H.R. 6599: Leasing and Infrastructure Act of 2025

This bill, titled the Leasing and Infrastructure Act of 2025, proposes several changes to the way the U.S. Department of Veterans Affairs (VA) manages leases for major medical facilities. The key features of the bill include:

Independent Leasing Authority

The bill grants the Secretary of Veterans Affairs the authority to enter into leases for major medical facilities without needing approval from the General Services Administration, provided certain conditions are met. Specifically, leases must:

• Be approved by the Committees on Veterans’ Affairs of both the House and Senate.
• Be accompanied by a prospectus submitted to the Committee on Transportation and Infrastructure of the House and the Committee on Environment and Public Works of the Senate.

Lease Duration and Terms

The firm term of any lease may not exceed 20 years. Extensions beyond this term require either authorization in the prospectus or approval from Congress.

Veterans Leasing Fund

The bill establishes a new revolving fund known as the Veterans Leasing Fund, which will be used to finance the cost of leases, including payments for rent, taxes, and operating costs. This fund will consist of appropriated amounts intended for leasing purposes, ensuring financial resources are available for lease operations.

Cost Estimation Requirements

The Secretary will be required to provide detailed market-based cost estimates for proposed leases. These estimates must include:

• Local land values.
• Construction costs.
• Other related expenses determined relevant for leasing.

If cost projections exceed 10% of approved estimates or any congressional budget authority, the Secretary must notify relevant Congressional committees.

Procurement Efficiency

The bill requires that leases should ideally be awarded within one year after the solicitation issuance. The Secretary must revise internal procedures to avoid delays and seek to ensure that sufficient funds are in place before soliciting leases.

Reimbursement for Delays

If a lease is not awarded within one year, the Secretary is mandated to reimburse prospective lessors for certain costs incurred due to the delay, calculated at a specific rate based on land acquisition proposals.

Design Guidelines and Risk Mitigation

The Secretary is tasked with revising design guidelines for medical facilities every five years in consultation with experts in the field. The bill allows for the inclusion of terms in lease agreements to help mitigate risk to the Department, such as options for self-insurance and structuring leases in alignment with commercial market practices.

Documentation Consolidation

The Secretary must consolidate the documentation required for lease decisions into a single decision memorandum that includes justification, cost estimates, and other necessary information for approval and Congressional submission.

Authorization of Appropriations

The bill authorizes the appropriation of funds to support the newly established Veterans Leasing Fund and outlines the deposits that will be made into this fund for executing leases.

Report to Congress

Lastly, the Secretary is required to submit annual reports detailing lease awards, timelines, and justifications for any delays in awarding leases.

Relevant Companies

• Viatris (VTRS) - They might be involved in providing pharmaceutical services or facilities related to veteran healthcare.
• HCA Healthcare (HCA) - As a large healthcare provider, they could be involved in managing or partnering on the leasing of medical facilities funded by this bill.