The Department of Veterans Affairs announced that its benefits claims backlog dropped below 70,000 for the first time since February 2020. This milestone represents a 74% reduction in the backlog since January 2025. VA Secretary Doug Collins said the progress demonstrates a commitment to faster decisions and better service for those who have served.
The department defines a claim as "backlogged" if it has been pending for more than 125 days. The average processing time for a claim reached a record low of 77.7 days in July 2026. Official reports indicate that the backlog previously peaked at approximately 264,717 claims in early 2025. This reduction is attributed to increased staffing and modernized digital processing systems.
Legislative Developments: Take Care of America’s Veterans Act Stalled
The U.S. House of Representatives stalled the Take Care of America’s Veterans Act (TCAVA) on July 16, 2026. House Speaker Mike Johnson pulled the bill from the floor following a heated debate. The decision came after a narrow procedural vote that signaled shaky support within the Republican conference. Speaker Johnson said the vote would be delayed for several weeks to address misinformation about the legislation.
The bill sought to combine more than 60 separate veteran-related measures into a single omnibus package. It included provisions for concurrent retirement pay and survivor benefits. However, a controversial funding mechanism drew significant criticism from veterans' organizations. The mechanism proposed reducing disability ratings for future tinnitus and sleep apnea claims to fund other expanded benefits.
Major veterans' groups, including the VFW and Disabled American Veterans, opposed the measure. They characterized the funding strategy as a benefit cut for future claimants. Opponents said the bill effectively traded one set of essential benefits for another. Supporters argued the VA already planned to restructure these ratings and that the bill utilized those savings for broader healthcare expansions.
VA and HHS Partner for Psychedelic Therapy Research
The Department of Veterans Affairs and the Department of Health and Human Services signed a memorandum of understanding on July 14, 2026. This agreement aims to increase research into psychedelic therapies for mental health issues. The research specifically targets Post-Traumatic Stress Disorder (PTSD) and other military-related conditions. VA researchers are currently involved in more than 20 clinical trials.
This partnership facilitates the sharing of data and resources between the two agencies. Official statements said the collaboration is intended to explore innovative treatments for conditions that have not responded to traditional therapies. The initiative focuses on the safety and efficacy of these treatments in a controlled clinical setting. The VA said it remains committed to finding science-based solutions for veteran mental health challenges.
GSA Schedule Updates: Focus on American-Made Products
The General Services Administration (GSA) issued a Request for Information (RFI) on July 14, 2026. The RFI seeks industry feedback on ways to promote American-made products on the GSA Advantage platform. This initiative follows Executive Order 14392, which focuses on ensuring truthful advertising for products claiming to be made in America. Comments from contractors and stakeholders are due by July 24, 2026.
The GSA is exploring two primary approaches to increase the visibility of domestic products. One approach involves a voluntary representation system where products meeting Buy American Act (BAA) standards would receive a specific icon. The second approach considers a new Special Item Number (SIN) exclusive to original equipment manufacturers (OEMs). GSA officials said these changes would help revitalize American manufacturing.
The RFI also suggests a search preference for BAA-compliant items. Buyers who choose a non-domestic product may be asked to complete a survey explaining their selection. This data is intended to help the GSA understand purchasing behaviors within the federal marketplace. Contractors must continue to certify the country of origin for all items listed on the GSA schedule.
Cherokee Federal Awarded Modernization Support BPA
Cherokee Federal was selected as the sole awardee for a significant GSA modernization contract on July 14, 2026. The company will support the GSA Office of Centralized Acquisition Services (OCAS) under a Blanket Purchase Agreement (BPA). The contract has a total ceiling value of $99 million. Cherokee Federal said it will provide technology and consulting services to improve operational efficiency.
The BPA scope includes strategic consulting, data governance, and process improvement. These services are intended to help GSA modernize systems that support the Multiple Award Schedule. The contract was procured as a single-award vehicle to allow for rapid advancement of modernization goals. GSA officials said the partnership would reduce friction in the federal acquisition process.
OASIS+ and SDVOSB Opportunities
The OASIS+ program remains a critical vehicle for a Service-Disabled Veteran-Owned Small Business (SDVOSB) seeking government contracts. The OASIS+ SDVOSB set-aside continues as a continuously open solicitation with rolling admissions. Amendment 0009 for the HUBZone solicitation was issued on July 7, 2026. This program allows the government to meet its small business contracting goals while accessing specialized services.
Continuous open enrollment ensures that qualified firms can join the vehicle at any time. This structure is intended to maintain a robust and diverse pool of contractors for federal agencies. The GSA said the OASIS+ program is designed to simplify the procurement of complex professional services. It provides a streamlined path for agencies to engage with certified SDVOSB firms.
CACI NSS Secures $308 Million VA Contract
CACI NSS, LLC received a six-year, $308 million contract to modernize the VA's financial management system. The award was made through the GSA Multiple Award Schedule on July 11, 2026. The project involves implementing the Integrated Financial and Asset Management System (iFAMS). This system is intended to replace legacy financial tools that have become difficult to maintain.
The modernization effort aims to improve financial transparency and accountability within the department. CACI said it would provide the technical expertise necessary to migrate complex data and workflows to the new platform. The contract represents a significant investment in the VA's administrative infrastructure. Federal officials said the update is necessary to ensure the efficient distribution of veteran benefits.
New Features for the VA Health and Benefits Mobile App
The VA Health and Benefits mobile app received several updates on July 17, 2026. These features include the ability for users to view lab results directly on their devices. The app also introduced tools for managing benefit overpayment debt. These updates are part of a broader effort to improve the veteran digital experience.
The mobile app currently serves more than 4.6 million veterans. It provides a centralized platform for managing appointments, messages, and claims. VA officials said the addition of lab results was one of the most requested features from users. The department said it will continue to update the app based on veteran feedback and technological advancements.
Summary of Current Developments
The middle of July 2026 has seen significant activity across the veterans affairs news landscape and the broader federal procurement sector. The reduction of the claims backlog remains a primary focus for the Department of Veterans Affairs. Meanwhile, legislative efforts to reform veteran benefits face ongoing challenges in the House of Representatives.
Contracting opportunities for SDVOSB firms remain steady through vehicles like OASIS+. The GSA continues to prioritize domestic manufacturing through new RFI initiatives and modernization contracts. These developments reflect a concerted effort to update government systems and improve service delivery for veterans and contractors alike.
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