VA is grappling with a significant budget shortfall, estimated at nearly $15 billion, which threatens to disrupt benefits for millions of veterans. Congressional leaders are racing against time to pass legislation addressing the shortfall and ensuring uninterrupted services for veterans. However, the effort faces resistance from some conservative lawmakers who demand more scrutiny over the VA’s spending practices.

Important points

• The VA is facing a $15 billion budget shortfall, with $2.9 billion needed immediately for benefits and $12 billion for medical care in the next fiscal year.
• A bipartisan group of senators has introduced a bill to address the shortfall, but some conservative lawmakers are resisting it.
• If Congress does not act by September 20, millions of veterans may not receive their benefits on time.

The Budget Shortfall

Driven by the increased demand for veterans’ benefits and healthcare services, the VA has reported a budget shortfall of nearly $15 billion. The shortfall includes $2.9 billion needed immediately to cover benefits payments and an additional $12 billion required for medical care in the next fiscal year. The VA attributes the shortfall to implementing the PACT Act, which expanded benefits for veterans exposed to toxins during their service.

Congressional Response

A bipartisan group of senators has introduced a bill to address the shortfall. The proposed legislation would provide the VA with an additional $2.9 billion to cover immediate needs, with most of the funds allocated for compensation and pensions. The bill also calls for a review by the Government Accountability Office to understand the causes of the shortfall and to recommend future remedies.

Conservative Resistance

Despite the urgency, the bill faces resistance from some conservative lawmakers who demand more scrutiny over the VA’s spending practices. Senators like Rand Paul and Tommy Tuberville have complained about the VA’s financial management and are calling for hearings to understand the reasons behind the shortfall. This resistance could delay the passage of the bill, putting veterans’ benefits at risk.

Potential Impact on Veterans

If Congress does not act by September 20, millions of veterans may not receive their benefits on time. The VA has warned that compensation and pension payments to over 7 million veterans and survivors and readjustment benefits to over 500,000 individuals are at risk. The delay could have severe consequences for veterans who rely on these benefits for their livelihood.

Next Steps

With the legislative calendar running short, Congress has limited time to address the issue. Lawmakers plan to leave for their summer recess soon, leaving just two working weeks to pass the legislation. The VA has shown that it is working on contingency plans but emphasizes that the primary focus is on getting the bill passed to avoid any disruption in benefits.

Conclusion

The VA budget shortfall presents a significant challenge for both the agency and Congress. While a bipartisan group of senators is working to address the issue, resistance from some conservative lawmakers could delay the process. With millions of veterans’ benefits at risk, timely action is crucial to ensure that those who have served the country receive the support they deserve.

Sources

• Effort to patch VA budget shortfall sees conservative resistance, The Hill.
• A Nearly $3 Billion Shortfall in VA Benefits Is Looming. The Senate Has Proposed a Fix, But Time Is Running Out. | Military.com, Military.com.
• Bipartisan Senate group offers bill to plug VA benefit shortfall – Roll Call, Roll Call.
• Massive veterans budget gap rips a hole in appropriations process – Roll Call, Roll Call.
• VA projects $15B shortfall driven by costs for veterans’ benefits, prescription drugs and a bigger workforce, Stars and Stripes.