Sponsors (10)
Excluding VA disability and DIC from HUD income calculations improves housing access and reduces homelessness risk for veterans (and benefits some low‑income households) at the cost of higher federal housing subsidies, possible longer waits for other low‑income renters, and administrative implementation work.
Veteran households receive improved access to subsidized housing and a lower risk of homelessness because VA disability and DIC are excluded from HUD income calculations.
Low-income households that include veterans may qualify for new or larger HUD housing subsidies as their counted income is reduced.
Veterans receiving disability or DIC will face higher eligibility for HUD programs and pay lower rents because those benefits are excluded from income calculations.
Taxpayers may bear higher costs because excluding veteran benefits from HUD income increases the federal subsidy burden for housing programs.
Some non‑veteran low‑income households could face longer waits for assistance if more units or subsidies are allocated to households newly eligible after the exclusion.
HUD and local housing agencies will incur implementation and administrative costs and staff time to update income calculations and systems.
Based on analysis of 2 sections of legislative text.
Excludes VA disability compensation and dependency and indemnity compensation from countable household income for HUD housing assistance eligibility, benefits, and rent calculations.
Excludes disability compensation paid under title 38 and dependency and indemnity compensation from being counted as household or family income for HUD housing assistance programs. The change applies when deciding who qualifies for HUD rental assistance, how much benefit a household gets, and how much rent the household must pay, which can increase eligibility and lower rent for affected veterans and their families. HUD will need to update its income-counting rules, verification processes, and rent calculations to implement the exclusion; the text does not authorize new spending or specify an effective date.
Introduced November 7, 2025 by Salud Carbajal · Last progress November 7, 2025