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“Legislative Hearing on: H.R. 913, Streamlining Aviation for Eligible Veterans Act of 2025, H.R. 980, the Modernizing the Veterans On-Campus Experience Act of 2025, H.R.1364, the Automotive Support Services to Improve Safe Transportation Act of 2025, H.R. 1458, the Veterans Education and Technical Skills Opportunity Act of 2025, H.R. 1960, the Simplifying Veterans Assistance Act of 2025, H.R. 1527, the Reforming Education for Veterans Act, H.R. 1793, the Veterans Readiness and Employment Transparency Act of 2025, H.R. 1872, Fairness in Veterans’ Education Act, H.R. 1815, VA Home Loan Program Reform Act, H.R. 1814, Restoring the VA Home Loan Program in Perpetuity Act of 2025 , H.R. 1957, the End Veteran Homelessness Act of 2025, H.R. 1423, Guard and Reserve Parity Act of 2025, Discussion Draft, To amend title 38, United States Code, to modify the conditions under which the Secretary of Veterans Affairs is required to redevelop the individualized vocational rehabilitation plan for a veteran, and for other purposes, and H.R. 1803, the Fair Access to Co-ops for Veterans Act of 2025”

House Veterans Affairs Committee, Economic Opportunity Subcommittee Hearing

March 11, 2025 (recording here)

HEARING INFORMATION

Witnesses & Written Testimony (linked) (Panel One):

• Mr. John Bell: Executive Director, Loan Guaranty Service, U.S. Department of Veterans Affairs

• Mr. Nick Pamperin: Executive Director, Veterans Readiness & Employment, U.S. Department of Veterans Affairs

• Mr. Thomas J. Alphonso: Assistant Director, Policy and Implementation, VBA Education Service, U.S. Department of Veterans Affairs

• Ms. Jill Albanese: Director of Clinical Operations, U.S. Department of Veterans Affairs

Witnesses & Written Testimony (linked) (Panel Two):

• Ms. Kristina Keenan: Deputy Director, National Legislative Service, Veterans of Foreign Wars

• Ms. Julie Howell: Associate Legislative Director for Government Relations, Paralyzed Veterans of America

• Ms. Elizabeth Balce: Executive Vice President of Servicing at Carrington Mortgage, Mortgage Bankers Association

• Mr. Tobias Peter: Co-Director of the Housing Center, Senior Fellow, American Enterprise Institute

• Mr. Will Hubbard: Vice President for Veterans and Military Policy, Veterans Education Success

Keywords mentioned:

• VA Home Loan Program, Veteran Affairs Servicing Purchase (VASP) program, Veteran Readiness and Employment (VR&E) program, Vet Success on Campus (VSOC) counselors, veteran homelessness, HUD-VASH program, GI Bill benefits, flight training programs, fraud, waste

IN THEIR WORDS

OPENING STATEMENTS FROM THE SUBCOMMITTEE

• Chairman Derrick Van Orden discussed the 14 legislative proposals under consideration, highlighting three of his bills. These bills aimed to modernize the requirements for Vet Success on Campus (VSOC) officers, restore the VA Home Loan Program, and establish a partial claim program for veterans undergoing loan mitigation. He voiced concerns about the potential risks posed by the VA Servicing Purchase Program (VASP) to the VA Home Loan Program and stressed the necessity of preserving benefits for veterans.

• Ranking Member Chris Pappas mentioned three bills related to the Veteran Readiness and Employment (VR&E) program, calling for more counselors and staff to address existing delays. He also underscored the importance of other legislation, including the End Veteran Homelessness Act, the Guard and Reserve GI Bill Parity Act, and the Fair Access to Co-ops for Veterans Act. The Ranking Member expressed concerns over VA staff terminations and urged corrective action to prevent further service disruptions.

SUMMARY OF KEY POINTS (PANEL ONE)

• Mr. John Bell expressed the VA’s support for the Modernizing Veterans On-Campus Experience Act, the Veterans Education and Technical Skills (VETS) Opportunity Act, and the Guard and Reserve GI Bill Parity Act, while noting concerns regarding data availability and implementation timelines. He reiterated the VA’s strong commitment to ending veteran homelessness but opposed the Simplifying Veterans Assistance Act bill, citing it as unnecessary. Additionally, he supported the Automotive Support Services to Improve Safe Transportation (ASSIST) Act with amendments, cautioning against provisions that could significantly increase costs without clear benefits to veterans.

• Ranking Member Pappas asked several questions that Mr. Nick Pamperin did not answer, stating he would take them for the record. These included inquiries about the impact of VA terminations on the VR&E program, whether any VR&E supporting staff had been removed, whether VR&E counselors were exempt from the hiring freeze, whether VR&E counselors had voluntarily or involuntarily left since the hiring freeze, and whether wait times had increased.

• Ranking Member Pappas sought clarification on his proposed legislation to redevelop individualized vocational rehabilitation plans. Mr. Pamperin explained that plans can be redeveloped due to worsening disabilities or labor market changes. He supported the bill for adding clearer guidelines. The Ranking Member asked if repeated plan changes affected counselor caseloads. Mr. Pamperin stated that changes did not increase caseloads since veterans remained within the system.

• The Ranking Member then asked about the employment numbers within the VA Home Loan Guarantee Office and whether staff had been terminated. Mr. Bell said he would take the question for the record. Ranking Member Pappas questioned the number of veterans currently supported by VASP. Mr. Bell confirmed that 15,000 veterans were in the program.

• Rep. Kimberlyn King-Hinds asked if rural providers faced difficulties in submitting applications for transitional housing programs. Ms. Jill Albanese confirmed that rural and territorial providers may face more challenges but emphasized that grants were available. Rep. King-Hinds inquired whether the VA faced difficulties working with community organizations in rural areas. Ms. Albanese stated that she was unaware of specific barriers but was open to addressing concerns.

• Rep. King-Hinds asked about the need for a dedicated VR&E hotline, particularly for veterans in remote areas. Mr. Pamperin confirmed support for legislation creating a VR&E call center but needed to check its availability for territories.

• Rep. Delia Ramirez focused on the availability of HUD-VASH vouchers for homeless veterans. Ms. Albanese stated that about 10,000 vouchers were currently available. Rep. Ramirez asked if veterans were ineligible for HUD-VASH due to eligibility restrictions. Ms. Albanese confirmed that some veterans were unable to access the program due to restrictions.

• Rep. Ramirez inquired whether the End Veteran Homelessness Act would expand HUD-VASH eligibility. Ms. Albanese confirmed that it would broaden eligibility and allow veterans to transfer into the program. Rep. Ramirez asked if the bill would help communities end veteran homelessness, and Ms. Albanese agreed that it would.

• Rep. Tom Barrett asked why the VA opposed including non-articulating trailers in the ASSIST Act. Ms. Albanese cited safety concerns, explaining that they were separate devices not approved by federal safety regulations. Rep. Barrett asked whether there was a way to incorporate the needs of veterans who rely on trailers for mobility devices. Ms. Albanese said she would take the question for the record.

• Rep. Barrett then inquired about the Guard and Reserve GI Bill Parity Act and concerns about transferring data from the Department of Defense (DoD). Mr. Thomas Alphonso explained that the VA did not currently receive such data from the DoD and would need to establish a process.

• Rep. Abe Hamadeh asked how the VA justified servicing thousands of mortgages through VASP rather than implementing a partial claims program. Mr. Bell explained that VASP was a temporary solution designed to mitigate rising mortgage rates but was not intended as a long-term solution. Rep. Hamadeh questioned if the VA planned to adjust VASP usage now that interest rates were declining. Mr. Bell indicated that the VA was monitoring the situation but would defer to the administration’s future goals.

• Rep. Hamadeh asked if the VA had the authority to implement a partial claims program. Mr. Bell said the current statutory framework did not expressly authorize it and that the VA would need congressional action.

• Rep. Hamadeh sought more information on how the VETS Opportunity Act would benefit veterans in online programs. Mr. Alphonso explained that it would remove barriers to online education while ensuring substantial instructor interaction to maintain educational quality.

• Rep. Morgan McGarvey asked about the status of the VA’s proposed rulemaking on home loan program requirements, which was announced in December 2023. Mr. Bell explained that the VA had received multiple responses and was evaluating how to align its requirements with Fannie Mae and Freddie Mac standards while ensuring veterans had access to safe housing. He emphasized balancing regulatory oversight with flexibility for homebuyers.

• Rep. McGarvey inquired whether the VA could commit to providing a legal analysis of its authority to implement a partial claim program within 60 days. Mr. Bell agreed to take the request back to the administration and said that the VA was actively evaluating options. Rep. McGarvey expressed frustration that similar responses had been given in past hearings without concrete follow-up.

• Chairman Van Orden criticized Mr. Bell and Mr. Pamperin for providing vague and unprepared answers, particularly in response to questions from Ranking Member Pappas. He warned that such behavior was unacceptable and that officials testifying before the Committee must be prepared.

• The Chairman asked if the VA was directed by the Department of Justice (DoJ) regarding which employees to terminate. Mr. Bell and Mr. Pamperin both said that they would take the question for the record, prompting further frustration from the Chairman. Chairman Van Orden stated that there was a clear process to reinstate employees if their termination negatively impacted veterans’ services. He urged Committee members to use this process if necessary.

• Chairman Van Orden asked for an update on VASP, including how many veterans were currently utilizing it. Mr. Bell stated that approximately 15,117 veterans were in the program. The Chairman questioned the total cost of VASP. Mr. Bell reported that the program had accumulated around $4.8 billion in volume. The Chairman pressed the witnesses on the VA’s original cost estimate per loan compared to actual spending. Mr. Bell initially did not provide an exact figure, but the Chairman stated that the original estimate was $292,000 per loan, whereas the actual cost had risen to $321,000 per loan—a significant discrepancy when applied to thousands of cases.

• The Chairman asked how many veterans in the VASP program had missed payments and what the VA was doing in response. Mr. Bell confirmed that 31 veterans had missed payments and were in the foreclosure process, which varied by state.

• Chairman Van Orden challenged Mr. Bell’s assertion that the VA lacked statutory authority for a partial claim program. Mr. Bell hesitated but acknowledged that a past partial claim program was implemented under COVID-era emergency provisions. The Chairman pointed to the VA Home Loan Program Reform Act, which would explicitly authorize the VA to implement partial claims. He stressed the importance of the VA aligning with other federal agencies in providing such options.

SUMMARY OF KEY POINTS (PANEL TWO)

• Ms. Kristina Keenan, on behalf of the Veterans of Foreign Wars (VFW), strongly advocated for the Guard and Reserve GI Bill Parity Act, arguing that reserve service members deserve equal consideration for their time in uniform when calculating post-9/11 GI Bill eligibility. She also supported the Modernizing the Veterans On-Campus Experience Act, which would remove the master’s degree requirement for VSOC counselors, making it easier to fill these positions. Additionally, Ms. Keenan backed legislation to improve VR&E transparency, as well as efforts to combat veteran homelessness through enhanced case management and financial assistance programs.

• Ms. Julie Howell, representing the Paralyzed Veterans of America (PVA), highlighted the specific needs of veterans with spinal cord injuries and disorders. She voiced strong support for the ASSIST Act, which seeks to rectify unintended limitations in the Veterans Auto and Education Improvement Act of 2022 and ensure that disabled veterans can modify their vehicles as intended. Ms. Howell also commended the efforts to modernize the VSOC program, believing it should be made more accessible and comprehensive. However, she raised concerns about proposed changes to the VA’s VR&E outreach, arguing that mandated in-person briefings could overburden already stretched counselors.

• Ms. Elizabeth Balce testified on behalf of the Mortgage Bankers Association regarding the VA Home Loan Program. She mentioned the importance of creating a permanent partial claim option for veteran borrowers, ensuring they have loss mitigation tools comparable to FHA borrowers. Ms. Balce also urged Congress to prevent reductions in the VA loan guarantee, arguing that such changes would make VA loans less competitive and limit veterans’ access to mortgages. She strongly opposed an arbitrary cap on the VA’s ability to assist struggling borrowers and called for the VA funding fee to remain aligned with the program’s original mission.

• Mr. Tobias Peter praised the VA Home Loan Program for its historically strong performance in managing mortgage risk. However, he warned that expanded loss mitigation programs, such as the VASP program, could lead to unintended consequences, including moral hazard and increased taxpayer exposure. Mr. Peter expressed concern that the VA's shift toward direct loan management could mirror failures seen in the federal student loan system. He encouraged the Committee to limit the expansion of VA loan purchases and explore private-sector alternatives for managing loan defaults.

• Mr. Will Hubbard from Veterans Education Success focused on protecting the integrity of the GI Bill and other veteran education programs. He strongly opposed the VETS Opportunity Act, arguing that it would expose the GI Bill to fraud and abuse by allowing unregulated programs to receive federal funds. Mr. Hubbard also raised concerns about limiting compliance surveys for multi-campus institutions, stating that such restrictions could allow predatory schools to continue exploiting veterans. While he supported some provisions to assist student veterans called to active duty, he warned that removing oversight measures for flight training programs could result in financial waste and leave veterans without viable career paths.

• Ranking Member Pappas questioned witnesses on the Streamlining Aviation for Eligible (SAFE) Veterans Act, which would allow non-degree flight training programs to be approved under the VR&E program. He expressed concern that veterans who fail to complete the program or do not secure employment as pilots would be left without career opportunities. Mr. Hubbard agreed, stating that veterans should have long-term career stability and that any training program using GI Bill benefits should lead to meaningful employment. Ms. Howell responded that PVA had chosen not to take a stance on the bill and had not included it in their written testimony.

• The Ranking Member asked Ms. Balce about the potential impact of abruptly ending the VASP program, given that up to 80,000 veteran homeowners were at risk of foreclosure. Ms. Balce explained that veterans currently relying on VASP would be left with limited options, such as repayment plans or loan modifications that could increase their mortgage payments significantly. She argued that adding a permanent partial claim option, which would allow veterans to move missed payments to the end of the loan, would provide a more stable solution.

• Ranking Member Pappas inquired about disparities between VA loans and other federally backed loans. Ms. Balce explained that while FHA, USDA, and Fannie Mae all offer partial claim options, the VA does not, putting veteran borrowers at a disadvantage. She pointed out that the VA’s previous use of a partial claim program during COVID was effective and should be reinstated.

• Rep. King-Hinds expressed strong support for the Guard and Reserve GI Bill Parity Act and asked Ms. Keenan for recommendations to balance the costs of the program while ensuring benefits for those who serve. Ms. Keenan said that every day of service should count toward education benefits, especially as reserve members are increasingly deployed for domestic disaster relief and security operations.

• Rep. King-Hinds then asked about the importance of the VR&E Transparency Act. Ms. Keenan responded that the bill aimed to improve communication between VR&E counselors and student veterans, ensuring they receive the necessary guidance to complete their education.

• Rep. Ramirez asked about the impact of limiting the VASP program to 250 borrowers per year. Ms. Balce stated that she did not know how that figure was determined but considered it too low given the number of veterans at risk of foreclosure. She warned that eliminating VASP before establishing a permanent partial claim program would result in a wave of foreclosures.

• Rep. Ramirez highlighted concerns about educational programs that charge veterans thousands of dollars for low-quality or freely available content. She asked the witnesses if it was alarming that veterans’ GI Bill benefits could be wasted on such programs. Mr. Hubbard agreed, stating that veterans expect quality education. Ms. Keenan echoed his sentiments and advocated to ensure that GI Bill funds go toward programs that lead to real job opportunities.

• Rep. Jay Obernolte defended his SAFE Veterans Act, arguing that removing the four-year degree requirement for vocational flight training would better align with industry hiring practices. Ms. Keenan confirmed that the VFW supported the legislation, stating that if a VR&E counselor deemed flight training necessary for a veteran’s employment, the bill would provide a reasonable expansion of benefits.

• Rep. Grace Meng spoke in support of her Fair Access to Co-ops for Veterans Act, which would allow veterans to use VA Home Loan benefits to purchase cooperative housing. She pointed out that co-ops are a primary affordable housing option in cities like New York and that veterans in these areas are unfairly excluded from using their benefits.

• Chairman Van Orden challenged the benefits of VASP, arguing that the program shifts financial risk from mortgage lenders to taxpayers. He questioned who ultimately pays the cost when the VA purchases a loan and lowers the interest rate. Ms. Balce acknowledged that servicers are paid for their losses when the VA buys a loan, but she argued that VASP prevents widespread foreclosures and offers veterans a needed safety net.

• Chairman Van Orden asked Mr. Peter to draw parallels between VASP and the federal student loan system, which he argued had led to unchecked spending and debt forgiveness. Mr. Peter warned that government-backed loan programs tend to expand unsustainably, and without guardrails, the VA could face similar long-term financial risks.

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