Department of Veterans Affairs leaders now claim that a budget shortfall reported to Congress over the summer isn’t as big as expected, leaving House Republicans fuming and demanding answers.
An Oct. 28 briefing document to Congress notes that the Veterans Benefits Administration carried over approximately $5.1 billion from FY 2024 to FY 2025, including supplemental funding appropriated by lawmakers in September.
“This carry-over amount also means that we did not use the $2.83 billion in supplemental funding provided by Congress last month to address FY 2024 requirements,” the document reads. “While the supplemental funding was not immediately utilized, it was critical that we had this funding on hand - because if we had even been $1 short on September 20th, we could not certify our payment files and more than 7 million veterans and survivors would have had delays in their disability compensation, pension and education benefits on October 1st.”
According to the briefing document, VA will use the funding in the “first month of FY 2025, and it will go directly to providing benefits for veterans and their families - as we continue to deliver more benefits to more veterans than ever before.”
VA Secretary Denis McDonough and others have said the budget shortfall is the result of more veterans than ever before using its health care and benefits services. VA has also warned Congress it is facing a $12 billion shortfall in fiscal 2025 for veterans health care.
In a Nov. 1 statement, House Veterans Affairs Committee Chairman Mike Bost (R-Ill.) said that VA leaders repeatedly told Congress that benefits funding was on the verge of running out and that veterans could be harmed.
“VA has told us, less than one week out from an election, that they had a more than two-billion-cushion and veterans were never going to be affected,” he said.
Bost promised an investigation into the matter, but added that until then, he had one question for McDonough: “Who is counting the money and when will they be accountable?”
Chairman of the House Subcommittee on Military Construction, Veterans Affairs, and Related Agencies Appropriations John Carter (R-TX) accused the Biden-Harris administration of using veterans for their own political ambitions.
“After yelling fire in a crowded theater, this administration has admitted that veterans were never in danger of losing their benefits,” he said. “This behavior is unconscionable and a danger to our veterans. Veterans deserve our respect, they’re not political pawns.”
In the briefing document, VA said it was able to stretch its budget by limiting the purchase of new equipment. It also noted that workforce costs were lower than expected.
“While these changes are a result of our efforts to manage the budget and resources responsibly, many are not sustainable in the long run,” the document reads.
“That’s why, as requested by the Administration last fiscal year, we still need a funding anomaly by the end of this calendar year to ensure that we are able to continue to provide veterans with the world-class care and benefits they deserve through FY 2025.”
The briefing document did not provide the dollar amount VA needs.
“We are gathering information to close out the books on FY 2024, as we do at the end of every fiscal year, and we will come back to you with more information as soon as possible,” it reads.
Lawmakers will return to Washington later this month following the election when they will work on the FY 2025 budget.
Reach Julia LeDoux at Julia@connectingvets.com.