WASHINGTON, DC — Legislation calling for a $453 billion VA appropriation was advanced out of the House Appropriations Committee last month, making it the first FY2026 funding bill to reach that marker. Among other changes, it sharply increased funding for care provided outside of the VA healthcare system.
The bill passed over the strong objections of Democrats, who argued that any benefits from the minor funding increase will be diluted by the Trump administration’s staff cuts and efforts to push veterans out of VA and toward private care.
The bill was passed with appropriators still waiting on a full detailed budget from President Donald Trump and the Office of Management and Budget. The administration released a “skinny budget” in May that contained broad funding goals but not details about how exactly that money would be allocated.
Hashing out the Military Constructions, Veterans Affairs and Related Agencies Appropriations Act has historically been a less partisan endeavor, at least compared to other areas of the federal government. This one involved a heated 12-hour debate, ending in a vote of 36-27, generally along party lines.
Of the $453 billion, about $134 billion is discretionary funding—a 4% increase over FY2025 levels and $1 billion less than what the White House requested. Committee Republicans applauded the bill’s advancement, saying it fully funded veterans’ programs and maintained current funding levels for research and mental health programs, while also supporting Trump’s agenda by removing funding for diversity, equity, and inclusion initiatives and gender-affirming care and prohibiting VA from processing medical care claims for undocumented aliens.
“This legislation reflects some of our deepest values as a nation,” said Committee Chairman Tom Cole (R-OK).
According to committee Democrats, the funding increase is more than negated by the increase in money being funneled into paying for community care, which they characterized as Republicans’ back-door way of privatizing veterans’ healthcare. The new budget funds community care at $33 billion—a 50% increase from the $22 billion FY2025 level.
“In 2024, veteran trust in VA healthcare rose to a record 92%, and we should build on this success, not kick veterans to an already crowded private market,” Rep. Debbie Wasserman-Schultz (D-FL), ranking Democrat on the committee, said during the mark-up. “I understand there’s a need for community care, especially for rural and specialty care. However, countless studies show that, when veterans seek care at private hospitals and clinics, they wait longer to see providers and get worse care. … We should invest more in VA provider recruitment and retention incentives, increase benefits counselors and adjudicators, not ignore veterans’ wishes and speed recklessly into privatization.”
Democrats also criticized the bill’s lack of any checks and balances against VA Secretary Douglas Collins’ stated goal of reducing the department’s workforce by as many as 80,000 employees.
“There is absolutely no way the secretary can achieve his goal without it having an impact on the healthcare provided to our veterans,” argued Wasserman-Schultz. “It’s not just medical professionals who assure veterans and receive quality care at VA. It’s everyone who makes a CBOC or a hospital run. Does this administration really believe the arbitrary firing culture it’s creating at VA will make it an attractive place to work? No one wants to work at a place where the threat of firing for no reason looms over their head every day.”
Wasserman-Schultz offered an amendment to the bill that would have blocked any mass firings without Congress’s approval. The amendment was voted down.
The bill also included $2.5 billion for the electronic medical records modernization program, more than double the amount allocated this year and $1 billion less than the White House’s request. The program has been mostly dormant for the past two years, but Collins has said he plans to restart the system rollout in 2026.
The bill also included a number of riders specifying what VA cannot spend money on. These include any reinstatement of mandatory COVID vaccinations for staff; funding abortion except in the case of rape, incest or if the pregnancy is deemed a risk to the mother; or reporting a veteran as mentally unfit and a danger to himself or others without a judge’s approval. This last rider was praised by Republicans as a victory in protecting the Second Amendment rights of veterans, whose firearms may be taken away if they are deemed mentally unwell and at risk for suicide.
Both Republicans and Democrats acknowledged that the budget bill will almost certainly evolve over the coming weeks, as the Senate conducts its own debates and the Trump administration fleshes out its skinny budget.


