For the first time, a lawmaker has called for Veterans Affairs Secretary Denis McDonough to resign due to the erroneous payment of bonuses to senior VA executives. Rep. Derrick Van Orden, demanded McDonough’s resignation during a House Veterans Affairs Committee hearing on Tuesday, highlighting the mishandling of nearly $11 million in bonuses.
The controversy stems from a report by the VA’s inspector general, which found that the department improperly awarded $10.8 million in critical skills incentives (CSIs) to over 180 executives. These incentives were intended under the toxic-exposure PACT Act to retain employees with in-demand skills in critical shortage areas. However, the bonuses were given to senior executives who were not eligible.
During the hearing, McDonough acknowledged “a series of massive mistakes” and took responsibility for the improper payments. He explained that the VA has recouped about 92% of the bonuses and implemented new procedures to ensure proper awarding of incentives. “You cannot read the statute and say that this was an acceptable use of that statute,” McDonough told committee members.
Despite this, Rep. Van Orden and other Republicans questioned McDonough’s leadership and suggested that senior leaders should be held accountable. Van Orden specifically called for the resignation of Under Secretary for Health Shereef Elnahal, Under Secretary for Benefits Joshua Jacobs, and VA Deputy Secretary Tanya Bradsher, in addition to McDonough.
McDonough defended his leadership team, emphasizing their strong performance and commitment to rectifying the mistakes. He pointed out that the bonuses were approved under his leadership and that he had taken immediate steps to address the issue upon discovering the errors. “At the end of the day, there’s blame to go around here, but the blame rests with me,” he said.
VA Inspector General Michael Missal testified that the errors were due to lapses in governance, judgment, due diligence, communications, and accountability at multiple levels within the VA. Missal suggested that senior leaders either misunderstood or intentionally misinterpreted the law to award the bonuses.
The improper bonuses were part of the $117 million Critical Skill Incentive Payments program authorized by Congress to retain staff with high-demand skills. McDonough stated that the VA is reviewing the entire process for awarding CSIs and has rescinded his delegation of authority, requiring his approval for any senior executive incentives.
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