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S. 2174Senate118th Congress (2023-2025)In Committee

Department of Veterans Affairs Minor Construction Threshold Adjustment Act of 2023

Sponsored by Jon TesterSen. Jon Tester (D-MT)
Introduced June 22, 2023

AI-Generated Summary

Updated January 20, 2026 at 9:20 AM UTC

The bill raises the dollar limit for what the Department of Veterans Affairs can treat as a “minor” medical‑facility construction project, setting the baseline amount at $30 million instead of $20 million. It requires the VA secretary to create regulations that let the threshold be adjusted over time based on construction costs, land values, inflation and other economic factors. The secretary must review and potentially adjust the amount at least every two years, notifying the Senate and House Veterans’ Affairs and Appropriations committees before any change or notice of no change is issued.

Key Provisions

  • Changes the existing $20 million threshold for minor VA medical‑facility projects to $30 million, or to the amount specified in the new paragraph.
  • Mandates the VA secretary to develop a regulatory mechanism for adjusting the threshold based on construction costs, land, labor, inflation and related economic conditions.
  • Requires the threshold to be adjusted at least once every two years, or a notice published if no adjustment is needed, with a 30‑day advance notice to the relevant Senate and House committees.
  • Ensures that any adjustment schedule aligns the threshold with the construction projects requested in the President’s budget for the VA.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Veterans' Affairs.

Veterans' Affairs Committee

June 22, 2023

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SenateIntro Referral

Introduced in Senate

June 22, 2023

SenateIntro Referral

Read twice and referred to the Committee on Veterans' Affairs.

Veterans' Affairs Committee

June 22, 2023

Bill Text

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Introduced in SenateIssued June 22, 2023

II

118th CONGRESS

1st Session

S. 2174

IN THE SENATE OF THE UNITED STATES

June 22, 2023

Mr. Tester (for himself, Mr. Moran, Mr. Reed, Mr. Rounds, and Mr. Hoeven) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

A BILL

To amend title 38, United States Code, to adjust the threshold amount for minor medical facility construction projects of the Department of Veterans Affairs, and for other purposes.

1.

Short title

This Act may be cited as the Department of Veterans Affairs Minor Construction Threshold Adjustment Act of 2023.

2.

Adjustment of threshold amount for minor medical facility projects of Department of Veterans Affairs

Section 8104(a) of title 38, United States Code, is amended—

(1)

in paragraph (3)(A), by striking $20,000,000 each place it appears and inserting the amount specified in paragraph (4); and

(2)

by adding at the end the following new paragraph:

(4)
(A)

The amount specified in this paragraph is $30,000,000, as adjusted pursuant to this paragraph.

(B)
(i)

The Secretary shall develop, through regulations, a mechanism to adjust the amount under subparagraph (A) to account for relevant factors relating to construction, cost of land, real estate, economic conditions, labor conditions, inflation, and other relevant factors the Secretary considers necessary to ensure such amount keeps pace with all economic conditions that impact the price of construction projects, to include planning, management, and delivery of the project.

(ii)

In developing the mechanism under clause (i), the Secretary may—

(I)

use a mechanism or index already relied upon by the Department for other relevant programs, a mechanism or index used by another Federal agency, or a commercial mechanism or index if such mechanism or index satisfactorily addresses the intent of this subparagraph; or

(II)

create a new mechanism or index if the Secretary considers it appropriate and necessary to do so.

(C)
(i)

Not less frequently than once every two years, the Secretary shall—

(I)

adjust the amount under subparagraph (A); or

(II)

publish a notice in the Federal Register indicating that no adjustment is warranted.

(ii)

Not later than 30 days before adjusting an amount pursuant to clause (i)(I) or publishing a notice pursuant to clause (i)(II), the Secretary shall notify the Committee on Veterans’ Affairs and the Committee on Appropriations of the Senate and the Committee on Veterans’ Affairs and the Committee on Appropriations of the House of Representatives.

(D)

The Secretary shall determine a logical schedule for adjustments under this paragraph to take effect so that the amounts for and types of construction projects requested by the Department in the budget of the President under section 1105(a) of title 31 are consistent with the threshold for construction projects as so adjusted.

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