A bill to amend title 38, United States Code, to restore promised GI Bill educational benefits to Vietnam era veterans, and for other purposes.

Summary: Veterans' Educational Assistance Restoration Act of 2001 - Makes eligible for educational assistance benefits under the Montgomery GI Bill an individual who: (1) was not on active duty on October 19, 1984; (2) reenlists or reenters into active duty after such date; and (3) after July 2, 1985, either serves at least three years of continuous active duty or is discharged or released for a service-connected disability, preexisting medical condition, hardship, or a physical or mental condition for the convenience of the Government, as long as such individual completed not less than 30 months of continuous active duty on that date; or (4) is involuntarily released at the convenience of the Government due to a reduction in force. Makes eligible for such assistance a member of the Selected Reserve who: (1) was not on active duty on October 19, 1984, (2) reenlists or reenters active duty after such date; and (3) after July 2, 1985, serves at least two years of continuous active duty and at least four continuous years in the Selected Reserve during which the individual participates satisfactorily in required training.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Educational Assistance 
Restoration Act of 2001''.

SEC. 2. ELIGIBILITY FOR MONTGOMERY GI BILL BENEFITS OF CERTAIN 
              ADDITIONAL VIETNAM ERA VETERANS.

    (a) Active Duty Program.--Section 3011(a)(1) of title 38, United 
States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by adding ``or'' at the end of subparagraph (B); and
            (3) by adding at the end the following new subparagraph:
                    ``(C) as of December 31, 1989, is eligible for 
                educational assistance benefits under chapter 34 of 
                this title and--
                            ``(i) was not on active duty on October 19, 
                        1984;
                            ``(ii) reenlists or reenters on a period of 
                        active duty after the date specified in clause 
                        (i); and
                            ``(iii) after July 2, 1985, either--
                                    ``(I) serves at least three years 
                                of continuous active duty in the Armed 
                                Forces; or
                                    ``(II) is discharged or released 
                                from active duty (aa) for a service-
                                connected disability, for a medical 
                                condition which preexisted such service 
                                on active duty and which the Secretary 
                                determines is not service connected, 
                                for hardship, or for a physical or 
                                mental condition that was not 
                                characterized as a disability, as 
                                described in subparagraph (A)(ii)(I) of 
                                this paragraph, (bb) for the 
                                convenience of the Government, if the 
                                individual completed not less than 30 
                                months of continuous active duty after 
                                that date, or (cc) involuntarily for 
                                the convenience of the Government as a 
                                result of a reduction in force, as 
                                determined by the Secretary of the 
                                military department concerned in 
                                accordance with regulations prescribed 
                                by the Secretary of Defense or by the 
                                Secretary of Transportation with 
                                respect to the Coast Guard when it is 
                                not operating as a service in the 
                                Navy;''.
    (b) Selected Reserve Program.--Section 3012(a)(1) of that title is 
amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by adding ``or'' at the end of subparagraph (B); and
            (3) by adding at the end the following new subparagraph:
                    ``(C) as of December 31, 1989, is eligible for 
                educational assistance under chapter 34 of this title 
                and--
                            ``(i) was not on active duty on October 19, 
                        1984;
                            ``(ii) reenlists or reenters on a period of 
                        active duty after the date specified in clause 
                        (i); and
                            ``(iii) after July 2, 1985--
                                    ``(I) serves at least two years of 
                                continuous active duty in the Armed 
                                Forces, subject to subsection (b) of 
                                this section, characterized by the 
                                Secretary concerned as honorable 
                                service; and
                                    ``(II) subject to subsection (b) of 
                                this section and beginning within one 
                                year after completion of such two years 
                                of service, serves at least four 
                                continuous years in the Selected 
                                Reserve during which the individual 
                                participates satisfactorily in training 
                                as prescribed by the Secretary 
                                concerned;''.
    (c) Time for Use of Entitlement.--Section 3031 of that title is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) in the case of an individual who becomes entitled to 
        such assistance under section 3011(a)(1)(C) or 3012(a)(1)(C) of 
        this title, on the date of the enactment of this paragraph.''; 
        and
            (2) in subsection (e)(1), by striking ``section 
        3011(a)(1)(B) or 3012(a)(1)(B)'' and inserting ``section 
        3011(a)(1)(B), 3011(a)(1)(C), 3012(a)(1)(B), or 
        3012(a)(1)(C)''.