As the head of the Department of Veterans’ Affairs (VA) is pointing his finger at Democrats for the ongoing government shutdown, national organizations are pointing fingers back regarding fraud and benefits claims.
The government shutdown has eclipsed 29 days and is currently the second longest in U.S. history. Democrats have held out for health care subsidies associated with the Affordable Care Act while Republicans who control the majority in both the U.S. House and Senate chambers have stated they would entertain a health care debate if a continuing resolution was voted on and passed to reopen the government.
As the politics endure in Washington, people across the country are feeling the brunt. Roughly 42 million Americans including seniors, families with children, and those with disabilities who rely on the Supplemental Nutrition Assistance Program (SNAP) are set to see their benefits expire on Saturday, Nov. 1. Questions about future military pay for the approximate 1.2 million active-duty veterans are also confounded by a closed government.
On Thursday, the VA issued a statement condemning Democrats for what they claim is their “decision to shut down the federal government.”
“The Democrats’ government shutdown is limiting services for veterans and making life miserable for VA employees, and things are only going to get worse as time goes on,” VA Secretary Doug Collins said in a statement. “It’s time for Democrats to stop using the suffering of Americans as political leverage to give free health care to illegal immigrants.
“I call on them to open the government and enable VA to provide the complete and comprehensive services America’s veterans, families, caregivers and survivors have earned.”
Currently, about 37,000 VA employees are furloughed or working without pay. The department’s medical centers, outpatient clinics and vet centers remain open and are operating normally due to advance appropriations approved by Congress.
The VA also blames Democrats for the following:
- The shutdown of the GI Bill Hotline which provides assistance to more than 900,000 veterans.
- Over 100,000 enrolled veterans being unable to enroll into the Veteran Readiness and Employment program due to employees being furloughed.
- The closure of 56 regional VA offices.
- The permanent closure of the Manila regional VA office.
- Transition briefings for over 16,000 outgoing military members unable to be accommodated due to a lapse in appropriations (with information available online).
- The lack of grounds maintenance and the placing of headstones at 157 VA national cemeteries.
Benefits for veterans will continue to be processed and delivered, including compensation, pension, education, and housing benefits, per the VA. Burials will also continue at national cemeteries.
Prevalence of VA Fraud
The U.S. Senate Committee on Veterans’ Affairs held a hearing on Wednesday, titled, “Putting Veterans First: Is the Current VA Disability System Keeping Its Promise?”
The hearing explored veterans’ disability benefits system and included testimony from VA Inspector General (IG) Cheryl Mason, Jeremy Villanueva, associate legislative director of the Paralyzed Veterans of America, retired Army Lt. Col. Daniel M. Gade, and Elizabeth Curda, director of Education, Workforce and Income Security Issues within the Government Accountability Office.
As of June 30, 2025, more than 6.9 million veterans and beneficiaries were receiving these benefits, as provided under the law pertaining to disability compensation, according to Mason.
She also called suggestions that VA fraud is widespread “reprehensible,” alluding to recent reporting that veterans are “scamming” or gaming the system to get benefits.
“Furthermore, using OIG investigative evidence collected over several years to make it appear like there is mass fraud by veterans misleads the public and maligns veterans. While yes, there are some bad actor veterans who commit fraud against VA in both benefits and health care, they are few in comparison to the 6.9 million veterans and beneficiaries who receive VA benefits.”
Approximately 3.7% of active VA OIG fraud investigations involve veterans, she added.
The Washington Post reported earlier this month that U.S. taxpayers are paying for veterans’ benefits for some service members who have cited hair loss, jock itch and toenail fungus as causes of personal impairment.
About 556,000 veterans receive disability benefits for eczema, 332,000 for hemorrhoids, 110,000 for benign skin growths, 81,000 for acne and 74,000 for varicose veins, the Post reported, citing the most recently available figures from the VA.
“The liberal Washington Post is trying to mislead the public by citing a few documented instances of fraud, in which the perpetrators were convicted of crimes, as proof that many veterans are cheating the system, VA spokesperson Pete Kasperowicz told Military.com. “This is egregious even for the Washington Post, which was a leading purveyor of the totally debunked Russia hoax and introduced its cringe motto—’Democracy Dies in Darkness’—to advertise its opposition to the Trump Administration.
“America’s veterans earned their VA benefits, and it should be easier—not harder—to get them. Under President [Donald] Trump, we are improving VA so it’s faster and more convenient for veterans to get what our nation owes them.”
Fixing The System
Questions remain, however, about the current state of the claims process and its ability to meet veterans’ needs.
The American Federation of Government Employees, AFL-CIO (AFGE) and its National Veterans Affairs Council (NVAC) submitted a statement on record for Wednesday’s hearing, on behalf of the roughly 320,000 VA employees AFGE represents—approximately a third of whom are veterans themselves, including approximately 50 percent of frontline workers at the Veterans Benefits Administration (VBA).
AFGE, in its statement, critiqued multiple aspects of the current benefits system including logistics of claims processes; the specialization of claims; keeping claims within the same regional office for the duration of the claims process; and providing employees the option to work overtime rather than mandate it.
“AFGE is proud to represent tens of thousands of VBA workers and claims processors, and identify ways the claims process can improve,” Elliot Friedman, a legislative representative for AFGE, told Military.com.
Military.com reached out to the VA for comment specifically regarding the AFGE’s statement.
