Can HUD use my agent orange disability check as income?
Yes, of course. It's real money after all. Almost all agencies that have any sort of means tested benefit scheme will use VA and other disability payments as income. When you complete applications and you don't include your VA disability benefits, you're in danger of committing fraud and that can be a tough one.
The only entity that I'm aware of that offers special privileges for VA disability income is the IRS...they let you keep it.