Trump budget offers big increase to VA’s EHR effort; GSA changes TMF repayment model with ‘longevity’ in mind

The Trump administration issued its first major budget document Friday, slashing non-defense discretionary spending by $163 billion — a 23% reduction from 2025 levels — and boosting defense spending by 13%. A fact sheet released by OMB references the administration’s targeting of “woke” programs and “weaponized” government. One area that would see a significant boost under the budget is the Department of Veterans Affairs’ electronic health record modernization program. The EHRM, whose perpetually plagued rollout has been chronicled in congressional testimony and in various watchdog reports, would be provided with a $2.17 billion funding increase in President Donald Trump’s budget, per a summary document released Friday. The VA announced in March that it will have implemented the EHR in 13 facilities by 2026, with the possibility of deployment at all VA health systems as early as 2031. That followed a decision in 2023 to pause the system’s implementation to renegotiate the contract with its developer Oracle Cerner and account for safety concerns. Friday’s budget summary claimed the VA’s EHRM rollout “had stalled under the Biden administration” but is a “top priority effort” for Secretary Doug Collins.

The Technology Modernization Fund is shifting its funding model to prioritize the full repayment of new “high-impact” investments across the federal government, the General Services Administration said Friday. GSA’s press release said the “strategic” change would provide a “streamlined path to modernization” for agencies by “combining upfront capital with specialized advisory services.” The agency said this “enhanced payment model” was pursued with strengthened longevity for projects in mind. Acting GSA Administrator Stephen Ehikian said in a release that “By ensuring full repayment of our investments, the TMF sends a clear message to federal agencies: focus on high-impact, high-return modernization efforts. These investments not only replace outdated systems but also streamline critical operations ultimately improving services for government employees and delivering greater value to taxpayers.”

The Daily Scoop Podcast is available every Monday-Friday afternoon.

If you want to hear more of the latest from Washington, subscribe to The Daily Scoop Podcast  on Apple Podcasts, Soundcloud, Spotify and YouTube.