Starting in 2026, the VA funding fee is deductible on Schedule A, treated the same way mortgage insurance premiums are — a genuinely new development after two straight weeks of PCS-timeline and school-district content. But before you get excited: this only helps if you itemize. With the standard deduction as high as it is post-2017, most VA buyers won't clear that threshold, so don't lead your readers to expect automatic savings — talk to a tax preparer first.

If you do itemize, the math is worth knowing. 2026 funding fee rates are unchanged: 2.15% on a first-use, no-down loan; 3.3% on subsequent use with no down; 1.5% at 5% down; 1.25% at 10%+ down. Pair that with where rates actually sit — 30-year VA loans are running roughly 6.25%–6.6% this week — and Fort Riley's 2026 BAH increase of 6.6%, and you've got real affordability context for anyone weighing a VA purchase right now.