Wichita Standard

Senator Richard Blumenthal of Connecticut and Senator Lisa Blunt Rochester of Delaware announced the introduction of new legislation intended to support veterans facing foreclosure. The announcement comes in response to the imminent cancellation of the Veterans Affairs Servicing Purchase Program (VASP) by the Trump Administration, scheduled for May 1.

In their announcement, the Senators criticized the decision to cancel the VASP program. "Veterans facing foreclosure deserve a viable solution to get their mortgage current and keep their homes. Secretary Collins’ decision to end the VASP Program without consulting Congress, veterans, or service lenders was an act of consummate cruelty and incompetence—potentially leading tens of thousands of veterans at-risk of losing their home," the Senators stated. They have urged the administration to extend the program until their proposed legislation becomes law.

The new bill, called the Veterans Housing Stability Act of 2025, will aim to establish a partial claim program for veterans who are encountering severe financial difficulties. This program is designed to replace the VASP, the current means for veterans to avoid foreclosure through VA home loans, which will be unavailable to new applicants after May 1. The Senators are calling on VA Secretary Doug Collins to delay the termination of VASP until the new program can be enacted.

According to Blumenthal and Blunt Rochester, the sudden cancellation of VASP, effective May 1, could potentially affect 80,000 veterans by denying them access to one of the few resources available for preventing foreclosure. The program has provided assistance to over 17,000 veterans since its inception in 2024. The Senators stress that their proposed legislation is essential in providing the necessary support to veterans at risk of losing their homes due to the abrupt end of VASP.

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