The Department of Veterans Affairs (VA) has temporarily suspended billions of dollars in planned contract reductions after lawmakers and veterans’ organizations raised concerns that the cuts would harm critical health services for veterans.
The pause affects hundreds of VA contracts, which Secretary Doug Collins had described a day earlier as nonessential consulting agreements. He claimed their cancellation would save $2 billion as the Trump administration pushes for widespread federal spending cuts.
“No more paying consultants to do things like make PowerPoint slides and write meeting minutes!” Collins posted on X Tuesday. His comment was later praised by Elon Musk, President Donald Trump‘s cost-cutting chief at the Department of Government Efficiency (DOGE).
Why It Matters
The VA has recently fired 1,400 staff after its first round of layoff terminated 1,000 employees on February 13, sparking anger from lawmakers.
The Trump administration’s effort to cut jobs is part of a broader push to reshape the federal workforce.
What To Know
A reviewed list of the affected VA contracts revealed that the cuts would have impacted essential services, including cancer care and toxic exposure assessments. The findings highlight the unintended consequences of the administration’s broad cost-cutting efforts, drawing bipartisan concern from both Republican and Democratic lawmakers.
Some contracts slated for elimination directly impact veterans’ care, including evaluations for disability ratings, which determine medical coverage and financial compensation for service-related injuries. An inaccurate rating could have long-term effects on a veteran’s access to healthcare and benefits.
In response, the VA issued a statement clarifying that its contract review is still ongoing and not final.
An internal VA email, obtained by The Associated Press, revealed that DOGE targeted contracts broadly labeled as ‘consulting,’ but included agreements essential for chemotherapy, imaging services, radiation detection calibration, emergency generator testing and pharmacy air quality assessments.
Many of the affected contracts were linked to the PACT Act, a bipartisan law passed in 2022 under the Biden administration, designed to expand healthcare access for veterans. Following its passage, over 740,000 veterans enrolled for healthcare benefits, requiring a larger VA workforce to meet demand.
What People Are Saying
VA press secretary Pete Kasperowicz said in a statement: “We will not be eliminating any benefits or services to Veterans or VA beneficiaries, and there will be no negative impact to VA health care, benefits, or beneficiaries. We are always going to take care of Veterans at VA. Period.”
Former VA Secretary David Shulkin, who served under Trump during his first term, stressed to the AP that hasty cuts without evaluating consequences could be damaging: “Slowing down and pausing to see what the consequences are, even if they are unintended consequences, is important to do.”
Rosie Torres, executive director of Burn Pits 360, told the AP: “With funding suddenly stripped from contractors processing claims, conducting medical screenings and expanding outreach, there are growing concerns veterans will face delays, denials and disruptions in accessing critical services.”
Torres’ group advocates for veterans suffering from severe respiratory illnesses and cancers caused by exposure to toxic airborne particles from massive trash-burning fires at overseas military bases.
Connecticut Democratic Sen. Richard Blumenthal said in a statement: If carried out, these cuts “will harm veterans and taxpayers for years to come.”
What Happens Next
While the specific outlook for the VA is unclear, it is expected that more employees in the federal workforce will be laid off as the Trump administration looks to slash costs.
The Department of Veterans Affairs (VA) has temporarily suspended billions of dollars in planned contract reductions after lawmakers and veterans’ organizations raised concerns that the cuts would harm critical health services for veterans.
The pause affects hundreds of VA contracts, which Secretary Doug Collins had described a day earlier as nonessential consulting agreements. He claimed their cancellation would save $2 billion as the Trump administration pushes for widespread federal spending cuts.
“No more paying consultants to do things like make PowerPoint slides and write meeting minutes!” Collins posted on X Tuesday. His comment was later praised by Elon Musk, President Donald Trump‘s cost-cutting chief at the Department of Government Efficiency (DOGE).
Why It Matters
The VA has recently fired 1,400 staff after its first round of layoff terminated 1,000 employees on February 13, sparking anger from lawmakers.
The Trump administration’s effort to cut jobs is part of a broader push to reshape the federal workforce.
What To Know
A reviewed list of the affected VA contracts revealed that the cuts would have impacted essential services, including cancer care and toxic exposure assessments. The findings highlight the unintended consequences of the administration’s broad cost-cutting efforts, drawing bipartisan concern from both Republican and Democratic lawmakers.
Some contracts slated for elimination directly impact veterans’ care, including evaluations for disability ratings, which determine medical coverage and financial compensation for service-related injuries. An inaccurate rating could have long-term effects on a veteran’s access to healthcare and benefits.
In response, the VA issued a statement clarifying that its contract review is still ongoing and not final.
An internal VA email, obtained by The Associated Press, revealed that DOGE targeted contracts broadly labeled as ‘consulting,’ but included agreements essential for chemotherapy, imaging services, radiation detection calibration, emergency generator testing and pharmacy air quality assessments.
Many of the affected contracts were linked to the PACT Act, a bipartisan law passed in 2022 under the Biden administration, designed to expand healthcare access for veterans. Following its passage, over 740,000 veterans enrolled for healthcare benefits, requiring a larger VA workforce to meet demand.
What People Are Saying
VA press secretary Pete Kasperowicz said in a statement: “We will not be eliminating any benefits or services to Veterans or VA beneficiaries, and there will be no negative impact to VA health care, benefits, or beneficiaries. We are always going to take care of Veterans at VA. Period.”
Former VA Secretary David Shulkin, who served under Trump during his first term, stressed to the AP that hasty cuts without evaluating consequences could be damaging: “Slowing down and pausing to see what the consequences are, even if they are unintended consequences, is important to do.”
Rosie Torres, executive director of Burn Pits 360, told the AP: “With funding suddenly stripped from contractors processing claims, conducting medical screenings and expanding outreach, there are growing concerns veterans will face delays, denials and disruptions in accessing critical services.”
Torres’ group advocates for veterans suffering from severe respiratory illnesses and cancers caused by exposure to toxic airborne particles from massive trash-burning fires at overseas military bases.
Connecticut Democratic Sen. Richard Blumenthal said in a statement: If carried out, these cuts “will harm veterans and taxpayers for years to come.”
What Happens Next
While the specific outlook for the VA is unclear, it is expected that more employees in the federal workforce will be laid off as the Trump administration looks to slash costs.