Congress rejects raid on Filipino veterans fund

WASHINGTON — A plan by the Department of Veterans Affairs to redirect $35 million from a Filipino veterans fund to help bail out a troubled hospital project outside Denver was rejected by Congress on Thursday.

With the VA pressing for quick action to avoid a construction shutdown in Colorado, lawmakers put together an alternative that would provide the agency with what it needed.

The new legislation passed the Senate and was expected to pass the House by the weekend.

According to Lauren Gaydos, spokeswoman for the Senate Committee on Veterans Affairs, the new bill would shield the Filipino Veterans Equity Compensation Fund, established in 2009 for payments to soldiers, guerrillas and scouts who fought alongside Americans in World War II.

The VA had proposed tapping the Filipino veterans fund as part of a $150 million short-term funding package for the hospital in Aurora, Colo., but ran into opposition. Sen. Mazie Hirono, D-Hawaii, said it was “not acceptable.” Lawmakers from Nevada, home to a substantial population of Filipinos, also protested.

Besides protecting the fund at least for the time being, the late deal provides veterans advocates with breathing room for a campaign to distribute more money from the fund. Close to 43,000 claims were filed by a September 2010 deadline but only 18,929 were found eligible, according to the VA. About $56 million remains unspent.

At congressional hearings, lawmakers have been told that while some families missed the filing deadline, many fighters were denied on questionable grounds. Some were not correctly identified in rosters compiled by the Army during and after the war. Others might have fallen victim to military politics and some likely were the victims of racism.

Rep. Joe Heck, R-Nev., has sponsored a bill to reopen the compensation program, allowing surviving veterans to reapply and changing the criteria to qualify for benefits. Sens. Dean Heller, R-Nev., and Hirono have a bill directing the VA and the Department of Defense to come up with a fair plan.

Congress in 2009 authorized one-time payments to Filipinos who served alongside U.S. forces fighting the Japanese. It made available $15,000 to Filipino-Americans who could document service, and $9,000 for qualifying veterans who live in the Philippines.

The skirmish came a day before Filipinos celebrate their Independence Day, and on a day when U.S. members of Congress held an event to promote a bill that would award the Congressional Gold Medal to surviving Filipino veterans. Sponsors included Heller, Heck, Sen. Harry Reid, D-Nev., and lawmakers from Hawaii and California.

Contact Review-Journal Washington Bureau Chief Steve Tetreault at stetreault@reviewjournal.com or 202-783-1760. Find him on Twitter: @STetreaultDC.