[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]







                   BUREAUCRATIC BARRIERS: MAKING VBA
                  EDUCATION SERVICES WORK FOR VETERANS
                       AND NOT THE BUREAUCRACY

=======================================================================

                                HEARING

                               before the

                  SUBCOMMITTEE ON ECONOMIC OPPORTUNITY

                                 of the

                     COMMITTEE ON VETERANS' AFFAIRS

                     U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED NINETEENTH CONGRESS

                             FIRST SESSION

                               __________

                       TUESDAY, FEBRUARY 11, 2025

                               __________

                            Serial No. 119-4

                               __________

       Printed for the use of the Committee on Veterans' Affairs





    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]





                    Available via http://govinfo.gov
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                     COMMITTEE ON VETERANS' AFFAIRS

                     MIKE BOST, Illinois, Chairman

AUMUA AMATA COLEMAN RADEWAGEN,       MARK TAKANO, California, Ranking 
    American Samoa, Vice-Chairwoman      Member
JACK BERGMAN, Michigan               JULIA BROWNLEY, California
NANCY MACE, South Carolina           CHRIS PAPPAS, New Hampshire
MARIANNETTE MILLER-MEEKS, Iowa       SHEILA CHERFILUS-MCCORMICK, 
GREGORY F. MURPHY, North Carolina        Florida
DERRICK VAN ORDEN, Wisconsin         MORGAN MCGARVEY, Kentucky
MORGAN LUTTRELL, Texas               DELIA RAMIREZ, Illinois
JUAN CISCOMANI, Arizona              NIKKI BUDZINSKI, Illinois
KEITH SELF, Texas                    TIMOTHY M. KENNEDY, New York
JEN KIGGANS, Virginia                MAXINE DEXTER, Oregon
ABE HAMADEH, Arizona                 HERB CONAWAY, New Jersey
KIMBERLYN KING-HINDS, Northern       KELLY MORRISON, Minnesota
    Mariana Islands
TOM BARRETT, Michigan

                       Jon Clark, Staff Director
                  Matt Reel, Democratic Staff Director

                  SUBCOMMITTEE ON ECONOMIC OPPORTUNITY

                 DERRICK VAN ORDEN, Wisconsin, Chairman

JUAN CISCOMANI, Arizona              CHRIS PAPPAS, New Hampshire, 
ABE HAMADEH, Arizona                     Ranking Member
KIMBERLYN KING-HINDS, Northern       MORGAN MCGARVEY, Kentucky
    Mariana Islands                  DELIA RAMIREZ, Illinois
TOM BARRETT, Michigan                TIMOTHY M. KENNEDY, New York

Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public 
hearing records of the Committee on Veterans' Affairs are also 
published in electronic form. The printed hearing record remains the 
official version. Because electronic submissions are used to prepare 
both printed and electronic versions of the hearing record, the process 
of converting between various electronic formats may introduce 
unintentional errors or omissions. Such occurrences are inherent in the 
current publication process and should diminish as the process is 
further refined.





























                         C  O  N  T  E  N  T  S

                              ----------                              

                       TUESDAY, FEBRUARY 11, 2025

                                                                   Page

                           OPENING STATEMENTS

The Honorable Derrick Van Orden, Chairman........................     1
The Honorable Chris Pappas, Ranking Member.......................     3

                               WITNESSES

Mr. Ken Smith, Acting Executive Director, Education Service, 
  Department of Veterans Affairs.................................     5

        Accompanied by:

    Mr. James Ruhlman, Deputy Director, Education Service, 
        Department of Veterans Affairs

                                APPENDIX
                    Prepared Statement Of Witnesses

Mr. Ken Smith Prepared Statement.................................    27

                       Statements For The Record

Defense Credit Union Council.....................................    35
Document for the Record Submitted by Derrick Van Orden...........    38

 
                   BUREAUCRATIC BARRIERS: MAKING VBA 
                  EDUCATION SERVICES WORK FOR VETERANS 
                        AND NOT THE BUREAUCRACY 

                              ----------                              


                       TUESDAY, FEBRUARY 11, 2025

      Subcommittee on Economic Opportunity,
                    Committee on Veterans' Affairs,
                                  House of Representatives,
                                                   Washington, D.C.
    The subcommittee met, pursuant to notice, at 10:14 a.m., in 
room 360, Cannon House Office Building, Hon. Derrick Van Orden 
(chairman of the subcommittee) presiding.
    Present: Representatives Van Orden, Ciscomani, Hamadeh, 
King-Hinds, Barrett, Pappas, McGarvey, Ramirez, and Kennedy.

        OPENING STATEMENT OF DERRICK VAN ORDEN, CHAIRMAN

    Mr. Van Orden. Good morning. The Subcommittee will come to 
order. Before we begin testimony for the first hearing of the 
119th Congress, I would like to introduce myself. I am Derrick 
Van Orden. I think I would speak loud enough if I have that 
microphone. I just figured that out. I am a retired Navy SEAL 
senior chief. I am the longest serving enlisted member of the 
military to ever be elected to Congress. I have used every 
educational program that the Department of Defense offers, 
including our Veterans Readiness and Employment (VR&E), and I 
used the G.I. Bill to help educate my children.
    I get all my health care through the VA. I love the VA. I 
love the folks that give me my medical care. Welcome, ma'am. I 
am sorry. I would love, I love our health care providers. I 
love the folks that have helped me get my education.
    What I despise about the VA is the bureaucracy and we waste 
billions and billions of dollars supporting the bureaucracy of 
VA. It is my intent to stop that.
    Every single dollar that is wastefully spent is one that 
does not go to a veteran, either their health care or education 
or our gold star families, the benefits that they have earned 
by sacrificing their family.
    Essentially this is Groundhog Day. Mr. Barrett chaired the 
subcommittee yesterday. It was a closed session, so I will not 
described it in detail but essentially what we have identified 
again is billions and billions and billions of dollars worth of 
waste that the VA is responsible for through either inadequate 
or no planning at all and that has got to stop.
    I would be remiss not to mention my great friend, Mike, who 
is no longer the ranking member. He has moved onto 
appropriation. I do not know why he would want to go there, but 
I would like to welcome Mr. Pappas. We had a great meeting in 
private discussing your priorities, which would be veterans 
homelessness, and we will be going to a field hearing to your 
districts.
    You have not heard this yet, but this is not a bipartisan 
committee. This is a nonpartisan committee and that is, we 
started that. Mike and I had a great relationship, and I expect 
the same. I cannot believe Morgan is back. Good to see him. Mr. 
Barrett, and ma'am, it is so wonderful to have you here.
    I want to make sure that we follow through with some things 
that we started in the 118th, so from the Senator Elizabeth 
Dole 21st Century Veterans Healthcare and Benefits Improvement 
Act we were able to pass improvements to education benefits, 
homelessness prevention, homelessness prevention benefits, 
Uniformed Services Employment and Reemployment Rights Act 
(USERRA) and reduce the red tape of the VA
    We will hear from the VA today. We have lots more to do to 
this and I want to make sure that we are going to refocus the 
Veterans Affairs Administration on veterans and not the 
Veterans Affairs Administration. We are going to talk about 
State of Education Services. The Department of Veterans Affairs 
since 2020 the number of employees at the Education Services at 
VA's headquarters in D.C. has nearly doubled growing from 102 
to 185 in 2024. I want to say it again, the headquarters staff 
has nearly doubled but the actual budget has only increased by, 
it went from $1.5 billion to $12.1 billion and that is a 
tremendous amount of money.
    If we are spending all this money and we are increasing the 
bureaucracy and not sending that to veterans benefits, that is 
a problem.
    I swear to God this is like Groundhog Day. I am just going 
to bulletize some things here so that everybody understands for 
the record. We have seen this in this hearing room contract and 
oversight mistakes of the G.I., the digital G.I. Bill to the 
tune of billions of dollars--excuse me, hundreds of millions of 
dollars, VA bureaucrats going rogue with risk-based surveys 
leading to schools backing out from accepting the G.I. bill, so 
the antithesis of what the VA is supposed to be doing are 
actually chasing veterans away from getting educated, an 
absolutely foolish interpretation of a Supreme Court case that 
will add nearly $10 billion to the deficit over the next decade 
and not help anybody, a VA proposing rule to Federal Registry 
using the wrong form causing schools to panic, paperwork, 
government employees reinterpreting congressional law and 
kicking out religious schools from our G.I. Bill. Unacceptable. 
Former head of Education Services giving out his contact 
information to school certifying officials because they had so 
many communications issues that needed to be solved and the 
list just goes on and on and on and on and on. It is going to 
stop. Like this is going to stop.
    I am very excited to have a new Secretary of the Veterans 
Affairs. Denis was a friend of mine. I think he was undermined 
and subverted by a lot of people sitting over here, permanent 
bureaucrats. I firmly believe that. Denis wanted to do what was 
right and his feet were knocked out from underneath him by the 
permanent ruling class in Washington D.C. and those are not 
elected officials, and it is going to stop.
    We are going to do everything we can to make sure that 
every single dollar that is allocated by this Congress goes to 
help a veteran, not a bureaucrat. And so help me, God, that is 
my sole intent and if I do not know how I could be more clear. 
Mr. Pappas, that is how this is going to go. I yield to the 
ranking member for any comments you may have, sir.

       OPENING STATEMENT OF CHRIS PAPPAS, RANKING MEMBER

    Mr. Pappas. Well I want to thank you first for your service 
in Congress but also to our great nation and just the spirit by 
which you approach your role here as a chair of this 
subcommittee. I was on this subcommittee for my first two terms 
in Congress. Really pleased to back and look forward to 
developing a good, strong working relationship and continuing 
the work that you did with Mike Levin for the last couple 
years.
    I want to thank you for holding this session here today. I 
think we can all agree that the G.I. Bill is landmark law, and 
I look forward to the work that we will do today together to 
ensure that student veterans are provided the level of quality 
that they deserve. I think we cannot hold this hearing today 
without recognizing what is transpiring, the pressures on 
federal programs and certainly on the Federal workforce as well 
dedicated people that meet the needs of veterans each and every 
day.
    I want to take a trip back to late 2024, the final two 
hearings of the Veterans Affairs Committee were on federal 
agency overreach and poor performance due to staffing shortages 
at the Veterans Readiness and Employment program. Since the 
inauguration of President Trump, the VA has been thrown into 
chaos as other federal agencies have been thrown into chaos. 
Hiring freezes, pushing staff to quit, suspending grants, 
eliminating programs that veterans with disabilities rely on 
and frankly this congress has not stepped up to its authority 
and stepped up to the plate in a way that I think we should be 
at this moment.
    This is an authority that expert witnesses said would be 
used to restrain abuses in the executive branch. I will give 
you quote from a recent hearing, ``Agencies are not permitted 
to misread their congressional charge and statutes, and their 
interpretation ought to be regarded with special skepticism 
when they purport to find sweeping new authorities in old 
statutes.'' That was Dr. Phillip Wallick, senior fellow at 
American Enterprise Institute (AEI) testified before this 
committee on December 18th of last year.
    Yet today agencies under President Trump's executive 
actions are finding all kinds of new ways to circumvent 
congressional oversight. Dr. Wallick further remind this 
committee during his testimony after the Loper decision that 
many observers hope that these interventions can come from the 
executive branch, specifically politically appointees in the 
upcoming Trump administration, notably Elon Musk and Vivek 
Ramaswamy who lead the recently conceived Department of 
Government Efficiency (DOGE) argued in the Wall Street 
Journal's, Wall Street Journal that the court's recent ruling 
opens the door for the President to nullify thousands of 
regulations based on improper interpretations through 
nonenforcement and then review and recession.
    ``It is not at all clear that this is a sound prescription. 
Instead the remedy for excessive administrative power is a 
revitalization of congressional power not just a different 
flavor of administrative power as overseen by a more aggressive 
court.'' Dr. Wallick concluded his testimony by emphasizing how 
members from both parties should rely on information and 
guidance provided by public service professionals at VA and 
push bipartisan legislation through Congress. He said if that 
seems like pie-in-the-sky idea of how the House operates then 
we all need to be asking how to make it work better.
    I believe in the good work of this subcommittee and the 
role of our committee in legislating and in overseeing the 
Department. None of us want unelected bureaucrats running wild, 
damaging systems, and compromising benefits for veterans. I 
want to work with every member of this subcommittee to ensure 
that veterans are at the center of all of our efforts and that 
we are truly delivering the benefits that they have earned in a 
timely fashion.
    Mr. Chairman, I appreciate your comments saying that this 
is a nonpartisan place for work, and I could not agree more. 
That is why we must do the job of oversight of federal agencies 
and programs, stand tall as a co-equal branch of government and 
not shrink from our responsibilities, especially when it comes 
to the end veteran.
    Regarding the hearing today, I look forward to VA providing 
more information on the implementation of the Elizabeth Dole 
Act and hearing from VA about plans for 2025 and beyond and I 
do want to thank you most sincerely, Mr. Chairman, for the time 
and I yield back and look forward to the next couple of years 
together.
    Mr. Van Orden. Thank you, Mr. Pappas. I appreciate several 
of your comments. I would, I would like us to focus internally, 
sir. I have done nothing over the last two years other than 
reminding the Biden Administration that we are a co-equal 
branch of government, and I would, I would remind you, sir, 
that President Trump has been in office for three weeks and I 
think a day. Let us look forward collectively to doing things 
great and if we have concerns I think we should address these.
    I will now introduce the witness panel. Our first witness 
is Mr. Ken Smith, Acting Executive Director of Education 
Services, at the Veterans Benefits Administration (VBA). Mr. 
Smith is accompanied by Mr. James Ruhlman--I got that right--
Deputy Director of Education Services at the Veterans Benefits 
Administration.
    I will ask the witnesses to please stand and raise your 
right hand. Do you solemnly swear that the testimony you are 
about to provide is the truth, the whole truth, and nothing but 
the truth?
    [Witnesses sworn.]
    Mr. Van Orden. Thank you. Let the record reflect that the 
witnesses have answered in the affirmative. Mr. Smith, you are 
now recognized for 5 minutes to deliver your testimony on 
behalf of the Department of Veterans Affairs.

                     STATEMENT OF KEN SMITH

    Mr. Smith. Thank you, sir. Chairman Orden, Van Orden, 
Ranking Member Pappas, and Members of the Subcommittee, thank 
you for the opportunity to discuss the VA's delivery of 
education benefits to our veterans and their families. 
Accompanying me today is Mr. James Ruhlman, Deputy Director of 
Education Service.
    I understand and I am read in the concerns this committee 
has raised on various issues in this space. One such issue that 
came to my attention with your staff's recent visit to our 
regional processing office in Muskogee. While there they 
observed the processing of a claim related to the Supreme 
Court's recent Rudisill decision. I understand that it did not 
go as planned.
    While the claim was processed, it took too long and 
encountered several obstacles. Your staff heard concerns 
directly from claims processors noting the very complex 
instructions that they as claims processors are expected to 
follow. Our team also described how claims go back and forth 
several times before being fully completed, adding to the 
delays and aging of claims.
    We are taking immediate actions to engage claims processors 
who are working these claims to gather their feedback.
    VBA is evaluating current resources and tools, finetuning 
procedures and exploring additional training opportunities, as 
well as enforcing accountability throughout the process.
    Despite some challenges, I want to highlight that VA's made 
some great strides over the last several years to improve 
benefit delivery and customer experience. VA's automated 
approximately 50 percent of certificates of eligibility for new 
applicants, allowing veterans to start their educational 
pursuits faster.
    Supplemental claims are currently hoovering near 70 percent 
automated up from 40 percent in March 2021. We are also working 
to modernize our systems. In July 2024, VA took the first 
tangible steps to move 87 percent education benefit payments 
off of the 50-year-old legacy Common Business-Oriented Language 
(COBOL) system. Just this month, VA processed its first non-
Chapter 33 claims on the Digital GI Bill (DGI) platform. We are 
on track to complete the migration from the legacy Benefits 
Delivery Network (BDN) system by November 2025.
    With the recent passage of the Elizabeth Dole Act, VA has 
momentum to make necessary improvements to assist veterans in 
obtaining full-time employment. Participants in the prior 
program overwhelmingly recommended Veterans Technology 
Education Courses (VET TEC) to other veterans.
    VA proactively--VA's proactive efforts to improve customer 
experience are making a difference across the board.
    VBA's customer experience Survey Trust Score responses 
indicate 87 percent of respondents expressed confidence about 
enrolling in schools to use their education benefits up from 72 
percent in 2022 and 85.6 percent trust that they will receive 
their education benefits up from 75 percent in 2022.
    VA also recognizes that strengthening partnerships with 
external entities expands the veteran support network. We will 
meet regularly with the leadership of the national association 
of state approving agencies (SAA) and school certifying 
officials. Our collaboration with the SAAs has improved the 
risk-based surveys resulting in improved accountability and VA 
is currently approving new programs in approximately 5 days.
    School certifying officials (SCO) are important partners 
serving as the first touchpoint for veterans enrolling in 
school. These SCOs overwhelmingly endorse improvements to the 
DGI enrollment manager, which replaced the first, the legacy 
VA. Once program in March 2023, and has already processed 10 
million enrollments.
    In calendar year 2025, VA will address multiple high 
priorities to include continuing DGI modernization, improving 
the Rudisill review for a million potential beneficiaries and 
enacting the many education related provision of the Elizabeth 
Dole Act. We will also implement recommendations from the 
Office of Inspector General and Government Accountability 
Office (GAO).
    Mr. Chairman, I share this committee's mission of working 
for veterans and ensuring that VA effectively delivers the very 
benefits that veterans have earned and deserve. I commit to you 
that I will work to get it right, remain transparent in our 
efforts and to not shy away from the challenges. My team and I 
will also put veterans and beneficiaries first.
    Mr. Chairman, this concludes my statement. My colleague and 
I are prepared to answer any questions you or other members of 
the committee may have.

    [The Prepared Statement Of Ken Smith Appears In The 
Appendix]

    Mr. Van Orden. Thank you, Mr. Smith. The written statement 
of Mr. Smith will be entered into the hearing record. We are 
now going to proceed with the questioning. You are new here, 
you two are, so we do 5 minutes, not 5 minutes and 50 second. 
Cool? Keep it on track. We can always do a second round of 
questioning if you guys are not satisfied with the answers from 
the witnesses. Okay? Yes, I am talking to McGarvey over there. 
All right. I now recognize the Ranking Member Pappas for 5 
minutes to question the witnesses.
    Mr. Pappas. Okay. Let us see how I do, sir.
    Mr. Van Orden. You will be fine.
    Mr. Pappas. Thank you, Mr. Chairman. Thanks for the 
testimony, Mr. Smith, and our office and so many of my 
colleagues' offices have been flooded with constituent calls 
over the last few days and few weeks. We have literally heard 
from thousands of people in my district in New Hampshire who 
are concerned about sweeping executive orders from the 
administration including those that are impacting VA.
    The orders along with unclear guidance have I think shaken 
confidence in the ability of, or the understanding that VA is 
going to deliver on its promises to our veterans. I have heard 
that directly from the veteran community in New Hampshire.
    We were recently made aware of a list of positions at VA 
that are not eligible for Elon Musk's so-called fork-in-the-
road retirement plan. One of the positions is the VR&E 
counselor. You may be aware that I sent a letter to the 
secretary asking for this position to be exempt from the hiring 
freeze. My question to you is if the position is so mission 
critical that these individuals are not eligible for the 
retirement offer why are these positions subject to a hiring 
freeze?
    Mr. Smith. Thank you for the question, sir. There is a 
separate executive order that we are operating under that 
implement a government wide hiring freeze and, you know, we are 
following that order.
    Mr. Pappas. Do you expect that VA will request an exemption 
from the freeze to hire staff members that can service 
veterans' economic opportunity benefits including positions 
that are needed to administer VR&E.
    Mr. Smith. I am not sure what the secretary will choose to 
do. I certainly await his guidance.
    Mr. Pappas. Okay. If an exemption were granted and wait 
times were not granted and wait times could increase as a 
result would the administration reconsider an exemption as soon 
as possible to minimize the impact to disabled veterans who are 
seeking employment?
    Mr. Smith. We absolutely want to minimize impact to the 
extent possible and we will work with you and the appropriators 
to make sure that we have, that we can fill to our budget 
ceiling once we have reached the position where we can begin 
hiring again.
    Mr. Pappas. To your knowledge have any VR&E connected 
positions been rescinded?
    Mr. Smith. I do not know, sir.
    Mr. Pappas. Okay. What if anything is VA's plan to ensure 
that veterans do not experience delays in accessing VA's earned 
benefits?
    Mr. Smith. Speaking for the education delivery of benefits, 
our positions, our claims processing positions are also 
exempted as claims processors. We continue to execute against 
the mission with the staffing that we have, and our high rate 
of automation is supporting that as well allowing us to deliver 
those critical benefits.
    Mr. Pappas. I want to get to Rudisill. You brought it up in 
your testimony, a population of over a million veterans and 
their dependents who are potentially impacted by the decision 
which established that eligible veterans and their dependents 
can access up to 48 months of education benefits if they served 
during two periods, typically before and after 9/11. How is the 
president's hiring freeze impacting VA's ability to begin 
reviewing these records?
    Mr. Smith. We are, we are reviewing all of the Rudisill 
claims with existing staff. I would say that we have the staff 
onboard to conduct this review. Right now we are in the midst 
of our spring hiring surge, so we are working to ensure that we 
are delivering benefits for veterans and family members who are 
in school and then we will shift to Rudisill. We prioritize 
those claims so that we are making decisions for those that are 
in school and low on remaining entitlement so that they can 
continue their educational pursuits.
    Mr. Pappas. With respect to the review in a briefing, 
January 7th, it was reported that it would take approximately 
22 months to complete the review because existing examiners at 
regional processing offices have the ability to conduct this 
work--only have the ability to conduct the work during nonpeak 
enrollment periods.
    It seems that waiting to hear about eligibility for 22 
months is not centering on veterans and putting them first. Is 
there any way that that timeframe can be expedited? What would 
you need to get that review done in a much more timely fashion?
    Mr. Smith. As I said we are, we, our current method is to 
prioritize those claims that where the veteran or family member 
is in school or low on entitlement. That is I think the best we 
can offer at the moment. I----
    Mr. Pappas. Would additional staffing help you conduct 
those that review in a timelier fashion, less than 22 months?
    Mr. Smith. These are very complex determinations. I am not 
certain that additional staffing at this point would help.
    Mr. Pappas. Okay. My time is up. I yield back.
    Mr. Van Orden. Thank you, Ranking Member Pappas. I now 
recognize Mr. Barrett from the great state of Michigan, which 
is directly across from Lake Wisconsin.
    Mr. Barrett. Is that anywhere near the Gulf of America, Mr. 
Chairman?
    Mr. Van Orden. Very close, sir.
    Mr. Barrett. Okay.
    Mr. Van Orden. I am glad someone got that.
    Mr. Barrett. Well thank you. Mr. Smith, I know that there 
has been a lot of discussion about these risk-based surveys 
that are done and what constraint that has had, the downstream 
effect of that on veterans being able to access education that 
really fits their needs and what they are seeking. Can you give 
us an update as to the status of these risk-based surveys and 
whether they are being used in a strategic way to 
disincentivize education institutions from participating in the 
G.I. Bill and making that accessible to veterans?
    Mr. Smith. Thank you for the questions, sir. I will give a 
short answer and then hand it off to Mr. Ruhlman, who is much 
more an expert on risk-based surveys. I will say that we do not 
target any specific schools. We use a data-driven approach to 
determine who ought to be reviewed under these surveys and 
ensure that veterans are receiving the training and not defraud 
out other benefits. Mr. Ruhlman?
    Mr. Ruhlman. The purpose of the risk-based surveys is to 
provide health checks and fix any problems before veterans 
become at risk and end up being impacted by a school closures 
and not being delivered with the quality of education that they 
deserve and expect.
    We do work closely with our SAA partners to revised that 
model. We have actually done it for three years in a row and we 
are currently in discussions with the state approving agencies 
at their mid-winter conference in Crystal City, which is going 
on this week.
    We are going to continue to revise those models. We have 
seen decreases year after year as we have revised that model 
from about 1,300 in Fiscal Year 2023, about 250 in Fiscal Year 
2024, and less than 200 this year and we will continue to do 
that. It is not the goal of either VA or the state approving 
agencies that are doing the risk-based surveys to drive schools 
out of the market or to decrease the number of opportunities 
available. We remain committed to working with our partners to 
make sure that we are looking at the right schools and not 
overburdening other schools that are in good shape.
    Mr. Barrett. Is it also true that someone not involved with 
the VA, not a part of your organization or anything else can 
still prompt a complaint that would trigger this review that 
you have described, the risk-based survey that you have 
described?
    Mr. Ruhlman. Complaints can drive the selection of a school 
for a risk-based survey. We actually have a minimum of two 
complaints that are needed in order to possibly do that and 
that is actually done also in combination with a number of 
other factors such as rapid growth in the student population 
enrolled in a program, the payments per student 85/15 
violations, 90/10 violations, any other serious actions or 
scrutiny by state or federal agencies.
    We do negotiate the selection of those schools with the 
state approving agencies. we do not expect a school to be 
selected solely because of the single or even two anonymous 
complaints. That was something that was at least partially 
responsible for the 1,300 number in Fiscal Year 2023.
    That is one of the things that we have really focused on 
along with no longer looking at the, at the transfer or 
retention or persistence rates which tended to target community 
colleges and two-year feeder schools for the four-years.
    Mr. Barrett. Okay. Thank you, Mr. Chairman, I yield back.
    Mr. Van Orden. Thank you, Mr. Barrett. The chair now 
recognizes Morgan McGarvey from the great state of Kentucky.
    Mr. McGarvey. Thank you, Mr. Chairman. Good to be back here 
this Congress with you all. Thank you all for being here today. 
Look, I think one of the things that makes this committee a fun 
committee to serve on is that we all agree. We all agree that 
we want to get our veterans, the brave men and women who are 
willing to put on a uniform and sacrifice everything for us, 
the benefits they have earned, and they were promised.
    I am glad we are having this hearing because we need to 
focus on how to better serve our veterans. I also want to make 
sure that we are putting all the focus on the right place, 
which is getting these veterans their services and how do we 
actually do that because that is what we want to have happen. 
Come back with me to Louisville, Kentucky. I will take you in 
the VA. I will take you in Veterans of Foreign Wars (VFW) 1170. 
I will take you anywhere. You are going to hear some similar 
things.
    One, a lot of veterans do appreciate when the VA works for 
them and there are things at the VA that are working for them. 
Then they are going to tell you about the things that the VA 
that are not working for them. We are here today talking about 
education benefits on this committee, and I think you would 
hear a lot of things, speed, that they are not getting these 
benefits quickly enough. You are going to probably hear 
complaints about confusing jargon, confusing things that happen 
like how do we, how do we jump through these hoops? How do we 
get these benefits we were supposed to have earned? Of course, 
that ease of access kind of goes in with the confusing jargon. 
How are we getting veterans what they need?
    When we talk about the VA and the bureaucracy at the VA, I 
think we can admit we all want there to be efficiency in the 
VA, we want these services to be timely delivered, but I do not 
want to just scapegoat every person who works at the VA, 
because we have a lot of really talented public servants who 
are at the VA getting our veterans the care and the things they 
need.
    When you look at what is happening, even though we are only 
three weeks into the Trump Administration, when we look at the 
executive orders on the hiring freezes, that applies to 
everybody even, we have heard from doctors who have had a 
hiring freeze and I know we are not talking about health care 
in VA today, but that certainly plays into what we are talking 
about. They are talking about drastically altering some of 
these policies in an effort to starve out some of our dedicated 
public servants and cut the workforce at the VA.
    I think we are here with the right intention, but I want to 
make sure we are here with the right focus and when you look at 
congress, it is, the real complaint here is we need to improve 
the policies and procedures in VA, let us do it. Let us work 
together to make those changes. I am totally for it.
    If we are concerned that railing against the VA is just 
pretext to begin a DOGE death spiral of the VA, where you gut 
the workforce in name of efficiency leading to slower benefit 
delivery and more backlog for our vets, then let us remember 
who we are here to serve.
    I think about these changes, one you mentioned something I 
want to get into, Mr. Smith, you said that additional staffing 
would not necessarily help. You know, one thing I hear from 
veterans is even if we go in the name of, look, we use 
technology in all of our daily lives. I hear from a lot of 
veterans that at the end of the day they want a person at the 
other end of the line eventually. What would help? You said 
staffing will not help. What will help us clear this backlog 
and get veterans the benefits they need and deserve?
    Mr. Smith. Thank you for the question. I certainly 
appreciate your comments. We are very focused in improving our 
Trust Score including all of the elements that you just 
mentioned as well as ensure that veterans feel valued. That is 
a key element of our Trust Score.
    In terms of what would, I am sorry, what will help, I would 
say we need better procedures, we need better job aids. We 
should not have to require our claims processors to do many 
multiple tasks without, you know, some supporting like 
templates. And I think we can look at technology as an enabler 
as well.
    We are not there right now. We need to take a look at, you 
know, things within our control in terms of those policies, 
procedures, job aids, and tools, issue some reinforcement to 
our folks who are one month or six weeks into processing these 
Rudisill claims on a very steep learning curve and then 
reassess and go forward.
    Mr. McGarvey. Thanks. We are short on time and so I just 
want to say I appreciate that. I do want to make sure that we 
are getting our veterans what they need. If some of that is 
technology that is fantastic. We need efficiency. We need 
better off.
    We also, we need to recognize what is going on right now. 
There are 1.7 million veterans who have been come eligible for 
additional G.I. benefits. The VBA is already using overtime and 
seasonal capacity so thanks so much and we will keep on this.
    Mr. Van Orden. Mr. McGarvey, if you would like we will do a 
second round of questions. I understand Mr. Pappas would like 
to do that already. Thank you very much. The gentleman yields 
back. The chair now recognizes our newest member from the 
Northern Mariana Islands, Ms. King-Hinds for 5 minutes.
    Ms. King-Hinds. Thank you, Mr. Chairman for this 
opportunity to learn a little bit more about Veteran Education 
Services. I come from the Northern Mariana Islands and our 
issue with the regards to veterans issue is just access. I am 
curious to just to see what the program currently does to 
ensure that equitable access for veterans living in remote 
areas like the Commonwealth of the Northern Mariana Islands 
(CNMI) with regards to the digital G.I. Bill platform is, 
ensures basically that our veterans have the same access.
    Mr. Smith. Yes, thank you for the question. All U.S. 
service members establish eligibility to education benefits 
based on the merits of their service. I would like to ask 
Ruhlman to talk just a little bit about getting schools 
approved over, you know, in remote areas.
    Mr. Ruhlman. Sure. Prior to this hearing I actually did 
look to see how many schools are approved in the Commonwealth 
of the Northern Mariana's. There is one college on Saipan and 
that is it. To the extent that you have other training 
providers that are interested in seeking G.I. Bill approval we 
can work with you to get them G.I. Bill approved in order to 
have more opportunities in the Northern Marianas for veterans 
who do live there, and we would love to work with you on that.
    We also do have a number of programs which are online which 
could be accessed and those of course can be accessed worldwide 
but really we need to have more schools offering programs 
whether that is technical schools, degree granting programs, 
employers who have on the job training (OJT) programs, that is 
one of the ways that probably you could increase the number 
would be to find some employers whether that is electricians, 
plumbers, really any of the trades, skilled trades that have 
OJT programs could be approved in the Northern Marianas as well 
to allow people to use their benefits and to gain skills which 
will help them get better paying jobs.
    Ms. King-Hinds. All right. Thank you. It was raised that a 
lot of times, right, our vets really would like to be able to 
have access to a real-life person to be able to work through 
some of these applications. In remote areas like the CNMI or 
rural areas in particular, right, access to the internet is a 
challenge.
    What have you done with regards to just outreach to these 
communities to ensure, right, we are talking about digitizing a 
platform, but in remote communities like ours sometimes access 
to digital platforms is a challenge and so what outreach work 
has been done to ensure that remote and rural communities just 
have a fighting chance basically at being able to avail some of 
these services?
    Mr. Smith. Mr. Ruhlman, could answer the question? I would 
like ask Mr. Ruhlman to answer that question.
    Mr. Ruhlman. Most of our outreach is done using a number of 
different approaches. The bulk of it is through email, 
websites, and it is electronic. I am sure we would have people 
who would love to do additional outreach in person but that 
would require additional travel funding.
    I am not sure what else we can do in the short run, but I 
would love to have further discussions about what we could do 
to provide better service to individuals in the, in the 
Commonwealth of the Northern Marianas as well as other more 
remote places within the United States because we do want to 
reach those individuals as well.
    Ms. King-Hinds. Thank you, Mr. Chairman. I yield my time.
    Mr. Van Orden. The gentlelady yields back. The chair now 
recognizes Mrs. Ramirez, my dear friend from the great state of 
Illinois.
    Ms. Ramirez. Thank you, Chairman. It is good to have 
midwestern representation in committee. I want to thank the 
Ranking Member also for holding today's hearing and the 
witnesses for joining us today.
    By the title of this hearing, I would like to believe we 
are all in agreement that education is an important tool to 
lift up our veterans and provide them with opportunities. While 
I know that my colleagues across the aisle have turned their 
backs on commitment to honor inclusion because of the current 
administration's attacks on diversity, on equity, and inclusion 
programs, I do have some news for them. On turning their backs 
on a commitment to diversity is turning their backs on 
veterans.
    Veterans are diverse and I am proud to represent 20,727 
diverse veterans of Illinois 3rd Congression District. Let us 
be clear, now when we are talking about veterans, we are 
talking about women, we are talking about people of color, we 
are talking about first generation veterans, we are talking 
about low-income veterans, we are talking about Lesbian, Gay, 
Bisexual, Transgender, Queer, Intersex, Asexual Plus (LGBTQIA+) 
veterans and deported veterans. They are all veterans. Each 
veteran is to be celebrated in their diversity and entitled to 
full access to their benefits that they have earned, and we 
promised them.
    That is why I take such a responsibility to provide careful 
oversight of our education services seriously. It is our job. 
We cannot let allow the times to dismantle veterans services or 
deny the unique needs of diverse veterans in the name of 
efficiency derail us from our duty. In fact if anything it 
should make us fight even harder to fund the progress we have 
made in serving veterans more effectively. With that I want to 
turn to some questions.
    The G.I. Bill comparison tool currently allows veterans to 
search for schools that have a particular population focus such 
as a women college for example, Alaska Native serving 
institutions, Hispanic serving institutions, we call them HSIs 
or historically Black colleges and universities, the HBCUs. Mr. 
Smith, will the VA remove this information as a search feature 
for veterans in order to comply with Trump's administration's 
executive orders ending diversity, equity, and inclusion 
programming?
    Mr. Smith. Thank you for the question, ma'am. One week on 
the job in and I have not gotten any instructions to that, to 
that end. I would be happy to bring something back to you.
    Ms. Ramirez. Mr. Smith, I would appreciate that. I 
certainly want to make sure that I know what search information 
is available and not available as veterans are looking at 
schools so we will follow up with you. Let me send you, let me 
ask you another follow-up question as you are searching. If the 
VA would remove the ability to search institutions by diversity 
characteristics, how would interfering with, how would that 
actually interfere with a veterans freedom to choose a school 
of their liking? Do you want, let me, do you want me to repeat 
it?
    Mr. Smith. Please.
    Ms. Ramirez. Yes. I have asked you if the VA is looking at 
removing this information, the search feature that allows 
people to look at a school, you know, based on is it a woman's 
colleges, is it an Alaska Native serving institution, is it an 
HSI or HBCU, and my question to was, is the VA going to remove 
the search feature and my follow-up question to you, because 
you are going to get me that information is if the VA removes 
the ability to search institutions by diversity characteristics 
how will this interfere with a veterans freedom to choose a 
school of their liking?
    Mr. Smith. I believe that would force them to use another 
search method for identifying schools of their choice. That is 
my suggestion.
    Ms. Ramirez. What search method would they be using? 
Google, like what?
    Mr. Smith. That would be my guess.
    Ms. Ramirez. Well they would have to Googling when they 
already were able to do that through the system that they use 
but now we are saying we do not want you to have that choice, 
so we are going to have you have to go look at other formats. 
In some ways it would impact their ability and accessibility to 
be able to look through the system they already have in place. 
Correct?
    Mr. Smith. It would be a two-step process.
    Ms. Ramirez. Making it harder for veterans. All right. Well 
let me, let me follow up. This past week my district office has 
been taking calls from concerned constituents who are unclear 
about how the Trump's administration executive orders on 
funding and programs may impact the processing of their G.I. 
claims and their G.I. benefits.
    Let me ask you one last question, Mr. Smith. Since these 
executive orders have been announced have veterans reached out 
concerned about the impact of the changes under education 
services and benefits?
    Mr. Smith. I am unaware of any call traffic specifically 
tagged to the executive orders but I could certainly research 
that.
    Ms. Ramirez. Do you have more calls this last week than you 
had before?
    Mr. Smith. I am unsure what our call volumes are right now.
    Ms. Ramirez. Can you check on that for me? Thank you.
    Mr. Smith. Certainly.
    Ms. Ramirez. Thank you, Mr. Chairman.
    Mr. Van Orden. The gentlelady yields back. Interestingly 
enough we have a senior enlisted guy here, we have got a 
warrant officer, and a commissioned officer, right? Correct? 
Army Intel? That is an oxymoron right there, I will tell you to 
be honest with you.
    I would like to just publicly state that from my 
perspective I do not recall a single instance where we cared 
about the color of someone's skin, their gender, their 
religion, or what they do in the privacy of their own home.
    I think we all need to get back to that position and I can 
affirmatively speak with confidence from the Trump 
administration from their perspective that they do not care 
about the color of your skin, your gender, your religion, or 
what you do in the privacy of your home, an that we will be 
approaching, they will be approaching as will this subcommittee 
from an absolutely, 100 percent neutral perspective and if 
anyone chooses to not do that then they are no longer welcome 
on this subcommittee, and that is how we are doing our 
business. That is cut and dry. That is the formal policy, and 
Mr. Pappas, I have not even discussed this, but we are not 
doing this correct?
    Mr. Pappas. Doing what?
    Mr. Van Orden. We are not going to, we are not going to 
look at people through these individual lenses?
    Mr. Pappas. Well I would be happy to have a conversation 
about it.
    Mr. Van Orden. Okay.
    Mr. Pappas. What the VA needs to do to reach underserved 
veterans----
    Mr. Van Orden. Yes, 100----
    Mr. Pappas [continuing]. so I think there is a----
    Mr. Van Orden.--percent.
    Mr. Pappas [continuing]. legitimate concern about 
Diversity, Equity, and Inclusion (DEI) going away and us not 
being able to seek out those veterans that deserve and need 
assistance. I think that is the concern that Mrs. Ramirez was 
expressing, and I support her questions.
    Mr. Van Orden. Yes. I do not get me wrong, my, I have 
tremendous amount of respect for you, ma'am. I just want to 
tell you that our prospective as veterans from the entire 
stratified levels of the military is we just do not see things 
that way and we served, Tom, how long have you, how long were 
in?
    Mr. Barrett. Twenty-two years, Mr. Chair.
    Mr. Van Orden. I was 26, how about you, Mr. Hamadeh?
    Mr. Hamadeh. Eighteen.
    Mr. Van Orden. Okay. We have got 60 years of military 
experience here. I am just saying that we do not see it that 
way. If there is anything we can potentially do better to reach 
all of our veterans, if you had that flag on your shoulder I am 
with you. Just to be clear so we are on the same sheet. Very 
well.
    The chair now recognizes Mr. Ciscomani from the great state 
of Arizona for 5 minutes.
    Mr. Ciscomani. Thank you, Mr. Chairman. You know, one of 
the major focuses that I have, that I have had since getting 
here to Congress and being on this, on this committee, is the 
transition from active-duty service into veteran, into civilian 
life and also what that means for them in terms of job 
opportunities.
    I have an advisory council that I formed two years ago 
where I have 20 veterans in my district and they range from 
enlisted and being in for four years, all the way up to retired 
generals of 35-plus years of service. It helps me get a real 
sense of what the transition looks like and it looks 
differently for every person out there. This is one of the main 
things that I hear in our community that the different 
opportunities that veterans can have.
    With my bill, the Senator Elizabeth Dole 21st Century 
Veterans Health Care and Benefits Improvement Act, that you 
mentioned just a little bit ago now being law, I look forward 
to the many education opportunities for veterans that will be 
created as a result of this enactment, from commercial drivers 
licenses to careers in computer science, this bill puts 
veterans and their loved ones first by extending popular 
programs like the VET TEC, eliminating red tape for more 
opportunities in education for veterans and expanding the Fry 
Scholarship benefits for surviving spouses and those who 
remarry as well.
    I look forward to continuing to hear more from you all on 
how the VA is putting our veterans first through their 
educational journey. In this particular topic, Mr. Smith, as 
you know VET TEC is an important higher education program that 
has put thousands of veterans into high paying jobs across the 
country, so I look forward to seeing this continued. What does 
the VA plan to, when--I am sorry. When does the VA begin to 
enroll veterans in this program again?
    Mr. Smith. Thank you for the question, sir. We are still 
working on an implementation plan. I do not have a date yet, 
but I would be happy to bring that back to you and Congress 
once we have it?
    Mr. Ciscomani. Is there a sense of urgency on this? This is 
an important aspect of the overall bill, you know, this has 
been a pilot program that was highly successful, so I am hoping 
that we have a sense of priority and urgency on this one.
    Mr. Smith. Yes, sir.
    Mr. Ciscomani. On the, a provision in the legislation 
states that 4,000 student can be enrolled annually. Do you 
believe this number will be reached, will be reached this year? 
If you expect Congress will need to increase that number in the 
future?
    Mr. Smith. Again I think I need to get some understanding 
of what the implementation timeline looks like. We are looking 
carefully at improving the payment processing systems and our 
ability to manage this through our digital G.I. Bill platform 
to ensure that we have payment integrity and are reaching the 
right veterans, so once we get all of that lined out within an 
implementation timeline I would be happy to talk to you more.
    Mr. Ciscomani. I am very interested in talking about that 
specific timeline. The federal government is not know for its 
expediency, so I think we need to really make sure that this is 
moving quickly and swiftly.
    We have, it is 4,000 a year. In my district alone we have 
almost 80,000 veterans. That is my district alone, one of 435 
in the Nation.
    That we, in my mind there is, you know, ever reason to 
reach the 4,000 and hoping that you come back and request for 
more because this is a highly successful program that we need 
to make sure that that happens. What about other aspects of the 
bill like the Fry Scholarship, is, how is that going and where 
are we on that?
    Mr. Smith. Yes, sir. The extension of delimiting dates for 
Fry Scholars, that is already completed because that was 
something that we could handle in just regulations. We are 
moving forward with that.
    Mr. Ciscomani. I will ask the same follow-up question. What 
are the, what is the timeline on this? What are you, what are 
you thinking?
    Mr. Smith. I will ask Mr. Ruhlman to give me some help with 
that. I believe it is already done.
    Mr. Ruhlman. Yes. There actually two Fry provisions, the 
first one, Section 201, which as to do with a temporary 
expansion of Fry Scholarship benefits and that is for terms 
that start on August 1st, 2025. We do expect right now to be 
receiving applications as of April 1st for that, so it should 
be before anyone has the chance to enroll and use those 
benefits.
    For Section 202, which has to do with the delimiting date 
and remarriage. We can actually handle that procedurally 
because it is not something where it is determined by the 
computer system. That one actually was implemented on January 
30th.
    Mr. Ciscomani. Basically we are ready to roll on this, 
right? We, you know,----
    Mr. Ruhlman. Yes.
    Mr. Ciscomani. We are now ensured that providers and 
students are able to participate in these programs, and 
specifically the Fry Scholarship that is ready to go?
    Mr. Ruhlman. For the delimiting date and remarriage, yes.
    Mr. Ciscomani. Okay. Well I am out of time but my, I would 
like to just get a sense of the timeline for the VET TEC please 
as specific as you can and with specific metrics on the goals 
of reaching the participants on there and also on the remaining 
parts of the Fry Scholarship. Thank you. Chairman----
    Mr. Van Orden. The gentleman----
    Mr. Ciscomani. I yield back.
    Mr. Van Orden. The gentleman yields back. The chair now 
recognizes Mr. Hamadeh for 5 minutes. Welcome aboard, sir.
    Mr. Hamadeh. Thank you, Mr. Chairman. Your previous 
comments are exactly spot on, the only thing we care about is 
the American flag on our right shoulders
    Mr. Van Orden. Right.
    Mr. Hamadeh. Right. As an Army veteran myself and a member 
of this committee, I am deeply troubled by the ongoing failures 
of the VA education service bureaucracy to efficiently deliver 
on the commitments we owe to those who have served.
    The post 911 G.I. Bill was meant to expand opportunity but 
today bureaucratic failures at the VA are delaying benefits, 
increasing costs, and making it harder for veterans to access 
the education they have earned.
    The botched digital G. I. Bill roll out is a prime example. 
What was supposed to streamline benefits ballooned from $470 
million to nearly $1 billion. I mean that is embarrassing in 
the private sector. That should be embarrassing in the 
government as well. It remains plagued by delays.
    Meaningless burden like excessive risked based surveys are 
forcing legitimate schools to drop G.I. Bill eligibility and 
the disastrous Rudisill expansion could cost taxpayers $10 
billion with VA bureaucracy unilaterally adding to the federal 
deficit. We need accountability, not excuses. Now the VA must 
work for the veteran, not against them. Those who served our 
nation deserve the best.
    Now Mr. Smith, the VA has set a November 2025 to final 
complete transitioning VA education benefits to a long delayed 
digital G.I. Bill platform. This timeline has already slipped 
before so what is VA doing to ensure that the digital G.I. Bill 
program stays on track for this release?
    Mr. Smith. Thank you for the question, sir. Let me say 
first you have my commitment to be accountable and to ensure 
that we are doing all we can to right by veterans, this 
committee and get it right for those that have earned the 
benefits.
    We are on track for November 2025 to be off the BDN or the 
benefits delivery network COBOL based system. We have had a 
successful transition this month with our first non-Chapter 33 
claims processing. We will move Chapter 35 dependents education 
assistance next month and we are on track still with that 
overall deployment in by November.
    Mr. Hamadeh. Well it has been 55 days since Chairman Bost 
sent a letter demanding answers regarding the failed 
implementation of the Digital G.I. Bill platform. I am just 
curious why the committee has not received a response?
    Mr. Smith. I will have to get back to you, sir. I----
    Mr. Hamadeh. Have you seen the letter?
    Mr. Smith. No, sir, I----
    Mr. Hamadeh. This was to the previous secretary. I am just 
wondering if there was any transition period, you know, from 
when you came in to see that letter?
    Mr. Smith. I have not yet in the first week on the job. I 
will certainly go back and look for that.
    Mr. Hamadeh. All right. Mr. Chairman, I yield back.
    Mr. Van Orden. Thank you. The chair now recognizes 
themselves in the third party for 5 minutes. It just sounds so 
silly, does not it? Mr. Smith, where is your predecessor?
    Mr. Smith. Sir, Senior Executive Service is designed as a 
flexible----
    Mr. Van Orden. Just tell me where he is at?
    Mr. Smith. He has been reassigned to another business line.
    Mr. Van Orden. Why would you suppose that is, Mr. Smith? 
The VA moves at its own speed. I ask unanimous consent that 
this from April 1st, 2023, this press release from the 
Department of Veterans Affairs is entered into the record. 
Without objection, so ordered. Okay.
    Budget cut proposals would hurt veterans. This is from 
April 21st. This is what you said that our budget cuts were 
going to threaten medical care for veterans. It did not happen. 
Undermine access to telehealth, as a matter of fact we expanded 
it. That did not happen. Worsen wait times for benefits, that 
did not happen. Prevent construction on health care facilities 
and veterans needs, that did not happen. Failed to honor the 
memory of all veterans, we actually increased the budget by $81 
million for our cemeteries overseas. Cut housing for veterans, 
no. Increase food insecurity for veterans, no. Deprive veterans 
of mental health, substance abuse, and other health services, 
no. Eliminate job training and support homeless veterans, no. 
Okay.
    This is still on your website. Okay. Enough of this trash. 
When we are talking, look, the Trump administration has been in 
office for three weeks and one day. That is still on your 
website, and it is a pack of political lies. Enough. I am sick 
of this garbage, man.
    In 2020, there were 657,928 veterans using education 
services. In 2024, there is over 900,000. Okay. That is a 39.7 
percent increase in participants and yet you have an 81.4 
percent increase in your employees that are servicing this 
stuff with a 5 percent increase in funding. The math is not 
mathing, sir. You have bloated your bureaucracy and actually 
shrunk the ability of veterans to get education benefits. You 
have done that.
    I know you have been in office for a week and there is a 
reason your predecessor is not longer sitting there because of 
rampant failure. It is just bad. You said you are taking 
immediate action to correct these things What is a specific 
example of an immediate action that you have taken, Mr. Smith, 
to correct these deficiencies, just one?
    Mr. Smith. Sir, I am very interested in improving----
    Mr. Van Orden. All right. Stop. Let us, no, you are, no. 
That is not it. No. I, maybe you are not catching on. We are 
not going to do this any longer. I will be in office for at 
least a year and a half or whatever it is left, and I do not 
care. I honest to God do not care if I am sitting in this chair 
two years from now. I do care if you are sitting in that chair 
two minutes from now. You have mentioned accountability four 
times in your oral testimony. What does accountability mean to 
you?
    Mr. Smith. Sir, we need to improve our ability to manage 
risk, the schedule scope and cost.
    Mr. Van Orden. Are you aware of a single bureaucrat in the 
VA being fired for poor performance, one, are you aware of one?
    Mr. Smith. There are individuals that are terminated, sir. 
I cannot begin to tell you the reason.
    Mr. Van Orden. Yes. How many guys have been laid or gals 
who have been laid off for abject failure? Yes.
    Mr. Smith. I would have to get some information from our HR 
providers.
    Mr. Van Orden. Well please do. As a Member of Congress it 
is not my job to fire people in the executive branch. That is 
just not my function. I am asking you if you are aware of 
people that have been terminated for poor performance, and that 
is just----
    Mr. Smith. Yes.
    Mr. Van Orden. That is not my job. Okay. Good. I would like 
to correct, Mr. Hamadeh. It did not blow up from $460 million 
to $960 million. It actually started, the bid that you guys put 
in was $25 million. $25 million when you could have just used 
the Pell Grant process to do the electronic G.I. Bill, but you 
put in a bid for $25 million that is now $960 million, and I 
still do not think it is going to be done in time. My time has 
expired. I do not know, Mr. Pappas would like to do a second-
round question, so the chair now recognizes Mr. Pappas for 5 
minutes.
    Mr. Pappas. Thank you. I want to ask about implementation 
of a provision that was included in the Dole Act. I helped 
introduce a bipartisan bill. It is the Veteran Improvement 
Commercial Driver's License Act. This was included in Dole Act. 
It is based on the notion that we should be cutting red tape to 
ease veterans transition into the civilian workforce and help 
them find long term secure employment.
    I am wondering if VA has established the criteria and 
reporting requirements for commercial driver training programs 
that are seeking quicker approvals to open a new location and 
how VA will track Commercial Driver's License (CDL) schools 
performance? If you can fill in some detail there, that would 
be helpful?
    Mr. Smith. Yes. I can tell you that we are still working to 
implement that, and it is on track for March 2025, and I would 
like Mr. Ruhlman to give some more details.
    Mr. Ruhlman. Yes, we are working with our state approving 
agency partners in order to develop everything that we do need 
to implement that program, and we are working to develop some 
measurable requirements for really all of these provisions 
especially VET TEC because of what you quoted was actually 
specifically almost verbatim from a GAO report and that is 
something that we are trying to meet those requirements for the 
various provisions of the Dole Act.
    Mr. Pappas. Okay. Because this is job training, how will VA 
keep track of employment outcomes, and will VA take steps to 
hold CDL schools that have low outcomes accountable in some 
way?
    Mr. Ruhlman. Yes, we are focusing certainly on veteran 
outcomes. That is something that we have been working on over 
the past few years to get a better gauge of not only graduation 
but employment, income, and seeing really how long they are in 
the job as well. That is certainly something that we want to do 
with trucking programs as well.
    I know as far as actions to be taken if a threshold is not 
met, the authority to suspend or withdraw approval is generally 
held by our state approving agency partners which is why we 
would want to include them in the conversation but I think that 
we all have broad agreement that we only want to send veterans 
to schools that have good positive outcomes for veterans and we 
will continue to work with them as we roll this out have all 
the policies in place by March 30th, and then move out in the 
360 cadence as required by statute after that.
    Mr. Pappas. Okay. I really appreciate those comments. Thank 
you very much. Mr. Smith, if I could turn back to you.
    Committee staff traveled to Muskogee recently. As you know 
VA employee 1,500 individuals there that receive calls for 
education service. Wondering if you can build up on your 
testimony and give us the current performance of that site. How 
are we doing?
    Mr. Smith. Yes, sir. I can tell you that they are working 
diligently to process all of their fall enrollments. I think 
that their performance is really solid given the fact that they 
are working through a high number of Rudisill inspired claims.
    Mr. Pappas. Is everyone onsite and working in person or are 
some of these people remote?
    Mr. Smith. They are not remote, but they are still, they 
have until the 28th of April to return to the office.
    Mr. Pappas. Can you give us some more information because 
we have heard these concerns not just with this facility but 
with other VA facilities, just about the status of workspace. 
Is there enough workspace for 1,500 people to be in the office 
in person?
    Mr. Smith. I am not aware of the details in Muskogee, but I 
could certainly find that out for you?
    Mr. Pappas. Yes, we would like some more detail on that 
because if VA's requiring all individuals at this office to be 
in person and that could potentially result in a loss of 
productivity if we do not have adequate space for these folks 
or greater expense to be able to build out space. I am just 
wondering if VA would reconsider the decision for this 
particular facility, which seems to be operating at a high 
level of productivity that has made significant strides in 
answering calls and serving veterans?
    Mr. Smith. Understood, sir. I am certainly sure that the 
Acting Undersecretary and Secretary will consider that.
    Mr. Pappas. Well I appreciate that. I think as we move 
forward we do need to make sure that those who are experts in 
this work, who are front-line workers who talk to veterans day 
in, and day out have a voice in the process and that is one 
thing that I will continue to try to bring out through these 
hearings because I think too often we do not see those people. 
That can give us important feedback about how to improve 
processes and again how to reach that end veteran who we owe a 
great debt to. Thank you, Mr. Chairman. I yield back.
    Mr. Van Orden. The gentleman yields back. Mr. Barrett, the 
chair now recognizes you for 5 minutes.
    Mr. Barrett. Thank you, Mr. Chairman. Mr. Smith, Mr. 
Ruhlman, I listened to a lot of your testimony today. I brought 
this up in my meeting yesterday. I have been a Member of 
Congress now I think 38 days so there is a lot that I am 
absorbing and learning about, but I can tell you that one 
consistent denominator of all of this is that we have these 
systems, these Information Technology (IT) systems that are 
intended to be implemented that go exponentially overbudget, 
fail to deliver, veterans suffer as a result, the taxpayers do 
not get the value for the money that they have sent here. We 
sit as a panel on a committee, ask questions. We do not get 
specific answers and then the process, rinse and repeat every 
two years and the feeling is that the institutional members of 
the VA wait us out.
    There is a two term, you know the clock is running. The 
hourglass is going through, wait two more years, new faces will 
be up here, new people will be there. They will ask you the 
same questions and the process will repeat.
    I am the chairman of the technology modernization 
subcommittee. We have been looking at this electronic health 
record debacle that we have been facing. Now this digital G.I. 
Bill, these consistent problems with implementation of large-
scale IT projects. What can you tell us to restore, number 1, 
that confidence and trust?
    I mean I was looking at your biography and, you know, I am 
an Army grunt that got elected to Congress. I have been here 38 
days. I am not an expert in human capital utilization and 
financial stewardship as you are, so help me understand how it 
is that the common denominator of all of this is that we are 
always overbudget, under delivering, and as a result of that we 
have less to invest in the services that veterans have earned 
because we are spending money on these projects that fail to 
deliver.
    Mr. Smith. Yes, sir. I appreciate your comments. I agree 
with you that that is a lot of money. There is no doubt about 
that. We are--I think generally we need to be accountable to 
delivering these IT systems. We need to make sure----
    Mr. Barrett. I would say specifically, not generally.
    Mr. Smith. Yes. We need to make sure that we are 
identifying risk early, that we are setting scope, budget, and 
deliverable schedules that match the capability of the provider 
and that we hold them accountable as well to achieve those 
objectives?
    Mr. Barrett. Why does not that happen? Like it cannot just 
be that we should do these things. We do not live in Should 
Land. We live in Real World and that has not happened and it 
does not happen. It continues to not happen.
    You know, as they say the definition of insanity is doing 
the same thing over again and expecting a different result. I 
feel like we are there, and we have done that, and we expect a 
different result, and we expect accountability, and you promise 
accountability but then we never actually see that in action.
    Did we follow, for example, the GAO's advice about how to 
implement these projects? I know they have done a lot of work 
around large-scale IT projects, and it feel like VA continues 
to disregard their recommendations and advice. Was that 
followed in this, in this instance?
    Mr. Smith. I am not certain, sir, whether they followed 
those provisions. I have not had a chance to review all of 
that. I can tell you that the Inspector General (IG) did an 
audit of our deployment of DGIB and found that we needed to 
make some improvements in creating an integrated master 
schedule, communicating better with the vendor, and ensuring 
that we are identifying early and often areas that could cause 
critical failures. I do not believe that happened before, but 
that is my commitment to you that that is where I am going.
    Mr. Barrett. What actionable steps are we going to be able 
to have, so for example, when you come to my subcommittee down 
the road, what actionable steps are we going to have by then to 
ensure that we have moved the ball forward in this regard, that 
we are actually going to stick the landing and get this thing 
done in the timeline that was promised, that we are going to, 
you know, make a turnaround and get this done in a way that we 
will actual deliver results for veterans?
    Mr. Smith. We are working right now to address the findings 
or the recommendations of IG, but that is not enough. I want to 
really underscore the need to ensure that the culture of the 
individuals that are working on this project understand this 
and understand the expectation that we should be underbudget, 
not overbudget.
    Mr. Barrett. Would you say that you have the capacity to 
dismiss people who do not share that shared value with you?
    Mr. Smith. Yes, sir.
    Mr. Barrett. You do not need any further authority from 
Congress or the executive in order to do that?
    Mr. Smith. No, sir.
    Mr. Barrett. Okay. Thank you, Mr. Chairman, I yield back.
    Mr. Van Orden. The gentleman yields back. I just want to, 
we did have this hearing yesterday with Mr. Barrett, and do you 
now have a schedule for the digital G.I. Bill, do you have a 
schedule, like boom, we are doing it on this day?
    Mr. Smith. My understanding is that yes, we have developed 
an integrated master schedule.
    Mr. Van Orden. Do we have the integrated master schedule? 
Anybody? You got it? Do you have one? No. Okay. If you have one 
it would be great if you shared it with us because we have to 
fund that thing. If we do not have it, and you did, and we have 
been asking for a year or so for this, that is a problem. Now, 
Mr. Smith, I understand you have been in this job for a week. 
Believe it or not you are getting some grace from this 
committee and that stops after this committee hearing. The 
Veterans Affairs Administration is responsible for blowing 
through billions of dollars to say that, to that the VA. 
Administration spends money like a drunken sailor is not 
accurate, because when drunken sailor runs out of money he goes 
back to the ship. We are not the ship any more, pal. I hope 
that is really clear with everybody here. I believe that we 
have found common ground, Mr. Pappas. We are going to approach 
the executive branch, and I think it would be, it would make 
more sense if people returned to their previous disposition 
prior to COVID. If we have folks that were working remotely at 
this call center, it is an old grocery store, if they were not 
physically located in that building then I do not know how if 
they returned to work that that would be beneficial. They are, 
you said 500, like 500 desks short and IT equipment? We will 
take that for action because that just does not make sense to 
me. I think it is pretty clear. I mean we are now into the 
Trump administration, and I speak to you the same way I did 
with people under the Biden administration, and I just do not 
care what political party you are affiliated with. I do not 
care. This make sense, it appears to make sense and so we will 
take that for action, sir. Yes. Okay.
    Mr. Pappas, do you have any closing comments?
    Mr. Pappas. Just----
    Mr. Van Orden. Oh, sorry wait. The chair now recognizes the 
ranking member for any closing----
    Mr. Pappas. Thank you.
    Mr. Van Orden.--comments he may or may not have.
    Mr. Pappas. Thank you to our witnesses and look I have 
served on this committee for six years. This is my fourth term 
now. I have served during presidents, administrations of both 
parties and I think the commitment has to be the same to 
provide the oversight that Congress is required to do. At the 
end of the day I know that everyone around this table shares 
the same commitment to our nation's veterans. We may come at it 
from different perspectives from time to time, but I really 
join you in trying to seek that common ground and trying to 
seek better outcomes for veterans. At the end of the day that 
is how our success is going to be measured here on this 
subcommittee and on the full committee. I really look forward 
to the work ahead. Thank you.
    Mr. Van Orden. The gentleman yields back. I do not really 
have closing comments other than the fact that I would like to 
thank Ranking Member Pappas and everybody for participating in 
today's hearing. I ask unanimous consent that all members have 
5 legislative days to revised and extend their remarks and 
exclude extraneous materials, and without objection so ordered, 
this hearing is now adjourned.
    [Whereupon, at 11:24 a.m., the subcommittee was adjourned.]



      
      
      
      
      
      
      
      
      
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                         A  P  P  E  N  D  I  X

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                    Prepared Statement of Witnesses

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                    Prepared Statement of Ken Smith

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                       Statements for the Record

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           Prepared Statement of Defense Credit Union Council

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         Document for the Record Submitted by Derrick Van Orden

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