Reforming Veterans Affairs IT: GAO Urges Strategic Overhaul, Cites Billions at Stake
In testimony presented to the House Subcommittee on Technology Modernization, Carol Harris, Director of Information Technology and Cybersecurity at the Government Accountability Office (GAO), laid out the urgent need for strategic IT reform at the Department of Veterans Affairs (VA). The testimony, dated July 14, 2025, emphasizes that while the VA plans to spend approximately $7.3 billion on IT in fiscal year 2026, the department continues to face entrenched challenges that jeopardize its ability to deliver effective, efficient technology services for veterans.
At the heart of the issue is the VA’s historical difficulty in managing IT modernization projects. Despite multiple efforts over two decades, the department has struggled to replace its aging electronic health record (EHR) system. The current initiative, launched in 2020, was paused in 2023 due to serious performance issues and user complaints. Although VA has resumed plans to deploy the system in 2026, GAO’s March 2025 report reveals that nearly 1,800 configuration change requests remain unresolved and the overall cost could exceed $49.8 billion. Yet, the VA has not updated its cost and schedule estimates, making it impossible to fully evaluate the scope of the undertaking.
Compounding the issue is VA’s legacy financial system, which is nearly 30 years old and lacks integration with key acquisition systems. Past efforts to replace it have failed, but the current program, iFAMS, remains in progress. GAO has made repeated recommendations to improve cost estimation and project planning, none of which have been fully implemented.
The testimony also highlighted other inefficiencies in VA’s IT management, such as poorly tracked software licenses that could lead to unnecessary spending, incomplete strategic workforce planning in cybersecurity, and a failure to meet federal requirements for cloud computing procurement. The Office of Information Technology (OIT), which oversees these functions, has centralized authority but continues to underperform in key areas, raising concerns about its ability to manage a $3.5 billion EHR modernization push and other reforms promised in the FY 2026 budget.
GAO outlines twelve leading practices that agencies should adopt to execute meaningful reform. These include aligning reform goals with the agency’s mission, using data and stakeholder feedback to shape initiatives, addressing duplication and fragmentation, and engaging the workforce through strategic planning and performance management. The testimony emphasized that real change at the VA requires leadership accountability, clear performance metrics, and a commitment to implementing GAO’s past 26 recommendations, all of which remain open.
In sum, while the VA’s IT budget request for FY 2026 includes bold reform promises such as retiring outdated systems, expanding digital services, and reducing administrative costs, GAO urges caution. Without a robust implementation plan rooted in proven practices and supported by reliable data, the VA risks repeating past failures. As Carol Harris noted, success will depend not just on new investments, but on sustained leadership focus and a willingness to act on longstanding management deficiencies.
Disclaimer: This blog post summarizes the contents of GAO Report GAO-25-108627 and the testimony of Carol Harris before the House Subcommittee on Technology Modernization. It is for informational purposes only and does not constitute legal or professional advice. Accuracy is based on the source document and not independently verified.