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Insights · Veterans

Veteran-Directed Care: what agencies should know

Veteran-Directed Care lets veterans who need daily support stay at home and choose who cares for them. Here is how the program works and why it is growing.

I3.NGENUITY Insights · October 2026

Most veterans who need help with daily activities want the same thing: to stay at home. Veteran-Directed Care (VDC) is one of the VA’s most flexible tools for making that possible.

How VDC works

VDC is a self-directed home and community-based services program. Eligible veterans of any age who need a nursing-home level of care receive a flexible budget for services. With the help of a counselor, they decide which services they need and hire their own caregivers, which can include family members, friends, and neighbors.

The VA partners with the national Aging and Disability Network, including Area Agencies on Aging, Aging and Disability Resource Centers, and Centers for Independent Living, to deliver the program locally. These partners provide person-centered counseling and help veterans manage their budgets and paperwork. A financial management services provider handles payroll for the veteran’s workers.

Why it is expanding

The veteran population is aging, and demand for long-term care is rising. In April 2023, a federal executive order on care directed the VA to consider expanding VDC to all 171 VA medical centers, well beyond the original goal of 70.

What it means for agencies and providers

  • Capacity: expansion requires counselors and case managers who understand both aging services and veteran culture.
  • Coordination: success depends on smooth referrals between VA medical centers and local aging network partners.
  • Documentation: self-directed budgets, care plans, and reporting create real administrative load, which is exactly where good systems and AI-assisted documentation help.
  • Caregiver support: family caregivers hired through VDC need training and support to stay well themselves.
VDC puts veterans in charge of their own care. The organizations around them need to make that choice easy to exercise.

Sources: DAV, “VA expands nursing care options as number of older veterans increases” (2024) · ACL No Wrong Door System: Veteran Directed Care

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