Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 62205

DEPARTMENT OF DEFENSE

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 21 

RIN 2900–AL80 

Increase in Rates Payable Under the 

Montgomery GI Bill—Selected Reserve

AGENCIES: Department of Defense, 

Department of Homeland Security 

(Coast Guard), and Department of 

Veterans Affairs.

ACTION: Final rule.

SUMMARY: By statute, the monthly rates 

of basic educational assistance payable 

to reservists under the Montgomery GI 

Bill—Selected Reserve must be adjusted 

each fiscal year. In accordance with the 

statutory formula, the regulations 

governing rates of basic educational 

assistance payable under the 

Montgomery GI Bill—Selected Reserve 

for Fiscal Year 2004 (October 1, 2003, 

through September 30, 2004) are 

changed to show a 2.2% increase in 

these rates.

DATES: Effective Date: This final rule is 

effective October 25, 2004. 

Applicability Date: The changes in 

rates are applied retroactively to 

conform to statutory requirements. For 

more information concerning the dates 

of application, see the SUPPLEMENTARY

INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

Lynn M. Nelson, Education Adviser, 

Education Service (225C), Veterans 

Benefits Administration, Department of 

Veterans Affairs, 810 Vermont Avenue, 

NW., Washington, DC 20420, telephone 

(202) 273–7294.

SUPPLEMENTARY INFORMATION: Under the 

formula mandated by 10 U.S.C. 16131(b) 

for Fiscal Year 2004, the rates of basic 

educational assistance under the 

Montgomery GI Bill—Selected Reserve 

payable to students pursuing a program 

of education full time, three-quarter 

time, and half time must be increased by 

2.2%, which is the percentage by which 

the total of the monthly Consumer Price 

Index-W for July 1, 2002, through June 

30, 2003, exceeds the total of the 

monthly Consumer Price Index-W for 

July 1, 2001, through June 30, 2002. 

Title 10 U.S.C. 16131(b) requires that 

full-time, three-quarter time, and halftime rates be increased as noted above. 

In addition, 10 U.S.C. 16131(d) requires 

that monthly rates payable to reservists 

in apprenticeship or other on-the-job 

training must be set at a given 

percentage of the full-time rate. Hence, 

there is a 2.2% raise for such training as 

well. 

Title 10 U.S.C. 16131(b) also requires 

that the Department of Veterans Affairs 

(VA) pay reservists training less than 

half time at an appropriately reduced 

rate. Since payment for less than halftime training became available under 

the Montgomery GI Bill—Selected 

Reserve in Fiscal Year 1990, VA has 

paid less than half-time students at 25% 

of the full-time rate. Changes are made 

consistent with the authority and 

formula described in this paragraph. 

The changes set forth in this final rule 

are effective from the date of 

publication, but the changes in rates are 

applied from October 1, 2003, in 

accordance with the applicable statutory 

provisions discussed above. 

Administrative Procedure Act 

Substantive changes made by this 

final rule merely reflect statutory 

requirements and adjustments made 

based on previously established 

formulas. Accordingly, there is a basis 

for dispensing with prior notice and 

comment and delayed effective date 

provisions of 5 U.S.C. 552 and 553. 

Paperwork Reduction Act 

This document contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act (44 

U.S.C. 3501–3521). 

Regulatory Flexibility Act 

The initial and final regulatory 

flexibility analyses requirements of 

sections 603 and 604 of the Regulatory 

Flexibility Act, 5 U.S.C. 601–612, are 

not applicable to this rule, because a 

notice of proposed rulemaking is not 

required for this rule. Even so, the 

Secretary of Defense, the Commandant 

of the Coast Guard, and the Secretary of 

Veterans Affairs hereby certify that this 

final rule will not have a significant 

economic impact on a substantial 

number of small entities as they are 

defined in the Regulatory Flexibility 

Act. This final rule directly affects only 

individuals and does not directly affect 

small entities. Therefore, this final rule 

is also exempt pursuant to 5 U.S.C. 

605(b) from the initial and final 

regulatory flexibility analyses 

requirements of sections 603 and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

requires, at 2 U.S.C. 1532, that agencies 

prepare an assessment of anticipated 

costs and benefits before developing any 

rule that may result in an expenditure 

by State, local, or tribal governments, in 

the aggregate, or by the private sector, of 

$100 million or more in any given year. 

This rule would have no such effect on 

State, local, or tribal governments, or the 

private sector. 

Catalog of Federal Domestic Assistance 

Program Numbers 

There is no Catalog of Federal 

Domestic Assistance number for the 

program affected by this final rule.

List of Subjects in 38 CFR Part 21 

Administrative practice and 

procedure, Armed forces, Civil rights, 

Claims, Colleges and universities, 

Conflict of interests, Defense 

Department, Education, Employment, 

Grant programs-education, Grant 

programs-veterans, Health programs, 

Loan programs-education, Loan 

programs-veterans, Manpower training 

programs, Reporting and recordkeeping 

requirements, Schools, Travel and 

transportation expenses, Veterans, 

Vocational education, Vocational 

rehabilitation.

Approved: August 20, 2004. 

Anthony J. Principi, 

Secretary of Veterans Affairs. 

Dated: August 10, 2004. 

John D. Winkler, 

Deputy Assistant Secretary of Defense for 

Reserve Affairs (Manpower & Personnel). 

September 3, 2004. 

Kenneth T. Venuto, 

Rear Admiral, U.S. Coast Guard, Assistant 

Commandant for Human Resources.

■ For the reasons set out above, 38 CFR 

part 21, subpart L, is amended as set 

forth below.

PART 21—VOCATIONAL 

REHABILITATION AND EDUCATION

Subpart L—Educational Assistance for 

Members of the Selected Reserve

■ 1. The authority citation for part 21, 

subpart L, continues to read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 

501(a), 512, ch. 36, unless otherwise noted.

■ 2. Section 21.7636 is amended by:

■ a. Revising paragraphs (a)(1) and 

(a)(2)(i) and tables at the end of each 

paragraph.

■ b. In paragraph (a)(3), removing 

‘‘September 30, 2002, and before October 

1, 2003,’’ and adding, in its place, 

‘‘September 30, 2003, and before October 

1, 2004,’’. 

The revisions read as follows:

§ 21.7636 Rates of payment. 

(a) Monthly rate of educational 

assistance. (1) Except as otherwise 

62206 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 

provided in this section or in § 21.7639, 

the monthly rate of educational 

assistance payable for training that 

occurs after September 30, 2003, and 

before October 1, 2004, to a reservist 

pursuing a program of education is the 

rate stated in this table:

Training Monthly 

rate 

Full ................................................ $282.00 

3⁄4 time .......................................... 212.00 1⁄2 time .......................................... 140.00 1⁄4 time .......................................... 70.50 

(2)(i) The monthly rate of basic 

educational assistance payable to a 

reservist for apprenticeship or other onthe-job training full time that occurs 

after September 30, 2003, and before 

October 1, 2004, is the rate stated in this 

table:

Training period Monthly 

rate 

First six months of pursuit of training ............................................. $211.50 

Second six months of pursuit of 

training ...................................... 155.10 

Remaining pursuit of training ....... 98.70 

* * * * *

[FR Doc. 04–23757 Filed 10–22–04; 8:45 am] 

BILLING CODE 8320–01–P

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 21 

RIN 2900–AL64 

Increase in Rates Payable Under the 

Survivors’ and Dependents’

Educational Assistance Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the 

regulations governing rates of 

educational assistance payable under 

the Survivors’ and Dependents’

Educational Assistance (DEA) program 

to reflect increases required by statutory 

provisions. The rates of educational 

assistance payable under the DEA 

program are changed to show a 1.5% 

increase for fiscal year 2003 (October 1, 

2002, through September 30, 2003) and 

a 2.2% increase for fiscal year 2004 

(beginning October 1, 2003). In addition, 

the Veterans Benefits Act of 2003 

provided an increase in the rates 

payable effective July 1, 2004. The 

amendments show the pay tables for the 

three rate increases identified above.

DATES: Effective Date: This final rule is 

effective October 25, 2004. 

Applicability Dates: The changes in 

rates are applied to conform to the 

respective statutory requirements. For 

more information concerning the dates 

of applicability, see the SUPPLEMENTARY

INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

Lynn M. Nelson, Education Advisor 

(225C), Education Service, Department 

of Veterans Affairs, Veterans Benefits 

Administration, 810 Vermont Ave. NW., 

Washington, DC 20420 (202) 273–7294.

SUPPLEMENTARY INFORMATION: Under the 

formula mandated by 38 U.S.C. 3564, 

the monthly rates of basic educational 

assistance payable under the Survivors’

and Dependents’ Educational Assistance 

(DEA) program must be adjusted each 

fiscal year. The regulations governing 

the rates of educational assistance 

payable under the DEA program for 

fiscal year (FY) 2003 (October 1, 2002, 

through September 30, 2003) are 

changed to reflect a 1.5% increase. The 

1.5% increase is the percentage by 

which the total of the monthly 

Consumer Price Index-W (CPI–W) for 

July 1, 2001, through June 30, 2002, 

exceeds the total of the monthly CPI–W 

for July 1, 2000, through June 30, 2001. 

The regulations are further amended 

to include the DEA rates payable during 

FY 2004. The FY 2004 rates reflect a 

2.2% increase. The 2.2% increase is the 

percentage by which the total of the 

monthly CPI–W for July 1, 2002, 

through June 30, 2003, exceeds the total 

of the monthly CPI–W for July 1, 2001, 

through June 30, 2002. 

In addition to the cost of living rate 

adjustments discussed above, Section 

302 of the Veterans Benefits Act of 2003 

(Pub. L. 108–183) provides an increase 

in the DEA rates effective July 1, 2004. 

A new paragraph (c) is added to Section 

21.3131 to show the increased DEA 

rates effective July 1, 2004. 

The changes set forth in this final rule 

are effective from the date of 

publication, but the changes in the rates 

for FY 2003 are effective October 1, 

2002, the changes in the rates for FY 

2004 are effective October 1, 2003, and 

the changes in rates provided for in 

Public Law 108–183 are effective July 1, 

2004. This is in accordance with the 

applicable statutory provisions 

discussed above. 

Administrative Procedure Act 

Substantive changes made by this 

final rule merely reflect statutory 

requirements and adjustments made 

based on previously established 

formulas. Accordingly, there is a basis 

for dispensing with prior notice and 

comment and delayed effective date 

provisions of 5 U.S.C. 552 and 553. 

Paperwork Reduction Act 

This document contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act (44 

U.S.C. 3501–3521). 

Regulatory Flexibility Act 

The initial and final regulatory 

flexibility analyses requirements of 

sections 603 and 604 of the Regulatory 

Flexibility Act, 5 U.S.C. 601–612, are 

not applicable to this rule, because the 

agency is not required to publish a 

notice of proposed rulemaking for this 

rule. Even so, the Secretary of Veterans 

Affairs hereby certifies that this final 

rule will not have a significant 

economic impact on a substantial 

number of small entities as they are 

defined in the Regulatory Flexibility 

Act. This final rule directly affects only 

individuals and does not directly affect 

small entities. Therefore, this final rule 

is also exempt pursuant to 5 U.S.C. 

605(b) from the initial and final 

regulatory flexibility analyses 

requirements of sections 603 and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

requires, at 2 U.S.C. 1232, that agencies 

prepare an assessment of anticipated 

costs and benefits before developing any 

rule that may result in an expenditure 

by State, local, or tribal governments, in 

the aggregate, or by the private sector, of 

$100 million or more in any given year. 

This rule will have no such effect on 

State, local or tribal governments, or the 

private sector. 

Catalog of Federal Domestic Assistance 

Program Numbers 

The Catalog of Federal Domestic 

Assistance number for the program 

affected by this final rule is 64.117.

List of Subjects in 38 CFR Part 21 

Administrative practice and 

procedure, Armed Forces, Civil rights, 

Claims, Colleges and universities, 

Conflict of interests, Defense 

Department, Education, Employment, 

Grant programs-education, Grant 

programs-veterans, Health care, Loan 

programs-education, Loan programsveterans, Manpower training programs, 

Reporting and recordkeeping 

requirements, Schools, Travel and 

transportation expenses, Veterans, 

Vocational education, Vocational 

rehabilitation.

Approved: August 23, 2004. 

Anthony J. Principi, 

Secretary of Veterans Affairs.

■ For the reasons set out in the preamble, 

38 CFR part 21 (subpart C ) is amended 

as follows: