Cole Remarks at Oversight Hearing Assessing the Veterans Health Administration Fiscal Year 2025 Potential Shortfall (For the Record)

Dr. Elnahal and Mr. Jacobs, welcome, and thank you for taking the time to appear here today to discuss this pressing issue affecting our veterans.

America’s long line of service is reflected through the millions of people who have served her in uniform across the nation, and I’m proud that nearly 236,000 veterans call Oklahoma home. We owe our freedoms to these heroes, and it is our duty to honor the commitments we’ve made to them. Our veterans should never be underserved – and they should never be misled to believe that their care and benefits are at risk. 

It’s why, based on the President’s Budget Request, we acted to fully fund health care and benefits for our veterans in our Fiscal Year 2025 MilCon-VA bill, which was passed by the House in June. The Senate’s bill also went through the Full Committee in July. Prior to these actions, the VA had not indicated to Congress any sort of imminent shortfall. Subsequently, one day following the Senate passing their bill in Committee, the VA came to us warning of a potential shortfall of $15 billion—this is wholly unacceptable. 

It is unclear how the estimate could have deviated so significantly from the time the President’s Budget Request was submitted in March, to the time Congress acted on that request. The timeline—and lack of communication regarding an approximated $15 billion shortfall—is extremely concerning.

The alarming discrepancy did not stop us from acting to fix the reckless mismanagement of the Biden-Harris Administration and its VA. In September, Congress passed Congressman Mike Garcia’s Veterans Benefits Continuity and Accountability Supplemental Appropriations Act to ensure the earned benefits of our veterans were intact. The bill provided an additional $2.9 billion after the VA repeatedly stated the Compensation and Pension and Readjustment Benefits were on the verge of total liquidation, and they may not be able to process payments for October 1st. 

Yet, in another stunning about-face just last month, the VA notified Congress that it, in fact, did not utilize any of the resources provided in the supplemental before the end of the fiscal year. Instead, the VA carried over $5 billion in the account into the new fiscal year. The funds were simply not utilized in the intended timely manner that the VA stated they were needed for. 

This all calls into question the remaining balance of the potential VA shortfall. As of this morning, the VA still seeks $12 billion in additional funding for the Medical Services account in FY25. While the VA may be revisiting this estimate, Congress has yet to see any new information noting that it is required. Given the misfire on the Compensation and Pension account estimates, we have genuine concern about the current estimate, and the VA’s ability to accurately project its needs. 

Further, the manner in which these funds have been requested raises additional concerns. Why would we shift this discretionary expense to the mandatory side of the ledger? We will not engage in any attempt to use the Toxic Exposure Fund as a slush fund or deviate from the statutory caps established in the Fiscal Responsibility Act. 

These actions have brought the credibility of the VA’s forecasting and budgeting process into serious question. While this Committee greatly appreciates the ongoing efforts in providing the care that our veterans have earned – and fully understands the increased workload required from the PACT Act – the VA’s inability to accurately project its needs has been unacceptable. 

Given the bipartisanship of this Subcommittee, I hope we can have a productive discussion on how we got here and what measures can be put into place to ensure that every promise made to our heroes remains a promise kept.