Despite a massive scandal where senior executives at the U.S. Department of Veterans Affairs (VA) pocketed millions in recruitment incentives, a new legislative package now threatens to loosen the purse strings even further. This proposed legislation would allow the VA to bypass existing caps on pay, triggering serious concerns about the VA’s commitment to fiscal responsibility.
Under the proposed Veterans Health Administration Leadership Transformation Act, outlined in Section 142 and introduced by Representative Frank Mvran (D-IN), Congress would “authorize the Secretary to have some flexibility in compensating . . . specified professionals, notwithstanding certain pay limitations. This includes the ability to pay awards, recruitment or relocation bonuses, retention allowances, incentives or bonuses, and earning from fee-based appointments.”
This legislation seems poised to again provide senior VA officials with unchecked financial privileges—a maneuver likely aimed at appeasing Democratic lobbyists and public sector unions such as the American Federation of Government Employees (AFGE). In 2023, the AFGE spent over two million dollars on lobbying efforts and directed 95.26% of its $1,987,079 in political contributions to Democrats in 2022, according to Open Secrets, the nation's premier research group tracking money in U.S. politics and its effect on elections and public policy.
Moreover, the bill proposes not just future payments outside existing pay limitations but also retroactive financial adjustments. It would “give the Secretary authority to pay retroactive compensation to covered employees for periods where compensation was deferred due to exceeding caps on annual compensation between January 8, 2006, and ending December 31, 2017.” Notably, it specifies that “Compensation authorized under this subsection shall not be included in the calculation of any aggregate limit on compensation for a covered employee for the year in which it is paid.”
Simply put, it’s raining money at the VA—for those in the ‘correct’ socioeconomic status and party.
This expansive financial discretion provided by the Veterans Health Administration Leadership Transformation Act seems designed not just for practical adjustments, but potentially as a boon for those well-connected within the system. As the legislation rolls out, concerns mount about its capacity to perpetuate disparities within the ranks of VA leadership, ensuring that those who already hold power can secure even more, under the guise of flexibility and need.
Unsurprisingly, this sweeping move has garnered strong support from Democratic Senator Jon Tester, Chairman of the Senate’s Veterans Affairs Committee and a crowd favorite among the predominantly Democratic members of the AFGE entrenched in the VA system. For his efforts, Tester received $2,500.00 directly from the AFGE in 2022 and continues to receive contributions from AFGE members this year.
Tester is running a difficult reelection campaign in the deep-red state of Montana, where polling strongly opposes President Joe Biden. Among the candidates Tester faces are Republican Tim Sheehy, a former Navy SEAL originally from Minnesota, and Libertarian Sid Daoud, an Army veteran.
According to Andy Surabian, chief strategist for More Jobs, Less Government, “No matter how much Jon Tester attempts to fool Montanans into believing that he is some sort of ‘moderate,’ there is no running from his pro-Biden, left-wing record on the border.” Tester’s attempt to provide carte blanche to his Democratic union allies in the VA system will arguably not help his reelection bid—as the U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) has already directed the Office of General Counsel’s Ethics Specialty Team, in collaboration with Secretary of Veterans Affairs Denis Richard McDonough, to rigorously investigate any potential ethics violations or conflicts of interest among those who managed the distribution of critical skill incentives.
This free-money legislative package only adds to recent calls for both VA Undersecretary for Health Shereef Elnahal and Undersecretary for Benefits Joshua Jacobs to resign from their positions immediately.
Russ Duerstine, Executive Director of Concerned Veterans of America, about the misuse of funds meant to help veterans, stated, “In light of the recent bonus scandal, the message to Secretary McDonough and VA leadership is clear: VA officials must be held fully accountable for their actions. We’re calling for both Undersecretary Elnahal and Jacobs to resign from their positions immediately. Leaders who do not honor the public trust need to be held accountable. At a minimum, veterans deserve to feel confident that the VA system can allocate funds properly.”
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