VA Shifts Funds to Pay for Health Care

Secretary of Veterans Affairs R. James Nicholson notified Congress Dec. 19 that he was transferring $250 million from construction and maintenance in order to pay for medical care costs for veterans. His letter suggested that, if Congress doesn’t provide more money, Nicholson might have to shift additional funds. In the short term, the initial shift will be reflected in delays in facility maintenance, but if VA funding remains flat-lined beyond mid-February, the department might have to place a freeze on hiring. This would prevent scheduled hiring of additional claims workers to reduce the buildup of pending claims. The administration had requested a $2.8 billion increase for health care in 2007, to be used for mental health and long-term care programs as well as medical care for veterans of the Iraq and Afghanistan wars.