Lawmakers press Veterans Affairs on backlog of approved National Guard disability claims as FY27 budget is reviewed

Department of Veterans Affairs budget staff presented the department’s FY27 executive budget review and faced sustained questioning from lawmakers about delays in processing National Guard disability claims and the operational needs of veterans homes.

Paige Filho (speaker 15), the department’s budget analyst, told the committee the department is scheduled to receive $105.2 million in funding for FY27 with a majority coming from federal funds; the Southwest Louisiana Veterans Home and other homes were discussed as major program expenditures. The presentation included staffing, salary, and operating‑cost breakdowns.

John Phillips (speaker 16), under secretary for the department, opened for questions and said Secretary McGinley was attending a national conference. Lawmakers raised multiple constituent cases of delayed payouts. Representative Bagley described a constituent who is 100% disabled and reported more than a year without a resolution; Phillips said the department had increased staff and would pass the constituent’s request to the appropriate staff.

Committee members pressed the department for response benchmarks and clearer communications. Officials said processing capacity has increased (from historically very small staffing levels to several full‑time and part‑time staff), but that some approved claims remain unfunded pending a supplemental budget request. Staff said roughly $950,000 in approved claims are awaiting funding in the current fiscal cycle.

Officials described statutory eligibility and process distinctions: federal VA ratings are required and the department cited statute 29:26.1 for program eligibility and requirements. Lawmakers said that once veterans have federal ratings and have submitted required records, state processing should not take an additional year; the under secretary agreed to dig into specific cases and to provide a clearer timeline and staffing/cost breakdown.

Representatives also questioned funding and cost drivers for veterans homes. Department staff said homes receive a mix of federal per‑diem, state general funds and self‑generated revenue; staffing and medical care are the largest cost drivers. Lawmakers asked the department to gather data about chronic wound care and advanced treatments that, if not available, could increase long‑term medical needs and costs.

Members of the committee asked the department to return with detailed numbers on claims processing, the salaries and FTEs assigned to claims, and the exact amount of approved but unpaid claims. Representative Owen offered to schedule an oversight hearing of the military and veteran affairs committee to examine statutory barriers and possible legislative changes. Department staff said they had requested supplemental funding to cover approved claims.

The hearing concluded with a motion to adjourn.