To amend title 38, United States Code, to extend certain expiring authorities of the Department of Veterans Affairs, to authorize medical construction projects for that Department for fiscal year 1996, and for other purposes.

Extends through December 31, 1997, the following authorities of the Department of Veterans Affairs: (1) the authority to provide outpatient services to Persian Gulf veterans exposed to toxic substances or environmental hazards during such service; (2) the authority to contract with community-based treatment facilities for the care of eligible veterans suffering from alcohol or drug dependence or abuse disabilities (also extends a certain evaluation in connection with such treatment); (3) the authority to enter into agreements with States and nonprofit organizations for the provision of housing assistance for homeless veterans ( requires a report); (5) the Department's health professionals scholarship program (requires a report); (6) the authority of the Secretary of Veterans Affairs to enter into enhanced-use leases of Department real property; (7) the authority under the Veterans' Benefits and Services Act of 1988 for a pilot program providing community-based residential care for homeless chronically mentally ill veterans; and (8) the Department's compensated work therapy and therapeutic transitional housing program.

Extends through December 31, 1996, a pilot program for determining noninstitutional alternatives to veterans' nursing home care (requires a report).

Repeals the authority of the Secretary to make contracts and grants for providing care and treatment for veterans at the Department's Veterans Memorial Medical Center in the Philippines.

Authorizes the Secretary to carry out the Department's major medical facility projects and leases for which funds are requested in the President's FY 1996 budget and for which authorization is required. Authorizes FY 1996 appropriations to the Secretary for such projects and leases, with limitations.