October 28, 1997
The Administration strongly supports H.R. 2367, which provides a cost-of-living
adjustment (COLA) for the beneficiaries of veterans' disability compensation
and Dependency and Indemnity Compensation.
H.R. 2367 would affect direct spending; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990 (OBRA). Because OBRA requires that the full compensation COLA be assumed in the baseline, the pay-as-you-go effect of the COLA in H.R. 2367 is zero. In addition, the bill's provision to "round down" monthly benefit payments was previously enacted in the Balanced Budget Act of 1997; therefore, its pay-as-you-go effect is also zero.