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VA Finally Addresses Funding Shortfall

Thursday, August 4, 2005

VA Finally Addresses Funding ShortfallAfter a lengthy process, the Senate passed a $1.5 billion increase to the budget to cover veterans’ health care benefits, clearing the first spending bill for the new fiscal year beginning on October 1st.  The funds close a gap from the current budget year, and were added to a $26.3 billion bill for next year’s Interior Department budget.  The additional veterans’ funds were needed after the Veterans’ Affairs Department (VA) underestimated the number of veterans who would seek care as well as the rising costs of treatment and long-term care. 

The VA had initially projected approximately a $1 billion shortfall, but expected to manage the deficit by tapping into reserve funds and its budget for infrastructure improvements.  Lawmakers instead insisted on adding emergency funds in addition to the $28 million appropriated last year for veterans’ health care.  The House passed legislation approving the $1 billion figure, but immediately after its passage the VA increased its estimate to $1.3 billion.  The Senate voted twice unanimously for the $1.5 billion figure, which the House also approved.

 “I am pleased to see that Congress and the administration are taking the needs of the VA seriously,” said NFFE National President/DBR Richard N. Brown.  “Our country has a duty to care for the men and women who dedicated their lives defending of our nation, and it is vital that the VA has the resources necessary to provide the highest quality care possible.”

 

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