Mr. Speaker, I thank the gentleman very much for the time. I am very pleased to support Senate 2486, the Veterans Benefit Improvement Act of 2004, and I am glad we got it finished this year. I know that there was some question about…
Mr. Speaker, I thank the gentleman very much for the time.
I am very pleased to support Senate 2486, the Veterans Benefit Improvement Act of 2004, and I am glad we got it finished this year. I know that there was some question about whether or not we would have time to get this very important bill up, and I certainly commend the gentleman from New Jersey (Mr. Smith), the chairman, and the gentleman from Illinois (Mr. Evans), the ranking member, for their efforts on behalf of veterans, along with all the members of the committee who are truly dedicated to America's heroes.
This bill includes an expansion of educational benefits for veterans and clarifies protections to servicemen and -women under the Servicemember Civil Relief Act, and it also improves the housing benefit available to veterans through the VA home loan.
It is the last provision of this bill that I would like to elaborate on as it is the product of a bipartisan collaboration between the gentlewoman from California (Mrs. Davis) and myself. Certainly, the chairman of the committee was very, very generous in working so hard on the bill and all the provisions of the bill, but this particular provision is one that will certainly impact our young men and women returning from Iraq.
Like so many other aspects of a soldier's life, many soldiers postpone homeownership until after they are out of the service. For these soldiers, as housing prices increase, the VA home loan value actually decreases in real terms.
The rising housing market erodes the purchasing power of the VA home loan. Depending on where the veteran lives, the current maximum of $240,000 is simply insufficient to meet their housing needs.
The bill, which encompasses a bill which the gentlewoman from California (Mrs. Davis) and I had worked on, which passed this House, indexes the maximum VA guarantee amount to 25 percent of the Freddie Mac conforming loan rate. The prevailing VA loan under this new change would be $333,700 in 2004, and it would continue to adjust as housing market needs increase.
We are all very proud of the young men and women who serve our Nation, past and present, and I am sure that the Members will agree that the value of their benefit should not vary depending on where they live or where they choose to purchase a home.
This legislation is very important and timely, and I urge my colleagues' support. I urge all the Members to support this.
Again, I commend my colleagues and especially the chairman for working so hard on this, what could very easily be called an omnibus, comprehensive bill to benefit our Nation's veterans.