Requires the Secretary of Veterans Affairs to: (1) carry out a demonstration project to assess the feasibility and advisability of providing for priorities in scheduling appointments for health care through the Department of Veterans Affairs in accordance with the Department's Waiting Time for Appointments goals (30-30-20) of 2000 and the provisions of the Veterans Health Administration directives entitled Priority for Outpatient Medical Services and Inpatient Hospital Care (VHA Directive 2002-059) and Priority Scheduling for Outpatient Medical Services and Inpatient Hospital Care for Service Connected Veterans (VHA Directive 2003-062); (2) select three Veterans Integrated Service Networks for the project and ensure that the project is carried out in urban, rural, and highly rural areas; (3) schedule each appointment under the project at a Department facility unless the cost is unreasonable or medical or other reasons necessitate an appointment at a non-Department facility.

Requires the Secretary to report to the Committees on Veterans' Affairs in the Senate and the House of Representatives annually on waiting times of veterans for Department health care appointments.