Senate Committee Advances FY 2026 MilCon-VA Appropriations Bill with Key Healthcare IT Investments

by Jamie Trigg | Posted on

The Senate Appropriations Committee has approved the FY 2026 Military Construction, Veterans Affairs, and Related Agencies Appropriations Act by a 26-3 vote. The $153.5B package includes $133.6B in non-defense funding, with substantial support for veterans’ healthcare and IT modernization.

Healthcare IT Highlights:

  • $5.9B for VA information technology systems
  • $3.5B to resume Electronic Health Record (EHR) deployments at 13 sites in 2026 and 26 in 2027
  • New Chinese IT equipment ban for VA purchases
  • Continued investment in telehealth ($6.4B) and rural health initiatives ($342M)

The bill reflects a bipartisan commitment to modernize care delivery for veterans while enhancing cybersecurity and infrastructure resilience across the VA system.

Why It Matters

This legislation directly impacts the trajectory of veteran care and healthcare IT modernization in the U.S. Here’s why it’s significant:

  • EHR Modernization Reboot: After delays and criticism, the VA is resuming deployment of its Electronic Health Record system—now backed by $3.5B and a clear expansion plan. This is a pivotal moment for interoperability, clinician usability, and patient safety.
  • IT Systems at Scale: With $5.9B allocated to IT infrastructure, the VA is positioned to upgrade critical systems that support everything from benefits administration to clinical decision-making, ensuring scalable and secure tech environments.
  • Telehealth & Rural Care Expansion: Continued investment in telehealth and rural access helps close the gap for underserved veteran populations, aligning with national trends toward hybrid and remote care delivery models.
  • Cybersecurity & Supply Chain Risk: The Chinese IT equipment ban signals a growing focus on securing federal tech supply chains—especially critical in healthcare where data breaches and nation-state threats are on the rise.
  • Signal to the Industry: The scale and specificity of these investments serve as a bellwether for broader federal priorities in digital health, infrastructure resilience, and patient-centered modernization.

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