Congressional lawmakers are set to take a pivotal step in the federal budget process this week, beginning with the release of the fiscal year 2026 funding proposal for the Department of Veterans Affairs (VA) and military construction (Milcon) projects.

The House Appropriations Committee will hold a markup hearing Thursday morning to examine the draft legislation and begin the process of refining spending levels for the upcoming fiscal year.

Historically, the VA-Milcon appropriations bill is less controversial than other budget segments. Still, tensions are expected this year as Republican and Democratic lawmakers debate key provisions.

Central to the discussion are proposed staffing cuts at the VA — reductions that have been publicly acknowledged by department officials but remain light on detail.

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“VA leaders have proposed steep cuts in department staffing next fiscal year, but have not detailed the scope and costs of those plans,” the original report noted.

This week’s proceedings mark the beginning of congressional appropriators’ work on the FY2026 federal budget, which is starting ahead of the full White House budget release.

Last month, the Biden administration submitted a preliminary “skinny” budget — a high-level outline that sets the framework for departmental allocations.

However, a comprehensive and detailed proposal from the executive branch has yet to be delivered, creating a degree of uncertainty for lawmakers.

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Several lawmakers on both sides of the aisle have expressed frustration over the delay in receiving those details. With the current fiscal year set to end on September 30, Congress is operating on a tight timeline to avoid a partial government shutdown.

If a full budget package cannot be passed in time, legislators may need to rely on a continuing resolution to keep the government funded temporarily.

The VA-Milcon measure is not only critical for maintaining and upgrading military infrastructure but also for ensuring continued support to veterans and their families.

While the overall topline numbers are still under review, any adjustments to staffing, health services, and infrastructure upgrades within the VA system will be closely watched by veterans groups and advocacy organizations.

The hearing on Thursday is one of several key congressional events focused on fiscal 2026 this week. In parallel, the House and Senate are holding posture hearings with service branch leaders to discuss defense priorities and justify their budget requests.

On Wednesday, Army Secretary Daniel Driscoll and Army Chief of Staff Gen. Randy George will testify before the House Armed Services Committee on the Army’s FY2026 posture and priorities.

They will appear again Thursday morning before the Senate Armed Services Committee for a similar session. Meanwhile, Air Force Secretary Troy Meink, Chief of Staff Gen. David Allvin, and Chief of Space Operations Gen. Chance Saltzman are scheduled to testify before the House Armed Services Committee on Thursday regarding the Air Force and Space Force budget requests.

In addition, several foreign policy and national security issues will be addressed in committee hearings throughout the week. On Wednesday morning, outside experts will testify before the House Foreign Affairs Committee on challenges facing NATO.

Later that afternoon, the Senate Foreign Relations Committee will hold hearings on both transnational criminal organizations operating in the Americas and China’s expanding influence in Africa.

The Senate Appropriations Committee will also convene Wednesday afternoon for a session on the National Nuclear Security Administration’s FY2026 budget, with testimony from acting administrator Teresa Robbins.

In the veterans' affairs space, the Senate Veterans’ Affairs Committee will meet Wednesday at 4 p.m. to consider pending nominations for leadership posts within the department, a key step in ensuring stability and continuity as the agency potentially faces internal restructuring in the year ahead.

House lawmakers appear to be making a concerted effort to get ahead of potential delays in the broader appropriations process by starting early with the VA and military construction bill — a tactic that could help provide some clarity as more contentious budget areas come into focus later in the summer.

With partisan lines likely to be drawn over proposed cuts and funding levels, this week’s markup is expected to be the first of many debates that will shape the final contours of the federal budget.

Lawmakers, veterans’ organizations, and federal employees alike will be watching closely as the process begins in earnest.

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