October 30, 2025

More than 75,000 student veterans’ benefits impacted by government shutdown

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More than 75,000 student veterans’ benefits impacted by government shutdown

Stars and Stripes reporting software problem prompted issue; computer technicians who can correct the error have been furloughed. 

Tuition and housing payments are backlogged for more than 75,000 college and trade-school students who are the dependents and survivors of former military members after a software problem stopped automated delivery of their benefits, according to a Stars and Stripes article. The U.S. Department of Veterans Affairs expects the slowdown to continue as payments are processed manually. Computer technicians who can fix the error are furloughed in the federal government shutdown that started Oct. 1, according to the agency.

Earlier this month, VA press secretary Peter Kasperowicz told Stars & Stripes that implementation of a new claims management system was delaying Chapter 35 payments and said it could take until late November or early December to resolve that issue, but that claims were being handled manually in the meantime. At the time, the total number of students impacted wasn’t disclosed.

Through Chapter 35, the survivors of deceased servicemembers and the dependents of 100% disabled veterans receive a monthly housing stipend rather than tuition payments to offset the cost of college, vocational and trade schools. Payments typically are made for the month just completed. Students must verify enrollments monthly by email or text, according to VA.

The government shutdown, now in its fourth week, already had impacted multiple VA services, including Ask.va, a web communication tool that allows veterans and their dependents to contact the VA; the GI Bill Hotline, the most commonly used tool for student veterans to communicate with the VA; and the School Certifying Officials (SCO) Hotline, without which Chapter 35 dependents cannot be certified for benefits. 

The American Legion continues to urge VA to develop a post-shutdown plan to effectively and efficiently catch up on missed paperwork to ensure there is no further lapse in benefits for veterans and their dependents.

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