The DRIVE Act of 2025 amends 38 U.S.C. §111 to require the Department of Veterans Affairs to set its Beneficiary Travel mileage reimbursement at a rate equal to or greater than the General Services Administration (GSA) mileage rate for privately owned vehicles established under 5 U.S.C. §5707(b). The bill replaces the statute’s prior fixed reference to 41.5 cents per mile and ties the VA rate to the GSA-determined federal POV rate.
The bill also adds an operational deadline: when the VA exercises authority to pay mileage allowances, it must ensure mileage claims that are properly submitted are paid within 90 days. Conforming edits adjust subsection references so the statutory text aligns with the new mechanism.
Practically, the bill raises recurring VA payout risk, creates a moving benchmark for reimbursement, and imposes tighter processing timelines on the VA’s benefits operations.
At a Glance
What It Does
Rewrites 38 U.S.C. §111 to make VA mileage reimbursements at least equal to the GSA privately owned vehicle rate (per 5 U.S.C. §5707(b)) and mandates payment of properly submitted mileage allowances within 90 days.
Who It Affects
Directly affects veterans who travel for VA care and the VA’s Beneficiary Travel program; it also impacts VA benefits processors, the Department’s budget, and entities that help transport veterans (rideshare, taxis, volunteer drivers).
Why It Matters
Tying VA reimbursements to the GSA rate shifts payments to a variable, administratively updated benchmark and could materially increase VA outlays; the 90-day payment requirement creates operational deadlines that may force process and staffing changes.
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What This Bill Actually Does
The DRIVE Act revises the statutory basis for VA Beneficiary Travel mileage so the VA no longer uses a fixed cents-per-mile figure in law. Instead, it requires the Secretary of Veterans Affairs to set the mileage reimbursement at a level equal to or above the rate the Administrator of General Services prescribes for use of privately owned vehicles by federal employees.
That ties the VA rate to the GSA methodology and updates whenever the GSA rate changes, rather than waiting for a separate regulatory or statutory adjustment within VA rules.
On claim administration, the bill adds a clear timing rule: when the VA exercises authority to make payments for beneficiary travel, it must take the actions necessary to ensure a mileage-based allowance is paid within 90 days after a properly submitted request. The text does not enumerate what makes a submission “proper,” so the VA will need to define required documentation, electronic or paper channels, and validation checks in implementing regulations or guidance.The bill also carries narrow drafting fixes: it removes the statutory parenthetical that formerly specified “(at a rate of 41.5 cents per mile)” and replaces references so subsection citations and cross-references match the new language.
Those conforming changes are mechanical but important because they eliminate a statutory floor tied to an outdated numeric amount and replace it with a dynamic rule tied to a non-VA agency’s rate-setting.Together, the two main changes create two practical pressures. First, the VA’s budget for beneficiary travel becomes more volatile because the GSA POV rate can rise or fall with fuel prices and administrative updates.
Second, meeting a 90-day payment deadline will force operational changes at VA benefits processing centers, including clearer claim intake standards, potentially faster validation, and possibly additional staffing or system upgrades to reduce backlog and avoid missed deadlines.
The Five Things You Need to Know
The bill replaces the numerical mileage figure in 38 U.S.C. §111(a) (formerly “41.5 cents per mile”) with a rate “determined in accordance with subsection (g),” effectively removing the statutory fixed amount.
Section 111(g) is rewritten to require the Secretary to set the VA mileage rate equal to or greater than the GSA privately owned vehicle reimbursement rate as prescribed under 5 U.S.C. §5707(b).
The bill adds a new 38 U.S.C. §111(b)(5) requiring the VA to ensure mileage allowances are paid no later than 90 days after a properly submitted request is received.
Conforming edits revise subsection cross-references in §111 to align with the new subsection (g)-based rate mechanism and remove language that depended on the old fixed cents-per-mile figure.
The statute ties VA reimbursement to an external, administratively updated benchmark (the GSA POV rate) rather than embedding a static dollar amount, making VA payouts responsive to federal travel-rate adjustments.
Section-by-Section Breakdown
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Short title — DRIVE Act of 2025
This short section names the bill the Driver Reimbursement Increase for Veteran Equity Act of 2025 (DRIVE Act of 2025). It has no operational effect but establishes the label under which the amendments to 38 U.S.C. §111 will be cited.
Minimum payment amount — ties VA rate to GSA
Subsection (a) revises §111(g) to require the VA mileage rate be equal to or greater than the mileage reimbursement rate for use of privately owned vehicles by federal employees as set by the Administrator of General Services under 5 U.S.C. §5707(b). Practically, this delegates the rate benchmark to GSA and obligates the VA to adopt at least that floor. The provision transfers rate-setting dependence off VA’s internal processes and makes the reimbursement responsive to the federally prescribed POV rate.
Timely processing — 90-day payment deadline for mileage claims
This addition creates a new paragraph in §111(b) directing the Secretary to ensure that any mileage allowance paid under the subsection is disbursed within 90 days of a properly submitted claim. The statute does not define what documentation makes a request ‘properly submitted,’ so the implementation question will fall to VA regulation and internal policy. The 90-day deadline is operationally binding in statute but contains no penalty or enforcement mechanism within the bill text.
Conforming amendments — remove fixed per-mile figure and adjust cross-references
This part edits existing language in §111: it strikes the parenthetical stating the rate ‘(at a rate of 41.5 cents per mile)’ and replaces it with a dynamic reference tied to subsection (g). It also removes an outdated cross-reference in subsection (b)(1). These are drafting changes that remove a static statutory amount and clear potential conflicts between the old language and the new GSA-linked mechanism.
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Explore Veterans in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Veterans who travel for VA medical care — They receive higher or more frequently adjusted mileage reimbursements when the GSA POV rate rises, reducing out-of-pocket travel costs, especially for long or frequent trips.
- Rural and remote veterans — Because these veterans typically drive farther for care, a mileage rate tied to current federal POV levels more directly offsets their higher travel expenses.
- Volunteer drivers and non-profit transport providers — Higher and regularly updated rates improve cost recovery for groups that provide rides to veterans, making long-distance volunteer trips more sustainable.
- Veteran service organizations (VSOs) and advocates — Fewer disputes over outdated statutory rates should reduce casework to obtain fair reimbursement; faster payments may also reduce advocacy caseloads related to delayed reimbursements.
Who Bears the Cost
- Department of Veterans Affairs — The VA faces higher and less-predictable outlays for beneficiary travel when the GSA rate increases and must allocate budgetary and operational resources to meet the 90-day payment timeline.
- Congress/Appropriations Committees — Increased VA reimbursements may require higher appropriations or re-prioritization within the VA budget, placing pressure on appropriators.
- VA benefits processors and claims systems — Meeting a statutory 90-day deadline could require additional staffing, updated IT systems, or process redesign to reduce backlog and validate claims efficiently.
- Federal taxpayers — If the GSA POV rate rises substantially and Congress does not offset costs elsewhere, taxpayers ultimately fund the VA’s additional reimbursements.
Key Issues
The Core Tension
The bill balances two legitimate goals — ensuring veterans receive fair, current reimbursement for travel and keeping program costs and administration tractable — but it forces a trade-off: equating VA mileage to a dynamic federal benchmark improves equity for veterans when rates rise, yet it creates fiscal unpredictability and operational burdens for the VA that may degrade service or require new appropriations.
The most immediate implementation question is timing and definition: the statute mandates payment within 90 days of a “properly submitted” request but does not define that term. VA will need to publish standards for acceptable documentation, electronic submission channels, and verification procedures; those standards will determine how feasible the 90-day window is and how often claims are denied for technical defects.
Absent clear regulatory definitions, veterans and their advocates may see uneven application across VA regional offices and extended litigation over what counts as a proper submission.
Tying the VA rate to the GSA POV rate solves the problem of an outdated fixed statutory figure but introduces budgetary volatility. The GSA rate moves with fuel prices and federal policy and can be updated administratively.
That makes VA obligations more responsive to market conditions but also shifts the burden of absorbing sudden increases to the VA and, ultimately, to Congress for funding. The bill contains no transition language, funding authorization, or remediation for preexisting unpaid claims, leaving open whether changes apply prospectively only and how retroactive adjustments (if any) will be handled.
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