The conference report for H.R. 2658, the Department of Defense Appropriations Act for Fiscal Year 2004, which passed the Senate and House of Representatives this week includes a provision removing a fiscal year 2003 cap on new loans under the Native American Veteran Housing Loan Program. U.S. Senator Daniel K. Akaka (D-Hawaii) worked with U.S. Senator Daniel K. Inouye (D-Hawaii) and the leadership of the Senate Appropriations Committee to eliminate the loan limits on the housing program.

In 1992, Senator Akaka authored legislation that established a pilot program of direct home loans to assist Native American veterans who reside on trust lands. The program is currently authorized through December 31, 2005. This program, administered by the Department of Veterans Affairs (VA), provides direct loans to Native American veterans to build or purchase homes on trust lands. Prior to the program, Native American veterans who resided on trust lands were unable to qualify for VA home loan benefits.

The VA has worked to create a program that addresses the needs of hundreds of different tribal entities, and has successfully entered into agreements to provide direct VA loans to members of 59 tribes and Pacific Island groups. The program has helped hundreds of Native American veterans to achieve home ownership. Approximately 255 new construction loans and 195 interest rate reduction loans have been closed or are pending through fiscal year 2003 for Native Hawaiian veterans residing on Hawaiian homelands and veterans residing in American Samoa and Saipan.

"This program has helped Native Hawaiian veterans and Native American veterans take advantage of a benefit provided all other veterans," Akaka said. "I appreciate the leadership and support of Senator Inouye in ensuring that this unnecessary limitation on a highly successful and cost-effective program is removed. Without this program, it would be incredibly difficult for Native Americans living on trust lands to obtain home loan financing."