January 2009 

Facts about the Department of Veterans Affairs

The Department of Veterans Affairs (VA) was established on March 15, 1989, succeeding the 

Veterans Administration. It is responsible for providing federal benefits to veterans and their 

families. Headed by the Secretary of Veterans Affairs, VA is the second-largest of the 15 

Cabinet departments and operates nationwide programs for health care, financial assistance and 

burial benefits. 

Of the 23.4 million veterans currently alive, nearly three-quarters served during a war or an 

official period of conflict. About a quarter of the nation's population is potentially eligible for 

VA benefits and services because they are veterans, family members or survivors of veterans. 

The responsibility to care for veterans, spouses, survivors and dependents can last a long time. 

Two children of Civil War veterans still draw VA benefits. About 184 children and widows of 

Spanish-American War veterans still receive VA compensation or pensions. 

VA's fiscal year 2009 spending is projected to be approximately $93.4 billion, including $40 

billion for health care, $46.9 billion for benefits, and $230 million for the national cemetery 

system. This is more than a 7 percent increase from the department’s $87.6 billion budget for 

fiscal year 2009. 

Compensation and Pension

Disability compensation is a payment to veterans who are disabled by injury or disease incurred 

or aggravated during active military service. Wartime veterans with low incomes who are 

permanently and totally disabled may be eligible for financial support through VA’s pension 

program. 

In fiscal year 2008, VA provided $38.9 billion in disability compensation, death compensation 

and pension to 3.7 million people. About 3.2 million veterans received disability compensation 

or pension from VA. In addition, about 554,700 spouses, children and parents of deceased 

veterans received VA benefits. Among them are 170,144 survivors of Vietnam-era veterans and 

235,000 survivors of World War II veterans. 

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Facts 2008 2/2/2/2 

Education and Training

Since 1944, when the first GI Bill began, more than 21.8 million veterans, service members and 

family members have received $83.6 billion in GI Bill benefits for education and training. The 

number of GI Bill recipients includes 7.8 million veterans from World War II, 2.4 million from 

the Korean War and 8.2 million post-Korean and Vietnam-era veterans, plus active duty 

personnel. 

Since the dependents program was enacted in 1956, VA also has assisted in the education of 

more than 784,000 dependents of veterans whose deaths or total disabilities were serviceconnected. Since the Vietnam-era, there have been approximately 2.7 million veterans, service 

members, reservists and National Guardsmen who have participated in the Veterans’ Educational 

Assistance Program (VEAP). VEAP was established in 1977; the Montgomery GI Bill, in 1985. 

In 2008, VA helped pay for the education or training of 336,527 veterans and active-duty 

personnel, 106,092 reservists and National Guardsmen and 80,079 survivors. 

Medical Care 

Perhaps the most visible of all VA benefits and services is health care. From 54 hospitals in 

1930, VA’s health care system now includes 153 medical centers, with at least one in each 

state, Puerto Rico and the District of Columbia. VA operates more than 1,400 sites of care, 

including 909 ambulatory care and community-based outpatient clinics, 135 nursing homes, 

47 residential rehabilitation treatment programs, 232 Veterans Centers and 108 

comprehensive home-care programs. VA health care facilities provide a broad spectrum of 

medical, surgical and rehabilitative care. 

Almost 5.5 million people received care in VA health care facilities in 2008. By the end of 

fiscal year 2008, 78 percent of all disabled and low-income veterans had enrolled with VA for 

health care; 65 percent of them were treated by VA. In 2008, VA inpatient facilities treated 

773,600 patients. VA’s outpatient clinics registered over 60 million visits. 

VA manages the largest medical education and health professions training program in the 

United States. VA facilities are affiliated with 107 medical schools, 55 dental schools and 

more than 1,200 other schools across the country. Each year, about 90,000 health 

professionals are trained in VA medical centers. More than half of the physicians practicing 

in the United States had some of their professional education in the VA health care system. 

VA’s medical system serves as a backup to the Defense Department during national 

emergencies and as a federal support organization during major disasters. 

In 1996, VA put its health care facilities under 21 networks that provide more medical 

services to more veterans and family members than at any time during VA’s long history. 

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Facts 2008 3/3/3/3 

VA has experienced unprecedented growth in the medical system workload over the past few 

years. The number of patients treated increased by 29 percent from 4.2 million in 2001 to 

nearly 5.5 million in 2008. 

To receive VA health care benefits most veterans must enroll. The VA health care system had 

nearly 7.9 million veterans who were enrolled as of October 2008. When they enroll, they are 

placed in priority groups or categories that help VA manage health care services within 

budgetary constraints and ensure quality care for those enrolled. 

Some veterans are exempted from having to enroll. People who do not have to enroll include 

veterans with a service-connected disability of 50 percent or more, veterans who were 

discharged from the military within one year but have not yet been rated for a VA disability 

benefit and veterans seeking care for only a service-connected disability. Veterans with 

service-connected disabilities receive priority access to care for hospitalization and outpatient 

care. Veterans of Operation Enduring Freedom and Operation Iraqi Freedom (OEF/OIF) are 

eligible to receive enhanced health care benefits for five years following their military 

separation date. 

Since 1979, VA’s Readjustment Counseling Service has operated Vet Centers, which provide 

psychological counseling for war-related trauma, community outreach, case management and 

referral activities, plus supportive social services to veterans and family members. There are 

232 Vet Centers. 

Since the first Vet Center opened, more than 2 million veterans have been helped. Every year, 

the Vet Centers serve more than 130,000 veterans and accommodate more than a million 

visits by veterans and family members. 

Vet Centers are open to any veteran who served in the military in a combat theater during 

wartime or anywhere during a period of armed hostilities. Vet Centers also provide trauma 

counseling to veterans who were sexually assaulted or harassed while on active duty, and 

bereavement counseling to the families of service members who die on active duty. 

VA provides health care and benefits to more than 100,000 homeless veterans each year. 

Though the proportion of veterans among the homeless is declining, VA continues to engage 

veterans in outreach, medical care, benefits assistance, transitional housing, and case 

management for veterans in permanent housing. VA has made more than 450 grants for 

transitional housing, service centers and vans for outreach and transportation to state and local 

governments, tribal governments, non-profit community and faith-based service providers. 

Indispensable to providing America’s veterans with quality medical care are nearly 127,000

active volunteers in VA’s Voluntary Service who donated more than 11 million hours in 2008 

to bring companionship and care to hospitalized veterans. These hours equate to 5,519 full 

time employee-equivalent (FTEE) positions. 

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Facts 2008 4/4/4/4 

Research

VA research focuses on areas of concern to veterans. VA research has earned an international 

reputation for excellence in areas such as aging, chronic disease, prosthetics and mental 

health. Studies conducted within VA help improve medical care not only for the veterans 

enrolled in VA's health care system, but for the nation at large. Because seven in 10 VA 

researchers are also clinicians, VA is uniquely positioned to translate research results into 

improved patient care. VA scientists and clinicians collaborate across many disciplines, 

resulting in a synergistic flow of inquiry, discovery and innovation between labs and clinics. 

VA investigators played key roles in developing the cardiac pacemaker, the CT scan, 

radioimmunoassay, and improvements in artificial limbs. The first liver transplant in the 

world was performed by a VA surgeon-researcher. VA clinical trials established the 

effectiveness of new treatments for tuberculosis, schizophrenia and high blood pressure. The 

“Seattle Foot” developed in VA has allowed people with amputations to run and jump. VA 

contributions to medical knowledge have won VA scientists many awards, including the 

Nobel Prize and the Lasker Award. 

 

Special VA “centers of excellence” conduct leading-edge research in areas of prime 

importance to veterans, such as neurotrauma, prosthetics, spinal cord injury, hearing and 

vision loss, alcoholism, stroke, and health care disparities. Through VA's Cooperative Studies 

Program, researchers conduct multicenter clinical trials to investigate the best therapy for 

various diseases affecting large numbers of veterans. Examples of current projects include 

testing whether intensive control of blood sugar can reduce cardiovascular problems for 

patients with type 2 diabetes; and comparing deep brain stimulation with other treatments for 

Parkinson's disease. 

 

Deployment health is a major priority for VA research. In addition to studies focused on 

recent veterans of operations Iraqi Freedom and Enduring Freedom, research continues on 

issues of special concern to veterans of earlier conflicts, such as the Gulf War and Vietnam 

War. 

Home Loan Assistance

From 1944, when VA began helping veterans purchase homes under the original GI Bill, 

through December 2007, more than 18.4 million VA home loan guaranties have been issued, 

with a total value of $967 billion. VA ended fiscal year 2008 with almost 2.1 million active 

home loans, reflecting amortized loans totaling $220.8 billion. 

In fiscal year 2007, VA guaranteed 179,000 loans valued at $36.1 billion. During fiscal year 

2008, VA’s programs for specially adapted housing helped 550 disabled veterans with grants 

totaling more than $24.6 million. 

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Facts 2008 5/5/5/5 

Insurance 

VA operates one of the largest life insurance programs in the world. VA directly administers 

six life insurance programs. In addition, VA supervises the Servicemembers' Group Life 

Insurance and the Veterans' Group Life Insurance programs. These programs provide $1.3 

trillion in insurance coverage to 4 million veterans, active-duty members, reservists and 

Guardsmembers, plus 3.1 million spouses and children. 

The Traumatic Injury Protection program under Servicemembers' Group Life Insurance 

provides coverage to active-duty personnel who sustain traumatic brain injuries that result in 

severe losses. Benefit amounts range from $25,000 to $100,000, depending on the loss. This 

program covers 2.4 million members. 

In 2007, the VA life insurance programs returned $354 million in dividends to 1 million 

veterans holding some of these VA life insurance policies, and paid an additional $1.1 billion 

in death claims. 

Vocational Rehabilitation 

VA's Vocational Rehabilitation and Employment program provides services to enable 

veterans with service-connected disabilities to achieve optimum independence in daily living, 

and, to the maximum extent feasible, obtain and maintain employment. During fiscal years 

1999 through 2008, 86,983 program participants achieved rehabilitation by obtaining and 

maintaining suitable employment. Additionally, during that same period, 21,108 participants 

achieved rehabilitation through maximum independence in daily living. 

VA’s National Cemeteries

In 1973, the Army transferred 82 national cemeteries to VA, which now manages them 

through its National Cemetery Administration. Currently, VA maintains 125 national 

cemeteries in 39 states and Puerto Rico. 

In 2008, VA national cemeteries conducted 103,275 interments. That number is likely to 

increase as VA opens new national cemeteries near large veteran populations. In 2008, VA 

provided 360,455 headstones or markers for veterans’ graves. Since taking over the veterans 

cemetery program in 1973, VA has provided more than 10.2 million headstones and markers. 

Between 1999 and 2008, VA opened 10 new national cemeteries: Gerald B. H. Solomon 

Saratoga National Cemetery near Albany, N.Y.; Abraham Lincoln National Cemetery near 

Chicago; Dallas-Fort Worth National Cemetery; Ohio Western Reserve National Cemetery 

near Cleveland; Fort Sill National Cemetery near Oklahoma City; the National Cemetery of 

the Alleghenies near Pittsburgh; Great Lakes National Cemetery near Detroit; Georgia 

National Cemetery, north of Atlanta; Sacramento National Cemetery in California; and South 

Florida National Cemetery in West Palm Beach, Fla. 

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Facts 2008 6/6/6/6 

This year, VA plans to open six new national cemeteries near Philadelphia; Jacksonville, Fla.; 

Sarasota, Fla.; Birmingham, Ala.; Greenville / Columbia, S.C.; and Bakersfield, Calif. By 

2009, these six new cemeteries will help VA serve 90 percent of veterans with an open 

national cemetery or state veterans cemetery within 75 miles of their homes. 

VA administers the Presidential Memorial Certificate program, which provides gold 

embossed certificates signed by the president to commemorate honorably discharged, 

deceased veterans. They are sent to the veteran's next of kin and loved ones. VA provided 

511,353 certificates in 2008. 

VA also administers the State Cemetery Grants Program, which encourages development of 

state veterans cemeteries. VA provides up to 100 percent of the funds to develop, expand or 

improve veterans cemeteries operated and maintained by the states. More than $344 million 

has been awarded for 72 operational veterans cemeteries in 38 states, Saipan and Guam. In 

2008, state cemeteries that received VA grants buried nearly 25,000 eligible veterans and 

family members. 

VA Employees

As of September 30, 2008, VA had 278,565 employees on the rolls. Among all departments 

and agencies of the federal government, only the Department of Defense has a larger work 

force. Of the total number of VA employees, 247,113 were in the Veterans Health 

Administration, 16,135 in the Veterans Benefits Administration, 1,549 in the National 

Cemetery System, 3,412 in the Veterans Canteen Service and 437 in the Revolving Supply 

Fund. The rest, 9,919 employees, are in various staff and facilities offices. 

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Facts 2008 7/7/7/7 

Chronological History of the Department of Veterans Affairs 

 

1930....The Veterans Administration created by Executive Order 5398, signed by President 

Herbert Hoover on July 21. At that time, there were 54 hospitals, 4.7 million living 

veterans and 31,600 employees. 

1933...The Board of Veterans Appeals established. 

1944....On June 22, President Franklin Roosevelt signed the "Servicemen's Readjustment Act 

of 1944" (Public Law 346, passed unanimously by the 78th Congress), more 

commonly known as “The GI Bill of Rights,” offering home loan and education 

benefits to veterans. 

1946....The Department of Medicine & Surgery established, succeeded in 1989 by the 

Veterans Health Services and Research Administration, renamed the Veterans Health 

Administration in 1991. 

1953....The Department of Veterans Benefits established, succeeded in 1989 by the Veterans 

Benefits Administration. 

1973....The National Cemetery System – renamed the National Cemetery Administration in 

1998 – created when Congress transferred 82 national cemeteries from the Army to 

VA. The Army kept Arlington National Cemetery and the U.S. Soldiers' and 

Airmen's Home National Cemetery in Washington, D.C. 

1988....Legislation to elevate VA to Cabinet status signed by President Reagan. 

1989....On March 15, VA became the 14th Department in the President's Cabinet. 

Secretaries of Veterans Affairs Administrators of Veterans Affairs 

Eric K. Shinseki 2009 – Present Edward J. Derwinski 1989 

James B. Peake 2007 - 2009 Thomas K. Turnage 1986 – 1989 

R. James Nicholson 2005 – 2007 Harry N. Walters 1982 – 1986 

Anthony J. Principi 2001 – 2005 Robert P. Nimmo 1981 – 1982 

Togo D. West Jr. 1998 – 2000 Max Cleland 1977 – 1981 

Jesse Brown 1993 – 1997 Richard L. Roudebush 1974 – 1977 

Edward J. Derwinski 1989 – 1992 Donald E. Johnson 1969 – 1974 

 William J. Driver 1965 – 1969 

 John S. Gleason 1961 – 1964 

 Sumner G. Whittier 1957 – 1961 

 Harvey V. Higley 1953 – 1957 

 Carl R. Gray 1948 – 1953 

 Omar Bradley 1945 – 1948 

 Frank T. Hines 1930 – 1945 

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