How Support For America’s Veteran Community Is Changing 

Earlier this month, President Joe Biden released his Fiscal Year 2022 budget, worth $6 trillion. As predicted and promised on the campaign trail, the spending plan addresses several of the president’s previously mentioned issues, including infrastructure spending, better care for aging seniors, and employment stimulation. After its release, many critics have raised the issue of a larger than needed defense budget that has been pegged at $715 million. While several of the president’s plans for veterans are still being debated, the veteran community is experiencing significant change in support from this administration – and rising hope that the outlook for America’s veteran families will improve.

Troops Earmarked For A 2.7 Percent Raise

For months, federal service member unions have called for a 3.2 percent increase in salaries. In response, President Biden has proposed a 2.7 percent hike for the federal workforce. The proposed raise is set to begin in January 2022. Military personnel are expected to receive a similar amount. Biden’s budget also set out plans to increase staffing levels at several military offices, including the Veteran Affairs office.

In response, the American Federation of Government Employees supported the raise, but criticized the amount. According to Everett Kelley, “While we are supportive that the long tradition of military-civilian pay raise parity has been honored in the president’s proposal, 2.7% is simply not nearly enough to compensate for the losses in buying power of federal wages and salaries over the past decade.” However, the impending pay raise is largely being welcomed, especially as more service members hope to get onto the property ladder.

Elimination Of VA Loan Cap Gives Hope To More Veteran Homeowners

In the past, veteran homeowners using the VA loan program were subject to VA loan limits. The VA loan program set a loan limit of $510, 200 in 2020. However, at the beginning of the year, limits on VA loans were removed, which has widened the home-buying potential for many veterans. For most cities, veterans with full entitlement will no longer be subject to loan limits. However, this does not mean unlimited buying power with no downpayment for service members. Judgment of lending amounts will still be made based on earning power, income, and your credit score. Whether you choose to make a down payment or not, a VA mortgage calculator remains critical when veterans are deciding how much to borrow and their home-buying budget.

Biden’s First Time Homebuyer Tax Credit Becomes A Bill

Another exciting development under the Biden administration has been the proposed $15,000 tax credit for first-time homebuyers. Earlier this month, it was announced that the proposed bill had made it to Congress and become a bill. Now dubbed the ‘First-Time Homebuyer Act’, the legislation will provide a 10 percent (or $15,000) tax credit to first-time homebuyers of all backgrounds.

This will positively impact veteran families, as well as other aspiring homeowners around the country. While the bill is still relatively new, details on eligibility for the tax credit are rapidly coming to light. To qualify for the $15,000 tax credit, you must have bought a home after December 31, 2021. Homeowners will also need to use the residence as their primary residence for at least three years.

There is much more to come under the current administration, including the American Jobs Plan. This will focus heavily on providing support for the veteran small business community. Almost 45 percent of veterans are estimated to be self-employed. With pending investment in the SME community, the government hopes to stimulate economic activity and income generation for veterans beyond their service years. Whether he will achieve all of his goals for the veteran community remains to be seen. However, it seems he is forging ahead at full speed.