Just weeks after mortgage trade groups expressed concern about a bill in the U.S. House of Representatives that would raise fees on U.S. Department of Veterans Affairs (VA) loans, Republicans in Congress have revised the original proposal.
The bill, H.R. 6047 — also known as the Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act of 2025 — was introduced in November by Rep. Tom Barrett (R-Mich.) and is co-sponsored by House Veterans’ Affairs Committee Chairman Mike Bost (R-Ill.). The legislation would expand the VA’s dependency and indemnity compensation for surviving family members and boost special monthly compensation for catastrophically disabled veterans.
The original plan would have raised VA home purchase loan fees to help fund the expanded benefits. But under the revised proposal, purchase loan fees would stay the same, according to a report from The New York Times.
Instead, the bill would increase fees on VA Interest Rate Reduction Refinance Loans (IRRRLs) and slightly raise fees for VA loan assumptions, when a veteran or non-veteran takes over an existing loan. Details on the revised refinancing fee have not been finalized, according to comments given to HousingWire by Kathleen McCarthy, spokeswoman for the House Committee on Veterans’ Affairs.
The amendment to make the offset change to the bill will be publicly available on the committee repository on Monday night in advance of the Thursday markup, McCarthy said.
Lawmakers say the IRRRL is optional, so veterans who want to lower their interest rates can use it. Disabled veterans would not pay extra fees and the changes would not affect their ability to use the program.
The revision follows criticism that higher borrowing costs could undermine one of the federal government’s most important housing benefits at a time of elevated home prices.
House PAYGO rules require offsets to bring legislation to the floor. Similar temporary VA mortgage fee increases were enacted in 2019 and expired in 2023.
