The Department of Veterans Affairs approved $1.2 billion in facility infrastructure improvements during the third quarter of fiscal year 2026, the agency announced July 20, bringing total obligated spending from its record $4.8 billion, nonrecurring maintenance budget to $2.3 billion for the year so far.
The fiscal 2026 non-recurring maintenance, or NRM, budget is the largest in the VA’s history. The funds go toward significant maintenance, replacements and upgrades at VA medical facilities nationwide, intended to maintain and improve both operational capability and health care delivery.
Where the Money Is Going
Of the $1.2 billion approved in the third quarter, $915 million is directed at repairing and upgrading outdated infrastructure systems inside VA medical facilities. Another $229 million is earmarked for maintenance and modernization of facility infrastructure specifically to support future Electronic Health Record, or EHR, system updates, continuing the VA’s ongoing rollout of its federal EHR platform at sites nationwide. The remaining $11 million covers major building upgrades including elevators, electrical systems and boiler plants.
A full list of the specific third-quarter projects is available through VA’s Veterans Health Administration at department.va.gov/vha.
“Under President Trump, VA is making historic improvements in healthcare accessibility, customer service and convenience,” VA Secretary Doug Collins said in the July announcement. “These record-breaking investments will enable us to continue building on that progress.”
How This Fits the Full-Year Picture
VA announced its $4.8 billion NRM budget for fiscal 2026 back in January, split across four categories, roughly:
- $2.8 billion for repairing and upgrading outdated infrastructure systems
- $1 billion tied to Electronic Health Record modernization support
- $500 million for major building upgrades such as elevators and boiler plants
- $500 million for broader medical center modernization
With $2.3 billion now obligated through three quarters, the agency is on pace to commit the majority of the budget before the fiscal year closes.
The pattern across the year has been fairly consistent: The largest share of each quarter’s spending goes toward repairing infrastructure that has been deferred for years at aging facilities, with EHR-related infrastructure work as the second-largest category. VA operates more than 1,200 facilities nationwide, many of which were built decades ago, and deferred maintenance has been a persistent challenge for the system.
The Broader Context VA Points To
VA’s July 20 announcement also cited a range of other operational metrics it says reflect improvement across the department this year. VA reports enrolling more than 200,000 new veterans in VA health care in 2026, opening 38 new VA health care facilities since Jan. 20, 2025, and reducing the backlog of veterans waiting for VA benefits by 74% since Jan. 20, 2025, after that backlog had increased 24% during the prior administration.
The agency also reported completing 82,083,918 direct care appointments in fiscal 2025, up 4.1% from fiscal 2024; and 59,989,662 community care appointments, up 12% year over year.
VA said it offered veterans more than 3 million appointments outside normal operating hours during the same period; and permanently housed 51,936 homeless veterans in fiscal 2025, the highest total in seven years.
What This Means for Veterans
For veterans using VA health care facilities, the practical effect of the infrastructure spending is gradual rather than immediate. Facility upgrades funded through NRM dollars typically take months to complete once a project is approved, and the improvements are distributed across many of VA’s more than 1,200 facilities rather than concentrated in any single location. Veterans interested in whether their local VA medical center has a funded project underway can check the third-quarter project list published by the Veterans Health Administration.
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