The House of Representatives passed emergency legislation on Tuesday to address the Department of Veterans Affairs’ (VA) budget deficit of about $3 billion, with officials warning that benefits for millions of veterans are at risk in the coming weeks.
The bill was passed by voice vote with bipartisan support and now goes to the Senate, where lawmakers from both sides hope for a quick decision this week.
“Fortunately, in a rare moment of bipartisanship, the House came together and passed my bill that prevents this disaster and demands accountability and real oversight to ensure every dollar is spent correctly,” Republican Rep. Mike Garcia of California, a member of the House Budget Committee and leader of the legislative initiative, said in a statement Tuesday.
“Our veterans deserve better than bureaucratic incompetence, and we are one step closer to fixing this broken system.”
The measure provides additional funding for the VA of $2.9 billion, of which about $2.3 billion will go to the Veterans Benefits Administration for compensation and pensions, and about $597 million will be provided for adjustment benefits.
The bill’s passage came weeks after the VA warned lawmakers that payments of compensation and pension benefits, as well as their rehabilitation benefits, to veterans could be delayed next month if Congress does not provide additional funding in the coming days.
The agency cited the PACT Act, a landmark law passed in 2022 with bipartisan support, as the main cause of the budget deficit, citing an augment in VA health care enrollment as well as appointments and application benefits.
The Veterans Benefits Continuity and Accountability Supplemental Appropriations Act also requires the VA Secretary to submit reports to the legislature outlining ways to improve the projections and budget assumptions and requires the Secretary to report on any changes to the estimates in the future.
In addition, the Department of Veterans Affairs Inspector General is required to examine the circumstances and causes of the budget deficit.
Senators from both parties are pushing for swift passage, especially as Congress is embroiled in another budget fight to avert a government shutdown before the Sept. 30 deadline.
Senator Jon Tester (D-Montana), chairman of the subcommittee that oversees annual funding for the Department of Defense, told The Hill on Tuesday that he expects senators to push to “get things done” if the House VA bill passes.
“We’ll see. Obstructionists can obstruct, but I think it’s a big mistake if they do,” he said.
A bipartisan effort to speed up legislation to fix the deficit before the August recess failed due to opposition from conservatives and increasing scrutiny of VA funding.
Sen. John Boozman (Arkansas), the ranking Republican on the subcommittee that drafts annual VA funding, expressed hope Tuesday that the Senate could expedite the bill and pass it unanimously, but that process can also be stalled if a single senator opposes its passage.
“My hope would be that they send it here and we do it unanimously,” Boozman told The Hill. “If not, then we have to take the time from now on to get it. [passed].”
The VA pushed for the additional funds by September 20, putting pressure on Congress.
“With each passing day after the 20th, the risk that we will not be able to pay on time increases,” said Joshua Jacobs, VA undersecretary for benefits, at a recent hearing before the House Veterans Affairs Committee. He also explained the steps the agency takes to submit payroll records to the Treasury Department.
“Between our submission of the payroll file, its processing by the Treasury Department, and payment via direct deposit, via EFTS to financial institutions, or to the approximately 2 percent of veterans and survivors who receive paper checks, there are numerous steps that must be completed to enable them to print and mail those checks.”
“We have built in some wiggle room because occasionally there are problems with the payroll files that we have to correct before submitting them,” he said. “But once we submit them, it’s very difficult to go back and recover the money.”
“I would also add that we have the opportunity to accelerate the direct deposit timeline, but that comes with additional risks. The real challenge and the real time and process is the veterans and survivors with checks, because that process is time consuming, and particularly for veterans and survivors in rural areas, there can be delays of up to two weeks.”
