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Adds a new section 1110c to establish the Joint Medical Facility Fund on the books of the Treasury under the Department of Veterans Affairs, authorizing transfers from DOD and VA, specifying uses, availability periods, administration by executive agreement, and related financial reconciliation requirements.
References the Federal Medical Care Recovery Act (42 U.S.C. 2651 et seq.) as an authority from which medical care collections may be transferred to the new Joint Medical Facility Fund.
Creates a Treasury-held joint medical facility fund to let the Department of Defense and the Department of Veterans Affairs pool money for medical facilities they operate together. The bill sets rules for which funds may be transferred into the fund, how pooled funds may be used, requires an agreement between the two Secretaries to govern the fund, and requires a joint report identifying candidate combined facilities. It also repeals a prior statutory authorization for similar joint arrangements. Also establishes a short title for the law and requires the Departments to submit a joint list of candidate combined facilities as part of the fund’s governance and planning requirements.
The bill aims to improve care quality and sustain joint DoD–VA medical facilities through pooled funding and stronger financial accounting, but it risks diverting funds from other programs, creating short-term fiscal and legal complications, and reducing congressional oversight.
Veterans and active-duty service members will likely receive more coordinated, higher-quality care because DoD and VA can operate combined medical facilities and fund capital equipment, maintenance, and minor construction to improve those sites.
DoD and VA can use medical-care collections (e.g., third-party collections and FMC recoveries) together with appropriations to help sustain joint facility operations and services.
A required jointly established methodology, independent review, and integrated financial reconciliation will improve fairness in workload/cost allocation and increase transparency and accountability for how joint facilities are funded.
Congress will receive a joint list of candidate combined facilities within 180 days, giving lawmakers and communities timely information about where joint operations may be established.
Using DoD and VA appropriations and collections to fund joint facilities could divert money away from other department-specific programs or services, potentially reducing resources available to some veterans, service members, or other beneficiaries.
Repealing prior statutory authority and allowing the Fund to be administered by executive agreement rather than statute could create legal or transition uncertainty and reduce congressional oversight and accountability.
Money transferred into the Fund generally must be spent within about one fiscal year, which could create short-term spending pressure and complicate longer-term planning for facility managers and service continuity for patients.
Subjecting certain transfers to 38 U.S.C. §1729A may limit flexibility in using some VA-collected funds and impose additional restrictions on transfers, constraining how funds from patient care are applied.
Designates the official short title of the Act as the "Joint Medical Facilities Fund Act of 2026" for citation purposes.
Establishes the Joint Medical Facility Fund on the books of the Treasury under the Department of Veterans Affairs.
Defines the Fund as the 'Joint Medical Facility Fund' (referred to as the 'Fund').
States the purpose of the Fund is to facilitate joint funding of designated combined Federal medical facilities of DoD and VA.
Requires the Secretary of Defense and the Secretary of Veterans Affairs to jointly establish a methodology to determine amounts transferred to the Fund that reflects mission-specific activities, workload, and costs.
Primary federal actors affected are the Department of Defense and the Department of Veterans Affairs, which gain a new Treasury-held vehicle and a governance framework to pool resources for joint medical facilities. Veterans and active-duty service members could see changes in how medical services and facility investments are planned and delivered where DoD and VA capabilities are combined. Hospitals and health systems run by those agencies may be reorganized, consolidated, or upgraded using pooled funds. Federal employees who staff joint facilities (DoD and VA clinical and support staff) could experience organizational and operational changes if facilities are combined or repurposed. Taxpayers are indirectly affected because pooled transfers change how federal health facility dollars are managed, though the bill does not itself appropriate new funds. Local governments and communities that host military or VA medical facilities may be affected by potential facility consolidations, renovations, or new joint construction projects identified in the required joint report.
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Read twice and referred to the Committee on Veterans' Affairs.
Introduced March 4, 2026 by James E. Banks · Last progress March 4, 2026
Read twice and referred to the Committee on Veterans' Affairs.
Introduced in Senate