VA would be one of only a few federal departments to see a funding increase under the president's $1.7 trillion budget plan.
Officials said they are encouraged by the drop in reports of sexual violence but warned the problem still poses a threat to force readiness.
Veterans advocates said the move to reopen the 90/10 loophole could once again allow predatory institutions to prey upon student veterans.
House Veterans' Affairs Chairman Mike Bost suggested former department leaders could face criminal charges for past budget mistakes.
