A bill to amend titles 10 and 38, United States Code, to increase benefits for members of the Armed Forces who, after September 11, 2001, serve on active duty outside the United States or its territories or possessions as part of a contingency operation (including a humanitarian operation, peacekeeping operation, or similar operation) or a combat operation.

Summary: Welcome Home G.I. Bill Act of 2005 - Increases and extends the duration of basic educational assistance for individuals who serve at least six consecutive months (with exceptions from the six consecutive months requirement due to medical, hardship, or involuntary separation ) on active duty outside the United States as part of a combat or contingency operation (including a humanitarian or peacekeeping operation) beginning on September 11, 2001, and ending five years after enactment of this Act.

 Permits assistance use for student loan repayment. Provides for refund of educational contributions made under the Montgomery G.I. Bill program.

Increases and extends the duration of educational assistance for reserve component members called or ordered to active service in response to a war or national emergency who perform active duty service for 180 consecutive days before the five-year period beginning on the date of enactment of this Act. Permits assistance use for student loan repayment.

Provides $5,000 for a residential purchase downpayment for a veteran who: (1) performs active duty service outside the United States as part of a combat or contingency operation (including a humanitarian or peacekeeping operation) for at least six consecutive months (or a lesser time period for an individual with a service-connected disability) after September 11, 2001; and (2) has not previously obtained a veterans' guaranteed or insured housing loan. Makes such benefit available for five years from the date eligible service is completed.

Amends the the Internal Revenue Code to exclude such housing benefit from gross income.

Provides transitional health care benefits during the five-year period after separation from active duty for an individual who is not covered under an employer-provided or a spouse's employer-provided group health plan who: (1) serves in the active military, naval, or air service; (2) after September 11, 2001, is deployed outside the United States as part of a combat or contingency operation (including a humanitarian or peacekeeping operation) for at least six consecutive months (or a lesser time period for an individual with a service-connected disability); and (3) is discharged or released under conditions other than dishonorable.

Revises predeployment and postdeployment medical exam provisions.

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Welcome Home G.I. 
Bill Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
        TITLE I--IMPROVEMENTS IN EDUCATION AND HOUSING BENEFITS

Sec. 101. Montgomery G.I. Bill improvements.
Sec. 102. Improved education benefits for reserve component members 
                            supporting contingency operations and 
                            certain other operations.
Sec. 103. Increase in Home Purchase Benefits.
               TITLE II--IMPROVEMENTS IN HEALTH BENEFITS

Sec. 201. Extension of transitional health care for certain uninsured 
                            veterans.
Sec. 202. Clarification of predeployment and postdeployment medical 
                            exams.

        TITLE I--IMPROVEMENTS IN EDUCATION AND HOUSING BENEFITS

SEC. 101. MONTGOMERY G.I. BILL IMPROVEMENTS.

    (a) Increase in Benefits and Extension of Duration of Educational 
Assistance.--Section 3015 of title 38, United States Code, is amended--
            (1) in subsections (a)(1)(D) and (b)(1)(D), by striking 
        ``under subsection (h)'' and inserting ``under subsection 
        (i)'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h)(1) The amount of basic educational allowance payable under 
this chapter to an individual referred to in paragraph (2) is the 
amount equal to 150 percent of the amount determined under subsection 
(a) or (b), as the case may be, with respect to the individual.
    ``(2)(A) Paragraph (1) applies to an individual entitled to an 
educational assistance allowance under section 3011 or 3012 of this 
title who, during the period described in paragraph (5), serves on 
active duty outside the United States or its territories or possessions 
as part of a contingency operation (including a humanitarian operation, 
peacekeeping operation, or similar operation) or combat operation for a 
period of at least 6 consecutive months.
    ``(B) The requirement of 6 consecutive months of service under 
paragraph (1) is not applicable to an individual who is discharged or 
released from active duty in the Armed Forces after a period of 
consecutive months of service on active duty totaling less than 6 
consecutive months--
            ``(i) for a service-connected disability;
            ``(ii) for a medical condition which preexisted such 
        service on active duty and which the Secretary determines is 
        not service-connected;
            ``(iii) for hardship;
            ``(iv) in the case of an individual discharged or released 
        after 5 consecutive months of service on active duty, for the 
        convenience of the Government;
            ``(v) 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 Homeland Security with respect to the Coast 
        Guard when it is not operating as a service in the Navy; or
            ``(vi) for a physical or mental condition that was not 
        characterized as a disability, as described in section 
        3011(a)(1)(A)(ii)(I) of this title.
    ``(3) The Secretary of Defense shall refund to each individual 
referred to in paragraph (2) all amounts reduced from the basic pay of, 
or collected by the Secretary from, the individual under section 
3011(b) or 3012(c) of this title, as the case may be.
    ``(4)(A) Upon completion of an approved course of education, an 
individual referred to paragraph (2) may apply amounts of increased 
basic educational assistance otherwise available to the individual 
under this section to repay some or all of the principal or interest on 
any Federal student loan of the individual.
    ``(B) In no event shall payment of basic educational assistance 
under this paragraph exceed the amount of the individual's available 
entitlement under this chapter.
    ``(C) In this paragraph, the term `Federal student loan' means any 
loan made under title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.).
    ``(5) The period referred to in paragraph (2)(A) is the period 
which begins on September 11, 2001, and ends on the date that is five 
years after the date of the enactment of the Welcome Home G.I. Bill Act 
of 2005.''.
    (b) Duration of Payments.--Section 3013 of such title is amended by 
adding at the end the following new subsection:
    ``(g) In the case of an individual referred to in section 
3015(h)(2) of this title, the preceding provisions of this section 
shall be applied by substituting `48 months' for `36 months' each place 
it appears.''.
    (c) Conforming Amendments.--(1) Section 3014(b)(2)(B) of such title 
is amended by inserting ``(or 48 in the case of an individual referred 
to in section 3015(h)(2) of this title)'' after ``36''.
    (2) Section 3017(b)(2) of such title is amended--
            (A) in subparagraph (A), by striking ``and'' at the end;
            (B) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(C) the amount of any refund under section 3015(h)(3) of 
        this title.''.
    (3) Section 3695(a) of such title is amended by inserting ``, or 60 
months in the case of an individual referred to in section 3015(h)(2) 
of this title'' after ``48 months''.

SEC. 102. IMPROVED EDUCATION BENEFITS FOR RESERVE COMPONENT MEMBERS 
              SUPPORTING CONTINGENCY OPERATIONS AND CERTAIN OTHER 
              OPERATIONS.

    (a) Increase in Rate of Educational Assistance.--Subsection (c) of 
section 16162 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(5) Notwithstanding paragraphs (2), (3), and (4), the educational 
assistance allowance provided under this chapter for a member of the 
reserve component called or ordered to active service in response to a 
war or national emergency declared by the President or the Congress who 
performs active duty service for 180 consecutive days before the date 
which is the last day of the five-year period that begins on the date 
of the enactment of the Welcome Home G.I. Bill Act of 2005 is the 
greater of (A) the monthly rate of $1562.50, or (B) the monthly rate 
otherwise applicable under this chapter.''.
    (b) Extension of Duration of Educational Assistance.--Subsection 
(d)(1) of such section is amended by inserting ``, or 48 in the case of 
educational assistance allowance paid under subsection (c)(5)'' after 
``under this chapter is 36''.
    (c) Use of Entitlement for Payment of Federal Student Loans.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(e) Use of Entitlement for Payment of Federal Student Loans.--(1) 
Upon completion of a program of education authorized under subsection 
(b), a member of the reserve components entitled to educational 
assistance under this chapter may apply amounts of educational 
assistance otherwise available to the member under this chapter to 
repay some or all of the principal or interest on any Federal student 
loan of the member.
    ``(2) In no event shall payment of educational assistance under 
this subsection exceed the amount of the member's available entitlement 
under this chapter.
    ``(3) In this subsection, the term `Federal student loan' means any 
loan made under title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.).''.

SEC. 103. INCREASE IN HOME PURCHASE BENEFITS.

    (a) Payment to Certain Veterans for Downpayment Toward Home 
Purchase.--(1) Chapter 37 of title 38, United States Code, is amended 
by inserting after section 3708 the following new section:
``Sec. 3709. Provision of downpayment toward home purchase for veterans 
              performing eligible service
    ``(a) Payment for Downpayment on Home Purchase.--Subject to 
subsections (b) and (c), in the case of a veteran who performs eligible 
service, the Secretary of Defense shall provide for a payment of $5,000 
on behalf of the veteran to be used as a downpayment toward the 
purchase or construction of a residential dwelling to be owned and 
occupied by the veteran.
    ``(b) Time Limitation for Use.--The period during which the 
Secretary of Defense may provide for a payment under subsection (a) to 
a veteran who performs eligible service expires on the date that is 
five years after the date on which such eligible service is completed.
    ``(c) Use in Conjunction With First-Time Home Purchase Under This 
Chapter.--The Secretary of Defense may only provide a payment to a 
veteran under subsection (a) if the veteran demonstrates to the 
Secretary of Veterans Affairs that the veteran has not previously 
obtained a loan guaranteed, insured, or made under this chapter, as the 
case may be.
    ``(d) Eligible Service.--In this subsection, the term `eligible 
service' means active duty service performed after September 11, 2001, 
outside the United States or its territories or possessions as part of 
a contingency operation (including a humanitarian operation, 
peacekeeping operation, or similar operation) or combat operation for a 
period of at least 6 consecutive months (or for a lesser period of time 
in the case of such an individual who is discharged or released from 
active duty for a service-connected disability).''.
    (2) The table of sections at the beginning of chapter 37 of such 
title is amended by inserting after the item relating to section 3708 
the following new item:

``3709. Provision of downpayment toward home purchase for veterans 
                            performing eligible service''.
    (b) Benefit Excluded From Gross Income.--
            (1) In general.--Subsection (b) of section 134 of the 
        Internal Revenue Code of 1986 (relating to qualified military 
        benefit) is amended by adding at the end the following new 
        paragraph:
            ``(6) Veterans housing benefits.--
                    ``(A) In general.--The term `qualified military 
                benefit' includes payments made under section 3709 of 
                title 38, United States Code (relating to provision of 
                downpayment toward home purchase for veterans 
                performing eligible service), as in effect on the date 
                of the enactment of this paragraph.
                    ``(B) Denial of double benefit.--Notwithstanding 
                any other provision of this subtitle, no increase in 
                the basis or adjusted basis of any property shall 
                result from any amount excluded under this section by 
                reason of subparagraph (A).''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to payments made after the date of the enactment of 
        this Act, in taxable years ending after such date.

               TITLE II--IMPROVEMENTS IN HEALTH BENEFITS

SEC. 201. EXTENSION OF TRANSITIONAL HEALTH CARE FOR CERTAIN UNINSURED 
              VETERANS.

    Section 1145 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Special Rule for Certain Uninsured Veterans.--(1) 
Transitional health care shall be available under subsection (a) for 
any period during the five-year period beginning on the date on which 
an eligible veteran is separated from active duty during which the 
eligible veteran demonstrates to the Secretary of Defense that the 
eligible veteran is not covered under any group health plan provided by 
an employer or spouse's employer.
    ``(2) In this subsection, the term `eligible veteran' means a 
person--
            ``(A) who served in the active military, naval, or air 
        service (as defined in section 101 of title 38);
            ``(B) who, after September 11, 2001, is deployed outside 
        the United States or its territories or possessions as part of 
        a contingency operation (including a humanitarian operation, 
        peacekeeping operation, or similar operation) or combat 
        operation for a period of at least 6 consecutive months (or for 
        a lesser period of time in the case of such an individual who 
        is discharged or released from active duty for a service-
        connected disability); and
            ``(C) who was discharged or released from such service 
        under conditions other than dishonorable.''.

SEC. 202. CLARIFICATION OF PREDEPLOYMENT AND POSTDEPLOYMENT MEDICAL 
              EXAMS.

    Subsection (b) of section 1074f of title 10, United States Code, is 
amended to read as follows:
    ``(b) Elements of System.--(1) The system described in subsection 
(a) shall include the use of predeployment medical examinations and 
postdeployment medical examinations, in accordance with this 
subsection, to accurately record the medical condition of members 
before their deployment and any changes in their medical condition 
during the course of their deployment.
    ``(2) A predeployment medical examination shall consist of a self-
administered survey followed by a clinical examination conducted by 
medical personnel of the Department of Defense. The survey and clinical 
examination shall include--
            ``(A) the collection of clinical data (such as vital signs 
        and the drawing of blood samples);
            ``(B) the collection of information (including information 
        on immunizations) on current and past physical or mental health 
        conditions that might affect the ability of the member to 
        perform duties;
            ``(C) an assessment of mental health;
            ``(D) screening for diseases that are prevalent in members 
        of the armed forces; and
            ``(E) referral to appropriate medical care for any 
        conditions needing further treatment.
    ``(3) A postdeployment medical examination shall consist of a self-
administered survey followed by a clinical examination conducted by 
medical personnel of the Department of Defense. The survey and clinical 
examination--
            ``(A) shall include self-reported information about any 
        relevant exposures during the period of deployment, including 
        witnessing or participating in combat and screening for post-
        traumatic stress disorder; and
            ``(B) shall be conducted when the member is redeployed or 
        otherwise leaves an area in which the system is in operation 
        (or as soon as possible thereafter).''.