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Department of Veterans Affairs seeks increased funds for veterans home food, medical and contract staff costs

2124208 · January 15, 2025
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Summary

At a legislative briefing, the Department of Veterans Affairs requested FY25 amendments and FY26 budget authority for the Hot Springs veterans home to cover rising food, resident medical, and contract staffing costs, and noted changes tied to Medicaid FMAP adjustments and an energy cap.

Department officials told a legislative committee the Hot Springs Veterans Home is seeking additional FY25 amendment authority to address rising costs for food, resident medical needs and costs for contract staff used to backfill workforce shortages.

Aaron Pollard, deputy secretary for the Department of Veterans Affairs, presented slides showing the home’s payer mix and said the FY25 amendment requests include an increase for food service costs, higher resident medical expenses and contract staff funding, and a reduction in other fund authority associated with the state’s energy cap. For FY26 the department asked for adjustments tied to enhanced and annual federal medical assistance percentage (FMAP) changes.

Why it matters: The veterans home mixes federal, state and other fund sources to operate long‑term care services. The department said increases in food and medical costs and use of contract staff are the operational drivers behind the requested FY25 amendments.

Details and committee exchange The department identified a FY26 recommendation that combines general fund increases and decreased federal fund authority to reflect a 5% enhanced FMAP change and an annual FMAP adjustment; officials also cited a roughly $46,090 decrease in other fund authority tied to the energy cap.

Committee members did not move on the appropriations during the briefing. Pollard and the department agreed to keep the committee apprised of any further cost drivers or revised requests as staff continue to refine projections.

Ending The committee closed the veterans home portion of the department briefing and moved on to the veterans cemetery slides. No formal appropriation action was taken in the hearing segment covered by the transcript.