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OIG: VA failed to document $341 million in recruitment, relocation and retention incentives
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Summary
A June 2025 Office of Inspector General report found that the Veterans Health Administration could not verify or adequately document roughly $341 million in incentive payments and that prior fixes after a 2017 audit were not sustained, the OIG told a House subcommittee in July 2025.
The House Veterans' Affairs Subcommittee on Oversight and Investigations heard July 2025 that the Department of Veterans Affairs failed to adequately document hundreds of millions of dollars in recruitment, relocation and retention incentive payments.
Sean Steele, director of the Human Capital and Operations Division in the Office of Audits and Evaluations at the VA Office of Inspector General, told the subcommittee the OIG "estimated that the award justification could not be verified or is insufficient for 30% of VHA employees that received incentive payments. This amounted to about $341,000,000 in incentives that were not adequately supported." He added that some employees continued to receive retention payments long after their award periods expired, saying, "These individuals were improperly paid for an additional 8 years on average, totaling about $4,600,000."
The hearing traced the issue to an earlier OIG review: committee remarks noted a 2017 OIG audit that found weaknesses in controls and $158,000,000 in unsupported spending. Committee leaders and the OIG said corrective steps taken after 2017 were not consistently followed. According to opening remarks entered into the record, "Between 2020 and 2023, more than 134,000 employees received incentive payments totaling $1,200,000,000; $341,000,000 of those incentives were found by the OIG to be improperly documented."
The OIG testified that missing forms, inadequate justifications and absent approval signatures undermined oversight. Steele told the panel that in fiscal years 2022 and 2023 "nearly 90% of incentives went to employees and occupations on staffing shortage lists," but that the lack of documentation prevented verification that incentives were properly authorized and effective. The OIG also reported examples the subcommittee cited in which relocation payments were made to employees who did not relocate and where VA did not recoup improper payments.
Committee members framed the problem as both a stewardship and patient-care issue: undocumented incentives reduce the ability of oversight offices and Congress to determine whether funds were used in ways that improved recruitment and retention. The OIG committed to continued monitoring of VHA staffing needs and incentive usage.
The OIG's findings prompted calls from committee members for stronger, enforceable documentation and for the VA to follow through on prior recommendations to prevent further improper payments. The subcommittee did not take any formal votes during the hearing; members requested additional data and pledged follow-up oversight.
