VA Moves to Partially Implement Health Benefits for FAS Veterans

The Department of Veterans Affairs announced in August 2026 that it will pursue partial implementation of the health-care authorities granted by the Compact of Free Association Amendments Act of 2024 for eligible veterans in the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau.

GAO's review found that these veterans confront multiple barriers to care, including scarce specialty services such as mental-health and cardiology, and an inability to use VA telehealth. To obtain benefits, they must travel to VA facilities in U.S. states or territories and do not receive beneficiary travel reimbursement for that travel.

From March 2024 through March 2025 VA completed an environmental scan of the FAS health-care landscape and analyzed policy implications of expanding benefits. The agency identified potential costs and staffing needs for processing claims. In an April 2025 memo to Congress, VA stated it would not exercise the new authorities to "ensure equity with all U.S. veterans." VA confirmed in June 2026 that it had concluded its engagement with the FAS, but in July 2026 officials told GAO they intended to resume engagement, and in August 2026 affirmed pursuit of partial implementation.

The partial implementation plan, as described to GAO, includes offering telehealth services, delivering pharmaceutical and medical-surgical products, reimbursing care provided in the FAS, and extending beneficiary travel benefits to service-connected veterans residing in the FAS. VA did not provide a specific timeline for these actions.

GAO will continue to monitor VA's progress in expanding health-care access for FAS veterans and assess compliance with the statutory authorities and any associated regulatory requirements.