The VA said it exempted or reimbursed more than 143,000 copayments totaling approximately $2.5 million.
Whistleblowers complained that accusations against supervisors in the Office of Resolution Management, Diversity, and Inclusion were ignored.
The move comes after data shows lower rates of disability claims approval for some minority groups.
The move follows several years of expanded benefits for veterans who suffered toxic exposure injuries while in the military.
Portland VA Medical Center leaders have promised an investigation after several incidents at the facility.
The move comes on the three-year anniversary of President Joe Biden's repeal of the ban on transgender individuals serving in the military.
Some Republican lawmakers had called for harsher action against the employee after she mocked Israeli hostages in a video she posted.
The rise comes after years of progress in reducing the number of veterans facing stable housing issues.
The backlog of overdue disability claims is expected to keep rising over the next year.
Department outreach efforts have helped nearly 80,000 veterans since the start of 2022.
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