Challenges Facing the Construction of New Veterans Homes

Challenges Facing the Construction of New Veterans Homes

The State Veterans Home Program is a joint venture between the U.S. Department of Veterans Affairs and the States to construct or acquire nursing home, domiciliary or adult day health care facilities. A state nursing home, domiciliary, or adult day care is owned and operated by the State.

The Veterans Administration may contribute in awake to 65 percent of the price of construction or acquisition of state nursing homes or domiciliary or for renovations to obtainable state homes.

In excess of the last five years, VA has awarded over $424 million in grants to the States for construction of or renovations to state veteran’s homes. That is 34 percent of all grants awarded since 1964.

The Veterans Administration Secretary approved the 2005 Priority List on September 23, 2004. The Priority List contained 131 projects from the various States and was valued at over $690 million. There were 81 projects, valued at $435 million, with the required 35% state matching funds -- meaning legislators have set aside the money -- and are eligible for an immediate VA grant awards. These are priority #1 grants and should be built as soon as possible. Unfortunately, there is not enough money to build these priority #1 grant facilities. The States were lucky to complete only 8 or 9 projects in 2005 nationwide instead of the 81 that were eligible.

The VA will commit to as many projects for which funds are available, but funding is woefully inadequate. The State Home Construction Grant Program 2005 budget was approved at $105 million. The President’s 2007 budget request is $85 million in grants for state construction programs. The 2007 budget proposal only represents about 12% of the projects on the priority list. At that amount, needed new facilities on the priority list may not be constructed until 10 or 20 years from now.

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