The VA issued a memo in early March that called for the layoff of at least 76,000 employees. VA chief of staff Christopher Syrek sent the memo, which calls for a return to 2019 staffing levels of 399,957 employees, according to the Associated Press. The organization had 479,000 employees prior to the layoffs.
According to the AP, the VA achieved its highest-ever service levels in 2024, serving more than nine million enrollees and providing over 127.5 million healthcare appointments.
Changes to the VA Home Loan Program could also have a big impact
The downsizing at the VA isn’t the only issue impacting veterans in the housing market. Congress is debating changes to the VA Home Loan Program, which could limit lending options for veterans.
The chairman of the House Committee on Veterans’ Affairs, Mike Bost (R-IL), introduced legislation that would cap the number of direct loans the VA can repurchase. He stated that the VA Service Purchase Program (VASP), which enables the VA to purchase delinquent loans and modify them, poses a threat to the long-term stability and viability of the program.
“If the Biden version of VASP is allowed to continue, I fear that the home loan will not exist in the future for my fellow veterans,” Bost said. “I believe that if we don’t change VASP, this program will continue to be a Trojan horse on VA’s books that could ruin the VA home loan program forever.”