In Washington, the Department of Veterans Affairs has put a temporary halt to billions in planned contract reductions due to concerns raised about potential negative impacts on crucial health services for veterans, according to statements from lawmakers and veterans service organizations on Wednesday.
The pause involves numerous VA contracts, which Secretary Doug Collins previously described as consulting deals slated for cancellation to save $2 billion amidst the Trump administration’s broader federal cost-cutting efforts.
Secretary Collins voiced his disapproval of paying consultants for tasks like creating PowerPoint slides and documenting meeting minutes, a sentiment he shared on social media. This viewpoint was endorsed by Elon Musk, who assists President Donald Trump in leading the Department of Government Efficiency (DOGE).
However, scrutiny of a partial list of contracts that were under threat of being canceled reveals that the planned reductions would have affected varied services, including cancer treatment and the assessment of toxic exposure. This points to the immediate and possibly unintended consequences of the administration’s sweeping budget cuts, which have stirred concerns among both Democrats and Republican lawmakers.
Some contracts facing cancellation were integral to veteran care, such as those involved in assessing disability ratings, essential for veterans’ medical coverage and financial compensation entitlements after military service. Inaccurate ratings could detrimentally affect veterans’ access to healthcare and financial support long-term.
The VA indicated through a statement that the review of these contracts is ongoing and no final decisions have been made.
“We will not cut veterans’ benefits or services and will ensure no negative outcomes in VA healthcare, benefits, or for beneficiaries. The VA’s commitment to veteran care remains unchanged,” VA press secretary Pete Kasperowicz affirmed in a statement.
An internal VA email revealed some of DOGE’s targeted contracts spanned beyond mere consultations; their termination could disrupt chemotherapy and imaging services, emergency generator tests, as well as pharmacy cleanliness and air quality assurance, according to the email.
Additional contracts, initially facing termination, included those critical to calibrating radiation detection tools, managing cancer care, and overseeing veterans cemetery operations. Moreover, the ability to evaluate toxic exposure was at risk since support contracts for research requests needed to authenticate service and toxic exposure events through national archives and other data sources would be impacted.
Several contracts were linked to the PACT Act, a bipartisan initiative passed by the Biden administration in 2022 designed to expand care for veterans. Following the law’s passage, more than 740,000 veterans enrolled for coverage, as noted in a September 2024 VA press release.
Former VA Secretary David Shulkin, who served during the Trump administration’s first term, acknowledged that while budget reductions may be necessary, the VA’s growth was partly driven by the PACT Act’s mandate to expand veteran care access.
“I believe it’s crucial to pause and understand the repercussions, even if they are unintended,” Shulkin told the media.
Veterans service groups called for clarity on which contracts were impacted by the proposed cuts.
“Critical services may face delays, denials, or interruptions if contractors’ funding for processing claims, conducting screenings, and expanding outreach is abruptly withdrawn,” stated Rosie Torres, executive director of Burn Pits 360. The organization advocates for veterans exposed to hazardous toxins from large-scale burn pits abroad, leading to respiratory illnesses and cancers.
During a joint House and Senate hearing with veterans’ service organizations, Sen. Richard Blumenthal from Connecticut brought attention to a list of affected contracts, which his office submitted for the congressional record.
These planned cuts, if implemented, could have adverse effects on veterans and taxpayers for years to come, Blumenthal warned in his statement.
