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House committee debates DIC, SMC increases while rift grows over home‑loan fee offset

December 04, 2025 | Veterans Affairs: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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House committee debates DIC, SMC increases while rift grows over home‑loan fee offset
Chairman Bost opened the House Veterans' Affairs Committee hearing saying Congress should act to raise long‑stagnant survivor and catastrophic‑care benefits and described HR 6047 as a bipartisan step to do so. He said the bill would add 1 percentage point to DIC each year for five years and raise special monthly compensation tiers for veterans with catastrophic disabilities, and he framed a proposed offset that would require veterans rated 70% or below to pay the VA home‑loan funding fee on subsequent (second or later) loans.

Why it matters: Supporters contend modest, permanent increases in Dependency and Indemnity Compensation (DIC) and a boost to Special Monthly Compensation (SMC) are overdue and would help families cover housing, care and daily costs. Opponents say the bill’s financing creates a harmful precedent by cutting or adding costs for one group of veterans to pay for another’s benefits.

Supporters’ case: Representative Barrett, the bill’s sponsor, and advocate witnesses argued the measure would provide a reliable increase after decades without meaningful change. Ed Edmondson, father and caregiver for Sergeant Eric Edmondson, told the committee his family has provided round‑the‑clock care for 20 years and described the proposed SMC increases as “a lifeline” to keep accessible homes and critical care in place. Tom Wheaton of Paralyzed Veterans of America said even with SMC, many costs of daily disability remain uncovered and that targeted increases would reduce financial strain and potentially avoid costlier institutional care.

Opposition and financing dispute: Ranking Member Takano and several Democratic members repeatedly opposed the method of paying for the bill. Takano called the proposed home‑loan funding fee “a tax on disabled veterans,” saying it pits one group of veterans against another and urged alternate offsets, such as waiving PAYGO rules, seeking offsets from other committees, or expanding loan transferability to dependents. Christina Keenan of the VFW testified she supports raising survivor and SMC rates but warned HR 6047 would “break a long‑standing promise” if it forces disabled veterans to pay funding fees that historically exempted them.

Practical impacts discussed: Members cited local housing costs to illustrate the offset’s burden—committee members offered median home prices ranging from about $400,000 to $800,000 and estimated additional funding‑fee costs from thousands up to tens of thousands of dollars depending on the market. Witnesses and lawmakers alike warned rolling the fee into mortgages would increase long‑term interest costs and reduce monthly budgets for groceries, medication and care.

VA position and program numbers: VA Deputy Under Secretary Margarita Devlin told the committee VA supports the intent of increasing SMC and DIC and provided technical drafting recommendations (for example, rounding SMC rates and aligning COLA mechanics). VA reported 552,505 active DIC recipients and 12,000 pending claims; the department said it is still analyzing the fiscal and operational impacts of the proposed home‑loan fee change (section 3) and will provide detailed comments.

Outlook and next steps: Committee members agreed increases are needed but remained sharply divided over pay‑fors. Ranking Member Takano pressed for a bipartisan alternative that would not impose new fees on disabled veterans, while Chairman Bost said he would work to move the bill and negotiate changes. The committee adjourned after setting a short window for members to extend and revise remarks and before any markup or formal vote.

Representative and witness attributions: The article quotes and paraphrases testimony and remarks from individuals sworn and identified at the hearing: Chairman Bost (chair, House Committee on Veterans' Affairs), Ranking Member Takano (ranking member, House Committee on Veterans' Affairs), Representative Barrett (bill sponsor), Ed Edmondson (father/caregiver of Sergeant Eric Edmondson), Sherry Briley (surviving spouse), Tom Wheaton (Paralyzed Veterans of America), and Margarita Devlin (VA Deputy Under Secretary for Benefits).

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