# VA Raises Oracle EHR Contract Ceiling

In August 2026, the Department of Veterans Affairs raised the ceiling on Oracle Health’s Electronic Health Record Modernization contract from nearly $10 billion to $27 billion and added three one-year options. House and Senate Veterans’ Affairs committee leaders are seeking the supporting cost analysis, approval rationale, details on Oracle’s cost commitment, and justification for accelerating deployments by **October 30, 2026** (15 days from October 15). VA says Congress was briefed in September 2025 on a projected $37.2 billion rollout through 2031; it has also cited at least $1 billion in unexpected costs associated with the two-year pause and added system, training, staffing, and equipment needs. The modification is drawing scrutiny of cost controls, Section 508 accessibility, patient safety, schedule, and Oracle’s delivery responsibilities; the signals identify no new solicitation.

- The contract ceiling and options expand the value and period of performance of the existing VA-Oracle effort; the $37.2 billion rollout estimate is separate from the $27 billion contract ceiling.
- Contractors supporting the program should be prepared to substantiate cost controls, deployment readiness, accessibility, and delivery performance as congressional oversight continues.
- VA’s stated plan calls for 26 additional deployments in 2027 and nationwide completion by 2031, making deployment, training, staffing, and equipment capacity relevant to suppliers’ planning.

**Jurisdictions:** federal
**Industries:** Healthcare, Information Technology
**Topics:** Digital Infrastructure, Regulatory Compliance
**Published:** October 14, 2026

### Government Entities
- Department of Veterans Affairs (VA)
- U.S. House Committee on Veterans’ Affairs
- U.S. Senate Committee on Veterans’ Affairs

### Vendors
- Oracle Health (Incumbent contractor and contract holder)

### Key Quotes
> I’ve got to figure out what was promised and see how our acquisition folks dealt with that
> — Paul Lawrence, VA Deputy Secretary

### Sources
- [Top Dems press VA for answers on $17B EHR modernization contract boost - Nextgov/FCW](https://www.nextgov.com/modernization/2026/10/top-dems-press-va-answers-17b-ehr-modernization-contract-boost/416572) - Nextgov/FCW
- [Democrats Demand Answers on VA’s EHRM Contract Increase – MeriTalk](https://www.meritalk.com/articles/democrats-demand-answers-on-vas-ehrm-contract-increase) - MeriTalk
- [Dems demand answers on EHRM contract rise as VA says lawmakers knew the total price | FedScoop](https://fedscoop.com/democrats-letter-va-oracle-ehr-modernization-contract-hike) - FedScoop