PACT Act Implementation: Modernizing VA Disability Claims Through Effective Technology

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Technology Modernization · 2026-07-13 · 119th Congress
The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine how the Veterans Benefits Management System (VBMS) and related automation and AI tools have performed since the 2023 five-year modernization plan mandated by section 701B of the PACT Act, and whether the technology is actually easing or complicating disability claims processing for veterans. Begins at 0:31:15
Transcript
Highlights

Title

VBMS Modernization, Automation, and PACT Act Claims Processing

Purpose

The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine how the Veterans Benefits Management System (VBMS) and related automation and AI tools have performed since the 2023 five-year modernization plan mandated by section 701B of the PACT Act, and whether the technology is actually easing or complicating disability claims processing for veterans. Two panels testified: VA and GAO officials on the modernization plan's progress, followed by AI-industry and veteran service organization representatives on real-world effects for veterans and frontline staff. Begins at0:31:15

Who spoke

Chairman Barrett0:31:15: Opened the hearing, framed the focus on VBA/OIT coordination and the "one singular client" being the veteran0:32:53; stressed AI/automation must never fully decide a veteran's claim0:36:24; later questioned staff on quick-submit failures0:53:44 and DoD/VA record transfer1:16:12.

Ranking Member Bisinski0:37:12: Cited the PACT Act's expansion of eligibility to 3.5 million veterans0:37:36; said staff report losing up to an hour a day to VBMS crashes/lags0:38:56; noted VA has lost over 1,100 claims examiners this fiscal year and nearly 2,700 since January 20250:40:41; pressed on inconsistent excluded-time policies for outages1:01:07 and VA's automation of DIC/burial benefits1:18:59.

Mr. Robert Orifici, Acting Deputy CIO, VA OIT0:43:23: Said the rating backlog has stayed below 75,000 since May 6, 2025, a 73% drop since January 20250:44:13; cited digitizing 1.2 billion evidence documents0:44:31 and $16 million in annual cloud savings0:46:14; said VBMS outages occur about once a month0:58:31 and help-desk tickets average 8 days to close0:59:01.

Mr. Derek Herbert, Acting Chief Production Officer, VBA0:55:33: Explained a quick-submit failure that led an employee to enter only one of 14 claimed conditions0:55:53; said 80% of the 600,000 pending claims are in evidence-gathering1:23:36; confirmed disability compensation automation never fully decides a claim1:19:35 but that DIC/burial benefits were fully automated1:18:59.

Dr. Sterling Thomas, Chief Scientist, GAO0:47:19: Said GAO has four VA program areas on its high-risk list0:47:46; cited 15 outstanding GAO recommendations1:09:43; warned AI trained on unrepresentative data can wrongly deny compensation0:50:27; stressed need for testing/piloting frameworks before deployment1:15:20.

Rep. Luttrell1:03:34: Argued DoD/VA data should transfer automatically at separation rather than being reconstructed by VA1:04:25; asked whether older veterans face more claims difficulty than younger ones2:00:19.

Rep. Goodlander1:08:22: Asked about the roughly 2.3 million claims received this year1:09:08 and GAO's outstanding recommendations1:09:43; pressed on whether VA has reduced claims-processor staffing since January1:12:07; later questioned VSOs on VBMS visibility gaps1:54:16 and end-to-end automation oversight1:57:00.

Mr. Caleb Max, President/CEO, National Artificial Intelligence Association1:28:11: Compared AI-assisted claims triage to ATMs augmenting bank tellers1:28:35; described "neuro-symbolic AI" that flags rather than decides claims1:29:03; urged Congress to codify AI governance standards in statute rather than contract-by-contract1:30:14.

Mr. Jeremy Villanueva, Paralyzed Veterans of America1:33:31: Cited a VA OIG report finding nearly 99% of about 8,100 automated DIC decisions contained deficiencies, with 2% erroneously granting survivor benefits1:36:31; recommended removing dependents/stopping active-duty payments be automated1:34:22; said end-to-end automated decision-making should not occur without added oversight1:57:27.

Mr. Gregg Orto, Deputy Director, VFW1:38:15: Said VBMS, now 16 years old, operates more as a repository than an integrated case-management system, comparing it to an old Chevy Vega that "worked, but..."1:39:59; described needing to search Caseflow and CAPRI outside VBMS for appeals and caregiver-program information1:49:28; described Corporate DB erroneously reverting veterans' legal names, especially affecting domestic-abuse survivors1:51:12.

Ranking Member Ms. Brown (closing)1:59:18: Reiterated VA has lost over 2,700 claims examiners since January 2025 and urged better engagement of frontline employees in tool design1:59:47.

Key moments

Orifici testified the rating backlog has stayed below 75,000 since May 6, 2025 — a 73% decrease since January 2025 — attributing it to systems and workforce improvements0:44:13.

Bisinski said VA is down nearly 2,700 claims examiners and roughly 1,200 IT specialists since January 2025, with over 1,100 examiners lost this fiscal year alone0:40:41.

Herbert detailed a quick-submit failure in Chairman Barrett's district: automation correctly flagged a malformatted 14-condition claim for human review, but the reviewing employee entered only the first condition, dropping 13 claimed conditions0:55:090:55:53.

Orifici disclosed help-desk tickets take about 8 days on average to resolve, and VBMS experiences roughly monthly system-wide or regional outages0:58:310:59:01.

Villanueva cited an April 2026 VA OIG report finding nearly 99% of about 8,100 automated DIC/survivor benefit decisions contained legal or factual deficiencies, with 2% erroneously granting benefits later revoked1:36:161:36:31.

Herbert confirmed VA fully automated DIC, burial, and other end-of-life benefits despite earlier assurances that automation would not replace human decision-making1:18:59.

Luttrell argued DoD should transfer a service member's complete records directly to VA at separation rather than VA reconstructing files from scratch, calling the current disconnect a source of repeated PACT Act toxic-exposure documentation gaps1:04:251:07:27.

Orto described Corporate DB reverting a female veteran's legal name after it had been correctly updated, a recurring issue he said disproportionately affects veterans fleeing domestic abuse1:51:121:51:40.

Herbert said 80% of the roughly 600,000 pending claims are in the evidence-gathering phase, with private medical records (about 8,000 requests/day) as a key bottleneck alongside military records1:23:361:21:57.

Max proposed statutory AI benchmarking standards — accuracy, failure-rate escalation, bias auditing, and document traceability — arguing current contract-by-contract governance leaves gaps that expire with each contract1:30:271:31:15.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Technology Modernization
Chamber / CongressHouse · 119th Congress
Date2026-07-13
TypeHearing
Witnesses
Mr. Derek Herbert — Acting Chief Production Officer, Veterans Benefits Administration, U.S. Department of Veterans Affairs
Dr. Sterling Thomas — Chief Scientist, Science, Technology Assessment, and Analytics, U.S. Government Accountability Office
Mr. Caleb Max — President and Chief Executive Officer, National Artificial Intelligence Association
Mr. Jeremy Villanueva — Associate Legislative Director, Paralyzed Veterans of America
Mr. Gregg Orto — Deputy Director, National Veterans Service, Veterans of Foreign Wars
Mr. Robert Orifici — Acting Deputy Chief Information Officer, Product Delivery Service, Office of Information and Technology, U.S. Department of Veterans Affairs
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Transcript294 caption blocks · 15,264 words · 2:03:43 runtime
EventCongress.gov 119443