S 4400

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IN THE SENATE OF THE UNITED STATES

April 27, 2026

Mr. Moran (for himself and Mr. King) introduced the following bill; which was read twice and referred to the Committee on Veterans’ Affairs

A BILL

To amend title 38, United States Code, to require the Secretary of Veterans Affairs to develop a five-year human capital plan to support the mission and responsibilities of the Department of Veterans Affairs and to require the Secretary provide notice before carrying out a reduction in force, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Optimizing the Department of Veterans Affairs Workforce for Veterans Act of 2026” or the “Optimizing the VA Workforce for Veterans Act of 2026”.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS STRATEGIC HUMAN CAPITAL PLAN.

(a) In General.—Subchapter I of chapter 7 of title 38, United States Code, is amended by adding at the end the following new section: “Sec. 729. Strategic human capital plan

“(a) Plan Development.—(1) Not later than September 30, 2027, the Secretary shall develop and submit to the appropriate committees of Congress a five-year strategic human capital plan to support the mission and responsibilities of the Department, disaggregated by the Veterans Health Administration, the Veterans Benefits Administration, the National Cemetery Administration, and such other administrative components of the Department as the Secretary considers necessary to carry out the mission of the Department.

“(2) Not later than September 30, 2028, and each September 30 thereafter, the Secretary shall update the plan developed pursuant to paragraph (1) and extend the plan so that it covers the next period of five fiscal years commencing immediately after the date of the update.

“(b) Requirements.—(1) In developing the plan required by subsection (a), the Secretary shall take into account and document current and future projected demand for benefits and services administered by the Department, disaggregated for each component by facility location, facility type, region, administration, program office, the type of benefit or service, and such other categories as the Secretary determines appropriate.

“(2) The Secretary shall develop and update the plan under subsection (a) in consultation with veterans service organizations and such other stakeholders as the Secretary considers appropriate.

“(c) Contents.—The strategic human capital plan required by subsection (a) shall incorporate leading practices, including the following:

“(1) A workforce gap analysis, including an assessment of—

“(A) the staffing levels of each employee position needed to deliver high quality, accessible, and timely health care, benefits, and other services the Secretary considers appropriate, disaggregated by employee position, facility location, facility type, region, administration, program office, the type of benefit or service, and such other categories as the Secretary determines appropriate;

“(B) how the staffing levels described in subparagraph (A) align with industry best practices in each employee position for the anticipated demand for health care, benefits, and other services described in subsection (b); and

“(C) core competencies, as defined by the Secretary, and the staffing levels needed in each of these core competencies, disaggregated by employee position, facility location, facility type, region, administration, program office, the type of benefit or service and such other categories as the Secretary considers appropriate.

“(2) An implementation plan that includes the following:

“(A) Specific recruitment and retention goals to fulfill the staffing needs identified in the strategic human capital plan and the strategy of the Department to achieve such goals.

“(B) Specific strategies—

“(i) to improve workforce productivity using technological, organizational, behavioral, and such other approaches as the Secretary determines appropriate and productivity measures that are specific to employee positions and the benefits or services they provide; and

“(ii) that are informed by applicable industry best practices.

“(C) Specific strategies for recruiting and retaining veterans, spouses of veterans and members of the Armed Forces, family members of veterans and members of the Armed Forces, caregivers of veterans, and survivors of members of the Armed Forces as employees of the Department.

“(D) Specific goals to reduce the time to hire and onboard employees of the Department and a strategy to achieve such goals, including draft legislative language for any legislative action necessary to achieve such goals, without degradation of—

“(i) necessary background checks; and

“(ii) measures to protect Department customer and employee safety.

“(d) Annual Updates.—Not later than September 30, 2028, and September 30 of each of year thereafter, the Secretary shall submit to the appropriate committees of Congress an update on the implementation of the strategic human capital plan developed pursuant to subsection

(a), including an assessment by the Secretary of—

“(1) the progress of the Department in implementing the strategic human capital plan;

“(2) the progress of the Department in improving outcomes for veterans and their spouses, dependents, and caregivers through the delivery of high quality, accessible, and timely health care, benefits, and other services the Secretary considers appropriate using results based performance measures;

“(3) changes to projected demand for benefits and services based on new legislative action or other factors, disaggregated for each component by facility location, facility type, region, administration, program office and the type of benefit or service;

“(4) changes to the staffing levels included in the strategic human capital plan, including justifications for such changes, disaggregated by employee position, facility location, facility type, region, administration, program office, the type of benefit or service and such other categories as the Secretary determines appropriate;

“(5) any differentiation between the staffing levels included in the strategic human capital plan and those included in the budget justification materials most recently submitted to Congress in support of the budget of the Department (as submitted with the budget of the President under section 1105(a) of title 31); and

“(6) any differentiation from the Quadrennial Veterans Health Administration review required by section 7330C of this title.

“(e) Comptroller General of the United States Biennial Reviews.— Not later than 180 days after the date on which the human capital plan is submitted to the appropriate committees of Congress pursuant to subsection (a), and not less frequently than once every 2 years thereafter, the Comptroller General of the United States shall—

“(1) review the strategic human capital plan developed pursuant to subsection (a) and updated pursuant to subsection

(d), as the case may be, particularly with respect to the adequacy of the plan to fulfill the mission and responsibilities of the Department; and

“(2) submit to Congress the findings of the Comptroller General with respect to the review conducted pursuant to paragraph (1).

“(f) Definitions.—In this section:

“(1) The term ‘appropriate committees of Congress’ means—

“(A) the Committee on Veterans’ Affairs and the Committee on Appropriations of the Senate; and

“(B) the Committee on Veterans’ Affairs and the Committee on Appropriations of the House of Representatives.

“(2) The term ‘veterans service organization’ means any organization recognized by the Secretary under section 5902 of this title.”.

(b) Clerical Amendment.—The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 728 the following new item:

“729. Strategic human capital plan.”.

SEC. 3. DEPARTMENT OF VETERANS AFFAIRS REDUCTION IN FORCE NOTICE REQUIREMENT.

(a) In General.—Subchapter I of chapter 7 of title 38, United States Code, as amended by section 2(a), is further amended by inserting after section 729 the following new section: “Sec. 729A. Reductions in force

“(a) Notice Required.—In any case in which the Secretary plans to carry out a reduction in force, the Secretary shall, not later than the date that is 60 days before the date on which the Secretary commences carrying out such reduction in force, submit to the appropriate committees of Congress and the employees of the Department who will be affected by the reduction in force notice of the intention of the Secretary to carry out such reduction in force.

“(b) Limitation.—Notwithstanding any other provision of law, the Secretary may not carry out any reduction in force with respect to any employee who has not received the notice required under subsection (a) in the manner and within the time required by such subsection.

“(c) Contents.—Notice regarding plans to carry out a reduction in force submitted pursuant to subsection (a) shall include the following:

“(1) The total number of employees of the Department who will be affected by the reduction.

“(2) The offices of the Department that will be affected by the reduction, including, for each such office, the following:

“(A) The location of the office.

“(B) The program of the Department carried out by the office.

“(C) The total number of employees of the office before and after the reduction in force.

“(D) The services provided by the office.

“(3) A justification for the reduction in force, including how—

“(A) the new staffing levels resulting from the reduction in force align with the current and future projected demand for benefits and services administered by the Department, disaggregated for each component by facility location, facility type, region, administration, program office, the type of benefit or service, and such other categories as the Secretary determines appropriate; and

“(B) the reduction in force aligns with the strategic human capital plan required by section 729 of this title.

“(4) Budgetary effects of the reduction in force.

“(5) How the reduction in force will improve the benefits or services furnished by the Department.

“(d) Equal Content.—A notice regarding a reduction in force sent to an employee pursuant to subsection (a) shall be the same as the notice submitted under such subsection to Congress for the same reduction in force.

“(e) Administrative Remedy.—Notwithstanding section 2302(a)(2)(B) of title 5, the failure to comply with subsection (a) of this section shall be considered to be a personnel action that is prohibited under section 2302(b) of title 5, and the Merit Systems Protection Board shall stay or set aside the reduction in force action with respect to that employee until the Secretary has complied with subsection (a) of this section.

“(f) Definitions.—In this section:

“(1) The term ‘appropriate committees of Congress’ means—

“(A) the Committee on Veterans’ Affairs and the Committee on Appropriations of the Senate; and

“(B) the Committee on Veterans’ Affairs and the Committee on Appropriations of the House of Representatives.

“(2) The term ‘reduction in force’ means any action that would have required notice under part 351 of title 5, Code of Federal Regulations, as in effect on January 1, 2026.”.

(b) Clerical Amendment.—The table of sections at the beginning of chapter 7 of such title, as amended by section 2(b), is further amended by inserting after the item relating to section 729 the following new item:

“729A. Reductions in force.”.

SEC. 4. DETAILED PLANS AND JUSTIFICATIONS FOR REORGANIZATION OF OFFICES.

Section 510 of title 38, United States Code, is amended—

(1) in subsection (f)(2)—

(A) in subparagraph (D), by inserting “in improving outcomes for veterans and their spouses, dependents, and caregivers through the delivery of high quality, accessible, and timely health care, benefits, and other services the Secretary considers appropriate” before the period at the end; and

(B) by adding at the end the following new subparagraphs:

“(G) A description of how the Secretary will analyze success of the reorganization using results based performance metrics that are derived from the justification for the reorganization.

“(H) A risk mitigation plan that includes every identified possible risk from the reorganization and how the Secretary will mitigate each of the identified risks.”;

(2) by redesignating subsections (e) and (f) as subsections

(f) and (g), respectively; and

(3) by inserting after subsection (d) the following new subsection (e):

“(e) Not later than 180 days after the date on which the Secretary completes an administrative reorganization for which the Secretary submitted under subsection (b) a report containing a detailed plan and justification for the administrative reorganization, and not less frequently than once every 180 days thereafter until the date that is two years after the date of the completion of such administrative reorganization, the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a report assessing the administrative reorganization using the performance metrics described in the detailed plan and justification pursuant to subsection (g)(2)(G).”.

SEC. 5. RULE OF CONSTRUCTION.

Nothing in this Act or an amendment made by this Act shall be construed to have any effect on any provision of law in effect before the date of the enactment of this Act. <all>