GOP lawmakers are pushing reforms for a host of department employee financial incentives, but Democrats worry the moves will hurt recruiting efforts.
More than 17,000 Veterans Affairs jobs have been eliminated or vacated since the start of the year.
Thousands of veterans gathered in Washington on Friday to rally against potential cuts to veterans services and staffing.
Hegseth said in a new memo the move was informed by a "comprehensive internal review" that identified nonessential personnel within the office.
