Since 1920, the Disabled American Veterans (DAV) has been dedicated to one single purpose: building better lives for disabled veterans and their families.
On behalf of the more than one million members of the DAV and its Auxiliary, I wish to express our deep appreciation for this opportunity to provide this Committee with the DAV's views on the effects of P.L. 104-134's requirement to have all direct federal benefits payments to individuals be made electronically.
Mr. Chairman, the provision that would require the electronic transfer of government funds to include compensation and pension benefits from the Department of Veterans Affairs (VA) to an individual's bank account may have significant consequences for large numbers of homeless veterans and others who are receiving compensation and pension benefits.
For many of these veterans, their only source of income is their check from the VA. Many veterans, including those who are homeless, may be unable to absorb the cost sometimes associated with maintaining minimum balances in order to have free checking or savings.
Some of these veterans may be transitioning from a homeless shelter to subsidized housing. The actual check may be imperative to obtaining and retaining transitional housing.
Mr. Chairman, homelessness among veterans has continued to be a major problem in this country. It has been estimated that on any given night, 250,000 to 280,000 veterans are homeless. This represents about 35 percent of the total homeless population, with veterans comprising approximately 14 percent of the total population. Of those homeless veterans, approximately 50 percent are from the Vietnam era. To make recipients have their check electronically transferred to a checking account could have a negative impact on their well-being, both physically and emotionally. Many veterans have also made local arrangements to have their check cashed immediately without the typical hold a bank may place on checks before the funds are available.
Again, the veteran may need that money for food and other daily living expenses. We believe these disabled veterans should be given this Committee's fullest attention in order to protect and ensure that no veteran is negatively impacted by implementation of Public Law 104-134.
Mr. Chairman, this concludes my statement. I will be pleased to respond to any questions
you or the Committee members may have.
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