Senate Passes $3 Billion Bill to Alleviate VA Budget Crisis

Veterans Affairs

The Senate has approved a $3 billion emergency bill to address the VA’s budget shortfall and protect veteran benefits, but what challenges lie ahead?

At a Glance

  • Veterans benefits payments scheduled for Oct. 1 will be undisrupted.
  • The Senate approved a bill to address a $3 billion funding shortfall for the VA.
  • The approval came just before a Friday deadline to avoid benefit delays.
  • VA still faces a $12 billion shortfall in its medical budget for the next fiscal year.

Senate Acts to Secure Veteran Benefits

The Senate has authorized a $3 billion emergency appropriations bill to cover a shortfall in the VA budget. This measure ensures that disability and education benefits for veterans are not interrupted. A voice vote passed the bill, which was then sent to President Joe Biden for his expected signature. This approval came just before a Friday deadline that would have delayed benefit payments. The approval highlights the significant fiscal challenges faced by the Department of Veterans Affairs.

The House advanced the same measure two days prior, stipulating a report on the budget shortfall within a month. VA leaders set a deadline of September 20 for securing these funds to avoid benefits delays starting in October. The shortfall was largely due to record-high benefits approvals and increased usage of medical services, especially driven by the PACT Act, which expanded eligibility for veterans with toxic exposure injuries.

Continued Budget Challenges for VA

VA officials have informed lawmakers about a $12 billion shortfall in the medical budget for the next fiscal year starting October 1. They have requested Congress include this medical funding in a stopgap spending bill to prevent a government shutdown. An initial House GOP proposal for a stopgap bill did not include the $12 billion required for VA medical funding and was voted down due to unrelated issues.

“This is not the time for partisan politics,” Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont., said during Wednesday’s hearing. “It is time to act to ensure that 7 million veterans and their families who are wondering whether they’ll receive their benefit checks in the next 13 days get them.”

Republican lawmakers have criticized the VA for failing to recognize the budget issues sooner. Some, like Sen. Rand Paul, R-Ky., even threatened to delay the bill unless amendments were made to offset the costs by cutting funding from the Department of Energy. However, these amendments failed to pass. VA staff have set a record by granting disability compensation benefits to over 1.1 million veterans and survivors in fiscal 2024.

Future Funding Concerns

VA officials have projected the need for an additional $15 billion for fiscal 2025 to cover the increasing costs of benefits and medical care. Lawmakers are expected to debate this funding request after the November elections. Veterans’ advocates emphasize the importance of continued and timely appropriations to honor the promises made to those who have served.

“Funding veterans benefits is key to living up to the promises we made to the men and women who stepped up to serve,” said Tester, D-Mont. “This shortfall exists because the PACT Act is working for toxic-exposed veterans and survivors in Montana and across the country.” –

The Senate Veterans Affairs Committee has expressed frustration over the late notice of these budget issues. As legislative efforts continue to address these financial hurdles, there is a unified emphasis on ensuring that veterans receive their deserved benefits without delays or interruptions.

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