Abandoning Our Veterans: The Trump Administration Ends Lifeline Without a Backup Plan - With the VASP Program Ending, Too many Veteran Families Are Left Without An Urgently Needed Safety Net

Trump administration to end the Veterans Affairs Servicing Purchase (VASP) program has struck a devastating blow to thousands of American heroes and their families.

Launched in May 2024, the VASP program was designed to help veteran homeowners facing foreclosure by allowing the VA to purchase their defaulted loans and reissue them at significantly lower interest rates—as low as 2.5%. This critical intervention gave more than 17,000 veterans the ability to keep their homes and maintain stability during a period of economic uncertainty.

But on May 1, 2025, the program is being abruptly shut down.

No Backup Plan. No New Efforts. Just Silence.

The administration cites a lack of congressional authority and the VA’s limited servicing capacity as reasons for discontinuing the program. What’s even more troubling is the complete absence of any proposed alternative to replace it.

With foreclosure starts among VA loans surging over 30% earlier this year and tens of thousands of veterans still in distress, this move couldn’t come at a worse time.

Veterans who once served and sacrificed for this nation are now being abandoned in their time of need. Many are at risk of losing not only their homes but their sense of security, dignity, and peace of mind.

Critics Sound the Alarm

Housing advocates and industry professionals are raising red flags. The VA already has fewer tools at its disposal than agencies like the FHA when it comes to offering foreclosure prevention solutions. With the elimination of VASP, the gap widens—leaving veteran families dangerously exposed.

Republican lawmakers who support ending the program acknowledge that something needs to take its place—but so far, no such plan has been presented. Promises mean little when veterans are receiving foreclosure notices with no lifeline in sight.

What Now?

The end of VASP is more than a policy change—it’s a moral failure. Our nation owes its veterans more than lip service and thank-you-for-your-service stickers. We owe them action, protection, and a fighting chance to keep their homes.

As foreclosure notices stack up and options dry out, the need for grassroots advocacy, nonprofit support, and legislative pressure has never been more urgent. At KOVH Foundation, we’re working every day to stand in the gap where the system has failed.

But we can't do it alone.

💥 Take Action Now

• Support organizations like KOVH that are fighting for veteran families in foreclosure.

• Contact your representatives and demand a new federal support program to replace VASP.

• Share this story so others understand the crisis unfolding before us.

Our veterans didn’t give up on us. We can’t give up on them.

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