(NewsNation) — The Department of Veterans Affairs just hit pause on a multi-billion dollar cost-cutting plan after veterans groups and lawmakers raised objections.
The plan was backed by Elon Musk and the Department of Government Efficiency as part of broader cuts made across the federal government.
On Wednesday, the VA directed staff to stop over 800 contract cancellations that were taking place, though the halt is said to be temporary.
VA Secretary Doug Collins and Elon Musk had previously celebrated the cuts, saying the department was cutting unnecessary consulting deals.
“Don’t feed the line of what D.C. is wanting to tell you; we are putting money back to veterans’ health, back to veterans’ benefits,” Collins said. “Don’t let nameless sources, even senators and House members, who want to scare you and media who want to perpetuate the line. We’re taking care of the veterans, I promise you that from day one.”
Veterans groups heavily criticized the cuts and said they hurt critical health services.
The VA said in a statement that the review of its contracts is ongoing and not final and has “no negative impact to VA health care benefits or beneficiaries.”
But questions remain about whether any cuts have already been implemented and how that could affect veterans because it’s not clear which contracts were already terminated before this reversal.
