Department leaders brought in more than 54,000 new employees in 11 months, pushing worker levels to their highest mark ever.
Virus infection cases within the VA health care system are up more than 200% in the last two months.
Leaders say they still need more staff to keep up with patient demands.
Active cases among VA patients have nearly tripled in the last month.
The new facility would also serve as a major care and training hub for veterans and non-veterans.
Visitors and patients will no longer be required to wear masks at all times at the health care sites.
VA officials said hiring and retention levels are at record highs, but workers groups say even more staff is needed to keep up.
Masks will still be mandated for some high-risk areas or facilities with rising virus numbers.
Veterans Health Administration leaders have increased staffing levels by about 2% so far this fiscal year.
ProPublica detailed cases of doctors overusing expensive medical devices to help boost corporate profits.
