VA Budget Shortfall Accountability Act
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The VA Budget Shortfall Accountability Act requires the Government Accountability Office to review and report on the causes of funding shortfalls in the Veterans Benefits Administration for FY2024 and the Veterans Health Administration for FY2025, and to conduct follow-up reviews annually for five years.
The law responds to concerns about VA budget management by establishing a recurring oversight mechanism, directing the VA Secretary to forward each GAO report to the congressional committees responsible for veterans affairs and appropriations.
What this law does
What it does
The law requires the Comptroller General (head of the Government Accountability Office) to begin, within 30 days of enactment, a review into the circumstances and causes of the funding shortfall in the Veterans Benefits Administration for FY2024 and the expected shortfall in the Veterans Health Administration for FY2025. The review must examine monthly obligations and expenditures compared against VA's spending plan, any account transfers, reasons for significant diversions from that plan, the accuracy of relevant projections, and potential remedial actions the VA Secretary could take to improve budget accuracy and prevent future shortfalls. GAO must submit a written report to the VA Secretary within 30 days of completing the review.
The law also establishes five subsequent annual GAO reviews covering VA funding for the most recent completed fiscal year, with the same reporting requirements. The VA Secretary must forward each GAO report to the House and Senate Committees on Veterans' Affairs and the Committees on Appropriations within 30 days of receipt.
Key provisions
- 1Requires GAO to begin, within 30 days of enactment, a review into the causes of the FY2024 VBA funding shortfall and the expected FY2025 VHA funding shortfall.
- 2Specifies review elements: monthly obligations vs. spending plan, account transfers, reasons for diversions, accuracy of projections, and remedial actions available to the VA Secretary.
- 3Requires GAO to submit a written report to the VA Secretary within 30 days of completing each review.
- 4Requires annual GAO reviews of VA funding for each of the five calendar years following enactment, using the same elements and reporting requirements.
- 5Requires the VA Secretary to transmit each GAO report to the House and Senate Committees on Veterans' Affairs and Committees on Appropriations within 30 days of receipt.
Who is affected
The Department of Veterans Affairs and its two major sub-agencies — the Veterans Benefits Administration and the Veterans Health Administration — are the primary subjects of the reviews. The GAO must conduct the reviews, and the VA Secretary must transmit findings to Congress. Veterans who depend on VA health care and benefits could be affected indirectly if the reviews prompt changes to how VA manages its budget.
Why it matters
If the GAO reviews surface systemic problems in how VA projects and manages its budgets, the findings could prompt Congress or the VA Secretary to implement reforms that prevent future funding gaps. Such gaps have previously threatened timely delivery of health care and disability compensation to veterans, making the oversight mechanism directly relevant to veterans' access to benefits.
What changed
Agencies directed to act
Effective dates
- GAO must begin the first review
- GAO must submit first report to VA Secretary
- VA Secretary must submit GAO reports to Congress
- Subsequent annual GAO reviews run for five calendar years
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 1823 would cost less than $500,000 over the 2025–2029 period, with no effect on direct spending, revenues, or the deficit.
H.R. 1823 would require the Government Accountability Office (GAO) to study and report to Congress on the causes of funding shortfalls in VA accounts for health care, disability compensation, and education benefits in 2024 and 2025, and then report annually for five years on VA's spending plans and deviations from them. CBO estimates these reporting activities would cost less than $500,000 over the 2025–2029 period, and that spending would depend on funds being appropriated (i.e., it is discretionary, not automatic). The bill would have no effect on direct spending (mandatory outlays), revenues, or the federal deficit, and CBO found no intergovernmental or private-sector mandates.
How it works
GAO must begin the first review within 30 days of the January 20, 2026 enactment date and submit its written findings to the VA Secretary within 30 days of completing that review. The VA Secretary then has 30 days to forward the report to four congressional committees. The cycle repeats annually for five calendar years, with each subsequent GAO review covering the most recently completed fiscal year. No rulemaking is required; the obligations are self-executing statutory directives to the Comptroller General and the VA Secretary.
Legislative status & sources
Latest action
Became Public Law No: 119-71.
Official CRS summary
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This act requires the Government Accountability Office (GAO) to review and report on the circumstances and causes of the shortfall in funding of the Veterans Benefits Administration for FY2024 and the expected shortfall in funding of the Veterans Health Administration in FY2025. The Department of Veterans Affairs must submit such GAO report to Congress. For each of the five fiscal years following the date of enactment of this act, GAO must conduct subsequent reviews and reports regarding the funding of the VA.
Legislative subjects
Armed Forces and National Security; Congressional oversight; Department of Veterans Affairs; Executive agency funding and structure; Government information and archives; Government studies and investigations; Veterans' medical care; Veterans' pensions and compensation
Committee report
H. Rept. 119-101