The Department of Veterans Affairs will invest $4.8 billion in efforts to modernize and repair healthcare facilities nationwide.
As federal health agencies continue to manage large-scale investments and long-term modernization efforts, leaders across government and industry are watching how these initiatives unfold. The Potomac Officers Club will host the rescheduled 2025 Healthcare Summit on Feb. 12. Register now!
VA said Wednesday the planned fiscal year 2026 spending marks the largest single-year investment under the Veterans Health Administration’s Non-Recurring Maintenance, or NRM, program.
“Under President Trump, VA is putting Veterans first, and this historic investment underscores that fact,” said VA Secretary Douglas Collins. “Improved facilities, equipment and infrastructure mean better care for Veterans, and these funds will enable VA to achieve that goal.”
What Is the VA NRM Program?
The NRM program provides funding for one-time maintenance projects that are not part of routine, recurring maintenance. The program targets significant repairs, replacements or upgrades to facilities, equipment and infrastructure to improve healthcare delivery and maintain operational capability.
How Will the VA Distribute the FY26 Infrastructure Funding?
The VA said it will spend $2.8 billion on infrastructure system upgrades in medical facilities and $1 billion on electronic health record system modernization efforts.
In March 2025, the department announced that nine additional medical facilities would deploy the Federal EHR system in 2026.
According to the department, $500 million will be invested in major building upgrades such as elevators, electrical systems and boiler plants and another $500 million in medical center modernization initiatives.
What Did Douglas Collins Say About the VA Reorganization Plan?
Federal News Network reported Thursday that Collins appeared before the Senate VA Committee to discuss the department’s reorganization plan.
He told lawmakers that the reorganization will allow the VA to shift more healthcare workers to facilities serving growing veteran populations.
“This is not a reduction in force, and this is not an effort to diminish direct care for veterans. This is a reorganization designed to eliminate excessive VA administrative overhead and redirect more resources directly to the field,” the VA secretary noted. “In other words, this is something that will lead to better results for the veterans, families, caregivers, and survivors we serve.”
In December, the VA announced plans to reorganize VHA to reduce bureaucracy, ensure a consistent policy application across medical facilities and improve healthcare for veterans.
