HOUSING RELIEF ON THE HORIZON: How the ’21st Century ROAD to Housing Act’ Directly Impacts Bennington & Local Veterans

Last updated: July 24, 2026

By Randy Breland, Editor | Bennington.newswk.com

BENNINGTON, VT — As working-class families and fixed-income residents across Southern Vermont continue to navigate tight housing markets and rising living costs, major federal relief is officially taking shape. The newly enacted 21st Century ROAD to Housing Act represents a landmark bipartisan legislative shift—and for the town of Bennington, municipal leaders, and our local veteran community, the policy changes could prove transformational.

While national headlines have focused heavily on macro-level real estate reforms, the 139-page law delivers immediate, tangible wins for rural communities in Vermont. By removing administrative red tape, modernizing grant structures, and carving out crucial protections for military service members, the legislation gives local leaders the exact tools needed to build, rehabilitate, and secure affordable housing right here in our backyard.

A Major Victory for Bennington Veterans

For Bennington’s veteran community—anchored by organizations like VFW Post #1332, who continuously advocate for former service members—one of the most meaningful reforms in the new law targets federal housing assistance.

Under previous regulations, military disability benefits were frequently included in income calculations for the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program. This created an unintended hardship, often pricing disabled veterans out of rental subsidies simply because they received compensation for service-connected injuries.

The 21st Century ROAD to Housing Act formally corrects this barrier:

• Disability Income Exclusions: The law explicitly mandates that HUD exclude VA disability compensation when calculating income eligibility for HUD-VASH and related housing assistance programs. Disabled veterans in Bennington County will no longer be penalized for the benefits earned through their military service.
• VA Loan Awareness & Disclosures: Standard mortgage application forms must now include explicit disclosures informing veterans of their potential eligibility for Department of Veterans Affairs (VA) home loans. This ensures local service members comparing financing options on Main Street get a transparent, side-by-side comparison with private mortgages.

“Expanding housing supply and removing financial barriers for disabled service members is an essential step toward ending veteran homelessness,” notes the National Coalition for Homeless Veterans regarding the bipartisan package.

Unlocking Local Funding: What It Means for Bennington

Beyond targeted veteran support, the legislation reshapes how municipalities in Vermont can deploy federal dollars to address local housing shortages.

Historically, smaller towns faced rigid, outdated guidelines that made utilizing federal funds for new construction a cumbersome legal process. The new law introduces key “carrots and sticks” to streamline project pipelines:

1. CDBG Program Overhaul: Revisions to the Community Development Block Grant (CDBG) program now allow local grant allocations to be used directly for constructing affordable housing. For Bennington officials, this means federal funds can directly back new residential builds rather than just soft infrastructure or limited repairs.
2. Repurposing Vacant Structures: Through pilot initiatives like the RESIDE program, rural communities will gain access to grants specifically earmarked to convert vacant commercial buildings, strip centers, or unused industrial spaces into mixed-income residential units.
3. Competitive Supply Grants: A new $200 million annual competitive grant pool running through 2031 will reward local jurisdictions that proactively adapt zoning and streamline permits to boost housing supply.

Looking Ahead

Municipalities across Vermont have until fiscal year 2029 to adapt local housing policies and maximize their eligibility for these expanded federal resources. For Bennington, where civic momentum is already focused on economic revitalization, the law offers a timely roadmap.

As local leaders begin mapping out future CDBG proposals and municipal housing strategies, local residents and veterans alike can expect to see new opportunities for accessible, high-quality housing taking root in the community.

Check back at Bennington.newswk.com throughout the week for updates on local selectboard meetings, CDBG grant proposals, and community veteran initiatives.

This article was produced with the assistance of AI and reviewed by our editorial team. Based on legislative analysis and reporting originally published by Stateline.