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The VA also expects to spend $3.1 billion raised through fees from patients and insurers. Altogether, its 2015 budget would be $164 billion under Obama’s plan, a 6.5 percent increase over the current fiscal year.

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Associated Press Writers Mary Clare Jalonick, Donna Cassata, Robert Burns, Kimberly Hefling, Matthew Daly, Dina Cappiello, Ricardo Alonso-Zaldivar, Alicia A. Caldwell, Eric Tucker, Tom Raum, Seth Borenstein, Matthew Lee, Joan Lowy, Stephen Ohlemacher and Connie Cass contributed to this report.