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How the administration is dismantling and privatizing the Department of Veterans Affairs.
US President Donald Trump is famous for calling our military veterans “suckers” and “losers,” so you won’t be surprised that the president is now breaking the nation’s promise to veterans and active service members by dismantling and privatizing the Department of Veterans Affairs, or the VA.
In 1865, during the Civil War, President Abraham Lincoln called for the nation “to care for him who shall have borne the battle, and for his widow and his orphan." Today the motto of the VA reads, “To fulfill President Lincoln’s promise to care for those who have served in our nation’s military and for their families, caregivers, and survivors.”
The VA provides over 18 million veterans and their dependents and caregivers with a multitude of services—healthcare, a Veterans Crisis Line for urgent assistance, disability payments and rehab, education assistance, career counseling, support for veteran-owned businesses, home loans, life insurance and financial services, help for caregivers to the disabled, burial in national cemeteries, and more.
And, of course, the nation has promised those same VA benefits to the 2 million men and women currently serving in the armed forces (1.3 million on active duty and another 761,000 in the reserves) after they retire from service.
Dismantling the VA through privatization, staff cuts, and contract cancellations means future veterans will face a fragmented, profit-driven system that doesn’t understand military service and doesn’t know what veterans have been through.
The plan to privatize the VA was hatched during the first Trump administration. By 2024 a real plan was ready. Project 2025—the MAGA [“Make America Great Again”] blueprint for the authoritarian takeover of the United States—strongly favored private healthcare for veterans.
The VA’s own healthcare system includes 170 hospitals and nearly 1,200 clinics spread across the country. It is the nation’s largest integrated healthcare system. Since 2014, the VA has also had a private side, now known as “community care.” If a veteran lives too far from a VA healthcare facility or needs a service the VA can’t provide, they may be eligible for “community care” from a private local doctor or clinic, paid for by the VA.
The Trump administration is expanding privatized “community care.” The “VA Mission Act of 2018,” enacted during the first Trump administration, nearly doubled the VA’s budget for private “community care” from $15 billion in 2018 to $28.3 billion in 2023.
Trump’s 2025 VA budget proposal increases total VA spending, but 75% of the increase (or $14.4 billion) doesn’t go to the VA at all—it goes to private medical providers. This represents a 67% increase for privatized care.
Many see the growing private healthcare budget as a stealth way to eventually privatize the VA’s entire system. Every dollar devoted to private care is a dollar denied to the VA’s own doctors and nurses, ultimately undermining the entire VA system. Doctors and nurses see the handwriting on the wall and leave. Their likely replacements see an agency under siege and stay away.
So far in 2025, the VA lost 600 doctors and 1,900 nurses. During the first three months of the year, about 40% of doctors who were offered jobs declined—four times the rejection rate a year earlier.
In March 2025, a leaked memo revealed Trump’s plan to eliminate 83,000 jobs from the VA, as much as 15% of the agency’s workforce. In response, Sen. Richard Blumenthal (D-Conn.) called the plan “a gut punch… breathtaking… in its malevolence and cruelty.” After major pushback from veterans, the agency announced it would only need to cut 30,000 jobs because so many staff had agreed to leave voluntarily.
To make it easier to cut VA staff, on August 6 VA Secretary Doug Collins ended collective bargaining agreements for most of the VA’s 377,000 unionized employees, including nurses, doctors, benefits processors, food service workers, technicians, and janitorial staff. The VA is the first major federal agency to fully strip collective bargaining rights from its unionized workforce.
Since 1865, veterans have been given preference for government jobs, though they must prove they are qualified to do the work. More than one-quarter of the VA’s 482,000 employees are veterans. (Project 2025’s plan to eliminate half of all government employees by 2026 and 75% by 2029 would cut jobs for about 300,000 veterans.)
In August 2025, the VA’s inspector general reported 4,434 health staffing shortages—a 50% increase from the previous year. In all, 94% of 139 VA health facilities reported severe shortages of medical officers and 79% reported shortages of nurses. As private-care funding is increasing, the VA itself is fraying.
In recent years, a mental health crisis among veterans has been growing worse and the Trump administration has responded by slashing the services designed to save lives. On average, 17 veterans commit suicide every day. Since 2007, the Veterans Crisis Line has handled more than 1.6 million calls and dispatched 351,000 emergency responders (about 100 per day) to help veterans in crisis, yet Trump and VA Secretary Collins have targeted suicide prevention programs for cuts. Furthermore, a study published in the Journal of the American Medical Association in 2025 revealed that veterans receiving private “community care” are not satisfied with the quality of care they receive outside the VA and they have a 21% higher suicide rate.
Now the ”One Big Beautiful Bill Act” that Congress enacted July 4 is expected to eliminate Medicaid health insurance for some veterans. Medicaid currently provides care for 1.6 million veterans, including those with the most complex medical needs.
In addition, when veterans transition out of the military it often takes six months or longer to find steady work. During that time, they may rely on the Supplemental Nutrition Assistance Program (SNAP, formerly “food stamps”) to feed their families. The One Big Beautiful Bill denies SNAP benefits to able-bodied people who don’t have jobs, specifically including veterans. Trump says he “loves our veterans” and will take care of them—but the Big Beautiful Bill is how he thanks them for their service.
It gets worse. In 2022, Congress enacted the PACT Act to deliver healthcare to millions of veterans who were exposed to toxic chemicals during their years of service. Now Trump is undermining that law.
During the Vietnam War (1962-1971), about 3 million veterans were exposed to Agent Orange, a potent cancer-causing herbicide sprayed over vast areas to kill jungle vegetation. An estimated 300,000 Vietnam veterans have already died from exposure to Agent Orange (about five times as many as the 58,000 killed in combat).
Another major source of toxic exposures to veterans has been smoke and fumes from “burn pits.” Burn pits are big holes in the ground where, for decades, roughly 300 military installations (large and small, worldwide) have burned plastics, electronics, chemicals, munitions, medical waste, and human waste. Somewhere between 3.5 and 5 million veterans have been exposed to toxic fumes from burn pits. (Use of burn pits finally ended in 2021.)
In 2022, Congress enacted the PACT Act [“The Sergeant First Class (SFC) Heath Robinson Honoring our Promise to Address Comprehensive Toxics Act”] to assess and care for veterans exposed to toxicants. The PACT Act created one of the largest expansions of VA benefits ever enacted. Until the Trump administration hit the brakes.
Many of the features of the PACT Act required specialized services provided under contract with private-sector suppliers, but the Trump administration in early 2025 canceled at least 650 of those contracts. Trump cancelled contracts that provided the necessary personnel and resources to conduct outreach to eligible veterans, screen applicants, and process claims—cutting the heart out of the PACT Act. Evidently not everyone in the Trump administration is proud of their efforts to undermine the PACT Act. US Senate investigators have accused VA Secretary Collins, of trying “to hide the truth from Congress” about staff cuts and contract cancellations related to PACT.
Dismantling the VA through privatization, staff cuts, and contract cancellations means future veterans will face a fragmented, profit-driven system that doesn’t understand military service and doesn’t know what veterans have been through. In truth, every cut, every step toward privatization, every canceled contract is a betrayal of the promise we have made to all those who serve: When you return, we will take care of you.
This piece has been updated with the information that the Trump VA ended collective bargaining for most of its unionized staff.
We’ve built a system that honors veterans with ceremony but abandons them in practice. The Trump administration’s spending priorities only make this worse.
The draft notice came on May 28, 1968—just a few days after high school graduation. He’d been working nights at the mill since February, saving up for a car. It was the first big thing he’d ever bought: a 1969 Pontiac Firebird, deep blue, four-barrel V8. He didn’t even have plates on it yet. His plan was to spend the summer driving—county roads, lakeside highways, maybe as far as Colorado if the money stretched. That was the future, as far as he could see it: a car, a road, freedom.
He figured he’d be back in a year or two. He felt certain of it—sure that the country asking for his service would still be there to welcome him home.
His uncle helped him bring the Firebird out to the farm and back it into the barn. They threw a tarp over the hood like they were sealing something up for safekeeping. When he returned, he thought, he’d pull it off, turn the key, and drive like no time had passed.
At the same moment funding was being clawed back from veterans sleeping in cars, Congress was being asked to greenlight unprecedented new spending on weapons, drones, and missile systems.
What he didn’t know—what no one tells you in the recruiter’s office or in the grainy footage of presidents giving speeches—is how long it takes to feel like you’ve really come home. Or what it feels like to live in a country that thanks you for your service but resents having to keep its promise.
That Firebird was sold 20 years ago to cover a surgery Veterans Affairs (VA) wouldn’t pay for. The barn’s long gone too. And now, in his 70s, the man who once covered that car with a tarp sits at a kitchen table with a blinking laptop and a stack of printouts, trying to navigate a benefits portal that feels like it was built to confuse him. He clicks through broken links, resubmits forms, dials numbers that go to voicemail. He’s not afraid of war anymore. He’s afraid of being forgotten. Of being told there’s no record of his claim. Of finding out too late that the service he relied on has been quietly defunded.
This year, Memorial Day arrived with its usual rituals—flag-raising, wreath-laying, the half-mast slow choreography of remembrance. But beneath the ceremony, something else is happening. Just days after taking office, the Trump administration launched a freeze on federal financial assistance across dozens of programs, including those housed within the Department of Veterans Affairs. Memo M-25-13 ordered agencies to halt disbursements for any grant or aid program considered inconsistent with the administration’s values. No list was released. No criteria published. By 5:00 pm the following day, payments were to stop.
The impact on veterans was immediate and severe. More than 44 VA-supported programs were effectively frozen overnight. The Supportive Services for Veteran Families (SSVF)—a backbone initiative that helps tens of thousands of veterans each year stay housed through rental assistance, case management, and emergency aid—was halted. The Grant and Per Diem (GPD) program, which funds transitional housing, peer mentorship, and reintegration for unhoused veterans, was put on hold. Legal aid clinics that help veterans resolve fines, access overdue benefits, and prevent evictions had their funding suspended or marked for review. Suicide prevention programs lost staffing and stability. Hotline response times lengthened. Providers pulled back outreach. Veterans called in, asking the same questions over and over: Is my housing still covered? Is the program still running? Will anyone still pick up the phone?
In many cases, the people on the other end didn’t have answers. Some had already been laid off.
After a wave of lawsuits and public outcry, a federal court issued an injunction. The memo was withdrawn, but the strategy was not. The administration made clear that programs centered on housing, reintegration, climate resilience, or “nontraditional” care models would remain under scrutiny. Meanwhile, federal officials quietly sunsetted the VA Servicing Purchase Program—a pandemic-era mortgage relief tool that allowed the VA to purchase delinquent loans and offer more affordable terms to struggling veterans. Over 5,000 veterans avoided foreclosure because of that program. There was no press release. No transition. Just silence.
Then Trump proposed the largest defense budget in American history: over $1 trillion for 2026. It was a stunning figure, even in a country accustomed to massive Pentagon spending. But what made it feel grotesque was the timing. At the same moment funding was being clawed back from veterans sleeping in cars, Congress was being asked to greenlight unprecedented new spending on weapons, drones, and missile systems. A trillion for war. But nothing for the woman calling a crisis line after her motel voucher runs out. Nothing for the outreach team trying to find a veteran living under an overpass. Nothing for the caseworker explaining to yet another caller that the check might be delayed.
This isn’t about belt-tightening. It’s about priorities. And those priorities have consequences.
Across the country, nonprofits that deliver VA-funded services are shrinking. Some are shutting down. Others are operating with skeleton crews, working double shifts to prevent people from falling through the cracks. Suicide rates among veterans remain stubbornly high—nearly double the civilian average. Women veterans, now one of the fastest-growing homeless populations in the U.S., are bearing the brunt of service gaps and shelter closures. In cities like Phoenix, Cleveland, and San Diego, outreach teams report rising waitlists, rising anxiety, and rising numbers of veterans returning for help they were once stable enough to no longer need.
The policy is abstract. The harm is not.
This isn’t about a man and his Firebird. It’s about the distance between what we say and what we do. It’s about the uncomfortable truth that we’ve built a system that honors veterans with ceremony but abandons them in practice. A system where aid is conditional, where services are quietly withdrawn, and where the paperwork is designed to wear people down.
We do not honor the dead by abandoning the living. We do not preserve freedom by gutting the systems that make it real. And we do not fulfill our patriotic duties by breaking the promises made to the very people who upheld them.
Memorial Day has passed. But the test it asks of us—who we are, what we stand for, and who we stand with—remains.
So the question is this: Will we salute once a year and forget by Tuesday? Or will we become a nation that matches its pageantry with policy, its slogans with service, its rhetoric with resources?
Veterans do not need ceremony. They need care. They need consistency. They need housing. They need healthcare. They need legal aid. They need a country that doesn’t ask them to prove again and again that they are worth helping.
And they need it now.
Most media reports ignore that Hegseth was a leading advocate for turning veterans care over to private doctors and hospitals.
Much media coverage of Pete Hegseth’s nomination as Secretary of Defense has focused, understandably, on controversial things he has said or done, along with his complete lack of administrative experience relevant to running a federal government department with a $920 billion budget and a workforce of three million.
But anyone in charge of the Pentagon also gets to oversee the Military Health System (MHS), which provides either private health insurance coverage or direct care for over 9.5 million service members, military retirees, and their families. As Defense Secretary Lloyd Austin noted in a recent DOD National Defense Strategy report, the MHS mission is to ensure that active duty personnel and their dependents are well-served by a skilled cadre of “medical personnel in uniform,” who number nearly 170,000.
Hegseth served as an ROTC-trained Army officer deployed to Iraq, Afghanistan, and Guantanamo Bay and is a longtime critic of “government healthcare,” claiming that it “doesn’t work.” So if Hegseth succeeds Austin, Pentagon officials trying to end a failed experiment with MHA privatization may find themselves ordered to march backward.
Rather than being upgraded and improved, the DOD’s network of military hospitals and clinics would remain under-resourced. And more of the MHA’s $61 billion annual budget would be spent on private insurance coverage that has failed to meet the needs of many service members and their dependents, particularly in rural areas.
A White House Advisor
During the first Trump Administration, Hegseth was a White House advisor who pushed the Department of Veterans Affairs (VA) to expand care outsourcing for nine million former service members. Trump’s first VA Secretary, a hold-over from Barack Obama’s administration, dragged his feet on implementing this ill-advised policy.
As a result, Dr. David Shulkin, an experienced hospital system administrator in the private and public sectors, was fired by Trump in 2018 after keeping him around for over a year. In his memoir, It Shouldn’t Be This Hard to Serve Your Country, Shulkin blames his downfall on Hegseth, who “never worked at the VA, knew nothing about managing a healthcare system, and had little understanding of the clinical and financial impact of the policies he was advocating.”
Hegseth does have a background as “a capable midgrade officer” who earned two Ivy League degrees and Bronze Stars, plus media experience ranging from writing for the Princeton Tory, a conservative undergraduate publication, to opining about military and veterans’ affairs on Fox & Friends Weekend where he’s a host. In any other Republican administration, this resume would qualify him as a Pentagon press secretary.
That Hegseth has instead risen to a cabinet pick is a testament to the continuing impact of the Koch Brothers-backed Concerned Veterans for America (CVA). After a failed bid to become the GOP nominee in a 2002 Republican primary race for a U.S. Senate seat in his native Minnesota, Hegseth became CVA’s first CEO and a leading advocate for turning veterans care over to private doctors and hospitals.
CVA was an astroturf upstart in veterans’ affairs and an outlier in pushing VA privatization. Traditional Veterans Services Organizations (VSOs)—like Veterans of Foreign Wars, American Legion, Disabled American Veterans, or Vietnam Veterans of America—represent millions of veterans. Their members pay dues and elect their leaders. They have local chapters and national conventions. They have roots in the community and provide valuable services to individual veterans who need help filing disability claims for service-related conditions, which qualifies them for VA care.
VSO lobbying victories include the passage of the PACT Act of 2022. This legislation made VA benefits and related medical coverage easier to obtain for nearly a million veterans, including many whose health was damaged due to burn pit exposure during post-9/11 wars in the Middle East. (Hegseth initially applauded and then criticized the wars in Iraq and Afghanistan, a flip-flop characteristic of his career. As Iraq war veteran and VoteVets co-founder Jon Soltz says about him, “I have been debating Pete Hegseth for years, and I can’t tell you what he stands for other than himself and his own ambition.”
An Astro-Turf Group
With few actual dues-payers, no VSO-style membership service programs, and a political agenda bankrolled by libertarian billionaires, CVA helped pass few bills that benefited the nation’s 19 million veterans. Instead, during the Obama era, the media-savvy group became a battering ram against tax-payer-funded healthcare in any form, a longtime bête noir of the Kochs.
Hegseth became their most visible and effective mouthpiece in a wide-ranging campaign to discredit VA care and the Affordable Care Act (ACA). In 2013, CVA ran video ads warning, in Hegseth’s words, that all Americans would soon “face long wait times, endless bureaucracy, and poor service” if Congress expanded health care access by subsidizing private insurance coverage. The result, he claimed, would be billions of dollars wasted on “a nationalized health care plan that will bring the same bureaucratic dysfunction to the larger U.S. healthcare market”–as if the VA were a model for “Obamacare,” which it certainly wasn’t.
A year later, this propaganda offensive, closely coordinated with right-wing Republicans on Capitol Hill, claimed the scalp of retired four-star General Eric Shinseki, the Vietnam veteran who was Barack Obama’s first VA Secretary. Shinseki became the fall guy for a localized scandal involving misconduct by a few VA hospital managers in Phoenix. Their doctoring of data on medical appointment wait times—to earn bonus payments—led to CVA-amplified false claims that 40 Phoenix area vets had died due to delayed care. The result was that mainstream media packed journalism at its worst, and there was growing pressure for more out-sourcing of VA care despite its higher quality, lower cost, and greater accessibility than private alternatives.
On Capitol Hill, bi-partisan majorities passed the VA Choice Act of 2014 and, four years later, the VA MISSION Act. Both opened the floodgates for increasingly costly and disastrous privatization of the nation’s most extensive public healthcare system. CVA helped engineer the passage of each measure. After stepping down as CEO of Concerned Veterans of America ten years ago and becoming a Fox News commentator, Hegseth continued to advise President Trump on veterans’ affairs; other CVA alums served in official positions at the White House or VA headquarters in Washington.
Hegseth’s return to the conservative media eco-system of his college years has paid handsome rewards; he has become a multi-millionaire (despite two divorces) as a Fox & Friends talking head, paid speaker, and bestselling author of The War on Warriors, a critique of what he calls a "woke military." Like other high-paid former military officers, his benefit package in the private sector leaves Hegseth unlikely ever to need the VA, federally subsidized insurance coverage obtained through the ACA, or, when he retires, Medicare coverage. If confirmed, his pay as DOD Secretary will be a mere $246,000 per year, but with lucrative “revolving door” opportunities in the future, when and if he transitions back to the private sector from the Pentagon.
Pentagon Cost Savings?
Meanwhile, enlisted personnel and veterans from poor and working-class backgrounds bear the brunt of failed CVA-backed experiments with the privatization of the Military Health System and the VA. Under Trump and Biden, the DOD was flush with money for military aid, expensive new weapons systems, and base maintenance worldwide. Nevertheless, the Pentagon cut healthcare delivery costs for its workforce, retirees, and dependents.
Military hospitals were closed, staff positions cut, and several hundred thousand more patients were shifted to TRICARE, a federally funded form of private insurance. Newcomers to the private sector soon reported having greater difficulty getting timely medical appointments or accessing care in areas of the country with a shortage of primary care providers and specialists.
The Pentagon found that contracting out left its hospitals and clinics “chronically understaffed” and less able to “deliver timely care to beneficiaries or ensure sufficient workload to maintain and sustain critical skills. After reassessing the situation, the DOD launched an effort to “re-attract” patients back to the MHS. As studies have shown, in-house care produces better outcomes at lower cost, with fewer racial disparities—an essential advantage for a patient population of nearly 40 percent non-white.
If Hegseth becomes DOD Secretary by recess appointment or Senate confirmation, he will undoubtedly stop bringing TRICARE beneficiaries back into the MHS. He will also halt efforts to rebuild the DOD’s in-house healthcare delivery capacity.
And Hegseth will not be the only ideological foe of “government healthcare” in a high-level Trump Administration position. His fellow cabinet nominee, former Congressman Doug Collins, an Iraq War veteran from Georgia, will be eager to pick up where Robert Wilkie, Trump’s second VA secretary, left off with his privatization efforts in 2021. And, with the biggest impact, Dr. Mehmet Oz, the TV celebrity picked by Trump to run the Centers for Medicare and Medicaid, will further undermine traditional Medicare by replacing it with for-profit Medicare Advantage plans, on a more universal basis.
On all three fronts, these Trump appointees will weaken the public provision of healthcare that currently benefits more than 80 million people, making expanding such programs even more difficult.