Effort to patch VA budget shortfall sees conservative resistance

Senate conservatives are showing early resistance to expediting legislation to address a roughly $3 billion budget shortfall for the Department of Veterans Affairs (VA), as officials warn millions of veterans’ benefits are at risk in the coming weeks.

Some senators had been hopeful of passing the bipartisan bill this week amid growing concern over the shortfall. However, the effort is getting pushback from some conservatives, as Republicans have raised scrutiny over the issue.

“When we spend billions of dollars, we should ask, you know, are controls in place that’s being spent wisely. Where was it spent?” Sen. Rand Paul (R-Ky.) told The Hill on Tuesday afternoon. “We gave them record amounts of dollars, was it gone.”

“So, somebody made bad decision making or bad management, so all that needs to be discussed and worked through, and that’s why I would never let it go through without a discussion,” he said.

The VA has said it needs Congress to provide about $2.9 billion “in mandatory benefits funds” for the fiscal year ending in late September, as well as about $12 billion for medical care for the following fiscal year. The agency has cited the PACT Act, passed in 2022, as the key driver behind the shortfall, pointing to increases in enrollment in VA healthcare, appointments and applications benefits.

Senators have discussed the prospect of expediting passage of the legislation, which addresses the nearly $3 billion shortfall, before they leave for August recess this week. But that process, also known as “unanimous consent,” can also be held up if a single senator opposes passage.

Sen. Tommy Tuberville (R-Ala.) also said he has a hold on the bill, while pressing for a hearing.

“I just want to know why? Don’t send a letter over saying, ‘We need $3 billion.’ Let us know why you need it. Let us ask questions on both sides. It’s only fair,” he said on Wednesday afternoon, though he added he is supportive overall of providing the funding to address the shortfall.

The sentiment comes as more have also sounded alarm over the issue. 

“The problem is that if we don’t get this solved very quickly, it could start affecting benefits in October and so I’m very worried about it,” said Sen. Susan Collins (Maine), top Republican on the Senate Appropriations Committee, which crafts all 12 annual government funding bills.

“I’m also incredibly frustrated with the VA, because they had to know that they were underfunding these accounts, and I just don’t buy the argument that they had no idea that’s what’s going to happen,” she said. “That’s just not possible.”

Veterans’ compensation and pension benefit payments, as well as their readjustment benefits, could be delayed if Congress doesn’t provide additional funding by a Sept. 20 deadline.

Collins joined Senate Appropriations Chair Patty Murray (D-Wash.) and Sens. Sherrod Brown (D-Ohio), John Boozman (R-Ark.), Susan Collins (R-Maine), Jon Tester (D-Mont.), Kyrsten Sinema (I-Ariz.) and Jerry Moran (R-Kan.) in introducing the bill this week.

The bill calls for upwards of $2.8 billion in additional funding for the VA, appropriating about $2.3 billion for the Veterans Benefits Administration for compensation and pensions, as well as roughly $597 million for readjustment benefits.

The bill also calls for the Government Accountability Office to review “the circumstances surrounding and causes of the shortfall” and “possible remedies the Department may take in the future to improve annual budget submissions and prevent shortfalls,” among other measures.