September 20, 2019

Rep. Ruben Gallego Asks for Info About Delayed Veterans Benefits Administration Reimbursements to Phoenix Companies

WASHINGTON, DC – Today, Rep. Ruben Gallego (D-AZ) sent a letter to the Veterans Benefits Administration (VBA) expressing concerns and asking for information about delayed reimbursements to vendors that perform VA-authorized installations, repairs, and maintenance of automobile adaptive equipment (AAE) for the vehicles of disabled veterans.

The VHA and VBA administer the program to allow disabled veterans with entering, exiting, and/or operating an automobile through the use of wheelchair/personal mobility device lifts and securement systems, manual and electronic steering and braking controls, and specialized seating. Specialty mobility equipment dealers who provide and install these modifications are reimbursed by the VBA.

In his letter, Rep. Gallego expressed concern over reports of thousands of past-due reimbursement invoices, totaling over $34 million between 2010 and 2015 – including some reports of Phoenix businesses affected by the delayed or missing reimbursements.

"This issue has hit Phoenix small businesses particularly hard," Rep. Gallego wrote. He included with the letter a list of past-due invoices from two Phoenix-area equipment dealers totaling nearly $300,000 and averaging over 240 days overdue. Under law, federal agencies are required to pay a vendor's valid and proper invoice on time and typically within 30 days.

"This is causing serious operational and payroll issues at businesses which cannot afford to be unpaid for almost a year and also meet their other obligations," Gallego continued. "I am extremely concerned that the VA's failure to efficiently administer these programs is impacting the ability of dealers to continue providing life-changing products and services to disabled veterans."

Rep. Gallego requested that the VBA provide a comprehensive list of outstanding invoices, including the amount owed and the length of time each one has been pending. He also asked the VBA to detail efforts to reduce the backlog and come into compliance with the law.

The full letter can be found here.

Rep. Gallego is a Marine Corps combat veteran. He serves on the House Armed Services Committee.