VA Contracting and Procurement Act

#6549 | HR Congress #119

Subjects:

Last Action: Committee Hearings Held (3/18/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "VA Contracting and Procurement Act" aims to amend Title 38 of the United States Code by placing financial limitations on the Secretary of Veterans Affairs regarding contracts and agreements. Specifically, it restricts the Secretary from obligating or spending more than $50 million on any contract or agreement unless those funds have been explicitly authorized by law. This limitation is designed to ensure greater oversight and accountability in the use of federal funds for veterans' services.

However, there are exceptions to this limitation during declared wars, national emergencies, major disasters, and public health emergencies, allowing for more flexibility in urgent situations. The Act also introduces similar restrictions for agreements related to the Veterans Community Care Program and health care administration within Department facilities. Additionally, it establishes a notification process for proposed agreements exceeding the $50 million threshold, requiring the Secretary to inform Congress and allowing Congress to oppose such agreements through a joint resolution. Overall, the legislation seeks to enhance fiscal responsibility in the management of veterans' services while still permitting necessary flexibility in emergency situations.

Possible Impacts

The "VA Contracting and Procurement Act" outlined in the provided legislation could affect people in several significant ways:

1. **Impact on Veterans Services**: The limitation on the obligation or expenditure of funds by the Secretary of Veterans Affairs could lead to delays or reductions in the availability of services and resources for veterans. If contracts or agreements exceeding $50 million are not specifically authorized by law, vital programs and services, such as healthcare, disability benefits, and community care initiatives, may face funding constraints, which could negatively impact the quality and accessibility of care for veterans.

2. **Increased Oversight and Transparency**: The requirement for the Secretary of Veterans Affairs to notify Congress regarding proposed agreements exceeding the funding threshold could enhance oversight and transparency in the procurement process. This legislative requirement ensures that Congress has a say in significant financial commitments, potentially leading to better-informed policymaking and increased accountability for how veterans' funds are spent. However, it may also slow down the procurement process, potentially delaying urgent projects.

3. **Responses to Emergencies**: The exceptions provided in the legislation for situations such as declared wars, national emergencies, or major disasters allow for more flexible spending during critical times. This could enable the Department of Veterans Affairs to respond more effectively to urgent needs arising from unforeseen situations, such as providing immediate medical care or support services in response to a public health crisis. However, the reliance on these exceptions may also highlight a lack of proactive planning for funding needs in routine operations or unforeseen circumstances.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6549 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 6549

   To amend title 38, United States Code, to limit the obligation or 
 expenditure of funds by the Secretary of Veterans Affairs for certain 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2025

 Mr. Bergman introduced the following bill; which was referred to the 
  Committee on Veterans' Affairs, and in addition to the Committee on 
 Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to limit the obligation or 
 expenditure of funds by the Secretary of Veterans Affairs for certain 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``VA Contracting and Procurement 
Act''.

SEC. 2. LIMITATION ON OBLIGATION OR EXPENDITURE OF FUNDS BY THE 
              SECRETARY OF VETERANS AFFAIRS FOR CERTAIN PURPOSES.

    (a) Contracts and Personal Services.--Section 513 of title 38, 
United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary''; and
            (2) by adding at the end the following new subsection:
    ``(b) Limitation on Obligation or Expenditure of Funds.--(1) 
Subject to paragraph (2), the Secretary may not obligate or expend more 
than $50,000,000 for any contract or agreement under this section 
unless funds for such agreement have been specifically authorized by 
law.
    ``(2) The limitation under paragraph (1) shall not apply during--
            ``(A) a war declared by Congress;
            ``(B) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(C) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(D) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(i) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(ii) a medical facility of the Department is 
                affected by such major disaster; or
            ``(E) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.
    (b) Veterans Community Care Program.--Section 1703 of title 38, 
United States Code, is amended--
            (1) by redesignating subsection (q) as subsection (r); and
            (2) by inserting after subsection (p) the following new 
        subsection (q):
    ``(q) Limitation on Obligation or Expenditure of Funds.--(1) 
Subject to paragraph (2), the Secretary may not obligate or expend more 
than $50,000,000 for any agreement under this section unless funds for 
such agreement have been specifically authorized by law.
    ``(2) The limitation under paragraph (1) shall not apply during--
            ``(A) a war declared by Congress;
            ``(B) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(C) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(D) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(i) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(ii) a medical facility of the Department is 
                affected by such major disaster; or
            ``(E) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.
    (c) Agreements To Administer the Furnishing of Health Care in 
Department Facilities.--Section 1721 of title 38, United States Code, 
is amended--
            (1) in the section heading, by adding ``and to enter into 
        agreements'' after ``Regulations'' (and conforming the table of 
        sections at the beginning of such chapter accordingly);
            (2) by inserting ``(a) Rules and Regulations.--'' before 
        ``Rules and regulations''; and
            (3) by adding at the end the following new subsection:
    ``(b) Agreements.--(1) The Secretary may enter into an agreement 
(including an agreement regarding information technology) to administer 
the furnishing of care described in subsection (a).
    ``(2) Subject to paragraph (2), the Secretary may not obligate or 
expend more than $50,000,000 for any agreement under this section 
unless funds for such agreement have been specifically authorized by 
law.
    ``(3) The limitation under paragraph (2) shall not apply during--
            ``(A) a war declared by Congress;
            ``(B) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(C) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(D) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(i) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(ii) a medical facility of the Department is 
                affected by such major disaster; or
            ``(E) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.
    (d) Administration of Educational Benefits.--Subchapter III of 
chapter 36 of title 38, United States Code, is amended by inserting 
after section 3698A the following new section (and conforming the table 
of sections at the beginning of such chapter accordingly):
``Sec. 3698B. Limitation on obligation or expenditure of funds
    ``(a) Limitation.--The Secretary may not obligate or expend more 
than $50,000,000 for any agreement under this chapter unless--
            ``(1) funds for such agreement have been specifically 
        authorized by law; or
            ``(2)(A) the Secretary has submitted a notification 
        described in subsection (b) regarding such agreement;
            ``(B) 30 legislative days have elapsed after the date of 
        such submission; and
            ``(C) Congress has not enacted a joint resolution described 
        in subsection (c) regarding such agreement.
    ``(b) Notification.--(1) A notification described in this 
subsection is a notification--
            ``(A) submitted by the Secretary to the Committees on 
        Veterans' Affairs of the Senate and the House of 
        Representatives; and
            ``(B) that describes a proposed agreement subject to the 
        limitation under subsection (a).
    ``(2) A notification under this subsection shall include the 
following with respect to such proposed agreement:
            ``(A) The purpose.
            ``(B) The scope.
            ``(C) The estimated total cost.
            ``(D) The anticipated period of performance.
    ``(c) Joint Resolution.--A joint resolution of disapproval 
described in this subsection is a joint resolution--
            ``(1) introduced not later than 10 legislative days after 
        receipt of a notification under subsection (b);
            ``(2) the matter after the resolving clause of which is as 
        follows: `That Congress disapproves the proposed agreement 
        described by the Secretary of Veterans Affairs in the 
        notification submitted under section 3698B of title 38, United 
        States Code, on ____________________.', the blank space being 
        filled with the appropriate date; and
            ``(3) considered pursuant to the expedited procedures in 
        subsections (d), (f), and (g) of section 802 of title 5.''.
    (e) Administration of Benefits.--Chapter 53 of title 38, United 
States Code, is amended by adding at the end the following new section 
(and conforming the table of sections at the beginning of such chapter 
accordingly):
``Sec. 5322. Limitation on obligation or expenditure of funds
    ``(a) Limitation.--Subject to subsection (b), the Secretary may not 
obligate or expend more than $50,000,000 for any agreement under this 
chapter unless funds for such agreement have been specifically 
authorized by law.
    ``(b) Applicability.--The limitation under subsection (a) shall not 
apply during--
            ``(1) a war declared by Congress;
            ``(2) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(3) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(4) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(A) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(B) a medical facility of the Department is 
                affected by such major disaster; or
            ``(5) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.
    (f) Procurement of Health-Care Items.--Section 8127 of title 38, 
United States Code, is amended--
            (1) in subsection (c), by striking ``subsection (a) or 
        (b)'' and inserting ``subsection (a), (b), or (c)'';
            (2) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(4) The term `domestic preference statute' has the 
        meaning given such term in section 70923(f) of the 
        Infrastructure Investment and Jobs Act (Public Law 117-58; 41 
        U.S.C. 8301 note).'';
            (3) by redesignating subsections (c) and (d), as amended, 
        as subsections (d) and (e), respectively; and
            (4) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c)(1) The Secretary shall procure a health-care item for an All-
Hazards Emergency Cache of the Department in compliance with the 
domestic preference statutes.
    ``(2) The limitation under paragraph (1) shall not apply if, during 
an emergency, the Secretary determines that procurement in compliance 
with the domestic preference statutes would threaten the health or 
safety of veterans.
    ``(3) Not later than 30 days after procuring a health-care item 
pursuant to paragraph (2), the Secretary shall submit to the Committees 
on Veterans' Affairs of the Senate and House of Representatives a 
written notice. Such notice shall include--
            ``(A) an identification of the emergency;
            ``(B) an identification of the health-care item procured;
            ``(C) an estimate of the cost of such procurement; and
            ``(D) an explanation why the Secretary could not procure 
        the health-care item in compliance with the domestic preference 
        statutes.
    ``(4) Not later than November 1 of each year, the Secretary shall 
certify to the Committees on Veterans' Affairs of the Senate and House 
of Representatives whether the Secretary complied with the limitation 
under paragraph (1) during the fiscal year that ended most recently.''.
    (g) Small Business Concerns Owned and Controlled by Veterans: 
Contracting Goals and Preferences.--Section 8127 of title 38, United 
States Code, is amended--
            (1) by redesignating subsection (m) as subsection (n); and
            (2) by inserting after subsection (l) the following new 
        subsection (m):
    ``(m) Limitation on Obligation or Expenditure of Funds.--(1) 
Subject to paragraph (2), the Secretary may not obligate or expend more 
than $50,000,000 for any agreement under this section unless funds for 
such agreement have been specifically authorized by law.
    ``(2) The limitation under paragraph (1) shall not apply during--
            ``(A) a war declared by Congress;
            ``(B) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(C) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(D) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(i) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(ii) a medical facility of the Department is 
                affected by such major disaster; or
            ``(E) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.
    (h) Sharing of Health-Care Resources.--Section 8153 of title 38, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(h)(1) Subject to paragraph (2), the Secretary may not obligate 
or expend more than $50,000,000 for any agreement under this section 
unless funds for such agreement have been specifically authorized by 
law.
    ``(2) The limitation under paragraph (1) shall not apply during--
            ``(A) a war declared by Congress;
            ``(B) a case described in section 4(a)(1) of the War Powers 
        Resolution (Public Law 93-148; 50 U.S.C. 1543(a)(1));
            ``(C) a national emergency declared by the President under 
        the National Emergencies Act (Public Law 94-412; 50 U.S.C. 1601 
        et seq.);
            ``(D) a major disaster declared by the President under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) if--
                    ``(i) such agreement is to be carried out in a 
                State affected by such major disaster; and
                    ``(ii) a medical facility of the Department is 
                affected by such major disaster; or
            ``(E) a public health emergency declared by the Secretary 
        of Health and Human Services under section 319 of the Public 
        Health Service Act (42 U.S.C. 247d).''.

SEC. 3. PROCUREMENT OF PROSTHETIC APPLIANCES AND SURGICAL IMPLANTS.

    (a) In General.--Section 8123 of title 38, United States Code, is 
amended to read as follows (and the table of sections at the beginning 
of chapter 81 of such title is amended accordingly):
``Sec. 8123. Procurement of prosthetic appliances and surgical implants
    ``(a) Authority.--The Secretary may procure prosthetic appliances 
and surgical implants by purchase, manufacture, contract, or in such 
other manner that the Secretary determines to be proper.
    ``(b) Catalog.--(1) The Secretary shall maintain a catalog of 
prosthetic appliances and surgical implants that the Secretary procures 
by purchase or contract.
    ``(2) The Secretary shall coordinate with the Secretary of Defense 
to ensure that such catalog requires the same data regarding a 
prosthetic appliance or surgical implant that is required by the 
Defense Health Agency.
    ``(3) The Secretary shall implement a process by which a 
manufacturer of a prosthetic appliance or surgical implant may propose 
to the Secretary a proposed revision to such catalog (including with 
regards to form, size, generation, or model)--
            ``(A) by standardized and electronic means;
            ``(B) that minimizes the documentation required by such a 
        manufacturer.
    ``(c) Purchase Orders for Surgical Implants.--The Secretary shall 
procure all surgical implants used in a medical procedure through--
            ``(1) a firm-fixed price single purchase order submitted 
        and processed through the Prosthetic and Sensory Aids Service 
        of the Department;
            ``(2) in accordance with the Federal Acquisition 
        Regulation; and
            ``(3) a process that--
                    ``(A) eliminates duplicative billing; and
                    ``(B) allows the Secretary to correct errors in 
                real time.
    ``(d) Definitions.--In this section:
            ``(1) The term `Federal Acquisition Regulation' means the 
        Federal Acquisition Regulation issued pursuant to section 
        1303(a)(1) of title 41.
            ``(2) The term `firm-fixed price' has the meaning given 
        such term in the Federal Acquisition Regulation.
            ``(3) The term `prosthetic appliance' includes any service 
        or product required in the fitting, supplying, training, or use 
        of a prosthetic appliance.
            ``(4) The term `surgical implant' includes any item used in 
        a surgery regarding a surgical implant, including an 
        implantable device, a screw, guidewire, or surgical tool.''.
    (b) Implementation.--The Secretary of Veterans Affairs shall 
implement--
            (1) subsection (c) of such section, as added by this 
        section, not later than one year after the date of the 
        enactment of this Act; and
            (2) subsection (b) of such section, as added by this 
        section, not later than three years after the date of the 
        enactment of this Act. Until the Secretary implements such 
        subsection, the Secretary shall accept a proposed revision 
        described in such subsection during at least two periods, 
        prescribed by the Secretary, per year.
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