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

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Economic Opportunity · July 16, 2025 · 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 at▶ 0:29:02

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 months▶ 0:30:56 and one in Los Angeles who spent $895,000 in six years▶ 0:30:56; said 99%+ of extension requests past the 48-month limit are approved, with only 59 denials since FY2024▶ 0:31:44; noted 45% of participants who complete the program re-enter it▶ 0:32:40; pressed Devlin on accountability and BAH/travel abuses later in the hearing▶ 1:04:46▶ 1:06:52.

• 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 target▶ 0:35:44, and average wait times of 33 days in Boston, 68 in Phoenix, 77 in Atlanta, and 159 in San Diego▶ 0:36:02; argued the fix is more staffing rather than time limits▶ 0:37:43; later questioned Devlin on why VR&E's executive director, Mr. Pamperin, was absent from the hearing▶ 0:44:10 and on San Diego's improvement tools▶ 1:09:13.

• Margarita Devlin, Acting Principal Deputy Under Secretary for Benefits, VBA▶ 0:39:08: Testified that caseloads grew sharply due to the PACT Act, with actual ratios near 175-to-1 versus an authorized 140-to-1▶ 0:40:02; said VBA cut average pending-application days in one office from over 200 to 39▶ 0:41:54; reported over 14,000 positive outcomes and 7,000 employment outcomes as of June, 15% above goal▶ 0:42:23; said VA is short 387 counselors beyond the president's 2026 budget's added 403▶ 0:57:47; described Phoenix-area wait times falling to about 41 days▶ 1:00:38.

• 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, months▶ 0:49:18, and explored how veterans with decades-old case histories accrue eligibility through breaks and re-entry▶ 0:50:02; asked about overlap with GI Bill-approved programs and full tuition coverage under VR&E▶ 0:52:14.

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

• 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 times▶ 0:59:27; asked about the roughly 114-day wait at the Phoenix VA versus Tucson▶ 1:00:02 and about the cost/meaning of the 45% reenrollment rate▶ 1:02:31.

• Chairman Van Orden (second round)▶ 1:03:47: Asked Devlin directly whether anyone at VA has been held accountable for the extended-enrollment cases▶ 1:05:43; 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 program▶ 1:08:17.

• 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 times▶ 1:09:13; asked why staffing failed to keep pace with PACT Act enrollment growth▶ 1:10:34; asked about counselor retention efforts▶ 1:11:46.

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

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 months▶ 0:30:56.

• 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 process▶ 0:31:44.

• 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 Diego▶ 0:35:44▶ 0:36:02.

• Devlin testified VA is short 387 vocational rehabilitation counselors beyond the 403 additional positions funded in the president's FY2026 budget request▶ 0:57:47.

• 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 Pamperin▶ 0:44:40▶ 0:45:08.

• 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 office▶ 0:41:54▶ 1:09:42.

• 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 actions▶ 1:05:43▶ 1:06:12.

• 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 fixing▶ 1:07:19▶ 1:07:49.

• 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 schools▶ 0:52:42.

• 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 needed▶ 1:13:38▶ 1:14:21.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Economic Opportunity
Chamber / CongressHouse · 119th Congress
DateJuly 16, 2025
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