Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

Veterans Affairs Asset and Infrastructure

Review Act: Timeline and Funding

December 17, 2021

Congressional Research Service

https://crsreports.congress.gov

R46992

SUMMARY

Veterans Affairs Asset and Infrastructure

Review Act: Timeline and Funding

In the early 2000s, the Department of Veterans Affairs (VA) undertook a review of its health care

infrastructure through the Capital Asset Realignment for Enhanced Services (CARES) initiative.

In 2004, the VA released a series of recommendations developed through CARES that called for

the acquisition, modernization, consolidation, and closure of numerous Veterans Health

Administration (VHA) medical facilities. Many of the recommendations were not implemented,

however, and subsequent assessments concluded that VA’s capital assets were not aligned with

the future care needs of America’s veterans.

R46992

December 17, 2021

Garrett Hatch

Specialist in American

National Government

In an effort to facilitate large-scale changes to VHA’s capital asset portfolio, Congress in 2018 passed the Asset Infrastructure

Review Act (AIR Act), Title II of the VA MISSION Act (P.L. 115-182). The act establishes a new process for the

development, review, approval, and implementation of a list of recommendations for the modernization and realignment of

VHA medical facilities. The act requires the VA Secretary to develop the initial list of recommendations, including the

acquisition of new space, the modernization of existing space, and the disposal of unneeded space. The Secretary is required

to consult with veterans and local officials when developing the recommendations. The recommendations are to be submitted

to the Asset and Infrastructure Review Commission by January 31, 2022. The commission, comprised of nine members

nominated by the President and approved by the Senate, reviews the recommendations and holds public hearings. It may

propose changes under the limited circumstances prescribed in the AIR Act. The commission is required to submit the final

list of recommendations to the President by January 31, 2023. The President is to notify the commission and Congress if it

approves or disapproves the list by February 15, 2023. If disapproved, the commission may revise the recommendations and

submit a new list by March 15, 2023. The President has until March 30, 2023, to approve the commission’s initial or revised

recommendations in their entirety and submit them to Congress or the modernization and realignment process terminates. If

the President approves of the recommendations, Congress has 45 days from the date of approval to terminate the process by

enacting a joint resolution of disapproval. If Congress does not enact a joint resolution of disapproval, VA is required to

implement the recommendations.

Real property funding for the construction, alteration, and repairs of VHA medical facilities is generally appropriated to three

accounts: (1) major construction (projects over $20 million); (2) minor construction (projects under $20 million); and (3)

non-recurring maintenance (NRM). In FY2021, the major construction account received $1.316 billion, minor construction

received $357 million, and NRM received $2.097 billion. The AIR Act established a new account in Treasury, known as the

Department of Veterans Affairs Asset and Infrastructure Review Account to be used expressly for the purpose of funding the

realignment and modernization of VHA facilities pursuant to AIR Act recommendations. The account is authorized to receive

direct appropriations as well as proceeds generated by the lease transfer, or disposal of real property under the AIR Act. VA

submitted its first funding request for the account in its FY2022 budget justification—$5 million to support the operations of

the commission.

Some have likened the AIR Act to Base Realignment and Closure (BRAC) legislation, whereby the Department of Defense

(DOD) recommends the closure or relocation of military installations. There are some similarities between the two processes,

notably that both BRAC legislation and the AIR Act (1) utilize independent commissions to develop recommendations; and

(2) do not allow Congress to amend the list, only to pass a joint resolution of disapproval to prevent the recommendations

approved by the President from being implemented. There are many differences, as well. For example, whereas AIR Act

recommendations are directed at meeting the needs and preferences of veterans and communities, BRAC recommendations

are intended to meet a need internal to the government—creating a base structure that efficiently and effectively supports

DOD forces.

Congressional Research Service

Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

Contents

Background ..................................................................................................................................... 1

AIR Act Timeline ............................................................................................................................ 3

Overview ................................................................................................................................... 4

Recommendation Timeline ....................................................................................................... 4

June 6, 2018: Air Act Becomes Law ................................................................................... 5

February 1, 2021: VA Publishes Draft Selection Criteria ................................................... 5

February 5, 2021: VA Publishes Notice of Market Assessments ........................................ 5

May 31, 2021: Commissioners Nominated......................................................................... 5

May 31, 2021: VA Publishes Final Selection Criteria......................................................... 6

January 31, 2022: VA Submits List of Recommendations .................................................. 6

February 1, 2022-January 30, 2023: Commission Reviews Recommendations ................. 6

January 31, 2023: Commission Submits Recommendations to President .......................... 6

February 15, 2023: President Approves or Disapproves Recommendations ...................... 7

March 1, 2023: President Transmits Reasons for Disapproval ........................................... 7

March 15, 2023: Commission Resubmits Recommendations ............................................ 7

March 30, 2023: President Transmits Recommendations to Congress ............................... 7

45 Days After President Transmits Recommendations: Deadline for Congress to

Disapprove ....................................................................................................................... 7

Not Later than March 2026: VA Begins Implementing Recommendations ........................ 7

Funding............................................................................................................................................ 9

Concluding Observations .............................................................................................................. 10

Figures

Figure 1. Overview of the Recommendation Timeline ................................................................... 4

Figure 2. Detailed Timeline of the Recommendation Process ........................................................ 8

Tables

Table 1. VA Real Property Summary ............................................................................................... 1

Table 2.VA Capital Asset Funding, Selected Accounts, FY2017-FY2021 ...................................... 9

Appendixes

Appendix A: Base Realignment and Closure Legislation .............................................................. 11

Contacts

Author Information........................................................................................................................ 12

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Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

Background1

The Department of Veterans Affairs (VA) provides health care services through the Veterans

Health Administration (VHA) for approximately 9.21 million enrolled veterans2 at 1,389 VA sites

of care.3 The VHA operates one of the nation’s largest publicly funded integrated direct health

care delivery systems.4 VHA is the largest and most visible administration within VA, and it

accounts for about 98% of VA’s capital asset portfolio (see Table 1). This includes 5,625 VHAowned buildings with a total of 152.8 million square feet of space on 16,373 acres of land. The

portfolio also includes 1,690 leases with a total of 20.1 million square feet of space.5 According to

FY2020 data, VA is the federal government’s third largest real property holder, in terms of square

feet, behind the Department of Defense (DOD) and the General Services Administration (GSA).6

Table 1. VA Real Property Summary

VA Capital Asset Inventory, as of September 30, 2020

Owned Assets

Office

Buildings

Historic

Buildings

Building Sq.Ft.

Leased Assets

Vacant

Sq.Ft.

Land

Acres

Operational

Leases

Lease Sq.Ft.

VHAa

5,625

2,088

152,823,638

5,502,627

16,373

1,690

20,147,336

VBAb

14

0

735,322

0

31

179

4,511,342

NCAc

606

146

1,320,383

63,371

22,903

9

29,691

Staff Officesd

10

1

1,771,034

0

193

105

3,382,380

6,255

2,235

156,650,377

5,565,998

39,500

1,983

28,070,749

Totals

Source: Department of Veterans Affairs, FY2022 Budget Submission, Construction, Long Range Capital Plan, and

Appendices, vol. 4 of 4, May 28, 2021, p. 6.2-7.

Notes:

a. Veterans Health Administration.

b. Veterans Benefits Administration.

c. National Cemetery Administration.

d. Staff Offices are General Counsel; Inspector General; Enterprise Integration; Public and Intergovernmental

Affairs; Congressional and Legislative Affairs; Acquisition, Logistics, and Construction Management; Human

Resources and Administration; and Information Technology.

1 This section was written by Sidath Panangala, Specialist in Veterans Policy.

2 Department of Veterans Affairs, FY2022 Budget Submission, Medical Programs and Information Technology

Programs, vol. 2 of 4, May 28, 2021, p. VHA – 38.

3 Department of Veterans Affairs, FY2022 Budget Submission, Medical Programs and Information Technology

Programs, vol. 2 of 4, May 28, 2021, p. VHA – 443. Sites of care used in this calculation are VA hospitals, community

living centers, health care centers, community-based outpatient clinics (CBOCs), and other outpatient service sites.

4 Department of Veterans Affairs, FY 2009 Performance and Accountability Report, Washington, DC, November 16,

2009, p. I-42. Established on January 3, 1946, as the Department of Medicine and Surgery by P.L. 79-293, succeeded

in 1989 by the Veterans Health Services and Research Administration, renamed the Veterans Health Administration in

1991.

5 Department of Veterans Affairs, FY2022 Budget Submission, Medical Programs and Information Technology

Programs, vol. 2 of 4, May 28, 2021, p. VHA – 443.

6 U.S. General Services Administration, FY2020 FRPP Summary Data Set, at https://www.gsa.gov/policy-regulations/

policy/real-property-policy/data-collection-and-reports/frpp-summary-report-library.

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Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

The last major comprehensive review of VA real property and medical facilities throughout the

country was done under the Capital Asset Realignment for Enhanced Services (CARES) program.

In October 2000, VA established the CARES program with the goal of evaluating the projected

health care needs of veterans over the next 20 years and of realigning VA’s infrastructure to better

meet those needs. In August 2003, VA’s then-Undersecretary for Health issued a preliminary

Draft National CARES Plan (DNCP). The DNCP, among other things, recommended that seven

VA health care facilities be closed and that duplicative clinical and administrative services

delivered at over 30 other VHA facilities be eliminated. The DNCP also recommended the

construction of two new major medical facilities and funding infrastructure upgrades at numerous

sites. In addition, the draft plan called for the establishment of 48 new high-priority Community

Based Outpatient Clinics (CBOCs).

Following the release of the DNCP, then-VA Secretary Anthony Principi appointed a 16-member

independent commission to study the draft plan. The commission was composed of individuals

from a wide variety of backgrounds outside of the federal government. The CARES Commission

developed and applied six factors in the review of each proposal in the DNCP: (1) impact on

veterans’ access to health care, (2) impact on health care quality, (3) veteran and stakeholder

views, (4) economic impact on the community, (5) impact on VA missions and goals, and (6) cost

to the government. The commission conducted 38 public hearings and 81 site visits throughout

2003 and submitted its recommendations to the Secretary in February 2004. After reviewing the

recommendations, the Secretary announced the final details of the CARES plan in May 2004

(Secretary’s CARES Decision). The final plan called for consolidating several facilities, as well

as building new hospitals in Orlando and Las Vegas; adding 156 new CBOCs, four new spinal

cord injury centers, and two blind rehabilitation centers; and expanding mental health outpatient

services nationwide. However, critics of the CARES plan contended that closures were

considered without assessing what kind of facilities would be needed for long-term care and

mental health care in the future. Also, some believed that the CARES plan did not focus enough

on future nursing home needs, would leave VA short of beds in a few decades, and, as a result,

would leave VA with no choice but to privatize some parts of the health care system. Moreover,

some veterans’ groups believed that CARES was about closing “surplus” hospitals and did not

believe CARES would result in the building of new and modern facilities. Finally, the closure of

some VA medical facilities raised serious concern among some Members of Congress who felt

that they had little control over the CARES process.7

A subsequent assessment of the VA health care system, required by Section 201 of Veterans

Access, Choice, and Accountability Act of 2014 (VACAA; P.L. 113-146),8 found that

[c]urrent facilities, whether they have been maintained adequately or not, often do not

match current models of care. The overwhelming majority of VHA hospitals were designed

when care was focused more heavily around inpatient hospital treatments. Over the past

eight years, Veteran inpatient bed days of care have declined nearly ten percent while

outpatient clinic workload has increased more than 40 percent. Space for outpatient care is

typically housed in converted inpatient spaces or VHA’s growing number of clinics. As a

result, VHA’s capital needs fall into a broad range of categories, including ensuring

adequate facility condition, providing sufficient and appropriate space for Veteran care,

7 Honorable Bob Graham, “Statements on Introduced Bill and Joint Resolutions,” remarks in the Senate, Congressional

Record, 108th Congress, vol. 149 (June 18, 2003), p. S8135.

8 For more information, see CRS Report R43704, Veterans Access, Choice, and Accountability Act of 2014 (H.R. 3230;

P.L. 113-146).

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Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

and upgrading infrastructure. As facilities age further and care continues to shift to the

outpatient setting, the size of the capital need could continue to grow. 9

Furthermore, a new Commission on Care was established by VACAA “to examine the access of

veterans to health care from the Department of Veterans Affairs and strategically examine how

best to organize the [VHA], locate health resources, and deliver health care to veterans.”10 In its

final report, it recommended that the VA “develop and implement a robust strategy for meeting

and managing VHA’s facility and capital asset needs.”11

Within this context, the House Committee on Veterans’ Affairs (HVAC) began to examine VA’s

capital asset program in the summer of 2017. At a hearing held on July 12, 2017, former

Secretary Principi testified, “under CARES there was no requirement for Congress to adopt or

reject the commission’s final recommendations as a package. As a result, recommendations for

some needed new hospitals and outpatient clinics were accepted. Most of those to change,

realign, or maybe close the mission of other facilities were rejected.”12

Based on input and recommendations from various stakeholders, the VA Asset and Infrastructure

Review Act (AIR Act) of 2017 (H.R. 4243) was introduced in the 115th Congress. H.R. 4243 was

ordered reported by the Committee on Veterans’ Affairs on November 8, 2018, but did not reach

the floor for a vote. Provisions from H.R. 4243 were incorporated as Title II of the Senate version

of the VA MISSION Act (S. 2372)—legislation that addressed a range of VA health care issues.

The MISSION Act was signed into law on June 6, 2018 (P.L. 115-182).13

The remainder of this report provides an overview of the AIR Act (as Title II of the MISSION Act

was labeled) and then discusses in greater detail how recommendations for the modernization and

realignment of VHA’s real property portfolio are developed, approved (or disapproved), and

implemented under the act. The report then provides data on VA real property funding FY2017FY2022 and concludes with policy considerations related to real property data quality and

portfolio decisions at VA.

AIR Act Timeline

As noted, the AIR Act has its origins in long-standing concerns that VA’s medical infrastructure is

not optimally configured to effectively and efficiently meet the evolving health care needs of

America’s veterans. To address these concerns, the AIR Act establishes a new process for

developing, vetting, and implementing recommendations for the modernization or realignment of

medical facilities under the control of VHA. The process is described in broad terms below and in

more detail in the following paragraphs of this report.

9 CMS Alliance to Modernize Healthcare Federally Funded Research and Development Center, MITRE Corporation,

Independent Assessment of the Health Care Delivery Systems and Management Processes of the Department of

Veterans Affairs, Volume I: Integrated Report, September 1, 2015, pp. K-2.

10 The Veterans Access, Choice, and Accountability Act of 2014 (P.L. 113-146, as amended).

11 Commission on Care, Final Report of the Commission on Care, June 30, 2016, p. 55.

12 U.S. Congress, House Committee on Veterans’ Affairs, Care Where It Counts: Assessing VA’s Capital Asset Needs,

115th Cong., 1st sess., July 12, 2017 (Washington, DC: GPO, 2018), p. 5.

13 For more information and summary of the VA MISSION Act, see CRS Report R45390, VA Maintaining Internal

Systems and Strengthening Integrated Outside Networks Act of 2018 (VA MISSION Act; P.L.115-182).

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Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

Overview

The AIR Act requires the VA Secretary to develop the initial list of recommendations, including

the acquisition of new space, the modernization of existing space, and the disposal of unneeded

space. The VA Secretary is required to submit the recommendations to the Asset and

Infrastructure Review Commission by January 31, 2022. The commission, comprised of nine

members nominated by the President and approved by the Senate, reviews the recommendations

and may propose changes under limited circumstances prescribed in the AIR Act. The

commission is required to submit the final list of recommendations to the President by January

31, 2023. The President has until March 30, 2023, to approve the commission’s recommendations

in their entirety and submit them to Congress or the modernization and realignment process

terminates. Once the President approves of the recommendations, Congress has 45 days to

terminate the process by enacting a joint resolution of disapproval. Such action must occur by

May 15, 2023. If Congress does not enact a joint resolution of disapproval, VA is required to

implement the recommendations. The latest date VA may begin implementing the approved

recommendations is March 30, 2026. Figure 1, below, provides an abbreviated view of the

recommendation process.

Figure 1. Overview of the Recommendation Timeline

Source: Created by CRS using Title II of the VA MISSION Act of 2018 (P.L. 115-182).

Recommendation Timeline

Within the broad steps outlined above, the Air Act establishes additional deadlines and mandates.

For example, the act requires the use of objective criteria in decisionmaking and consultation with

veterans and local leaders when developing, changing, and implementing Air Act

recommendations. Figure 2, at the end of this section, provides a detailed view of this timeline

along with a brief description of the actions required.

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June 6, 2018: Air Act Becomes Law

February 1, 2021: VA Publishes Draft Selection Criteria

The Air Act requires VA, in consultation with Veterans Service Organizations (VSOs), to develop

criteria for making recommendations and publish those criteria by February 1, 2021. VA

published the draft criteria in the Federal Register on February 2, 2021.14

February 5, 2021: VA Publishes Notice of Market Assessments

The act requires VA to conduct market assessments to determine the capacity of its medical

facilities to meet the current and future health care needs of veterans in each of 18 service

regions, known as Veterans Integrated Services Networks (VISNs). As part of the assessment

process, VA is required to consult with VSOs and veterans in each VISN to hear about their

experiences with the VA health care system and learn their preferences for care delivery in the

future. On February 5, 2021, VA published a notice in the Federal Register informing the public

that the agency would hold a series of “listening sessions” to obtain the input of veterans and

other stakeholders.15

May 31, 2021: Commissioners Nominated

The act requires the establishment of a nine-member Asset and Infrastructure Review

Commission. The President appoints all nine members with the advice and consent of the Senate.

The President is required to consult with House and Senate leadership and congressionally

chartered, membership-based veterans organizations when selecting individuals to nominate to

the commission. The President shall designate one nominee to serve as Chair of the commission

and one nominee to serve as Vice Chair.

In nominating individuals, the President shall ensure that the commission adequately represents

the current demographics of veterans. In addition, the commission is to include







at least one member with experience working for a private integrated health care

system with annual gross revenues of more than $50 million;

at least one member with experience as a senior manager at DOD, Indian Health

Service, or a Federally Qualified Health Center;

at least one member with experience with capital asset management for the

federal government and who is familiar with trades related to building and real

property; and



at least three members who represent congressional chartered, membership-based

VSOs.

The deadline for nominations was May 31, 2021. The President had not nominated any

commissioners by December 15, 2021.

14 Department of Veterans Affairs, “Draft Criteria for Section 203 of the VA Mission Act of 2018,” 86 Federal

Register 7921, February 2, 2021, at https://www.federalregister.gov/documents/2021/02/02/2021-02138/draft-criteriafor-section-203-of-the-va-mission-act-of-2018.

15 Department of Veterans Affairs, “VA Market Assessment Listening Sessions,” 86 Federal Register 8486, February

5, 2021, at https://www.federalregister.gov/documents/2021/02/05/2021-02446/va-market-assessment-listeningsessions.

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Veterans Affairs Asset and Infrastructure Review Act: Timeline and Funding

May 31, 2021: VA Publishes Final Selection Criteria

The act requires VA to publish the final criteria for making recommendations in the Federal

Register not later than May 31, 2021. The final criteria were published May 28, 2021.16 The final

criteria require VA to ensure that each recommendation



aligns VA’s high performing integrated network resources to effectively meet the

future health care demand of the veteran enrollee population with the capacity of

the market;





maintains or improves veteran access to care;

provides for VA’s health-related missions of education, research, and emergency

preparedness;

considers the quality of and delivery of health care services available to veterans,

including experience, safety, and appropriateness of care;

provides a cost-effective means by which to provide veterans with modern health

care; and

creates a sustainable health care delivery system for veterans.







January 31, 2022: VA Submits List of Recommendations

Using the selection criteria and input from VSOs, VA is to develop a list of VHA properties to

modernize or realign and submit it to the commission by January 31, 2022. VA must also publish

the list in the Federal Register and submit it to the Committees on Veterans’ Affairs in the House

and the Senate. In addition, VA is to provide the committees, the commission, and the

Comptroller of the United States a copy of all of the information used to prepare the

recommendations.

February 1, 2022-January 30, 2023: Commission Reviews Recommendations

As part of its review and analysis of VA’s recommendations, the commission is required to hold

public hearings. The hearings must be held in VISN regions where a VHA facility is

recommended for closure, and witnesses must include veterans and local elected officials.

Hearings on other recommendations are encouraged but not required. The commission may

change a recommendation only if it determines that the proposal substantially deviates from the

selection criteria and that the change is consistent with the selection criteria. The commission

must hold public hearings on the proposed change and publish a notice in the Federal Register

explaining the change at least 45 days before submitting its final list of recommendations to the

President.

January 31, 2023: Commission Submits Recommendations to President

The commission is required to submit a report containing its finding and conclusions regarding

VA’s recommendations, along with the commission’s recommendations for modernizing and

aligning VHA facilities, by January 31, 2023. The report shall also include a justification for any

changes made to VA’s initial recommendations.

16 Department of Veterans Affairs, “Notice of Asset and Infrastructure Review (AIR) Commission Foreword and

Criteria,” 86 Federal Register 28932, May 28, 2021, at https://www.federalregister.gov/documents/2021/05/28/202111398/notice-of-asset-and-infrastructure-review-air-commission-foreword-and-criteria.

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February 15, 2023: President Approves or Disapproves Recommendations

Not later than February 15, 2023, the President is required to transmit to the commission and to

Congress a report containing the President’s approval or disapproval of the commission’s

recommendations.

March 1, 2023: President Transmits Reasons for Disapproval

If the President disapproves of the commission’s recommendations, in whole or in part, the

President is to transmit to the commission and to Congress, not later than March 1, 2023, the

reasons for that disapproval.

March 15, 2023: Commission Resubmits Recommendations

The commission has until March 15, 2023, to review the President’s reasons for disapproval and

submit a revised list of recommendations.

March 30, 2023: President Transmits Recommendations to Congress

If the President approves of the commission’s initial or revised list of recommendations, then the

President is to transmit a copy of the recommendations and a certification of approval to

Congress no later than March 30, 2023. If the President does not submit an approved list of

recommendations to Congress by this date, then the modernization and realignment process is to

be terminated.

45 Days After President Transmits Recommendations: Deadline for Congress

to Disapprove

Once the President transmits the list of approved recommendations, Congress has 45 days to

enact a joint resolution of disapproval. If Congress does not enact a joint resolution of disapproval

within that time frame, VA is required to implement the President’s recommendations. Such

action must take place by May 15, 2023.

Not Later than March 2026: VA Begins Implementing Recommendations

VA is required to begin implementing the approved recommendations no later than March of

2026. VA is authorized to take any action necessary to modernize or realign any facility—

including through alteration, lease, acquisition, construction, or disposal of property—as well to

carry out environmental mitigation, abatement, or restoration. In addition, VA is required to carry

out environmental abatement, mitigation, and restoration, as well as comply with historic

preservation requirements, on any properties made excess to VA’s needs as a result of

modernization or realignment.

Prior to disposing of any surplus real property, VHA must consult with the governor of the state

and the heads of the local governments concerned to discuss any plans for the use of the property

by the local community. Similarly, VHA must consult with the governor of the state and heads of

local governments to ensure the continued availability of any roads used for public access around

a facility recommended for closure or realignment.

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Figure 2. Detailed Timeline of the Recommendation Process

Source: Created by CRS using Title II of the VA MISSION Act of 2018 (P.L. 115-182).

Notes:

a = The draft selection criteria were published in the Federal Register on February 2, 2021.

b = The Air Act does not include a requirement to publish the Notice of Market Assessments.

c = The final selection criteria were published in the Federal Register on May 28, 2021.

d = The President had not nominated any individuals to the commission by December 15, 2021.

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Funding

Implementation of the Air Act is part of VA’s overall capital asset management responsibilities.

As previously noted, VA has the third largest portfolio of federal building space.17 Among the

challenges VA faces managing its portfolio are





Age: approximately 56% of VA’s owned inventory is more than 50 years old.18

Repair needs: VA estimates that the repair needs of its buildings exceed $19

billion.19



Vacancies: Nearly 400 buildings are vacant; that number may increase if the Air

Act recommendation process results in the closure of VHA facilities.20

VA has historically requested much of its capital asset funding through three accounts: major

construction—new building projects with an estimated cost in excess of $20 million;21 minor

construction—projects costing $20 million or less; and non-recurring maintenance (NRM)—

projects that maintain and modernize existing properties.22 Table 2 shows funding for these three

accounts for FY2017-FY2021.

Table 2.VA Capital Asset Funding, Selected Accounts, FY2017-FY2021

In millions of dollars

Accounts

FY2017

FY2018

FY2019

FY2020

FY2021

Major

Construction

$326

$1,443

$2,504

$1,270

$1,316

Rescission

(20)

(420)

—

—

—

Minor

Construction

372

768

800

399

390

Rescission

—

—

—

—

(36)

Supplemental

—

4

—

—

—

Non-Recurring

Maintenance

1,069

1,646

1,753

1,427

2,097

Sources: Major and minor construction data are taken from CRS Report R46964, Department of Veterans Affairs

FY2022 Appropriations. Non-recurring maintenance data are from VA budget requests, FY2019-FY2022.

The act establishes a new account in Treasury known as the “Department of Veterans Affairs

Asset and Infrastructure Review Account.” Funding for the account comes from two sources:

17 U.S. General Services Administration, FY2020 Federal Real Property Summary Report, at https://www.gsa.gov/

policy-regulations/policy/real-property-policy/data-collection-and-reports/frpp-summary-report-library.

18 Based on data provided by the Department of Veterans Affairs.

19 U.S. General Services Administration, FY2020 Federal Real Property Summary Report, at https://www.gsa.gov/

policy-regulations/policy/real-property-policy/data-collection-and-reports/frpp-summary-report-library.

20 U.S. Government Accountability Office, VA Real Property: Clear Procedures and Improved Data Collection Could

Facilitate Property Disposals, GAO-19-148, January 2019, pp. 2-3, at https://www.gao.gov/assets/gao-19-148.pdf.

21 Department of Veterans Affairs, Financial Policy: Appropriations, Funds, and Related Information, April 2019, p. 1,

at https://www.va.gov/finance/docs/va-financialpolicyvolumeiichapter02i.pdf.

22 U.S. Government Accountability Office, VA Construction: Management of Minor Construction and Non-Recurring

Maintenance Programs Could be Improved, GAO-18-479, July 2018, p. 5, at https://www.gao.gov/assets/gao-18479.pdf.

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appropriations; and proceeds generated from the lease, transfer, or disposal of VHA facilities

pursuant to an Air Act recommendation. Funds in the account may be used to cover the costs

associated with implementing the recommendations—including the commission’s costs—or for

other purposes that the VA Secretary determines support VA’s mission. VA submitted its first

request for Air Act funding in its FY2022 budget, requesting $5 million to support the operations

of the commission.23 The FY2022 Military Construction, Veterans Affairs, and Related Agencies

(MILCON-VA) appropriations bill passed by the House provides $5 million as requested. The

Senate Appropriations Committee has reported its version of the MILCON-VA bill, which

includes the $5 million.24

Concluding Observations

The AIR Act has been likened to Base Realignment and Closure (BRAC) legislation,25 a series of

laws that established procedures to close and relocate military installations in discrete rounds (see

Appendix A for a brief overview of BRAC). There are some structural similarities. Notably, both

the AIR Act and BRAC legislation





create an independent commission that examines the list of recommendations;

and

require Congress to enact a joint resolution of disapproval to terminate the

process. Congress cannot amend the list but can approve or reject it.

The AIR Act and BRAC legislation differ in many ways, particularly in terms of policy context.

For example, the central objective of the AIR Act is to better align the delivery of government

services (health care) to nonfederal beneficiaries (former servicemembers). BRAC

recommendations, by contrast, are largely guided by needs internal to the government—

enhancing the efficiency and effectiveness of the military. In addition, while DOD has the

authority to reassign servicemembers to new installations as BRAC recommendations dictate, VA

must calculate the potential loss of personnel that could result as staffing requirements in

particular locations shift pursuant to Air Act recommendations.

23 Department of Veterans Affairs, FY2022 Budget Submission: Budget in Brief, May 2021, p. 4, at

https://www.va.gov/budget/docs/summary/fy2022VAbudgetInBrief.pdf.

24 For funding details, see CRS Report R46964, Department of Veterans Affairs FY2022 Appropriations.

25 GovExec, “VA Is at a Crossroads As It Kicks Off BRAC-Style Review of Medical Facilities,” March 26, 2021, at

https://www.govexec.com/management/2021/03/va-crossroads-it-kicks-brac-style-review-medical-facilities/172957/.

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Appendix A: Base Realignment and Closure

Legislation

What Is a Base Realignment and Closure (BRAC)?







Congress has periodically enacted temporary authorities—known as BRAC

laws—to facilitate the relocation or closure of military installations to more

efficiently and effectively support the Department of Defense’s (DOD’s)

mission.

In 1988, 1991, 1993, 1995, and 2005, an independent Defense BRAC

Commission was authorized in each BRAC law to recommend the disposal of

unneeded defense facilities throughout the United States.

To date, these BRAC commissions have recommended the closure and

realignment of more than 100 DOD facilities throughout the United States.

BRAC Process Overview



While BRAC laws are not identical, a common framework has remained

generally consistent across each “BRAC round.” This framework includes

 establishment of an independent commission (i.e., the BRAC Commission);

 reliance on objective and uniform criteria (Congress has frequently defined

BRAC selection criteria in statute);







Government Accountability Office (GAO) review and certification of DOD

data;

 deliberations designed to be transparent that include open hearings,

solicitation of feedback, installation visits, and data available for public

review; and

 a requirement that the final list of closure and realignment recommendations

be accepted or rejected in their entirety.

Under the terms of the statutes that authorized previous BRAC rounds, the

BRAC Commission’s recommendations automatically take effect unless the

House and Senate pass a joint resolution of disapproval rejecting them in their

entirety.

The most recent BRAC round initiated in 2005 took approximately 10 years,

from authorization to completion.



It may take several years to execute the transfer of DOD real property to a

non-DOD entity. This is often due to the environmental remediation

processes that must be completed before DOD real property is transferred, or

the determination of financial viability of a non-DOD entity to accept and

manage the property.

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Author Information

Garrett Hatch

Specialist in American National Government

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in

its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or

material from a third party, you may need to obtain the permission of the copyright holder if you wish to

copy or otherwise use copyrighted material.

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