United States (U.S.) President Donald Trump’s administration has scrapped a federal loan relief program designed to help former service members struggling to keep their homes. The development has increased financial burden on ex-military personnels as around 15,000 US veterans’ mortgage payments have increased by at least $150.
NPR published an investigation on Friday revealing that more than 700 ex-servicemen has observed a $1000 increase in their home loans since the government changed the rules.
The findings were based on previously unpublished data obtained from the Department of Veterans Affairs (VA), which oversees a mortgage programme for eligible military veterans.
The Trump administration ended the Veterans Affairs Servicing Purchase (VASP) programme in 2025, removing an option that allowed the government to purchase certain troubled mortgages and offer borrowers more affordable repayment terms.
The programme had been introduced to help veterans who fell behind on payments avoid losing their homes.
NPR found that 63% of veterans who received loan modifications faced higher monthly payments, compared with just 2% of borrowers whose modified loans were backed by Fannie Mae and Freddie Mac.
Loan modifications are generally intended to make repayment manageable for homeowners experiencing financial difficulties.
However, the closure of VASP left some veterans facing higher interest rates when their mortgages were restructured.
The administration has since introduced a separate partial-claim programme under legislation signed by President Donald Trump in July 2025.
That programme, which took effect in June 2026, allows eligible borrowers to defer certain overdue amounts, but it does not automatically reverse payment increases resulting from earlier loan modifications.
