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Legislative bills

U.S. Senate Passes FY 2026 Military Construction, Veterans Affairs, and Related Agencies Appropriations Act

Strategic Insights

— 2 min read

The U.S. Senate has passed the Fiscal Year 2026 Military Construction, Veterans Affairs, and Related Agencies (MilCon-VA) Appropriations Act with a vote of 87-9, providing support for critical housing, infrastructure, and facilities for U.S. military forces and their families, as well as increased funding for veterans health care and benefits. The bill provides $153.5 billion in discretionary funding, with $19.8 billion allocated for defense funding and $133.6 billion for nondefense funding. The legislation aims to strengthen national security, improve military readiness and safety, and reduce maintenance costs.

Key Takeaways:

  • The bill allocates $153.5 billion in discretionary funding, with $19.8 billion dedicated to defense funding and $133.6 billion for nondefense funding.
  • The legislation provides support for more than 280 projects at military bases and installations worldwide to enhance resiliency and support warfighter readiness.
  • Within the defense funding allocation, $1.9 billion is set aside to improve and maintain housing for servicemembers and their families.
  • The Department of Veterans Affairs (VA) receives $133.3 billion, with $113.8 billion allocated for VA medical care and an additional $49.8 billion from the Toxic Exposures Fund.
  • The bill includes $18.9 billion for mental health care, $6.4 billion for telehealth services, and $3.5 billion for veterans homelessness programs.
  • The VA Mandatory Funding exceeds $253.6 billion, covering veteran disability compensation programs, education benefits, and vocational rehabilitation and employment training.
  • The legislation includes $122.3 billion in FY 2027 advance discretionary funding for veterans health care and prohibits the VA from purchasing technology equipment manufactured by Chinese companies listed by the Departments of Defense and Commerce.

Statistics:

  • $153.5 billion in total discretionary funding
  • $19.8 billion in defense funding
  • $133.6 billion in nondefense funding
  • $1.9 billion for housing improvements and maintenance
  • $133.3 billion for the Department of Veterans Affairs
  • $113.8 billion for VA medical care
  • $49.8 billion from the Toxic Exposures Fund
  • $18.9 billion for mental health care
  • $6.4 billion for telehealth services
  • $3.5 billion for veterans homelessness programs
  • $253.6 billion for VA Mandatory Funding
  • $122.3 billion in FY 2027 advance discretionary funding
  • $3.5 billion for the veterans electronic health record
  • 13 new site deployments for the veterans electronic health record in calendar year 2026, growing to 26 locations in calendar year 2027

Sources:

  • U.S. Senate Committee on Appropriations
  • [1] Statement by Senator Collins, Chair of the Appropriations Committee
  • [2] Statement by Senator John Boozman, Chair of the MilCon-VA Appropriations Subcommittee
  • U.S. Senate Committee on Appropriations, FY 2026 MilCon-VA Appropriations Act Highlights
  • U.S. Senate Committee on Appropriations, Press Release on FY 2026 MilCon-VA Appropriations Act

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