2013 Government shutdown could hit millions of vets, VA chief says

October 9, 2013 (WASHINGTON) -- The government shutdown is having a big impact on the country's military. One problem-- funding the death benefit of military families-- has been solved. Another issue-- veterans benefits-- could turn into a massive headache later this month.

VA hospitals, like Jesse Brown on the West Side, are open during the government shutdown. But veterans are concerned that disability and other checks could be in jeopardy.

"I got a little money saved up, but a lot of guys here live from check to check, month to month, that's going to be the hard part," said Jesus Lebron, Vietnam Vet and Purple Heart recipient.

"I think very few of us are prepared for this - we just have to weather that storm," said David Brewster, Vietnam War veteran.

Vets are worried after the VA secretary testified on Capitol Hill Wednesday, warning politicians that the shutdown has slowed the process for disability claims-- and the impact could be widespread.

"It's over 5 million individuals who will be involved. This is serious. And I'm hoping the leadership of this committee will help us resolve it," said Eric Shinseki, VA secretary.

Shinseki broke down the numbers like this: 3.8 million vets will not receive disability compensation; 315,000 vets and 202,000 surviving spouses or dependents will see pension payments stopped. And because of that, vets are disappointed with elected officials.

"We put our butts on the line. I would like to see them put their butts on the line," said Leonard Soria, Vietnam War veteran.

In the meantime, the caskets of 4 fallen soldiers killed in Afghanistan arrived at Dover Air Force Base on Wednesday afternoon. Their families scrambled to raise money for funerals because they did not immediately get the $100,000 death gratuity because of the government shutdown.

"She sacrificed for the country, for her family. Why wouldn't that be taken care of? There is no excuse," said Alexandra DiBella, friend of Army 1st Lt. Jennifer Moreno.

Late this afternoon, Congress took action to fix that problem by approving the death gratuity. That impacts 26 families who have had loved ones die since the shutdown.

It's important to note, however, that all VA hospitals will remain open during the shutdown.

In all, more than $6 billion in benefits to about 5 million veterans and their families would be halted with an extended shutdown.

In some areas, like health care, there have been few adverse effects. Health care services are funded a year in advance. In others, such as reducing the claims backlog, Shinseki noted that the backlog has increased by 2,000 since the shutdown began Oct. 1.

At the end of September, the disability claims backlog stood at 418,500, a drop of about 31 percent over the previous six months.

Shinseki drew comparisons to the last shutdown in 1996, a time of sustained peace. The current shutdown occurs as the war in Afghanistan is in its 13th year and as hundreds of thousands have returned from Iraq. They are enrolling in VA care at higher rates than previous generations of veterans.

"They, along with the veterans of every preceding generation, will be harmed if the shutdown continues," Shinseki said.

Rep. Jeff Miller, the Republican chairman of the committee, questioned whether the Obama administration had been forthcoming enough in letting veterans know the impact of the shutdown. For example, VA's initial guidance did not mention any impact on payments to veterans or the processing of their benefits, although it was updated before the shutdown began.

Miller said a statement by President Barack Obama made it unclear about whether veterans would be able to continue getting counseling for PTSD. They can, at any VA health care facility.

"We've had some difficulty in the last couple of weeks getting good information about VA's contingency plan and the effects a lapse in appropriation would have on veterans," Miller said.

Shinseki said the VA has confronted "unprecedented legal and programmatic questions" and would do its best to keep lawmakers informed.

The House has passed legislation that would provide veterans disability, pension and other benefits if the shutdown is prolonged. But the White House has urged lawmakers not to take a piecemeal approach to continuing government services.

Shinseki made that case as well, saying it's not the best solution for veterans. He noted that even if the VA were fully funded, some services to veterans would suffer.

He said the Labor Department has largely shut down its VETS program, which provides employment and counseling services to veterans. The Small Business Administration has closed 10 centers focused on helping veterans create and operate businesses. And the Housing and Urban Development Department is not issuing vouchers to newly homeless vets, though those already receiving the housing aid will still get it.

White House spokesman Jay Carney said Wednesday that veterans had done their job and that it was time for Congress to do its job.

Mitch McConnell's spokesman, Don Stewart, noted that the senator pushed for a vote on House-passed legislation that would protect disability benefits, but Majority Leader Harry Reid objected.

"Maybe Carney should give him a call," Stewart said.

The shutdown has disrupted the generally bipartisan workings of the veterans committees in both chambers.

"Do you think Senator Reid doesn't like our veterans or the VA in particular?" Rep. Tim Huelskamp, R-Kan., asked Wednesday.

"Personally, I think he very highly values veterans," responded Shinseki, the only Cabinet member to testify before a congressional committee since the partial shutdown began. "As to why we are unable, Congress is unable to do its business, I will leave to the members to discuss."

Meanwhile, some Democrats said a GOP bill passed last week that would continue to fund disability payments didn't include money for such things as medical or prosthetic research and no money to maintain national cemeteries or various construction projects.

"I keep hearing the Senate, the Senate. I put the responsibility directly in the House. We could pass a clean (continuing resolution) and you wouldn't be sitting here," said Rep. Corrine Brown, D-Fla. "I don't blame the Senate. I thank God for the Senate."

Miller said there was bipartisan support in the House for legislation that would fund the entire Department of Veterans Affairs a full year in advance so it so it would not be subject to end-of-the-year brinkmanship. The VA had so far not endorsed the effort.

The Associated Press contributed to this report.

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