Digital G.I. Bill Undelivered: Contracting Challenges and the Need for Acquisition Reform

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Technology Modernization · February 4, 2026 · 119th Congress
The House Veterans' Affairs Subcommittees on Technology Modernization and Economic Opportunity held this joint hearing to examine why the Digital GI Bill (DGIB) program, awarded in 2021, has more than doubled in cost and contributed to fall 2025 payment delays for Chapter 35 beneficiaries. Begins at ▶ 0:32:58
Transcript
Highlights

Title

Digital GI Bill contracting failures and cost overruns examined

Purpose

The House Veterans' Affairs Subcommittees on Technology Modernization and Economic Opportunity held this joint hearing to examine why the Digital GI Bill (DGIB) program, awarded in 2021, has more than doubled in cost and contributed to fall 2025 payment delays for Chapter 35 beneficiaries. Witnesses from the VA, MITRE, Accenture Federal Services, and Veterans Education Success testified on contract management, cost estimating, and the decisions that led to missed communications with veterans during the payment backlog. Begins at▶ 0:32:58

Who spoke

• Chairman Barrett (R), Subcommittee on Technology Modernization▶ 0:32:58: Opened by calling the DGIB rollout "mismanagement, plain and simple," noting the contract was awarded in 2021 and its cost has more than doubled into the billions▶ 0:33:52▶ 0:34:22; later pressed witnesses on creating an independent cost-estimation office▶ 0:55:21 and on the VA's org chart complexity▶ 1:34:36.

• Ranking Member Bazinski (D), Technology Modernization▶ 0:36:39: Said mispayments stemmed from policy decisions and poor contract management, not IT glitches▶ 0:37:02; entered a VA OIG report into the record▶ 0:37:48 and pressed on MITRE's contract ending and who will do future cost estimates▶ 1:03:02.

• Chairman Van Orton (R), Economic Opportunity▶ 0:40:56: Said the program ballooned from a multi-million to multi-billion dollar effort with VA having a "zero success rate" building its own IT infrastructure▶ 0:42:19; cited costs ballooning past $2 billion▶ 0:42:47.

• Ranking Member Pappas (D), Economic Opportunity▶ 0:44:30: Argued the fall Chapter 35 delays were not a contractor failure but a VA decision to manually reconcile beneficiary data that took up to three hours per file instead of an estimated five minutes▶ 0:45:18▶ 0:45:48; said VA's failure to communicate during the shutdown was a political decision since staff and the secretary remained active▶ 0:46:39▶ 1:14:00; later grilled Mr. Smith on the communication timeline▶ 1:10:23.

• Mr. Kenneth Smith, VBA Executive Director of Education Service▶ 0:50:04: Testified DGIB has processed 37% more claims since 2021 and automates 65% of claims with 97% accuracy▶ 0:52:57▶ 0:53:20; said the original budget was $453 million▶ 1:31:53 and that cost growth was "scope expansion," not overrun, tied to laws like the Isakson-Roe Act, Dole Act, and cases including Rudisill and Perkins v. Collins▶ 0:52:18▶ 1:02:16; acknowledged VA was "prohibited" from communicating during the shutdown under the Anti-Deficiency Act▶ 1:11:46.

• Mr. Raymond Tellez, VBA Office of Business Integration▶ 1:35:50: Said he has only "a small role" on DGIB and could not identify who excluded the Office of Acquisition, Logistics and Construction from original contract talks▶ 1:35:59.

• Mr. Jeffrey Neill, VA Technology Acquisition Center▶ 0:59:48: Said lessons-learned sharing across IT offices is informal▶ 1:00:04; admitted he did not know why the Strategic Acquisition Management Initiative (SAMI) was dissolved▶ 1:25:09 and that TAC did not participate in the original DGIB acquisition▶ 1:28:32.

• Mr. Robert Orifici, VA Office of Information Technology▶ 0:55:34: Defended keeping program management within the business line rather than a separate IT office▶ 0:55:34; said adequate staff supports DGIB IT infrastructure▶ 0:59:13.

• Rep. Amade▶ 1:05:16: Pressed Smith on whether VA's cost estimate followed GAO guidance and where actual costs fell in the estimated range▶ 1:06:47▶ 1:07:09; noted VA has not withheld contractor payments despite delays▶ 1:08:24.

• Rep. Kimberlyn King-Hinds (Northern Mariana Islands)▶ 1:16:04: Highlighted admissions in Smith's testimony that requirements were immature at award and scope grew without governance▶ 1:16:21; noted the cost increase of $479 million could have funded a hospital, police department, or community college in the CNMI▶ 1:18:40.

• Rep. Ramirez, Oversight and Investigations Subcommittee Ranking Member▶ 1:21:22: Criticized the hearing's framing for excluding GAO and VA OIG▶ 1:21:53; asked about staffing readiness amid VA workforce reductions (DRP, VERA, shutdown furloughs)▶ 1:23:18 and pressed on SAMI's dissolution▶ 1:24:24.

• Rep. McCormack▶ 1:26:36: Asked whether VA used the Acquisition Lifecycle Framework for the DGIB contract▶ 1:27:38; Neill confirmed TAC did not participate in the original acquisition▶ 1:28:32.

• Mr. Justin Parke, Accenture Federal Services▶ 1:41:39: Testified Accenture delivered Colmery on time/on budget before winning the DGIB contract in 2021▶ 1:42:06; said DGIB has processed over 16 million claims and delivered $43 billion to 2.3 million beneficiaries, with the Accenture contract ceiling at $1.08 billion▶ 1:43:48▶ 1:45:03; said BDN retirement, due September 2022, was delivered August 2025▶ 2:02:27.

• Mr. Troy Mueller, MITRE▶ 1:47:01: Said the DGIB life-cycle cost estimate (version 5.0, April 2025) totals $2.3 billion in FY21 dollars, rising to ~$2.6 billion with inflation▶ 1:48:40; recommended a dedicated enterprise-level cost-estimating office at VA▶ 1:49:35.

• Mr. William Hubbard, Veterans Education Success▶ 1:51:17: Said this pattern of payment failures dates back to the original Post-9/11 GI Bill rollout, the 2018 Forever GI Bill (180,000 delayed) and 2023 (280,000 delayed, requiring paper checks)▶ 1:52:38▶ 1:53:09; described a student whose car was repossessed and who faced eviction due to a three-month benefits gap▶ 1:53:33; confirmed VA has held zero DGIB stakeholder calls since December 2024▶ 1:57:25.

Key moments

• Van Orton said the contract's cost has "ballooned" to over $2 billion, arguing "imagine what we could do with the other $1.5 billion"▶ 0:42:47▶ 0:43:15.

• Pappas detailed that VA knew of Chapter 35 processing problems by early September 2025 (waiving enrollment verification Sept. 7, an authoritative-data memo Sept. 17, automation approval Sept. 23) but did not publicly acknowledge payment delays until November 14 — a 70-day gap▶ 1:10:53▶ 1:11:14.

• Smith said VA's original DGIB budget was $453 million▶ 1:31:53; MITRE's Mueller confirmed the current life-cycle cost estimate is $2.3–2.6 billion▶ 1:48:40.

• Barrett confronted Smith over a lack of a clear organizational "line and block chart," saying VA offices have "six bosses" and no single accountable line of authority▶ 1:34:48.

• King-Hinds cited the roughly $479 million cost increase, comparing it to what could fund a hospital, police department, and community college in the Northern Mariana Islands▶ 1:18:40.

• Ramirez pressed Neill on why SAMI, an office created to build acquisition cost-estimating capacity, was dissolved before its mission was complete; Neill said he did not know the rationale▶ 1:25:09▶ 1:25:29.

• Parke confirmed BDN retirement (Release 8) was due September 2022 but delivered August 2025, nearly three years late▶ 2:02:27.

• Hubbard testified VA's GI Bill hotline was "classified" as non-essential and shut down during the government shutdown, leaving students without a help channel▶ 1:54:19.

• Chairman Barrett proposed legislating a contingency fund so veterans get paid even when VA "screws this up again," citing a 5.6-day average claims-processing time against roughly $1.2 billion in monthly education benefit spending▶ 2:08:54▶ 2:09:46.

• Pappas noted zero VA political appointees have taken accountability for the fall 2025 payment failures despite eight DGIB releases since 2019▶ 0:47:33▶ 0:48:03.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Technology Modernization
Chamber / CongressHouse · 119th Congress
DateFebruary 4, 2026
TypeHearing
Witnesses
Mr. Jeffrey Neill — Associate Executive Director, Office of Procurement, Acquisition and Logistics, Technology Acquisition Center, Department of Veterans Affairs
Mr. Troy Mueller — Managing Director, Integrated Benefits Operations & Technology Division, MITRE
Mr. William Hubbard — Vice President for Veterans & Military Policy, Veterans Education Success
Mr. Kenneth Smith — Executive Director at Education Service, Veterans Benefits Administration, Department of Veterans Affairs
Mr. Robert Orifici — Executive Director of Benefits and Memorial Services, Office of Information Technology, Department of Veterans Affairs
Mr. Raymond Tellez — Executive Director, Veterans Benefits Administration, Department of Veterans Affairs
Mr. Justin Parke — Managing Director, Digital GI Bill Program Manager, Accenture Federal Services
Videoyoutube
Transcript319 caption blocks · 15,635 words · 2:12:36 runtime
EventCongress.gov 118920