House Hearing Investigates VA Incentive Payments
On Tuesday, Jen Kiggans, R-Va., chaired a hearing to scrutinize the improper documentation of $1.2 billion in incentive payments made by the Department of Veterans Affairs (VA) over a three-year period. The hearing, held by the House Committee on Veterans’ Affairs Subcommittee on Oversight and Investigations, revealed that incentive payments for recruitment, retention, and relocation — known collectively as the ‘three Rs’ — rose dramatically, with recruitment payments increasing by 237% between 2020 and 2023. According to the committee’s findings, $341 million of these payments were not properly documented, raising concerns about accountability and oversight within the VA.
Chris Lovell, a retired Marine Corps Major and CEO of veteran-owned Lovell Government Services, described the ‘three Rs’ as additional pay for individuals with specialty vocations essential to the VA. He emphasized that while the VA performs critical work for veterans, the system’s outdated nature and lack of management oversight have led to significant issues. A 2017 audit identified over $158 million in unsupported spending, and more recent findings revealed that some payments, like a $30,000 relocation grant to an employee who never relocated, point to systemic problems. Lovell noted that the agency’s reliance on a 30-year-old Defense Civilian Pay System, used by both the Department of Defense and the VA, has contributed to these challenges.
The VA’s response, as of now, has been to refer inquiries to its testimony at the hearing, according to a spokesperson. However, the issue continues to attract scrutiny, as exemplified by recent findings from the Department of Government Efficiency, which highlighted the VA’s past payment of hundreds of thousands of dollars monthly for website modifications before canceling the article and allowing an internal staffer to handle the work. These revelations underscore the broader challenges in managing federal spending and maintaining transparency, especially concerning veteran services.