Pappas Denounces VA Decision to End Program Helping Veterans Stay in Their Homes

Congressman Chris Pappas (NH-01), member of the House Veterans’ Affairs Committee and Ranking Member of the Subcommittee on Economic Opportunity, joined House Veterans’ Affairs Committee Ranking Member Mark Takano (D-CA), Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal (D-CT), and Senate Banking, Housing, and Urban Development Committee Ranking Member Elizabeth Warren (D-MA) to press Department of Veterans Affairs (VA) Secretary Doug Collins to immediately reverse his decision to abruptly end the Veterans Affairs Servicing Purchase Program (VASP)—a VA program that helped veterans experiencing severe financial hardship avoid foreclosure and stay in their homes. 

“On April 3, 2025, you abruptly announced the closure of the Veterans Affairs Servicing Purchase Program (VASP), leaving tens of thousands of veterans at risk for foreclosure…We write today to urge you to immediately reverse this decision, and avoid foreclosing on veterans who simply wish to keep paying their mortgage and keep their home,” wrote the lawmakers in a letter to VA Secretary Collins. “…VA is taking a misstep that will push thousands of veterans into foreclosure. This is cruel, wrong, and runs counter to the benefits earned by veterans as led by the VA Loan Guaranty office – which always seeks to use foreclosure as an absolute last resort.”

Earlier this week, Pappas spoke out forcefully against the end of the VASP program during a House Veterans’ Affairs Subcommittee on Economic Opportunity markup. 

The VASP program was created as a “last-resort” option for VA to use for eligible veterans and their family members following the expiration of pandemic programs coupled with rising interest rates, which increased the risk of default for thousands of veterans. Currently, VASP is the only program of last-resort that exists for veterans facing immediate foreclosure, which has helped over 17,000 veterans since the program launched in 2024. By not accepting any new veterans into the program after May 1, 2025, VA risks putting 80,000 veterans onto the streets and out of their homes.

The lawmakers continued, “Furthermore, with the rising costs of housing and overall inflation, VA must ask itself: Is it more cost effective to allow veterans to lose their homes or help them? VA leaders, veterans service organizations, and housing organizations have all recently shared with Congress their concerns about ending VASP too soon…While past policies have assumed that veterans have been financially irresponsible for assuming mortgages they can’t afford, today’s financial and housing market puts veterans at risk of losing their homes in a much more vulnerable situation.”

The lawmakers concluded: “Until better policy solutions are in place that provide for stronger underwriting, ending the VASP program abruptly will only harm veterans and their families. Congress, VA, and other stakeholders must work together and offer practical, cost-effective solutions that better serve veterans. Our veterans earned their home loan guarantee benefit, and they deserve a viable option to get back on track with payments and keep their homes.”

Read the full letter here.