What Happened to Department of Veterans Affairs (VA)?

The Department of Veterans Affairs (VA) has been a focal point of federal efforts to enhance veteran care and benefits, experiencing a period of intense activity and reform from 2024 through early 2026. A major catalyst for change has been the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics (PACT) Act of 2022, which significantly expanded healthcare and benefits for veterans exposed to toxic substances. By January 2025, the VA had approved over 1.4 million PACT Act claims, awarding more than $8.9 billion in backdated benefits, and processed over 1 million PACT Act-related claims in FY2025 alone. The VA also eliminated the phased-in approach for PACT Act health care eligibility, making three new cohorts of veterans eligible as of March 5, 2024.

Leadership and Strategic Direction: In February 2025, Doug Collins was confirmed as the 12th Secretary of Veterans Affairs, succeeding Denis McDonough. Secretary Collins immediately outlined priorities including tackling the claims backlog, advancing Electronic Health Record Modernization (EHRM), and enhancing suicide prevention efforts. His tenure has also seen workforce reductions, with approximately 2,500 VA workers laid off and a hiring freeze in early 2025, raising concerns about timely care delivery, though the VA stated critical workers would not be affected.

Claims Processing Achievements: The VA achieved record-breaking numbers in claims processing. In fiscal year 2024, the VA processed over 2.5 million disability compensation and pension claims, an all-time record. This momentum continued into FY2025, with the VA processing over 2 million claims faster than ever before by June 2025 and on track to complete 2.5 million by year-end. By February 2026, the claims backlog fell below 100,000 for the first time since May 2020. This acceleration is attributed to improved training, new programs like a scheduling assistant, and upgrades to the Veterans Benefits Management System.

Electronic Health Record Modernization (EHRM): The ambitious EHRM program, aimed at replacing the VA's legacy system with an Oracle Health-powered one, faced significant challenges. After a pause in deployments in April 2023 due due to user concerns, the VA announced in December 2024 that it would resume planned deployments in mid-2026 to four Michigan facilities. In March 2025, nine additional facilities were named for 2026 deployment, bringing the total to 13 sites for that year, with full deployment across all VA medical facilities projected as early as 2031. Despite these plans, 2024 user surveys continued to reflect general dissatisfaction with the new system, and the Government Accountability Office (GAO) noted in February 2025 that much more remained to be done, including addressing 1,800 complex configuration change requests.

Healthcare Access and Community Care: The VA has expanded telehealth services, particularly benefiting veterans in rural areas or with mobility issues. Community care remains a significant component, accounting for about 40% of all VA care. With many existing community care contracts expiring in 2026, the VA initiated new requests for proposals in December 2025 to improve choice, quality, and oversight for veterans over the next decade. However, proposed legislation like the Veterans' ACCESS Act of 2025, which would allow unlimited private-sector mental health appointments, has raised concerns about potential privatization undermining VA healthcare and incurring staggering costs.

Mental Health and Vulnerable Veterans: Suicide prevention remains a top priority, with the VA announcing a $112 million grant opportunity in March 2026 to strengthen community-based efforts. Concerns persist regarding workforce shortages impacting mental health care, with calls for legislation like the Honor Our Promise to Veterans Act of 2025 to improve pay and benefits for VA psychologists. In a significant development, the VA and Department of Justice signed a memorandum of understanding in March 2026 to improve care for vulnerable veterans unable to make their own healthcare decisions, including those who are homeless or at risk of homelessness. This agreement allows VA attorneys to act as special assistant U.S. attorneys to initiate guardianship or conservatorship proceedings, ensuring continuity of care.

Budget and Outlook: The VA's budget request for fiscal year 2026 totals $441.3 billion, a 10% increase over FY2025, reflecting continued investment in healthcare, benefits, and the Toxic Exposures Fund. The department is also planning a major healthcare reorganization starting in 2026, aiming to curb fragmentation and improve efficiency, with details to be announced in early 2026 and implementation over 18-24 months. As of March 2026, the VA continues to focus on modernizing its services and expanding access, aiming to deliver on its mission to veterans, their families, caregivers, and survivors.