Massive VA Contract Cuts Spark Employee Uproar
Elon Musk’s Department of Government Efficiency (DOGE) has walked back some of its planned budget cuts to veterans’ health care after intense pushback from Veterans Health Administration employees. Initially, the VA intended to terminate 875 contracts, but after outcry from staff warning of severe risks to patient safety, the number was reduced to 585 canceled contracts as of Monday.
Despite the rollback, vital health services remain at risk as the agency refuses to disclose the full list of contract terminations. NBC News obtained documents revealing 200 contracts still set for cancellation, many of which are crucial to patient care and hospital safety.
Key Health Services on the Chopping Block
Employees say some of the canceled contracts include essential services such as:
- Sterility certification for VA hospital pharmacy operations
- Facility air quality and safety testing to prevent infections
- Sterile processing services to decontaminate medical instruments
- Stroke center accreditation and cancer follow-up care
- Support for the National Center for PTSD, a leading research entity
- Upgrades to the Veterans Health Administration’s electronic health records system
Without these contracts, VA hospitals may face serious safety violations and service disruptions, potentially forcing veterans to seek care outside the VA system.
Lack of Transparency Raises Concerns
Despite the outcry, the VA has refused to release the full list of terminated contracts. When NBC News requested contract details, the agency declined to comment unless specific contract names and numbers were provided—information NBC News chose not to disclose to protect sources.
Employees who spoke out against the cuts have faced indefinite suspensions, further fueling fears of retaliation and lack of transparency.
Mass Layoffs at the VA Add to the Crisis
The contract terminations come alongside a massive workforce reduction. The VA announced Wednesday that it will lay off 80,000 employees as part of an agency-wide reorganization set for August. This move aims to reduce staffing levels to pre-2019 numbers, following the dismissal of 2,400 probationary employees in February.
Lawmakers Slam “Reckless” VA Cuts
Sen. Richard Blumenthal (D-Conn.), a ranking member of the Veterans Affairs Committee, condemned the contract cancellations as “reckless” and “unacceptable.” He criticized VA Secretary Doug Collins for failing to consult Congress, accusing him of using these cuts as a PR stunt at the expense of veterans’ well-being.
“Make no mistake, canceling these contracts will cause harm to veterans and VA care and benefits,” Blumenthal said.
The Bigger Picture: Is the VA Pushing Veterans to Outside Care?
Some VA officials believe these cuts are part of a deliberate effort to push veterans into private healthcare. By defunding key services, the VA risks creating a system where veterans have no choice but to seek care outside VA facilities, potentially disrupting the quality and consistency of their treatment.
As the controversy unfolds, the fate of 585 VA contracts remains uncertain, leaving millions of veterans and VA employees in limbo.