A new Department of Veterans Affairs outpatient clinic is coming to Virginia Beach.

The Veterans Health Administration has signed a lease for a $355.7 million health clinic at the northeast corner of Northampton Boulevard and Premium Outlets Boulevard, according to a Dec. 19 announcement from U.S. Sens. Tim Kaine and Mark Warner.

“We are thrilled to announce the awarding of this new clinic lease in Hampton Roads,” said the senators in the announcement. “The veteran population in the region continues to grow, and this facility will fill a critical gap by expanding access to high-quality, convenient care for the veterans who have served our country.”

The 20-year lease is for 182,230 square feet of medical space and 1,250 parking spaces, according to the contract award document. The contract was awarded to Nevada-based Molasky Development.

The clinic was first authorized in 2022 as part of the PACT Act, which expanded VA health care and benefits for veterans exposed to various toxins. However, updated cost estimates and rent bids prompted government agencies to seek reauthorization for the facility from four congressional committees this year.

Kaine and Warner, both Democrats, also used the announcement to oppose a plan by Present Donald Trump’s administration to cut up to 35,000 VA positions at facilities across the country, according to a Dec. 13 Washington Post report. The VA already has reduced staffing by 30,000 positions this year through buyout offers and attrition.

According to the VA, the staffing reductions have decreased bureaucracy and improved efficiency.

Additionally, the department is planning to reorganize the management structure of the Veterans Health Administration, according to a Dec. 15 announcement. The reorganization is designed to eliminate layers of middle management and create efficiency without reducing staffing levels.

“The current VHA leadership structure is riddled with redundancies that slow decision making, sow confusion and create competing priorities,” VA Secretary Doug Collins said in the announcement. “In other words, when everyone’s in charge of everything, no one’s in charge of anything.”

The Hampton VA hospital is among the facilities suffering from increased staffing shortages this year, according to a recent report from the Office of the Inspector General.

A Chesapeake clinic that opened in April was not expected to be fully staffed. Rather, a VA spokesperson previously said the North Battlefield Outpatient Clinic would continue hiring until it was expected to reach full staff of 540 employees by January. It was unclear whether hiring was on track to meet that goal.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com