Boozman, Moran, Lankford, Blackburn, Cramer & Braun urge VA to protect VA home loans from costly energy conservation standards

WASHINGTON –– U.S. Senator John Boozman (R-AR), a senior member of the Senate Veterans’ Affairs Committee, joined Ranking Member Jerry Moran (R-KS) and Senators James Lankford (R-OK), Marsha Blackburn (R-TN), Kevin Cramer (R-ND) and Mike Braun (R-IN) to raise concerns to Department of Veterans Affairs (VA) Secretary Denis McDonough about how recently adopted Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) energy conservation policies could impact the cost of VA home loans for veterans.

On April 26, HUD and USDA announced they would be implementing the 2021 version of the International Energy Conservation Code (IECC) as the minimum energy efficiency standards for the financing of new single and multifamily homes. 

“If adopted by the Department of Veterans Affairs, we are concerned that the revised standards could negatively affect the availability, affordability, and competitiveness of VA home loans for veterans,” wrote the senators. “Declining to finance any loans for new homes that do not meet these increased requirements, the agencies put accessible homeownership in jeopardy for thousands of veterans. Both rental and housing costs have risen at the fastest rates in decades, and any proposals that raise the cost of home building must be meticulously examined.”

“NAHB commends Sen. Moran for urging the VA Secretary to produce the department’s own analysis on how the 2021 IECC would affect housing affordability and the ability of veterans to obtain VA home loans,” said National Association of Home Builders Chairman Carl Harris. “Studies have shown that requiring new construction to adopt to the 2021 IECC can add as much as $31,000 to the price of a new home and that it would require up to 90 years for a home buyer to realize a payback on the added upfront cost of the home. Sen. Moran and the nation’s home builders are concerned that if VA were to adopt the 2021 IECC, it would prevent many of our nation’s veterans from purchasing a new home using a VA home loan.” 

The full text of the letter can be found below.

Dear Secretary McDonough,

We write to raise significant concerns about the Department of Housing and Urban Development’s (HUD) and Department of Agriculture’s (USDA) recently adopted revised energy standards for newly constructed homes insured or guaranteed by their respective Departments.

We are particularly concerned with the impact of the agencies’ final determination, implementing the 2021 version of the International Energy Conservation Code (IECC), on veteran homebuyers. By only financing new homes if they are built to the 2021 IECC standards, HUD and USDA describe the potential for a market where “new construction for Federal Housing Administration borrowers would decline.”  If adopted by the Department of Veterans Affairs (VA), we are concerned that the revised standards could negatively affect the availability, affordability, and competitiveness of VA home loans for veterans.

Recent estimates indicate that even a one thousand dollar increase in home prices would price over one hundred thousand Americans out of the housing market.  As mortgage rates hover around seven percent, the revised standards could lead prospective homeowners to pay tens of thousands of dollars more over the course of a 30-year mortgage. Included in the Regulatory Impact Analysis, HUD and USDA rightly recognize that “lower-income households are less willing than higher-income ones to accept longer payback periods for energy-efficient investments.” Declining to finance any loans for new homes that do not meet these increased requirements, the agencies put accessible homeownership in jeopardy for thousands of veterans.

Both rental and housing costs have risen at the fastest rates in decades, and any proposals that raise the cost of home building must be meticulously examined. Additionally, it is our duty to ensure that veterans have robust access to VA-financed home loans. In turn, we respectfully call your attention to a directive included in the Senate’s Fiscal Year 2025 Military Construction and Veterans Affairs Appropriations Committee Report on the revised energy standards and look forward to VA’s evaluation of how adoption would impact costs for veteran homebuyers, including the availability, affordability, and competitiveness of VA home loans.

Cotton, Colleagues introduce bill to repeal Biden Administration’s Arms Embargo on Israel

Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced the Israel Security Assistance Support Act, legislation that would force the Biden administration to send critical weapons to Israel. The bill comes after President Biden announced that his administration would withhold certain weapons from Israel if it conducted a full-scale ground invasion of Rafah in Gaza.

Senators John Barrasso (R-Wyoming), Katie Britt (R-Alabama), Ted Budd (R-North Carolina), Kevin Cramer (R-North Dakota), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Montana), Joni Ernst (R-Iowa), Deb Fischer (R-Nebraska), Lindsey Graham (R-South Carolina), Josh Hawley (R-Missouri), John Hoeven (R-North Dakota), Cindy Hyde-Smith (R-Mississippi), John Kennedy (R-Louisiana), James Lankford (R-Oklahoma), Cynthia Lummis (R-Wyoming), Roger Marshall (R-Kansas), Pete Ricketts (R-Nebraska), Marco Rubio (R-Florida), Rick Scott (R-Florida), Dan Sullivan (R-Alaska), and Thom Tillis (R-North Carolina) are co-sponsors of the legislation. Congressman Ken Calvert (California-41) introduced companion legislation in the House.

“President Biden’s decision to impose a de facto arms embargo on Israel is a betrayal of one of our most important allies as it fights an existential war for survival. This bill will reverse Joe Biden’s arms embargo and withhold the salaries of officials who implement it,” said Senator Cotton.

“President Biden’s decision to withhold a portion of the Israel security aid just passed by an overwhelming and bipartisan majority of Congress projects the very weakness that has become a trademark of his presidency. If President Biden will not release these weapons, Congress must act to enforce the United States’ support for Israel in its efforts to eliminate Hamas. I thank Senator Cotton for his steadfast support for Israel and introduction of The Israel Security Assistance Support Act in the Senate,” said Congressman Calvert.

Bill text may be found here.

The Israel Security Assistance Support Act would:

• Force the Biden administration to complete the delivery of weapons to Israel.

• Cancel the salaries of any Biden administration official at the Department of Defense or Department of State who take any action to withhold the delivery of weapons to Israel.

Cotton, Sullivan, Colleagues to Austin: NATO is Not a Charity

Washington, D.C. — Senator Tom Cotton (R-Arkansas), along with Senator Dan Sullivan (R-Alaska) and 20 of their Senate Republican colleagues, today sent a letter to Secretary of Defense Lloyd Austin requesting an update on how the Department of Defense evaluates U.S. activities as they relate to North Atlantic Treaty Organization (NATO) members’ defense expenditures, in compliance with the requirement in the FY24 NDAA.

Co-signing the letter were Senators Rick Scott (R-Florida), Marsha Blackburn (R-Tennessee), Joni Ernst (R-Iowa), Ted Budd (R-North Carolina), Kevin Cramer (R-North Dakota), Pete Ricketts (R-Nebraska), Mike Braun (R-Indiana), Ted Cruz (R-Texas), John Hoeven (R-North Dakota), Katie Britt (R-Alabama), Jerry Moran (R-Kansas), James Lankford (R-Oklahoma), Bill Hagerty (R-Tennessee), Marco Rubio (R-Florida), Tim Scott (R-South Carolina), Deb Fischer (R-Nebraska), Cynthia Lummis (R-Wyoming), Mike Rounds (R-South Dakota), Lindsey Graham (R-South Carolina), and Josh Hawley (R-Missouri).

In part, the senators wrote:

“NATO is not a charity; it’s a military alliance. All NATO members must bear a meaningful share of the burdens of collective defense.”

Full text of the letter may be found here and below.

April 4, 2024

The Honorable Lloyd J. Austin III
Secretary of Defense?
1000 Defense Pentagon
Washington, D.C. 20301-1000

Dear Mr. Secretary,

We write to you inquiring how the Department of Defense is implementing Section 1250 of the Fiscal Year 2024 National Defense Authorization Act (NDAA). This provision of law requires you to consider whether a NATO partner “has achieved defense spending of not less than 2 percent of its gross domestic product” when weighing decisions related to U.S. military basing, training, and exercises within the alliance.

We are committed to the historic NATO alliance and are encouraged that NATO countries collectively increased defense spending by 11% in 2023. However, a total of only 11 out of 32 NATO countries presently meet their defense spending commitments under the 2014 Wales and 2023 Vilnius Summit Declarations. According to optimistic estimates, 18 NATO nations are expected to meet their defense spending commitments this year. This means that barely half of NATO members will meet the deadline to increase defense spending to a minimum of two percent of gross domestic product—a deadline that was self-imposed and agreed to by unanimous consent.

Many wealthy NATO members have chronically shortchanged their own militaries and relied on other members of the alliance, particularly the United States, to make the investments necessary to achieve collective defense. The United States cannot be expected to satisfy its financial obligation if other NATO members are unwilling or unable to do the same. Our government must hold these allies accountable and Section 1250 of the FY24 NDAA is an important step in that direction.

NATO is not a charity; it’s a military alliance. All NATO members must bear a meaningful share of the burdens of collective defense.

We therefore request an update no later than April 25 on how the Department of Defense evaluates U.S. activities as they relate to NATO members’ defense expenditures, in compliance with the requirement in the FY24 NDAA.

We appreciate your attention to this important matter.

 Sincerely,