How The Shutdown Affects Veterans

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The Federal Savings Bank informs readers about the effects of the shutdown on veterans.

VA and FHA home loans at The Federal Savings Bank

The Federal Savings Bank

The shutdown has left 7,800 VA employees on furlough without pay, leaving a backlog of disability claims to pile up.

The government shutdown is nearing the end of its second week with little movement toward a resolution. Many Americans are feeling the impact, from furloughed workers to tourists facing closed parks and monuments. However, perhaps none are burdened more by the shutdown than the nation's war veterans The Federal Savings Bank, a veteran owned bank, is sharing this information with its prospective applicants.

Secretary of Veteran Affairs Eric Shinseki spoke to the House Veterans Affairs Committee on October 9th, warning that the consequences of the current political battle have left the nation's bravest in turmoil. If the shutdown continues to linger on, compensation payments will not be delivered for 3.8 million veterans, the Washington Post reported. In addition, 315,000 low-income veterans would not receive their pension payments. For veterans with a VA home loan, processing will not be affected.

The shutdown has left 7,800 VA employees on furlough without pay, leaving a backlog of disability claims to pile up. Half of these employees are veterans. In total, if the shutdown does not get resolved soon, millions of veterans will be affected. Beneficiaries are owed $6.25 billion on Nov. 1.

"I would say that what is best for veterans and for all of us right now is a budget for the entire federal government, let us get back to work," said Shinseki during his congressional testimony. "The sooner we do it, the faster I get back up to full speed."

The shutdown is currently causing a delay at a rate of 1,400 veterans per day for processing claims benefits, Shinseki told the committee. Before the shutdown, the Department of Veteran Affairs did have a backlog of beneficiary claims, but any progress to reduce the backlog has since been undermined by the shutdown.

Secretary Shinseki and President Obama both agree that passing a straightforward budget bill to fund and reopen the federal government is the best method to ensure that veterans will be able to receive their compensation payments. With Congress in a gridlock, the next vote is uncertain.

Contact the Federal Savings Bank, a veteran owned bank, to find out more about affordable housing options for veterans.

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