Last year, staff members at the Department of Veterans Affairs (VA) made over $1.3 billion in payment errors related to benefits, but watchdog officials described this as progress. During a House Veterans’ Affairs Committee oversight hearing, Brent Arronte, the department’s deputy assistant inspector general, expressed optimism about the direction the VA is heading, highlighting improvements in their processes and the substantial reduction in improper payments since fiscal 2018, which has decreased nearly 85%.
The errors, comprising both overpayments and underpayments, amounted to less than 1% of the more than $161 billion disbursed in 2024. Rep. Morgan McGarvey pointed out that these mistakes can still pose a financial burden for both the department and taxpayers, especially given the current emphasis from the White House on efficiency and waste reduction.
Nina Tann, the executive director of compensation service at the Veterans Benefits Administration, indicated that the VA aims to lower the number of improper payments through further automation and streamlined processes. However, some errors are challenging to mitigate, particularly those stemming from delayed beneficiary status reports, such as deaths or changes in living situations, which can result in continued payments to ineligible individuals.
Lawmakers stressed the importance of maintaining effective payment controls. Rep. Morgan Luttrell underlined the negative impacts of overpayment on veterans living paycheck to paycheck, stating, “The worst thing you can do is overpay a veteran and then tell them they have to give it back.” VA officials have the authority to forgive repayments in certain situations, and they are working on finalizing updated procedures for these cases, as they currently recover about half of the overpayment mistakes.
Furthermore, Arronte noted challenges with establishing benefit effective dates, particularly for claims related to toxic exposure, which have only recently become eligible for benefits. He indicated that more efforts are necessary to ensure payment accuracy.
The VA is actively working to enhance communication with veterans to facilitate timely updates to their records and minimize future errors. Lawmakers emphasized the necessity for the VA to be diligent stewards of taxpayer money, ensuring that veterans receive the correct benefits they’ve earned consistently.
This ongoing commitment to improvement reflects a hopeful outlook for the VA, indicating a proactive approach to addressing the complexities of benefits administration for veterans and ensuring financial accuracy moving forward.