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Excludes VA disability compensation and dependency and indemnity compensation from household or family income when HUD determines eligibility, benefit levels, and tenant rent for HUD-administered housing assistance programs. The change directs HUD to treat those VA payments as non-countable income for housing purposes. The rule applies to any household or family with members receiving those VA benefits and is categorical (overrides other law). No specific funding, dollar thresholds, or effective date are provided, so HUD and local housing authorities would need to update income-assessment procedures to comply.
The bill increases housing eligibility and affordability for veterans by excluding VA disability/DIC from HUD income calculations, but it raises HUD costs and may reduce or delay access to assistance for some non‑veteran low‑income households.
Veterans who receive VA disability compensation or Dependency and Indemnity Compensation (DIC) will no longer have those payments counted as income for HUD eligibility, increasing the number of veterans who qualify for HUD housing programs.
Households that include veterans may pay lower tenant rent contributions and receive larger HUD benefit amounts because VA disability/DIC will be excluded from income calculations used to set rent and benefit levels.
Excluding VA disability and DIC from HUD income calculations will likely increase HUD program costs, which could raise taxpayer outlays or require reallocation of HUD funds.
Some non-veteran low-income households may face longer waits or reduced access to limited HUD resources if more veterans become eligible due to the income exclusion.
Introduced November 7, 2025 by Salud Carbajal · Last progress November 7, 2025