Lawmakers Approve $3 Billion Emergency Funding Bill for Department of Veteran Affairs

Lawmakers have approved a $3 billion bill to address a Department of Veteran Affairs shortfall.

At a Glance

The Senate and House have approved a bill to address a $3 billion funding shortfall in the VA.
The shortfall is due to higher-than-expected claims from the PACT Act and GI Bill.
Senators expressed frustration over delayed notification of the VA’s budget issues.
The VA faces a $12 billion shortfall in its medical budget for the next fiscal year.

Senate Passage of $3 Billion Bill

The Senate approved a $3 billion supplemental bill to address a shortfall in the Department of Veterans Affairs (VA) funding, with the aim of preventing any delay in veteran benefits payments scheduled for Oct. 1. The bill was passed by a voice vote and is now awaiting President Joe Biden’s expected signature. The emergency funding ensures uninterrupted payments for disability and education benefits to veterans.

Despite the approval, frustration remains among lawmakers regarding the lack of foresight and timely communication from the VA about its financial troubles. The shortfall stemmed from an unexpectedly high number of benefits claims resulting from the PACT Act, which expanded benefits eligibility for veterans exposed to toxins, and an increase in GI Bill payments.

The Senate has adopted an emergency spending bill to fill a nearly $3 billion shortfall in the Department of Veterans Affairs’ fiscal 2024 budget, ensuring millions of veterans will continue to receive their monthly benefits without disruption.https://t.co/4vkL5SC52H

— Stars and Stripes (@starsandstripes) September 19, 2024

Growing Budget Concerns

The VA still faces a $12 billion shortfall in its medical budget for the next fiscal year. The high rate of benefits claims and the usage of medical services has exacerbated the agency’s financial woes. VA officials have urged Congress to include the necessary medical funding in the upcoming stopgap spending bill to avoid a government shutdown and further disruption in services.

“Funding veterans benefits is key to living up to the promises we made to the men and women who stepped up to serve,” Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont. stated “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.”

Republican lawmakers, such as Sen. Rand Paul, R-Ky., have criticized the VA’s budgeting accountability and proposed amendments to offset the $3 billion by reallocating funds from the Department of Energy. However, these amendments failed, underscoring ongoing debates about fiscal responsibility and efficient use of taxpayer dollars.

Accountability Measures and Ongoing Efforts

The legislation includes mandates for the VA to report on the status of the allocated funds and to implement improvements in forecasting, data quality, and budget assumptions. The VA inspector general will review the causes of the budget shortfalls and report the findings within six months.

“The reason we find ourselves in this situation is, frankly, our workforce has over-delivered on what were already aggressive projections,” said Josh Jacobs, VA undersecretary for benefits, acknowledging the VA’s achievement in delivering more benefits than ever before. The VA plans to work closely with Congress to ensure the stability of its financial planning and veteran services.

With the Senate’s approval of the bill, efforts now focus on addressing the remaining $12 billion shortfall and ensuring the continued delivery of crucial services to veterans. The urgency of resolving these financial issues reflects the nation’s commitment to its veterans and the pressing need for effective and transparent budget management at the VA.