Ranking Member Wasserman Schultz Statement at the Veterans Health Administration Oversight Hearing

WASHINGTON — Congresswoman Debbie Wasserman Schultz (D-FL-25), Ranking Member of the Military Construction, Veterans Affairs, and Related Agencies Subcommittee, delivered the following remarks at the Subcommittee's hearing on the Veterans Health Administration:

- As Prepared for Delivery -

Thank you, Chairman Carter, for yielding.

Welcome, Dr. Elnahal and Mr. Jacobs. Thank you for being here today. 

We’re here to discuss some of the budget challenges VA is facing as they work to accommodate the growing number of veterans who rely on services provided by the Department.

Before we get into that, I want to quickly walk through how we got here today.

Two summers ago, we passed the PACT Act, which was the largest expansion in a generation of healthcare and disability compensation for veterans who were exposed to toxic substances during military service.

We also created the Toxic Exposures Fund, or the “TEF” which ensured that these expenses would be covered on the mandatory side of the ledger because our veterans deserve to have certainty that all their qualifying needs will be taken care of year after year. And when we make promises like the PACT Act, we must keep them.

Since the passage of this bill, the Biden Administration has worked tirelessly to make sure that veterans who qualify, receive the benefits and health care they deserve.

The Administration has been so successful that VA has seen a 37 percent increase in veterans enrolled in VA health care and serviced 7.5 million more health care appointments than last year. Additionally, VA processed over 2.5 million disability benefit claims – a 27 percent increase over last year, and those claims are being granted at higher rates.

And this year, veteran trust in VA has reached an all-time high of over 80 percent. 

Clearly, the PACT Act is working.

Such success does bring challenges, and one of those is predicting how much all of this will cost.

I recognize how difficult that can be but it’s also incredibly concerning that the VA incorrectly estimated its costs.

In June, VA told us that there would be major shortfalls in both VBA and VHA. In fact, at that time, VA told us the shortfall would be $2.8 billion for VBA and $12 billion for VHA.

VA also told us that the $2.8 billion for VBA was urgently needed by September 20th of this year. So, Congress quickly worked to appropriate this funding, only to find out two months later that VBA had more than enough carryover to cover all its needs for the year.

While I join my colleagues in asking the tough questions as to how we got here, it is important to understand something here: the fact that VA did not need the full supplemental is rare.

In this case, a government agency needed LESS money than anticipated and was still able to provide high quality benefits and care without going over budget. While we wish your estimates were better, this is actually a case of government efficiency. 

However, we should be digging into the VHA shortfall because, quite frankly, we need to reexamine your initial $12 billion estimate. 

I understand that you are now taking a closer look at that number, and you are awaiting OMB’s review, but it’s absolutely essential that your new estimate be as accurate as possible.

In addition to managing the 37 percent growth in participation, VHA is also facing the rising costs of health care, which adds to the uncertainty around your budget needs.

We’d like to better understand what those cost increases are.

I feel confident in saying that we’re all here to support the needs of our veterans.

We want to ensure that we keep our promise to care for those who have served in our nation’s military and for their families, caregivers, and survivors. 

But what truly worries me in the coming year is what the incoming Administration is saying about “government efficiency.” 

By threatening to defund unauthorized programs, $119 billion in VA health care is on the chopping block.

Congress must not delay our work into next year, we should be passing full year appropriations bills – and we should be working on them right now so that we fully fund the benefits and care our veterans have earned.

However, here we are one month away from the expiration of the continuing resolution, still without any topline agreement.

At the same time, we need to appropriately fund all our non-defense programs so that we are not constantly facing shortfalls and requiring supplementals just to fund our government’s basic functions. 

Responsible governance requires taking care of our veterans’ needs inside the VA. I hope our friends on the other side of the aisle keep that in mind. 

I look forward to your testimony and I yield back.

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