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R48608 — Department of Veterans Affairs FY2025 Appropriations

Reports · published 2025-09-08 · v1 · Active · crsreports.congress.gov ↗

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Authors
Madeline E. Moreno · Sidath Viranga Panangala · Jared S. Sussman
Report id
R48608
Summary

The Department of Veterans Affairs (VA) administers numerous programs that provide benefits and services to eligible veterans and their families. These benefits include medical care, disability compensation, Dependency and Indemnity Compensation (DIC), pensions, education, vocational rehabilitation and employment services, assistance to homeless veterans, home loan guarantees, and administration of life insurance, as well as traumatic injury protection insurance for servicemembers and benefits that cover burial expenses. On March 11, 2024, President Biden submitted his budget proposal for FY2025. The Biden Administration requested $339.51 billion for VA. The request included $129.10 billion in discretionary appropriations and $210.41 billion in mandatory appropriations. The budget also requested $376.47 billion in advance appropriations for FY2026, including $22.80 billion for the Cost of War Toxic Exposures Fund (TEF). TEF funding is categorized as mandatory funding. In its budget submission to Congress, the Administration indicated that the lower discretionary budget request for FY2025 ($129.10 billion) compared with the FY2024 enacted amount ($134.77 billion) was based on the nondefense (or “nonsecurity”) discretionary limits (or “caps”) set by the Fiscal Responsibility Act of 2023 (P.L. 118-5). On June 5, 2024, the House passed its version of the Military Construction, Veterans Affairs, and Related Agencies Appropriations (MILCON-VA) bill for FY2025 (H.R. 8580; H.Rept. 118-528). The House-passed bill would have provided $339.64 billion for VA for FY2025, which included $129.22 billion in discretionary appropriations and $210.41 billion in mandatory appropriations. The House-passed bill (H.R. 8580, 118th Congress) would have provided $376.47 billion in advance appropriations for FY2026, including $22.80 billion for TEF. In July 2024, the then-VA Secretary notified Congress of a funding shortfall of $2.88 billion for the Veterans Benefits Administration (VBA) for FY2024 for mandatory benefits payments, and a $12.0 billion shortfall for TEF to cover medical care in FY2025. The Secretary attributed this shortfall to the increased health care services and disability compensation and survivor benefits payments resulting from the Honoring Our PACT Act of 2022 (P.L. 117-168). On September 20, 2024, the Veterans Benefits Continuity and Accountability Supplemental Appropriations Act, 2024 (P.L. 118-82), was enacted into law. The act provided $2.286 billion to VBA’s Compensation and Pensions account and $597.0 million to the Readjustment Benefits account, with both amounts to remain available until expended. Subsequently, after the enactment of P.L. 118-82, VA informed Congress that it ultimately did not need the supplemental appropriation to cover mandatory benefit payments for FY2024 and carried over $5.1 billion (including the $2.88 billion supplemental) from FY2024 to FY2025. On July 11, 2024, the Senate Appropriations Committee held a full committee markup of its version of the MILCON-VA appropriations bill for FY2025 and reported the bill to the Senate (S. 4677; S.Rept. 118-191). The Senate committee-reported bill recommended $339.59 billion for VA for FY2025, which included $129.18 billion in discretionary appropriations and $210.41 billion in mandatory appropriations. On September 26, 2024, the Continuing Appropriations and Extensions Act, 2025 (P.L. 118-83), was enacted into law, which funded some VA accounts at FY2024 levels. This continuing resolution was extended through March 14, 2025 by the Further Continuing Appropriations Act, 2025 (Division A of P.L. 118-158). On March 15, 2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4), was enacted into law. Title I and Title XI of Division A of P.L. 119-4 provide certain anomalies to some VA accounts for FY2025 and continue to fund certain other accounts at levels provided in the FY2024 MILCON-VA Appropriations Act (Division A of P.L. 118-42). Comparative funding levels for FY2024 (P.L. 118-42; P.L. 118-82) and FY2025 (P.L. 119-4) are listed in the table below (component amounts may not sum to totals due to rounding and adjustments due to rescissions). FY2024-FY2025 VBA, VHA, NCA, and Veterans Affairs (VA)-Departmental Administration Appropriations FY2024 Enacted (P.L. 118-42 and P.L. 118-82)FY2025 RequestHouse-Passed (H.R. 8580; H.Rept. 118-528)Senate Committee-Reported (S. 4677; S.Rept. 118-191)Full-Year Continuing Appropriations Act, 2025 (Division A of P.L. 119-4)Increase (+)/ Decrease (-) and % Change FY2025 Enacted vs. FY2024 Enacted Veterans Benefits Administration (VBA, including General Operating Expenses) $179.60 billion $214.77 billion $214.77 billion $214.77 billion $236.90 billion (+) $57.30 billion (+31.90%) Veteran’s Health Administration (VHA) $120.00 billion $113.45 billion $113.51 billion $113.46 billion $113.67 billion (-) $6.33 billion (-5.28%) National Cemetery Administration (NCA) $480 million $495 million $495 million $495 million $480 million N/A Departmental Administration $10.10 billion $10.80 billion $10.80 billion $10.86 billion $10.67 billion (+) $0.57 billion (+5.64%) Cost of War Toxic Exposure Fund (TEF) — — — — $6.00 billion N/A Total VA $310.19 billion $339.51billion $339.64 billion $339.59 billion $367.73 billion (+) $57.54 billion (+18.55%) Total Mandatory $175.41 billion $210.41 billion $210.41billion $210.41 billion $238.68 billion (+) $63.27 billion (+36.07%) Total Discretionary $134.77 billion $129.10 billion $129.22 billion $129.18 billion $129.04 billion (-) $5.73 billion (-4.25%) Sources: U.S. Congress, House Appropriations Committee, Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, 2025, report to accompany H.R. 8580, 118th Cong., 2nd sess., May 28, 2024, H.Rept. 118-528, pp. 109-116; U.S. Congress, Senate Appropriations Committee, Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, 2025, report to accompany S. 4677, 118th Cong., 2nd sess., July 11, 2024, S.Rept. 118-191, pp. 106-111; Veterans Benefits Continuity and Accountability Supplemental Appropriations Act, 2024 (P.L. 118-82); Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4); and U.S. Congress, House Appropriations Committee, Military Construction, Veterans Affairs, And Related Agencies Appropriations Bill, 2026, report to accompany H.R. 3944, 119th Cong., 1st sess., June 10, 2025, H.Rept. 119-161, pp. 93-100.

Bills cited (11)

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