Overview of Filipino Veterans’ Benefits

Congressional research reportFeb 20, 2009

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ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

‘›’œ’—ŽȱŒ˜ȱ

™ŽŒ’Š•’œȱ’—ȱ˜Œ’Š•ȱ˜•’Œ¢ȱ

’Š‘ȱ’›Š—ŠȱŠ—Š—Š•Šȱ

—Š•¢œȱ’—ȱŽŽ›Š—œȱ˜•’Œ¢ȱ

Š›˜•ȱǯȱŠŸ’œȱ

—˜›–Š’˜—ȱŽœŽŠ›Œ‘ȱ™ŽŒ’Š•’œȱ

Ž‹›žŠ›¢ȱŘŖǰȱŘŖŖşȱ

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŝȬśŝŖŖȱ

ǯŒ›œǯ˜Ÿȱ

řřŞŝŜȱ

ȱŽ™˜›ȱ˜›ȱ˜—›Žœœ

Prepared for Members and Committees of Congress

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ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ž––Š›¢ȱ

The United States has had a continuous relationship with the Philippine Islands since 1898, when

they were acquired by the United States as a result of the Spanish-American War. Filipinos have

served in, and with, the U.S. Armed Forces since the Spanish-American War, and especially

during World War II. The Islands remained a possession of the United States until 1946.

Since 1946, Congress has passed several laws affecting various categories of Filipino veterans.

Many of these laws have been liberalizing laws that have provided Filipino World War II veterans

with medical and monetary benefits similar to benefits available to U.S. veterans.

However, not all veterans’ benefits are available to veterans of the Commonwealth Army of the

Philippines, Recognized Guerrilla Forces, and New Philippine Scouts. In the 110th Congress, two

measures, H.R. 760 and S. 57, have been introduced that would eliminate the distinction between

the Regular, or “Old,” Philippine Scouts and the other three groups of veterans—the

Commonwealth Army of the Philippines, Recognized Guerrilla Forces, and New Philippine

Scouts—making them all fully eligible for veterans’ benefits similar to those received by U.S.

veterans.

This report defines the four specific groups (Regular Philippine Scouts, Commonwealth Army of

the Philippines, Recognized Guerilla Forces, and New Philippine Scouts) of Filipino nationals

who served under the command of the United States, outlines the Rescission Acts of 1946, benefit

changes since 1946, current benefits for Filipino veterans by group, and recent legislative

proposals and legislation, including the American Recovery and Reinvestment Act of 2009

(ARRA, P.L. 111-5). It will be updated as legislative events warrant.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

˜—Ž—œȱ

Background ..................................................................................................................................... 6

Regular, or “Old,” Philippine Scouts ........................................................................................ 6

Commonwealth Army of the Philippines .................................................................................. 6

Recognized Guerrilla Forces..................................................................................................... 7

New Philippine Scouts .............................................................................................................. 7

Rescission Acts of 1946 .................................................................................................................. 7

First Supplemental Surplus Appropriation Rescission Act (P.L. 79-301) ................................. 7

Second Supplemental Surplus Appropriation Rescission Act (P.L. 79-391)............................. 8

Legislative Intent of the Rescission Acts .................................................................................. 8

Benefit Changes, 1946-1998 ......................................................................................................... 10

Health Care Benefits ............................................................................................................... 10

P.L. 80-865........................................................................................................................ 10

P.L. 82-311 ........................................................................................................................ 10

P.L. 83-421........................................................................................................................ 10

P.L. 85-461........................................................................................................................ 10

P.L. 88-40...........................................................................................................................11

P.L. 89-612.........................................................................................................................11

Veterans Health Care Expansion Act of 1973 (P.L. 93-82)................................................11

Veterans’ Health Care, Training, and Small Business Loan Act of 1981 (P.L. 9772) .................................................................................................................................. 12

Non-Health Care Benefits ....................................................................................................... 13

P.L. 82-21.......................................................................................................................... 13

P.L. 89-613........................................................................................................................ 13

P.L. 89-641........................................................................................................................ 13

Benefit Changes Since 1998.......................................................................................................... 14

Foster Care Independence Act of 1999 (P.L. 106-169) ........................................................... 14

The Departments of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 2001 (P.L. 106-377)......................................... 14

The Veterans Benefits and Health Care Improvement Act of 2000 (P.L. 106-419) ................ 14

The Veterans Health Care, Capital Asset, and Business Improvement Act of 2003

(P.L. 108-170) ...................................................................................................................... 15

The Veterans Benefits Act of 2003 (P.L. 108-183).................................................................. 15

Legislation in the 110th Congress .................................................................................................. 15

Legislation in the 111th Congress................................................................................................... 16

Š‹•Žœȱ

Table 1. Filipino Veterans and Survivors, Eligibility for VA Benefits........................................... 17

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

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ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

˜—ŠŒœȱ

Author Contact Information .......................................................................................................... 18

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

ŠŒ”›˜ž—ȱ

The Philippine Islands became a U.S. possession in 1898, when they were ceded from Spain

following the Spanish-American War (1898-1902).1 In 1934, Congress passed the Philippine

Independence Act (Tydings-McDuffie Act, P.L. 73-127), which set a 10-year timetable for the

eventual independence of the Philippines and in the interim established a Commonwealth of the

Philippines vested with certain powers over its internal affairs. In 1935, the Philippine

Constitution was adopted and the first President of the Philippines was elected. The granting of

full independence was ultimately delayed until 1946 because of the Japanese occupation of the

Islands from 1942-1945.

Among other things, P.L. 73-127 reserved to the United States the power to maintain military

bases and armed forces in the Philippines and, upon order of the President of the United States,

the right to call into the service of the U.S. Armed Forces all military forces organized by the

Philippine government. On July 26, 1941, President Franklin D. Roosevelt issued an executive

order inducting all military forces of the Commonwealth of the Philippines under the command of

a newly created command structure called the United States Armed Forces of the Far East

(USAFFE). These units remained under USAFFE command through the duration of World War II

(WWII), until authority over them was returned to the Commonwealth at the time of

independence.

From time to time since 1946, Congress has passed laws providing, and in some instances

repealing, benefits to Filipino veterans. This report, which will be updated as legislative events

warrant, provides an overview of major Filipino veterans legislation enacted by Congress since

1946. The report begins by defining the specific groups of Filipino nationals who served under

the command of the United States, outlines the Rescission Acts of 1946, the changes to benefits

for Filipino veterans since 1946, and recent legislative proposals.

Table 1, at the end of this report, shows the current benefits for Filipino veterans and survivors.

ސž•Š›ǰȱ˜›ȱȃ•ǰȄȱ‘’•’™™’—ŽȱŒ˜žœȱ

These were soldiers who enlisted as Philippine Scouts prior to October 6, 1945. They were

members of a small, regular component of the U.S. Army that was considered to be in regular

active service. The Regular Philippine Scouts were part of the U.S. Army throughout their

existence, and are entitled to all benefits administered by the Department of Veterans Affairs (VA)

by the same criteria that apply to any veteran of U.S. military service.2

˜––˜— ŽŠ•‘ȱ›–¢ȱ˜ȱ‘Žȱ‘’•’™™’—Žœȱ

These soldiers enlisted in the organized military forces of the Government of the Philippines

under the provisions of the Philippine Independence Act of 1934. They served before July 1,

1946, while such forces were in the service of the U.S. Armed Forces pursuant to the military

order of the President of the United States dated July 26, 1941.

1

2

38 U.S.C. §101(6).

38 C.F.R. §3.40(a).

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

Ŝȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

ŽŒ˜—’£Žȱ žŽ››’••Šȱ˜›ŒŽœȱ

These were individuals who served in resistance units recognized by, and cooperating with, the

U.S. Armed Forces during the period April 20, 1942, to June 20, 1946.3 They served primarily

during the Japanese occupation of the Islands. Following reoccupation of the Islands by the U.S.

Armed Forces, they became a recognized part of the Commonwealth Army of the Philippines by

order of the President of the Philippines.

Ž ȱ‘’•’™™’—ŽȱŒ˜žœȱ

These were Philippine citizens who served with the U.S. Armed Forces with the consent of the

Philippine government between October 6, 1945, and June 30, 1947, and who were discharged

from such service under conditions other than dishonorable.4 Since these scouts were recruited as

a result of the Armed Forces Voluntary Recruitment Act of 1945 (P.L. 79-190), they are referred

to as “New” Scouts.

ŽœŒ’œœ’˜—ȱŒœȱ˜ȱŗşŚŜȱ

In 1946, Congress passed the first Supplemental Surplus Appropriation Rescission Act (P.L. 79301) and the second Supplemental Surplus Appropriation Rescission Act (P.L. 79-391), which

came to be commonly known as the “Rescission Acts of 1946.” It should be noted that the

Rescission Acts of 1946 applied only to Filipino veterans who were members of the

Commonwealth Army of the Philippines, Recognized Guerrilla Forces, or the New Philippine

Scouts. Veterans who served as Regular, or “Old,” Philippine Scouts were categorized as U.S.

veterans. They were, and remain, generally entitled to all veterans’ benefits for which any other

U.S. veteran is eligible.

’›œȱž™™•Ž–Ž—Š•ȱž›™•žœȱ™™›˜™›’Š’˜—ȱŽœŒ’œœ’˜—ȱŒȱǻǯǯȱŝşȬ

řŖŗǼȱ

Enacted on February 18, 1946, P.L. 79-301 authorized a $200 million appropriation to the

Commonwealth Army of the Philippines with a provision limiting benefits for these veterans to:

(1) compensation for service-connected disabilities5 or death; and (2) National Service Life

Insurance contracts already in force.6 Furthermore, this provision included bill language stating

that

Service before July 1, 1946, in the organized military forces of the government of the

Commonwealth of the Philippines while such forces were in the service of the Armed Forces

3

38 C.F.R. §3.40(d).

38 C.F.R. §3.40(b).

5

The term “service-connected” means, with respect to disability, that such disability was incurred or aggravated in the

line of duty in the active military, naval, or air service. The VA determines whether veterans have service-connected

disabilities, and for those with such disabilities, assigns ratings from 0 to 100% based on the severity of the disability.

Percentages are assigned in increments of 10%.

6

P.L. 79-301; 60 Stat. 14.

4

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŝȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

of the United States pursuant to the military order of the President, dated July 26, 1941 ...

shall not be deemed to have been active military, naval or air service for the purposes of any

law of the United States conferring rights, privileges, or benefits upon any person by reason

of the service of such person or the service of any other person in the Armed Forces.7

Because of differences between economic conditions and living standards in the United States

and the Philippines, P.L. 79-301 also provided that any benefits paid to Commonwealth Army

veterans would be paid at the rate of one Philippine peso to each dollar8 for a veteran who was a

member of the U.S. Armed Forces, with the assumption that one peso would obtain for Philippine

veterans in the Philippine economy the equivalent of $1 of goods and services for American

veterans in the American economy. Prior to the enactment of P.L. 79-301, Commonwealth Army

veterans were determined by the then Veterans’ Administration to be eligible for U.S. veterans’

benefits.9

ŽŒ˜—ȱž™™•Ž–Ž—Š•ȱž›™•žœȱ™™›˜™›’Š’˜—ȱŽœŒ’œœ’˜—ȱŒȱǻǯǯȱ

ŝşȬřşŗǼȱ

Enacted on May 27, 1946, P.L. 79-391 provided that service in the Philippine Scouts (the New

Philippine Scouts) under Section 14 of the Armed Forces Voluntary Recruitment Act of 1945

(P.L. 79-190) shall not be deemed to have been active military or air service for the purpose of

any laws administered by the Veterans’ Administration.

ސ’œ•Š’ŸŽȱ —Ž—ȱ˜ȱ‘ŽȱŽœŒ’œœ’˜—ȱŒœȱ

There is little background information on the intent of Congress in passing the first Rescission

Act, as it affects veterans of the Commonwealth Army. However, statements made by Senator

Carl Hayden during hearings on the second Rescission Act, which affected New Philippine

Scouts, provide some indication of legislative intent in the passage of the first Rescission Act, and

to the subsequent passage of the second Rescission Act. Furthermore, other events at the time

may provide some context in which the Rescission Acts were considered.

At the end of World War II, when Congress was considering a $200 million appropriation for the

support of the Philippine Army, Senator Carl Hayden of the Senate Committee on Appropriations

sent a letter to General Omar Bradley, then Director of the Veterans’ Administration, requesting

information concerning the status of the Filipino servicemen and the potential cost of their

veterans benefits. In his response to the committee, General Bradley indicated that the total cost

of paying veterans’ benefits to members of the Philippine Commonwealth Army and their

dependents, under then existing veterans’ laws, would amount in the long run (75 years) to about

$3 billion. It seems clear from Senator Hayden’s statements that the passage of the first

7

Ibid; now codified at 38 U.S.C. §107.

For example, if a veteran who was a member of the U.S. Armed Forces received $50 for a benefit, a veteran who was

a member of the Commonwealth Army would receive 50 pesos for the same benefit.

9

In 1942, the Solicitor of the VA ruled that members of the Commonwealth Army called into the service of the United

States by the President’s order of July 26, 1941, were eligible for benefits under the Veterans’ National Life Insurance

Act. In 1945, General Omar Bradley, then Director of the Veterans’ Administration, expressed an opinion to the Senate

Appropriations Committee that the term “veterans” included these Commonwealth Army veterans. Filipino American

Veterans and Dependents Association v. United States of America, 391 F. Supp. 1314 (N.D. Cal. 1974).

8

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

Şȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

Rescission Act was meant to balance competing financial interests by providing some benefits,

such as pensions for service-connected disability or death, while at the same time reducing the

U.S. liability for future benefits. To accomplish this, Senator Hayden, Senator Russell and

Senator Brooks included language by way of an amendment to the first Rescission bill stating that

service by members of the Commonwealth Army was not considered active military, naval, or air

service in the U.S. Armed Forces. Furthermore, hearings on the second Rescission Act also

clearly indicate that it was Congress’s intent to limit wartime benefits given to New Philippine

Scouts:

Because neither the President nor the Congress has declared an end to the war, a [New]

Philippine Scout upon separation from service would be entitled to the same benefits as an

American soldier who served in time of war. Unless this amendment [to the second

Rescission Act] is adopted, a [New Philippine] Scout would be entitled to claim every

advantage provided for the G.I. bill of rights such as loans, education, unemployment

compensation, hospitalization, domiciliary care and other benefits provided by the laws

administered by the Veterans’ Administration. Because hostilities have actually ceased, the

amendment makes it perfectly clear that these wartime benefits do not apply and that the

50,000 men now authorized to be enlisted in the [New] Philippine Scouts will be entitled

only to pensions resulting from service-connected disability or service-connected death.10

In addition, the passage of the Rescission Acts may have been influenced by other bills under

consideration by Congress at that time. In 1946, Congress passed the Philippine Rehabilitation

Act (P.L. 79-370) and the Philippine Trade Act (P.L. 79-371). The terms of the Rehabilitation Act

required the United States to pay claims for rehabilitation of the Philippines and war damage

claims up to $620 million. Of this sum, $220 million was allocated for repair of public property.

The remaining $400 million was allocated for war damage claims of individuals and associations.

The Philippine Trade Act provided for free trade between the United States and the Philippines

until July 3, 1954. These bills under consideration at the time would have provided economic

stability to the newly emerging nation. According to Senator Hayden:

As I see it, the best thing the American government can do is to help the Filipino people to

help themselves. Where there was a choice between expenditures for the rehabilitation of the

economy of the Philippine Islands and payments in cash to Filipino veterans, I am sure it is

better to spend any equal sum of money, for example, on improving the roads and port

facilities. What the Filipino veteran needs is steady employment rather than to depend for his

living upon a monthly payment sent from the United States.11

Therefore, it seems clear that Congress considered the Rescission Acts in the context of providing

for the comprehensive economic development of the soon to be sovereign Republic of the

Philippines.

10

U.S. Congress, Senate Committee on Appropriations, Subcommittee on Deficiency, Hearings on H.R. 5604, 79th

Cong., 2nd sess., March 25, 1946, p. 29.

11

U.S. Congress, Senate Committee on Appropriations, Subcommittee on Deficiency, Hearings on H.R. 5604, 79th

Cong., 2nd sess., March 25, 1946, p. 61.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

şȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

Ž—Ž’ȱ‘Š—ŽœǰȱŗşŚŜȬŗşşŞȱ

ŽŠ•‘ȱŠ›ŽȱŽ—Ž’œȱ

ǯǯȱŞŖȬŞŜśȱ

Enacted on July 1, 1948, P.L. 80-865 authorized aid not to exceed $22.5 million for the

construction and equipping of a hospital in the Philippines to provide care for Commonwealth

Army veterans and Recognized Guerrilla Forces. P.L. 80-865 also authorized $3.3 million

annually for a five-year grant program to reimburse the Republic of the Philippines for the care

and treatment of service-connected conditions of those veterans. In 1951, plans for a new hospital

were completed, and construction of a new hospital began in 1953. Work was completed at a total

cost of $9.4 million, and the hospital was dedicated on November 20, 1955.12 This facility came

to be known as the Veterans Memorial Medical Center (VMMC), and the facility was turned over

to the Philippine government. The hospital is now organized under the Philippine Department of

National Defense.13

ǯǯȱŞŘȬřŗŗȱ

Enacted on April 9, 1952, P.L. 82-311 authorized the President to transfer the United States Army

Provisional Philippine Scout Hospital at Fort McKinley, Philippines, including all the equipment

contained in the hospital, to the Republic of the Philippines. P.L. 82-311 also authorized a fiveyear grant program to reimburse the Republic of the Philippines for the medical care of Regular

Philippine Scouts undergoing treatment at the United States Army Provisional Philippine Scout

Hospital.

ǯǯȱŞřȬŚŘŗȱ

Enacted on June 18, 1954, P.L. 83-421 extended the five-year grant program for an additional five

years, through June 30, 1958, and authorized payments of $3 million for the first year, and then

payments decreasing by $500,000 each year. No change was made to the provision stating that

funds could be used for either medical care on a contract basis or for hospital operations.

ǯǯȱŞśȬŚŜŗȱ

The VMMC was originally intended to provide care for service-connected conditions only.

However, P.L. 85-461 enacted on June 18, 1958, expanded its use to include veterans of any war

for any nonservice-connected disability if such veterans were unable to defray the expenses of

necessary hospital care. The VA was authorized to pay for such care on a contract basis. P.L. 85461 also authorized the President, with the concurrence of the Republic of the Philippines, to

modify the agreement between the United States and the Philippines with respect to hospital and

12

U.S. Congress, House Committee on Veterans’ Affairs, Medical Care of Veterans, Committee print, 90th Cong., 1st

sess., April 17, 1967. House Committee print no. 4, p. 384.

13

See http://server.pvao.mil.ph/vmmc.html.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŖȱ

ȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

medical care for Commonwealth Army veterans, and Recognized Guerrilla Forces.14 The law

stated that in lieu of any grants made after July 1, 1958, the VA may enter into a contract with the

VMMC under which the United States would pay for hospital care in the Republic of the

Philippines for Commonwealth Army veterans and Recognized Guerrilla Forces determined by

the VA to need such hospital care for service-connected disabilities. P.L. 85-461 also required that

the contract must be entered into before July 1, 1958, would be for a period of not more than five

consecutive fiscal years beginning July 1, 1958, and shall provide for payments for such hospital

care at a per diem rate to be jointly determined for each fiscal year by the two governments to be

fair and reasonable.

P.L. 85-461 also authorized the Republic of the Philippines to use at their discretion beds,

equipment, and other facilities of the VMMC at Manila, not required for hospital care of

Commonwealth Army veterans with service-connected disabilities, for the care of other persons.15

ǯǯȱŞŞȬŚŖȱ

Enacted on June 13, 1963, P.L. 88-40 extended the grant program for another five years, through

June 30, 1968. Under provisions of P.L. 88-40, costs for any one fiscal year were not to exceed

$500,000.

ǯǯȱŞşȬŜŗŘȱ

Enacted on September 30, 1966, P.L. 89-612 expanded the grant program to include hospital care

at the VMMC for Commonwealth Army veterans, determined by the VA to need such care for

nonservice-connected disabilities if they were unable to defray the expenses of such care. P.L. 89612 also authorized the provision of hospital care to New Philippine Scouts for service-connected

disabilities, and for nonservice-connected conditions if they were enlisted before July 4, 1946, the

date of Philippine independence. P.L. 89-612 also authorized $500,000 for replacing and

upgrading equipment and for restoring the physical plant of the hospital. P.L. 89-612 also

provided an annual appropriation of $100,000 for six years, beginning in 1967, for grants to the

VMMC for medical research and training of health service personnel.

ŽŽ›Š—œȱ ŽŠ•‘ȱŠ›Žȱ¡™Š—œ’˜—ȱŒȱ˜ȱŗşŝřȱǻǯǯȱşřȬŞŘ)

Enacted on August 1, 1973, P.L. 93-82 authorized nursing home care for eligible Commonwealth

Army veterans and New Philippine Scouts. P.L. 93-82 also provided that available beds,

equipment, and other facilities at the VMMC could be made available, at the discretion of the

Republic of the Philippines, for other persons, subject to: (1) priority of admissions and

hospitalizations given to Commonwealth Army veterans or New Philippine scouts needing

hospital care for service-connected conditions; and (2) the use of available facilities on a contract

14

This law defined “Commonwealth Army Veterans” as “persons who served before July 1, 1946, in the organized

military forces of the Government of the Philippines, while such forces were in the service of the Armed Forces

pursuant to the military order of the President dated July 26, 1941, including among such military forces organized

guerrilla forces under commanders appointed, designated, or subsequently recognized by the Commander in Chief,

Southwest Pacific Area, or another competent authority in the Army of the United States, and who were discharged or

released from such service under conditions other than dishonorable.”

15

This language contained in P.L. 85-461 was restated in P.L. 85-857, which consolidated the laws of the Veterans’

Administration.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŗȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

basis for hospital care or medical services for persons eligible to receive care from the VA. P.L.

93-82 also authorized funding of up to $2 million annually for medical care, and provided for

annual grants of up to $50,000 for education and training of health service personnel at the

VMMC, and of up to $50,000 for replacing and upgrading equipment and maintaining the

physical plant.

ŽŽ›Š—œȂȱ ŽŠ•‘ȱŠ›Žǰȱ›Š’—’—ǰȱŠ—ȱ–Š••ȱžœ’—Žœœȱ˜Š—ȱŒȱ˜ȱŗşŞŗȱȱ

ǻǯǯȱşŝȬŝŘ)

Enacted on November 3, 1981, P.L. 97-72 made substantial changes to then existing law. P.L. 9772 amended section 632 [now 1732] of Title 38 “to make it explicitly clear that it is the position

of the United States that the primary responsibility for providing medical care and treatment for

Commonwealth Army veterans and New Philippine Scouts rests with the Republic of the

Philippines.”16 The committee report accompanying P.L. 97-72 stated the long-standing position

of Congress with regard to health care for Filipino veterans:

There is little doubt that in 1948 when Congress enacted P.L. 80-865, authorizing a 5-year

grant program to provide medical benefits to Filipino veterans with service-connected

illnesses, including the authorization for constructing and equipping a hospital in Luzon, it

intended that this program be temporary and that the Philippine government would

eventually assume responsibility for funding the program and operations of the hospital....

These grants were renewed for an additional 5 years in 1954, but on a decreasing annual

scale of payments (P.L. 83-421). The Committee report on this bill stated that progressively

reducing these grants over five years was to make clear the intent of Congress that the

Philippine government would be expected to gradually assume full responsibility for the

hospital.... However, because of the moral obligation of the United States to provide care for

Filipino veterans and the concern that the Philippine government would not be able to

maintain a high standard of medical care to these veterans if assistance by the United States

were withheld, this program was extended in 5-year increments through [FY] 1978. P.L. 89612, enacted in September 1966, expanded the program to include medical care for

nonservice-connected disabilities if the veteran were unable to defray the expense of medical

care and included New Philippine Scouts in the coverage.17

Furthermore, P.L. 97-72 gave the VA the authority to contract for the care and treatment of U.S.

veterans in the VMMC, and to provide grant authority of $500,000 per year for a period of five

years for making grants to the VMMC to assist in the replacement and upgrading of equipment

and the rehabilitation of the physical plant and facilities of the center.

The grant program was further authorized by making amendments to the grant amount and the

time frame for entering into contracts by the following acts:

•

P.L. 100-687, enacted on November 18, 1988;

•

Department of Veterans Affairs Health-Care Personnel Act of 1991 (P.L. 102-40),

enacted on May 7, 1991;

16

U.S. Congress, House Committee on Veterans’ Affairs, Veterans’ Health Care, Training, and Small Business Loan

Act of 1981. Report to accompany H.R. 3499. 97th Cong., 1st sess., H.Rept. 97-79.

17

Ibid.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŘȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

•

Veterans’ Benefits Improvement Act of 1991 (P.L. 102-86), enacted on August

14, 1991; and

•

Veterans Health Care Act of 1992 (P.L. 102-585), enacted on November 4, 1992.

In 1993, the VA discontinued referrals of U.S. veterans to the VMMC, because the VA determined

that the VMMC was not providing a reasonable standard of care. Until this time, the VMMC had

been the primary contract hospital for the VA in the Philippines. Because of this change in the

referral process, the grant-in-aid funding for the VMMC was last authorized by P.L. 102-585

through September 30, 1994, and the program was allowed to expire. However, Congress

continued to appropriate funds for the program through September 30, 1996.18 During a tour of

the VMMC in May 2006, the VA Secretary announced that “the VMMC will receive a grant of

$500,000, or approximately 25.5 million pesos, from the U.S. government to help the institution

purchase additional equipment and materials for the treatment of Filipino veterans.”19 The VA

currently provides grants of equipment under the authority of 38 U.S.C. §1731.

˜—Ȭ ŽŠ•‘ȱŠ›ŽȱŽ—Ž’œȱ

ǯǯȱŞŘȬŘŗȱ

Enacted on April 25, 1951, P.L. 82-21 authorized funeral and burial benefits, including burial

flags, for Commonwealth Army veterans residing in the Philippines (at half the rate of U.S.

veterans). These benefits were not extended to New Philippine Scouts.

ǯǯȱŞşȬŜŗřȱ

Enacted on September 30, 1966, P.L. 89-613 extended dependents’ and survivors’ education

assistance to include children of Commonwealth Army veterans and New Philippine Scouts.

These benefits were made payable at half the rate of the benefits for children of U.S. veterans.

ǯǯȱŞşȬŜŚŗȱ

As a result of a Joint Republic of the Philippines-U.S. Commission study of Philippine veterans’

problems, P.L. 89-641, enacted on October 11, 1966 changed how benefits were to be computed

by providing for the payment of benefits in pesos based on pesos being equal in value to U.S. 50

cents for each U.S. dollar authorized. In 1978, testifying before the Senate Committee on

Appropriations, the General Accounting Office (now the Government Accountability Office)

stated that

[T]he intent of the 1966 law was apparently to restore Philippines beneficiaries to

approximately their situation in 1946, taking into account the changes occurring in the

economies and living standards in the Philippines and the U.S. since 1946. Since the law was

enacted, however, legislative increases and devaluations of the peso have provided Filipino

18

Department of Veterans Affairs and Housing and Urban Development, Independent Agencies Appropriations Act,

1995 (P.L. 103-327).

19

U.S. Embassy Press Release, “Medical Center to Benefit from 25-Million Peso Grant; Hosts Visiting U.S. Secretary

of Veterans Affairs,” May 1, 2006.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗřȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

veterans with undue increases in benefits and has resulted in Filipino veterans achieving

much higher levels of benefits than their counterparts in the U.S.20

Ž—Ž’ȱ‘Š—Žœȱ’—ŒŽȱŗşşŞȱ

˜œŽ›ȱŠ›Žȱ —Ž™Ž—Ž—ŒŽȱŒȱ˜ȱŗşşşȱǻǯǯȱŗŖŜȬŗŜş)

Enacted on December 12, 1999, P.L. 106-169 expanded U.S. income-based benefits to certain

World War II veterans, including Filipino veterans, who served in the organized military forces of

the Philippines while those forces were in the service of the U.S. Armed Forces. Until the

enactment of this act, recipients of Supplemental Security Income (SSI)21 were generally required

to reside in the United States to maintain their eligibility. This law enabled eligible Filipino

veterans to return to the Philippines and retain 75% of their SSI benefits.

‘ŽȱޙЛ–Ž—œȱ˜ȱŽŽ›Š—œȱŠ’›œȱŠ—ȱ ˜žœ’—ȱŠ—ȱ›‹Š—ȱ

ŽŸŽ•˜™–Ž—ǰȱŠ—ȱ —Ž™Ž—Ž—ȱŽ—Œ’Žœȱ™™›˜™›’Š’˜—œȱŒǰȱŘŖŖŗȱ

ǻǯǯȱŗŖŜȬřŝŝ)

Enacted on October 27, 2000, P.L. 106-477 changed the rate of compensation payments to

veterans of the Commonwealth Army of the Philippines and veterans of Recognized Guerrilla

Forces who lawfully reside in the United States. P.L. 106-377 also authorized the VA to provide

hospital care, medical services, and nursing home care to these two veterans groups, similar to

care and services available to U.S veterans. In order to receive these benefits, they were required

to be legal permanent residents of the United States and be receiving VA disability compensation.

P.L. 106-377, also authorized outpatient care at the Manila VA Outpatient Clinic to serviceconnected U.S. veterans for their nonservice-connected disabilities.22 Prior to the enactment of

P.L. 106-377, the VA was limited to providing outpatient treatment for U.S. veterans in the

Philippines only for their service-connected conditions.

‘ŽȱŽŽ›Š—œȱŽ—Ž’œȱŠ—ȱ ŽŠ•‘ȱŠ›Žȱ –™›˜ŸŽ–Ž—ȱŒȱ˜ȱŘŖŖŖȱ

ǻǯǯȱŗŖŜȬŚŗş)

Enacted on November 1, 2000, P.L. 106-419 changed the amount of monetary burial benefits that

the VA will pay to survivors of veterans of the Philippine Commonwealth Army and Recognized

Guerrilla Forces who lawfully reside in the United States at the time of death.

20

U.S. Congress, Senate Committee on Appropriations, Veterans Administration Benefits Programs in the Republic of

the Philippines, Hearings, 95th Cong., 1st sess., August 31, 1977 (Washington: GPO, 1978).

21

This program is administered by the Social Security Administration.

22

38 U.S.C. Section 1724(e). This clinic refers to the Manila VA Clinic, which is located at 2201 Roxas Boulevard,

Pasay City, Metro Manila, and not to the VMMC.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŚȱ

ȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

‘ŽȱŽŽ›Š—œȱ ŽŠ•‘ȱŠ›ŽǰȱŠ™’Š•ȱœœŽǰȱŠ—ȱžœ’—Žœœȱ

–™›˜ŸŽ–Ž—ȱŒȱ˜ȱŘŖŖřȱǻǯǯȱŗŖŞȬŗŝŖ)

Enacted on December 6, 2003, P.L. 108-170 authorized the VA to provide hospital care, nursing

home care, and outpatient medical services to Filipino Commonwealth Army veterans, veterans

of Recognized Guerrilla Forces, and New Philippine Scouts. Currently, these groups of veterans

are eligible for hospital care, nursing home care, and outpatient medical services within the

United States.

‘ŽȱŽŽ›Š—œȱŽ—Ž’œȱŒȱ˜ȱŘŖŖřȱǻǯǯȱŗŖŞȬŗŞř)

Enacted on December 16, 2003, P.L. 108-183 added service in the New Philippine Scouts as

qualifying service for payment of disability compensation, dependency, and indemnity

compensation (DIC) and monetary burial benefits at the full-dollar rate, and provided for payment

of DIC at the full-dollar rate to survivors of veterans of the Philippine Commonwealth Army and

Recognized Guerrilla Forces who lawfully reside in the United States.

It should be noted that veterans of the U.S. Armed Forces have the same entitlement to monetary

benefits in the Philippines that they would have in the United States, with the exception of home

loans and related programs, which are not available in the Philippines.

Table 1 provides a summary of benefits currently available to Filipino veterans and survivors by

category of service (Regular Philippine Scouts, Commonwealth Army of the Philippines,

Recognized Guerilla Forces, and New Philippine Scouts).

ސ’œ•Š’˜—ȱ’—ȱ‘ŽȱŗŗŖ‘ȱ˜—›Žœœȱ

H.R. 760 and S. 57 would have eliminated the distinction between the Regular or “Old”

Philippine Scouts and the other three groups of veterans—Commonwealth Army of the

Philippines, Recognized Guerrilla Forces, and New Philippine Scouts—making them all fully

eligible for VA benefits similar to those received by U.S. veterans. H.R. 760 was reported out of

committee. S. 66 would have required the Secretary of the Army to validate claims by Filipinos

that they performed military service in the Philippine Islands during World War II that would

qualify them for benefits under U.S. law and issue a certificate of service.

S. 1315, as passed by the Senate, incorporated provisions from S. 57. S. 1315 would have altered

current law to deem certain service with Philippine forces during World War II as active service

and establish rates for the Improved Pension and the Death Pension for veterans who served with

the Philippine forces and their survivors living outside the United States. Under the provisions of

S. 1315, single Filipino veterans living outside the United States would receive $3,600 a year,

married veterans would receive $4,500 a year, and veterans’ survivors would receive $2,400 a

year. However, under the bill, veterans living outside the United States who are eligible for, or

receiving, the Social Security benefit for World War II veterans living overseas would not be not

eligible for the new Improved Pension rates. The bill also would not have applied the current

income or net worth limitations for the Improved Pension and the Death Pension for veterans who

served with the Philippine forces and their survivors living outside the United States. In addition,

the bill would not have required any veteran who served with the Philippine forces or their

survivors receiving other federal benefits at the time of enactment to apply for the Improved

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗśȱ

ȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

Pension or the Death Pension if receiving the new benefits would have made them ineligible for

their other federal benefits or reduced the amount of their other federal benefits. S. 1315 provided

that disability compensation (for service-connected disabilities) would be paid to all recipients at

the same rate regardless of residence, while maintaining the general payment rate of 50 cents per

dollar for other benefits to Filipino veterans and survivors living outside the United States.23 On

September 22, 2008, the House passed an amended version of S. 1315 that did not contain the

Filipino benefit provisions.

H.R. 6897, as passed by the House on September 23, 2008, would have provided a one-time

payment to Filipino veterans who served in the Commonwealth Army of the Philippines,

Recognized Guerrilla Forces, and New Philippine Scouts. The payment would be $15,000 for

U.S. citizens and $9,000 for non-U.S citizens. Payments are made from the Filipino Veterans

Equity Compensation Fund and are subject to funds being available (appropriated). P.L. 110-329

appropriated $198 million for the Filipino Veterans Equity Compensation Fund.

ސ’œ•Š’˜—ȱ’—ȱ‘Žȱŗŗŗ‘ȱ˜—›Žœœȱ

The American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) authorizes a onetime payment from the Filipino Veterans Equity Compensation Fund to Filipino veterans who

served in the Commonwealth Army of the Philippines, Recognized Guerrilla Forces, and New

Philippine Scouts. The one-time payment is $15,000 for U.S. citizens and $9,000 for non-U.S

citizens. Filipino veterans currently receiving benefits will continue to receive those benefits. The

one-time payment does not impact eligibility for federally assisted programs. The one-time

payment is considered a settlement for all future claims for benefits based on service in the

Commonwealth Army of the Philippines, Recognized Guerrilla Forces, and New Philippine

Scouts. The exception is that a veteran may receive benefits that the veteran would have been

eligible for based on the laws in effect on the day before enactment (September 17, 2009).

23

To offset the cost of the expanded pension benefits for Filipino veterans and survivors, S. 1315 would have denied,

to veterans over age 65 receiving the Improved Pension benefit, the special monthly pension (for housebound or aid

and attendance) unless the veteran also met the disability requirements for the Improved Pension program. This would

have overturned a decision of the United States Court of Appeals for Veterans Claims in Hartness v. Nicholson, 20

VET. App. 216 (2006).

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŜȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

. Filipino Veterans and Survivors, Eligibility for VA Benefits

Table 1

Scouts

Living Living

in the Outside

U.S the U.S.

Commonwealth

Army of the

Philippines

Living Living

in the Outside

U.S the U.S.

Living

in the

U.Sa

Yes

Yes

Yes

Yes

b

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Regular, or

“Old,” Philippine

Veterans’ Benefit

Compensation for

service-connected

disability

Dependency and

Indemnity

Compensation/DIC

(survivors)

Medical care

Education benefits

Education benefits for

children

Pension for

nonservice-connected

disability

Death pension

(survivors)

Burial allowance

Burial flag

Burial in a national

cemetery

Clothing allowance

Guaranteed housing

loans

Small business loans

Veterans Employment

Training Service

(VETS)

Adaptive housing

grants

Adaptive vehicle

grants

d

f

Recognized

Guerrilla Forces

New Philippine

Scouts

Living

Living

Living

Outside

in the

Outside

the U.S.

U.Sa

the U.S.

Yes

Yes

b

Yes

Yes

b

b

Yes

Yes

b

Yes

Yes

b

Yes

No

No

No

Yes

No

No

No

Yes

No

No

No

Yes

Yes

Yes

b

Yes

Yes

b

Yes

Yes

Yes

Yes

No

No

No

No

No

No

Yes

Yes

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

No

Yes

No

Yes

Yes

Yes

Yes

b

Yes

Yes

b

Yes

Yes

Yes

No

e

No

No

No

No

No

No

Yes

No

e

No

No

No

No

No

No

Yes

Yes

g

No

No

No

No

No

No

Yes

No

e

No

No

No

No

No

No

Yes

Yes

No

No

No

No

No

No

a

c

a

b

b

b

b

b

Table prepared by the Congressional Research Service (CRS) based on information provided by the

Department of Veterans Affairs.

a. Living in the United States as a U.S. citizen or legal resident.

b. Benefit is paid at the rate of 50 cents per $1.

c. Regular or “Old” Philippine Scouts residing in the Philippines are only eligible for hospital care for treatment

of service-connected conditions. In addition, they are authorized to receive outpatient care in facilities

other than the Manila VA Outpatient Clinic for service-connected conditions only. Finally, if they are

Source:

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŝȱ

ŸŽ›Ÿ’Ž ȱ˜ȱ’•’™’—˜ȱŽŽ›Š—œȂȱŽ—Ž’œȱ

ȱ

service-connected, they are eligible to receive care for service-connected and nonservice-connected

conditions at the Manila VA Outpatient Clinic based on resources available at the clinic.

d. The time period for using education benefits has expired.

e. Certain benefits are not available to any U.S. veteran living overseas.

f. This program did not exist in 1946.

g.

Must be enrolled in a degree granting college or university.

ž‘˜›ȱ˜—ŠŒȱ —˜›–Š’˜—ȱ

(name redacted)

Specialist in Social Policy

[redacted]@crs.loc.gov, 7-....

(name redacted)

Information Research Specialist

[redacted]@crs.loc.gov, 7-....

(name redacted)

Analyst in Veterans Policy

[redacted]@crs.loc.gov, 7-....

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŞȱ

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