Takano & Blumenthal Press VA Secretary Collins to Immediately Increase Funding for Critical Program Housing Homeless Veterans
Committee leaders call on Trump VA to follow the law and increase reimbursement rates for organizations serving more than 25,000 homeless veterans
[WASHINGTON, D.C.] – House Veterans’ Affairs Committee Ranking Member Mark Takano (D-CA) and Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal (D-CT) are pressing Department of Veterans Affairs (VA) Secretary Doug Collins to immediately increase reimbursement rates for organizations housing and providing critical resources for more than 25,000 homeless veterans.
In a letter, the lawmakers called out Secretary Collins for failing to comply with a law that ordered increasing these critical funds: “In January, Congress directed the Department of Veterans Affairs (VA) to increase the reimbursement for organizations serving homeless veterans through the Grant and Per Diem (GPD) program. For months, the Department has provided assurances that this bipartisan priority would be implemented as soon as possible. Now, nearly a year later, you continue to withhold these critical funds and undercut the very lifeline that supports nearly 25,000 veterans in their greatest time of need.”
Nearly one year after Congress directed increases to the Grant & Per Diem (GPD) program, community organizations are still being reimbursed at rates that fall well below what the law directs and far short of what they need to serve homeless veterans. The GPD program is one of VA’s central homelessness initiatives, providing grants to community-based nonprofits that deliver transitional housing, case management, and supportive services that help veterans regain stability and move toward permanent housing.
The lawmakers emphasized the harmful impact of Collins’ failure to increase the reimbursement rates: “This legislative language is the result of years of calls from VA and homeless advocacy groups to raise the per diem rate to more adequately reimburse providers for the services they deliver to veterans. Failure to exercise this authority is a betrayal to Congress, community service providers, and homeless veterans, and failure to exercise this authority will move us further from the goal we share to end veteran homelessness. Any additional delays in the implementation of these policies, which have strong bipartisan backing and the support of Veteran Service Organizations (VSOs) and homeless service providers, will negatively impact the delivery of these services for this extremely vulnerable population of veterans.”
Since the end of pandemic, which temporarily increased funding to rates that better reflect the true operating and services costs for these organizations, 74 grantees operating nearly 1,000 beds in total have left the GPD program, citing unsustainable funding in the face of rising costs. The delay in raising rates further threatens the stability of the program itself and risks further decreasing services for homeless veterans across the country.
In January 2025, Congress passed the Senator Elizabeth Dole 21st Century Veterans Healthcare & Benefits Improvement Act—bipartisan legislation that included a provision authorizing higher per-diem rates for GPD providers. While VA raised the base rate this past September to 133% of the State Home Domiciliary Rate, the law clearly allows for reimbursement up to 200% in high-cost areas or for programs serving veterans with especially intensive needs.
The lawmakers called on Collins to immediately implement the full GPD rate increases mandated under the law and provide Congress with their planned implementation timeline. They concluded, “There is no excuse for further delay. You have legal authority, funding, and appropriate policy plans in place for full implementation.”
This letter follows the Trump Administration’s efforts to slash funding for programs helping end homelessness. This month, Trump’s Department of Housing and Urban Development slashed $2.2 billion—about a 70% cut—from programs that provide supportive housing and rapid rehousing to help those with complex situations achieve long-term stability. Half of homeless veterans struggle with serious mental health challenges, and 70% face substance use disorders. These cuts jeopardize homeless veterans who aren’t sober or “treatment-ready,” who will now likely lose access to housing and supportive services.
The full letter can be read here.
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