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Senate Passes $2.9 Billion Emergency Veterans Funding Bill Amid Larger VA Shortfall

The Senate passed a $2.9 billion emergency funding bill to ensure veterans continue receiving their benefits, avoiding payment delays for now. However, the Department of Veterans Affairs (VA) is facing a larger financial challenge, with a projected $12 billion shortfall in the next year. This funding gap may become a major point of debate as Congress negotiates budget plans to prevent a potential government shutdown.

Lead Art: Senate Majority Leader Chuck Schumer speaks on a phone as he walks to his office at the U.S. Capitol Sept. 16, 2024. | Francis Chung/POLITICO

Senate Approves Emergency Veterans Funding

On Thursday, the Senate passed a nearly $2.9 billion emergency funding bill via voice vote. The legislation aims to prevent delays in veteran benefit payments for the coming weeks, ensuring veterans receive their due benefits by the first of the month. President Joe Biden is expected to sign the bill into law soon, as veterans rely on these funds for pensions, education, and other transition services.

Addressing Shortfalls in Veteran Benefits

The $2.9 billion measure includes $2.3 billion to cover military pensions and $600 million for readjustment services, which provide educational and training assistance to veterans as they transition from military to civilian life. These funds come in response to a sudden shortfall the Department of Veterans Affairs (VA) identified this summer, projecting a $15 billion funding gap until next fall.

Republicans have criticized the Biden administration, accusing it of budget mismanagement, as this shortfall was only brought to Congress’ attention recently. Despite this criticism, the bill passed with bipartisan support in both the Senate and House.

Investigations into VA Shortfall

The bill calls for an investigation into the VA’s budgetary mismanagement. The VA’s inspector general is tasked with determining the cause of the funding gap and reporting the findings back to Congress. This step aims to bring more clarity to the current financial crisis at the VA, which has been attributed to rising costs from expanding veteran services.

Looming $12 Billion Funding Gap

While this emergency bill addresses immediate concerns, the VA still projects a $12 billion shortfall over the next year. The VA’s funding crisis largely stems from a 2022 law that expanded benefits for veterans exposed to toxic substances, which significantly increased the department’s financial obligations. As Congress works to negotiate a stopgap plan to avoid a government shutdown in October, this funding gap could become a contentious issue in upcoming budget talks.

Future Budget Debates and Government Shutdown Concerns

The additional $12 billion the Biden administration seeks for the VA is expected to be a significant point of debate as lawmakers negotiate broader funding plans. If Congress fails to include this funding in the stopgap measures, the issue may resurface during the larger fiscal year budget negotiations. The potential for a government shutdown looms if these debates are not resolved in time.

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