⚡NIMITZ NEWS FLASH⚡

A Review of the President’s Fiscal Year 2027 Budget Request for the Department of Veterans Affairs

Senate Committee on Appropriations, Subcommittee on Military Construction, Veterans Affairs, and Related Agencies Hearing

April 30, 2026 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked):

• The Honorable Doug Collins: Secretary, Department of Veterans Affairs

• The Honorable Richard F. Topping: Assistant Secretary for Management and Chief Financial Officer, Department of Veterans Affairs

TOP-LINES TO SHOW YOU ARE IN THE KNOW

1. The VA is requesting a $488 billion budget with major increases for community care and IT modernization, but lawmakers are questioning whether staffing levels will keep pace.

2. The electronic health record (EHR) rollout showed real progress in Michigan, but there is still concern about expanding it nationwide without repeating past problems.

3. Suicide prevention and mental health remain a major focus, especially efforts to reach veterans who are not currently connected to the VA system.

4. There is ongoing tension over increasing reliance on private sector care while VA facilities face staffing shortages and infrastructure needs.

5. Lawmakers are pressing the VA for more transparency on clinic changes and facility issues, while the department says it’s focused on accountability and fixing long-standing challenges.

PARTY LINE PERSPECTIVES

OPENING STATEMENT FROM THE SUBCOMMITTEE

• Chairman John Boozman outlined the VA’s FY 2027 budget request, which totaled $488.2 billion and reflected a 7.7% increase over FY 2026. He pointed to major funding categories, including discretionary and mandatory spending, and spotlighted continued investments in health care access, systems modernization, and the electronic health record (EHR) rollout. He noted improvements in recent deployment efforts and requested updates on modernization, administrative restructuring under the RISE proposal, and key priorities such as mental health, homelessness, and rural care.

• Ranking Member Jon Ossoff summarized the $488.2 billion budget request and its increases across health care, benefits, and infrastructure. He acknowledged the importance of investments such as EHR modernization and construction, but raised concerns about proposed reductions in clinical staffing levels, including physicians and nurses. He also questioned the significant increase in funding for outsourced community care compared to relatively modest growth in direct VA care, citing potential imbalances. He further mentioned concerns about unfunded programs and requested greater transparency regarding the RISE reorganization and overall resource allocation.

SUMMARY OF KEY POINTS

• Secretary Doug Collins testified that the department had shifted its focus to prioritizing veterans above organizational structure, describing improvements made since he took office. He described operational progress, including increased safety ratings, reduced benefits backlog, expanded access hours, and enhanced services for women veterans, while acknowledging ongoing challenges such as suicide prevention. He defended staffing adjustments by citing mismatches between workforce growth and patient demand, and stressed efforts to better align resources. He also pointed to the successful rollout of the EHR system in Michigan and broader improvements in care delivery, concluding that the VA was providing more care and benefits to more veterans than ever before.

• Full Committee Chair Susan Collins asked when previously identified infrastructure projects in Maine, including those at the Togus VA Medical Center, would be reinstated, given the gap between identified needs and current funding levels. Sec. Collins replied that the VA was reevaluating construction priorities across the system and expected Maine to be included as part of a broader reprioritization in future budget planning.

• Chair Collins raised concerns about staffing shortages at a new residential treatment facility in Maine and asked what the VA was doing to address workforce challenges, including physician pay caps under the Elizabeth Dole Act. Sec. Collins explained that while the pay cap waiver program was helpful, it was limited in scope and created inequities, and he expressed interest in working with Congress on broader reforms to better address recruitment and retention challenges, particularly in rural areas.

• Appreciating the pivot to rural areas, Chair Collins outlined limitations in the highly rural transportation grant program and urged support for expanding eligibility criteria. The Secretary agreed with the concern, acknowledged transportation challenges in rural areas, and expressed willingness to work with Congress to improve the program. He also mentioned additional pressures from declining volunteer driver availability.

• Ranking Member Ossoff asked how the VA planned to use more than $10 billion requested for construction and maintenance. Sec. Collins explained that the funding would support the modernization of facilities, expansion of services such as robotics and residential treatment, and major projects in locations including Indianapolis, New Hampshire, and San Antonio, while also addressing outdated infrastructure.

• The Ranking Member questioned reports of potential clinic closures and asked for clarification and compliance with legal requirements to provide impact analyses to Congress. The Secretary confirmed that some contract clinics were being closed or restructured due to poor performance, but emphasized that veterans would continue receiving care at alternative facilities and agreed to work with the Committee to provide the required analysis.

• Sen. John Hoeven asked how Congress could better support the National Cemetery Administration (NCA) and its expanding responsibilities. Sec. Collins and Assistant Secretary Richard Topping responded that additional funding for construction, cemetery expansion, and grant programs would be helpful. They underlined the importance of partnerships with states and addressing the needs of an aging veteran population.

• Sen. Hoeven also raised concerns about limited access to long-term care and barriers to VA participation by nursing homes. Sec. Collins acknowledged the issue and stated that duplicative inspection requirements were discouraging participation. He reported that the VA was working to streamline processes while maintaining quality standards.

• Sen. Tammy Baldwin questioned whether the VA would commit to fully distributing authorized grant funding for outreach through county and tribal veteran service officers. The Secretary confirmed that the VA would implement appropriated funding and underscored that such outreach could be critical to veterans’ well-being, including preventing suicide during transition periods.

• Sen. Baldwin brought up staffing losses and asked whether the VA would replace personnel responsible for pain and opioid management programs. Sec. Collins said that the VA would hire for all necessary positions and clarified that previously eliminated positions were largely unfilled roles removed from planning documents rather than active staff reductions. He also committed to providing specific data in follow-up.

• Sen. Mike Rounds asked whether the VA remained on track to reopen the dialysis unit in Hot Springs, South Dakota, and thanked the Secretary for prior support. Sec. Collins confirmed that the project remained on schedule and spoke on the importance of partnerships and community care networks in supporting rural access.

• Sen. Rounds inquired about details surrounding canceled contracts, including savings and whether services were still being adequately delivered. Sec. Collins and Mr. Topping replied that only redundant or duplicative contracts had been eliminated, resulting in tens of millions in savings, and claimed that decisions were made carefully to avoid any negative impact on veteran care.

• Finally, Sen. Rounds voiced concerns about unreliable mail service affecting veterans’ access to medications and asked about alternative solutions, such as local pharmacies. The Secretary acknowledged the issue, expressed openness to expanding partnerships with community pharmacies, and maintained that the VA was exploring policy changes to improve prescription access and mitigate delays.

• Sen. Cindy Hyde-Smith questioned how the VA planned to address infrastructure backlogs and ensure rural facilities received adequate funding. Sec. Collins responded that the VA was increasing access through expanded appointments and community care investments while also working to reduce administrative burdens, improve claims processing, and simplify application procedures to better serve veterans.

• Sen. Hyde-Smith asked about a proposal to lower disability ratings based on treatment or medication and whether it would be revisited. The Secretary said that the proposal had been fully withdrawn after stakeholder concerns, clarified that no current beneficiaries would have lost benefits, and asserted that the VA would not pursue policies that veterans did not understand or support.

• Sen. Kirsten Gillibrand asked whether the VA was addressing concerns about delayed diagnoses for veterans exposed to toxic substances and how screening could be improved. Sec. Collins acknowledged the issue, affirmed that adjustments would be made as needed, and emphasized the importance of improving outreach and responsiveness to veteran concerns.

• Sen. Gillibrand questioned how the VA would ensure continuity of care following the closure of the Schenectady clinic. The Secretary answered that the clinic had failed to meet standards and that veterans were being individually contacted and redirected to alternative VA or community care options. Mr. Topping added that care coordination teams were working to ensure no disruption in services.

• Sen. Deb Fischer spotlighted the CHIP IN for Veterans Act and asked about continued collaboration on construction projects such as a new VA facility in Omaha. Sec. Collins shared his support for the program, noted successful past partnerships, and indicated openness to expanding its use for future projects.

• Sen. Bill Hagerty discussed how Sec. Collins had improved efficiency at the VA in a short period. The Secretary stated that reforms focused on prioritizing veterans, reducing bureaucracy, restructuring leadership through the RISE initiative, and empowering local decision-making to improve outcomes.

• Sen. Hagerty then asked about workforce recruitment and hiring challenges. Sec. Collins explained that the VA was actively recruiting but had faced delays in hiring processes, which were being streamlined to reduce timelines to 30–40 days and improve overall staffing efficiency.

• Sen. Gary Peters asked how the VA was ensuring adequate staffing and support during the rollout of the EHR system following initial success in Michigan. The Secretary reported that additional personnel and resources were being maintained at deployed sites while preparing for future rollouts, and he confirmed growing confidence among staff in expanding the program.

• Sen. Peters questioned how the VA could justify reduced staffing levels despite widespread shortages identified in inspector general reports. Sec. Collins argued that staffing increases in prior years had not always matched patient demand. He reiterated the need to better align staffing with workload while continuing active recruitment for critical positions.

• Sen. Lisa Murkowski asked whether the VA could ensure improved interoperability between VA and Department of Defense (DOD) EHR systems, particularly in Alaska. Sec. Collins acknowledged current challenges but assured her that system alignment would improve significantly with upcoming deployments, including in Anchorage, which would allow for better integration and communication.

• Sen. Murkowski then asked whether the VA’s reorganization efforts would adequately support rural veterans, especially in Alaska. The Secretary replied that the RISE initiative was specifically designed to address rural challenges, including creating a dedicated leadership structure for Alaska. It was also meant to improve care coordination and access across geographically isolated communities.

• Chairman Boozman inquired about the effectiveness and importance of the Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program and broader suicide prevention efforts. Sec. Collins and Mr. Topping both spoke on the program’s role in reaching veterans not currently engaged with the VA, highlighted improvements in outreach and accountability measures, and described broader investments in mental health services and infrastructure to support long-term care.

• Ranking Member Ossoff asked for a commitment to strengthen foreclosure prevention and veteran homelessness programs. Sec. Collins agreed to work with the Subcommittee to support and improve these efforts.

• The Ranking Member also requested overdue information regarding management and safety concerns at the Augusta VA Medical Center. The Secretary committed to providing the requested information but defended actions taken during his tenure, noting leadership changes and ongoing corrective efforts. A contentious exchange followed regarding transparency, whistleblower protections, and responsibility for past issues.

• Chairman Boozman asked for clarification regarding reports of potential facility closures in Maine. Sec. Collins clarified that there were no current or planned closures in Maine and took responsibility for any prior confusion.

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