Cutting Costs at the Department of Veterans Affairs: A Path to Savings

With the Department of Veterans Affairs (VA) budget now reaching $405.8 billion, about four percent of the entire federal budget, policy experts are calling for significant reforms to address inefficiencies and ensure taxpayer dollars are spent wisely. 

Jeremiah Mosteller, Policy Director at Americans for Prosperity, says the VA’s massive size and budget make it a key area for cost-saving measures without compromising essential services. “There’s no doubt that we owe our veterans the best care and support,” Mosteller said. “But that doesn’t mean we can’t do it more efficiently and transparently.” 

Established as a cabinet-level department in 1988, the VA provides health care, disability compensation, education benefits, and more to millions of veterans. However, Mosteller argues that its complex structure often masks inefficiencies. “We’re not talking about cutting services. We’re talking about reforming how those services are delivered eliminating duplication, updating outdated processes, and ensuring every dollar spent delivers value to veterans.” 

A major point of concern is the lack of transparency in how the VA allocates its funds. Mosteller believes greater visibility could drive accountability. “Taxpayers should be able to see where their money is going. If we can shine a light on wasteful spending, we can build momentum for change.” 

He also pointed to the regulatory environment as a barrier to modernization. “There are rules on the books that no longer make sense in today’s context. Congress needs to step up and use tools like the Congressional Review Act to repeal outdated regulations that are holding the VA back.” 

Mosteller emphasized that many Americans mistakenly conflate the VA with the Department of Defense, failing to recognize its independent role in administering a broad suite of veteran services. This misunderstanding, he said, allows inefficiencies to go unchecked. “When people don’t fully grasp what the VA does or how it operates, it’s harder to build the case for reform. Education is a critical part of this conversation.” 

The call for reform comes as lawmakers debate broader federal spending cuts and revisit tax policies passed during President Trump’s first administration. Mosteller expressed cautious optimism that fiscal pressures might prompt action. “Congress has a real opportunity to lead here. If they’re serious about fiscal responsibility, the VA is one of the places they have to look.” 

As policy experts search for ways to reduce federal spending by trillions, Mosteller argues that meaningful reforms at the VA could represent a significant step forward not just in saving money, but in better serving those who’ve served the country.