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Senate Passes $2.89 Billion Bill to Safeguard Veterans’ Benefits
In a decisive move on Thursday, the Senate approved a $2.89 billion supplemental funding bill aimed at securing benefits for nearly 7 million veterans. This action comes amid concerns over potential disruptions to veteran assistance programs.
The bill, officially titled the Veterans Benefits Continuity and Accountability Supplemental Appropriations Act, garnered quick approval just one day after a Senate Veterans’ Affairs Committee hearing. During this session, officials from the Department of Veterans Affairs (VA) provided insights into a projected $15 billion budget shortfall for the fiscal years 2024 and 2025.
This shortfall is significantly attributed to the expansion of benefits eligibility initiated by the Honoring Our Promise to Address Comprehensive Toxics (PACT) Act. Additionally, the VA’s efforts to raise awareness among veterans regarding their benefit entitlements have further increased demand.
During the committee hearing, Josh Jacobs, the VA’s undersecretary for benefits, emphasized the department’s remarkable performance, saying, “The reason we find ourselves in this situation is, frankly, our workforce has over-delivered on what were already aggressive projections. For the last year, we delivered more benefits to more veterans at any other time in our history.”
Jacobs noted that a review conducted by the Veteran Benefits Administration revealed potential for processing 2.5 million claims decisions—exceeding the initial target of 2.2 million. This positive trend, however, contributed to the financial dilemma when Congress was informed in July about a $3 billion shortfall, compounded by projected rising costs for hiring and pharmaceuticals, which could lead to an additional $11.97 billion deficit in fiscal 2025.
In response, lawmakers quickly sprang into action. A House bill, co-sponsored by Representative Mike Garcia, R-Calif., emerged on September 6, successfully passing through the House on Tuesday. This swift legislative action gave the Senate a narrow window to address the funding needs.
Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont., reflected on the importance of the funding, stating, “Funding veterans benefits is key to living up to the promises we made to the men and women who stepped up to serve. This shortfall exists because the PACT Act is working for toxic-exposed veterans and survivors in Montana and across the country, and as a result, more veterans and their loved ones are receiving benefits than ever before. This is what paying the true cost of war looks like, and I’m proud the Senate was able to act quickly today to ensure that seven million veterans and their families receive their benefit checks on time in 12 days.”
The newly approved legislation now awaits the president’s signature and mandates that the VA submit a report to pertinent House and Senate committees regarding the status of the requested funding for fiscal years 2024, 2025, and 2026 within 60 days of the bill’s enactment. Furthermore, the VA will be required to provide updates every 90 days until September 30, 2026.
Additionally, the bill includes provisions for the VA inspector general to investigate the fundamental causes behind the budgetary shortfalls in both the Veterans Benefits Administration (VBA) and the Veterans Health Administration (VHA), with a report due to Congress within 180 days.
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