House Veterans' Subcommittee presses VA on billions in improper compensation and pension payments

Chairman Littrell convened a House Committee on Veterans' Affairs Subcommittee hearing to examine the Department of Veterans Affairs' efforts to reduce improper payments in compensation and pension programs and pressed VA and Office of Inspector General witnesses for concrete fixes.

The subcommittee heard the VA and its inspector general describe several causes of improper payments — including incorrect assignment of effective dates for awards, limits in automated tools, training that the OIG called rushed, and data-matching gaps — and several steps the department says it has taken to address them.

The issue matters because of scale: lawmakers cited multibillion-dollar totals and personal harm to veterans. “We must ensure the VA is a responsible steward of the taxpayer's investments,” Chairman Littrell said in opening remarks, and witnesses said errors can create debts that veterans must repay.

The Office of the Inspector General told the panel its audits have repeatedly identified incorrect effective dates as a major source of improper payments and that a recent review found 24 percent of sampled PACT Act cases had incorrect effective dates, producing $6.8 million in improper payments in the sample and projecting roughly $20 million by August 2025 if trends continue. Deputy Assistant Inspector General Brent Arante told members that the PACT Act’s expansion of presumptive conditions and service locations increased the number of dates claims processors must consider and that the department’s accelerated rollout of training in December 2022 “missed an opportunity” to evaluate training effectiveness.

VA witnesses said the department has implemented changes and is continuing work. Nina Tan, Executive Director of Compensation Services at the Veterans Benefits Administration, said VA reduced improper payments in fiscal 2024 “by about a billion dollars” and described expanded data-sharing agreements (including tax and Social Security matches) to verify income, death, and other eligibility information. Tan also said VBA updated procedural guidance in December 2024 and has issued PACT Act refresher training and job aids.

Jeanine Gilson, Acting Chief Financial Officer for VBA, gave FY 2024 figures: VBA established $1.14 billion in compensation overpayment debts from a compensation outlay of $161.196 billion (about 0.72% of outlays) and $227.4 million in pension overpayment debts from $3.743 billion in pension outlays (about 6.1%). Combined, compensation and pension overpayment debts established were $1.366 billion, or about 0.85% of the combined outlays, Gilson said.

Committee members pressed for outputs as well as inputs. Members repeatedly asked whether training was mandatory and complete, when automated tools would be implemented, and how quickly quarterly Social Security death matches and other data matches would reduce overpayments. Tan confirmed the April 2025 PACT Act effective-date refresher training was mandatory; she did not have completion metrics available during the hearing and said she would follow up. Kevin Friel, Executive Director of Pension and Fiduciary Service, said pension staff had completed the April 2025 survivor-related training.

Witnesses described specific improvements already in place. VA said it began a monthly match between Compensation Service and Education Service in January 2025 to prevent beneficiaries from receiving overlapping education and pension payments; VA reported that adjustments in March 2025 prevented overpayments for affected beneficiaries. VA also reported expanding Social Security death-match use to dependent awards and running the match quarterly.

The OIG recommended three broad remedies: simplify effective-date scenarios where feasible, invest in automation tailored to the complexity of claims, and improve training and quality-assurance sampling to target high-risk areas rather than broad, cross-program samples. Arante told the committee he would like compensation to remain a high-priority program under the Payment Integrity Information Act (PIIA) until error rates fall, citing repeated findings on effective dates across OIG work.

Members asked for additional data and follow-up items: Chairman Littrell requested the VA provide return rates to information requests, completion metrics for mandatory training, the status of OIG-recommended job aids and tool updates, and the timeline for planned automation. Several members urged faster adoption of machine-learning and analytic tools but acknowledged implementation requires funding and careful design.

The hearing also addressed OIG findings about specific beneficiary groups. The OIG identified underpayments to eligible Vietnam veterans (a 2024 OIG report cited about $836.8 million in missed payments) and underpayments to survivors (about $33.1 million in the OIG’s report). VA witnesses said those reviews have open actions; Friel said VA amended processes so reopened Dependency and Indemnity Compensation (DIC) claims would prompt a retroactive review and that fewer than 20 survivor claims remained to be adjusted under the actions he described.

Lawmakers closed by emphasizing two priorities: reduce improper payments to protect taxpayer funds and avoid creating hardships for veterans who receive overpayments and then face debt collection. Ranking Member McGarvey said he did not want an overly punitive approach that would cut veterans off, while also urging the department to deliver measurable results.

Committee members asked for follow-up responses and additional documentation; the chair granted five legislative days for members to revise and extend their remarks and asked VA to return data requested during the hearing. The subcommittee adjourned after the witnesses answered questions and committed to further collaboration.