Oversight: Path of Purpose: Restoring the VA VR&E Program to Effectively Serve Veterans

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Economic Opportunity · 2025-07-16 · 119th Congress
The House Veterans' Affairs Subcommittee on Economic Opportunity held this oversight hearing to examine the Veterans Readiness and Employment (VR&E) program, which helps service-disabled veterans obtain training and employment. Begins at 0:29:02
Transcript
Highlights

Title

Oversight of Fraud, Wait Times, and Staffing in VA's VR&E Program

Purpose

The House Veterans' Affairs Subcommittee on Economic Opportunity held this oversight hearing to examine the Veterans Readiness and Employment (VR&E) program, which helps service-disabled veterans obtain training and employment. Chairman Van Orden cited findings from staff site visits (Detroit, Buffalo, Baltimore, San Diego) showing long wait times, ballooning counselor caseloads, and cases of veterans receiving hundreds of thousands of dollars in benefits over many years, while Ranking Member Bergman focused on counselor staffing shortfalls as the core fix. The sole witness, Margarita Devlin of the Veterans Benefits Administration, testified on workload growth, extension policy, and modernization efforts. Begins at0:29:02

Who spoke

Chairman Derrick Van Orden (R-WI)0:29:02: Opened by describing findings of fraud, waste and abuse from site visits, including a veteran in Boston who spent over $350,000 in 18 months0:30:56 and one in Los Angeles who spent $895,000 in six years0:30:56; said 99%+ of extension requests past the 48-month limit are approved, with only 59 denials since FY20240:31:44; noted 45% of participants who complete the program re-enter it0:32:40; pressed Devlin on accountability and BAH/travel abuses later in the hearing1:04:461:06:52.

Ranking Member Jen Kiggans... (Rep. Papis)0:34:49: Delivered opening remarks citing counselor caseloads as high as 204-to-1 in some areas versus VA's 125-to-1 target0:35:44, and average wait times of 33 days in Boston, 68 in Phoenix, 77 in Atlanta, and 159 in San Diego0:36:02; argued the fix is more staffing rather than time limits0:37:43; later questioned Devlin on why VR&E's executive director, Mr. Pamperin, was absent from the hearing0:44:10 and on San Diego's improvement tools1:09:13.

Margarita Devlin, Acting Principal Deputy Under Secretary for Benefits, VBA0:39:08: Testified that caseloads grew sharply due to the PACT Act, with actual ratios near 175-to-1 versus an authorized 140-to-10:40:02; said VBA cut average pending-application days in one office from over 200 to 390:41:54; reported over 14,000 positive outcomes and 7,000 employment outcomes as of June, 15% above goal0:42:23; said VA is short 387 counselors beyond the president's 2026 budget's added 4030:57:47; described Phoenix-area wait times falling to about 41 days1:00:38.

Rep. Bost (referred to as "Mr. B")0:48:49: Asked Devlin to clarify that the 48-month eligibility window is measured in academic, not calendar, months0:49:18, and explored how veterans with decades-old case histories accrue eligibility through breaks and re-entry0:50:02; asked about overlap with GI Bill-approved programs and full tuition coverage under VR&E0:52:14.

Rep. Morgan McGarvey (D-KY)0:54:07: Discussed his bipartisan "FAST Vets Act" aimed at limiting unnecessary plan redevelopment workload0:54:36; got Devlin's commitment to issue updated guidance and share redevelopment-rate data with the committee if the bill passes0:57:18; noted VA is short 387 counselors needed to meet the 125-to-1 ratio0:57:47.

Rep. Cisco (Arizona)0:59:01: Cited his bill, HR 3579, the Veterans Readiness and Employment Program Integrity Act, on tracking success metrics and publishing wait times0:59:27; asked about the roughly 114-day wait at the Phoenix VA versus Tucson1:00:02 and about the cost/meaning of the 45% reenrollment rate1:02:31.

Chairman Van Orden (second round)1:03:47: Asked Devlin directly whether anyone at VA has been held accountable for the extended-enrollment cases1:05:43; raised concerns about BAH being paid at a temporary travel location rather than home duty station, calling it "fraudulent"1:07:19; asked her what she would do with "a magic wand" to fix the program1:08:17.

Ranking Member Papis (second round)1:08:47: Asked Devlin to detail the San Diego "help team" of 11 staff and reassignment of virtual counseling that reduced wait times1:09:13; asked why staffing failed to keep pace with PACT Act enrollment growth1:10:34; asked about counselor retention efforts1:11:46.

Chairman Van Orden (closing round)1:12:17: Asked Devlin to explain the difference between a vocational rehabilitation counselor and a vocational rehabilitation specialist1:12:17, questioned whether a master's degree requirement is necessary given the 45% reenrollment rate1:13:38, and proposed separating adaptive-housing funding from VR&E funding lines1:16:27.

Key moments

Van Orden cited a Los Angeles veteran who spent $895,000 over six years still in the rehab-to-employment phase, and a Boston veteran who spent over $350,000 in 18 months0:30:56.

Extensions past the 48-month statutory limit were approved essentially automatically: only 59 denials since fiscal year 2024, which Van Orden called "statistically impossible" for a functioning review process0:31:44.

Papis's opening cited counselor caseloads reaching 204-to-1 in some regions against VA's 125-to-1 target, and wait times up to 159 days in San Diego0:35:440:36:02.

Devlin testified VA is short 387 vocational rehabilitation counselors beyond the 403 additional positions funded in the president's FY2026 budget request0:57:47.

Papis pressed Devlin on why VR&E's own executive director, Mr. Pamperin, was not present at the hearing; Devlin explained field operations and regional office directors report to her, not to Pamperin0:44:400:45:08.

Devlin reported San Diego wait times improved after deploying an 11-person "help team" and reassigning cases to virtual counselors nationally, cutting average pending-application days from over 200 to 39 in one office0:41:541:09:42.

Van Orden challenged Devlin on whether anyone had been held accountable for cases like a veteran receiving $895,000 over 72 months of training, calling it "absolute buffoonery"; Devlin said individual cases must be reviewed and cited increased oversight controls rather than naming accountability actions1:05:431:06:12.

Van Orden raised a specific alleged loophole: a veteran whose home of record is in Michigan flying to San Diego for a single class receives the higher San Diego BAH rate, which he called "fraudulent" and said needs legislative fixing1:07:191:07:49.

Devlin said only VR&E-approved training programs that are also GI Bill-approved may be authorized, with an exception requiring VR service director review for special schools0:52:42.

Van Orden questioned whether the master's-degree requirement for vocational rehabilitation counselors is justified given the program's 45% reenrollment rate, suggesting it may be limiting VA's ability to hire the additional ~400 counselors needed1:13:381:14:21.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Economic Opportunity
Chamber / CongressHouse · 119th Congress
Date2025-07-16
TypeHearing
Witnesses
Ms. Margarita Devlin — Acting Principal Deputy Assistant Secretary For Benefits, Veterans Benefits Administration, U.S. Department of Veterans' Affairs
Videoyoutube
Transcript114 caption blocks · 9,319 words · 1:19:16 runtime
EventCongress.gov 118499