Veterans Affairs seeks $10 million recurring for Military Enhancement Fund; projects $28 million carryforward for state homes

The Department of Veterans Affairs told a legislative subcommittee it is seeking a $10,000,000 recurring appropriation for the Military Enhancement Fund and said it expects about $28,000,000 in carryforward funds for the veteran home enterprise, officials said during the department’s presentation before the committee.

The department’s secretary (speaker 3) described the Military Enhancement Fund as a grants vehicle for counties and municipalities adjacent to federal military installations, saying the fund supports both base readiness projects and quality-of-life improvements for military families. “This is our sole ask for this year, which is a $10,000,000 recurring ask for the the military enhancement fund,” the secretary said.

Why it matters: the fund directs state grants to communities that host or border installations and can affect local infrastructure and services tied to military readiness and family support. The department told the committee the General Assembly has previously funded the program at lower recurring levels (historically about $5–$7 million, with a prior recurring appropriation of $2 million reported), and the larger ask would expand grant capacity.

The secretary also reviewed the department’s management of the state veteran home enterprise. He said the department assumed oversight of the final state veterans home, Stone Pavilion, a 90-bed facility in Columbia received in July from the Office of Mental Health, and converted it to contract operation. “All six of our states operating veteran homes are operated by third party vendors under contract,” he said, adding the department is satisfied with vendor performance and quality of care.

Officials emphasized that a set of existing provisos (identified in testimony as provisos 101.1–101.5) provides flexibility to carry forward unspent appropriations. The secretary told the committee that proviso language allowing carryforward for the veteran home enterprise is the primary reason the department is not requesting additional veteran-home appropriations this year. “We think the carry forward this year will be actually $28,000,000 for the veteran enterprise,” he said, adding the number is still being finalized after assuming the final home into the enterprise.

The secretary explained other provisos in the packet: 101.1 allows unexpended funds for Dolly Cooper Veterans Cemetery (Anderson County) to carry forward for cemetery improvements; 101.2 removes the department from across-the-board reductions; and 101.3 allows ungranted Military Enhancement Fund dollars to carry into the following fiscal year for eligible counties and municipalities (eligibility is based on adjacency to federal installations). He noted adjacency rules extend to Fort Gordon in Georgia, where Edgefield and Aiken counties in South Carolina are considered adjacent.

Committee members praised the department’s management. A representative (speaker 2) said he had been skeptical of the oversight change in the past but had changed his view after seeing results and constituent feedback: “I was one that really questioned that deeply… You have, and I want to commend you on that,” the representative said. The secretary agreed, saying the focused oversight allowed the enterprise to be financially stable for the near term, though he warned that future construction of new homes tied to federal grants could require additional funding.

The department also described a small resident fiduciary account the homes manage for residents without family financial support. Under questioning, staff said the department currently manages resident fee accounts for about seven or eight residents out of roughly 700 residents in the enterprise and confirmed those funds are segregated by individual.

No formal vote or action was taken during the presentation. The committee offered thanks and adjourned; the subcommittee’s next meeting was announced as Tuesday at an unspecified time.