[House Report 119-97]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-97
======================================================================
COMMUNITIES HELPING INVEST THROUGH PROPERTY
AND IMPROVEMENTS NEEDED FOR VETERANS ACT OF
2025
------------
May 17, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
------------
Mr. Bost, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 217]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 217) to amend title 38, United States Code, to
make permanent the pilot program authorized by the Communities
Helping Invest through Property and Improvements Needed for
Veterans Act of 2016, and for other purposes, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Subcommittee Consideration....................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 5
Committee Correspondence
Committee Oversight Findings..................................... 5
Statement of General Performance Goals and Objectives............ 5
Earmarks and Tax and Tariff Benefits............................. 5
Committee Cost Estimate.......................................... 5
Budget Authority and Congressional Budget Office Estimate........ 5
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Statement on Duplication of Federal Programs..................... 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Communities Helping Invest through
Property and Improvements Needed for Veterans Act of 2025'' or the
``CHIP IN for Veterans Act of 2025''.
SEC. 2. EXPANDING AND EXTENDING A PILOT PROGRAM ON ACCEPTANCE BY THE
DEPARTMENT OF VETERANS AFFAIRS OF DONATED FACILITIES AND
RELATED IMPROVEMENTS.
(a) Expansion.--
(1) In general.--Section 2 of the Communities Helping Invest
through Property and Improvements Needed for Veterans Act of
2016 (Public Law 114-294; 38 U.S.C. 8103 note) is amended, in
subsection (a)(1)--
(A) in the matter preceding subparagraph (A), by
striking ``property''; and
(B) by adding at the end the following new
subparagraph:
``(C) A minor construction, or nonrecurring
maintenance, project of the Department.''.
(2) Conforming amendments.--Such section is further amended--
(A) in subsection (b)--
(i) in the heading, by striking ``of
Property'';
(ii) in the matter preceding paragraph (1),
by striking ``the donation of a property'' and
inserting ``a donation'';
(iii) in paragraph (1), by inserting ``or
project'' after ``property'' each place it
appears; and
(iv) in paragraph (2), by inserting
``project,'' after ``improvements,'';
(B) in subsection (c)--
(i) in paragraph (1)--
(I) in the matter preceding
subparagraph (A), by striking ``real
property and improvements donated under
the pilot program'' and inserting ``a
donation'';
(II) in subparagraph (A), by striking
``; or'' and inserting a semicolon;
(III) in subparagraph (B), by
striking the period at the end and
inserting ``; or''; and
(IV) by adding at the end the
following new subparagraph:
``(C) the performance of a minor construction, or
nonrecurring maintenance, project of the Department.'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking
``construction of the facility'' and
inserting ``donation'';
(II) in subparagraph (B), by
inserting ``maintaining,'' after
``altering,''; and
(III) in subparagraph (C), by
striking ``construction of the
facility'' and inserting ``donation'';
(C) in subsection (e)(1)--
(i) by inserting ``alter, maintain,'' after
``design,'' both places it appears;
(ii) in subparagraph (A)--
(I) by striking ``real property and
improvements donated'' and inserting
``a donation''; and
(II) by striking ``of the real
property and improvements''; and
(iii) in subparagraph (B)(ii)(I), by striking
``construction and donation of the real
property and improvements'' and inserting
``donation''; and
(D) in subsection (g)(1), by striking ``real property
and improvements donated'' and inserting ``donations''.
(b) Extension.--Such section is further amended, in subsection (i),
by striking ``December 16, 2026'' and inserting ``December 16, 2031''.
Purpose and Summary
H.R. 217, the ``Communities Helping Invest through Property
and Improvements Needed for Veterans Act of 2025'' or the
``CHIP IN for Veterans Act of 2025,'' was introduced by Rep.
Don Bacon of Nebraska on January 7, 2025. This bill, as
amended, would reauthorize a pilot program and clarify the
original intent of the program to allow the Department of
Veterans Affairs (VA) to accept donations of real property from
non-federal partners for the construction, improvement, or
renovation of VA medical facilities. The bill changes current
law to denote that eligible projects may include minor
construction and non-recurring maintenance, in addition to
major construction projects. These changes are intended to
expand participation in the CHIP IN program and accelerate the
delivery of modernized VA infrastructure for veterans across
the country.
Background and Need for Legislation
Section 1: Short Title
This Act may be cited as the ``Communities Helping Invest
through Property and Improvements Needed for Veterans Act of
2025'' or the ``CHIP IN for Veterans Act of 2025.''
Section 2: Expanding and Extending a Pilot Program on Acceptance by the
Department of Veterans Affairs of Donated Facilities and
Related Improvements
The CHIP IN for Veterans Act was originally enacted to
allow the Department of Veterans Affairs (VA) to accept
donations of real property--such as land, facility
construction, or improvements--from non-federal partners. The
intent was to expedite delivery of medical facilities by
leveraging philanthropic and private sector resources to
support VA's mission. However, implementation of the program
has been limited to just two projects since 2017.
The Committee acknowledges the importance of maintaining
federal control and oversight of VA construction projects. The
U.S. Government Accountability Office (GAO) has reported that
only two of the five authorized CHIP IN projects have moved
forward. According to GAO, stakeholder participation has been
constrained in part by VA's narrow interpretation that CHIP IN
may only be used for major construction projects (projects over
$30 million). This interpretation has discouraged potential
partners from pursuing projects considered `minor construction'
or `non-recurring maintenance,' even when such projects would
provide meaningful infrastructure improvements for veterans.
One example of a successful project under this program is
the Omaha VA Ambulatory Care Center. It was the first project
completed under the CHIP IN pilot program. The partnership
delivered the Omaha project ahead of schedule and nearly $40
million under VA's projected budget. This project demonstrated
that public-private partnerships can enhance VA's construction
process when implemented with flexibility and transparency. The
facility is a national model for how non-federal investment can
supplement VA's investment while reducing the cost for the
federal government.
To ensure this program can benefit more communities
nationwide, H.R. 217, as amended, would reauthorize the CHIP IN
pilot program for five years and make clear VA can enter
partnerships for minor construction and non-recurring
maintenance, in addition to major construction projects. These
updates would broaden the use of the program, particularly for
facilities that may not require large-scale new construction
but do need critical renovations or expansions to meet veteran
demand.
Hearings
On March 11, 2025, the Subcommittee on Health held a
legislative hearing on H.R. 217 and other bills pending before
the subcommittee.
The following witnesses testified:
The Honorable Jack Bergman, U.S. House of
Representatives, 1st Congressional District, Michigan;
The Honorable Greg Murphy, U.S. House of
Representatives, 3rd Congressional District, North
Carolina; The Honorable Steve Womack, U.S. House of
Representatives, 3rd Congressional District, Arkansas;
The Honorable Don Bacon, U.S. House of Representatives,
1st Congressional District, Nebraska; The Honorable
Sylvia Garcia, U.S. House of Representatives, 29th
Congressional District, Texas; The Honorable Lauren
Underwood, U.S. House of Representatives, 14th
Congressional District, Illinois; The Honorable Chris
Deluzio, U.S. House of Representatives, 17th
Congressional District, Pennsylvania; Dr. Thomas
O'Toole, Deputy Assistant Under Secretary for Health
for Clinical Services, Quality and Field Operations,
Veterans Health Administration, U.S. Department of
Veterans Affairs; Dr. Antoinette Shappell, Deputy
Assistant Under Secretary for Health for Patient
Services, Veterans Health Administration, U.S.
Department of Veterans Affairs; Dr. Thomas Emmendorfer,
Executive Director, Pharmacy Benefits Management,
Veterans Health Administration, U.S. Department of
Veterans Affairs; Dr. Jeffrey Gold, President,
University of Nebraska System; Ms. Sue Morris,
President, Veterans Trust; Mr. Brian Dempsey, Director
of Government Affairs, Wounded Warrior Project; Mr. Ed
Harries, President, National Association of State
Veterans Homes; Mr. Jon Retzer, Deputy National
Legislative Director, Disabled American Veterans.
The following individuals and organizations submitted
statements for the record:
Veterans Healthcare Policy Institute; Paralyzed
Veterans of America; American Federation of Government
Employees; Representative Murphy; Trajector Medical;
American Association for Marriage and Family Therapy.
Subcommittee Consideration
On March 25, 2025, the Subcommittee on Health met in an
open markup session, a quorum being present, to consider H.R.
217. Following a motion by Ranking Member Brownley, H.R. 217
was ordered favorably forwarded to the Full Committee on
Veterans' Affairs by voice vote.
Committee Consideration
On May 6, 2025, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 217, as
amended, to be reported favorably to the House of
Representatives by voice vote. During consideration of the
bill, the following amendment was considered:
An amendment in the nature of a substitute to H.R.
217 offered by Representative Tom Barrett of Michigan
was adopted by voice vote. The amendment in the nature
of a substitute would reauthorize the pilot program for
five years and clarify that VA may enter into
partnerships for minor construction and non-recurring
maintenance, in addition to major construction.
A motion by Ranking Member Takano to report H.R. 217, as
amended, favorably to the House of Representatives was agreed
to by voice vote.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, no recorded votes were taken on
amendments or in connection with ordering H.R. 217, as amended,
reported to the House.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives of H.R. 217, as amended, are to extend and
clarify VA's authority to enter into agreements with
philanthropic groups for VA major construction, minor
construction, and non-recurring maintenance projects for
another five years.
Earmarks and Tax and Tariff Benefits
H.R. 217, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
217, as amended, prepared by the Director of the Congressional
Budget Office.
Budget Authority and Congressional Budget Office
Cost Estimate
Pursuant to clause (3)(c)(3) of rule XIII of the Rules of
the House of Representatives, the following is the cost
estimate for H.R. 217, as amended, provided by the
Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 217 would expand and extend a program that authorizes
the Department of Veterans Affairs (VA) to accept donations of
real property and improvements from nonfederal entities. Under
the bill, VA also would be authorized to accept donations of
minor construction and nonrecurring maintenance projects to
support the development and upkeep of VA medical facilities.
Because those in-kind donations are property rather than
monetary contributions, they are not reflected in the federal
budget. Additionally, the bill would extend the program, which
expires in December 2026, by five years.
VA is authorized to accept real property donations and in-
kind support through other authorities, including enhanced-use
leases, which have sometimes resulted in implicit or explicit
commitments to make future payments. Those arrangements, when
they rely on future appropriations, constitute contract
authority and are classified as direct spending.
The authority for the program includes restrictions that
may prevent VA from making such commitments. Based on VA's
implementation of the program to date, CBO expects the
department is unlikely to enter arrangements that would create
future obligations or result in significant costs. Thus, CBO
estimates that enacting this bill would increase direct
spending by an insignificant amount.
The CBO staff contact for this estimate is Noah Callahan.
The estimate was reviewed by Christina Hawley Anthony, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Federal Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4), is inapplicable to H.R. 217,
as amended.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
217, as amended.
Applicability to Legislative Branch
The Committee finds that H.R. 217, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 217, as amended, establishes or reauthorizes a program
of the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Section-by-Section Analysis of the Legislation
Section 1: Short title
This section would establish the short title as the
``Communities Helping Invest through Property and Improvements
Needed for Veterans Act of 2025'' or the ``CHIP IN for Veterans
Act of 2025.''
Section 2: Expanding and extending a pilot program on acceptance by the
Department of Veterans Affairs of donated facilities and related
related improvements
Section 2(a) would clarify that VA may enter into
partnerships with philanthropic organizations for minor
construction and non-recurring maintenance projects, in
addition to major construction identified on VA's Strategic
Capital Investment Planning Process Project List.
Section 2(b) would extend the CHIP IN pilot program for
five years by striking ``December 16, 2026'' and inserting
``December 16, 2031.''
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
COMMUNITIES HELPING INVEST THROUGH PROPERTY
AND IMPROVEMENTS NEEDED FOR VETERANS ACT OF
2016
* * * * * * *
SEC. 2. PILOT PROGRAM ON ACCEPTANCE BY THE DEPARTMENT OF VETERANS
AFFAIRS OF DONATED FACILITIES AND RELATED IMPROVEMENTS.
(a) Pilot Program Authorized.--
(1) In general.--Notwithstanding sections 8103 and
8104 of title 38, United States Code, the Secretary of
Veterans Affairs may carry out a pilot program under
which the Secretary may accept donations of the
following [property] from entities described in
paragraph (2):
(A) Real property (including structures and
equipment associated therewith)--
(i) that includes a constructed
facility; or
(ii) to be used as the site of a
facility constructed by the entity.
(B) A facility to be constructed by the
entity on real property of the Department of
Veterans Affairs.
(C) A minor construction, or nonrecurring
maintenance, project of the Department.
(2) Entities described.--Entities described in this
paragraph are the following:
(A) A State or local authority.
(B) An organization that is described in
section 501(c)(3) of the Internal Revenue Code
of 1986 and is exempt from taxation under
section 501(a) of such Code.
(C) A limited liability corporation.
(D) A private entity.
(E) A donor or donor group.
(F) Any other non-Federal Government entity.
(3) Limitation.--The Secretary may accept not more
than five donations of real property and facility
improvements under the pilot program and as described
in this section.
(b) Conditions for Acceptance [of Property].--The Secretary
may accept [the donation of a property] a donation described in
subsection (a)(1) under the pilot program only if--
(1) the property or project is--
(A) a property or project with respect to
which funds have been appropriated for a
Department facility project or for which funds
are available from the Construction, Minor
Projects, or Construction, Major Projects
appropriations accounts; or
(B) a property or project identified as--
(i) meeting a need of the Department
as part of the long-range capital
planning process of the Department; and
(ii) the location for a Department
facility project that is included on
the Strategic Capital Investment
Planning process priority list in the
most recent budget submitted to
Congress by the President pursuant to
section 1105(a) of title 31, United
States Code; and
(2) an entity described in subsection (a)(2) has
entered into or is willing to enter into a formal
agreement with the Secretary in accordance with
subsection (c) under which the entity agrees to
independently donate the real property, improvements,
project, goods, or services, for the Department
facility project in an amount acceptable to the
Secretary and at no additional cost to the Federal
Government.
(c) Requirement To Enter Into an Agreement.--
(1) In general.--The Secretary may accept [real
property and improvements donated under the pilot
program] a donation by an entity described in
subsection (a)(2) only if the entity enters into a
formal agreement with the Secretary that provides for--
(A) the donation of real property and
improvements (including structures and
equipment associated therewith) that includes a
constructed facility[; or];
(B) the construction by the entity of a
facility on--
(i) real property and improvements of
the Department of Veterans Affairs; or
(ii) real property and improvements
donated to the Department by the
entity[.]; or
(C) the performance of a minor construction,
or nonrecurring maintenance, project of the
Department.
(2) Content of formal agreements.--With respect to an
entity described in subsection (a)(2) that seeks to
enter into a formal agreement under paragraph (1) of
this subsection that includes the construction by the
entity of a facility, the formal agreement shall
provide for the following:
(A) The entity shall conduct all necessary
environmental and historic preservation due
diligence, shall comply with all local zoning
requirements (except for studies and
consultations required of the Department under
Federal law), and shall obtain all permits
required in connection with the [construction
of the facility] donation.
(B) The entity shall use construction
standards required of the Department when
designing, repairing, altering, maintaining, or
building the facility, except to the extent the
Secretary determines otherwise, as permitted by
applicable law.
(C) The entity shall provide the real
property, improvements, goods, or services in a
manner described in subsection (b)(2)
sufficient to complete the [construction of the
facility] donation, at no additional cost to
the Federal Government.
(d) No Payment of Rent or Usage Fees.--The Secretary may not
pay rent, usage fees, or any other amounts to an entity
described in subsection (a)(2) or any other entity for the use
or occupancy of real property or improvements donated under
this section.
(e) Funding.--
(1) From department.--
(A) In general.--Except as otherwise provided
in this paragraph, the Secretary may not
provide funds to help the entity finance,
design, alter, maintain, or construct a
facility in connection with [real property and
improvements donated] a donation under the
pilot program by an entity described in
subsection (a)(2) that are in addition to the
funds appropriated for the facility or funds
already generally available in the
Construction, Minor Projects, or Construction,
Major Projects appropriations accounts as of
the date on which the Secretary and the entity
enter into a formal agreement under subsection
(c) for the donation [of the real property and
improvements].
(B) Unobligated amounts.--The Secretary may
provide additional funds to help an entity
described in subsection (a)(2) finance, design,
alter, maintain, or construct a facility in
connection with real property and improvements
to be donated under the pilot program and
proposed to be accepted by the Secretary under
subsection (b)(1)(B) if--
(i) the Secretary determines that
doing so is in the best interest of the
Department and consistent with the
mission of the Department; and
(ii) funding provided under this
subparagraph--
(I) is in addition to amounts
that have been appropriated for
the facility before the date on
which the Secretary and the
entity enter into a formal
agreement under subsection (c)
for the [construction and
donation of the real property
and improvements] donation; and
(II) is derived only from
amounts that--
(aa) are unobligated
balances available in
the Construction, Minor
Projects, or
Construction, Major
Projects appropriations
accounts of the
Department that--
(AA) are not
associated with
a specific
project; or
(BB) are
amounts that
are associated
with a specific
project, but
are unobligated
because they
are the result
of bid savings;
and
(bb) were
appropriated to such an
account before the date
described in subclause
(I).
(C) Escalation clauses.--
(i) In general.--The Secretary may
include an escalation clause in a
formal agreement under subsection (c)
that authorizes an escalation of not
more than an annual amount based on a
rate established in the formal
agreement and mutually agreed upon by
the Secretary and an entity to account
for inflation for an area if the
Secretary determines, after
consultation with the head of an
appropriate Federal entity that is not
part of the Department, that such
escalation is necessary and in the best
interest of the Department.
(ii) Use of existing amounts.--The
Secretary may obligate funds pursuant
to clause (i) in connection with a
formal agreement under subsection (c)
using amounts that--
(I) are unobligated balances
available in the Construction,
Minor Projects, or
Construction, Major Projects
appropriations accounts of the
Department that--
(aa) are not
associated with a
specific project; or
(bb) are amounts that
are associated with a
specific project, but
are unobligated because
they are the result of
bid savings; and
(II) were appropriated to
such an account before the date
on which the Secretary and the
entity entered into the formal
agreement.
(D) Availability.--Unobligated amounts shall
be available pursuant to subparagraphs (B) and
(C) only to the extent and in such amounts as
provided in advance in appropriations Acts
subsequent to the date of the enactment of this
subparagraph, subject to subparagraph (E).
(E) Limitation.--Unobligated amounts made
available pursuant to subparagraphs (B) and (C)
may not exceed 40 percent of the amount
appropriated for the facility before the date
on which the Secretary and the entity entered
into a formal agreement under subsection (c).
(F) Terms and conditions.--The Secretary
shall provide funds pursuant to this paragraph
under such terms, conditions, and schedule as
the Secretary determines appropriate.
(2) From entity.--An entity described in subsection
(a)(2) that is donating a facility constructed by the
entity under the pilot program shall be required,
pursuant to a formal agreement entered into under
subsection (c), to provide other funds in addition to
the amounts provided by the Department under paragraph
(1) that are needed to complete construction of the
facility.
(f) Application.--An entity described in subsection (a)(2)
that seeks to donate real property and improvements under the
pilot program shall submit to the Secretary an application to
address needs relating to facilities of the Department,
including health care needs, identified in the Construction and
Long-Range Capital Plan of the Department, at such time, in
such manner, and containing such information as the Secretary
may require.
(g) Information on Donations and Related Projects.--
(1) In general.--The Secretary shall include in the
budget submitted to Congress by the President pursuant
to section 1105(a) of title 31, United States Code,
information regarding [real property and improvements
donated] donations under the pilot program during the
year preceding the submittal of the budget and the
status of facility projects relating to that property.
(2) Elements.--Information submitted under paragraph
(1) shall provide a detailed status of donations of
real property and improvements conducted under the
pilot program and facility projects relating to that
property, including the percentage completion of the
donations and projects.
(h) Biennial Report of Comptroller General of the United
States.--Not less frequently than once every 2 years until the
termination date set forth in subsection (i), the Comptroller
General of the United States shall submit to Congress a report
on the donation agreements entered into under the pilot
program.
(i) Termination.--The authority for the Secretary to accept
donations under the pilot program shall terminate on [December
16, 2026] December 16, 2031.
(j) Rules of Construction.--
(1) Entering arrangements and agreements.--Nothing in
this section shall be construed as a limitation on the
authority of the Secretary to enter into other
arrangements or agreements that are authorized by law
and not inconsistent with this section.
(2) Treatment of assistance.--Nothing provided under
this section shall be treated as Federal financial
assistance as defined in section 200.40 of title 2,
Code of Federal Regulations, as in effect on February
21, 2021.
[all]