1. Executive Summary
This bill amends title 38, United States Code, to increase disability compensation rates for certain veterans receiving aid and attendance allowances, establishes Social Security cost-of-living-linked increases to dependency and indemnity compensation, modifies VA housing loan fee rates and fee schedule expiration dates, extends pension payment limits, and expands VA-guaranteed housing loan eligibility to qualifying members of the National Guard and Reserve components.
2. What This Bill Would Do
[Sec. 2(a)] Establishes a supplemental monthly allowance of $833.33 for veterans currently eligible for aid and attendance allowances under 38 U.S.C. §1114(r) or (t). Currently, no such supplemental payment exists beyond the scheduled disability compensation rates under §1114. This provision adds a new subsection (u) to §1114, effective December 1, 2026, applicable to months beginning on or after that date.
[Sec. 2(b)] Creates an automatic cost-of-living adjustment mechanism tying increases in Dependency and Indemnity Compensation (DIC) to Social Security COLA determinations under 42 U.S.C. §415(i). Currently, DIC rate increases are not automatically linked to Social Security COLA. The bill requires two DIC increases tied to Social Security COLAs. The first increase equals the Social Security COLA plus 1 percentage point. The second equals the COLA plus 0.5 percentage points. The mechanism terminates after those two increases. Increases are published in the Federal Register concurrent with Social Security COLA publication. Note: The timing of the two qualifying increases depends on Social Security Administration COLA determinations.
[Sec. 3] Modifies the VA housing loan fee schedule under 38 U.S.C. §3729(b)(2) by extending current loan fee rate schedule expiration dates to September 30, 2036 (from the current scheduled expiration), and increases loan fees for certain loan categories: subparagraph (E) fees increase from 0.50% to 1.40% for refinancing loans, and subparagraph (I) fees increase from 0.50% to 1.00% for loan assumptions.
[Sec. 4] Extends the expiration date for certain pension payment limits under 38 U.S.C. §5503(d)(7) from January 31, 2033 to September 30, 2036. Currently, existing pension payment limits are set to expire in January 2033. This provision extends those limits by approximately three years and eight months.
[Sec. 5], titled the "Home Affordability for Guard and Reserve Act," expands the definition of "active duty" for purposes of VA-guaranteed housing loan eligibility under 38 U.S.C. §3701(b) to include qualifying service by Reserve component members and National Guard members, retroactive to service performed on or after September 11, 2001. The bill also creates a new "veteran" classification for individuals with at least 14 days of qualifying service who complete entry-level and skill training, subject to an additional loan fee surcharge of 1.00 percentage point above the standard fee table. Section 5(c)(4) requires the Secretary of Veterans Affairs to provide eligibility information to the Secretary of Defense for notification purposes to qualifying personnel completing entry-level and skill training after the date of enactment. Note: The interagency notification process involves no specified timeline or enforcement mechanism in the bill text.
3. Who is Affected
Veterans Receiving Aid and Attendance Allowances (§1114(r) or (t))
If passes: Receives an additional $833.33 per month beginning December 1, 2026, in addition to currently scheduled compensation. CBO estimates approximately 8,000 veterans currently qualify; that number rises to approximately 10,000 by 2036. [Sec. 2(a); CBO p.4]
If fails / status quo: Continues receiving compensation at current scheduled rates under §1114 with no supplemental allowance.
Surviving Dependents and Survivors Receiving DIC (§1311(a)(1) and (3))
If passes: DIC amounts increase automatically when Social Security COLA is triggered: COLA + 1 percentage point for the first adjustment, COLA + 0.5 percentage points for the second, for a maximum of two adjustments. [Sec. 2(b); CBO p.4]
If fails / status quo: DIC rates continue under existing adjustment mechanisms without automatic Social Security linkage.
VA Housing Loan Borrowers Subject to Fees Under §3729(b)(2)(E) and (I)
If passes: Refinancing loan borrowers face fees increasing from 0.50% to 1.40%; loan assumption borrowers face fees increasing from 0.50% to 1.00%. Current loan fee rate schedule expiration dates extend to September 30, 2036. [Sec. 3; CBO pp.4–5]
If fails / status quo: Current fee rates of 0.50% remain in effect; fee schedule expiration proceeds under current law.
Veterans Receiving Pension Under §5503(d)
If passes: Existing pension payment limits — including the $90/month cap for veterans residing in Medicaid nursing homes — remain in effect through September 30, 2036. [Sec. 4; CBO p.6]
If fails / status quo: Existing pension payment limits expire January 31, 2033 under current law.
Reserve Component Members and National Guard Members
If passes: Qualifying service performed on or after September 11, 2001 counts toward VA housing loan eligibility under the expanded "active duty" definition. Members completing at least 14 days of qualifying service and entry-level/skill training receive access to VA-guaranteed housing loans subject to a 1.00 percentage point additional loan fee. CBO estimates approximately 1,600 reservists obtain VA-guaranteed loans annually under the bill; 300 per year represent new access attributable to the bill. [Sec. 5; CBO p.5]
If fails / status quo: Current eligibility requires at least six years in the Selected Reserve (certain reserve-status military service categories) or 90 days on active or full-time National Guard duty. No retroactive recognition of qualifying Reserve or Guard service.
4. Existing Law vs. What Would Change
EXISTING LAW / CONDITION | WHAT THIS BILL CHANGES |
38 U.S.C. §1114 No supplemental monthly allowance exists for aid and attendance eligible veterans beyond scheduled rates. | Sec. 2(a) adds §1114(u): $833.33 supplemental monthly allowance for veterans eligible under §1114(r) or (t), effective Dec. 1, 2026. |
38 U.S.C. §5312 Dependency and Indemnity Compensation (DIC) rates are not automatically linked to Social Security COLA adjustments. | Sec. 2(b) adds §5312(d): Ties DIC to Social Security COLA plus 1 point (first increase), then COLA plus 0.5 points (second increase). Terminates after the second increase. Effective Dec. 1, 2026. |
38 U.S.C. §3729(b)(2)(E) Loan fee: 0.50% (refinancing loans). | Sec. 3(2): Fee increases to 1.40% (refinancing loans). |
38 U.S.C. §3729(b)(2)(I) Loan fee: 0.50% (loan assumptions). | Sec. 3(3): Fee increases to 1.00% (loan assumptions). |
38 U.S.C. §3729(b)(2) Loan fee schedule expiration currently scheduled under existing law. | Sec. 3(1): Expiration extended to September 30, 2036. |
38 U.S.C. §5503(d)(7) Pension payment limit expiration: January 31, 2033. | Sec. 4: Expiration extended to September 30, 2036. |
38 U.S.C. §3701(b) "Active duty" definition for housing loans does not include most Reserve/Guard training service. | Sec. 5(b): Expands definition to include inactive-duty training, annual training duty, and specified full-time Guard service. Retroactive to service on or after Sept. 11, 2001. |
38 U.S.C. §3701(b) "Veteran" definition requires minimum of 6 years in Selected Reserve or 90 days active/full-time Guard duty for housing loan purposes. | Sec. 5(c): Creates new §3701(b)(8) classifying individuals with 14 or more days of qualifying service who complete entry-level/skill training as "veterans" for housing loan purposes, subject to a 1.00% additional loan fee. |
5. Fiscal Impact Summary
Source: CBO Cost Estimate for H.R. 6047, as ordered reported by the House Committee on Veterans' Affairs on February 12, 2026. Dated March 12, 2026. Approved by Phillip L. Swagel, Director, Congressional Budget Office.
Spending Category | 2026–2031 | 2026–2036 | Post-2036 Projections (Per 10-Year Period) |
Direct Spending (Outlays) | +$508M | -$42M | Net direct spending increases by greater than $2.5B |
Spending Subject to Appropriation | +$27M | +$65M | On-budget deficit increases by greater than $5.0B |
LONG-TERM PROJECTIONS (post-2036)
Net direct spending increase per 10-year period beginning 2037: > $2.5B
On-budget deficit increase per 10-year period beginning 2037: > $5.0B
Statutory Pay-As-You-Go applies: Yes
Intergovernmental mandate: No
Private-sector mandate: No
PROVISION | 2026–2031 | 2026–2036 |
Dependency & Indemnity Comp. | +$1,279M | +$3,066M |
Additional Disability Comp. | +$443M | +$1,012M |
Home Loan Fees (fee changes) | -$1,190M | -$4,013M |
Home Loans for Reserve Duty | -$24M | -$63M |
Pensions and Medicaid | $0M | -$44M |
TOTAL NET DIRECT SPENDING | +$508M | -$42M |
Dependency and Indemnity Compensation (DIC): The CBO projects the two COLA adjustments increase average monthly DIC payments for approximately 600,000 recipients by about $23 in calendar year 2027 and $34 in 2028. By 2036, approximately 800,000 recipients receive payments averaging $42 per month more than under current law. Total estimated increase in DIC outlays: $3 billion over 2026–2036. [CBO p.4]
Additional Disability Compensation: The CBO estimates approximately 8,000 veterans currently receive aid and attendance allowances, increasing to approximately 10,000 by 2036. The $833/month benefit begins December 2026; with future COLAs, CBO estimates the amount reaches approximately $1,026/month by 2036. Total estimated increase in disability compensation outlays: $1 billion over 2026–2036. [CBO p.4]
Home Loan Fees: Extending current fee rates through September 30, 2036 and increasing fees for refinancing loans (0.50% to 1.40%) and loan assumptions (0.50% to 1.00%) reduces the estimated long-term federal cost after fees and recoveries. CBO projects VA will annually guarantee approximately 600,000 loans averaging $490,000 each. Total estimated reduction in direct spending from fee changes: $4 billion over 2026–2036. [CBO pp.4–5]
Home Loans for Reserve Duty: CBO estimates approximately 1,600 reservists obtain VA-guaranteed home loans annually under the bill at an average loan amount of $475,000. Of those, 300 represent new borrowers due to the bill; 1,300 would have obtained loans through other federal programs under current law. Total estimated reduction in direct spending: $63 million over 2026–2036. Associated shifts in FHA and Ginnie Mae volume increase spending subject to appropriation by an estimated net $65 million over 2026–2036. [CBO p.5]
Pensions and Medicaid: Extending the $90/month pension payment cap for veterans in Medicaid nursing homes through September 30, 2036 reduces VA benefit outlays by an estimated $2 million/month. Medicaid costs increase by approximately $1 million/month as those beneficiaries' reduced income shifts care costs to Medicaid. CBO identified no intergovernmental mandate. Net direct spending reduction: $44 million over 2026–2036. [CBO p.6]
Who Bears the Cost: Federal direct spending accounts for all estimated outlays. CBO identified no intergovernmental mandates on state or local governments and no private-sector mandates. VA borrowers in affected loan categories bear increased upfront loan fees as specified in Section 3.
6. Household Impact Matrix
Analysis for a household earning $35,000 to $100,000 (Median range for rural Ohio/Appalachian communities).
METRIC | IF BILL PASSES | IF BILL FAILS / STATUS QUO |
Household Overhead (Aid & Attendance) | Veterans receiving aid and attendance benefits get a $833/month supplemental payment beginning Dec. 1, 2026. CBO projects this will reach ~$1,026/month by 2036 after COLAs. Affects 8,000–10,000 veterans. 🏽 [Sec. 2(a); CBO p.4] | No supplemental allowance. Aid and attendance recipients continue at current scheduled rates. 🏽 [Sec. 2(a); CBO p.4] |
Household Overhead (DIC Benefits) | DIC recipients (~600,000 in 2027, growing to ~800,000 by 2036) receive an increase of ~$23/month in 2027, ~$34/month in 2028, and ~$42/month by 2036. 🏽 [Sec. 2(b); CBO p.4] | DIC rates receive no automatic Social Security COLA linkage. Current adjustment mechanisms remain unchanged. 🏽 [Sec. 2(b); CBO p.4] |
Household Overhead (Loan Fees) | Refinancing fees increase from 0.50% to 1.40% (+0.90 pts). Assumption fees increase from 0.50% to 1.00% (+0.50 pts). On a $490,000 average loan, the refinancing change adds ~$4,410 in upfront fees. 🏽 [Sec. 3; CBO pp.4–5] | Refinancing and assumption loan fees remain at 0.50% under current scheduled rates. 🏽 [Sec. 3; CBO pp.4–5] |
Federal Loan Programs (VA Costs & Volume) | Fee changes lower the long-term federal cost of VA guarantees, generating an estimated $4B in direct spending reductions from 2026–2036 (on ~600,000 loans/year averaging ~$490k). 🏽 [Sec. 3; CBO pp.4–5] | Current VA loan guarantee program continues at current fee and rate structure. Fee schedules will expire under current law, dropping average rates to ~1.2% per CBO baseline. 🏽 [CBO p.4] |
Federal Loan Programs (Market Shifts) | Increased VA loan volume shifts ~800 loans/year away from the FHA and ~500 loans/year away from Fannie Mae and Freddie Mac. 🏽 [CBO pp.6–7] | FHA and Ginnie Mae maintain current loan volumes under existing eligibility rules. 🏽 [CBO pp.6–7] |
Mobility Check (Reserve & Guard) | Reserve/Guard members gain VA home loan eligibility based on qualifying training service, retroactive to Sept. 11, 2001. CBO estimates 1,600 reservists utilize this annually (300 get brand new access). A 14-day eligibility path is available subject to a +1.00% additional fee. 🏽 [Sec. 5; CBO p.5] | Current law requires 6 years in the Selected Reserve or 90 days on active/full-time Guard duty. Service members below those thresholds remain ineligible. No retroactive recognition of training service. 🏽 [Sec. 5; CBO p.5] |
Local Government Impact (Medicaid & Pensions) | Pension payment limits under §5503(d)(7) are extended through Sept. 30, 2036. VA pension payments to veterans in Medicaid nursing homes remain capped at $90/month. Reduces VA outlays by $2M/month, offset by a ~$1M/month increase in state Medicaid costs ($44M net federal reduction 2026–2036). No intergovernmental mandate. 🏽 [Sec. 4; CBO p.6] | Pension payment limit expires January 31, 2033. Veterans in Medicaid nursing homes would no longer face the $90/month cap post-expiration. CBO identified no intergovernmental mandate imposed on state Medicaid programs. 🏽 [Sec. 4; CBO p.6] |
7. Provisions Requiring Review
1. Section 2(b) contains conditional language with external dependency. Reason for review flag: The DIC COLA mechanism activates only when Social Security COLA determinations are made under 42 U.S.C. §415(i). If no Social Security COLA determination is made in a given year (as occurred in 2010, 2011, and 2016), no DIC increase is triggered under this provision. The two-increase termination clock depends entirely on external Social Security administration timing. Recommended action: Verify against 42 U.S.C. §415(i) COLA history and current Social Security Administration projections.
2. Section 2(b)(4)(B) contains a termination trigger based on a future event count. Reason for review flag: The COLA mechanism terminates "after the date on which the second increase to such amounts pursuant to such paragraph occurs." The timing of the two qualifying increases is indeterminate at the time of enactment and depends on Social Security COLA cycles. Recommended action: Flag as open-ended duration provision; verify against SSA annual determination schedule.
3. Section 5(b) uses defined terms sourced from multiple statutes. Reason for review flag: The expanded "active duty" definition references 10 U.S.C. §101(d), 10 U.S.C. §§688, 12301(a), 12301(d), 12301(g), 12301(h), 12302, 12304, 12304a, 12304b, 14 U.S.C. §713, and 32 U.S.C. §101. Any amendments to those statutes could affect the scope of this provision. Recommended action: Verify current text of each cross-referenced statute via GovInfo.
4. Section 5(c)(4) delegates implementation to interagency coordination without specifying a timeline or enforcement mechanism. Reason for review flag: The bill requires the Secretary of Veterans Affairs to provide eligibility information to the Secretary of Defense for notification purposes, but specifies no deadline, standardized format, or consequence for non-compliance. Implementation is subject to interagency action. Recommended action: Monitor Federal Register for implementing guidance; flag as pending agency action.
5. Section 3 modifies specific lettered subparagraphs of the §3729(b)(2) loan fee schedule. Reason for review flag: The bill identifies subparagraphs (E) and (I) by current fee value (0.50%) but does not reproduce the full fee table. Verification of which borrower categories correspond to each subparagraph requires cross-reference to the current enrolled text of 38 U.S.C. §3729(b)(2). Recommended action: Verify against current GovInfo text of §3729(b)(2).
8. What This Bill Does Not Do
1. The bill text does not contain provisions related to expanding disability rating criteria or modifying the schedule of ratings for disabilities. Public discussion of veterans benefits legislation frequently references rating schedule reform. No such provision appears in H.R. 6047 as reported.
2. The bill text does not contain provisions related to VA healthcare access, staffing, or facility funding. Veterans benefits discussions routinely encompass VA medical system issues. No such provision appears in H.R. 6047 as reported.
3. The bill text does not contain provisions related to toxic exposure presumptions, PACT Act expansions, or burn pit claims processing. Legislative activity in this space has been prominent since the PACT Act of 2022. No such provision appears in H.R. 6047 as reported.
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