U.S. Department of Veterans Affairs Fiscal Year Budget Briefing

Key Chapter Title List

1. Overview
2. Department of Veterans Affairs Funding Overview
3. Fiscal Year 2026 Budget Request
4. Mandatory Funding Details
5. Healthcare Services and Community Care
6. Veterans Benefits and Support Programs
7. Infrastructure Construction and Modernization Investments
8. Information Technology and Electronic Health Record Modernization
9. Budget Execution and Expected Outcomes
10. Historical Funding Trend Analysis

Document Introduction

This report provides an in-depth analysis and interpretation of the Fiscal Year 2026 budget brief submitted by the U.S. Department of Veterans Affairs (VA) to Congress. The core context of the report is the Trump administration's commitment to balancing the budget while providing necessary funding for key non-defense discretionary priorities, including veterans, their families, caregivers, and survivors. The Fiscal Year 2026 President's Budget request and the Fiscal Year 2027 advance appropriations request for healthcare aim to provide veterans with the world-class healthcare and benefits they deserve.

The total budget request is $441.2 billion, covering discretionary and mandatory funding, representing an increase of $40.3 billion (10%) over the Fiscal Year 2025 enacted level. Of this, the discretionary budget request is $134.6 billion, an increase of $5.3 billion (4%) over Fiscal Year 2025. Combined with $52.7 billion from the mandatory Toxic Exposure Fund (TEF) for operational needs, the total request for operational requirements is $187.2 billion. Additionally, the discretionary Recurring Expenses Transformational Fund (RETF) will provide $0.9 billion for major construction projects. The mandatory benefits funding request is $248.1 billion, an increase of $11.7 billion (5%) over Fiscal Year 2025. The Department of Veterans Affairs expects to support 455,874 full-time equivalent positions in Fiscal Year 2026.

The core priorities and resource allocation of the budget reflect clear policy direction. First, the budget increases funding for healthcare services tailored to meet the personalized needs of veterans, covering VA Medical Centers and community care. Second, the budget prioritizes care for the most vulnerable veteran populations, including those experiencing homelessness and veterans at risk of suicide. Third, the budget accelerates the Electronic Health Record Modernization (EHRM) program, aiming to upgrade the Department's outdated legacy systems to a modern, interoperable system compatible with the Department of Defense and other federal and community healthcare partners. Finally, the budget reduces funding for non-essential programs and bureaucratic administrative expenses that do not directly serve veterans.

At the specific program level, the Fiscal Year 2026 budget request aims to ensure the VA fulfills its commitment to providing timely, world-class healthcare and earned benefits to veterans. This request fully funds the operation of the nation's largest integrated healthcare system, with over 9.2 million veterans expected to be enrolled for care in 2026. The budget will also provide disability compensation to over 7 million veterans and their survivors, and manage pension benefits for over 200,000 veterans and their survivors. Other key support areas include: treating an estimated 7.5 million unique patients, completing 162.6 million outpatient visits, investing $3 billion in construction, providing education assistance programs to over 1.1 million trainees, offering Veteran Readiness and Employment benefits to over 189,000 veterans, managing a loan guaranty service portfolio of 4.2 million active housing loans, and the National Cemetery Administration expecting to inter 135,394 veterans and eligible family members.

The funding allocation structure shows that discretionary funds are primarily directed to medical programs (87.5%), benefits programs (3.0%), information technology (4.2%), Electronic Health Record Modernization (2.5%), construction (1.7%), and other areas (1.1%). Details on mandatory funding indicate that the majority will be used for compensation and pensions, with plans to pay over $220.3 billion in disability compensation to over 7 million veterans and their survivors, and $3.1 billion in pensions to over 200,000 veterans and their survivors. Re-adjusted benefits funding will provide $16.2 billion for education and training assistance.

Overall, this budget request signifies a significant increase in VA funding since 2022, with a total increase of $167.4 billion (61.1%). The report emphasizes that the VA will continue to collaborate with federal, state, local partners, and Veterans Service Organizations to utilize the requested funds in the most effective manner, reaffirming its core mission of putting veterans first by providing the best possible care and services to veterans, families, caregivers, and survivors.