Department of Veterans Affairs officials said Monday, July 14, 2025, that they plan to tighten the budget and reduce the workforce as they tackle modernization efforts to improve online operations for employees and veterans. (U.S. Air Force)
WASHINGTON — Technology officials at the Department of Veterans Affairs plan to tighten its budget and reduce its workforce, as it tackles modernization efforts to improve online operations for employees and veterans.
VA leaders delivered that message Monday at an oversight hearing of the House Veterans’ Affairs Committee’s subpanel on modernization. The purpose of the hearing was to examine priorities in fiscal 2026 for updating the agency’s IT systems.
But Carol Harris, director of information technology and cybersecurity at the Government Accountability Office, warned the agency has a “long history of failed IT modernization efforts.”
The VA has experienced problems acquiring major IT systems, tracking its software licenses, managing cybersecurity practices and standardizing cloud computing procurement, according to the federal watchdog.
Lawmakers said the challenges affect the efficiency and effectiveness of the VA in delivering services to veterans.
“I’ve heard the [VA] secretary speak about how when he walked in the door on his first day, he couldn’t even know how many people were in the department and where they were all assigned because you had different payroll systems and different human resources management systems,” said Rep. Tom Barrett, R-Mich., the subcommittee chairman.
Jack Galvin, acting principal deputy assistant secretary and deputy chief information officer at the VA Office of Information and Technology, said a major focus is on standardization and ending duplication.
Eddie Pool is acting assistant secretary for information technology and chief information officer at the VA Office of Information and Technology. Pool told lawmakers that his office is taking a “bold and forward-thinking approach” to modernizing IT infrastructure and operations.
Pool said the VA’s “digital experience” is moving onto a single modern platform. The platform supports more than 16 million unique users monthly. More than 3 million veterans have downloaded the VA mobile app, he said.
The VA’s 2026 budget for IT operations is $7.3 billion, a 4% decrease from its fiscal 2025 budget, Harris said. The agency also plans to decrease its workforce by 11.7% from 2025 levels to approximately 7,000 full-time employees, she said.
The VA’s Office of Information and Technology employs 8,205, but 1,172 workers have accepted deferred resignations and early retirements, according to the VA. The reduction aligns with a shift toward automation in which fewer staff is needed as technology matures, according to VA leaders.
“I think since the dawn of technology, we’ve used it to do things that alleviate the necessitation of manual processes and labor along the way,” Barrett said. “However, we can’t talk about smarter IT strategy without talking about the money that VA has spent on IT projects that have not delivered as were expected.”
In 2026, VA also plans to invest $3.5 billion to accelerate modernization efforts for its electronic health records system. It also plans to retire outdated legacy systems for a savings of $500 million.
The GAO in March issued a report that examined VA’s “three unsuccessful attempts” to modernize its online health records system, which it uses to manage the medical needs of 9 million veterans. The agency is now on its fourth attempt.
The GAO did not address direct costs from the first three failed attempts. But NextGov/FCW, a news website that covers technology in the federal government, reported in 2018 that the VA spent almost $2 billion in its first three tries to modernize the electronic health records system.
“We have previously designated VA health care as a high-risk area for the federal government, in part due to its IT challenges and implementation” of an electronic health records management system, according to the GAO findings.
“VA needs reliable, modern technology in order to provide the high-quality benefits and services that our veterans deserve,” Barrett said.
The GAO is recommending the VA tap a “dedicated team of high-performing leaders within the agency” to oversee major IT changes.
Harris also emphasized the importance of having a well-functioning IT system that is protected and supported by a skilled cybersecurity workforce.
Pool said the IT office has adopted a “zero-trust approach” to managing online interactions. Zero trust is a security protocol that requires every access request be authenticated, authorized and validated whether the user is inside or outside the organization, he said.
Harris said it is critical for VA to get feedback from system users.
“Incorporating insights from a frontline perspective facilitates buy-in — or success — and increases customer acceptance of any changes,” she said.
