CHIP-IN for Veterans Act
Communities Helping Invest through Property and Improvements Needed for Veterans Act of 2016
Background
The CHIP-IN for Veterans Act (Public Law 114-294) allows the Department to accept up to five donations from non-federal entities. These donations can include real properties with existing facilities or new facilities built by the donors. The authority to accept donations is extended to December 16, 2026, by Public Law 117-42. The James M. Inhofe NDAA for Fiscal Year 2023 (Public Law 117-263) expanded funding options for the VA and allowed for adjustments in CHIP-IN agreements to account for inflation.
CHIP-IN is a program for philanthropists to help reduce VA’s priority list for capital investment projects. Donors manage the design and construction of facilities according to VA standards. This process leads to the donation of completed facilities to VA at no cost. CHIP-IN does not generate revenue.
Requirements
Eligibility
VA may accept a donation under CHIP-IN only when one of the following conditions is met:
- Funds have been previously appropriated for the VA facility project, or are available from the Major Construction or Minor Construction appropriations.
- The property meets a VA Strategic Capital Investment Planning (SCIP) process need and is included on the SCIP priority list in the most recent budget submission.
Donors
To participate in the program, donors must:
- Donate the necessary property, improvements, goods, or services for the VA facility project at no extra cost to the federal government.
- Conduct all necessary environmental and historic preservation due diligence and comply with all local zoning requirements (except for federally required studies and consultations).
- Obtain all permits required in connection with the construction of the facility and use construction standards required by VA when designing and building the facility.
- Enter into a formal agreement with VA that defines the project scope, funding, design and construction responsibilities, and schedule.
The Two Donation Models
Model 1: With VA Funding
This process applies when funds have already been allocated but not yet authorized, or when there are available amounts in the Major or Minor Construction accounts. The donor is responsible for providing any remaining balance needed for the project. The total donation must be sufficient to fully complete the facility without incurring any additional costs for the federal government.
Model 2: Without VA Funding
The donor provides a facility or land, or both, to the federal government at no cost. The project must fulfill a genuine capital need for the VA, be included in the long-range capital planning process, and be listed as a priority on the SCIP in the most recent VA budget submission.
Eligible Donors
Any non-federal entity may submit a proposal under CHIP-IN, including:
- State or local governments
- Non-profit organizations (501(c)(3))
- Limited liability companies
- Private corporations
- Foundations
- Donor groups or consortia
What Can Be Donated
Donors may contribute:
- Any project on VA’s Strategic Capital Investment Planning list included in the most recent VA Budget Request
- A site with a facility to be constructed by the donor
- A facility constructed by the donor on VA-owned land
Donations may include land and buildings, new construction, or renovation of existing facilities.
The CHIP-IN Process
- Project Identification: Donor identifies a VA capital need from the SCIP priority list or a project with appropriated funding.
- Proposal Submission: Donor submits a formal proposal to VA. VA reviews the proposal for alignment with capital needs.
- Capital Investment Evaluation: VA conducts internal reviews covering engineering, cost analysis, and legal sufficiency, and compares the donation to other capital options.
- Agreement and Approvals: If approved, the donor and VA execute a formal agreement defining roles, responsibilities, standards, and timelines.
- Design and Construction: The donor manages design and construction to VA standards. VA oversees the project and participates in reviews to ensure compliance.
- Transfer and Acceptance: Upon completion and inspection, the facility is unconditionally donated to VA for Veteran services.
What CHIP-IN is NOT
CHIP-IN is frequently misunderstood. The following clarifications apply:
- Not a Public-Private Partnership (P3). CHIP-IN is a donation authority, not a revenue-sharing or profit-sharing agreement under 38 U.S.C. § 8153.
- Not a revenue-generating investment. CHIP-IN does not offer financial return, lease payments, or revenue-sharing to donors. The donation is unconditional.
- Not a VA solicitation. VA cannot solicit under CHIP-IN. The donor must initiate the proposal.
- Not a leaseback arrangement. VA does not lease the facility from the donor or reimburse rent.
- Not a traditional VA gift. CHIP-IN donations are capital-focused and require full project delivery, unlike standard donations of furniture or equipment.
Completed and Active Projects
VA is authorized to accept up to five CHIP-IN donations. Two projects have been completed or are underway.
Omaha, NE – Ambulatory Care Center (Completed)
The Omaha Ambulatory Care Center is a 157,000 square foot facility that offers primary care, radiology, and outpatient surgery services. The total cost of the project was $86 million, with the VA contributing $56 million from a 2011 budget and a donor group providing $30 million. The project finished in Fall 2020. CHIP-IN allowed the VA to combine public and private funds to buy land and build the facility, which was not possible before due to existing laws. This approach also helped reduce the time from design to when the first patient was seen.
Tulsa, OK – Inpatient Facility (Pending Activation)
The Tulsa Inpatient Facility is a 325,000 square foot building with 58 beds for medical, surgical, and rehabilitation services. It is located in Tulsa, Oklahoma, and supports the Muskogee, OK VA Medical Center. The Oklahoma State University (OSU) A&M Board of Regents and the Anne and Henry Zarrow Foundation (VHiT LLC) contributed $20 million in cash, as well as access to a nearby parking garage built by OSU and the City of Tulsa. They also provided a site with two buildings that were renovated to meet the VA Medical Center’s needs. The VA contributed a total of $156.4 million across the fiscal years 2021, 2023, and 2024. Construction is complete, and the facility is awaiting activation. The CHIP-IN structure helped donor contributions support the VA’s limited funding and deliver a necessary inpatient facility to serve the growing population in the Tulsa area.
Remaining Pilot Opportunities
Three pilot project opportunities remain available under the CHIP-IN program. Eligible projects include any that are prioritized by SCIP (Strategic Capital Investment Planning) and can be supported through construction-related CHIP-IN donations. Similar to the Omaha and Tulsa initiatives, SCIP outlines the capital requirements for the VA, enabling donors to submit proposals to help meet these needs at VA Medical Centers. Currently, the VA has not received any additional proposals for CHIP-IN consideration.
The SCIP priority project list is published annually in the VA Budget Request (Volume 4, Long Range Capital Plan). Interested parties should review this list to identify potential opportunities before submitting a proposal.
Congressional Reporting
The Government Accountability Office is required to report to Congress, at least biennially, on the donation arrangements entered into under the pilot program.
Additional Information
For questions related to CHIP-IN program, or to inquire about submitting a proposal, please contact the Office of Construction and Facilities Management, Office of Real Property at VA_CHIPIN_ProgMgr@va.gov