VA’s fiscal 2025 healthcare budget shortfall reduced to $6.6B

VA has revised its fiscal 2025 healthcare budget shortfall to $6.6 billion, nearly half its initial projection, according to FedNewsNetwork. The reduction follows cost-saving measures by the Veterans Health Administration (VHA), such as reduced reliance on payment incentives and deferred medical equipment purchases, which helped VHA stay within its fiscal 2024 budget while increasing care delivery by more than six percent.

The surge in demand stems from the PACT Act, which expanded benefits for veterans exposed to toxic substances. Since 2022, more than 800,000 new veterans have enrolled in VA care. To meet rising demand, VA seeks supplemental funding to hire 5,000 more healthcare workers and address increasing pharmaceutical costs. Despite budget control efforts, VA officials stress the need for additional funding to sustain record-breaking care delivery and ensure readiness for future needs.