Small business owners feel more uncertain about the future
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D.C. Projects Over $1B Loss In City Revenues Due To Federal Cuts
March 4, 2025
By Nick Wakeman
The Veterans Affairs Department claims $900 million in savings and that the cuts will not impact health care, benefits or services.
The Veterans Affairs Department is moving to cancel 585 contracts that it has deemed non-mission critical or duplicative.
VA has announced the cuts Monday afternoon and said the decision follows a review of 2,000 professional services contracts.
VA has not responded to a request for a list of the cancelled contracts.
VA is claiming the cancellations will save $900 million, or about half of the total $1.8 billion in award value of the contracts.
“The termination of these contracts will not negatively affect Veteran care, benefits or services, and will help VA better focus on its core mission,” VA said in its announcement.
Work on these contracts included generating requirements for other contractors to fulfill, administrative services such as staff mentoring, leadership coaching, and meeting prep, and executive support.
On Tuesday, VA Secretary Doug Collins said that the agency would be cutting $2 billion in contracts.
