Dive Brief:
- Congress heard the pleas of the Department of Veterans Affairs and agreed Thursday to a deal raising the spending cap of the problem-filled Colorado VA hospital project for three weeks — creating more time to reach a permanent solution.
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House Speaker John Boehner attempted to derail the agreement and asked the VA to find its own way to fund the project, as well as make wide-spread changes to its internal infrastructure. However, he eventually conceded to the stopgap measure.
- The agreement included half of what the VA originally requested — lifting the spending cap by $100 million instead of the desired $200 million.
Dive Insight:
The VA had sent a memo to Congress Monday stating it would continue work on the hospital complex only if the spending cap were lifted. The project's bridge contract was set to expire May 24. The hospital in Aurora, CO, is already $1 billion over its original $600 million budget.
The VA proposed its own contribution of $150 million, which it would move from another part of its fiscal budget. Officials also offered to scrap two planned buildings in the complex: a community living center and a post-traumatic stress disorder residential clinic.
In April, the VA proposed tapping a $5 billion fund earmarked for improvements at clinics nationwide to offset the cost overruns. Congress, however, has said there will be a negative impact for veterans in other states if money is moved from that fund to pay for the Colorado facility.
