A new law has been passed by the U.S. Senate, and it is to stop senior executives at the Department of Veterans Affairs (VA) from receiving VA executive bonuses that were originally given to regular VA workers.

They made this decision after an audit was conducted, and a mistake was made in which VA executives were given funds that were actually for lower-ranking employees, such as housekeepers, claims processors, and police officers.

VA Executive Bonuses Wrongly Used

The bonuses came from the Critical Skills Incentives Program, which was under the PACT Act. This program was created to help recruit and keep staff in tough positions at the VA.

The $11 million bonus from the program was paid out to VA executives at the agency back in 2023 as a year-end bonus for them, but the bonus was not actually intended for that. Each individual has received a year-end bonus ranging from $39,000 to more than $100,000.

According to Peter Kasperowicz, the current VA press secretary, the VA has also promised to investigate the misuse of the bonuses. On the other hand, Senator Jerry Moran said that the payouts as a year-end bonus were a gross misuse of funds.

He also introduced the legislation after discovering the mistake. He said that they should be used to reward the hardworking employees who directly serve veterans and not be used incorrectly. “This legislation will make certain these funds will not be used to enrich VA bureaucrats,” he said.

The amendment was based on other legislation – the Stop Government Rewards Enriching Executives in the District, or the GREED Act. This was introduced with Sen. Marsha Blackburn, R-Tenn., and Sen. Thom Tillis, R.-N.C., after the IG findings were published. However, the bill did not push through for a final vote.

More VA Accountability and Transparency

Senator Moran’s legislation was passed by unanimous consent and was offered as an amendment to the Protecting Regular Order for Veterans Act, which was sponsored by Sen. Dan Sullivan, R-Alaska, whereas the act is aimed at bringing more financial accountability and transparency to VA spending.

However, the PRO Act also requires the VA secretary to give Congress a quarterly budget briefing on the agency’s spending plan, which should include projections about shortages and the reason for the shortfall.

Sullivan said that one of the goals right now is to provide a much clearer insight into the VA budget, which is about $369 billion. In line with this, they also want to make sure that the misuse of VA funds won’t happen anymore. Moreover, this bill has collected a lot of sponsors from the Republican Party and is now forwarded to the House for review.

What Really Happened to the Bonuses?

The VA Office of Inspector General said that the year-end bonuses given to the VA executives, “lacked adequate justification and were inconsistent with the PACT Act and VA policy.”

80% of the VA executive bonuses were given to members of the Senior Executive Service at the Veterans Health Administration, while 20% was given to the senior executives at the Veterans Benefits Administration.

The lawmakers said that the VA executive bonuses were given as a setup and were used as a tool to make sure that VA employees with a high number of job vacancies would still stay, including housekeepers, police officers, and human resource coordinators.

The amendment states, “A critical skill incentive may not be provided to an employee of the department employed in a senior executive service position or a position in another comparable system for senior-level government employees.”

Veterans Raise Concerns

Nicholas Marino from South Carolina, a retired Air Force Veteran, said he welcomes the legislation but also worries that this might have an effect.

“I see the VA bureaucracy as a big part of the problem,” said Marino, a former staff sergeant who served from 1997 to 2008, including in the Middle East.

“Incentive bonuses will only be helpful for those VA employees who are already dedicated and trying to do a good job. But there will always be bad actors — workers who just show up for the paycheck and little else.”

The people who received the VA executive bonuses were instructed to pay them back. Luckily, about $230 million in bonuses were returned, according to Moran’s office. They also determined that twenty-two senior executives fully repaid the VA executive bonuses they received.

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Sources:

• Republican-Led Legislation Bans VA Executives from Taking Bonuses Meant for Rank-and-File Employees