34 Telehealth Program............................................... 43 Transition Assistance Programs................................... 43 The Pathway Home Model........................................... 41 VA Partnerships with Historically Black Colleges................. 58 Vacant and Under-utilized Buildings.............................. 55 Fiscal Year 2019 Budget Oversight Hearing on Energy, Installations, and Environment Chairman, Opening Statement of................................... 95 Ranking Member, Opening Statement of............................. 96 Niemeyer, Hon. Lucian, Opening Statement of...................... 98 Niemeyer, Hon. Lucian, Prepared Statement of..................... 103 Bingham, Lieutenant General Gwen, Prepared Statement of.......... 126 Smith, Vice Admiral Dixon R., Prepared Statement of.............. 133 Coglianese, Major General Vincent A., Prepared Statement of...... 139 Green, Major General Timothy S., Prepared Statement of........... 146 Base Closure and Realignment..................................... 168 Bipartisan Budget Agreement Increase Funding for DOD............. 159 Border Wall...................................................... 175 BRAC Naming...................................................... 174 Cost of DOD Portion of a Border Wall............................. 158 Contracting Mechanism............................................ 167 Detainees........................................................ 175 DOD Jurisdiction for a Border Wall............................... 158 Drought Conditions............................................... 171 Energy Resilience................................................ 172 Environmental Remediation at Conveyed Land....................... 164 Excess Capacity at Military Installations........................ 169 Fort Bliss Hospital Construction Delays.......................... 166 High Value Detention Facility at GTMO............................ 160 Hospitals Instead of Clinics on Installations.................... 171 National Guard Training Lands.................................... 162 Naval Air Station Lemoore Military Construction.................. 170 Oakland Army Base Remediation.................................... 165 Readiness Centers................................................ 163 Resiliency and Sea Level Rise.................................... 168 Rhine Ordnance Barracks Energy Study............................. 159 Sustainment Costs of Current Facility............................ 162 Members' Day Chairman, Opening Statement of................................... 197 Ranking Member, Opening Statement of............................. 197 Walz, Hon. Tim, Opening Statement of............................. 198 Walz, Hon. Tim, Prepared Statement of............................ 206 Tenney, Hon. Claudia, Opening Statement of....................... 219 Tenney, Hon. Claudia, Prepared Statement of...................... 221 Rutherford, Hon. John, Opening Statement of...................... 231 Rutherford, Hon. John, Prepared Statement of..................... 233 Takano, Hon. Mark, Opening Statement of.......................... 224 Takano, Hon. Mark, Prepared Statement of......................... 226 Hill, Hon. French, Opening Statement of.......................... 248 Hill, Hon. French, Prepared Statement of......................... 250 McLane Kuster, Hon. Ann, Opening Statement of.................... 237 McLane Kuster, Hon. Ann, Prepared Statement of................... 240 Aurora Project................................................... 248 Care in the Community............................................ 216 Electronic Health Record......................................... 247 LCS Program...................................................... 237 40 Mile Rule..................................................... 253 Rome Lab Security Fence Cost..................................... 224 [all]