$3 Billion Cut to MILCON; More of the Same for VA
On April 9, the House Appropriations Committee approved the fiscal year 2015 funding bill for Military Construction (Milcon) and the U.S. Department of Veterans Affairs (VA). The bill roughly mirrors the president’s FY 2015 budget request for Milcon and VA construction accounts.
Looking at Milcon accounts, the bill, like the president’s budget request, would cut approximately $3 billion when compared to FY 2014 funding levels. As the numbers reflect in the attached chart, the Army would see the greatest percentage reduction compared to last year, with a $578 million, or 52 percent, cut in FY 2015. However, a provision in the bill later provides the Army, Army National Guard and Army Reserve Accounts an additional $245 million for use and disbursement at the discretion of the Secretary of the Army. This number is not reflected in the figures in the chart below. The Naval Facilities Engineering Command (NAVFAC) program, encompassed in the Navy and Marine account, would see a $631 million, or 39 percent, cut in FY 2015. To see what Milcon projects—broken down by state and country—the House bill would fund in 2015, as compared to the president’s budget request, see page 70 and beyond of the committee report.
As for the VA, overall construction funding would remain the same in FY 2015 as they were in FY 2014 at $1.057 billion. However, as compared to FY 2014, the funds for FY 2015 would generally be evenly split between the primary two VA construction accounts. The VA’s Major Construction Account—for projects over $10 million—would increase from $342 million in FY 2014 to $561 million in FY 2015. The Minor Construction Account—for projects below $10 million—would decrease from $714 million in FY 2014 to $495 million in FY 2015. These House bill figures are identical to the president’s FY 2015 budget request.
For more information, please contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.