[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Rules and Regulations]
[Pages 62209-62210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23756]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL81


Veterans Education: Increased Allowances for the Educational 
Assistance Test Program

AGENCIES: Department of Defense and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The law provides that the Secretary of Defense shall adjust 
the rates of subsistence allowance and educational assistance under the 
Educational Assistance Test Program annually. The law further provides 
those rates must be adjusted based upon the average actual cost of 
attendance at public institutions of higher education in the 12-month 
period since the rates were last adjusted. After obtaining data from 
the Department of Education, the Department of Defense has determined 
that the rates for the 2003-04 academic year should be increased by 9.6 
percent over the rates payable for the 2002-03 academic year. The 
regulations dealing with these rates are amended accordingly.

DATES: Effective Date: October 25, 2004.
    Applicability Date: The changes in rates are applied retroactively 
to October 1, 2003, to conform to statutory requirements. For more 
information concerning the applicability date, see the SUPPLEMENTARY 
INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Lynn M. Nelson, Education Adviser 
(225C), Education Service, Veterans Benefits Administration, Department 
of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, 
(202) 273-7294.

SUPPLEMENTARY INFORMATION: Section 2145 of title 10, United States 
Code, provides that the Secretary of Defense shall make adjustments in 
the amount of educational assistance offered in any academic year under 
the Educational Assistance Test Program and likewise, in the amount of 
subsistence allowance authorized under that program. This provision 
further requires that these adjustments will be consistent with the 
change in the average actual cost of attendance at public institutions 
of higher education over the preceding 12-month period. As required by 
sections 2145, 2143, and 2144 of title 10, the Department of Defense 
has obtained data from the Department of Education. The Department of 
Defense has calculated that the costs of educational assistance and 
subsistence allowance have each increased by 9.6 percent. Accordingly, 
this final rule changes 38 CFR 21.5820 and 21.5822 to reflect a 9.6 
percent increase in the rates payable in the 2003-04 academic year, 
including changes needed to compensate for rounding.
    The Secretary of Defense delegated the authority to administer the 
benefit payment portion of the Educational Assistance Test Program, 
also known as Section 901 benefits, to the Secretary of Veterans 
Affairs (VA). Thus, VA regulations include the educational assistance 
amounts payable under the program.
    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

    Since changes made by this final rule only reflect statutory 
requirements and adjustments based on previously established formulas, 
there is a basis for dispensing with notice-and-comment and a delayed 
effective date under 5 U.S.C. 552 and 553.

Paperwork Reduction Act

    This document contains no provisions constituting a new collection 
of information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

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 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 
consequential effect on State, local, or tribal governments.

[[Page 62210]]

Regulatory Flexibility Act

    The Secretary of Defense 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, 5 U.S.C. 501-612. This final 
rule directly affects only individuals and does not directly affect 
small entities. Pursuant to 5 U.S.C. 605(b), this final rule, 
therefore, is exempt from the initial and final regulatory flexibility 
analyses requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance

    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 care, Loan programs--education, Loan 
programs--veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: July 28, 2004.
Anthony J. Principi,
Secretary of Veterans Affairs.
    August 26, 2004.
William J. Carr,
Acting Deputy Under Secretary (Military Personnel Policy).

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For the reasons set out above, 38 CFR part 21, subpart H, is amended as 
set forth below:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart H--Educational Assistance Test Program

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1. The authority citation for part 21, subpart H, continues to read as 
follows:

    Authority: 10 U.S.C. ch.107; 38 U.S.C. 501(a), 3695, 5101, 5113, 
5303A; 42 U.S.C. 2000; sec. 901, Pub. L. 96-342, 94 Stat. 1111-1114, 
unless otherwise noted.


21.5820  [Amended]

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2. Section 21.5820 is amended by:
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a. In paragraph (b)(1), removing ``2002-03'' and adding, in its place, 
``2003-04'', and by removing ``$3,849'' and adding, it its place, 
``$4,219''.
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b. In paragraph (b)(2)(ii), removing ``2002-03'' and adding, in its 
place, ``2003-04''.
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c. In paragraphs (b)(2)(ii)(A) and (b)(3)(ii)(A), removing ``$427.67'' 
and adding, in each place, ``$468.78'', and by removing ``$213.84'' and 
adding, in each place, ``$234.39''.
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d. In paragraphs (b)(2)(ii)(B) and (b)(3)(ii)(B), removing ``$14.26'' 
and adding, in each place, ``$15.63'', and by removing ``$7.13'' and 
adding, in each place, ``$7.81''.
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e. In paragraphs (b)(2)(ii)(C) and (b)(3)(ii)(C), removing ``3 cents'' 
and adding, in each place ``2 cents'', and by removing ``6 cents'' and 
adding, in each place ``1 cent''.
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f. In paragraph (b)(3)(ii) introductory text, removing ``2002-03'' and 
adding, in its place, ``2003-04''.


21.5822  [Amended]

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3. Section 21.5822 is amended by:
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a. In paragraphs (b)(1)(i) and (b)(2)(i), removing ``$959'' and adding, 
in each place, ``$1,051'', and by removing ``2002-03'' and adding, in 
each place, ``2003-04''.
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b. In paragraphs (b)(1)(ii) and (b)(2)(ii), removing ``$479.50'' and 
adding, in each place, ``$525.50'', and by removing ``2002-03'' and 
adding, in each place, ``2003-04''.

[FR Doc. 04-23756 Filed 10-22-04; 8:45 am]
BILLING CODE 8320-01-P