To amend title 10, United States Code, to provide for the retention on active duty after demobilization of members of the reserve components of the Armed Forces following extended deployments in contingency operations or homeland defense missions, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Troops' Soft Landing, Employment, 
and Rural Transportation Act''.

SEC. 2. RETENTION ON ACTIVE DUTY AFTER DEMOBILIZATION OF RESERVES 
              FOLLOWING EXTENDED DEPLOYMENTS IN CONTINGENCY OPERATIONS 
              OR HOMELAND DEFENSE MISSIONS.

    (a) In General.--Chapter 1209 of title 10, United States Code, is 
amended by adding at the end the following new section:

``SEC. 12323. RESERVES: RETENTION ON ACTIVE DUTY AFTER DEMOBILIZATION 
              FOLLOWING EXTENDED DEPLOYMENTS IN CONTINGENCY OPERATIONS 
              OR HOMELAND DEFENSE MISSIONS.

    ``(a) In General.--A member of a reserve component of the Armed 
Forces described in subsection (b) shall be retained on active duty in 
the Armed Forces for a period of 90 days following the conclusion of 
the member's demobilization from a deployment as described in that 
subsection, and shall be authorized the use of any accrued leave.
    ``(b) Covered Members.--A member of a reserve component of the 
Armed Forces described in this subsection is any member of a reserve 
component of the Armed Forces who was deployed for more than 179 days 
under the following:
            ``(1) A contingency operation.
            ``(2) A homeland defense mission (as specified by the 
        Secretary of Defense for purposes of this section).
    ``(c) Pay and Allowances.--Notwithstanding any other provision of 
law, a member on active duty under subsection (a) shall be paid pay and 
allowances as follows:
            ``(1) For the first 30 days during which the member is so 
        retained on active duty--
                    ``(A) the basic pay payable to a member of the 
                Armed Forces under section 204 of title 37 in the same 
                pay grade as the member;
                    ``(B) the basic allowance for subsistence payable 
                under section 402 of title 37; and
                    ``(C) the basic allowance for housing payable under 
                section 403 of title 37 for a member in the same pay 
                grade, geographic location, and number of dependents as 
                the member.
            ``(2) For the second 30 days during which the member is so 
        retained on active duty, basic pay, basic allowance for 
        subsistence, and basic allowance for housing as described in 
        paragraph (1) but at rates equal to 75 percent of the rates 
        otherwise payable as described in that paragraph.
            ``(3) For the third 30 days during which the member is so 
        retained on active duty, basic pay, basic allowance for 
        subsistence, and basic allowance for housing as described in 
        paragraph (1) but at rates equal to 50 percent of the rates 
        otherwise payable as described in that paragraph.
    ``(d) Release From Active Duty.--(1) A member retained on active 
duty under subsection (a) may be released from active duty at the 
request of the member at any time following the end of the 15-day 
period commencing on the date the member is retained on active duty 
under subsection (a).
    ``(2) The request of a member for release from active duty under 
this subsection shall be subject to the approval of the officer in the 
chain of command of the member in grade O-5.
    ``(e) Reintegration Counseling and Services.--(1) The Secretary of 
the military department concerned shall provide each member retained on 
active duty under subsection (a), while the member is so retained on 
active duty, counseling and services to assist the member in 
reintegrating into civilian life.
    ``(2) The counseling and services provided members under this 
subsection shall include the following:
            ``(A) Physical and mental health evaluations.
            ``(B) Employment counseling and assistance.
            ``(C) Marriage and family counseling and assistance.
            ``(D) Financial management counseling.
            ``(E) Education counseling.
            ``(F) Counseling and assistance on benefits available to 
        the member through the Department of Defense and the Department 
        of Veterans Affairs.
    ``(3) The Secretary of the military department concerned shall 
provide, to the extent practicable, for the participation of 
appropriate family members of members retained on active duty under 
subsection (a) in the counseling and services provided such members 
under this subsection.
    ``(4) The counseling and services provided to members under this 
subsection shall, to the extent practicable, be provided at National 
Guard armories and similar facilities close the residences of such 
members.
    ``(5) Counseling and services provided a member under this 
subsection shall, to the extent practicable, be provided in 
coordination with the Yellow Ribbon Reintegration Program of the State 
concerned under section 582 of the National Defense Authorization Act 
for Fiscal Year 2008 (10 U.S.C. 10101 note)''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1209 of such title is amended by adding at the end the 
following new item:

``12323. Reserves: retention on active duty after demobilization 
                            following extended deployments in 
                            contingency operations or homeland defense 
                            missions.''.

SEC. 3. WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Subsection (d) of section 51 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(15) Special rule for veterans residing in high 
        unemployment counties.--
                    ``(A) In general.--In the case of an unemployed 
                veteran who is treated as a member of a targeted group 
                under subparagraph (B) and who has performed at least 
                800 hours of service for the employer--
                            ``(i) subsection (a) shall be applied by 
                        substituting `50 percent' for `40 percent', and
                            ``(ii) subsection (b)(3) shall be applied 
                        by substituting `$10,000' for `$6,000'.
                    ``(B) Treatment as member of targeted group.--An 
                unemployed veteran who is certified by the designated 
                local agency as having his principal place of abode 
                within a county that, at any time during the 6-month 
                period ending on the hiring date, is a high 
                unemployment county shall be treated as a member of a 
                targeted group for purposes of this subpart.
                    ``(C) Unemployed veteran.--For purposes of this 
                paragraph, the term `unemployed veteran' has the 
                meaning given such term by paragraph (14)(B)(i) without 
                regard to subclause (II) thereof.
                    ``(D) High unemployment county.--The term `high 
                unemployment county' means a county for which the 
                unemployment rate for the preceding month equals or 
                exceeds the national unemployment threshold for such 
                month.
                    ``(E) National unemployment threshold.--
                            ``(i) In general.--The national 
                        unemployment threshold is 12 percent.
                            ``(ii) Threshold indexed.--For any month 
                        beginning after the month in which this 
                        subparagraph is enacted, the national 
                        unemployment threshold in subclause (I) shall 
                        be the percentage in clause (i) (determined 
                        without regard to the application of this 
                        clause) multiplied by the ratio which the 
                        national unemployment rate for such month bears 
                        to 9.5 percent.
                    ``(F) Unemployment rates.--The national 
                unemployment rate and the unemployment rate for a 
                county for any month shall be the unadjusted rates for 
                such month determined by the Current Population Survey 
                conducted by the Bureau of Census for the Bureau of 
                Labor Statistics.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.

SEC. 4. GRANTS FOR ELIGIBLE ENTITIES PROVIDING TRANSPORTATION TO 
              DEPARTMENT OF VETERANS AFFAIRS MEDICAL FACILITIES FOR 
              VETERANS LIVING IN RURAL AREAS.

    (a) Grants Authorized.--
            (1) In general.--The Secretary of Veterans Affairs shall 
        establish a grant program to award grants on a competitive 
        basis to eligible entities for the purpose of providing 
        transportation options to veterans residing in rural areas.
            (2) Eligible entities.--For purposes of the grant program 
        under this section, an eligible entity is a government entity 
        and non-profit service provider, including a State veterans' 
        service agency, a veterans service organization, a local 
        governmental authority, and a private non-profit organization.
            (3) Use of funds.--The recipient of a grant under this 
        section shall use the grant to assist veterans in rural areas 
        to travel to Department of Veterans Affairs medical facilities.
            (4) Maximum amount.--The amount of a grant under this 
        section may not exceed $100,000 for any fiscal year.
            (5) No matching requirement.--The recipient of a grant 
        under this section shall not be required to provide matching 
        funds as a condition for receiving such grant.
    (b) Regulations.--The Secretary shall prescribe regulations for--
            (1) evaluating grant applications under this section;
            (2) directing Department of Veterans Affairs medical 
        facilities to coordinate with recipients of such grants to 
        ensure maximum use of transportation service at the least cost; 
        and
            (3) coordinating transportation services provided under 
        this section with existing local transportation services.
    (c) Definitions and Special Rule.--In this section:
            (1) The term ``veterans service organization'' means any 
        organization recognized by the Secretary of Veterans Affairs 
        for the representation of veterans under section 5902 of title 
        38, United States Code.
            (2) The term ``local governmental authority'' means a local 
        governmental authority as defined in 5302(a)(6) of title 49, 
        United States Code, that provides public transportation as 
        defined in 5302(a)(10) of title 49, United States Code.
            (3) A veteran is residing in a rural area if the veteran--
                    (A) resides in a location that is--
                            (i) more than 30 miles driving distance 
                        from the nearest Department health care 
                        facility providing primary care services, if 
                        the veteran is seeking such services;
                            (ii) more than 60 miles driving distance 
                        from the nearest Department health care 
                        facility providing acute hospital care, if the 
                        veteran is seeking such care; or
                            (iii) more than 100 miles driving distance 
                        from the nearest Department health care 
                        facility providing tertiary care, if the 
                        veteran is seeking such care; or
                    (B) in the case of a veteran who resides in a 
                location less than the distance specified in clause 
                (i), (ii), or (iii) of subparagraph (A), as applicable, 
                experiences such hardship or other difficulties in 
                travel to the nearest appropriate Department health 
                care facility that such travel is not in the best 
                interest of the veteran, as determined by the Secretary 
                pursuant to regulations prescribed for purposes of this 
                subsection.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated $10,000,000 for each of fiscal years 2009 through 2013 to 
carry out this section.

Summary: Troops' Soft Landing, Employment, and Rural Transportation Act - Requires that a member of a reserve component of the Armed Forces who was deployed for more than 179 days for a contingency operation or a homeland defense mission be: (1) retained on active duty in the Armed Forces for 90 days after the end of the member's demobilization from a deployment, (2) allowed to use accrued leave. And (3) paid specified pay and allowances. Allows a member to be released from such retention if the member requests release after the first 15 days of the retention. Directs the Secretary of the military department concerned to provide each member so retained reintegration counseling and services. Amends Internal Revenue Code work opportunity tax credit provisions, with regard to unemployed veterans living in counties where the unemployment is over a specified national threshold, to increase the credit from 40 to 50 and the maximum first-year wages which may be taken into account from $6,000 to $10,000. Directs the Secretary of Veterans Affairs to establish a competitive grant program to assist veterans in rural areas to travel to Department of Veterans Affairs (VA) medical facilities.