VA's budget for fiscal year 2017

On Feb. 9, President Barack Obama released his proposed fiscal year (FY) 2017 federal budget. The deadline for passage of FY 2017 appropriations is Sept. 30, 2016.

Presented below is a brief outline of funding levels in a number of accounts in the Department of Veterans Affairs (VA).

Medical care. For the upcoming fiscal year, which begins on Oct. 1, 2016, the discretionary funding for VA medical programs would be set at $65 billion, an increase of 6.3 percent over the current year. In addition, a total of $66.4 billion in advance appropriations for FY 2018 was proposed. The following is included in the medical care programs:

  • $8.5 billion for veterans long-term care;

  • $7.2 billion for veterans care in the community program;

  • $7 billion to continue VA's focus on expanding and transforming mental health service for veterans, including treatment for post-traumatic stress and treatment for military sexual trauma; 

  • $1.5 billion for life-saving Hepatitis c treatments and clinical research; and

  • $725 million to support more than 36,600 veterans' caregivers. 

Benefits claims processing. The budget would fund the Veterans Benefits Administration at $2.8 billion, an increase of $118.4 million. This amount supports various VA programs to decrease the burgeon benefit claims backlog, including the hiring of additional claims processing and fiduciary examiners.

Information technology (IT): The budget would assign $4.3 billion for VA’s IT programs, an increase of $145 million. This includes cyber security and supports delivery of veterans’ medical care and benefits. It also supports activities aimed at developing an electronic health record to better serve veterans, servicemembers and eligible beneficiaries.

Veteran homelessness. The budget requests $1.6 billion for VA homeless-related programs, including case management support for the Department of Housing & Urban Development-VA Supportive Housing program, the Grant and Per Diem program, VA justice programs, and the Supportive Services for Veteran Families program.

National Cemetery Administration. The agency would receive $286 million for its operations and maintainence, an increase of 5.5 percent. This funding supports construction of two new national cemeteries in Colorado and western New York, as well as the expansion of national cemeteries in Jacksonville, Fla., and South Florida.

Medical and prosthetic research. The budget would allocate $663 million for this account, an increase of $32 million above current year allocations. Further, medical research will receive an additional $1.2 billion from VA’s medical care program and grants.

Construction grants. These programs – to support construction of state veterans’ homes and state veterans’ cemeteries – would receive a total of $125 million under the administration’s proposal. The American Legion continues to seek increased funding for these twin programs, which have essentially been flatlined for a number of years.