New bill pushes VA to examine how blockchain can enhance its work

The Department of Veterans Affairs should examine how blockchain technology can be used to improve the benefits and services that it provides to veterans, according to a legislative proposal introduced on Tuesday. 

The bill from Rep. Nancy Mace, R-S.C., would direct VA to “conduct a comprehensive study on the feasibility, potential benefits and risks associated with using distributed ledger technology across various programs and services.”

Distributed ledger technology, including blockchain, is used to secure and track information by storing data across different computers and maintaining a log of its use. 

According to the text of the legislation, which Mace’s office shared exclusively with Nextgov/FCW ahead of its public release, blockchain “could significantly improve the allocation of benefits, management of insurance programs and maintenance of records within the Department of Veterans Affairs.”

"We need to bring the federal government into the 21st century,” Mace said in a statement. “This bill will open the door to research on improving outdated systems that fail our veterans because we owe it to them to use every tool at our disposal to improve their lives."

Within one year of the legislation’s enactment, VA would be required to submit a report to the House and Senate Veterans’ Affairs committees detailing its findings, as well as the identified benefits and risks of using the technology. 

The mandated review would be required to include information on how the department’s use of blockchain could enhance the way benefits decisions are administered, improve the management and security of veterans’ personal data, streamline the insurance claim process and “increase transparency and accountability in the delivery of services.”

VA has researched the potential benefits of using distributed ledger technology, with the department issuing a request for information in November 2021 seeking input from contractors about how blockchain could be leveraged, in part, to optimize its supply chains and “secure data sharing across institutions.”

VA’s National Artificial Intelligence Institute has also evaluated the use of blockchain, with three of the use cases tested during its 2021 AI technology sprint focused on examining its capabilities.

Mace previously introduced legislation in May that would direct Customs and Border Protection to create a public blockchain platform to store and share data collected at U.S. borders. 

Lawmakers have also proposed additional measures that would direct VA to consider adopting other modernized technologies to enhance veteran services. 

Rep. David Valadao, R-Calif., introduced legislation in June that would direct the department to report to lawmakers on how it plans to expand its use of “certain automation tools” to process veterans’ benefits claims. The House Veterans’ Affairs Subcommittee on Disability Assistance and Memorial Affairs favorably advanced the congressman’s bill during a July 23 markup.