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“Faster Decisions, Stronger Outcomes: VA’s Work to Streamline the Disability Claims Backlog”

House Veterans Affairs Committee Hearing

April 15, 2026 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked):

• Ms. Margarita Devlin: Principal Deputy Under Secretary for Benefits, Veterans Benefits Administration, U.S. Department of Veterans Affairs

• Ms. Sandra Flint: Deputy Under Secretary for Field Operations, Veterans Benefits Administration, U.S. Department of Veterans Affairs

TOP-LINES TO SHOW YOU ARE IN THE KNOW

1. The VA has made significant progress in reducing the claims backlog, but there is still concern that faster processing could come at the cost of accuracy.

2. Much of the backlog increase was driven by the PACT Act and expanded access, which brought more veterans into the system.

3. Lawmakers raised questions about the growing use of automation and AI, and whether it could lead to more errors if not carefully managed.

4. Survivors and families are seeing improvements in some areas, but long delays and appeals remain a serious challenge in complex cases.

5. The core issue is not just how quickly claims are processed, but whether veterans are getting the right decisions the first time.

PARTY LINE PERSPECTIVES

OPENING STATEMENTS FROM THE COMMITTEE

• Chairman Mike Bost highlighted what he described as significant progress by the VA in reducing the disability claims backlog, noting a substantial decline and improved processing accuracy. He expressed concern about past mismanagement, including an Inspector General (IG) finding involving improper claims processing, and emphasized the need to maintain quality while improving efficiency. He supported modernization efforts and improvements to survivor benefits processing, looking forward to hearing how the VA would sustain recent gains.

• Ranking Member Mark Takano stated that while the reduction in the claims backlog was welcome, it must be understood in the context of the COVID-19 pandemic and the expansion of eligibility under the PACT Act. He argued that the backlog increase had been anticipated and reflected greater access for veterans rather than dysfunction. He raised concerns that the VA may be prioritizing speed over accuracy, warning that errors and increased denial rates could harm veterans and lead to lengthy appeals. He criticized the hearing for lacking independent oversight voices and veteran perspectives, claiming that true success required both timely and accurate decisions.

SUMMARY OF KEY POINTS

• Ms. Margarita Devlin testified that the VA had made historic progress in reducing the disability claims backlog, bringing it below 100,000 for the first time since 2020. She attributed this progress to the workforce, improved technology and automation, and focused leadership strategies, including targeted overtime and workload prioritization. She reported record claims processing numbers, improved accuracy rates, and significantly reduced processing times for both veterans and survivors. Ms. Devlin affirmed that these efforts reflected a continued commitment to delivering timely and accurate benefits while building a foundation for sustained improvement.

• Chairman Bost asked how the VA had reduced the claims backlog and what tools were used. Ms. Devlin explained that the backlog had dropped from over 264,000 to about 83,000 claims due to a combination of workforce efforts, the National Work Queue (NWQ) system, and automation to obtain records and streamline processing. The Chairman then asked how accuracy was ensured, and Ms. Devlin replied that the VA used multiple quality review systems, feedback loops, and targeted training to maintain accuracy.

• Chairman Bost also inquired about safeguards following a prior misconduct case. Ms. Devlin reported that new monitoring systems flagged unusually high production rates and triggered additional quality reviews.

• Ranking Member Takano questioned why denial rates had increased, citing VA data. Ms. Devlin disputed the premise, maintaining that grant rates had remained relatively stable and that remaining backlog cases were more complex. The Ranking Member then asked why accuracy rates were below historical averages, and Ms. Devlin responded that accuracy had recently improved to its highest level in two years due to focused efforts on reducing errors.

• Ranking Member Takano also raised concerns about rising appeals and errors identified by the Board of Veterans’ Appeals (BVA). Ms. Devlin claimed that disagreement rates had remained consistent over time. The Ranking Member further inquired about tracking clear and unmistakable errors, and Ms. Devlin acknowledged they were tracked for feedback purposes but did not have trend data available.

• Rep. Derrick Van Orden asked how proposed organizational streamlining would impact claims processing. Ms. Devlin explained that reducing layers within headquarters would improve decision-making efficiency and shift resources toward field operations where veterans received services.

• Rep. Van Orden followed up on the disability claims process, and Ms. Devlin described how veterans filed claims, provided evidence, and received disability ratings that determined compensation. Rep. Van Orden asked about the role of veterans service organizations (VSOs), and Ms. Devlin confirmed they assisted veterans at no cost and were integrated into transition programs.

• Rep. Julia Brownley questioned the VA’s use of automated systems and whether they contributed to increased denials. Ms. Devlin explained that automation had been developed over time and did not make decisions but instead supported employees in processing claims more efficiently.

• Rep. Brownley raised concerns about communication issues, noting that veterans were receiving unclear updates on claim status. Ms. Devlin replied that the VA was working to improve communication, including faster updates and partial decisions, and offered to review specific cases to address concerns.

• Rep. Morgan Luttrell asked about the use of artificial intelligence (AI) and how frequently systems were updated. Ms. Devlin said that updates occurred approximately every six to eight weeks and underlined that automation was primarily decision-support rather than decision-making.

• Rep. Luttrell then inquired about coordination between the Department of Defense (DOD) and the VA on transferring service records. Ms. Devlin explained that both departments were working toward fully digital record transfers and had begun implementing a digital claims process to ensure smoother transitions for service members entering the VA system.

• Rep. Maxine Dexter raised concerns that while decision times were improving, errors appeared to be increasing, particularly as staffing declined and automation expanded. She cited examples of VA decisions referencing sources like Google and WebMD, questioning whether this reflected acceptable quality standards. Ms. Devlin replied that such examples should be reviewed and clarified that employees, not AI, made decisions, though they might use external sources to understand the labor market context.

• Rep. Dexter also questioned the reliability of the VA’s accuracy metrics. Ms. Devlin held that quality reviews were conducted by human reviewers based on adherence to regulations, with a sample of cases reviewed monthly.

• Rep. Tom Barrett asked whether reductions in the backlog had led to increases in appeals. Ms. Devlin reported that appeal rates had remained consistent at approximately 11–13%, with multiple review options available to veterans, including supplemental claims and higher-level reviews.

• Rep. Barrett also inquired about the role of AI in claims decisions. Ms. Devlin reiterated that AI did not make determinations, as all decisions were reviewed and finalized by human claims processors. She further explained that automation helped organize evidence and identify missing information, but did not independently approve or deny claims.

• Rep. Delia Ramirez shared concerns that reducing the backlog should not come at the expense of quality, particularly in light of workforce reductions and the return of overtime. She asked whether mandatory overtime was still in effect. Ms. Devlin responded that it was not currently in place broadly, though some employees were still working overtime hours depending on their roles.

• Rep. Ramirez also questioned whether the VA had analyzed the impact of overtime on claim quality and employee burnout. Ms. Devlin indicated that quality was tracked overall but not specifically separated between overtime and regular work.

• Rep. Mariannette Miller-Meeks followed up on the use of overtime and whether it was a long-term solution for managing backlog surges. Ms. Devlin agreed that overtime was useful as a temporary surge tool but not a sustainable long-term strategy.

• Rep. Miller-Meeks also asked whether faster processing reduced quality, and Ms. Devlin replied that accuracy had improved and that longer processing times did not necessarily result in better decisions. Rep. Miller-Meeks further questioned how success should be measured, and Ms. Devlin underscored the need to move beyond backlog metrics toward a balanced system focused on quality, training, and efficient use of automation.

• Rep. Tim Kennedy asked whether mandatory overtime required congressional approval, and Ms. Devlin explained that it fell within VA authority under its budget. Rep. Kennedy then questioned discrepancies between issue-based and claim-based accuracy rates, mentioning that claim-based accuracy appeared lower. Ms. Devlin and Ms. Sandra Flint explained that issue-based accuracy provided more detailed insights into errors and was now the primary internal metric.

• Rep. Kennedy also questioned whether the VA tracked veterans’ health outcomes while claims were under appeal. Ms. Devlin stated that treatment eligibility depended on existing disability ratings rather than ongoing appeals, though veterans could receive care for already approved conditions.

• Rep. Jack Bergman asked how incomplete claims affected processing times and whether improving claim completeness could reduce delays. Ms. Devlin responded that complete claims with supporting evidence could speed processing, though the VA could still move claims forward by obtaining exams and records when information was missing.

• Rep. Bergman also inquired about a pilot program using technology to generate disability benefits questionnaires (DBQs), and Ms. Devlin confirmed that it had completed over 1,000 cases with high accuracy and faster turnaround times compared to traditional exams. Rep. Bergman underlined the importance of improving front-end processes to reduce delays and improve outcomes.

• Rep. Kelly Morrison asked about reported software incompatibility issues affecting medical examiners’ access to records. Ms. Flint said that she was not aware of major issues but agreed to follow up.

• Rep. Morrison also raised concerns about inefficiencies in the NWQ system, and Ms. Devlin explained that work was distributed through regional offices, with planned improvements allowing better access while maintaining orderly processing. Rep. Morrison further asked about AI use, and Ms. Devlin restated that AI supported evidence review but that a human would always make final claim decisions.

• Rep. Herb Conaway voiced his concerns about delayed claims for terminally ill veterans and shared constituent cases involving long processing times and appeals. Ms. Devlin maintained that the VA prioritized such cases but acknowledged that delays could occur when evidence was difficult to obtain and offered to review specific cases.

• Rep. Conaway also asked about errors such as mislabeling medical evidence and the reliability of AI systems. Ms. Flint replied that such issues were not identified as widespread trends and that AI tools were tested and supported decision-makers, who could still verify and supplement information as needed.

• Ranking Member Takano pointed to VA data showing rising denial rates and argued that the hearing had not sufficiently examined underlying issues affecting veterans. He advocated for meaningful oversight, noting that faster processing times did not fully reflect veterans’ experiences, particularly for those facing denials or delayed care. He said that while backlog reductions were positive, many veterans still faced significant challenges, and Congress must focus on improving outcomes rather than celebrating metrics alone.

• Chairman Bost disagreed with the Ranking Member’s assessment, believing that the hearing highlighted both backlog reduction and the importance of maintaining accuracy in claims processing. He claimed that the Committee remained committed to ensuring the VA effectively served veterans and acknowledged the role of oversight from both parties.

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