Arsenal GPAG Policy Brief | 7 min read | 119th Congress: A Comprehensive Overview of Veterans Housing Provisions

Arsenal GPA
Mar 3
7 min read

Updated: Apr 6

A bipartisan Senate housing package — now embedded in the FY2026 National Defense Authorization Act — contains the most significant veterans housing provisions in years. From fixing a broken eligibility rule for homeless disabled veterans to putting VA loan information in every mortgage application, here is what is at stake.

BOTTOM LINE UP FRONT: The ROAD to Housing Act of 2025 (S. 2651), passed by the Senate as part of the FY2026 NDAA, contains at least 10 provisions that directly or indirectly affect veterans — spanning homeownership, homelessness, appraisal reform, and federal oversight. The highest-impact provision would fix an income eligibility rule that currently blocks some of the most vulnerable disabled veterans from the federal government's primary homeless veterans housing program.

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By the Numbers

33,129 — Veterans experiencing homelessness on a single night (January 2024)
10 — Provisions in the bill that directly affect veterans
40 — Total sections across 8 titles in the ROAD to Housing Act

The Provision That Matters Most: Fixing HUD-VASH for Disabled Veterans

Addressing Homeless Veterans

The HUD-VA Supportive Housing (HUD-VASH) program is the federal government's most direct tool for addressing veteran homelessness. It pairs Housing Choice Vouchers from HUD with case management from the VA. This program is specifically designed for veterans experiencing homelessness.

However, there is a significant issue. Under current law, VA disability compensation — both service-connected and nonservice-connected — counts as income when determining whether a veteran is eligible for HUD-VASH. This means that a disabled veteran whose injuries caused or contributed to their homelessness can be deemed too wealthy for housing assistance. The benefits intended to compensate for those very disabilities push their income above the eligibility threshold.

"A veteran receiving $3,700 per month in 100% service-connected disability compensation in a metro area with a $3,500 income limit is currently ineligible for HUD-VASH — even if they are living on the street." — Arsenal GPAG Analysis of S. 2651, §603

Section 603 fixes this. It would exclude VA disability benefits from income when determining HUD-VASH eligibility. However, these benefits would still be counted when calculating adjusted income for rent purposes. This change allows more disabled veterans to qualify for the voucher, while their rent contribution accurately reflects their actual financial resources.

Cross-Program Compatibility

Section 603 also ensures that the same income treatment applies when HUD-VASH voucher holders seek to live in housing funded through other programs, such as Low-Income Housing Tax Credits (LIHTC) or HOME-assisted units. This prevents a scenario where a veteran receives a voucher but cannot use it because the property's separate income cap disqualifies them.

Strong Enactment Prospects

The House passed a substantially similar bill (H.R. 965) on February 10, 2025. With both chambers having now advanced this provision and the NDAA serving as the legislative vehicle, this fix has a clear path to the President's desk.

Putting VA Loan Information Where Veterans Will Actually See It

Enhancing Homeownership Opportunities

VA-guaranteed home loans are one of the most valuable benefits available to veterans and surviving spouses. They offer no down payment, no private mortgage insurance, competitive rates, and limits on closing costs. For a veteran purchasing a $300,000 home, the difference between an FHA loan and a VA loan can amount to tens of thousands of dollars over the life of the loan.

The problem is that too many eligible veterans do not know this benefit exists or are not informed about it during the mortgage process.

The ROAD to Housing Act addresses this with a two-stage informational intervention:

Stage 1 — VA Home Loan Awareness Act (§601): This provision requires the FHFA to add a statement on the Uniform Residential Loan Application — the standard form used by virtually all mortgage lenders. The statement will appear below the existing military service question: "If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility." The military service question will also be moved above the signature line for maximum visibility.

Stage 2 — VALID Act (§602): This provision amends FHA's existing Informed Consumer Choice Disclosure. Currently, this disclosure only compares FHA to conventional loans. The amendment will include a three-way comparison: FHA, conventional, and VA-guaranteed loans. Veterans applying for FHA loans will see, in concrete dollar terms, what they might save with a VA loan.

Neither provision requires lenders to determine borrower eligibility. However, together, they ensure that every military-affiliated mortgage applicant encounters the VA loan option at the two most critical points in the application process. The cost to the federal government is effectively zero.

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Fixing the Appraisal Pipeline and Catching Delinquencies Earlier

Addressing Appraisals and Counseling

Appraisal shortfalls are a common reason VA purchase transactions fall through. The VA maintains its own appraiser panel and imposes specific Minimum Property Requirements that can complicate deals. This is especially true in rural and underserved markets where appraiser availability is already limited.

VA Gets a Seat at the Table (§403): This provision adds a VA designee to the Appraisal Subcommittee, which is the federal body overseeing the national appraisal regulatory system. Historically, the VA has not had representation here. This section also funds appraiser workforce training grants and permits state-licensed appraisers (not just certified) to conduct FHA appraisals, thereby expanding the available pool in markets where veterans buy homes.

Recourse for Bad Appraisals (§705): This provision establishes formal reconsideration-of-value procedures for consumers who believe their appraisals contain errors or bias. It defines "unsupported appraisal reports," creates a right to request reconsideration, and requires creditors to order and pay for a second appraisal if deficiencies are found.

Housing Counseling for VA Borrowers (§101): This provision ensures that borrowers with VA-guaranteed mortgages who become delinquent receive an opportunity to participate in HUD-approved housing counseling. This puts VA borrowers on equal footing with FHA and USDA borrowers for delinquency intervention.

New Accountability for the VA Home Loan Program

Enhancing Oversight and Coordination

VA's Loan Guaranty Service manages a portfolio of over $600 billion in outstanding mortgage debt. Despite this scale, there is no statutory requirement for the program's leadership to testify before the authorizing committees.

Annual Testimony Required (§701): This provision would require the Executive Director of VA's Loan Guaranty Service to testify annually before the Senate Banking and House Financial Services committees. This creates a recurring oversight mechanism that parallels existing requirements for the HUD Secretary, FHA Commissioner, and FHFA Director.

Interagency Data Sharing (§801): This provision directs HUD, USDA, and VA to enter a formal data-sharing agreement. They will submit a joint report to Congress identifying federal laws and regulations that adversely affect housing availability, including for VA-backed mortgages. This could surface regulatory friction points specific to VA lending that currently go unaddressed because the agencies operate in silos.

More Housing for Everyone — Including Veterans

The Bigger Picture

A VA loan guaranty is only useful if there is housing available to purchase at prices that veterans can afford. The ROAD to Housing Act's broader supply-side provisions — while not veteran-specific — matter enormously for the veteran community:

Innovation Fund (§209): This provision allocates $200 million per year in competitive grants to localities that increase housing supply. More housing stock in markets where veterans compete for homes is essential.
NEPA Streamlining (§208): This provision introduces new categorical exclusions for infill housing and office-to-residential conversions. Faster, cheaper housing production reduces costs for all buyers.
Manufactured Housing (§§301-304): This provision removes the permanent chassis requirement for manufactured homes and modernizes FHA Title I loans. Veterans are significant manufactured home buyers.
Build More Housing Near Transit (§211): This provision incentivizes pro-housing land use policies via Capital Investment Grant criteria. It increases housing near transit, which is critical for veterans with mobility challenges.
RESIDE Act (§212): This provision grants funds to convert vacant buildings into attainable housing in distressed communities and opportunity zones.

These supply-side interventions are particularly relevant for transitioning service members entering housing markets for the first time, veteran families using their VA loan benefit, and veterans on fixed incomes who are priced out of increasingly expensive markets.

What Happens Next

Legislative Outlook

The ROAD to Housing Act was incorporated into the Senate-passed FY2026 NDAA (S. 2296) as Division I. Its path to enactment depends on the House-Senate NDAA conference process. The veterans provisions carry stronger-than-average prospects:

Bipartisan Momentum: S. 2651 was approved unanimously by the Senate Banking Committee. This marks the first bipartisan housing markup in over a decade. The NDAA has been enacted every year for over six decades.
House Movement on §603: H.R. 965 passed the House on February 10, 2025. This means the most impactful veteran-specific provision has already cleared one chamber as a standalone measure.
Low Budget Exposure: The disclosure provisions (§§601-602), oversight requirements (§701), and interagency coordination (§801) carry minimal or zero cost. The HUD-VASH eligibility change expands the eligible population but does not increase voucher appropriations.

The primary risk is whether housing provisions survive the NDAA conference. If Division I is stripped, the veterans-specific sections could move through alternative vehicles, such as standalone floor action, THUD appropriations, or annual veterans affairs legislation.

Veterans Housing Policy Is Moving. Are You Ready?

Arsenal Government and Public Affairs Group tracks this legislation daily and advises organizations on federal housing, veterans, and infrastructure policy. Whether one needs a legislative strategy, a policy briefing, or assistance preparing for what comes next, Arsenal is the resource in Washington.

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This analysis is based on the text of S. 2651 as reported to the Senate (August 1, 2025), the text of S. 2296 as engrossed in the Senate (October 9, 2025), and CRS Report R48732 (November 17, 2025). Legislative text and program details are subject to change through the conference and enactment process.