Trump Signs Law to Help Veterans With Housing

Drazen Zigic

President Donald Trump signed a sweeping new bill on Wednesday that could save tens of thousands of veterans from home foreclosure, in a move aimed at halting a quietly growing housing crisis among former service members.

The VA Home Loan Program Reform Act, signed into law at a public ceremony, gives the Department of Veterans Affairs powerful new tools to prevent veterans from being forced out of their homes due to loan defaults. Trump, flanked by Rep. Derrick Van Orden (R-WI) and Rep. Mike Bost (R-IL), praised the bipartisan legislation as a long-overdue commitment to “our American heroes.”

“Over 60,000 veterans are at risk of losing their homes,” Trump warned. “But thanks to this bill, the Department of Veterans Affairs will be empowered to pay loan holders the necessary amount to prevent foreclosures. Our veterans won’t be foreclosed and put out onto the streets.”

The new law allows the VA to directly pay loan holders the amount needed to avoid foreclosure, but only if both the lender and veteran agree to give the VA a secured interest in the home. The agency must also follow a strict sequence of loss mitigation procedures before taking other administrative actions, ensuring every effort is made to keep veterans housed.

At the heart of the legislation is a five-year Partial Claim Program, which allows the VA to purchase part of a defaulted loan for a veteran’s primary residence. In cases where the VA makes such a purchase, the borrower would be liable to the agency for any losses in the event of a future default.

Trump emphasized that the program’s costs are fully offset and won’t add to the national debt. “It’s big stuff,” he said, noting that as many as 3.7 million veterans could benefit under the law.

The legislation’s lead sponsor, Rep. Van Orden, a retired Navy SEAL with multiple combat tours, called Trump “the most pro-veteran president in the history of this country.” He praised the president’s consistent support for veterans, pointing to this new bill as just the latest example of action matching words.

“He backs up his words with deeds,” Van Orden said. “This is another example of how President Trump is taking care of our veterans. Let’s get this thing done and get our veterans into homes.”

Rep. Mike Bost, a Marine Corps veteran and chair of the House Veterans’ Affairs Committee, echoed the sentiment. “This is a proud day for all of us who believe America owes its veterans more than just a thank-you,” Bost said. “We owe them a real chance at stability, safety, and the American dream they fought to protect.”

The law comes as many Americans continue to face inflation and a tightening housing market. But for veterans—many of whom struggle with fixed incomes or service-related disabilities—the risks of foreclosure have grown especially urgent. The VA estimates tens of thousands of former service members could have lost their homes without swift legislative action.

In recent months, several veterans’ advocacy groups sounded alarms over rising default rates and the VA’s limited authority to intervene. With this bill now law, those groups say it’s a turning point.

For Trump, it’s a rare policy win in a polarized political climate. And for veterans on the edge of losing everything, it might just be the lifeline they never expected.


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