Homeless‑veteran leaders urge Congress to protect housing grants and HUD‑VASH rules amid federal pauses

National Coalition for Homeless Veterans and partner groups told the joint hearing that federal investments have driven large declines in veteran homelessness, but rapid federal changes and contract pauses are creating uncertainty that could reverse gains.

Catherine Monet of NCHV said veteran homelessness declined to 32,882 on a single‑night HUD count last year — a 7 percent drop from 2023 and a 55 percent drop since 2009 — and credited VA and local partners. But Monet warned that recent abrupt federal decisions and pauses — including contract cancellations and uncertainty about grant funding — have made local providers focus on cash‑flow and compliance rather than direct services.

Why it matters: Local providers rely on steady federal grants to pay per‑diems, case managers and rental subsidies. A pause in awards, reduced per‑diem authority, or contractor cancellations for facility oversight could interrupt housing placements and supports for veterans at imminent risk.

Monet urged Congress to codify guidance exempting VA disability compensation from HUD‑VASH and low‑income housing tax credit (LIHTC) eligibility calculations, expand eligibility for veterans with other‑than‑honorable discharges and non‑activated Guard/Reserve service, and support voucher programs for extremely low‑income veterans with protections against source‑of‑income discrimination.

Ending note: Witnesses told the committee that homelessness programs require stable appropriations and program continuity; they requested that congressional oversight ensure contract pauses and staff reductions do not undermine the systems that have reduced veteran homelessness.