September
28, 2001
Mr. Tim McClain
General Counsel
Department of Veterans Affairs
810 Vermont Avenue, NW
Washington, DC 20420
Dear Mr. McClain:
On February 21, 2001, the Department of Veterans Affairs (VA) submitted
a final rule entitled, "Exclusions from Income" to the Office of
Management and Budget (OMB) under Executive Order (E.O.) No. 12866
for review. This rule would amend VA adjudication regulations to
exclude from countable income, in certain VA compensation and pension
programs, income received under the Victims of Crime Act of 1984
(VOCA). However, compensation under VOCA would not be excluded when
net worth is used as the determining factor in eligibility. This
regulation was submitted to OMB as a direct final rule, stating
that notice and comment under the Administrative Procedure Act was
unnecessary because the rule is interpretative.
As part of OMB review, OIRA often shares agency draft regulations
with other agencies that have an interest in the area being regulated.
In this case the Department of Justice (DOJ) raised serious concerns
with the VA rule. DOJ noted that the Social Security Administration
does not include VOCA compensation in net worth determinations if
the award was within nine months of the eligibility determination.
The VA rule would thus create inconsistencies across the government
in how VOCA is being interpreted.
Discussions between VA and DOJ staff have failed to resolve the
issue. DOJ staff is now extremely busy in the wake of the recent
tragedies requiring further interagency discussions on this issue
to be postponed. Since the "Exclusions from Income" rule has been
under review for more than 90 days and a resolution of the issues
involved will take some additional time, I am returning the rule
to the Department for your reconsideration. VA staff should continue
to attempt to resolve the issue with DOJ when their staff becomes
available. If resolution is not reached, OMB will convene an interagency
meeting to facilitate a policy solution. We look forward to continuing
to work with you to improve this rulemaking effort. Thank you for
your patience.
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Sincerely,
/s/
John D. Graham
Administrator
Office of Information and Regulatory Affairs |
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