Sponsors (10)
The bill improves housing access and financial outcomes for veterans by excluding VA disability payments from HUD income calculations, but does so at the likely cost of increased HUD spending and potentially reduced access or benefits for some non‑veteran low-income applicants.
Veterans who receive VA disability or Dependency and Indemnity Compensation (DIC) will have those payments excluded from HUD income calculations, making more veterans eligible for HUD housing assistance.
Veteran households that receive VA disability or DIC could receive larger HUD benefit amounts or pay lower rent because those payments will no longer be counted in benefit calculations.
Veterans and housing administrators will benefit from clearer rules because the bill creates a statutory exclusion for VA disability benefits across HUD programs, simplifying income-counting and administration.
Taxpayers and HUD program funding could face higher costs because excluding VA disability and DIC from income may increase HUD subsidy levels or expand enrollment, requiring additional federal spending or resources.
Non-veteran low-income applicants may experience longer waitlists or reduced benefits if limited HUD resources are shifted to accommodate additional veteran-eligible households.
Based on analysis of 2 sections of legislative text.
Excludes VA disability compensation and dependency and indemnity compensation from HUD income calculations for eligibility, benefit amounts, and rent.
Official title: To exclude from consideration as income under the housing assistance programs of the Department of Housing and Urban Development amounts received by a family from the Department of Veterans Affairs for service-related disabilities of a member of the family, and for other purposes.
Introduced November 7, 2025 by Salud Carbajal · Last progress November 7, 2025
Prohibits HUD from counting veterans’ disability compensation (38 U.S.C. disability pay) and dependency and indemnity compensation as household income when determining eligibility, benefit amounts, or rent for HUD-assisted housing programs. The change means VA disability and DIC will not reduce veterans’ access to or the level of federal housing assistance administered by HUD.