WASHINGTON, DC — VA Secretary Doug Collins announced in a video in late February that VA had cut $2 billion in cuts to contracts thus far. While he said the funds would be redirected to veterans’ health care and benefits, critics claimed the cuts will do the opposite.

“We found nearly $2 billion in contracts that we’ll be canceling so we can redirect the funds back to Veterans health care and benefits,” Collins said. “No more paying consultants to do things like make PowerPoint slides and write meeting minutes.”

Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal (D-CT) responded, however, that the estimated 875 contracts provided critical services to veterans and their families, as well as allowed VA to conduct oversight operations to identify waste, fraud, and abuse:

“The hundreds of contracts Doug Collins proudly canceled today provide critical and direct services to veterans across the country,” Blumenthal said in a statement. “These contracts allow VA to recruit and retain doctors, inform veterans about their earned benefits, and perform safety inspections at VA medical facilities.”

“Many of these contracts were also used by VA to conduct oversight of its spending and ensure veterans programs operate efficiently for veterans and taxpayers. To say abruptly cancelling these services won’t impact veterans’ care and benefits is another unrealistic promise from Collins. Make no mistake—this is just another reckless cost-cutting decision that will harm veterans and taxpayers for years to come.”

Some contracts that were cancelled, according to Blumenthal, include ones that:

  • enabled VA to locate military records to process VA disability compensation benefits, impacting VA’s ability to timely process benefits claims.
  • provided training to VBA employees so that the claims decisions they make are more accurate and of higher quality for veterans.
  • helps VA recruit doctors and other medical staff, particularly in areas of the country – including in rural America – with critical vacancies. It was VA’s only contract connecting VA recruiters to job boards for sourcing physicians and other critical roles for direct veteran care, Blumenthal maintained.
  • Provided for the National Oncology and Precision Medicine program which is focused on providing the highest quality cancer care, advanced pharmacogenomics, increasing radiation oncology services, and improving precision oncology testing for veterans.
  • Performed oversight and inventory functions for VA’s medical supply purchasing program, which VA’s more than 2,000 medical facilities use to deliver safe care to veterans.
  • to safely dispose of chemical waste.
  • Ensures that VA does not overpay private sector doctors for services rendered.
  • Process medical disability examination payments, which threatens timeliness and accuracy of delivery of VA disability compensation benefits.

In the video, Collins tried to preempt such criticism, stating “don’t let nameless sources, even senators and house members who want to scare you, and media who want to perpetuate the lying, We’re taking care of the veterans. I promise you that from day one”.