Federal News
House Pressures VA to Reform EHRM Contract
March 24, 2026
The U.S. House of Representatives, led by Rep. Nikki Budzinski, has introduced legislation targeting the Department of Veterans Affairs' Electronic Health Record Modernization (EHRM) program, which is managed under a $37 billion contract with Oracle Cerner. The bill mandates strict performance benchmarks, independent verification, and an exit strategy if measurable improvements are not achieved within two years. This legislative action reflects congressional concerns over significant delays, patient safety issues, and limited deployment progress since the program's inception nearly eight years ago. Concurrently, the VA plans to relaunch the EHRM program in April 2026, expanding deployment to 13 additional sites with a focus on system stability, interoperability, and governance improvements.
- Contract Value and Scope: The EHRM contract with Oracle Cerner is valued at approximately $37 billion, representing one of the largest federal health IT procurements.
- Legislative Impact: Procurement professionals should anticipate increased oversight, performance requirements, and potential contract termination risks tied to measurable outcomes within two years.
- Program Relaunch: The VA's planned April 2026 relaunch and site expansion indicate ongoing procurement and implementation activities, emphasizing system reliability and interoperability.
- Vendor Considerations: Oracle Health, as the prime contractor, faces heightened scrutiny and must demonstrate compliance with new legislative mandates, affecting subcontractor and partner engagements.
- Strategic Implications: Contractors and industry stakeholders should evaluate their roles in supporting compliance, quality assurance, and system integration efforts aligned with the VA's evolving requirements and congressional mandates.
It has been almost eight years since the first Trump administration imposed this $10 billion sole-source contract on the department. In that time, VA has only managed to deploy the system at six hospitals. The program has been plagued by delays, patient safety concerns, and dramatic impacts on veteransโ access to care, among other issues.
— Rep. Nikki Budzinski
Oracle Health has improved system performance, reliability and usability, including operating at 100% outage-free for 27 of the last 31 months (June 2023 โ December 2025).
— Paul Lawrence, VA Deputy Secretary
Agencies
Department of Veterans Affairs, Veterans Health Administration, U.S. House of Representatives, House Committee on Veteransโ Affairs, U.S. Senate
Vendors
Oracle Health, Oracle Cerner
Contracts
$37 billion
Locations
Sources
- House Bill Targets VA EHRM Program With Performance Benchmarks, Exit Option โ MeriTalk · MeriTalk · Mar 24
- VA Prepares April Relaunch of EHR Program | GovCIO Media & Research · GovCIO Media & Research · Mar 18
- House bill pressures VA to get EHR back on track, or risk contract termination | FedScoop · FedScoop · Mar 19