Bipartisan INNOVATE Act Would Streamline VA Healthcare Partnerships

Representatives Morgan McGarvey of Kentucky and Morgan Luttrell of Texas introduced the bipartisan Innovation for VA Technology and Entrepreneurship (INNOVATE) Act on November 11, 2026. The proposal aims to reduce administrative barriers to healthcare innovation at the U.S. Department of Veterans Affairs (VA), including by providing faster ways to partner with private-sector innovators, prioritizing collaboration with veteran-owned small businesses, and establishing an Office of Innovation within the Veterans Health Administration (VHA). The proposal addresses the VA’s ability to develop and implement treatments and technologies for veterans, not a specific acquisition or currently open procurement opportunity.

The bill’s rationale is tied to the scale and demands of VA healthcare. According to the source, the VA is the country’s largest integrated healthcare system and serves more than 9 million veterans. Its public-private partnerships could help develop new treatments, but the agency may take months or even years to partner with outside innovators because of what the bill’s sponsors describe as outdated bureaucratic hurdles. The legislation would seek to provide VA with fast-track contracting tools and capabilities similar to those already used by the Department of Defense, enabling quicker collaboration with startups, researchers, and the broader healthcare industry.

For contractors, the main potential implication is a future change in how VA identifies, engages, and works with healthcare innovators if Congress advances and enacts the proposal. The bill would prioritize veteran-owned small businesses and support solutions “made by veterans, for veterans,” from concept through implementation. Businesses developing healthcare technology, clinical innovations, or treatments relevant to veteran care may therefore have reason to track the bill’s progress and assess their capabilities. However, the source identifies no solicitation, contract value, submission deadline, or immediate requirement to respond.

The proposed VHA Office of Innovation could also affect the organization and coordination of future innovation activity within VA. McGarvey characterized the bill as giving the department flexibility and agency to discover new treatments, comparing the intended role to DARPA’s innovation function for the Defense Department. Luttrell likewise argued that innovative treatments should not be held up by years of red tape before reaching veterans. These statements explain the sponsors’ objectives; they do not establish that the proposed authorities or office are already in effect. For business development teams, the appropriate near-term response is legislative monitoring and market research, while continuing to treat existing VA opportunities under their current acquisition terms.

• Morgan McGarvey and Morgan Luttrell introduced the bipartisan INNOVATE Act on November 11, 2026.
• The bill would provide the VA with faster partnership pathways and fast-track contracting tools modeled on capabilities already used by the Department of Defense.
• The proposed authorities are intended to facilitate collaboration with startups, researchers, and the broader healthcare industry.
• The proposal would prioritize collaboration with veteran-owned small businesses and support veteran-centered solutions from concept to implementation.
• The legislation would establish an Office of Innovation within the Veterans Health Administration.
• The source says VA serves more than 9 million veterans as the nation’s largest integrated healthcare system.
• Sponsors say current partnership processes can take months or years, creating delays in developing treatments and technology for veterans.
• McGarvey said the bill would help VA “discover the newest treatments” and keep pace with veterans’ changing needs; Luttrell urged passage to reduce delays caused by red tape.
• The measure is proposed legislation, not an active solicitation, award, or contracting requirement; no contract value or response deadline is provided.
• Contractors should monitor the bill’s legislative progress and distinguish possible future changes from current VA procurement opportunities.