# 119-hr-2723: VA Home Loan GRACE Act of 2025

119-hr-2723, VA Home Loan GRACE Act of 2025, is a 119th Congress bill sponsored by Rep. Kennedy, Timothy M. [D-NY-26] (D-NY); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2723
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2723
- Congress: 119
- Title: VA Home Loan GRACE Act of 2025
- Status: introduced
- Introduced: 2025-04-08
- Sponsor: Rep. Kennedy, Timothy M. [D-NY-26] (D-NY)
- Cosponsors: 1
- Policy area: Armed Forces and National Security
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Rewrites how VA home loan guarantees are calculated and capped.** This bill would replace the current entitlement framework with a tiered table that sets guaranty percentages and maximum entitlement by loan-size band and by whether a veteran is a covered veteran. - Veterans and families: Would tie guaranty percent and maximum entitlement to four loan-size bands, using fixed caps like $36,000 or $22,500 or formulas tied to the Freddie Mac conforming loan limit. - Co-borrowing veterans: Would allow automatic guaranty when two or more veterans use entitlement on a single loan, capped at 25% of the conforming loan limit (or 25% of the loan if no covered veteran) or the sum of their entitlements. Loans to two married veteran spouses with no other obligors are excluded. - Enforcement and fees: Would create a civil penalty up to $23,607 for knowingly false entitlement certifications and would extend the loan-fee schedule date to April 7, 2031.

## Cosponsors (1)

- Rep. Brownley, Julia [D-CA-26] (D-CA), 2025-04-08T00:00:00.000Z

## Provisions PRIA read

- VA loan fees delayed to 2031: benefit, low. If passed, VA would use April 7, 2031 instead of April 7, 2023 in its loan‑fee table. This would delay the next fee schedule change. Borrowers using VA loans could keep current fee levels longer. The change would start 180 days after enactment.
- New fines for false VA loan certifications: cost, high. If passed, a veteran who knowingly and materially makes a false VA home loan certification could owe up to $23,607 per violation. The VA Secretary would set the amount and may add other remedies. This would start 180 days after enactment.
- Changes to VA home loan guaranty: mixed, high. If enacted, VA would change how it guarantees VA home loans. A new table would set the guaranty percent and the maximum entitlement for each loan size. The guaranty would be the smaller of the table limit or the sum of each veteran’s entitlement. Rules would differ for covered vs. not‑covered veter…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-7853: PrEP Access and Coverage Act of 2026
- 119-hr-5862: American Energy Independence and Affordability Act

## Sources
- [119-hr-2723 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2723)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-7853: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-hr-7853)
- [119-hr-5862: American Energy Independence and Affordability Act](https://policyrisk.com/legislation/119-hr-5862)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2723 (as of 2025-12-21).