Joint Medical Facilities Fund Act of 2026

Bill Number

S. 3992

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Armed Forces and National Security

Status

Introduced

Latest Action

2026-04-29: Committee on Veterans' Affairs. Hearings held.

Last Updated

2026-05-21T11:03:37Z

AI-Generated Summary

Purpose

This legislation, titled the "Joint Medical Facilities Fund Act of 2026," aims to make permanent the authority for a shared fund between the Department of Defense (DoD) and the Department of Veterans Affairs (VA). The fund supports joint operations and funding for combined federal medical facilities that serve both active-duty military personnel and veterans, promoting efficient resource sharing for healthcare delivery.

Key Provisions

• Establishment of the Fund: Creates the "Joint Medical Facility Fund" on the books of the U.S. Treasury under the VA's administration. The fund's goal is to enable joint financing for designated shared medical facilities operated by both DoD and VA.

• Funding Sources:
• Transfers from DoD and VA budgets, allocated based on a joint methodology that accounts for each agency's specific missions, workloads, and costs in providing healthcare.
• Additional transfers from "medical care collections" (revenues from patient fees or recoveries) under existing laws, including:
• Section 1095 of Title 10 (DoD healthcare collections).
• Section 1729 of Title 38 (VA collections from third-party payers).
• The Federal Medical Care Recovery Act (recovering costs from liable third parties for care provided by the U.S.).

• Use of Funds:
• Supports operations of shared facilities, including purchases of capital equipment (e.g., medical devices), real property maintenance, and minor construction projects (those not needing separate congressional approval under specific laws).
• Explicitly allows DoD contributions to fund operations at the Captain James A. Lovell Federal Health Care Center in North Chicago, Illinois—a key shared site including VA and Navy facilities.
• Funds from collections are subject to VA-specific spending limits.
• Most funds remain available for one fiscal year after transfer; up to 2% can be carried over for two years.

• Administration and Oversight:
• Governed by an executive agreement between the DoD Secretary and VA Secretary, aligned with prior laws on joint facilities and including independent reviews of the funding methodology.
• Requires an integrated financial reconciliation process to track each agency's contributions, respecting differences in their accounting and financial systems.

• Reporting Requirement: Within 180 days of enactment, the DoD and VA Secretaries must jointly report to relevant congressional committees (Veterans' Affairs and Appropriations in both chambers) on potential additional facilities suitable for designation as shared sites.

Significant Changes to Existing Law

• Codification: Adds a new permanent section (1110c) to Chapter 55 of Title 10, U.S. Code, formalizing the fund's structure, which was previously authorized temporarily through annual defense authorization acts.
• Repeal of Temporary Authority: Eliminates Section 1704 of the National Defense Authorization Act for Fiscal Year 2010 (as amended), which provided short-term funding mechanisms for joint facilities, transitioning from ad-hoc to statutory permanence.
• No broader alterations to DoD or VA healthcare laws, but it builds on frameworks from the 2009 Duncan Hunter National Defense Authorization Act for joint operations.

Potential Impacts

• On Government Agencies: Streamlines budgeting and operations for DoD and VA at shared facilities, reducing administrative duplication and enabling better cost allocation. This could lower overall healthcare expenses through shared resources but requires ongoing coordination to implement the funding methodology effectively.
• On Citizens: Improves access to integrated healthcare for active-duty service members, retirees, and veterans at joint sites, potentially enhancing care quality and continuity (e.g., seamless transitions from military to VA treatment). No direct new benefits or costs to the general public.
• On International Relations: Minimal impact, as the bill focuses on domestic U.S. military and veterans' healthcare without foreign policy elements.

Main Stakeholders Affected

• Primary: Department of Defense (especially military healthcare providers) and Department of Veterans Affairs (including facility operators and administrators).
• Secondary: Service members, veterans, and their families who use shared medical facilities; congressional committees overseeing defense and veterans' budgets.
• Others: Treasury Department (for fund management) and third-party payers (e.g., insurance companies) contributing to medical collections.

Notable Legal, Constitutional, or Political Implications

• Legal: Provides a stable, codified framework for inter-agency funding, reducing reliance on temporary congressional approvals and minimizing legal uncertainties in joint operations. It upholds existing statutes on healthcare collections and construction limits without introducing conflicts.
• Constitutional: No apparent issues; aligns with Congress's enumerated powers over military affairs (Article I, Section 8) and spending authority, while respecting executive branch implementation through agreements.
• Political: Demonstrates bipartisan support (introduced by Senators Banks, Hirono, and Sullivan) for enhancing military-veteran healthcare integration, potentially setting a precedent for future DoD-VA collaborations. It promotes fiscal accountability via reviews and reporting, appealing to oversight-focused lawmakers, but could face scrutiny over fund carryover provisions or facility designations.

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

Sponsor

Sen. Banks, Jim [R-IN]

Cosponsors (4)

Sen. Hirono, Mazie K. [D-HI], Sen. Sullivan, Dan [R-AK], Sen. Duckworth, Tammy [D-IL], Sen. Durbin, Richard J. [D-IL]

Recent Actions

• 2026-04-29: Committee on Veterans' Affairs. Hearings held.
• 2026-03-04: Read twice and referred to the Committee on Veterans' Affairs.
• 2026-03-04: Introduced in Senate

Bill Versions

• Joint Medical Facilities Fund Act of 2026 — issued 2026-03-04 — PDF (7 pages)