Pappas Statement on VA Home Loan Program Reform Act Becoming Law

Today Congressman Chris Pappas (NH-01), a member of the House Veterans’ Affairs Committee (HVAC) and Ranking Member of the Subcommittee on Economic Opportunity, released the following statement after President Trump signed the VA Home Loan Program Reform Act, legislation to establish a Department of Veterans Affairs (VA) Home Loan safety net program and enhance services to end veteran homelessness, into law.

“80,000 veterans who swore an oath to give everything up to and including their lives for our country have been at risk of losing their homes since the administration decided to abruptly end the VASP program without a foreclosure moratorium or alternative measures in place. I’m relieved this legislation establishing a partial claims program at VA has finally been signed into law, ensuring veterans at risk of foreclosure can access another option for assistance and relief,” said Congressman Pappas. “We cannot lose sight of the fact that far too many veterans continue to experience homelessness and housing instability, and it is critical that this program, while falling short of the security the VASP program provided, be implemented properly to keep as many veterans in their homes as possible. I am committed to continuing to work closely with VA and my colleagues on the Veterans’ Affairs Committee to ensure that our veterans get the support they have earned and deserve under this new program.”

The Veterans Affairs Servicing Purchase (VASP) program was created as a “last-resort” option for veterans and their family members facing foreclosure on VA-backed loans following the expiration of pandemic relief programs, which, when coupled with rising interest rates, increased the risk of default for thousands of veterans. 

Before its termination, VASP was the only relief option veterans could apply for to guarantee avoiding the loss of their homes. The program helped over 17,000 veterans since its launch in 2024. By abruptly ending this program on May 1, 2025, with no alternative in place, the Trump administration put 80,000 veterans and their families at risk of losing their homes.

H.R. 1815, the VA Home Loan Program Reform Act, creates a partial claim program at VA to close the gap left by the abrupt cancellation of VASP and modernize the VA Home Loan program, allowing veterans who have fallen behind on their mortgages to receive federal assistance that is already available through other federal housing programs. H.R. 1815 also includes the proper funding levels for the VA Grant and Per Diem program, as part of VA’s homelessness prevention programs to fund community agencies providing services to veterans experiencing homelessness.

This legislation is supported by: Mission Roll Call, New England Center and Home for Veterans (NECHV), National Coalition for Homeless Veterans (NCHV), Veterans of Foreign Wars (VFW), The American Legion, and more. 

Background: 

In April, Pappas spoke out forcefully against the administration abruptly ending VASP during a House Veterans’ Affairs Subcommittee on Economic Opportunity markup. He joined a bicameral letter to VA Secretary Doug Collins, urging him to immediately reverse his decision to abruptly end VASP. In May, Pappas spoke out against the decision to end VASP during an HVAC markup, rebuked VA Secretary Collins for ending the program when the Secretary testified before the Committee, and shared how constituents in New Hampshire’s First District would be impacted during a press conference with Congressional leaders.