[Treatment of Certain Veterans' Programs Under the Balanced Budget and Emergency Deficit Control Act]

B-221498.27: Published: Jun 3, 1986. Publicly Released: Apr 4, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO commented on the treatment of the Veterans Administration's loan guarantee program under the Balanced Budget and Emergency Deficit Control Act. GAO believes that: (1) reductions in loan guarantees in a fiscal year will not result in outlay reductions until later fiscal years and may result, in the interim, in decreased revenues from loan fees; and (2) the act's requirement that agencies reduce new loan guarantee commitments proportionately with all other types of budgetary resources would be meaningless if such reductions occurred only in the cases in which immediate outlay reductions would result. GAO also indicated that the act provides that those eligible for benefits shall not lose their eligibility by reason of any reductions it requires; however, the act has reduced the budgetary resources necessary to fulfill such entitlement.

Looking for more? Browse all our products here