Fact Check: VA Secretary claims VASP could cost taxpayers 'multiple billions of dollars.'

What We Know

The claim regarding the potential cost of the Veterans Affairs Servicing Purchase program (VASP) to taxpayers originates from a statement made by VA Secretary Doug Collins. In a video message, Collins stated that the program could cost taxpayers "billions for decades that we do not have" (VA Secretary Doug Collins addresses Veterans benefits). This assertion aligns with concerns raised by some members of Congress, who have criticized the program for putting taxpayer money at risk (Thousands of veterans face foreclosure after Trump's VA ends key ...).

In April 2024, the VA estimated that it would purchase over 60,000 loans for a total of $17.7 billion, indicating a significant financial commitment associated with the VASP program (Chairman Bost, Van Orden Issue Joint Statement on Phase Out of VASP ...). The program was designed to assist veterans facing foreclosure, but its financial implications have raised alarms among lawmakers, particularly regarding its sustainability and long-term costs.

Analysis

The statement from Secretary Collins reflects a broader concern about the financial viability of the VASP program. Critics argue that while the program aims to help veterans, it may lead to substantial long-term costs for taxpayers. For instance, the program's design involves purchasing loans at an average cost of $292,000, which is significantly higher than the average loan delinquency of $22,500 that the program was intended to address (Chairman Bost, Van Orden Issue Joint Statement on Phase Out of VASP ...).

However, it is essential to consider the context of these claims. The VA has indicated that the VASP program could ultimately result in reduced government subsidy spending, which may benefit both veterans and taxpayers (PDF Message From Va'S Secretary). This suggests that while the upfront costs may be high, the long-term financial impact could be mitigated if the program effectively reduces foreclosures and associated costs.

The reliability of the sources varies. The statement from Secretary Collins is a direct quote from a government official, which generally lends it credibility. However, the context and potential biases of the sources reporting on the issue should also be considered. For example, reports from partisan sources may emphasize the negative aspects of the program without acknowledging its intended benefits.

Conclusion

Needs Research. While Secretary Collins' statement about the potential costs of the VASP program is grounded in concerns raised by lawmakers and reflects a significant financial commitment, the long-term implications of the program are still uncertain. Further investigation is needed to assess the program's effectiveness and its overall impact on taxpayers. More comprehensive data on the program's outcomes and financial sustainability would provide a clearer picture.

Fact Check: VA Secretary claims VASP could cost taxpayers 'multiple billions of dollars.'