To amend title 38, United States Code, to provide for the restoration of entitlement to educational assistance and other relief for veterans affected by school closure or disapproval, and for other purposes.

Summary: This bill provides that if a veteran or reservist is forced to discontinue a certain course or program as a result of a school closure or disapproval of a necessary course and did not receive credit or lost training time toward completion of the education program, Department of Veterans Affairs (VA) educational assistance payments shall not, for a specified period, be:    charged against the individual's entitlement to educational assistance, or   counted against the aggregate period for which such assistance may be provided.  The bill, with an exception, applies to education courses and programs discontinued after January 1, 2015. The VA may continue to pay educational assistance and subsistence allowances to eligible veterans and eligible persons enrolled in specified courses for up to 4 weeks in any 12-month period when schools are temporarily closed under an established policy based on a presidential executive order or due to an emergency.  The VA shall, within five business days after receiving notice of a closure or intended closure, notify each affected individual of such closure and its effect on the individual's entitlement to educational assistance.  The VA may also continue to pay a monthly housing stipend following a permanent school closure or disapproval of a course of study, but only until the earlier of: (1) the end of the term, quarter, or semester during which the school closure or disapproval occurred; and (2) 120 days after the closure or disapproval.

SECTION 1. RESTORATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE AND 
              OTHER RELIEF FOR VETERANS AFFECTED BY SCHOOL CLOSURE OR 
              DISAPPROVAL.

    (a) School Closure or Disapproval.--
            (1) Restoration of entitlement.--Chapter 36 is amended by 
        adding at the end the following new section:
``Sec. 3699. Effects of closure or disapproval of educational 
              institution
    ``(a) Closure or Disapproval.--Any payment of educational 
assistance described in subsection (b) shall not--
            ``(1) be charged against any entitlement to educational 
        assistance of the individual concerned; or
            ``(2) be counted against the aggregate period for which 
        section 3695 of this title limits the receipt of educational 
        assistance by such individual.
    ``(b) Educational Assistance Described.--Subject to subsection (c), 
the payment of educational assistance described in this paragraph is 
the payment of such assistance to an individual for pursuit of a course 
or program of education at an educational institution under chapter 30, 
32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, if 
the Secretary determines that the individual--
            ``(1) was unable to complete such course or program as a 
        result of--
                    ``(A) the closure of the educational institution; 
                or
                    ``(B) the disapproval of the course or a course 
                that is a necessary part of that program under this 
                chapter by reason of--
                            ``(i) a provision of law enacted after the 
                        date on which the individual enrolls at such 
                        institution affecting the approval or 
                        disapproval of courses under this chapter; or
                            ``(ii) after the date on which the 
                        individual enrolls at such institution, the 
                        Secretary prescribing or modifying regulations 
                        or policies of the Department affecting such 
                        approval or disapproval; and
            ``(2) did not receive credit or lost training time, toward 
        completion of the program of education being so pursued.
    ``(c) Period Not Charged.--The period for which, by reason of this 
subsection, educational assistance is not charged against entitlement 
or counted toward the applicable aggregate period under section 3695 of 
this title shall not exceed the aggregate of--
            ``(1) the portion of the period of enrollment in the course 
        from which the individual did not receive credit or with 
        respect to which the individual lost training time, as 
        determined under subsection (b)(2), and
            ``(2) the period by which a monthly stipend is extended 
        under section 3680(a)(2)(B) of this title.
    ``(d) Continuing Pursuit of Disapproved Courses.--(1) The Secretary 
may treat a course of education that is disapproved under this chapter 
as being approved under this chapter with respect to an individual 
described in paragraph (2) if the Secretary determines, on a case-by-
case basis, that--
            ``(A) such disapproval is the result of an action described 
        in clause (i) or (ii) of subsection (b)(1)(B); and
            ``(B) continuing pursuing such course is in the best 
        interest of the individual.
    ``(2) An individual described in this paragraph is an individual 
who is pursuing a course of education at an educational institution 
under chapter 30, 32, 33, or 35 of this title, or chapter 1606 or 1607 
of title 10, as of the date on which the course is disapproved under 
this chapter.
    ``(e) Notice of Closures.--Not later than five business days after 
the date on which the Secretary receives notice that an educational 
institution will close or is closed, the Secretary shall provide to 
each individual who is enrolled in a course or program or education at 
such educational institution using entitlement to educational 
assistance under chapter 30, 32, 33, or 35 of this title, or chapter 
1606 or 1607 of title 10, notice of--
            ``(1) such closure and the date of such closure; and
            ``(2) the effect of such closure on the individual's 
        entitlement to educational assistance pursuant to this 
        section.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 3698 the following new item:

``3699. Effects of closure or disapproval of educational 
                            institution.''.
    (b) Monthly Housing Stipend.--
            (1) In general.--Subsection (a) section 3680 is amended--
                    (A) by striking the matter after paragraph (3)(B);
                    (B) in paragraph (3), by redesignating 
                subparagraphs (A) and (B) as clauses (i) and (ii), 
                respectively;
                    (C) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively;
                    (D) in the matter preceding subparagraph (A), as 
                redesignated, in the first sentence, by striking 
                ``Payment of'' and inserting ``(1) Except as provided 
                in paragraph (2), payment of''; and
                    (E) by adding at the end the following new 
                paragraph (2):
    ``(2) Notwithstanding paragraph (1), the Secretary may, pursuant to 
such regulations as the Secretary shall prescribe, continue to pay 
allowances to eligible veterans and eligible persons enrolled in 
courses set forth in paragraph (1)(A)--
            ``(A) during periods when educational institutions are 
        temporarily closed under an established policy based on an 
        Executive order of the President or due to an emergency 
        situation, except that the total number of weeks for which 
        allowances may continue to be so payable in any 12-month period 
        may not exceed four weeks; or
            ``(B) solely for the purpose of awarding a monthly housing 
        stipend described in section 3313 of this title, during periods 
        following a permanent closure of an educational institution, or 
        following the disapproval of a course of study described in 
        section 3699(b)(1)(B) of this title, except that payment of 
        such a stipend may only be continued until the earlier of--
                    ``(i) the date of the end of the term, quarter, or 
                semester during which the closure or disapproval 
                occurred; and
                    ``(ii) the date that is 120 days after the date of 
                the closure or disapproval.''.
            (2) Conforming amendment.--Paragraph (1)(C)(ii) of such 
        subsection, as redesignated, is amended by striking ``described 
        in subclause (A) of this clause'' and inserting ``described in 
        clause (i)''.
    (c) Applicability.--
            (1) School closure or disapproval.--
                    (A) In general.--The amendments made by subsection 
                (a) shall take effect on the date that is 90 days after 
                the date of the enactment of this Act, and shall apply 
                with respect to courses and programs of education 
                discontinued as described in section 3699 of title 38, 
                United States Code, as added by subsection (a)(1), 
                after January 1, 2015.
                    (B) Special application.--With respect to courses 
                and programs of education discontinued as described in 
                section 3699 of title 38, United States Code, as added 
                by subsection (a)(1), during the period beginning 
                January 1, 2015, and ending on the date of the 
                enactment of this Act, an individual who does not 
                transfer credits from such program of education shall 
                be deemed to be an individual who did not receive such 
                credits, as described in subsection (b)(2) of such 
                section, except that the period for which the 
                individual's entitlement is not charged shall be the 
                entire period of the individual's enrollment in the 
                program of education. In carrying out this paragraph, 
                the Secretary of Veterans Affairs, in consultation with 
                the Secretary of Education, shall establish procedures 
                to determine whether the individual transferred credits 
                to a comparable course or program of education.
            (2) Monthly housing stipend.--The amendments made by 
        subsection (b) shall take effect on August 1, 2018, and shall 
        apply with respect to courses and programs of education 
        discontinued as described in section 3699 of title 38, United 
        States Code, as added by such subsection, on or after the date 
        of the enactment of this Act.