IMMEDIATE RELEASE

July 19, 2001

HOUSE VETERANS' AFFAIRS COMMITTEE APPROVES COLA, EXPANDED LIST OF GULF WAR
ILLNESSES


Full House Vote Expected Next Week on Committee's Second Benefits Bill of the Year

WASHINGTON, D.C. - The House Veterans' Affairs Committee reported out its second benefits bill of the year Thursday, a package that would expand the definition of illnesses for Persian Gulf War veterans and grant a cost-of-living adjustment (COLA) to the compensation of disabled veterans and their survivors.

In introducing the Veterans Benefits Act of 2001 (H.R. 2540), Chairman Chris Smith (NJ-4) stressed the importance of the COLA and described the bill as a companion to the Veterans Opportunities Act of 2001 (H.R. 801), which has already been signed into law.

The VA estimates the COLA will be 2.5 percent.

H.R. 2540 would authorize the VA Secretary to provide disability compensation to Persian Gulf veterans whose claims for chronic fatigue syndrome, fibromyalgia, or other "hard-to-diagnose" illnesses have previously been denied.

The bill would also authorize the VA Secretary to continue disability payments to a Persian Gulf War veteran who participates in VA-sponsored medical research and who is subsequently diagnosed with a specific disease. Other provisions of  the bill would:

· Add Diabetes Mellitus (Type 2) to the list of service-connected benefits presumed for Vietnam Veterans

· Authorize the VA Secretary Authorize to pay unclaimed National Service Life Insurance and U.S. Government Life Insurance proceeds to an alternate beneficiary when the first beneficiary cannot be located within three years of  the insured's death;

· Extend to 2005 the VA's direct loan language program for Native American veterans living on tribal trust lands;

· Modify the requirement for loan assumption language in home loan documents;

· Require the VA Secretary to establish a two-year pilot expansion of the available hours of the VA's 1-800 toll-free information service, and to assess the demand for the service.

The bill's provisions would complement those of H.R. 801 (now Public Law 107-14), which increased insurance coverage to veterans and their dependents and expanded health insurance for survivors of veterans who die of a
service-connected disability.

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