Senator Mazie K. Hirono, a member of the Senate Veterans Affairs Committee, alongside senators Richard Blumenthal and Elizabeth Warren, representative Mark Takano, and 18 other congressional colleagues, reached out to Department of Veterans Affairs (VA) Secretary Doug Collins, urging the reinstatement of a program aimed at helping veterans avoid foreclosure.
On April 3, 2025, Secretary Collins announced the termination of the Veterans Affairs Servicing Purchase Program (VASP), a move that has put many veterans at risk of losing their homes. This decision prompted the group of lawmakers to send a letter advocating for the reversal of this closure. They emphasized, "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."
Established in 2024, VASP served as a safety net for around 17,000 veterans at risk of foreclosure due to financial hardship. Its closure threatens to leave 80,000 veterans without housing assistance by not admitting new participants after May 1, 2025. The program was particularly crucial following the expiration of pandemic-related programs and amidst rising interest rates.
The lawmakers highlighted, "This is cruel, wrong, and runs counter to the benefits earned by veterans as led by the VA Loan Guaranty office," arguing the decision undermines veteran support systems. They also challenged any assumptions of veteran irresponsibility, citing the challenging contemporary financial environment that risks veterans losing their homes.
The coalition urged collaboration among Congress, VA, and veteran support organizations to devise practical solutions, stating, "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."
Signatories of the letter include Senators Hirono, Blumenthal, Warren, and other prominent legislators, collectively calling for action to prevent the foreclosures threatening the financial and housing stability of U.S. veterans.
This move aligns with a broader push from veterans service and housing organizations concerned about the potential premature conclusion of VASP. Critics have cautioned against the repercussions of such policy shifts without sustainable alternatives to protect veterans’ interests in the uncertain economic climate.