VA Revises 2025 Budget Shortfall Request to $6.6 Billion

The VA told Congress it only needs $6.6 billion more in funding for fiscal year 2025, much less than the $12 billion it initially said it would require. The updated request aims to deal with rising medical care costs and delayed technology upgrades by using $2.5 billion in savings from 2024.

VA's Under Secretary for Health, Dr. Shereef Elnahal, explained that the change happened because of more accurate estimates of labor costs and more people using VA-provided care, which led to less reliance on outside providers. "We have given veterans more options; many have chosen to stay under VA treatment," he added.

Several support groups are worried that there aren't enough referrals to doctors who aren't VA employees, but Elnahal stressed that the standards for eligibility will not change. "Offering veterans more options is simply the right thing to do," he stated.

The VA's new estimates come at a time when both Democrats and Republicans are unhappy with mistakes in the budget. When the office said there wasn't enough money, lawmakers questioned it, but things have changed a lot since then.

Elnahal said that the VA is looking at its processes independently and needs to plan its budget better. He pushed Congress to accept the money by December 20 so veterans could get treatment quickly and without waiting for service interruptions.

Elnahal said, "We need the resources now to maintain capacity and address growing demand."