President Reagan signs the Department of Veterans Affairs Act, as Secretary of Defense Frank C. Carlucci, Veterans Administration chief Thomas K. Turnage, and others look on at the National Defense University, Fort McNair, on October 25, 1988. (National Archives)
President Reagan signs the Department of Veterans Affairs Act, as Secretary of Defense Frank C. Carlucci, Veterans Administration chief Thomas K. Turnage, and others look on at the National Defense University, Fort McNair, on October 25, 1988. (National Archives)

On the eve of Veterans Day in 1987, President Ronald W. Reagan delivered a surprise announcement to the leaders of the Veterans organizations and members of the Congressional Veterans Affairs Committees he had summoned to the Cabinet Room. He declared he would support legislation elevating the Veterans Administration to a cabinet department. His decision to back the creation of the Department of Veterans Affairs caught his senior advisors equally off-guard. Although a bipartisan bill in the House (H.R. 3471) had attracted 274 cosponsors, Chief of Staff Howard H. Baker, Jr., and other White House officials uniformly opposed the measure. Reagan, however, rejected their counsel. He had campaigned in 1980 on a promise to shrink the size of the federal government, but he was a Veteran himself, having served stateside in the military during World War II. “This is a personal decision that I have thought about for some time,” he explained to the group assembled in the Cabinet Room. Noting that the population of Veterans had increased sixfold since the establishment of the Veterans Administration in 1930, he said “Veterans have always had a strong voice in our government. It’s time to give them the recognition they so rightly deserve.”

Previous attempts to get legislation through Congress raising the VA to cabinet-level status had failed over the decades. The most recent effort, a Senate bill (S. 533) introduced by Army Veteran Strom Thurmond (R-SC) in February 1987, stalled despite drawing 44 Democratic and 28 Republican cosponsors. Thurmond faced resistance within his own party from Republicans who opposed expanding the federal bureaucracy. Reagan’s endorsement of the proposal, however, changed the political calculus. The House bill, put forward by Representative Jack B. Brooks, a Democrat from Texas, on October 13, 1987, sailed through the lower chamber a week after the president’s announcement by a 399-17 vote.

Department of Veterans Affairs seal
Department of Veterans Affairs seal, based on design submitted by David A. Gregory of the Indianapolis VA Medical Center in a VA contest. The Army’s Institute of Heraldry, which manufactures government seals, emblems, and other official insignia, modified the design, adding a cluster of five stars above the eagle to represent the five branches of the U.S. military. (VA)

Passage in the Senate took longer. Supporters of the legislation tried to allay concerns about its impact by noting that it would result in more of an internal reorganization of the existing VA rather than any significant increase in the agency’s size, budget, or scope of authority. The Congressional Budget Office estimated that the cost would be a modest $33 million over five years, with most of the money going to the changing of signs at VA facilities. On July 12, 1988, the Senate voted 84-11 to approve an amended version of the bill. Another three months would pass as the two chambers ironed out their differences over the Senate’s changes and a companion bill reforming the appeals process. On October 21, the Department of Veterans Affairs Act finally reached the president for his signature.

The White House held the bill-signing ceremony four days later at Fort McNair in Washington, D.C., before an audience of U.S. military and government officials, Veterans, and other guests and dignitaries. The ceremony also doubled as a commemoration of the fifth anniversary of the invasion of Grenada. In his speech, Reagan paid tribute to the courage, resourcefulness, and sacrifice of the service members and Veterans who had fought to uphold the nation’s commitment to freedom around the world. After signing the bill into law, he also reflected on the significance of the legislation: “This bill gives those who have borne America’s battles, who have defended the borders of freedom, who’ve protected our Nation’s security in war and in peace, it gives them what they’ve deserved for so long – a seat at the table in our national affairs.” With the stroke of his pen, he raised the Veterans Administration to cabinet rank and turned it into the Department of Veterans Affairs, the fourteenth department within the executive branch and the second largest next to the Department of Defense.

Congress delayed implementation of the law until after the 1988 election to reserve the right of appointing the first VA Secretary to the incoming president. On January 20, 1989, the day he was inaugurated as the 41st president of the United States, George H. W. Bush named Edward J. Derwinski, a World War II Veteran, twelve-term Congressman, and final head of the Veterans Administration, to lead the department. The Senate confirmed his nomination without a dissenting vote. The law itself officially took effect on March 15, 1989. In a nod to tradition, the Department of Veterans Affairs continued to go by the initialism VA, as that designation had been used by Veterans and others for nearly six decades. However, the agency did replace the Veterans Administration seal with a new design selected from more than 150 entries submitted by employees in a VA-wide competition. The winning entry came from David A. Gregory, a medical media production specialist at the Indianapolis VA Medical Center.

View the video of President Ronald Regan’s remarks at Fort McNair on October 25, 1988, and watch as he signs the Department of Veterans Affairs Act (Public Law 100-527). The signing is at the 17:30 mark.

By Barbara Matos, Executive Assistant, Office of Procurement Policy, Systems and Oversight, and Jeffrey Seiken, Ph.D., Historian, Veterans Benefits Administration

Share this story

Published on Oct. 6, 2022

Estimated reading time is 4.6 min.

Related Stories

  • Read Object 86: The Roll of Honor

    History of VA in 100 Objects

    Object 86: The Roll of Honor

    “The following pages are devoted to the memory of those heroes who have given up their lives upon the altar of their country, in defense of the American Union.”

    So opened the preface to the first volume of the Roll of Honor, a compendium of over 300,000 Federal soldiers who died during the Civil War and were interred in national and other cemeteries. The genesis of this 27-volume collection published between 1865 and 1871 can be traced to Quartermaster General Montgomery C. Meigs and the department he oversaw for a remarkable 21 years from 1861 to 1882.

  • Read Object 85: Congressman Claypool’s “$1 Per Day Pension” Ribbon

    History of VA in 100 Objects

    Object 85: Congressman Claypool’s “$1 Per Day Pension” Ribbon

    Founded in 1866 as fraternal organization for Union Veterans, the Grand Army of the Republic (GAR) embraced a new mission in the 1880s: political activism. The GAR formed a pension committee in 1881 for the express purpose of lobbying Congress for more generous pension benefits.

    An artifact from the political wrangling over pensions is now part of the permanent collection of the National VA History Center in Dayton, Ohio. The item is a small pension ribbon displaying the message: “I endorse the $1 per day pension as recommended by the Departments of Ohio and Indiana G.A.R.” The button attached to the ribbon features two American flags and the phrase “saved by the boys of ’61-65.” The back of the ribbon bears the signature of Horatio C. Claypool, a Democratic judge who ran for the seat in Ohio’s eleventh Congressional district in the 1910 mid-term elections.

  • Read Object 84: Gettysburg Address Tablet

    History of VA in 100 Objects

    Object 84: Gettysburg Address Tablet

    President Abraham Lincoln is one of the most revered figures in American history. Rankings of U.S. presidents routinely place him at or near the top of the list. Lincoln is also held in high esteem at VA. His stirring call during his second inaugural address in 1865 to “care for him who shall have borne the battle and for his widow and his orphan” embodies the nation’s promise to all who wear the uniform, a promise VA and its predecessor administrations have kept ever since the Civil War.

    Ever since Lincoln first uttered those memorable words in November 1863, the Gettysburg Address has been linked to our national cemeteries. In 1908, Congress approved a plan to produce a standard Gettysburg Address tablet to be installed in all national cemeteries in time for the centennial of President Lincoln’s birth on February 12, 1909.