Lawmakers press VA over abrupt end to VASP and housing risks for veterans

3357323 · May 15, 2025

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Summary

Members pressed VA Secretary Doug Collins about the department's decision to stop accepting applications to the Veterans Assistance Support Program (VASP), the timing of public notice, and the potential risk of foreclosure for veterans awaiting an alternative program from Congress.

Several members told the House Veterans’ Affairs Committee they were alarmed by how quickly the department posted the end to the Veterans Assistance Support Program (VASP) and by the reported short public notice to veterans who were trying to enroll.

Representative Chris Babin (R-TX) and other lawmakers described cases from their districts of veterans who were trying to use VASP as a last-resort stopgap to keep homes, and said they had been told the department posted plans to stop accepting lender applications on April 23 — days before the May 1 cutoff. Babin called for a moratorium on foreclosures while Congress works on a legislative replacement; Secretary Collins declined to commit to a moratorium and reiterated that VA stopped the VASP program because it had been funded by reprogramming mandatory funds in VBA and threatened to consume billions that should have gone to other statutory benefits.

Rep. Ben Cline and other members said the program was a “last resort” for veterans facing imminent foreclosure and urged rapid congressional action on a partial-claims bill (H.R. 1815 was mentioned on the floor). Collins said that veterans who were already enrolled in VASP remained on the program and that the department stopped accepting new applications as of May 1; he and several committee leaders urged Congress to pass partial-claims legislation to provide a long-term solution.

Lawmakers from states with large numbers of veterans at risk of foreclosure asked whether VA could pause foreclosures pending congressional action. Collins said he could not unilaterally create a moratorium and emphasized that Congress should act to authorize a legislative remedy for affected veterans. Several members said they would press colleagues in the House to move partial-claims legislation promptly.

Committee members also sought clarity about internal communications and how the public learned of VA’s plan. Collins said he would follow up with details on the communication timeline and reiterated that the stopping of VASP was a corrective action because the program had diverted funds intended for mandatory benefits.