Veterans Affairs faces $1 billion shortfall

WASHINGTON (AP) -- The Department of Veterans Affairs told Congress that its health care costs grew faster than expected and left a $1 billion hole in its budget this year, lawmakers said Thursday.

House Veterans' Affairs Committee Chairman Steve Buyer, the Republican from Indiana, said the department can meet this year's health care costs by drawing on spare funds and money from other operations, including building construction.

But next year's health care budget falls well over $1 billion short, said Sen. Larry Craig, R-Idaho.

"I was on the phone this morning with Secretary of Veterans Affairs Jim Nicholson letting him know that I am not pleased that this has happened," said Craig, chairman of the Senate Veterans' Affairs Committee.

"This shortfall results from either deliberate misdirection or gross incompetence by this administration and the Department of Veteran Affairs," said Sen. Patty Murray, D-Washington.