Veterans Administration Spending is 3.5% of all Federal Spending

The Department of Veterans Affairs spent $301 billion in fiscal year 2023, a 70% increase over the past decade. It is one of the smallest expenditures of the US budget. Just some brief factual data.

How much does the VA spend?

USAFacts

The Department of Veterans Affairs (VA) is the fifth-largest spender amongst federal agencies, accounting for 3.5% of federal spending in fiscal year (FY) 2023. Adjusting for inflation, VA expenditures increased nearly 70% over the last decade, from $180 billion in FY 2013 to $301 billion in FY 2023.

Is that amount a lot in comparison to other expenditures? Let’s take a look . . .

And to answer the question posed by the title?

Not enough is spent by the VA as many of us end up going to outside healthcare which is profit motivated. In the end, the care may not be as good as the VA. Fifteen minutes and wham-bam, good bye.

I can always get someone on the phone at the VA and not have to leave a message and wait.

The alternative is to wait for months to get for the appointment. Many of us have serious issues having been exposed to Agent Orange. Showering and drinking the contaminated water at Camp Lejeune in North Carolina did not do many of us and resident families much good either. Some of us are in need of psychiatric care.

In comparison to other costs, the VA is 3.5% of the total (2023) as shown in the bar graph to the left and labeled number 1. (This is the first time I was able to get a chart like this to work and display the percentages. I can’t center it though.)

What does the VA spend money on?

The VA spends most of its money — about half — on veteran income security, which includes veteran pensions and disability compensation. It spent another 42% on hospitals and medical care. The remainder went to veteran education, training, rehabilitation, and housing.

Between 2013 and 2023, spending on medical care for veterans increased by about 83% (adjusting for inflation) from $68.4 billion to $125.5 billion. Spending on income security programs increased 76% over the same period, growing from $85.8 billion to $151.1 billion, while spending on veteran education, training, and housing declined.

Is the veteran population aging?

Yes: Almost 50% of veterans were 65 or older in 2022, compared to 39% in 2005. With this aging population, total annual VA spending per veteran increased from about $4,300 in 2005 to an inflation-adjusted $14,400 in 2022.

About 1 in every 4 veterans are over age 75 (back to the old charts to display percentages).

This may explain why spending is increasing although the share of the US population who are veterans is shrinking. As we age the costs grow and even more so with those having serious issues. The number of veterans decreased by 3.7 million, from 21.9 million (or 6.9% of the population) to 18.2 million (around 5.7%), between 2013 and 2023. The aging of the veteran population will increase the cost of their care given the long-term care needs and complex health challenges of older Americans.