The administration framed the budget as a 13% increase, but that includes a spending package Congress has yet to pass.
VA would be one of only a few federal departments to see a funding increase under the president's $1.7 trillion budget plan.
Veterans advocates said the move to reopen the 90/10 loophole could once again allow predatory institutions to prey upon student veterans.
House Veterans' Affairs Chairman Mike Bost suggested former department leaders could face criminal charges for past budget mistakes.
