Betrayal Hits Panama Vets – VA DENIES BENEFITS!

A finger pressing a red DENIED button on a computer keyboard

Hundreds of veterans who served in Panama are being systematically denied VA disability benefits for toxic exposure despite documented evidence of Agent Orange and herbicides at military bases—a bureaucratic failure that contradicts the VA’s own precedents and betrays those who sacrificed for their country.

Story Snapshot

  • Panama Canal Zone veterans denied presumptive VA coverage for herbicide exposure despite documented Agent Orange and pesticide contamination at duty stations
  • Nearly 400 veterans with cancer, heart disease, and other herbicide-related conditions rejected by VA while similarly exposed veterans from Vietnam and Gulf War receive automatic benefits
  • VA’s own 2020 appeals decision validated Panama exposure, yet the agency refuses to establish presumptive status, forcing each veteran to re-litigate the same facts
  • Bipartisan Congressional efforts stalled since February 2024, suggesting bureaucratic resistance may trump political will to correct systemic inequity

A Two-Tiered System Betrays Panama Veterans

The VA’s treatment of Panama Canal Zone veterans exposes a troubling double standard in veteran benefits. While veterans who served in Vietnam, the Gulf War, and post-9/11 deployments receive automatic presumptive coverage for toxic exposure-related illnesses, Panama veterans must individually prove causation despite documented herbicide presence at their duty stations. Army veteran Steven Price, who served 3.5 years in Panama as a radio operator and linguist, submitted his VA claim in September 2024 and received denial within 30 days. His experience reflects a systemic failure affecting hundreds of similarly situated veterans.

Documented Exposure, Documented Denial

The evidence of herbicide contamination in Panama is undeniable. The Panama Canal Zone hosted over 10,000 soldiers during the 1980s alone, with continuous military presence from the 1950s through 1999. The region functioned as both a transshipment point for Agent Orange destined for Vietnam and a location of extensive pesticide spraying for insect control, with compounds mixed with diesel and applied from trucks. Yet the VA’s 2022 PACT Act established a specific list of presumptive duty locations—determined by the Department of Defense—that conspicuously excludes Panama despite public documents corroborating herbicide presence.

The VA’s Own Precedent Undermines Its Position

Perhaps most damaging to the VA’s credibility is Marine Corps veteran Robert Butler’s successful 2020 Board of Veterans’ Appeals decision. Butler served in Panama from 1971-1972 and was initially denied disability benefits for ischemic heart disease. After appealing with federal documents showing numerous herbicide shipments to Panama, the VA Board validated his exposure claim. Yet the VA refuses to use individual appeal cases as precedents for approving subsequent claims, forcing each veteran to essentially re-litigate the same factual questions. This approach contradicts the entire logic of presumptive status, which exists precisely because individual proof is difficult or impossible to obtain for environmental exposures affecting large populations.

Congressional Pressure Meets Bureaucratic Resistance

In February 2024, 19 bipartisan members of Congress sent a letter to VA Secretary Denis McDonough documenting nearly 400 veterans with cancer, heart disease, and other herbicide-exposure-consistent conditions denied compensation. Rep. Joaquin Castro, co-introducing the Panama Canal Zone Veterans Act, articulated the core problem: “It may be a matter of cost, the fact that they’ve not gone back and done the research to verify these reports.” Castro emphasized the moral dimension: “People shouldn’t have to fight with the VA to get covered for things like cancer.” Despite this Congressional pressure, no legislative resolution has been enacted as of December 2025, and the VA continues processing claims on a case-by-case basis.

Systemic Failure Extends Beyond Panama

The 2023 National Academies of Sciences, Engineering, and Medicine report identified that the VA’s presumption process itself lacks “specificity, and criteria for how conditions are identified,” creating systemic inconsistency affecting all toxic exposure claims. Jon Retzer, Deputy National Legislative Director of Disabled American Veterans, testified to the Senate Veterans’ Affairs Committee in October 2024 that “the lack of defined criteria for establishing presumptive conditions leads to inconsistency and undermines veterans’ confidence in the fairness of the system.” This problem extends far beyond Panama, exposing fundamental flaws in how the VA determines eligibility for veterans harmed by toxic exposure.

The VA’s refusal to establish presumptive coverage for Panama veterans represents a failure to honor those who served their country. When documented evidence exists, when Congressional representatives from both parties demand action, and when the VA’s own appeals process has validated similar claims, continued denials become indefensible. Hundreds of aging veterans should not have to fight bureaucracy to receive benefits they’ve earned through service and exposure to known toxins. This systemic inequity demands immediate legislative correction.

Sources:

A veteran’s service in Panama isn’t covered by the VA. There are hundreds like him. — Task & Purpose

Vets Exposed to Chemicals in Panama Canal Zone Veterans Seek VA Benefits — Texas Public Radio

Foreign Medical Program — Department of Veterans Affairs

Foreign Medical Program Alerts — Department of Veterans Affairs

H.R. 2447: Panama Canal Zone Veterans Act — Congress.gov

H.R. 5026: Panama Canal Zone Veterans Act — Congress.gov