[00:00:00] Imagine serving your country, filing for a claim for benefits that you've earned, and then being told, sorry, we'll get back to you someday. That's the harsh reality for thousands of veterans right now. But there are steps that you can take. To make sure that you're not lost in the system. In today's episode, we're breaking down how the government shut down is making the VA backlog worse, and what you need to know to assure your claim is processed effectively.
Hello, welcome to Prepare to Compete, where we taught all things VA benefits, real estate, entrepreneurship, and more. Kenneth Davis, how you feeling today, my brother? Oh, I'm feeling great. Feeling great, and ready to peel back some of this information here. Absolutely, absolutely. Now there's always issues with the VA backlog, but of course there's a lot more [00:01:00] going on in the world today.
So we definitely wanna give the viewers a update on what's going on and how the government shut down, in particular is impacting that backlog. Now, Kenneth, what the people wanna know, foundationally, is just how has the government shut down affected the Department of Veterans Affairs overall? Well, I'm gonna say this.
Um. You know, unfortunately the VA isn't operating at a normal capacity administratively, nor for outreach or anything of that nature. So it's a, it's definitely has been halted in certain areas of, of major areas that, uh, all veterans may need access to. Right. Uh, such things as regional offices. Right. But there's a ton of other, uh, departments that are not operating at a hundred percent, which, you know, unfortunately is, uh, a huge issue.
Right. Certain hospitals and benefits will continue. Uh, but there are cer certain things like satellite hospitals or [00:02:00] clinics that are not operating as well. So that's a big, that's a big thing. Um, also, we wanna understand that a lot of the staffers aren't, aren't employed right now. Right? They aren't employed.
Uh, they are frankly being furloughed. Right. So now what does that mean on a day-to-day operations? Well, veterans aren't gonna already, they, they were not already getting the best service. So now you're not gonna get the best, you're gonna probably get worse service than what you expected then. So, and we know, uh, once any type of furloughs or different, or government shut downs and different things that happen, it takes a little while before operations start churning back up on a regular speed.
So, uh, but with that being said, uh, pretty much the va just in general in its entirety, agent, uh, but the entirety of its agency is not operating at a hundred percent. So, uh, we do know that, so, uh, unfortunately some veterans will be left, um, uninsured that, uh, their case files or, uh, [00:03:00] treatment or whatever is not being, um.
Taking care of procedurally at a hundred percent. Absolutely. The VA is definitely a large machine, right? So there's about, I believe, 500,000 employees and you know of that, about 15,000 have been. Furloughed. So that kind of leads me to the next concern of just which services are still operating normally during this government shutdown.
So, uh, we can count on, uh, the hospitals being operational, right? Obviously that was essential needs, uh, again, uh, such, such positions such as, uh, the benefit sector. VBA is still operating and you are still receiving benefits and also benefits are still currently being processed. Uh, but we would say again, um, obviously the burial grounds, right?
When we talk about, uh, you know, the VA burial cemetery services, those are still operating, but again, also operating it with the stick, uh, [00:04:00] skeleton crew. So we want to understand that there are certain components of those departments, of those agencies that are not operating at a full a hundred percent capacity and services.
Will be reduced, right? So understanding, uh, veterans if you are receiving a certain, a certain service or having an expectation of a certain service, uh, during this timeframe, uh, just, just please, please give grace while the government is sorting out gonna be, obviously the political parties are sorting out certain things to get this thing back going, uh, but.
Just allow grace in regards to the VA agency, 'cause some of those, uh, veterans there, uh, who are awaiting benefits or awaiting services or anything? Well, there's veterans on the other side of that that are working hard for you as well. Um, because the VA does employ roughly about 460,000 people. Uh, but roughly about 15,000 were furloughed.
But understand roughly about 15,000 was laid off. Uh, but let's take in consideration. That there are [00:05:00] veterans on the other side who are trying to serve you guys. Okay, so, uh, let's, uh, give grace. Absolutely. No, that's very important, right? Because sometimes you think about the services that you may not be receiving, but understand that there's a lot of government employees who actually happen to be veterans themselves, who are still working hard and really committed.
To serving that mission there. And you know, as far as serving our mission here, I know a lot of our viewers here really care about the VA claim processing, right? And now when we talk about these closures, definitely has some impact on the backlog, which we know. There's always been some type of backlog. I believe now is roughly anywhere between 130,000 to 140,000 claims within the backlog.
But as we talk about the VA claim backlog, you know, during this government shutdown, what does that actually mean [00:06:00] for veterans? Well, uh, in a sense of processing the claims. Nothing stops. Nothing stops. The VA is still going to, uh, the VBA is still gonna operate and get claims process right. Would it be at the speed that it's normally at?
Probably not. Alright. We understand that again, there are essential components that some may not deem essential, but to be very frank with you, every piece matters. When we're processing claims. So, uh, with that being said, there may not be some operational components that is generating and, and, and actually services that are being provided.
So with that taking up back into consideration, uh, we have to understand that things will still go but not as fast as you think. But, uh, I think again, we, there, there shouldn't be any issues with processing claims. Absolutely. And now when we talk about processing claims, 'cause I know we had another video definitely take, um, advantage of watching that [00:07:00] regarding, uh, the situation in Philadelphia with the, uh, 85,000, uh, claims being processed where.
They were just doing anything and not really reviewing those claims there. And now when we talk about the backlog, I think veterans are oftentimes, uh, thinking about the monthly compensation claims right there, VA benefits claims. But when we talk about that backlog, does that number. Also include other types of claims as far as record requests and adding dependents and you know, doing different things like that.
And I'd imagine, you know, how that impacts a veteran where you know, you have a. Child is looking to go to college and they're not added back onto your award, so can they not qualify for utilization of your GI bill or utilization of certain chapter 35 benefits and things of that nature. So definitely wanted to kind of point that out and, and have you speak a little bit, [00:08:00] uh, into that world of things.
Well, that's a actually a really, really great question. Um, and again, each agency and, uh, departments have pr, right? Um, when putting out information and statistical analysis of information, I want you guys to understand that there's always man, uh, management analysts and program analysts who actually look at these numbers to be able to make sure that reports are correct, okay?
Um, and also understanding that reporting when we're talking about reporting of a back law. I wanna be very specific. Reporting compensation and pension claims would be kind of the foremost, uh, portion when stating proportion of, uh, of reporting a backlog. Okay, that is compensation claims. Now what we're talking about.
Other ancillary benefits that are being processed? Well, unfortunately, I don't think that is gonna be accounted for. Um, and reason being is that, uh, though they are sometime analyzed, I [00:09:00] don't think all of it is accounted for. That's just my opinion. Uh, but when we actually talk about the reports, we wanna make sure that we understand, uh, what type of reports that are being read and what has been communicated.
So, uh, the answer, to answer your question, I don't think, uh, any ancillary benefits, uh, claims are being reported within that metric of the. Other backlog claims that are put out to the media. Wow. Wow. So obviously a lot of those same departments are still taking a look at those claims. So even though they have 140,000 compensation claims, they may have another a hundred thousand of miscellaneous claims to process as well.
So, you know, definitely always consider that. And you know, hopefully, uh, they. Continue to make strides, right? Yeah. Because if you kind of look at the charting and things regarding the backlog and you know, just how the claims have been processed over the years, you could start to see like, hey, that was a point where it was over a half a [00:10:00] million and we were talking about that there.
So, you know, being at right around 140. Thousand claims. Sounds like a lot, but definitely making a lot of strides to get that number down for sure. Yeah, I mean, uh, backlog has always been the issue in regards to the VA compensation claims. This is, uh, uh, honestly, this has been a huge push this year in just pushing claims.
Uh, but that's not, and listen, veterans sometimes when you want your clean process. Let's make sure that we don't want to process it. Philly style, right? We want it processed in a way to actually go through the process of, and if it takes a little bit more time, take that into consideration. Sometimes you may want to go through the full process and and, and be timely.
So with that, have a little patience. Have a little patience, because it does take time to be able to get these things processed. And if it takes time, I would rather it be done right than fast. So, uh, just allow, allow that [00:11:00] timeframe to, to transpire. So, absolutely. Well, 'cause you know, a lot of times, you know, we have veterans where it really personal for them, right?
As we mentioned, there are veterans who are also government employees, so they're, uh, furloughed because of the government shutdown down. And of course they were already, uh, government employees that have been off work or transitioned to other departments just. Due to the different change of administration and, uh, different kind of staffing challenges of kind of looking at the government spending as a whole.
So there's been a lot of, uh. Things developing within the government is really impacting veterans on a personal level. So, you know, with this government, uh, shut down now and just with the backlog and kind of looking at things, and obviously we're in the fourth quarter of 2025 and going into [00:12:00] 2026, uh, how long are veterans waiting?
On, uh, answering a response for their submitted claims? Well, uh, to answer that question, uh, typically on average, you probably see your case file being processed and then taking, taking about six to 12 months. Uh, that's again, we're talking about an average. Of claims being processed, I would, I would generally go ahead and, uh, stick it to six to 12 months.
But that's if you're doing your part as well, right? Uh, make sure that you are getting any back, any documentation in a timely manner, making sure that you're taking any examination that is requested to get processed as soon as possible. So, uh, that will kind of average out to be processed around six to 12 months, and hopefully with this government shut down, it doesn't delay things.
So about six to 12 months. Of course with Veterans, for Veterans. I know you deal with a lot of veterans, uh, with their claim process, and I wanted to speak to, um, active duty service members [00:13:00] transitioning outta service. Right. And, you know, during that transition, of course, a lot is going on there and now you're transitioning and you went from being employed.
Having basic housing allowance and you know, all of these different things, right, as far as resource wise, and you can still have some of those resources as a veteran. However, sometimes it's going to be in that period of six to 12 months to really start receiving your VA benefits from that monthly compensation and, you know, dealing with veterans who are retiring.
That there's a process that that process may be impacted, which is already taking quite a while, you know, to, um, rectify and, and make sure those things are accounted for as well. So I just wanted you to kind of speak to some of the financial and emotional struggles that delay in the claim processes [00:14:00] cause for our veterans.
Well, uh, that's a great. Great, great question. Um, reason being is that I don't think it's understood on how hard transitional, um, transitional mental wellness is amongst our active duty members. That transitional wellness is something that needs to actually be looked into and researched. And why I say that is that not only is a veteran and the active duty member going through this.
There are spouses and children that are going through this as well. So everyone is impacted. Everyone's mental health is impacted. Everyone's financial circumstances impacted to include, to include also the military division, losing a staffer, uh, a staff member or soldier, or airmen or whoever is impacted as well.
Through that transition, there's a lot of I identity crisis that is [00:15:00] happening. And now that that retiree, that person's been discharged, um, they're having, uh, definitely a lot of issues that's already piling up. But now where we're talking about employment, when we're talking about financial issues, when we're talking about, uh, uh, seeking who you are, it can be very daunting.
On active duty, uh, active duty member or a veteran or just, uh, their families. So seek help. This process could take a little bit longer during this government shutdown as it normally would seek assistance. There's been, there's been current articles right now though the government shutdown that are active duty members are, are going to food pantries to be able to get the, the food assistance that are is needed.
Our nation's hero should never have to go through that, but sometimes they do. And this is just the reality of things, [00:16:00] and these are the things that no one sees. So bringing this to the forefront to understand that through this transitional period, whether if you're active duty now or a veteran or active duty member who is transitioning, seek guidance and help, because if you do not.
The ramifications on the other side could be a little bit more damaging, not to yourself, but to your family as well. So again, getting mental, well, getting mental health care, uh, specialists, uh, in, in, in place, right? Having a financial plan, right? Having a financial counselor setting up the process of your transition before with six to 12 months before you even getting out.
Where you are not scrambling to stay in the military because you don't have enough, uh, money saved up. You don't have a plan, you don't have housing adjustment and what you, what you're gonna do. So there's so many different components that are happening. But if you start from. You are [00:17:00] at least one year out transitioning, at least you would have some type of plan in place to be able to reduce some of this, uh, uh, this transitional mental, uh, uh, travesty that's happening.
Absolutely. Yeah, definitely. Definitely. Financial budgeting and planning is essential. Right? It's definitely essential for it, and we don't want these things to happen. Right. Especially impacting. Anyone, but specifically when it comes to impacting service members and veterans as far as their ability to feed their families and receive the benefits that they sow, graciously earn through their commitment through our country.
There needs to be systems in place to stop things that it's nature from happening. So now when we talk about this, uh. What type of policies do you think should be in place in the future to [00:18:00] prevent the nonpayment of service members during government shutdown and also different veteran workers from being furloughed?
Because any and every action associated to a veteran. Or a active duty service member is in fact essential. And that should not stop because the commitment that the active duty and veteran community and their families had to this country never stopped, and it's not stopping during the shutdown. So when you kind of think about that from a policy perspective, what are some things that come to mind there?
There's a ton that come to mind. I'll, I'll be totally honest with you. Because I, I, again, not only do we support the better community, right? Uh, we, we want to make sure that they're well taken care of at the highest level we're here [00:19:00] to serve. Right? And I think that's where, again, a lot of policies are missing when we are considering our active duty and, and veterans.
So if we're here to serve there again, and there's a ton of, uh, I will tell you there's a ton of policies that supports veterans and that we're not saying that whatsoever. But what we are saying is that there, there needs to be some provisions and protective measures for families of active duty members or families of veterans because when we talk about those personnel, the wifes who are out at, again, who are working these government jobs, who they may consider non-essential.
They are essential. They are essential because they're serving the household of this active duty member. And if they can't take care of the household and you have problems at home and also you have problems out to sea and you are at war, we have to take consideration where, where the mind of a veteran goals or active duty member goals.
There's, [00:20:00] there's a veteran, there's an active duty member currently right now. As we speak, who is out there fighting and, and protecting our country, whose wife is just laid off right now and they're struggling to pay their bills. There they are. There are people like that. So when we talk about a policies to put in place, there should be certain policies, not only for the active duty member, military personnel to get paid, but also the family members who work the Essential jobs and I, I label them essential, essential jobs.
To get paid as well, and that's just in consideration of who is supporting the active duty members. The spouses, the Gold Star families, when we understand these people, uh, and what I mean, gold Star, uh, gets no disrespect for those who, uh, who lost loved ones. It is simply saying, uh, that the, the families that are supporting the active duty member when they're out to see [00:21:00] or out to war or out boots on ground in anywhere.
And again, out to sea, go Navy. Uh, well, it, it's very, they're very essential. They're essential personnel and they need to be protected as well. Uh, just as many protective men measures as the active duty members. That's what I would say. Oh, that, that's very well said and really needed to be thought about.
Right. Because it does become an issue of national security when you're not serving that population. Uh, well, so, you know, that's really a, a, a great point there. And you know, when we talk about the public at large, as we kind of close things out here, uh, you know, what are some things that. The general public can do more of, uh, when it comes to serving the active duty and veteran community.
You know, I know in my field of real estate, you know, sometimes there's a lot of stigma around the VA loan, right? And now it's like, hey, um. For whatever reason, the appraisal [00:22:00] process is longer, which is a misnomer there that's not correct. That's a myth. You know, they're the buyer if not well qualified, and all of these things is more riskier to sell to that person.
So, you know, when I think about it from that standpoint, that's something that a, a lot of individuals could look at when they're selling their home and they're looking at a veteran looking to purchase that home, like really? Give them a a shot at doing so. I'm not saying, Hey, sell it to a veteran or active duty service member.
50,000 less than another offer or, or well below that. But you know, when you're kind of thinking about that and you're considering things, and also you're considering the stability of that particular community that you lived in and that you graciously still have a affinity for and care about, know that that active duty family.
That veteran family is going to really take pride in that home and [00:23:00] take pride in the privilege and American dream of home ownership to be a staple of that community. So not only do you owe that to that individual, but it really helps and you owe that to the community to consider, uh, having those individuals a part of that.
I couldn't have said a brother. I couldn't have said it better. I think it, I think, uh, kind of the, the undertone in that right is protect and serve for those who that protect and serve, right? Uh, we all want a fair shake. We all want to, uh, again, be equitable in, in, in, in, in, again, uh, certain areas in wine.
And this will be able to position the service member. In a, a, a, a position that they may have not have been in. If, uh, you as the civilian or whoever is selling that home or whoever is gonna serve, uh, someone, just again, just take it in consideration because most don't. Right. [00:24:00] And, and, and, and obviously we want everyone to get the most that they can from their home, and we want, we wanna make sure that.
You are served as well, but taking in consideration if we have two buyers and, and there's one over the other and one is a veteran, one is not, not saying that, uh, the non-veteran shouldn't get it, but, uh, let's just take into consideration if you can be able to serve someone who protected and served you.
I think that's a great kind of, uh, bow to kind of put on that because at the end of the day, uh, service is why we're here. Service is why we're here. Absolutely. Thanks for watching and as always, prepare to compete. We are out. Peace.
