A decade-long plan to build a major veterans outpatient clinic and columbarium at the former Naval Air Station in Alameda has collapsed after the Trump administration suddenly withdrew nearly $400 million in federal support. Local officials and members of Congress say the decision came without warning, despite years of planning and investment.
A Project Years in the Making Suddenly Canceled
The project was intended to revitalize a large section of the old naval base. It would have delivered a new VA medical clinic, a dedicated burial site for veterans, and a large waterfront park. Federal agencies had spent close to $400 million preparing the site.
But in late August, the Veterans Administration quietly announced it would end all major construction activities in Alameda and look for another location. Instead of building a new clinic, the VA said services would shift to an existing facility in Oakland.
Local Representatives Learn About the Cancellation Through a Memo
The first sign that something was wrong came when Rep. Lateefah Simon, D-Alameda County, obtained an internal VA memo dated Aug. 28. The memo stated that the VA planned to abandon the Alameda project and search for a different site for the columbarium.
Alameda city officials were stunned. According to Mayor Marilyn Ezzy Ashcraft, the city received “zero communication” from the VA about the sudden reversal.
Congressional Leaders Demand Answers
On Wednesday, Rep. Simon joined Rep. Nancy Pelosi and Senators Alex Padilla and Adam Schiff in sending a strongly worded letter to Veterans Affairs Secretary Douglas Collins. The letter criticized the lack of transparency and urged the VA to explain why a project serving more than 28,000 veterans in the East Bay and 270,000 across the Bay Area was abruptly scrapped.
Simon called the decision “unacceptable,” noting both Oakland’s military history and Alameda’s long-standing connection to the U.S. Navy and Coast Guard.
Officials Seek Details on Spending and Future Plans
In their letter, the lawmakers asked how much of the allocated funding had already been used, how the administration planned to serve veterans without the new facility, and why the project was ended so abruptly.
VA Cites Cost, Contamination, and Accessibility Concerns
The August memo outlined several reasons for scrapping the project, including contamination in the soil and groundwater, an estimated $1.3 billion required for flood protection and design changes, and concerns that the site was “remote” and difficult to reach by public transportation.
But the congressional delegation pushed back, questioning whether similar construction issues had been handled differently at other VA sites, including the San Francisco VA hospital.
As of Thursday afternoon, the VA had not responded to the lawmakers’ letter or media questions.
A Site Full of Possibilities — and Competing Visions
The former Alameda naval base has long attracted dreamers and developers since its closure in 1997. Today, parts of the base host bike paths, breweries, and a gym inside an old airplane hangar.
The 600 acres reserved for the VA sit on a peninsula jutting into the bay — a patchwork of old runways and tarmac. Ideas for redeveloping the land have ranged from housing to massive innovation hubs.
Tech “Freedom City” Proposal Adds More Uncertainty
Earlier this year, tech founder James Ingallinera proposed turning the land into “Frontier Valley,” a futuristic zone for rocket launches, drone testing, and experimental technologies. His plan promoted the area as a “Freedom City” — a deregulated tech enclave that would require a special federal designation from President Trump.
Although the proposal drew media attention, Ingallinera has not made any public updates in months. It remains unclear whether the idea influenced the VA’s decision to withdraw from Alameda.
Conclusion
The sudden cancellation of Alameda’s veterans clinic project has left local leaders and veterans searching for answers. After years of planning and nearly $400 million in federal investment, the decision to walk away has raised major concerns about transparency, waste, and the future of critical health services for Bay Area veterans. As congressional representatives demand explanations, the fate of the long-promised clinic — and the land intended to support it — remains uncertain.
