I 

108TH CONGRESS 

1ST SESSION H. R. 1713

To amend title 38, United States Code, to improve benefits under the Montgomery GI Bill by establishing an enhanced educational assistance program, by increasing the amount of basic educational assistance, by repealing the requirement for reduction in pay for participation in the 

program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2003

Mr. EVANS (for himself, Mr. DINGELL, Mr. FILNER, Ms. CORRINE BROWN

of Florida, Mr. RODRIGUEZ, Mr. STRICKLAND, Mrs. DAVIS of California, 

Mr. RYAN of Ohio, Mr. WEINER, Mr. MCINTYRE, Mr. BROWN of Ohio, 

Mr. SERRANO, Mr. FROST, and Mr. SANDERS) introduced the following 

bill; which was referred to the Committee on Veterans’ Affairs, and in 

addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL

To amend title 38, United States Code, to improve benefits 

under the Montgomery GI Bill by establishing an enhanced educational assistance program, by increasing the 

amount of basic educational assistance, by repealing the 

requirement for reduction in pay for participation in 

the program, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Montgomery GI Bill 

3 Improvements Act of 2003’’. 

4 SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI 

5 BILL FOR FOUR YEARS OF ACTIVE-DUTY 

6 SERVICE. 

7 (a) IN GENERAL.—Chapter 30 of title 38, United 

8 States Code, is amended by adding at the end the fol9 lowing new subchapter: 

10 ‘‘SUBCHAPTER V—ENHANCED EDU11 CATIONAL ASSISTANCE 

12 ‘‘§ 3041. Enhanced educational assistance entitlement 

13 ‘‘(a) ENTITLEMENT.—An eligible individual is enti14 tled to enhanced educational assistance under this sub15 chapter. 

16 ‘‘(b) ELIGIBLE INDIVIDUAL DEFINED.—(1) For pur17 poses of this subchapter, the term ‘eligible individual’ 

18 means an individual who meets the service requirement 

19 described in subsection (c) and whose status after comple20 tion of such service is described in section 3011(a)(3) of 

21 this title (relating to continuation on active duty, honor22 able discharge, or honorable service, as the case may be). 

23 ‘‘(2) Such term does not include an individual de24 scribed in paragraph (1) or (2) of section 3011(c) of this 

25 title (relating to individuals not electing basic educational 
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1 assistance under subchapter II of this chapter or certain 

2 commissioned officers, respectively). 

3 ‘‘(c) SERVICE REQUIREMENT.—(1) The service re4 quirement referred to in subsection (b) is as follows: 

5 ‘‘(A) After September 30, 2003, the indi6 vidual—

7 ‘‘(i) first enters on active duty; 

8 ‘‘(ii) reenlists or extends an enlistment on 

9 active duty as a member of the Armed Forces; 

10 or 

11 ‘‘(iii) in the case of an officer, continues to 

12 serve on active duty after that date. 

13 ‘‘(B) From the date of such entry, reenlistment, 

14 extension, or continuation, as the case may be, the 

15 individual—

16 ‘‘(i) serves a continuous period of active 

17 duty of at least four years in the Armed Forces; 

18 or 

19 ‘‘(ii) serves on active duty in the Armed 

20 Forces and is discharged or released from ac21 tive duty—

22 ‘‘(I) as provided in subclause (I) of 

23 section 3011(a)(1)(A)(ii) of this title (re24 lating to service-connected disabilities and 

25 other medical conditions); 
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1 ‘‘(II) for the convenience of the Gov2 ernment, after having completed not less 

3 than 42 months of continuous active duty; 

4 or 

5 ‘‘(III) as provided in subclause (III) 

6 of section 3011(a)(1)(A)(ii) of this title 

7 (relating to involuntary discharge or re8 lease for the convenience of the Govern9 ment as a result of a reduction in force). 

10 ‘‘(2) In determining service under paragraph (1), the 

11 following rules apply: 

12 ‘‘(A) Any period of service described in para13 graph (2) or (3) of section 3011(d) of this title (re14 lating to periods of service terminated because of a 

15 defective enlistment and periods of service on active 

16 duty which individuals in the Selected Reserve were 

17 ordered to perform under certain provisions of chap18 ter 1209 of title 10, respectively) that applies to an 

19 eligible individual under this section shall not be 

20 considered a part of the individual’s period of active 

21 duty. 

22 ‘‘(B) A member described in paragraph (2) of 

23 section 3011(f) of this title (relating to certain mem24 bers discharged or released who subsequently reen25 list or re-enter on a period of active duty) who 
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1 serves the periods of active duty referred to in such 

2 paragraph shall be deemed to have served a contin3 uous period of active duty the length of which is the 

4 aggregate length of the periods of active duty re5 ferred to in such paragraph. 

6 ‘‘(C) Subsections (g) and (h) of section 3011 of 

7 this title (relating to assignment full time at a civil8 ian institution for courses of education and to com9 mencement of courses of education at a service acad10 emy, respectively) apply with respect to an eligible 

11 individual under this section in the same manner as 

12 they apply to an individual under section 3011 of 

13 this title. 

14 ‘‘(d) ELECTION OF BASIC EDUCATIONAL ASSIST15 ANCE.—(1) An eligible individual entitled to enhanced 

16 educational assistance under this subchapter may elect (in 

17 a form and manner prescribed by the Secretary) to receive 

18 basic educational assistance under subchapter II in lieu 

19 of such enhanced educational assistance for an enrollment 

20 period. Such an election shall be made by not later than 

21 30 days before the beginning of the enrollment period. 

22 ‘‘(2) An eligible individual may revoke an election 

23 made pursuant to paragraph (1), but in no case may such 

24 revocation be made later than 30 days before the begin25 ning of the enrollment period.
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1 ‘‘§ 3042. Duration of enhanced educational assistance 

2 ‘‘(a) IN GENERAL.—Subject to section 3695 of this 

3 title and except as provided in subsection (b), each indi4 vidual entitled to enhanced educational assistance under 

5 section 3041 of this title is entitled to a monthly enhanced 

6 educational assistance allowance under this subchapter for 

7 a period or periods not to exceed a total of 36 months 

8 (or the equivalent thereof in part-time enhanced edu9 cational assistance). 

10 ‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA11 TIONS.—Subject to section 3695 of this title, in the case 

12 of an individual described in subclause (I) or (III) of sec13 tion 3041(c)(1)(B)(ii) of this title (relating to individuals 

14 discharged for service-connected disabilities or medical 

15 conditions or whose service is involuntarily terminated for 

16 the convenience of the Government as a result of a reduc17 tion in force, respectively) who does not serve a continuous 

18 period of active duty of at least four years in the Armed 

19 Forces (as described in section 3041(c)(1)(B)(i) of this 

20 title), the individual is entitled to one month of enhanced 

21 educational assistance benefits under this subchapter (not 

22 to exceed a total of 36 months (or the equivalent thereof 

23 in part-time enhanced educational assistance)) for each 

24 month of continuous active duty served by the individual 

25 beginning with the date on which the entry on active duty, 

26 reenlistment, enlistment extension, or continuation appli-
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1 cable to that individual under section 3041(c)(1)(A) of 

2 this title begins. 

3 ‘‘§ 3043. Payment of educational expenses 

4 ‘‘(a) IN GENERAL.—(1) Subject to paragraph (2), the 

5 Secretary shall pay to the educational institution providing 

6 a course under an approved program of education to an 

7 eligible individual under this subchapter who is enrolled 

8 in the course the actual cost of tuition and fees otherwise 

9 payable by the individual. 

10 ‘‘(2) Such cost may not exceed the amount charged 

11 to nonveterans in similar circumstances. 

12 ‘‘(b) STIPEND; COSTS OF BOOKS AND SUPPLIES.—

13 The Secretary shall pay to each eligible individual under 

14 this subchapter who is pursuing an approved program of 

15 education—

16 ‘‘(1) a stipend as provided in section 3044 of 

17 this title; and 

18 ‘‘(2) in accordance with regulations prescribed 

19 by the Secretary, an amount equal to the average 

20 cost, for the year involved, of books and supplies 

21 payable by individuals pursuing courses of education 

22 at educational institutions. 

23 ‘‘§ 3044. Amount of stipend 

24 ‘‘(a) IN GENERAL.—Except as provided in section 

25 3042 of this title, the stipend under this subchapter shall 
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1 be paid at a monthly rate (as that rate may be increased 

2 pursuant to subsection (b)) as follows: 

3 ‘‘(1) At the monthly rate of $900 for an ap4 proved program of education pursued on a full-time 

5 basis. 

6 ‘‘(2) At the monthly rate of $700 for an ap7 proved program of education pursued on a three8 quarter-time basis. 

9 ‘‘(3) At the monthly rate of $500 for an ap10 proved program of education pursued on a half-time 

11 basis. 

12 ‘‘(4) At the monthly rate of $300 for an ap13 proved program of education pursued on less than a 

14 half-time basis. 

15 ‘‘(b) ADJUSTMENT FOR INFLATION.—With respect to 

16 any fiscal year beginning after fiscal year 2004, the Sec17 retary shall provide a percentage increase (rounded to the 

18 nearest dollar) in the rates payable under subsection (a) 

19 equal to the percentage by which—

20 ‘‘(1) the Consumer Price Index (all items, 

21 United States city average) for the 12–month period 

22 ending on the June 30 preceding the beginning of 

23 the fiscal year for which the increase is made, ex24 ceeds 
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1 ‘‘(2) such Consumer Price Index for the 12–

2 month period preceding the 12-month period de3 scribed in paragraph (1).’’. 

4 (b) CONFORMING AMENDMENTS.—(1) Section 3002 

5 of such title is amended by inserting at the end the fol6 lowing new paragraph: 

7 ‘‘(9) The term ‘enhanced educational assistance’ 

8 means educational assistance provided under subchapter 

9 V.’’. 

10 (2) Section 3011 of such title is amended in sub11 section (f)(1) and (g) by striking ‘‘chapter’’ each place it 

12 appears and inserting ‘‘subchapter’’. 

13 (3) Section 3018A(a) of such title is amended by 

14 striking ‘‘education assistance under this chapter’’ and in15 serting ‘‘educational assistance under this subchapter’’. 

16 (4) Section 3018B of such title is amended by strik17 ing ‘‘education assistance under this chapter’’ each place 

18 it appears and inserting ‘‘educational assistance under 

19 this subchapter’’. 

20 (5) Section 3018C of such title is amended by strik21 ing ‘‘educational assistance under this chapter’’ each place 

22 it appears and inserting ‘‘educational assistance under 

23 this subchapter’’. 
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1 (6) Section 3019 of such title is amended by striking 

2 ‘‘chapter’’ each place it appears and inserting ‘‘sub3 chapter’’. 

4 (7) Section 3031 of such title is amended—

5 (A) in subsection (f), by inserting ‘‘or 3042 of 

6 this title’’ after ‘‘section 3013’’ each place it ap7 pears; and 

8 (B) in subsection (g), by inserting ‘‘or 

9 3031(c)(1)(B)(ii)(III)’’ after ‘‘section 

10 3011(a)(1)(A)(ii)(III)’’.

11 (8) Section 3032(e)(3) of such title is amended by 

12 inserting ‘‘, or section 3044(a)(1)’’ after ‘‘section 3015’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of chapter 30 of title 38, United States 

15 Code, is amended by adding at the end the following new 

16 items:

‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL ASSISTANCE 

‘‘3041. Enhanced educational assistance entitlement. 

‘‘3042. Duration of enhanced educational assistance. 

‘‘3043. Payment of educational expenses. 

‘‘3044. Amount of stipend.’’.

17 SEC. 3. INCREASE IN RATES OF BASIC EDUCATIONAL AS18 SISTANCE UNDER MONTGOMERY GI BILL. 

19 (a) RATES FOR BASIC EDUCATIONAL ASSISTANCE.—

20 Section 3015 of title 38, United States Code, is amend21 ed—
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1 (1) in subsection (a)(1)(C), by striking ‘‘$985’’ 

2 and inserting ‘‘1,200’’; and 

3 (2) in subsection (b)(1)(C), by striking ‘‘$800’’ 

4 and inserting ‘‘$950’’. 

5 (b) APPLICATION OF INDEX BASED ON COSTS OF

6 HIGHER LEARNING.—Section 3015(h) of such title is 

7 amended to read as follows: 

8 ‘‘(h)(1) With respect to any fiscal year, the Secretary 

9 shall provide a percentage increase (rounded to the near10 est dollar) in the rates payable under subsections (a)(1) 

11 and (b)(1) equal to the percentage (as determined by the 

12 Secretary) by which—

13 ‘‘(A) the average monthly costs of tuition and 

14 expenses for commuter students at public institu15 tions of higher learning that award baccalaureate 

16 degrees for purposes of subsections (a)(1) and (b)(1) 

17 for the fiscal year involved, exceeds 

18 ‘‘(B) such average monthly costs for the pre19 ceding fiscal year. 

20 ‘‘(2) The Secretary shall make the determination 

21 under paragraph (1) after consultation with the Secretary 

22 of Education. 

23 ‘‘(3) A determination made under paragraph (1) in 

24 a year shall take effect on October 1 of that year and 

25 apply with respect to basic educational assistance allow-
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1 ances payable under this section for the fiscal year begin2 ning in that year. 

3 ‘‘(4) Not later than September 30 each year, the Sec4 retary shall publish in the Federal Register the average 

5 monthly costs of tuition and expenses as determined under 

6 paragraph (1) in that year.’’. 

7 (c) EFFECTIVE DATES.—(1) The amendments made 

8 by subsection (a) shall apply with respect to payments for 

9 months beginning after September 30, 2003. 

10 (2) The amendment made by subsection (b) shall 

11 apply to payments for months beginning after September 

12 20, 2004. 

13 SEC. 4. REPEAL OF PAY REDUCTION AND HIGH SCHOOL 

14 GRADUATION REQUIREMENT FOR PARTICI15 PATION IN BASIC EDUCATIONAL ASSISTANCE 

16 UNDER MONTGOMERY GI BILL. 

17 (a) REPEAL OF PAY REDUCTION AND ELECTION OF

18 BENEFITS.—(1) Section 3011 of title 38, United States 

19 Code, is amended—

20 (A) by striking subsection (b); and 

21 (B) in subsection (c), by striking paragraph (1) 

22 and redesignating paragraphs (2) and (3) as para23 graphs (1) and (2), respectively. 

24 (2) Section 3012 of such title is amended—

25 (A) by striking subsection (c); and 
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1 (B) in subsection (d), by striking paragraph (1) 

2 and redesignating paragraphs (2) and (3) as para3 graphs (1) and (2), respectively. 

4 (3) Section 3016(a)(1) of such title is amended by 

5 striking ‘‘, and does not make an election under section 

6 3011(c)(1) or section 3012(d)(1)’’. 

7 (4) The amendments made by this subsection shall 

8 take effect on October 1, 2003, and apply to individuals 

9 whose initial obligated period of active duty under section 

10 3011 or 3012 of title 38, United States Code, as the case 

11 may be, begins on or after such date. 

12 (5) Any reduction in the basic pay of an individual 

13 referred to in subsection (b) of section 3011 of title 38, 

14 United States Code, by reason of such subsection, or of 

15 any individual referred to in subsection (c) of section 3012 

16 of such title by reason of such subsection, shall cease com17 mencing with months beginning after September 30, 

18 2003, and any obligation of such individual under such 

19 subsections, as the case may be, as of September 30, 

20 2003, shall be deemed to be fully satisfied as of such date. 

21 (b) REPEAL OF HIGH SCHOOL GRADUATION RE22 QUIREMENT.—(1) Section 3011(a) of title 38, United 

23 States Code, is amended—

24 (A) by striking paragraph (2); and 
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1 (B) by redesignating paragraph (3) as para2 graph (2). 

3 (2) Section 3012(a) of such title is amended—

4 (A) by striking paragraph (2); and 

5 (B) by redesignating paragraph (3) as para6 graph (2). 

7 (3) Section 3018(b) of such title is amended—

8 (A) by striking paragraph (4); 

9 (B) by inserting ‘‘and’’ at the end of paragraph 

10 (3)(C); and 

11 (C) by redesignating paragraph (5) as para12 graph (4). 

13 (4) The amendments made by this subsection shall 

14 take effect on the date of the enactment of this Act and 

15 apply with respect to individuals applying for basic edu16 cational assistance under chapter 30 of title 38, United 

17 States Code, on or after such date. 

18 (c) EXCLUSION FROM INCOME FOR ELIGIBILITY DE19 TERMINATIONS FOR FEDERAL EDUCATIONAL LOANS.—

20 Section 3015 of such title is amended—

21 (1) by redesignating subsection (h), as amended 

22 in section 3(b), as subsection (i); and 

23 (2) by inserting after subsection (g) the fol24 lowing new subsection: 
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1 ‘‘(h) EXCLUSION FROM INCOME FOR ELIGIBILITY

2 DETERMINATIONS FOR FEDERAL EDUCATIONAL

3 LOANS.—Notwithstanding any other provision of law, 

4 amounts payable by the Secretary under this subchapter 

5 with respect to an eligible individual shall not be consid6 ered as income for purposes of determining eligibility of 

7 such individual for education grants or loans under any 

8 other provision of Federal law.’’.

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