Joint Medical Facilities Fund Act of 2026
Sponsored By: Senator Banks, Jim [R-IN]
In Committee
Summary
Joint Medical Facility Fund would create a Treasury account to pool Department of Defense and Department of Veterans Affairs money for operating and maintaining designated combined Federal medical centers. It sets rules for how the two departments transfer funds and reconcile costs.
Show full summary
- Veterans and military patients would see designated combined facilities get a dedicated funding source for operations, capital equipment, real property maintenance, and minor construction, including the Captain James A. Lovell Federal Health Care Center.
- DoD and VA managers would be able to transfer appropriated funds and certain medical care collections into the Fund. They must use a jointly established methodology, an independent review, and an executive agreement that creates integrated financial reconciliation.
- Transfers to the Fund would generally remain available until the end of the first fiscal year after transfer, with up to 2% allowed to carry into the second year. The Secretaries must jointly report within 180 days which facilities they consider appropriate for combined designation.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
Joint fund for VA and DoD hospitals
This bill would create a Joint Medical Facility Fund at the Treasury under VA. DoD and VA would be able to transfer authorized appropriations and certain medical collections into the fund for designated combined facilities. Fund money would pay for operations, capital equipment, property maintenance, and minor construction that does not need special authorization. Transferred money would be available until the end of the first fiscal year after transfer, and up to 2% could remain available until the end of the second fiscal year.
Rules for running and auditing fund
This bill would require VA and DoD to run the fund under an executive agreement consistent with section 706 of the FY2009 NDAA. The agreement would require an independent review of the transfer methodology and an integrated financial reconciliation process that identifies each department's fiscal contributions. The Secretaries would also have to send Congress a joint report within 180 days listing facilities either Secretary considers appropriate to be designated as combined Federal medical facilities. The report must go to the House and Senate Veterans' Affairs and Appropriations committees.
Repeal of FY2010 combined-facility rule
This bill would repeal Section 1704 of the FY2010 National Defense Authorization Act, as most recently amended in 2025. The practical effects would depend on how DoD and VA used that provision before it is removed.
Pay rules for Lovell health center
This bill would allow amounts transferred to the Fund by the Secretary of Defense to be used for operations at the Captain James A. Lovell Federal Health Care Center when it is a designated combined facility. That center includes the North Chicago VA Medical Center and the Navy Ambulatory Care Center. Use of those DoD transfers would be subject to the rules in 38 U.S.C. 1729A.
Sponsors & CoSponsors
Sponsor
Banks, Jim [R-IN]
IN • R
Cosponsors
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 3/4/2026
Dan Sullivan
AK • R
Sponsored 3/4/2026
Sen. Duckworth, Tammy [D-IL]
IL • D
Sponsored 4/30/2026
Roll Call Votes
No roll call votes available for this bill.
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