To amend title 38, United States Code, to extend certain expiring authorities of the Department of Veterans Affairs, and for other purposes.

Extends through December 31, 1998, the authority of the Department of Veterans Affairs to provide hospital care and medical services to Persian Gulf veterans exposed to toxic substances or environmental hazards during such service, as long as symptoms become manifest before January 1, 1997. Extends through December 31, 1997: (1) the authority to contract with community-based treatment facilities for the care of eligible veterans suffering from alcohol or drug dependence or abuse disabilities; (2) the authority of a pilot program for furnishing veterans with noninstitutional alternatives to nursing home care (requires a report); (3) the Department's health professionals scholarship program (requires a report); (4) the authority of the Secretary of Veterans Affairs to enter into enhanced-use leases of Department real property (requires a report); (5) 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; (6) the Department's compensated work therapy and therapeutic transitional housing program; and (7) the authority under the Homeless Veterans Comprehensive Service Programs Act of 1992 for a pilot program to expand and improve Department benefits and services to homeless veterans. Extends through FY 1997 the authorization of appropriations for such pilot program.

Directs the Secretary to report to the Congress on the advantages and disadvantages of consolidating specified veterans' programs.

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.