| Issue 1 |
House Passes Defense Authorization Bill.
The House made short work of the FY2007 National Defense Authorization bill Thursday adding several personnel-related amendments. The measure passed by a 396-31 vote. |
| Issue 2 |
House Panel Nixes Edwards' Defense Health Funding Amendment.
The House Committee on Appropriations (HAC) approved the FY2007 Military Quality of Life Appropriations bill this week, but failed to add Rep. Chet Edward's (D-TX) amendment that would have increased the Defense Health Program $735 million dollars to offset the revenue lost from rejected TRICARE fee hikes. |
| Issue 3 |
MOAA and NARFE Push for Health Care Premium Conversion.
MOAA and National Active and Retired Federal Employees Association (NARFE) representatives met with Senator John Warner's (R-VA) staff to help advance the Senator's health care premium tax relief bill for federal and military members. |
| Issue 4 |
House Passes Measures Allowing Tax-Free Savings, Restricting Funeral Protests.
In other House floor action this week, the House passed two unrelated measures on May 9 to allow servicemembers to contribute combat pay to tax advantaged individual retirement accounts (IRAs) and restrict protests at military funerals. |
Issue 1 House Passes Defense Authorization Bill
The full House passed the FY2007 Defense Authorization bill (H.R. 5122) on May 11.
As reported in last week's Update, the bill recommended by the Armed Services Committee authorizes $512.9 billion dollars for national security and weapon programs, $50 billion for the war in Iraq and Afghanistan, and a 2.7% pay raise for Active Duty troops.
With strict limits on amendments and debate, the House adopted only a few modifications to the Armed Services Committee-passed bill. Here's a partial listing of key Amendments:
- SBP Transfer Date. Changes the effective date for surviving spouses to elect optional transfer of their Survivor Benefit Plan (SBP) annuity payments to their child(ren) to the start of operations in Iraq and Afghanistan. Previously, SBP transfers were limited to deaths after November 23, 2003. Surviving spouses who elect to transfer SBP preserve full entitlement to VA Dependency and Indemnity Compensation payments.
- Garnishment of Overpayments. Limits the garnishment of a servicememember's paycheck to no more than 20% in a single pay period for overpayments not the fault of the member; establishes a 90-day grace period before overpay recovery can be initiated for wounded/ill servicemembers.
- Study of Army Tour Length. Requires the Army to study the potential benefits of converting from 12 to 6-month deployments in connection with service in Iraq and Afghanistan.
- Reserve Assignment Pay. Requires the Army to submit a report examining possible pay inequity in its Assignment Incentive Pay system for Guardsman and Reservists.
- Bataan Death March. Authorizes compensation to any veteran who was captured on the peninsula of Bataan or the island of Corregidor and survived the Bataan Death March.
The Senate has not scheduled floor time for its version of the Defense Authorization bill, but there are signs that action won't begin until after the Memorial Day recess, at the earliest.
Issue 2 House Panel Nixes Edwards' Defense Health Funding Amendment
With passage of the FY2007 Military Quality of Life Appropriations bill this week, the House Appropriations Committee (HAC) dug a $735 million hole for the Defense Health Program (DHP) by rejecting Rep. Chet Edward's (D-TX) Amendment. MOAA strongly backed it to overcome lost revenue from proposed TRICARE fee increases. The issue could be resolved in conference if the Senate takes up the DHP funding gap. But the HAC did vote to restore $800 million for the VA health care account to make up for cancelled VA health system enrollment fees for lowest priority veterans.
Other highlights include:
- Funds VA Medical Services at $25,412,000,000, $2.6 billion above last year's level, but $100 million below the President's request.
- Rejects - for the fourth year in a row - VA enrollment fees for certain non-disabled veterans
- Funds total military construction at $6.6 billion -- $5.6 billion for active duty construction and $1.0 billion for reserve components -- and funds $4.0 billion for family housing construction.
- Increases the defense health program by $1 billion over last year to $21 billion and directs DoD to initiate mandatory programs on mental health screening and counseling into daily activities of service members.
- Funds base realignment and closure activities at $5.5 billion and urges DoD to actively assist local schools and communities impacted by BRAC and global rebasing.
- Directs DoD to report on the feasibility of creating a unified medical command structure for the Department's three health systems.
Issue 3 MOAA and NARFE Push for Health Care Premium Conversion
On May 9, MOAA Deputy Director of Government Relations, CDR René Campos, (USN-Ret) and representatives from the National Active and Retired Federal Employees Association (NARFE) met with Senator John Warner's (R-VA) staff to discuss strategies to enact his legislation (S. 484) that would authorize federal civilian and military retirees to pay health insurance premiums on a pretax basis and allow active duty and retired military personnel to deduct certain supplemental premiums or enrollment fees for TRICARE Prime and dental programs. The House companion bill, H.R. 994, is sponsored by Rep. Tom Davis, (R-VA).
Although S. 484 has 61 cosponsors and the House companion bill has 325 cosponsors, cost remains a significant roadblock. MOAA and NARFE are working with Senator Warner's office to provide additional information as needed to the Joint Committee on Taxation, Senate Finance and the House Ways and Means Committees, as well as other members of Congress to address their concerns and offer implementation options.
To urge your senators and representative to cosponsor these bills, please visit http://www.capwiz.com/moaa/issues/bills/. Scroll down to "Health Care Issues" and click on the links to S. 484 and H.R. 994 and enter your zip code in the box to send a MOAA-suggested message tailored to each legislator's cosponsor status.
Issue 4 House Passes Measures Allowing Tax Free Savings, Restricting Funeral Protests
H.R. 1499 (Rep. Virginia Foxx, R-NC) would allow members collecting tax-free combat pay to make contributions to an IRA. Current rules governing contributions to IRAs limit those amounts to $4,000 or a person's taxable income, whichever is less. The measure cleared by voice vote.
Servicemembers serving in Iraq and Afghanistan often have little or no taxable income because combat earnings are tax exempt. The benefit of tax free combat pay often effectively bars them from contributing to IRAs while deployed.
Rep. Foxx noted current IRS rules "wrongfully prohibit[s] many of our brave men and women serving in combat zones from taking advantage of retirement savings accounts."
This week's action by the House amends the Senate version of H.R 1499 passed on Nov. 15, 2005. The bill now heads back to the Senate where it is expect to be cleared for President Bush's signature.
In floor action the same day, the House passed H.R. 5037 (Rep. Mike Rogers, R-MI) which would set limits on protests at military funerals. Rogers' bill would limit protests on national veterans' cemeteries and Arlington National Cemetery unless approved by the cemetery superintendent or director. Specifically, the measure prohibits protesters from protesting one hour before and one hour after a funeral, and not within 500 feet of the funeral.
Senator James Inhofe (R-OK) introduced the Senate companion bill, S. 2779 on May 10. House members are hoping for quick approval from the Senate to have the bill to the president by Memorial Day.
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