Federal Acquisition Regulation

A new Department of Veterans Affairs Office of Inspector General report confirms that VA terminated 435 contracts worth roughly $1.1 billion "for convenience" out of 2,210 contracts reviewed, following pressure from the Department of Government Efficiency (DOGE), the initiative once led by Elon Musk. The remaining 1,775 contract actions examined were reinstated or never terminated. The review was requested in June 2025 by Sens. Richard Blumenthal and Angus King, who raised concerns about the use of AI in cancellation decisions, the sidelining of career VA experts, and how savings were redirected. The OIG also flagged errors in data VA submitted to Congress in 2025, later corrected in an updated April 2026 list.

VA officials defended the cuts as eliminating "wasteful and duplicative" spending with no impact on veterans' care, while Blumenthal maintains VA is serving more veterans than ever. VA holds the federal government's second-largest acquisition budget, at $78.3 billion in fiscal 2025.