The Department of Veterans Affairs (VA) is moving ahead with nearly $600 million in second-quarter fiscal 2026 infrastructure awards as part of a broader $5 billion effort to modernize health care facilities nationwide, creating near-term construction and renovation opportunities across the agency’s medical network.
VA announced $593 million in Q2 non-recurring maintenance, or NRM, awards for facility modernization projects across its system of hospitals, outpatient clinics and support facilities. The projects are part of the department’s fiscal 2026 infrastructure investment plan, which totals nearly $5 billion for facility modernization, maintenance and electronic health record modernization support.
The Q2 awards fund hundreds of projects aimed at improving facility reliability, patient safety and clinical capacity. Work includes HVAC replacements, electrical and emergency power upgrades, boiler and steam system repairs, roof and structural improvements, sterile processing renovations, operating room upgrades and imaging equipment site preparation at VA medical centers nationwide. The projects are intended to address aging infrastructure while helping facilities meet evolving care delivery and technology requirements.
A significant share of the funding supports infrastructure tied to the VA’s electronic health record modernization program, with projects focused on data center upgrades, network infrastructure improvements and facility modifications needed to support system deployment at multiple medical centers. Additional awards target compliance-related improvements, including pharmacy upgrades to meet sterile compounding standards, fire protection improvements and accessibility corrections.
Q2 awards also include larger clinical modernization efforts such as hybrid operating room construction, surgical suite renovations, dialysis unit upgrades and expanded sterile processing capacity. Other projects address deferred maintenance issues that could affect operations if left unresolved, including water system repairs, sewer line replacements and emergency structural remediation.
VA officials said the investments are designed to ensure veterans have access to safe, modern facilities while extending the useful life of existing infrastructure. The work aligns with the department’s broader effort to upgrade its health care system through targeted capital improvements rather than large-scale replacement construction.
For contractors, designers and health care construction firms, the Q2 awards suggest more project opportunities could emerge in the coming months as work moves into design and construction. Much of the work involves renovation and systems modernization at active medical campuses, creating opportunities for firms with experience in phased construction, health care compliance requirements and occupied-facility delivery.
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