AI-assisted analysis based on the official CRS summary. Source version: Jul 22, 2026. Analysis updated: Sep 15, 2026.
01 — The Text
What.
- Authorizes the VA to pay loan holders to prevent foreclosure on VA-guaranteed home loans, provided the VA obtains a secured interest in the property
- Establishes a five-year Partial Claim Program allowing the VA to purchase portions of indebtedness on VA loans in default or at imminent risk of default
- Requires the VA to develop and follow loss mitigation procedures before taking administrative actions like modifying loan terms
- Requires the VA to report to Congress on strategies to prevent discrimination against veterans seeking real estate agent or broker representation
- Temporarily increases funding amounts for the VA's Grant and Per Diem program for FY2025 and FY2026 for entities serving homeless veterans
02 — The Stakes
So what?
- Veterans who default on loans where the VA has made a partial claim become liable to the VA for any resulting losses
- The law does not specify the funding increase amounts or the duration beyond FY2026
- The scope and enforceability of the real estate agent discrimination reporting requirement are not detailed in the summary
- The specific loss mitigation procedures and their effectiveness are to be prescribed by the VA rather than mandated by statute
03 — The Path
Now what?
- Signed by President on July 30, 2025
- Became Public Law No. 119-31
- Passed Senate without amendment by voice vote on July 15, 2025
- Senate Committee on Veterans' Affairs discharged by unanimous consent prior to passage
Legislative History
Actions.
- Jul 30, 2025 — Became Public Law No: 119-31.
- Jul 30, 2025 — Signed by President.
- Jul 30, 2025 — Signed by President.
- Jul 30, 2025 — Became Public Law No: 119-31.
- Jul 18, 2025 — Presented to President.
- Jul 18, 2025 — Presented to President.
- Jul 16, 2025 — Message on Senate action sent to the House.
- Jul 15, 2025 — Passed Senate without amendment by Voice Vote. (consideration: CR S4373-4374)