VA Halts Plan to Cancel Contracts

The Department of Veterans Affairs paused plans to terminate hundreds of contracts after pressure from Democratic lawmakers, according to a statement from Sen. Richard Blumenthal, D-Conn., on Wednesday.

The reversal came a day after VA Secretary Doug Collins announced the cancellation of up to 875 contracts that he touted would save $2 billion for veterans' healthcare.

In an internal email obtained by The Washington Post, VA officials said that "previous guidance" was being reconsidered and that a further review of contracts would determine their outcome. 

A VA spokesperson told The Hill that no final decisions had been made, emphasizing that contract cancellations would focus on "nonmission-critical" expenses like executive support and coaching, with no impact on veterans' benefits or services.

The contract terminations were part of the Trump administration's effort, led by the Department of Government Efficiency, to cut federal costs and reduce the civilian workforce.

Blumenthal argued that the cuts targeted contracts that support essential veteran services, including disability claims processing, cancer care, medical recruitment, and burial services.

"It's government by whiplash," Blumenthal said. "Cancel and fire first, analyze later. These policies are walked back only after veterans, Congress, and the media highlight their harmful impacts."

The pause follows recent VA workforce reductions, including the firing of 1,000 employees earlier this month and an additional 1,400 announced Monday.

Veterans of Foreign Wars also criticized the contract cuts.

"There are bigger ramifications in firing veterans than just faceless workers being let go," VFW National Cmdr. Al Lipphardt said in a statement. "The American people are losing technical expertise, training, and security clearances already bought and paid for by taxpayers."

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