{"id":31718,"date":"2025-02-26T19:04:57","date_gmt":"2025-02-26T19:04:57","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2025\/02\/26\/va-claims-2b-in-savings-from-contract-cuts-vows-no-benefits-impact\/"},"modified":"2026-08-08T16:46:21","modified_gmt":"2026-08-08T16:46:21","slug":"va-claims-2b-in-savings-from-contract-cuts-vows-no-benefits-impact","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2025\/02\/26\/va-claims-2b-in-savings-from-contract-cuts-vows-no-benefits-impact\/","title":{"rendered":"VA claims $2B in savings from contract cuts \u2014 then reverses course"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><i>Editor\u2019s note: This story has been updated to reflect a change in position by Veterans Affairs leadership.<\/i><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.militarytimes.com\/veterans\/2025\/02\/25\/va-fires-1400-more-staffers-in-second-round-of-workforce-reductions\/\" target=\"_blank\">Veterans Affairs leaders <\/a>this week touted $2 billion in savings for department efforts from canceled government contracts they insist were not providing real benefits to veterans, but critics are warning the efforts could seriously jeopardize some health and benefits services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By Wednesday afternoon, however, VA leaders had paused those actions, saying they were going through the contracts \u201cline-by-line\u201d to ensure that veterans would not be harmed by the cost-cutting moves.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The confusion over department contracts began with a <a href=\"https:\/\/x.com\/SecVetAffairs\/status\/1894426832641913204\" target=\"_blank\">video message<\/a> posted to social media Tuesday from <a href=\"https:\/\/www.militarytimes.com\/veterans\/2025\/02\/24\/va-secretary-emphasizes-reforms-accountability-for-federal-workforce\/\" target=\"_blank\">VA Secretary Doug Collins<\/a>, who said the contract cuts were just the first step in broader efficiency efforts at the department.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThese are things that we\u2019re saving now that we can put back into health care, benefits, making sure that we\u2019re doing what the VA is supposed to do,\u201d Collins said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He described the contracts as costing millions \u201cto create things like PowerPoint slides and meeting minutes\u201d as well as \u201ccoaching and training.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VA officials declined a request to release the full list of contracts canceled, which Collins appeared to be holding in his video message. If accurate, the $2 billion in savings would represent about 0.5% of the entire VA budget for fiscal 2025.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/veterans\/2025\/02\/25\/va-fires-1400-more-staffers-in-second-round-of-workforce-reductions\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"204\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635706880305258825-va-health-carejpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">VA fires 1,400 more staffers in second round of workforce reductions<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">About 2,500 VA workers have been forced out of their jobs in the last few weeks.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">A VA spokesperson on Wednesday<b> <\/b>said that the contract review \u201cwill 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.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Capitol Hill staffers were told about 875 contracts were canceled, but only about 30 are listed on the Department of Government Oversight\u2019s web page of wasteful and redundant government contracts.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">We found nearly $2 billion in <a href=\"https:\/\/x.com\/DeptVetAffairs?ref_src=twsrc%5Etfw\">@DeptVetAffairs<\/a> contracts that we\u2019ll be canceling so we can redirect the funds back to Veterans health care and benefits. <br>No more paying consultants to do things like make Power Point slides and write meeting minutes! <a href=\"https:\/\/t.co\/z1gv3PKhfA\">pic.twitter.com\/z1gv3PKhfA<\/a><\/p>&mdash; VA Secretary Doug Collins (@SecVetAffairs) <a href=\"https:\/\/x.com\/SecVetAffairs\/status\/1894426832641913204?ref_src=twsrc%5Etfw\">February 25, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">They include a contract of about $123,000 for a telehealth outreach service to women veterans and about $45,000 for COVID-19 health care services. <a href=\"https:\/\/www.washingtontechnology.com\/contracts\/2025\/02\/veteran-owned-small-firms-hit-first-vas-push-2b-contract-cuts\/403271\/?oref=wt-homepage-top-story\" target=\"_blank\">Washington Technology<\/a> reported that at least 20 of those contracts were for veteran-owned businesses, several of which are run by service-disabled veterans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senate Veterans Affairs Committee ranking member Richard Blumenthal, D-Conn., said that his office has seen canceled contracts related to military records processing for VA disability claims, National Cemetery Administration outreach efforts, hospital recruiting of doctors and medical staff and inspections of medical equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTo say abruptly cancelling these services won\u2019t impact veterans\u2019 care and benefits is another unrealistic promise from Collins,\u201d Blumenthal said in a statement. \u201cThis is just another reckless cost-cutting decision that will harm veterans and taxpayers for years to come.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Collins in his message dismissed criticism from lawmakers and the media over the cuts as off-base. But by Wednesday afternoon, internal emails to VA agency heads instructed them to \u201chalt any contract terminations that are in progress\u201d while leadership reconsidered the moves. However, the VA secretary\u2019s social media message claiming $2 billion in savings was not retracted or rescinded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract cuts came just one day after the latest round of VA staff dismissals, which now total close to 2,500 individuals since President Donald Trump took office. Collins said to expect more efficiency moves in coming weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Critics worry the contract cuts could hurt department medical operations and support services for veterans.<\/p>\n","protected":false},"author":7,"featured_media":74432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":38,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[55,38,11,33,9],"tags":[],"coauthors":[3294],"class_list":["post-31718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career","category-congress","category-fedlife","category-newsletters","category-federal-oversight"],"acf":{"subheadline":"","legacy_arc_id":"WR4UTHH2GVGRZOHKD3RJF4WNFU","arc_canonical_url":"\/veterans\/2025\/02\/26\/va-claims-2b-in-savings-from-contract-cuts-vows-no-benefits-impact\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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