House highway bill includes fix to keep VA hospitals open

A provision in the House’s three-month highway bill would temporarily relieve a $3 billion shortfall at the Department of Veterans Affairs, preventing VA hospitals from closing in August.

The House is expected to vote Wednesday on the bill, which extends highway funding until the end of October and provides a short-term fix to the VA until Oct. 1.

Republicans attached provisions to the measure that allows the VA to shift nearly $3.4 billion to the department’s Care in the Community Program, which outsources medical care for veterans. The measure also includes a maximum of $500 million for pharmaceutical expenses relating to treatment of Hepatitis C.

{mosads}While the bill itself expires Oct. 29, the VA funding would only be available until the end of the fiscal year, or the end of September. VA Secretary Robert McDonald will be required to notify Congress about the amounts the department choose to use.

The bill allows the VA to shift funding from the department’s Veterans Choice Fund account whose $10 billion in funding Congress had approved last year.

Senior VA officials had repeatedly warned Congress that without a fix, the budget hole would force the department to shut down its hospitals next month.

VA had asked Congress to approve a funding shift in late June and submitted a formal legislative proposal to lawmakers in mid-July.

The highway bill includes other provisions that would require the VA consolidate all non-VA programs into a single one, among other things.

House members are expected to leave Washington by the end of Wednesday for their annual August recess. The Senate is scheduled to go on recess at the end of next week.