Veterans Affairs Secretary David Shulkin told a group of veteran advocates that he was cutting funding to a program that addresses veteran homelessness, according to a Dec. 6 report from Politico.
The conversation reportedly happened over the phone, with “advocates for veterans, state officials, and even officials from HUD” reacting to the news from Shulkin in outright anger.
The program, co-sponsored by the Department of Housing and Urban Development (HUD), allocates $460 million a year to housing homeless veterans. It seems to have been working, too, as veteran homelessness is down 46 percent from 2010.
Nevertheless, Shulkin determined that nearly $1 billion should be moved from “specific purpose” funds to “general purpose” funds. This means moving all of the funding used specifically to ameliorate veterans homelessness.
According to a Sept. 2 memo, the VA believes that money designated to specific programs, like addressing veteran homelessness, transplant programs, amputation care, and women’s health, would be better used in a general fund, leaving veterans hospitals to decide for themselves how to use the money. The memo states that the move is designed to support “the Secretary’s five priorities” and could be used for administrative things, like hiring more VA employees.
The memo does not state how each individual hospital must use its newfound funds. Rather, it simply notes that network directors will have control over how much (if any) to give to specific programs.
The Senate Committee on Appropriations responded to Shulkin’s plans to move the funds with a bipartisan, strongly worded letter signed by every member. In it, the committee reminded the Secretary of Veterans Affairs that his department had previously been extended the privilege of flexibility to move money without review because of its willingness to be transparent. That transparency, the letter argued, would all but disappear should Shulkin divert the specific purpose funds.
The letter closed with what seemed like a warning in the form of a suggestion: Stop, think, and before you do anything, submit to us a detailed “funding allocation plan” in the future.
It didn’t take long for Shulkin to shift gears and reverse his earlier statements. “There will be absolutely no change in the funding to support our homeless programs,” Shulkin wrote in a statement released Dec. 6.
However, Shulkin added, “we will not be shifting any homeless program money to the Choice program.” It is not immediately clear whether the Choice program is where Shulkin suggested the funds would go in his Dec. 1 phone call.
Upon further review of the VA’s budget brief, the department does, in fact, plan to cut funding from “certain Veterans’ benefit programs” to offset the cost of money borrowed from the nearly bankrupt Veterans Choice Program, a program designed to offer veterans medical care closer to where they reside.
The brief does not specify which programs will be cut.