2025 Veterans Affairs (VA) Budget: What’s In and What’s Out
The Department of Veterans Affairs (VA) has released its 2025 budget request, a monumental plan designed to continue supporting veterans with the care and benefits they deserve.
The total budget request for FY 2025 stands at a whopping $369.3 billion, marking a 9.8% boost from FY 2024 levels.
This underscores a strong commitment to addressing the evolving needs of our nation’s veterans, while also shedding light on the significant challenges of maintaining the VA’s essential programs amidst the current $15 billion budget shortfall (the largest in VA history).
The budget covers two major areas: Discretionary funding of $134 billion and mandatory funding of $235.3 billion.
The discretionary funding primarily supports healthcare and infrastructure projects, while the mandatory funding will focus on traditional veteran benefits, such as compensation for disabilities and the Cost of War Toxic Exposures Fund (TEF).
Key Highlights of the VA’s 2025 Budget Request
Here’s some key aspects of the 2025 VA budget:
· Mental Health and Suicide Prevention: The budget allocates significant resources to enhance mental health care and suicide prevention programs for veterans, recognizing the growing demand for these services.
· Toxic Exposure Support: The Cost of War Toxic Exposures Fund (TEF) receives $24.5 billion, ensuring veterans who have been exposed to toxic substances receive the care they need.
· Disability Claims Processing: VA is committed to speeding up the claims process, with funding directed towards improving technology and hiring additional staff to reduce the backlog of disability claims.
· Veteran Homelessness: The VA continues its commitment to ending veteran homelessness by investing in support programs to help veterans secure stable housing.
2025 Veterans’ Care and Benefits Breakdown
Here’s some important statistics regarding veterans care and benefits:
· Benefits: The VBA’s 2025 budget request seeks $4.4 billion in discretionary funding to provide a wide range of benefits and services to veterans, their dependents, and survivors. This includes $4.0 billion allocated for VBA General Operating Expenses (GOE), which reflects a $136 million (3.5%) increase from 2024. Additionally, the request outlines $212 billion for mandatory benefit payments and services, including those under the Toxic Exposure Fund (TEF), ensuring veterans and their beneficiaries receive the critical support they need.
· Healthcare: The budget will support treatment for over 7.3 million unique patients and fund 142.6 million outpatient visits. It also provides disability compensation to nearly 6.9 million veterans and survivors.
· Education and Employment: More than 981,000 veterans will benefit from education assistance programs, and over 134,000 veterans will receive employment benefits through Veteran Readiness and Employment (VR&E).
· Infrastructure: $2.76 billion is allocated for construction projects, ensuring that the VA can expand and improve its facilities to better serve veterans.
Some Lawmakers Unhappy with the VA’s Current Budget Shortfall
Lawmakers are expressing significant frustration over the VA’s current budget shortfalls, particularly concerning the agency’s Electronic Health Records Modernization (EHRM) program.
The VA informed Congress of a $12 billion shortfall for medical care in the 2025 fiscal year, sparking criticism from House Committee on Veterans’ Affairs Chairman Mike Bost and others.
The EHRM program, originally budgeted at $16 billion, is now projected to exceed $50 billion due to ongoing delays and mismanagement.
Several lawmakers, including Rep. Greg Murphy, are calling for the VA to abandon its contract with Oracle Cerner, citing poor performance and limited progress.
After 10 years, only 6 out of 160 VA sites are using the system, and its integration with other healthcare systems remains inadequate.
Murphy emphasized that continuing down this path would lead to more waste and inefficiency.
While VA Under Secretary for Health Shereef Elnahal admitted the program hasn’t met expectations, he expressed the VA’s commitment to improving it.
However, Rep. Murphy and other lawmakers remain doubtful, with some calling for a complete overhaul of the system.
The controversy centers on whether the VA can correct course or if it needs a new approach to better serve veterans and avoid ballooning costs.
House Republicans Introduce a $3 Billion Supplemental Funding Bill for the VA
House Republicans have introduced a $3 billion supplemental funding bill to address a significant budget shortfall at the Department of Veterans Affairs (VA).
The Veterans Benefits Continuity and Accountability Supplemental Appropriations Act, which is cosponsored by House Appropriations Committee Chairman Tom Cole, R-Okla., committee members Mike Garcia, R-Calif., Judge Carter, R-Texas, David Valadao, R-Calif., and House Committee on Veterans’ Affairs Chairman Mike Bost, R-Ill., would give the VA an extra $2.89 billion to cover additional costs at the Veteran Benefits Administration (VBA).
The new bill comes after VA officials informed Congress of a $15 billion total budget shortfall, the largest in the history of the VA.
It’s important to note that while the bill addresses the immediate needs for 2024, it does not cover the anticipated $12 billion shortfall for FY 2025.
VA officials attribute the budget crunch to increased demand for benefits and health care under the PACT Act, which expanded eligibility for veterans exposed to toxic substances during their service.
The supplemental bill also calls for regular updates from the VA on the status of funds and requires the VA’s Office of Inspector General to investigate the root causes of the budget shortfall.
Increased hiring within the Veterans Health Administration and rising pharmaceutical costs have also been noted as key factors in the budget issues.
Lawmakers, including House Appropriations Chairman Tom Cole and House VA Committee Chairman Mike Bost, have criticized the VA’s financial management, calling for greater oversight and accountability to ensure veterans receive their promised benefits without further mismanagement.
Final Thoughts
The 2025 VA budget request demonstrates a significant commitment to improving the care and benefits available to our nation’s veterans.
With a $369.3 billion allocation, the VA is focusing on critical areas like mental health, disability claim processing, and toxic exposure care.
However, as seen with issues like the EHR system and ongoing budget shortfalls, there are serious challenges that need to be addressed to ensure the efficient use of resources.
Veterans deserve world-class care and benefits, and it’s vital for both the VA and lawmakers to remain transparent and accountable as they work through these financial hurdles.
I urge lawmakers from both sides of the aisle to come together to streamline the VA’s systems, hold VA officials and contractors accountable, and ensure that veterans receive the care and benefits they need and have earned through their service to our country.
About the Author
Brian Reese is one of the world’s top VA disability benefits experts and the #1 bestselling author of VA Claim Secrets and You Deserve It. Frustrated with the VA claim process, Brian founded VA Claims Insider to help disabled veterans win their VA disability compensation faster. He has served over 10 million military members and veterans since 2013. A former Air Force officer, Brian deployed to Afghanistan in 2011. He is a Distinguished Graduate from the U.S. Air Force Academy and holds an MBA from Oklahoma State University, where he was a National Honor Scholar.
