VITAL Act of 2025
The Veterans' Infrastructure and Transformation Act of 2025 (VITAL Act of 2025) would overhaul how the Department of Veterans Affairs (VA) plans, finances, and manages construction, leasing, and real estate across its major administrations. Key ideas include expanding the use of enhanced-use leases and noncash consideration (such as land transfers or infrastructure improvements) to upgrade VA facilities; allowing more use of commercial construction codes and standards; consolidating construction, leasing, and acquisition functions under a central VA leadership structure; and requiring strategic, long-range planning and regular reporting to Congress. The bill envisions faster modernization, potential new funding approaches, and tighter oversight, but it also introduces mechanisms that could shift how competitive procurement and long-term costs are managed. If enacted, the bill would create pilot programs, sunset provisions, and numerous reorganizations intended to streamline capital investments, improve maintenance and operations, and better align VA infrastructure with veterans’ needs while staying within the bounds of appropriated funds. It would expand the use of nontraditional real-estate transactions and private-sector expertise, potentially accelerating upgrades but also increasing the importance of careful budgeting, performance monitoring, and fiduciary controls.
Key Points
- 1Expanded space sharing and flexible arrangements: The VA’s authority to share health-care resources would be broadened to include physical space and common services, with the Secretary empowered to use contracts or space-sharing agreements that may bypass some competitive procedures if funded by the partner or appropriations, and without regard to certain lease limitations.
- 2Use of commercial codes and standards: The VA could apply commercial building codes and standards (e.g., NFPA, ICC, ASTM, ASCE) in addition to or instead of federal standards, with at least three pilot projects per year (2027–2031) to test these approaches and accompanying required reporting.
- 3Enhanced-use leases (EULs) and noncash consideration: The bill tightens and expands EULs, allowing cash or noncash consideration for leased or exchanged VA properties, with clear rules on what noncash items can be accepted (e.g., title transfers, infrastructure or design/construction services) and requiring that leases stay within appropriations. It also introduces a formal pilot program to evaluate noncash EULs (e.g., donations of property or services) with specific performance and lifecycle funding requirements, and a review by the Office of Management and Budget (OMB).
- 4Feasibility studies for outleasing facilities: The VA could study outleasing existing medical facilities to raise resources for reinvestment in modern facilities, with an emphasis on governing the lifecycle costs and ensuring appropriations or partner funding cover ongoing obligations.
- 5Strategic infrastructure planning: The VA must deliver a comprehensive 10+-year strategic plan for infrastructure and capital assets, outlining land needs, operations and maintenance, new construction, leasing, alternative acquisition methods, space activation, disposal, and lifecycle management, while noting that any actions depend on funding availability.
- 6Consolidation and restructuring: The Act would consolidate construction, leasing, and acquisition/logistics functions across the VA’s major administrations under a centralized Director of Construction and Facilities Management and a Chief Acquisition Officer, with regional structures and career-reserved positions to ensure continuity and professional leadership. It also permits contracting with private firms for project management to run entire teams.
- 7Donated facilities and expansion of the donation program: The donation/donor program for facilities would be expanded to include minor construction and nonrecurring maintenance projects, extending the program to 2031 and broadening the types of donations and related activities the VA can accept.
- 8Reporting and accountability: The VA would provide multiple, periodic Congress reports on recruitment/retention authorities, consolidation progress, and the status and performance of reorganized activities, with definitions for the acquisition workforce and the committees involved.
- 9Fiscal guardrails: No provision would authorize obligations beyond appropriations, and all agreements would include explicit protections ensuring lifecycle costs are funded and within the federal budget framework.