Veterans Affairs building in Washington D.C. (Photo: Pablo Martinez Monsivais/AP)

The VA is facing scrutiny after a federal watchdog revealed the agency made billions of dollars in disability compensation mistakes over the last four years. These errors, linked to poor training and outdated systems, have left thousands of Veterans either underpaid or facing unexpected debts.

The issues stem from the implementation of the PACT Act, a 2022 law that expanded benefits for Veterans exposed to toxic substances during their military service. As more Veterans and survivors became eligible for compensation, the VA struggled to manage the surge in claims. Brent Arronte, Deputy Assistant Inspector General for Audits and Evaluations, told lawmakers that VA claims processors were unprepared to interpret and apply the new regulations, resulting in widespread miscalculations.

A review of PACT Act-related claims filed between August 2022 and August 2023 found that about one in four were calculated incorrectly. Between May 2022 and April 2023, errors involving Veterans rated as unemployable led to $85 million in underpayments and $10 million in overpayments. Survivors of deceased Service Members were shorted by an estimated $33.1 million during the first seven months of 2023 alone.

From fiscal year 2021 through 2024, the VA issued at least $5.1 billion in overpayments. Nearly $1.4 billion of that occurred in 2024, according to lawmakers. Although these errors account for less than one percent of the VA’s total $161 billion compensation budget, they have created financial stress for Veterans and their families.

“Our Veterans live paycheck to paycheck,” said Rep. Morgan Luttrell (R-Texas) chairman of the House Subcommittee on Disability Assistance and Memorial Affairs. “The worst thing you can do is overpay a Veteran and then tell them they have to give it back.”

Nina Tann, executive director of the VA’s compensation service, said many payment problems come from late or missing updates from Veterans about changes in their eligibility. These include deaths, divorces, and changes in income or dependent status. She said the VA is improving outreach and training and recently corrected an administrative error that caused duplicate payments for around 15,000 Veterans with dependents.

Arronte emphasized the need for better tools and more consistent training. He said claims processors rely on outdated software to determine benefit start dates and must navigate frequently changing policies scattered across multiple systems.

Lawmakers stressed that while progress has been made, it is not enough. “We must ensure the VA delivers the right benefits the first time,” Luttrell said. “Veterans should not be responsible for fixing government mistakes.”

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.