AIVA Secretary Collins defends FY2027 budget amid community care fight

VA Budget and ModernizationSenate Veterans' Affairs · 2026-05-20 · 119th Congress
The Senate Veterans' Affairs Committee held this hearing to examine the Department of Veterans Affairs' $488.2 billion fiscal year 2027 budget request and fiscal year 2028 advance appropriations, focusing heavily on the balance between VA direct care and outsourced community care. Begins at 0:16:56
Transcript
Highlights

Title

VA Secretary Collins defends FY2027 budget amid community care fight

Purpose

The Senate Veterans' Affairs Committee held this hearing to examine the Department of Veterans Affairs' $488.2 billion fiscal year 2027 budget request and fiscal year 2028 advance appropriations, focusing heavily on the balance between VA direct care and outsourced community care. VA Secretary Douglas Collins, in his first appearance as a veteran himself following his May 16 retirement, testified alongside Chief Financial Officer Richard Topping and faced sharp bipartisan questioning on staffing cuts, claims backlogs, and community care spending trends. Begins at0:16:56

Who spoke

Chair Jerry Moran (R-KS)0:16:56: Opened by pressing for clarity on the VA's shift to a two-account (direct care/community care) budget structure0:35:41 and later presented a chart showing community care spending growing far faster than direct care, plus 40,000 VHA job losses since 2025 including 1,500 doctors and 4,500 nurses1:32:441:33:14; asked Collins directly whether there was any intention to gradually privatize VA care1:34:32.

Sen. Richard Blumenthal (D-CT), Ranking Member0:19:43: Warned that expiring community care growth ($17 billion FY28 increase vs. near-flat direct care) threatens VA facility quality0:23:08; cited a 77% increase in appeals and 11% increase in denials0:26:25 and $23 million in medical research cuts0:24:21; later pressed on VA home foreclosure prevention program cancellation2:07:52 and $20 million research cuts2:11:09, and noted no Democrats had been invited on Collins' state visits2:14:24.

Sec. Douglas Collins, VA Secretary0:28:48: Said the claims backlog dropped from 260,000 to 75,000 with 94% accuracy0:31:36; disputed Blumenthal's appeals figures, saying Board of Veterans Appeals numbers actually dropped to 102,0000:42:08; cited 71 bidders (versus 2 previously) for the new community care contract0:49:18; said VA spends double on direct care versus community care0:33:09; committed to the partial claim mortgage program launching June 152:09:44.

Mr. Richard Topping, VA Chief Financial Officer0:36:50: Explained the proposed account restructuring separates administrative, contract, and purchased-care costs to enable apples-to-apples comparisons0:37:18; detailed the $1.3 billion Manchester, NH replacement facility without inpatient beds0:48:08; defended the FY27 research budget as reflecting a $43 million (1.5%) trim tied to accountability reforms2:12:21.

Sen. Marsha Blackburn (R-TN)0:47:55: Asked about community care contract modernization and praised the 71-bidder network expansion0:48:48; highlighted her Women Veterans Specialty Care Access Act and asked about closing coverage gaps for female veterans0:52:22.

Sen. Patty Murray (D-WA)0:54:34: Pressed Collins on the VA's failure to implement the 2020 Veterans Health Care Improvement Act's child care mandate, noting only $1 million of $22 million appropriated was used0:55:04; cited 90-day mental health wait times and a VA nurse with 3,200 patients0:56:430:58:18.

Sen. Tommy Tuberville (R-AL)1:01:40: Raised physician pay caps limiting recruitment of specialists like oncologists, costing $300,000-$400,000 below market1:04:15; questioned Collins on electronic health record interoperability problems with community care providers1:04:29.

Sen. Mazie Hirono (D-HI)1:07:44: Pressed on the $105 million cut to the State Home Construction Grant Program affecting a Maui project1:08:12; raised VA care obligations to veterans from Compact of Free Association nations (Palau, Micronesia, Marshall Islands)1:09:19; flagged stalled contracts with the University of Hawaii's Center for Pacific Islander Veterans1:13:18.

Sen. John Boozman (R-AR)1:15:15: Asked whether FY27 funding sufficiently accelerates the EHR rollout1:15:43 and how community care supports rural providers, noting Arkansas received $613 million1:17:35.

Sen. Tammy Duckworth (D-IL)1:18:49: Sharply criticized the 17% community care increase versus 2.8% direct care increase as inflation-adjusted cuts1:20:02; said Collins was three months late delivering a promised direct-care investment plan under oath1:21:29; accused the administration of pursuing privatization to benefit donors1:21:58.

Sen. John Hoeven (R-ND)1:24:58: Pushed back on privatization framing, defending community care's role in keeping rural hospitals open1:25:16; asked about a February community nursing facility payment system change and domestic medical equipment procurement1:25:401:27:50.

Sen. Tim Kaine (D-VA)1:30:05: Sought a bipartisan cosponsor on physician pay cap legislation1:30:31; noted the 300-waiver Elizabeth Dole Act fix covers only 1.5% of doctors1:31:16.

Sen. Jim Banks (R-IN)1:39:23: Thanked Collins for prioritizing the new Indianapolis VA medical center1:39:23; asked about the advantages of full up-front ("all in") construction funding versus incremental funding, which Collins said inflates costs from $1 billion to $2 billion over time1:43:071:43:50.

Sen. Maggie Hassan (D-NH)1:46:23: Challenged Collins/Topping on whether the proposed Manchester facility fulfills Trump's executive order promise of a "full-service" hospital, since it lacks inpatient beds1:47:141:48:49; raised concern about reliance on a civilian health system facing $2.3 billion in NH Medicaid cuts1:50:15.

Sen. Mark Kelly (D-AZ)1:53:25: Asked about VA investment in psychedelic-assisted PTSD therapies including MDMA treatment1:53:48; pressed for a firm commitment that the new Yuma, AZ facility opens fully staffed by 20271:57:12.

Sen. Bernie Sanders (I-VT)1:58:35: Asked about delayed timelines (to 2029) for two Vermont CBOC clinics1:58:35; argued dental care should be part of standard VA health care, not limited to service-connected conditions2:00:03.

Sen. Angus King (I-ME)1:30:052:01:19: Sought a cosponsor for physician pay legislation1:30:31; praised new CBOC facilities in Maine including its oldest VA hospital2:01:19.

Key moments

Collins and Blumenthal clashed directly over appeals data: Blumenthal cited a 77% increase in appeals and pending appeals rising from 66,028 to 117,1670:41:321:02:53, while Collins insisted Board of Veterans Appeals numbers had actually dropped to 102,0000:42:08.

Duckworth accused Collins of being three months late on a promised $2 trillion direct-care investment plan given under oath in February, prompting Collins to declare "the political speech is over. We are done."1:21:291:24:58.

Moran presented a chart showing community care spending growing much faster than direct care and 40,000 VHA job losses since 2025 (including 1,500 doctors, 4,500 nurses), asking Collins point-blank whether there's any intent to gradually privatize VA care; Collins said no1:32:441:34:321:34:43.

Murray relayed an account from a VA nurse who had 3,200 patients and would "look at her screen and start crying"; Collins responded that clinical staff should escalate concerns "up the chain," prompting Murray to push back that she was telling him directly0:58:180:59:030:59:26.

Collins revealed VA facilities can't currently share records with each other due to a $700 million/year legacy records system he compared to 1990s dial-up internet1:04:531:05:21.

Hassan pressed Topping on whether the proposed Manchester, NH facility—lacking inpatient beds—fulfills Trump's executive order promise of a "full-service" hospital; Topping confirmed it has no inpatient/overnight beds due to low utilization1:47:431:49:25.

Sanders' questioning drew Collins' agreement that dental care "always has been" part of health care, though VA dental remains limited to service-connected veterans1:59:542:00:00.

Blumenthal noted more than 15,000 veterans lost their homes since the VA ended its foreclosure-prevention purchase program in May 2025 without consultation, with 90,000 more at risk; Collins committed the replacement Partial Claim Program will launch June 152:07:522:08:252:10:41.

Collins disclosed physicians are capped at presidential pay levels, preventing recruitment of specialists like oncologists who can earn $300,000-$400,000 more elsewhere1:04:15, while noting a prior 300-waiver fix covers only 1.5% of doctors1:31:16.

Blumenthal noted only Republican senators had joined Collins on recent state visits (Arizona, Wisconsin, Colorado, Pennsylvania, North Dakota, New York); Collins disputed the characterization2:14:242:15:23.

Metadata

Official titleHearings to examine the President's proposed budget request for fiscal year 2027 and 2028 advance appropriations requests for the Department of Veterans Affairs.
CommitteeSenate Veterans' Affairs
Chamber / CongressSenate · 119th Congress
Date2026-05-20
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript388 caption blocks · 17,755 words · 2:18:17 runtime
EventCongress.gov 338415