Source: US Congressional Budget Office
Bill Summary
H.R. 1815 would temporarily increase the amounts authorized for the Grant and Per Diem Program through which The Department of Veterans Affairs (VA) awards funding to organizations to provide transitional housing for veterans. The bill also would establish a Partial Claim Program through which VA would pay lenders amounts to prevent foreclosure on guaranteed loans that are delinquent or in default.
Estimated Federal Cost
The estimated budgetary effects of H.R. 1815 are shown in Table 1. The bill would decrease net direct spending by $147 million and increase spending subject to appropriation by $146 million over the 2025-2035 period. The costs of the legislation fall within budget function 700 (veterans benefits and services).
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Table 1. Estimated Budgetary Effects of H.R. 1815 |
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By Fiscal Year, Millions of Dollars |
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|
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
2033 |
2034 |
2035 |
2025-2030 |
2025-2035 |
|
|
Increases or Decreases (-) in Direct Spending |
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|
Estimated Budget Authority |
11 |
-13 |
-34 |
-39 |
-41 |
-30 |
0 |
0 |
0 |
0 |
0 |
-146 |
-146 |
|
Estimated Outlays |
10 |
-14 |
-33 |
-39 |
-41 |
-30 |
0 |
0 |
0 |
0 |
0 |
-147 |
-147 |
|
Increases in Spending Subject to Appropriation |
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|
Authorization |
75 |
73 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
148 |
148 |
|
Estimated Outlays |
66 |
71 |
8 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
146 |
146 |
Basis of Estimate
For this estimate, CBO assumes that H.R. 1815 will be enacted in fiscal year 2025 and that provisions will take effect upon or soon after enactment. CBO also estimates that outlays will follow historical spending patterns for affected programs.
Provisions That Affect Spending Subject to Appropriation and Direct Spending
Section 5 would temporarily increase the amounts authorized for the Grant and Per Diem Program through which VA pays a daily rate to public and nonprofit entities that provide housing and supportive services to homeless veterans.
Current law limits the total amount that VA can award for those grants to $258 million each year; section 5 would raise that limit to $344 million for 2025 and 2026. Using information on past grant payments and historical spending patterns, CBO estimates that the amounts paid for grants would increase by a total of $169 million over the 2025-2035 period.
Some of the homeless veterans who would obtain services under section 5 would be veterans who have been exposed to environmental hazards; thus, CBO expects that some of the costs of implementing the bill would be paid from the Toxic Exposures Fund (TEF) established by Public Law 117-168, the Honoring our PACT Act. The TEF is a mandatory appropriation that VA uses to pay for health care, disability claims processing, medical research, and information technology modernization that benefit veterans who were exposed to environmental hazards. Additional spending from the TEF occurs if legislation increases the costs of similar activities that benefit veterans with such exposure. Thus, in addition to increasing spending subject to appropriation, enacting section 5 would increase amounts paid from the TEF, which are classified as direct spending.
CBO projects that the proportion of costs paid by the TEF will grow over time based on the amount of formerly discretionary appropriations that CBO expects will be provided through the mandatory appropriation as specified in the Honoring our PACT Act. CBO estimates that over the 2025-2035 period, implementing section 5 would increase outlays for spending subject to appropriation by $146 million and direct spending by $23 million.
Direct Spending
The discussion above in “Provisions That Affect Spending Subject to Appropriation and Direct Spending” describes the increased authorizations for the Grant and Per Diem Program that would increase direct spending from the TEF under section 5. Section 3 of the bill would establish a Partial Claim Program described below, which would decrease direct spending. In total, the bill would decrease net direct spending outlays by $147 million over the 2025‑2035 period (see Table 2).
Partial Claim Program.VA provides loan guarantees to lenders that allow eligible borrowers to obtain better loan terms—such as lower interest rates or smaller down payments—to purchase, construct, improve, or refinance a home. VA typically pays lenders up to 25 percent of the outstanding mortgage balance if a borrower’s home is foreclosed upon. Those payments, net of fees paid by borrowers and recoveries by lenders, constitute the subsidy cost for the loan guarantees.