Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal and House Veterans’ Affairs Committee Ranking Member Mark Takano have urged Department of Veterans Affairs (VA) Secretary Doug Collins to immediately raise reimbursement rates for organizations that house and support more than 25,000 homeless veterans.
In a letter to Secretary Collins, the lawmakers criticized the VA for not following through on a law passed in January that required higher funding for these groups. “In January, Congress directed the Department of Veterans Affairs (VA) to increase the reimbursement for organizations serving homeless veterans through the Grant and Per Diem (GPD) program. For months, the Department has provided assurances that this bipartisan priority would be implemented as soon as possible. Now, nearly a year later, you continue to withhold these critical funds and undercut the very lifeline that supports nearly 25,000 veterans in their greatest time of need,” they wrote.
The Grant & Per Diem program is a key VA initiative providing grants to nonprofits that offer transitional housing and services to help veterans move toward permanent housing. Despite Congress directing an increase almost a year ago, community organizations are still being reimbursed at lower rates than what is allowed by law.
Blumenthal and Takano highlighted concerns about ongoing delays: “This legislative language is the result of years of calls from VA and homeless advocacy groups to raise the per diem rate to more adequately reimburse providers for the services they deliver to veterans. Failure to exercise this authority is a betrayal to Congress, community service providers, and homeless veterans, and failure to exercise this authority will move us further from the goal we share to end veteran homelessness. Any additional delays in the implementation of these policies, which have strong bipartisan backing and the support of Veteran Service Organizations (VSOs) and homeless service providers, will negatively impact the delivery of these services for this extremely vulnerable population of veterans.”
Since pandemic-era funding increases ended, 74 grantees operating nearly 1,000 beds have left the GPD program due to unsustainable funding amid rising costs. The lawmakers warned that continued delay could further destabilize services available for homeless veterans nationwide.
Congress passed new legislation in January 2025—the Senator Elizabeth Dole 21st Century Veterans Healthcare & Benefits Improvement Act—authorizing higher per-diem rates for GPD providers. While VA increased its base rate in September from 115% to 133% of the State Home Domiciliary Rate, lawmakers pointed out that up to 200% reimbursement is allowed by law in high-cost areas or where programs serve especially intensive needs.
They called on Secretary Collins for immediate action: “There is no excuse for further delay. You have legal authority, funding, and appropriate policy plans in place for full implementation.”
The letter also referenced recent federal cuts affecting similar programs: earlier this month, $2.2 billion was cut from supportive housing initiatives under changes led by Trump’s Department of Housing and Urban Development—a reduction impacting efforts against homelessness among those facing mental health or substance use challenges.
Blumenthal and Takano requested VA implement full GPD rate increases by December 5, 2025—backdated to October 1—and provide Congress with an implementation timeline consistent with Congressional intent.
They emphasized any future changes should only occur after consultation with Congress and stakeholders once a strategic review mandated by law is complete.
