United States (U.S.) President Donald Trump's administration has scrapped a federal loan relief program designed to help former service members struggling to keep their homes. The development has increased the financial burden on ex-military personnel, as around 15,000 U.S. veterans' mortgage payments have increased by at least $150.
National Public Radio (NPR) published an investigation on Friday revealing that more than 700 ex-servicemen have observed a $1,000 increase in their home loans since the government changed the rules. The findings were based on previously unpublished data obtained from the Department of Veterans Affairs (VA), which oversees a mortgage program for eligible military veterans.
The Trump administration ended the Veterans Affairs Servicing Purchase (VASP) program in 2025, removing an option that allowed the government to purchase certain troubled mortgages and offer borrowers more affordable repayment terms. The program had been introduced to help veterans who fell behind on payments avoid losing their homes.
NPR found that 63% of veterans who received loan modifications faced higher monthly payments, compared with just 2% of borrowers whose modified loans were backed by Fannie Mae and Freddie Mac. Loan modifications are generally intended to make repayment manageable for homeowners experiencing financial difficulties.
However, the closure of VASP left some veterans facing higher interest rates when their mortgages were restructured. The administration has since introduced a separate partial-claim program under legislation signed by President Donald Trump in July 2025.
That program, which took effect in June 2026, allows eligible borrowers to defer certain overdue amounts, but it does not automatically reverse payment increases resulting from earlier loan modifications. The situation has sparked concerns among advocacy groups regarding the long-term housing security of those who served the nation.
Financial experts suggest that the transition between these programs has created a gap in support, leaving vulnerable families to navigate complex banking requirements without the previous safety net. Many veterans are now calling for a review of the current policy to ensure that those who sacrificed for the country are not penalized by bureaucratic shifts.
The Department of Veterans Affairs (VA) has stated that it is monitoring the impact of these changes, though critics argue that the current measures are insufficient to address the immediate financial strain on households. As the debate continues, the focus remains on whether the administration will provide additional relief to those affected by the policy shift.