VA owes $226 million to the Treasury Department, inspector general finds

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A view of the North entrance of the U.S. Treasury Building in Washington D.C.- Sealy, J.

WASHINGTON – The Department of Veterans Affairs owes $226 million to the Treasury Department and has no immediate plans to repay it, according to an internal watchdog report released Tuesday.

The VA office of inspector general found the agency has not repaid funds taken from the Treasury’s Judgment Fund during the past six years to pay settlements from contract disputes on 10 major construction projects. The lack of reimbursement goes against federal regulations and VA policy, inspectors said.

“By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities,” inspectors wrote. “VA will require significant future funding to satisfy the outstanding claims.”

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