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VA Budget Skyrockets Despite Federal Spending Cuts

In 1947, two years after the end of World War II, the VA spent a post-war high of $87 billion, according to a Congressional Research Service report released last year. VA spending reached a post-Vietnam peak of $76.9 billion in 1976, the research service said. Both budgets were adjusted for inflation and compared to 2011 dollars.

This fiscal year, the VA will spend $138.5 billion. That number includes $66.4 billion in entitlements, such as disability pensions, and housing vouchers, and an expected $61 billion in discretionary spending on health care, among other areas.

"Spending on veterans' benefits and services has certainly grown at a much faster rate than other areas of the budget," Todd Harrison, a senior fellow at the Center for Strategic and Budgetary Assessments in Washington, D.C., said in an email. Congress sets veteran benefits based on formulas that don't require annual appropriations. "These benefits are an entitlement for the people who qualify, and the spending is essentially on autopilot. To change the level of spending, Congress would have to change the criteria for determining who qualifies and what benefits they will receive."

VA spending will keep rising, he predicted. "I don't think it is likely Congress will make substantial reforms in this area of the budget due to the political consequences involved," Harrison wrote. "No one wants to be seen turning their backs on veterans, especially as the military is winding down two protracted wars."