Full Committee Oversight Hearing

2025-05-15

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Summary

The committee convened to review the Department of Veterans Affairs (VA) budget request for fiscal year 2026, marking Secretary Collins' first time testifying before this committee. The meeting included opening statements from the Chairman and Ranking Member, followed by extensive questioning from various committee members concerning the VA's operations and proposed changes.

Themes

VA Budget and Fiscal Management

The President has requested $187.2 billion for the VA for the upcoming fiscal year, which includes $134.6 billion in discretionary funding and $50 billion from the Toxic Exposure Fund, representing a 17% increase over last year. [ 00:22:32-00:22:43 ]

Chairman Rivera expressed optimism about the proposal but voiced concerns about past financial mismanagement and poor internal accounting under the previous administration. [ 00:23:07-00:23:24 ] Secretary Collins affirmed his goal of making the VA efficient and effective by addressing red tape and bureaucracy, noting that despite increased funding and employees, wait times and backlogs have worsened. [ 00:39:47-00:39:49 ] He highlighted the VA's decade-long presence on the GAO's high-risk list due to inefficiency. The Secretary reported a 21% reduction in the disability claims backlog within his first 100 days. However, Representative Self criticized the VA for allegedly shifting over $300 million to private community care without congressional approval, diverting funds meant for internal VA capacity. Representative Luttrell commended the Secretary for eliminating the VASP program, calling it an irresponsible use of funds and pointing to a disproportionate increase in bureaucrats versus doctors.

Workforce Reduction and Morale

The Chairman dismissed accusations of a planned 83,000-employee reduction as "baseless" and "not true," explaining that the VA is merely reviewing its organizational structure. [ 00:25:11-00:25:41 ]

Ranking Member Self expressed "upsetting and frustrating" concerns that the Secretary's decisions have eroded trust among VA staff and veterans. [ 00:31:27-00:31:27 ] Self pointed to fears among staff about job loss and a "culture of fear" fostered by the Secretary's use of non-disclosure agreements. In response, Secretary Collins clarified that 300,000 positions, including direct care providers and support staff, are exempt from any restructuring or "firing freezes." He attributed some staff anxieties to "false rumors and innuendo" from external sources. The Secretary noted that 16,375 employees in the central office, many of whom are not physically present, represent areas where efficiency can be improved without impacting direct care. Representative Kennedy reiterated concerns about plummeting morale, increased stress due to job insecurity, and the rollback of collective bargaining rights. [ 03:04:32-03:04:45 ] The Secretary maintained that there are no "sudden firings" and any changes would follow a structured process with proper notice. A leaked spreadsheet calculating a 15% cut across various VHA positions, including nurses and psychologists, was introduced by the Ranking Member to challenge the Secretary's claims. Secretary Collins dismissed the document as a "leaked pre-decisional document" that contradicts his directive to protect frontline healthcare workers. The Secretary also mentioned that 2,500 clinicians applied for a deferred resignation program (DRP), most of whom will be denied, affirming his intent not to remove clinicians. He also revealed that the previous Biden VA administration had internal documents suggesting 28,000 potential reductions in the VHA, indicating a broader recognition of the need for efficiency.

Transparency and Congressional Oversight

Ranking Member Self accused Secretary Collins of being "evasive and not transparent" in previous testimony and of failing to proactively communicate with committee members. [ 00:31:31-00:31:34 ]

The Chairman defended the Secretary by highlighting a lack of transparency under the previous administration, where numerous oversight letters reportedly went unanswered. [ 00:26:48-00:27:17 ] Secretary Collins justified the use of non-disclosure agreements (NDAs) as a reassertion of existing laws to protect sensitive information, confirming that whistleblower protections remain in place. Representative Ramirez raised concerns about paused outreach programs, which the Secretary attributed to "malicious compliance" by some VA employees, promising to address the issue. Committee members expressed frustration over the VA's unresponsiveness to inquiries, last-minute briefing cancellations, and refusal to provide briefing materials. The Secretary attributed these challenges to a prevailing "we've always done it this way before" mentality within the VA and the constant struggle against misinformation. The Ranking Member countered, arguing that accountability for policy implementation and employee morale ultimately rests with the Secretary, not with blaming staff for "malicious compliance."

Veteran Care and Program Changes

The President's budget incorporated $50 billion from the Toxic Exposure Fund, underscoring the administration's commitment to this area. [ 00:22:35 ]

Secretary Collins reiterated the VA's dedication to exploring psychedelic treatments for PTSD and TBI, citing promising early results from 11 ongoing studies. He acknowledged the complexity of the current system for accessing veteran benefits and the need for simplification. Implementation of the Elizabeth Dole bill is progressing, with 9 of 72 provisions completed and 55 on track, though concerns were raised about delays in lifting the cap on non-institutionalized care. [ 00:50:12-00:50:19 ] The Secretary expressed profound concern over veteran suicide rates, which have remained unchanged since 2008 despite significant increases in funding, emphasizing the need to reach veterans who lack VA connection. Representative Self criticized the abrupt termination of the VASP program, which left many veterans at high risk of foreclosure. Secretary Collins defended the decision, stating VASP was not a congressional mandate and diverted funds from other critical programs, urging Congress to develop a sustainable solution. [ 01:03:59-01:04:04 ] Secretary Collins clarified that clinical trials are indeed part of healthcare, correcting prior misinterpretations that he considered them "above and beyond" basic care. He asserted that no clinical trials or research projects have been canceled by his administration's decisions. Concerns were raised regarding the dismantling of the Office of Equity Assurance and its potential impact on addressing disparities for minority veterans. The Secretary maintained that ensuring all veterans receive earned benefits does not necessitate a separate Office of Equity and Inclusion. The Secretary confirmed the VA is implementing an executive order to enhance IVF access for women veterans. He also committed to human oversight for final decisions on veteran claims, even with increased AI utilization for simpler cases. [ 01:35:25-01:35:36 ] Secretary Collins stated that the VA has ceased sex change procedures and care in that area, though individuals already undergoing hormonal treatment will continue due to associated health issues. He further confirmed that $6.1 million in DEI-related contracts were terminated, with funds redirected to community care and prosthetics.

Electronic Health Record Modernization (EHRM)

The Secretary characterized the EHRM system as having been neglected by the previous administration, with no visible progress. [ 01:11:58-01:12:07 ]

He detailed his efforts to revitalize the system by fostering collaboration between the VA and Oracle and streamlining oversight committees to promote standardization. [ 01:12:19-01:12:54 ] The current plan involves deploying EHRM to 13 sites next year, an expansion from the original four, alongside an accelerated integration process. [ 01:12:38-01:13:01 ] He also noted severe issues with the VA's procurement and facilities leasing systems, labeling them "broken" and requesting congressional assistance for streamlining. [ 00:59:19-00:59:20 ]

Community Care vs. VA Care

Secretary Collins emphasized that "community care is VA care" and should be an option for veterans meeting specific criteria, rejecting any notion of an "us-against-them" dynamic. He identified the lack of communication between VA and private doctors, exacerbated by electronic health record issues, as a significant impediment.

Tone of the Meeting

The meeting began with formal pleasantries and a call for respectful conduct and decorum. [ 00:21:25-00:21:33 ]

However, the atmosphere quickly shifted to confrontational, particularly during the Ranking Member's opening statement, which directly accused the Secretary of undermining trust and being evasive. [ 00:31:27-00:31:31 ] Throughout the questioning, there was palpable tension, with members frequently interrupting and challenging the Secretary's responses, especially concerning workforce reductions and transparency. The Secretary, while asserting his dedication to veterans, expressed frustration at what he perceived as mischaracterizations and "rumor and innuendo." Despite these contentious exchanges, some members conveyed appreciation for the Secretary's efforts and candor. The overall tone was critical and demanding from many committee members, balanced by the Secretary's defensive yet consistent message regarding reform and a veteran-centric approach. [ 04:11:23-04:11:28 ]