The House Military Construction, Veterans Affairs, and Related Agencies (MilCon-VA) Appropriations Subcommittee held a Nov. 20 hearing assessing the potential fiscal year (FY) 2025 budget shortfall for the Veterans Health Administration (VHA). Subcommittee Chair John Carter (R-Texas) and Ranking Member Debbie Wasserman Schultz (D-Fla.) raised concerns over the projected $12 billion shortfall, the VA’s budget forecasting accuracy, and increases in costs of VA care associated with expanded veteran access as a result of the PACT Act (P.L. 117-168, PDF).
VA Under Secretary for Health Shereef Elnahal, MD, and Under Secretary for Benefits Josh Jacobs highlighted progress in expanding care under the PACT Act, which led to a 37% increase in veteran health care enrollment and record disability claim processing. However, they acknowledged difficulties in predicting costs due to rising pharmaceutical expenses and delayed equipment purchases. In addition, Elnahal shared that the potential shortfall may be less than initially estimated and that the department is working with the White House Office of Management and Budget on an updated calculation.
Subcommittee members applauded the VA for the expansion of care resulting from implementation of the PACT Act but called for stronger fiscal oversight and accountability, emphasizing the need for accurate financial projections to ensure Congress can appropriately fund veteran health care without unnecessary delays or overestimations.