H.R. 7683, VA Fiscal Management Modernization Act

H.R. 7683 would make changes to the duties and structure of the Department of Veterans Affairs’ (VA’s) financial management organization. The bill also would extend a temporary limitation on certain pension payments through December 31, 2033.

For this estimate, CBO assumes that the legislation will be enacted in fiscal year 2026 and that outlays will follow historical spending patterns for affected programs. The estimated budgetary effects of H.R. 7683 are shown in Table 1. The costs of the legislation fall within budget functions 550 (health) and 700 (veterans benefits and services).

Spending Subject to Appropriation

H.R. 7683 would establish two new positions at VA: the Deputy Assistant Secretary for Planning and Budget and the Deputy Assistant Secretary for Planning and Budget for Financial Operations and Internal Controls. CBO estimates that annual compensation and benefits for each of those officials would average about $280,000 and that they would require a total of four support staff. Annual compensation, benefits, and operating expenses for each of those staff would average about $200,000.

The bill also would require VA to establish the Legislative and Congressional Budget Information Office. The office would be responsible for providing financial and budget information to the Congress. The bill would limit the new office to six full-time equivalent employees. CBO estimates that their annual compensation, benefits, and operating expenses would average about $200,000 each.

The authorization for the positions required by the bill would expire five years after enactment. In total, those positions would cost $13 million over the 2026-2036 period, CBO estimates. Such spending would be subject to the availability of appropriated funds.

The bill would rename the Assistant Secretary for Management as the Assistant Secretary for Planning and Budget and would designate that official as the department’s chief financial officer. Under the bill, financial officers of VA’s component administrations and regional medical networks would report exclusively to the chief financial officer. CBO estimates that implementing those changes would not significantly affect the federal budget.

Direct Spending

H.R. 7683 would make changes to veteran and survivor pensions. Under current law, VA reduces pension payments to veterans and survivors who reside in Medicaid nursing homes to $90 per month. That required reduction expires January 31, 2033. H.R. 7683 would extend that reduction for 11 months, through December 31, 2033. CBO estimates that extending that requirement would reduce VA benefits by $2 million per month. As a result of that reduction in beneficiaries’ income, Medicaid would pay more of the cost of their care, increasing spending for that program by $1 million per month. Medicaid and VA pensions are paid from mandatory funds. Thus, enacting the bill would reduce net direct spending by $11 million over the 2026‑2036 period.

The CBO staff contact for this estimate is Logan Smith. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.