What You Should Know
- The Record: The Department of Veterans Affairs (VA) announced a $4.8B investment for FY 2026—the largest single-year commitment to Non-Recurring Maintenance (NRM) in the agency’s history.
- The Tech Angle: While much of the funding goes to physical repairs, a massive $1B is specifically earmarked for the maintenance and modernization of electronic health record (EHR) systems and facility preparation for future updates.
- The Breakdown: The spending includes $2.8 billion for general infrastructure upgrades, $500 million for major utility systems (electrical, boilers), and $500 million for medical center modernization.
The $1 Billion Digital Foundation
This funding is critical. The VA’s transition to a modern EHR has been a long, complex, and often fraught journey. By dedicating substantial NRM funds to “facility preparation for future EHRM updates,” the agency is acknowledging that software doesn’t run on air—it requires robust, modernized physical infrastructure to function. This likely includes upgrading server rooms, cabling, and power reliability to support high-uptime clinical systems.
Fixing the “Physical Debt”
Beyond the digital layer, the VA is tackling significant physical debt. The plan allocates:
- $2.8B to repair outdated infrastructure systems.
- $500M for major building upgrades, including elevators and electrical systems.
- $500M to modernize medical centers for current and future care needs.
These are “Non-Recurring Maintenance” projects—one-time fixes rather than routine operational costs. This distinction is important; it means the VA is not just paying the electric bill, but rewiring the building.
Quarterly Rollouts
Rather than a single massive contract, the VA will determine specific projects on a quarterly basis, allowing for agility in addressing the most urgent needs. The first tranche of projects for Q1 FY26 has already been identified, totaling $468M.
