President Barack Obama is signing a bill into law aimed at revamping the Department of Veterans Affairs.
The $16.3 billion measure includes $10 billion in emergency spending to pay for private care.
The private care fund would be for qualifying veterans who can't get timely appointments at VA hospitals or clinics, or who live more than 40 miles from a facility.
"No veteran should have to wait to receive the benefits they have earned," White House spokesman Josh Earnst said, adding that the VA has taken "aggressive steps" recently to address the health care system's problems.
The legislation includes $5 billion for hiring more doctors, nurses, and other medical staff and $1.3 billion to open new VA clinics across the country.
The new law also makes it easier to fire senior VA executives for mismanagement.