H.R. 980, Veterans Readiness and Employment Improvement Act of 2025

Bill Summary

H.R. 980 would expand the types of flight training available to veterans under the Veteran Readiness and Employment (VR&E) program and extend the reduction of pension payments from the Department of Veterans Affairs (VA) for veterans and survivors who reside in Medicaid nursing homes. The bill also would establish new outreach requirements for VA related to the VR&E program.

Estimated Federal Cost

The estimated budgetary effects of H.R. 980 are shown in Table 1. Over the 2025‑2035 period, the bill would change net direct spending by less than $500,000 and increase spending subject to appropriation by $137 million. The costs of the legislation fall within budget functions 550 (health) and 700 (veterans benefits and services).

Basis of Estimate

For this estimate, CBO assumes that H.R. 980 will be enacted in fiscal year 2025 and that provisions will take effect upon enactment. CBO also estimates that outlays will follow historical spending patterns for affected programs.

Direct Spending

H.R. 980 would expand the types of flight training available to veterans under the VR&E program. The bill also would extend the reduction of pension payments for veterans and survivors who reside in a Medicaid nursing home. The costs of both of those programs are paid from mandatory appropriations. In total, the bill would change net direct spending by less than $500,000 over the 2025‑2035 period (see Table 2).

Flight Training.Veterans with service-connected disabilities that negatively affect their ability to work can receive vocational rehabilitation services such as educational assistance, job training, skills counseling, and independent-living services. For veterans pursuing education or training programs, VA pays their tuition, fees, and related costs as well as housing allowances. Under current law, the benefit can be used for flight training that leads to a college degree; section 3 would allow veterans to use the benefit for flight training programs that do not lead to a degree. (Non-degree flight training programs are often provided by vocational pilot schools rather than colleges or universities; they issue licenses or certifications upon successful completion.)

Using information from VA on the number of students using the Post-9/11 GI Bill for non‑degree flight training, CBO expects that roughly 120 veterans who would not otherwise receive vocational rehabilitation would pursue such training under the bill each year, at an average annual cost of $18,300 per person. As a result, CBO estimates that enacting section 3 would increase direct spending by $24 million over the 2025-2035 period.

Pensions. Under current law, VA reduces pension payments to veterans and survivors who reside in Medicaid nursing homes to $90 per month. That required reduction expires November 30, 2031. Section 5 would extend that reduction for six months through May 31, 2032. CBO estimates that extending that requirement would reduce VA benefits by $10 million per month. (Those benefits are paid from mandatory appropriations and are therefore considered direct spending.) As a result of that reduction in beneficiaries’ income, Medicaid would pay more of the cost of their care, increasing spending for that program by $6 million per month. Thus, enacting section 5 would reduce net direct spending by $24 million over the 2025-2035 period.

Spending Subject to Appropriation

Section 4 would require VA to hold monthly informational sessions with school officials to answer questions concerning the VR&E program and to offer in-person or virtual briefings for veterans regarding VR&E services. CBO estimates that VA would need two trained outreach specialists at each of its 56 regional offices to provide those activities. Using information on VA personnel expenses, CBO estimates that implementing section 4 would increase spending subject to appropriation by $137 million over the 2025‑2035 period (see Table 3).

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 2.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting H.R. 980 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036.

CBO estimates that enacting H.R. 980 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Federal Costs:

Paul B.A. Holland (for Veteran Readiness and Employment program)
Logan Smith (for pensions)

Mandates: Grace Watson

Estimate Reviewed By

David Newman
Chief, Defense, International Affairs, and Veterans’ Affairs Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis