Mr. President, I am pleased to join Senator Jeffords in introducing a bill that would permanently authorize the Department of Veterans Affairs Home Loan Guaranty Program for members of the Selected Reserve.
As the proud author of the original legislation enacted in 1992 to extend eligibility for the VA Home Loan Guaranty Program to National Guard and Reserve members, I am pleased with the results of the program. Tens of thousands of dedicated reservists who served for at least six years, and continue to serve or have received an honorable discharge, have been able to fulfill the dream of home ownership through this program. The participation of Guard and Reserve members not only benefits these service members, but also stabilizes the financial viability of the program since this group has had a lower default rate than most other program participants.
In anticipation of the October 1999 expiration of the eligibility of reservists for VA-guaranteed home loans, I introduced legislation last year to permanently authorize the VA Home Loan Guaranty Program for members of the Selected Reserve. With bipartisan support in the House and Senate, a revised version of my legislation was enacted into law. While I am pleased that the eligibility of reservists for veterans housing loans was extended to September 2003, I believe that permanent authority should be provided to members of the Selected Reserve.
Since the end of the cold war, we have reassessed the role, size, and structure of our Armed Forces. Recognizing the changes in our national military strategy prompted by a new global environment and appreciating the need to address our nation's budget deficit, we have significantly downsized our active duty military forces. As a result, the National Guard and Reserve have played a more prominent role in the Total Force. Reservists are being increasingly called upon to protect and promote our national security interests in regions throughout the world. Most recently, reservists have been serving alongside active duty forces in the Balkans to support NATO air operations over Kosovo. By making permanent the eligibility of members of the Selected Reserve for the VA Home Loan Guaranty Program, we would specifically recognize their vital service to our country and ensure that veterans housing loans will continue to be available to them beyond the near future.
The VA guaranty program is also an important component of a benefits package which makes Guard and Reserve service more attractive to qualified individuals. This is of particular importance during a time when the civilian sector is competing for the same pool of limited applicants, as well as when our military needs are becoming increasingly technical, demanding only the most intelligent, motivated, and competent individuals. Currently, the VA Home Loan Guaranty Program cannot be used as a recruitment tool since the authority expires in four years and reservists are required to serve for at least six years before they qualify for VA-guaranteed loans. A permanent authorization will assist the National Guard and Reserve with their recruitment efforts by allowing veterans housing loans to be offered as an incentive.
Thank you, Mr. President. I urge my colleagues to support this measure which would recognize the vital contributions of National Guard and Reserve members to our country, as well as ensure that veterans housing loans will continue to be available in the future.
