Three administrations, one department
VA is built from three administrations plus departmental offices: the Veterans Benefits Administration (VBA), which pays compensation, pensions, and readjustment benefits; the Veterans Health Administration (VHA), which runs the hospitals and clinics; and the National Cemetery Administration (NCA), which operates the national cemeteries. The Board of Veterans’ Appeals and departmental offices sit alongside them.
Where the $367.73 billion goes
Vintage: FY2025 enacted appropriations. Figures in billions.
| Component | FY2025 | What it pays for |
|---|---|---|
| Veterans Benefits Administration | $236.90B | Disability compensation, pensions, and readjustment benefits, mostly mandatory |
| Veterans Health Administration | $113.67B | Hospitals, clinics, and veteran health care |
| Departmental administration | $10.67B | Running the department itself |
| Cost of War Toxic Exposure Fund | $6.00B | Care and benefits for toxic-exposed veterans |
| National Cemetery Administration | $0.48B | National cemeteries: $480 million, a rounding error |
Three things the table tells you
VA is mostly a check-writing agency. Total mandatory spending was $238.68 billion against $129.04 billion discretionary. The benefits checks flow under authorizing law; only the health system and administration are re-decided each year.
The health system is enormous. VHA’s $113.67 billion makes it one of the largest health systems in the country, and it is why VA has the second-largest civilian workforce in government (480,075 in December 2024, per GAO): it runs hospitals.
The visible part is the smallest part. The cemeteries, the most publicly visible VA function, cost $480 million: about one-tenth of one percent of the department’s budget.
Where to see the detail
VA’s Congressional Budget Justification breaks each administration down by account and program. For the contract and grant detail behind VHA spending, see USAspending.gov. The cash view of VA benefit payments is on our Follow the Money page.
Sources
- VA FY2025 enacted appropriations: CRS R48608
- VA workforce figures: GAO workforce accounting
- Award detail: USAspending.gov