On January 20, 2026, three bipartisan bills were signed into law, providing greater financial oversight of the VA, qualifying more disabled Veterans for affordable housing programs, and a bill that would connect Veterans with handicaps to assistance based on their current employment skills.

Each law individually addresses a narrow issue. Together, they reflect a broader emphasis on process, how eligibility is calculated, how plans are adjusted when realities change, and how financial gaps are identified before they affect service delivery. For Veterans, the impact depends less on headlines and more on how these rules are applied at the local and program level.

What Legislation Was Approved?

According to a statement released by the White House, the following bills were signed into law:

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Disabled Veterans Housing Support Act

"H.R. 224, the “Disabled Veterans Housing Support Act,” amends section 102(a)(20) of the Housing and Community Development Act of 1974 to require the exclusion of service-connected disability compensation when determining whether a person is a person of low and moderate income, a person of low income, or a person of moderate income, and for other purposes."

VA Budget Shortfall Accountability Act

"H.R. 1823, the “VA Budget Shortfall Accountability Act,” requires a report on certain funding shortfalls in the Department of Veterans Affairs; and H.R. 4446, the “Focused Assistance and Skills Training for Veterans’ Employment and Transition Success Act” or the “FAST VETS Act,” which specifies the conditions under which a veteran’s vocational rehabilitation plan must be redeveloped."

FAST VETS Act

"H.R. 4446, the “Focused Assistance and Skills Training for Veterans’ Employment and Transition Success Act” or the “FAST VETS Act,” which specifies the conditions under which a Veteran’s vocational rehabilitation plan must be redeveloped."

Why Disability Pay Has Been Blocking Some Veterans From Housing Help

For years, some disabled Veterans encountered an unexpected obstacle when applying for local housing assistance: service-connected disability compensation was sometimes counted as income during eligibility reviews. This caused some Veterans to exceed the income eligibility threshold for housing programs.

Many city, county, and tribal housing programs funded by the Community Development Block Grant program use income thresholds to decide who qualifies as low- or moderate-income. In practice, this meant a Veteran could qualify as disabled under VA standards but still lose housing assistance because compensation raised their income above a local cutoff.

The Disabled Veterans Housing Support Act changes that calculation. The bill excludes compensation received for a military service-connected disability from a Veteran's income when determining eligibility for assistance under the Community Development Block Grant (CDBG) program.

Andy Mangione, legislative advocate and Senior Vice President for AMAC Action said, “Disabled veterans should never be penalized for receiving the benefits they earned through service.”

The law also directs the Government Accountability Office to examine how disability compensation is treated across other HUD-administered programs and to report back to Congress, signaling that inconsistencies may persist beyond CDBG-related assistance.

What Changed in Housing Eligibility

The housing law does not create a VA housing program, expand VA home loan benefits, or override local housing availability limits. Veterans must still meet all other eligibility requirements set by local administrators.

The law specifically stops disability pay from being counted against Veterans at the income check stage for this housing assistance, helping more reach the point where their full application is considered.

For Veterans near the income cutoff, that shift may determine whether an application proceeds to full review or is stopped at intake.

Understanding the FAST VETS Act

The FAST VETS Act focuses on Veterans already using the Veterans Readiness and Employment program (VR&E), where individualized plans outline education, training, and employment goals.

VR&E plans are built around long-term feasibility. Problems arise when a Veteran’s health status, functional limitations, or employment barriers change, but the original plan remains in place.

Under the new law, when a required review finds that a Veteran’s long-range employment goal is no longer feasible, the VA must make a clear determination: either redevelop the plan with the Veteran or formally decline redevelopment.

The law requires VA to reconsider job-training plans when a Veteran’s situation changes, rather than leaving outdated goals in place. It doesn’t promise approval, but it does require a real review and clear outcome.

How the FAST VETS Act Changes VR&E Reviews

The law does not expand VR&E eligibility, increase funding, or alter benefit levels. Veterans must still qualify under existing criteria.

This change clarifies legal procedures: Veterans whose circumstances change now have a clearer statutory footing when requesting a plan review and clearer statutory outcomes when official decisions are made.

For Veterans navigating employment transitions alongside evolving medical conditions, that distinction can shape next steps.

The VA Budget Shortfalls That Triggered Mandatory Federal Oversight

The VA Budget Shortfall Accountability Act responds to recent funding gaps within the Department of Veterans Affairs, including shortfalls affecting both benefits administration and health care operations.

Instead of altering funding directly, this law tasks the Government Accountability Office with conducting independent reviews of the causes of those shortfalls and of how the VA manages its finances.

The first reviews must begin within 30 days of enactment, followed by annual reports for five years.

What Five Years of Independent Reviews Could Reveal About VA Funding Gaps

Each GAO review must analyze how the VA projected demand, allocated funds, shifted resources internally, and responded once shortfalls became apparent.

For Veterans, these reviews matter because budget errors can affect staffing, how long it takes to get appointments, and program availability, even if benefits are not cut. Oversight aims to prevent service disruptions from funding mistakes.

The law does not mandate reforms. It creates a record that future VA leadership and Congress must address.

What These Laws Fix and the Gaps They Leave in Place

All three laws make systems work differently at problem points: income checks for housing, plan updates for job training, and budget oversight for the VA. They aim to reduce recurring problems that harm Veteran access or timely support.

They do not resolve housing shortages, eliminate VR&E wait times, or guarantee stable VA funding. They narrow specific problems that repeatedly surfaced in oversight reviews and constituent cases.

How Veterans Can Use These Changes Now

Veterans applying for housing assistance should check how disability compensation is counted during income review. Those using VR&E should document health or employment changes before seeking plan redevelopment. Veterans interested in VA policy can monitor upcoming GAO findings, which may inform future decisions.

These laws do not make the system simpler. Instead, they clarify specific areas where rules and decisions now have to be updated to prevent unfair barriers or gaps.

Suggested reads:

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