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“VA Office of Information and Technology Organizational Structure and Priorities”

House Veterans Affairs Committee, Technology Modernization Subcommittee Hearing

July 14, 2025 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked):

• Ms. Devon Beard: Acting Deputy Chief Information Officer for People Science and Chief People Officer, Office of Information and Technology, U.S. Department of Veterans Affairs

• Mr. Jack Galvin: Acting Principal Deputy Assistant Secretary and Deputy Chief Information Officer, Office of Information and Technology, U.S. Department of Veterans Affairs

• Ms. Carol Harris: Director of Information Technology and Cybersecurity, U.S. Government Accountability Office

• Mr. Eddie Pool: Acting Assistant Secretary for Information Technology and Chief Information Officer, Office of Information and Technology, U.S. Department of Veterans Affairs

• Dr. Timothy Puetz: Deputy Chief Information Officer for IT Budget & Finance and Chief Financial Officer, Office of Information and Technology, U.S. Department of Veterans Affairs

Keywords mentioned:

• Modernization, cybersecurity, budget optimization, workforce reshaping, infrastructure, digital services, standardization, enterprise platform, “buy before build” strategy

IN THEIR WORDS

OPENING STATEMENTS FROM THE SUBCOMMITTEE

• Chairman Tom Barrett spoke on the critical role technology plays at the VA, noting that nothing in the department functions without it. He explained that the Office of Information and Technology (OIT) must balance maintaining existing systems while modernizing outdated infrastructure, likening the challenge to repairing and replacing roads and bridges simultaneously. The Chairman expressed support for President Donald Trump's fiscal year 2026 budget proposal, which he said aims to make OIT smarter and more cost-effective, with investments in automation, cybersecurity, and workflow changes. He advocated for greater accountability in the VA's IT spending, involvement of OIT in early decision-making, and ensuring that every dollar spent delivers results for veterans.

• Ranking Member Nikki Budzinski expressed deep concern about the state of the VA’s IT infrastructure, calling it foundational to veteran care and benefits delivery. She criticized the White House's fiscal year 2025 and 2026 budgets for cutting OIT funding, accusing the Trump administration of dismantling capacity while expanding OIT’s responsibilities. Ranking Member Budzinski raised alarms about the department’s reliance on voluntary retirements and natural attrition, warning that the VA is losing institutional knowledge and critical technical expertise. She urged the VA to secure a competent, Senate-confirmed CIO and warned that continued erosion of OIT capacity could jeopardize services for future generations of veterans.

SUMMARY OF KEY POINTS

• Mr. Eddie Pool described OIT’s current efforts around three priorities: budget optimization, workforce reshaping, and cybersecurity enhancement. He stated that the VA had reinvested millions into infrastructure readiness and consolidated digital platforms to better serve veterans, including through the VA mobile app. Mr. Pool explained that OIT is simplifying its workforce structure to reduce bureaucracy and is implementing zero-trust cybersecurity measures to stay ahead of evolving threats. He affirmed that all of these changes aim to create a future-ready VA that maximizes taxpayer dollars and improves veterans' lives.

• Ms. Carol Harris outlined the Government Accountability Office’s (GAO) longstanding concerns with the VA’s IT management, citing ongoing high-risk designations for VA healthcare and acquisition management due to failed or troubled IT projects. She summarized the VA’s FY26 budget request, pointing to a nearly $300 million decrease from the prior year, reductions in full-time staff, and cuts to legacy systems and new procurements. Ms. Harris emphasized GAO’s 12 leading practices for successful agency reforms and posed key questions the VA should address regarding data use, service continuity, and workforce planning. She supported efforts to resolve 26 outstanding GAO recommendations related to IT and boost cybersecurity to strengthen the department’s reform efforts.

• Chairman Barrett asked for examples of how the VA’s OIT had not been operating as smartly as possible. Mr. Pool responded that the VA was no longer funding projects that provided no value and was reinvesting in areas that deliver maximum benefit to veterans.

• The Chairman asked if workforce automation and technological improvement would reduce the need for manual, human-driven processes. Mr. Pool agreed and confirmed that the VA’s goal was to automate processes while still retaining necessary human interaction.

• Chairman Barrett then inquired about which positions were being impacted by the workforce reduction. Mr. Pool stated that the VA had about 8,200 full-time employees and was optimizing resource allocation rather than targeting headcount reductions. Ms. Devon Beard added that the VA had decreased by about 100 employees since January and that succession planning, cross-training, and upskilling had ensured continued service to veterans.

• Chairman Barrett asked Mr. Pool to confirm that no direct IT roles like application interfacing or coding were being eliminated. Mr. Pool confirmed that the VA was retaining positions aligned with delivering mission-critical IT services and that reductions primarily targeted back-office and administrative support roles.

• Ranking Member Budzinski followed up, asking for clarification on the number of employees who took early retirement or deferred resignation. Ms. Beard confirmed that 1,172 employees participated in these programs.

• Ranking Member Budzinski asked how the VA ensured that such staffing reductions would not erode OIT’s mission. Mr. Pool responded that the VA eliminated duplicative functions, such as in-house HR services, by shifting them to department-level shared services, allowing OIT to reinvest in mission-focused functions. He agreed to provide a list of which positions were vacated through the reorganization to the Subcommittee.

• The Ranking Member questioned how the GAO assessed the VA’s workforce planning during restructuring. Ms. Harris said that GAO found OIT’s workforce planning incomplete, lacking an inventory of current skills and competencies, and that the VA had not adequately identified current and future workforce needs.

• Ranking Member Budzinski asked Mr. Pool how the VA ensured that no operational gaps arose from the early retirements. Mr. Pool stated that leadership reviewed every voluntary departure to ensure continuity of operations and that mitigation strategies were in place.

• Rep. Sheila Cherfilus-McCormick inquired about steps the VA was taking to improve employee morale amid organizational changes. Mr. Pool explained that the VA was communicating frequently, conducting surveys, and offering Q&A sessions to help employees navigate changes.

• Rep. Cherfilus-McCormick then asked about retention efforts and mechanisms to track employee feedback. Mr. Pool emphasized the VA’s veteran-focused mission and yielded to Ms. Beard, who described town halls, an 80% satisfaction rate from employees, and the creation of a career development portal for upskilling staff.

• Rep. Cherfilus-McCormick asked about the involvement and operational control of the Chief Information Security Officer (CISO) during the reorganization. Mr. Pool replied that the CISO and her executive team were involved, particularly on the policy side, while operational concerns were handled by Mr. Jack Galvin. Mr. Pool could not speak to why the CISO was not present at the hearing, but he indicated that operational discussions were more aligned with Mr. Galvin’s role.

• Chairman Barrett shifted the subject and asked how the current reorganization differed from past efforts. Mr. Jack Galvin explained that the current administration prioritized standardization and veteran outcomes, reducing duplicative software systems and improving system reliability.

• The Chairman discussed the importance of aligning workforce resources around IT projects. Dr. Timothy Puetz underscored that effective budgeting requires linking spending directly to veteran outcomes and ensuring proper controls through collaboration with the Inspector General (IG).

• Ranking Member Budzinski asked if the VA would need to rehire staff after the recent attrition. Mr. Pool stated that while the VA would continue hiring, it was unlikely that recently departed employees would need to be rehired, as the departures were carefully reviewed.

• The Ranking Member questioned how the VA was prioritizing its mission with a reduced workforce. Mr. Pool explained that standardizing enterprise processes allowed OIT to automate solutions and shift non-IT functions, such as HR, back to the department level.

• Chairman Barrett asked for clarification on the number of HR staff within OIT and whether their roles were included in the deferred retirements. Ms. Beard confirmed that there were 242 HR staff within OIT, and those positions were included in the 1,172 departures.

• The Chairman followed up about the VA's "buy before build" strategy. Mr. Pool elaborated, saying that purchasing enterprise platforms from the industry avoids the costs and maintenance burdens of custom-built systems, enhances cybersecurity, and consolidates workflows.

• Ranking Member Budzinski asked why millions of dollars were transferred out of OIT while many unfunded priorities remained. Dr. Puetz explained that prioritization sometimes requires addressing department-wide needs above OIT’s internal list and that the VA actively manages funding in real time to reduce risks.

• Ranking Member Budzinski asked whether the top cybersecurity priorities on the unfunded list had been resolved. Dr. Puetz said that the VA had made substantial investments, including over $100 million in infrastructure readiness and recent investments in zero trust architecture.

• The Ranking Member requested a list of canceled contracts and where those funds were reinvested. Mr. Pool agreed to provide that list for the record.

• Ranking Member Budzinski asked whether the $434 million cut to the FY26 OIT budget would still allow the VA to meet its needs. Mr. Pool responded that standardization efforts would generate fiscal efficiencies, and he believed that the VA could meet most of its priorities.

• Ranking Member Budzinski asked whether the Department of Government Efficiency (DOGE) was involved in contract cancellations. Mr. Pool claimed that no DOGE employees worked at the VA and referred further questions to the Office of General Counsel due to ongoing litigation.

• In her closing remarks, Ranking Member Budzinski said that she remains concerned that the current reorganization lacks data-driven, evidence-based decision-making. She expressed skepticism that the reorganization, staffing reductions, and budget decisions were methodically planned, especially without a Senate-confirmed CIO in place. She urged the VA to delay drastic changes until a permanent CIO is confirmed and expressed a desire to continue working with Mr. Pool and his team to ensure OIT strikes the right balance in its structure and staffing.

• Chairman Barrett reaffirmed the importance of OIT’s mission within the VA. He acknowledged the tension between competing priorities and underlined the need to clearly determine which priorities deserve the most focus. The Chairman expressed approval of the VA’s efforts to reevaluate investments, optimize the workforce, and reduce technical debt as part of the "smarter, not bigger" strategy. He committed to continuing oversight to ensure OIT has the right priorities and structure to support the VA’s mission effectively.

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