On Thursday, the Senate approved a $3 billion emergency spending bill to address the budget shortfall in the Department of Veterans Affairs.
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) funding for disability and education benefits.
- 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.
- The VA had informed lawmakers in July about the $3 billion shortfall needed for this fiscal year.
Senate Approves Crucial Emergency Funding
The Senate approved a $3 billion emergency spending bill to remedy the budget shortfall in the Department of Veterans Affairs. The bill ensures the uninterrupted provision of crucial disability and education benefits for veterans. The Senate passed the bill by voice vote, sending it to President Joe Biden for his expected signature. The approval came just in time to meet the Sept. 20 deadline to secure benefits payments on Oct. 1.
The VA attributed the shortfall to higher-than-expected claims under the PACT Act and GI Bill payments exceeding projections. The Senate Veterans Affairs Committee held a hearing on the shortfall, highlighting frustrations over the late notice of budget issues. Republican lawmakers criticized the VA for not recognizing the budget problems sooner, sparking calls for more transparent financial planning.
Paul’s amendment to cut Department of Energy funding in exchange for the $3 billion fell flat, with a 47-47 vote.
Potential Government Shutdown Looms
VA officials have reported a $12 billion shortfall for the upcoming fiscal year starting in October. They have urged Congress to address this in a stopgap spending bill to prevent a government shutdown. However, an initial House GOP proposal excluded the $12 billion for VA medical funding and was recently voted down over unrelated issues. The House had passed the measure two days earlier, mandating a report on the budget shortfall within a month.
“The majority of the funds that we provide are delivered through direct deposit … and we’re working closely with the Treasury to find ways to compress that timeline,” said Senate Appropriations Committee Chair Patty Murray.
The VA’s budget shortfall stems from a record-high number of benefits approvals, driven largely by the PACT Act, which expanded services for veterans with toxic exposure injuries. Over the last fiscal year, 1.1 million veterans and survivors received disability compensation benefits, setting a new record.
🚨 JUST PASSED 🚨 My bill to protect benefits for 7 million veterans has now cleared the Senate!
With a $2.883 billion VA budget shortfall threatening their benefits, this fix is essential. Our veterans deserve accountability and the care they’ve earned.
It's time for @POTUS… pic.twitter.com/XrN3isEqmy
— Rep. Mike Garcia (@RepMikeGarcia) September 19, 2024
Calls for Increased Oversight and Accountability
Republican lawmakers have demanded increased oversight to address the VA’s budgeting errors. The House included language for an oversight report to ensure accountability. Sen. Jerry Moran, R-Kan., noted his concerns stating, “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.”
“Funding veterans benefits is key to living up to the promises we made to the men and women who stepped up to serve,” said Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont. “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. This is what paying the true cost of war looks like, and I’m proud the Senate was able to act quickly today to ensure that seven million veterans and their families receive their benefit checks on time.” – Source
VA officials have also requested an additional $15 billion for fiscal 2025 to manage increased benefits and medical care costs. Lawmakers will deliberate this request following the November elections. This ongoing dialogue underscores the urgent need for effective financial stewardship to ensure that veterans’ needs are continuously met.
