On January 20, 2026, the President signed three bills into law affecting veterans.
H.R. 224 (Disabled Veterans Housing Support Act) requires excluding service-connected disability compensation when determining low- and moderate-income status under the Housing and Community Development Act of 1974.
H.R. 1823 (VA Budget Shortfall Accountability Act) requires a report on certain funding shortfalls at the Department of Veterans Affairs.
H.R. 4446 (Focused Assistance and Skills Training for Veterans’ Employment and Transition Success Act or FAST VETS Act) specifies the conditions under which a veteran’s vocational rehabilitation plan must be redeveloped.
The laws affect housing eligibility calculations, VA budget oversight, and rules for veterans’ vocational rehabilitation plans.
Follow Up Questions
What income types are currently counted when determining low- or moderate-income status for housing, and how will excluding service-connected disability compensation change eligibility?Expand
HUD programs generally count most household income when determining low‑ or moderate‑income status (wages and salaries, self‑employment income, Social Security retirement, pensions, unemployment, interest/dividends, rental income, and many benefit payments) using HUD’s “annual income” and program income rules (24 C.F.R. §5.609 and program guidance). H.R.224 amends the Housing and Community Development Act (42 U.S.C. §5302(a)(20)) to require States, units of general local government, and Indian tribes to exclude VA service‑connected disability compensation from income calculations for determining low‑ and moderate‑income status—meaning veterans’ VA disability pay would not be counted toward household income for CDBG and similar HUD eligibility tests, which can make some veterans newly eligible or reduce their counted income for benefits tied to those thresholds.