Senate clears $3B veterans funding patch amid larger shortfall

The Senate passed a nearly $2.9 billion emergency funding bill by voice vote on Thursday to keep veterans benefits flowing over the next few weeks, as the Department of Veterans Affairs warns of a far greater funding hole.

With President Joe Biden’s likely signature, the measure is expected to head off payment delays for benefits veterans are expecting by the first of the month.

While the bill passed both the House and Senate with bipartisan support, Republicans have accused the Biden administration of budget “mismanagement” and chided the VA for suddenly warning lawmakers this summer of a $15 billion shortfall through next fall.

Bill breakdown: The measure includes about $2.3 billion in extra cash for military pensions and almost $600 million for “readjustment” services meant to ease the transition from military duty to civilian life, including education and training.

The bill also orders the VA’s inspector general to investigate the cause of the shortfall and report back to Congress.

What’s next: The VA still anticipates a funding gap of about $12 billion over the next year, as the department continues to serve more veterans and provide extra benefits following a 2022 law that expanded benefits for veterans exposed to toxic substances.

That extra funding could become a flash point in negotiations this month as lawmakers hatch a stopgap plan to head off a government shutdown come Oct. 1. If Congress doesn’t include the extra $12 billion the Biden administration is seeking, the VA funding debate is then expected to spill into “topline” funding negotiations when congressional leaders hash out overall totals for the fiscal year about to kick off.