In accordance with paragraph 11(a) of rule XXVI of the Standing Rules of the Senate and section 402 of the Congressional Budget Act of 1974, the Committee provides the following cost estimate, prepared by the Congressional Budget Office:
The bill would: Require the Department of Veterans Affairs (VA) to establish a pilot program to award grants to nonprofit entities for the provision of service dogs to veterans Direct VA to provide veterinary insurance for such service dogs Estimated budgetary effects would mainly stem from: Providing grants to nonprofit organizations Funding veterinary insurance for service dogs Bill summary: S. 1441 would require the Department of Veterans Affairs (VA) to establish a pilot program to award grants to nonprofit entities to provide service dogs to eligible veterans over the 2027-2031 period. The bill also would require VA to provide veterinary insurance for those dogs. Estimated Federal cost: The estimated budgetary effects of S. 1441 are shown in Table 1. The costs of the legislation fall within budget function 700 (veterans benefits and services).
Estimated Budget Authority 0 * 2 2 2 3 3 * * * * 9 12 Estimated Outlays 0 * 2 2 2 3 3 * * * * 9 12
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Basis of estimate: For this estimate, CBO assumes that S. 1441 will be enacted near the beginning of fiscal year 2026 and that outlays will follow historical spending patterns for affected programs. Provisions that affect spending subject to appropriation and direct spending: Section 2 of S. 1441 would require VA to establish a five-year pilot program to provide grants to nonprofit entities for the provision of service dogs to eligible veterans beginning in 2027. The program also would require VA to provide veterinary insurance for dogs acquired under the program, including during the period after the pilot program expires. The bill authorizes the appropriation of $10 million annually during the five-year period of the program's operation. CBO expects that the authorized amounts would cover the costs of awarding grants to nonprofit entities and providing veterinary insurance for dogs acquired through the program. Based on information from VA and similar programs, CBO estimates that approximately 1,000 veterans would receive dogs under the program. Under the bill, VA would be required to continue providing veterinary insurance for those dogs after the pilot ends. CBO estimates that the cost of providing insurance coverage over the 2032-2035 period would total $4 million, assuming an average annual cost of $1,100 per dog. In total, CBO estimates that implementing section 2 would cost $54 million over the 2025-2035 period. CBO expects that some of the costs of implementing the bill would be paid from the Toxic Exposures Fund (TEF) established by Public Law 117-168, the Honoring our PACT Act. The TEF is a mandatory appropriation that VA uses to pay for health care, disability claims processing, medical research, and IT modernization that benefit veterans who were exposed to environmental hazards. Additional spending from the TEF would occur if legislation increases the costs of similar activities that benefit veterans with such exposure. Thus, in addition to increasing spending subject to appropriation, enacting section 2 would increase amounts paid from the TEF, which are classified as direct spending. CBO projects that the proportion of costs paid by the TEF will grow over time based on the amount of formerly discretionary appropriations that CBO expects will be provided through the mandatory appropriation as specified in the Honoring our PACT Act.\1\ --------------------------------------------------------------------------- \1\For additional information about estimated spending from the TEF, see Congressional Budget Office, ``Toxic Exposures Fund--January 2025 Baseline'' (January 2025), https://tinyurl.com/465ytckb. --------------------------------------------------------------------------- CBO estimates that over the 2025-2035 period, implementing section 2 would increase spending subject to appropriation by $42 million and direct spending by $12 million. Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 1. Increase in long-term net direct spending and deficits: CBO estimates that enacting S. 1441 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036. CBO estimates that enacting S. 1441 would not increase on- budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036. Mandates: The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. Previous CBO estimate: On August 7, 2025, CBO transmitted a cost estimate for H.R. 2605, the Service Dogs Assisting Veterans Act, as ordered reported by the House Committee on Veterans' Affairs on July 23, 2025. Both H.R. 2605 and S. 1441 would establish a pilot program to provide grants for service dogs and fund veterinary insurance such service dogs. H.R. 2605 includes a provision to extend the reduction in certain pension payments, which would reduce direct spending. S. 1441 does not include such a provision; thus, the net costs of the latter bill are higher. Estimate prepared by: Federal Costs: Noah Callahan; Mandates: Lucy Marret. Estimate reviewed by: David Newman, Chief, Defense, International Affairs, and Veterans' Affairs Cost Estimates Unit; Kathleen FitzGerald, Chief, Public and Private Mandates Unit; Christina Hawley Anthony, Deputy Director of Budget Analysis. Estimate approved by: Phillip L. Swagel, Director, Congressional Budget Office.
REGULATORY IMPACT STATEMENT
In compliance with paragraph 11(b) of rule XXVI of the Standing Rules of the Senate, the Committee has made an evaluation of the regulatory impact of the Committee bill. The Committee finds that the Committee bill would impose regulatory requirements on VA's participating nonprofit partners. It is not expected to adversely affect personal privacy and the paperwork resulting from enactment is expected to be moderate.
TABULATION OF VOTES CAST IN COMMITTEE
In compliance with paragraph 7(b) of rule XXVI of the Standing Rules of the Senate, the following is a tabulation of votes cast in person or by proxy by members of the Committee on Veterans' Affairs at its July 30, 2025, meeting. During this meeting, Chairman Moran called up 23 bills, including S. 1441, to be considered en bloc. The bills were reported favorably by voice vote en bloc.
AGENCY REPORT
On May, 21 2025, Thomas O'Toole, Acting Assistant Under Secretary for Health for Clinical Services at the Veterans Health Administration, U.S. Department of Veterans Affairs, appeared before the Committee and submitted testimony on S. 1441. An excerpt from that testimony relevant to S. 1441 is reprinted below:
statement of mr. thomas o'toole, acting assistant under secretary for health for clinical services at the veteran's health administration, u.s. department of veterans affairs (va)
s. 1441 service dogs assisting veterans act of 2025 (saves act of 2025)
Section 2(a) of this bill would require VA, not later than 24 months after the date of enactment, to establish a 5-year pilot program under which VA would award grants, on a competitive basis, to nonprofit entities to provide service dogs to eligible Veterans. Section 2(b) would provide that, to be eligible to receive a grant, nonprofit entities would have to submit to VA an application at such time, in such a manner, and containing such commitments and information as VA may require. Applications would have to include a proposal for the provision of service dogs to eligible Veterans, including how the entity would communicate with VA to ensure an increasing number of service dogs are provided to Veterans; applicants would also have to include a description of training and services provided by the entity, as well as the qualifications of the entity (including demonstrated experience in training service dogs in compliance with the requirements of the ADA). Under section 2(c), VA would have to award a grant to each non-profit entity for which VA has approved an application. VA and the entity would have to enter into an agreement containing such terms, conditions, and limitations as VA determines appropriate. The maximum grant amount VA could award to a non- profit entity under this section would be $2 million. VA would have to establish intervals of payment for the administration of each grant awarded under this section. Under section 2(d), grantees would have to use the grant amounts to plan, develop, implement, or manage (or any combination thereof) one or more programs that provide service dogs to eligible Veterans and ensures only eligible Veterans are allowed to participate in the program. VA could establish a maximum amount for each grant awarded under this section to cover administrative expenses. VA also could establish other conditions or limitations on the use of grant amounts. Under section 2(e), grantees would have to notify each Veteran that receives a service dog through the grant that the dog is being paid for, in whole or in part, by VA, and they would have to inform such Veterans of the benefits and services available from VA for the Veteran and service dog. Grantees could not charge a fee to a Veteran receiving a service dog through the grant. Under section 2(f), VA would have to provide to each Veteran who receives a service dog through a grant a commercially available veterinary insurance policy for the service dog, and, if VA provides such a veterinary insurance policy to a Veteran, VA would have to continue to provide the policy without regard to the continuation or termination of the pilot program. Under section 2(g), VA could provide training and technical assistance to recipients of grants under this section. Under section 2(h), VA would have to establish oversight and monitoring requirements as appropriate to ensure grants are used appropriately, and VA could take actions as necessary to address any issues identified through the enforcement of such requirements. VA could require each grantee to provide reports or written answers to specific questions, surveys, or questionnaires as VA determines necessary. Section 2(i) would define terms for purposes of this Act. The term ``eligible veteran'' would be defined to mean Veterans under 38 U.S.C. Sec. 101 who, as determined by a physician, have one more of the following disabilities, conditions, or diagnoses: blindness or visual impairment; loss of use of a limb, paralysis, or other significant mobility issue, including mental health mobility; loss of hearing; posttraumatic stress disorder (PTSD); traumatic brain injury (TBI); or any other disability, condition, or diagnosis VA determines, based on medical judgment, that it is optimal for the Veteran to manage the disability, condition, or diagnosis and live independently through the assistance of a service dog. The term ``service dog'' would mean any dog that is individually trained to do work or perform tasks that are for the benefit of a Veteran with a disability, condition, or diagnosis described above and directly related to the disability, condition, or diagnosis of the Veteran. Section 2(j) would authorize to be appropriated $10 million for each of the five consecutive fiscal years following the fiscal year in which the pilot program is established. VA supports this bill, subject to amendments and the availability of appropriations VA provides benefits for service dogs for eligible Veterans who have been diagnosed with a visual, hearing, or substantial mobility impairment (including mental health mobility) when the VA clinical team treating the Veteran for such impairment determines, based upon medical judgment, that it is optimal for the Veteran to manage the impairment and live independently through the assistance of a trained service dog. See 38 C.F.R. Sec. 17.148(b). VA provides a commercially available veterinary insurance policy for service dogs, as well as payments for travel expenses associated with obtaining a dog if the Veteran is eligible for beneficiary travel under 38 U.S.C. Sec. 111 and 38 C.F.R. part 70 and if pre-approved for such benefits. While not involving the provision of service dogs, since February 2022, VA has been implementing the Puppies Assisting Wounded Servicemembers for Veterans Therapy Act (P.L. 117-37), which requires VA to conduct a pilot program to provide canine training to eligible Veterans diagnosed with PTSD as an element of a complementary and integrative health program for such Veterans. Service dogs provide essential support for many Veterans. We appreciate that the bill generally focuses on creating a more direct connection in the legislation between grant funds and the provision of service dogs to eligible Veterans, but we believe this could be clearer. Specifically, in section 2(d), the bill would require grantees to use funds ``to plan, develop, implement, or manage (or any combination thereof) one or more'' programs that provide service dogs to eligible Veterans. Allowing the use of funds to plan a program that provides service dogs, but which ultimately does not provide service dogs, is not an ideal use of funds. We recommend the bill simply state that grantees would use funds to provide service dogs to eligible Veterans. In VA's experience, Veterans can wait between 1 and 3 years between when a dog has been recommended by VA and when a Veteran has been fully paired with a service dog that has graduated training. VA believes the grants provided under this authority could help increase the supply of service dogs to reduce this delay. In any grant program, but particularly in the case of service dog training, it is essential to ensure that funds are properly used. Several provisions in the bill raise concerns. First, VA recommends clearly aligning the definition of service dog under this section with VA's existing definition in regulations. Second, VA is concerned about the list of disabilities that was presented in the bill. Specifically, the inclusion of TBI, for which a Veteran may already otherwise qualify based on having a significant mobility issue, and PTSD, as there is no substantial evidence to date that service dogs provide improvements in functioning and quality of life for Veterans with PTSD as compared to emotional support dogs. VA recommends striking these provisions. We note, similar to the discussion above regarding Veterans with TBI qualifying for a service dog when they have a significant mobility issue, Veterans with PTSD can receive a service dog on the same basis. Further, VA recommends including additional language that would ensure clear authority for the administration of a grant program. Finally, we note that the current bill expands eligibility to all Veterans who meet the requirements of 38 U.S.C. Sec. 101, not just Veterans enrolled in VA health care. This would complicate administration of this program. We also note that this proposal would likely require dedicated staff in a new office to administer this program. VA does not have a cost estimate for this bill.