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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2988 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2988
To bolster upgrades and infrastructure for lasting development at the
Department of Veterans Affairs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 8, 2025
Mr. Moran introduced the following bill; which was read twice and
referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To bolster upgrades and infrastructure for lasting development at the
Department of Veterans Affairs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans'
Infrastructure and Transformation Act of 2025'' or the ``VITAL Act of
2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Modification of authority for sharing of health-care resources
of Department of Veterans Affairs to
include flexible space utilization and
streamlined service agreements.
Sec. 3. Use of commercial construction and facilities code and
standards.
Sec. 4. Exchanges of real property via enhanced-use lease.
Sec. 5. Pilot program on authority of Secretary of Veterans Affairs to
enter into enhanced-use leases for noncash
consideration.
Sec. 6. Feasibility studies for outleasing facilities of Department of
Veterans Affairs.
Sec. 7. Report on strategic plan for infrastructure and capital assets
of Department of Veterans Affairs.
Sec. 8. Contracting for construction project management services.
Sec. 9. Expansion and extension of pilot program on acceptance by the
Department of Veterans Affairs of donated
facilities and related improvements.
Sec. 10. Reforming requirements and authorities of Director of
Construction and Facilities Management of
Department of Veterans Affairs.
Sec. 11. Consolidation of construction and leasing activities of
Department of Veterans Affairs.
Sec. 12. Consolidation of Department of Veterans Affairs acquisition,
procurement, and logistics.
Sec. 13. Reports to Congress.
Sec. 14. General limitation on obligations.
SEC. 2. MODIFICATION OF AUTHORITY FOR SHARING OF HEALTH-CARE RESOURCES
OF DEPARTMENT OF VETERANS AFFAIRS TO INCLUDE FLEXIBLE
SPACE UTILIZATION AND STREAMLINED SERVICE AGREEMENTS.
Section 8153 of title 38, United States Code, is amended--
(1) in subsection (a)(3)--
(A) in subparagraph (A), by inserting ``physical''
before ``space'';
(B) in subparagraph (B)(i), by inserting
``physical'' before ``space'';
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively;
(E) by inserting after subparagraph (B) the
following new subparagraph (C):
``(C) If the health-care resource required is physical space or
common services and is to be acquired from an institution affiliated
with the Department in accordance with section 7302 of this title or
another entity, the Secretary may make arrangements, by contract,
resource-sharing agreement, space-sharing agreement, or other form of
agreement, for the acquisition of the space or service--
``(i) without regard to any law or regulation (including
any Executive order, circular, or other administrative policy)
that would otherwise require the use of competitive procedures
for acquiring the resource; and
``(ii) if all obligations are funded through available
appropriations or borne by the institution or entity, without
regard to any limitations applicable to leases of the
Department.'';
(F) in subparagraph (D), as redesignated by
subparagraph (D) of this paragraph, by striking
``subparagraph (A) or (B)'' and inserting
``subparagraph (A), (B), or (C)''; and
(2) by adding at the end the following:
``(h) In this section:
``(1) The term `commercial service' means a service that is
offered and sold competitively in the commercial marketplace,
is performed under standard commercial terms and conditions,
and is procured using firm-fixed price contracts.
``(2) The term `common service' means a commercial service
necessary to maintain or operate physical space, including
maintenance, heating, ventilation, air conditioning,
electricity, energy, water, wastewater, landscaping, security,
laundry, or any other service as determined by the Secretary.
``(3) The term `physical space' means one or more
buildings, a portion of a building, or parking facilities.''.
SEC. 3. USE OF COMMERCIAL CONSTRUCTION AND FACILITIES CODE AND
STANDARDS.
(a) In General.--The Secretary of Veterans Affairs may use
commercial codes and standards instead of or in addition to Federal
codes and standards in the construction or alteration of facilities of
the Department of Veterans Affairs.
(b) Pilot Projects.--The Secretary shall undertake not fewer than 3
pilot projects during each of fiscal years 2027, 2028, 2029, 2030, and
2031 utilizing commercial codes and standards instead of Federal codes
and standards to lease or construct facilities of the Department.
(c) Reports.--The Secretary shall submit a report to the Committee
on Veterans' Affairs of the Senate and the Committee on Veterans'
Affairs of the House of Representatives not later than 90 days after
the end of each of fiscal years 2027, 2028, 2029, 2030, and 2031
detailing the use by the Secretary of the authority provided by
subsection (a) and conduct of each pilot project required by subsection
(b) that was initiated, ongoing, or completed during the fiscal year.
(d) Definitions.--In this section:
(1) The term ``commercial codes and standards'' means
building codes or standards of the following:
(A) The National Fire Protection Association.
(B) The International Code Council.
(C) The American Society for Testing and Materials.
(D) The American Society of Civil Engineers.
(E) The State or local jurisdiction in which the
facility of the Department for which the Secretary is
applying the authority in subsection (a) is located.
(2) The term ``Federal codes and standards'' means the
following:
(A) The Technical Information Library of the
Department.
(B) The Unified Facilities Criteria of the
Department of Defense.
(C) Building codes or standards of Federal agencies
other than the Department.
SEC. 4. EXCHANGES OF REAL PROPERTY VIA ENHANCED-USE LEASE.
Section 8162(b) of title 38, United States Code, is amended by
striking paragraphs (2) through (6) and inserting the following:
``(3)(A) For any enhanced-use lease entered into by the Secretary,
the lease consideration provided to the Secretary shall consist solely
of cash at fair value as determined by the Secretary, except in the
case of an exchange of leased properties assessed to be of similar
value.
``(B) The Secretary may enter into an enhanced-use lease
without receiving consideration.
``(C) The Secretary may not waive or postpone the
obligation of a lessee to pay any consideration under an
enhanced-use lease, including monthly rent.
``(4) The terms of an enhanced-use lease may provide for the
Secretary to use minor construction funds for capital contribution
payments.
``(5) The Office of Management and Budget shall review each
enhanced-use lease before the lease goes into effect.''.
SEC. 5. PILOT PROGRAM ON AUTHORITY OF SECRETARY OF VETERANS AFFAIRS TO
ENTER INTO ENHANCED-USE LEASES FOR NONCASH CONSIDERATION.
(a) Pilot Program Required.--The Secretary of Veterans Affairs
shall carry out a pilot program to assess the feasibility and
advisability of entering into enhanced-use leases for noncash
consideration.
(b) Enhanced-Use Leases.--Under the pilot program required by
subsection (a), the Secretary shall enter into at least one enhanced-
use lease, but not more than three enhanced-use leases, under section
8162 of title 38, United States Code.
(c) Locations.--The enhanced-use leases entered into under the
pilot program required by subsection (a) shall be in such locations as
the Secretary considers appropriate for purposes of the pilot program.
(d) Consideration.--
(1) In general.--Notwithstanding paragraphs (3)(A), (3)(B),
and (5) of section 8162(b) of such title and subject to the
availability of appropriations and the provisions of this
subsection, for an enhanced-use lease entered into by the
Secretary under the pilot program required by subsection (a),
the lease consideration provided to the Secretary may consist
of noncash consideration at fair value as determined by the
Secretary.
(2) Limitations.--Noncash consideration received for an
enhanced-use lease under the pilot program required by
subsection (a) may consist of only the following:
(A) Title transfer of real property.
(B) Infrastructure improvements.
(C) Design services.
(D) Construction services.
(3) Requirements.--The authority to accept consideration
described in paragraph (1) shall be subject to the following:
(A) Any facility accepted as noncash consideration
for an enhanced-use lease is substantially complete
within 10 years of entering into the enhanced-use
lease, excluding commissioning and warranty services.
(B) The partner entity assumes full responsibility
for all maintenance, operations, and service costs
associated with noncash consideration for the duration
of the enhanced-use lease and any subsequent use by the
Department, unless explicitly funded through
appropriations.
(e) Capital Asset Fund.--Notwithstanding section 8118(b)(3) of
title 38, United States Code, amounts in the Department of Veterans
Affairs Capital Asset Fund may be used for enhanced-use leases under
the pilot program required by subsection (a) for the purposes of
subparagraph (C) of such section, without reference to the amount
limitation in section 8104(a)(3)(A) of such title, if such use is
subject to the availability of appropriations.
(f) Fiscal Oversight and Reporting.--
(1) In general.--For each fiscal year, not later than 90
days after the last day of the fiscal year, the Secretary shall
submit to Congress a report on the enhanced-use leases entered
into under the pilot program required by subsection (a) that
were in effect in that fiscal year.
(2) Contents.--Each report submitted pursuant to paragraph
(1) shall include, for the fiscal year covered by the report,
the following:
(A) Details of the fiscal impact of each enhanced-
use lease entered into under the pilot program required
by subsection (a) that was in effect, including the
following:
(i) Comprehensive budget justification for
all obligations incurred.
(ii) The funding sources for such
obligations.
(iii) Confirmation that all associated
costs are within appropriated budgets.
(B) An assessment of any potential future costs and
mitigation strategies to ensure compliance with
discretionary funding.
(g) Limitation on Obligations.--No enhanced-use lease under the
pilot program required by subsection (a) shall impose a financial or
operational obligation on the Department beyond the availability of
appropriations, and any agreement regarding an enhanced-use lease shall
include a provision ensuring that maintenance, operations, or service
costs associated with noncash consideration is borne by the partner
entity or explicitly funded through appropriations for the entire
lifecycle of the enhanced-use lease or facility use.
(h) Sunset.--The authorities provided under this section shall
terminate on the date that is seven years after the date of the
enactment of this Act. Such termination shall not affect the validity
or terms of an enhanced-use lease entered into under this section,
consideration accepted under this section, or the availability of
amounts for an enhanced-use lease, provided that all obligations remain
subject to the availability of appropriations.
(i) Definition of Enhanced-Use Lease.--In this section, the term
``enhanced-use lease'' has the meaning given such term in section
8162(a)(1) of title 38, United States Code.
SEC. 6. FEASIBILITY STUDIES FOR OUTLEASING FACILITIES OF DEPARTMENT OF
VETERANS AFFAIRS.
(a) In General.--The Secretary of Veterans Affairs, subject to the
availability of funds for such purposes, may conduct feasibility
studies to evaluate the potential outleasing of existing medical
facilities of the Department of Veterans Affairs to generate resources,
including in-kind consideration such as the construction of new
facilities at alternative locations, to meet current and future health
care needs of veterans.
(b) Elements.--Each feasibility study conducted under subsection
(a) shall--
(1) assess the financial, operational, and strategic
impacts of outleasing medical facilities of the Department,
including the potential for reinvesting proceeds or in-kind
contributions into new or modernized facilities of the
Department; and
(2) consider that any resulting obligations in connection
with such outleasing shall be funded through appropriations or
borne by the partner entity for the entire lifecycle of the
outleasing arrangement.
(c) Report.--Not later than one year after conducting any
feasibility study under subsection (a), the Secretary shall submit to
Congress a report detailing--
(1) the findings of the Secretary with respect to such
study;
(2) the recommendations of the Secretary for potential
outleasing arrangements pursuant to such study; and
(3) a budget justification confirming that all costs for
such arrangements are within appropriated funds or covered by
the partner entity.
SEC. 7. REPORT ON STRATEGIC PLAN FOR INFRASTRUCTURE AND CAPITAL ASSETS
OF DEPARTMENT OF VETERANS AFFAIRS.
(a) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall submit
to the Committee on Veterans' Affairs of the Senate and the Committee
on Veterans' Affairs of the House of Representatives a report on the
strategic plan for infrastructure and capital assets of the Department
of Veterans Affairs, which summarizes a facility lifecycle strategy
targeting modernization of owned and leased facilities and
infrastructure required to mitigate increasing systemic failures,
veteran and staff safety, benefits delivery interruptions, and funding
associated to address emergency repairs.
(b) Elements.--The report required by subsection (a) shall cover
known and projected requirements over a period of not less than 10
years for the following:
(1) Land acquisition.
(2) Operations and maintenance of facilities of the
existing capital asset portfolio of the Department.
(3) Operations and maintenance of the planned future
capital asset portfolio of the Department.
(4) New construction, disaggregated by type of new
construction, including the following types of construction:
(A) Major construction.
(B) Minor construction.
(C) 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 supporting the
planning, programming delivery, management, and maintenance of
the current and future capital asset portfolio of the
Department.
(10) A discussion of the negative effect of the lack of
stable and predictable capital asset funding on the ability of
the Department to plan, staff, and execute effective capital
asset management.
(11) Such other matters as the Secretary considers
appropriate, including with respect to legislative or
administrative action, provided such actions are subject to the
availability of appropriated funds.
(c) Rule of Construction.--Nothing in this section or a report
submitted under this section shall be construed to create or imply any
financial or operational obligation beyond the availability of
appropriated funds.
SEC. 8. CONTRACTING FOR CONSTRUCTION PROJECT MANAGEMENT SERVICES.
Subject to the availability of appropriations, the Secretary of
Veterans Affairs may contract with private entities for comprehensive
construction project management services, including the provision of
entire project teams. Such teams shall be led by an official designated
by the Secretary, and the services shall be treated as a contracted
service rather than individual personnel hires.
SEC. 9. EXPANSION AND EXTENSION OF PILOT PROGRAM ON ACCEPTANCE BY THE
DEPARTMENT OF VETERANS AFFAIRS OF DONATED FACILITIES AND
RELATED IMPROVEMENTS.
(a) Expansion.--
(1) In general.--Subsection (a)(1) of 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--
(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)--
(I) by inserting ``or project''
after ``property'' each place it
appears; and
(II) in subparagraph (B)(ii), by
inserting ``or the five-year
development plan of the Department''
after ``priority list''; 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)(ii), 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.'';
and
(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) in subparagraph (A)--
(I) by inserting ``alter,
maintain,'' after ``design,'';
(II) by striking ``real property
and improvements donated'' and
inserting ``a donation''; and
(III) by striking ``of the real
property and improvements''; and
(ii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by inserting ``alter, maintain,''
after ``design,''; and
(II) in clause (ii)(I), by striking
``construction and donation of the real
property and improvements'' and
inserting ``donation''; and
(D) in subsection (g)--
(i) in paragraph (1)--
(I) by striking ``real property and
improvements donated'' and inserting
``donations''; and
(II) by striking ``that property''
and inserting ``that donation''; and
(ii) in paragraph (2)--
(I) by striking ``of real property
and improvements conducted''; and
(II) by striking ``that property''
and inserting ``those donations''.
(b) Extension.--Such section is further amended, in subsection (i),
by striking ``December 16, 2026'' and inserting ``December 16, 2031''.
SEC. 10. REFORMING REQUIREMENTS AND AUTHORITIES OF DIRECTOR OF
CONSTRUCTION AND FACILITIES MANAGEMENT OF DEPARTMENT OF
VETERANS AFFAIRS.
Section 312A of title 38, United States Code, is amended--
(1) in subsection (a)(4), by inserting ``, the Under
Secretary for Health, and the Chief Acquisition Officer'' after
``Deputy Secretary''; and
(2) by adding at the end the following new subsection:
``(d) Supervision of Employees.--(1) All employees of the
Department engaged in the following activities shall report to the
Director of Construction and Facilities Management:
``(A) Planning, design, and construction of facilities and
infrastructure of the Department, including major medical
facility projects and minor medical facility projects.
``(B) Developing and updating short-range and long-range
strategic capital investment strategies and plans of the
Department.
``(C) Leasing of real property by the Department, including
short-term, long-term, major medical facility leases, and minor
medical facility leases.
``(D) Repair, maintenance, and operation of facilities of
the Department, including custodial services, building
management and administration, and maintenance of roads,
grounds, and infrastructure.
``(E) Procurement and acquisition of major medical facility
projects, minor medical facility projects, major medical
facility leases, minor medical facility leases, operation,
design, furnishing, and supplies and equipment.
``(2) In this subsection:
``(A) The term `major medical facility lease' has the
meaning given such term in section 8104(a)(3) of this title.
``(B) The term `major medical facility project' has the
meaning given such term in section 8104(a)(3) of this title.
``(C) The term `minor medical facility project' means a
project for the construction, alteration, or acquisition of a
medical facility that is not a major medical facility project.
``(D) The term `minor medical facility lease' means a lease
for space for uses as a new medical facility that is not a
major medical facility lease.''.
SEC. 11. CONSOLIDATION OF CONSTRUCTION AND LEASING ACTIVITIES OF
DEPARTMENT OF VETERANS AFFAIRS.
Not later than 1 year after the date of the enactment of this Act,
the Secretary of Veterans Affairs shall--
(1) consolidate the functions of the Veterans Benefits
Administration, the Veterans Health Administration, and the
National Cemetery Administration described in subsection (c) of
section 312A of title 38, United States Code, under the
Director of Construction and Facilities Management;
(2) consolidate the employees of the Veterans Benefits
Administration, the Veterans Health Administration, and the
National Cemetery Administration described in subsection (d) of
such section, as added by section 3, under the Director of
Construction and Facilities Management; and
(3) as a component of the regional organizational structure
described in section 5(b), establish a regional organizational
structure for the employees described in paragraph (2)
reporting to the Director of Construction and Facilities
Management.
SEC. 12. CONSOLIDATION OF DEPARTMENT OF VETERANS AFFAIRS ACQUISITION,
PROCUREMENT, AND LOGISTICS.
(a) Organizational Consolidation.--Not later than 1 year after the
date of the enactment of this Act, the Secretary of Veterans Affairs
shall organizationally consolidate under the Chief Acquisition Officer
of the Department of Veterans Affairs (designated in accordance with
section 1702 of title 41, United States Code) the functions of the
Veterans Benefits Administration, the Veterans Health Administration,
and the National Cemetery Administration relating to--
(1) acquisition;
(2) procurement and contracting;
(3) logistics; and
(4) the administration of chapter 81 of title 38, United
States Code.
(b) Regional Organizational Structure.--
(1) Establishment required.--The Secretary shall establish
a regional organizational structure for the employees
performing the functions described in subsection (a) reporting
to the Chief Acquisition Officer of the Department.
(2) Requirements.--The regional organizational structure
established pursuant to paragraph (1) shall--
(A) correspond in part or in whole to the
boundaries of the Veterans Integrated Service Networks
of the Veterans Health Administration;
(B) may include overarching or constituent
organizational structures; and
(C) may include dedicated offices for the Veterans
Benefits Administration or National Cemetery
Administration.
(3) Regional directors.--
(A) Regional directors of acquisition, logistics,
and construction.--
(i) In general.--The Secretary shall ensure
that each region within the organizational
structure established pursuant to paragraph (1)
is headed by a regional director of
acquisition, logistics, and construction
reporting to the Chief Acquisition Officer of
the Department responsible for supervising the
functions described in (a).
(ii) Career reserved positions.--Each
regional director described in clause (i) shall
be a career reserved position, as such term is
defined in section 3132(a) of title 5, United
States Code.
(iii) Selection.--Regional directors
described in clause (i) may be selected from
among current employees of the Department
performing functions described in subsection
(a).
(B) Regional directors of construction and
leasing.--The Secretary shall ensure that each region
within the organizational structure established
pursuant to paragraph (1) includes a regional director
of construction and leasing who--
(i) reports to the regional director of
acquisition, logistics, and construction
heading the region pursuant to subparagraph
(A); and
(ii) is responsible for supervising the
employees for the region described in section
4(2).
(c) Relocation.--Subsection (a) shall not be construed to require
the physical relocation of employees of the Department.
SEC. 13. REPORTS TO CONGRESS.
(a) Report on Use of Additional Authorities Relating to Recruitment
and Retention of Personnel.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs shall
submit to the appropriate committees of Congress a report detailing how
the Secretary will use the authorities of section 706 of title 38,
United States Code, to increase the size and performance of the
acquisition workforce of the Department of Veterans Affairs.
(b) Report on Consolidation Activities.--Not later than 390 days
after the date of the enactment of this Act, the Secretary shall submit
to the appropriate committees of Congress a report detailing how
sections 11 and 12 were implemented.
(c) Definitions.--In this section:
(1) Acquisition workforce of the department.--The term
``acquisition workforce of the Department of Veterans Affairs''
means personnel of the Department of Veterans Affairs occupying
positions within the 1102 occupational series as defined by the
Director of the Office of Personnel Management.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means the Committee on
Veterans' Affairs of the Senate and the Committee on Veterans'
Affairs of the House of Representatives.
SEC. 14. GENERAL LIMITATION ON OBLIGATIONS.
No provision of this Act shall authorize or permit the Secretary of
Veterans Affairs to incur financial or operational obligations,
including but costs for construction, leasing, maintenance, operations,
or services, beyond the availability of funds appropriated by Congress.
All agreements, contracts, or arrangements entered into under this Act
shall include provisions ensuring compliance with this limitation.
<all>
Introduced in Senate
Read twice and referred to the Committee on Veterans' Affairs.
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