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State veterans homes and cemetery grants need larger, sustained funding, state directors tell committees
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Summary
State directors told the joint committee that funding for State Veterans Home Construction and Veterans Cemetery Grant programs is insufficient to meet demand, and recommended higher federal matches and increased per diem and grant levels to support beds and burials.
State veterans affairs directors told the joint House and Senate Veterans Affairs committees that federal grant programs for veterans homes and state‑run cemeteries require substantially higher funding to meet current needs.
Tim Shepherd, president of the National Association of State Directors of Veterans Affairs (NASDVA), told the panel the State Veterans Home Construction Program supports 171 operational homes with more than 30,000 beds and that 81 priority group‑1 projects are pending that would require roughly $1.3 billion to fund the federal 65 percent match. He urged increasing proposed funding from $147 million to at least $650 million to address critical capital needs.
Shepherd also said the Veterans Cemetery Grant Program currently lacks sufficient resources; NASDVA recommended raising the program funding from approximately $60 million to at least $120 million to address priority group projects and ensure burial access within reasonable distance.
Why it matters: State veterans homes supply over half of long‑term care for veterans and state/tribal cemeteries handle a substantial share of veteran interments; underfunding can reduce local capacity for nursing care and burial options.
What the witnesses requested: Increased appropriations for major and minor construction, higher per diem rates to compensate for rising costs and workforce shortages, and prioritization of state projects in FY2026 funding decisions.
Ending: State directors said predictable, sufficient funding is needed to modernize facilities, maintain staffing and meet demographic needs of the aging veteran population.

