Federal Manager's Daily Report

The prohibition is to apply to those assigned to the central offices of each of the VA’s three main branches - VHA, VBA and NCA. Image: The Bold Bureau/Shutterstock.com

President Trump has signed into law S-423, which bars the VA from paying “critical skill incentive” payments those in the SES or other comparable position at the department’s central office.

That is a response to a 2023 IG report finding that executives had received $11 million intended for rank-and-file employees to help carry out the 2022 PACT Act, which expanded eligibility for veterans’ benefits related to exposure to toxins while in the military.

The prohibition is to apply to those assigned to the central offices of each of the VA’s three main branches–the Veterans Health Administration, the Veterans Benefits Administration, and the National Cemetery Administration–regardless of where the employee performs the functions of the position.

The bill specifies a review process for paying such incentives to SES employees and those at comparable levels who work elsewhere, and requires annual reporting to Congress on any such payments to them.

The bill also requires the VA to provide quarterly budget briefings to Congress that must include information on any budget shortfalls the VA may be experiencing and to lay out plans to address them. That is a reaction to requests the VA has made in recent years for supplemental funding requiring action by Congress outside the regular budget process.

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