In a joint statement, Rep. Mike Bost of Illinois and Rep. Derrick Van Orden of Wisconsin said, “The Trump administration rightfully put an end to VA’s VASP program,” arguing that the program exposed taxpayers to too much risk by requiring the VA to buy delinquent loans and hold them on its books.
They instead support the return of the partial claim structure.
“This action underscores House Republicans’ intent to establish a partial claims program at VA to ensure veterans can stay in their homes if they’re in financial hardship,” the lawmakers said.
However, during the Biden administration, the VA has maintained it lacks the authority to reinstate a partial claim option without an act of Congress. Although Rep. Van Orden has introduced such legislation, its fate remains uncertain.
The VASP program was introduced as an emergency measure after the VA abruptly ended its partial claim program in 2022, a move that had left around 40,000 veterans in danger of losing their homes. VASP became the VA’s only viable home retention solution for those who could resume payments after temporary hardship, offering new, low-interest, affordable mortgages. According to the VA, VASP has helped 17,109 veterans and their families to date.