Senate passes $3B VA supplemental funding bill, averting delay in veterans’ benefits

The Senate passed a $3 billion supplemental funding bill, allowing the Department of Veterans Affairs to keep making veterans’ benefits payments without delay.

The Senate unanimously passed the supplemental funding bill in a voice vote Thursday. This bill now heads to President Joe Biden’s desk to be signed into law.

VA officials warned lawmakers in July that the Veterans Benefits Administration faced a $3 billion budget shortfall by the end of fiscal 2024.

The VA needed Congress to approve the emergency funding by Friday, to avoid a delay in compensation and pension benefit payments that go to 7 million veterans and their survivors.

Under Secretary for Benefits Joshua Jacobs told the Senate VA Committee on Wednesday that the $3 billion supplemental accounts for nearly a week’s worth of payments.

“Any funding shortfall of even $1 would prevent VA from processing its September pay file, and as a result, delay benefit payments,” Jacobs said.

Jacobs said VBA faced the year-end budget crunch because more veterans are receiving more benefits than expected under the PACT Act.

The 2022 law made more veterans eligible for VA health care and benefits, if they were exposed to toxic substances during their military service.

Jacobs said the VBA stayed on track with this year’s spending plan through this spring.

During a mandatory mid-session review in July, however, VBA updated its projections, and estimated it would complete 2.5 million claims decisions by the end of fiscal 2024 — about 300,000 more claims than it anticipated.

The House passed the $3 billion supplemental spending bill Tuesday evening. Republican leaders in the House introduced the bill last week.

Lawmakers, however, have yet to act on the Veterans Health Administration’s request for an additional $12 billion before the end of fiscal 2025.

Under Secretary for Health Shereef Elnahal said VHA needs to keep hiring to stay ahead of higher-than-expected demand for care under the PACT Act.

Republican lawmakers criticized VA leaders for only notifying Congress of the budget shortfall this summer, months after defending their fiscal 2025 budget request before House and Senate Committees.

Senate VA Committee Chairman Jon Tester (D-Mont.) said the VA faced this budget shortfall because it issued more benefits to more veterans than expected under the PACT Act.

“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,” Tester said.

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