top of page
Search

The Perfect Storm Grows: VA Community Care Budget Surges to $48 Billion

  • Writer: Sabrina Weyandt
    Sabrina Weyandt
  • Feb 18
  • 3 min read

With a $10B increase in Community Care funding the VA signals an unprecedented opportunity for home care agencies serving Veterans.


Last month, we explored how the Elizabeth Dole Act, which was signed into law in January 2025, is beginning to transform access to home care for Veterans and their caregivers. The conclusion of 2025 brought even bigger news: Congress passed the largest single-year expansion of VA Community Care funding in history.


The House-passed, 2026 VA Budget proposes $48 billion for community care services—a staggering 26% increase from FY2025 levels. For home care agencies already positioned to serve Veterans, this isn't just another budget cycle.  It represents the convergence of several critical factors:

  • Aging Demographics:  The Silver Tsunami of Veterans (Vietnam-era Veterans) are reaching peak home care needs years.

  • Expanded Eligibility: Over 900,000 additional Veterans have enrolled in VA healthcare since the PACT Act's expansion began.

  • Shift in Care Preference: A growing recognition of the superiority of home-based care.

  • Historic Funding: Record-breaking financial support to back these needs.


The Numbers That Matter

The 2026 budget tells a remarkable story of growth:


Graph illustrates the expansion of the VA Community Care Network budget, which rose from $3.0 billion in 2007 to $48.0 billion by 2026, marking a 1,500% increase over two decades. Significant legislative influences include the Veterans Choice Act, MISSION Act, PACT Act, and Elizabeth Dole Act.
Graph illustrates the expansion of the VA Community Care Network budget, which rose from $3.0 billion in 2007 to $48.0 billion by 2026, marking a 1,500% increase over two decades. Significant legislative influences include the Veterans Choice Act, MISSION Act, PACT Act, and Elizabeth Dole Act.

Perspective: The Community Care budget has grown more in this single year than it did in the entire first five years of the Veterans Choice Program (2014-2019).


Twenty Years of Transformation: The Community Care Evolution

The growth trajectory of VA Community Care funding reveals a fundamental shift in how America cares for its Veterans:

  • 2007 - 2021: 13% annual growth (slow).

  • 2021 - 2026: 22% annual growth (accelerating).


Rare Bipartisan Consensus

In today’s polarized political environment, the 2026 VA budget stands out for its strong bipartisan support in the Senate:

  • Senate Appropriations Committee Vote: 26-3 approval.

  • Senate Floor Vote: Initially 87-9, later improved to 89-7 passage.


It is important to note that in addition to approving the proposed increase to $48B the bipartisan Senate vote also increased their discretionary funds, ie what Congress directly appropriates to the VA, from $20.4B to $34B, this represents over a 60% increase!



What This Means for Home Health Aide and Respite Services

While the VA doesn't always break out spending by individual service categories, multiple indicators point to significant growth in home-based services. Earlier this month, the VA raised the expenditure cap for in-home and community-based services, specifically covering:

  • HHA and ADL Support Services and respite care services.

  • Skilled home health.

  • Adult day and Veteran-directed care.


For credentialed agencies, the "48 billion dollar question" is no longer whether the VA will support home care, but how quickly they can position themselves to capture a share of this historic expansion.


What to Watch For

As the 2026 budget moves forward, keep an eye on:

  1. Final Funding Level: Likely to land between the $34B-$48B range.

  2. Implementation Guidance: Specifics from the VHA on priority service areas.

  3. Regional Allocation: Which VAMCs receive the largest increases.

  4. Contract Vehicle Updates: New procurement mechanisms and the reorganization of Optum and TriWest regional networks.


Ready to capture your share of the VA Community Care expansion?


Learn more and join Foboa’s VA Partner Network!


About the Author:

William Mattle is CEO of Foboa (Front Office Back Office Automation, LLC), a technology-enabled business process outsourcing company specializing in home care agencies. With over 20 years in healthcare technology and a deep understanding of VA systems, he helps agencies navigate the complexities of Veteran Home Care.


Sources & References

  • U.S. Department of Veterans Affairs FY 2026 Budget Submission

  • Congressional Budget Office reports on Veterans Community Care

  • Government Accountability Office reports GAO-19-478 and GAO-20-669

  • U.S. Senate Committee on Appropriations official statements

  • Federal Budget IQ analysis of VA appropriations

 
 
 
bottom of page