VA urges lawmakers to approve $15B to fund budget gap or risk delays and cuts to veterans’ benefits and healthcare

Last week, the Department of Veterans Affairs (VA) made an appeal to Congress to move quickly to approve supplemental funding for the agency to close an estimated $15 billion spending gap through Fiscal Year 2025 to avoid delays and cuts to veterans’ benefits and care.

In a statement regarding the budget shortfall, VA Press Secretary Terrence Hayes said on July 24, 2024 that the shortfall was due in part to the PACT Act. “VA is delivering more care and more benefits to more veterans than ever before…These results are life-changing for veterans, their families, caregivers and survivors, and VA will continue to push to make sure that they get the care and benefits they deserve."

Disability compensation and pension benefit payments to veterans scheduled to be delivered by Oct. 1 are “at risk of being delayed,” if the VA does not receive an estimated $3 billion to address a budget shortfall for the remainder of fiscal 2024, which ends Sept. 30, said Hayes. He also said the VA might be forced to cut veterans services and care in fiscal 2025 if Congress does not agree to increase the agency’s $369 billion spending plan.

Without additional funding, the VA is facing a projected $12 billion budget shortfall next fiscal year, but assured that the VA will continue to provide health care to veterans and will make adjustments to remain within the current budget for fiscal year 2025.

Demand for VA services has exceeded expectations as a record number of veterans now seek VA services and benefits. Earlier in July, about three-quarters of the way through the fiscal year, the VA reported that it had granted benefits to 1.1 million Veterans and their survivors, an all-time record.

Democratic lawmakers from the House and Senate Veterans’ Affairs committees expressed support Thursday for providing the funds to cover the shortfall, while some Republican members criticized the VA for not anticipating higher spending needs, with members requesting an immediate Oversight Hearing into the shortfall.

Hayes said the agency will not continue its recent pace of hiring at VA hospitals and clinics to meet veterans’ demand for more services following passage of the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act, or PACT Act.

The law provides medical care and monthly disability compensation to veterans diagnosed with diseases connected to toxic exposures from burn pits, radiation at weapons testing sites, and aerial spraying of Agent Orange and other herbicides.

Since the PACT Act became law, more than 710,000 veterans have enrolled in VA health care, Hayes said. Additional funds from Congress will enable the VA to fill vacancies and new positions in critical areas, he said.

“VA will continue to strategically hire in several key areas, such as mental health care and at targeted locations — such as locations with ongoing increases in health care enrollees,” Hayes said.