S. 3992, the Joint Medical Facilities Fund Act of 2026, creates a formal funding mechanism that allows the Defense Department and Veterans Affairs to jointly finance combined medical facilities they operate together. The bill establishes a Joint Medical Facility Fund where both departments can transfer appropriated funds and medical care collections using a jointly developed methodology based on each facility's costs and workload. The fund's money can be used for facility operations, equipment, maintenance, and minor construction at designated combined facilities, with amounts generally available for one fiscal year (with up to 2 percent carrying over to a second year). The two departments must establish an executive agreement to manage the fund and implement a financial reconciliation process so each can track its contributions. Within 180 days of enactment, the Defense and Veterans Affairs secretaries must report to Congress identifying which medical facilities should be designated as combined federal facilities eligible to use the fund.
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