The Department of Veterans Affairs has ignited controversy by abruptly reversing hundreds of contract cancellations tied to veterans’ medical care and facility safety, just one day after claiming $2 billion in savings. Agency records reveal canceled agreements covered legally mandated inspections for radiation-producing equipment—including MRI machines and dental X-ray units—prompting warnings that care delays were inevitable. Canceling these contracts 100% will impact care, a VA official told ABC News.
VA Secretary Doug Collins defended the initial cuts, stating,
We’re putting money back into veterans’ health instead of PowerPoint slides and coaching contracts.However, internal pushback surged as contracts supporting hazardous waste disposal, cancer programs, and burial services faced termination. Key concerns include:
- Unusable medical equipment without annual inspections
- Safety risks at VA facilities
- Disrupted employee benefits for 40,000+ staff
Senator Richard Blumenthal condemned the move, calling it a reckless cost-cutting decision threatening veterans’ well-being. Meanwhile, contractors warned the VA lacks in-house capacity to replace their services affordably. The agency has already reversed some stop-work orders, signaling internal chaos.
Amid two rounds of layoffs affecting 2,400 positions, the Trump administration has directed agencies to prepare for large-scale workforce reductions by March. While the VA claims no veteran benefits will be cut, advocates question how staffing shortages and contract instability won’t degrade care quality long-term.