Budget Hearing - U.S. Department of Veterans Affairs

VA Budget and ModernizationHouse Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies · 2025-05-15 · 119th Congress
The House Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies held this budget hearing to examine the Department of Veterans Affairs' fiscal year 2026 request, review a recent Inspector General report on VBA/VHA budget shortfalls, and question new VA Secretary Doug Collins on staffing cuts, contract cancellations, and fund transfers made during his first 100 days in office. Begins at 0:08:45
Transcript
Highlights

Title

VA Secretary Doug Collins' First Budget Hearing on FY26 Request

Purpose

The House Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies held this budget hearing to examine the Department of Veterans Affairs' fiscal year 2026 request, review a recent Inspector General report on VBA/VHA budget shortfalls, and question new VA Secretary Doug Collins on staffing cuts, contract cancellations, and fund transfers made during his first 100 days in office. It was Collins' first appearance before the subcommittee since his confirmation, and members from both parties pressed him on reprogramming procedures, wait times, disability claims backlogs, and specific personnel and program cuts. Begins at0:08:45

Who spoke

Subcommittee Chairman0:08:45: Welcomed Collins to his first hearing, noted the "skinny" FY26 budget provided little detail0:09:15, raised concerns about the $2.2 billion electronic health record modernization effort running over budget and behind schedule0:09:52, and later pressed on the OIG report on VBA/VHA forecasting errors0:26:46 and a long-delayed Bakersfield, CA clinic project1:31:10.

Rep. Debbie Wasserman Schultz (D-FL), Ranking Member0:13:15: Said the "skinny budget" gave only four lines on VA and criticized "four months of chaos," including a grant freeze, mass probationary firings, and crisis-line disruptions0:14:310:15:24; later pressed Collins on four unverified savings claims and the lack of reprogramming requests0:31:38, and on leaked emails alleging halted cancer clinical trial enrollment1:34:02.

Secretary Doug Collins, VA0:20:15: Argued the VA needs reform, not more money or people, citing 52,000 new employees from FY21–24 alongside worsening wait times0:21:38; said the disability backlog fell from 260,000 to 200,000 (about 21%) in under 100 days without new staff or funding0:39:39; defended notification-based fund transfers under OMB/CHA guidance rather than formal reprogramming requests0:34:29; and denied any clinical trial or enrollment halts1:36:59.

A subcommittee member representing Oklahoma's 5th district0:37:18: Asked Collins to elaborate on backlog and wait-time growth despite added staff0:37:18 and about VA restructuring plans, including consolidating duplicative payroll systems0:41:57.

A Georgia House member (Democrat)0:42:25: Cited FY22–23 data showing claims, intents-to-file, and enrollments all rose significantly under the prior administration0:43:17; pressed Collins to identify specific DEI programs cut and their savings0:45:04, and questioned crisis-line oversight failures0:47:41.

Rep. Tom Cole (R-OK), Chairman, Full Committee0:49:37: Welcomed Collins as a former colleague, noted the department should have filed a reprogramming request rather than a notification for the community care fund transfer0:50:27, and urged faster detail from OMB on the full presidential budget to avoid a continuing resolution0:52:40.

Rep. Franklin0:55:46: Highlighted his bipartisan CVSO Act authorizing $10 million for county veteran service officer outreach0:57:14; pressed Collins to guarantee human phone access rather than AI chatbots at VA call centers0:59:10; later asked about VR&E counselor staffing delays and hiring-freeze exemptions for VBA claims processors and HUD-VASH caseworkers1:56:241:58:17.

A subcommittee member (research funding/whistleblower questions)1:01:54: Said up to $550 million of the VA's roughly $900 million research budget may be wasted on excessive recruitment costs and chronically underenrolled studies1:02:51; pressed Collins on protecting whistleblowers from retaliation rather than allowing "fail up" transfers1:05:30.

A subcommittee member (contract oversight questions)1:07:23: Argued existing law (GPRA Modernization Act, appropriations penalty provisions) already requires performance, contracting, and quarterly oversight reporting that Congress should enforce1:07:50; raised concern about VA disability overpayments later clawed back from veterans1:10:38.

Rep. Mark Alford (R-MO)1:13:50: Relayed constituent case-worker Grace Townson's questions on disability backlog timelines, mail-delayed prescriptions, and slow congressional response times1:14:45; described losing a friend to suicide and asked how the VA will reduce the roughly 6,400 annual veteran suicides1:17:39; in a later round invited Collins to a Missouri town hall and asked about VA marketing/community care messaging2:02:34.

Rep. Veronica Escobar (D-TX)1:19:41: Cited the William Beaumont Army Medical Center project running three years late and about $650 million over budget as a cautionary example1:20:57, sought Collins' commitment to construction transparency for a new $700 million El Paso VA clinic1:22:14, and questioned the abrupt termination of the VA Servicing Purchase Program (VASP), which had assumed $5.4 billion in at-risk mortgages1:46:37.

Rep. Michael Guest (R-MS)1:25:26: Noted the VA added 114,000 employees and grew its budget from $160 billion to $394 billion over a decade while serving a roughly constant 9.1 million veterans, as wait times and the disability backlog worsened1:26:26; said only about 1,000 employees, mostly probationary, have actually been let go despite rumors of 80,000 cuts1:29:17.

A subcommittee member representing central Florida1:39:20: Asked Collins to address internal VA resistance to community care referrals1:40:08 and voiced support for continued study of psychedelics to treat PTSD, citing 11 ongoing VA-affiliated trials1:43:36.

A subcommittee member (EHR/TriWest questions)1:51:08: Asked how Collins will ensure staff complete mandatory Oracle EHR training after early-site rollout problems1:51:36, and raised constituent complaints that TriWest, the community care third-party administrator, required one provider to file 259 separate appeals over overpayment disputes1:54:13.

Key moments

Wasserman Schultz said VA is legally required to submit formal reprogramming requests under appropriations act sections 227, 229, 230, and 231 before moving funds, not merely notify Congress; Collins repeatedly maintained notification plus OMB/CHA guidance satisfies the requirement, and the two reached an "impasse"0:33:050:34:290:35:55.

The OIG's report found Congress provided $3 billion in emergency VBA funds that ultimately went unneeded, and VHA's request was revised from $12 billion to $6 billion, reflecting forecasting failures under the prior administration0:27:110:27:34.

Collins said the VA's disability claims backlog fell from about 260,000 in January 2025 to 200,000 by the hearing date — a roughly 21% drop in under 100 days — without adding staff or funding0:39:39.

Collins cited wait-time increases from FY21–24 despite 52,000 added employees: primary care rose from 15.7 to 24.3 days, mental health from 14.7 to 20.4 days, and specialty care from 24 to 38 days0:38:400:39:10.

Wasserman Schultz said Collins has claimed $14 million (DEI cuts), $1.8 billion (contracts), $98 million (probationary firings), and "hundreds of millions" redirected to veteran care, but the committee received no reprogramming requests, data, or answers to follow-up questions on any of the four claims0:31:380:32:35.

Wasserman Schultz said Collins publicly denied laying off any Veterans Crisis Line responder, then later admitted in a letter to Senator Baldwin to firing 24 crisis-line employees; Collins countered that no one answering calls was fired, only supervisory/behind-the-scenes staff, and that calls continued being received 24/7 though some went unanswered0:16:070:48:410:49:11.

Collins said the terminated VA Servicing Purchase Program (VASP) had assumed $5.4 billion in at-risk mortgages covering 17,000 veterans, with internal estimates the program could have cost up to $17 billion if continued, and said it was started by VBA without congressional authorization1:47:031:47:59.

Wasserman Schultz cited leaked emails from VA staff in Pennsylvania, Detroit, and Colorado alleging halted cancer research enrollment; Collins said no VA research trials have been cancelled and that the referenced Pittsburgh head-and-neck/lung cancer trial had not yet begun recruiting before any hiring freeze1:34:021:35:191:36:59.

Collins cited a VA contract worth $5.8 million to manage the Office of Small and Disadvantaged Business Utilization, a function already led by senior VA staff, as an example of duplicative spending uncovered in a review of roughly 16,000 contracts1:12:001:12:27.

Guest said the VA grew by 114,000 employees and its budget rose from $160 billion to $394 billion over the prior decade while serving a roughly constant 9.1 million veterans, even as wait times and the disability backlog grew substantially, contrasted with only about 1,000 (mostly probationary) firings under Collins1:26:261:28:101:29:17.

Metadata

CommitteeHouse Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies
Chamber / CongressHouse · 119th Congress
Date2025-05-15
TypeHearing
Witnesses
The Honorable Doug Collins — Secretary, Department of Veterans Affairs
Videoyoutube
Transcript279 caption blocks · 23,346 words · 2:11:51 runtime
EventCongress.gov 118113