The U.S. Senate is expected to pass the VA Home Loan Reform Act as early as today, according to a source familiar with ongoing negotiations.
Senate leadership reportedly plans to expedite the bill by bypassing traditional procedures—skipping debate, amendments and committee review—in order to vote on the House-passed version without changes.The legislation, already unanimously approved by the House, would authorize the Department of Veterans Affairs (VA) to establish a partial claims program aimed at helping veterans avoid foreclosure.
The proposal comes amid growing alarm over veteran housing instability, triggered by the May 2025 shutdown of the VA Servicing Purchase (VASP) program. Veteran service organizations and mortgage industry experts have urged swift passage, warning that delays could leave thousands of struggling veterans without a clear path to keep their homes.
“This bill seeks to help veterans who are struggling to catch up due to high interest rates in the current market, which makes refinancing difficult and puts them at-risk of losing their home,” the House Committee on Veteran’s Affairs said in support of the bill.
Since the end of VASP, which previously aided over 17,000 veterans with defaulted VA-backed loans, foreclosure filings have surged. Nearly 90,000 VA-backed loans are now seriously delinquent and over 33,000 have entered foreclosure, marking the highest rate of veteran housing loss since 2019.
As of March 2025, the number of mortgages that were over 90 days past due climbed by 14% compared to the same period in 2024. This uptick in serious delinquencies contributed to a 9% increase in foreclosure filings year over year.
The bill has broad support in the Senate.
U.S. Sen. Thom Tillis (R-N.C.), a member of the Senate Veterans’ Affairs Committee, has voiced strong support for the bill, with his communications staff noting Tillis “remains committed to ensuring it reaches President Trump's desk and is signed into law."
U.S. Sen. Jerry Moran (R-Kan.), the committee’s lead Republican, has expressed cautious support while continuing to consult with the VA and veteran advocacy groups. “We are making the appropriate decisions to protect the home loan benefits veterans have earned," Moran previously told Sunflower State News.
Meanwhile, U.S. Sen. John Boozman (R-Ark.) and U.S. Sen. Ruben Gallego (D-Ariz.)—also on the committee—have both declined to comment despite mounting pressure from housing advocates.
If passed, the bill will head to President Donald Trump’s desk for signature.
