 The Department of Veterans Affairs Act of 1988 () changed the former Veterans Administration, an independent government agency established in 1930, primarily to see to the needs of World War I veterans, into a Cabinet-level Department of Veterans Affairs.It was signed into law by President Ronald Reagan on 25 October 1988, but actually came into effect under the term of his successor, George H. W. Bush, on 15 March 1989.The Department of Veterans Affairs was created due to nearly one third of the population being eligible for veterans benefits.