A Nearly $3 Billion Shortfall in VA Benefits Is Looming. The Senate Has Proposed a Fix, But Time Is Running Out

Seeking to avoid a disruption in veterans benefits payments later this year, a bipartisan group of senators has introduced a bill to fix a nearly $3 billion shortfall for disability and education benefits the Department of Veterans Affairs expects to face by October.

The movement in the Senate to shore up VA benefits accounts comes as VA Secretary Denis McDonough responded to a key House chairman's demand for more information on the budget shortfall by the lawmaker's deadline, but it's unclear whether that will be enough to stave off a subpoena.

Both developments revolve around a roughly $15 billion budget shortfall the VA told Congress earlier this month it now projects to face this year and next. The budget gap includes $2.9 billion for disability and education benefits this fiscal year and $12 billion for medical care next fiscal year.