The veteran suicide crisis continues to claim the lives of 17 veterans each day, totaling more than 6,000 deaths annually, according to the 2023 National Veteran Suicide Prevention Report. Veterans who engage with VA healthcare are nearly twice as likely to die by suicide compared to those who do not, exposing significant gaps in care [1].

I am one of the veterans affected by this ongoing crisis. As a disabled veteran, I have been homeless since 2018 because my disability compensation—the financial support I rely on due to my service-related disabilities—was illegally misclassified as income. This misclassification has denied me access to the housing, healthcare, and legal services I desperately need. My story is just one of many across Texas and the nation, where veterans are unlawfully denied the services meant to protect and support them.

Behind every one of the 35,574 homeless veterans is a story of service, sacrifice, and neglect by the very organizations that were created to protect them. Veterans like me, left homeless and struggling, are being denied basic rights due to bureaucratic misclassification and illegal practices. 

Impact of Illegal Practices by HUD-VASH, Medicaid, SNAP, and Lone Star Legal Aid: 

The illegal actions of HUD-VASH, Medicaid, SNAP, and Lone Star Legal Aid stem from their failure to comply with federal laws protecting veterans' disability compensation from being counted as income. This misclassification violates:

• 38 U.S.C. § 5301: Protects veterans' disability benefits from being treated as income for benefits purposes.

 

• 38 CFR § 3.272: Ensures veterans' disability compensation is not countable for certain federal needs-based programs.

 

• 26 U.S.C. § 104: Specifies that veterans' disability benefits are exempt from federal taxation, and therefore should not be treated as income.

HUD-VASH is denying housing assistance by counting veterans' disability compensation as income. Veterans like myself, who are left homeless as a result, are five times more likely to die by suicide than their housed counterparts [1]. The 2023 Annual Homelessness Assessment Report (AHAR) to Congress revealed that over 35,000 veterans were homeless in 2023, reflecting a 7.4% increase from the previous year [2]. HUD-VASH actions contribute directly to the growing veteran homelessness crisis.

Medicaid denies healthcare coverage based on the illegal misclassification of veterans’ disability compensation. This leaves veterans with the VA healthcare system as their only option, which is linked to an increased suicide risk, nearly twice as high as veterans not engaged with the VA [1].

SNAP denies food assistance to veterans, further worsening food insecurity, which doubles the risk of suicide [1]. Veterans who cannot access basic food assistance are left to struggle with survival, directly contributing to the rising suicide rates. 

Lone Star Legal Aid refuses to provide legal services based on this same illegal classification, leaving veterans with no legal recourse to challenge their denial of housing, healthcare, or food assistance. Without access to legal aid, veterans like myself are forced into situations that increase the likelihood of homelessness, food insecurity, and eventual suicide [1]. 

Governor Greg Abbott’s Responsibility: 

Governor Greg Abbott, as the head of state overseeing the Texas Veterans Commission, has a legal and moral duty to ensure that these state-funded organizations comply with federal laws, including 38 U.S.C. § 5301, 38 CFR § 3.272, and 26 U.S.C. § 104. Texas is home to one of the largest veteran populations in the country, and the Michael E. DeBakey VA Medical Center in Houston, the largest VA medical center nationwide, serves over 131,000 veterans annually [3]. Despite these resources, systemic barriers prevent veterans from receiving the support they are entitled to, worsening the suicide and homelessness crisis. 

Governor Abbott’s inaction is directly contributing to the alarming number of 35,574 homeless veterans nationwide, including many in Texas [2]. Homeless veterans are significantly more likely to die by suicide, yet these organizations continue to deny them basic services.

Siphoning of Veteran Funds into Operating Budgets:

Many of these organizations, including HUD-VASH, Medicaid, SNAP, and Lone Star Legal Aid, are siphoning funds meant to help veterans into their operating budgets. This diversion of resources creates a financial incentive to deny veterans the services they are owed, as it justifies future budget increases. By inflating administrative costs rather than focusing on veteran support, these organizations have created an industry around denying benefits, further exacerbating the homelessness and suicide crisis for veterans. 

Demands: 

We call upon the Department of Justice and Texas state officials, particularly Governor Greg Abbott, to:

• Investigate and Prosecute: Conduct a formal investigation into HUD-VASH, Medicaid, SNAP, and Lone Star Legal Aid for their illegal misclassification of veterans' disability compensation and the siphoning of veteran funds into operating budgets. These actions violate 38 U.S.C. § 5301, 38 CFR § 3.272, and 26 U.S.C. § 104.

 

• Withdraw Funding from Noncompliant Organizations: Governor Abbott must immediately cut funding from any organizations found to be violating federal laws, redirecting funds to organizations that comply with federal law and focus on directly supporting veterans.

 

• Appoint a New Director for the Texas Veterans Commission: Given the lack of compliance under current leadership, Governor Abbott must appoint new leadership for the Texas Veterans Commission, replacing Thomas Palladino, the current Executive Director, who has overseen ongoing violations. 

 

Conclusion:

The illegal misclassification of veterans' disability compensation as income and the siphoning of funds into operating budgets are violations of federal law and a betrayal of veterans’ constitutional rights. These practices are directly contributing to the veteran suicide and homelessness crisis, and urgent action is needed to protect the lives of our nation’s veterans. The Department of Justice and Governor Greg Abbott must ensure compliance with federal laws, appoint new leadership for the Texas Veterans Commission, implement a whistleblower system, and prevent further exploitation of veterans.