Blumenthal & Takano Press VA Secretary Collins to Immediately Increase Funding for Critical Program Housing Homeless Veterans

[WASHINGTON, D.C.] – Senate Veterans’ Affairs Committee Ranking Member Richard Blumenthal (D-CT) and House Veterans’ Affairs Committee Ranking Member Mark Takano (D-CA) 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 is HERE and copied below.

Dear Secretary Collins,

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.

Again, we urge you to immediately adhere to bipartisan, bicameral Congressional intent and fully implement Section 402 of P.L. 118-210, the Senator Elizabeth Dole 21^st Century Veterans Healthcare and Benefits Improvement Act of 2025 (the Dole Act). While we acknowledge the Department increased the GPD per diem rate in September from 115% to 133% of the State Home Domiciliary Rate, the law also calls for VA to reimburse providers who operate in high-cost areas, serve veterans with extensive care needs, or offer expanded services up to 200% of the State Home Domiciliary Rate. This is in addition to the base funding increase for all providers.

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.

Section 402 of the Dole Act was enacted to make certain that providers could be retained in the program and veterans could continue to receive these critically important services. For years, the number of organizations participating in GPD has decreased drastically because the funds authorized per veteran serviced by each provider were too low to provide basic care and services amid growing costs of living and increasing needs of homeless veterans, especially as the veteran population ages. Since the end of the pandemic public health emergency, which temporarily allowed for a funding increase, 74 grantees (operating nearly 1,000 beds) have withdrawn from the program. Delays in implementation risk further decreased services for homeless veterans in communities across the country.

In the years of negotiations and communication with Congress before the Dole Act became law, VA assured Congress the Department would be fully able to implement these changes immediately after the bill was signed into law. Further, Congress and the Department were clear that the overall cap increase would be applied congruent with current GPD guidelines, and waivers for funding increases above that cap would be provided to organizations in regions with high costs of living, high rates of veterans homelessness, minimal alternative services for homeless veterans, or other challenges that require more time, effort, and funds from organizations. These assurances are in line with the intent of Congress at the time of the enactment of the Dole Act.

Congress took additional steps to allow for timely implementation of section 402 with the passage of P.L. 119-31, the VA Home Loan Program Reform Act, which was signed into law on July 30, 2025. Section 5 of this legislation increased the authorization of appropriations for comprehensive service programs for homeless veterans, which includes the GPD program, to $344 million. This came after the Department very belatedly notified Congress that the previous authorization of appropriation for these programs was a barrier to implementation of section 402 of the Dole Act. Three months have passed and this provision is still not fully implemented, and VA has not provided any additional justification for this egregious and harmful delay.

We write today to reaffirm the clear intent of Congress and to strongly urge you to fully implement the GPD per diem rate increases by December 5, 2025 and to backdate those increases to the beginning of fiscal year 2026, which began on October 1, 2025. We also request a response to this letter with VA’s planned timeframe for implementing the increase, consistent with Congressional intent by December 5, 2025. There is no excuse for further delay. You have legal authority, funding, and appropriate policy plans in place for full implementation.

Once these rates have been increased, it is critical the Department completes its strategic review of the GPD program in direct consultation and coordination with Congress, GPD providers, homelessness advocates, VSOs, and other stakeholders as required by law in Section 402 of the Dole Act. Only once that plan is complete and approved by Congress should any further changes be made to the GPD program.

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