Hey there! Thanks for stopping by to catch up on some of the biggest news hitting the veteran community right now. At Operation T.A.G. (Tangible Act of Gratitude), we make it our mission to stay on top of the things that affect your life and your wallet.
Today, we’re looking at a major piece of legislation that recently cleared the House: H.R. 6047, also known as the Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act.
On the surface, it sounds like a massive win: and for many, it truly is. We’re talking about the first significant, non-inflationary increase in certain disability benefits in about twenty years. But like most things coming out of D.C., there’s a "catch" involved in how they plan to pay for it.
Let’s break down exactly what this means for you, your family, and your future home.
The Good News: A $10,000 Boost
The headline of this bill is a long-overdue financial injection for our most catastrophically disabled veterans. If you are a veteran who already qualifies for what the VA calls "Special Monthly Compensation" (SMC) because you require regular aid and attendance at home, this bill is designed for you.
Specifically, H.R. 6047 proposes a supplemental monthly allowance of $833.33. When you do the math, that adds up to about $10,000 per year in extra compensation.
This isn't just a one-time "thank you." It’s a permanent increase designed to help cover the rising costs of in-home care and medical supervision. For families who have been struggling to make ends meet while providing 24/7 care for a loved one, this $10,000 boost is a life-changer.
Support for Surviving Spouses
The bill doesn’t stop at disability compensation. It also addresses Dependency and Indemnity Compensation (DIC) for surviving family members.
Under the new plan, DIC payments would see a total increase of 5% over the next five years. While some advocacy groups have called this a "modest" increase, it’s a step in the right direction for Gold Star spouses and families who haven't seen a real bump in benefits that keeps pace with the modern cost of living.
The "Catch": Higher VA Loan Fees
Now, here is where things get a bit complicated. In Washington, if you want to increase spending in one area, you usually have to find a way to "offset" the cost somewhere else. In the case of H.R. 6047, the government is looking at the VA Home Loan program to foot the bill.
To pay for the $10,000 benefit boost and the DIC increases, the bill introduces several changes to VA loan fees that could make buying or refinancing a home more expensive for certain veterans.
1. The End of the "Subsequent Use" Exemption
Currently, if you have a service-connected disability rating of 10% or higher, you are exempt from paying the VA funding fee. This applies whether it’s your first home or your fifth.
H.R. 6047 changes that. Under the new rules, veterans with a 10% to 70% disability rating would no longer be exempt from the funding fee when they use their VA loan benefit for a second (or later) time. This could add thousands: sometimes tens of thousands: of dollars to the cost of a subsequent home purchase.
2. Higher Refinance Fees
If you’re looking to refinance your current VA loan to catch a better interest rate, your costs are likely going up. The bill proposes raising the VA refinance funding fee from 0.50% to roughly 1.42%.
On a $500,000 refinance, that’s the difference between paying a $2,500 fee and a $7,100 fee. That is a big chunk of change that eats into the savings you’re trying to gain by refinancing.
3. Increased Assumption Fees
VA loan assumptions: where a buyer "takes over" a veteran's existing low-interest rate loan: have become very popular lately. This bill would double the assumption fee from 0.5% to 1.0%.
4. Extending "Temporary" Rates
There were scheduled "phase-downs" where VA funding fees were supposed to drop for non-disabled veterans in the coming years. This bill cancels those drops and keeps the higher rates in place to help balance the budget.
Our Take: Tangible Gratitude vs. Red Tape
At Operation T.A.G., our mission is simple: we believe in Tangible Acts of Gratitude. We think that when a military family buys a home, they deserve a real, financial "thank you" that doesn't come with a hidden bill attached later.
It’s a tough trade-off. We are thrilled to see catastrophically disabled veterans finally getting the $10,000 boost they deserve. However, we also believe that veterans shouldn't have to "pay for" their own benefits through higher housing costs.
That’s why we created the Hometown Hero Credit. We wanted to provide a program that is fully funded, has no gimmicks, and requires no repayment.
How the Hometown Hero Credit Helps
If these new VA loan fees have you worried about the cost of your next move or refinance, we’re here to help bridge that gap.
The Hometown Hero Credit is a program of Operation T.A.G., a 501(c)(3) non-profit project. We offer military families a 2% credit up to $21,000 to help them purchase or refinance a home.
Here is exactly how it works:
- It's Based on Your Loan: The 2% credit is calculated on your total loan amount, not the sales price of the home.
- It Covers the Gaps: Since VA loans generally do not require a down payment, our credit is designed to cover the other big costs. You can use it to:
- Pay your closing fees.
- Buy down your interest rate (to get a lower monthly payment).
- Pay real estate agent fees.
- In some cases, pay down existing debt to help you qualify for a VA loan.
- No Strings Attached: This is a non-profit program. There are no games, no gimmicks, and you never have to pay it back. It is not limited to first-time buyers, either.
While the government might be raising fees to balance their books, we are working with our nationwide network of real estate agent partners to put money back in your pocket.
Next Steps for You
Staying informed is the first step to protecting your financial future. As H.R. 6047 moves forward, it’s important to talk to a professional who understands how these changes: and our 2% credit up to $21,000: can affect your specific situation.
Whether you’re a veteran looking for your next home or a real estate agent who wants to join us in saying "thank you" in a tangible way, we invite you to reach out.
We are here to make sure that "Thank you for your service" is more than just a phrase: it's a financial reality.
Brett Stacy
National Director & Founder of the Hometown Hero Credit
A program of Operation T.A.G. (Tangible Act of Gratitude)
A 501(c)(3) non-profit project of HDCF
Websites: www.OperationTAG.org and www.HometownHeroCredit.com
Phone: 760-456-8748 (24-hour Information Line)
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