Fight over VA toxic exposure funds could stall other vets legislation

Lawmakers finalized the government’s current fiscal year budget over the weekend, but not before they started worrying about the impact of veterans spending on next year’s funding package.

Ahead of the last-minute work on their final fiscal 2024 appropriations package, Republicans and Democrats sparred last week over potential future changes to how the Department of Veterans Affairs’ budget is handled, and whether inaction could tank any planned reforms for its operations.

At issue is the department’s Toxic Exposures Fund, created as part of the 2022 PACT Act to help cover the costs of the sweeping expansion of medical care and disability benefits in the legislation.

The administration has asked for $24.5 billion in TEF money for fiscal 2025, up from $20.2 billion this year. It represents more than 10% of all department mandatory spending, and is projected to continue at that size for years to come.