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The VA has its fix for a home loan debacle, but many vets who got hurt won't get help

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The VA has its fix for a home loan debacle, but many vets who got hurt won't get help

Edmund Garcia, an Iraq War veteran, stands outside his home in Rosharon, Texas. Like many vets, he was told if he took a mortgage forbearance, his monthly payments wouldn’t go up afterward.

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Edmund Garcia, an Iraq War veteran, stands outside his home in Rosharon, Texas. Like many vets, he was told if he took a mortgage forbearance, his monthly payments wouldn’t go up afterward.

Joseph Bui for NPR

The Department of Veterans Affairs announced a long-awaited new program on Wednesday to help thousands of veterans who were left on the verge of losing their homes after a pandemic aid effort went awry.

But it appears that many who were harmed financially won’t qualify to get this new help.

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“The purpose of this program is to assist the more than 40,000 veterans who are at the highest risk of foreclosure,” Josh Jacobs, VA undersecretary for benefits, said at a media roundtable introducing the Veterans Affairs Servicing Purchase program, or “VASP.”

What senior VA officials failed to say on their call with reporters is that the VA put veterans in that tough spot in the first place. In 2022, the VA abruptly ended part of its COVID mortgage forbearance program while tens of thousands of vets were still in the middle of it — trapping them with no affordable way to get current on their loans.

VASP is supposed to fix that problem, by allowing the VA to offer these homeowners loan modifications with interest rates that are well below the market rates on regular mortgages. The VA will own mortgages itself and will offer vets who qualify a modified home loan with a 2.5% interest rate.

But not everybody who got hurt is going to qualify. Most vets who have already ended up in much more costly modified loans won’t get the help.

The VA forbearance fiasco

In November, the VA halted foreclosures for all homeowners with loans backed by the VA after an NPR investigation revealed that the agency had left thousands of vets facing foreclosure through no fault of their own.

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COVID mortgage forbearance programs were set up by Congress during the pandemic to help people with federally backed loans by giving them an affordable way to skip mortgage payments and then get current on their loans again.

But in late 2022, the VA abruptly ended its Partial Claim Payment (PCP) program, which had allowed a homeowner at the end of a forbearance to move the missed payments to the back of the loan term and keep the interest rate on their original mortgage.

That effectively turned a well-intentioned program into a bait-and-switch trap. Veterans say they were told before they took a forbearance that their regular monthly mortgage payments wouldn’t increase and their missed payments could be moved to the back of their loan term. But after the VA scrapped the PCP program, vets were told they needed to come up with all the missed payments at once.

“Almost $23,000? How am I gonna come up with that?” Edmund Garcia asked earlier this year in an interview with NPR. Garcia is a combat veteran who served in Iraq. He bought a house in Rosharon, Texas, with a VA home loan. After his wife lost her job during the pandemic, his mortgage company offered him a forbearance.

Edmund Garcia holds a photo of himself in 2000 as a specialist in charge of handling ammunition and supplies while he was in the Army.

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Edmund Garcia holds a photo of himself in 2000 as a specialist in charge of handling ammunition and supplies while he was in the Army.

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Joseph Bui for NPR

The VA had other loan modification options, but those essentially required a new mortgage with a new interest rate, and rates were rising sharply — from around 3% up to around 7%.

Garcia was told that if he couldn’t pay back all the missed payments at once, he would have to accept a loan modification that would result in much bigger monthly bills. His old mortgage rate was 2.4%; the offer would increase that to 7.1% with payments $700 a month higher. Alternatively, he could get foreclosed on.

“I deal with PTSD, I deal with anxiety, and, you know, my heart is beating through my chest when I was having this conversation,” he told NPR. “My daughter … she’s asking, ‘Dad, are you OK?’ “

Now it appears that any veterans who succumbed to that pressure and accepted these higher-cost loan modifications will not be able to get help through the VA’s new rescue plan.

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Vets pushed into high-cost loans won’t get help

“If you are not in default, this program is not for you,” John Bell, the director of the VA home loan program, told NPR at a press call this week. “And you have to be in default a certain amount of time.”

In other words, veterans who have been making payments on these higher-cost loans are not eligible. And it’s looking like that will exclude a lot of people.

Data obtained by NPR suggests that thousands of veterans ended up in modified loans with significantly higher interest rates following a mortgage forbearance.

The fine print to the VA’s new program also says that if a loan was modified, the borrower has to have made payments for at least six months, and then be in default for at least three months, to be eligible.

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That doesn’t seem like the right approach to some policy experts.

“We definitely don’t think borrowers should have to pay six months on a bad, unaffordable modification,” said Steve Sharpe with the nonprofit National Consumer Law Center.

Also, the rules mean that if a veteran tried to pay a more costly loan modification for a few months, then defaulted and couldn’t afford it, they wouldn’t qualify.

“If they fail on an unaffordable modification, they should be able to access VASP,” Sharpe said.

He thinks the VA should extend the foreclosure moratorium on VA loans, which is set to expire at the end of May, both to give the VA time to consider fixing such issues and to give mortgage companies time to gear up and reach out to homeowners.

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Still, Sharpe said, for those who do qualify, the VASP rescue plan should be a big help.

“It is great news that VASP has been released,” he said. “It is sorely needed because people have lacked a reasonable foreclosure alternative for a long time. … It’s exciting.”

VA Undersecretary Jacobs told reporters that a key difference with the new program is that the VA will hold the loans itself, rather than simply guarantee loans that are owned by investors. That’s what will allow the VA to set whatever mortgage rate it wants.

“These borrowers will have a consistent, affordable payment for the remainder of their loan at a fixed 2.5% interest rate,” Jacobs said.

Back in Rosharon, Texas, Edmund Garcia is wondering what happens next.

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Edmund Garcia stands with his wife, Iris Garcia, inside their home, where they live with their four daughters. Iris lost her job during the pandemic and their mortgage company offered them a forbearance.

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Edmund Garcia stands with his wife, Iris Garcia, inside their home, where they live with their four daughters. Iris lost her job during the pandemic and their mortgage company offered them a forbearance.

Joseph Bui for NPR

“I was a little shocked to hear that I would have to qualify for this program,” Garcia told NPR this week.

The VA says borrowers should work with their mortgage company and contact a VA loan technician if they need help.

In Garcia’s case, he actually never accepted that more-costly loan modification. And it appears from a review of the rules that he should qualify for VASP. But there’s a catch. Under the rules, he’ll probably be put into a 40-year mortgage. That could end up happening to a lot of other veterans too.

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“At the end I’ll be 82,” Garcia says. But he would still be very happy to get the help.

“This would be a huge relief for my family,” Garcia says. “And it feels like it’s within arm’s grasp.”

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Bus riders to Montgomery retrace old steps while fighting a new fight

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Bus riders to Montgomery retrace old steps while fighting a new fight

A man sings a spirtual song during a voting rally, Saturday, May 16, 2026, in Montgomery, Ala.

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MONTGOMERY, Ala.— In 1965, Black Americans peacefully demonstrated for voting rights and were beaten by Alabama state troopers before returning two weeks later to complete their march under federal protection. Keith Odom was a toddler then.

Now 62 years old, the union man and grandfather of three retraced some of their final steps. On Saturday, he came from Aiken, South Carolina, to Atlanta, where he joined several dozen other activists on two buses to Montgomery, Alabama. A few hours later, he stepped off his bus and onto Dexter Avenue, where the original march concluded.

“The history here — being a part of it, seeing it, feeling it,” said Odom, who is Black.

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His voice trailed off as he saw the Alabama Capitol and a stage that sat roughly where the Rev. Martin Luther King Jr. concluded the original march.

Odom lamented that he and his fellow bus riders were not simply commemorating that seminal day in the Civil Rights Movement. Instead they came to renew the fight. The 1965 effort helped push Congress to send the Voting Rights Act to Democratic President Lyndon B. Johnson to sign, securing and expanding political power for Black and other nonwhite voters for more than a half-century.

Saturday’s “All Roads Lead to the South” rally was the first mass organizing response after a U.S. Supreme Court ruling that severely diminished that landmark law. Striking down a majority Black congressional district in Louisiana, the justices concluded in a 6-3 ruling that considering race when drawing political lines is in itself discriminatory. That spurred multiple states, including Alabama, to redraw U.S. House districts in ways that make it harder for Black voters, who lean overwhelmingly Democratic, to elect lawmakers of their choice.

“I’m not trying to live a life that’s going backwards,” Odom said. “I want to go forward, for my grandchildren to be able to go forward.”

Keith Odom, a forklift driver from Aiken, S.C., looks out from his bus seat as he arrives in Montgomery, Ala., for a voting rights rally Saturday, May 16, 2026.

Keith Odom, a forklift driver from Aiken, S.C., looks out from his bus seat as he arrives in Montgomery, Ala., for a voting rights rally Saturday, May 16, 2026.

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An old political battle is new again

The passenger rosters and the scene when riders arrived in Montgomery sounded the echoes and rhymes of past and present.

“I talked to my grandmother before I came, and she was so excited,” said Justice Washington, a Kennesaw State University student named because her mother and grandmother had faith in the American system. “My grandmother told me she did her part, and now it’s time for me to do mine.”

No one on the Atlanta buses had reached voting age when the Voting Rights Act became law. The youngest attendee was born as Democrat Barack Obama was elected the first Black president in 2008.

Kobe Chernushin is 18, white and just graduated high school in Atlanta’s northern suburbs. He is an organizer with the Georgia Youth Justice Coalition and spent the day filming Khayla Doby, a 29-year-old executive for the organization, doing standups for the group’s followers on social media.

“I believe in the power of showing up,” he said.

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The buses launched from the congressional district in Georgia once represented by John Lewis, bloodied on the Edmund Pettus Bridge in Selma, Alabama, when he was 25. Lewis died in 2020, but some on the buses Saturday celebrated that a proposed federal election overhaul is named for him. If some Democrats get their way, the bill would override the U.S. Supreme Court, reinvigorate the Voting Rights Act and outlaw the kind of gerrymandering competition that Republican President Donald Trump has instigated.

“I’m here because of the same forces that pulled on John Lewis when he was a student,” said Darrin Owens, 27. He has worked for former Vice President Kamala Harris and now trains Democratic candidates.

“Political activism is personal,” Owens said, explaining that he attended Saturday as a citizen, not a political professional. “Sometimes those lines are blurred, and as a Black person in America, a Black person living in a Southern state, I’m committed to action that stops what I consider to be un-American, this possibility that the person who represents me is someone who is not from my community and does not understand me or my community.”

When he arrived, Owens saw no federal authorities on Montgomery’s streets. A wounded, recovering Lewis did during the second march in 1965.

This time many of the Alabama troopers and local officers who walked the area were Black.

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The buses and sandwich lunches had been arranged by Fair Fight Action, a legacy of the political network built by Georgia Democrat Stacey Abrams, who became a national figure in her unsuccessful runs in 2018 and 2022 to become the first Black woman elected governor in U.S. history. No Black woman has yet achieved that feat.

Bee Nguyen, left, talks to Carole Burton, center, and Tondalaire Ashford at a voting rights rally Saturday, May 16, 2026, in Montgomery, Ala.

Bee Nguyen, left, talks to Carole Burton, center, and Tondalaire Ashford at a voting rights rally Saturday, May 16, 2026, in Montgomery, Ala.

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Different generations share their stories

At different points, Montgomery has branded itself as the cradle of the Confederacy and the cradle of the modern Civil Rights Movement.

“It feels like our country is stuck in this pattern of making progress, then there’s a huge backlash, and then people have to go through the same battle again just to get to where we were,” said Phi Nguyen, the 41-year-old daughter of Vietnamese refugees. She is now a civil rights lawyer in Atlanta.

She stood across from the church where a young King led the Montgomery Bus Boycott in 1955 and not far from where Jefferson Davis took the oath of office in 1861 as the slavery-defending Confederate president.

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Nguyen and her sister Bee, a 44-year-old who served in the Georgia General Assembly and ran for statewide office, met two other women as they walked. Carole Burton and Tondalaire Ashford are 72-year-old Montgomery residents who have been friends since they were in a segregated junior high school and then newly desegregated Sidney Lanier High School.

“I don’t call it ‘integration,’” Ashford said, pointing at her dark skin. “It was never real integration, and it’s not like we can ever just blend in.”

Burton described them as being “in the second wave” of Black students. “It wasn’t easy,” she said. “And we had to support each other.”

They remember their parents not being able to vote in the era of poll taxes, literacy tests and other racist restrictions that the Voting Rights Act eventually outlawed. But they smiled as they swapped family histories with the Nguyens.

Burton said immigrants, descendants of enslaved persons and Native Americans have different but overlapping paths. “We just want to be treated like people with the same rights and opportunities the country has promised us,” she said. “They’ve never fully lived up to it.”

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Aaron McGuire sings a spirtual song during a voting rally, Saturday, May 16, 2026, in Montgomery, Ala.

Aaron McGuire sings a spirtual song during a voting rally, Saturday, May 16, 2026, in Montgomery, Ala.

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Conflicting legacies are at stake

To Odom, who had begun his journey Saturday in South Carolina, the current U.S. Supreme Court reinforced that history by refusing to see some race-conscious election policy as a way to ensure fair representation, not simply the “technical right to vote.”

He recalls decades of his life being represented by Strom Thurmond, a segregationist Democratic governor who became a “Dixiecrat” presidential candidate and U.S. senator — by now as a Republican — into the 21st century. Odom said he fears his state losing U.S. Rep. Jim Clyburn, a senior member of the Congressional Black Caucus, through redistricting.

“They want to take away that legacy when we’re still living with Strom’s?” Odom said.

Odom said he is also worried that the young people who participated Saturday are not a vanguard but outliers.

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“I was talking to a 20-year-old co-worker about this trip,” he said. “She told me she supported me but didn’t want to do it or work for anybody” running for office. “She wondered what any of them are going to do for her.”

Nonetheless, he said on the way home, “I’m still going to tell her what I saw and what I heard.”

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Louisiana Sen. Bill Cassidy loses in Republican primary, does not advance to runoff

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Louisiana Sen. Bill Cassidy loses in Republican primary, does not advance to runoff

One observer of the current Senate race in Louisiana noted that Sen. Bill Cassidy could lose his reelection bid.

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Sen. Bill Cassidy lost Saturday’s Louisiana Republican primary according to a race call by the Associated Press.

Cassidy, who served two terms in the Senate, was one of seven Republican senators who voted to convict President Trump after the January 6th insurrection at the Capitol. That vote put him at odds with Trump and his MAGA coalition, ultimately leading Trump to push Rep. Julia Letlow to run against Cassidy.

Cassidy’s bid for a third term was viewed as a test of Trump’s grip on the party–and of what voters want from their representatives in Washington. The primary pitted Cassidy, a veteran lawmaker, former physician and chair of the powerful Senate health committee, against Letlow, a political newcomer and a millennial MAGA loyalist.

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A detailed view of a hat that reads, Run Julia Run, is seen at a campaign event for Rep. Julia Letlow (R-LA) on May 6, 2026 in Franklinton, Louisiana.

A detailed view of a hat that reads, Run Julia Run, is seen at a campaign event for Rep. Julia Letlow (R-LA) on May 6, 2026 in Franklinton, Louisiana.

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A former college administrator, Letlow won a special election in 2021 for the House seat her late husband, Luke, was set to assume before he died from COVID in 2020.

In Congress, Letlow sponsored a bill to collect oral histories from the pandemic and has focused on education and children. She introduced the “Parents Bill of Rights Act,” which would allow parents to review classroom materials like library books and require schools to notify parents if their child requests different pronouns, locker rooms or sports teams.

She also serves on the powerful appropriations committee and has embraced Trump’s agenda.

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Letlow, who came first in Saturday’s primary, will face Louisiana state Treasurer John Fleming in the runoff on June 27. Cassidy came in third.

The election result is a victory for President Trump who has put Republican loyalty to the test on the ballot so far this year in Indiana state senate primaries and in Cassidy’s race.

Another major test of Trump’s influence comes in Kentucky’s primary on Tuesday when Republican Rep. Thomas Massie, who has found himself at odds with the president, faces a challenger endorsed by Trump.

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Brass bands in Beijing make way for sticker shock at home as Trump returns to escalating inflation

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Brass bands in Beijing make way for sticker shock at home as Trump returns to escalating inflation

WASHINGTON (AP) — President Donald Trump returned from the spectacle of a Chinese state visit to a less than welcoming U.S. economy — with the military band and garden tour in Beijing giving way to pressure over how to fix America’s escalating inflation rate.

Consumer inflation in the United States increased to 3.8% annually in April, higher than what he inherited as the Iran war and the Republican president’s own tariffs have pushed up prices. Inflation is now outpacing wage gains and effectively making workers poorer. The Cleveland Federal Reserve estimates that annual inflation could reach 4.2% in May as the war has kept oil and gasoline prices high.

Trump’s time with Chinese leader Xi Jinping appears unlikely to help the U.S. economy much, despite Trump’s claims of coming trade deals. The trip occurred as many people are voting in primaries leading into the November general election while having to absorb the rising costs of gasoline, groceries, utility bills, jewelry, women’s clothing, airplane tickets and delivery services. Democrats see the moment as a political opportunity.

“He’s returning to a dumpster fire,” said Lindsay Owens, executive director of Groundwork Collaborative, a liberal think tank focused on economic issues. “The president will not have the faith and confidence of the American people — the economy is their top issue and the president is saying, ‘You’re on your own.’”

The president’s trip to Beijing and his recent comments that indicated a tone-deafness to voters’ concerns about rising prices have suggested his focus is not on the American public and have undermined Republicans who had intended to campaign on last year’s tax cuts as helping families.

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Trump described the trip as a victory, saying on social media that Xi “congratulated me on so many tremendous successes,” as the U.S. president has praised their relationship.

Trump told reporters that Boeing would be selling 200 aircraft — and maybe even 750 “if they do a good job” — to the Chinese. He said American farmers would be “very happy” because China would be “buying billions of dollars of soybeans.”

“We had an amazing time,” Trump said as he flew home on Air Force One, and told Fox News’ Bret Baier in an interview that gasoline prices were just some “short-term pain” and would “drop like a rock” once the war ends.

Inflationary pain is not a factor in how Trump handles Iran

Trump departed from the White House for China by saying the negotiations over the Iran war depended on stopping Tehran from developing nuclear weapons. “I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon,” Trump said.

That remark prompted blowback because it suggested to some that Trump cared more about challenging Iran than fighting inflation at home. Trump defended his words, telling Fox News: “That’s a perfect statement. I’d make it again.”

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The White House has since stressed that Trump is focused on inflation.

Asked later about the president’s words, Vice President JD Vance said there had been a “misrepresentation” of the remarks. White House spokesman Kush Desai said the “administration remains laser-focused on delivering growth and affordability on the homefront” while indicating actions would be taken on grocery prices.

But as Trump appeared alongside Xi, new reports back home showed inflation rising for businesses and interest rates climbing on U.S. government debt.

His comments that Boeing would sell 200 jets to China caused the company’s stock price to fall because investors had expected a larger number. There was little concrete information offered about any trade agreements reached during the summit, including Chinese purchases of U.S. exports such as liquefied natural gas and beef.

“Foreign policy wins can matter politically, but only if voters feel stability and affordability in their daily lives,” said Brittany Martinez, a former Republican congressional aide who is the executive director of Principles First, a center-right advocacy group focused on democracy issues.

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“Midterms are almost always a referendum on cost of living and public frustration, and Republicans are not immune from the same inflation and affordability pressures that hurt Democrats in recent cycles,” she added.

Democrats see Trump as vulnerable

Democratic lawmakers are seizing on Trump’s comments before his trip as proof of his indifference to lowering costs. There is potential staying power of his remarks as Americans head into Memorial Day weekend facing rising prices for the hamburgers and hot dogs to be grilled.

“What Americans do not see is any sympathy, any support, or any plan from Trump and congressional Republicans to lower costs – in fact, they see the opposite,” Senate Democratic leader Chuck Schumer of New York said Thursday.

Vance faulted the Biden administration for the inflation problem even though the inflation rate is now higher than it was when Trump returned to the White House in January 2025 with a specific mandate to fix it.

“The inflation number last month was not great,” Vance said Wednesday, but he then stressed, “We’re not seeing anything like what we saw under the Biden administration.”

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Inflation peaked at 9.1% in June 2022 under Biden, a Democrat. By the time Trump took the oath of office, it was a far more modest 3%.

Trump’s inflation challenge could get harder

The data tells a different story as higher inflation is spreading into the cost of servicing the national debt.

Over the past week, the interest rate charged on 10-year U.S. government debt jumped from 4.36% to 4.6%, an increase that implies higher costs for auto loans and mortgages.

“My fear is that the layers of supply shocks that are affecting the U.S. economy will only further feed into inflationary pressures,” said Gregory Daco, chief economist at EY-Parthenon.

Daco noted that last year’s tariff increases were now translating into higher clothing prices. With the Supreme Court ruling against Trump’s ability to impose tariffs by declaring an economic emergency, his administration is preparing a new set of import taxes for this summer.

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Daco stressed that there have been a series of supply shocks. First, tariffs cut into the supply of imports. In addition, Trump’s immigration crackdown cut into the supply of foreign-born workers. Now, the effective closure of the Strait of Hormuz has cut off the vital waterway used to ship 20% of global oil supplies.

“We’re seeing an erosion of growth,” Daco said.

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