[Senate Report 111-346]
[From the U.S. Government Publishing Office]
Calendar No. 638
111th Congress Report
SENATE
2d Session 111-346
======================================================================
POST-9/11 VETERANS EDUCATIONAL ASSISTANCE IMPROVEMENTS ACT OF 2010
_______
October 26 (legislative day, October 1), 2010.--Ordered to be printed
Filed, under authority of the order of the Senate of September 29, 2010
_______
Mr. Akaka, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany S. 3447]
The Committee on Veterans' Affairs (hereinafter, ``the
Committee''), to which was referred the bill (S. 3447), to
amend title 38, United States Code (hereinafter, ``U.S.C.''),
to improve educational assistance for veterans who served in
the Armed Forces after September 11, 2001, and for other
purposes, reports favorably thereon with an amendment in the
nature of a substitute, and recommends that the bill, as
amended, do pass.
Introduction
On May 27, 2010, Chairman Daniel K. Akaka introduced
S. 3447, the proposed ``Post-9/11 Veterans Educational
Assistance Improvements Act of 2010,'' to amend title 38 to
improve educational assistance for veterans who served in the
Armed Forces after September 11, 2001, and for other purposes.
Later, Ranking Member Richard Burr and Senators Baucus, Begich,
Bennet, Boxer, Burris, Dodd, Gillibrand, Inouye, Johnson,
Kaufman, Landrieu, Lautenberg, Lincoln, McCaskill, Merkley,
Murkowski, Murray, Rockefeller, Sanders, Schumer, Snowe,
Stabenow, Tester, Udall (NM), and Webb were added as
cosponsors.
On July 21, 2010, the Committee held a hearing on pending
legislation, including S. 3447. Testimony was offered by: Keith
Wilson, Director, Education Service, Department of Veterans
Affairs; Robert E. Clark, Assistant Director for Accession
Policy, Department of Defense; Eric A. Hilleman, National
Legislative Director, Veterans of Foreign Wars; Tim Embree,
Legislative Associate, Iraq and Afghanistan Veterans of
America; Terry Hartle, Senior Vice President, American Council
on Education; Judy Flink, Executive Director, Student Financial
Services, University of Illinois; and Gerard M. Farrell,
Captain, U.S. Navy (Ret.), Executive Director, Commissioned
Officers Association of the U.S. Public Health Service.
Committee Meeting
After carefully reviewing the testimony from the foregoing
hearing, including written testimony submitted for the record
of the hearing, the Committee met in open session on August 5,
2010, to consider, among other legislation, S. 3447 with an
amendment in the nature of a substitute. The Committee voted,
without dissent, to report favorably S. 3447 as amended.
Summary of S. 3447 as Reported
The bill as reported (hereinafter, ``the Committee bill'')
would amend title 38 to improve educational assistance for
veterans who served in the Armed Forces after September 11,
2001, and for other purposes. It consists of two titles, as
follows:
TITLE I--POST-9/11 VETERANS EDUCATIONAL ASSISTANCE
Section 101
Would amend the definition of active duty for
purposes of eligibility for benefits under the Post-9/11
Veterans Educational Assistance Act of 2008 (hereinafter,
``Post-9/11 GI Bill'') in order to align full-time National
Guard duty with the Reserve active duty under the provisions of
section 12301(d) of title 10, U.S.C., thereby correcting the
inadvertent omission of eligibility for two distinct types of
full-time National Guard duty, both of which qualify for the
current Montgomery GI Bill (hereinafter, ``MGIB''): (1) Active
Guard Reserve (hereinafter, ``AGR'') duty under title 32,
U.S.C., and (2) individuals ordered to full-time National Guard
duty by the President or the Secretary of Defense under section
502(f) of title 32, U.S.C.
Would clarify that specialized types of training
proprietary to the Department of the Army and to the Coast
Guard (One Station Unit Training and A School Training,
respectively) should be considered to be active duty for
training and thus should count towards eligibility for Post-9/
11 GI Bill benefits only in certain circumstances.
Would clarify that, in order to be eligible for
Post-9/11 GI Bill benefits, individuals receiving certain other
than traditional discharges (such as ``existed prior to
service'' or hardship discharges) must receive discharges
characterized as honorable.
Would align the eligibility of individuals
attending the Coast Guard Academy with those attending the
other three military academies so that eligibility for Post-9/
11 GI Bill benefits would only begin to accrue following the
completion of any obligated period of service required by
virtue of completion of a program of education at the Academy.
Section 102
Would provide that the amount of assistance paid
on behalf of an individual enrolled in a degree program at a
public institution of higher learning would be up to the actual
cost of in-State tuition and fees (less any waiver or reduction
of tuition or fees or any amount provided directly to the
institution on behalf of an eligible student for the sole
purpose of defraying tuition and fees).
Would provide that the amount of assistance paid
on behalf of an individual enrolled in a degree program at a
non-public or foreign institution of higher learning would be
up to the lesser of an annualized rate of $20,000 (adjusted
annually by increases in the cost of education) or the actual
cost of tuition and fees (less any waiver or reduction of
tuition or fees or any amount provided directly to the
institution on behalf of an eligible student for the sole
purpose of defraying tuition and fees).
Would provide that the living stipend payable to
individuals training on more than a half-time basis would be
adjusted based on actual training time rounded to the nearest
tenth.
Would provide that the maximum living stipend
payable to individuals enrolled more than half-time in training
courses consisting entirely of distance learning would be fifty
percent of the national average of the monthly amount of the
basic allowance for housing payable under section 403 of title
37 for a member with dependents in pay grade E-5, adjusted
based on the actual training time.
Section 103
Would provide that the amount of assistance paid
on behalf of an individual enrolled in training while on active
duty would be up to the lesser of an annualized rate of $20,000
(adjusted annually by increases in the cost of education) or
the actual cost of in-State tuition and fees (less any waiver
or reduction of tuition or fees or any amount provided directly
to the institution on behalf of an eligible student for the
sole purpose of defraying tuition and fees).
Would provide for up to a $1,000 annual book
allowance to be paid to individuals training while on active
duty.
Section 104
Would clarify the amount of assistance payable to
individuals enrolled in training on a half-time-or-less basis.
Section 105
Would provide that Post-9/11 GI Bill benefits may
be used at institutions other than institutions of higher
learning.
Would provide that the amount of assistance paid
to an individual enrolled in a program of education not leading
to a college degree would be up to the lesser of an annualized
rate of $20,000 (adjusted annually by increases in the cost of
education) or the actual cost of in-State tuition and fees
(less any waiver or reduction of tuition or fees or any amount
provided directly to the institution on behalf of an eligible
student for the sole purpose of defraying tuition and fees).
Would provide that the living stipend payable to
individuals enrolled on more than a half-time basis in a
program of education not leading to a college degree would be
adjusted based on actual training time rounded to the nearest
tenth.
Would provide for the payment of up to a $1,000
annual book allowance to individuals enrolled in programs of
education not leading to a college degree.
Would provide that the maximum payment of the
living allowance to individuals enrolled in full-time programs
of apprenticeship or on-job training would be 100 percent of
the otherwise applicable allowance for the first six months, 80
percent for the second six months, 60 percent for the third six
months, 40 percent for the fourth six months, and 20 percent
for any subsequent periods of training.
Would provide for the payment of up to a $1,000
annual book and supplies allowance to individuals enrolled in
programs of apprenticeship or on-job training.
Would provide that the maximum amount of
assistance paid on behalf of an individual enrolled in a
program of flight training would be the lesser of an annualized
rate of $12,000 (adjusted annually by increases in the cost of
education) or the actual cost of in-State tuition and fees
(less waiver or reduction of tuition or fees or any amount
provided directly to the institution on behalf of an eligible
student for the sole purpose of defraying tuition and fees).
Would provide that the maximum amount of
assistance paid on behalf of an individual enrolled in a
program of training exclusively by correspondence would be the
lesser of an annualized rate of $10,000 (adjusted annually by
increases in the cost of education) or the actual cost of
tuition and fees (less any waiver or reduction of tuition or
fees or any amount provided directly to the institution on
behalf of an eligible student for the sole purpose of defraying
tuition and fees).
Would specify the timing and frequency of payments
for other than traditional programs of education.
Would provide for the charge to entitlement for
individuals pursuing other than programs of education leading
to a degree based on the amount paid as a percentage of the
otherwise applicable annual rate.
Section 106
Would provide that increases in the living stipend
would take effect on August 1 of each year.
Section 107
Would remove provisions that limit use of Post-9/
11 GI Bill benefits to a single licensing or certification test
and do not provide for a charge to entitlement for the pursuit
of a certificate or licensing test; it would instead allow
unlimited use of benefits to pay for licensing and
certification tests with a charge to entitlement for each such
test.
Section 108
Would permit individuals to use Post-9/11 GI Bill
benefits for the purpose of taking certain national tests with
a charge to entitlement for each such test.
Section 109
Would clarify that individuals who receive
recruitment or retention kickers from the Department of Defense
(hereinafter, ``DOD'') under the MGIB or the Montgomery GI
Bill--Selected Reserves may convert that assistance into Post-
9/11 GI Bill benefits.
Would permit DOD to pay the Department of Veterans
Affairs (hereinafter, ``VA'') for such kickers from funds
deposited in the Department of Defense Education Benefits Fund.
Section 110
Would permit certain members of the U.S. Public
Health Service and the National Oceanic and Atmospheric
Administration to transfer Post-9/11 GI Bill benefits to their
dependents (following the completion of minimum duty
requirements).
Clarifies that the purpose of the transferability
feature is to promote recruitment and retention and that the
individual Secretary concerned (e.g., Secretary of the Army,
Secretary of the Navy, Secretary of Health and Human Services,
and others) may exercise the authority when authorized by the
Secretary of Defense because to do so is in the national
security interests of the United States.
Section 111
Would bar duplication of certain VA benefits to
individuals in receipt of benefits under the Marine Gunnery
Sergeant John David Fry Scholarship Assistance program.
Would prohibit a dependent from concurrently using
transferred Post-9/11 GI Bill benefits from more than one
individual.
Would bar duplication of benefits based on a
single event or period of service.
Section 112
Would make a series of technical and conforming
amendments.
TITLE II--OTHER EDUCATIONAL ASSISTANCE MATTERS
Section 201
Would permit a tolling of the delimiting date for
use of education benefits by otherwise eligible individuals who
are designated caregivers of disabled veterans or
servicemembers and who, by virtue of that caregiving, were
unable to pursue a program of education.
Section 202
Would add the National Call to Service program to
the list of programs under which duplication of benefits is
prohibited.
Section 203
Would provide that certain programs of education
that are accredited by agencies or associations recognized by
the Secretary of Education or approved by other Federal
agencies or States could be considered to be approved for VA
purposes without the need for approval by a State approving
agency (hereinafter, ``SAA'').
Would provide that the Secretary of Veterans
Affairs may use the services of SAAs for such compliance and
oversight purposes as the Secretary considers appropriate.
Would provide that either the Secretary of
Veterans Affairs or SAAs may approve accredited programs
offered by for-profit institutions.
Would provide that a course that does not meet VA
requirements will be disapproved either by the Secretary or by
SAAs.
Section 204
Would provide for an increase in the amount of
reporting fees paid to institutions and would add a requirement
that fees be used to support certifying activities or other
activities that support veterans.
Section 205
Would permit service-connected disabled veterans
enrolled in a program under chapter 31 of title 38 (veterans'
rehabilitation and training) who also have eligibility under
the Post-9/11 GI Bill to elect under what chapter to receive
either the applicable subsistence allowance or the living
allowance.
Section 206
Would reduce to four weeks in any academic year
the amount of interval pay available to individuals between
breaks in education training programs.
Background and Discussion
With the enactment of Public Law 110-252, the Supplemental
Appropriations Act, 2008, a new program of educational
assistance was established for veterans who have served in the
Armed Forces since September 11, 2001. Title V of that law put
in place a new program for such veterans under chapter 33 of
title 38, U.S.C. Since the circumstances leading to the
enactment of the new program were outside the framework of the
usual Committee process for development and consideration of
legislation, it became clear early on that there were a number
of issues with the new program that required a legislative
remedy. In addition, early experiences with the new program
demonstrated that, in a number of instances, the new program
was extraordinarily complex, was difficult to understand, and
resulted in inequities.
Background. The new chapter 33 program officially became
effective on August 1, 2009. However, even before that date,
the Committee had undertaken oversight activities relating to
the new benefits through frequent meetings with VA officials
and with representatives from veterans service organizations
(hereinafter, ``VSOs''), various student groups, school
certifying officials, and others involved in implementing and
administering the new benefit. In addition, oversight visits to
two of the four Regional Processing Offices were conducted by
Committee staff in the Fall of 2009 and the Spring of 2010.
Finally, the Committee held three informational briefings for
Senators and their staffs to explain the various complexities
and issues prior to the new program becoming effective.
On April 21, 2010, the Committee held an oversight hearing
on the implementation of the Post-9/11 GI Bill. During this
hearing, the Committee heard from VA, DOD, VSOs, and
stakeholders about the problems that had been encountered--such
as delayed processing issues, emergency payments and their
recovery, overpayments, and the implementation of an entirely
new information technology solution designed to resolve many of
the issues.
In addition, the Committee received considerable input from
individuals eligible for the new program and those responsible
for administering it at various levels, which helped show the
need to develop a streamlined, less complex, and fairer program
as well as to expand certain opportunities for training and
education.
TITLE I--POST-9/11 VETERANS EDUCATIONAL ASSISTANCE
Sec. 101. Modification of Entitlement to Educational Assistance.
Section 101 of the Committee bill, which is derived from
S. 3447 as introduced, would make a number of modifications and
clarifications with respect to entitlement for the Post-9/11 GI
Bill under chapter 33 of title 38, U.S.C.
Active Duty for Guard and Reserve Members
Background. Under current law, certain members of Guard and
Reserve units are eligible for benefits under the Post-9/11 GI
Bill when called to active duty under title 10, U.S.C., for
national security purposes by the President or the Secretary of
Defense. In addition, certain other members of the Guard and
Reserve are eligible for benefits under chapter 30, MGIB, and
chapter 1607 of title 10, Reserve Educational Assistance
Program (hereinafter, ``REAP''). These include individuals
serving in the Army National Guard or the Air National Guard
under the authority of section 502(f) of title 32, U.S.C., when
called to active duty by the President or the Secretary of
Defense to respond to a national emergency.
Individuals who serve in this capacity under title 32 are
those performing full-time National Guard Duty under the Active
Guard Reserve program and were generally assigned to Operation
Jump Start, which assisted U.S. Customs and Border Patrol
agents with logistics and observation activities beginning in
2006, and Operation Noble Eagle, which provided security for
airport and airspace operations following the events of
September 11, 2001.
Due to an inadvertent oversight in the original Post-9/11
GI Bill, this group of title 32 Guard members who had
established eligibility for the MGIB or REAP were omitted.
Committee Bill. Subsection (a)(1) of section 101 of the
Committee bill would amend section 3301 of title 38 to correct
this oversight and make these Guard members eligible for the
Post-9/11 GI Bill. This change would take effect retroactively
on August 1, 2009, as if included in Public Law 110-252.
Definition of Basic Training
Background. Under current law, section 3311 of title 38,
individuals who complete specified periods of service are
eligible for chapter 33 benefits. These specified periods
consist of active duty and, once an individual has served on
active duty for at least 2 years, includes active duty for
entry level and skill training. Section 3301(2) defines the
term entry level and skill training as it pertains to the
various branches of the Armed Forces.
For the purposes of the Department of the Army, Basic
Combat Training and Advanced Skill Training are considered
entry level and skill training; for the purposes of the Coast
Guard, Basic Training is so considered. However, there are two
types of entry level or skill training proprietary to the Army
and the Coast Guard that are not specified in current law:
``One Station Unit Training'' (initial entry training) in the
case of the Army and `` `A' School Training'' (skill training)
in the case of the Coast Guard.
Committee Bill. Subsections (a)(2) and (3) of section 101
of the Committee bill would amend section 3301(2) of title 38
to clarify that One Station Unit Training and ``A'' School
Training are included in the definition of entry level and
skill training in the case of the Army and the Coast Guard,
respectively. These changes would take effect on the date of
enactment and apply with respect to individuals entering
service on or after that date.
Honorable Discharge Requirement
Background. Current law, section 3311(c) of title 38,
generally requires that, in order to be eligible for
educational assistance under the Post-9/11 GI Bill, a
servicemember must receive an honorable discharge. However, due
to an inadvertent error, there are a number of specific types
of discharges for which the required nature of the discharge
are not specified. These include a discharge or release for a
pre-existing medical condition, for hardship, or for a physical
or mental condition (not characterized as a disability) that
interferes with an individual's performance of duty.
Committee Bill. Subsection (b) of section 101 of the
Committee bill would amend section 3311(c)(4) to clarify that,
in the case of a discharge or release for a pre-existing
medical condition, for hardship, or for a physical or mental
condition (not characterized as a disability) that interferes
with an individual's performance of duty, the service would be
required to be characterized as honorable to qualify for Post-
9/11 GI Bill benefits. This change would take effect on the
date of enactment and apply with respect to discharges and
releases from active duty that occur on or after that date.
Service in connection with Attendance at the Coast Guard
Academy
Background. Section 3311(d) of title 38 prohibits an
individual from using certain periods of active-duty service
for purposes of calculating eligibility for Post-9/11 GI Bill
benefits, including an obligated period of service required in
exchange for attendance at the United States Military Academy,
the United States Naval Academy, and the United States Air
Force Academy. Current law, however, inadvertently omitted an
obligated period of service required as a result of attendance
at the United States Coast Guard Academy.
Committee Bill. Subsection (c) of section 101 of the
Committee bill would correct this omission by amending section
3311(d)(2) of title 38 to exclude an obligated period of
service required in connection with attendance at the Coast
Guard Academy. This change would take effect on the date of
enactment and apply with respect to individuals entering into
agreements for obligated periods of service on after that date.
Sec. 102. Amounts of Assistance for Programs of Education Leading to a
Degree Pursued at Public, Non-Public, and Foreign Institutions
of Higher Learning.
Section 102 of the Committee bill, which is derived from
S. 3447 as introduced, would revise various payment formulas in
order to streamline, simplify, and make more equitable certain
payments.
Programs of Education Leading to a Degree
Background. Section 3313(c) of title 38 provides for the
payment of educational assistance to an institution of higher
learning on behalf of an eligible individual pursuing a program
of education. The amount of the payment is based on a
percentage, as determined by length of active-duty service, of
the amount of tuition and fees charged, not to exceed the most
expensive in-State public undergraduate institution of higher
education in the same State.
This payment scheme has resulted in benefits that are
confusing, unpredictable and, in some cases, inequitable.
Tuition and fees were calculated separately in order to take
into account simultaneous enrollments at multiple institutions.
In some cases, so-called ``boutique'' or ``niche'' courses with
extraordinarily high fees (such as a pharmaceutical or a flight
training course) pushed allowed fees in some States much higher
than anticipated. In other cases, for States where tuition at
public schools was low or non-existent, students attending
private-sector institutions were penalized since their tuition
payments were based on the public institutions' maximum rates.
The following VA chart of tuition and fee maximums for the
2009-2010 academic year illustrates the confusion, complexity,
and inequities of the payment structure.
Table last updated January 25, 2010
----------------------------------------------------------------------------------------------------------------
State Maximum Charge per Credit Hour Maximum Total Fees per Term
----------------------------------------------------------------------------------------------------------------
Alabama............................... $291.67 $13,328.00
Alaska................................ $159.00 $13,429.00
Arizona............................... $657.00 $15,000.59
Arkansas.............................. $200.40 $1,811.40
California............................ $335.75 $2,165.25
Colorado.............................. $497.00 $45,387.50
Connecticut........................... $516.00 $2,508.50
Delaware.............................. $356.00 $523.00
District of Columbia.................. $197.92 $620.00
Florida............................... $295.00 $62,000.00
Guam.................................. $190.00 $245.00
Georgia............................... $433.58 $15, 215.00
Hawaii................................ $282.00 $1,449.40
Idaho................................. $259.00 $2,821.30
Illinois.............................. $575.08 $12,836.00
Indiana............................... $321.75 $12,438.00
Iowa.................................. $324.25 $11,817.00
Kansas................................ $393.95 $3,804.00
Kentucky.............................. $430.30 $11,235.00
Louisiana............................. $430.00 $2,622.70
Maine................................. $329.17 $2,805.00
Maryland.............................. $458.13 $2,380.00
Massachusetts......................... $330.00 $17,787.00
Michigan.............................. $990.00 $9,792.20
Minnesota............................. $750.00 $4,493.86
Mississippi........................... $449.00 $805.00
Missouri.............................. $269.00 $9,863.00
Montana............................... $205.40 $4,250.16
Nebraska.............................. $236.75 $1,574.00
Nevada................................ $136.00 $2,839.00
New Hampshire......................... $932.54 $4,977.00
New Jersey............................ $450.67 $5,736.00
New Mexico............................ $212.58 $11,342.00
New York.............................. $1,010.00 $12,697.00
North Carolina........................ $494.00 $2,163.90
North Dakota.......................... $409.56 $25,928.00
Ohio.................................. $477.00 $15,134.00
Oklahoma.............................. $151.00 $11,546.30
Oregon................................ $438.00 $22,190.00
Pennsylvania.......................... $886.00 $6,391.00
Puerto Rico........................... $90.00 $537.00
Rhode Island.......................... $343.00 $2,020.00
South Carolina........................ $484.00 $4,305.50
South Dakota.......................... $93.40 $4,748.31
Tennessee............................. $248.00 $13,190.00
Texas................................. $1,471.00 $12,130.00
Utah.................................. $208.86 $63,576.50
Vermont............................... $488.00 $2,511.00
Virgin Islands........................ $120.00 $563.00
Virginia.............................. $326.00 $3,840.00
Washington............................ $380.00 $14,444.50
West Virginia......................... $266.92 $4,029.67
Wisconsin............................. $663.00 $30,979.00
Wyoming............................... $94.00 $4,335.00
Overseas.............................. $408.09 $10,502.97
----------------------------------------------------------------------------------------------------------------
Committee Bill. Subsection (a) of section 102 of the
Committee bill would eliminate the current State cap system and
replace it with a two-tiered structure that should
substantially reduce confusion. If the eligible student attends
a public institution of higher learning in pursuit of a degree,
VA will reimburse the full cost of in-State tuition and fees
charged by the institution less any waiver or reduction of
tuition and fees for which the student is eligible or any
Federal, State, institutional or employer-based funds provided
directly to the institution which are designated for the sole
purpose of defraying tuition and fees (not including loans or
Pell grants). In the case of an individual enrolled in a non-
public or foreign institution of higher learning in pursuit of
a degree, the amount paid would be the lesser of the actual net
cost, as provided for public institutions, or an annualized
amount of $20,000. The $20,000 amount would be indexed to
increases in the cost of education as provided under the MGIB
in section 3015(h) of title 38 and would be adjusted on August
1 of each year. These changes would take effect on August 1,
2011, and would apply with respect to amounts payable for
educational assistance for pursuit of programs of education on
or after that date.
Amounts of Monthly Stipends
Background. In addition to payments for tuition and fees,
individuals using Post-9/11 GI Bill benefits may be eligible
for a monthly living stipend. Section 3313(c) of title 38
provides that the maximum allowance paid is equivalent to the
monthly amount of the basic allowance for housing payable under
section 403 of title 37 for a servicemember with dependents in
pay grade E-5 (hereinafter, ``BAH E-5''). The allowance is paid
based on the ZIP code area in which the educational institution
is located.
Currently, those enrolled in training on more-than-a-half-
time basis may be eligible to be paid the full housing
allowance. As a result, individuals pursuing training on a 51
percent basis may be paid the same allowance as those enrolled
full-time. This means that an eligible student attending school
just over half-time enrollment (for example, at the rate of 7
credits per term) could receive up to 72 months of the living
allowance payments.
Existing law does not specify the amount of the living
allowance for individuals pursuing programs of education in
foreign countries and does not permit the payment of a living
allowance for those pursuing a program of education solely by
distance learning.
Committee Bill. Subsection (b) of section 102 of the
Committee bill would provide that the maximum monthly living
allowance for more than half-time study in pursuit of a degree
would be equal to the BAH E-5 amount multiplied by the lesser
of 1.0 or the rate of pursuit rounded to the nearest multiple
of ten. Therefore, under the Committee bill, an individual
enrolled on a 61 percent basis would receive up to 60 percent
of the applicable living allowance; an individual enrolled on a
76 percent basis would receive up to 80 percent of the
allowance.
Further, subsection (b) of section 102 of the Committee
bill would provide that the monthly living allowance for
individuals pursuing a program of education in a foreign
country would be calculated based on the national average BAH
E-5 amount and adjusted based on rate of pursuit.
Finally, this section of the Committee bill would provide
for the payment of a living allowance in the case of
individuals pursuing a program of education on more than a
half-time basis solely by distance learning at the rate of up
to 50 percent of the national average BAH E-5, adjusted based
on rate of pursuit. For example, an individual enrolled at 62
percent rate of pursuit would be eligible for up to 50 percent
of 60 percent of the BAH E-5 national average rate.
The Committee recognizes that the trend in higher education
appears to be toward the so-called ``blended'' learning
experience where there are components of both classroom
instruction and distance learning. This blended experience is
provided for under current policies and procedures since VA
considers a combination of classroom and even one distance
learning course as entirely classroom training.
The Committee understands that, for some individuals,
pursuit of a program of education solely by distance learning
may be the only manner available to them and that payment of
some portion of the living allowance is appropriate. However,
since one of the basic purposes of the living allowance is to
offset the cost of housing away from home and since most
distance learning is pursued from home, the full allowance does
not appear supported at this time.
The changes made by this subsection would take effect on
August 1, 2011, and would apply with respect to amounts payable
for educational assistance for pursuit of programs of education
on or after that date.
Sec. 103. Amounts of Assistance for Programs of Education Leading to a
Degree Pursued on Active Duty.
Section 103 of the Committee bill, which is derived from
S. 3447 as introduced, would provide for rates of assistance
and charges to entitlement for programs of education pursued by
individuals who are on active duty.
Background. Under current law, title 38 is silent as to the
maximum amounts of educational assistance under the Post-9/11
GI Bill that VA may provide on behalf of individuals who pursue
educational programs while on active duty. Therefore, VA policy
and procedures are that these individuals are not subject to
any State caps that generally govern the maximum amounts of
tuition and fees VA may pay under that education program. In
addition, individuals training while on active duty are not
eligible for the $1,000 annual payment for books.
Committee Bill. Section 103 of the Committee bill would
amend section 3313(e) of title 38 to provide that individuals
who are on active duty and who are enrolled in a program of
education leading to a degree would be eligible for up to the
lesser of an annualized rate of $20,000 (adjusted annually by
increases in the cost of education) or the actual cost of in-
State tuition and fees (less any waiver or reduction of tuition
or fees or any amount provided directly to the institution on
behalf of an eligible student for the sole purpose of defraying
tuition and fees). It would further provide for the payment of
the book allowance to active-duty servicemembers in the same
manner as this allowance is paid to veterans under the Post-9/
11 GI Bill program.
In addition, this section of the Committee bill would make
a conforming amendment to title 38 and would provide that the
amendments made by this section would take effect 60 days after
the date of enactment of the Committee bill and would apply to
individuals who commence pursuit of a program of education on
or after that date.
Sec. 104. Educational Assistance for Programs of Education Pursued on
Half-time Basis or Less.
Section 104 of the Committee bill, which is derived from
S. 3447 as introduced, would clarify certain provisions
relating to pursuit of programs of education on a half-time-or-
less basis.
Clarification of Availability of Assistance
Background. Subsection (f) of section 3313 of title 38
provides that educational assistance is available for the
pursuit of programs of education on a half-time-or-less basis.
Committee Bill. Subsection (a) of section 104 of the
Committee bill would amend section 3313(f) of title 38 to
clarify that payment of educational assistance is available to
individuals training on a half-time-or-less basis whether it is
on active duty, it is a program leading to a degree, or it is a
program of education other than a degree program. Since
programs not leading to a degree might not be eligible for
educational assistance under the chapter 33 program and since
current law is silent on pursuit of a program while on active
duty, this section of the Committee bill would clarify that
assistance is available for such study on a half-time-or-less
basis.
Amount of Assistance
Background. Section 3313(f)(2) of title 38 provides that
the amount of educational assistance that may be paid on behalf
of an individual pursuing a program of education on a half-time
or less basis is the lesser of the amount that a similarly
enrolled non-veteran would be required to pay or the
appropriately reduced maximum amount calculated for the pursuit
of a program of education (such as taking into account the
State caps or the percentage tier of benefits to which the
individual is entitled).
Committee Bill. Subsection (b) of section 104 of the
Committee bill would provide that, for the purposes of
calculating the maximum amount of educational assistance for
students pursuing a program of education on a half-time or less
basis, the actual net cost provisions discussed above in
section 102(a) would apply.
Sec. 105. Educational Assistance for Programs of Education Other Than
Programs of Education Leading to a Degree.
Section 105 of the Committee bill, which is derived from
S. 3447 as introduced, would provide for the payment of
educational assistance for pursuit of a program of education
other than one leading to a college degree.
Approved Programs of Education at Institutions Other Than
Institutions of Higher Learning
Background. Under current law, section 3313(b) of title 38
provides for the payment of educational assistance on behalf of
individuals enrolled in approved programs of education only at
institutions of higher learning. As a result, individuals
pursuing programs at trade and technical schools, flight
training schools, correspondence schools and others are not
eligible for assistance under the Post-9/11 GI Bill program.
Committee Bill. Subsection (a) of section 105 would amend
section 3313(b) of title 38 to remove the requirement that an
approved program for purposes of the Post-9/11 GI Bill be
offered by an institution of higher learning.
Assistance for Pursuit of Programs of Education Other Than
Programs of Education Leading to a Degree
Background. Under current law, an individual enrolled in a
program of education not leading to a degree is eligible for
assistance only if that program is offered by an institution of
higher learning as discussed in connection with subsection (a)
above. Thus, individuals enrolled in certain programs of
technical training, apprenticeship and on-job training, flight
training, and correspondence training are not eligible for
assistance under the Post-9/11 GI Bill program. However, these
types of training are eligible for assistance under the MGIB
and Montgomery GI Bill--Selected Reserve (hereinafter, ``MGIB-
SR'') program.
Committee Bill. Subsection (b) of section 105 of the
Committee bill would authorize assistance to be paid on behalf
of an individual enrolled in certain specified programs of
education not leading to a degree. It would further provide
that the amount of educational assistance for pursuit of non-
degree programs offered in residence would be up to the lesser
of the actual net cost of the program or the $20,000 adjusted
cap (as discussed above in connection with section 102. In
addition, it would provide for a payment to an enrolled
individual of a living allowance and a book allowance in a
manner consistent with such payments to individuals enrolled in
degree-level programs at institutions of higher learning.
Subsection (b) would further provide for the payment of
assistance to an individual enrolled in a full-time program of
apprenticeship or other on-job training according to the
following formula:
First six-month training period: 100 percent of the living
allowance otherwise applicable
based on the ZIP code of the
employer
Second six-month training period: 80 percent of the living
allowance otherwise applicable
based on the ZIP code of the
employer
Third six-month training period: 60 percent of the living
allowance otherwise applicable
based on the ZIP code of the
employer
Fourth six-month training period: 40 percent of the living
allowance otherwise applicable
based on the ZIP code of the
employer
Fifth and any subsequent training 20 percent of the living
periods: allowance otherwise applicable
based on the ZIP code of the
employer.
In addition, a monthly stipend equivalent to the annualized
amount of the book allowance would be paid to individuals
enrolled in programs of apprenticeship or other on-job training
in order to help cover the costs of supplies, equipment, and
other items.
In the case of an individual enrolled in a program
consisting entirely of flight training (regardless of the
institution offering such a program), subsection (b) of this
section would provide for the payment of an amount up to the
lesser of the actual net cost of the program or an annually
adjusted maximum cap of $12,000 (as increased annually based on
increases in the cost of education).
Finally, in the case of an individual enrolled in a program
pursued entirely by correspondence (regardless of the
institution offering such a program), subsection (b) of this
section would provide for the payment of an amount up to the
lesser of the actual net cost of the program or an annually
adjusted maximum cap of $10,000 (as increased annually based on
increases in the cost of education).
So as to align the MGIB programs and the Post-9/11 GI Bill
program more closely, subsection (b) of this section of the
Committee bill would set forth frequency of payments and
charges to entitlement for these types of training as they
apply to the current MGIB and Post-9/11 GI Bill programs.
Payment of Amounts to Educational Institutions
Background. Section 3313(g) of title 38 specifies that
payments of established charges are to be made directly to
educational institutions.
Committee Bill. Subsection (c) of section 105 would amend
section 3313(g) (as now redesignated) to provide that payment
of established charges would be made directly to educational
institutions in the case of certain non-degree programs, flight
training, and correspondence training. The payment of benefits
in the case of apprenticeship and on-job training would be
directly to the individual enrolled in such training.
Subsection (d) of section 105 would provide that the
amendments made by this section of the Committee bill would
take effect on August 1, 2011, and apply with respect to
pursuit of programs of education on or after that date.
Sec. 106. Determination of Monthly Housing Stipend Payments for
Academic Years.
Section 106 of the Committee bill would provide for an
annual effective date for adjustments in the amount of the
monthly living allowance.
Background. Throughout chapter 33, there are a number of
references to the BAH E-5 rate and that the amount of the
living allowance paid under the Post-9/11 GI Bill is to be
based on that rate. While BAH rates are calculated by DOD and
are adjusted annually on January 1, chapter 33 is silent on
when such adjustments should be applied to the living
allowance.
Committee Bill. Section 106 of the Committee bill would
amend section 3313 of title 38 to provide that adjustments to
the living allowance would be made annually on August 1. This
change would take effect on August 1, 2011. This new provision
is designed to coincide with adjustments made based on
increases in the cost-of-education index discussed above. It
further would align increases generally with what is
customarily considered the start of the school year.
The Committee believes that the fewer times per year VA is
required to adjust rates of any benefits, the interest of
timely and accurate benefits is served.
Sec. 107. Availability of Assistance for Licensure and Certification
Tests.
Section 107 of the Committee bill, which is derived from
S. 3447 as introduced, would eliminate provisions that limit
use of Post-
9/11 GI Bill benefits to a single licensing or certification
test with no charge to entitlement and instead permit unlimited
use of benefits for such tests with a charge to entitlement.
Background. Under current law, section 3315 of title 38
permits individuals to receive a one-time payment of up to
$2,000 for the purposes of completing a licensure or
certification test. There is no charge to the individual's
entitlement for this payment and it is in addition to any other
educational assistance under the Post-9/11 GI Bill.
Committee Bill. Section 107 of the Committee bill would
remove the one-time limit on the use of benefits for purposes
of completing a licensure or certification test. This would
permit individuals to use Post-9/11 GI Bill benefits for
multiple licensure and certification tests. It would, however,
provide that entitlement would be charged for such use at the
rate equivalent to one month for each $1,667 paid (as adjusted
annually based on increases in the cost of education and
described in section 102, discussed above). The changes made by
this section of the Committee bill would be effective on August
1, 2011.
Sec. 108. National Tests.
Section 108 of the Committee bill, which is derived from
S. 3447 as introduced, would authorize the use of entitlement
and benefits under the Post-9/11 GI Bill for the purposes of
completing certain national tests required for purposes of
pursuing higher learning.
Background. Current law makes no provision for payment of
Post-9/11 GI Bill benefits for the purposes of national tests.
However, for purposes of other VA education programs, benefits
may be used to pay for these types of tests.
Committee Bill. Section 108 of the Committee bill would add
a new section 3315A, National tests, to title 38. This new
section would permit the payment of educational assistance
benefits for two types of national tests: (1) those required
for admission to an institution of higher learning and (2)
those providing an opportunity for course credit at an
institution of higher learning.
The Committee bill would provide that the amount of
assistance paid for such tests would be the lesser of the cost
of the test or the amount of entitlement available at the time
of the test. It would further provide that the charge to
entitlement would be determined in the same manner in which
entitlement is charged for licensure and certification tests
discussed in section 107 above. The changes made by this
section of the Committee bill would be effective on August 1,
2011.
Sec. 109. Continuation of Entitlement to Additional Educational
Assistance for Critical Skills or Specialty.
Section 109 of the Committee bill, which is based on
discussions with VA and DOD officials, would provide a means of
allowing individuals who have received additional amounts of
educational assistance from DOD under the MGIB or the MGIB-SR
programs to transfer and use those so-called ``kickers'' under
the Post-9/11 GI Bill program.
Background. Under current law, DOD has authority under both
the MGIB and the MGIB-SR to make available additional amounts
of educational assistance or kickers in order to recruit or
retain certain individuals or for certain critical skills.
However, the Post-
9/11 GI Bill does not specify how those kickers are to be paid
to individuals who elect to receive benefits under the Post-9/
11 GI Bill program instead of under the MGIB program or MGIB-
SR.
Committee Bill. Section 109 of the Committee bill would
amend section 3316 of title 38 by adding a new subsection (c)
that would provide that individuals who are entitled to the
payment of kickers and who elect to participate in the Post-9/
11 GI Bill program continue to be eligible for the payment of
kickers. It would further specify that the monthly rate of
increased assistance payable would be based on the rate of
monthly assistance that would have otherwise been paid under
the MGIB or MGIB-SR programs and the rate of pursuit of a
program of education.
The Committee bill would further clarify that funds for the
payment of kickers would be made available from the Defense
Education Benefits Fund established under section 2006 of title
10 or from appropriations made available to the Department of
Homeland Security for such a purpose.
The amendments made by this section of the Committee bill
would be effective August 1, 2011.
Sec. 110. Transfer of Unused Education Benefits.
Section 110 of the Committee bill, which is derived from
S. 3447 as introduced, would amend section 3319 of title 38, to
make certain changes with respect to the availability to
transfer educational assistance benefits to spouses and
children.
Availability of Transfer Authority for Members of PHS and
NOAA
Background. Under current law, section 3319 of title 38
restricts the ability to transfer benefits to certain members
of the Armed Forces. However, current policies and procedures
of VA have made members of the uniformed services eligible for
benefits under the Post-9/11 GI Bill. As a result, members of
the Commissioned Corps of the Public Health Service and the
National Oceanic and Atmospheric Administration may establish
eligibility for Post-9/11 GI Bill benefits but are unable to
transfer those benefits to their spouses or children.
Committee Bill. Subsection (a) of section 110 of the
Committee bill would amend section 3319 of title 38 to provide
that members of the uniformed services are eligible to transfer
Post-9/11 GI Bill educational assistance benefits to their
spouses and children under the terms and conditions prescribed
therein.
Scope and Exercise of Authority
Background. Subsection (a) of section 3319 of title 38
permits the Secretary of Defense to authorize each of the
Secretaries of the various branches of the Armed Forces, in
order to promote recruitment and retention of members, to
permit eligible individuals to transfer Post-9/11 GI Bill
educational assistance to one or more dependents.
Committee Bill. Subsection (b) of section 110 of the
Committee bill would add a new paragraph (2) to subsection
3319(a) of title 38 to reemphasize that the purpose of
providing for transferability of benefits to dependents is to
promote recruitment and retention in the uniformed services and
to provide that the Secretary concerned may exercise the
authority for that purpose when authorized by the Secretary of
Defense in the national security interests of the United
States.
Subsection (c) of section 110 of the Committee bill would
provide that the provisions of this section would take effect
on August 1, 2011.
Sec. 111. Bar to Duplication of Certain Educational Assistance
Benefits.
Section 111 of the Committee bill, which is based on
discussions with officials from VA and others, would amend
title 38 to bar duplication of certain educational assistance
benefits and other VA benefits.
Bar to Concurrent Receipt of Transferred Education Benefits
and Marine Gunnery Sergeant John David Fry
Scholarship Assistance
Background. Section 1002 of Public Law 111-32, the
Supplemental Appropriations Act, 2009, amended the Post-9/11 GI
Bill to make eligible for assistance the children of
servicemembers who die in line of duty after September 10,
2001. This benefit, the so-called ``Master Gunnery Sergeant
John David Fry Scholarship'' (hereinafter, ``Fry
Scholarship''), became effective on August 1, 2009, and
eligible children attending school may receive up to the
highest public in-State undergraduate tuition and fees, plus a
monthly living stipend and book allowance. An eligible child is
entitled to the equivalent of 36 months of full-time benefits
and has 15 years to use the benefits beginning on the child's
18th birthday or up until the child turns 33 years of age.
Under other provisions of current law, such children may
have eligibility for other educational assistance programs, may
have had benefits transferred to them, or may have established
eligibility for educational assistance based on their own
service in the Armed Forces.
Committee Bill. Subsection (a) of section 111 of the
Committee bill would add a new subsection 3322(e) of title 38
to require children who have eligibility for both the Fry
Scholarship program and who have had Post-9/11 GI Bill
education benefits transferred to them by a parent to elect
under which program to receive benefits.
Bar to Receipt of Compensation and Pension and Marine
Gunnery Sergeant John David Fry Scholarship
Assistance
Background. Under existing law, the children of certain
veterans are eligible for educational assistance under the
Survivors' and Dependents' Educational Assistance program. If a
child begins a program of education using those benefits, that
constitutes a bar to any subsequent compensation, dependency
and indemnity compensation, or pension based on the death of
that child's veteran-parent. It also constitutes a bar to
additional amounts of compensation, dependency and indemnity
compensation, or pension based on that child. However, similar
bars to duplication of benefits were not included when the Fry
scholarship was enacted.
Committee Bill. Subsection (b) of section 111 of the
Committee bill would add a new subsection 3322(f) of title 38
that would provide that, if a child begins a program of
education using Fry Scholarship benefits, that constitutes a
bar to any subsequent compensation, dependency and indemnity
compensation, or pension based on the death of that child's
veteran-parent. It also constitutes a bar to additional amounts
of compensation, dependency and indemnity compensation, or
pension based on that child.
Bar to Concurrent Receipt of Transferred Education Benefits
Background. Under section 3319 of title 38, certain
servicemembers may transfer to their spouses and children some
or all of their entitlement to educational assistance. However,
current law is silent on how such transferability is to be used
in the case of an individual receiving transferred benefits
from more than one individual.
Committee Bill. Subsection (c) of the Committee bill would
add a new subsection 3322(g) of title 38 that would bar
concurrent receipt of transferred benefits based on the service
of two different individuals and would require the transferee
to elect under which source to utilize assistance at any one
time.
Bar to Duplication of Eligibility Based on a Single Event
Background. Under current law, an individual entering
active duty may establish eligibility for the MGIB, the Reserve
Educational Assistance Program, and the Post-9/11 GI Bill based
on the same period of service. For example, an individual, who
entered into service on September 1, 2002, and who completed
three years of service, could have established eligibility for
36 months of educational assistance under the MGIB in addition
to eligibility for 36 months of educational assistance under
the Post-9/11 GI Bill. Subject to the 48-month limitation on
aggregate months of assistance under two or more programs
provided for in section 3695 of title 38, this means that an
individual, who exhausts entitlement to 36 months of training
under the MGIB, can subsequently enroll and receive an
additional 12 months of entitlement under the Post-
9/11 GI Bill based on the same period of service.
In addition, the child of an individual who dies while on
active duty may be eligible for up to 45 months of educational
assistance under chapter 35 of title 38, Survivors' and
Dependents' Educational Assistance. This assistance would be in
addition to assistance available under the Fry Scholarship
program and any assistance transferred to the child by the
servicemember.
Committee Bill. Subsection (d) of the Committee bill would
add a new subsection 3322(h) of title 38 that would require
that individuals who establish eligibility under two or more
chapters of title 38 or under chapters 1606 and 1607 of title
10, to elect under which authority to credit a period of
service. In addition, it would provide that, if the child of a
member of the Armed Forces is eligible for benefits under both
the Fry Scholarship and Survivors' and Dependents' Educational
Assistance program by reason of the death of the child's
parent, the child must elect under which program to receive
educational assistance.
Subsection (e) of the Committee bill would provide that the
amendments made by section 111 would be effective on August 1,
2011.
Sec. 112. Technical Amendments.
Section 112 of the Committee bill would make a series of
technical and conforming amendments to chapter 33 of title 38.
TITLE II--OTHER EDUCATIONAL ASSISTANCE MATTERS
Sec. 201. Extension of Delimiting Dates for use of Educational
Assistance by Primary Caregivers of Seriously Injured and
Veterans and Members of the Armed Forces.
Section 201 of the Committee bill, which is derived from
VA's draft bill, the Veterans Benefit Programs Improvement Act
of 2010, as transmitted to the Congress on May 26, 2010, would
amend title 38 to permit the extension of delimiting dates for
eligible individuals who could not pursue or had to interrupt a
program of education in order to act as the primary caregiver
for a veteran or servicemember who was seriously injured while
on active duty on or after September 11, 2001.
Background. Under current law, individuals eligible for the
MGIB or the Post-9/11 GI Bill are eligible for an extension of
time during which benefits may be used (the so-called
``delimiting date'') by virtue of certain disabilities which
prevented the pursuit of a program of education. In the case of
a child who is eligible for benefits under the chapter 35
program (Survivors' and Dependents' Educational Assistance
program), a delimiting date may be extended if the child
suspends training for reasons beyond the control of the child;
however, the child must have interrupted a program in order to
be eligible for the extension.
On May 5, 2010, Public Law 111-163, the Caregivers and
Veterans Omnibus Health Services Act of 2010, established a
program under which family members may be appointed primary
caregivers of certain seriously injured veterans and
servicemembers injured while on active duty on or after
September 11, 2001. Such family members are eligible for a
monthly stipend as well as a program of comprehensive
assistance including mental health services, ongoing technical
support, counseling, and lodging and subsistence while
accompanying the injured veteran or servicemember for VA
medical care.
Committee Bill. The Committee bill would amend chapters 30,
33, and 35 of title 38 to provide that, in addition to the
existing authorities for extensions, an extension of the
applicable delimiting date may be available for a period of
time equal to the time a primary caregiver was unable to pursue
or had to interrupt a program of education because of that
individual's status as a primary caregiver under Public Law
111-163. These changes would take effect on August 1, 2011, and
would apply with respect to preventions or suspensions of
programs of education that commence on or after that date.
The Committee believes that such extensions would give
individuals the flexibility to complete their educational goals
while still meeting the needs of the veteran or servicemember
for care.
Sec. 202. Limitations on Receipt of Educational Assistance under
National Call to Service and other Programs of Educational
Assistance.
Section 202 of the Committee bill, which is derived from
S. 3447 as introduced, would amend title 38 to limit concurrent
receipt of educational assistance under the National Call to
Service (hereinafter, ``NCS'') program and other programs of
educational assistance.
Background. Under current law, sections 3322(a) and
3681(b)(2) of title 38, concurrent receipt of educational
assistance under certain programs of educational assistance is
prohibited. The prohibition applies to programs provided for by
chapters 30, 31, 32, 33, 34, and 35 of title 38, as well as
those under chapters 1606 and 1607 of title 10. It also
includes programs authorized by section 903 of the Department
of Defense Authorization Act, 1981, the Hostage Relief Act of
1980, and the Omnibus Diplomatic Security and Antiterrorism Act
of 1986.
Section 531 of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107-314) established a new
enlistment option under which all service branches were
required to develop a shortened enlistment program by October
1, 2003, under the NCS Initiative. Following a shortened
active-duty commitment, individuals were required to re-enlist
on active duty or serve two years in the active National Guard
or Reserves. Following this second period of obligated service,
individuals were then required to complete the eight-year total
commitment by re-enlisting or serving in the Selected or
Inactive Reserves.
In exchange for this service, individuals were eligible to
receive one of the following:
Payment of a bonus in the amount of $5,000
Payment in an amount not to exceed $18,000 of
outstanding principal and interest on qualifying student loans
An ``Education Allowance'' which is equal to full
MGIB education rates for up to 12 months of education
An ``Education Allowance'' which is equal to 1/2
monthly MGIB rates for up to 36 months of education.
Committee Bill. Section 202 of the Committee bill would
amend sections 3322(a) and 3681(b)(2) of title 38 to clarify
that duplication and concurrent receipt of education benefits
under more than one education program is also prohibited with
respect to the NCS program.
Sec. 203. Approval of Courses.
Section 203 of the Committee bill, which is also derived
from VA's draft bill, the Veterans Benefit Programs Improvement
Act of 2010, as transmitted to the Congress on May 26, 2010,
would amend various sections of chapter 36 of title 38 to
expand VA's authority regarding approval of courses for the
enrollment of veterans (and other eligible persons) who are in
receipt of VA-administered educational assistance programs and
to better utilize the services of SAAs.
Background. Under current law, section 3671 of title 38,
each State is requested to appoint an SAA for the purposes of
approving programs of education and training and VA enters into
contracts with each SAA. Section 3672 of title 38 provides that
eligible individuals may only receive educational assistance
allowances if the course of education they are taking is
approved by the applicable SAA or, in the case of a prOgram
offered by the Federal Government or an apprenticeship program
where the training establishment is directly engaged in
interstate commerce, by the Secretary. Chapter 36 of title 38
also contains additional provisions relating to the approval of
accredited programs, non-accredited programs, apprenticeship
training programs, other on-the-job training programs,
correspondence programs, and flight training programs.
A U.S. Government Accountability Office (hereinafter,
``GAO'') report (GAO-07-384, March 2007) recommended that VA
take action to reduce the overlap of SAA functions with
functions performed by the Departments of Labor and Education
in approving education and training programs.
Committee Bill. The Committee bill would amend current law
to provide greater authority for the Secretary to utilize the
SAAs more effectively and to reduce overlap with other
agencies. It would deem various programs and courses to be
approved for VA purposes if they are approved by other agencies
for programs under their jurisdiction. It would further
specifically authorize the disapproval of any course by the
Secretary if it is found that the approval criteria set forth
in chapter 36 are not met. It would further authorize the
Secretary to utilize the resources of the SAAs for additional
compliance and oversight activities that are deemed
appropriate.
The Committee concurs in VA's belief that these amendments
will contribute to streamlining the administration of
educational assistance benefits and improve the delivery of
benefits to veterans, reservists, and other eligible
individuals. The Committee further believes that the SAAs
represent a valuable resource for VA as the implementation of
the new Post-9/11 GI Bill continues, particularly as they might
identify issues and problems that may arise regarding the
possible misuse of benefits and instances of fraud,
misrepresentation, and abuse. Finally, the Committee recognizes
the role of the SAAs as a link between educational institutions
and VA that assist institutions in providing education and
training opportunities to eligible students, as well as
representing an important outreach tool.
The Committee intends to monitor the approval process very
closely as these new procedures are set in place and to respond
quickly and appropriately should the need arise.
Sec. 204. Reporting Fees.
Section 204 of the Committee bill, which is derived from
S. 3447 as introduced, would increase the amount of reporting
fees paid by VA to educational and training institutions and
would require that any fees paid be used by the institutions
solely for the making of certifications required by title 38 or
for supporting programs for veterans.
Background. Section 3684(c) of title 38 provides for the
payment of reporting fees to educational and training
facilities based on the number of veterans or other eligible
students enrolled. Current law provides that the amount paid
per eligible student is $7 or, in the case of an institution
that accepts advance payments from VA, $11 per student.
Under current law, fees received by institutions are not
restricted in any way and may be used by schools and training
establishments for any purpose.
Committee Bill. The Committee bill would amend section
3684(c) so as to increase the reporting fees paid from $7 and
$11 to $12 and $15, respectively. This change would take effect
on August 1, 2011.
The last time these fees were increased was in 1977 when
the GI Bill Improvements Act became Public Law 95-202. The
Committee believes that the increased fees are not only
justified by virtue of not having been increased in more than
30 years but also by the increased, complex, and complicated
certifications institutions are required to submit to VA.
Nevertheless, the Committee is concerned that these fees
could be used by institutions for purposes other than meeting
the needs of veteran-students. Therefore, the Committee bill
would require that fees received by schools and training
establishments be used to offset the cost of certifications or
to support other veteran programs on campus.
Sec. 205. Election for Receipt of Alternate Subsistence Allowance for
Certain Veterans with Service-Connected Disabilities Undergoing
Training and Rehabilitation.
Section 205 of the Committee bill, which is derived from
S. 3447 as introduced, would permit veterans who have
eligibility for both vocational rehabilitation and training
under chapter 31 of title 38 and under the new Post-9/11 GI
Bill, to elect under which program to receive a living or
subsistence allowance.
Background. Under VA's chapter 31 program of training and
rehabilitation for veterans with service-connected
disabilities, veterans enrolled in training may be eligible to
receive a subsistence allowance. Section 3108(b) of title 38
sets forth the rate for these allowances and their periodic
increase based on increases in the cost-of-living index.
Based on current law, the subsistence allowance payable to
a single veteran living in Portland, OR, and enrolled in a
program of training and rehabilitation at a public institution
of higher learning on a full-time basis would be $547.54 per
month. Under the chapter 33 Post-9/11 GI Bill, that same
veteran enrolled in the same program would be eligible to
receive a living allowance of $1,299 monthly.
Committee Bill. The Committee bill would amend section
3108(b) of title 38 so as to permit individuals who have
eligibility for both the chapter 31 program and the chapter 33
program to elect whether to receive the chapter 31 subsistence
allowance or the chapter 33 living allowance. This change would
take effect on August 1, 2011.
The Committee is concerned that the greater benefit
available under the chapter 33 program provides a disincentive
for service-connected disabled veterans to enroll in the
chapter 31 program, which means they would forego the important
and valuable benefits, services, counseling, and employment
assistance support that are available under the chapter 31
program of training and rehabilitation. By permitting eligible
veterans to select the higher allowance, this disincentive
would be removed.
Sec. 206. Modification of Authority to Make Certain Interval Payments.
Section 206 of the Committee bill, which is derived from
S. 3447 as introduced, would modify VA's authority to make
certain payments between breaks in programs of education.
Background. Under current law, section 3680(a) of title 38
permits individuals enrolled in programs of education and
training under all programs of VA educational assistance to
receive payments during specified periods when pursuit is
interrupted. These include periods of time when schools are
temporarily closed due to an emergency situation, during
periods of time during consecutive enrollments when students
are transferring from one institution to another, and during
periods between enrollment periods not exceeding eight weeks.
Committee Bill. The Committee bill would amend section
3680(a) of title 38 so as to reduce the period of time between
enrollment periods during which an interval payment could be
made from eight weeks to four weeks during any one year.
The Committee is concerned that, since the months of
educational assistance available to eligible veterans and
others is, in most cases, equal to the number of months needed
to attain an educational objective, using entitlement for
months during which a student is not actively pursuing an
educational goal unnecessarily uses months of entitlement that
could be otherwise utilized and results in the student's
inability to complete an educational objective with available
assistance.
Committee Bill Cost Estimate
In compliance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate, the Committee, based on
information supplied by the CBO, estimates that enactment of
the Committee bill would, relative to current law, increase
spending by $X million 20XX and by $X million over the 20XX-
20XX period. Enactment of the Committee bill would not affect
direct spending or receipts and would not affect the budget of
State, local or tribal governments.
The cost estimate provided by CBO, setting forth a detailed
breakdown of costs, follows:
Congressional Budget Office,
Washington, DC, October 6, 2010.
Hon. Daniel K. Akaka,
Chairman,
Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 3447, the Post-9/11
Veterans Educational Assistance Improvements Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is William Ma.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.
S. 3447--Post-9/11 Veterans Educational Assistance Improvements Act of
2010
Summary: S. 3447 would modify existing education benefits
offered to active-duty servicemembers, reserve members,
veterans, and qualifying dependents of those who served in the
Armed Forces on or after September 11, 2001. If enacted, CBO
estimates this bill would increase direct spending for veterans
readjustment benefits by about $1.3 billion over the 2011-2015
period and about $2.3 billion over the 2011-2020 period.\1\
---------------------------------------------------------------------------
\1\Different time periods are relevant for enforcing the current
pay-as-you-go rules in the Senate and the House of Representatives. CBO
estimates that enacting S. 3447 would increase direct spending by about
$1 billion over the 2011-2014 period and by about $2.1 billion over the
2011-2019 period.
---------------------------------------------------------------------------
Pay-as-you-go procedures apply because enacting the
legislation would affect direct spending. Enacting the bill
would not affect revenues and would have no significant impact
on spending subject to appropriation.
S. 3447 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 3447 is shown in Table 1. The costs of
this legislation fall within budget function 700 (veterans
benefits and services).
Table 1.--Estimated Budgetary Impact of S.3447, The Post-9/11 Veterans Educational Assistance Improvements Act of 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Expansion of Educational Programs
Estimated Budget Authority.............................. 63 190 304 315 311 307 304 300 296 293 1,183 2,683
Estimated Outlays....................................... 63 190 304 315 311 307 304 300 296 293 1,183 2,683
Payments for Education Assistance
Estimated Budget Authority.............................. 34 -173 -178 -190 -210 -231 -244 -250 -253 -257 -717 -1,952
Estimated Outlays....................................... 34 -173 -178 -190 -210 -231 -244 -250 -253 -257 -717 -1,952
Eligibility for Post-9/11 GI Bill Education Benefits
Estimated Budget Authority.............................. 137 164 177 172 165 158 150 145 149 154 815 1,571
Estimated Outlays....................................... 137 164 177 172 165 158 150 145 149 154 815 1,571
Other Provisions
Estimated Budget Authority.............................. 5 -1 -2 -1 -2 -3 -4 -5 -5 -5 -1 -23
Estimated Outlays....................................... 5 -1 -2 -1 -2 -3 -4 -5 -5 -5 -1 -23
-------------------------------------------------------------------------------------------
Total Changes in Direct Spending
Estimated Budget Authority.......................... 239 180 301 296 264 231 206 190 187 185 1,280 2,279
Estimated Outlays................................... 239 180 301 296 264 231 206 190 187 185 1,280 2,279
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: S. 3447 would modify the eligibility
requirements for receiving benefits under the Post-9/11 GI Bill
and adjust the amount of education assistance available to
current and future beneficiaries. This estimate is based on
information from the Department of Defense (DOD), the
Department of Veterans Affairs (VA), the National Guard Bureau,
the U.S. Coast Guard, the National Center for Education
Statistics, and the College Board. CBO assumes the bill will be
enacted by the end of calendar year 2010.
Expansion of Educational Programs
Under the Post-9/11 GI Bill, only veterans attending
programs offered by degree-granting institutions of higher
learning may receive education assistance. Several provisions
in S. 3447 would expand eligibility to cover other forms of
education and training, including certificate programs,
apprenticeships, on-the-job training, flight training, and
correspondence training. If enacted, CBO estimates that the
following provisions would increase direct spending by $2.7
billion over the 2011-2020 period (see Table 2).
Table 2.--Impact of S.3447 on Educational Programs Eligible for Assistance Under the Post-9/11 GI Bill
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Certificate and Non-Degree Programs......................... 2 21 35 51 54 57 59 62 65 69 163 475
Apprenticeship and On-the-Job Training...................... 11 67 67 62 55 48 42 35 28 21 262 436
Flight Training............................................. * 1 1 1 1 1 2 2 2 2 4 13
Montgomery GI Bill Contributions............................ 50 101 201 201 201 201 201 201 201 201 754 1,759
-------------------------------------------------------------------------------------------
Total Changes in Direct Spending........................ 63 190 304 315 311 307 304 300 296 293 1,183 2,683
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = less than $500,000.
Certificate and Non-Degree Programs. Section 105 would
expand the definition of approved education programs to include
certificate and non-college degree programs. CBO estimates this
provision would result in about 6,000 additional veterans using
the Post-
9/11 GI Bill per year, with each using approximately $8,000 a
year in education benefits. Over the 2011-2020 period, CBO
estimates the payment of tuition, fees, housing stipends, and
annual book allowances to qualifying individuals would increase
direct spending by about $475 million.
Apprenticeship and On-the-Job Training. Section 105 also
would expand the definition of approved programs to include
apprenticeship and on-the-job training programs. CBO estimates
that the number of individuals receiving Post-9/11 GI Bill
benefits would increase by about 4,700 in 2011 and almost 6,800
by 2020 if those provisions were enacted. In addition, we
estimate that amounts payable under section 105 for those
programs would be about 30 percent and 55 percent greater than
amounts currently paid under the Montgomery GI Bill (MGIB) and
the Reserve Educational Assistance Program (REAP),
respectively, in 2011. (While significantly higher in 2011, we
expect that those differences would decrease over time as both
the current and newly proposed rates are tied to different
inflation indices.) CBO estimates the increase in users and
benefit amounts and the migration of MGIB and REAP users
seeking the higher Post-9/11 GI Bill benefit would increase
direct spending by about $436 million over the 2011-2020
period.
Flight Training. Section 105 would expand the definition of
approved education programs to include flight training. The
amount of assistance payable would equal the actual cost of
tuition and fees or $12,000, adjusted annually for inflation,
whichever is less. That rate is comparable to the amount
currently paid for flight training under MGIB, but is greater
than the amount currently paid for such training under REAP.
CBO estimates that about 160 REAP flight trainees each year
would benefit from this provision. In 2011, we estimate those
trainees would each use an average of $8,000 in education
benefits. After taking into consideration annual increases in
tuition costs, we estimate the average benefit would grow to
$13,000 by 2020. In total, CBO estimates this provision would
increase direct spending by about $13 million over the 2011-
2020 period.
Correspondence Training. Finally, section 105 would expand
the definition of approved education programs to include
correspondence training. Assistance for correspondence courses
would equal the lesser of the actual cost of tuition and fees
or $10,000, adjusted annually for inflation. An average of 780
MGIB users over each of the past three years participated in
correspondence training at an average annual cost of $210 per
user. With the increased availability of other forms of
distance education opportunities, CBO assumes the number of
correspondence students will decline from about 700 users in
2011 to about 270 users in 2020. Thus, we estimate the total
increase in direct spending for correspondence students would
be less than $500,000 over the 2011-2020 period.
Montgomery GI Bill Contributions. Section 109 would
authorize DOD to use the Education Benefits Fund to pay
supplemental educational assistance offered under the Post-9/11
GI Bill. DOD currently offers such assistance through the MGIB
program to support the recruitment and retention of individuals
with specialized skills. This assistance provides up to $950
per month in addition to the basic educational assistance to
which an individual is otherwise entitled and is drawn from the
DOD Education Benefits Fund. Under current law, supplemental
assistance offered under the Post-9/11 GI Bill cannot be paid
from that fund. Instead, servicemembers must enroll in MGIB and
contribute $1,200 through payroll deductions to receive the
supplemental assistance. They are then allowed to transfer to
the more generous Post-9/11 GI Bill and retain entitlement to
the supplemental benefit.
Under section 109, servicemembers would no longer be
required to enroll in MGIB to receive supplemental educational
assistance. CBO believes this provision, combined with the
provisions that expand the programs eligible for assistance
under the Post-9/11 GI Bill, would eliminate any remaining
incentive for servicemembers to enroll in MGIB. CBO estimates
the loss of those MGIB contributions (currently counted as
offsets to direct spending) would increase direct spending by
about $1.8 billion over the 2011-2020 period.
Payments for Education Assistance
Sections 102, 103, 104, and 106 would modify amounts
payable for tuition, fees, housing stipends, and book
allowances under the Post-9/11 GI Bill. Section 205 would
modify amounts payable to certain veterans with service-
connected disabilities. In addition, section 206 would modify
the conditions under which interval payments may be paid to
students between school terms. CBO estimates that enacting
those provisions would, on net, decrease direct spending for
veterans education by about $2 billion over the 2011-2020
period (see Table 3).
Table 3.--Impact of S.3447 on Amounts Payable for Education Assistance
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Interval Payments........................................... 0 -212 -214 -215 -220 -225 -230 -236 -244 -253 -861 -2,049
Cap on Tuition and Fees..................................... 61 140 155 167 177 188 201 215 231 247 700 1,782
Tuition and Fees, Net of Financial Assistance............... -28 -64 -71 -78 -84 -90 -96 -103 -110 -118 -325 -842
Modifications to Monthly Housing Stipend.................... -9 -74 -87 -105 -127 -149 -165 -173 -178 -183 -402 -1,250
Housing Stipend in Lieu of Subsistence Allowance............ 4 23 24 26 28 29 30 31 32 33 105 260
Allowance for Active-Duty Books and Supplies................ 6 14 15 15 16 16 16 16 16 17 66 147
-------------------------------------------------------------------------------------------
Total Changes in Direct Spending........................ 34 -173 -178 -190 -210 -231 -244 -250 -253 -257 -717 -1,952
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Interval Payments. Section 206 would modify the conditions
under which the Secretary of Veterans Affairs may make payments
to students during the interval between consecutive school
terms. Under current law, VA may continue to pay education
benefits during intervals between semesters, quarters, or
summer sessions. This section of S. 3447 would allow payment
only during periods when schools are temporarily closed under
an Executive Order of the President or because of an emergency
situation. CBO estimates that an average of 260,000 students
will receive interval payments averaging $875 per year under
current law. Under this provision, we expect interval payments
would be paid very rarely; thus, we estimate this provision
would result in savings of about $2 billion over the 2011-2020
period.
Cap on Tuition and Fees. Under sections 102, 103, and 104,
amounts payable to public institutions for veterans education
would equal the actual cost of in-state tuition and fees,
reduced by the amount of any institutional, state, federal, or
employer-based financial assistance specifically designated to
defray tuition and fee expenses. Amounts payable to private and
foreign institutions would be limited to the actual cost of
tuition and fees or $20,000, adjusted annually for inflation,
whichever is less. Under current law, the Post-9/11 GI Bill
pays the actual cost of tuition and fees up to the highest in-
state tuition charged by a public educational institution in
the state where the school is located. For students enrolled at
foreign institutions of higher learning, the Post-9/11 GI Bill
pays the actual cost of tuition and fees up to the average
amount of tuition and fees paid to undergraduate in-state
students throughout the United States.
Based on information from VA, CBO estimates that the
national average of the highest in-state tuition and fees
payable for Post-9/11 GI Bill users will be about $17,300 in
2011. Under current law, students attending institutions where
tuition and fees exceed their state's cap may be eligible for
additional assistance under the Yellow Ribbon GI Education
Enhancement Program. When an institution enters into a Yellow
Ribbon Program (YRP) agreement with VA, it agrees to cover a
portion of the student's tuition shortfall. VA then matches the
institution's contribution to further reduce or eliminate the
student's out-of-pocket expenses.
The proposed $20,000 cap would result in a 16 percent
increase in payments over amounts that would be paid using the
formula cap under current law. The new cap also would raise the
threshold for when a participating institution's YRP
contributions would take effect. CBO estimates that
approximately 105,000 students will attend private and foreign
institutions in 2011, and about 65,000 of them will receive
funds through the YRP. In total, CBO estimates that instituting
a $20,000 per year cap on tuition and fees paid to private and
foreign institutions would increase direct spending by about
$1.8 billion over the 2011-2020 period.
Tuition and Fees, Net of Financial Assistance. In
estimating the net cost of tuition and fees after applying
available financial assistance, CBO expects that total
financial assistance received by beneficiaries of the Post-9/11
GI Bill will be significantly less than amounts received by
comparable nonveterans. Education institutions would realize
that the assistance offered to eligible veterans would reduce
the amounts paid by VA rather than by the student. Thus, they
would allocate their limited aid dollars to other students.
Also, we expect that few, if any, users of the Post-9/11 GI
Bill would take the time to apply for scholarships specifically
designated to defray tuition and fee expenses if their efforts
result in reducing amounts paid by VA. Drawing on financial
assistance data from the College Board, CBO estimates the
average amount of assistance per user (other than loans and any
funds provided under section 401(b) of the Higher Education Act
of 1965) received by beneficiaries of the Post-9/11 GI Bill to
be about $215--a fraction of the average amount provided to
comparable nonveterans. Such savings would reduce direct
spending by $842 million over the 2011-2020 period, CBO
estimates.
Modifications to Monthly Housing Stipend. Section 106 would
delay the annual increase in housing stipends from January 1 to
August 1, the beginning of the academic year. Stipend payment
rates established on August 1 would remain effective throughout
the entire academic year. Those payments would be further
adjusted by section 102 to reflect whether a student is
attending on a full-time or part-time basis. In addition,
section 102 would provide monthly housing stipends to students
pursuing programs entirely through distance education who are
enrolled on more than a half-time basis and not serving on
active duty. Under current law: annual increases in housing
stipends go into effect January 1 of each year; students are
paid the current monthly stipend rate regardless of the
academic calendar; students who pursue programs of education on
more than a half-time basis are paid the full amount of the
stipend; and students who pursue programs of education solely
through distance learning are not entitled to a housing
stipend. Collectively, the proposed stipend adjustments would
result in net savings of about $1.3 billion over the 2011-2020
period.
Housing Stipend in Lieu of Subsistence Allowance. Section
205 would allow veterans with service-connected disabilities
that participate in a program of vocational rehabilitation
under chapter 31 of title 38 of the U.S. Code, and who are also
entitled to Post-
9/11 GI Bill education benefits, to choose whether to receive
the monthly housing stipend payable under the Post-9/11 GI Bill
or a monthly subsistence allowance. Under current law, those
veterans must withdraw from the vocational rehabilitation
program in order to receive Post-9/11 GI Bill benefits. In
doing so, they are no longer entitled to the counseling and
support services provided by the vocational rehabilitation
program. Based on information from VA, CBO estimates that, on
average, about 21,000 of the individuals who participate in the
vocational rehabilitation program each year would choose the
housing stipend payment over the subsistence payment. We
estimate that the average monthly housing stipend will be about
$600 greater than the average subsistence payment in 2011;
after taking into consideration cost-of-living increases, we
estimate that the difference will grow to $670 by 2020. If
enacted, CBO estimates that section 205 would increase direct
spending by $260 million over the 2011-2020 period.
Allowance for Active-Duty Books and Supplies. Under section
103, active-duty servicemembers would be eligible for an annual
allowance of $1,000 for books and supplies. CBO estimates that
making that allowance available to the estimated 19,000 users
of the Post-9/11 GI Bill that are on active duty in 2011--
increasing to 25,000 by 2020--would increase direct spending by
$147 million over the 2011-2020 period.
Eligibility for Post-9/11 GI Bill Education Benefits
Section 101 would amend the eligibility requirements for
the Post-9/11 GI Bill that apply to certain National Guard
members, servicemembers receiving less than honorable
discharges, and graduates of the Coast Guard Academy. On net,
CBO estimates that enacting those provisions would increase
direct spending by about $1.6 billion over the 2011-2020 period
(see Table 4).
Table 4.--Impact of S.3447 on Post-9/11 GI Bill Education Benefit Eligibility
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Guard.............................................. 158 186 199 195 189 182 175 171 176 183 927 1,814
Honorable Service Requirement............................... -21 -22 -22 -23 -24 -24 -25 -26 -27 -28 -112 -242
Coast Guard Academy Graduates............................... 0 0 0 0 0 * * * * * * -1
-------------------------------------------------------------------------------------------
Total Changes in Direct Spending........................ 137 164 177 172 165 158 150 145 149 154 815 1,571
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = less than $500,000.
National Guard. Under current law, service in the Active-
Guard Reserve Program as well as service performed by National
Guardsmen called to duty by the President or the Secretary of
Defense under section 502(f) of title 32, U.S. States Code, are
not recognized as qualifying service under the Post-9/11 GI
Bill. For servicemembers who performed such duties, education
benefits are limited to MGIB and REAP. Section 101 would
recognize such full-time duty as qualifying service for
benefits under the Post-9/11 GI Bill. Based on information
obtained from the National Guard Bureau, CBO estimates that
under this provision, an additional 131,000 National Guardsmen
would be immediately eligible for benefits and that each year
8,000 additional National Guardsmen would qualify for benefits.
The addition of this newly eligible population would result in
about a 25 percent increase in total reservists eligible for
benefits. Assuming a proportionate increase in usage, plus an
estimated 5 percent increase in usage from those who are
currently eligible but would not have otherwise used education
benefits, CBO estimates that under this provision direct
spending would increase by about $1.8 billion over the 2011-
2020 period.
Honorable Service Requirement. Servicemembers discharged or
released from active duty because of a preexisting medical
condition, hardship, or a physical or mental condition not
considered a disability are eligible for education benefits
under the Post-9/11 GI Bill, regardless of the type of
discharge they receive. Section 101 would limit eligibility for
the Post-9/11 GI Bill for such veterans to those whose service
was characterized as honorable. Based on information from the
DOD, approximately 2,900 veterans per year would no longer be
eligible for education assistance under that limitation. CBO
estimates that, under current law, approximately half of those
veterans will each use about $15,000 in benefits in 2011 and,
after cost-of-living increases, about $20,000 in benefits in
2020. If enacted, this provision would reduce direct spending
by $242 million over the 2011-2020 period, CBO estimates.
Coast Guard Academy Graduates. This provision would delay
eligibility for Post-9/11 GI Bill benefits for graduates of the
Coast Guard Academy, aligning their eligibility with graduates
of the other three Military Academies. Currently, Coast Guard
Academy graduates do not have to fulfill their service
obligation, as is required of graduates from the other Military
Academies, before using benefits under the Post-9/11 GI Bill.
Based on information from the U.S. Coast Guard, CBO estimates
that about 105 Academy graduates, from the graduating classes
of 2015-2020, would have each used about $8,000 in education
benefits within their obligated service period. CBO estimates
that this change in eligibility would reduce direct spending by
about $1 million over the 2011-2020 period.
Other Provisions
Several other provisions of S. 3447 would make changes to
other education assistance programs. CBO estimates that
enacting those provisions would reduce direct spending by $23
million over the 2011-2020 period (see Table 5).
Table 5.--Impact of S.3447 on Other Education Assistance Provisions
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bar to Duplication of Benefits.............................. -1 -9 -10 -11 -10 -11 -12 -14 -15 -16 -41 -109
Transfer of Unused Education Benefits....................... 2 4 4 5 3 4 4 5 5 6 18 42
Reporting Fees.............................................. 4 4 4 4 4 4 4 4 4 4 20 40
Licensure and Certification Tests........................... * * * * * * * * * * 2 4
-------------------------------------------------------------------------------------------
Total Changes in Direct Spending........................ 5 -1 -2 -1 -2 -3 -4 -5 -5 -5 -1 -23
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = less than $500,000.
Bar to Duplication of Benefits. Sections 111 and 202 would
prohibit individuals from concurrently receiving benefits under
the Post-9/11 GI Bill and under the following education
assistance programs: the Marine Gunnery Sergeant John David Fry
Scholarship; National Call-to-Service education assistance; and
Survivors' and Dependents' Education Assistance benefits.
Dependents also would not be allowed to concurrently use
education benefits transferred from more than one
servicemember. In addition, section 111 would reduce or
eliminate certain dependency and indemnity compensation (DIC)
or pension payments for those receiving benefits through the
Post-9/11 GI Bill or those whose dependents receive such
benefits. CBO estimates those provisions would affect
approximately 320 recipients and 1,800 surviving spouses
receiving DIC payments in 2011 (only two months of savings
would be realized from those affected individuals in 2011
because of the specified effective date of August 1, 2011).
Under current law, each of the 320 recipients of education
benefits may receive, on average, about $11,300 in concurrent
education benefits and each of the 1,800 surviving spouses with
a child attending school under the Marine Gunnery Sergeant John
David Fry Scholarship may receive about $230 in additional
monthly DIC payments. CBO estimates that prohibiting those
payments would result in savings of $109 million over the 2011-
2020 period.
Transfer of Unused Education Benefits. Section 110 would
allow qualifying uniformed members of the U.S. Public Health
Service (PHS) and the National Oceanic and Atmospheric
Administration (NOAA) to transfer unused education benefits
from the Post-9/11 GI Bill to their dependents. Currently,
those uniformed members are not allowed to transfer those
benefits. Based on information from PHS and NOAA, CBO estimates
that under this provision 200 dependents would use about
$10,200 in Post-9/11 GI Bill benefits in 2011 and that, by
2020, 300 dependents would each use about $19,200 in education
benefits. In total, we estimate that direct spending would
increase by $42 million over the 2011-2020 period.
Reporting Fees. Reporting fees are payable to educational
institutions at a rate of $7 per eligible enrolled veteran or
$11 in cases where educational institutions assume temporary
custody of education assistance checks until the time of
registration. Section 204 would increase the amount of those
fees from $7 and $11 to $12 and $15, respectively. CBO
estimates that change would increase direct spending by $40
million over the 2011-2020 period.
Licensure and Certification Tests. The Post 9/11 GI Bill
provides both an entitlement to 36 months of education benefits
and to having the fees paid for one examination related to
licensing and certification.
Section 107 would allow eligible individuals to have
multiple examinations paid for, but would reduce their
remaining entitlement by one month for every $1,667 spent on
examination fees. Thus, while this provision would allow
students to have more tests paid for, it would eliminate the
current ``free,'' or non-chargeable, test. Based on an analysis
of data about the use of MGIB funds to pay for licensure and
certification tests, CBO estimates that, on net, this provision
would increase direct spending by $4 million over the 2011-2020
period.
National Exams. Section 108 would allow eligible
individuals to use their Post-9/11 GI Bill benefits to pay fees
for exams, such as the Scholastic Aptitude Test, Law School
Admission Test, Graduate Record Exam, and Graduate Management
Admission Test, as well as for tests providing course credit at
institutions of higher learning, such as Advanced Placement
exams and College-Level Examination Program tests. Like
licensure and certification tests, all payments made for such
exams would reduce an individual's remaining benefits by one
month for every $1,667 spent on examination fees. Based on an
analysis of data on the use of MGIB funds for national exams,
CBO estimates that this provision would increase direct
spending by less than $500,000 over the 2011-2020 period.
Extension of Delimiting Dates. Section 201 would extend the
availability of education benefits for individuals designated
as caregivers of disabled veterans under section 1720G of title
10 of the U.S. Code. The length of the extension would match
the period of time an individual was prevented from using
benefits while caring for a disabled veteran. CBO estimates
that extension would increase direct spending by less than
$500,000 over the 2011-2020 period.
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget reporting and enforcement
procedures for legislation affecting direct spending and
revenues. CBO estimates that by modifying the eligibility
requirements and amounts payable for current and future users
of the Post-9/11 GI Bill, S. 3447 would increase direct
spending for veterans' education benefits. The net changes in
outlays that are subject to those pay-as-you-go procedures are
shown in the following table.
CBO Estimate of Pay-As-You-Go Effects for S.3447 as Ordered Reported by the Senate Committee on Veterans' Affairs on August 5, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, by fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............................. 239 180 301 296 264 231 206 190 187 185 1,280 2,279
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated impact on State, local, and tribal governments:
S. 3447 contains no intergovernmental mandates as defined in
UMRA. Public institutions of higher education would benefit
from an increase in fees paid to them for reporting enrollment
information to the Department of Veterans Affairs.
Estimated impact on the private sector: S. 3447 contains no
private-sector mandates as defined in UMRA.
Estimate prepared by: Federal Costs: Readjustment Benefits:
William Ma; Compensation, Pensions, and Burial Benefits: Dwayne
Wright; Impact on State, Local, and Tribal Governments: Lisa
Ramirez-Branum; Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee on Veterans'
Affairs has made an evaluation of the regulatory impact that
would be incurred in carrying out the Committee bill. The
Committee finds that the Committee bill would not entail any
regulation of individuals or businesses or result in any impact
on the personal privacy of any individuals and that the
paperwork resulting from enactment would be minimal.
Tabulation of Votes Cast in Committee
In compliance with paragraph 7 of rule XXVI of the Standing
Rules of the Senate, the following is a tabulation of votes
cast in person or by proxy by members of the Committee on
Veterans' Affairs at its August 5, 2010, meeting. The
Committee, by unanimous voice vote, ordered the Committee bill
reported favorably to the Senate, with an amendment in the
nature of a substitute.
Agency Report
On July 21, 2010, Keith M. Wilson, Director, Education
Service, Veterans Benefits Administration, Department of
Veterans Affairs, appeared before the Committee and submitted
testimony on S. 3447, among other issues. Excerpts from this
statement are reprinted below:
STATEMENT OF KEITH M. WILSON, DIRECTOR, EDUCATION SERVICE, DEPARTMENT
OF VETERANS AFFAIRS
Good morning, Mr. Chairman, Ranking Member Burr, and other
Members of the Committee. I am pleased to be here today to
provide the Department of Veterans Affairs' (VA) views on
several bills that would affect educational assistance benefits
for Veterans, Servicemembers, and their dependents--most
notably, S. 3447. I am accompanied today by Mr. John Brizzi of
VA's Office of the General Counsel.
Let me start by congratulating you, Mr. Chairman, and your
staff, as well as the many other Senators who have worked to
put forward legislation to make improvements to the educational
programs VA administers on behalf of our Nation's Veterans. The
Department appreciates your staff's consultation throughout the
entire process. Implementation of the historic Post-9/11 GI
Bill was, and is, a top priority for President Obama, Secretary
Shinseki, and the entire Department. Secretary Shinseki is
committed to making sure that all eligible student Veterans who
are interested receive the education benefits they earned in
defense of our Nation. Since inception of this historic new
program, VA has issued nearly $4.0 billion in Post-9/11 GI Bill
benefit payments to over 295,000 individuals and their
educational institutions.
S. 3447
Mr. Chairman, your bill--S. 3447, the ``Post-9/11 Veterans
Educational Assistance Improvements Act of 2010''--would
enhance certain provisions of the Post 9/11 GI Bill (chapter 33
of title 38, United States Code), as well as make improvements
in other VA educational assistance programs.
Under the Post-9/11 GI Bill, individuals with qualifying
periods of active duty of 36 months or more are eligible for
payment of tuition and fees up to the highest in-State public
school tuition for an undergraduate degree, monthly housing
allowances, and books and supplies stipends. Individuals with
less than 36 months of service are eligible, in general, for
the same benefits. However, their benefits are proportionately
lower (ranging from 90 percent to 40 percent) based on their
length of service. In addition, as a retention incentive, the
Department of Defense (DOD) may permit a member of the Armed
Forces to transfer all or a portion of his or her Post-9/11 GI
Bill benefits to a spouse and/or children. S. 3447 would amend
the Post-9/11 GI Bill by expanding eligibility for certain
individuals and by modifying the amount of assistance and types
of approved programs.
Section 2 of the bill would amend the eligibility criteria
under chapter 33 by modifying the definitions of qualified
active service performed by members of the Reserve and Guard.
The changes would: (1) clarify that Active Guard Reserve (AGR)
members serving under title 10, United States Code, ``for the
purposes of organizing, administering, recruiting, instructing,
or training the reserve components of the Armed Forces,'' are
covered, and provide that all other active service under title
10 must be in support of a contingency operation (as defined in
10 U.S.C. Sec. 101(a)); (2) extend coverage to include full-
time National Guard service under title 32, United States Code,
for the purposes of organizing, administering, recruiting,
instructing, or training the reserve components of the Armed
Forces; and (3) extend coverage to National Guard members
serving under section 502(f) of title 32 when ordered to active
service by the President or the Secretary of Defense for the
purpose of responding to a national emergency declared by the
President and supported by Federal funds.
This section also would clarify that an honorable discharge
would be required to establish eligibility under the Post-9/11
GI Bill in the case of an individual who is released from
active duty in the Armed Forces: (1) due to a medical condition
that preexisted service and that is not service-connected; (2)
for hardship; or (3) for a physical or mental condition that
was not characterized as a disability and did not result from
an individual's own willful misconduct, but did interfere with
the individual's performance of duty, as determined by the
Secretary concerned in accordance with regulations prescribed
by the Secretary of Defense.
Finally, section 2 would amend 38 U.S.C. Sec. 3311(d)(2) to
exclude attendance at the Coast Guard Academy as qualifying
service under the Post-9/11 GI Bill and expand the definition
of entry-level and skill training for the Army to include ``One
Station Unit Training.''
Because of their potential impact on military recruitment
and retention, VA respectfully defers to DOD and the Coast
Guard regarding the merits of the proposed changes to
qualifying active-service requirements. However, we note that
this section will generate PAYGO costs, which would require an
appropriate and acceptable offset.
We note that the amendments regarding qualifying title 10
service and extending coverage to Guard members under title 32,
United States Code, would be consistent with qualifying active
service under the Montgomery GI Bill (MGIB) and the Reserve
Educational Assistance Program (REAP). In addition, the
proposed amendment clarifying that certain service must result
in an honorable discharge, described above, is similar to the
honorable discharge requirements applicable to other covered
individuals. Last, the amendment excluding, as qualified active
service, attendance at the Coast Guard Academy is also similar
to existing provisions that exclude attendance at the other
military service academies.
Section 3 would modify the amount of educational assistance
payable in the following areas: With regard to tuition and fee
payments (which would still be subject to the 40-100 percent
payment tiers in 38 U.S.C. Sec. 3313(c)), for those enrolled in
a public institution of higher learning, VA would pay tuition-
and-fee benefits based on the charges reported. This would
include students enrolled in graduate programs and students
charged out-of-State tuition rates. For those enrolled in a
private or foreign institution of higher learning, VA would
base payment on the lesser of the charged tuition and fees or a
maximum tuition-and-fee cap. The maximum cap would be computed
based on figures obtained from the Department of Education's
National Center for Education Statistics. The figure used would
be the average of established charges at all institutions
(public and private) in the U.S. for a baccalaureate degree for
the most recent academic year.
With regard to housing stipends (which would still be
subject to 40-100 percent payment tiers in 38 U.S.C.
Sec. 3313(c)), for individuals enrolled in institutions of
higher learning in resident programs, the monthly housing
stipend would be prorated based on training time. For example,
a student training at the three-quarter-time rate would receive
three fourths of the monthly housing stipend rather than the
full monthly housing stipend. Students enrolled at foreign
institutions would be subjected to the same rule. However, if
the housing allowance based on training time is greater than
the national average basic housing allowance, VA would pay the
lesser amount. For students enrolled in a distance learning
program at more than the half-time rate, VA would pay 50
percent of the housing allowance otherwise payable.
Section 3 would also expand benefits to include payment for
enrollment in programs offered by vocational schools,
correspondence school-training establishments, on-the-job
training and apprenticeships, and flight schools. For those
individuals pursuing programs offered by vocational schools, VA
would pay the lesser of the established charges or a maximum
fee cap. That cap would be computed based on figures from the
Department of Education's National Center for Education
Statistics. The figure used would be the average of established
charges at all institutions (public and private) in the U.S.
for a baccalaureate degree for the most recent academic year.
In addition, VA would pay a monthly housing allowance based on
the military's basic allowance for housing (BAH) of an E-5 with
dependents based on the Zip Code of the institution.
For those individuals pursuing a program of apprenticeship/
on-the-job training, trainees would receive two monthly stipend
payments. One would be based on the military's basic allowance
for housing (BAH) for an E-5 with dependents. VA would pay the
lesser of the BAH rate for the Zip Code of the employer or the
national average of BAH rates. The other payment would be based
on one twelfth of the average established charges for tuition
and fees at all institutions (public and private) in the U.S.
for a baccalaureate degree for the most recent academic year.
The figure would be obtained from the National Center for
Education Statistics. Both payments would decrease over the
length of program. During the first six months of training, the
trainee would receive 75 percent of the monthly stipends.
During the second six months, the trainee would receive 55
percent of the monthly stipends. For the duration of the
program, the trainee would receive 35 percent of the monthly
stipends.
An individual pursuing a course of flight training would
receive assistance in an amount equal to the lesser of the
established charges for the program or 60 percent of the
average established charges for tuition and fees at all
institutions (public and private) in the U.S. for a
baccalaureate degree for the most recent academic year. The
figure would be obtained from the National Center for Education
Statistics.
An individual pursuing a program of education through
correspondence courses would receive educational assistance in
an amount equal to the lesser of the established charges for
the program or 55 percent of the average established charges
for tuition and fees at all institutions (public and private)
in the U.S. for a baccalaureate degree for the most recent
academic year. The figure would be obtained from the National
Center for Education Statistics. VA would charge one month of
entitlement for each month of assistance provided.
Finally, section 3 would provide for lump-sum payments for
books and supplies to Servicemembers using VA education
benefits while on active duty and to spouses using transferred
benefits while the servicemember is on active duty. The total
amount payable in an academic year would be $1,000.
VA supports streamlining the tuition-and-fee benefits for
students attending public institutions and establishing a
maximum payment cap for students attending private
institutions. The manner in which institutions assess charges
varies widely from State to State and from school to school. VA
also does not object to expansion of the program to permit
payment for vocational, flight, correspondence, and
apprenticeship or on-the-job training programs, subject to
Congress identifying appropriate and acceptable offsetting
PAYGO cost savings. However, we believe several technical
corrections to the bill as drafted would be necessary to enable
VA to administer this section properly. For example, it would
be beneficial to streamline the two monthly stipends payable to
an individual pursuing a program of on-the-job training or
apprenticeship into a single monthly benefit. In addition, as
drafted, the assistance proposed in section 3 for certain types
of courses at other than institutions of higher learning would
not be subject to the 40-100 percent tier levels that reflect
the length of an individual's qualifying active-duty service.
As a result, individuals pursuing programs of education under
the new provisions apparently would receive higher housing and
tuition benefits than students attending degree-granting
institutions. We would be pleased to work with the Committee to
address identified areas of concern.
Section 4 of S. 3447 would amend 38 U.S.C. Sec. 3315 to
permit individuals to take more than one licensure or
certification test. Currently, individuals are eligible to
receive a reimbursement of up to $2,000 for a single licensure
or certification test, with no charge being made to their Post-
9/11 GI Bill entitlement. As part of the amendment to section
3315, an individual's entitlement would be charged based on
each reimbursement made. VA would base the entitlement charge
on a dollar amount provided by the National Center for
Education Statistics (NCES) that represents the average
established charges for tuition and fees at all institutions
(public and private) in the U.S, for a baccalaureate degree for
the most recent academic year. VA would charge one month of
entitlement for each reimbursement equal to one twelfth of the
annual NCES figure. VA does not oppose this proposed amendment,
subject to the identification of appropriate and acceptable
PAYGO offsets for any resulting additional costs.
Section 5 of the bill would amend 38 U.S.C. Sec. 3316 to
provide that individuals eligible to receive supplemental
education assistance (i.e., ``reenlistment kickers'') under the
Montgomery GI Bill--Active Duty (MGIB-AD) or the Montgomery GI
Bill--Selected Reserve (MGIB-SR), would remain eligible for
such assistance if the individual elected to receive the Post-
9/11 GI Bill instead of the MGIB. The supplemental assistance
would be paid as an increase to the monthly housing allowance,
and based on the individual's benefit level. Thus, only
individuals eligible for a monthly housing stipend would be
eligible to receive such supplemental assistance. The
Department of Defense would reimburse VA for any supplemental
assistance paid. VA defers to DOD as to the merits of this
section.
Section 6 would authorize DOD to permit an individual to
transfer his or her entitlement to benefits under the Post-9/11
GI Bill after the individual is no longer a member of the Armed
Forces. Under current law, DOD must approve such a transfer
while the individual is still a member of the Armed Forces.
This section would also extend the transfer-of-entitlement
option to members of the Public Health Service and the National
Oceanic and Atmospheric Administration. In addition, this
amendment would require the Secretaries of Defense, Health and
Human Services, and Commerce to reimburse VA for the amounts VA
pays family members. Currently, VA is not reimbursed for
payments made to family members utilizing transferred benefits.
The Administration is still reviewing this section, and we will
provide written views once VA completes a cost estimate for the
entire bill.
Section 7 of the bill would amend 38 U.S.C. Sec. 3322(a) to
prevent individuals eligible for National Call to Service (NCS)
incentives and the Post-9/11 GI Bill from receiving payments
concurrently. VA supports this provision. However, we have
identified other areas of potential duplication of benefits,
and would be pleased to work with the Committee to include
language that would ensure against duplication of benefits.
Section 8 of the bill would amend 38 U.S.C. Sec. 3676(e) to
provide that VA may not approve non-accredited courses of
education pursued in whole or in part by distance learning.
This change would be similar to the existing rule for courses
of education pursued by independent study. This change is not
necessary because current definitions of resident training and
independent study in VA regulations encompass distance
learning. As a result, VA currently does not approve non-
accredited distance learning programs of education.
Nonetheless, we would not object to this amendment.
Section 9 of S. 3447 would amend 38 U.S.C. Sec. 3684(c),
which provides that VA may pay an annual reporting fee to any
educational institution that furnishes education or training
and submits reports or certifications to VA. Under current law,
the reporting fee is computed each calendar year by multiplying
$7 by the number of individuals enrolled in VA education and
Vocational Rehabilitation and Employment programs. In addition,
the law also provides for the payment of $11 for each
individual whose educational assistance checks are sent to a
school for temporary custody and delivery at the time of
registration. These amounts have not been increased since
October 1, 1977. Section 9 proposes to increase the respective
amounts for such payments from $7 to $12, and from $11 to $15.
VA does not object to the proposed increase in the
reporting fees, subject to Congress identifying appropriate
offsets. In addition, however, VA believes that section 3684(c)
should be further amended to include language requiring
educational institutions to use the reporting fees to support
Veteran programs and VA certifying-official activities.
Section 10 of the bill would amend 38 U.S.C. Sec. 3108(b)
to authorize Veterans pursuing a vocational rehabilitation
program under Chapter 31 to elect payment of an amount equal to
the national average of the monthly amount of basic allowance
for housing payable under section 403 of title 37 for a member
with dependents in pay grade E-5 in lieu of the subsistence
allowance payable under Chapter 31. We will provide written
views for the record regarding this section.
Section 11 of the bill would amend 38 U.S.C. Sec. 3680(a)
to remove VA's authority to make interval payments (payment
between breaks in terms, quarters, or semesters). This
amendment would apply to the Post-9/11 GI Bill, the Montgomery
GI Bill, the Reserve Educational Assistance Program, the
Survivors' and Dependents' Educational Assistance Program, and
the Vocational Rehabilitation and Employment program. However,
an exception would exist to make interval payments between
consecutive terms when a student changes schools and the break
does not exceed 30 days. VA does not support this amendment
because the interval payments are paid to the individuals to
help with their living expenses during breaks between
enrollment periods. Currently, a student is not eligible for
interval pay if the break is more than 8 weeks. Discontinuing
interval payment would mean a student would have to seek
employment during the break between fall and spring semester;
thus, we do not support this section as drafted. VA would be
pleased to work with the Committee to identify changes to
interval payment that would not result in a hardship to
students.
We note that the amendments proposed in S. 3447 would be
effective on the date of enactment of the Act. VA is working
aggressively on a new payment system to support the existing
Post-9/11 GI Bill provisions. Since we have concerns about
changes to the eligibility criteria impacting our current
efforts as well as our ability to implement the provisions
effective the date of enactment, we strongly recommend the
amendments made by this bill take effect no earlier than August
1, 2011.
* * * * * * *
Mr. Chairman, we will provide the Committee with our
estimate of the cost of enactment of S. 3447 for the record.
This concludes my statement, Mr. Chairman. I would be happy
to respond to any questions you or the other Members of the
Committee may have.
* * * * * * *
Changes in Existing Law
In compliance with rule XXVI paragraph 12 of the Standing
Rules of the Senate, changes in existing law made by the
Committee bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Title 10. Armed Forces
Subtitle A. General Military Law
* * * * * * *
Part III. Training and Education
Chapter 101. Training Generally
SEC. 2006. DEPARTMENT OF DEFENSE EDUCATION BENEFITS FUND
(a) * * *
(b) * * *
(1) The term ``armed forces education liabilities''
means liabilities of the armed forces for benefits
under chapter 30 or 33 of title 38 and for Department
of Defense benefits under paragraphs (3) and (4) of
section 510(e) and chapters 1606 and 1607 of this
title, including funds provided by the Secretary of
Homeland Security for education liabilities for the
Coast Guard when it is not operating as a service in
the Department of the Navy.
(2) * * *
* * * * * * *
(D) * * *
(E) The present value of any future benefits
payable from the Fund for amounts attributable
to increased amounts of educational assistance
authorized by section 3316 of title 38.
* * * * * * *
Title 38. Veterans' Benefits
* * * * * * *
Part III. Readjustment and Related Benefits
Chapter 30. All-Volunteer Force Educational
Assistance Program
* * * * * * *
Subchapter IV. Time Limitation for Use of Eligibility and Entitlement;
General and Administrative Provisions
SEC. 3031. TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT
* * * * * * *
[(d) In the case of an individual eligible for educational
assistance under this chapter--
[(1) who was prevented from pursuing such
individual's chosen program of education before the
expiration of the 10-year period for use of entitlement
under this chapter otherwise applicable under this
section because of a physical or mental disability
which was not the result of the individual's own
willful misconduct, and
[(2) who applies for an extension of such 10-year
period within one year after (A) the last day of such
period, or (B) the last day on which such individual
was so prevented from pursuing such program, whichever
is later,
[such 10-year period shall not run with respect to such
individual during the period of time that such individual was
so prevented from pursuing such program and such 10-year period
will again begin running on the first day following such
individual's recovery from such disability on which it is
reasonably feasible, as determined under regulations which the
Secretary shall prescribe, for such individual to initiate or
resume pursuit of a program of education with educational
assistance under this chapter.]
(d)(1) In the case of an individual eligible for
educational assistance under this chapter who is prevented from
pursuing the individual's chosen program of education before
the expiration of the 10-year period for the use of entitlement
under this chapter otherwise applicable under this section
because of a physical or mental disability which is not the
result of the individual's own willful misconduct, such 10-year
period--
(A) shall not run during the period the individual is
so prevented from pursuing such program; and
(B) shall again begin running on the first day after
the individual's recovery from such disability on which
it is reasonably feasible, as determined under
regulations prescribed by the Secretary, for the
individual to initiate or resume pursuit of a program
of education with educational assistance under this
chapter.
(2)(A) Subject to subparagraph (B), in the case of an
individual eligible for educational assistance under this
chapter who is prevented from pursuing the individual's chosen
program of education before the expiration of the 10-year
period for the use of entitlement under this chapter otherwise
applicable under this section by reason of acting as the
primary provider of personal care services for a veteran or
member of the Armed Forces under section 1720G(a) of this
title, such 10-year period--
(i) shall not run during the period the individual is
so prevented from pursuing such program; and
(ii) shall again begin running on the first day after
the date of the recovery of the veteran or member from
the injury, or the date on which the individual ceases
to be the primary provider of personal care services
for the veteran or member, whichever is earlier, on
which it is reasonably feasible, as so determined, for
the individual to initiate or resume pursuit of a
program of education with educational assistance under
this chapter.
(B) Subparagraph (A) shall not apply with respect to the
period of an individual as a primary provider of personal care
services if the period concludes with the revocation of the
individual's designation as such a primary provider under
section 1720G(a)(7)(D) of this title.
* * * * * * *
SEC. 3034. PROGRAM ADMINISTRATION
* * * * * * *
(d) * * *
(1) * * *
* * * * * * *
[(3) the flight school courses meet Federal Aviation
Administration standards for such courses and are
approved by the Federal Aviation Administration and the
State approving agency.]
(3) the flight school courses are approved by the
Federal Aviation Administration and are offered by a
certified pilot school that possesses a valid Federal
Aviation Administration pilot school certificate.
* * * * * * *
Chapter 31. Training and Rehabilitation for Veterans with Service-
Connected Disabilities
* * * * * * *
SEC. 3108. ALLOWANCES
* * * * * * *
(b)(1) * * *
* * * * * * *
(4) A veteran entitled to a subsistence allowance under
this chapter and educational assistance under chapter 33 of
this title may elect to receive payment from the Secretary in
lieu of an amount otherwise determined by the Secretary under
this subsection in an amount equal to the applicable monthly
amount of basic allowance for housing payable under section 403
of title 37 for a member with dependents in pay grade E-5
residing in the military housing area that encompasses all or
the majority portion of the ZIP code area in which is located
the institution providing rehabilitation program concerned.
* * * * * * *
Chapter 33. Post-9/11 Educational Assistance
SUBCHAPTER I. DEFINITIONS
SEC.
3301. DEFINITIONS.
SUBCHAPTER II. EDUCATIONAL ASSISTANCE
3311. EDUCATIONAL ASSISTANCE FOR SERVICE IN THE ARMED FORCES COMMENCING
ON OR AFTER SEPTEMBER 11, 2001: ENTITLEMENT.
* * * * * * *
3315. LICENSURE AND CERTIFICATION TESTS.
3315A. NATIONAL TESTS.
* * * * * * *
Subchapter I. Definitions
SEC. 3301. DEFINITIONS
In this chapter:
(1) * * *
(A) * * *
* * * * * * *
(C) In the case of a member of the Army
National Guard of the United States or Air
National Guard of the United States, in
addition to service described in subparagraph
(B), full-time service--
(i) in the National Guard of a State
for the purpose of organizing,
administering, recruiting, instructing,
or training the National Guard; or
(ii) in the National Guard under
section 502(f) of title 32 when
authorized by the President or the
Secretary of Defense for the purpose of
responding to a national emergency
declared by the President and supported
by Federal funds.
(2) The term ``entry level and skill training'' means
the following:
(A) In the case of members of the Army, Basic
Combat Training and Advanced Individual
Training or One Station Unit Training.
* * * * * * *
(E) In the case of members of the Coast
Guard, Basic Training and Skill Training (or
so-called ``A'' School).
* * * * * * *
Subchapter II. Educational Assistance
SEC. 3311. EDUCATIONAL ASSISTANCE FOR SERVICE IN THE ARMED FORCES
COMMENCING ON OR AFTER SEPTEMBER 11, 2001:
ENTITLEMENT
* * * * * * *
(c) * * *
* * * * * * *
(4) [A discharge or release from active duty in the
Armed Forces] A discharge or release from active duty
in the Armed Forces after service on active duty in the
Armed Forces characterized by the Secretary concerned
as honorable service for--
* * * * * * *
(d) * * *
* * * * * * *
(2) A period of service on active duty of an officer
pursuant to an agreement under section 4348, 6959, or
9348 of title 10 or section 182 of title 14.
* * * * * * *
SEC. 3313. EDUCATIONAL ASSISTANCE: AMOUNT; PAYMENT
(a) * * *
(b) Approved Programs of Education.--A program of education
is an approved program of education for purposes of this
chapter if the program of education [is offered by an
institution of higher learning (as that term is defined in
section 3452(f)) and] is approved for purposes of chapter 30
(including approval by the State approving agency concerned).
(c) [Amount of Educational Assistance.] Programs of
Education Leading to a Degree Pursued at Institutions of Higher
Learning on More Than Half-time Basis.--The amounts payable
under this subsection for pursuit of an approved program of
education leading to a degree at an institution of higher
learning (as that term is defined in section 3452(f)) are
amounts as follows:
(1) In the case of an individual entitled to
educational assistance under this chapter by reason of
section 3311(b)(1) or 3311(b)(2), amounts as follows:
[(A) An amount equal to the established
charges for the program of education, except
that the amount payable under this subparagraph
may not exceed the maximum amount of
established charges regularly charged in-State
students for full-time pursuit of approved
programs of education for undergraduates by the
public institution of higher education offering
approved programs of education for
undergraduates in the State in which the
individual is enrolled that has the highest
rate of regularly-charged established charges
for such programs of education among all public
institutions of higher education in such State
offering such programs of education.]
(A) An amount equal to the following:
(i) In the case of a program of
education pursued at a public
institution of higher learning, the
actual net cost for in-State tuition
and fees assessed by the institution
for the program of education after the
application of--
(I) any waiver of, or
reduction in, tuition and fees;
and
(II) any scholarship, or
other Federal, State,
institutional, or employer-
based aid or assistance (other
than loans and any funds
provided under section 401(b)
of the Higher Education Act of
1965 (20 U.S.C. 1070a)) that is
provided directly to the
institution and specifically
designated for the sole purpose
of defraying tuition and fees.
(ii) In the case of a program of
education pursued at a non-public or
foreign institution of higher learning,
the lesser of--
(I) the actual net cost for
tuition and fees assessed by
the institution for the program
of education after the
application of--
(aa) any waiver of,
or reduction in,
tuition and fees; and
(bb) any scholarship,
or other Federal,
State, institutional,
or employer-based aid
or assistance (other
than loans and any
funds provided under
section 401(b) of the
Higher Education Act of
1965) that is provided
directly to the
institution and
specifically designated
for the sole purpose of
defraying tuition and
fees; or
(II) the amount equal to--
(aa) for the academic
year beginning on
August 1, 2011,
$20,000; or
(bb) for an academic
year beginning on any
subsequent August 1,
the amount for the
previous academic year
beginning on August 1
under this subclause,
as increased by the
percentage increase
equal to the most
recent percentage
increase determined
under section 3015(h).
(B) A monthly stipend in an amount as
follows:
[(i) For each month the individual
pursues the program of education (other
than, in the case of assistance under
this section only, a program of
education offered through distance
learning), a monthly housing stipend
amount equal to the monthly amount of
the basic allowance for housing payable
under section 403 of title 37 for a
member with dependents in pay grade E-5
residing in the military housing area
that encompasses all or the majority
portion of the ZIP code area in which
is located the institution of higher
education at which the individual is
enrolled.]
(i) Except as provided in clauses
(ii) and (iii), for each month an
individual pursues a program of
education on more than a half-time
basis, a monthly housing stipend equal
to the product of--
(I) the monthly amount of the
basic allowance for housing
payable under section 403 of
title 37 for a member with
dependents in pay grade E-5
residing in the military
housing area that encompasses
all or the majority portion of
the ZIP code area in which is
located the institution of
higher learning at which the
individual is enrolled,
multiplied by
(II) the lesser of--
(aa) 1.0; or
(bb) the number of
course hours borne by
the individual in
pursuit of the program
of education, divided
by the minimum number
of course hours
required for full-time
pursuit of the program
of education, rounded
to the nearest multiple
of 10.
(ii) In the case of an individual
pursuing a program of education at a
foreign institution of higher learning
on more than a half-time basis, for
each month the individual pursues the
program of education, a monthly housing
stipend equal to the product of--
(I) the national average of
the monthly amount of the basic
allowance for housing payable
under section 403 of title 37
for a member with dependents in
pay grade E-5, multiplied by
(II) the lesser of--
(aa) 1.0; or
(bb) the number of
course hours borne by
the individual in
pursuit of the program
of education, divided
by the minimum number
of course hours
required for full-time
pursuit of the program
of education, rounded
to the nearest multiple
of 10.
(iii) In the case of an individual
pursuing a program of education solely
through distance learning on more than
a half-time basis, a monthly housing
stipend equal to 50 percent of the
amount payable under clause (ii) if the
individual were otherwise entitled to a
monthly housing stipend under that
clause for pursuit of the program of
education.
(iv) [(ii)] * * *
* * * * * * *
(e) [Programs of Education Pursued on Active Duty]Programs
of Education Leading to a Degree Pursued on Active Duty on More
Than Half-time Basis.--
(1) In general.--Educational assistance is payable
under this chapter for pursuit of an approved program
of education leading to a degree while on active duty.
(2) Amount of assistance.--[The amount] The amounts
of educational assistance payable under this chapter to
an individual pursuing a program of education leading
to a degree while on active duty [is the lesser of--]
are as follows:
[(i) [(A)] the established charges which
similarly circumstanced nonveterans enrolled in
the program of education involved would be
required to pay; or]
(A) Subject to subparagraph (C), an amount
equal to the lesser of--
(i) the actual net cost for in-State
tuition and fees assessed by the
institution of higher learning for the
program of education after the
application of--
(I) any waiver of, or
reduction in, tuition and fees;
and
(II) any scholarship, or
other Federal, State,
institutional, or employer-
based aid or assistance (other
than loans and any funds
provided under section 401(b)
of the Higher Education Act of
1965 (20 U.S.C. 1070a)) that is
provided directly to the
institution and specifically
designated for the sole purpose
of defraying tuition and fees;
(ii) the amount equal to--
(I) for the academic year
beginning on August 1, 2011,
$20,000; or
(II) for an academic year
beginning on any subsequent
August 1, the amount for the
previous academic year
beginning on August 1 under
this clause, as increased by
the percentage increase equal
to the most recent percentage
increase determined under
section 3015(h); or
(iii) [(B)] the amount of the charges
of the educational institution as
elected by the individual in the manner
specified in section 3014(b)(1)[.]
(B) Subject to subparagraph (C), for the
first month of each quarter, semester, or term,
as applicable, of the program of education
pursued by the individual, a lump sum amount
for books, supplies, equipment, and other
educational costs with respect to such quarter,
semester, or term in the amount equal to--
(i) $1,000, multiplied by
(ii) the fraction of a complete
academic year under the program of
education that such quarter, semester,
or term constitutes.
(C) In the case of an individual entitled to
educational assistance by reason of paragraphs
(3) through (8) of section 3311(b), the amounts
payable to the individual pursuant to
subparagraphs (A)(i), (A)(ii), and (B) shall be
the amounts otherwise determined pursuant to
such subparagraphs multiplied by the same
percentage applicable to the monthly amounts
payable to the individual under paragraphs (2)
through (7) of subsection (c).
* * * * * * *
(f) Programs of Education Pursued on Half-Time Basis or
Less.--
(1) In general.--Educational assistance is payable
under this chapter for pursuit of an approved program
of education on half-time basis or less whether a
program of education pursued on active duty, a program
of education leading to a degree, or a program of
education other than a program of education leading to
a degree.
(2) Amount of assistance.--The educational assistance
payable under this chapter to an individual pursuing a
program of education covered by this subsection on
half-time basis or less is the amounts as follows:
(A) The amount equal to the lesser of--
[(i) the established charges which
similarly circumstanced nonveterans
enrolled in the program of education
involved would be required to pay; or]
(i) the actual net cost for in-State
tuition and fees assessed by the
institution of higher learning for the
program of education after the
application of--
(I) any waiver of, or
reduction in, tuition and fees;
and
(II) any scholarship, or
other Federal, State,
institutional, or employer-
based aid or assistance (other
than loans and any funds
provided under section 401(b)
of the Higher Education Act of
1965 (20 U.S.C. 1070a)) that is
provided directly to the
institution and specifically
designated for the sole purpose
of defraying tuition and fees;
or
* * * * * * *
(g) Programs of Education Other Than Programs of Education
Leading to a Degree.--
(1) In general.--Educational assistance is payable
under this chapter for pursuit of an approved program
of education other than a program of education leading
to a degree at an institution other than an institution
of higher learning (as that term is defined in section
3452(f)).
(2) Pursuit on half-time basis or less.--The payment
of educational assistance under this chapter for
pursuit of a program of education otherwise described
in paragraph (1) on a half-time basis or less is
governed by subsection (f).
(3) Amount of assistance.--The amounts of educational
assistance payable under this chapter to an individual
entitled to educational assistance under this chapter
who is pursuing an approved program of education
covered by this subsection are as follows:
(A) In the case of an individual enrolled in
a program of education (other than a program
described in subparagraphs (B) through (D)) in
pursuit of a certificate or other non-college
degree, the following:
(i) Subject to clause (iv), an amount
equal to the lesser of--
(I) the actual net cost for
in-State tuition and fees
assessed by the institution
concerned for the program of
education after the application
of--
(aa) any waiver of,
or reduction in,
tuition and fees; and
(bb) any scholarship,
or other Federal,
State, institutional,
or employer-based aid
or assistance (other
than loans and any
funds provided under
section 401(b) of the
Higher Education Act of
1965 (20 U.S.C. 1070a))
that is provided
directly to the
institution and
specifically designated
for the sole purpose of
defraying tuition and
fees; or
(II) the amount equal to--
(aa) for the academic
year beginning on
August 1, 2011,
$20,000; or
(bb) for an academic
year beginning on any
subsequent August 1,
the amount for the
previous academic year
beginning on August 1
under this subclause,
as increased by the
percentage increase
equal to the most
recent percentage
increase determined
under section 3015(h).
(ii) Except in the case of an
individual pursuing a program of
education on a half-time or less basis
and subject to clause (iv), a monthly
housing stipend equal to the product--
(I) of--
(aa) in the case of
an individual pursuing
resident training, the
monthly amount of the
basic allowance for
housing payable under
section 403 of title 37
for a member with
dependents in pay grade
E-5 residing in the
military housing area
that encompasses all or
the majority portion of
the ZIP code area in
which is located the
institution at which
the individual is
enrolled; or
(bb) in the case of
an individual pursuing
a program of education
through distance
learning, a monthly
amount equal to 50
percent of the amount
payable under item
(aa), multiplied by
(II) the lesser of--
(aa) 1.0; or
(bb) the number of
course hours borne by
the individual in
pursuit of the program
of education involved,
divided by the minimum
number of course hours
required for full-time
pursuit of such program
of education, rounded
to the nearest multiple
of 10.
(iii) Subject to clause (iv), a
monthly stipend in an amount equal to
$83 for each month (or pro rata amount
for a partial month) of training
pursued for books supplies, equipment,
and other educational costs.
(iv) In the case of an individual
entitled to educational assistance by
reason of paragraphs (3) through (8) of
section 3311(b), the amounts payable
pursuant to clauses (i), (ii), and
(iii) shall be the amounts otherwise
determined pursuant to such clauses
multiplied by the same percentage
applicable to the monthly amounts
payable to the individual under
paragraphs (2) through (7) of
subsection (c).
(B) In the case of an individual pursuing a
full-time program of apprenticeship or other
on-job training, amounts as follows:
(i) Subject to clauses (iii) and
(iv), for each month the individual
pursues the program of education, a
monthly housing stipend equal to--
(I) during the first six-
month period of the program,
the monthly amount of the basic
allowance for housing payable
under section 403 of title 37
for a member with dependents in
pay grade E-5 residing in the
military housing area that
encompasses all or the majority
portion of the ZIP code area in
which is located the employer
at which the individual pursues
such program;
(II) during the second six-
month period of the program, 80
percent of the monthly amount
of the basic allowance for
housing payable as described in
subclause (I);
(III) during the third six-
month period of the program, 60
percent of the monthly amount
of the basic allowance for
housing payable as described in
subclause (I);
(IV) during the fourth six-
month period of such program,
40 percent of the monthly
amount of the basic allowance
for housing payable as
described in subclause (I); and
(V) during any month after
the first 24 months of such
program, 20 percent of the
monthly amount of the basic
allowance for housing payable
as described in subclause (I).
(ii) Subject to clauses (iii) and
(iv), a monthly stipend in an amount
equal to $83 for each month (or pro
rata amount for each partial month) of
training pursued for books supplies,
equipment, and other educational costs.
(iii) In the case of an individual
entitled to educational assistance by
reason of paragraphs (3) through (8) of
sections 3311(b), the amounts payable
pursuant to clauses (i) and (ii) shall
be the amounts otherwise determined
pursuant to such clauses multiplied by
the same percentage applicable to the
monthly amounts payable to the
individual under paragraphs (2) through
(7) of subsection (c).
(iv) In any month in which an
individual pursuing a program of
education consisting of a program of
apprenticeship or other on-job training
fails to complete 120 hours of
training, the amount of monthly
educational assistance allowance
payable under clauses (i) and (iii) to
the individual shall be limited to the
same proportion of the applicable rate
determined under this subparagraph as
the number of hours worked during such
month, rounded to the nearest eight
hours, bears to 120 hours.
(C) In the case of an individual enrolled in
a program of education consisting of flight
training (regardless of the institution
providing such program of education), an amount
equal to--
(i) the lesser of--
(I) the actual net cost for
in-State tuition and fees
assessed by the institution
concerned for the program of
education after the application
of--
(aa) any waiver of,
or reduction in,
tuition and fees; and
(bb) any scholarship,
or other Federal,
State, institutional,
or employer-based aid
or assistance (other
than loans and any
funds provided under
section 401(b) of the
Higher Education Act of
1965) that is provided
directly to the
institution and
specifically designated
for the sole purpose of
defraying tuition and
fees; or
(II) the amount equal to--
(aa) for the academic
year beginning on
August 1, 2011,
$12,000; or
(bb) for an academic
year beginning on any
subsequent August 1,
the amount for the
previous academic year
beginning on August 1
under this subclause,
as increased by the
percentage increase
equal to the most
recent percentage
increase determined
under section 3015(h),
multiplied by--
(ii) either--
(I) in the case of an
individual entitled to
educational assistance by
reason of paragraphs (1), (2),
or (9) of section 3311(b), 100
percent; or
(II) in the case of an
individual entitled to
educational assistance by
reason of paragraphs (3)
through (8) of section 3311(b),
the same percentage as would
otherwise apply to the monthly
amounts payable to the
individual under paragraphs (2)
through (7) of subsection (c).
(D) In the case of an individual enrolled in
a program of education that is pursued
exclusively by correspondence (regardless of
the institution providing such program of
education), an amount equal to--
(i) the lesser of--
(I) the actual net cost for
tuition and fees assessed by
the institution concerned for
the program of education after
the application of--
(aa) any waiver of,
or reduction in,
tuition and fees; and
(bb) any scholarship,
or other Federal,
State, institutional,
or employer-based aid
or assistance (other
than loans and any
funds provided under
section 401(b) of the
Higher Education Act of
1965) that is provided
directly to the
institution and
specifically designated
for the sole purpose of
defraying tuition and
fees.
(II) the amount equal to--
(aa) for the academic
year beginning on
August 1, 2011,
$10,000; or
(bb) for an academic
year beginning on any
subsequent August 1,
the amount for the
previous academic year
beginning on August 1
under this subclause,
as increased by the
percentage increase
equal to the most
recent percentage
increase determined
under section 3015(h),
multiplied by--
(ii) either--
(I) in the case of an
individual entitled to
educational assistance by
reason of paragraphs (1), (2),
or (9) of section 3311(b), 100
percent; or
(II) in the case of an
individual entitled to
educational assistance by
reason of paragraphs (3)
through (8) of section 3311(b),
the same percentage as would
otherwise apply to the monthly
amounts payable to the
individual under paragraphs (2)
through (7) of subsection (c).
(4) Frequency of payment.--
(A) Quarter, semester, or term payments.--
Payment of the amounts payable under paragraph
(3)(A)(i) for pursuit of a program of education
shall be made for the entire quarter, semester,
or term, as applicable, of the program of
education.
(B) Monthly payments.--Payment of the amounts
payable under paragraphs (3)(A)(ii) and
(3)(B)(i) for pursuit of a program of education
shall be made on a monthly basis.
(C) Lump sum payments.--
(i) Payment for the amount payable
under paragraphs (3)(A)(iii) and
(3)(B)(ii) shall be paid to the
individual for the first month of each
quarter, semester, or term, as
applicable, of the program education
pursued by the individual.
(ii) Payment of the amount payable
under paragraph (3)(C) for pursuit of a
program of education shall be made upon
receipt of certification for training
completed by the individual and
serviced by the training facility.
(D) Quarterly payments.--Payment of the
amounts payable under paragraph (3)(D) for
pursuit of a program of education shall be made
quarterly on a pro rata basis for the lessons
completed by the individual and serviced by the
institution.
(5) Charge against entitlement for certificate and
other non-college degree programs.--
(A) In general.--In the case of amounts paid
under paragraph (3)(A)(i) for pursuit of a
program of education, the charge against
entitlement to educational assistance under
this chapter of the individual for whom such
payment is made shall be one month for each
of--
(i) the amount so paid, divided by
(ii) subject to subparagraph (B), the
amount equal to one-twelfth of the
amount applicable in the academic year
in which the payment is made under
paragraph (3)(A)(i)(II).
(B) Pro rata adjustment based on certain
eligibility.--If the amount otherwise payable
with respect to an individual under paragraph
(3)(A)(i) is subject to a percentage adjustment
under paragraph (3)(A)(iv), the amount
applicable with respect to the individual under
subparagraph (A)(ii) shall be the amount
otherwise determined pursuant to such
subparagraph subject to a percentage adjustment
equal to the percentage adjustment applicable
with respect to the individual under paragraph
(3)(A)(iv).
[(h) Established Charges Defined.--
[(1) In general.--In this section, the term
``established charges'', in the case of a program of
education, means the actual charges (as determined
pursuant to regulations prescribed by the Secretary)
for tuition and fees which similarly circumstanced
nonveterans enrolled in the program of education would
be required to pay.
[(2) Basis of determination.--Established charges
shall be determined for purposes of this subsection on
the following basis:
[(A) In the case of an individual enrolled in
a program of education offered on a term,
quarter, or semester basis, the tuition and
fees charged the individual for the term,
quarter, or semester.
[(B) In the case of an individual enrolled in
a program of education not offered on a term,
quarter, or semester basis, the tuition and
fees charged the individual for the entire
program of education.]
(h) [(g)] Payment of Established Charges to Educational
Institutions.--Amounts payable under subsections (c)(1)(A) (and
of similar amounts payable under paragraphs (2) through (7) of
subsection (c)), (e)(2), and (f)(2)(A), and under subparagraphs
(A)(i), (C), and (D) of subsection (g)(3), shall be paid
directly to the educational institution concerned.
(i) Determination of Housing Stipend Payments for Academic
Years.--Any monthly housing stipend payable under this section
during the academic year beginning on August 1 of a calendar
year shall be determined utilizing rates for basic allowances
for housing payable under section 403 of title 37 in effect as
of January 1 of such calendar year.
* * * * * * *
SEC. 3315. LICENSURE AND CERTIFICATION TESTS
(a) In General.--An individual entitled to educational
assistance under this chapter shall also be entitled to payment
for [one licensing or certification test] licensing or
certification tests described in section 3452(b).
(b) Limitation on Amount.--The amount payable under
subsection (a) for a licensing or certification test may not
exceed the lesser of--
(1) $2,000; [or]
(2) the fee charged for the test[.] ; or
(3) the amount of entitlement available to the
individual under this chapter at the time of payment
for the test under this section.
[(c) No Charge Against Entitlement.--Any amount paid an
individual under subsection (a) is in addition to any other
educational assistance benefits provided the individual under
this chapter.]
(c) Charge Against Entitlement.--The charge against an
individual's entitlement under this chapter for payment for a
licensing or certification test shall be determined at the rate
of one month (rounded to the nearest whole month) for each
amount paid that equals--
(1) for the academic year beginning on August 1,
2011, $1,667; or
(2) for an academic year beginning on any subsequent
August 1, the amount for the previous academic year
beginning on August 1 under this subsection, as
increased by the percentage increase equal to the most
recent percentage increase determined under section
3015(h).
SEC. 3315A. NATIONAL TESTS
(a) In General.--An individual entitled to educational
assistance under this chapter shall also be entitled to
educational assistance for the following:
(1) A national test for admission to an institution
of higher learning as described in the last sentence of
section 3452(b).
(2) A national test providing an opportunity for
course credit at an institution of higher learning as
so described.
(b) Amount.--The amount of educational assistance payable
under this chapter for a test described in subsection (a) is
the lesser of--
(1) the fee charged for the test; or
(2) the amount of entitlement available to the
individual under this chapter at the time of payment
for the test under this section.
(c) Charge Against Entitlement.--The number of months of
entitlement charged an individual under this chapter for a test
described in subsection (a) shall be determined at the rate of
one month (rounded to the nearest whole month) for each amount
paid that equals--
(1) for the academic year beginning on August 1,
2011, $1,667; or
(2) for an academic year beginning on any subsequent
August 1, the amount for the previous academic year
beginning on August 1 under this subsection, as
increased by the percentage increase equal to the most
recent percentage increase determined under section
3015(h).
SEC. 3316. SUPPLEMENTAL EDUCATIONAL ASSISTANCE: MEMBERS WITH CRITICAL
SKILLS OR SPECIALTY; MEMBERS SERVING ADDITIONAL
SERVICE
(a) * * *
* * * * * * *
(c) Continuation of Increased Educational Assistance.--
(1) In general.--An individual who made an election
to receive educational assistance under this chapter
pursuant to section 5003(c)(1)(A) of the Post-9/11
Veterans Educational Assistance Act of 2008 (38 U.S.C.
3301 note) and who, at the time of the election, was
entitled to increased educational assistance under
section 3015(d) or section 16131(i) of title 10 shall
remain entitled to increased educational assistance in
the utilization of the individual's entitlement to
educational assistance under this chapter.
(2) Rate.--The monthly rate of increased educational
assistance payable to an individual under paragraph (1)
shall be--
(A) the rate of educational assistance
otherwise payable to the individual under
section 3015(d) or section 16131(i) of title
10, as the case may be, had the individual not
made the election described in paragraph (1),
multiplied by
(B) the lesser of--
(i) 1.0; or
(ii) the number of course hours borne
by the individual in pursuit of the
program of education involved divided
by the minimum number of course hours
required for full-time pursuit of the
program of education, rounded to the
nearest multiple of 10.
(3) Frequency of payment.--Payment of the amounts
payable under paragraph (1) during pursuit of a program
of education shall be made on a monthly basis.
(d) Funding.--Payments for increased educational assistance
under this section shall be made from the Department of Defense
Education Benefits Fund under section 2006 of title 10 or from
appropriations available to the Department of Homeland Security
for that purpose, as applicable.
(e) [(c)] Regulations.--The Secretaries concerned shall
administer this section in accordance with such regulations as
the Secretary of Defense shall prescribe.
* * * * * * *
SEC. 3319. AUTHORITY TO TRANSFER UNUSED EDUCATION BENEFITS TO FAMILY
MEMBERS
(a) In General.--[Subject to the provisions of this
section, the Secretary of Defense may authorize the Secretary
concerned, to promote recruitment and retention of members of
the Armed Forces, to permit] (1) Subject to the provisions of
this section, the Secretary concerned may permit an individual
described in subsection (b) who is entitled to educational
assistance under this chapter to elect to transfer to one or
more of the dependents specified in subsection (c) a portion of
such individual's entitlement to such assistance, subject to
the limitation under subsection (d).
(2) The purpose of the authority in paragraph (1) is to
promote recruitment and retention in the uniformed services.
The Secretary concerned may exercise the authority for that
purpose when authorized by the Secretary of Defense in the
national security interests of the United States.
(b) Eligible Individuals.--An individual referred to in
subsection (a) is any member of the [Armed Forces] uniformed
services who, at the time of the approval of the individual's
request to transfer entitlement to educational assistance under
this section, has completed at least--
(1) six years of service in the armed forces and
enters into an agreement to serve at least four more
years as a member of the [Armed Forces] uniformed
services; or
(2) the years of service as determined in regulations
pursuant [to section (k)] to subsection (j).
* * * * * * *
(h) * * *
(1) * * *
* * * * * * *
[(5) Limitation on age of use by child transferees.--
A child to whom entitlement is transferred under this
section may use the benefit without regard to the 15-
year delimiting date, but may not use any entitlement
so transferred after attaining the age of 26 years.]
(5) Limitation on age of use by child transferees.--
(A) In general.--A child to whom entitlement
is transferred under this section may use the
benefits transferred without regard to the 15-
year delimiting date specified in section 3321,
but may not, except as provided in subparagraph
(B), use any benefits so transferred after
attaining the age of 26 years.
(B) Primary caregivers of seriously injured
members of the armed forces and veterans.--
(i) In general.--Subject to clause
(ii), in the case of a child who,
before attaining the age of 26 years,
is prevented from pursuing a chosen
program of education by reason of
acting as the primary provider of
personal care services for a veteran or
member of the Armed Forces under
section 1720G(a), the child may use the
benefits beginning on the date
specified in clause (iii) for a period
whose length is specified in clause
(iv).
(ii) Inapplicability for
revocation.--Clause (i) shall not apply
with respect to the period of an
individual as a primary provider of
personal care services if the period
concludes with the revocation of the
individual's designation as such a
primary provider under section
1720G(a)(7)(D).
(iii) Date for commencement of use.--
The date specified in this clause for
the beginning of the use of benefits by
a child under clause (i) is the later
of--
(I) the date on which the
child ceases acting as the
primary provider of personal
care services for the veteran
or member concerned as
described in clause (i);
(II) the date on which it is
reasonably feasible, as
determined under regulations
prescribed by the Secretary,
for the child to initiate or
resume the use of benefits; or
(III) the date on which the
child attains the age of 26
years.
(iv) Length of use.--The length of
the period specified in this clause for
the use of benefits by a child under
clause (i) is the length equal to the
length of the period that--
(I) begins on the date on
which the child begins acting
as the primary provider of
personal care services for the
veteran or member concerned as
described in clause (i); and
(II) ends on the later of--
(aa) the date on
which the child ceases
acting as the primary
provider of personal
care services for the
veteran or member as
described in clause
(i); or
(bb) the date on
which it is reasonably
feasible, as so
determined, for the
child to initiate or
resume the use of
benefits.
* * * * * * *
[(k) Secretary Concerned Defined.--Notwithstanding section
101(25), in this section, the term ``Secretary concerned''
means--
[(1) the Secretary of the Army with respect to
matters concerning the Army;
[(2) the Secretary of the Navy with respect to
matters concerning the Navy or the Marine Corps;
[(3) the Secretary of the Air Force with respect to
matters concerning the Air Force; and
[(4) the Secretary of Defense with respect to matters
concerning the Coast Guard, or the Secretary of
Homeland Security when it is not operating as a service
in the Navy.]
Subchapter III. Administrative Provisions
* * * * * * *
SEC. 3322. BAR TO DUPLICATION OF EDUCATIONAL ASSISTANCE BENEFITS
(a) In General.--An individual entitled to educational
assistance under this chapter who is also eligible for
educational assistance under chapter 30, 31, 32, or 35 of this
title, chapter 107, 1606, or 1607 or section 510 of title 10,
or the provisions of the Hostage Relief Act of 1980 (Public Law
96-449; 5 U.S.C. 5561 note) may not receive assistance under
two or more such programs concurrently, but shall elect (in
such form and manner as the Secretary may prescribe) under
which chapter or provisions to receive educational assistance.
* * * * * * *
(e) Bar To Concurrent Receipt of Transferred Education
Benefits and Marine Gunnery Sergeant John David Fry Scholarship
Assistance.--An individual entitled to educational assistance
under both sections 3311(b)(9) and 3319 may not receive
assistance under both provisions concurrently, but shall elect
(in such form and manner as the Secretary may prescribe) under
which provision to receive educational assistance.
(f) Bar To Receipt of Compensation and Pension and Marine
Gunnery Sergeant John David Fry Scholarship Assistance.--The
commencement of a program of education under section 3311(b)(9)
shall be a bar to the following:
(1) Subsequent payments of dependency and indemnity
compensation or pension based on the death of a parent
to an eligible person over the age of 18 years by
reason of pursuing a course in an educational
institution.
(2) Increased rates, or additional amounts, of
compensation, dependency and indemnity compensation, or
pension because of such a person, whether eligibility
is based upon the death of the parent.
(g) Bar To Concurrent Receipt of Transferred Education
Benefits.--A spouse or child who is entitled to educational
assistance under this chapter based on a transfer of
entitlement from more than one individual under section 3319
may not receive assistance based on transfers from more than
one such individual concurrently, but shall elect (in such form
and manner as the Secretary may prescribe) under which source
to utilize such assistance at any one time.
(h) Bar To Duplication of Eligibility Based on a Single
Event or Period of Service.--
(1) Active-duty service.--An individual with
qualifying service in the Armed Forces that establishes
eligibility on the part of such individual for
educational assistance under this chapter, chapter 30
or 32 of this title, and chapter 1606 or 1607 of title
10, shall elect (in such form and manner as the
Secretary may prescribe) under which authority such
service is to be credited.
(2) Eligibility for educational assistance based on
parent's service.--A child of a member of the Armed
Forces who, on or after September 11, 2001, dies in the
line of duty while serving on active duty, who is
eligible for educational assistance under either
section 3311(b)(9) or chapter 35 of this title based on
the parent's death may not receive such assistance
under both this chapter and chapter 35 of this title,
but shall elect (in such form and manner as the
Secretary may prescribe) under which chapter to receive
such assistance.
SEC. 3323. ADMINISTRATION
(a) In General.--
(1) In general.--Except as otherwise provided in this
chapter, the provisions specified in [section
3034(a)(1)] sections 3034(a)(1) and 3680(c) shall apply
to the provision of educational assistance under this
chapter.
* * * * * * *
Chapter 35. Survivors' and Dependents' Educational Assistance
* * * * * * *
Subchapter II. Eligibility and Entitlement
SEC. 3510. ELIGIBILITY AND ENTITLEMENT GENERALLY.
* * * * * * *
SEC. 3512. PERIODS OF ELIGIBILITY.
(a) * * *
* * * * * * *
[(c) Notwithstanding the provisions of subsection (a) of
this section, an eligible person may be afforded educational
assistance beyond the age limitation applicable to such person
under such subsection if (1) such person suspends pursuit of
such person's program of education after having enrolled in
such program within the time period applicable to such person
under such subsection, (2) such person is unable to complete
such program after the period of suspension and before
attaining the age limitation applicable to such person under
such subsection, and (3) the Secretary finds that the
suspension was due to conditions beyond the control of such
person; but in no event shall educational assistance be
afforded such person by reason of this subsection beyond the
age limitation applicable to such person under subsection (a)
of this section plus a period of time equal to the period such
person was required to suspend the pursuit of such person's
program, or beyond such person's thirty-first birthday,
whichever is earlier.]
(c)(1) Notwithstanding subsection (a) and subject to
paragraph (2), an eligible person may be afforded educational
assistance beyond the age limitation applicable to the person
under such subsection if--
(A) the person suspends pursuit of such person's
program of education after having enrolled in such
program within the time period applicable to such
person under such subsection;
(B) the person is unable to complete such program
after the period of suspension and before attaining the
age limitation applicable to the person under such
subsection; and
(C) the Secretary finds that the suspension was due
to either of the following:
(i) The actions of the person as the primary
provider of personal care services for a
veteran or member of the Armed Forces under
section 1720G(a) of this title.
(ii) Conditions otherwise beyond the control
of the person.
(2) Paragraph (1) shall not apply with respect to the
period of an individual as a primary provider of personal care
services if the period concludes with the revocation of the
individual's designation as such a primary provider under
section 1720G(a)(7)(D) of this title.
(3) Educational assistance may not be afforded a person
under paragraph (1) after the earlier of--
(A) the age limitation applicable to the person under
subsection (a), plus a period of time equal to the
period the person was required to suspend pursuit of
the person's program of education as described in
paragraph (1); or
(B) the date of the person's thirty-first birthday.
* * * * * * *
Chapter 36. Administration of Educational Benefits
Subchapter I. State Approving Agencies
SEC. 3670. SCOPE OF APPROVAL
* * * * * * *
SEC. 3671. DESIGNATION
(a) * * *
(b)(1) * * *
(2) [In the case] Except as otherwise provided in
this chapter, in the case of courses subject to
approval by the Secretary under section 3672 of this
title, the provisions of this chapter which refer to a
State approving agency shall be deemed to refer to the
Secretary.
SEC. 3672. APPROVAL OF COURSES
(a) * * *
(b)(1) The Secretary shall be responsible for the approval
of courses of education offered by any agency of the Federal
Government authorized under other laws to supervise such
education. The Secretary may approve any course in any other
educational institution in accordance with the provisions of
this chapter and chapters 34 and 35 of this title.
(2)(A) Subject to sections 3675(b)(1) and (b)(2), 3680A,
3684, and 3696 of this title, the following programs are deemed
to be approved for purposes of this chapter:
(i) An accredited standard college degree program
offered at a public or not-for-profit proprietary
educational institution that is accredited by an agency
or association recognized for that purpose by the
Secretary of Education.
(ii) A flight training course approved by the Federal
Aviation Administration that is offered by a certified
pilot school that possesses a valid Federal Aviation
Administration pilot school certificate.
(iii) An apprenticeship program registered with the
Office of Apprenticeship (OA) of the Employment
Training Administration of the Department of Labor or a
State apprenticeship agency recognized by the Office of
Apprenticeship pursuant to the Act of August 16, 1937
(popularly known as the ``National Apprenticeship Act''
29 U.S.C. 50 et seq.).
(iv) A program leading to a secondary school diploma
offered by a secondary school approved in the State in
which it is operating.
(B) A licensure test offered by a Federal, State, or local
government is deemed to be approved for purposes of this
chapter.
* * * * * * *
SEC. 3673. APPROVAL ACTIVITIES: COOPERATION AND COORDINATION OF
ACTIVITIES
(a) * * *
* * * * * * *
(d) Use of State Approving Agencies for Compliance and
Oversight Activities.--The Secretary may utilize the services
of a State approving agency for such compliance and oversight
purposes as the Secretary considers appropriate without regard
to whether the Secretary or the agency approved the courses
offered in the State concerned.
* * * * * * *
SEC. 3675. APPROVAL OF ACCREDITED COURSES
(a)(1) [A State approving agency may approve the courses
offered by an educational institution] The Secretary or a State
approving agency may approve accredited programs (including
non-degree accredited programs) offered by proprietary for-
profit educational institutions when--
* * * * * * *
(b) As a condition of approval under this section, the
Secretary or the State approving agency must find the
following:
(1) The educational institution keeps adequate
records, as prescribed by the Secretary or the State
approving agency, to show the progress and grades of
the eligible person or veteran and to show that
satisfactory standards relating to progress and conduct
are enforced.
* * * * * * *
SEC. 3679. DISAPPROVAL OF COURSES
(a) Any course approved for the purposes of this chapter
which fails to meet any of the requirements of this chapter
shall be immediately disapproved by the Secretary or the
appropriate State approving agency. An educational institution
which has its courses disapproved by the Secretary or a State
approving agency will be notified of such disapproval by a
certified or registered letter of notification and a return
receipt secured.
* * * * * * *
Subchapter II. Miscellaneous Provisions
SEC. 3680. PAYMENT OF EDUCATIONAL ASSISTANCE OR SUBSISTENCE ALLOWANCES
(a) * * *
(1) * * *
(2) * * *
(3) * * *
(A) * * *
(B) * * *
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
during periods when schools are temporarily closed under an
established policy based on an Executive order of the President
or due to an emergency situation. However, the total number of
weeks for which allowances may continue to be so payable in any
12-month period may not exceed 4 weeks.[of this subsection--
[(A) during periods when the schools are temporarily
closed under an established policy based upon an
Executive order of the President or due to an emergency
situation;
[(B) during periods between consecutive school terms
where such veterans or persons transfer from one
approved educational institution to another approved
educational institution for the purpose of enrolling in
and pursuing a similar course at the second institution
if the period between such consecutive terms does not
exceed 30 days; or
[(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 those terms does
not exceed eight weeks, and (ii) both the terms
preceding and following the period are not shorter in
length than the period.]
* * * * * * *
SEC. 3681. LIMITATIONS ON EDUCATIONAL ASSISTANCE
(a) * * *
(b) * * *
(1) * * *
(2) Chapters 106 and 107 and section 510 of title 10.
* * * * * * *
SEC. 3684. REPORTS BY VETERANS, ELIGIBLE PERSONS, AND INSTITUTIONS;
REPORTING FEE
(a) * * *
* * * * * * *
(c) The Secretary may pay to any educational institution,
or to the sponsor of a program of apprenticeship, furnishing
education or training under either this chapter or chapter 31,
34, or 35 of this title, a reporting fee which will be in lieu
of any other compensation or reimbursement for reports or
certifications which such educational institution or joint
apprenticeship training committee is required to submit to the
Secretary by law or regulation. Such reporting fee shall be
computed for each calendar year by [multiplying $7] multiplying
$12 by the number of eligible veterans or eligible persons
enrolled under this chapter or chapter 31, 34, or 35 of this
title, [or $11] or $15 in the case of those eligible veterans
and eligible persons whose educational assistance checks are
directed in care of each institution for temporary custody and
delivery and are delivered at the time of registration as
provided under section 3680(d)(4) of this title, during the
calendar year. The reporting fee shall be paid to such
educational institution or joint apprenticeship training
committee as soon as feasible after the end of the calendar
year for which it is applicable. No reporting fee payable to an
educational institution under this subsection shall be subject
to offset by the Secretary against any liability of such
institution for any overpayment for which such institution may
be administratively determined to be liable under section 3685
of this title unless such liability is not contested by such
institution or has been upheld by a final decree of a court of
appropriate jurisdiction. Any reporting fee paid an educational
institution or joint apprenticeship training committee after
the date of the enactment of the Post-9/11 Veterans Educational
Assistance Improvements Act of 2011 shall be utilized by such
institution or committee solely for the making of
certifications required under this chapter or chapter 31, 34,
or 35 of this title or for otherwise supporting programs for
veterans. The reporting fee payable under this subsection shall
be paid from amounts appropriated for readjustment benefits.
* * * * * * *
SEC. 3689. APPROVAL REQUIREMENTS FOR LICENSING AND CERTIFICATION
TESTING
(a) In General.--(1) No payment may be made for a licensing
or certification test described in section 3452(b) or
3501(a)(5) of this title unless the test is deemed approved by
section 3672(b)(2)(B) of this title or the Secretary determines
that the requirements of this section have been met with
respect to such test and the organization or entity offering
the test. The requirements of approval for tests and
organizations or entities offering tests shall be in accordance
with the provisions of this chapter and chapters 30, 32, 33,
34, and 35 of this title and with regulations prescribed by the
Secretary to carry out this section.
* * * * * * *