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“Bureaucratic Barriers: Making VBA Education Services Work for Veterans and not the Bureaucracy”

House Veterans Affairs Committee, Economic Opportunity Subcommittee Hearing

February 11, 2025 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked):

• Mr. Ken Smith: Acting Executive Director, Education Service, U.S. Department of Veterans Affairs

• Mr. James Ruhlman: Deputy Director, Education Service, U.S. Department of Veterans Affairs

Keywords mentioned:

• Bureaucracy, waste, Digital GI Bill, risk-based surveys, Rudisill decision, hiring freeze, accountability, VET TEC program, IT projects

IN THEIR WORDS

OPENING STATEMENTS FROM THE SUBCOMMITTEE

• Subcommittee Chairman Derrick Van Orden expressed frustration over the growing staff at VA headquarters, criticizing the lack of a proportional increase in benefits for veterans and condemning the bureaucracy as wasteful. He cited multiple examples of financial mismanagement, including contract oversight mistakes, misinterpretations of Supreme Court rulings, and bureaucratic red tape that has prevented schools from accepting GI Bill benefits. The Chairman stressed the need for every dollar allocated to the VA to directly support veterans rather than administrative waste and reaffirmed his commitment to ensuring accountability.

• Subcommittee Ranking Member Chris Pappas reviewed the historical significance of the GI Bill and underscored the importance of maintaining quality education opportunities for veterans. He also addressed concerns about federal agency overreach, staffing shortages, and administrative inefficiencies that have negatively impacted the VA’s ability to serve veterans. Ranking Member Pappas called for stronger congressional oversight of the VA and other federal agencies, stating that the focus should remain on veterans rather than political battles over executive authority.

• Chairman Van Orden responded to the Ranking Member’s comments, saying the Subcommittee should focus on internal improvements and avoid political distractions. He pointed out that the new administration had only been in office for a few weeks and that efforts should be directed toward ensuring effective government action moving forward.

SUMMARY OF KEY POINTS

• Mr. Ken Smith provided an overview of the VA’s current efforts to improve education benefit processing. He acknowledged concerns raised by the Subcommittee about inefficiencies in claim processing, including delays caused by complex instructions and procedural redundancies. He described the VA’s progress in modernizing its systems, including increased automation of benefits processing and the transition away from outdated technology. Mr. Smith communicated the VA’s commitment to improving customer experience, strengthening partnerships with external agencies, and ensuring timely benefit delivery while implementing the provisions of the Elizabeth Dole Act.

• Ranking Member Pappas voiced concerns about the impact of recent executive orders on the VA, particularly the hiring freeze and its effect on veterans' services. He questioned why mission-critical positions, such as VR&E counselors, were subject to the freeze. Mr. Smith responded that the VA was following a government-wide hiring freeze per executive order and is awaiting further guidance from the Secretary.

• The Ranking Member questioned how the VA planned to avoid delays in delivering earned benefits. Mr. Smith stated that claims processors were exempt from the freeze and that automation was helping to manage workloads.

• Ranking Member Pappas then inquired about the impact of the hiring freeze on reviewing Rudisill claims, which determine eligibility for extended education benefits. Mr. Smith assured the Ranking Member that existing staff were handling the claims but acknowledged the process could take up to 22 months.

• Rep. Tom Barrett asked about the status and strategic use of risk-based surveys, expressing concern that they might disincentivize schools from participating in the GI Bill program. Mr. Smith explained that surveys were conducted using a data-driven approach to ensure veterans were not defrauded. Mr. James Ruhlman added that risk-based surveys were meant to prevent school closures that could harm veterans. He noted that the VA had revised its model over the years, reducing the number of surveyed schools.

• Rep. Barrett asked if anonymous complaints could trigger a risk-based survey. Mr. Ruhlman clarified that at least two complaints were required, along with other factors such as rapid student growth or regulatory violations.

• Rep. Morgan McGarvey emphasized the importance of focusing on delivering services efficiently without scapegoating VA employees. He asked what changes would help veterans receive benefits faster. Mr. Smith advocated for better procedures, job aids, and technological improvements to reduce processing delays. Rep. McGarvey acknowledged the need for efficiency but stressed that the VA workforce should not be cut at the expense of veteran services.

• Rep. Kimberlyn King-Hinds shared concerns about equitable access to education benefits for veterans in remote areas like the Northern Mariana Islands. Mr. Smith noted that all service members qualify for education benefits based on their service. Mr. Ruhlman acknowledged that only one college in the Northern Mariana Islands was GI Bill-approved. He offered to work with local institutions and employers to expand opportunities.

• Rep. King-Hinds also asked about outreach efforts to veterans in rural areas with limited internet access. Mr. Ruhlman admitted that most outreach was electronic and stated that in-person outreach would require additional travel funding.

• Rep. Delia Ramirez expressed concern about the potential removal of diversity-related search filters from the GI Bill Comparison Tool under the Trump administration’s executive orders. She argued that removing these search filters would make it harder for veterans to find schools that fit their preferences. Mr. Smith agreed that it would create an additional step for veterans in their search process.

• Rep. Ramirez asked whether veterans had expressed concerns about executive orders affecting education benefits. Mr. Smith claimed he was unaware of any specific call traffic related to the orders but agreed to check.

• Rep. Juan Ciscomani focused on the VET TEC program and asked when the VA would resume enrolling veterans. Mr. Smith stated that the VA was working on an implementation plan but did not have a start date yet. He assured Rep. Ciscomani that the VA was prioritizing it but needed time to finalize the implementation.

• Rep. Ciscomani asked about the status of the Fry Scholarship provisions in recent legislation. Both witnesses confirmed that the provisions were implemented, with applications opening on April 1, 2025, and some changes already in effect.

• Rep. Abe Hamadeh criticized the VA’s education services bureaucracy for inefficiencies, citing the Digital GI Bill rollout as a costly failure that increased from an initial estimate of $25 million to nearly $1 billion. He asked what the VA was doing to ensure the transition to the new digital platform would be completed by November 2025. Mr. Smith stated that the VA was on track to transition off the outdated Benefits Delivery Network (BDN) system by November 2025. He cited recent progress, including the successful processing of non-Chapter 33 claims and upcoming transitions for Dependents’ Education Assistance (Chapter 35).

• Rep. Hamadeh then questioned why a previous letter from Chairman Mike Bost demanding answers about the digital GI Bill had not received a response. Mr. Smith admitted he had not yet reviewed the letter but promised to follow up.

• Chairman Van Orden asked where Mr. Smith’s predecessor had been reassigned. Mr. Smith stated that his predecessor had been reassigned to another business line. The Chairman then accused the VA of making false claims about budget cuts harming veterans, listing multiple areas where no negative impact had occurred despite VA warnings. He stated that the VA had increased bureaucracy by 81.4% while only increasing educational participants by 39.7%.

• Chairman Van Orden pressed Mr. Smith further on what "accountability" meant to him and whether any bureaucrats had been fired for poor performance. Mr. Smith acknowledged that some individuals had been terminated but could not provide specific numbers.

• Ranking Member Pappas asked about the implementation of the Veteran Improvement Commercial Driver License (CDL) Act, which was included in the Elizabeth Dole Act. He wanted details on the VA’s progress in streamlining approvals for CDL training programs. Mr. Smith confirmed that implementation was on track for March 2025.

• The Ranking Member inquired about performance at the VA’s Muskogee call center, which handles 1,500 employees processing education claims. Mr. Smith praised their performance, given the high volume of claims. He confirmed that all employees were expected to return in person by April 28. Ranking Member Pappas emphasized that the VA should reconsider its in-person mandate if it led to lower productivity due to space constraints.

• Rep. Barrett criticized the VA’s history of over-budget and underperforming IT projects, stating that bureaucratic inefficiencies were leading to wasted taxpayer money and delays in veteran services. Mr. Smith acknowledged the problem and committed to better accountability and project management.

• Rep. Barrett asked if the VA followed Government Accountability Office (GAO) recommendations on IT implementation. Mr. Smith was unsure but cited an Inspector General (IG) report highlighting areas for improvement, including risk management and vendor accountability.

• Rep. Barrett followed up on what specific steps the VA would take to ensure the Digital GI Bill project stayed on track. Mr. Smith mentioned ongoing efforts to address IG recommendations, improve internal culture, and ensure projects remained under budget. Mr. Smith confirmed that he did not need additional authority from Congress or the executive branch to terminate underperforming employees.

• Chairman Van Orden asked if the VA had a finalized Integrated Master Schedule for the Digital GI Bill project. Mr. Smith claimed it had been developed, but no one present had a copy. The Chairman expressed frustration, stating that after years of requests, the Committee still had not received a clear schedule.

SPECIAL TOPICS

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