VA Staffing Cuts Spark Doubt as DOGE Price Wavers

On JAN 25 2026, the DOGE price fell by 0.82% within 24 hours to $0.12307, marking a 0.12% decline over the past week. Despite the short-term drop, the asset has posted a 4.89% gain over one month and a year. The price movement appears to be linked to broader concerns around federal agency restructuring and spending policies, particularly those impacting the Department of Veterans Affairs (VA).

A recent Democratic congressional report has raised alarms about the VA's significant reduction in staffing and healthcare capacity. The agency lost over 40,000 employees in fiscal year 2025, with nearly 90% of those roles tied to healthcare services, including mental health and appointment scheduling. The report attributes the workforce decline to sweeping efficiency initiatives under the Department of Government Efficiency (DOGE), which included hiring freezes, early retirement programs, and reduced hiring caps.

The impact on veterans has been tangible: wait times for new mental health appointments now average 35 days, with some states reporting over 40 days. The VA has also canceled or allowed to expire nearly 16,000 contracts, affecting services such as radiology, disability exams, and suicide prevention programs. These developments have fueled skepticism about the long-term effectiveness of DOGE-driven reforms, with critics arguing that cost-cutting measures have come at the expense of care quality.

The report further highlights that the VA’s efforts to downsize have led to the departure of essential researchers, stalling progress in areas like cancer trials and cutting-edge therapies. While VA leadership has defended the changes as necessary for improving efficiency, lawmakers and veterans alike are questioning whether the agency is prioritizing fiscal efficiency over patient outcomes.

The political fallout from these reforms has intensified in recent months. Congressional leaders have publicly criticized the VA for what they describe as a failure to meet veterans’ needs, while veterans themselves have expressed concerns about declining access to care. One veteran noted that the VA system, which has seen a rise in trust and usage over the past decade, is now struggling to maintain the same level of service amid ongoing cuts.

The implications for DOGE extend beyond the VA. The broader narrative around federal efficiency reforms has sparked debates over the balance between reducing government spending and maintaining public services. Skeptics argue that large-scale workforce reductions risk undermining the very programs they aim to streamline. For investors, these developments highlight the potential regulatory and policy risks associated with DOGE-backed initiatives.

While the price of DOGE has shown resilience over the past month and year, the latest report signals growing unease over the government’s approach to efficiency. As more data emerges on the real-world effects of these reforms, investor sentiment could shift further, especially if the public continues to question the trade-offs between fiscal discipline and service quality.