# Congressional Committee Moves to Subpoena Oracle Leaders Over VA Health Contract Expansion
The House Veterans Affairs Committee has taken the extraordinary step of voting unanimously to issue subpoenas for Oracle Chairman Larry Ellison and CEO Mike Sicilia, aiming to compel their testimony regarding a dramatic cost escalation in the Department of Veterans Affairs’ electronic health records modernization program.
The decision followed Oracle’s abrupt withdrawal from a scheduled oversight hearing, which the committee had been convening to scrutinize a contract extension worth as much as $16.9 billion — pushing the total value of the electronic health record management program to approximately $27 billion.
## Why the Committee Is Taking Action
Rep. Maxine Dexter, the Democrat from Oregon who introduced the subpoena motion, voiced frustration over Oracle’s refusal to engage with lawmakers. “There are plenty of red flags to raise concern,” Dexter stated during the hearing. “A $17 billion no-bid contract extension has been given to a company that our President invests in, whose founder has contributed heavily to our President, and that company has a terrible record of past performance using taxpayer dollars.”
Dexter emphasized that congressional oversight is essential to ensuring that veterans receive the care they were promised and that taxpayer money is spent responsibly. She noted that Oracle has still not provided a complete and comprehensive cost estimate for the expanded contract, and it remains unclear whether the additional funds already committed are being used effectively.
## Oracle’s Withdrawal From Oversight Hearing
The subpoena effort comes after the committee’s ranking member, Rep. Mark Takano of California, formally invited Oracle to testify on August 20. The company initially accepted the invitation on August 26, only to pull out a day later, citing “time constraints and the two panel structure” as the reason.
Takano expressed deep skepticism about Oracle’s reasoning, particularly after reviewing a public statement from Michael Cecilia, Oracle Health’s CEO, in which Cecilia suggested that Congress should start by questioning both the VA and Oracle about the program. Takano pointed out that when Oracle testified before the committee in June of 2022, its chief executive made a markedly different claim — stating that Oracle was “prepared to bear those costs” if cost overruns occurred.
“Oracle was prepared to bear those costs if there were cost overruns. What has changed?” Takano asked. “Why does Oracle need $17 billion more to get the job done when this program has already dragged on for eight years? These things do not add up.”
## Lawmakers Demand Answers on Cost Overruns
The hearing delved into why the original contract, initially valued at roughly $10 billion, ballooned so dramatically. VA Deputy Secretary Paul Lawrence struggled to provide clear explanations for the increase.
Rep. Morgan Luttrell, a Republican from Texas, pressed Lawrence for details about discussions the VA had with Oracle regarding the additional funding. Lawrence admitted he could not provide the specific information Luttrell was seeking.
Luttrell then raised a pointed comparison, citing Oracle’s recently reported record Q4 fiscal 2026 results, which showed a net profit of $17 billion, total revenue of $19 billion, and a 21 percent year-over-year increase in earnings per share. “If the CEO of Oracle said that they were willing to eat the cost on the EHRM contract, why is the taxpayer spending an extra $17 billion?” Luttrell asked.
Lawrence attempted to clarify that the $17 billion was not necessarily going entirely to Oracle. He explained that the VA had requested a full deployment proposal from Oracle covering costs through 2031, including software licensing, training, and other services. The contract’s original ceiling was expiring, meaning the VA would have had no legal framework to continue doing business with Oracle without an extension. Lawrence also noted that the contract operates under a time-and-materials structure, meaning each task would be individually negotiated, and the $17 billion represents the maximum potential spend rather than a guaranteed amount.
Lawrence stated that the entire rollout of the electronic health records modernization and its sustainment phase is projected to cost approximately $48 billion. He expressed confidence that no additional funding would be required from Congress beyond the amounts already authorized.
## Concerns Over Transparency and Accountability
Committee Chairman Rep. Mike Bost, an Illinois Republican, questioned whether Lawrence was confident the $17 billion would be sufficient to complete the rollout. Lawrence responded with confidence, stating that spending had tracked exactly as planned since he took office at the end of March and that deployments were following the agreed-upon schedule.
However, Bost, along with other lawmakers and the Government Accountability Office, reiterated that the VA still needs to provide a full lifecycle cost estimate. Such an estimate should encompass the program’s historical spending, its full operating and sustainment costs, and an assessment of future financial risk.
Dr. Neil Evans, the program executive director for VA’s Electronic Health Record Modernization Integrations Office, disclosed that the VA had provided GAO and lawmakers with a master schedule for deployments through 2031 back in September. He added that VA is currently building out a full integrated master schedule covering all 26 sites across 11 active deployment waves, and he anticipates sharing dashboards and detailed views with GAO within the next month or two.
## What’s at Stake for Veterans
At the heart of this controversy is a fundamental question about accountability. The VA’s electronic health record modernization is one of the largest and most consequential IT programs in the federal government. Veterans across the country depend on this system for access to medical records, appointments, prescriptions, and seamless care coordination between VA facilities.
When a contractor refuses to answer questions before Congress about a nearly $17 billion cost increase on an already years-delayed program, lawmakers argue that it undermines the public trust and the government’s ability to fulfill its obligations to those who served.
The subpoenas represent a significant escalation in congressional oversight, signaling that committee members are prepared to use every tool available to get to the bottom of the contract’s spiraling costs and uncertain timeline.
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## Frequently Asked Questions (FAQ)
**Q: Why is the House Veterans Affairs Committee subpoenaing Oracle’s leaders?**
A: The committee voted unanimously to subpoena Oracle Chairman Larry Ellison and CEO Mike Sicilia because Oracle refused to testify at a scheduled oversight hearing about a $16.9 billion increase to the VA’s electronic health record management contract. Lawmakers want answers about the ballooning costs, the lack of a complete cost estimate, and the overall performance of the program.
**Q: What was the original value of the VA-Oracle contract, and what is it now?**
A: The contract was originally valued at approximately $10 billion. The proposed extension would add $16.9 billion, bringing the total to roughly $27 billion. The full lifecycle cost of the program, including sustainment, is projected at approximately $48 billion.
**Q: Why did Oracle pull out of the hearing?**
A: Oracle initially accepted the invitation to testify on August 26 but withdrew the following day, citing “time constraints and the two panel structure.” The committee was unsatisfied with this explanation, particularly given that Oracle had testified before in June 2022.
**Q: What are the concerns about Oracle’s political connections?**
A: Lawmakers raised concerns that Oracle received a no-bid contract extension from a department led by officials appointed by a president who invests in the company and whose founder has contributed heavily to the president’s campaigns. These connections have fueled questions about whether the contracting process was fair and transparent.
**Q: Did Oracle ever agree to cover cost overruns?**
A: Yes. When Oracle testified in June 2022, its CEO stated that the company was “prepared to bear those costs” if there were cost overruns. Lawmakers have pointed out this as a stark contrast to the current situation, where taxpayers are now being asked to absorb the additional $17 billion.
**Q: What is the Government Accountability Office’s role in this?**
A: The GAO has repeatedly called on the VA to provide a comprehensive lifecycle cost estimate for the program, including historical costs, full operating and sustainment expenses, and future risk assessments. Lawmakers are aligned with the GAO’s concerns.
**Q: What happens next if Oracle still refuses to testify?**
A: The subpoenas represent a formal legal mechanism to compel testimony. If Oracle continues to refuse, the committee may pursue enforcement actions through the House of Representatives, which could include contempt proceedings.
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## Conclusion
The House Veterans Affairs Committee’s decision to subpoena Oracle’s top executives marks a significant moment in congressional oversight of a high-profile federal technology program. With billions of taxpayer dollars at stake and veterans’ healthcare on the line, lawmakers are signaling that they will not allow opacity to stand in the way of accountability. The subpoenas put the pressure squarely on Oracle and the VA to provide the transparency and detailed financial breakdowns that Congress — and the American public — deserve.
The coming weeks and months will reveal whether Oracle’s leaders comply with the subpoenas and what testimony they provide about the contract’s escalating costs, the program’s timeline, and the future of veterans’ healthcare IT infrastructure.
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