Reevaluating the Rating Schedule: Examining VA’s Efforts to Modernize Disability Benefits

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs · January 14, 2026 · 119th Congress
The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this hearing to examine the Department of Veterans Affairs' progress modernizing the VA Schedule for Rating Disabilities (VASRD), the framework — largely unchanged since 1945 — used to determine veterans' disability ratings and compensation. Begins at ▶ 0:22:25
Transcript
Highlights

Title

VA's decades-long effort to modernize its disability rating schedule

Purpose

The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this hearing to examine the Department of Veterans Affairs' progress modernizing the VA Schedule for Rating Disabilities (VASRD), the framework — largely unchanged since 1945 — used to determine veterans' disability ratings and compensation. Lawmakers questioned VA officials, GAO, and outside experts on why the modernization effort, begun in 2009 with a 2016 target, remains incomplete, and on gaps in the earnings-loss data underlying the rating system. Begins at▶ 0:22:25

Who spoke

• Chairman Latrell▶ 0:22:25: Opened the hearing describing the VASRD's 1945 origins and the 2009 modernization plan, noting only 11 of 15 body systems have been updated and the timeline has slipped to 2026▶ 0:23:45▶ 0:24:12; pressed Tan on why the AI/ML has not been used to speed the process▶ 0:40:52▶ 0:41:40.

• Ranking Member McGarvey▶ 0:27:04: Said the schedule is outdated and needs modernizing without harming veterans▶ 0:28:05; pushed Tan on lack of pre-rulemaking VSO input▶ 0:43:03▶ 0:44:05 and on releasing earnings-loss study data▶ 0:45:07▶ 0:45:50; objected to any narrative that veterans "game the system"▶ 0:29:14.

• Ms. Nina Tan, VBA Executive Director, Compensation Service▶ 0:32:37: Testified VA expects to finish the first holistic update of all 15 body systems by the end of FY2026▶ 0:34:57▶ 0:37:13; said VA does not currently gather veteran/VSO input before drafting rules due to APA ex parte restrictions▶ 0:43:47▶ 0:44:05; said the earnings-loss study's contractor support ended at the close of FY25 and would not commit to releasing the underlying data▶ 0:45:22▶ 0:45:51.

• Dr. Ulia Sokol, VBA Medical Officer▶ 0:58:19: Said the mental-health rating criteria rule, based on the DSM-5's multi-dimensional functional-impairment approach, is in final stages of publication▶ 0:58:34▶ 0:59:35; confirmed the DSM-5 itself dates to 2013▶ 1:01:39▶ 1:03:04.

• Mr. Bergman (General)▶ 0:47:42: Said using 1945 as a baseline "scares the hell out of me" and pressed for a sense of urgency▶ 0:48:57▶ 0:52:01; said he did not see evidence of urgency from VA▶ 0:52:14.

• Mr. Self▶ 0:54:40: Questioned customization in disability evaluations▶ 0:55:23 and the distinction between impairment and inability to earn▶ 0:56:34; later pressed GAO's Curda on how little progress VA has made against its high-risk criteria▶ 1:55:26▶ 1:56:09 and asked Armor to explain Social Security's individualized model versus VA's average-justice approach▶ 1:57:03▶ 1:58:13.

• Mr. Chairman (Dr. Morrison)▶ 1:39:32: Noted bipartisan agreement on the need for modernization and asked Dr. Hunter how VA should account for the growing population of women veterans▶ 1:40:19▶ 1:40:59.

• Dr. Dexter▶ 1:47:31: Drew on her medical background to raise concerns about lowering disability ratings based on treatment status, using sleep apnea as an example▶ 1:51:48; asked Armor and Hunter about incorporating up-to-date toxic-exposure and quality-of-life science▶ 1:49:17▶ 1:52:15.

• Ms. Elizabeth Curda, GAO▶ 1:07:54: Said VA's rating schedule has never been updated using data-driven earnings-loss information and has met only 3 of 5 GAO high-risk criteria▶ 1:11:17▶ 1:11:44; said GAO has had no substantive progress update from VA since June 2024/August 2024▶ 1:25:27; described 18 internal VA offices and 16 levels of review plus 11 external parties in the clearance process▶ 1:27:37▶ 1:27:55.

• Mr. Philip Armor, RAND▶ 1:12:29: Said the most recent VA-commissioned earnings-loss study is from 2008 and none reflect modern disability research▶ 1:12:53▶ 1:14:49; distinguished VA's "average justice" model from Social Security's individualized approach▶ 1:16:17▶ 1:58:54.

• Dr. Kyleanne Hunter, IAVA▶ 1:17:15: Said only one veteran service organization was invited to testify and modernization should be done "with us not merely on our behalf"▶ 1:17:35; noted a CBO earnings-loss study excluded women veterans despite them being the fastest-growing veteran population▶ 1:19:13; said over 65% of IAVA members with a disability rating call the payments essential to their financial well-being▶ 1:22:23.

Key moments

• Tan confirmed VA expects to complete updates to all 15 VASRD body systems — the first holistic revision since 1945 — by summer 2026▶ 1:04:04▶ 1:04:10.

• McGarvey pressed Tan on why AI/ML has not been incorporated into the rating-schedule review; Tan acknowledged it is not currently used but called it a future opportunity▶ 0:40:52▶ 0:41:01.

• McGarvey said VA's use of "limited ex parte" rules means the department is "not talking to veterans" before drafting rules, and pressed Tan to commit to more veteran input; Tan would only say she would "identify ways"▶ 0:44:05▶ 0:45:07.

• Curda testified GAO has received no substantive update on VA's action plan since August 2024 and no progress update since June 2025▶ 1:25:27.

• Sokol confirmed the pending mental-health rating rule is built on the DSM-5's 2013 multi-dimensional framework; Chairman Latrell noted that data is now over a decade old and asked whether it will already be outdated at implementation▶ 1:01:39▶ 1:03:28.

• Curda described 18 internal VA offices and 16 levels of review, plus 11 external reviewing parties, in VA's rulemaking clearance process, calling the complexity "mind-numbing"▶ 1:27:37▶ 1:27:55.

• Self noted VA has met only 3 of 5 GAO high-risk criteria (leadership commitment, action plan, monitoring) but not capacity or demonstrated progress, saying VA is "still fixing to do something"▶ 1:55:57▶ 1:56:09.

• Armor said the last VA-commissioned earnings-loss study is from 2008 and no updated study has incorporated modern disability research on how benefits directly affect earnings▶ 1:12:53▶ 1:14:49.

• Hunter said a CBO disability compensation study excluded women veterans even though women are the veteran population's fastest-growing segment▶ 1:19:13; she also said VSO surveys found over 65% of disabled members call their payments financially essential▶ 1:22:23.

• Armor and Curda agreed data silos — particularly lack of VBA/VHA and Social Security data linkage — are a major obstacle to faster, modern earnings-loss research, though Curda noted VA has established some data-sharing agreements with SSA and IRS▶ 1:29:05▶ 1:29:41.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs
Chamber / CongressHouse · 119th Congress
DateJanuary 14, 2026
TypeHearing
Witnesses
Dr. Kyleanne Hunter — Chief Executive Officer, Iraq and Afghanistan Veterans of America
Ms. Nina Tann — Executive Director, Veterans Benefits Administration, U.S. Department of Veterans Affair
Dr. Ulia Sokol — Medical Officer, Veterans Benefits Administration, U.S. Department of Veterans Affairs
Ms. Elizabeth Curda — Director, Government Accountability Office
Mr. Philip Armour — Senior Economist, RAND
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Transcript332 caption blocks · 17,185 words · 2:06:42 runtime
EventCongress.gov 118820