VA would be one of only a few federal departments to see a funding increase under the president's $1.7 trillion budget plan.
While Hegseth fired or reassigned several top advisers, a Marine colonel on his staff has ascended.
The 32 leaders will steer the department while its top officials await Senate confirmation.
A Pentagon watchdog found no harm to U.S. national security but said the incident raised the odds of such issues.
