The move comes on the three-year anniversary of President Joe Biden's repeal of the ban on transgender individuals serving in the military.
The annual defense authorization bill contains a 5.2% pay raise for troops and a host of other policy renewals needed for military operations.
Congressional Democrats and outside advocates say updated policies for the department are long overdue.
VA officials announced plans to provide gender conforming surgeries more than two years ago, but have not moved ahead on the promise.
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