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Veterans Affairs: homes occupancy, per-diem changes and Guard disability-claims backlog creating IOU risk

Joint Legislative Committee on the Budget ยท February 10, 2026

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Summary

Senate fiscal staff and veterans officials reported FY'7 budgets for veterans homes and cemeteries, cited VA per'diem reimbursements and rising costs per patient; LDVA warned the Louisiana National Guard disability claims fund is exhausted and IOUs have been issued while backlog processing accelerates.

Senate Fiscal Services presented the Department of Veterans Affairs's FY'7 budget and programmatic data, and department officials answered lawmakers'questions about veterans homes occupancy, reimbursement rates and a separate National Guard disability claims program.

Fiscal staff said the department's recommended FY'7 budget is about $100.11 million with 845 positions; about 66% of funding is federal, 17% state general fund and 14% fees and self'generated revenue. Officials cited a VA reimbursement rate of $127.17 per patient day for eligible residents.

Deputy LDVA officials described occupancy variations across homes and explained local factors such as remodels that temporarily lower census in Monroe. Officials said some homes (e.g., Jennings) are near preferred occupancy (~90%) while Jackson and Monroe showed lower current census due to renovations and local staffing difficulties, driving higher cost per patient in some facilities.

Separately, LDVA leadership outlined the Louisiana National Guard Disability Claims program, funded by state general fund dollars. The department reported it received roughly $3.59M for the current year and has exhausted that money; it has issued approximately $800,000 in IOUs to date and expects IOUs to grow if claim processing continues at recent rates. The program pays one'time benefits ($50,000 or $100,000) to eligible national guardsmen in certain contingency operations conditions; veterans department officials said they are processing a higher volume of long'standing claims and that while approvals remain a minority of processed claims, the volume is increasing.

Legislators were warned the current pace of claim processing would exhaust next year's budget if the legislature does not provide additional appropriations or the department slows payments. LDVA asked members to be aware that some constituents awaiting payments could receive IOU notices.

Officials said they are pursuing options to raise rates for eligible veterans (increase 70% rating outreach) and to work with the federal VA on program initiatives to increase reimbursement and specialized services that could affect occupancy and home revenue.