S. 2988 — VITAL Act of 2025

This section designates the Act as the “Veterans' Infrastructure and Transformation Act of 2025” (or “VITAL Act of 2025”) and sets forth the table of contents.

This section modifies VA's authority under 38 U.S.C. 8153 to acquire health-care resources without competitive procedures by (1) inserting "physical" before "space" in existing subparagraphs (A) and (B)(i) of subsection (a)(3); (2) adding new subparagraph (C) to authorize acquisition of physical space or common services from Department-affiliated institutions under section 7302 or other entities via contract, resource-sharing agreement, space-sharing agreement, or other agreement, without regard to competitive procedures or Department lease limitations if all obligations are funded through available appropriations or borne by the institution or entity; (3) striking subparagraph (E); (4) redesignating subparagraphs (C) and (D) as (D) and (E), with conforming updates to cross-references; and (5) adding definitions of commercial service (i.e., competitively offered service procured via firm-fixed-price contracts), common service (i.e., commercial service for maintaining physical space, such as maintenance, HVAC, or security), and physical space (i.e., buildings, portions of buildings, or parking facilities). (Thus, the changes enable more flexible sharing of space and services to optimize VA health-care resource utilization.)

This section authorizes the Secretary of Veterans Affairs to use commercial codes and standards instead of or in addition to federal codes and standards for constructing or altering Department of Veterans Affairs (VA) facilities. It requires the Secretary to conduct at least three pilot projects in each of FY2027 through FY2031 using commercial codes and standards instead of federal ones to lease or construct VA facilities and to submit a report to the Senate and House Veterans' Affairs Committees within 90 days after the end of each such fiscal year detailing use of the authority and any pilots initiated, ongoing, or completed that year. The section defines commercial codes and standards as those from the National Fire Protection Association, International Code Council, American Society for Testing and Materials, American Society of Civil Engineers, or the relevant state or local jurisdiction; and federal codes and standards as VA's Technical Information Library, Department of Defense Unified Facilities Criteria, or other federal agencies' building codes or standards.

This section revises consideration requirements for enhanced-use leases (EULs) of Department of Veterans Affairs (VA) real property by (1) requiring lease consideration to consist solely of cash at fair value as determined by the Secretary, except for exchanges of leased properties assessed to be of similar value; (2) authorizing EULs without consideration; (3) prohibiting the Secretary from waiving or postponing any lessee payment obligations, including monthly rent; (4) permitting EUL terms to authorize use of minor construction funds for capital contribution payments; and (5) requiring Office of Management and Budget review of each EUL before it takes effect. (EULs enable the VA to lease underutilized real property to public or private entities, with lessees typically providing consideration such as cash, space, or services to support VA missions.)

This section requires the Secretary of Veterans Affairs to carry out a pilot program under which the Secretary enters into at least one but not more than three enhanced-use leases (EULs) under 38 U.S.C. §8162 in locations the Secretary selects, allowing noncash consideration at fair value notwithstanding current EUL cash-rent requirements in §8162(b)(3), (5). (As background, EULs enable the Department of Veterans Affairs to lease underutilized real property under its jurisdiction to public or private entities for development that directly or indirectly benefits veterans (e.g., supportive housing or services), typically in exchange for fair market rental payments that fund VA construction or operations.) Permissible noncash consideration is limited to (1) title transfer of real property, (2) infrastructure improvements, (3) design services, or (4) construction services, provided any accepted facility is substantially complete within 10 years of lease execution (excluding commissioning and warranty services) and the lessee assumes full responsibility for associated maintenance, operations, and service costs for the lease term and any subsequent VA use unless explicitly appropriated. This section further authorizes use of amounts in the VA Capital Asset Fund for such EULs under 38 U.S.C. §8118(b)(3)(C) without regard to the limitation in §8104(a)(3)(A), subject to appropriations; requires annual reports to Congress within 90 days after each fiscal year end detailing fiscal impacts, budget justifications, funding sources, cost confirmations, and future cost mitigations; and prohibits any financial or operational obligations beyond available appropriations, with lease agreements requiring lessee-borne or appropriated costs for the full lifecycle. The pilot authorities sunset seven years after enactment, without affecting the validity of executed leases or accepted consideration if obligations remain subject to appropriations.

This section authorizes the Secretary of Veterans Affairs, subject to the availability of funds, to conduct feasibility studies evaluating the potential outleasing of existing VA medical facilities to generate resources—including in-kind consideration such as construction of new facilities at alternative locations—to meet veterans' health care needs. Each study must (1) assess financial, operational, and strategic impacts, including potential reinvestment of proceeds or in-kind contributions into new or modernized VA facilities; and (2) consider that all obligations under any resulting outleasing arrangement are funded through appropriations or borne by the partner entity for the arrangement's entire lifecycle. Not later than one year after conducting a study, the Secretary must submit to Congress a report detailing the study's findings, recommendations for outleasing arrangements, and a budget justification confirming that all costs are within appropriated funds or covered by the partner entity.

This section directs the Secretary of Veterans Affairs to submit to the Senate and House Committees on Veterans' Affairs, not later than one year after the date of enactment of this Act, a report summarizing a facility lifecycle strategy targeting modernization of Department of Veterans Affairs (VA) owned and leased facilities and infrastructure to mitigate systemic failures, veteran and staff safety risks, benefits delivery interruptions, and emergency repair funding needs. The report must cover known and projected requirements over at least 10 years for: (1) land acquisition; (2) operations and maintenance of the existing capital asset portfolio; (3) operations and maintenance of the planned future capital asset portfolio; (4) new construction, disaggregated by major construction, minor construction, and nonrecurring maintenance; (5) leasing; (6) alternative acquisition methods such as partnerships and donations; (7) activation of space; (8) disposal, reuse, and remediation; (9) facility lifecycle strategy process for planning, programming, delivery, management, and maintenance of current and future assets; (10) negative effects of unstable capital asset funding on planning, staffing, and execution; and (11) other matters, including legislative or administrative actions subject to appropriated funds. This section states that neither the provision nor the report creates or implies financial or operational obligations beyond the availability of appropriated funds.

This section authorizes the Secretary of Veterans Affairs, subject to the availability of appropriations, to contract with private entities for comprehensive construction project management services, including the provision of entire project teams led by a Secretary-designated official. Such services are treated as contracted services rather than individual personnel hires.

This section expands the pilot program on Department of Veterans Affairs (VA) acceptance of donations—previously limited to real property and improvements for medical facilities, outpatient services, or nursing home care under the Communities Helping Invest through Property and Improvements Needed for Veterans Act of 2016—to also include minor construction or nonrecurring maintenance projects of the VA. It makes conforming amendments to broaden statutory references from "property" to "donation" or "project" throughout the program's provisions on evaluation, use, reporting, and termination; and extends the program through December 16, 2031 (from December 16, 2026).

This section revises the reporting structure for the Director of Construction and Facilities Management in the Department of Veterans Affairs (VA) by requiring the Director to report to the Deputy Secretary, the Under Secretary for Health, and the Chief Acquisition Officer (previously, to the Deputy Secretary only). The section also establishes a new subsection (d) requiring all VA employees engaged in specified facilities-related activities—including planning, design, and construction (including major and minor medical facility projects); strategic capital investment planning; real property leasing (including major and minor medical facility leases); repair, maintenance, and operation; and related procurement and acquisition—to report directly to the Director. (Thus, the change centralizes supervision of VA facilities management personnel under the Director.)

This section directs the Secretary of Veterans Affairs, not later than one year after enactment, to (1) consolidate under the Director of Construction and Facilities Management the functions related to facilities planning, design, construction, leasing, maintenance, and procurement currently performed by the Veterans Benefits Administration (VBA), Veterans Health Administration (VHA), and National Cemetery Administration (NCA), as described in 38 U.S.C. 312A(c); (2) consolidate under the Director the employees of VBA, VHA, and NCA performing such functions, as described in new 38 U.S.C. 312A(d); and (3) establish, as part of VA's regional organizational structure, a regional structure for those employees reporting to the Director. (As background, 38 U.S.C. 312A establishes the Director as a career position reporting to the Deputy Secretary with responsibility for overseeing VA facilities and infrastructure.)

This section requires the Secretary of Veterans Affairs to organizationally consolidate, under the department's Chief Acquisition Officer (designated per 41 U.S.C. §1702), the acquisition, procurement and contracting, logistics, and chapter 81 administration (i.e., acquisition and procurement authorities) functions of the Veterans Benefits Administration, Veterans Health Administration, and National Cemetery Administration not later than one year after enactment. The section further directs the Secretary to establish a regional organizational structure for those consolidated functions—corresponding in part or whole to Veterans Integrated Service Networks boundaries (i.e., 18 regional healthcare networks)—that may include overarching or dedicated offices for the Veterans Benefits Administration or National Cemetery Administration. (1) Each region must be headed by a Regional Director of Acquisition, Logistics, and Construction—a career-reserved position (per 5 U.S.C. §3132(a)) reporting to the Chief Acquisition Officer and supervising the consolidated functions—who may be selected from current departmental employees performing those functions; and (2) each region must include a Regional Director of Construction and Leasing reporting to that regional director and supervising regional employees performing functions described in section 4(2) of this Act. The section specifies that the consolidation does not require physical relocation of employees.

This section directs the Secretary of Veterans Affairs to submit two reports to the Committees on Veterans’ Affairs of the Senate and House of Representatives. (1) Not later than 90 days after enactment, a report detailing how the Secretary will use the recruitment, relocation, retention, merit award, critical skills incentive, and student loan repayment authorities in 38 U.S.C. §706 to increase the size and performance of the Department’s acquisition workforce (i.e., personnel in the 1102 occupational series, as defined by the Office of Personnel Management). (2) Not later than 390 days after enactment, a report detailing implementation of sections 11 and 12.

This section prohibits the Secretary of Veterans Affairs from incurring financial or operational obligations—including costs for construction, leasing, maintenance, operations, or services—under this Act beyond funds appropriated by Congress and requires all agreements, contracts, or arrangements under the Act to include compliance provisions.