Vermont Veterans Home asks state for $10 million as staffing and aging wing squeeze operations

Melissa Jackson, CEO of the Vermont Veterans Home, told the House Government Operations & Military Affairs Committee that the home is requesting about $10,000,000 in general funds for fiscal 2026 to supplement federal and other revenue.

Jackson said the home receives “about $7,600,000 in funding from the VA” annually, and described two distinct types of VA payments: a basic per diem (stated in testimony as “$144.1” for nursing-home care and “$62.20” for domiciliary care) and a full-cost reimbursement that applies to veterans whom the Veterans Administration deems 70% or more service-connected. “For those individuals this $555.55 covers their room and board, medications, medical supplies, physician visits, physical therapy, occupational therapy, speech therapy,” Jackson said.

The general-fund request reflects a larger, “all in” budgeting approach this year, Jackson said, explaining that in prior years the home used budget adjustments to reflect Medicaid true-ups and settlements. She told the committee the larger-looking jump between fiscal 2025 and 2026 results from consolidating those recurring adjustments into the initial request rather than from a single new program.

Jackson said the home has 130 licensed nursing beds but currently has 30 nursing beds offline for two reasons: a wing of the building “in desperate need of renovation,” and the effects of a health-care staffing shortage. She said the renovation will be “approximately $32,000,000,” and that the VA will cover 65% of a major renovation cost while the state would pay 35% under the provider relationship described in testimony.

Jackson emphasized the operational strain from staffing costs: the home is spending “almost $8,000,000 on agency or traveling nurses” annually because it cannot recruit enough permanent staff. She said roughly 58% of the home’s operating budget is salaries and benefits and that fixed costs—salaries, benefits, Medicaid-related charges and other state allocations—compose nearly 64% of the budget, leaving limited flexibility for other expenses.

Jackson described a range of services at the Bennington facility: long-term and short-term care, respite, outpatient rehabilitation, hospice and palliative care. She highlighted the home’s Namaste program, which began at the Vermont Veterans Home and has gained international recognition; Jackson said staff were recently invited to present at an international Namaste conference in London. She also noted recent quality recognitions: the home was “one of two facilities in the entire state of Vermont to be recognized by U.S. News & World Report as best nursing homes for long term and short term care,” and staff accepted a national bronze quality award.

Committee members asked whether VA funding is at risk; Jackson said she serves as the liaison between the National Association of State Veterans Homes and the VA and that, “thus far, we have been told our funding is solid,” while acknowledging uncertainties in federal policy.

Jackson described program and community partnerships including a planned “veteran incubator farm” with the Bennington Conservation District and Bennington College, noting expected benefits for veteran mental health and local food sourcing. She said the home’s average resident age is 81, with an average daily census budgeted at 90 and an actual census of 87 at the time of testimony.

Jackson invited committee members to visit the 84-acre campus in Bennington and said the board and staff welcome oversight and familiarity. The committee did not take formal action during the presentation; members asked questions and acknowledged possible future site visits.