22Apr
WASHINGTON DC — Common Defense veterans are outraged at the continued pursuit of rate hikes against veteran homeowners. After facing criticism for broad VA home loan fee hikes, House Veterans’ Affairs Chairman Mike Bost [IL-12] has narrowed his proposal to focus on veterans seeking to refinance their homes — a move that concentrates new costs on veterans already under financial strain amid a worsening housing affordability crisis. The legislation is scheduled for markup Thursday morning before the House Veterans’ Affairs Committee.
The revised amendment would nearly triple the Interest Rate Reduction Refinance Loan (IRRRL) fee from 0.5% to 1.4% through September 30, 2036, stealing an estimated $2.4 billion out of the pockets of veterans and their families. It also extends current home loan fees through 2036 and doubles loan assumption fees. The increased revenue is designed to offset roughly $4 billion in benefit expansions, including temporary increases to Dependency and Indemnity Compensation (DIC) and Special Monthly Compensation (SMC).
Expanding benefits for Gold Star families and severely disabled veterans is a commitment all Americans can agree on. Yet despite approving massive tax breaks for billionaires, Chairman Bost is turning to financially vulnerable veterans to cover these expansions. That choice reveals exactly what’s wrong with the leadership behind this proposal.
“Pitting veterans’ benefits against survivors is always wrong, but there is something fundamentally disturbing about singling out those already under financial strain to pay for it,” said Naveed Shah, Political Director of Common Defense. “Helping survivors does not need to come at the expense of making it harder for veterans to stay in their homes.”
Common Defense urges lawmakers from both parties to reject any proposal that raises housing costs for veterans and to pursue responsible funding mechanisms that protect affordability and the long-term stability of the VA Home Loan program.
###
Common Defense Civic Engagement (501c4) (CDCE) is a grassroots, veteran-led organization that was founded in 2016. We empower veterans to stand up for our communities against the rising tide of racism, hate, and violence, to organize against the entrenched powers that have rigged our economy, and to champion an equitable and representative democracy, where “liberty and justice” truly is for all. For too long, politicians from both political parties have attempted to use veterans as unwilling political props, and Common Defense serves as a home for veterans to organize and speak for themselves and support the candidates who truly share our values.