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Brief · veterans and service members

The VA workforce contraction

The VA shed roughly 40,000 employees in 2025 — most of them in healthcare — and plans to cut 26,000 more by attrition. What that does to veterans' access to care.

May 21, 2026 · 6 min read · AfP Research

A staffing story, not a benefits story

Most public debate about the Department of Veterans Affairs focuses on benefits — what veterans are owed, how long claims take, which conditions qualify. That framing misses something structural. The VA is, before it is anything else, an employer. The Veterans Health Administration runs one of the largest integrated healthcare systems in the country, with roughly 170 medical centers and more than a thousand outpatient clinics. Whether a veteran can get an appointment is a function of how many people work there.

In 2025, that number moved sharply in the wrong direction.

What happened to the workforce

According to a January 2026 report from Democrats on the Senate Veterans’ Affairs Committee, the VA lost more than 40,000 employees in fiscal 2025 — the first year in recent memory the department recorded a net loss rather than a net gain of staff. Historically the VA had added 10,000 or more employees a year as the veteran population aged and PACT Act eligibility expanded (Government Executive).

The losses were concentrated where they matter most for access to care. Roughly 88% of departing employees came from the Veterans Health Administration — the healthcare side of the department. The specific position counts in the report are striking:

  • A net decrease of about 3,000 registered nurses.
  • A net decrease of about 1,000 physicians.
  • A net decrease of roughly 1,550 appointment schedulers — the staff who actually book veterans into clinics.
  • Losses of roughly 700 social workers, 1,100 custodians, and nearly 2,000 claims processors.

These reductions came through the Trump administration’s broader federal-workforce drawdown — a hiring freeze, deferred-resignation offers, and early-retirement incentives. The department originally floated a target of 80,000 job eliminations, later revised to a goal of about 30,000 net reductions through attrition. The actual figure exceeded that revised goal.

The hiring freeze lifted — but caps remain

In January 2026 the VA officially lifted its hiring freeze on the healthcare workforce. The headline sounds like a reversal. The mechanics are narrower.

Lifting the freeze did not lift the constraints. The VA put facility-level “baselines” in place that set a personnel cap for each medical center and regional office. A component cannot exceed its cap without sign-off from the department’s human-resources and finance offices. Facility leaders, according to the Senate report, continued to report denials and severe delays in hiring approvals — for clinical staff, custodians, and claims processors alike (Federal News Network).

So the practical situation in early 2026 is this: a facility can recruit for a vacancy, but only up to a ceiling set above it, and only with central approval. Roughly 10,000 of the departed employees worked in frontline positions the department has struggled to refill.

On top of the 2025 losses, the VA announced in December that it intends to eliminate about 26,000 additional VHA positions over the course of the year — this time entirely through attrition rather than layoffs. The department’s argument is that many of these positions have sat vacant for more than a year and are no longer needed. Critics counter that “vacant” and “unneeded” are not the same thing: a nursing line that has gone unfilled because the facility could not recruit fast enough is still a nursing line the facility needs.

Why healthcare staffing drives access

The reason the 88% figure matters is that healthcare capacity is not fungible with benefits processing. A veteran’s wait for a mental-health appointment does not get shorter because claims are moving faster. It gets shorter when there is a clinician available and a scheduler to book the visit.

The Senate report found mental-health appointment wait times averaging 35 days — a figure the VA disputed. Disputes over a specific number aside, the underlying logic is hard to argue with. Cut 3,000 nurses and 1,000 physicians from a system already running tight, and the result is fewer appointment slots, longer waits, and more care pushed out to community providers under the VA’s purchased-care program. The 1,550 lost schedulers compound the problem: even where clinical capacity exists, the administrative staff who connect a veteran to it have thinned.

This is the part of VA performance least visible in headline statistics, because there is no single “wait-time backlog” number reported the way the claims backlog is. Access erosion shows up as individual veterans waiting weeks longer, unevenly across regions.

How this intersects with PACT Act implementation

The PACT Act of 2022 expanded toxic-exposure benefits and brought millions of veterans into VA care through proactive screening. It also authorized new staffing capacity precisely because lawmakers understood that enrolling more veterans without hiring more clinicians would simply move the bottleneck.

The 2025 workforce contraction runs against that logic. The PACT Act’s success — more veterans screened, more veterans enrolled, more veterans eligible for care — increases demand on exactly the healthcare workforce that shrank. A larger patient population served by a smaller clinical staff is a capacity mismatch, and it is the predictable consequence of treating a hiring drawdown and a benefits expansion as separate policies rather than connected ones.

The genuine improvement: the claims backlog

It would be inaccurate to describe everything at the VA as deteriorating. One metric improved sharply, and it deserves to be stated plainly.

The backlog of pending disability-compensation claims — claims awaiting a decision for more than 125 days — fell from more than 264,000 in January 2025 to roughly 83,000 by April 2026, a drop of nearly 70%. Average processing time dropped from about 141 days to about 81 days. The VA processed 3 million compensation and pension claims in fiscal 2025 and was on a comparable pace in 2026, crediting automation tools that assemble claim evidence and flag missing documentation (Stars and Stripes).

That is a real gain for veterans waiting on benefits decisions, and it should not be discounted. Two caveats are worth holding alongside it. First, faster is not the same as more accurate: at an April 2026 House Veterans’ Affairs Committee hearing, members raised quality-control concerns, including an Inspector General finding about claims rushed through without adequate review. Second — and central to this brief — the claims backlog is a benefits-side measure. It tells you nothing about whether a veteran can see a doctor. The two systems are funded and staffed separately, and they are moving in opposite directions.

What to ask your representatives

  • Will they support restoring VHA clinical staffing toward pre-2025 levels, and oppose the planned 26,000-position reduction until its effect on wait times is independently assessed?
  • Will they press the VA to publicly report healthcare access metrics — appointment wait times by facility and specialty — with the same regularity as the claims backlog?
  • How are they reconciling PACT Act enrollment growth with a contracting clinical workforce in their state’s VA facilities?
  • Will they support requiring the VA to justify each facility-level staffing cap against actual patient demand rather than against a department-wide headcount target?

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