VA officials had warned that without the money, some disability benefits payouts could have been disrupted in the next few weeks.
VA officials said the original $453 million contract for the work has now been updated 25 times. The new price tag for the project is $932 million.
VA Secretary Denis McDonough acknowledged serious mistakes in how executive bonuses were awarded last year but does not think firings are warranted.
A moratorium on foreclosures of VA-backed home loans is set to expire at the end of the week.
