Congress moves to fix VA budget gap, but time is running out

Congressional leaders have a deal in place to patch a nearly $3 billion shortfall on Department of Veterans Affairs funding that risks endangering benefits payments as soon as next month, but veterans advocates said they are reluctant to celebrate until the final details are worked out.

“When we see votes that are yes and then the dollars are actually sent to the [Treasury Department], then that will relieve our sense of urgency,” said Pat Murray, legislative director for the Veterans of Foreign Wars. “A proposed solution is not enough, we need an actual solution.”

VA officials have warned that because of increased medical care and benefits applications in recent months, the department’s budget is roughly $2.9 billion short for this fiscal year and about $12 billion short in projected fiscal 2025 needs.

The funds for next year likely will be negotiated as part of a broader federal budget package to be completed sometime this fall.

But VA leaders on Tuesday testified before the House Veterans’ Affairs Committee that without a solution to the other funding gap by Sept. 20, some benefits checks to veterans and dependents could be delayed in October.

At a rally outside the VFW offices on Wednesday morning, dozens of veterans advocates warned those late checks could be disastrous for veterans.

“This financial crisis will affect disability compensation, caregiver compensation, community care payouts, everything,” said Julia Mathis, legislative director for the American Legion. “Every day that we get closer to September 20 is another 24 hours of uncertainty for thousands of veterans whose financial lives depend on this.”

Lawmakers on the House committee indicated Tuesday that they were working behind the scenes to help solve the problem, while at the same time expressing concerns that VA officials did not detect the funding shortfall sooner.

Congressional sources on Wednesday confirmed House leaders will move forward with a measure introduced by Rep. Mike Garcia, R-Calif., which would cover the budget gap for VA operations this month. A vote is expected on the legislation early next week.

That would give the Senate just a day or two to advance the legislation ahead of the Sept. 20 deadline. If a senator objects to the quick passage, it could push the final passage past that date or derail the whole measure.

Advocates say they plan to spend the next week lobbying lawmakers to make sure that doesn’t occur.

“The VA needs more money,” said Brian Kelly, president of the Military Officers Association of America. “It doesn’t matter who you want to point the finger at for that, the fact is that our veterans need their benefits paid out.”

“Any interruption in the VA’s ability to pay veterans may have devastating consequences on this community and may erode trust and confidence in the institutions who have pledged to support and care for those who have served.”

Lawmakers must also negotiate a separate extension for the full federal budget by Sept. 30 or risk a partial government shutdown. That potential funding lapse would have limited impact on VA services, however, because Congress regularly approves much of the department’s budget a year in advance.