Hearings to examine proposed budget estimates for fiscal year 2026 for the Department of Veterans Affairs.

Senate Subcommittee on Military Construction, Veterans Affairs, and Related Agencies

2025-06-24

Source: Congress.gov

Summary

The meeting focused on the Department of Veterans Affairs' (VA) fiscal year 2026 budget request and key issues affecting veterans' care and services. Secretary Douglas A. Collins presented the budget, which included significant increases for electronic medical records and construction, and responded to pointed questions from committee members. Persistent concerns were raised about transparency, workforce management, and the quality and accessibility of VA services, often leading to contentious exchanges regarding specific VA policies and their implementation.

Budget Justification and Transparency

Committee members expressed considerable frustration over the lack of detailed budget justification materials from the VA, hindering their ability to thoroughly assess the proposed $441 billion request [ 00:21:05-00:21:10 ] . Senator Murray questioned the VA's underlying assumptions, citing past budget miscalculations and unutilized emergency funds . Secretary Collins affirmed his confidence in the current budget numbers and committed to preventing previous issues of mismanagement . Senator Ossoff highlighted an unexplained $18 billion shift in funds from medical services, demanding clarification on its impact on personnel, which the Secretary promised to provide later .

Electronic Health Records Modernization (EHRM)

The budget includes a $3.5 billion increase for the electronic medical records program, with deployments now accelerating after previous pauses [ 00:21:40-00:22:09 ] . Secretary Collins acknowledged past difficulties but stressed the critical need for an updated system to improve both internal and community care coordination . He described efforts to standardize the system with Oracle, resolving previous communication issues that caused delays and cost overruns . Senator Peters voiced apprehension about accelerated deployment coinciding with proposed workforce reductions, seeking assurances against service disruptions [ 01:41:45-01:42:21 ]

. The Secretary warned that reducing the requested funding could slow the project and worsen existing problems .

Workforce and Staffing

A significant point of contention was the VA's workforce size and proposed staff reductions [ 00:22:34-00:22:38 ] . Senator Ossoff pressed for specific physician and nurse employment figures for FY26, noting the absence of this detail in preliminary budget materials . Secretary Collins provided current staffing numbers, assuring that detailed breakdowns would be forthcoming as budget calculations were finalized . Patty Murray criticized proposed staff reductions and a hiring freeze, arguing these actions "scare veterans" and jeopardize care . The Secretary clarified that direct patient care positions are exempt from reduction discussions and reiterated that no employees have been "fired" due to restructuring . He also highlighted challenges in recruiting due to burdensome hiring processes and uncompetitive salary caps compared to the private sector .

Veterans' Access to Care and Quality of Service

Committee members underscored the national commitment to ensuring veterans receive their earned care, support, and benefits . Concerns were raised about persistent long wait times for appointments and the adjudication of claims . Secretary Collins reported cutting 71,000 disability claims in three and a half months to reduce backlogs . He also emphasized the importance of integrating community care with direct VA care, shifting away from an "in-house" only approach . Senator Hagerty urged the VA to prioritize accountability, effective leadership, and tangible results to ensure funding translates into meaningful improvements for veterans [ 01:48:46-01:49:02 ]

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Suicide Prevention

Secretary Collins expressed deep personal concern about veteran suicide, noting that current prevention spending of $588 million has not significantly reduced the high rates . He advocated for a "fresh new approach" that includes outreach to veterans outside the VA system, such as through the Fox Grant program . He stressed the necessity of new strategies to achieve different outcomes .

Infrastructure and Facilities

The aging condition of VA facilities, averaging 60 years old, was a key topic [ 00:46:45-00:46:59 ]

. Senator Fischer pointed to the need for investment, particularly for the 75-year-old Omaha VA Medical Center, and the VA's request for a major increase in construction funds [ 00:47:09-00:47:13 ] . Secretary Collins discussed the inefficiencies of current construction funding models, which often prolong projects and escalate costs, advocating for a "front-end funding model" for hospital replacements . He also mentioned exploring larger C-box clinics to alleviate pressure on hospitals .

Rural Veterans Care

Senators Collins and Murkowski highlighted the unique challenges of providing healthcare to veterans in highly rural states like Maine and Alaska [ 01:26:39-01:27:41 ]

. Existing grant rules for transportation assistance were noted as too restrictive, limiting eligibility for many rural areas . Secretary Collins supported expanding grant eligibility and exploring innovative solutions such as mobile clinics to reach remote veterans [ 01:29:05-01:29:40 ] .

Discrimination Policy (Controversial Topic)

A contentious discussion arose regarding changes to the VA's anti-discrimination policy . Patty Murray asserted that removing protective language related to age, national origin, politics, marital status, and disability "scares veterans" and implies potential discrimination . Secretary Collins adamantly denied any functional change, stating that existing federal laws and VA directives already provide these protections . He attributed the controversy to a "false article" and amplified misinformation .

Toxic Exposure Fund (TEF)

The proposed $18 billion transfer from medical care to the Toxic Exposure Fund was debated . Patty Murray sought assurance that the Secretary would adhere to statutory limitations and "guardrails" for TEF funds, expressing concern that the transfer could reduce care for veterans with non-toxic exposure related conditions . Secretary Collins committed to following the law and collaborating with the committee on this matter .

Research Program

Patty Murray raised concerns about reports that VA officials were instructing physicians and scientists not to publish their work without approval from political appointees, allegedly to prevent "negative national exposure" . The Secretary denied knowledge of such an order and stated that nothing had changed regarding research publication, suggesting the concern stemmed from a misunderstanding of a policy concerning media interactions .

Pain Management (Jason Szymkowski Memorial and Promise Act)

Senator Baldwin discussed the Jason Szymkowski Memorial and Promise Act, enacted after a veteran's death due to opioid over-prescription, which set pain management standards . She noted the VA's success in reducing opioid prescription rates and sought a commitment to safe pain management, while expressing concern that proposed staff reductions could impact administrative support for these programs [ 01:35:46-01:36:42 ]

. Secretary Collins reaffirmed the VA's commitment to the program and protecting jobs essential for direct patient care and oversight .

Inspector General (IG) Oversight

Senator Peters highlighted the significant return on investment provided by the VA Inspector General's office, which identified billions in potential savings [ 01:45:43-01:45:46 ]

. He questioned the proposed 10% budget cut to the IG's office and sought a commitment from the Secretary to implement open recommendations and continue ongoing investigations . Secretary Collins committed to collaborating with the IG, ensuring adequate resources, and implementing proposals for improved efficiency .

Local Facility Issues (Dublin, Atlanta, Augusta)

Specific concerns were raised regarding VA facilities in Georgia. Senator Ossoff sought assurances that sterilization issues and OIG recommendations at the Dublin facility had been fully resolved [ 01:54:58-01:55:12 ]

. Secretary Collins stated his understanding that these issues were resolved and committed to confirming the information [ 01:55:49 ] . Staffing shortages at the Atlanta VA Medical Center, including 208 vacancies, were discussed, with Senator Ossoff requesting a target date for full staffing [ 02:01:12-02:01:13 ] . The Secretary indicated he could provide a plan but not a definitive date, citing market challenges [ 02:00:49-02:00:51 ] [ 02:01:44-02:01:50 ] . Leadership issues at the Augusta VA, including a "culture of fear" and alleged retaliation, were addressed, with the Secretary confirming efforts to install permanent leadership [ 02:04:25-02:04:40 ] [ 02:05:54-02:06:12 ] .

Summary of the Tone of the Meeting

The tone of the meeting was largely contentious and challenging, marked by significant frustration from committee members towards the Secretary . There was palpable irritation regarding the perceived lack of transparency and responsiveness from the VA, particularly concerning detailed budget justifications and specific staffing numbers . Heated exchanges occurred over changes to anti-discrimination policies and the transfer of funds to the Toxic Exposure Fund, with members accusing the Secretary of minimizing concerns and being evasive . While acknowledgments of common goals for veterans were made, the prevailing atmosphere was one of skepticism and a demand for greater accountability and concrete answers from the VA leadership .

Participants

Transcript

in medical care advance appropriations for fiscal year 2027.  Finally, the request includes $262.1 billion in advance for veterans' benefits.   Mr. Secretary, I need to say at the outset that because of the significant delays in submitting the budget, the committee has yet to receive detailed budget justification materials from the department.  These materials are essential to the committee's work, and I hope we will see them very soon.  The PACT Act has certainly been a dramatic change for veterans, and I also think VA has a good story to tell about its implementation.   The new veterans enrolling and the number of PACT Act related claims received and processed.  It also created the Toxic Exposure Fund.  This year's budget request represents more than a $22 billion increase.  The budget request includes a large increase for the electronic medical records program, a total of $3.5 billion.  DOD stumbled out of the gate in its efforts to deploy the system.   But after a pause, it successfully completed deployments throughout the country and abroad.  VA announced that not only are deployments of the system resuming, but they are accelerating.  With well more than $12 billion of taxpayer money invested, it's time to start seeing a return on the investment.   But given the difficulties experienced in the Pacific Northwest, I look forward to hearing more about how these deployed sites will be brought up to standard and how VA plans to execute the new accelerated deployments.  Mr. Secretary, you've been in the headlines recently as VA reviews the size of its workforce.  Members are hearing from our constituents regularly on this, and I look forward to hearing more about your plans to ensure you have the right people in the right places to take care of our veterans.   In addition to updates on those big picture items, we also look forward to hearing details about the department's request for mental health services, including efforts to prevent veteran suicide, initiatives to prevent veterans' homelessness, resources dedicated to care for women's veterans, and efforts to improve care for our rural veterans.
Thank you, Mr. Chairman.  A pleasure to be back with you again.  And appreciate our bipartisan working relationship.  And looking forward to continuing our shared efforts to support America's veterans.  I want to welcome you, Secretary Collins, a fellow Georgian.  Thank you for your service.  And before we begin,   As always, but particularly given events in the Middle East over the last several days, I want to express my gratitude to all of those who served the United States with such courage and professionalism.  I know we are all united in praying for the safety of service members as well as diplomats and intelligence professionals who are overseas defending the nation.   As we examine the department's fiscal year 2026, $441 billion request, I want to begin by emphasizing that it is our shared priority on this subcommittee across the aisle to ensure that the men and women who have defended the United States in uniform receive the care, support, and benefits that they've earned.  And I emphasize that word.   earned because VA benefits are not handouts or giveaways.  This is a sacred contract between the nation and those who have defended it, as well as their families.  The purpose of today's hearing is for the Secretary to present the VA's budget request for fiscal year 2026.  I echo the Chairman in expressing my concern at the lack of supplemental materials and budget justification materials, which makes it   very challenging for us to assess the merits of the overall request.  I hope we can get some more details in the course of this hearing.  We see that the overall discretionary and mandatory funding levels for VA have increased.  We recognize, the Chairman also mentioned, in the first two years of the PACT Act, between August of 22 and August of 24, in Georgia alone, Mr. Chairman, more than 6,500 new Georgia veterans enrolled in VA health care.