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VA Funding in Limbo Despite $3 Billion Budget Shortfall

U.S. veterans and concerned supporters are waiting to find out if legislation will be passed to cover a $3 billion gap in funding to cover the costs of their 2024 benefits. The amount allocated for the year is insufficient to cover a wide variety of veterans’ needs, including disability benefits. Congress failed to pass legislation on the matter before breaking for recess earlier in the month.

To resolve the issue, Congress must act before the fiscal year ends on September 30. However, the deficit in question is indicative of larger financial complications. With more than nine million enrollees, the Veterans Health Administration (VHA) is the largest healthcare system in the country. The shortfall in funding for Veterans Affairs (VA) is projected to reach $15 billion both in 2024 and 2025. 

“The potential lack of funding for the Department of Veteran Affairs is a serious concern that could have significant consequences for our nation's veterans,” says Vladimir Zarkhin, the president and owner of Right at Home Boston Metro West, which provides in-home care for local veterans. “Without adequate funding, the VA may struggle to provide the necessary services and support that our veterans rely on.”

The latest shortfall poses several direct and indirect risks to veterans:

  1. Delayed or reduced benefits

  2. Less access to healthcare services

  3. Compromised veterans' programs

  4. Compounded financial stressors

Members of congress first began discussing the $3 billion shortfall last year when it became clear that financial strains at the VA were compounded by rising costs of services, increased enrollment in healthcare services, and other recent changes. Most notably, more people were receiving coverage through the PACT Act, which passed in 2022 to help burn pit victims get treatment. In the spring, the White House reported that since August of 2022 veterans and survivors had submitted over four million claims, more than 1.6 million of which were connected to the PACT Act.

Care funding available in a VA healthcare plan extends to much more than standard medical benefits. It may cover long-term-care services, skilled home health care, and other care programs. Someone who served in the active military, the U.S. Army Reserve or the National Guard may qualify for VA healthcare benefits from a variety of providers.

Now advocates are worried that veterans who have sacrificed for their country won’t have access to the care they need if the issue isn’t resolved soon. 

Lawmakers have been addressing the funding gap, exploring potential solutions, and debating measures to ensure that veterans' needs will be met amid the budgeting challenges. Yet the legislation that was introduced to cover the additional expenses won’t resolve other financial issues the VA is facing. The overall situation highlights the need for increased attention to the financial stability of veterans' programs and the importance of timely legislative action to address funding gaps. Congress will likely need to pass additional funding measures or make budgetary adjustments to ensure that the VA can continue to meet its commitments to veterans. 

Despite the VA warning that much-needed benefits payments are at risk, it is not yet clear whether a vote will take place when Congress returns from their recess. The VA is working with the U.S. government to address the shortfalls and maintain care for veterans.

“Veterans have sacrificed so much for our country, and they deserve to receive the care and resources they need to thrive after their service,” Zarkhin says. “We must advocate for increased funding for the VA and support policies that prioritize the needs of our veterans.”

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