Worrying Signs in VA’s Budget Shortfall
Last week, VA informed Congress that it may be facing a budget shortfall approaching $15 billion across the remainder of Fiscal Year (FY) 2024 and FY 2025. Approximately $12 billion of that pertains to the Veterans Health Administration (VHA) – with $3 billion related to the Veterans Benefits Administration (VBA).That deficit is a major cause for alarm, and due in no small part to the ever-increasing cost of referring veterans to the community for care. These outlays are projected to be 34 percent higher in FY 2025 than in FY 2023.VA has asked for increased allocations to help meet the shortfall. This supplemental allocation would also cover things like hiring an additional 5,000 full-time employees. That relatively small increase won’t do enough to meet ballooning demand and deal with a serious staffing crisis. The update and funding request are exactly what Congress had asked of VA after agency leaders recently announced an urgent budget crisis that could lead to the loss of 10,000 or more staffers.While many members of Congress, including House Veterans Affairs Chairman Mike Bost (R, Ill), lambasted VA for the proposed cut of 10,000 positions, Bost had nothing but criticism for the VA’s request in a letter he sent to VA Secretary Denis McDonough on July 17. Bost slammed VA for their budget deficits and attempts to hire more staff to care for veterans. He insisted that “my committee will do our job and not rest until we get to the bottom of how these shortfalls occurred and who is responsible.” He also suggested that VA was at fault for its staffing and budgetary problems. The truth is that these issues stem directly from shortsighted, highly expensive outsourcing programs penned and passed by lawmakers like Bost.VA must request the funding needed to hire enough staff so that it can meet the demand for in-house care. That's because care delivered by the VHA has been consistently proven to be timelier and of better quality than that delivered by the private sector. As such, Congress must completely fund VA so veterans can continue to receive these stellar services.
