Veterans’ Health Services Saved as VA Pauses Billions in Cuts

WASHINGTON (AP) — The Department of Veterans Affairs (VA) has halted billions of dollars in planned contract cuts following a backlash from lawmakers and veterans’ service organizations concerned about the impact on critical health services.

The suspension, announced Wednesday, affects hundreds of VA contracts that Secretary Doug Collins had described just a day earlier as consulting deals. These cuts were projected to save approximately $2 billion as the Trump administration sought to reduce federal spending.

“We will not be eliminating any benefits or services to Veterans or VA beneficiaries, and there will be no negative impact to VA health care, benefits, or beneficiaries. We are always going to take care of Veterans at VA. Period,” VA press secretary Pete Kasperowicz stated.

The Associated Press obtained a list of 875 contracts targeted for cancellation, revealing that the cuts would have impacted vital services, including cancer care, disability assessments, and programs addressing veterans’ toxic exposure. These cuts highlight the unintentional risks posed by the administration’s budgetary tactics.

One critical contract involved assessments that influence veterans’ disability ratings, which are essential for qualifying for medical care and compensation. An incorrect rating can severely restrict access to necessary care and financial support.

Additionally, a contract aimed at integrating data between the Pentagon, VA, and other agencies—for implementation of the Promise to Address Comprehensive Toxics (PACT) Act of 2022—was also in jeopardy. This legislation was designed to enhance veterans’ health care access and had already increased enrollment significantly.

Connecticut Democratic Sen. Richard Blumenthal expressed concerns during a joint House and Senate hearing with veterans’ service organizations, stating that these budget cuts would “harm veterans and taxpayers for years to come.”

In a VA internal email, officials indicated that the suspended contracts included services that, if terminated, would have halted chemotherapy and imaging services. Other targeted contracts supported essential radiation detection and cancer care management.

Former VA Secretary David Shulkin commented on the situation, mentioning that while the agency has grown and potential savings exist, the growth was necessary to accommodate increased veterans seeking care post-PACT Act. He emphasized the importance of thorough review to understand the full implications of these cuts.

Veterans’ advocates have demanded full transparency regarding the contracts affected. Rosie Torres, executive director of Burn Pits 360, voiced concern that sudden funding cuts for contractors performing vital functions such as claims processing would result in delays and disruption of essential services.

The Washington Post was first to report the cancellation plans before the VA’s suspension announcement.