Whatever the truth is, attention is now turning to the appropriations process as the annual budget drama begins. Final decisions on VOCA spending limits are not likely before autumn, when appropriations bills are signed into law.

Compensation Grants Remain Unaffected
Grants to state compensation programs for financial assistance to victims remain unaffected by these caps, at least in any direct way. Since compensation grants are limited to 40% of each state's own payout in state dollars, the total amount necessary to provide states with full compensation grants remains well below $100 million, and well within what any potential cap's limitations on those grants. Congress would have to set the cap at less than half its current level of $537.5 million before compensation grants are affected.

However, as compensation programs expand eligibility and increase benefits, the total amount available in the Fund may be a big factor in whether more money is freed up for compensation programs. When VOCA is capped—or when money from the Fund is diverted for other purposes—an increase in compensation grants means less money for assistance grants. This year, compensation grants went up $9 million as a result of increased state spending, and because the total available for the states was frozen at last year's levels, $9 million less was available for assistance grants. Had Congress not capped the Fund, or if more money had been available for state grants, both compensation and assistance grants would have increased.

As the chart on this page shows, the 40% grant limitation has prevented compensation programs from sharing in the huge increases in Fund deposits in the past few years. VOCA assistance grants are now quadruple the amount for compensation grants, a trend that began in 1997 when the Crime Victims Fund first saw a dramatic rise in collection levels. Since 1997, state assistance grants have totaled $1.6 billion, while compensation grants have amounted to $380.6 million.

A current bill before Congress would increase compensation grants to 60% of state payouts, which would have some impact on VOCA assistance grants unless Congress frees up more money in the Fund.

Appropriations 101: How the Fund is Capped
While VOCA itself does not limit the amount of finding that can go to the states each year, Congress, through the annual appropriations bill for the Department of Justice, can place a limit on overall expenditures from the Fund. Of course this is true of other federal authorizations as well: despite what any law may authorize to be spent, Congress may appropriate what it pleases so long as it is within the authorization contained in the underlying law.

(It's interesting to note that VOCA contained limits during its first eight years, as the chart on this page shows. The original legislation adopted in 1984 curtailed deposits into the Crime Victims Fund, but Congress amended VOCA to eliminate this limit in 1994.)

The VOCA cap process begins with the President's budget proposal for the Department of Justice. Next, the Appropriations Committee in the House of Representatives draws up its own budget, through the work of its subcommittee handling DOJ spending. It then goes to the respective subcommittee in the Senate Appropriations Committee, which may come up with a different VOCA cap. Differences are resolved in a conference committee before going to the full House and Senate for passage. The Justice Department appropriations bill (usually combined with those for the Commerce and State Departments) then go to the President for signature.

Since this enactment often occurs after the beginning of the federal fiscal year, the calculation of how VOCA will be distributed under the statutory formula can be delayed while OVC awaits final budget action.