The Department of Veterans Affairs is creating a $29 million assistance program for eligible veterans experiencing homelessness and veterans enrolled in the federal HUD-VASH housing program. The initiative will cover basic goods, temporary shelter, communication devices and transportation, with services expected to begin during fiscal year 2027.
The program comes as veteran homelessness has fallen substantially from earlier levels, while federal reviews still point to staffing shortages, rising housing costs and gaps in case-management records. The new assistance was authorized under the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act and will operate through the end of fiscal year 2027.
What the $29 Million Program Will Provide
According to the Department of Veterans Affairs, up to $11 million will be available through VA medical centers for goods and services recommended by clinicians. Eligible veterans may receive food, clothing, blankets, hygiene products and other items considered necessary for their safety or survival.
Housing-related assistance can cover rent and utility payments, including certain overdue amounts when payment allows a veteran to obtain or remain in housing. The program can also pay security deposits, utility deposits, moving costs and short-term storage. Rental and utility assistance is generally limited to 10 months within a two-year period, although VA clinicians may authorize additional support when they determine that it is needed.
Other covered items include furniture, bedding, cookware, small household appliances and cleaning supplies. Temporary hotel or motel stays may also be funded, while veterans sleeping outdoors could receive sleeping bags or tents.
Communication support is part of the program as well. Smartphones, tablets, disposable phones and service plans can be provided when clinicians determine that they are needed to help veterans stay in contact with health providers, service organizations, prospective landlords or family members.
The remaining $18 million is intended for transportation. According to the VA announcement, the department expects to award transportation contracts by September 2026. Services may include public transit vouchers or rideshare trips for medical and mental health appointments, housing searches, employment searches, legal appointments, emergency housing placements and trips to obtain food or other necessities.
The assistance will not be distributed as cash. VA medical centers will instead purchase qualifying goods or pay providers directly, with clinical staff, mainly social workers, assessing individual needs.
Homelessness Has Declined, but HUD-VASH Still Faces Barriers
The latest VA Point-in-Time Count recorded 32,495 veterans experiencing homelessness on a single night in January 2025. That was 1.2 percent lower than in January 2024 and represented a 56.1 percent reduction from 2010. The VA also reported permanently housing 51,936 homeless veterans during fiscal year 2025, its highest total in seven years.
Still, the HUD-VASH program faces operational difficulties. According to the Government Accountability Office (GAO), annual turnover among HUD-VASH case managers ranged from 20 percent to 26 percent between fiscal years 2020 and 2024. During that period, 14 to 18 percent of case-manager positions were vacant. The GAO also found that 174,045 eligible veterans were not referred to HUD-VASH between 2020 and 2024. In 151,296 of those cases, or 87 percent, the VA did not document why a referral did not occur.
Housing costs presented another challenge. Average monthly HUD-VASH housing assistance rose from $706 in 2020 to $953 in 2024, while officials cited higher rents, limited housing availability and landlord reluctance as obstacles to veterans using vouchers. The VA agreed with the GAO recommendation to collect more complete information about unsuccessful HUD-VASH referrals.
