Joint Medical Facilities Fund Act of 2026

#3992 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on Veterans' Affairs. (3/4/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Joint Medical Facilities Fund Act of 2026" aims to create and codify the "Joint Medical Facility Fund" under the Department of Veterans Affairs to support the joint funding of designated medical facilities operated by both the Department of Defense (DoD) and the Department of Veterans Affairs (VA).

Key components of the legislation include:

1. **Establishment of the Fund**: The Act establishes a fund for financing combined medical facilities that serve both DoD and VA patients.

2. **Funding Mechanisms**: The fund will receive financial contributions from both the Secretary of Defense and the Secretary of Veterans Affairs, based on a jointly developed methodology reflecting the operational costs and healthcare services at these facilities. It also allows for transfers from various medical care collections.

3. **Use of Funds**: The resources in the fund will be utilized for operational costs, maintenance, and minor construction projects at designated facilities, specifically the Captain James A. Lovell Federal Health Care Center.

4. **Administrative Oversight**: The fund's administration will be guided by an executive agreement between the two departments, ensuring fiscal accountability and a collaborative approach in managing the shared resources.

5. **Reporting Requirement**: Within 180 days of the Act's enactment, both departments must report to Congress on which facilities should be designated as combined medical facilities.

Overall, this legislation seeks to streamline and enhance the collaboration between the DoD and VA in providing healthcare services to service members and veterans, improving efficiency and resource allocation at combined medical facilities.

Possible Impacts

The "Joint Medical Facilities Fund Act of 2026" can affect people in several significant ways. Here are three examples:

1. **Improved Healthcare Access for Veterans and Service Members**: By establishing a Joint Medical Facility Fund to support combined Federal medical facilities, veterans and active-duty service members could experience improved access to healthcare services. The funding will facilitate the operation and maintenance of these facilities, potentially leading to shorter wait times, better resources, and enhanced care coordination between the Department of Defense and the Department of Veterans Affairs (VA).

2. **Enhanced Facility Operations**: The legislation allows for financial resources to be allocated for capital equipment, real property maintenance, and minor construction projects at designated medical facilities. This means that facilities like the Captain James A. Lovell Federal Health Care Center could receive necessary upgrades and improvements. Such enhancements could lead to better treatment environments, upgraded medical technologies, and overall improved patient experiences for both veterans and service members.

3. **Accountability and Financial Transparency**: The act mandates the development of an integrated financial reconciliation process between the Department of Defense and the VA. This requirement can improve accountability and transparency in how funds are managed and utilized. As a result, stakeholders—including veterans and their families—may feel more secure knowing that the financial contributions to the Fund are being tracked and used effectively to improve healthcare services, ensuring that taxpayer money is spent efficiently.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3992 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 3992

  To amend title 10, United States Code, to codify authority for the 
   Joint Medical Facility Fund of the Department of Defense and the 
        Department of Veterans Affairs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2026

 Mr. Banks (for himself, Ms. Hirono, and Mr. Sullivan) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend title 10, United States Code, to codify authority for the 
   Joint Medical Facility Fund of the Department of Defense and the 
        Department of Veterans Affairs, and for other 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 ``Joint Medical Facilities Fund Act of 
2026''.

SEC. 2. CODIFICATION OF AUTHORITY FOR JOINT MEDICAL FACILITY FUND OF 
              DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1110c. Joint Medical Facility Fund
    ``(a) Establishment.--There is established on the books of the 
Treasury under the Department of Veterans Affairs a fund to be known as 
the `Joint Medical Facility Fund' (in this section referred to as the 
`Fund').
    ``(b) Purpose.--The purpose of the Fund shall be to facilitate the 
joint funding of designated combined Federal medical facilities of the 
Department of Defense and the Department of Veterans Affairs.
    ``(c) Transfers to Fund.--
            ``(1) In general.--Amounts may be transferred to the Fund 
        by the Secretary of Defense from amounts authorized and 
        appropriated for the Department of Defense and by the Secretary 
        of Veterans Affairs from amounts authorized and appropriated 
        for the Department of Veterans Affairs, as determined by a 
        methodology jointly established by the Secretary of Defense and 
        the Secretary of Veterans Affairs that reflects the mission-
        specific activities, workload, and costs of provision of health 
        care at the facilities of the Department of Defense and the 
        Department of Veterans Affairs, respectively.
            ``(2) Transfers of amounts from medical care collections.--
        Amounts may be transferred to the Fund from medical care 
        collections under the following authorities for health care 
        provided at designated combined Federal medical facilities of 
        the Department of Defense and the Department of Veterans 
        Affairs:
                    ``(A) Section 1095 of this title.
                    ``(B) Section 1729 of title 38.
                    ``(C) The Act entitled `An Act to provide for the 
                recovery from tortiously liable third persons of the 
                cost of hospital and medical care and treatment 
                furnished by the United States' (Public Law 87-693; 42 
                U.S.C. 2651 et seq.; commonly known as the `Federal 
                Medical Care Recovery Act').
    ``(d) Availability of Amounts in Fund.--
            ``(1) In general.--Amounts transferred to the Fund under 
        subsection (c) shall be available to fund the operations of 
        designated combined Federal medical facilities of the 
        Department of Defense and the Department of Veterans Affairs, 
        including capital equipment, real property maintenance, and 
        minor construction projects that are not required to be 
        specifically authorized by law under section 2805 of this title 
        or section 8104 of title 38.
            ``(2) Captain james a. lovell federal health care center.--
        Amounts transferred to the Fund by the Secretary of Defense 
        under subsection (c) may be used for facility operations of the 
        Captain James A. Lovell Federal Health Care Center, consisting 
        of the North Chicago Veterans Affairs Medical Center, the Navy 
        Ambulatory Care Center, and supporting facilities designated as 
        a combined Federal medical facility under an operational 
        agreement covered by section 706 of the Duncan Hunter National 
        Defense Authorization Act for Fiscal Year 2009 (Public Law 110-
        417; 122 Stat. 4500).
            ``(3) Limitation.--The availability of amounts transferred 
        to the Fund under subsection (c)(2) shall be subject to the 
        provisions of section 1729A of title 38.
            ``(4) Period of availability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), amounts transferred to the Fund under 
                subsection (c) shall remain available under this 
                subsection until the end of the first fiscal year 
                beginning after the date of the transfer.
                    ``(B) Exception.--Of the amount transferred to the 
                Fund under subsection (c) in a fiscal year, an amount 
                not to exceed two percent of such amount shall remain 
                available under this subsection until the end of the 
                second fiscal year beginning after the date of the 
                transfer.
    ``(e) Executive Agreement.--
            ``(1) Fund administration.--
                    ``(A) In general.--The Fund shall be administered 
                in accordance with an executive agreement between the 
                Secretary of Defense and the Secretary of Veterans 
                Affairs.
                    ``(B) Guidelines.--The executive agreement under 
                subparagraph (A) shall be consistent with section 706 
                of the Duncan Hunter National Defense Authorization Act 
                for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 
                4500) and shall provide for an independent review of 
                the methodology established under subsection (c)(1).
            ``(2) Financial reconciliation.--
                    ``(A) In general.--The executive agreement between 
                the Secretary of Defense and the Secretary of Veterans 
                Affairs under paragraph (1)(A) shall provide for the 
                development and implementation of an integrated 
                financial reconciliation process that meets the fiscal 
                reconciliation requirements of the Department of 
                Defense and the Department of Veterans Affairs.
                    ``(B) Identification of contributions.--The process 
                under subparagraph (A) shall permit the Department of 
                Defense and the Department of Veterans Affairs to 
                identify their fiscal contributions to the Fund, taking 
                into consideration accounting, workload, and financial 
                management differences.''.
    (b) Conforming Repeal.--Section 1704 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 
2571), as most recently amended by section 1421 of the Servicemember 
Quality of Life Improvement and National Defense Authorization Act for 
Fiscal Year 2025 (Public Law 118-159), is repealed.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
Veterans Affairs shall jointly submit to the Committee on Veterans' 
Affairs and the Committee on Appropriations of the Senate and the 
Committee on Veterans' Affairs and the Committee on Appropriations of 
the House of Representatives a report indicating medical facilities of 
the Department of Defense or the Department of Veterans Affairs that 
either Secretary, or both, considers appropriate to be designated as 
combined Federal medical facilities of the Department of Defense and 
the Department of Veterans Affairs.
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