A substantive revision, v2 renames the Assistant Secretary for Management to Assistant Secretary for Planning and Budget, expanding the Chief Financial Officer's duties to include acquisition program management. It also reduces staffing for the Legislative and Congressional Budget Information Office and introduces sunset provisions for the new organizational structure. Additionally, v2 adds a new section extending certain pension payment limits.
VA Fiscal Management Modernization Act
- Sponsor
- Rep. Bergman, Jack [R-MI-1]
- Committees
- Veterans' Affairs Committee (primary)
- Last action
- Oct 9, 2026
Bottom line
This bill aims to centralize and strengthen financial management and budget accountability within the Department of Veterans Affairs by restructuring key leadership roles and creating a dedicated budget information office, but includes a sunset clause for most of its provisions.
What it actually does
This bill reorganizes and renames the Assistant Secretary for Management at the Department of Veterans Affairs (VA) to the Assistant Secretary for Planning and Budget, designating them as the Chief Financial Officer (CFO). It expands the CFO's duties, creates new Deputy Assistant Secretary positions, and establishes an Office of Planning and Budget, which includes a Legislative and Congressional Budget Information Office (LCBI Office) for direct communication with Congress. Furthermore, it mandates that financial officers within VA Administrations and Veterans Integrated Service Networks (VISNs) report exclusively to the CFO and prohibits them from performing programmatic functions. Notably, most of these significant organizational changes are subject to a five-year sunset clause.
Proponents argue
Proponents argue that the bill will significantly enhance financial oversight, improve budget formulation and execution, and increase transparency and accountability to Congress regarding VA finances. They believe centralizing financial authority under a strengthened CFO will reduce waste, improve efficiency, and ensure better management of major acquisition programs. The establishment of the LCBI Office is seen as a crucial step to provide Congress with direct, accurate, and timely financial data, bypassing potential bureaucratic hurdles and improving legislative oversight.
Opponents contend
Opponents might argue that centralizing financial authority too extensively could create bottlenecks, reduce flexibility for individual Administrations and VISNs, and potentially lead to an overly rigid financial structure that struggles to adapt to the diverse and complex needs of the VA's various components. Concerns could also be raised that the five-year sunset clause creates instability and uncertainty, potentially hindering the full implementation and long-term effectiveness of these significant organizational reforms.
The bill is relatively short and its core changes are clearly articulated, making it accessible for a quick review by an informed reader.
Section 2(a), (b), (c) amending 38 U.S.C. 308, 309
Renaming and Empowering the VA's Chief Financial Officer
This provision renames the Assistant Secretary for Management to the Assistant Secretary for Planning and Budget and formally designates this role as the Chief Financial Officer (CFO) of the Department of Veterans Affairs. It significantly expands the CFO's duties to include formulating, justifying, and executing the budget, controlling and auditing finances, managing major acquisition programs, and ensuring compliance with anti-deficiency laws. Additionally, it increases the number of Deputy Assistant Secretaries, providing more leadership capacity within the CFO's office.
Supporters argue
Supporters contend that this change elevates the importance of financial management within the VA, providing the CFO with clearer authority and a broader mandate to oversee all financial aspects. This is crucial for an agency of the VA's size and complexity, aiming to improve accountability and efficiency.
Critics contend
Critics might express concern that consolidating too much power in one office could lead to a less responsive bureaucracy or that the expanded duties might overstretch the CFO's capacity without sufficient resources, potentially creating new bottlenecks.
Tradeoffs
This provision balances the need for centralized financial control and enhanced accountability against potential concerns about increased bureaucratic rigidity or reduced autonomy for individual VA components in managing their specific budgets.
Section 2(c) amending 38 U.S.C. 309(d), (e)
Establishing Dedicated Financial Planning and Congressional Information Offices
This provision formally establishes an Office of Planning and Budget within the Department of Veterans Affairs, to be headed by the newly empowered Chief Financial Officer. Crucially, it also creates a Legislative and Congressional Budget Information Office (LCBI Office) within this new office. The LCBI Office's sole function is to provide accurate, timely, and certified financial and budget information directly to Congress upon request, with its head reporting exclusively to the Chief Financial Officer. This aims to create a dedicated, unfiltered channel for congressional oversight.
Section 2(d) inserting new 38 U.S.C. 729
Centralizing Financial Reporting and Preventing Duplication
This provision mandates a critical change in reporting structures: chief financial officers of VA Administrations (such as the Veterans Health Administration) and Veterans Integrated Service Networks (VISNs), or employees with substantially similar duties, must now report exclusively to the Department's Chief Financial Officer. These financial employees are explicitly prohibited from performing programmatic or operational functions. Additionally, the Secretary is prohibited from establishing new employee positions that perform functions similar to the LCBI Office but are not part of it, preventing the creation of redundant or circumventing offices.
Section 2(f) amending 38 U.S.C. 309(f) and Section 2(c) amending 38 U.S.C. 729(c)
Temporary Implementation of Financial Reforms with a Sunset Clause
This provision stipulates that the designation of the Chief Financial Officer, their expanded duties, the new Deputy Assistant Secretary positions, the Office of Planning and Budget, the Legislative and Congressional Budget Information Office (LCBI Office), and the direct reporting requirements for financial employees will all automatically terminate five years after the date of the enactment of the VA Fiscal Management Modernization Act. This means the majority of the bill's substantive organizational changes are temporary.