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A group of House Republicans has proposed new legislation aimed at supplementing funding to address a budget deficit at the Veterans Affairs Department, set to last until the end of this month.
The Veterans Benefits Continuity and Accountability Supplemental Appropriations Act, which is co-sponsored by Tom Cole, R-Okla., and other committee members, seeks to allocate an additional $2.89 billion to the Veterans Benefits Administration (VBA).
Mike Garcia, who is spearheading the initiative, emphasized the importance of accountability within the VA. He stated, “This isn’t just about a funding shortfall—it’s about holding the administration accountable for its failures. We cannot simply throw more money at a broken system and enable further waste and mismanagement. My bill is focused on both ensuring our veterans receive the care they’ve earned and demanding accountability from those in charge.”
This supplemental funding is intended to address part of a projected $15 billion shortfall anticipated between now and fiscal 2025, with VA officials informing the House Veterans’ Affairs Committee about the deficit in July. The shortfall primarily relates to costs associated with compensation and pension, as well as readjustment benefits from the VBA.
Looking ahead, officials at the VA also projected a potential shortfall of $11.97 billion for fiscal 2025, driven largely by rising costs in hiring and pharmaceuticals.
The need for increased funding comes after the implementation of the Honoring Our Promise to Address Comprehensive Toxics (PACT) Act, which broadened VA benefits eligibility for veterans suffering from 23 respiratory illnesses linked to burn pits used during military service. In response, the VA began an aggressive hiring campaign, bringing on 61,000 new staff in fiscal 2023 to manage the higher volume of patients and beneficiaries.
However, in January, Government Executive reported that certain sections of the VA network had restricted hiring due to budget constraints, employing various “cost avoidance strategies” such as limiting overtime and travel.
In a letter dated July 17 to VA Secretary Denis McDonough, Mike Bost placed the responsibility for the shortfall on the Biden administration’s management of the PACT Act’s impact.
Bost remarked, “The budget shortfall seems to be a troubling mix of anticipated costs that were not budgeted for and other costs that lack sufficient explanation or are speculative. Although compensation and pension obligations have been lower than expected this fiscal year, claims submissions have surged due to the PACT Act and this year’s rulemaking, leading to an increase in disability examinations and obligations close to the fiscal year’s end.” He further noted the administration’s failure to include community care growth in the base budget request, in spite of a consistent annual increase in associated obligations.
The proposed legislation aims to address the VBA’s financial gap using unappropriated Treasury funds and calls for Secretary McDonough to submit a detailed report to Congress within 30 days of the law’s enactment. This report should outline the steps the VA will take to improve its budget forecasting for benefits.
Furthermore, the VA is required to report on the status of funding requests for fiscal years 2024, 2025, and 2026 within 60 days, with updates mandated every 90 days until September 30, 2026. Additionally, the VA’s inspector general will investigate the causes of both VBA and VHA shortfalls, with results to be submitted to the relevant congressional committees within 180 days as part of the new provisions in the legislation.
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