Consolidating Veteran Employment Services for Improved Performance Act

Bill Number

H.R. 6861

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Armed Forces and National Security

Status

Introduced

Latest Action

2026-03-18: Committee Hearings Held

Last Updated

2025-12-20T09:05:49Z

AI-Generated Summary

Purpose

The legislation, titled the "Consolidating Veteran Employment Services for Improved Performance Act," aims to transfer specific veteran employment, training, and support programs from the Department of Labor (DOL) to the Department of Veterans Affairs (VA). This shift is intended to consolidate these services under the VA for better integration, efficiency, and improved outcomes for veterans transitioning to civilian life.

Key Provisions

• Transfer of Functions (Effective October 1, 2027): All responsibilities, personnel, assets, and liabilities related to the following DOL programs move to the VA Secretary:
• Job counseling, training, and placement services for veterans (under Chapter 41 of Title 38, U.S. Code).
• Federal government employment services for veterans (under Section 4214).
• Administration of employment and reemployment rights for uniformed service members (under Chapter 43).
• Homeless veterans' reintegration programs (under Chapter 20).
• Implementation Support:
• The VA must enter memorandums of agreement with the DOL and states to ease the transition.
• The President's annual budget requests starting in fiscal year 2028 must include funding for these transferred functions within the VA.
• Legal references in federal laws, orders, and documents automatically update to reflect the VA as the responsible agency.
• Continuity Measures (Savings Provisions): Existing contracts, grants, legal proceedings, lawsuits, and administrative actions related to these programs continue uninterrupted, with the VA substituted as the responsible party where needed. The Office of Management and Budget (OMB) Director handles any necessary determinations on transfers and incidental adjustments.
• New Organizational Structure in VA:
• Establishes a "Deputy Under Secretary for Veterans Economic Opportunity and Transition" to oversee policies for veteran employment, training, reemployment rights, and homeless reintegration programs.
• Consolidates the roles of "Disabled Veterans' Outreach Program Specialists" and "Local Veterans' Employment Representatives" into a single "Veteran Employment Specialist" position at the state level. These specialists focus on outreach to employers, job workshops, and priority services for disabled and disadvantaged veterans, with hiring preferences for qualified veterans.
• Training and Reporting:
• The VA must train these specialists.
• States report annually on hiring and pay for specialists; the VA reports to Congress, including an evaluation of standardizing pay with locality adjustments.
• Technical Amendments: Updates terminology throughout Title 38, U.S. Code (e.g., replacing "Secretary of Labor" with "Secretary" for VA contexts; removing outdated references to DOL roles). Strikes or revises sections to align with the transfer.
• Study and Report: The VA and DOL Secretaries must jointly study implementation within one year of enactment, covering costs, timelines, employee options, training needs, regulatory changes, and collaboration plans. The report to congressional Veterans' Affairs Committees includes recommendations, advantages/disadvantages, and required actions.

Significant Changes to Existing Law

• Shifts administrative authority for veteran-specific employment programs from DOL's Assistant Secretary for Veterans' Employment and Training to the new VA Deputy Under Secretary, centralizing these under the VA.
• Merges two separate state-level specialist roles (Disabled Veterans' Outreach Program and Local Veterans' Employment Representatives) into one "Veteran Employment Specialist" role, simplifying structure while maintaining priorities for disabled and disadvantaged veterans.
• Removes DOL-specific references in laws on veteran employment reporting, outreach, and homeless programs, redirecting them to VA oversight.
• Introduces new reporting requirements for state hiring of specialists and VA evaluation of pay equity, which did not exist before.
• Eliminates certain advisory roles or consultations involving DOL in VA processes (e.g., in rehabilitation committees or employment matching).

Potential Impacts

• On Government Agencies: The VA gains expanded responsibilities, potentially improving coordination of veteran services but requiring new infrastructure, training, and budget allocations (estimated costs to be detailed in the study). The DOL loses these programs, reducing its scope in veterans' affairs, though it retains unrelated labor functions. OMB facilitates smooth asset transfers, and states may need to adjust employment service systems via agreements.
• On Citizens: Veterans, particularly disabled, homeless, or economically disadvantaged ones, could benefit from more streamlined access to job counseling, training, placement, reemployment protections, and reintegration support under a single VA umbrella, potentially leading to faster service delivery and better outcomes. Uniformed service members' rights enforcement remains protected during transition.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. veteran programs.

Main Stakeholders Affected

• Veterans and Uniformed Service Members: Primary beneficiaries, including disabled, homeless, and transitioning individuals who rely on employment, training, and reemployment services.
• VA and DOL Employees: Personnel from DOL's Veterans' Employment and Training Service transfer to VA; options for non-transferring employees must be addressed in the implementation plan.
• State Governments: Responsible for employing and assigning veteran employment specialists; must collaborate via memorandums and adapt local employment systems.
• Federal Budget and Congress: Influences funding requests and oversight, with annual reports to Veterans' Affairs Committees.
• Employers: Affected indirectly through continued outreach for veteran hiring, potentially enhanced by consolidated VA efforts.

Notable Legal, Constitutional, or Political Implications

• Legal: Ensures seamless continuity of services and legal obligations (e.g., no abatement of ongoing lawsuits or contracts), minimizing disruptions. Broad definitions of "function" and "office" allow flexible transfers, with OMB authority to resolve ambiguities. Maintains enforcement of reemployment rights under Chapter 43, a key labor protection law.
• Constitutional: No apparent challenges; aligns with Congress's authority over federal agencies and spending (Article I), and does not infringe on individual rights.
• Political: Promotes efficiency by aligning veteran services with the VA's mission, potentially reducing inter-agency silos but sparking debate on departmental boundaries and resource allocation. The required joint study fosters bipartisan input, and emphasis on veteran hiring preferences reinforces political support for veteran priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Hamadeh, Abraham J. [R-AZ-8]

Recent Actions

• 2026-03-18: Committee Hearings Held
• 2025-12-18: Referred to the Committee on Veterans' Affairs, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-18: Referred to the Committee on Veterans' Affairs, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-18: Introduced in House
• 2025-12-18: Introduced in House

Bill Versions

• Consolidating Veteran Employment Services for Improved Performance Act — issued 2025-12-18 — PDF (29 pages)