The Senate passes a crucial $3 billion emergency funding bill to address a VA budget shortfall, averting potential delays in veterans’ benefits.
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).
- 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 shortfall is attributed to higher-than-expected benefits claims under the PACT Act and GI Bill payments exceeding projections.
Senate Approves Emergency Funding for VA
The Senate has passed a $3 billion emergency funding bill aimed at addressing a significant financial shortfall faced by the Department of Veterans Affairs (VA). The bill, approved through a voice vote on Wednesday, is now headed to President Joe Biden for his expected signature. This action ensures that veterans will continue to receive disability and education benefits without interruption, addressing urgent fiscal needs within the VA.
The necessity for this funding emerged after the VA alerted lawmakers in July about the shortfall. The deficit arose due to higher-than-expected benefits claims under the PACT Act and exceeding projections for GI Bill payments. The Senate acted swiftly to avoid disruption of benefits scheduled on Oct. 1, with the bill passing just before the Friday deadline. The rapid approval underscores the importance attached to maintaining veteran support systems. The PACT Act had expanded eligibility for services to veterans with toxic exposure injuries, leading to increased financial demands.
The Senate Veterans Affairs Committee held a hearing on the shortfall where senators expressed frustration over the late notice of the budget issues. Sen. Rand Paul, R-Ky., threatened to delay the bill unless his amendment to offset the $3 billion by cutting Department of Energy funding was voted on. His amendment failed with a 47-47 vote.
BREAKING: Chairman @SenatorTester’s bipartisan bill to provide emergency funding for veterans benefits just passed the Senate.
This bill will ensure that more than seven million veterans and survivors receive their disability benefits checks on time on October 1st.— Senate Veterans' Affairs Committee Dems (@SVACDems) September 19, 2024
Ongoing Budget Challenges for the VA
Despite the passage of this emergency funding, the VA faces further financial challenges with a projected $12 billion shortfall in its medical budget for the next fiscal year starting October 1. VA officials have requested Congress to include the necessary medical funding in a stopgap spending bill to prevent a government shutdown. An initial House GOP proposal for the stopgap bill did not include the $12 billion for VA medical funding and was voted down over unrelated issues.
“The reason we find ourselves in this situation is, frankly, our workforce has over-delivered on what were already aggressive projections,” said Josh Jacobs, VA undersecretary for benefits, at the hearing. “For the last year, we delivered more benefits to more veterans at any other time in our history.”
Senate Veterans’ Affairs Committee Chairman Jon Tester, D-Mont., emphasized that the shortfall reflects the success of the PACT Act in reaching more veterans entitled to benefits. He said the bill is essential to maintaining the promises made to service members. Additionally, VA staff have granted disability compensation benefits to over 1.1 million veterans and survivors in fiscal 2024, setting a new record. These benefits approvals, along with nearly 413,000 new enrollments in VA health care services over the past 12 months, demonstrate the substantial demand and pressure on VA resources.
Senate passes $3 billion emergency spending bill to plug part of VA budget shortfallhttps://t.co/9Mq74Riipv pic.twitter.com/1YNjvVQhhe
— The Washington Times (@WashTimes) September 20, 2024
Remaining Steps and Future Considerations
To further address the ongoing fiscal challenges, VA officials have requested an additional $15 billion for fiscal 2025 to cover anticipated increases in benefits and medical care costs. Lawmakers will debate this request post-November elections. Senate Appropriations Committee Chair Patty Murray, D-Wash., expressed the necessity of continued bipartisan cooperation to support veterans. “Our veterans were there for us. We have to be there for them,” she stated, urging immediate and effective legislative action to maintain VA funding.
“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., in a statement. “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 in 12 days.”
As Congress addresses these ongoing budget issues, the focus remains on ensuring that the vital services and benefits due to veterans continue without disruption, honoring their service and sacrifices.
