A video screenshot of President Donald Trump on Wednesday, July 30, 2025, during a White House ceremony at which he signed into law a mortgage assistance bill that is expected to help thousands of veterans with home loans avoid foreclosure. Rep. Derrick Van Orden (left), R-Wis., and Rep. Mike Bost, R-Ill., attended the bill-signing ceremony. (C-SPAN)
WASHINGTON — Thousands of financially distressed veterans at risk of foreclosure will become eligible for federal assistance under a new program signed into law Wednesday that allows them to defer monthly mortgage payments temporarily without losing their homes.
The VA Home Loan Program Reform Act authorizes the Department of Veterans Affairs to create a “permanent partial claims program” that gives veterans a second chance to stay in their homes, according to the bill’s supporters.
Under the program, the VA buys a portion of the veteran’s debt and secures a lien on the property, according to the bill. The veteran does not have to pay off the claim until the home is sold or refinanced.
President Donald Trump signed the bill into law at a ceremony attended by Rep. Mike Bost, R-Ill., who is chairman of the House Veterans’ Affairs Committee, and Rep. Derrick Van Orden, R-Wis., the bill’s sponsor.
“This bill provides desperately needed relief to veterans and their families who have fallen behind on their mortgages,” Trump said.
The legislation, which passed unanimously in the House and Senate, is expected to help up to 70,000 homeowners with VA-backed loans who are more than three months behind on their mortgage payments, the lawmakers said.
The legislation is intended for homeowners struggling to rebound from financial setbacks, such as a job loss or high medical bills.
More than 3.5 million veterans, active-duty service members and surviving spouses hold VA home loans, according to the VA. Van Orden described the legislation as providing “a path to maintain home ownership.”
“Our veterans and their families should have every tool at their disposal to keep their homes and reduce the risk of foreclosure if they fall into financial hardship or endure a national disaster,” Bost said.
The bill helps veterans struggling with higher interest rates that make refinancing difficult, he said. It also protects the taxpayers’ investment in the VA home loan program, Bost said.
The legislation also enables the VA to continue funding not-for-profit community agencies that run homeless prevention programs through the Homeless Providers Grant and Per Diem Program.
The VA Home Loan Program Reform Act was established to replace a home loan bailout program created under the administration of former President Joe Biden that authorized the VA to purchase a veteran’s entire home loan and restructure it at a lower interest rate.
Van Orden and other Republican lawmakers had criticized the bill for its costs, which they said could reach $17 billion if the VA were to purchase 60,000 home loans.
The VA Home Loan Program Reform Act enacted Wednesday has the backing of the banking industry, including the Mortgage Bankers Association and the National Association of Mortgage Brokers.
The Veterans of Foreign Wars, American Legion and other veterans advocacy groups also supported the bill.
“This critical legislation represents a profound commitment to safeguarding the financial security and dignity of veteran homeowners, especially during times of hardship,” said James LaCoursiere, national commander of the American Legion.
