VETS TO GET "FREE" CREDIT MONITORING FROM THE VA --

BUT, WHO WILL PAY FOR IT? -- One year of "free" credit

monitoring to be funded out of VA's budget unless something

changes. What services will be cut to pay for this?

All information on VA data theft on this page... http://www.vawatchdog.org/va%20data%20theft%20news.htm

What we have here is a real problem.

While the VA has now announced that they will pay for one year of "free" credit monitoring for vets who received the "data theft" letter...how will they pay for it?

Right out of their budget, given all indications at the moment.

This means less money for needed VA projects and programs.

Here's what we have at this point.

The VA's press release makes no mention of how this will be funded.  That press release here... http://www.vawatchdog.org/old%20newsflashes%20JUN%2006/newsflash06-21-2006-13.htm

In the AP story below, VA Secretary Nicholson says ... No money will come out of program services, although there may be ways administratively to "tighten the belt."

This is baloney.  Let's put this plainly.  ANY money taken out of ANY portion of the VA budget will have an effect on veterans' services.

In the Vietnam Veterans of America press release below we find ...  ...the President, and Congress must move to find these additional funds.

So far, that hasn't happened. 

But, some members of Congress are fighting mad and want even more for veterans and want to make sure that no monies are taken from the VA budget.

From House Minority Leader Nancy Pelosi (D-CA) in the press release below ... We must also ensure that our veterans' health care services and their earned benefits are not cut...

Now, here's the best part.  Senator Larry Craig (R-ID), Chairman of the Senate Committee on Veterans' Affairs, informed us of this ... Secretary Nicholson has informed Congress that VA will pay for these services in the short term by utilizing carry-over money the agency has...  This is from Craig's most recent press release here... http://www.vawatchdog.org/senatecvanews/senatecvanews06-21-06.htm

What carry-over money?  The carry-over from last year meant for healthcare?  That's the only carry-over I know about.

Folks, we're being stiffed twice with this deal...first our data is stolen...now, they are taking money from the VA budget to give us "free" credit monitoring.

And, remember, Craig thinks the VA has too much money already.  That here... http://www.vawatchdog.org/old%20newsflashes%20MAY%2006/newsflash05-04-2006-1.htm

And, the hot news from Capitol Hill today is that Craig is holding up about $350 million in VA building funds.  Why?  To pay for this? 

Unless Congress acts and the White House approves additional funding to pay for the data heist debacle, the money comes from the current VA budget...and veterans lose.

Story here... http://abclocal.go.com/wpvi/story?section=nation_world&id=4292706

Story below:

---------------

MILLIONS OF VETS CAN GET FREE CREDIT MONITORING

AP

WASHINGTON - June 21, 2006 - - The government said Wednesday it would provide free credit monitoring to millions of veterans whose personal information was stolen last month, acknowledging it was not close to catching the thieves.

Veterans Affairs Secretary Jim Nicholson said the agency would seek to protect millions of vets and military troops against identity theft after names, Social Security numbers and birthdates were taken from a VA data analyst's home on May 3.

Those eligible for one year of credit monitoring will be any of the 17.5 million people who are known to have had their Social Security numbers compromised. The VA has said up to 26.5 million could be affected, although some of them appeared to be duplicate names.

"It's not going to be cheap," Nicholson said at a news briefing, adding that authorities were not any closer to finding the stolen data. "Free credit monitoring will help safeguard those who may be affected, and will provide them with the peace of mind they deserve."

He said those who have already received letters from VA saying they are at risk will receive additional information - probably in early August after the VA solicits bids from contractors - on how to sign up for the free monitoring.

The VA also will hire a company for data analysis to look for possible misuse of the personal information. There have been no reports so far of any identity theft stemming from the burglary in suburban Maryland.

Veterans groups and lawmakers from both parties have blasted the VA for the theft, which occurred after several years of warnings by auditors that information security was lax. The data analyst - who has since been dismissed - had taken the information home for three years without permission.

The VA has also been criticized for waiting nearly three weeks - until May 22 - to notify veterans about the theft.

Earlier this month, more than 150 House Democrats called on President Bush to request new emergency funding to provide credit monitoring to veterans. Veterans groups also have filed suit against the VA, charging their privacy was violated and demanding $1,000 in damages for each person.

On Wednesday, veterans advocates praised the announcement as a good "first step."

"Any resources expended to address the VA data breach must not be taken from the VA's current budget but rather should be new funds, as veterans and military families must not be punished for the administration's failures," said Rep. Lane Evans, D-Ill., the top Democrat on the House Veterans Affairs Committee.

Joe Davis, spokesman for Veterans of Foreign Wars, agreed. "We fully expect the Congress and the administration will provide the additional funding so that no VA program is negatively impacted," he said.

At the briefing, Nicholson said the VA was working with the White House to identify money to pay for the credit monitoring in what has become one of the nation's largest security breaches. No money will come out of program services, although there may be ways administratively to "tighten the belt."

The VA has said it cost the government about $14 million to notify veterans and troops of the data theft by letter, and an additional $200,000 is being spent per day to maintain a call center.

"We will get the money and pay for it," Nicholson said.

---------------

VVA press release here... http://releases.usnewswire.com/GetRelease.asp?id=67904

VVA press release below:

---------------

VVA Praises Credit Monitoring Move By VA; But Questions Remain

To: National Desk

Contact: Mokie Porter of Vietnam Veterans of America, 301-585-4000, ext. 146

WASHINGTON, June 21 /U.S. Newswire/ -- Vietnam Veterans of America applauds the move by Secretary of Veterans Affairs James Nicholson to seek bids from private companies to monitor the credit of all veterans and active-duty military personnel who may be at risk as a result of the largest personal data information breach in history.

"This move to pay for the credit monitoring for all veterans and active-duty servicemen and women who may be a risk is a good move by secretary Nicholson, and we commend him for it," said VVA National President John Rowan. "Since the Secretary is seeking bids for this service, the cost is still unclear. However, VVA is adamantly opposed to any further diminishment of VA health care and other vital services that are already under-funded to pay for this. While we share the Secretary's commitment that this must be paid for with added funds, the Office of Management & Budget (OMB), the President, and Congress must move to find these additional funds."

Rowan said that Sec. Nicholson's announcement is "a good first step toward addressing one aspect of the issues uncovered by the data theft. The questions of what the VA Policy & Planning office was doing with confidential and privileged information on individual veterans and active-duty service members still have not been addressed, much less satisfactorily answered," he said.

Questions have been raised as to whether they had legitimate reason to have Social Security data, disability codes and percentages, and other information about individuals in that office. What work were they doing? Since OMB or the White House had to have helped them get this data from other agencies, what was the purpose? These are but a few of the unanswered questions that remain, and that must be satisfactorily answered, and soon."

---

Vietnam Veterans of America (VVA) is the nation's only congressionally chartered veterans service organization dedicated to the needs of Vietnam-era veterans and their families. VVA's founding principle is "Never again will one generation of veterans abandon another."

---------------

Nancy Pelosi press release here... http://releases.usnewswire.com/GetRelease.asp?id=67929

Press release below: 

---------------

Pelosi: Comprehensive Legislation is Necessary to Protect Veterans From Identity Theft

To: National Desk

Contact: Brendan Daly or Jennifer Crider, 202-226-7616, both of the Office of House Democratic Leader Nancy Pelosi, Web: http://democraticleader.house.gov

WASHINGTON, June 21 /U.S. Newswire/ -- House Democratic Leader Nancy Pelosi released the following statement today after the Department of Veteran's Affairs announced that they will provide one year of free credit monitoring to veterans whose sensitive personal information may have been stolen:

"Today, the Department of Veteran's Affairs has finally taken pro-active action to protect the 26.5 million veterans and military personnel whose private information has been compromised due to the Bush Administration's incompetence.

"One year of free credit monitoring is a necessary first step, but it must be followed by a much more comprehensive approach. Democrats, led by Congressmen John Salazar and Lane Evans, have introduced the Comprehensive Veterans' Data Protection and Identity Theft Prevention Act of 2006 (H.R. 5588) to protect the personal information of our veterans.

"This comprehensive legislation would protect veterans from identity theft and other harm, with a year of free credit monitoring, an additional free credit report in the second and third years, one year of free fraud alert, and a free credit security freeze. It would also create an Ombudsman for Data Security at the VA charged with assisting veterans who are the victims of a data breach and/or identity theft.

"We must also ensure that our veterans' health care services and their earned benefits are not cut in order to pay for the Bush Administration's incompetence. Democrats have called on the President to provide emergency funding to pay for any credit reporting assistance. These funds must not come from previously appropriated or budgeted dollars for the Department of Veteran's Affairs. Our veterans should not suffer because of this egregious mistake."

---------------

Larry Scott

(go back to VA Watchdog dot Org Home Page)

	Web www.vawatchdog.org

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