Hearings to examine proposed budget estimates and justification for fiscal year 2027 for the Department of Veterans Affairs

VA Budget and ModernizationSenate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies · 2026-04-30 · 119th Congress
The Senate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies met to examine the Department of Veterans Affairs' fiscal year 2027 budget request and fiscal year 2028 advance appropriations. Begins at 0:19:10
Transcript
Highlights

Title

FY2027 VA budget: staffing, clinic closures, and construction priorities

Purpose

The Senate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies met to examine the Department of Veterans Affairs' fiscal year 2027 budget request and fiscal year 2028 advance appropriations. Secretary Doug Collins and VA Chief Financial Officer Richard Topping testified on the $488.2 billion request, the RISE reorganization, electronic health record modernization, clinical staffing levels, and planned clinic closures. Members pressed on staffing cuts, community-care spending, and specific facility issues in their states. Begins at0:19:10

Who spoke

Chair John Boozman (R-AR)0:19:10: Opened by detailing the $488.2 billion FY2027 request, a 7.7% increase including $144.7B discretionary and $337.7B mandatory funds with $56B for the Toxic Exposures Fund0:20:07; highlighted the $4.2 billion electronic health record push0:21:05 and RISE administrative consolidation0:21:52; acknowledged retiring clerk Patrick Magnuson0:22:56 and later questioned Secretary Collins on the Staff Sergeant Parker Suicide Prevention Program1:52:02.

Sen. Jon Ossoff (D-GA), Ranking Member0:24:04: Noted the request would employ fewer physicians and registered nurses than FY20260:25:49; flagged a 17.2% increase for outsourced community care versus ~2% for direct care accounts0:26:17; pressed hard on reported clinic closures/service reductions in Tennessee, New York, Maine, and Arkansas and statutory analysis requirements0:46:370:50:24; later had a pointed exchange with Collins over oversight of the Augusta, GA medical center and an Inspector General report on retaliation and abusive communication1:57:182:02:51.

Secretary Doug Collins, VA0:28:39: Said 100% of VA facilities passed Joint Commission safety inspections this week0:31:28; cited a study showing 14% staffing growth from 2019-2025 against only 6% growth in patient interactions0:31:58; reported the VBA backlog fell from over 125 days to 70, with cases from 138,000-plus down to 77,0000:32:51; confirmed clinics in Tennessee (Manville) and Schenectady, NY are closing due to contract non-performance, calling it "relocation" not closure0:48:201:21:03; said the disability-rating-by-medication proposal was pulled within 72 hours and "nobody lost a single dime"1:15:10; clarified there are no planned closures in Maine2:05:32.

Sen. Susan Collins (R-ME)0:36:10: Noted the Togus VA facility, the nation's oldest, self-identified $594 million in needed infrastructure improvements versus only $226 million requested for Maine0:36:56; raised workforce shortages for a new residential substance-abuse treatment facility and the Elizabeth Dole Act physician pay-cap waiver0:39:33; pushed her bipartisan bill to expand Highly Rural Transportation Grant eligibility beyond the seven-people-per-square-mile threshold0:43:18.

Sen. John Hoeven (R-ND)0:50:44: Praised progress on the Fargo National Veterans Cemetery0:51:39; asked how the committee can better support the National Cemetery Administration0:52:09 and raised access to long-term nursing home care, noting only about 20% of North Dakota nursing homes accept VA reimbursement0:55:18.

Mr. Richard Topping, VA Chief Financial Officer0:54:36: Detailed a $10.4 billion construction request including $5 billion in deferred maintenance and $500 million to expand national cemeteries0:55:05; cited $355 million spent on community care in Mississippi1:12:03 and $805 million spent on community care in New York last year1:24:36.

Sen. Tammy Baldwin (D-WI)0:57:11: Sought Collins' commitment to fully distribute $10 million in county/tribal veterans service officer outreach grants under the Dole Act0:58:07; questioned staffing losses affecting opioid/pain management programs and the elimination of ~30,000 unfilled positions1:01:091:01:59.

Sen. Cindy Hyde-Smith (R-MS)1:09:54: Thanked VA for infrastructure projects in Biloxi and the Montgomery Medical Center1:10:45; questioned the now-withdrawn proposal to lower disability ratings based on medication/treatment1:14:35.

Sen. Kirsten Gillibrand (D-NY)1:18:16: Asked about screening delays for PACT Act-related respiratory conditions and cancers1:18:48; challenged the Schenectady clinic closure affecting 1,500 veterans, pressing for an individualized continuity-of-care plan and urging VA to open its own clinic there instead of a contract facility1:20:361:24:00.

Sen. Deb Fischer (R-NE)1:26:16: Highlighted the CHIP-IN Act's success building the Omaha ambulatory care center $34 million under budget and sought Collins' commitment to use it for a new Omaha medical center1:26:40.

Sen. Bill Hagerty (R-TN)1:27:46: Asked Collins to explain the leadership and management changes behind VA efficiency gains1:28:31; discussed hiring-timeline reforms, including a facility that took 190 days to hire food service workers1:32:12.

Sen. Gary Peters (D-MI)1:34:26: Asked how VA will maintain adequate clinical/IT staffing as the electronic health record rollout accelerates from Michigan into Ohio1:35:20; cited an OIG report finding every VA medical center reports "severe occupational shortage," listing specific gaps at Ann Arbor, Battle Creek, Saginaw, and the John D. Dingell facility in Detroit1:37:55; pressed on FY2027 staffing levels remaining below prior years despite these shortages1:39:00.

Sen. Lisa Murkowski (R-AK)1:43:35: Raised physician pay-scale challenges in recruiting specialists to Alaska1:44:03; sought assurance on improving electronic health record interoperability with DoD's joint Anchorage facility, with Collins committing to improvement "by this fall"1:44:581:45:27; asked whether rural veterans would be protected under the RISE reorganization, noting Alaska will have a dedicated Health Service Area1:47:471:48:09.

Sen. Mike Rounds (R-SD)1:04:20: Thanked Collins for restoring the Hot Springs, SD dialysis unit with a $1 million commitment, targeting a June reopening1:04:45; pressed Topping on canceled contracts and savings evidence1:05:57; raised Postal Service delays affecting appointment notices and prescription delivery, urging local independent pharmacy access1:07:20.

Mr. Topping (on canceled contracts)1:06:11: Said VA reviewed roughly 76,000 contracts, made "hundreds" of eliminations for redundancy, and achieved savings in the tens of millions of dollars while prioritizing patient and facility safety1:06:41.

Key moments

Chair Boozman detailed the FY2027 VA budget: $488.2 billion total, a 7.7% increase over FY2026, including $144.7B discretionary, $337.7B mandatory, and $56B for the Toxic Exposures Fund0:20:07.

Ossoff highlighted a 17.2% increase for outsourced community care versus roughly 2% combined growth for direct-care accounts, while physician and nurse staffing requests would fall below FY2026 levels0:25:490:26:17.

Collins disclosed a study showing a 14% staffing increase VA-wide from 2019-2025 against only a 6% increase in patient interactions, saying some facilities saw double-digit staffing growth with negative patient interaction changes0:31:58.

Sharp, repeated exchange between Ossoff and Collins over the Schenectady, NY and Manville, TN clinic closures: Collins said the contract clinics failed to meet standards for years and called it "relocation," while Ossoff insisted the law requires the VA to provide the subcommittee an impact analysis before closures, which had not been received0:47:080:50:241:21:03.

Collins said the VA's disability-rating-by-medication proposal was suspended within 24 hours and pulled entirely within 72 hours after public backlash, stating "nobody has lost a single dime"1:15:101:17:25.

Tense back-and-forth between Ossoff and Collins over the Augusta, GA VA medical center: Ossoff cited IG findings of "threatening and abusive communication style" and retaliation against whistleblowers and demanded the VA answer outstanding information requests; Collins said he had replaced leadership twice and offered to visit the facility together with Ossoff1:57:452:04:49.

Sen. Susan Collins noted Togus, Maine's VA facility (the nation's oldest, established under Lincoln) self-identified $594 million in needed infrastructure improvements but the budget requests only $226 million for Maine0:36:560:37:20.

Sen. Peters cited an OIG report finding every Michigan VA medical center faces "severe occupational shortage" across 76 identified occupations, while Collins countered with facility-specific FTE increases (e.g., 34% at Ann Arbor) that outpaced patient encounter growth1:37:551:39:53.

Collins said the Elizabeth Dole Act's physician pay-cap waiver program is capped at only 300 doctors — less than 1.5% of VA physicians — creating pay inequities, and said he is offering some recruits $300,000-$400,000 less than the open market0:41:041:42:51.

Topping said the FY2027 request includes $10.4 billion for construction, including $5 billion in deferred maintenance and $500 million to expand national cemeteries in four locations0:55:05.

Chair Boozman closed by having Collins clarify on the record that there are no current or planned VA facility closures in Maine2:05:32.

Metadata

CommitteeSenate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies
Chamber / CongressSenate · 119th Congress
Date2026-04-30
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript323 caption blocks · 16,743 words · 2:06:46 runtime
EventCongress.gov 338356