Senator Hassan Helps Pass Emergency VA Funding and Presses VA Officials for Transparency on the Budget Crisis

WASHINGTON – U.S. Senator Maggie Hassan and colleagues passed bipartisan legislation addressing the Department of Veterans Affairs (VA) funding crisis, which threatened to delay benefits to as many as seven million veterans and their survivors. Today, the bill was signed into law by President Joe Biden.

Previously, Senator Hassan and her colleagues worked to develop and pass into law the PACT Act, which fundamentally reformed and improved how veterans exposed to toxic substances receive health care and benefits from the VA. To date, more than one million PACT Act-related claims have been approved as veterans have been able to make use of these benefits. However, the VA did not properly anticipate how many new veterans would apply for benefits under the PACT Act, contributing to the budget shortfall. The bill the President signed into law today secures emergency funds for veterans’ disability compensation, pensions, and readjustment benefits – resolving the fiscal year 2024 shortfall. The law also requires more transparency and reporting from the VA on its budget and spending, to help prevent future shortfalls.

The need for emergency funding was the subject of a Senate Veterans’ Affairs Committee hearing earlier this week, during which Senator Maggie Hassan pressed VA officials about the mistakes made during the financial forecasting process that led to such a close call and pressed for answers on improper VA bonuses. To watch Senator Hassan’s hearing questions, click here.

Senator Hassan began by asking VA officials to outline their plans for accurate funding forecasts in the future, criticizing “VA’s inability to properly plan for that very influx of PACT Act veterans.” Senator Hassan continued, “What in the process – moving forward – are you changing so that this doesn’t happen again?”

Joshua Jacobs, Under Secretary for Benefits, responded that the VA is improving its predictive capabilities and will also improve the frequency with which it reports its budget needs to Congress.

Senator Hassan then turned to concerns over the VA’s bonus payments, calling for accountability regarding the improper payment of millions of dollars in bonuses to VA senior executives.

“The VA Inspector General’s Office found that the awarding of almost $11 million to central office executives within…your respective offices were inconsistent with both the PACT Act and VA policy. So this wasn’t just a mistake – you’ve got the Inspector General’s office saying you guys just didn’t follow the law and follow the policy. I know that you’ve worked to recoup the bonuses, but…I would like you both just to talk a little bit more about how you can explain your role in and responsibility for the improper issuing of these bonuses, and how do you plan to ensure that it doesn’t happen again?” Senator Hassan asked.

In response, Mr. Jacobs described a series of process shortcomings in the VA, such as concerns raised in HR that were not properly elevated. He acknowledged the need to improve who is involved in the decision-making process to avoid possible conflicts of interest. Mr. Jacobs continued by suggesting that all future bonus payments to executives be approved by the VA Secretary.

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