GI Bill and All VA Programs Exempt from Sequestration

All programs administered by the Department of Veterans of Affairs, including the GI Bill, disability benefits and health care are exempt from sequestration.  The Office of Management and Budget (OMB) issued a letter stating that “all programs administered by the VA, including Veterans’ Medicare Care, are exempt from sequestration under Section 255(b).”

The following is a partial list of the many Veterans benefits programs that are exempt:

  • Post 9/11 GI Bill
  • Disability Compensation
  • VA Pensions
  • Vocational & Rehabilitation programs
  • Survivor Benefits
  • Home Loan Guaranty
  • Life Insurance
  • Traumatic Injury Insurance
  • VA Health Care Benefits including Veterans’ Medicare
  • Burial and Memorial Benefits
  • Veterans Retraining Assistance Program (VRAP)
  • Dependent’s Educational assistance
  • Transition Assistance

Additional Information:

The PAYGO Act (BBEDCA (2 U.S.C. 906)) specifically states the following (section 255 (b):

“(b) VETERAN PROGRAMS. – The following programs shall be exempt from reduction under any order under this part:

“All programs administered by the Department of Veteran Affairs .

“Special Benefits for Certain World War II Veterans (28-0401-1-1-701).”

At one point Veterans Medical Care did come into question due to a discrepancy in the language in the PAYGO Act.  The OMB subsequently concluded “that all programs administered by the VA, including Veterans’ Medical Care, are exempt from Sequestration under Section 255(b).”

Source: OMB memo response regarding the effect of a sequestration on programs administered by the VA.