Nearly $2 billion in funding to replace the aging Richard L. Roudebush Veterans' Administration Medical Center is included in President Donald Trump’s proposed 2027 federal budget.
The budget proposal includes $1.98 billion to support the replacement of the existing medical center with an 840,000-square-foot tower that would fulfill acute care requirements, multi-specialty clinic needs and primary care services.
The budget proposal, which must be passed before Sept. 30, calls the new Indianapolis hospital project “VA’s top major construction priority.”
Mark Turney, director of public affairs for the Roudebush VA Medical Center, said a location has not yet been selected for the new hospital.
U.S. Sen. Jim Banks, R-Indiana, has pushed for a new VA hospital, citing electrical problems and other infrastructure deficiencies at the Roudebush VA Medical Center.
“This is more great news for Hoosier veterans,” Banks said in a statement. “I’m proud to have led the fight for this project and funding for the Indianapolis VA medical center. “I will continue working with President Trump and [VA] Secretary [Douglas] Collins to deliver results for veterans in Indiana.”
U.S. Sen. Todd Young, R-Indiana, also praised the inclusion of a new VA hospital in the proposed budget.
“The President’s FY 2027 budget includes a request for a much-needed replacement for the Indianapolis VA facility,” Young wrote in a post on the social media site X, formerly Twitter. “This has been a priority for me and members of the Indiana delegation, and it will provide much needed upgrades and improve care for our Hoosier veterans. I applaud @POTUS and @SecVetAffairs for making this a priority.”
Banks is a U.S. Navy Reserve veteran, while Young served in the U.S. Marine Corps.
Gov. Mike Braun said the “state’s strong partnership with President Trump is delivering real results for our veterans.”
“Through collaboration with Sen. Banks and Sen. Young, we have secured a massive investment for a modern, state-of-the-art medical center that will provide the high-quality care our veterans have earned and deserve,” Braun said in a written statement.
The Roudebush VA Medical Center, 1481 W. 10th St., was originally constructed in 1932 and has had additions built over the years. The 209-bed hospital provides services to nearly 70,000 veterans and receives referrals from VA facilities in Fort Wayne, Marion and Danville, Illinois.
The hospital provides veterans with acute inpatient medical, surgical, psychiatric, neurological, and rehabilitation care, along with primary and specialized outpatient services. Its services also include comprehensive cardiac care, radiation oncology treatment and community-based extended care.
The $1.98 billion budgeted for the new hospital is less than half the amount being spent on Indiana University Health’s planned $4.3 billion, 864-room downtown hospital complex, which is about 60% complete and on schedule to open in late 2027.
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