A bill to require the Secretary of Veterans Affairs to contract with private facilities to ensure that provision of medical care to members of the Armed Forces on active duty does not adversely affect the provision of hospital care, nursing home care, and medical services to veterans eligible for such care and services, and for other purposes.

Directs the Secretary of Veterans Affairs to ensure that there is no reduction in the levels of hospital care, nursing home care, and medical services furnished to eligible persons as a result of furnishing such care and services to military personnel being treated by the Department of Veterans Affairs for injuries or illnesses incurred or aggravated during the Persian Gulf War. Directs the Secretary to contract with non-Department facilities in order to continue such care to such eligible persons at the same level. Requires the Secretary of Defense to reimburse the Secretary for the difference, if any, between the cost of providing such care and services by contract and the cost of providing such care or services in medical facilities of the Department.

States that all direct or discretionary spending contained in this Act is to be considered an emergency expenditure related to Operation Desert Shield for purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).