Veterans First Act Slashes $2 Billion from Foreign Aid to Fund State Veterans' Homes Construction

The “Veterans First Act of 2025” is laser-focused on pouring money into state-run care facilities for veterans, but it does so by making a very specific cut to another budget. This bill immediately reallocates a whopping $2 billion, pulling that money permanently from the U.S. Agency for International Development (USAID) and handing it straight over to the Department of Veterans Affairs (VA).

The $2 Billion Budget Swap: Foreign Aid to Veterans' Care

Think of this as a zero-sum game played with two very different pots of federal money. The bill explicitly states that $2,000,000,000 previously earmarked for USAID is now gone from their budget, permanently. Immediately, that exact $2 billion is given to the VA to fund grants for states. This money is strictly dedicated to capital projects—buying land, building brand new veterans' nursing homes and domiciliary facilities (places where veterans can live), or renovating and upgrading existing state hospitals and care facilities. For states, this is a massive infusion of capital for infrastructure improvements that will not expire until every dollar is spent, which is a huge win for long-term planning.

What This Means for Veterans and Taxpayers

For veterans needing long-term care or residential support, this is a clear benefit. It means states will have the dedicated funding to modernize or expand facilities, potentially cutting down on wait times or improving the quality of the physical spaces where care is delivered. If you have a family member who is a veteran and relies on state-run services, this investment could directly translate into better physical infrastructure in the coming years. This is the government stepping up to pay for the bricks and mortar of care.

However, there is a flip side to this funding mechanism. That $2 billion had to come from somewhere, and in this case, it’s coming entirely from foreign aid. Programs run by USAID focus on everything from humanitarian relief during disasters to global health initiatives and economic development in poorer nations. By permanently pulling $2 billion from that budget, those international programs will face a substantial, long-term reduction in funding. While the bill delivers a significant benefit to veterans' infrastructure here at home, it simultaneously means a definite cut to America’s international development and humanitarian efforts.