U.S. Senator Jim Banks says plans are moving forward to replace the aging Roudebush VA Medical Center with a new $2 billion hospital.

Banks, a member of the Senate Armed Services Committee, toured the facility Wednesday and confirmed the project is still on track, countering claims that the Department of Energy (DOGE) had pulled funding for a feasibility study.

Banks said the current facility is outdated and undersized for the roughly 70,000 veterans and dependents it serves each year. He emphasized the importance of building a modern hospital to maintain high-quality care for Indiana veterans.

While VA Secretary Doug Collins has announced plans to cut 80,000 jobs nationwide, Banks said Roudebush has only seen about 20 voluntary retirements so far and does not expect major changes to staffing. He declined to speculate on how the broader workforce reductions might affect local care.

Banks also praised recent efforts to reduce VA bureaucracy, claiming that eliminating certain programs, including DEI initiatives, has already saved the department $17 million.