New Law Fixes “Income Trap” for Disabled Veterans Seeking Housing

On January 20, 2026, H.R. 224 was officially signed into law. This bipartisan victory corrects a long-standing injustice in federal housing programs.

The Problem: For years, many disabled veterans were denied access to low-income housing assistance because their VA disability compensation pushed their “income” above the eligibility threshold. Effectively, veterans were being penalized for the very benefits they earned through service.

The Solution: H.R. 224 (Public Law 119-70) mandates that VA service-connected disability compensation must be excluded from income calculations for HUD programs, specifically the Community Development Block Grant (CDBG) program.

What This Means for You:

• More Eligibility: If you were previously “just over the limit” for local housing grants or neighborhood revitalization programs, you may now qualify.

• Consistency: The law also requires a full GAO review to ensure this “exclusion rule” is applied consistently across all HUD programs.