Congress Leaves DC, Fails to Pass VA Budget Request

Congress failed to pass legislation addressing a nearly $3 billion budget shortfall for the Department of Veterans Affairs (VA) before leaving town, leaving millions of veterans at risk, The Hill reported Sunday.

In the lead-up to passing the legislation, questions were raised among members of Congresss about alleged mismanagement at the VA.

Sen. Jerry Moran, R-Kan., expressed disbelief at the VA's claim that it was unaware of the budget shortfall earlier, especially after advancing year's worth of funding legislation.

"We have been told for a long time that we have sufficient funds ... We're only learning this now," Moran said. "I'm unconvinced that the Department of Veterans Affairs was incapable of knowing a problem at that point in time, and the [Office of Management and Budget] has never said anything."

The VA cites the PACT Act, a 2022 bipartisan law, as a key factor in the budget gap, citing increased enrollment in VA healthcare and benefits claims.

In the spring, the White House reported that over 4 million claims were submitted since August 2022, including 1.6 million specific to the PACT Act. As a result, the VA had asked Congress for about $3 billion in fiscal year 2024 for "mandatory benefits funds," and approximately $12 billion for fiscal 2025 for "medical care."

Sen. Sherrod Brown, D-Ohio, said the PACT Act is "expensive because it's taking care of complicated medical situations."

The legislation that Congress failed to pass proposes $2.8 billion in additional VA funding, allocating $2.3 billion for compensation and pensions and $597 million for readjustment benefits. It also mandates a Government Accountability Office review to account for the shortfall's causes.

Veterans' benefits may be delayed if Congress doesn't act by Sept. 20. Still, some senators are demanding more details from the VA before passing new legislation.

Sen. Rand Paul, R-Ky., has criticized the VA for mismanagement, questioning the spending of record funds.

"When we spend billions of dollars, we should ask, you know: Are controls in place that it's being spent wisely? Where was it spent?" Paul told The Hill.

"We gave them record amounts of dollars. Why's it gone?"

"So somebody made bad decision making or bad management. All that needs to be discussed and worked through,  and that's why I would never let it go through without a discussion," he said.

A group of Republicans have requested a hearing with VA Secretary Denis McDonough to address the issue. Rep. Mike Bost, R-Ill., labeled the shortfall as the largest under any administration, urging answers from the VA.

The VA stated it is collaborating with Congress and the OMB to prevent negative impacts on veterans and ensure continued care and benefits.

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