Carter Remarks at Oversight Hearing Assessing the Veterans Health Administration Fiscal Year 2025 Potential Shortfall

Good morning. I would like to welcome Dr. Shereef Elnahal, Under Secretary for Health and Mr. Josh Jacobs, Under Secretary for Benefits at the Veterans Benefits Administration both of the Department of Veterans Affairs. 

The subcommittee recognizes and appreciates the work being done at the VA. We know that since the PACT Act, enrollment in VA health care has grown significantly as we provide earned benefits to our veterans.             

Unfortunately, the inability to accurately forecast costs is hindering these efforts.  In July, the VA alarmingly notified Congress of a potential $15 billion shortfall, including $12 billion in Fiscal Year 2025 for the Veterans Health Administration.  Oddly, the VA opted to notify Congress of this almost immediately following the House and Senate marked up bills for the Fiscal Year. 

Given the dire urgency expressed by the VA of a potential September lapse in pension, disability and education benefits, Congress quickly acted and passed the Veterans Benefits Continuity and Accountability Supplemental Appropriations Act.  Unfortunately, we recently found out that none of the near $3 billion provided in that Act was utilized in Fiscal Year 2024 as intended. In fact, the VA carried over $5.1 billion into the new Fiscal Year. This inability to accurately forecast is unacceptable. The VA irresponsibly instilled fear that benefits and pensions could be interrupted for America’s veterans.  That brings us to today’s primary hearing topic, to discuss the VA’s request for $12 billion in additional funds for the medical care account in Fiscal Year 2025. Failing to immediately utilize the $3 billion as indicated, it's natural to question the accuracy of the $12 billion request.

We will always remain steadfast in our commitment to veterans and will make sure they receive the benefits they have earned, but current estimates continue to raise questions. We hope to have a candid conversation this morning on this request.