[House Report 106-628]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-628
=======================================================================
VETERANS AND DEPENDENTS MILLENNIUM EDUCATION ACT
_______
May 19, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Stump, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 4268]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred the
bill (H.R. 4268) to amend title 38, United States Code, to
increase amounts of educational assistance for veterans under
the Montgomery GI Bill and to enhance programs providing
educational benefits under that title, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
The amendment (stated in terms of the page and line numbers
of the introduced bill) is as follows:
Page 15, strike lines 14 and 15 and insert in lieu thereof
the following:
(1) in paragraph (4)(B)--
(A) by striking ``2002'' and inserting
``2008; and
(B) by striking ``2003'' and inserting
``2009; and
Introduction
On April 13, 2000, the Chairman and Ranking Member of the
Veterans' Affairs Committee, the Honorable Bob Stump and the
Honorable Lane Evans, along with the Chairman of the
Subcommittee on Benefits, the Honorable Jack Quinn, and others,
introduced H.R. 4268 to amend title 38, United States Code, to
enhance programs providing education benefits to veterans.
On February 23, 1999, the Committee on Veterans' Affairs
held a hearing to receive the findings and recommendations of
the bipartisan Commission on Servicemembers and Veterans
Transition Assistance, the centerpiece of which was education
recommendations. The committee received testimony from Senator
Robert J. Dole, the sponsor of the legislation first calling
for the creation of the Commission and from Anthony J. Principi
and G. Kim Wincup, Commission Chairman and Vice Chairman,
respectively. On April 21, 1999, the Subcommittee on Benefits
held a hearing on veterans' educational legislative
initiatives, including H.R. 1182, introduced by Honorable Bob
Stump, Honorable Jack Quinn, and others, and H.R. 1071,
introduced by Honorable Lane Evans, Honorable Bob Filner and
others. Witnesses included the Honorable G.V. (Sonny)
Montgomery; Mr. G. Kim Wincup; Sergeant First Class Thomas R.
Krech, Recruiter, U.S. Army; Petty Officer Laura D. Johnson,
Recruiter, U.S. Navy; Staff Sergeant Robert A. Austin, Field
Recruiter, U.S. Air Force; Gunnery Sergeant Paul Jornet,
Recruiter, U.S. Marine Corps; Electricians Mate Second Class
Keisha R. Gill, Recruiter, U.S. Coast Guard; Vice Admiral P.A.
Tracey, Deputy Assistant Secretary of Defense, Military
Personnel Policy; Major General Evan Gaddis, Commanding
General, U.S. Army Recruiting Command; Rear Admiral Barbara E.
McGann, Commander, U.S. Navy Recruiting Command; Brigadier
General Peter U. Sutton, Commander, U.S. Air Force Recruiting
Service; Major General Gary L. Parks, Commanding General, U.S.
Marine Corps Recruiting; and Rear Admiral Thomas J. Barrett,
Director of Reserve and Training, U.S. Coast Guard; Joshua W.
Krebs, Chief Master Sergeant, USAF (Ret.), Manager, Legislative
Affairs, Air Force Sergeants Association; and Mr. Michael P.
Cline, Executive Director, Enlisted Association of the National
Guard, submitted testimony for the record.
A second hearing on these bills was held on May 20, 1999,
and witnesses included Ms. Nora Egan, Deputy Under Secretary for
Management, Veterans Benefits Administration; Dr. Steven F.
Kime, Chairman, Secretary of Veterans Affairs Advisory Commit-
tee on Education; Ms. Judith Lee Ladd, President, American School
Counselor Association; Mr. David A. Guzman, President, National
Association of Veterans Program Administers; Mr. C. Donald
Sweeney, Legislative Director, National Association of State Ap-
proving Agencies; Mr. Sid Daniels, Deputy Director, National Leg-
islative Services, Veterans of Foreign Wars; Mr. William F.
Frasure, Deputy Director, Government Relations, Vietnam Veter-
ans of America; Mr. Peter Gaytan, Legislative Director, AMVETS;
Mr. Matthew L. Puglisi, Assistant Director, National Veterans Af-
fairs and Rehabilitation Commission, The American Legion; Mr.
Harley Thomas, Associate Legislative Director, Paralyzed Veterans
of America; Mr. Larry D. Rhea, Deputy Director, Legislative Af-
fairs, Non Commissioned Officers Association; Mr. Charles L.
Calkins, National Executive Secretary, Fleet Reserve Association;
Mr. John J. Daly, Legislative Assistant, The Retired Enlisted Asso-
ciation; Mr. Benjamin H. Butler, Associate Legislative Counsel, Na-
tional Association for Uniformed Services; Joshua W. Krebs, Chief
Master Sergeant, USAF (Ret.), Manager, Legislative Affairs, Air
Force Sergeants Association; Mr. Theodore Stroup, Vice President,
Association of the U.S. Army; and Colonel Robert F. Norton, USA
(Ret.), Deputy Director, Government Relations, The Retired
Officers Association (TROA).
On October 28, 1999, the Subcommittee on Benefits met to
receive testimony on H.R 625, introduced by Honorable Robert
Ney.
On May 11, 2000, the Full Committee met and ordered H.R.
4268 reported favorably to the House by roll call vote of 21-0.
Summary of the Reported Bill
H.R. 4268 would:
1. LIncrease the All-Volunteer Force Educational Assistance
Program basic benefits (commonly referred to as the Montgomery
GI Bill or MGIB) from $536 to $600 per month on October 1,
2000, and to $720 per month on October 1, 2002, for full-time
students, with proportionate increases for part-time students.
2. LFurnish individuals still on active duty who either
turned down a previous opportunity to convert to the MGIB or
had a zero balance in their Post-Vietnam Era Veterans'
Educational Assistance Program (VEAP) account, the option to
pay $2,700 to convert to MGIB eligibility.
3. LIncrease survivors' and dependents' educational
assistance benefits for full-time students from $485 to $600
per month effective October 1, 2000, and $720 per month
effective October 1, 2002, with proportionate increases for
part-time students; also authorizes an annual cost-of-living
adjustment.
4. LPermit the award of Survivors' and Dependents'
Educational Assistance payments to be retroactive to the date
of entitlement, that is, service-connected death or award of
100 percent disability rating.
5. LAllow monthly educational assistance benefits to be
paid between term, quarter, or semester intervals of up to
eight weeks.
6. LAllow use of MGIB benefits to pay the fee for a
veteran's civilian occupational licensing or certification
examination.
7. LExtend temporary authority to 2008 that would otherwise
expire on September 30, 2002, including VA-enhanced loan asset
authority guaranteeing the payment of principal and interest on
VA-issued certificates or other securities; VA home loan fees
of 3/4 of one percent of the total loan amount; procedures
applicable to liquidation sales on defaulted home loans
guaranteed by VA; VA/Department of Health and Human Services
income verification authority in which VA verifies the
eligibility for VA needs-based benefits and VA means-tested
medical care by gaining access to income records of the
Department of Health and Human Services/Social Security
Administration and the Internal Revenue Service; and limitation
on VA pension on veterans without dependents receiving
Medicaid-covered nursing home care.
8. LCodify recurring provisions in annual Department of
Veterans Affairs Appropriations Acts.
9. LReinstate the requirement that the Secretary provide
periodic reports concerning equitable relief granted by the
Secretary to an individual beneficiary (expires December 31,
2004); work and activities of the Department; programs and
activities examined by the Advisory Committees on a) Former
Prisoners of War and b) Women Veterans (expires after biennial
reports submitted in 2003); operation of the Montgomery GI Bill
educational assistance program (expires December 31, 2004);
activities of the Secretary's special medical advisory group
(expires December 31, 2004); and also require the Secretary to
include with any report that is required by law or by a joint
explanatory statement of a Congressional conference committee
an estimate of the cost of preparing the report.
Background
Congress created the All-Volunteer Force Education
Assistance Program, commonly referred to as the Montgomery GI
Bill (MGIB), in 1984 as a pilot program and made the program
permanent in 1987 (Public Law 100-48). Congress created the
World War II, Korean, and Vietnam-era GI Bill programs
primarily to assist former servicemembers in readjusting to
civilian life. Congress designed such programs to (1) provide
vocational readjustment and restore lost educational
opportunities to those servicemen and servicewomen whose
careers had been interrupted or impeded by reason of active
duty, and (2) aid these individuals in attaining the vocational
and educational status which they might normally have aspired
to and obtained had they not served their country.
The MGIB was also designed to help former servicemembers in
readjustment to civilian life and to restore educational
opportunities lost as the result of the veteran's decision to
serve in the military. But unlike previous programs that
originated during a period of universal (male) military
service, Congress also designed the MGIB explicitly to assist
the Armed Forces in recruiting and retaining the high quality
individuals they need to attract to an All-Volunteer Force.
Subcommittee on Benefits hearing testimony and the
bipartisan Report of the Congressional Commission on
Servicemembers and Veterans Transition Assistance (``Transition
Commission'') show that despite the wisdom and foresight of
those who fought to reestablish a meaningful educational
assistance program, the MGIB is losing its effectiveness as
both a readjustment and recruitment tool.
Readjustment
The MGIB is inadequate as a readjustment tool. It currently
pays $536 per month from which the veteran must pay tuition,
books, fees, housing, and other personal expenses. 68 percent
of veterans are married at separation from the military and
many have children. The Transition Commission reported that
``during school year 1995-1996, the MGIB covered only 36
percent of total costs at the average four-year college.'' The
Commission also noted that ``through FY 1997, some 13 years
after enactment of the MGIB, only 48.7 percent of eligible
veterans used it. From 1987 through 1997, VA reported a 37.3
MGIB participation [usage] rate. Vietnam-era GI Bill usage for
the first 10 years [1966 to 1976] was 63.4 percent.''
Military leaders are also acutely aware of the eroded value
of the MGIB as evidenced by the testimony of Vice Admiral P.A.
Tracey, Deputy Assistant Secretary of Defense, Military
Personnel Policy, at the committee's April 21, 1999, hearing:
``Since its inception, the value of the MGIB, when adjusted for
inflation, has grown by only 24 percent, while college costs
have risen by 49 percent.'' Sergeant First Class Thomas Krech,
an Army recruiter stationed in Arizona, noted ``The current
Montgomery GI Bill, helps open some doors but the centers of
influence (even more than potential recruits) are in touch with
the reality of how much a college education costs these days.
The fact is that the $19,008 the current MGIB offers will not
even pay for one year in some colleges in the country.''
The committee notes analysis furnished from the
``Partnership for Veterans Education: Fulfilling America's
Promise'', established in January 2000, and based in
Washington, DC. The Partnership is comprised of 47 veterans,
military, and higher education associations led by the Non
Commissioned Officers Association of the United States, the
Veterans of Foreign Wars of the United States, the American
Council on Education, and The Retired Officers Association.
The Partnership cites 1999 data from Trends in College
Pricing furnished by the College Board, and concludes that the
monthly basic MGIB benefit would need to be $975 per month for
a veteran student to be able to pay an average tuition and
expenses as a commuter student at a four-year public college
for academic year 1999-2000. Over four years, the numbers are
even more alarming, as reported by the Partnership and the
College Board. Average tuition and expenses for a commuter
student at a four-year public college for academic year 1999-
2000 is $8,774. The MGIB now provides $536 monthly stipends
over four years; the total benefit payable is $19,296. Monthly
stipends would need to be $975 per month to meet the $35,096
four-year public college cost.
Recruitment
The MGIB as a recruitment tool has also become inadequate.
The RAND Corporation reports that even though total Department
of Defense recruiting requirements declined by 33 percent
between 1989 and 1998, the Army, Navy, Air Force, and Coast
Guard are experiencing serious recruiting challenges. Vice
Admiral P.A. Tracey, Deputy Assistant Secretary of Defense,
Military Personnel Policy, underscored this point at the
Subcommittee's April 1999, hearing:
[R]ecruiting has been the toughest we have
experienced in a long time in fiscal years 1998 and
1999. . . . Money for college consistently ranks as the
major reason young men and women give for enlisting. .
. . There is little doubt that the MGIB has met or
exceeded the expectations of its sponsors and has been
a major contributor to the success of the AVF.
The Transition Commission reported that the Department of
Defense's (DoD) 1995 Youth Attitude Tracking Survey (YATS)
showed that ``most college-bound youth and their families see a
tour of military service as a detour from their college plans,
not as a way to achieve that goal.'' DoD's YATS for fiscal year
1998 showed that only 26 percent of 16-21 year old men
expressed interest in military service. This compares
unfavorably with the 34 percent of young men who seriously
considered enlisting in fiscal year 1991.
The Transition Commission's 1999 report also found that
``the MGIB is losing its effectiveness in providing college-
caliber high school graduates with an incentive to join the
Armed Forces . . . the amount available under the MGIB is not
enough to compensate youth for the time spent and risk involved
in military service.'' Since 1985, about 95 percent of
servicemembers have paid $1,200 to participate in the MGIB. But
only about half of ex-servicemembers have used even part of
their MGIB, largely confirming that it does not meet their
needs. Judith Lee Ladd, President, American School Counselor
Association, notes parents' reaction to the low usage. Ms. Ladd
testifed that ``[s]tatistics showing only 48.7 percent of
eligible veterans use the Montgomery GI Bill educational
benefits heightens parental concern [about their son or
daughter serving in the military after high school graduation];
therefore, they want their student launched into higher
education before other factors can disrupt the drive.'' Joshua
R. Krebs, Chief Master Sergeant, USAF (Ret.), Manager,
Legislative Affairs, Air Force Sergeant's Association,
testified on the need to reverse the trend to which Ms. Ladd
spoke: ``. . . [W]hen high school students consider their post-
high school plans, we want them to consider military service as
their first option, not their last.'' (emphasis in original)
Secretary of Defense William S. Cohen chartered The United
States Commission on National Security/21st Century in 1998 to
assess U.S. defense needs in the 21st century. The Commission's
report warns that ``it is not clear how the military
establishment then, will sustain and recruit enough highly
skilled personnel to meet the increasing technical needs of an
advanced military.'' The Commission's statement about the need
to recruit sufficient quality personnel underscores what
witnesses testified to at the committee's April 21 or May 20,
1999, hearings. The committee notes four such observations:
First, Vice Admiral P.A. Tracey and Army Major General Evan
Gaddis, Commander of Army Recruiting Command, apprised the
committee that the universe of 17-21 year old males from which
the service branches recruit is about 14 or 16 out of 100. This
is because some 65 percent of youth today go on to some form of
postsecondary education, others are medically or morally
unqualified, and others do not meet the education or aptitude
requirements.
Second, DoD data show that about 80 percent of high school
graduates complete their first three years of service--compared
with about 65 percent of young people who have General
Equivalency Degree (GED) certificates.
Third, testimony from the Honorable G.V. (Sonny)
Montgomery, who championed the All-Volunteer Force educational
assistance program that bears his name, provided historical
perspective. Mr. Montgomery noted that the percentage of
recruits who were high school graduates nearly doubled after
implementation of the GI Bill test program in 1985. In fact, in
fiscal year 1992, 100 percent of all active-duty recruits had
graduated from high school. Mr. Montgomery reported the
percentage of recruits scoring in the upper half of the Armed
Forces Qualification Test soared as well after the GI Bill was
in place.
Fourth, Lieutenant General Theodore G. Stroup, U.S. Army
(Ret.), noted that All-Volunteer Force recruiting starts and
ends with the U. S. Army. He pointed out that in fiscal year
1999 alone, the Army faces a staggering recruiting requirement
of 184,000 for all its components--more than all of the other
services recruiting requirements combined.
The United States' defense needs may change dramatically;
``defending the Nation'' may take on new meaning. More
specifically, the success or failure of our military recruiting
may be most discernible right here at home, lending even more
importance to recruiting skilled personnel. Congress created
the National Defense Panel in accordance with Section 924 of
the Military Force Structure Act of 1996 to address long-term
issues facing U.S. defense and national security. The National
Defense Panel's 1998 report, Transforming Defense, National
Security in the 21st Century, says a real threat to the
Nation's security now includes terrorism directed against sites
in the country:
[T]he proliferation of nuclear, chemical, and
biological weapons and their delivery means will pose a
threat to our homeland and our forces overseas.
Information systems, the vital arteries of the modern
political, economic, and social infrastructures, will
undoubtedly be targets as well. . . . We must never
forget that our people in uniform have been the core of
our strength in the past. They, more than any hardware
system, form the defense capability of today and
tomorrow.
The committee recognizes that military service--the
Nation's most fundamental form of national service--calls for
many sacrifices that often have no comparison in the civilian
world. What are the standards by which the Congress, taxpayers,
servicemembers, veterans, business and industry are to judge
the Montgomery GI Bill? The committee finds useful the May 20,
1999, testimony of Larry D. Rhea, Deputy Director of
Legislative Affairs, Non Commissioned Officers Association of
the United States of America:
If the MGIB is to be judged a success in the future
as well as in the past, the evidence must show that
veterans are currently receiving post-secondary
education. The evidence must show that the military
services are currently recruiting the high-quality high
school graduates they need. The evidence must show that
the Nation has enhanced its competitiveness by taking
full advantage of the unique national resources
represented by the self-disciplined, goal-oriented,
steadfast team players developed through military
service. The evidence must show that the leadership
circles of government, academia, business, labor, and
media are enhanced by the presence of veterans in their
ranks.
The committee notes two additional points. The committee
will continue to look for ways to improve the MGIB benefit as
proposed by the Partnership for Veterans Education. Entitlement
increases that are not offset with savings or additional
revenues could lead to deficits or spending Social Security
funds. A responsible debate has to include a discussion of
offsets. Secondly, at its May 20, 1999, hearing, the committee
received testimony from several organizations, including Mr.
David A. Guzman, President, the National Association of
Veterans Program Administrators (NAVPA) and the Secretary of
Veterans Affairs' Advisory Committee on Education, stating that
the MGIB has become a non-benefit because the veteran student's
Federal Financial Aid is reduced by the amount of their MGIB
entitlement. The committee will examine this issue.
Discussion of the Reported Bill
INCREASE IN RATES OF BASIC EDUCATIONAL ASSISTANCE FOR SERVICE ON ACTIVE
DUTY UNDER THE MONTGOMERY GI BILL
The reported bill would increase Montgomery GI Bill basic
benefits from $536 per month to $600 per month for full-time
veteran students who served at least three years effective
October 1, 2000; the monthly rate for veteran students whose
initial active duty commitment was two years would increase
from $436 to $487. Further, effective October 1, 2002, this
section would increase Montgomery GI Bill basic benefits to
$720 per month for full-time veteran students. The monthly rate
for two-year enlistees would increase to $585 per month. In all
instances, proportionate increases would be provided for part-
time students.
ADDITIONAL OPPORTUNITY FOR CERTAIN VEAP PARTICIPANTS TO ENROLL IN BASIC
EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL
This section would furnish individuals still on active duty
who either declined a previous opportunity to convert to the
MGIB or had a zero balance in their Post-Vietnam Era Veterans'
Education Assistance Program (VEAP) account to pay $2,700 to
convert to MGIB eligibility. Individuals would have 12 months
to elect to convert and 18 months from the date of election to
make payment.
VEAP provides educational assistance payments to veterans
and current servicemembers who entered active duty between
January 1, 1977 and June 30, 1985. VEAP was the first
contributory education benefit plan. Under VEAP, active duty
servicemembers made voluntary contributions to an individual
account, which the federal government matched at a 2:1 ratio.
The maximum participant contribution was $2,700 and
participants could elect to make a lump-sum contribution to the
fund. In most cases, a veteran had 10 years in which to use the
education benefit, and/or make a claim for the unused
contribution.
Congress was able to provide the opportunity in Public Law
104-275 enacted on October 9, 1996, for about 76,000 active-
duty VEAP participants with funds in their VEAP account to
convert to the MGIB, if they desired. Only about 29,000 did so.
The Department of Defense estimates that about 137,000 active
duty personnel would be eligible for an additional VEAP sign
up. As testimony cited below indicates, many servicemembers who
initially signed up withdrew their contribution to the VEAP
account on the advice of their service branch.
The May 10, 1999, testimony of Colonel Robert F. Norton,
USA (Ret.) of The Retired Officers Association, illustrates the
view of the organizations testifying in support of resolving
the VEAP issue:
VEAP Conversion--The First Order of Business. Over
the past two and one-half years, TROA has heard from
many career active duty servicemembers who have been
``left behind'' with a fourth class education benefit .
. . They find it hard to believe that Congress would be
willing to authorize huge increases in education
benefits for new recruits and first or second termers,
but leave them behind with a benefit that is woefully
inadequate. The current situation stems from bad advice
that the Defense Department and Service counselors gave
to VEAP participants. . . . Compared to the current
MGIB basic rate of $528 per month, VEAP users would
exhaust the government-funded portion of the maximum
benefit in only 10 months or about one academic year. .
. . But the greater problem is that for years Service
counselors advised VEAP participants to cash out their
VEAP accounts and invest the money for their education
in the belief that they could make a VEAP contribution
before separation. . . . As a matter of fairness and
morale for the active duty career force and to enhance
their readjustment opportunities, The Retired Officers
Association strongly supports ``VEAP Conversion'' as
recommended by the Principi Commission [Commission on
Servicemembers and Veterans Transition Assistance].
The committee believes affording servicemembers who either
turned down a previous opportunity to convert or had a zero
balance in their VEAP account is much more desirable than
having these individuals return to civilian life without any
education benefits. Most individuals who will be eligible to
convert to MGIB benefits under this provision now have over 15
years of service. Many will need retraining to compete in the
civilian work force. Finally, the committee is advised that
some of those who withdrew their contribution to their VEAP
accounts did so on the advice of their service branch,
particularly the Air Force.
INCREASE IN RATES OF SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE
The reported bill would increase such benefits for full-
time students from $485 to $600 per month effective October 1,
2000, and $720 per month effective October 1, 2002, with
proportional increases for part-time students; it also
authorizes an annual cost-of-living adjustment.
Survivors' and Dependents' Educational Assistance (DEA)
benefits are provided to the surviving spouse and dependent
children of an individual who dies either on active duty or due
to a service-connected cause. The same benefits are furnished
to the spouse and dependent children of veterans who are
permanently and totally disabled due to a service-connected
injury or illness. The Congress provided that the purpose of
this program is to ``. . . provide opportunities for education
to children whose education would otherwise be impeded or
interrupted by reason of the disability or death of a parent
from a disease or injury incurred or aggravated in the Armed
Forces. . . and for the purpose of aiding such children in
attaining the educational status which they might normally have
aspired to and obtained but for the disability or death of such
parent.'' With respect to the spouse of the deceased
servicemember or permanently and totally disabled veteran, the
purpose of the benefit is to assist spouses ``in preparing to
support themselves and their families at a standard of living
level which the veterans, but for the veterans' death or
service disability, could have expected to provide for the
veteran's family.'' About 48,000 beneficiaries use education
benefits annually through this program.
Currently, the DEA rate is $485 per month for full-time
students, and $365 and $242 for students carrying three-quarter
and half-time loads, respectively. In 1985, DEA benefits to
full-time students paid 83 percent of the average cost of
attendance at a four-year public college. Current benefits,
however, cover dramatically less. The benefit afforded to full-
time students would have to be increased to $971 to achieve
parity with the 1985 benefit's educational purchasing power.
Ms. Margaret Murphy Peterson, Legislative Committee Director of
the Gold Stars Wives of America, Inc., testified on the
importance of realistic educational opportunities for widows:
Just as veterans face a transition when leaving the
military service and entering civilian life, so do
military/veterans' spouses and children experience a
tough transition when they become widows and orphans.
Our transition usually involves the uniquely military
hardships, including eviction from [military] quarters,
a major household move, and taking the children out of
school--many times in mid-year--in addition to the
usual hardships, including sudden substantial loss in
household income and emotional turmoil. . . . In 1998,
only 2,331 widows (less than 1 percent of all DIC
recipients) used their Survivors' and Dependents'
Educational Assistance benefits. The participation rate
is low because the benefit primarily appeals to, and
benefits, the younger widowed spouse, who typically is
raising children. The current program which pays $480
per month barely pays their [child] care. There is
rarely money left over for tuition or books. These
educational expenses are largely paid from the widow's
DIC and Social Security, which is hard to justify to
the children.
The committee believes the rate increase provided by
section 4 is a necessary minimum step toward accomplishing the
purposes stated in section 3500 of title 38, United States
Code.
ADJUSTED EFFECTIVE DATE FOR AWARD OF SURVIVORS' AND DEPENDENTS'
EDUCATIONAL ASSISTANCE
The reported bill would permit the award of Survivors' and
Dependents' Educational Assistance (DEA) payments to be
retroactive to the date of entitlement, that is, service-
connected death or award of 100 percent disability rating.
The committee's objective is to propose an equitable
solution for awarding retroactive DEA benefits when there is
significant administrative delay in establishing entitlement to
such benefits.
This concern is illustrated by the case of a surviving
spouse who files a claim for dependency and indemnity
compensation (DIC) and must wait more than a year for a final
VA decision on service connection for the veteran's death. If
VA adjudicates the veteran's death as service-connected, VA
generally will award DIC benefits from the day the veteran
died. However, under section 5113 of title 38, United States
Code, when the child subsequently seeks DEA benefits from the
date of the veteran's death, he or she may be paid
retroactively only for training pursued within one year or the
date of the child's DEA claim.
The Court of Appeals for Veterans Claims has held that a
child must file his or her DEA claim independent of the
surviving spouse's DIC claim. Pfau v. West, 12 Vet.App. 515
(1999); Erspamer v. Brown, 9 Vet.App 507 (1996). Therefore,
when a child waits for disposition of the DIC claim before
filing the DEA claim, he or she may not be able to receive
payment for training undertaken in the interim. A parallel
situation exists when the child wishes to claim DEA and the
veteran's claim for disability compensation is unresolved. The
DEA claim must be independent of the veterans' claim for a 100
percent service-connected disability. The committee notes the
October 28, 1999, testimony of Celia P. Dollarhide, Director of
the Education Service at the Department of Veterans Affairs, in
support for clarifying the law:
We do not disagree with the court's analysis of
current law. Yet, we must acknowledge that a child
seeking DEA assistance may be placed in a difficult
position because the child's claim of entitlement
necessarily derives from the status of the veterans'
claim for permanent and total disability or the
surviving spouse's DIC claim. If VA has not decided or
has denied the parent's compensation or DIC claim due
to failure to establish the requisite service
connection, it may be too much to expect the child,
nevertheless, to appreciate the need to file a timely
claim in order to preserve his or her rights.
Accordingly, we believe it is appropriate to consider
amendatory legislation that would provide certain
children a reasonable measure of relief in such
circumstances. . . . We would suggest, however, that it
be limited to children who reached age 18 and were in
school while the claim for DIC or 100 percent service-
connected disability was still pending.
The committee believes the relief proposed by section 5 is
a reasonable step toward addressing this unique situation in
which some dependent children find themselves.
REVISION OF EDUCATIONAL ASSISTANCE INTERVAL PAYMENT REQUIREMENTS
The reported bill would authorize VA to continue payment of
monthly educational assistance benefits to veterans enrolled at
educational institutions during periods between terms if the
interval between such periods does not exceed eight weeks.
Current law allows VA to pay only for intervals between
terms that do not exceed a full calendar month. The purpose for
paying benefits during term breaks is to allow the student
whose enrollment is essentially continuous to receive
uninterrupted educational assistance from VA since the veteran
continues to incur subsistence expenses during the interval.
The effect of current law was brought to the committee's
attention by the Honorable Robert W. Ney (R-OH), who testified
at the committee's October 28, 1999, hearing with respect to
how current law affects about 360 veteran students at Ohio
University:
. . . Ohio University's extended break between fall
and winter quarter . . . runs from the day prior to
Thanksgiving until the day after New Years; this break
averages about 40 days or six weeks of down time. Ohio
University is one of only a few public universities
that provides such a lengthy break from classes within
an academic year. . . . It is not reasonable to punish
veterans by withholding their December benefits when
they do not have the option of enrolling in course work
between the fall and winters quarters that is
appropriate to their academic programs. . . . I believe
if veterans have completed the fall quarter courses and
have registered for winter courses, they have verified
a commitment to continuous status and should be
eligible for continuous benefit payments.
The committee recognizes that veterans who receive benefits
during a long interval will exhaust their entitlement at a rate
faster than if they were not paid at such intervals. The
committee hopes that veteran students will act responsibly and
carefully consider this use of entitlement when making a
decision to accept benefits during breaks in their school
terms. Nevertheless, the committee strongly encourages VA to
notify affected veteran students of the effect on their
entitlement by appropriate, cost-effective means.
AVAILABILITY OF MONTGOMERY GI BILL BENEFITS FOR PAYMENT FOR LICENSING
OR CERTIFICATION TESTS
The reported bill would extend MGIB benefits to cover the
costs of licensing or certification for certain vocations or
professions. In 1997 when The American Legion published its
watershed analysis entitled ``Study of Civilian Licensure and
Certification for Veterans'', which was funded by the Veterans
Employment and Training Service of the Department of Labor, it
became clear that licensing and certification issues were
having an ever-growing affect on veterans seeking quality
employment in the civilian labor market. The American Legion
study found that about 38 percent of all separating
servicemembers have military occupational specialties with
civilian counterpart occupations requiring certification or
licensure. The Legion's study showed that civilian
credentialing could pose a significant barrier to employment
for transitioning military personnel. The statement of James B.
Hubbard, Director of The American Legion's Economics
Commission, commented on this point:
Leaving active duty military service is a landmark in
one's life. It involves decisions that will affect
veterans and their families for the rest of their days.
Every recently separated veteran faces similar
challenges. They need a job, they need housing, and
they need health care. Meaningful employment is
essential to meeting these challenges. Removal of a
paper-barrier will help make a fully qualified,
recently separated veteran job ready. (emphasis in
original)
The Congressional Budget Office (CBO) estimates that about
25,000 servicemembers separate each year with training in areas
that are subject to testing and licensure by civilian
authorities. CBO estimates the average cost of such tests to be
$150. The committee also notes testimony it received from Mr.
Steven C. Halsey of the Coalition for Professional
Certification. The Coalition is a diverse group of private
sector national certification bodies that have come together to
assist in the promulgation of effective governmental policies,
laws and procedures relative to the private sector
certification industry. The Coalition notes that there are
noncredible programs operating on the diploma-mill format of
the past, and suggest a minimal standard to avoid federal funds
being paid to unscrupulous certification vendors. To this end,
the committee bill defines the minimal characteristics required
of a certification and licensing body from which veterans may
be reimbursed for the cost of certification under the MGIB.
EXTENSION OF CERTAIN TEMPORARY AUTHORITIES
The reported bill would extend to December 31, 2008,
current laws which would otherwise expire on September 30,
2002, or December 31, 2002. The committee extends these
authorities to capture the offsets to fund the provisions in
its bill. These extensions include five title 38, United States
Code, authorities.
VA enhanced loan asset authority.--Section 3720(h) of title
38, United States Code, authorizes VA to guarantee the timely
payment of principal and interest to purchasers of real estate
mortgage investment conduits (REMICS). REMICS are used to
``bundle'' and market vendee loan notes. Such notes are made on
direct loans by VA to purchasers of VA-acquired real estate.
Using this authority, VA guarantees to REMIC purchasers that
principal and interest will be paid in a timely manner, which
in turn enhances the value of the REMICs in the secondary
market and increases the return to VA when such securities are
sold. Under Public Law 105-33 this authority would expire
December 31, 2002.
VA home loan fees.--Section 3729 of title 38, United States
Code, specifies that borrowers who obtain VA-guaranteed,
insured or direct home loans will pay a fee. For first loans,
the fees range from 0.5 percent to 2 percent, depending on the
amount of down payment and the type of military or naval
service (active duty or reserve). Public Law 103-66, the
Omnibus Budget Reconciliation Act of 1993 (OBRA '93), added
section 3729(a)(4) to title 38, U.S.C., to require a surcharge
of 0.75 percent for all first-use loans. Under Public Law 105-
33 this authority was extended to September 30, 2002. There is
no limitation on the number of times a veteran may use the VA
home loan program. Section 3729 of title 38, U.S.C., requires a
3 percent fee for all second and subsequent home loans with
less than 5 percent down payment.
Procedures applicable to liquidation sales of defaulted
home loans guaranteed by VA.--Section 3732 of title 38, United
States Code, specifies that VA has two options when a property,
the financing of which is guaranteed under the VA Home Loan
Guaranty Program, goes to foreclosure. VA may simply pay off
the guaranty, or elect to purchase the property securing the
loan in default and resell it. The decision on the course of
action to take depends, generally, on VA calculations as to
which action would be less costly and, therefore, more
advantageous to the government. The Secretary's authority to
use ``no-bid'' procedures, by which VA determines which option
is more advantageous, expires on September 30, 2002.
Income verification authority.--VA administers a needs-
based pension program and provides priority access to health
care services on a means-tested basis. Section 5317 of title
38, United States Code, and section 6103 of the Internal
Revenue Code of 1986, authorizes VA to verify the eligibility
of recipients of, or applicants for, VA needs-based benefits
and VA means-tested medical care by gaining access to income
records of the Department of Health and Human Services/Social
Security Administration and the Internal Revenue Service. These
provisions were originally enacted as section 8051 of Public
Law 101-508, the Omnibus Budget Reconciliation Act of 1990
(OBRA '90), and were last extended by Public Law 105-33, to
September 30, 2002.
Limitation on VA pension for certain recipients of
Medicaid-covered nursing home care.--Section 5503(f) of title
38, United States Code, limits to $90 per month the maximum
amount of VA pension that may be paid to Medicaid-eligible
veterans and surviving spouses who have no dependents and who
are in nursing homes that participate in Medicaid. The payments
may not be used to offset the costs of care. This section
treats such individuals as if the care were being furnished at
VA expense. This provision was originally enacted as section
8003 of OBRA '90, and was last extended by Public Law 105-33 to
September, 30, 2000. VA pension is a needs-based program that
provides a minimum level of income to wartime veterans who are
permanently and totally disabled due to non-service-connected
causes. The minimum level of income is approximately equal to
the poverty level, with additional amounts payable for
dependents. Pension payments are offset dollar-for-dollar by
any household income and can also be adjusted for unusual
medical expenses. The basic annual rate for a single veteran
with no dependents is $8,989. This amount increases to $14,999
for single veterans who receive additional ``aid and
attendance'' benefits.
Codification of recurring provisions in annual Department of Veterans
Affairs appropriations acts
Each year the Congress appropriates funds to the Department
of Veterans Affairs as part of the Departments of Veterans
Affairs and Housing and Urban Development, Independent Agencies
Appropriations Act (VA-HUD appropriations bill). Although the
amount of the appropriation varies from year to year, the
purposes for which appropriations are made are generally fixed,
and change little if at all from year to year. Because the
style of appropriations language discourages normal punctuation
or sentence structure, some of the ``sentences'' making
appropriations exceed a page in length. In order to make
language appropriating funds to VA more comprehensible and
easier for the average person to read, the reported bill
includes provisions which codify in title 38, United States
Code, the authorities for which the Department may spend
appropriated funds. This language has been repeatedly enacted
in the VA-HUD appropriations bill for many years, and this
codification will eliminate the need to repeat this language in
future appropriations bills. It does not have any substantive
effect on the purposes for which funds have been appropriated
in the past, and is intended to consolidate in one section of
title 38, U.S.C., many of the non-title 38 provisions for which
VA may spend appropriated funds.
REINSTATEMENT OF CERTAIN PERIODIC REPORTS TO CONGRESS
The Federal Reports Elimination and Sunset Act of 1995
repealed a number of agency report requirements which Congress
had imposed during the 20th Century. The effect of that law,
which otherwise would have taken effect last year, was
temporarily suspended until May 15, 2002, by a provision in
last year's omnibus appropriations act, Public Law 106-113. The
committee has considered whether it still has a need for the VA
reports covered by the 1995 law. It has determined that several
of these reports should be continued, but will reexamine their
usefulness when the reports would again be scheduled to expire
under the committee bill. The committee bill reinstates the
requirement that the Secretary provide periodic reports
concerning:
1. Lequitable relief granted by the Secretary to an
individual beneficiary (expires December 31, 2004);
2. Lthe work and activities of the Department;
3. Lprograms and activities examined by the Advisory
Committees on a) Former Prisoners of War and b) Women Veterans
(expires after biennial reports submitted in 2003);
4. Lthe operation of the Montgomery GI Bill educational
assistance program (expires December 31, 2004); and
5. Lthe activities of the Secretary's special medical
advisory group (expires December 31, 2004).
In addition, the bill requires the Secretary to include
with any report that is required by law or by a joint
explanatory statement of a Congressional conference committee
an estimate of the cost of preparing the report.
Section-By-Section Analysis
Section 1 would provide that this Act may be cited as the
``Veterans and Dependents Millennium Education Act''.
Section 2(a) would amend section 3015(a), which is
applicable to veterans who complete a three-year period of
active duty and section 3015(b), which is applicable to
veterans who complete less than three years. This section would
amend section 3015(a)(1) of title 38, United States Code, by
increasing by $184 the basic monthly education benefit for
full-time students' rates to $720 effective October 1, 2002,
and section 3015(b)(1) by increasing by $149 the basic monthly
education benefit for full-time students' rates to $585
effective October 1, 2002. This section also amends section
3015(a)(1) by increasing by $64 the basic monthly education
benefit for full-time students' rates to $600 effective October
1, 2000, and section 3015(b)(1) by increasing by $51 the basic
monthly education benefit for full-time students to $487
effective October 1, 2000.
Section 2(b) would amend section 3015(g) of title 38,
United States Code, to provide that there shall be no cost-of-
living adjustment for fiscal years 2001 and 2003.
Section 3 would amend section 3018C(a)(2) to allow an
individual who was a participant in the Post-Vietnam Era
Educational Assistance Program (VEAP) at any time on or before
October 9, 1996 (including those who had zero dollars in their
VEAP account at that time or declined an opportunity to convert
to the Montgomery GI Bill) and has continuously served on
active duty from October 9, 1996, to make an irrevocable
election to convert to the MGIB. Proposed section
3018(b)(1)(A), would require the individual to make a $2,700
payment before discharge or release, in a manner determined by
the service secretary involved. The one-year period in which to
make such an election would begin on the date of enactment. To
the extent that the basic pay is not reduced by $2,700 prior to
discharge or release proposed section 3018C(b)(1)(B), would
require the Secretary concerned to collect such funds from the
individual or reduce the retired or retainer pay of the
individual. The Secretary concerned shall provide for an 18-
month period from such election for the individual to make the
appropriate payment.
Section 4(a) reflects changes in rates for individuals
eligible for the Survivors' and Dependents' Education
Assistance program effective October 1, 2002. This section
would amend section 3532(a)(1) by increasing by $235 the basic
monthly education benefit for full-time students to $720, by
$175 for three-quarter time students to $540, by $118 to $360
for half-time pursuit, all effective October 1, 2002. This
section would make corresponding changes to maximum payments
for less than half-time training and a full-time program of
education which consists of institutional courses and alternate
phases of training in a business or industrial establishment at
section 3532(a)(2)((b). Finally, this section also would amend
the allowance for the farm cooperative program in 3532(c)(2) by
increasing by $190 the amount for full-time training to $582,
by increasing by $142 the amount for three-quarter time
training to $436, and by increasing by $95 the amount for half-
time training to $291.
Section 4(a) also reflects changes in rates which would be
effective October 1, 2000. This section would amend section
3532(a)(1) by increasing by $115 the basic monthly allowance
for full-time students to $600 per month, by increasing by $85
the three-quarter time rate to $450, and by increasing by $58
the half-time rate to $300. This section would make
corresponding changes to maximum payments for less-than-half-
time training and a full-time program of education which
consists of institutional courses and alternate phases of
training in a business or industrial establishment. This
section would also amend the allowance for the farm cooperative
program in section 3532(c)(2) by increasing by $93 the amount
for full-time training to $485, by increasing by $70 the amount
for three-quarter time training to $364, and by increasing by
$46 the amount for half-time training to $242.
Section 4(b) amends section 3534(b) of title 38, United
States Code, with respect to correspondence courses by
increasing the charge to total entitlement by $235 to $720 for
each month of entitlement used, effective October 1, 2002, with
a monthly charge for each $600 in entitlement used effective
October 1, 2000.
Section 4(c) amends section 3542(a), title 38, United
States Code, with respect to special restorative training by
increasing the special training allowance by $235 to $720 per
month effective October 1, 2002, and by $115 to $600 per month
effective October 1, 2000. If the charges for tuition and fees
applicable to any such course are currently more than $152 per
calendar month, the basic monthly allowance may be increased by
the amount that such charges exceed $152 a month, upon election
by the parent or guardian of the eligible person to have such
person's period of entitlement reduced by one day for each
$16.16 that the special training allowance exceeds the basic
monthly allowance. Effective October 1, 2002, the $152 per
month ``maximum'' figure would increase by $73 to $225 per
month and effective October 1, 2000 such figure would increase
by $33 to $188 per month. Further, effective October 1, 2002,
the $16.16 per day entitlement reduction figure would increase
to $24, and effective October 1, 2000, to $20.
Section 4(d) amends section 3687(b)(2) effective October 1,
2002, with respect to apprenticeship or other on-job training
by increasing by $171 to $524 the monthly amount for such
training for the first six months, by increasing by $128 to
$392 the monthly amount for the second six months, by
increasing by $85 to $260 the monthly amount for the third six
months, and by increasing by $43 to $131 the monthly amount for
the fourth and any succeeding six-month periods of training.
Section 4(d) would also amend section 3687(b)(2) effective
October 1, 2000, by increasing by $84 to $437 the monthly
amount for training for the first six months, by increasing by
$63 to $327 the monthly amount for the second six months, by
increasing by $41 to $216 the monthly amount for the third six
months, and by increasing by $21 to $109 the monthly amount for
the fourth and any succeeding six-month periods.
Section 4(e) would add a new section 3564 to chapter 35 to
authorize an annual cost-of-living adjustment based on the
Consumer Price Index. A conforming change would also be made to
section 3687 to authorize adjustments in the amounts payable to
persons in apprenticeship or on-job training programs.
Section 5 would amend section 5113 of title 38, United
States Code, to permit the award of Survivors' and Dependents'
Educational Assistance payments to be retroactive to the date
of the entitling event, that is service-connected death or
award of 100 percent disability rating.
Section 6 would amend section 3680(a) to allow monthly
educational assistance benefits for chapters 30, 31, 32, 34,
and 35 to be paid for intervals between semesters, terms or
quarters of up to eight weeks.
Section 7(a) would amend section 3452(b) to include within
the definition of ``program of education'' for which the
Montgomery GI Bill may be used licensing or certification tests
required for vocations or professions as offered by a licensing
and credentialing organization or entity approved by the
Secretary pursuant to procedures established by the Secretary.
The amount of educational assistance payable under this section
for a licensing or certification test is the fee charged for
the test. In promulgating regulations to establish procedures
to approve licensing and credentialing organizations, the
Secretary shall consult with such organizations with
demonstrated expertise in licensing and credentialing that the
Secretary deems appropriate.
Section 8(a) would amend section 3720(h)(2) to extend the
Secretary's authority to issue and guarantee securities
representing an interest in home loans made by the Secretary to
December 31, 2008.
Section 8(b) would amend section 3729(a) to extend the
Secretary's authority to collect higher home loan fees to
December 31, 2008.
Section 8(c) would amend section 3732(c)(11) to extend
procedures applicable to liquidation sales on defaulted home
loans guaranteed by the Department of Veterans Affairs to
December 31, 2008.
Section 8(d) would amend section 5317(g) to extend the
Secretary's authority to verify income information with
information maintained by the Secretary of Treasury or
Secretary of Health and Human Services to December 31, 2008.
Section 8(e) would amend section 5503(f)(7) to extend the
limitation on VA pension benefits to veterans or other
individuals without dependents who are receiving Medicaid-
covered nursing home care to December 31, 2008.
Section 9(a)(1) of the reported bill would amend section
313 of title 38, United States Code, entitled ``Availability of
appropriations'', by adding new subsections (c) through (h).
The proposed subsections would codify in one section in
title 38, United States Code, the various provisions of law
which are cited each year in the appropriations act as the
authority for making funds available to the Department of
Veterans Affairs. Proposed section 313(c) lists the purposes
for which payments may be made from the compensation and
pensions appropriation account. Proposed section 313(d) lists
the purposes for which appropriations made for medical care may
be spent. Proposed section 313(e) lists the purposes for which
appropriations made for medical administration and
miscellaneous operating expenses may be spent. Proposed section
313(f) lists the purposes for which appropriations made for
general operating expenses may be spent. Proposed section
313(g) lists the purposes for which appropriations made for
construction, major projects may be spent. Proposed section
313(h) lists the purposes for which appropriations made for
construction, minor projects may be spent.
Section 9(a)(2) of the bill would add a new section 116 to
title 38, United States Code, entitled ``Definition of cost of
direct and guaranteed loans''. This new section would codify
language which has been carried in the appropriations act for
the Department for the last several Congresses to incorporate
the definition of such loans contained in section 502 of the
Congressional Budget Act of 1974.
Section 10(a) of the reported bill would amend the Federal
Reports Elimination and Sunset Act of 1995 (31 United States
Code 1113 note) by providing that it does not apply to the
following periodic reports which a provision codified in title
38, United States Code, requires an official of the Department
of Veterans Affairs to make:
LReport on equitable relief granted by the
Secretary to an individual beneficiary (section 503(c) of title
38, United States Code) (would expire December 31, 2004);
LReport on the work and activities of the
Department (section 529 of title 38, United States Code);
LReport on programs and activities examined by
the Advisory Committees on a) Former Prisoners of War and b)
Women Veterans (section 541(c) and section 542(c) of title 38,
United States Code) (would expire after biennial reports
submitted in 2003);
LReport on the operation of the Montgomery GI
Bill educational assistance program (section 3036 of title 38,
United States Code) (would expire December 31, 2004); and
LReport on the activities of the Secretary's
special medical advisory group (section 7312(d) of title 38,
United States Code) (would expire December 31, 2004).
Section 10(b) repeals two obsolete reporting requirements
pertaining to the furnishing of health care to members of the
Armed Forces during a war or national emergency (section
8111A(f) of title 38, United States Code), and assistance in
the establishment of new medical schools (section 8201(h) of
title 38, U.S.C.).
Section 10(c) establishes new expiration dates as set forth
above for five of the six reports which section 10(a) requires
the Department to provide to Congress.
Section 10(d) would add a new section 117 to chapter 1 of
title 38, United States Code, entitled ``Reports to Congress:
cost information''. This section would require the Secretary to
include with every report prepared in accordance with a law or
Congressional directive a statement of the cost of preparing
the report and a brief explanation of the methodology used in
preparing the cost estimate.
Oversight Findings
No oversight findings have been submitted to the committee
by the Committee on Government Reform.
Roll Call Votes
During Committee consideration of H.R. 4268, there was a
recorded vote on an amendment offered by Mr. Filner to increase
the monthly benefit to $975. The amendment was rejected on a
roll call vote of 6-15. The vote of Committee Members is as
follows:
Date: Thursday, May 11, 2000
Call to Order: 11:25 a.m.
Adjourn: 12:10 p.m.
Subject: Filner Amendment to H.R. 4268, Veterans and De-
pendents Millennium Education Act
----------------------------------------------------------------------------------------------------------------
NAME YEA NAY NOT VOTING
----------------------------------------------------------------------------------------------------------------
Bob Stump, AZ, Chairman.............. ..................... x......................
Chris Smith, NJ, Vice Chairman....... ..................... x......................
Michael Bilirakis, FL................ ..................... x......................
Floyd Spence, SC..................... ..................... x......................
Terry Everett, AL.................... ..................... x......................
Steve Buyer, IN...................... ..................... ..................... x
Jack Quinn, NY....................... ..................... x......................
Cliff Stearns, FL.................... ..................... ..................... x
Jerry Moran, KS...................... ..................... ..................... x
J.D. Hayworth, AZ.................... ..................... x......................
Helen Chenoweth, ID.................. ..................... ..................... x
Ray LaHood, IL....................... ..................... x......................
Jim Hansen, UT....................... ..................... x......................
Howard (Buck) McKeon, CA............. ..................... x......................
Jim Gibbons, NV...................... ..................... ..................... x
Mike Simpson, ID..................... ..................... ..................... x
Richard Baker, LA.................... ..................... ..................... x
Lane Evans, IL, Ranking.............. ..................... x......................
Bob Filner, CA....................... x...................... .....................
Luis Gutierrez, IL................... ..................... ..................... x
Corrine Brown, FL.................... x...................... .....................
Mike Doyle, PA....................... ..................... x......................
Collin Peterson, MN.................. ..................... ..................... x
Julia Carson, IN..................... x...................... .....................
Silvestre Reyes, TX.................. ..................... x......................
Vic Snyder, AR....................... ..................... x......................
Ciro Rodriguez, TX................... ..................... ..................... x
Ronnie Shows, MS..................... x...................... .....................
Shelley Berkley, NV.................. x...................... .....................
Baron P. Hill, IN.................... ..................... x......................
Tom Udall, NM........................ x...................... .....................
TOTAL...................... 6...................... 15..................... 10
----------------------------------------------------------------------------------------------------------------
There was also a roll call vote on final passage of H.R.
4268 of 21-0. The vote of Committee Members is as follows:
Date: Thursday, May 11, 2000
Call to Order: 11:25 a.m.
Adjourn: 12:10 p.m.
Subject: Final Passage H.R. 4268, Veterans and Dependents
Millennium Education Act
----------------------------------------------------------------------------------------------------------------
NAME YEA NAY NOT VOTING
----------------------------------------------------------------------------------------------------------------
Bob Stump, AZ, Chairman.............. x...................... .....................
Chris Smith, NJ, Vice Chairman....... x...................... .....................
Michael Bilirakis, FL................ x...................... .....................
Floyd Spence, SC..................... x...................... .....................
Terry Everett, AL.................... x...................... .....................
Steve Buyer, IN...................... ..................... ..................... x
Jack Quinn, NY....................... x...................... .....................
Cliff Stearns, FL.................... ..................... ..................... x
Jerry Moran, KS...................... ..................... ..................... x
J.D. Hayworth, AZ.................... x...................... .....................
Helen Chenoweth, ID.................. ..................... ..................... x
Ray LaHood, IL....................... x...................... .....................
Jim Hansen, UT....................... x...................... .....................
Howard (Buck) McKeon, CA............. x...................... .....................
Jim Gibbons, NV...................... ..................... ..................... x
Mike Simpson, ID..................... ..................... ..................... x
Richard Baker, LA.................... ..................... ..................... x
Lane Evans, IL, Ranking.............. x...................... .....................
Bob Filner, CA....................... x...................... .....................
Luis Gutierrez, IL................... ..................... ..................... x
Corrine Brown, FL.................... x...................... .....................
Mike Doyle, PA....................... x...................... .....................
Collin Peterson, MN.................. ..................... ..................... x
Julia Carson, IN..................... x...................... .....................
Silvestre Reyes, TX.................. x...................... .....................
Vic Snyder, AR....................... x...................... .....................
Ciro Rodriguez, TX................... ..................... ..................... x
Ronnie Shows, MS..................... x...................... .....................
Shelley Berkley, NV.................. x...................... .....................
Baron P. Hill, IN.................... x...................... .....................
Tom Udall, NM........................ x...................... .....................
TOTAL...................... 21..................... 0...................... 10
----------------------------------------------------------------------------------------------------------------
Congressional Budget Office Cost Estimate
The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 17, 2000.
Hon. Bob Stump,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4268, the Veterans
and Dependents Millennium Education Act. If you wish further
details on this estimate, we will be pleased to provide them.
The CBO staff contact is Sarah Jennings, who can be reached at
226-2840.
Sincerely,
Dan L. Crippen,
Director
Enclosure.
congressional budget office cost estimate
H.R. 4268, Veterans and Dependents Millennium Education Act, As ordered
reported by the House Committee on Veterans' Affairs on May 11, 2000
SUMMARY. H.R. 4268 contains provisions that would raise
direct spending for veterans' readjustment benefits,
specifically Montgomery GI Bill (MGIB) benefits and educational
assistance for surviving spouses and dependents of certain
veterans. The bill would also extend through 2008 certain
provisions of law related to veterans' housing and pensions
that are scheduled to expire in 2002. CBO estimates that
enacting the bill would save about $88 million over the 2001-
2005 period but cost about $660 million over the 2001-2010
period. (Costs would amount to about $450 million a year after
2008.)
H.R. 4268 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
A provision of the bill that would extend the limitation on
pensions for certain veterans receiving nursing home care under
Medicaid would increase costs to states by $1.3 billion over
the next six years. Because states possess flexibility to alter
programmatic responsibilities to continue to provide required
services under the Medicaid program, these additional costs are
not considered mandates under UMRA.
ESTIMATED COST TO THE FEDERAL GOVERNMENT. The estimated
budgetary impact of H R. 4268 is shown in the following table.
The costs of this legislation fall within budget functions 700
(veterans benefits and services) and 550 (health).
[By Fiscal Year, Outlays in Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Veterans' Readjustment Benefits
Spending Under Current Law........................ 1,459 1,473 1,489 1,512 1,545 1,587
Proposed Changes:
Basic Benefit................................... 0 99 109 227 245 266
Survivors' and Dependents' Education............ 0 34 36 72 79 87
Tests for Licensing............................. 0 5 5 5 5 5
Semester Break Benefit.......................... 0 3 4 4 4 4
Retroactive Dependents' Assistance.............. 0 1 1 1 1 1
VEAP Conversion................................. 0 -\1 -\3 0 2 3
-----------------------------------------------------------------------------------------------------
Subtotal-Proposed Changes..................... 0 141 152 309 336 366
Spending Under H.R. 4268.......................... 1,459 1,614 1,641 1,821 1,881 1,953
Veterans' Housing
Spending Under Current Law........................ 506 187 154 395 393 390
Proposed Changes.................................. 0 0 0 -\266 -\272 -\278
Spending Under H.R. 4268.......................... 506 187 154 129 121 112
Veterans' Pensions
Spending Under Current Law........................ 3,090 3,099 3,060 3,512 3,521 3,851
Proposed Changes:
Nursing Home.................................... 0 0 0 -\459 -\463 -\513
Income Verification............................. 0 0 0 -\3 -\3 -\2
-----------------------------------------------------------------------------------------------------
Subtotal-Proposed Changes..................... 0 0 0 -\462 -\466 -\515
Spending Under H.R. 4268.......................... 3,090 3,099 3,060 3,050 3,055 3,336
Medicaid
Spending Under Current Law........................ 115,145 124,264 134,118 145,081 158,181 172,418
Proposed Changes.................................. 0 0 0 285 288 294
Spending Under H.R. 4268.......................... 115,145 124,164 134,118 145,366 158,469 172,712
Summary of Changes in Direct Spending
Estimated Outlays................................. 0 141 152 -\134 -\114 -\133
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: VEAP refers to the Post-Vietnam Era Veterans' Education Assistance Program.
Veterans' Readjustment Benefits
The bill would change several provisions related to MGIB
and survivors' and dependents' education benefits.
Basic Benefit. Under current law, participants in MGIB who
serve at least three years on active duty are entitled to
receive up to $553 a month in fiscal year 2001. Those who serve
two years are entitled to a maximum monthly benefit of $450.
Section 2 would mandate successive increases in these rates of
educational assistance. Participating veterans who served at
least three years on active duty would receive as much as $600
a month beginning in fiscal year 2001 and up to $720 a month
beginning in fiscal year 2003. Similar veterans with at least
two years of active duty would be eligible for a maximum
benefit of $487 a month in fiscal year 2001 and $569 a month in
fiscal year 2003. The annual cost-of-living allowances
scheduled for 2001 and 2003 would not occur. Based on current
rates of participation in this program, CBO estimates that this
section would increase direct spending by about $100 million in
2001, about $950 million over the 2001-2005 period, and about
$2.5 billion over the 2001-2010 period.
Survivors' and Dependents' Education. Section 4 would
increase educational assistance to survivors and dependents to
$600 a month in 2001 and $720 a month in 2003. That would
represent an increase over current rates of 24 percent and 48
percent, respectively. The benefit would grow more in
subsequent years because section 4 would authorize a cost-of-
living increase for fiscal years after 2003. Based on current
rates of participation in this program, CBO estimates this
provision would increase direct spending by $34 million in
fiscal year 2001, about $310 million during the 2001-2005
period, and about $830 million in the 2001-2010 period.
Tests for Licensing or Certification. Section 7 would
extend MGIB benefits to cover the cost of tests required for
occupational licensing or certification. Based on a study
prepared for the Congressional Commission on Servicemembers and
Veterans Transition Assistance, approximately 38 percent of
servicemembers separating each year have training in areas that
are subject to testing and licensure. CBO expects that less
than half of them would remain in that occupation, be tested,
and apply for reimbursement from the Department of Veterans
Affairs (VA). Based on an average cost of $175, CBO estimates
this provision would increase direct spending by about $5
million a year.
Semester Break Benefit. Under current law, monthly
veterans' education benefits are paid between terms only if the
break does not exceed one calendar month. Section 6 would allow
benefits to be paid during a break of up to eight weeks. Based
on information from the VA, this would affect the benefits of
approximately 3,000 students annually and would cost about $4
million a year.
Retroactive Dependents' Assistance. Current law requires
that a veteran be found to have a service-connected disability
rated at 100 percent or a spouse be found eligible for
Dependency and Indemnity Compensation (DIC), before a dependent
can submit a claim for education benefits. Section 5 would
allow retroactive payment of dependents' education benefits for
education undertaken after an ultimately successful claim for
disability or DIC benefits has been made, but before it has
been approved. Based on information from the Veterans Board of
Appeals, CBO expects about 75 dependents would seek
reimbursement under this provision each year. We estimate
section 5 would increase direct spending by about $1 million
annually.
VEAP Conversion. Section 3 would give certain individuals
on active duty a second opportunity to enroll in MGIB. That
opportunity would be extended over a one-year period to
individuals who were enrolled in the Post-Vietnam Era Veterans'
Education Assistance Program (VEAP) on October 9, 1996. In a
similar open season in fiscal year 1997, about 55 percent of
eligible members chose to pay $1,200 each to convert from VEAP
to MGIB.
CBO estimates 15 percent of those currently eligible, about
2,600 servicemembers, would pay contributions of $2,700 to
convert to MGIB during this open season Because the
contributions would have to be made before benefits would be
paid out, this section would not incur significant costs until
fiscal year 2004. CBO estimates that section 4 would increase
direct spending by $2 million over the 2001-2005 period and $12
million over the 2001-2010 period.
Extension of Certain Provisions
The bill would extend through 2008 the sunset dates on
several provisions that will otherwise expire in 2002.
Veterans' Housing. Section 8 would extend through 2008
three provisions in current law that affect housing programs
for veterans. The first two provisions reduce the VA loan
subsidy by charging veterans a fee at the time the loan is
made. Under subsection (b)(1), VA would charge certain veterans
a fee of 0.75 percent of the total loan amount. CBO estimates
this provision would affect roughly 219,000 new loans a year
and would raise collections by an average of $205 million a
year beginning in 2003.
Under current law, veterans can reuse their home loan
guarantee benefit if their previous debt has been paid in full.
Subsection (b)2) would require VA to collect a fee of 3 percent
of the total loan amount from veterans who reuse their benefit.
CBO estimates this provision would affect roughly 28,500 new
loans a year and would raise collections by an average of $60
million a year.
Section 8 would also extend a provision of law that
requires VA to consider losses it might incur when selling a
property acquired through foreclosure. Under current law, VA
follows a formula defined in statute to decide whether to
acquire the property or pay off the loan guarantee instead. The
formula requires appraisals that may be valid at the time they
are made, but do not account for changes in market conditions
that might occur while VA prepares to dispose of the property.
Subsection 8(c) would require VA to take account of losses from
changes in housing prices that the appraisal does not capture.
Losses of this type might be prevalent when housing prices are
particularly volatile or if appraisals are biased for other
reasons. Based on information from VA, CBO estimates this
provision would save an average of $10 million a year.
Veterans' Pensions. Veterans' pensions would be affected by
two provisions. One of these provisions would reduce direct
spending for veterans' pensions and increase spending for
Medicaid, resulting in a net spending reduction of $1.1 billion
over the 2003-2008 period. After 2008, spending under that
program would return to the levels under current law.
Veterans in Medicaid Nursing Homes.--Subsection 8(e) would
ex-
tend from September 30, 2002, to September 30, 2008, the
expira-
tion date on a provision of law that sets a $90 per month limit
on
pensions for any veteran without a spouse or child, or for any
sur-
vivor of a veteran, who is receiving Medicaid coverage in a
Medic-
aid-approved nursing home. It also allows the beneficiary to
retain
the pension instead of having to use it to defray nursing home
costs.
Based on VA's experience under current law, CBO estimates
gross savings for VA of $459 million in 2003. Higher Medicaid
payments to nursing homes would offset some of the savings
credited to VA. Those costs would total $285 million in 2003,
resulting a net savings of $174 million in 2003.
Income Verification.--Current law authorizes VA to acquire
information on income reported to the Internal Revenue Service
(IRS) to verify income reported by recipients of VA pension
benefits. This authorization expires on September 30, 2002.
Section 8(d) would extend the expiration date to September 30,
2008. However, the provision of law that allows the IRS to
provide the information to VA will expire on September 30,
2003. Because the bill would not extend both provisions in
current law, savings would be limited to the effects of a one-
year renewal, which occur in the year that income is reported,
in his case 2003, and in the following years to reflect the
continuing effects of the lower pensions. This estimate is
based on VA's recent experience, which has shown that about $3
million in new savings is achieved annually through this income
match.
PAY-AS-YOU-GO CONSIDERATIONS. The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. The net
changes in outlays that are subject to pay-as-you-go procedures
are shown in the following table. For the purposes of enforcing
pay-as-you-go procedures, only the effects in the current year,
the budget year, and the succeeding four years are counted.
[By Fiscal Year, in Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays........................................... 0 141 152 -\134 -\114 -\133 -\75 -\23 -\43 438 452
Changes in receipts.......................................... Not Applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT. H.R 4268
contains no intergovernmental or private-sector mandates as
defined in UMRA, however a provision of the bill would increase
Medicaid costs for state governments by $1.3 billion over the
next six years. The provision would extend unti1 2008 the
limitation, currently set to expire on September 30, 2002, on
the monthly pension that certain veterans in nursing homes
covered by Medicaid can receive and retain. The effect of the
extension would be to require the Medicaid program to continue
covering 100 percent of the nursing home expenses of those
veterans after 2002. Because states possess flexibility to
alter programmatic responsibilities to continue to provide
required services under the Medicaid program, these additional
costs are not considered mandates under UMRA.
ESTIMATE PREPARED BY:
Federal Costs:
Readjustment Benefits: Sarah Jennings (226-2840).
Housing: Sunita D'Monte (226-2840).
Veterans' Pension: Evan Christman (226-2840).
Medicaid: Jeanne De Sa (226-9010).
Impact on State, Local, and Tribal Governments: Susan
Sieg Thompkins (225-3220).
Impact on the Private Sector: Richard L. Fernandez
(226-2922).
ESTIMATE APPROVED BY:
Peter H. Fontaine, Deputy Assistant Director for Budget
Analysis.
Inflationary Impact Statement
The enactment of the reported bill would have no
inflationary impact.
Applicability to Legislative Branch
The reported bill would not be applicable to the
legislative branch under the Congressional Accountability Act,
Public Law 104-1, because the bill would only affect certain
Department of Veterans Affairs programs and benefits
recipients.
Statement of Federal Mandates
The reported bill would not establish a federal mandate
under the Unfunded Reform Act, Public Law 104-4.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 1--GENERAL
Sec.
101. Definitions.
* * * * * * *
116. Definition of cost of direct and guaranteed loans.
117. Reports to Congress: cost information.
* * * * * * *
Sec. 116. Definition of cost of direct and guaranteed loans
For the purpose of any provision of law appropriating funds
to the Department for the cost of direct or guaranteed loans,
the cost of any such loan, including the cost of modifying any
such loan, shall be as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a).
Sec. 117. Reports to Congress: cost information
Whenever the Secretary submits to Congress, or any committee
of Congress, a report that is required by law or by a joint
explanatory statement of a committee of conference of the
Congress, the Secretary shall include with the report--
(1) a statement of the cost of preparing the report;
and
(2) a brief explanation of the methodology used in
preparing that cost statement.
* * * * * * *
CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS
* * * * * * *
Sec. 313. Availability of appropriations
(a) * * *
* * * * * * *
(c) Compensation and Pension.--Funds appropriated for
Compensation and Pensions are available for the following
purposes:
(1) The payment of compensation benefits to or on
behalf of veterans as authorized by section 107 and
chapters 11, 13, 51, 53, 55, and 61 of this title.
(2) Pension benefits to or on behalf of veterans as
authorized by chapters 15, 51, 53, 55, and 61 of this
title and section 306 of the Veterans' and Survivors'
Pension Improvement Act of 1978.
(3) The payment of benefits as authorized under
chapter 18 of this title.
(4) Burial benefits, emergency and other officers'
retirement pay, adjusted-service credits and
certificates, payments of premiums due on commercial
life insurance policies guaranteed under the provisions
of article IV of the Soldiers' and Sailors' Civil
Relief Act of 1940 (50 U.S.C. App. 540 et seq.), and
other benefits as authorized by sections 107, 1312,
1977, and 2106 and chapters 23, 51, 53, 55, and 61 of
this title and the World War Adjusted Compensation Act
(43 Stat. 122, 123), the Act of May 24, 1928 (Public
Law No. 506 of the 70th Congress; 45 Stat. 735), and
Public Law 87-875 (76 Stat. 1198).
(d) Medical Care.--Funds appropriated for Medical Care are
available for the following purposes:
(1) The maintenance and operation of hospitals,
nursing homes, and domiciliary facilities.
(2) Furnishing, as authorized by law, inpatient and
outpatient care and treatment to beneficiaries of the
Department, including care and treatment in facilities
not under the jurisdiction of the Department.
(3) Furnishing recreational facilities, supplies, and
equipment.
(4) Funeral and burial expenses and other expenses
incidental to funeral and burial expenses for
beneficiaries receiving care from the Department.
(5) Administrative expenses in support of planning,
design, project management, real property acquisition
and disposition, construction, and renovation of any
facility under the jurisdiction or for the use of the
Department.
(6) Oversight, engineering, and architectural
activities not charged to project cost.
(7) Repairing, altering, improving, or providing
facilities in the medical facilities and homes under
the jurisdiction of the Department, not otherwise
provided for, either by contact or by the hire of
temporary employees and purchase of materials.
(8) Uniforms or uniform allowances, as authorized by
sections 5901 and 5902 of title 5.
(9) Aid to State homes, as authorized by section 1741
of this title.
(10) Administrative and legal expenses of the
Department for collecting and recovering amounts owed
the Department as authorized under chapter 17 of this
title and Public Law 87-693, popularly known as the
Federal Medical Care Recovery Act (42 U.S.C. 2651 et
seq.).
(e) Medical Administration and Miscellaneous Operating
Expenses.--Funds appropriated for Medical Administration and
Miscellaneous Operating Expenses are available for the
following purposes:
(1) The administration of medical, hospital, nursing
home, domiciliary, construction, supply, and research
activities authorized by law.
(2) Administrative expenses in support of planning,
design, project management, architectural work,
engineering, real property acquisition and disposition,
construction, and renovation of any facility under the
jurisdiction or for the use of the Department,
including site acquisition.
(3) Engineering and architectural activities not
charged to project costs.
(4) Research and development in building construction
technology.
(f) General Operating Expenses.--Funds appropriated for
General Operating Expenses are available for the following
purposes:
(1) Uniforms or allowances therefor.
(2) Hire of passenger motor vehicles.
(3) Reimbursement of the General Services
Administration for security guard services.
(4) Reimbursement of the Department of Defense for
the cost of overseas employee mail.
(5) Administration of the Service Members
Occupational Conversion and Training Act of 1992 (10
U.S.C. 1143 note).
(g) Construction.--Funds appropriated for Construction, Major
Projects, and for Construction, Minor Projects, are available,
with respect to a project, for the following purposes:
(1) Planning.
(2) Architectural and engineering services.
(3) Maintenance or guarantee period services costs
associated with equipment guarantees provided under the
project.
(4) Services of claims analysts.
(5) Offsite utility and storm drainage system
construction costs.
(6) Site acquisition.
(h) Construction, Minor Projects.--In addition to the
purposes specified in subsection (g), funds appropriated for
Construction, Minor Projects, are available for--
(1) repairs to any of the nonmedical facilities under
the jurisdiction or for the use of the Department which
are necessary because of loss or damage caused by a
natural disaster or catastrophe; and
(2) temporary measures necessary to prevent or to
minimize further loss by such causes.
* * * * * * *
CHAPTER 5--AUTHORITY AND DUTIES OF THE SECRETARY
* * * * * * *
SUBCHAPTER I--GENERAL AUTHORITIES
* * * * * * *
Sec. 503. Administrative error; equitable relief
(a) * * *
* * * * * * *
(c) Not later than April 1 of each year, the Secretary shall
submit to Congress a report containing a statement as to the
disposition of each case recommended to the Secretary for
equitable relief under this section during the preceding
calendar year. No report shall be required under this
subsection after December 31, 2004.
* * * * * * *
SUBCHAPTER III--ADVISORY COMMITTEES
* * * * * * *
Sec. 541. Advisory Committee on Former Prisoners of War
(a) * * *
* * * * * * *
(c)(1) Not later than July 1 of each odd-numbered year
through 2003, the Committee shall submit to the Secretary a
report on the programs and activities of the Department that
pertain to veterans who are former prisoners of war. Each such
report shall include--
(A) * * *
* * * * * * *
Sec. 542. Advisory Committee on Women Veterans
(a) * * *
* * * * * * *
(c)(1) Not later than July 1 of each even-numbered year
through 2003, the Committee shall submit to the Secretary a
report on the programs and activities of the Department that
pertain to women veterans. Each such report shall include--
(A) * * *
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM
* * * * * * *
SUBCHAPTER II--BASIC EDUCATIONAL ASSISTANCE
* * * * * * *
(These amendments shall take effect on October 1, 2002)
Sec. 3015. Amount of basic educational assistance
(a) The amount of payment of educational assistance under
this chapter is subject to section 3032 of this title. Except
as otherwise provided in this section, a basic educational
assistance allowance under this subchapter shall be paid--
(1) at the monthly rate of [$528] $720 (as increased
from time to time under subsection (g)) for an approved
program of education pursued on a full-time basis; or
(2) at an appropriately reduced rate, as determined
under regulations which the Secretary shall prescribe,
for an approved program of education pursued on less
than a full-time basis.
(b) In the case of an individual entitled to an educational
assistance allowance under section 3011 or 3018 of this title
and whose initial obligated period of active duty is two years,
a basic educational assistance allowance under this chapter
shall (except as provided in the succeeding subsections of this
section) be paid--
(1) at the monthly rate of [$429] $585 (as increased
from time to time under subsection (g)) for an approved
program of education pursued on a full-time basis; or
* * * * * * *
(For fiscal years 2001 and 2002 this section shall be applied by
substituting the following figures)
Sec. 3015. Amount of basic educational assistance
(a) The amount of payment of educational assistance under
this chapter is subject to section 3032 of this title. Except
as otherwise provided in this section, a basic educational
assistance allowance under this subchapter shall be paid--
(1) at the monthly rate of [$528] $600 (as increased
from time to time under subsection (g)) for an approved
program of education pursued on a full-time basis; or
(2) at an appropriately reduced rate, as determined
under regulations which the Secretary shall prescribe,
for an approved program of education pursued on less
than a full-time basis.
(b) In the case of an individual entitled to an educational
assistance allowance under section 3011 or 3018 of this title
and whose initial obligated period of active duty is two years,
a basic educational assistance allowance under this chapter
shall (except as provided in the succeeding subsections of this
section) be paid--
(1) at the monthly rate of [$429] $487 (as increased
from time to time under subsection (g)) for an approved
program of education pursued on a full-time basis; or
* * * * * * *
Sec. 3018C. Opportunity for certain VEAP participants to enroll
(a) Notwithstanding any other provision of law, an individual
who--
(1) * * *
[(2) is serving on active duty (excluding the periods
referred to in section 3202(1)(C) of this title) on
such date;]
(2) has continuously served on active duty since
October 9, 1996, (excluding the periods referred to in
section 3202(1)(C) of this title);
* * * * * * *
(5) [during the one-year period beginning on October
9, 1996,] during the one-year period beginning on the
date of the enactment of the Veterans and Dependents
Millennium Education Act, makes an irrevocable election
to receive benefits under this section in lieu of
benefits under chapter 32 of this title, pursuant to
procedures which the Secretary of each military
department shall provide in accordance with regulations
prescribed by the Secretary of Defense for the purpose
of carrying out this section or which the Secretary of
Transportation shall provide for such purpose with
respect to the Coast Guard when it is not operating as
a service in the Navy;
may elect to become entitled to basic educational assistance
under this chapter.
[(b) With respect to an individual who makes an election
under subsection (a) to become entitled to basic education
assistance under this chapter--
[(1) the basic pay of the individual shall be reduced
(in a manner determined by the Secretary of Defense)
until the total amount by which such basic pay is
reduced is $1,200; or
[(2) to the extent that basic pay is not so reduced
before the individual's discharge or release from
active duty as specified in subsection (a)(4), the
Secretary shall collect from the individual an amount
equal to the difference between $1,200 and the total
amount of reductions under paragraph (1), which shall
be paid into the Treasury of the United States as
miscellaneous receipts.]
(b)(1) Subject to paragraph (2), with respect to an
individual who makes an election under subsection (a) to become
entitled to basic education assistance under this chapter--
(A) the basic pay of the individual shall be reduced
(in a manner determined by the Secretary concerned)
until the total amount by which such basic pay is
reduced is $2,700; or
(B) to the extent that basic pay is not so reduced
before the individual's discharge or release from
active duty as specified in subsection (a)(4), the
Secretary concerned shall collect from the individual,
or reduce the retired or retainer pay of the individual
by, an amount equal to the difference between $2,700
and the total amount of reductions under subparagraph
(A), which shall be paid into the Treasury of the
United States as miscellaneous receipts.
(2)(A) The Secretary concerned shall provide for an 18-month
period, beginning on the date the individual makes an election
under subsection (a), for the individual to pay that Secretary
the amount due under paragraph (1).
(B) Nothing in subparagraph (A) shall be construed as
modifying the period of eligibility for and entitlement to
basic education assistance under this chapter applicable under
section 3031 of this title.
* * * * * * *
SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT;
GENERAL AND ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3032. Limitations on educational assistance for certain
individuals
(a) * * *
* * * * * * *
(g) The amount of educational assistance payable under this
chapter for a licensing or certification test described in
section 3452(b) of this title is the fee charged for the test.
* * * * * * *
Sec. 3036. Reporting requirement
(a) * * *
* * * * * * *
[(d)(1) The first report by the Secretary of Defense under
this section shall be submitted not later than January 1, 1986.
[(2) The first report by the Secretary under this section
shall be submitted not later than January 1, 1988.]
(d) No report shall be required under this section after
January 1, 2005.
* * * * * * *
CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER I--PURPOSE; DEFINITIONS
* * * * * * *
Sec. 3452. Definitions
For the purposes of this chapter and chapter 36 of this
title--
(a) * * *
* * * * * * *
(b) The term ``program of education'' means any curriculum or
any combination of unit courses or subjects pursued at an
educational institution which is generally accepted as
necessary to fulfill requirements for the attainment of a
predetermined and identified educational, professional, or
vocational objective. Such term also means any curriculum of
unit courses or subjects pursued at an educational institution
which fulfill requirements for the attainment of more than one
predetermined and identified educational, professional, or
vocational objective if all the objectives pursued are
generally recognized as being reasonably related to a single
career field. Such term also means any unit course or subject,
or combination of courses or subjects, pursued by an eligible
veteran at an educational institution, required by the
Administrator of the Small Business Administration as a
condition to obtaining financial assistance under the
provisions of section 7(i)(1) of the Small Business Act (15
U.S.C. 636(i)(1)). Such term also includes licensing or
certification tests required for vocations or professions, such
tests offered by a licensing and credentialing organization or
entity approved by the Secretary pursuant to procedures
established by the Secretary.
* * * * * * *
CHAPTER 35--SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE
subchapter i--definitions
Sec.
3500. Purpose.
* * * * * * *
subchapter vi--miscellaneous provisions
3561. Authority and duties of Secretary.
* * * * * * *
3564. Annual adjustment of amounts of educational assistance.
* * * * * * *
SUBCHAPTER IV--PAYMENTS TO ELIGIBLE PERSONS
* * * * * * *
(These amendments shall take effect on October 1, 2002)
Sec. 3532. Computation of educational assistance allowance
(a)(1) The educational assistance allowance on behalf of an
eligible person who is pursuing a program of education
consisting of institutional courses shall be paid at the
monthly rate of [$485] $720 for full-time, [$365] $540 for
three-quarter-time, or [$242] $360 for half-time pursuit.
(2) The educational assistance allowance on behalf of an
eligible person pursuing a program of education on less than a
half-time basis shall be paid at the rate of (A) the
established charges for tuition and fees that the educational
institution involved requires similarly circumstanced
nonveterans enrolled in the same program to pay, or (B) [$485]
$720 per month for a full-time course, whichever is the lesser.
(b) The educational assistance allowance to be paid on behalf
of an eligible person who is pursuing a full-time program of
education which consists of institutional courses and alternate
phases of training in a business or industrial establishment
with the training in the business or industrial establishment
being strictly supplemental to the institutional portion, shall
be computed at the rate of [$485] $720 per month.
(c)(1) An eligible person who is enrolled in an educational
institution for a ``farm cooperative'' program consisting of
institutional agricultural courses prescheduled to fall within
forty-four weeks of any period of twelve consecutive months and
who pursues such program on--
(A) a full-time basis (a minimum of ten clock hours
per week or four hundred and forty clock hours in such
year prescheduled to provide not less than eighty clock
hours in any three-month period),
(B) a three-quarter-time basis (a minimum of seven
clock hours per week), or
(C) a half-time basis (a minimum of five clock hours
per week),
shall be eligible to receive an educational assistance
allowance at the appropriate rate provided in paragraph (2) of
this subsection, if such eligible person is concurrently
engaged in agricultural employment which is relevant to such
institutional agricultural courses as determined under
standards prescribed by the Secretary. In computing the
foregoing clock hour requirements there shall be included the
time involved in field trips and individual and group
instruction sponsored and conducted by the educational
institution through a duly authorized instructor of such
institution in which the person is enrolled.
(2) The monthly educational assistance allowance to be paid
on behalf of an eligible person pursuing a farm cooperative
program under this chapter shall be [$392] $582 for full-time,
[$294] $436 for three-quarter-time, and [$196] $291 for half-
time pursuit.
* * * * * * *
(For fiscal years 2001 and 2002 this section shall be applied by
substituting the following figures)
Sec. 3532. Computation of educational assistance allowance
(a)(1) The educational assistance allowance on behalf of an
eligible person who is pursuing a program of education
consisting of institutional courses shall be paid at the
monthly rate of [$485] $600 for full-time, [$365] $450 for
three-quarter-time, or [$242] $300 for half-time pursuit.
(2) The educational assistance allowance on behalf of an
eligible person pursuing a program of education on less than a
half-time basis shall be paid at the rate of (A) the
established charges for tuition and fees that the educational
institution involved requires similarly circumstanced
nonveterans enrolled in the same program to pay, or (B) [$485]
$600 per month for a full-time course, whichever is the lesser.
(b) The educational assistance allowance to be paid on behalf
of an eligible person who is pursuing a full-time program of
education which consists of institutional courses and alternate
phases of training in a business or industrial establishment
with the training in the business or industrial establishment
being strictly supplemental to the institutional portion, shall
be computed at the rate of [$485] $600 per month.
(c)(1) * * *
* * * * * * *
(2) The monthly educational assistance allowance to be paid
on behalf of an eligible person pursuing a farm cooperative
program under this chapter shall be [$392] $485 for full-time,
[$294] $364 for three-quarter-time, and [$196] $242 for half-
time pursuit.
* * * * * * *
(These amendments shall take effect on October 1, 2002)
Sec. 3534. Apprenticeship or other on-job training; correspondence
courses
(a) * * *
(b) Any eligible spouse or surviving spouse shall be entitled
to pursue a program of education exclusively by correspondence
and be paid an educational assistance allowance as provided in
section 3686 (other than subsection (a)(2)) of this title and
the period of such spouse's entitlement shall be charged with
one month for each [$485] $720 which is paid to the spouse as
an educational assistance allowance for such course.
* * * * * * *
(For fiscal years 2001 and 2002 this section shall be applied by
substituting the following figures)
Sec. 3534. Apprenticeship or other on-job training; correspondence
courses
(a) * * *
(b) Any eligible spouse or surviving spouse shall be entitled
to pursue a program of education exclusively by correspondence
and be paid an educational assistance allowance as provided in
section 3686 (other than subsection (a)(2)) of this title and
the period of such spouse's entitlement shall be charged with
one month for each [$485] $600 which is paid to the spouse as
an educational assistance allowance for such course.
* * * * * * *
SUBCHAPTER V--SPECIAL RESTORATIVE TRAINING
* * * * * * *
(These amendments shall take effect on October 1, 2002)
Sec. 3542. Special training allowance
(a) While the eligible person is enrolled in and pursuing a
full-time course of special restorative training, the parent or
guardian shall be entitled to receive on behalf of such person
a special training allowance computed at the basic rate of
[$485] $720 per month. If the charges for tuition and fees
applicable to any such course are more than [$152] $225 per
calendar month, the basic monthly allowance may be increased by
the amount that such charges exceed [$152] $225 a month, upon
election by the parent or guardian of the eligible person to
have such person's period of entitlement reduced by one day for
each [$16.16] $24 that the special training allowance paid
exceeds the basic monthly allowance.
* * * * * * *
(For fiscal years 2001 and 2002 this section shall be applied by
substituting the following figures)
Sec. 3542. Special training allowance
(a) While the eligible person is enrolled in and pursuing a
full-time course of special restorative training, the parent or
guardian shall be entitled to receive on behalf of such person
a special training allowance computed at the basic rate of
[$485] $600 per month. If the charges for tuition and fees
applicable to any such course are more than [$152] $188 per
calendar month, the basic monthly allowance may be increased by
the amount that such charges exceed [$152] $188 a month, upon
election by the parent or guardian of the eligible person to
have such person's period of entitlement reduced by one day for
each [$16.16] $20 that the special training allowance paid
exceeds the basic monthly allowance.
* * * * * * *
SUBCHAPTER VI--MISCELLANEOUS PROVISIONS
* * * * * * *
Sec. 3564. Annual adjustment of amounts of educational assistance
With respect to any fiscal year, the Secretary shall provide
a percentage increase (rounded to the nearest dollar) in the
rates payable under sections 3532, 3534(b), and 3542(a) of this
title equal to the percentage by which--
(1) the Consumer Price Index (all items, United
States city
average) for the 12-month period ending on the June 30
preced-
ing the beginning of the fiscal year for which the
increase is made, exceeds
(2) such Consumer Price Index for the 12-month period
preceding the 12-month period described in paragraph
(1).
* * * * * * *
CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
* * * * * * *
SUBCHAPTER I--STATE APPROVING AGENCIES
* * * * * * *
Sec. 3680. Payment of educational assistance or subsistence allowances
Period for Which Payment May Be Made
(a) * * *
* * * * * * *
Notwithstanding the foregoing, the Secretary may, subject to
such regulations as the Secretary shall prescribe, continue to
pay allowances to eligible veterans and eligible persons
enrolled in courses set forth in clause (1) of this
subsection--
(A) * * *
* * * * * * *
[(C) during periods between a semester, term, or
quarter where the educational institution certifies the
enrollment of the eligible veteran or eligible person
on an individual semester, term, or quarter basis if
the interval between such periods does not exceed one
full calendar month.]
(C) during periods between school terms where the
educational institution certifies the enrollment of the
eligible veteran or eligible person on an individual
term basis if (i) the period between such terms does
not exceed eight weeks, and (ii) both the terms
preceding and following the period are not shorter in
length than the period.
* * * * * * *
SUBCHAPTER II--MISCELLANEOUS PROVISIONS
* * * * * * *
(The amendments to subsection (b)(2) shall take effect on October 1,
2002)
Sec. 3687. Apprenticeship or other on-job training
(a) * * *
* * * * * * *
(b)(1) * * *
(2) The monthly training assistance allowance of an eligible
person pursuing a program described under subsection (a) shall
be [$353] $524 for the first six months, [$264] $392 for the
second six months, [$175] $260 for the third six months, and
[$88] $131 for the fourth and any succeeding six-month periods
of training.
* * * * * * *
(d) With respect to any fiscal year, the Secretary shall
provide a percentage increase (rounded to the nearest dollar)
in the rates payable under subsection (b)(2) equal to the
percentage by which--
(1) the Consumer Price Index (all items, United
States city average) for the 12-month period ending on
the June 30 preceding the beginning of the fiscal year
for which the increase is made, exceeds
(2) such Consumer Price Index for the 12-month period
preceding the 12-month period described in paragraph
(1).
* * * * * * *
(For fiscal years 2001 and 2002 this section shall be applied by
substituting the following figures)
Sec. 3687. Apprenticeship or other on-job training
(a) * * *
* * * * * * *
(b)(1) * * *
(2) The monthly training assistance allowance of an eligible
person pursuing a program described under subsection (a) shall
be [$353] $437 for the first six months, [$264] $327 for the
second six months, [$175] $216 for the third six months, and
[$88] $109 for the fourth and any succeeding six-month periods
of training.
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3720. Powers of Secretary
(a) * * *
* * * * * * *
(h)(1) * * *
(2) The Secretary may not under this subsection guarantee the
payment of principal and interest on certificates or other
securities issued or approved after [December 31, 2002]
December 31, 2008.
* * * * * * *
Sec. 3729. Loan fee
(a)(1) * * *
* * * * * * *
(4)(A) * * *
(B) The specified period for purposes of subparagraph (A) is
the period beginning on October 1, 1993, and ending on
September 30, [2002] 2008, except that in the case of a loan
described in subparagraph (D) of paragraph (2), such period
ends on September 30, [2003] 2009.
* * * * * * *
(5)(A) * * *
* * * * * * *
(C) This paragraph applies with respect to a loan closed
after September 30, 1993, and before [October 1, 2002] October
1, 2008.
* * * * * * *
Sec. 3732. Procedure on default
(a) * * *
* * * * * * *
(c)(1) * * *
* * * * * * *
(11) This subsection shall apply to loans closed before
[October 1, 2002] October 1, 2008.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
* * * * * * *
SUBCHAPTER II--EFFECTIVE DATES
* * * * * * *
Sec. 5113. Effective dates of educational benefits
(a) Except as provided in [subsection (b) of this section]
subsections (b) and (c), effective dates relating to awards
under chapters 30, 31, 32, 34, and 35 of this title or chapter
106 of title 10 shall, to the extent feasible, correspond to
effective dates relating to awards of disability compensation.
(b)(1) When determining the effective date of an award of
survivors' and dependents' educational assistance under chapter
35 of this title for an individual described in paragraph (2)
based on an original claim, the Secretary shall consider the
individual's application (under section 3513 of this title) as
having been filed on the effective date from which the
Secretary, by rating decision, determines that the individual
is entitled to such educational assistance (such entitlement
being based on the total service-connected disability evaluated
as permanent in nature, or the service-connected death, of the
spouse or parent from whom the individual's eligibility is
derived) if that date is more than one year before the date
such rating decision is made.
(2) An individual referred to in paragraph (1) is a person
who is eligible for educational assistance under chapter 35 of
this title by reason of subparagraph (A)(i), (A)(ii), (B), or
(D) of section 3501(a)(1) of this title who--
(A) submits to the Secretary an original application
under such section 3513 for such educational assistance
within one year of the effective date of the rating
decision referred to in paragraph (1);
(B) claims such educational assistance for an
approved program of education for months preceding the
one-year period ending on the date on which the
individual's application under such section was
received by the Secretary; and
(C) would have been entitled to such educational
assistance for such course pursuit for such months,
without regard to this subsection, if the individual
had submitted such an application on the effective date
from which the Secretary determined the individual was
eligible for such educational assistance.
[(b)] (c) The effective date of an adjustment of benefits
under any chapter referred to in subsection (a) of this
section, if made on the basis of a certification made by the
veteran or person and accepted by the Secretary under section
3680(g) of this title, shall be the date of the change.
* * * * * * *
CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS
* * * * * * *
Sec. 5317. Use of income information from other agencies: notice and
verification
(a) * * *
* * * * * * *
(g) The authority of the Secretary to obtain information from
the Secretary of the Treasury or the Secretary of Health and
Human Services under section 6103(l)(7)(D)(viii) of the
Internal Revenue Code of 1986 expires on [September 30, 2002]
September 30, 2008.
* * * * * * *
CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS
* * * * * * *
Sec. 5503. Hospitalized veterans and estates of incompetent
institutionalized veterans
(a) * * *
* * * * * * *
(f)(1) * * *
* * * * * * *
(7) This subsection expires on [September 30, 2002] September
30, 2008.
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
* * * * * * *
CHAPTER 73--VETERANS HEALTH ADMINISTRATION--ORGANIZATION AND FUNCTIONS
* * * * * * *
SUBCHAPTER II--GENERAL AUTHORITY AND ADMINISTRATION
* * * * * * *
Sec. 7312. Special medical advisory group
(a) * * *
* * * * * * *
(d) Not later than February 1 of each year, the special
medical advisory group shall submit to the Secretary and the
Congress a report on the activities of the advisory group
during the preceding fiscal year. No report shall be required
under this subsection after December 31, 2004.
* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
* * * * * * *
CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY
* * * * * * *
SUBCHAPTER I--ACQUISITION AND OPERATION OF MEDICAL FACILITIES
* * * * * * *
Sec. 8111A. Furnishing of health-care services to members of the Armed
Forces during a war or national emergency
(a) * * *
* * * * * * *
[(f) Within thirty days after a declaration of a period of
war or national emergency described in subsection (a) of this
section (or as soon after the end of such thirty-day period as
is reasonably practicable), the Secretary shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a report on the Secretary's allocation of
facilities and personnel in order to provide priority hospital
care, nursing home care, and medical services under this
section to members of the Armed Forces. Thereafter, with
respect to any fiscal year in which the authority in subsection
(b) of this section to enter into contracts with private
facilities has been used, the Secretary shall report within
ninety days after the end of such fiscal year to those
committees regarding the extent of, and the circumstances under
which, such authority was used.]
* * * * * * *
CHAPTER 82--ASSISTANCE IN ESTABLISHING NEW STATE MEDICAL SCHOOLS;
GRANTS TO AFFILIATED MEDICAL SCHOOLS; ASSISTANCE TO HEALTH MANPOWER
TRAINING INSTITUTIONS
* * * * * * *
Sec. 8201. Coordination with public health programs; administration
(a) * * *
* * * * * * *
[(h) Not later than ninety days after the end of each fiscal
year, the Secretary shall submit to the Congress a report on
activities carried out under this chapter, including (1) an
appraisal of the effectiveness of the programs authorized
herein in carrying out their statutory purposes and the degree
of cooperation from other sources, financial and otherwise, (2)
an appraisal of the contributions of such programs in improving
the quantity and quality of physicians and other health care
personnel furnishing hospital care and medical services to
veterans under this title, (3) a list of the approved but
unfunded projects under this chapter and the funds needed for
each such project, and (4) recommendations for the improvement
or more effective administration of such programs, including
any necessary legislation.]
* * * * * * *