Senate Passes Massive Funding Bill to Tackle Unexpected VA Deficit

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 in the Department of Veterans Affairs (VA).
The bill was passed by voice vote and sent to President Joe Biden for his expected signature.
The approval came just before a Friday deadline to avoid delaying the benefits.

Senate Approves Crucial Funding

The Senate approved a $3 billion emergency allocation to address a significant budget deficit within the Department of Veterans Affairs on Thursday. This funding is essential to ensure the continuation of disability and education benefits for veterans. The approval by voice vote signifies bipartisan support and the bill is now awaiting President Joe Biden’s signature. The move underscores the ongoing fiscal challenges the VA faces, particularly with growing demands on its services and constrained financial resources.

Veterans benefits payments scheduled for October 1st will remain undisrupted, thanks to this emergency funding. The VA had informed lawmakers back in July about this $3 billion shortfall necessary for the current fiscal year, prompting immediate legislative action to avoid any delays in benefits. The shortfall was attributed to higher-than-expected benefits claims under the PACT Act and GI Bill payments that exceeded earlier projections.

Budget Shortfall and Political Responses

The financial strain within the VA results partly from record-high benefits approvals and an increase in medical service usage. The PACT Act, which expanded eligibility for services to veterans with toxic exposure injuries, significantly drove up costs. VA officials and lawmakers alike have expressed frustration over the timing and handling of the budget notice, including Sen. Jerry Moran, R-Kan., who highlighted the lack of budgeting accountability and the delay in addressing the issue.

“We’re for that. Veterans are entitled to benefits. We want them to receive them. But here’s what troubles me, is the lack of budgeting accountability, knowing the facts in time to make better decisions. And what is really troubling to me is the lateness in which this issue arose.” – Sen. Jerry Moran, R-Kan.

The VA still faces a projected $12 billion shortfall in its medical budget for the next fiscal year, beginning on October 1. VA officials have requested that Congress include this figure in a stopgap spending bill to prevent a government shutdown. An initial House GOP proposal for such a stopgap bill did not include the additional $12 billion and was ultimately voted down over unrelated issues. House lawmakers, who advanced the same measure two days before the Senate, have called for an oversight report on the budget shortfall within a month.

BREAKING: Chairman @SenatorTester’s bipartisan bill to provide emergency funding for veterans benefits just passed the Senate.

This bill will ensure that more than seven million veterans and survivors receive their disability benefits checks on time on October 1st.

— Senate Veterans' Affairs Committee Dems (@SVACDems) September 19, 2024

Ongoing Fiscal Challenges and Legislative Action

The Senate Veterans Affairs Committee conducted a hearing on the budget shortfall, where concerns were raised about late notice and spending accountability. Proposals to either withhold bonuses for senior VA executives or to cut Department of Energy funding to offset the emergency allocation were blocked. The move to inject these funds underscores the critical nature of maintaining consistent support for veterans.

“Funding veterans benefits is key to living up to the promises we made to the men and women who stepped up to serve. This shortfall exists because the PACT Act is working for toxic-exposed veterans and survivors in Montana and across the country, and as a result, more veterans and their loved ones are receiving benefits than ever before.” – Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont.

VA officials have continued to advocate for additional funding to cover the growing costs, with a request for an extra $15 billion for fiscal 2025 to meet increased benefits and medical care expenses. Lawmakers are set to debate this request post-November elections, indicating that discussions over VA budgeting and accountability are far from over. Ultimately, the ongoing financial support of veterans remains a paramount issue that both parties acknowledge as essential to honoring the nation’s commitments.