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Adds a new section 306A establishing an Under Secretary for Veterans Economic Opportunity and Transition: appointment by the President with Senate advice and consent; appointment without regard to political affiliation and based on demonstrated ability in administration of related programs and information technology; the Under Secretary is head of the Veterans Economic Opportunity and Transition Administration and reports to the Secretary; procedures for establishing a commission to recommend candidates for vacancies, the commission composition, recommendation process, and that the Assistant Secretary or Deputy Assistant Secretary who performs personnel management and labor relations functions serves as the executive secretary of the commission.
Amends subsection (c)(2) of 38 U.S.C. 306 by striking subparagraphs (A) and (E) and redesignating subparagraphs (B), (C), (D), and (F) as subparagraphs (A) through (D), respectively.
Adds a new chapter (appearing as chapter 80) to the end of Part V of title 38 and inserts a corresponding new item after the item relating to chapter 79 in the tables of chapters at the beginning of title 38 and of Part V.
Creates a new Veterans Economic Opportunity and Transition Administration inside the Department of Veterans Affairs and establishes an Under Secretary to lead it. The law sets an effective date (October 1 of the first fiscal year after enactment), requires a presidentially appointed, Senate‑confirmed Under Secretary with specified qualifications, and preserves collective‑bargaining and labor rights for any VA employees moved into the new administration. Requires the VA Secretary to report to Congress within 180 days on progress and to submit a formal certification (between April 1 and September 1 of the first fiscal year after enactment) before moving any veterans’ services into the new Administration; if the Secretary misses the deadline they must explain and give a new estimated date. The statute also directs a commission to recommend candidates for the Under Secretary when the position is vacant and makes related technical changes to title 38.
Add a new chapter at the end of part V of title 38, U.S. Code, establishing the Veterans Economic Opportunity and Transition Administration (new chapter in title 38).
Amend the tables of chapters at the beginning of title 38 and at the beginning of part V of title 38 by inserting a new item after the item relating to chapter 79 to reflect the new chapter.
Specify effective date for the chapter added by subsection (a): the new provisions of title 38 added by subsection (a) will take effect on October 1 of the first fiscal year commencing after the date of enactment of this Act.
Require that any labor rights, inclusion in a bargaining unit, and any collective bargaining agreement that applied to a Department of Veterans Affairs employee who is transferred to the Veterans Economic Opportunity and Transition Administration continue to apply in the same manner after the transfer.
State the sense of Congress that creating the Veterans Economic Opportunity and Transition Administration and transferring functions to it from the Veterans Benefits Administration should not cause the Department of Veterans Affairs budget or spending to increase or decrease relative to the day before enactment.
Primary affected groups:
Veterans: Services focused on economic opportunity and transition (employment, benefits transition support, job training connections) may be reorganized under the new Administration. If implemented as required, veterans could see more centralized oversight of transition services; however, transfers carry risk of temporary disruption if operational readiness or IT systems lag.
Department of Veterans Affairs employees: Staff who currently run transition and economic opportunity programs may be administratively moved into the new Administration. Their collective‑bargaining and labor protections are preserved, but they may face new leadership, reporting lines, and possible operational changes.
VA leadership and program managers: Must complete planning, IT readiness, and administrative steps to satisfy reporting and certification requirements. They will have added responsibilities to document readiness and to coordinate transfers without service degradation.
Congress and oversight bodies: Gain formal reporting and certification milestones (180‑day report; certification between April 1 and September 1 of the first post‑enactment fiscal year) to monitor implementation.
Operational and fiscal impacts:
Budget and staffing: The statute expresses that the reorganization should not change VA budget totals or FTE counts, but it does not provide new appropriations. Implementation may require internal reprogramming or administrative costs absorbed within existing budgets.
Risk management: Requiring a certification tied to service readiness and IT capability mitigates but does not eliminate risks of service interruptions; implementation success depends on VA execution and resource allocation.
Timeline and uncertainty: The law sets effective dates and certification windows; missed deadlines trigger reporting requirements, which could delay transfers and prolong the transition period.
Overall, the legislation restructures how veterans’ transition and economic opportunity programs are organized and overseen, with safeguards intended to protect continuity of services but without explicit new funding.
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Read twice and referred to the Committee on Veterans' Affairs.
Introduced April 30, 2025 by James E. Banks · Last progress April 30, 2025
Committee on Veterans' Affairs. Hearings held. Hearings printed: S.Hrg. 119-86.
Read twice and referred to the Committee on Veterans' Affairs.
Introduced in Senate