How Today’s Tariffs Are Deepening the VA Foreclosure Crisis and Hurting Veteran Families

Across America, veteran families are fighting to stay afloat as costs continue to rise, wages remain stagnant, and vital safety nets disappear. For many, the dream of homeownership — often achieved through a hard-earned VA loan — is now under threat. Recent tariff policies are adding fuel to that fire, directly impacting veteran households and worsening the ongoing VA foreclosure crisis.

The Hidden Cost of Tariffs for Veteran Families

Tariffs are often presented as economic tools to protect American industries. But behind the headlines, they’re quietly driving up the cost of living for millions of families — including those who served our country.

According to recent economic analyses, U.S. households could pay an additional $2,000 to $4,000 per year because of tariffs on imported goods. For veterans living on fixed incomes, disability benefits, or modest pensions, those higher costs hit hard. Every extra dollar spent on groceries, medical supplies, and utilities is a dollar not available for rent or mortgage payments.

Even health care is being affected. Senators recently warned the VA that tariffs are raising costs and threatening access to essential medical supplies and equipment used by veteran patients. When out-of-pocket expenses climb, financial stress grows — and that strain can push vulnerable families closer to the edge.

A Perfect Storm for Veteran Homeowners

Tariffs aren’t just raising the cost of daily life; they’re also rippling through the housing market. When tariffs increase the price of imported construction materials — such as lumber, steel, and drywall — new homes and renovations become more expensive. This, in turn, drives up overall home prices and makes housing less affordable for everyone, including veterans using VA-backed loans.

Higher inflation from tariffs may also push interest rates upward, which means larger monthly payments for homeowners and less purchasing power for those looking to buy. Many veterans who already face tight budgets are finding themselves squeezed from both sides: higher living expenses and higher mortgage costs.

The End of VA Safeguards and the Rising Risk of Foreclosure

Compounding this crisis is the recent end of the VA’s Veteran Affairs Servicing Purchase (VASP) program, which once provided struggling veteran homeowners with relief options. Without VASP, tens of thousands of veterans now have fewer lifelines if they fall behind on payments.

At the very moment when everyday costs are skyrocketing due to tariffs and inflation, this safety net has been pulled away. The result? More veteran families at risk of foreclosure — not because of financial irresponsibility, but because of economic conditions beyond their control.

Veteran-Owned Businesses and Jobs Also Feeling the Pressure

Many veterans own or work in small manufacturing and trade-related businesses — sectors hit hard by tariffs. When imported parts become more expensive or harder to get, these businesses face slimmer margins, layoffs, or even closures. For veteran workers, this means lost income and a higher likelihood of defaulting on mortgage payments.

Why This Matters for Our Mission

At the KOVH Foundation, our mission is to keep veteran families housed and stable. Tariffs and economic pressures may seem like faraway policy issues, but their effects are showing up in the very lives we aim to protect. They tighten budgets, drive up mortgage risk, and increase the number of families calling us for help.

Veterans who stood ready to serve our nation shouldn’t have to fight another battle — this time to keep a roof over their heads.

What We Can Do Together

Here are ways we can all take action:

1. Educate and Empower Veteran FamiliesHelp veterans re-evaluate their budgets and prepare for higher costs. Encourage early communication with lenders before a missed payment turns into a foreclosure risk.

2. Provide Housing Counseling and SupportVeterans facing payment strain should know their options. Even without VASP, other relief programs and resources may still be available — but families must act quickly.

3. Advocate for Policy ChangeJoin us in calling on lawmakers to restore or replace foreclosure protections for VA borrowers and to consider how trade policies directly impact America’s veterans.

4. Strengthen Our Safety NetSupport KOVH’s “We’ve Got Your Backs” initiative, which delivers care packages, financial guidance, and emotional support to veterans at risk of losing their homes.

Standing Guard for Those Who Served

The VA foreclosure crisis is not an isolated issue — it’s the result of layered challenges: rising costs, reduced safety nets, and policy choices that ripple through the economy. Tariffs may be designed to protect industries, but they’re also hurting the very people who built and defended this nation.

At the KOVH Foundation, we believe no veteran family should face foreclosure alone. Together, we can raise awareness, restore protections, and ensure our veterans have the stability and dignity they deserve.

Join the Mission:👉 Learn more at www.keepourvetshoused.org👉 Sign the petition to protect veterans from foreclosure: https://chng.it/y9kRx8ghWn