The Department of Veterans Affairs reportedly is hitting pause on its decision to cancel hundreds of contracts, just one day after VA Secretary Doug Collins touted the sweeping contract cancellations as part of the Department of Government Efficiency’s broad cuts to the federal infrastructure.
On Tuesday, Collins said in a video statement on X that the VA had found $2 billion worth of contracts that it would scrap so that the money can be spent on health care and benefits for veterans. Collins said that he was given a report stating that “millions of dollars” had been spent on hiring consultants to create PowerPoint slides and write meeting minutes, and on “coaching and training” and “executive support.” He did not specify the source of the report.
Collins also said there would be more contract cancellations coming. “Don’t feed the line of what D.C. is wanting to sell you,” he added. “We are putting money back to veterans’ health, back to veterans’ benefits.”
Collins’ post was reshared by billionaire Elon Musk, the de facto leader of DOGE, who wrote, “More tax dollars saved!”
But The Washington Post, citing internal VA documents, reported that the 875 contracts that the agency had intended to cancel included ones that help cover medical services, funding for cancer programs, medical staff recruitment and burial services for veterans.
Sen. Richard Blumenthal, D–Conn., criticized Collins’ announcement in a series of posts on X on Tuesday.
“These contracts allow VA to recruit & retain doctors, inform vets about their earned benefits, & perform safety inspections at VA medical facilities,” wrote Blumenthal, adding in part: “Many of these contracts were also used by VA to conduct oversight of its spending & ensure veterans programs operate efficiently for veterans.”
Then, on Wednesday, the VA said in an email to staff that it was “reconsidering previous guidance” and that “further contract reviews will be conducted to arrive at a new final decision,” according to the Post. The VA’s sudden pause follows a pattern of reversals from DOGE as it makes sweeping and clumsy cuts to federal funding and personnel. The VA’s sudden pause follows a pattern of reversals from DOGE as it makes sweeping and clumsy cuts to federal funding and personnel. DOGE’s slash-and-burn approach to the federal government has hindered agencies’ ability to serve the public and caused fear and confusion among employees. The White House has tried to rehire employees who were hastily fired, and DOGE — which is not an official government agency — exaggerated about big savings, figures that it later quietly deleted from its website. On Wednesday, NBC News reported that dozens of canceled contracts that DOGE touted not only saved no money, they were in fact negotiated deals meant to streamline the purchase of goods and services from already vetted contractors. Musk has also admitted that DOGE “accidentally canceled” funding for Ebola prevention programs, though he said it has since been restored — a claim that U.S. Agency for International Development officials have said is not quite true.
Clarissa-Jan Lim is a breaking news reporter for MS NOW. She was previously a senior reporter and editor at BuzzFeed News.
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