Wichita Standard

U.S. Senators Jerry Moran (R-Kan.) and Jon Tester (D-Mont.), the ranking member and chairman of the Senate Veterans’ Affairs Committee, have led a bipartisan group demanding action from the Department of Veterans Affairs (VA) following findings by the VA’s Office of Inspector General (OIG). The OIG reported that $10.8 million in PACT Act Critical Skills Incentive (CSI) payments intended for VA employees were improperly awarded to senior executives in the VA Central Office (VACO) in Washington, DC.

"VA’s flagrant misuse of recruitment and retention incentives intended to improve the provision of health care and benefits for veterans by bolstering VA’s front-line workforce is unacceptable and deeply concerning," wrote the senators. "The use of this important authority to instead increase the salaries of executives in VACO is unethical, a violation of VA policy, and in direct opposition to the intent of Congress."

The CSI authority from the PACT Act was designed to enhance healthcare delivery and benefits for veterans by providing incentives to retain highly-skilled employees such as human resources staff, police officers, and housekeepers across the country. However, according to an OIG report dated May 9, 2024, these funds were misappropriated to provide monetary awards to certain VACO executives.

The letter was also signed by Senators Patty Murray (D-Wash.), John Boozman (R-Ark.), Sherrod Brown (D-Ohio), Bill Cassidy, M.D. (R-La.), Richard Blumenthal (D-Conn.), Thom Tillis (R-N.C.), Mazie K. Hirono (D-Hawaii), Kevin Cramer (R-N.D.), Joe Manchin (D-W.Va.), Kyrsten Sinema (I-Ariz.), and Angus King (I-Maine).

From August 2023 through early September 2023, VA improperly awarded CSI payments totaling $10.8 million to 182 executives at VACO. This included 148 executives working for the Veterans Health Administration (VHA) and 34 for the Veterans Benefits Administration (VBA). On average, VACO senior executives received CSIs totaling $59,464—nearly six times more than non-executive occupations within VA medical centers and regional offices.

The OIG found that VHA failed to demonstrate that skills provided by these executives were in high demand based on market data as required by existing guidance. Similarly, VBA's justification was based on insupportable assumptions equating every VBA senior executive with private sector Chief Executive Officers.

Additionally, some CSI executive recipients within VBA and VHA were involved in decision-making processes leading to these awards. Under federal law, employees are prohibited from participating personally in government matters where they have a financial interest. The OIG referred nine senior executives to the U.S. Attorney’s office for potential criminal investigation; however, no investigation has been opened thus far.

"While Congress will continue to conduct vigorous oversight...accountable leadership cannot be legislated," continued the senators. "In an effort to regain public trust, VA must take aggressive steps to ensure transparency and accountability throughout the enterprise."

The senators urged Secretary McDonough to implement all OIG recommendations immediately and provide regular updates on investigations related to this issue.

"We appreciate your attention...and look forward to working with you," concluded the letter.