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 · 2026-01-14 · 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 at0:22:25

Who spoke

Chairman Latrell0:22:25: 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 20260:23:450:24:12; pressed Tan on why the AI/ML has not been used to speed the process0:40:520:41:40.

Ranking Member McGarvey0:27:04: Said the schedule is outdated and needs modernizing without harming veterans0:28:05; pushed Tan on lack of pre-rulemaking VSO input0:43:030:44:05 and on releasing earnings-loss study data0:45:070:45:50; objected to any narrative that veterans "game the system"0:29:14.

Ms. Nina Tan, VBA Executive Director, Compensation Service0:32:37: Testified VA expects to finish the first holistic update of all 15 body systems by the end of FY20260:34:570:37:13; said VA does not currently gather veteran/VSO input before drafting rules due to APA ex parte restrictions0:43:470:44:05; said the earnings-loss study's contractor support ended at the close of FY25 and would not commit to releasing the underlying data0:45:220:45:51.

Dr. Ulia Sokol, VBA Medical Officer0:58:19: Said the mental-health rating criteria rule, based on the DSM-5's multi-dimensional functional-impairment approach, is in final stages of publication0:58:340:59:35; confirmed the DSM-5 itself dates to 20131:01:391:03:04.

Mr. Bergman (General)0:47:42: Said using 1945 as a baseline "scares the hell out of me" and pressed for a sense of urgency0:48:570:52:01; said he did not see evidence of urgency from VA0:52:14.

Mr. Self0:54:40: Questioned customization in disability evaluations0:55:23 and the distinction between impairment and inability to earn0:56:34; later pressed GAO's Curda on how little progress VA has made against its high-risk criteria1:55:261:56:09 and asked Armor to explain Social Security's individualized model versus VA's average-justice approach1:57:031:58:13.

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 veterans1:40:191:40:59.

Dr. Dexter1:47:31: Drew on her medical background to raise concerns about lowering disability ratings based on treatment status, using sleep apnea as an example1:51:48; asked Armor and Hunter about incorporating up-to-date toxic-exposure and quality-of-life science1:49:171:52:15.

Ms. Elizabeth Curda, GAO1:07:54: 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 criteria1:11:171:11:44; said GAO has had no substantive progress update from VA since June 2024/August 20241:25:27; described 18 internal VA offices and 16 levels of review plus 11 external parties in the clearance process1:27:371:27:55.

Mr. Philip Armor, RAND1:12:29: Said the most recent VA-commissioned earnings-loss study is from 2008 and none reflect modern disability research1:12:531:14:49; distinguished VA's "average justice" model from Social Security's individualized approach1:16:171:58:54.

Dr. Kyleanne Hunter, IAVA1:17:15: 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 population1:19:13; said over 65% of IAVA members with a disability rating call the payments essential to their financial well-being1:22:23.

Key moments

Tan confirmed VA expects to complete updates to all 15 VASRD body systems — the first holistic revision since 1945 — by summer 20261:04:041:04:10.

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 opportunity0:40:520:41:01.

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"0:44:050:45:07.

Curda testified GAO has received no substantive update on VA's action plan since August 2024 and no progress update since June 20251:25:27.

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 implementation1:01:391:03:28.

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"1:27:371:27:55.

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"1:55:571:56:09.

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 earnings1:12:531:14:49.

Hunter said a CBO disability compensation study excluded women veterans even though women are the veteran population's fastest-growing segment1:19:13; she also said VSO surveys found over 65% of disabled members call their payments financially essential1:22:23.

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 IRS1:29:051:29:41.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs
Chamber / CongressHouse · 119th Congress
Date2026-01-14
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
Videoyoutube
Transcript332 caption blocks · 17,185 words · 2:06:42 runtime
EventCongress.gov 118820