HR6599119th CongressWALLET

Leasing and Infrastructure Act of 2025

Sponsored By: Representative Smith (MO)

In Committee

Summary

Creates an independent VA leasing authority that lets the Department of Veterans Affairs enter long-term leases for major medical facilities and use a revolving Veterans Leasing Fund to finance those leases. It sets lifecycle and market-based cost rules, transparency requirements, and risk-mitigation lease terms to align VA leasing with commercial practice while preserving congressional oversight.

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  • Veterans and families: Speeds delivery of new or expanded VA medical and outpatient space by allowing VA to sign leases up to 20 years without General Services Administration delegation.
  • VA operations and finance: Creates a Veterans Leasing Fund in the Treasury to pay rent, tenant improvements, operating costs, and pre-award due diligence, with funding and obligations managed through the Fund and related appropriations.
  • Oversight and procurement: Requires standardized life-cycle cost estimates with geographic and inflation adjustments, market-based cost components including land and construction, annual reporting to VA committees and specified House and Senate committees, and a streamlined procurement model study and report within 180 days of enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Developer protections and payment rules

If enacted, the bill would require VA to try to award a major medical facility lease within one year of issuing a solicitation and to change internal guidance to support that target. Before issuing a solicitation, a contracting officer would have to certify in the contract file that funds are obligated to pay expected due-diligence and pre-award services and that those services are available within 30 days. If VA delays an award past one year, prospective lessors in the competitive range would be reimbursed monthly at an annual rate of 1% of the average land acquisition cost, stopping on award or cancellation. During the expression-of-interest phase, developers would have to submit price estimates (including land cost); VA must notify Congress within 14 days if estimates exceed prospectus rent and finalize a plan within 45 days. The bill would also let VA use risk-mitigating lease terms (like post-occupancy self-insurance, reimbursements for VA-caused holding costs, and triple-net or modified-gross leases) and require guidance on those terms within 180 days.

New VA authority to lease facilities

If enacted, the bill would let the VA Secretary enter into major medical facility leases without GSA delegation, with firm terms up to 20 years if a prospectus is approved by Veterans' Affairs committees and transmitted to specified House and Senate committees. It would create a Veterans Leasing Fund in the Treasury to hold appropriations for lease obligations and to pay rent, tenant improvements, taxes, operating costs, and pre-award due diligence. The bill would require standardized, market-based full life-cycle cost estimates with annual inflation adjustments and revalidation if no award occurs within one year. It would also require a single decision memorandum for lease approvals, regular design-guide updates (first within 180 days and then at least every five years), a revised procurement process report within 180 days, and prompt Congressional notice if projected costs exceed estimates by more than 10% or exceed budget authority.

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Sponsors & CoSponsors

Sponsor

Smith (MO)

MO • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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