59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–358 

VETERANS EMPLOYMENT, EDUCATION, AND 

HEALTHCARE IMPROVEMENT ACT 

DECEMBER 1, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. MILLER of Florida, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 3016] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 3016) to amend title 38, United States Code, to clarify 

the role of podiatrists in the Department of Veterans Affairs, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 24 

Background and Need for Legislation .................................................................... 26 

Hearings ................................................................................................................... 52 

Subcommittee Consideration .................................................................................. 54 

Committee Consideration ........................................................................................ 55 

Committee Votes ...................................................................................................... 56 

Committee Oversight Findings ............................................................................... 57 

Statement of General Performance Goals and Objectives .................................... 57 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 57 

Earmarks and Tax and Tariff Benefits .................................................................. 57 

Committee Cost Estimate ....................................................................................... 57 

Congressional Budget Office Estimate ................................................................... 57 

Federal Mandates Statement ................................................................................. 71 

Advisory Committee Statement .............................................................................. 71 

Constitutional Authority Statement ...................................................................... 71 

Applicability to Legislative Branch ........................................................................ 71 


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Statement on Duplication of Federal Programs .................................................... 71 

Disclosure of Directed Rulemaking ........................................................................ 71 

Section-by-Section Analysis of the Legislation ...................................................... 71 

Changes in Existing Law Made by the Bill as Reported ...................................... 88 

Dissenting Views ..................................................................................................... 224 

AMENDMENT

The amendments are as follows: 

Strike out all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Veterans Employment, Education, and Healthcare Improvement Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—VETERANS HEALTH CARE 

Sec. 101. Role of podiatrists in Department of Veterans Affairs. 

Sec. 102. Priority of medal of honor recipients in health care system of Department of Veterans Affairs. 

Sec. 103. Improvement of care provided to newborn children. 

Sec. 104. Comptroller General audit of budget of Veterans Health Administration. 

Sec. 105. Outreach to veterans regarding effect of certain delayed payments by Department of Veterans Affairs 

Chief Business Office. 

Sec. 106. Department of Veterans Affairs pilot program on dog training therapy. 

TITLE II—VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION 

Sec. 201. Establishment of Veterans Economic Opportunity and Transition Administration. 

Sec. 202. Under Secretary for Veterans Economic Opportunity and Transition. 

Sec. 203. Transfer of Department of Labor veterans programs to Department of Veterans Affairs. 

Sec. 204. Deputy Under Secretary of Veterans Affairs for Veterans’ Employment, Training, and Transition. 

Sec. 205. Additional technical and conforming amendments. 

Sec. 206. Use of Federal directory of new hires. 

TITLE III—EDUCATION ASSISTANCE AND VOCATIONAL REHABILITATION 

Sec. 301. Modification and improvement of transfer of unused education benefits to family members under Department of Veterans Affairs Post-9/11 Educational Assistance Program. 

Sec. 302. Clarification of eligibility for Marine Gunnery Sergeant John David Fry Scholarship. 

Sec. 303. Approval of courses of education and training for purposes of the vocational rehabilitation program 

of the Department of Veterans Affairs. 

Sec. 304. Authority to prioritize vocational rehabilitation services based on need. 

Sec. 305. Recodification and improvement of election process for Post-9/11 Educational Assistance Program. 

Sec. 306. Clarification of assistance provided for certain flight training and other programs of education. 

Sec. 307. Consideration of certain time spent receiving medical care from Secretary of Defense as active duty 

for purposes of eligibility for post-9/11 educational assistance. 

Sec. 308. Work-study allowance. 

Sec. 309. Vocational rehabilitation and education action plan. 

Sec. 310. Reduction in redundancy and inefficiencies in vocational rehabilitation claims processing. 

TITLE IV—ADMINISTRATION OF EDUCATIONAL ASSISTANCE 

Sec. 401. Centralized reporting of veteran enrollment by certain groups, districts, and consortiums of educational institutions. 

Sec. 402. Provision of information regarding veteran entitlement to educational assistance. 

Sec. 403. Role of State approving agencies. 

Sec. 404. Criteria used to approve courses. 

Sec. 405. Compliance surveys. 

Sec. 406. Survey of individuals using their entitlement to educational assistance under the educational assistance programs administered by the Secretary of Veterans Affairs. 

Sec. 407. Improvement of information technology of the Veterans Benefits Administration of the Department 

of Veterans Affairs. 

Sec. 408. Technical amendment relating to in-State tuition rate for individuals to whom entitlement is transferred under All-Volunteer Force Educational Assistance Program and Post-9/11 Educational Assistance. 

TITLE V—OTHER MATTERS 

Sec. 501. Amount of loan guaranteed under home loan program of Department of Veterans Affairs. 

Sec. 502. Longitudinal study of job counseling, training, and placement service for veterans. 

Sec. 503. Limitations on subcontracts under contracts with small business concerns owned and controlled by 

veterans. 

Sec. 504. Procedures for provision of certain information to State veterans agencies to facilitate the furnishing 

of assistance and benefits to veterans. 

TITLE I—VETERANS HEALTH CARE 

SEC. 101. ROLE OF PODIATRISTS IN DEPARTMENT OF VETERANS AFFAIRS. 

(a) INCLUSION AS PHYSICIAN.— 

(1) IN GENERAL.—Subchapter I of chapter 74 of title 38, United States Code, 

is amended by adding at the end the following new section: 


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‘‘§ 7413. Treatment of podiatrists 

‘‘For purposes of this chapter, the term ‘physician’ includes a podiatrist.’’. 

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such 

chapter is amended by inserting after the item relating to section 7412 the following new item: 

‘‘7413. Treatment of podiatrists.’’. 

(3) CONFORMING AMENDMENT.—Section 7401(1) of such title is amended by 

striking ‘‘Physicians, dentists, podiatrists,’’ and inserting ‘‘Physicians, dentists,’’. 

(b) QUALIFICATIONS.—Section 7402(b) of such title is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (A), by striking ‘‘or of doctor of osteopathy’’ and inserting ‘‘, doctor of osteopathy, or doctor of podiatric medicine’’; and 

(B) in subparagraph (C), by inserting ‘‘podiatry,’’ after ‘‘surgery,’’; 

(2) by striking paragraph (5); and 

(3) by redesignating paragraphs (6) through (14) as paragraphs (5) through 

(13), respectively. 

(c) PERIOD OF APPOINTMENT.—Section 7403(a)(2) of such title is amended— 

(1) by striking subparagraph (C); and 

(2) by redesignating subparagraphs (D) through (H) as subparagraphs (C) 

through (G), respectively. 

(d) MODIFICATION OF PAY GRADE.— (1) GRADE.—The list in section 7404(b) of such title is amended by striking 

‘‘CLINICAL PODIATRIST, CHIROPRACTOR, AND OPTOMETRIST SCHEDULE’’ and inserting ‘‘CLINICAL CHIROPRACTOR AND OPTOMETRIST 

SCHEDULE’’. 

(2) APPLICATION.—The amendment made by paragraph (1) shall apply with 

respect to a pay period of the Department of Veterans Affairs beginning on or 

after the date that is 30 days after the date of the enactment of this Act. 

(e) CONTRACTS FOR SCARCE SERVICES.—Section 7409(a) of such title is amended 

by striking ‘‘podiatrists,’’. 

(f) PERSONNEL ADMINISTRATION.—Section 7421(b) of such title is amended— 

(1) by striking paragraph (3); and 

(2) by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), 

respectively. 

(g) MEDICAL DIRECTORS.—Section 7306(a)(4) of such title is amended by inserting 

‘‘, doctor of podiatric medicine,’’ after ‘‘doctor of medicine’’. 

(h) APPLICATION.—The amendments made by this section shall apply with respect 

to podiatrists employed by the Department of Veterans Affairs as of the date of the 

enactment of this Act or who are appointed on or after such date. 

SEC. 102. PRIORITY OF MEDAL OF HONOR RECIPIENTS IN HEALTH CARE SYSTEM OF DEPARTMENT OF VETERANS AFFAIRS. 

(a) ENROLLMENT PRIORITY.—Section 1705(a) of title 38, United States Code, is 

amended— 

(1) in paragraph (1), by striking the period at the end and inserting the following: ‘‘and veterans who were awarded the medal of honor under section 

3741, 6241, or 8741 of title 10 or section 491 of title 14.’’; and 

(2) in paragraph (3), by striking ‘‘veterans who were awarded the medal of 

honor under section 3741, 6241, or 8741 of title 10 or section 491 of title 14,’’. 

(b) ELIGIBILITY.—Section 1710(a)(2)(D) of such title is amended by inserting after 

‘‘war’’ the following: ‘‘, who was awarded the medal of honor under section 3741, 

6241, or 8741 of title 10 or section 491 of title 14,’’. 

(c) EXTENDED CARE SERVICES.—Section 1710B(c)(2) of such title is amended— 

(1) in subparagraph (B), by striking ‘‘or’’; 

(2) in subparagraph (C), by striking the period at the end and inserting ‘‘; or’’; 

and 

(3) by adding at the end the following new subparagraph: 

‘‘(D) to a veteran who was awarded the medal of honor under section 3741, 

6241, or 8741 of title 10 or section 491 of title 14.’’. 

(d) COPAYMENT FOR MEDICATIONS.—Section 1722A(a)(3) of such title is amended— 

(1) in subparagraph (B), by striking ‘‘or’’; 

(2) in subparagraph (C), by striking the period at the end and inserting ‘‘; or’’; 

and 

(3) by adding at the end the following new subparagraph: 

‘‘(D) to a veteran who was awarded the medal of honor under section 3741, 

6241, or 8741 of title 10 or section 491 of title 14.’’. 

(e) APPLICATION.—The priority of enrollment of medal of honor recipients pursuant to chapter 17 of title 38, United States Code, as amended by this section, shall 

apply to each such recipient, regardless of the date on which the medal is awarded. 


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SEC. 103. IMPROVEMENT OF CARE PROVIDED TO NEWBORN CHILDREN. 

Section 1786 of title 38, United States Code, is amended— 

(1) in subsection (a), by striking ‘‘seven days’’ and inserting ‘‘42 days’’; and 

(2) by adding at the end the following new subsection: 

‘‘(c) ANNUAL REPORT.—Not later than October 31, 2016, and each year thereafter 

through 2020, the Secretary shall submit to the Committees on Veterans’ Affairs of 

the House of Representatives and the Senate a report on the health care services 

provided under subsection (a) during the fiscal year preceding the date of the report, 

including the number of newborn children who received such services during such 

fiscal year.’’. 

SEC. 104. COMPTROLLER GENERAL AUDIT OF BUDGET OF VETERANS HEALTH ADMINISTRATION. 

(a) IN GENERAL.—Subchapter II of chapter 73 of title 38, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 7330B. Comptroller General audit of VHA budget 

‘‘(a) IN GENERAL.—The Comptroller General of the United States shall periodically 

conduct an audit of elements of the budget of the Veterans Health Administration, 

including the budget formulation, execution, allocation, and use of funds. 

‘‘(b) SELECTION OF ELEMENTS.—(1) In selecting elements of the budget of the Veterans Health Administration for purposes of an audit under subsection (a), the 

Comptroller General shall take into consideration— 

‘‘(A) knowledge of the programs of the Veterans Health Administration; 

‘‘(B) current issues; 

‘‘(C) national priorities; and 

‘‘(D) priorities expressed by the appropriate congressional committees. 

‘‘(2) Not later than 30 days before conducting an audit under subsection (a), the 

Comptroller General shall submit to the appropriate congressional committees notice of the elements selected by the Comptroller General for purposes of the audit. 

‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES.—In this section, the term ‘appropriate congressional committees’ means— 

‘‘(1) the Committee on Veterans’ Affairs, the Committee on Appropriations, 

and the Committee on the Budget of the Senate; and 

‘‘(2) the Committee on Veterans’ Affairs, the Committee on Appropriations, 

and the Committee on the Budget of the House of Representatives.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by inserting after the item relating to section 7330A the following new 

item: 

‘‘7330B. Comptroller General audit of VHA budget.’’. 

SEC. 105. OUTREACH TO VETERANS REGARDING EFFECT OF CERTAIN DELAYED PAYMENTS 

BY DEPARTMENT OF VETERANS AFFAIRS CHIEF BUSINESS OFFICE. 

(a) OUTREACH.—The Secretary of Veterans Affairs shall conduct outreach, including through national and local veterans service organizations, to inform veterans of 

how to resolve credit issues caused by delayed payment of a claim for emergency 

hospital care, medical services, or other emergency health care furnished through 

a non-Department of Veterans Affairs provider. The Secretary shall establish a tollfree telephone number for veterans to report such credit issues to the Chief Business Office of the Department of Veterans Affairs. 

(b) ANNUAL REPORT.— 

(1) IN GENERAL.—During the five-year period beginning on the date of the enactment of this Act, the Secretary of Veterans Affairs shall annually submit to 

Congress a report on the effectiveness of the Chief Business Office in providing 

timely payment of proper invoices for emergency hospital care, medical services, 

or other emergency health care furnished through non-Department of Veterans 

Affairs providers by the required payment date during both the five-year period 

preceding the date of the report and the one-year period preceding such date. 

For any part of the period covered by a report under this subsection that occurred before October 1, 2014, the report shall evaluate the provision of such 

payments by the Veterans Integrated Service Networks. 

(2) MATTERS INCLUDED.—The reports under paragraph (1) shall include, for 

each period covered by the report, the following: 

(A) The number of veterans who contacted the Secretary regarding a delayed payment that negatively affected, or will potentially negatively affect, 

the credit of the veteran. 

(B) The total amount of interest penalties paid by the Secretary of Veterans Affairs under section 3902 of title 31, United States Code, by reason 

of a delayed payment. 


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(C) The number of proper invoices submitted, listed in a table for each 

quarter and fiscal year of each such period that includes— 

(i) the total amount owed by the Secretary under the proper invoices; 

(ii) the payment status of each proper invoice, as of the date of the 

report; and 

(iii) the period that elapsed until each proper invoice was paid, including an explanation of any delayed payment. 

(D) Any comments regarding delayed payments made by medical providers. 

(E) A description of the best practices that the Chief Business Office can 

carry out to provide timely payment of a proper invoice, including a plan 

to improve such timely payments. 

(c) QUARTERLY REPORTS ON PENDING CLAIMS.—During the five-year period beginning on the date of the enactment of this Act, the Chief Business Office of the Department of Veterans Affairs shall submit to Congress quarterly reports on the 

number of pending claims for reimbursement for emergency hospital care, medical 

services, and other emergency health care furnished through non-Department of 

Veterans Affairs providers. Each such report shall include each of the following: 

(1) The total number of such pending claims for each hospital system of the 

Department, as of the last day of the quarter covered by the report. 

(2) The total number of veterans who submitted such a pending claim in each 

State, as of such day. 

(3) The aggregate amount of all such pending claims in each State, as of such 

day. 

(4) As of such day— 

(A) the number of such pending claims that have been pending for 30 

days or longer; 

(B) the number of such pending claims that have been pending for 90 

days or longer; and 

(C) the number of such pending claims that have been pending for 365 

days or longer. 

(5) For each hospital system, for the quarter covered by the report— 

(A) the number of claims for reimbursement for emergency hospital care, 

medical services, and other emergency health care furnished through nonDepartment of Veterans Affairs providers approved during such quarter; 

(B) the number of such claims denied during such quarter; and 

(C) the number of such claims denied listed by each denial reason group. 

(d) COMPTROLLER GENERAL STUDY.— (1) IN GENERAL.—The Comptroller General of the United States shall conduct 

a study that evaluates the effectiveness of the Chief Business Office in providing timely payment of a proper invoice for emergency hospital care, medical 

services, or other emergency health care furnished through non-Department of 

Veterans Affairs providers by the required payment date. 

(2) SUBMITTAL.—The Comptroller General shall submit to Congress a report 

on the study conducted under paragraph (1), including the total amount of interest penalties paid by the Secretary of Veterans Affairs under section 3902 

of title 31, United States Code, by reason of a delayed payment. 

(e) DEFINITIONS.—In this section: 

(1) The term ‘‘delayed payment’’ means a proper invoice that is not paid by 

the Secretary of Veterans Affairs until after the required payment date. 

(2) The term ‘‘proper invoice’’ has the meaning given that term in section 

3901(a) of title 31, United States Code. 

(3) The term ‘‘required payment date’’ means the date that payment is due 

for a contract pursuant to section 3903(a) of title 31, United States Code. 

SEC. 106. DEPARTMENT OF VETERANS AFFAIRS PILOT PROGRAM ON DOG TRAINING THERAPY. 

(a) IN GENERAL.—Commencing not later than 120 days after the date of the enactment of the Act, the Secretary of Veterans Affairs shall carry out a pilot program 

under which the Secretary shall enter into a contract with one or more appropriate 

non-government entities for the purpose of assessing the effectiveness of addressing 

post-deployment mental health and post-traumatic stress disorder symptoms 

through a therapeutic medium of training service dogs for veterans with disabilities. 

(b) DURATION OF PILOT PROGRAM.—The pilot program required by subsection (a) 

shall be carried out during the five-year period beginning on the date of the commencement of the pilot program. 

(c) LOCATIONS OF PILOT PROGRAM.—In entering into contracts for purposes of the 

pilot program, the Secretary shall seek to enter into contracts with appropriate nongovernment entities located in close proximity to at least three but not more than 

five medical centers of the Department. 


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(d) APPROPRIATE NON-GOVERNMENT ENTITIES.—For purposes of the pilot program, 

an appropriate non-government entity is an entity that is certified in the training 

and handling of service dogs and that has a training area that would be appropriate 

for use in educating veterans with mental health conditions in the art and science 

of service dog training and handling. Such training area shall— 

(1) include a dedicated space that is suitable for grooming and training dogs 

indoors; 

(2) be wheelchair accessible; 

(3) include classroom or lecture space; 

(4) include office space for staff; 

(5) include a suitable space for storing training equipment; 

(6) provide for periodic use of other training areas for training the dogs with 

wheelchairs and conducting other exercises; 

(7) include outdoor exercise and toileting space for dogs; and 

(8) provide transportation for weekly field trips to train dogs in other environments. 

(e) DESIGN OF PILOT PROGRAM.—Each contract entered into under subsection (a) 

shall provide that the non-government entity shall— 

(1) ensure that veterans participating in the program receive training from 

certified service dog training instructors; 

(2) ensure that in selecting assistance dogs for use in the program, dogs residing in animal shelters or foster homes are looked at as an option, if appropriate, 

and ensure that all dogs used in the program have adequate temperament and 

health clearances; 

(3) ensure that each service dog in training participating in the pilot program 

is taught all essential commands pertaining to service dog skills; 

(4) ensure that each service dog in training lives at the pilot program site or 

a volunteer foster home in the vicinity of such site while receiving training; 

(5) ensure that the pilot program involves both lecture of service dog training 

methodologies and practical hands-on training and grooming of service dogs; 

and 

(6) ensure that the pilot program is designed to— 

(A) maximize the therapeutic benefits to veterans participating in the 

program; and 

(B) provide well-trained service dogs to veterans with disabilities; and 

(7) in hiring service dog training instructors to carry out training under the 

pilot program, give a preference to veterans who have successfully graduated 

from post-traumatic stress disorder or other residential treatment programs and 

who have received adequate certification in service dog training. 

(f) ADMINISTRATION.—In order to carry out the pilot program under section (a), the 

Secretary of Veterans Affairs shall— 

(1) administer the program through the Recreation Therapy Service of the Department of Veterans Affairs under the direction of a certified recreational therapist with sufficient administrative experience to oversee the pilot program; and 

(2) establish a director of service dog training with a background working in 

social services, experience in teaching others to train service dogs in a vocational setting, and at least one year of experience working with veterans or active duty service members with post-traumatic stress disorder in a clinical setting. 

(g) VETERAN ELIGIBILITY.—The Secretary shall select veterans for participation in 

the pilot program. A veteran with post-traumatic stress disorder or other post-deployment mental health condition may volunteer to participate in the pilot program, 

if the Secretary determines that there are adequate program resources available for 

such veteran at the pilot program site. Veterans may participate in the pilot program in conjunction with the compensated work therapy program of the Department 

of Veterans Affairs. 

(h) COLLECTION OF DATA.—The Secretary shall collect data on the pilot program 

required under subsection (a) to determine how effective the program is for the veterans participating in the program. Such data shall include data to determine how 

effectively the program assists veterans in— 

(1) reducing stigma associated with post-traumatic stress disorder or other 

post-deployment mental health condition; 

(2) improving emotional regulation; 

(3) improving patience; 

(4) instilling or re-establishing a sense of purpose; 

(5) providing an opportunity to help fellow veterans; 

(6) reintegrating into the community; 

(7) exposing the dog to new environments and in doing so, helping the veteran 

reduce social isolation and withdrawal; 


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(8) building relationship skills, including parenting skills; 

(9) relaxing the hyper-vigilant survival state; 

(10) improving sleep patterns; and 

(11) enabling veterans to decrease the use of pain medication. 

(i) REPORTS TO CONGRESS.—Not later than one year after the date of the commencement of the pilot program under subsection (a), and each year thereafter for 

the duration of the pilot program, the Secretary shall submit to Congress a report 

on the pilot program. Each such report shall include— 

(1) the number of veterans participating in the pilot program; 

(2) a description of the services carried out under the pilot program; 

(3) the effects that participating in the pilot program has on the following— 

(A) symptoms of post-traumatic stress disorder and post-deployment adjustment difficulties, including depression, maintenance of sobriety, suicidal 

ideations, and homelessness; 

(B) potentially relevant physiological markers that possibly relate to the 

interactions with the service dogs; 

(C) family dynamics; 

(D) insomnia and pain management; and 

(E) overall well-being; and 

(4) the recommendations of the Secretary with respect to the extension or expansion of the pilot program. 

(j) DEFINITION.—For the purposes of this section, the term ‘‘service dog training 

instructor’’ means an instructor who provides the direct training of veterans with 

post-traumatic stress disorder and other post-deployment issues in the art and 

science of service dog training and handling. 

TITLE II—VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION 

SEC. 201. ESTABLISHMENT OF VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION. 

(a) VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION.— (1) IN GENERAL.—Part V of title 38, United States Code, is amended by adding at the end the following new chapter: 

‘‘CHAPTER 80—VETERANS ECONOMIC OPPORTUNITY AND 

TRANSITION ADMINISTRATION 

‘‘Sec. 

‘‘8001. Organization of Administration. 

‘‘8002. Functions of Administration. 

‘‘§ 8001. Organization of Administration 

‘‘(a) VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION.—There 

is in the Department of Veterans Affairs a Veterans Economic Opportunity and 

Transition Administration. The primary function of the Veterans Economic Opportunity and Transition Administration is the administration of the programs of the 

Department that provide assistance related to economic opportunity to veterans and 

their dependents and survivors. 

‘‘(b) UNDER SECRETARY FOR ECONOMIC OPPORTUNITY AND TRANSITION.—The Veterans Economic Opportunity and Transition Administration is under the Under Secretary for Veterans Economic Opportunity and Transition, who is directly responsible to the Secretary for the operations of the Administration. 

‘‘(c) DEPUTY UNDER SECRETARIES.—The Veterans Economic Opportunity and 

Transition Administration shall have two Deputy Under Secretaries as follows: 

‘‘(1) The Deputy Under Secretary for Readjustment, who shall be the principal 

assistant of the Under Secretary for Veterans Economic Opportunity and Transition with respect to the programs specified in paragraphs (1) through (4) of 

section 8002 of this title. 

‘‘(2) The Deputy Under Secretary for Employment, Training, and Transition, 

who shall be the principal assistant of the Under Secretary for Veterans Economic Opportunity and Transition with respect to the programs specified in 

paragraphs (5) through (9) of section 8002 of this title. 

‘‘§ 8002. Functions of Administration 

‘‘The Veterans Economic Opportunity and Transition Administration is responsible for the administration of the following programs of the Department: 

‘‘(1) Vocational rehabilitation and employment programs. 

‘‘(2) Educational assistance programs. 


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‘‘(3) Veterans’ housing loan and related programs. 

‘‘(4) The verification of small businesses owned and controlled by veterans 

pursuant to subsection (f) of section 8127 of this title, including the administration of the database of veteran-owned businesses described in such subsection. 

‘‘(5) Job counseling, training, and placement services for veterans under chapter 41 of this title. 

‘‘(6) Employment and training of veterans under chapter 42 of this title. 

‘‘(7) Administration of employment and employment rights of members of the 

uniformed services under chapter 43 of this title. 

‘‘(8) Homeless veterans reintegration programs under chapter 20 of this title. 

‘‘(9) The Transition Assistance Program under section 1144 of title 10. 

‘‘(10) Any other program of the Department that the Secretary determines appropriate.’’. 

(2) CLERICAL AMENDMENTS.—The tables of chapters at the beginning of title 

38, United States Code, and of part V of title 38, United States Code, are each 

amended by inserting after the item relating to chapter 79 the following new 

item: 

‘‘80. Veterans Economic Opportunity and Transition Administration .............................................. 8001’’. 

(b) EFFECTIVE DATE.—Chapter 80 of title 38, United States Code, as added by 

subsection (a) shall take effect on October 1, 2016. 

(c) FULL-TIME EMPLOYEES.—For fiscal years 2017 and 2018, the total number of 

full-time equivalent employees authorized for the Veterans Benefits Administration 

and the Veterans Economic Opportunity and Transition Administration, as established under chapter 80 of title 38, United States Code, as added by subsection (a), 

may not exceed 22,118. 

(d) HOMELESS VETERANS REINTEGRATION PROGRAMS.—Nothing in section 8002 of 

title 38, United States Code, as added by subsection (a), or in any other amendment 

made by this title, shall affect the provision of funds to grant recipients under section 2021 or 2021A of title 38, United States Code. 

SEC. 202. UNDER SECRETARY FOR VETERANS ECONOMIC OPPORTUNITY AND TRANSITION. 

(a) UNDER SECRETARY.— 

(1) IN GENERAL.—Chapter 3 of title 38, United States Code, is amended by 

inserting after section 306 the following new section: 

‘‘§ 306A. Under Secretary for Veterans Economic Opportunity and Transition 

‘‘(a) UNDER SECRETARY.—There is in the Department an Under Secretary for Veterans Economic Opportunity and Transition, who is appointed by the President, by 

and with the advice and consent of the Senate. The Under Secretary for Veterans 

Economic Opportunity and Transition shall be appointed without regard to political 

affiliation or activity and solely on the basis of demonstrated ability in— 

‘‘(1) information technology; and 

‘‘(2) the administration of programs within the Veterans Economic Opportunity and Transition Administration or programs of similar content and scope. 

‘‘(b) RESPONSIBILITIES.—The Under Secretary for Veterans Economic Opportunity 

and Transition is the head of, and is directly responsible to the Secretary for the 

operations of, the Veterans Economic Opportunity and Transition Administration. 

‘‘(c) VACANCIES.—(1) Whenever a vacancy in the position of Under Secretary for 

Veterans Economic Opportunity and Transition occurs or is anticipated, the Secretary shall establish a commission to recommend individuals to the President for 

appointment to the position. 

‘‘(2) A commission established under this subsection shall be composed of the following members appointed by the Secretary: 

‘‘(A) Three persons representing education and training, vocational rehabilitation, employment, real estate, mortgage finance and related industries, and survivor benefits activities affected by the Veterans Economic Opportunity and 

Transition Administration. 

‘‘(B) Two persons representing veterans served by the Veterans Economic Opportunity and Transition Administration. 

‘‘(C) Two persons who have experience in the management of private sector 

benefits programs of similar content and scope to the economic opportunity and 

transition programs of the Department. 

‘‘(D) The Deputy Secretary of Veterans Affairs. 

‘‘(E) The chairman of the Veterans’ Advisory Committee on Education formed 

under section 3692 of this title. 

‘‘(F) One person who has held the position of Under Secretary for Veterans 

Economic Opportunity and Transition, if the Secretary determines that it is desirable for such person to be a member of the commission. 


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‘‘(3) A commission established under this subsection shall recommend at least 

three individuals for appointment to the position of Under Secretary for Veterans 

Economic Opportunity and Transition. The commission shall submit all recommendations to the Secretary. The Secretary shall forward the recommendations 

to the President and the Committees on Veterans’ Affairs of the Senate and House 

of Representatives with any comments the Secretary considers appropriate. Thereafter, the President may request the commission to recommend additional individuals for appointment. 

‘‘(4) The Assistant Secretary or Deputy Assistant Secretary of Veterans Affairs 

who performs personnel management and labor relations functions shall serve as 

the executive secretary of a commission established under this subsection. 

‘‘(d) QUALIFICATIONS OF RECOMMENDED INDIVIDUALS.—Each individual recommended to the President by the commission for appointment to the position of 

Under Secretary for Veterans Economic Opportunity and Transition shall be an individual who has held a senior level position in the private sector with responsibilities relating to at least one of the following: 

‘‘(1) Education policy. 

‘‘(2) Vocational rehabilitation. 

‘‘(3) Employment. 

‘‘(4) Job placement. 

‘‘(5) Home loan finance. 

‘‘(6) Small business development.’’. 

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such 

chapter is amended by inserting after the item relating to section 306 the following new item: 

‘‘306A. Under Secretary for Veterans Economic Opportunity and Transition.’’. 

(b) CONFORMING AMENDMENTS.—Title 38, United States Code, is further amended— 

(1) in section 306(c)(2), by striking subparagraphs (A) and (E) and redesignating subparagraphs (B), (C), (D), and (F), as subparagraphs (A) through (D), 

respectively; 

(2) in section 317(d)(2), by inserting after ‘‘Under Secretary for Benefits,’’ the 

following: ‘‘the Under Secretary for Veterans Economic Opportunity and Transition,’’; 

(3) in section 318(d)(2), by inserting after ‘‘Under Secretary for Benefits,’’ the 

following: ‘‘the Under Secretary for Veterans Economic Opportunity and Transition,’’; 

(4) in section 516(e)(2)(C), by striking ‘‘Health and the Under Secretary for 

Benefits’’ and inserting ‘‘Health, the Under Secretary for Benefits, and the 

Under Secretary for Veterans Economic Opportunity and Transition’’; 

(5) in section 541(a)(2)(B), by striking ‘‘Health and the Under Secretary for 

Benefits’’ and inserting ‘‘Health, the Under Secretary for Benefits, and the 

Under Secretary for Veterans Economic Opportunity and Transition’’; 

(6) in section 542(a)(2)(B)(iii), by striking ‘‘Health and the Under Secretary for 

Benefits’’ and inserting ‘‘Health, the Under Secretary for Benefits, and the 

Under Secretary for Veterans Economic Opportunity and Transition’’; 

(7) in section 544(a)(2)(B)(vi), by striking ‘‘Health and the Under Secretary for 

Benefits’’ and inserting ‘‘Health, the Under Secretary for Benefits, and the 

Under Secretary for Veterans Economic Opportunity and Transition’’; 

(8) in section 709(c)(2)(A), by inserting after ‘‘Under Secretary for Benefits,’’ 

the following: ‘‘the Under Secretary for Veterans Economic Opportunity and 

Transition,’’; 

(9) in section 7701(a), by inserting after ‘‘assistance’’ the following: ‘‘, other 

than assistance related to Economic Opportunity and Transition,’’; and 

(10) in section 7703, by striking paragraphs (2) and (3) and redesignating 

paragraphs (4) and (5) as paragraphs (2) and (3), respectively. 

(c) EFFECTIVE DATE.—Section 306A of title 38, United States Code, as added by 

subsection (a), and the amendments made by this section, shall take effect on October 1, 2016. 

SEC. 203. TRANSFER OF DEPARTMENT OF LABOR VETERANS PROGRAMS TO DEPARTMENT OF 

VETERANS AFFAIRS. 

(a) TRANSFER OF FUNCTIONS.— 

(1) IN GENERAL.—Effective October 1, 2016, there shall be transferred to the 

Secretary of Veterans Affairs all functions performed under the following programs of the Department of Labor, and all personnel, assets, and liabilities pertaining to such programs, immediately before such transfer occurs: 

(A) Job counseling, training, and placement services for veterans under 

chapter 41 of title 38, United States Code. 


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(B) Employment and training of veterans under chapter 42 of such title. 

(C) Administration of employment and employment rights of members of 

the uniformed services under chapter 43 of such title. 

(D) Homeless veterans reintegration programs under chapter 20 of such 

title. 

(2) ORGANIZATION.—The programs, and the personnel, assets, and liabilities 

pertaining to such programs, transferred to the Secretary under paragraph (1) 

shall be administered as part of the Veterans Economic Opportunity and Transition Administration established by section 8001 of title 38, United States 

Code, as added by section 201. 

(b) BUDGET REQUEST.—Under section 1105 of title 31, United States Code, the 

President shall include in the President’s budget request for the Department of Veterans Affairs for fiscal year 2017, and for each subsequent fiscal year, funding requested for the functions referred to in subsection (a)(1). 

(c) REFERENCES.—Any reference in any other Federal law, Executive order, rule, 

regulation, or delegation of authority, or any document of or pertaining to a department or office from which a function is transferred by this section— 

(1) to the head of such department or office is deemed to refer to the head 

of the department or office to which such function is transferred; or 

(2) to such department or office is deemed to refer to the department or office 

to which such function is transferred. 

(d) EXERCISE OF AUTHORITIES.—Except as otherwise provided by law, a Federal 

official to whom a function is transferred by this section may, for purposes of performing the function, exercise all authorities under any other provision of law that 

were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date 

of the transfer of the function under this section. 

(e) SAVINGS PROVISIONS.— 

(1) LEGAL DOCUMENTS.—All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges— 

(A) that have been issued, made, granted, or allowed to become effective 

by the President, the Secretary of Labor, the Secretary of Veterans Affairs, 

any officer or employee of any office transferred by this section, or any 

other Government official, or by a court of competent jurisdiction, in the 

performance of any function that is transferred by this section, and 

(B) that are in effect on the effective date of such transfer (or become effective after such date pursuant to their terms as in effect on such effective 

date), 

shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any 

other authorized official, a court of competent jurisdiction, or operation of law. 

(2) PROCEEDINGS.—This section shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending on the date of the enactment of this section before an office transferred by this section, but such proceedings and applications shall be continued. 

Orders shall be issued in such proceedings, appeals shall be taken therefrom, 

and payments shall be made pursuant to such orders, as if this section had not 

been enacted, and orders issued in any such proceeding shall continue in effect 

until modified, terminated, superseded, or revoked by a duly authorized official, 

by a court of competent jurisdiction, or by operation of law. Nothing in this subsection shall be considered to prohibit the discontinuance or modification of any 

such proceeding under the same terms and conditions and to the same extent 

that such proceeding could have been discontinued or modified if this section 

had not been enacted. 

(3) SUITS.—This section shall not affect suits commenced before the date of 

the enactment of this section, and in all such suits, proceeding shall be had, 

appeals taken, and judgments rendered in the same manner and with the same 

effect as if this section had not been enacted. 

(4) NONABATEMENT OF ACTIONS.—No suit, action, or other proceeding commenced by or against the Department of Labor or the Secretary of Labor, or 

by or against any individual in the official capacity of such individual as an officer or employee of an office transferred by this section, shall abate by reason 

of the enactment of this section. 

(5) CONTINUANCE OF SUITS.—If any Government officer in the official capacity 

of such officer is party to a suit with respect to a function of the officer, and 

under this section such function is transferred to any other officer or office, then 

such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party. 


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(6) ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW.—Except as otherwise 

provided by this section, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to 

any function transferred by this section shall apply to the exercise of such function by the head of the Federal agency, and other officers of the agency, to 

which such function is transferred by this section. 

(f) TRANSFER OF ASSETS.—Except as otherwise provided in this section, so much 

of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in 

connection with a function transferred to an official or agency by this section shall 

be available to the official or the head of that agency, respectively, at such time or 

times as the Director of the Office of Management and Budget directs for use in connection with the functions transferred. 

(g) DELEGATION AND ASSIGNMENT.—Except as otherwise expressly prohibited by 

law or otherwise provided in this section, an official to whom functions are transferred under this section (including the head of any office to which functions are 

transferred under this section) may delegate any of the functions so transferred to 

such officers and employees of the office of the official as the official may designate, 

and may authorize successive redelegations of such functions as may be necessary 

or appropriate. No delegation of functions under this section or under any other provision of this section shall relieve the official to whom a function is transferred 

under this section of responsibility for the administration of the function. 

(h) AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET WITH

RESPECT TO FUNCTIONS TRANSFERRED.— 

(1) DETERMINATIONS.—If necessary, the Director of Management and Budget 

shall make any determination of the functions that are transferred under this 

section. 

(2) INCIDENTAL TRANSFERS.—The Director, at such time or times as the Director shall provide, may make such determinations as may be necessary with regard to the functions transferred by this section, and to make such additional 

incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as may be necessary to carry out the 

provisions of this section. The Director shall provide for the termination of the 

affairs of all entities terminated by this section and for such further measures 

and dispositions as may be necessary to effectuate the purposes of this section. 

(i) CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.—For purposes of 

this section, the vesting of a function in a department or office pursuant to reestablishment of an office shall be considered to be the transfer of the function. 

(j) AVAILABILITY OF EXISTING FUNDS.—Existing appropriations and funds available for the performance of functions, programs, and activities terminated pursuant 

to this section shall remain available, for the duration of their period of availability, 

for necessary expenses in connection with the termination and resolution of such 

functions, programs, and activities. 

(k) MEMORANDUM OF UNDERSTANDING.—Not later than 180 days after the date of 

the enactment of this Act, the Secretary of Veterans Affairs and the Secretary of 

Labor shall— 

(1) enter into a memorandum of understanding to carry out this section, 

which shall include— 

(A) a description of how the Department of Veterans Affairs will coordinate with the Employment and Training Agency at the Department of 

Labor to ensure coordination and avoid duplication among activities authorized the Workforce Innovation and Opportunity Act (Public Law 113–128) 

and the activities referred to in subsection (a)(1)(A) through (D); and 

(B) a description of how the Department of Veterans Affairs will share 

the performance accountability measures required under subsection (l)(1) 

with the Employment and Training Agency of the Department of Labor; 

and 

(2) jointly submit to the Committee on Veterans’ Affairs and the Committee 

on Education and the Workforce of the House of Representatives and the Committee on Veterans’ Affairs and the Committee on Health, Education, Labor, 

and Pensions of the Senate a copy of such memorandum. 

(l) COORDINATION WITH REQUIREMENTS UNDER WIOA.— 

(1) PERFORMANCE ACCOUNTABILITY.—The Secretary of Veterans Affairs shall 

establish performance accountability measures for the activities carried out pursuant to the programs referred to in subsection(a)(1)(A) through (D), which shall 

meet or exceed the requirements of section 116(b) of the Workforce Innovation 

and Opportunity Act (Public Law 113–128; 29 U.S.C. 3141). 


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(2) STATE PLANS.—The Secretary shall ensure that each State develops and 

submits to the Secretary a combined State plan that meets or exceeds the requirements under section 103 of the Workforce Innovation and Opportunity Act 

(Public Law 113–128; 29 U.S.C. 3113) for activities authorized under chapter 

41 of title 38, United States Code. 

(m) DEFINITIONS.—For purposes of this section— 

(1) the term ‘‘function’’ includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program; and 

(2) the term ‘‘office’’ includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof. 

SEC. 204. DEPUTY UNDER SECRETARY OF VETERANS AFFAIRS FOR VETERANS’ EMPLOYMENT, 

TRAINING, AND TRANSITION. 

(a) IN GENERAL.—Subsection (a) of section 4102A of title 38, United States Code, 

is amended to read as follows: 

‘‘(a) DEPUTY UNDER SECRETARY FOR VETERANS’ EMPLOYMENT, TRAINING, AND

TRANSITION.—(1) The Deputy Under Secretary for Employment, Training, and Transition established by subsection (c)(2) of section 8001 of this title shall formulate and 

implement all departmental policies and procedures to carry out this chapter and 

the other programs described in such subsection. 

‘‘(2) The employees of the Department administering chapter 43 of this title shall 

be administratively and functionally responsible to the Deputy Under Secretary for 

Employment, Training, and Transition.’’. 

(b) CLERICAL AMENDMENTS.—Chapter 41 of title 38, United States Code, is 

amended as follows: 

(1) The section heading of section 4102A of such title is amended to read as 

follows: 

‘‘§ 4102A. Deputy Under Secretary for Veterans’ Employment, Training, and 

Transition; program functions; Regional Administrators’’. 

(2) The item relating to such section in the table of sections at the beginning 

of such chapter is amended to read as follows: 

‘‘4102A. Deputy Under Secretary for Veterans’ Employment, Training, and Transition; program functions; Regional Administrators.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

October 1, 2016. 

SEC. 205. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS. 

(a) CHAPTER 41.—Chapter 41 of title 38, United States Code, as amended by this 

title, is further amended as follows: 

(1) By striking ‘‘Assistant Secretary of Labor for Veterans’ Employment and 

Training’’ each place it appears and inserting ‘‘Deputy Under Secretary for Employment, Training, and Transition’’. 

(2) By striking ‘‘Department of Labor’’ each place it appears and inserting 

‘‘Department’’. 

(3) By striking ‘‘Secretary of Labor’’ each place it appears and inserting ‘‘Secretary’’. 

(4) In section 4101, by striking paragraph (8). 

(5) In section 4102A(b)— 

(A) in paragraph (1), by striking ‘‘such Assistant Secretary’’ and inserting 

‘‘such Deputy Under Secretary’’; and 

(B) in paragraph (3), by striking ‘‘and consulting with the Secretary of 

Veterans Affairs’’. 

(6) In section 4105(b), by striking ‘‘and the Secretary of Veterans Affairs’’ both 

places it appears. 

(7) By striking section 4108. 

(8) In the table of sections at the beginning of such chapter, by striking the 

item relating to section 4108. 

(9) In section 4110(d), by striking paragraph (1) and redesignating paragraphs 

(2) through (6) as paragraphs (1) through (5), respectively. 

(10) In section 4110A(b), by striking ‘‘Congress’’ and inserting ‘‘the Committees on Veterans’ Affairs of the Senate and House of Representatives’’. 

(11) In section 4114— 

(A) by striking ‘‘Assistant Secretary for Veterans’ Employment and Training’’ each place it appears and inserting ‘‘Deputy Under Secretary for Employment, Training, and Transition’’; and 

(B) in paragraphs (2) and (3) of subsection (b) and in subsections (c) and 

(d), by striking ‘‘Assistant Secretary’’ each place it appears and inserting 

‘‘Deputy Under Secretary’’. 


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(b) CHAPTER 42.—Chapter 42 of title 38, United States Code, is amended as follows: 

(1) By striking ‘‘Secretary of Labor’’ each place it appears and inserting ‘‘Secretary’’. 

(2) By striking ‘‘Department of Labor’’ each place it appears and inserting 

‘‘Department’’. 

(c) CHAPTER 43.—Chapter 43 of title 38, United States Code, is amended as follows: 

(1) In section 4303, by striking paragraph (11). 

(2) In section 4317(b)(2), by striking ‘‘Secretary of Veterans Affairs’’ and inserting ‘‘Secretary’’. 

(3) In section 4321, by striking ‘‘(through the Veterans’ Employment and 

Training Service)’’. 

(4) In section 4332(a)(1), by striking ‘‘of Labor’’. 

(5) In section 4333, by striking ‘‘, the Secretary of Defense, and the Secretary 

of Veterans Affairs’’ and inserting ‘‘and the Secretary of Defense’’. 

(d) CHAPTER 20.—Chapter 20 of title 38, United States Code, is amended as follows: 

(1) In section 2003(a)(4), by striking ‘‘of the Department of Labor’’. 

(2) In section 2011(g)(2), by striking ‘‘the Department of Labor,’’. 

(3) In section 2021— 

(A) in subsection (b), by striking ‘‘that Secretary’’ and inserting ‘‘the Secretary’’; 

(B) in subsection (c)— 

(i) by striking the subsection heading and inserting the following: 

‘‘(c) ADMINISTRATION THROUGH DEPUTY UNDER SECRETARY FOR VETERANS’ EMPLOYMENT, TRAINING, AND TRANSITION.—’’; and 

(ii) by striking ‘‘Assistant Secretary of Labor for Veterans’ Employment and Training’’ and inserting ‘‘Deputy Under Secretary for Employment, Training, and Transition’’; and 

(C) by striking ‘‘Secretary of Labor’’ each place it appears and inserting 

‘‘Secretary’’. 

(4) In section 2021A— 

(A) in subsection (c), by striking ‘‘that Secretary’’ and inserting ‘‘the Secretary’’; 

(B) in subsection (d)— 

(i) by striking the subsection heading and inserting the following: 

‘‘(d) ADMINISTRATION THROUGH DEPUTY UNDER SECRETARY FOR VETERANS’ EMPLOYMENT, TRAINING, AND TRANSITION.—’’; and 

(ii) by striking ‘‘Assistant Secretary of Labor for Veterans’ Employment and Training’’ and inserting ‘‘Deputy Under Secretary for Employment, Training, and Transition’’; and 

(C) by striking ‘‘Secretary of Labor’’ each place it appears and inserting 

‘‘Secretary’’. 

(5) In section 2023— 

(A) in subsection (a), by striking ‘‘and the Secretary of Labor (hereinafter 

in this section referred to as the ‘Secretaries’)’’; 

(B) by striking ‘‘Secretaries’’ each place it appears and inserting ‘‘Secretary’’; and 

(C) in subsection (c)(4), by striking ‘‘determine’’ and inserting ‘‘determines’’. 

(6) In section 2065(b)(5), by striking subparagraph (E) and redesignating subparagraphs (F) through (H) as subparagraphs (E) through (G), respectively. 

(7) In section 2066(a)(3), by striking subparagraph (A) and redesignating subparagraphs (B) through (G) as subparagraphs (A) through (F), respectively. 

(e) OTHER PROVISIONS OF TITLE 38.—Title 38, United States Code, is further 

amended as follows: 

(1) In section 542(a)(2)(B), by striking clause (i) and redesignating clauses (ii) 

and (iii) as clauses (i) and (ii), respectively. 

(2) In section 544(a)(2)(B), by striking clause (i) and redesignating clauses (ii) 

through (vi) as clauses (i) through (v), respectively. 

(3) In section 3118(b), by striking ‘‘and the Assistant Secretary for Veterans’ 

Employment in the Department of Labor’’. 

(4) In section 3119(c), by striking ‘‘the Assistant Secretary for Veterans’ Employment in the Department of Labor,’’. 

(5) In section 3121(a)(3), by striking ‘‘the Assistant Secretary of Labor for Veterans’ Employment and Training of the Department of Labor’’ and inserting 

‘‘the Under Secretary for Veterans Economic Opportunity and Transition’’. 


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(6) In section 3692(a), by striking ‘‘and the Assistant Secretary of Labor for 

Veterans’ Employment and Training shall be ex officio members’’ and inserting 

‘‘an ex officio member’’. 

(7) In section 6306— 

(A) in subsection (a), by striking ‘‘shall arrange with the Secretary of 

Labor for the State employment service to match’’ and inserting ‘‘shall ensure that the State employment service matches’’; and 

(B) in subsection (b), by striking ‘‘, in consultation with the Secretary of 

Labor,’’. 

(f) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

October 1, 2016. 

SEC. 206. USE OF FEDERAL DIRECTORY OF NEW HIRES. 

Section 453A(h) of the Social Security Act (42 U.S.C. 653a(h)) is amended by adding at the end the following new paragraph: 

‘‘(4) SECRETARY OF VETERANS AFFAIRS.—The Secretary of Veterans Affairs 

shall have access to information reported by employers pursuant to subsection 

(b) of this section.’’. 

TITLE III—EDUCATION ASSISTANCE AND 

VOCATIONAL REHABILITATION 

SEC. 301. MODIFICATION AND IMPROVEMENT OF TRANSFER OF UNUSED EDUCATION BENEFITS TO FAMILY MEMBERS UNDER DEPARTMENT OF VETERANS AFFAIRS POST-9/ 

11 EDUCATIONAL ASSISTANCE PROGRAM. 

(a) ELIGIBILITY REQUIREMENTS.—Subsection (b)(1) of section 3319 of title 38, 

United States Code, is amended— 

(1) by striking ‘‘six years’’ and inserting ‘‘ten years’’; and 

(2) by striking ‘‘four more years’’ and inserting ‘‘two more years’’. 

(b) COMMENCEMENT OF USE.—Subsection (g)(1)(A) of such section is amended by 

striking ‘‘six years’’ and inserting ‘‘ten years’’. 

(c) RATE OF PAYMENT.—Subsection (h)(3)(B) of such section is amended by inserting before the period at the end the following: ‘‘, except that the amount of the 

monthly stipend described in subsection (c)(1)(B) or (g)(3)(A)(ii) of section 3313, as 

the case may be, shall be payable in an amount equal to 50 percent of the amount 

of such stipend that would otherwise be payable under this chapter to the individual 

making the transfer’’. 

(d) CLERICAL AMENDMENT.—Such section is further amended by striking ‘‘armed 

forces’’ each place it appears and inserting ‘‘Armed Forces’’. 

(e) APPLICABILITY.—The amendments made by this section shall apply with respect to an election to transfer entitlement under section 3319 of title 38, United 

States Code, that is made on or after the date that is 180 days after the date of 

the enactment of this Act. 

SEC. 302. CLARIFICATION OF ELIGIBILITY FOR MARINE GUNNERY SERGEANT JOHN DAVID 

FRY SCHOLARSHIP. 

(a) IN GENERAL.—Section 701(d) of the Veterans Access, Choice, and Accountability Act of 2014 (Public Law 113–146; 128 Stat. 1796; 38 U.S.C. 3311 note) is 

amended to read as follows: 

‘‘(d) APPLICABILITY.— 

‘‘(1) IN GENERAL.—The amendments made by this section shall apply with respect to a quarter, semester, or term, as applicable, commencing on or after 

January 1, 2015. 

‘‘(2) DEATHS THAT OCCURRED BETWEEN SEPTEMBER 11, 2001, AND DECEMBER 31, 

2005.—For purposes of section 3311(f)(2) of title 38, United States Code, any 

member of the Armed Forces who died during the period beginning on September 11, 2001, and ending on December 31, 2005, is deemed to have died on 

January 1, 2006.’’. 

(b) ELECTION ON RECEIPT OF CERTAIN BENEFITS.—Section 3311(f) of title 38, 

United States Code, is amended— 

(1) in paragraph (3), by striking ‘‘A surviving spouse’’ and inserting ‘‘Except 

as provided in paragraph (4), a surviving spouse’’; 

(2) by redesignating paragraph (4) as paragraph (5); and 

(3) by inserting after paragraph (3) the following new paragraph (4): 

‘‘(4) EXCEPTION FOR CERTAIN ELECTIONS.— 

‘‘(A) IN GENERAL.—An election made under paragraph (3) by a spouse described in subparagraph (B) may not be treated as irrevocable if such election occurred before the date of the enactment of this paragraph. 


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‘‘(B) ELIGIBLE SURVIVING SPOUSE.—A spouse described in this subparagraph is an individual— 

‘‘(i) who is entitled to assistance under subsection (a) pursuant to 

paragraph (9) of subsection (b); and 

‘‘(ii) who was the spouse of a member of the Armed Forces who died 

during the period beginning on September 11, 2001, and ending on December 31, 2005.’’. 

(c) TECHNICAL AMENDMENT.—Paragraph (5) of subsection (f) of section 3311 of 

title 38, United States Code, as redesignated by subsection (b)(2), is amended by 

striking ‘‘that paragraph’’ and inserting ‘‘paragraph (9) of subsection (b)’’. 

(d) YELLOW RIBBON G.I. EDUCATION ENHANCEMENT PROGRAM.—Section 3317(a) of 

such title is amended by striking ‘‘paragraphs (1) and (2) of section 3311(b)’’ and 

inserting ‘‘paragraphs (1), (2), and (9) of section 3311(b) of this title’’. 

SEC. 303. APPROVAL OF COURSES OF EDUCATION AND TRAINING FOR PURPOSES OF THE VOCATIONAL REHABILITATION PROGRAM OF THE DEPARTMENT OF VETERANS AFFAIRS. 

(a) IN GENERAL.—Section 3104(b) of title 38, United States Code, is amended by 

adding at the end the following new sentence: ‘‘To the maximum extent practicable, 

a course of education or training may be pursued by a veteran as part of a rehabilitation program under this chapter only if the course is approved for purposes of 

chapter 30 or 33 of this title. The Secretary may waive the requirement under the 

preceding sentence to the extent the Secretary determines appropriate.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with 

respect to a course of education or training pursued by a veteran who first begins 

a program of rehabilitation under chapter 31 of title 38, United States Code, on or 

after the date that is one year after the date of the enactment of this Act. 

SEC. 304. AUTHORITY TO PRIORITIZE VOCATIONAL REHABILITATION SERVICES BASED ON 

NEED. 

Section 3104 of title 38, United States Code, as amended by section 303, is further 

amended by adding at the end the following new subsection: 

‘‘(c)(1) The Secretary shall have the authority to administer this chapter by 

prioritizing the provision of services under this chapter based on need, as determined by the Secretary. In evaluating need for purposes of this subsection, the Secretary shall consider disability ratings, the severity of employment handicaps, qualification for a program of independent living, income, and any other factor the Secretary determines appropriate. 

‘‘(2) Not later than 90 days before making any changes to the prioritization of the 

provision of services under this chapter as authorized under paragraph (1), the Secretary shall submit to Congress a plan describing such changes.’’. 

SEC. 305. RECODIFICATION AND IMPROVEMENT OF ELECTION PROCESS FOR POST-9/11 EDUCATIONAL ASSISTANCE PROGRAM. 

(a) IN GENERAL.—Subchapter III of chapter 33 of title 38, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 3326. Election to receive educational assistance 

‘‘(a) INDIVIDUALS ELIGIBLE TO ELECT PARTICIPATION IN POST-9/11 EDUCATIONAL

ASSISTANCE.—An individual may elect to receive educational assistance under this 

chapter if such individual— 

‘‘(1) as of August 1, 2009— 

‘‘(A) is entitled to basic educational assistance under chapter 30 of the 

title and has used, but retains unused, entitlement under that chapter; 

‘‘(B) is entitled to educational assistance under chapter 107, 1606, or 1607 

of title 10 and has used, but retains unused, entitlement under the applicable chapter; 

‘‘(C) is entitled to basic educational assistance under chapter 30 of this 

title but has not used any entitlement under that chapter; 

‘‘(D) is entitled to educational assistance under chapter 107, 1606, or 1607 

of title 10 but has not used any entitlement under such chapter; 

‘‘(E) is a member of the Armed Forces who is eligible for receipt of basic 

educational assistance under chapter 30 this title and is making contributions toward such assistance under section 3011(b) or 3012(c) of this title; 

or 

‘‘(F) is a member of the Armed Forces who is not entitled to basic educational assistance under chapter 30 of this title by reason of an election 

under section 3011(c)(1) or 3012(d)(1) of this title; and 

‘‘(2) as of the date of the individual’s election under this paragraph, meets the 

requirements for entitlement to educational assistance under this chapter. 


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‘‘(b) CESSATION OF CONTRIBUTIONS TOWARD GI BILL.—Effective as of the first 

month beginning on or after the date of an election under subsection (a) of an individual described by paragraph (1)(E) of that subsection, the obligation of the individual to make contributions under section 3011(b) or 3012(c) of this title, as applicable, shall cease, and the requirements of such section shall be deemed to be no 

longer applicable to the individual. 

‘‘(c) REVOCATION OF REMAINING TRANSFERRED ENTITLEMENT.— ‘‘(1) ELECTION TO REVOKE.—If, on the date an individual described in paragraph (1)(A) or (1)(C) of subsection (a) makes an election under that subsection, 

a transfer of the entitlement of the individual to basic educational assistance 

under section 3020 of this title is in effect and a number of months of the entitlement so transferred remain unutilized, the individual may elect to revoke all 

or a portion of the entitlement so transferred that remains unutilized. 

‘‘(2) AVAILABILITY OF REVOKED ENTITLEMENT.—Any entitlement revoked by an 

individual under this paragraph shall no longer be available to the dependent 

to whom transferred, but shall be available to the individual instead for educational assistance under chapter 33 of this title in accordance with the provisions of this section. 

‘‘(3) AVAILABILITY OF UNREVOKED ENTITLEMENT.—Any entitlement described 

in paragraph (1) that is not revoked by an individual in accordance with that 

paragraph shall remain available to the dependent or dependents concerned in 

accordance with the current transfer of such entitlement under section 3020 of 

this title. 

‘‘(d) POST-9/11 EDUCATIONAL ASSISTANCE.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2) and except as provided in subsection (e), an individual making an election under subsection (a) shall be entitled to educational assistance under this chapter in accordance with the provisions of this chapter, instead of basic educational assistance under chapter 30 

this title, or educational assistance under chapter 107, 1606, or 1607 of title 10, 

as applicable. 

‘‘(2) LIMITATION ON ENTITLEMENT FOR CERTAIN INDIVIDUALS.—In the case of 

an individual making an election under subsection (a) who is described by paragraph (1)(A) of that subsection, the number of months of entitlement of the individual to educational assistance under this chapter 33 shall be the number of 

months equal to— 

‘‘(A) the number of months of unused entitlement of the individual under 

chapter 30 of this title, as of the date of the election, plus 

‘‘(B) the number of months, if any, of entitlement revoked by the individual under subsection (c)(1). 

‘‘(e) CONTINUING ENTITLEMENT TO EDUCATIONAL ASSISTANCE NOT AVAILABLE

UNDER 9/11 ASSISTANCE PROGRAM.— 

‘‘(1) IN GENERAL.—In the event educational assistance to which an individual 

making an election under subsection (a) would be entitled under chapter 30 of 

this title, or chapter 107, 1606, or 1607 of title 10, as applicable, is not authorized to be available to the individual under the provisions of this chapter the 

individual shall remain entitled to such educational assistance in accordance 

with the provisions of the applicable chapter. 

‘‘(2) CHARGE FOR USE OF ENTITLEMENT.—The utilization by an individual of 

entitlement under paragraph (1) shall be chargeable against the entitlement of 

the individual to educational assistance under this chapter at the rate of one 

month of entitlement under this chapter for each month of entitlement utilized 

by the individual under paragraph (1) (as determined as if such entitlement 

were utilized under the provisions of chapter 30 of this title, or chapter 107, 

1606, or 1607 of title 10, as applicable). 

‘‘(f) ADDITIONAL POST-9/11 ASSISTANCE FOR MEMBERS HAVING MADE CONTRIBUTIONS TOWARD GI BILL.— 

‘‘(1) ADDITIONAL ASSISTANCE.—In the case of an individual making an election 

under subsection (a) who is described by subparagraph (A), (C), or (E) of paragraph (1) of that subsection, the amount of educational assistance payable to 

the individual under this chapter 33 as a monthly stipend payable under paragraph (1)(B) of section 3313(c) of this title, or under paragraphs (2) through (7) 

of that section (as applicable), shall be the amount otherwise payable as a 

monthly stipend under the applicable paragraph increased by the amount equal 

to— 

‘‘(A) the total amount of contributions toward basic educational assistance 

made by the individual under section 3011(b) or 3012(c) of this title, as of 

the date of the election, multiplied by 

‘‘(B) the fraction— 

‘‘(i) the numerator of which is— 


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‘‘(I) the number of months of entitlement to basic educational assistance under chapter 30 of this title remaining to the individual 

at the time of the election; plus 

‘‘(II) the number of months, if any, of entitlement under such 

chapter 30 revoked by the individual under subsection (c)(1); and 

‘‘(ii) the denominator of which is 36 months. 

‘‘(2) MONTHS OF REMAINING ENTITLEMENT FOR CERTAIN INDIVIDUALS.—In the 

case of an individual covered by paragraph (1) who is described by subsection 

(a)(1)(E), the number of months of entitlement to basic educational assistance 

remaining to the individual for purposes of paragraph (1)(B)(i)(II) shall be 36 

months. 

‘‘(3) TIMING OF PAYMENT.—The amount payable with respect to an individual 

under paragraph (1) shall be paid to the individual together with the last payment of the monthly stipend payable to the individual under paragraph (1)(B) 

of section 3313(c) of this title, or under subsections (b) through (g) of that section (as applicable), before the exhaustion of the individual’s entitlement to educational assistance under this chapter. 

‘‘(g) CONTINUING ENTITLEMENT TO ADDITIONAL ASSISTANCE FOR CRITICAL SKILLS

OR SPECIALITY AND ADDITIONAL SERVICE.—An individual making an election under 

subsection (a)(1) who, at the time of the election, is entitled to increased educational 

assistance under section 3015(d) of this title, or section 16131(i) of title 10, or supplemental educational assistance under subchapter III of chapter 30 of this title, 

shall remain entitled to such increased educational assistance or supplemental educational assistance in the utilization of entitlement to educational assistance under 

this chapter, in an amount equal to the quarter, semester, or term, as applicable, 

equivalent of the monthly amount of such increased educational assistance or supplemental educational assistance payable with respect to the individual at the time 

of the election. 

‘‘(h) ALTERNATIVE ELECTION BY SECRETARY.— ‘‘(1) IN GENERAL.—In the case of an individual who, on or after January 1, 

2016, submits to the Secretary an election under this section that the Secretary 

determines is clearly against the interests of the individual, or who fails to 

make an election under this section, the Secretary may make an alternative 

election on behalf of the individual that the Secretary determines is in the best 

interests of the individual. 

‘‘(2) NOTICE.—If the Secretary makes an election on behalf of an individual 

under this subsection, the Secretary shall notify the individual by not later than 

seven days after making such election and shall provide the individual with a 

30-day period, beginning on the date of the individual’s receipt of such notice, 

during which the individual may modify or revoke the election made by the Secretary on the individual’s behalf. The Secretary shall include, as part of such 

notice, a clear statement of why the alternative election made by the Secretary 

is in the best interests of the individual as compared to the election submitted 

by the individual. The Secretary shall provide the notice required under this 

paragraph by electronic means whenever possible. 

‘‘(i) IRREVOCABILITY OF ELECTIONS.—An election under subsection (a) or (c)(1) is 

irrevocable.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by adding at the end the following new item: 

‘‘3326. Election to receive educational assistance.’’. 

(c) CONFORMING REPEAL.—Subsection (c) of section 5003 of the Post-9/11 Veterans 

Educational Assistance Act of 2008 (Public Law 110–252; 38 U.S.C. 3301 note) is 

hereby repealed. 

SEC. 306. CLARIFICATION OF ASSISTANCE PROVIDED FOR CERTAIN FLIGHT TRAINING AND 

OTHER PROGRAMS OF EDUCATION. 

(a) FLIGHT TRAINING.—Subsection (c)(1)(A) of section 3313 of title 38, United 

States Code, is amended— 

(1) in clause (i)— 

(A) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; 

(B) by striking ‘‘In the case of a program of education pursued at a public 

institution of higher learning’’ and inserting ‘‘(I) Subject to subclause (II), 

in the case of a program of education pursued at a public institution of 

higher learning not described in clause (ii)(II)(bb)’’; and 

(C) by adding at the end the following new subclause: 

‘‘(II) In determining the actual net cost for in-State tuition and fees 

pursuant to subclause (I), the Secretary may not pay for tuition and 

fees relating to flight training.’’; and 


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(2) in clause (ii)— 

(A) in subclause (I), by redesignating items (aa) and (bb) as subitems (AA) 

and (BB), respectively; 

(B) in subclause (II), by redesignating items (aa) and (bb) as subitems 

(AA) and (BB), respectively; 

(C) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; 

(D) by striking ‘‘In the case of a program of education pursued at a nonpublic or foreign institution of higher learning’’ and inserting ‘‘(I) In the 

case of a program of education described in subclause (II)’’; and 

(E) by adding at the end the following new subclause: 

‘‘(II) A program of education described in this subclause is any of the 

following: 

‘‘(aa) A program of education pursued at a non-public or foreign 

institution of higher learning. 

‘‘(bb) A program of education pursued at a public institution of 

higher learning in which flight training is required to earn the degree being pursued (including with respect to a dual major, concentration, or other element of such a degree).’’. 

(b) CERTAIN PROGRAMS OF EDUCATION CARRIED OUT UNDER CONTRACT.—Section 

3313(c)(1)(A)(ii)(II) of title 38, United States Code, as added by subsection (a)(2)(E), 

is amended by adding at the end the following new item: 

‘‘(cc) A program of education pursued at a public institution of 

higher learning in which the public institution of higher learning 

enters into a contract or agreement with an entity (other than another public institution of higher learning) to provide such program 

of education or a portion of such program of education.’’. 

(c) APPLICATION.— 

(1) IN GENERAL.—Except as provided by paragraph (2), the amendments made 

by subsection (a) and (b) shall apply with respect to a quarter, semester, or 

term, as applicable, commencing on or after the date of the enactment of this 

Act. 

(2) SPECIAL RULE FOR CURRENT STUDENTS.—In the case of an individual who, 

as of the date of the enactment of this Act, is using educational assistance 

under chapter 33 of title 38, United States Code, to pursue a course of education that includes a program of education described in item (bb) or (cc) of section 3313(c)(1)(A)(ii)(II) of title 38, United States Code, as added by subsections 

(a) and (b), respectively, the amendment made by such subsection shall apply 

with respect to a quarter, semester, or term, as applicable, commencing on or 

after the date that is two years after the date of the enactment of this Act. 

SEC. 307. CONSIDERATION OF CERTAIN TIME SPENT RECEIVING MEDICAL CARE FROM SECRETARY OF DEFENSE AS ACTIVE DUTY FOR PURPOSES OF ELIGIBILITY FOR POST9/11 EDUCATIONAL ASSISTANCE. 

(a) IN GENERAL.—Section 3301(1)(B) of title 38, United States Code, is amended 

by inserting ‘‘12301(h),’’ after ‘‘12301(g),’’. 

(b) APPLICATION.—The amendment made by subsection (a) shall apply with respect to active duty service by a member of a reserve component covered by section 

12301(h) of title 10, United States, beginning on or after the date that is 180 days 

after the date of the enactment of this Act. 

SEC. 308. WORK-STUDY ALLOWANCE. 

Section 3485(a)(4) of title 38, United States Code, is amended by striking ‘‘June 

30, 2013’’ each place it appears and inserting ‘‘June 30, 2013, or the period beginning on June 30, 2016, and ending on June 30, 2021’’. 

SEC. 309. VOCATIONAL REHABILITATION AND EDUCATION ACTION PLAN. 

Not later than 270 days after the date of the enactment of this Act, the Secretary 

of Veterans Affairs shall develop and publish an action plan for improving the services and assistance provided under chapter 31 of title 38, United States Code. Such 

plan shall include each of the following: 

(1) A comprehensive analysis of, and recommendations and a proposed implementation plan for remedying workload management challenges at regional offices of the Department of Veterans Affairs, including steps to reduce counselor 

caseloads of veterans participating in a rehabilitation program under such chapter, particularly for counselors who are assisting veterans with traumatic brain 

injury and post-traumatic stress disorder and counselors with educational and 

vocational counseling workloads. 

(2) A comprehensive analysis of the reasons for the disproportionately low 

percentage of veterans with service-connected disabilities who served in the 


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Armed Forces after September 11, 2001, who opt to participate in a rehabilitation program under such chapter relative to the percentage of such veterans 

who use their entitlement to educational assistance under chapter 33 of title 38, 

United States Code, including an analysis of barriers to timely enrollment in 

rehabilitation programs under chapter 31 of such title and of any barriers to 

a veteran enrolling in the program of that veteran’s choice. 

(3) Recommendations and a proposed implementation plan for encouraging 

more veterans with service-connected disabilities who served in the Armed 

Forces after September 11, 2001, to participate in rehabilitation programs 

under chapter 31 of such title. 

(4) A national staff training program for vocational rehabilitation counselors 

of the Department that includes the provision of— 

(A) training to assist counselors in understanding the very profound disorientation experienced by warriors whose lives and life-plans have been 

upended and out of their control because of their injury; 

(B) training to assist counselors in working in partnership with veterans 

on individual rehabilitation plans; and 

(C) training on post-traumatic stress disorder and other mental health 

conditions and on moderate to severe traumatic brain injury that is designed to improve the ability of such counselors to assist veterans with 

these conditions, including by providing information on the broad spectrum 

of such conditions and the effect of such conditions on an individual’s abilities and functional limitations. 

SEC. 310. REDUCTION IN REDUNDANCY AND INEFFICIENCIES IN VOCATIONAL REHABILITATION CLAIMS PROCESSING. 

(a) VOCATIONAL REHABILITATION CLAIMS.—The Secretary of Veterans Affairs shall 

reduce redundancy and inefficiencies in the use of information technology to process 

claims for rehabilitation programs under chapter 31 of title 38, United States Code, 

by— 

(1) ensuring that all payments for and on behalf of veterans participating in 

a rehabilitation program under such chapter are only processed and paid out 

of one corporate information technology system, in order to eliminate the redundancy of multiple information technology payment systems; and 

(2) enhancing the information technology system supporting veterans participating in such a program to support more accurate accounting of services and 

outcomes for such veterans. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to the Secretary of Veterans Affairs for fiscal year 2016 $10,000,000 to carry out 

this section. 

(c) REPORT.—Not later than 180 days after the date of the enactment of this Act, 

the Secretary of Veterans Affairs shall submit to Congress a report on the changes 

made pursuant to subsection (a). 

TITLE IV—ADMINISTRATION OF EDUCATIONAL 

ASSISTANCE 

SEC. 401. CENTRALIZED REPORTING OF VETERAN ENROLLMENT BY CERTAIN GROUPS, DISTRICTS, AND CONSORTIUMS OF EDUCATIONAL INSTITUTIONS. 

(a) IN GENERAL.—Section 3684(a) of title 38, United States Code, is amended— 

(1) in paragraph (1), by inserting ‘‘32, 33,’’ after ‘‘31,’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(4) For purposes of this subsection, the term ‘educational institution’ may include 

a group, district, or consortium of separately accredited educational institutions located in the same State that are organized in a manner that facilitates the centralized reporting of the enrollments in such group, district, or consortium of institutions.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply with 

respect to reports submitted on or after the date of the enactment of this Act. 

SEC. 402. PROVISION OF INFORMATION REGARDING VETERAN ENTITLEMENT TO EDUCATIONAL ASSISTANCE. 

(a) IN GENERAL.—Subchapter II of chapter 36 of title 38, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 3699. Provision of certain information to educational institutions 

‘‘For each veteran or other individual pursuing a course of education that has 

been approved under this chapter using educational assistance to which the veteran 


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or other individual is entitled under chapter 30, 32, 33, or 35 of this title, the Secretary shall make available to the educational institution offering the course information about the amount of such educational assistance to which the veteran or 

other individual is entitled. Such information shall be provided to such educational 

institution through a secure information technology system accessible by the educational institution and shall be regularly updated to reflect any amounts used by 

the veteran or other individual.’’. 

(b) 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. Provision of certain information to educational institutions.’’. 

SEC. 403. ROLE OF STATE APPROVING AGENCIES. 

(a) APPROVAL OF CERTAIN COURSES.—Section 3672(b)(2)(A) of title 38, United 

States Code, is amended by striking ‘‘the following’’ and all that follows through the 

colon and inserting the following: ‘‘a program of education is deemed to be approved 

for purposes of this chapter if a State approving agency determines that the program is one of the following programs:’’. 

(b) APPROVAL OF OTHER COURSES.—Section 3675 of such title is amended— 

(1) in subsection (a)(1)— 

(A) by striking ‘‘The Secretary or a State approving agency’’ and inserting 

‘‘A State approving agency, or the Secretary when acting in the role of a 

State approving agency,’’; and 

(B) by striking ‘‘offered by proprietary for-profit educational institutions’’ 

and inserting ‘‘not covered by section 3672 of this title’’; and 

(2) in subsection (b), by striking ‘‘the Secretary or the State approving agency’’ 

each place it appears and inserting ‘‘the State approving agency, or the Secretary when acting in the role of a State approving agency,’’. 

SEC. 404. CRITERIA USED TO APPROVE COURSES. 

(a) NONACCREDITED COURSES.—Section 3676(c)(14) of title 38, United States Code, 

is amended by inserting before the period the following: ‘‘if the Secretary, in consultation with the State approving agency and pursuant to regulations prescribed 

to carry out this paragraph, determines such criteria are necessary and treat public, 

private, and proprietary for-profit educational institutions equitably’’. 

(b) ACCREDITED COURSES.—Section 3675(b)(3) of such title is amended by striking 

‘‘and (3)’’ and inserting ‘‘(3), and (14)’’. 

(c) APPLICATION.—The amendment made by subsection (a) shall apply with respect to— 

(1) criteria developed pursuant to paragraph (14) of subsection (c) of section 

3676 of title 38, United States Code, on or after January 1, 2013; and 

(2) an investigation conducted under such subsection that is covered by a reimbursement of expenses paid by the Secretary of Veterans Affairs to a State 

pursuant to section 3674 of such title on or after October 1, 2015. 

SEC. 405. COMPLIANCE SURVEYS. 

(a) IN GENERAL.—Section 3693 of such title is amended— 

(1) by striking subsection (a) and inserting the following new subsection (a): 

‘‘(a)(1) Except as provided in subsection (b), the Secretary shall conduct an annual 

compliance survey of educational institutions and training establishments offering 

one or more courses approved for the enrollment of eligible veterans or persons if 

at least 20 such veterans or persons are enrolled in any such course. The Secretary 

shall— 

‘‘(A) design the compliance surveys to ensure that such institutions or establishments, as the case may be, and approved courses are in compliance with all 

applicable provisions of chapters 30 through 36 of this title; 

‘‘(B) survey each such educational institution and training establishment not 

less than once during every two-year period; and 

‘‘(C) assign not fewer than one education compliance specialist to work on 

compliance surveys in any year for each 40 compliance surveys required to be 

made under this section for such year. 

‘‘(2) The Secretary, in consultation with the State approving agencies, shall— 

‘‘(A) annually determine the parameters of the surveys required under paragraph (1); and 

‘‘(B) not later than September 1 of each year, make available to the State approving agencies a list of the educational institutions and training establishments that will be surveyed during the fiscal year following the date of making 

such list available.’’; and 

(2) by adding at the end the following new subsection: 


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‘‘(c) In this section, the terms ‘educational institution’ and ‘training establishment’ 

have the meaning given such terms in section 3452 of this title.’’. 

(b) CONFORMING AMENDMENTS.—Subsection (b) of such section is amended— 

(1) by striking ‘‘subsection (a) of this section for an annual compliance survey’’ 

and inserting ‘‘subsection (a)(1) for a compliance survey’’; 

(2) by striking ‘‘institution’’ and inserting ‘‘educational institution or training 

establishment’’; and 

(3) by striking ‘‘institution’s demonstrated record of compliance’’ and inserting 

‘‘record of compliance of such institution or establishment’’. 

SEC. 406. SURVEY OF INDIVIDUALS USING THEIR ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER THE EDUCATIONAL ASSISTANCE PROGRAMS ADMINISTERED BY THE 

SECRETARY OF VETERANS AFFAIRS. 

(a) SURVEY REQUIRED.—By not later than 270 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall enter into a contract with 

a non-government entity for the conduct of a survey of a statistically valid sample 

of individuals who have used or are using their entitlement to educational assistance under chapters 30, 32, 33, and 35 of title 38, United States Code, to pursue 

a program of education or training. The contract shall provide that— 

(1) not later than one month before the collection of data under the survey 

begins, the survey shall be submitted to the Committees on Veterans’ Affairs 

of the Senate and House of Representatives; 

(2) the non-government entity shall complete the survey and submit to the 

Secretary the results of the survey by not later than 180 days after entering 

into the contract; and 

(3) the survey shall be conducted by electronic means and by any other means 

the non-government entity determines appropriate. 

(b) INFORMATION TO BE COLLECTED.—The contract under subsection (a) shall provide that the survey shall be designed to collect the following types of information 

about each individual surveyed, where applicable: 

(1) Demographic information, including the highest level of education completed by the individual, the military occupational specialty or specialties of the 

individual while serving on active duty as a member of the Armed Forces or 

as a member of the National Guard or of a Reserve Component of the Armed 

Forces, and whether the individual has a service-connected disability. 

(2) The opinion of the individual regarding participation in the transition assistance program under section 1144 of title 10, United States Code, and the 

effectiveness of the program, including instruction on the use of the benefits 

under laws administered by the Secretary of Veterans Affairs. 

(3) The resources the individual used to help the individual— 

(A) decide to use the individual’s entitlement to educational assistance to 

enroll in a program of education or training; and 

(B) choose the program of education or training the individual pursued. 

(4) The individual’s goal when the individual enrolled in the program of education or training. 

(5) The nature of the individual’s experience with the education benefits processing system of the Department of Veterans Affairs. 

(6) The nature of the individual’s experience with the school certifying official 

of the educational institution where the individual pursued the program of education or training who processed the individual’s claim. 

(7) Any services or benefits the educational institution or program of education or training provided to veterans while the individual pursued the program of education or training. 

(8) The type of educational institution at which the individual pursued the 

program of education or training. 

(9) Whether the individual completed the program of education or training or 

the number of credit hours completed by the individual as of the time of the 

survey, and, if applicable, any degree or certificate obtained by the individual 

for completing the program. 

(10) The employment status of the individual and whether such employment 

status differs from the employment status of the individual prior to enrolling 

in the program of education or training. 

(11) Whether the individual is or was enrolled in a program of education on 

a full-time or part-time basis. 

(12) The opinion of the individual on the effectiveness of the educational assistance program of the Department of Veterans Affairs under which the individual was entitled to educational assistance. 

(13) Whether the individual was ever entitled to a rehabilitation under chapter 31 of title 38, United States Code, and whether the individual participated 

in such a program. 


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(14) A description of any circumstances that prevented the individual from 

using the individual’s entitlement to educational assistance to pursue a desired 

career path or degree. 

(15) Whether the individual is using the individual’s entitlement to educational assistance to pursue a program of education or training or has transferred such an entitlement to a dependent. 

(16) Such other matters as the Secretary determines appropriate. 

(c) REPORT.—Not later than 90 days after receiving the results of the survey required under this section, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report on the results 

of the survey and any recommendations of the Secretary relating to such results. 

Such report shall also include an unedited version of the results of the survey submitted by the non-government entity that conducted the study. 

SEC. 407. IMPROVEMENT OF INFORMATION TECHNOLOGY OF THE VETERANS BENEFITS ADMINISTRATION OF THE DEPARTMENT OF VETERANS AFFAIRS. 

(a) PROCESSING OF CERTAIN EDUCATIONAL ASSISTANCE CLAIMS.—The Secretary of 

Veterans Affairs shall, to the maximum extent possible, make such changes and improvements to the information technology system of the Veterans Benefits Administration of the Department of Veterans Affairs to ensure that— 

(1) to the maximum extent possible, all original and supplemental claims for 

educational assistance under chapter 33 of title 38, United States Code, are adjudicated electronically; and 

(2) rules-based processing is used to make decisions with respect to such 

claims with little human intervention. 

(b) IMPLEMENTATION PLAN.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to Congress a plan 

to implement the changes and improvements described in subsection (a). 

(c) REPORT.—Not later than one year after the date of the enactment of this Act, 

the Secretary of Veterans Affairs shall submit to Congress a report on the implementation of the changes and improvements described in subsection (a). 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to the Secretary of Veterans Affairs $30,000,000 to carry out this section during fiscal years 2016 and 2017. 

SEC. 408. TECHNICAL AMENDMENT RELATING TO IN-STATE TUITION RATE FOR INDIVIDUALS 

TO WHOM ENTITLEMENT IS TRANSFERRED UNDER ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM AND POST-9/11 EDUCATIONAL ASSISTANCE. 

(a) TECHNICAL AMENDMENT.—Section 3679(c)(2)(B) of title 38, United States Code, 

is amended by striking ‘‘or 3319 of this title’’ and all that follows and inserting ‘‘of 

this title or to whom educational assistance is transferred under section 3319 of this 

title.’’. 

(b) APPLICABILITY.—The amendment made by subsection (a) shall apply with respect to a course, semester, or term that begins after July 1, 2016. 

TITLE V—OTHER MATTERS 

SEC. 501. AMOUNT OF LOAN GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT 

OF VETERANS AFFAIRS. 

(a) ADJUSTMENT OF LOAN LIMIT.—Section 3703(a)(1) of title 38, United States 

Code, is amended— 

(1) in subparagraph (A)(i)(IV)— 

(A) by striking ‘‘the lesser of’’; and 

(B) by striking ‘‘or 25 percent of the loan’’; and 

(2) in subparagraph (C), by striking ‘‘Freddie Mac’’ and all that follows 

through the period at the end and inserting ‘‘amount of the loan.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to a loan guaranteed under section 3710 of title 38, United States Code, on 

or after the date that is 30 days after the date of the enactment of this Act. 

SEC. 502. LONGITUDINAL STUDY OF JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE 

FOR VETERANS. 

(a) IN GENERAL.—Chapter 41 of title 38, United States Code, is amended by adding at the end the following new section: 

‘‘§ 4115. Longitudinal study of job counseling, training, and placement service for veterans 

‘‘(a) STUDY REQUIRED.—(1) The Secretary shall enter into a contract with a nongovernment entity to conduct a longitudinal study of a statistically valid sample of 


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each of the groups of individuals described in paragraph (2). The contract shall provide for the study of each such group over a period of at least five years. 

‘‘(2) The groups of individuals described in this paragraph are the following: 

‘‘(A) Veterans who have received intensive services. 

‘‘(B) Veterans who did not receive intensive services but who otherwise received services under this chapter. 

‘‘(C) Veterans who did not seek or receive services under this chapter. 

‘‘(3) The study required by this subsection shall include the collection of the following information for each individual who participates in the study: 

‘‘(A) The average number of months such individual served on active duty. 

‘‘(B) The distribution of disability ratings of such individual. 

‘‘(C) Any unemployment benefits received by such individual. 

‘‘(D) The average number of months such individual was employed during the 

year covered by the report. 

‘‘(E) The average annual starting and ending salaries of any such individual 

who was employed during the year covered by the report. 

‘‘(F) The average annual income of such individual. 

‘‘(G) The average total household income of such individual for the year covered by the report. 

‘‘(H) The percentage of such individuals who own their principal residences. 

‘‘(I) The employment status of such individual. 

‘‘(J) In the case of such an individual who received services under this chapter, whether the individual believes that any service provided by a disabled veterans’ outreach specialist or local veterans’ employment representative helped 

the individual to become employed. 

‘‘(K) In the case of such an individual who believes such a service helped the 

individual to become employed, whether— 

‘‘(i) the individual retained the position of employment for a period of one 

year or longer; and 

‘‘(ii) the individual believes such a service helped the individual to secure 

a higher wage or salary. 

‘‘(L) The conditions under which such individual was discharged or released 

from the Armed Forces. 

‘‘(M) Whether such individual has used any educational assistance to which 

the individual is entitled under this title. 

‘‘(N) Whether such individual has participated in a rehabilitation program 

under chapter 31 of this title. 

‘‘(O) Demographic information about such individual. 

‘‘(P) Such other information as the Secretary determines appropriate. 

‘‘(b) ANNUAL REPORTS.—(1) By not later than July 1 of each year covered by the 

study required under subsection (a), the Secretary shall submit to the Committees 

on Veterans’ Affairs of the Senate and House of Representatives a report on the outcomes of the study during the preceding year. 

‘‘(2) The Secretary shall include in each annual report submitted under paragraph 

(1) any information the Secretary determines is necessary to determine the longterm outcomes of the individuals in the groups described in subsection (a)(2).’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by adding at the end the following new item: 

‘‘4115. Longitudinal study of job counseling, training, and placement service for veterans.’’. 

SEC. 503. LIMITATIONS ON SUBCONTRACTS UNDER CONTRACTS WITH SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS. 

(a) IN GENERAL.—Section 8127 of title 38, United States Code, is amended— 

(1) by redesignating subsection (l) as subsection (m); and 

(2) by inserting after subsection (k) the following new subsection (l): 

‘‘(l) LIMITATIONS ON SUBCONTRACTING.—(1)(A) The requirements applicable to a 

covered small business concern under section 46 of the Small Business Act (15 

U.S.C. 657s) shall apply with respect to a small business concern owned and controlled by a veteran with a service-connected disability or a small business concern 

owned and controlled by a veteran that is awarded a contract that is counted for 

purposes of meeting the goals under subsection (a). 

‘‘(B) For purposes of applying the requirements of section 46 of the Small Business 

Act (15 U.S.C. 657s) pursuant to subparagraph (A), the term ‘similarly situated entity’ used in such section 46 includes a subcontractor for a small business concern 

owned and controlled by a veteran with a service-connected disability or a small 

business concern owned and controlled by a veteran described in such subparagraph 

(A). 

‘‘(2) Before awarding a contract that is counted for purposes of meeting the goals 

under subsection (a), the Secretary shall obtain from an offeror a certification that 


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the offeror will comply with the requirements described in paragraph (1)(A) if 

awarded the contract. Such certification shall— 

‘‘(A) specify the exact performance requirements applicable under such paragraph; and 

‘‘(B) explicitly acknowledge that the certification is subject to section 1001 of 

title 18. 

‘‘(3) If the Secretary determines that a small business concern that is awarded a 

contract that is counted for purposes of meeting the goals under subsection (a) did 

not act in good faith with respect to the requirements described in paragraph (1)(A), 

the small business concern shall be subject to the penalties specified in— 

‘‘(A) section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and 

‘‘(B) section 1001 of title 18. 

‘‘(4)(A) The Director of Small and Disadvantaged Business Utilization for the Department, established pursuant to section 15(k) of the Small Business Act (15 U.S.C. 

644(k)), and the Chief Acquisition Officer of the Department, established pursuant 

to section 1702 of title 41, shall jointly implement a process using the systems described in section 16(g)(2) of the Small Business Act (15 U.S.C. 645(g)(2)), or any 

other systems available, to monitor compliance with this subsection. The Chief Acquisition Officer shall refer any violations of this subsection to the Inspector General 

of the Department. 

‘‘(B) Not later than November 30 of each year, the Inspector General shall submit 

to the Committees on Veterans’ Affairs of the Senate and House of Representatives 

a report for the fiscal year preceding the fiscal year during which the report is submitted that includes, for the fiscal year covered by the report— 

‘‘(i) the number of referred violations received under subparagraph (A); and 

‘‘(ii) the disposition of such referred violations, including the number of small 

business concerns suspended or debarred from Federal contracting or referred 

to the Attorney General for prosecution.’’. 

(b) EFFECTIVE DATE.—Subsection (l) of section 8127 of title 38, United States 

Code, as added by subsection (a) shall apply with respect to a contract entered into 

after the date of the enactment of this Act. 

SEC. 504. PROCEDURES FOR PROVISION OF CERTAIN INFORMATION TO STATE VETERANS 

AGENCIES TO FACILITATE THE FURNISHING OF ASSISTANCE AND BENEFITS TO 

VETERANS. 

(a) PROCEDURES REQUIRED.—The Secretary of Veterans Affairs shall develop procedures to share the information described in subsection (b) regarding veterans with 

State veterans agencies in electronic data format as a means of facilitating the furnishing of assistance and benefits to veterans. 

(b) COVERED INFORMATION.—The information shared with State veterans agencies 

under subsection (a) regarding a veteran shall include the following: 

(1) Military service and separation data. 

(2) A personal email address. 

(3) A personal telephone number. 

(4) A mailing address. 

(c) OPT-OUT ELECTION.—A veteran may elect to prevent their information from 

being shared with State veterans agencies under subsection (a) pursuant to a process that the Secretary shall establish for purposes of this subsection. 

(d) USE OF INFORMATION.—The Secretary shall ensure that the information 

shared with State veterans agencies in accordance with the procedures developed 

under subsection (a) is only shared by such agencies with county government veterans service offices for such purposes as the Secretary shall specify for the administration and delivery of assistance and benefits. 

Amend the title so as to read: 

A bill to amend title 38, United States Code, to make certain improvements in the laws administered by the Secretary of Veterans 

Affairs relating to health care, educational assistance, and vocational rehabilitation, to establish the Veterans Economic Opportunity and Transition Administration, and for other purposes. 

PURPOSE AND SUMMARY

H.R. 3016, the VA Provider Equity Act, was introduced by Representative Wenstrup of Ohio on July 9, 2015. H.R. 3016, as 

amended, the Veterans Employment, Education, and Healthcare 

Improvement Act incorporates the text of H.R. 3016 as well as proVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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visions from the following bills: H.R. 272, introduced by Representative Tim Walberg of Michigan on January 12, 2015; H.R. 356, introduced by Representative Sean Patrick Maloney of New York on 

January 14, 2015; H.R. 359, introduced by Representative Steve 

Stivers of Ohio on January 14, 2015; H.R. 423, introduced by Representative Doug Collins of Georgia on January 21, 2015; H.R. 475, 

introduced by Representative Brad Wenstrup of Ohio on January 

22, 2015; H.R. 476, introduced by Representative Brad Wenstrup 

of Ohio on January 22, 2015; H.R. 643, introduced by Representative Gus Bilirakis of Florida on February 2, 2015; H.R. 832, introduced by Representative Paul Cook of California on February 10, 

2015; H.R. 1015, introduced by Representative Tim Huelskamp of 

Kansas on February 20, 2015; H.R. 1141, introduced by Representative Mark Takano of California on February 26, 2015; H.R. 1187, 

introduced by Representative Lee Zeldin of New York on February 

27, 2015; H.R. 1862, introduced Representative Charles Boustany 

of Louisiana on April 16, 2015; H.R. 2275, introduced by Representative Jeff Miller of Florida on May 12, 2015; H.R. 2344 introduced 

by Representative Brad Wenstrup of Ohio on May 14, 2015; H.R. 

2531, and introduced by Representative Tammy Duckworth of Illinois on May 21, 2015. 

H.R. 3016, as amended, would: (1) make Doctors of Podiatric 

Medicine (podiatrists) equal to Doctors of Osteopathy (DOs) and 

Medical Doctors (MDs) within VA in terms of pay, promotion, and 

leadership potential within the U.S. Department of Veterans Affairs (VA) health care system and amend VA’s definition of ‘‘physician’’ to include podiatrists; (2) increase, from third to first, the priority for enrollment in the VA health care system given to Medal 

of Honor (MOH) recipients and exempt MOH recipients from having to pay co-payments for inpatient care, outpatient care, longterm care, and prescription medications; (3) allow VA to provide 

the newborn child of a female veteran who is receiving VA provided 

maternity care with post-delivery care services for 42 days after the 

child’s birth if the veteran delivered the child in a VA facility or 

another facility with which VA has a contract for such services; (4) 

require the Government Accountability Office (GAO) to conduct 

periodic audits of the VA health care budget; (5) require VA to conduct outreach to and establish a toll-free number for veterans with 

credit issues caused by a delayed payment of a claim for emergency 

hospital care, medical services, or other emergency health care furnished through a non-VA provider, report on the number of pending claims and VA’s effectiveness in providing timely payment of 

proper invoices for emergency hospital care, medical services, or 

other emergency health care furnished through non-VA providers, 

and require GAO to conduct a study that evaluates the effectiveness of the Chief Business Office (CBO) in providing timely payment of a proper invoice for such care by the required payment 

date; (6) direct VA to carry out a 5-year pilot program to assess the 

effectiveness of addressing veterans’ post-traumatic stress disorder 

(PTSD) and post-deployment mental health issues through the 

therapeutic medium of service dog training and handling; (7) authorize the creation of the new Veterans Economic Opportunity and 

Transition Administration (VEOTA) at VA; (8) transfer all programs and functions of the U.S. Department of Labor’s (DoL) Veterans Employment and Training Service (VETS) to VA under the 


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new VEOTA; (9) make various improvements to the G.I. Bill program; (10) provide eligibility for the Post-9/11 GI Bill for 

servicemembers on certain military orders; (11) improve the processing of vocational rehabilitation and education (VR&E) benefits; 

(12) eliminate the current monetary cap for a VA-backed home 

loan; (14) make changes to protect small businesses that are owned 

and controlled by veterans; and (15) authorize a new longitudinal 

study on outcomes of job training and placement programs for veterans. 

BACKGROUND AND NEED FOR LEGISLATION

TITLE I—VETERANS HEALTH CARE

Section 101—Role of podiatrists in the Department of Veterans Affairs 

According to VA data regarding health care utilization among 

veterans of Operation Enduring Freedom, Operation Iraqi Freedom, and Operation New Dawn, of the approximately 61 percent of 

veterans newly separated from service in the Armed Forces who 

have used VA health care since October 1, 2001, the most common 

diagnosis was for a musculoskeletal ailment. Some of these musculoskeletal ailments are the result of lower extremity injuries inflicted by improvised explosive devices on the battlefield. Musculoskeletal ailments are also an increasingly prevalent concern among 

veterans of previous generations who may be struggling with lower 

extremity issues exacerbated by aging, chronic conditions like diabetes, and complications resulting from military service. The recruitment and retention of podiatrists at VA medical facilities is 

critical to ensuring that these veterans are provided with highquality care. However, VA’s qualifications for podiatrists were developed in 1976 and have not been updated in the 39 years since. 

In that time, the practice of podiatry has evolved significantly. Because VA’s podiatric service has not kept pace with these changes, 

VA podiatrists experience disparities in recognition and pay when 

compared to their non-VA peers. During a May 15, 2015, Subcommittee on Health hearing on VA staffing, a representative from 

the American Podiatric Medical Association testified that there was 

a, ‘‘. . . marked disparity in recognition and pay of podiatrists as 

physicians in the VA [healthcare system]. These discrepancies have 

directly resulted in a severe recruitment issue of experienced podiatrists into the VA, and unfortunately have also been the direct 

cause of retention issues.’’ 

To address this, Section 101 of the bill would make podiatrists 

equal to DOs and MDs within VA in terms of pay, make podiatrists 

eligible for the same promotions and leadership positions within 

VA as DOs and MDs, and amend VA’s definition of ‘‘physician’’ to 

include podiatrists. The Committee believes that this will correct 

long-standing inequities between the treatment of podiatrists in VA 

medical facilities and podiatrists’ practices in the private sector and 

significantly improve VA’s ability to recruit and retain high-quality 

podiatrists within the VA health care system. 


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Section 102—Priority of Medal of Honor recipients in health care 

system of Department of Veterans Affairs 

Eligibility for the VA health care system is governed by a system 

of eight enrollment priority groups. Medal of Honor (MOH) recipients—who have been granted the highest award for valor that can 

be bestowed upon an individual for service in the United States 

Armed Forces—are eligible to be enrolled in the VA healthcare system under priority group 3. Other veterans eligible for enrollment 

under priority group 3 include former Prisoners of War, Purple 

Heart recipients, veterans whose discharge was for a disability that 

was incurred or aggravated in the line of duty, veterans with a VArated service-connected disability of 10 percent or 20 percent, and 

veterans awarded special eligibility for purposes of receiving vocational rehabilitation benefits. Veterans in priority group 3 are required to pay applicable VA copayments for certain care. 

Given the extraordinary service that MOH recipients have provided our nation, the Committee believes that these veterans 

should be granted the highest priority for care and should not be 

required to pay copayments for the care that they receive through 

VA. As such, Section 102 of the bill would increase, from third to 

first, the priority for enrollment in the VA health care system given 

to MOH recipients and would also exempt MOH recipients from 

having to pay co-payments for inpatient care, outpatient care, longterm care, and prescription medications. 

Section 103—Improvement of care provided to newborn children 

During the 111th Congress, the Caregivers and Veterans Omnibus Health Services Act of 2010 (P.L. 111–163, 124 Stat. 1130) authorized VA to furnish care to a newborn child of a female veteran 

receiving VA-provided maternity care for up to seven days following the birth of the child, if the female veteran delivered the 

newborn child in a VA facility or in another facility pursuant to a 

VA contract. Prior to this Act, VA had been authorized to provide 

maternity care to female veterans but had not been authorized to 

provide care to the newborn child of a female veteran. VA-provided 

newborn care, like VA-provided maternity care, is typically provided by non-VA providers in non-VA facilities at VA’s expense. VA 

defines newborn care as any care provided to an infant once the 

umbilical cord connecting it to its mother has been severed. 

The number of female veterans requiring VA-provided maternity 

and newborn care is rising. VA expects female veterans to deliver 

2,157 newborns in Fiscal Year (FY) 2016, with 11 percent of those 

births expected to require inpatient hospitalization beyond the 

seven days that VA can currently cover. Further, VA expects the 

number of female veteran births to rise by approximately ten percent from FY 2017 to FY 2025, with the number of newborns delivered preterm or with low birth weight projected to increase 11 percent per year over that same time frame. What’s more, there is evidence to suggest that female veterans, particularly those with 

PTSD are at an increased risk for birth complications. According to 

a 2014 study conducted by VA and the Stanford University School 

of Medicine, a woman’s risk of spontaneous premature delivery increases by 35 percent if the woman has PTSD in the year before 

delivery. The study team analyzed the 16,344 births that VA covered from 2000 to 2012 and found that 3,049 infants were born to 


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female veterans with a PTSD diagnosis. Of those, there were 1,921 

births to female veterans with a PTSD diagnosis in the year prior 

to giving birth. 

Section 103 of the bill would authorize VA to provide the newborn child of a woman veteran who is receiving VA maternity care 

with post-delivery care services for 42 days (six weeks) after the 

child’s birth if the veteran delivered the child in a VA facility or 

another facility with which VA has a contract for such services. 

This would make VA-provided newborn care more equivalent to 

VA-provided maternity care in length, which generally begins with 

the confirmation of pregnancy and continues through the 

postpartum visit 6 to 8 weeks after delivery. 

Section 104—Comptroller general audit of budget of Veterans 

Health Administration 

The Veterans Health Care Budget Reform and Transparency Act 

of 2009 (P.L. 111–81, 123 Stat. 2137) required GAO to report on 

the President’s annual budget request to Congress for VA health 

care services. In response to this mandate, GAO studied the consistency, transparency, and reliability of the information in VA’s 

congressional budget justifications and VA’s Enrollee Health Care 

Projection Model (EHCPM). GAO’s last report conducted in accordance with this budget mandate was released in 2013. In June 2015, 

the Committee uncovered a multi-billion dollar shortfall in VA’s 

Medical Services account which threatened VA’s ability to continue 

treating veteran patients through the remainder of FY 2015. According to VA, this shortfall was driven by increased demand for 

non-VA care and rising costs of Hepatitis C treatments. To prevent 

a nationwide VA health care system shutdown, Congress passed 

the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (P.L. 114–41, 129 Stat. 443), which included 

a section authorizing VA to access $3.348 billion from the Veterans 

Choice Fund to cover the costs of non-VA care and Hepatitis C 

treatments through the end of the FY 2015. However, while that 

action addressed VA’s short-term VA health care budget concerns, 

it also highlighted the need for continuing audits of VA’s health 

care budget. 

To add context to the requirement set forth in this section, VA’s 

FY15 financial report was released on November 16, 2015. While 

the auditor gave VA’s financial statements an unmodified, i.e. 

‘‘clean’’ opinion, internal controls have deteriorated. VA now has 

material weaknesses in its IT security controls, procurement, purchased care processing and reconciliation, and financial reporting. 

VA has significant deficiencies in operating expense accrual and 

the organization of its office of the Chief Financial Officer. In addition, Anti-deficiency Act violations and noncompliance with section 

5315 of title 38, U.S.C. (dealing with interest on and recovery of 

delinquent benefits payments) continue, and there are new noncompliances with the Federal Managers’ Financial Integrity Act 

and the Improper Payments Elimination and Recovery Act. The 

overall picture of financial operations in VA has worsened from 

FY14. 

As such, Section 104 of the bill would require GAO to conduct 

periodic audits of the Veterans Health Administration (VHA) budget. In determining which aspect of VHA’s budget to audit, GAO 


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1 5 C.F.R. Part 1315. 

would be required to take into account current issues, national priorities, and priorities expressed by the House and Senate Committees on Veterans’ Affairs, Appropriations, and Budget and to submit notice to those same committees 30 days before conducting the 

audit. This would ensure that GAO’s work is in line with the specific aspects of VA’s health care budget that are of the highest interest and value to Congress. 

Section 105—Outreach to Veterans regarding effect of certain delayed payments by Department of Veterans Affairs chief business office 

Regulations issued in response to the Prompt Payment Act (chapter 39 of title 31, U.S.C.),1 stipulates that valid and proper invoices 

submitted by vendors must be paid on time by federal agencies. 

VA’s ability to timely and accurately process payments to non-VA 

providers, in compliance with the prompt payment rule, is increasingly important as the number of veterans receiving care from nonVA providers continues to rise significantly. The Veterans Access, 

Choice, and Accountability Act of 2014 (P.L. 113–146, 128 Stat. 

1754) (Choice Act) included two provisions aimed at improving the 

timeliness of VA’s payments to non-VA providers. However, since 

the passage of the law, anecdotal reports continue to indicate that 

VA is not meeting this target or otherwise complying with the 

prompt payment rule. In the last year, the Committee has heard 

from health care entities ranging from large-scale hospital corporations to individual providers who report either nonpayment or extremely delayed and/or inaccurate payments on the part of VA. 

This has resulted in millions of dollars of unpaid debt, which, in 

some cases, has been transferred to the veteran patient. 

To assist veterans who have been penalized due to VA’s inability 

or unwillingness to pay non-VA providers in a timely manner, Section 105 of the bill would require VA to conduct outreach to inform 

veterans of how to resolve credit issues caused by a delayed payment of a claim for emergency hospital care, medical services, or 

other emergency health care furnished through a non-VA provider. 

VA would also be required to establish a toll-free telephone number 

for veterans to report credit issues resulting from VA delayed or inaccurate payment to the VA CBO. This Section would also require 

VA to report to Congress annually on the Department’s effectiveness in providing timely payment for care furnished through nonVA providers and quarterly reports on the number of pending 

claims for reimbursement by non-VA providers. This would ensure 

that the Committee is continually kept informed of VA’s progress 

complying with the prompt payment rule while also ensuring that 

veterans are provided resources to assist them in resolving credit 

issues that may result from delayed or inaccurate payments on the 

part of VA. 

Section 106—Department of Veterans Affairs pilot program on dog 

training therapy 

Given the prevalence of PTSD and other post-deployment mental 

health issues among the veteran population, Congress has recognized the need to provide veterans seeking treatment for mental 


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health issues with newer and more innovative therapies. One of 

these therapies is service dog training therapy, which is believed 

to help address symptoms associated with PTSD and post-deployment mental health issues without the use of pharmaceuticals. 

Currently, therapeutic service dog training programs for 

servicemembers and veterans are ongoing at the Walter Reed National Military Medical Center, the National Intrepid Center of Excellence, the Palo Alto VA Medical Center, the Fort Belvoir Warrior 

Transition Brigade, the NeuroRestorative Residential Treatment 

Center, and the Warrior Canine Connection Healing Quarters. Anecdotal reports from servicemembers and veterans who have sought 

care through these programs have been positive, including improved emotional regulation, sleep patterns, and sense of personal 

safety as well as reduced levels of anxiety and social isolation. According to a statement for the record provided to the Subcommittee 

on Health by Warrior Canine Connection for a Subcommittee legislative hearing on July 14, 2015, service dog training programs for 

veterans with mental health issues benefits veterans in the following ways: 

In teaching the dogs that the world is a safe place, the 

Warrior Trainers challenge their symptoms of combat 

stress. By focusing on preparing the dogs for service as the 

partners of disabled veterans, they are motivated and able 

to visit places they usually avoid, like stores, restaurants, 

and crowded public transportation stations. The program 

also emphasizes positive reinforcement, emotional affect, 

consistency, and patience—tools that make Warrior Trainers better parents and improve their family relationships. 

Section 106 of the bill would require VA to carry out a five-year 

pilot program to assess the effectiveness of addressing veterans’ 

post-deployment mental health and PTSD symptoms through the 

therapeutic medium of service dog training and handling. This 

would provide needed data regarding the effectiveness of service 

dog training for reducing symptoms of mental illness among the 

veteran population. In carrying out the pilot, VA would be required 

to contract with appropriate nongovernmental entities certified in 

the training and handling of service dogs located in close proximity 

to at least three but no more than five VA medical centers with a 

training area that would be appropriate for use in educating veterans with mental health conditions in the art and science of service dog training and handling. This would enable more veterans 

with mental health concerns to participate in service dog training 

programs, which the Committee hopes will assist them in reintegrating healthfully back into the community. Upon completion of 

the pilot, the trained service dogs would be provided to veterans 

with disabilities, thereby providing the veterans participating in 

the pilot with an opportunity to help their fellow veterans. The 

pilot program would have the added benefit of providing a possible 

career path to veterans who successfully graduate from the program and are interested in becoming certified dog trainers. 


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TITLE II—VETERANS ECONOMIC OPPORTUNTIY AND TRANSITITION

ADMINISTRATION

Section 201—Establishment of Veteran Economic Opportunity and 

Transition Administration of Department of Veterans Affairs 

Currently, title 38, U.S.C. establishes three separate Administrations within VA. Chapter 73 of title 38, U.S.C. establishes the 

VHA, which manages all VA health care related facilities and programs. Chapter 77 of title 38, U.S.C., establishes the Veterans Benefits Administration (VBA), which is responsible for the administration of all benefit programs, including compensation, pension, 

insurance, educational assistance and training programs, and loan 

guaranty programs. Chapter 24 of title 38, U.S.C. establishes the 

National Cemetery Administration (NCA), which manages over 131 

National Cemeteries and other burial-related facilities and programs. 

VA’s disability compensation program is a highly complex program, designed to provide monthly payments for disabilities incurred or aggravated in military service. With the wars in the Middle East and the aging of the veterans population in general, the 

number of compensation claims that have been received by VA has 

continued to increase. As of August 29, 2015, there are still 356,765 

disability claims backlogged at VA, and over 25 percent of these 

claims have been pending for more than 125 days. These backlogged claims continue to draw considerable criticism from the veterans’ community, as well as Congress, and the media. 

In the 109th Congress, the Committee recognized the importance 

of focusing on programs that increase economic opportunities for 

veterans and lessen reliance on long-term government assistance 

by creating the Subcommittee on Economic Opportunity. This Subcommittee has jurisdiction over education and training, employment, home loan, and other programs that focus on a veteran’s 

ability to obtain and retain meaningful employment. The Committee believes that this increased focus and specialization has 

brought greater attention and needed oversight to these programs 

that seek to enable veterans to live economically-productive lives. 

Understandably, senior VBA leaders spend considerable time and 

resources focusing on decreasing the inventory of disability compensation claims at the expense of time and focus needed for other 

benefit programs. Over time, this has led to less leadership attention to the non-compensation programs. As an example, the Administration’s FY 2016 budget request includes funds to support 21,101 

full time equivalent employees (FTEE) for VBA. Of this number, 

17,119 FTEE were requested to administer disability compensation, pension, burial, dependency indemnity compensation, and fiduciary programs while only 4,752 FTEE were requested for other 

programs. 

The number of FTEE for disability compensation and pension 

has ballooned by 8,160, or 91 percent, since FY 2005, while over 

this same time period, the FTEE for other programs at VBA has 

not grown at the same rate. While it is important to increase staffing to attack the current backlog, the Committee believes that the 

focus on disability compensation and pension results in a lack of 

attention being given to the lengthy waits for benefits from the 

education, vocational rehabilitation, and loan guaranty programs 


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and only undermines the potential for veterans to improve their 

lives through programs that increase economic opportunities. 

Therefore, to ensure more effective oversight of those programs, 

the Committee believes that separating the compensation and pension programs from programs which lead to increased employability 

and economic success would be appropriate. Section 201 would, 

therefore, create chapter 80 in title 38, U.S.C., to establish the Veterans Economic Opportunity and Transition Administration, which 

would manage the G.I. Bill, Home Loan Guaranty, and Vocational 

Rehabilitation and Employment (VR&E) programs, as well as all 

employment programs currently administered by DoL’s VETS. 

Additionally, section 8127 of title 38, U.S.C., established a program to assist VA in meeting the statutory goals for procurement 

of goods and services from service disabled veteran-owned small 

businesses. Because small business ownership can be a significant 

contributor to economic success and due to VA’s continued difficulty 

in administering the service-disabled veteran-owned small business 

program, Section 201 would place the program authorized by section 8127 of title 38, U.S.C., under the supervision of VEOTA. 

The Committee also believes that with the significant growth in 

VA employees, it would be appropriate to staff the new VEOTA 

using existing personnel resources, so this Section would also cap 

the amount of combined FTEE at both VBA and VEOTA to no 

more than 22,118 FTEE for FY 2017 and FY 2018. Finally, in order 

for the organization of the VEOTA to take place in an orderly and 

efficient manner, the amendments made by this Section and title 

would not go into effect until October 1, 2016. The Committee believes this gives VA and DoL enough time to allow for a smooth 

transition in the re-alignment these programs within VEOTA. 

Section 202—Under Secretary for Veterans Economic Opportunity 

and Transition 

Section 202 of the bill would amend title 38, U.S.C., by creating 

the position of Under Secretary for Veterans Economic Opportunity 

and Transition to oversee all VEOTA programs and operations. 

This Section would complement Section 201 of this bill by creating 

this Under Secretary position to put the new VEOTA on par with 

other administrations within VA. 

Under this Section, the new Under Secretary would be appointed 

by the President with the advice and consent of the Senate. The 

Section would also require that the Under Secretary have a demonstrated ability in the use of information technology (IT) and administration of programs similar to those in the new VEOTA. The 

Section would also require that when there is a vacancy for this position, the Secretary would be required to convene a commission to 

recommend individuals to the President for appointment, and that 

the commission consist of individuals who represent a cross section 

of the programs administered by the VEOTA. While the President 

is not bound to appoint any individuals recommended by the commission, the Committee would expect that the commission’s recommendations be seriously considered during the appointment 

process. Finally, the Committee would also expect the commission 

to recommend individuals who have private sector experience in 

running programs similar to those under VEOTA. 


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Section 203—Transfer of Department of Labor Veterans programs to 

Department of Veterans Affairs 

The Committee believes that one of the most important missions 

of the federal government is to help returning servicemembers and 

veterans find and maintain meaningful and gainful employment. 

Many problems and negative life experiences that veterans may experience can be mitigated, or avoided all together, by having wellpaying jobs that adequately provide for them and their families. 

The Committee believes that is why the programs administered by 

VETS are so critically important to veterans’ success. The Department of Labor (DoL) should be ensuring that the employment programs it administers for veterans under chapters 21, 41, 42, and 

43 of title 38, U.S.C., are the crown jewels of their employment programs. The most important of these programs is the Jobs for Veterans State Grant (JVSG) program, which provides grants to states 

to fund job placement and employment counselors called Disabled 

Veteran Outreach Program Specialists (DVOPS) and Local Veteran 

Employment Representatives (LVERs). These counselors are the 

front line state government employees tasked with employment 

training and job placement for disabled and non-disabled veterans. 

Unfortunately, it has become clear to the Committee, and many 

others, that programs administered by VETS are lost in myriad of 

other programs and priorities at DoL and that senior DoL leaders, 

regardless of party, have consistently failed to advocate for, and exercise effective oversight of VETS’ programs. 

While the Committee will admit that services have minimally 

improved over the years, since 1997, there have been more than 16 

reports conducted by the GAO or other entities that have consistently shown that VETS has been unable to provide adequate oversight over the JVSG program and failed to implement adequate 

performance metrics to determine the quality of services provided 

to veterans seeking employment. Additionally, despite legislative 

attempts to improve cooperation and coordination with VA employment and training programs, there is still little evidence of the desired synergy between VA and VETS. The Committee believes this 

is largely due to the normal bureaucratic inertia inherent in getting multiple executive branch departments to coordinate programs. Transferring VETS to VA would eliminate that obstacle to 

improving performance of the Jobs for Veterans State Grant Program. 

The Committee’s negative view of VETS’ programs is shared by 

numerous veteran service organizations. At a February 12, 2015, 

Subcommittee on Economic Opportunity oversight hearing on 

VETS’ FY 2016 budget and overall performance, several veteran 

service organizations expressed displeasure with the current performance of VETS and low priority that DoL places on veterans’ 

programs. The following quotes are from testimony by veterans organizations provided to the Subcommittee at this hearing: 

‘‘Each Secretary of Labor for the last thirty years, including the current Secretary, could have used part of the Secretary’s contingency fund from what is now known as the 

Workforce Investment Act (WIA) to drive behavior in 

states and local areas that help veterans by according incentive grants to those who do the best job of actually placVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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ing veterans in real jobs. None have done so, which renders their rhetoric even more empty and hollow when they 

hold their by invitation only ‘‘Salute to All America Veterans’’ in the Great Hall or another venue in the Francis 

Perkins Building (USDOL Headquarters) just before Veterans Day each year. Security is always tight, lest any 

rank and file veterans get in, and unemployed veterans 

need not apply.’’—Vietnam Veterans of America 

‘‘The American Legion has long supported DOL-VETS, because we believe that when it comes to employment no one 

has more expertise and experience. For our efforts, we 

have been rewarded with ongoing program management 

problems, a lack of accountability and oversight, an agency 

too truculent to make sensible policy changes, and a veterans’ office within the agency that fails to view Veteran 

Service Organizations as partners in the work of improving federal employment services for veterans. It has become painfully clear to us that the agency with the monumental task of keeping America gainfully employed is unable or unwilling to give the requisite attention to veterans’ employment issues that we know our constituents 

deserve.’’—The American Legion 

To finally address these concerns, Section 203 would transfer all 

of the programs administered by VETS to the new VEOTA. The 

Section would require that all unused appropriated funds, proceedings, suits, administrative procedures, rules, and regulations 

that are currently in place for VETS would not change, but be 

transferred to VA. This Section would also require that all of 

VETS’ employees transfer to this new administration at VA, and it 

would be the Committee’s expectation that this change would not 

be the cause of any current career federal staff members losing 

their jobs. The transfer would be effective on October 1, 2016. The 

Section would also require that within 180 days of the transfer, VA 

and DoL enter into a memorandum of understanding to include a 

description of how VA would coordinate with DoL’s Employment 

and Training Agency (ETA) to ensure coordination of services and 

performance metrics required by the Workforce Innovation and Opportunity Act (P.L. 113–128, 128 Stat. 1425) once the transfer of 

VETS is complete. The Committee believes that this coordination 

with ETA is needed to ensure that the employment programs that 

would become a part of VA do not duplicate efforts and that they 

meet performance metrics of employment programs overseen by 

ETA. 

In addition to their criticism of VETS performance, the move to 

VA has also been supported by a large number of veteran service 

organizations including: The American Legion, Iraq and Afghanistan Veterans of America (IAVA), The Veterans of Foreign Wars of 

the United States, Paralyzed Veterans of America, Vietnam Veterans of America, and Disabled American Veterans (DAV). The following is a selection of quotes from testimony provided by veteran 

service organizations at the Subcommittee legislative hearing on 

this Section on June 2, 2015: 

‘‘The creation of a new VA administration that would manage all these programs is a logical, responsible step for 


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Congress to take through this legislative mandate. Plus, 

important to DAV, we believe consolidation offers the potential to streamline and enhance the prospects and training possibilities for wounded, injured and ill wartime veterans, for them to overcome employment obstacles, and 

open up opportunity for them in their post-service 

lives. . . . Veterans who truly sacrifice themselves in war 

need a hand up, not a handout. Reforming this important 

function of government that leads them to rewarding private employment would provide them that hand.’’—Disabled American Veterans 

‘‘We believe that placing all veterans’ employment programs under a single authority will improve congressional 

oversight and government efficiency. . . . By aligning 

VETS programs with the veteran-centric mission of VA, 

veterans will have easier access to employment services.’’—Veterans of Foreign Wars of the United States 

‘‘Veterans we speak to have long reported overlapping 

services have clouded options rather than clarified them. 

GAO reports and feedback from our annual member survey have indicated the performance of LVERs and DVOPS 

under DoL VETS has been stagnant at best and not shown 

the improvement needed to help veterans begin careers. 

Ineffective oversight and the incongruent placement of this 

service within a myriad of other programs over at DoL has 

not proven to be a positive fit.’’—Iraq and Afghanistan Veterans of America 

The Committee believes that this transfer would not only provide 

a new level of oversight of employment programs that are currently 

overseen by VETS, but it would also place these programs under 

the new VEOTA with other veteran education and training programs, which would result in increased collaboration, reduced duplication, and improved opportunities for veterans. The Committee 

understands that this transfer is a major re-alignment of current 

services, so it does not propose moving VETS to VA lightly. However, the Committee believes that this re-alignment will result in 

fewer veterans using expensive government assistance services 

which will ultimately lead to better outcomes for veterans and in 

turn will help our economy grow. 

Section 204—Deputy Under Secretary for Veterans Affairs for Veterans Employment, Training, and Transition 

Section 204 would clarify that the new Deputy Under Secretary 

for Veterans Employment, Training, and Transition would be responsible for the programs that were previously under the jurisdiction of the Assistant Secretary for Veterans Employment and 

Training at DoL. 

Section 205—Additional technical and conforming amendments 

Section 205 would provide various technical and conforming 

amendments to chapters 20, 41, 42, and 43 of title 38, U.S.C., to 

complete the transfer of VETS to VA and the creation of the 

VEOTA. 


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2See ‘‘Welcome to the Air Force’s Post-9/11 GI Bill webpage’’ accessed at http:// 

www.afpc.af.mil/library/gibill/. 3P.L. 112–239, 126 Stat. 1632. 

4http://mldc.whs.mil/faq. 

Section 206—Use of Federal Directory of New Hires 

Section 206 would authorize the new Under Secretary for Veterans Economic Opportunity and Transition access to the National 

Directory of New Hires. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104–193, 110 Stat. 2105) 

created the National Directory of New Hires that was designed to 

use state employment and unemployment data and Federal agencies’ data to help state agencies track down non-custodial parents 

who owe child support. Employers across the country are required 

to notify the new hires directory when they hire a new employee. 

This requirement makes this directory the most up to date system 

for tracking employment in the country. The Committee believes 

that allowing the Under Secretary for the VEOTA to have access 

to this database would greatly assist in tracking employment outcomes of veterans. 

TITLE III—EDUCATION ASSISTANCE AND VOCATIONAL REHABILITATION

Section 301—Modification and improvement of transfer of unused 

education benefits to family members under Department of Veterans Affairs Post-9/11 Educational Assistance Program 

Title V of the Supplemental Appropriations Act of 2008 (P.L. 

110–252, 122 Stat. 2323, 2358 et seq.) created chapter 33 of title 

38, U.S.C., which authorized the Post-9/11 G.I. Bill. Section 3319 

of title 38, U.S.C., authorized eligible servicemembers to transfer 

unused education benefits under the Post-99/11 G.I. Bill to family 

members. Section 3319 requires that the servicemember must 

make an election to transfer unused benefits to a dependent only 

while they are still on active duty. In order to be eligible to transfer 

this benefit, the servicemember must have already served six years 

on active duty and agreed to serve an additional four years of active duty. This provision was added to the Post-9/11 G.I. Bill as a 

retention incentive.2

Subtitle H of the National Defense Authorization Act for Fiscal 

Year 2013 3 established the Military Compensation and Retirement 

Modernization Commission (MCRMC). The commissioners were appointed by both Congress and the President on a bipartisan basis 

and represent years of experience in military and veterans policy. 

The primary mission of the MCRMC was to realign the pay and 

benefits for servicemembers and veterans to maintain a professional all-volunteer force, during war time and peacetime.4

The final report with the MCRMC’s recommendations was submitted to Congress in January 2015 and was the culmination of the 

MCRMC’s work, which included numerous studies and surveys of 

servicemembers regarding pay and benefits. The MCRMC recommended that the eligibility for transferability of Post-9/11 G.I. 

Bill benefits should be adjusted to require servicemembers to serve 

ten years and sign up for an additional two years. The MCRMC 

recommended this to improve retention and the use of the education benefits by servicemembers. The MCRMC found: 


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5Final Report of the Military Compensation and Retirement Modernization Commission. Page 

169. http://mldc.whs.mil/public/docs/report/MCRMC-FinalReport-29JAN15-HI.pdf. 6Final Report of the Military Compensation and Retirement Modernization Commission. Page 

167 and 168. http://mldc.whs.mil/public/docs/report/MCRMC-FinalReport-29JAN15-HI.pdf. 

The average DoD continuation rate from 1980 to 2010 for 

a servicemember at 6 years of service [YOS] is 35.3 percent while the average continuation rate for a servicemember at 10 YOS in 19.3 percent. Offering transferability at 

10 YOS instead of 6 would enable the services to increase 

retention at this critical point in a military career.5

The MCRMC also recommended that the housing and living stipend provided to spouses and children who were using transferred 

Post-9/11 G.I. Bill benefits be eliminated. This recommendation 

was based on that the fact that in many cases, the living stipend 

was significantly higher than the cost of room and board at most 

schools. The MCRMC’s final report stated: 

The Post-9/11 G.I. Bill housing stipend often exceeds the 

actual housing costs of dependent beneficiaries. For example, in academic year 2013–2014, New School University in 

New York reportedly had the highest estimated room and 

board cost in the country at $18,490. The BAH [Basic Allowance for Housing] per month for an E5 with dependents 

in New York City in 2013 was $3,258, and for 2014 it was 

$3,744. Assuming a 9-month academic year, a student 

using Post-9/11 G.I. Bill benefits at New School for 2013– 

2014 would receive $31,752, which is $13,262 more than 

the estimated cost of room and board. Northwestern Oklahoma State University in Alva, OK reportedly had the lowest estimated room and board cost in the United States in 

academic year 2013–2014, at $3,900. Using the same assumptions, a student using Post-9/11 G.I. Bill benefits 

would receive $8,658 in BAH, $4,758 more than the estimated cost of room and board.6

Section 301, would implement the MCRMC’s recommendations 

on transferability with minor modifications. The Committee agrees 

that the change in eligibility requirements for transferability benefits is necessary to improve retention, and Section 301 would 

amend section 3319 of title 38, U.S.C., to implement the MCRMC’s 

recommendations. While the MCRMC recommended that the Committee eliminate all living stipend benefits for transferees of Post9/11 G.I. Bill benefits, the Committee believes this would be a step 

too far for spouses who have also made sacrifices for the nation in 

their support of their spouse’s service. While the Committee agrees 

that a full elimination in the living stipend for servicemember’s 

children is justifiable, Section 301 would only reduce the living stipend benefits for children by half. These amendments would take 

effect for elections to transfer benefits made 180 days following enactment of this bill. 

Section 302—Clarification of eligibility for the Marine Gunnery Sergeant John David Fry Scholarship 

Section 3311 of title 38, U.S.C., establishes the Marine Gunnery 

Sergeant John David Fry Scholarship, (Fry Scholarship), which 

provides Post-9/11 G.I. Bill benefits to the children and surviving 


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spouses of servicemembers who die in the line of duty while on active duty after September 10, 2001. The original Fry Scholarship 

authorized by chapter 33 of title 38, U.S.C., only provided Post9/11 G.I. Bill benefits to eligible children. Prior to the Choice Act, 

surviving spouses were only eligible to receive education assistance 

under chapter 35 of title 38, U.S.C. Section 701 of the Choice Act 

extended these same benefits to spouses of servicemembers who die 

in the line of duty. Eligible beneficiaries may receive up to 36 

months of Post-9/11 G.I. Bill benefits at the 100 percent level. 

Under current law, eligible surviving spouses may use such assistance until they remarry or until 15 years after their military 

spouse’s death, whichever occurs sooner. 

After the Choice Act was signed into law, the Committee heard 

concerns from many veterans’ organizations, most notably from the 

Gold Star Wives of America and the Tragedy Assistance Program 

for Survivors, regarding the amount of time, or lack thereof, which 

many surviving spouses had left to use this benefit. Due to the 15 

year delimitating date, surviving spouses whose military spouse 

died in the line of duty between September 11, 2001 and January 

1, 2006, would not have enough time to use 100 percent of the benefit. It was the Committee’s intention when expanding this benefit 

to surviving spouses in the Choice Act to allow all eligible surviving 

spouses to receive 100 percent of the benefit. 

Section 302(a), therefore, would amend the Choice Act and deem 

that, for purposes of this benefit, any member of the Armed Forces 

who died between September 11, 2001 and December 31, 2005, effectively died on January 1, 2006. This would ensure that all eligible surviving spouses are able to receive 100 percent of the Fry 

Scholarship. 

Due to the delimitating date included in the Choice Act, many 

surviving spouses whose spouses died between September 11, 2001 

and December 31, 2005, may have made an irrevocable decision to 

receive education benefits through chapter 35 of title 38, U.S.C., so 

that they could have more time to use their benefits. Currently, if 

they have chosen to use chapter 35 education benefits in lieu of the 

Fry Scholarship, that decision is irrevocable. Due to the expansion 

of eligible time to use the Fry Scholarship in this Act, the Committee believes it is important to allow these surviving spouses to 

revoke their prior election to use chapter 35 education benefits instead of the Fry Scholarship. Section 302(b), therefore, would allow 

a surviving spouse of a servicemember who died between September 11, 2001 and December 31, 2005, to revoke their election 

to receive educational benefits under chapter 35 instead of the Fry 

Scholarship. 

The Post-9/11 G.I. Bill will cover a large amount of school costs, 

but many private schools cost an additional amount than what is 

provided in statute, and in cases where a veteran is not eligible for 

the in-state tuition rate, the cost to attend public school can exceed 

what is allowable by law. Section 3317 of title 38, U.S.C., authorizes the Yellow Ribbon program, which assists with these additional costs and authorizes VA to enter into agreements with private and public schools to pay a dollar-for-dollar matching grant to 

cover the additional tuition costs beyond what is provided in the 

tuition and fee cap for the Post-9/11 G.I. Bill in section 3313(c) of 

title 38, U.S.C. Under current law, individuals using the Fry ScholVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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7 VBA Annual Benefits Report for FY2013. Page 7. http://www.benefits.va.gov/REPORTS/ 

abr/ABR-VocRehab-FY13-09262014.pdf 

arship are not also eligible to use the Yellow Ribbon program to 

pay for the rest of their tuition amount beyond what is provided 

in the 

Post-9/11 G.I. Bill. The Committee believes that it was not the 

intention of Congress to limit the Fry Scholarship to exclude children and spouses of servicemembers who have died in the line of 

duty from being able to utilize the Yellow Ribbon program. Section 

302(d), therefore, would amend section 3317(a) of title 38, U.S.C., 

to allow individuals eligible for the Fry Scholarship to also be eligible to use the Yellow Ribbon Program while they attend school. 

Section 303—Approval of courses of education and training for purposes of the Vocational Rehabilitation Program of the Department of Veterans Affairs 

Chapter 31 of title 38, U.S.C., sets up the parameters for disabled veterans to receive services through VA’s VR&E service. 

Through this program, eligible veterans and servicemembers receive personalized rehabilitation plans that help prepare them for 

employment or, in the case of severely disabled veterans, maximum 

daily independent living. Through this program, veterans and 

servicemembers are eligible for educational, vocational, psychological, employment and personal readjustment counseling. According to VA’s Annual Benefits Report for FY 2013, over 90 percent 

of VR&E participants choose a formal post-secondary education or 

training program option including non-accredited and G.I. Bill approved training programs.7

While the Committee understands the need for flexibility when 

creating rehabilitation plans that best fit the needs of an individual 

veteran, it would be appropriate for VR&E counselors to ensure, 

wherever possible, that the program of education is approved for 

G.I. Bill benefits. These programs undergo a thorough review by 

VA or State Approving Agencies (SAAs) and are required to meet 

a selection of rigorous criteria for approval. This process protects 

veterans and taxpayers alike from unscrupulous actors. Therefore, 

Section 303 would amend section 3105(b) of title 38, U.S.C., to require that, to the maximum extent possible, a course of education 

or training pursued through the VR&E program must be approved 

for benefits under chapters 30 or 33 of title 38, U.S.C. Under this 

Section, the Secretary would have waiver authority for this provision and current classes that are approved for VR&E benefits, but 

G.I. Bill benefits would not be impacted until one year following 

enactment. 

Section 304—Authority to prioritize Vocational Rehabilitation Services based on need 

As more and more veterans become eligible for VR&E services, 

based on the increased number of pending claims for disability 

compensation, the Committee remains concerned about the growing 

VR&E counselor-to-participant ratio. In FY 2013, VA provided 

VR&E services to 123,383 veterans, and they have estimated this 

number will increase by over 14,000 in FY 2016. As the number 

of veterans receiving services has increased, the number of VR&E 


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counselors has remained relatively flat. This means the caseload 

for each counselor has increased significantly, which translates into 

reduced services for veterans. As the Secretary has not made the 

investment in providing more counselors to reduce the counselor 

ratio, the Committee is concerned the severely disabled or high risk 

veterans are not being provided VR&E services in a timely fashion. 

Therefore, Section 304 would authorize the Secretary to prioritize 

VR&E services based on need. Under this Section, the Secretary 

would be required to consider the following factors when 

prioritizing VR&E services: disability rating, severity of the employment handicap, qualification for a program of independent living, income, and other factors as the Secretary deems appropriate. 

The Committee recognizes that the Secretary already has the authority to prioritize the adjudication of certain compensation and 

pension claims and believes that claims for VR&E services should 

be treated no differently. The Committee would expect that if this 

authority were utilized, the Secretary would exercise caution to 

provide VR&E services to all eligible veterans in a timely fashion 

regardless of the prioritization. 

Section 305—Re-codification and improvement of election process 

for Post-9/11 Educational Assistance Program 

Section 5003(c) of the Post-9/11 G.I. Bill delineates the circumstances under which veterans and servicemembers with remaining eligibility for other education programs administered by 

VA can be converted to the Post-9/11 G.I. Bill. Section 5003(c) also 

mandates that any such conversion is irrevocable. 

During a January 2013 site visit to the Atlanta VA Regional 

Processing Office, Committee staff asked VA staff what steps or 

processes could be changed to reduce processing times for Post-9/ 

11 G.I. Bill claims. VA staff informed Committee staff that one step 

in the adjudication of G.I. Bill claims concerns veterans’ irrevocable 

decision to convert their remaining months of eligibility for other 

G.I. Bill programs to the Post-9/11 G.I. Bill. They stated that many 

veterans make obvious errors in choosing a program to which they 

are not entitled or other errors which require manual processing of 

the claim. When this happens, VA then notifies the veteran, normally in writing, of the discrepancy and must wait for the veteran 

to contact VA and make the appropriate switch to their irrevocable 

election in order for their Post-9/11 G.I. Bill claim to be processed. 

VA staff believes these steps add unnecessary time and result in 

processing delays. This process was later confirmed again to Committee staff at a site visit to the St. Louis VA Regional Processing 

Office in April 2014. 

Therefore, Section 305 would authorize VA to make an alternative election for the beneficiary for a different education benefit. 

VA would only be authorized to make such an election if it believes 

it is clearly in the best interest of the veteran. VA would be required to notify veterans of this alternative election within seven 

days and allow the veteran to change such election within 30 days. 

The Committee believes this is an important step to reduce processing times for this benefit while still balancing individual choice. 

This Section would also re-codify section 500(c) of the Post-9/11 G.I. 

Bill into section 3326 of title 38, U.S.C. 


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8P.L. 111–377, 124 Stat. 4106. 

Section 306—Clarification of assistance provided for certain flight 

training and other programs of education 

Section 102 of the Post-9/11 Veterans Educational Assistance Improvements Act of 2010 8 modified the Post-9/11 G.I. Bill, so that 

students attending a public institution of higher learning under the 

Post-9/11 G.I. Bill are eligible to receive the total net cost of instate tuition and fees after the application of any waiver of tuition 

and fees and any scholarship, or other Federal, State, institutional, 

or employer-based aid or assistance. If a student is attending a 

non-public institution of higher learning, he/she is eligible for the 

lesser of the actual net cost for tuition and fees after the application of any waiver or scholarships or $20,235. This cap is also subject to an annual Cost-of-Living-Adjustment increase. This was a 

change from the original Post-9/11 G.I. Bill that set the cap on tuition and fees at up to the highest in-state tuition rate in a state 

regardless whether the student was attending a public or non-public institution of higher learning. 

At the Subcommittee on Economic Opportunity oversight hearing 

on November 11, 2014, entitled, ‘‘The Role of State Approving 

Agencies in Ensuring Quality Education Programs for Veterans,’’ 

the National Association of State Approving Agencies (NASAA) testified that they were concerned that changes made to the Post 9/ 

11 G.I. Bill were encouraging some public institutions to contract 

with third party flight schools for expensive flight or helicopter 

training. Since these private flight schools are now under the umbrella of public schools, there was no limit to what they could 

charge for tuition and fees since the statute only requires that 

schools charge the in-state tuition rate. 

As part of its legislative package presented to the Subcommittee 

at this hearing, NASAA recommended that the Subcommittee try 

to rein in this extravagant spending and place a cap on flight training at public institutions. This same sentiment was echoed at this 

hearing by VA and witnesses representing several leading veteran 

service organizations. In its written statement, VA expressed concern that many of these schools were using P.L. 111–377 to get 

around the current cap on vocational flight training, stating: 

There has been a significant increase in flight training 

centers, specifically those that offer helicopter training, 

which have contracted with public IHLs to offer flight-related degrees. Sometimes these programs charge higher 

prices than those that would be charged if the student had 

chosen to attend the vocational flight school for the same 

training. This practice allows the flight schools to receive 

payments above the academic year tuition and fee cap imposed by statute, which is currently $11,562.86. If those 

same classes are included in a public IHL degree program, 

VA can pay up to 100 percent of the in-state tuition and 

fee charges. This does not appear to be consistent with the 

intent of Congress as it relates to flight programs. 

VA also included a legislative proposal in its FY 2016 budget 

submission to place the same cap on flight training as is currently 

in place for private, non-profit, and for-profit institutions. As a reVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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9http://www.latimes.com/nation/la-me-adv-gibill-20150315-story.html#page=1. 

sult of the proposal from VA, as well as concerns expressed by 

NASAA and veterans groups, Section 306 would place a cap on 

flight training for tuition and fee payments at public schools at 

$20,235, the same cap that is in place for all private for-profit and 

non-profit institutions; this cap would also be subject to the cost of 

living adjustment. This Section would also prohibit students from 

taking flight training at a public institution as an elective course 

and would grandfather students currently in flight training programs for two years following enactment. The Committee believes 

this grandfather clause is important to cover current students who 

enrolled in these programs with the understanding that their tuition and fees would be completely paid for under the Post-9/11 G.I. 

Bill. The Section also subjects all programs that are contracted out 

by a public school to a third party to this same cap. 

The Committee does not propose this cap lightly and understands that this would change the way that flight schools are paid 

for through the Post-9/11 G.I. Bill. The Committee, however, is concerned that the sharp growth in these programs and the uncontrollable increase in the cost of flight training following the enactment 

of P.L. 111–377 shows that there have been some unscrupulous actors who have found this loophole in the law and exploited it. 

As confirmation of this exploration, data provided by VA to the 

Committee, between FY 2013 and FY 2014, the number of students 

taking flight training increased by only 171 students, or 9 percent, 

yet the total cost to taxpayers for this program grew by $37 million, or 87 percent, during this same period. This data also showed 

that in one case in FY 2014, VA paid over $534,000 in tuition and 

flight payments for one student that year. In a story in The Los 

Angeles Times on March 15, 2015 entitled, ‘‘U.S. Taxpayers Stuck 

with the Tab as Helicopter Flight Schools Exploit GI Bill Loophole,’’ the owner of one of these schools essentially admitted to exploiting the loophole by stating, ‘‘Because there was no cap, we 

started to one-up each other . . . You kind of end up with an arms 

race.’’ 9 The Committee believes that paying these unrestrained 

costs was never the intent of the Post-9/11 G.I. Bill; therefore Section 306 would close this loophole and responsibly end this practice 

to protect both taxpayers and veterans alike, and also to protect 

the G.I. Bill for future generations of veterans. 

Section 307—Consideration of certain time spent receiving medical 

care from the Secretary of Defense as active duty for purposes 

of eligibility for Post-9/11 educational assistance 

Guardsmen and Reservists who deploy on active duty are no less 

vulnerable to injury in combat than full time active duty 

servicemembers. Under current law, Guardsmen and Reservists 

wounded in combat receive orders under section 12301(h) of title 

10, U.S.C., to serve time for medical and recovery purposes upon 

their return from deployment. However, federal law does not recognize such orders as creditable for Post9/11 G.I. Bill education assistance, meaning that while these 

Guardsmen and Reservists are on orders under section 12301(h) of 

title 10, U.S.C., and receiving medical treatment, they do not accrue any time towards their Post-9/11 G.I. Bill eligibility. Under 


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this scenario, a Guardsman or Reservist who serves on active duty 

but was never injured could accrue more Post-9/11 G.I. Bill benefits 

than one who is still active duty but recovering from injuries sustained in combat. 

Section 307 would end this unequal treatment and ensure that 

Guardsmen and Reservists are able to accrue eligibility for Post9/11 G.I. Bill benefits while on orders under section 12301(h) of 

title 10, U.S.C. The Committee believes this policy would fairly reflect the time that Guardsmen and Reservists spend serving our 

nation for the purposes of their education assistance benefits. 

Section 308—Work study allowance 

VA’s work-study program allows certain veterans and dependents enrolled in school through a VA educational program to perform a certain number of hours of work in exchange for compensation through VA’s work study program. Eligible individuals are 

able to work for up to 25 hours times the number of weeks contained in an enrollment period. Participants receive the greater of 

the State’s minimum wage rate or the national minimum wage rate 

under section 6(a) of the Fair Labor Standards Act of 1938 (section 

206(a) of title 29, U.S.C.). Eligible work-study activities were expanded to the following positions: (1) VA outreach services programs or outreach services to servicemembers and veterans furnished by employees of a SAA; (2) Hospital and domiciliary care 

and medical treatment at VA facilities, and care to veterans in a 

state home; and (3) Activities relating to the administration of a 

national cemetery or a state veterans’ cemetery. 

The legal authority for these expanded work study programs expired on June 1, 2013, however the Committee and veterans service organizations believe that the reauthorization of these work 

study options would be beneficial to veterans or their dependents 

as they pursue a college degree. At a June 2, 2015, Subcommittee 

on Economic Opportunity legislative hearing, Mr. Steve Gonzalez 

with The American Legion testified on this language, stating: 

This program provides a valuable benefit to student-veterans and that benefit is often multiplied many times over 

when, for example, veterans are allowed to perform outreach services to service members and veterans furnished 

under the supervision of a State approving agency employee. This is just one instance of the important work 

that is accomplished by these student-veterans. 

This program gives veterans and dependents an alternative 

means to supplement their income as they attend an institution of 

higher learning. In recent years, the average student has been 

leaving college with an average debt of $24,000 to cover all college 

expenses, but this program would help veterans mitigate this debt 

while also getting work experience as they attend school. Section 

308, therefore, would amend section 3485(a)(4) of title 38, U.S.C., 

by striking the expiration date of June 30, 2013, and inserting the 

expiration date of June 30, 2021. 

Section 309—Vocational Rehabilitation and Education Action Plan 

The VR&E program provides job training and related services for 

veterans with service-connected disabilities who experience barriers 


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to employment. A 2014 GAO report, entitled ‘‘VA Vocational Rehabilitation & Employment: Further Performance and Workload Management Improvements are Needed,’’ included several recommendations to improve the program and assist more veterans in 

a timely manner. The report found that caseloads were too high for 

each VR&E counselor, something the Committee has been concerned about for several years. The President’s FY 2016 budget 

once again flat lined the amount of funding for VR&E counselors, 

despite the increasing numbers of veterans entering the program. 

The report also found that approximately only half of the almost 

17,000 veterans who entered the VR&E program in FY 2003 and 

received employment-related services were placed in suitable jobs 

and that the current program does not adequately address the 

unique challenges of service-connected disabled veterans suffering 

from Traumatic Brain Injury (TBI) or PTSD. 

The Committee believes that the VR&E program is important in 

the process of getting disabled veterans into meaningful and sustainable jobs following active duty, but VR&E staff cannot meet the 

growing demand for services in a timely manner. The Committee 

believes that a thorough examination of the program and ways to 

improve the program is important to the success of the disabled 

veterans the program serves. At a June 2, 2015, Subcommittee on 

Economic Opportunity legislative hearing, Mr. Christopher 

Neiweem with the IAVA testified on this language, stating: 

Without a fundamental understanding of the conditions a 

veteran is facing, a counselor will not be positioned to 

identify how to help the veteran secure a job and begin a 

rewarding career. This legislation would improve a program that has been too often regarded as mediocre due to 

organizational factors as it relates to the veteran-counselor 

relationship. 

The Committee and veteran groups believe that the VR&E program does need to be improved to properly serve disabled veterans 

and rehabilitate them in a more impactful and timely manner. Section 309, therefore, would require VA, within 270 days of enactment, to develop and publish an action plan for improving VR&E 

services. Such an action plan would include each of the following: 

(1) a comprehensive analysis and recommendations to remedy 

workload management challenges at the regional office level, including steps to reduce counselor caseloads, particularly for counselors assisting veterans with TBI and PTSD, and counselors with 

educational and vocational counseling workloads; (2) an analysis of 

why veterans with service-connected disabilities tend to opt to use 

Post-9/11 G.I. Bill benefits rather than enroll in chapter 31 vocational rehabilitation programs, including an analysis of barriers to 

timely enrollment in chapter 31 programs and barriers to a veteran 

enrolling in the program of the veteran’s choice; (3) recommendations and an implementation plan to encourage more Post-9/11 veterans with service-connected disabilities to participate in chapter 

31 vocational rehabilitation programs; and (4) a national staff 

training program for vocational rehabilitation counselors. 

The Committee believes that beyond VA creating an action plan 

to improve the program, additional VR&E counselors do need to be 

hired and that there needs to be a priority of services given to the 


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most disabled veterans. A thorough examination of the program, 

however, is also necessary and an action plan created by VA to improve the program is also needed. 

Section 310—Reduction in redundancy and inefficiencies in vocational rehabilitation claims processing 

As VA continues to reduce its reliance on paper based systems, 

one of the last benefit programs to go paperless has been the 

VR&E program. VR&E counselors provide personalized vocational 

rehabilitation plans and most of their notes, tracking of payments, 

and outcome measures remain in the veterans paper based file or 

non-centralized IT systems. While some information is provided to 

VA’s Central Office, most of the work and information on the veteran stays in the paper file and antiquated IT systems. 

The Committee believes that VA must move all of its payments 

to a corporate database to better track success and payments to 

veterans and to impose overall transparency of VA’s financial status. Section 310, therefore, would state that in an effort to reduce 

redundancies and inefficiencies that all payments through VA’s 

VR&E program use one corporate database and ensure that any IT 

system that helps track such payments support a more accurate accounting of outcomes for veterans. The Section would authorize 

$10,000,000 in FY 2016 to accomplish this goal, and would require 

VA to provide a report to Congress within 180 days following enactment on VA’s efforts to better align payments through VR&E. 

TITLE IV—ADMINISTRATION OF EDUCATIONAL ASSISTANCE

Section 401—Centralized reporting of veteran enrollment by certain 

groups, districts, and consortiums of educational institutions 

Chapter 36 of title 38, U.S.C., describes the process by which VA 

approves courses of instruction at institutions of higher learning 

(IHLs), and how schools certify the enrollment of veterans, which 

is necessary prior to any use of VA educational assistance benefits 

for veterans, dependents, and survivors. Schools are currently required to submit enrollments separately, even if an individual 

school is one of a number of schools sharing a common registration 

system. Requiring each school to submit enrollments separately, 

however, is highly inefficient for both the schools and VA, and the 

Committee believes that consolidating such processes among 

schools with common registration systems would lead to a more 

cost-efficient process. 

To streamline the process and reduce those inefficiencies, Section 

401 would amend section 3684(a) of title 38, U.S.C., to authorize 

IHLs that belong to a consortium of institutions governed by a common body with common administrative practices to submit enrollments in a consolidated fashion. 

Section 402—Provision of information regarding veteran entitlement 

to educational assistance 

One of the most common concerns that the Committee receives 

from School Certifying Officials (SCOs) at G.I. Bill eligible schools, 

is that VA’s current IT system does not allow them to view a student veteran’s remaining G.I. Bill entitlement. This flaw in VA’s 

system makes it difficult for a SCO to quickly and properly advise 


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a student veteran on which educational programs they are eligible 

to receive. At a Subcommittee on Economic Opportunity legislative 

hearing on March 24, 2015, the National Association of Veteran 

Program Administrators (NAVPA) expressed support for this provision in submitted testimony by stating: 

With today’s veterans often changing between schools or 

needing to enroll in programs close to enrollment deadlines 

the ability to see what GI Bill entitlements a student had 

remaining would be beneficial to the student and the College/University that they are wanting to attend. 

Section 402 would address this issue and would require that VA 

provide access to IT systems that would allow SCOs to view a student veteran’s eligibility for educational assistance under title 38, 

U.S.C. 

Section 403—Role of state approving agencies 

The Post-9/11 Veterans Educational Assistance Improvements 

Act of 2010 (P.L. 111–377, 124 Stat. 4106) made several changes 

to what had been the traditional role of the SAAs in approving 

courses and schools for G.I. Bill benefits. Specifically, section 203 

amended section 3672 of title 38, U.S.C., and made several types 

of educational institutions ‘‘deemed approved’’ for G.I. Bill benefits. 

VA currently makes the determination if a school meets this standard. This change was meant as a way to reduce the number of site 

visits the SAAs had to conduct at IHLs, i.e. most well established 

public institutions, which normally provide quality courses to students. While the Committee believes there is merit to limiting unnecessary visits, it is important for the SAAs, along with the VA 

to make the determination if a school meets the basic criteria for 

being ‘‘deemed approved’’ for G.I. Bill benefits. 

Section 403 would provide SAAs with this approval authority 

and would also amend section 3675 of title 38, U.S.C., to make the 

same approval authority apply to accredited non-degree programs 

at public and private IHLs that are not currently covered by section 3672 of title 38, U.S.C., while maintaining all previous approval criteria for private, for-profit schools. The Committee believes these changes are necessary, because both the SAAs and VA 

expressed concern in testimony at the Subcommittee on Economic 

Opportunity’s legislative hearing on March 24, 2015, that too many 

schools were creating certifications and transition courses that may 

not meet quality standards but are ‘‘deemed approved’’ because 

they have been created by a school that has been ‘‘deemed approved.’’ 

Section 404—Criteria used to approve courses 

Section 3676(c)(14) of title 38, U.S.C., authorizes the SAAs to set 

their own ‘‘reasonable criteria’’ for approving non-accredited 

courses. Traditionally, these types of criteria have been minimal in 

nature and have been applied equally to all schools. In 2014, one 

State passed a law that set up new standards for schools to be eligible for G.I. Bill benefits based on graduation rates and cohort 

student loan default rates. The new law only applied these standards to private, for-profit institutions and specifically exempted 

community colleges and public IHLs from these criteria. 


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While the Committee supports a State’s right to set up its own 

‘‘reasonable criteria,’’ it remains concerned that such criteria must 

remain equitable for all types of schools. Therefore, Section 404 

would require that any ‘‘reasonable criteria’’ instituted by the 

states, apply equitably to all schools in the State and give VA the 

authority to disapprove any ‘‘reasonable criteria.’’ This standard 

would apply to any new criteria for accredited and non-accredited 

courses that were created by the states after January 1, 2013. The 

Committee included this date, so that VA and the SAAs did not 

have to review all state-instituted ‘‘reasonable criteria’’ that has 

been created dating as far back as the origination of section 3676. 

Section 405—Compliance surveys 

Section 3693 of title 38, U.S.C., requires that VA, or the SAAs 

acting on VA’s behalf, conduct annual compliance surveys at any 

institution that offers any type of non-degree program as well as 

every facility that has at least 300 G.I. Bill recipients. The compliance surveys are meant as an audit of these institutions’ paperwork, tuition, and fees payments; however, while helpful for 

schools, these audits do not examine the quality of education being 

provided by the school. Representatives for VA made the following 

statement as part of their written submission on H.R. 476 at the 

March 25th, 2015 legislative hearing before the Subcommittee on 

Economic Opportunity: 

Currently, there are approximately 16,000 approved domestic and international IHLs and non-college degree 

(NCD) institutions. Of the 16,000 institutions, there were 

11,260 active institutions in calendar year 2013. During 

FY 2013 and FY 2014, VA and SAAs completed well over 

10,000 surveys, with just over 5,000 surveys completed in 

FY 2014. VA anticipates completing a similar number of 

reviews in 2015. 

Based on these numbers and their own experiences, VA and the 

SAAs have supported making adjustments to the legislative requirements for compliance surveys. As such, Section 405 is based 

on the legislative proposal submitted by the SAAs and would require that compliance surveys be conducted at least once every two 

years at G.I. Bill eligible facilities with at least 20 G.I. Bill recipients. This Section would also require VA and the SAAs to work together each year to identify which schools will receive a compliance 

survey and the parameters for such a visit. The Committee agrees 

with VA and the SAAs that the compliance surveys are an important tool to ensure that G.I. Bill monies have been spent appropriately, but that the current process needs to be tweaked to allow 

VA and the SAAs to focus on approvals, training of school certifying officials, and providing technical assistance to schools. 

Section 406—Survey of individuals using their entitlement to educational assistance under the educational assistance programs 

administered by the Secretary of Veterans Affairs 

A major issue that continues to impact veterans’ education policy 

is the lack of information on outcomes of G.I. Bill participants. This 

goes beyond performance and outcomes measures, but includes the 

need for basic demographic information on students, how students 


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choose their school, what improvements students believe need to be 

made to the G.I. Bill program, and other information. Section 406 

would address this problem and would require VA to contract with 

a third party entity to conduct a survey on all G.I. Bill participants. The content of the survey would be required to be submitted 

to Congress before the third party entity begins the survey process. 

Students would be asked about basic demographic information, 

their opinion of the Transition Assistance Program (TAP), their 

view of the process for administering their educational benefit, 

their employment status, and other information. The Committee 

believes this survey would allow VA and Congress to have a better 

understanding of a veteran’s experience and would better inform 

future oversight and legislative proposals. 

Section 407—Improvement of information technology of the Veterans 

Benefit Administration of the Department of Veterans Affairs 

When VA began implementing the Post-9/11 G.I. Bill in 2009, 

there were considerable processing delays due to an outdated IT 

system that required VA to process many claims manually. As VA 

found short-term workarounds, Congress approved funding for VA 

to automate processing through a system called the ‘‘Long Term 

Solution’’ (LTS). The goal of LTS was for most, if not all, claims to 

be completed electronically without any human intervention. 

VA took years and expended millions of dollars to complete six 

different releases of the LTS. At a March 24, 2015, Subcommittee 

on Economic Opportunity legislative hearing, VA stated that LTS 

activated the capability for end-to-end automation of supplemental 

claims in September 2012. VA also stated that currently over 80 

percent of supplemental claims are now completed without any 

human intervention; supplemental claims are for current students 

who are simply re-certifying that they are going to continue with 

their training or education program. Furthermore, VA stated in 

their testimony the following: 

Currently, LTS is in a sustainment phase with only minimal increases in functionality. Further development would 

allow LTS to automate certificates of eligibility and provide very fast service (possibly one day) for some Veterans 

who apply for the Post-9/11 GI Bill, as opposed to the current 16-day average processing time. In addition, further 

development for supplemental claims would allow LTS to 

produce increased efficiencies in processing through additional automation, while ensuring consistent and timely 

service to Veterans. 

Although the Committee concedes that VA has made progress 

processing supplemental claims, LTS is now in sustainment mode, 

and VA has told the Committee that there are no plans to automate the processing of original or first time claims. The President’s 

budget for FY 2016 did not include any new funding for LTS or additional staff to process original claims, and predicted that it will 

take, on average, 28 days to complete the processing of an original 

claim; this is the same amount of time it took VA to process original claims in FY 2015. The Committee is pleased that supplemental claims are being adjudicated quickly, but remains concerned that there is no plan to also fully automate original claims. 


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10P.L. 113–146, 128 Stat. 1754. 11 12 U.S.C. 1454(a)(2) 

This is a problem, as timely housing allowance checks and tuition 

payments to schools are critically important for Post-9/11 G.I. Bill 

participants. 

Section 407, therefore, would require the Secretary, to the maximum extent possible, to complete all Post-9/11 G.I. Bill benefit 

claims electronically using rules based processing with little, to no, 

human intervention. Under this Section, VA would be required to 

provide to the Committee a report on its plan to implement new 

IT systems within 180 days of enactment. The Section would also 

authorize $30 million to fund these system improvements. At the 

legislative hearing on this bill, VA agreed with the Committee that 

this Section is necessary to improve accuracy and processing times 

for Post-9/11 G.I. Bill claims. 

Section 408—Technical amendment relating to in-state tuition rate 

for individuals to whom entitlement is transferred under All 

Volunteer Force Educational Assistance Program and Post-9/11 

Educational Assistance 

Section 702 of the Choice Act 10 required that, for public institutions of higher learning to remain eligible for VA education benefits 

under the Montgomery G.I. Bill and the Post-9/11 G.I. Bill, public 

institutions had to provide in-state tuition to eligible veterans and 

dependents of veterans who had transferred their benefits to their 

spouse or child prior to leaving active duty. VA’s interpretation of 

section 702, however, did not treat dependents of current active 

duty servicemembers as eligible for the in-state tuition rate. The 

Committee believes it was never Congress’ intent to exclude these 

dependents, as most are still connected to the servicemember and 

still subject to the transient nature of military service, often making it difficult to meet strict in-state tuition requirements in some 

states. 

Section 408 would address this problem by making a technical 

amendment to ensure eligible dependents of active duty 

servicemembers are included in the in-state tuition provision of the 

Choice Act. States and schools would have until July 1, 2016, to 

comply with this change. 

TITLE V—OTHER MATTERS

Section 501—Amount of loan guaranteed under Home Loan Program of Department of Veterans Affairs 

Under current law, VA’s maximum loan guaranty amount is calculated as a percentage of the Freddie Mac conforming loan limitation determined by the Federal Home Loan Mortgage Corporation 

Act 11 which varies by location and zip code. Since in most cases 

VA’s guaranty must be at least 25 percent of the loan, this means 

that VA’s maximum loan guaranty amount is effectively capped at 

the Freddie Mac limit. For many veterans who are seeking to purchase a home in high cost areas, the Freddie Mac limit is too low 

for VA’s zero-down loan program. This either forces the veteran not 

to use the VA program, or pay the loan principal down. 

Section 501, therefore, would amend section 3703 of title 38, 

U.S.C., to eliminate the maximum loan guaranty amount under the 


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VA home loan program by eliminating the Freddie Mac cap for VA 

home loans and would make the maximum guaranty amount 25 

percent of the loan amount. The Committee is confident VA’s current strict underwriting standards and low foreclosure rates will 

ensure that veterans still have the required good credit and income 

to qualify for the loan, and that this change will not result in a significant increased amount of foreclosures. 

Section 502—Longitudinal study of job counseling, training, and 

placement services for veterans 

Outcomes of services provided by VETS are some of the most difficult sets of data the Committee tracks. Despite the common measures used to track all employment services provided to all Americans by the DoL, there is little to no tracking relating the job training and employment placement services provided by DVOPS and 

LVERs and the veteran receiving these services becoming employed. Since VETS has no plans to change outcome measures to 

better identify the services they provide, Section 502 would authorize the new Under Secretary for VEOTA to enter into a contract 

with a non-governmental entity to conduct a five-year longitudinal 

study of veteran employment programs under chapter 41 of title 

38, U.S.C. The study would compare the employment outcomes of 

veterans who have received ‘‘intensive services’’ under chapter 41, 

veterans who have not received ‘‘intensive services’’ but did receive 

other services authorized by chapter 41, and veterans who did not 

seek or receive services under this chapter. 

The study would be required to include the following information 

on participants: (1) the average number of months the participant 

spent on active duty; (2) disability ratings of participants; (3) unemployment benefits received by participants; (4) number of 

months the participants were employed in the year covered by the 

report; (5) the average annual starting and ending salary of participants who were employed during the year covered by the report; 

(6) the average income of participants; (7) the total household income of participants; (8) the percentage of participants that own 

their own residences; (9) in the case of participants who received 

services under chapter 41, if the participant believes the services 

helped them become employed; (10) in the case of participants that 

believe the services did help them become employed, if they retained their position of employment for one year or longer and if 

they believe the services helped them secure a higher wage; (11) 

the conditions under which the participants were discharged or released from active duty; (12) whether the participants have used 

any veteran educational assistance provided by VA; (13) if the participants participated in a rehabilitation program under chapter 31 

of title 38, U.S.C.; (14) demographic information on the participants; and (15) any other information the Secretary deems appropriate. 

The Committee believes this study will be an invaluable depiction of the benefits provided by DVOPS and LVERs and will provide a roadmap of ways to improve training and job placement 

services to veterans. 


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Section 503—Limitations on subcontracts under contracts with 

small business concerns owned and controlled by veterans 

Committee staff discussed with VA Office of Inspector General 

(OIG) representatives what is needed to better prosecute businesses that attempt to fraudulently pass themselves off as veteranowned small businesses in order to take advantage of preferential 

set-asides as authorized by section 8127 of title 38, U.S.C. Whereas 

the OIG has had success in prosecuting these bad actors, it has 

noted to the Committee that it is often hard to make a case for 

knowing and willful falsification or concealment of material facts, 

which is necessary to prove certain title 18, U.S.C., crimes. As 

such, Section 503 would ensure that VA contractors would be required to complete a certification that would notify the business 

that they are subject to prosecution for violations of section 8127 

of title 38, U.S.C. 

Another serious problem that interferes with veteran-owned 

small businesses appropriately taking advantage of set-asides is 

when businesses that are not veteran-owned, or that are not small 

businesses, attempt to use a veteran-owned small business as a 

pass-through to fraudulently receive those set asides. Section 503 

would also require relevant provisions of the Small Business Act to 

apply, particularly those that prohibit pass-throughs and to save 

set-asides for those businesses that are actually qualified. 

These provisions are intended to improve the availability of setasides for veteran-owned small businesses by holding accountable 

those who attempt to defraud those businesses. Further, to improve 

oversight, VA’s Chief Acquisition Officer would be required by Section 503 to report violations to the OIG. Subsequently, the OIG 

would be required to provide related information the House and 

Senate Committees on Veterans’ Affairs in annual reports. 

Section 504—Procedures for provision of certain information to state 

veterans agencies to facilitate the furnishing of assistance and 

benefits to veterans 

In the 113th Congress the Committee held a hearing entitled, 

‘‘Honoring the Commitment: Overcoming the Barriers to Quality 

Mental Health Care for Veterans.’’ One of the goals of that hearing 

was to address VA’s progress in effectively partnering with non-VA 

providers to address service gaps and create a more patient-centric 

network of care focused on wellness-based outcomes. During that 

hearing, Linda Spoonster Schwartz, the then-Commissioner of Veterans’ Affairs for the State of Connecticut, testified that: 

The task of serving veterans is a shared responsibility 

with States and the Federal Government. . . . Too often 

VA on the National and State level does not coordinate or 

even communicate with the State Departments and agencies tasked with caring and providing services for our veterans. State-based programs are augmented by thousands 

of private-sector, community volunteers and faith based 

initiatives that attempt to help disabled and injured service members and their families meet housing, transportation, childcare, employment, mental health and shortterm financial aid. We are not lacking in people wanting 

to help, we are lacing [sic] in a coordinated effort, accountVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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ability and creative approaches to solving problems in the 

local communities. Just as all politics are local, the care 

and welfare of each military member, veterans and their 

families is not only a priority for State Governments, there 

are local programs, services and resources that have been 

developed to meet the needs of veterans where they live 

and work. State Legislators are as vitally engaged in the 

needs of veterans and also creating new programs and 

services as are Members of Congress. A true partnership 

of Federal and State resources can only improve the opportunities for our veterans, especially the troops returning 

today, and their families. 

The Committee concurs with Ms. Spoonster Schwartz’s sentiments and believes that VA must take steps to partner with state 

veteran agencies to improve the provision of care and support to 

veterans and their families. 

Section 504 would direct VA to develop procedures to share information that includes military service and separation data, personal 

email addresses and telephone numbers, and mailing addresses of 

veterans with state veterans agencies in electronic format as a 

means of facilitating the furnishing of assistance and benefits to 

such veterans, while allowing veterans to elect to prevent their information from being shared. 

HEARINGS

On March 19, 2015, the Subcommittee on Oversight and Investigations conducted a legislative hearing on various bills introduced 

during the 114th Congress, including H.R. 1015, which is included 

in H.R. 3016, as amended. The following witnesses testified: 

The Honorable Jeff Miller, U.S. House of Representatives, 

1st District, Florida; Ms. Meghan Flanz, Director, Office of Accountability Review, Department of Veterans Affairs; Dr. Michael Icardi, National Director, Pathology and Laboratory Medicine Services, Veterans Health Administration; Mr. Stanley 

Lowe, Deputy Assistant Secretary for Information Security and 

Chief Information Security Officer, Department of Veteran Affairs; Mr. Dennis Milsten, CCM, Associate Executive Director, 

Office of Operations, Office of Construction and Facilities Management, Department of Veterans Affairs; Ms. Diane Zumatto, 

National Legislative Director, AMVETS; Mr. Frank Wilton, 

Chief Executive Officer, American Association of Tissue Banks; 

and Mr. Daimon Geopfert, National Leader, Security and Privacy Consulting, McGladrey, LLP. 

A statement for the record was submitted by the following: 

The American Legion. 

On March 24, 2015, the Subcommittee on Economic Opportunity 

conducted a legislative hearing on various bills introduced during 

the 114th Congress, including H.R. 475; H.R. 476; H.R. 643; H.R. 

1141; and H.R. 1187, all of which are included in H.R. 3016, as 

amended. The following witnesses testified: 

The Honorable Jeff Miller, U.S. House of Representatives, 

1st District, Florida; The Honorable Patrick Murphy, U.S. 

House of Representatives, 18th District, Florida; Mr. Aleks 

Morosky, Deputy Director, National Legislative Service, VetVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00052 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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erans of Foreign Wars of the United States; Mr. Christopher 

Neiweem, Legislative Associate, Iraq and Afghanistan Veterans of America; Mr. Steve Gonzalez, Assistant Director, National Veteran Employment & Education Division, The American Legion; Dr. Joseph W. Wescott, President, National Association of State Approving Agencies; Ms. Teresa W. Gerton, 

Deputy Assistant Secretary, Veterans’ Employment and Training Service, U.S. Department of Labor; and MG Robert M. 

Worley II USAF (Ret.), Director, Education Service, Veterans 

Benefit Administration, U.S. Department of Veterans Affairs 

who was accompanied by Mr. Tom Leney, Executive Director, 

Small and Veteran Business Programs, Ms. Kimberly McLeod, 

Deputy Assistant General Counsel, and Mr. John Brizzi, Deputy Assistant General Counsel; and 

Statements for the Record were submitted by the following: 

U.S. Department of Defense; School Advocates for Veterans’ 

Education and Success; Paralyzed Veterans of America; Easter 

Seals, Inc.; and National Association of Veterans’ Program Administrators. 

On June 2, 2015, the Subcommittee on Economic Opportunity 

conducted a legislative hearing on various bills introduced during 

the 114th Congress, including H.R. 356; H.R. 832; H.R. 2275; H.R. 

2344; H.R. 2361; and a draft bill entitled ‘‘To amend title 38, 

United States Code, to make certain modifications and improvements in the transfer of unused educational assistance benefits 

under the Post-9/11 Educational Assistance Program of the Department of Veterans Affairs, and for other purposes,’’ all of which are 

included in H.R. 3016, as amended. The following witnesses testified: 

The Honorable Jeff Miller, U.S. House of Representatives, 

1st District of Florida; The Honorable Bill Flores, U.S. House 

of Representatives, 17th District of Texas; The Honorable Paul 

Cook, U.S. House of Representatives, 8th District of California; 

The Honorable Sean Patrick Maloney, U.S. House of Representatives, 18th District of New York; Mr. Paul R. Varela, 

Assistant National Legislative Director, Disabled American 

Veterans; Mr. Brendon Gehrke, Senior Legislative Associate of 

the National Legislative Service, Veterans of Foreign Wars of 

the United States; Mr. Steve Gonzalez, Assistant Director of 

the Veterans Employment and Education Division, The American Legion; Mr. David Borer, General Counsel, American Federation of Government Employees, AFL–CIO; Mr. Christopher 

Neiweem, Legislative Associate, Iraq and Afghanistan Veterans of America; Mr. Rick Weidman, Executive Director of 

Government Affairs, Vietnam Veterans of America; Mr. Curtis 

L. Coy, Deputy Under Secretary for Economic Opportunity of 

the Veterans Benefits Administration, U.S. Department of Veterans Affairs who was accompanied by Ms. Cathy Mitrano, 

Deputy Assistant Secretary for the Office of Resource Management of the Human Resources and Administration, U.S. Department of Veterans Affairs; Ms. Teresa W. Gerton, Acting 

Assistant Secretary of the Veterans’ Employment and Training 

Service, U.S. Department of Labor; and Dr. Susan S. Kelly, Director of the Transition to Veterans Program Office at the OfVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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fice of the Under Secretary of Defense for Personnel and Readiness, U.S. Department of Defense. 

A statement for the record was submitted by the following: 

Paralyzed Veterans of America. 

On July 14, 2015, the Subcommittee on Health conducted a legislative hearing on various bills introduced in the 114th Congress, 

including H.R. 272; H.R. 359; H.R. 423; H.R. 1862; and H.R. 3016, 

all of which are included in H.R. 3016, as amended. The following 

witnesses testified: 

Honorable Tim Walberg, U.S. House of Representatives, 7th 

Congressional District; Michigan; Honorable Sean Duffy, U.S. 

House of Representatives, 7th Congressional District, Wisconsin; Honorable Steve Stivers, U.S. House of Representatives, 15th Congressional District, Ohio; Honorable Kyrsten 

Sinema, U.S. House of Representatives, 9th Congressional District, Arizona; Honorable Doug Collins, U.S. House of Representatives, 9th Congressional District, Georgia; Honorable 

Mike Coffman, U.S. House of Representatives, 6th Congressional District , Colorado; Honorable Jeff Denham, U.S. House 

of Representatives, 10th Congressional District, California; 

Honorable Charles Boustany, U.S. House of Representatives, 

3rd Congressional District, Louisiana; Honorable Brad 

Wenstrup, U.S. House of Representatives, 2nd Congressional 

District, Ohio; Ian de Planque, Legislative Director American 

Legion; Adrian Atizado, Assistant National Legislative Director, Disabled American Veterans; Carlos Fuentes, Senior Legislative Associate, National Legislative Service Veterans of Foreign Wars of the United States; and, Madhulika Agarwal MD, 

MPH, Deputy Under Secretary for Health for Policy and Services, Veterans Health Administration U.S. Department of Veterans Affairs, who was accompanied by Janet P. Murphy MBA, 

Acting Deputy Under Secretary for Health for Operations and 

Management, Veterans Health Administration U.S. Department of Veterans Affairs and Jessica Tanner, General Attorney 

Office of General Counsel, U.S. Department of Veterans Affairs. 

Statements for the Record were submitted by: The American 

Academy of Audiology and the American Speech-Language Association; the Children of Vietnam Veterans Health Alliance, 

the International Hearing Society; Iraq and Afghanistan Veterans of America; the National Medical Association; Paralyzed 

Veterans of America; VetsFirst, a program of the United Spinal 

Association: Vietnam Veterans of America; Warrior Canine 

Connection; the American Academy of Ophthalmology; and, the 

American Medical Association. 

SUBCOMMITTEE CONSIDERATION

On April 16, 2015, the Subcommittee on Economic Opportunity 

met in open markup session, a quorum being present, and favorably forwarded H.R. 475, as amended, and H.R. 476, as amended, 

H.R. 643, H.R. 1141, and H.R. 1187 to the full Committee. During 

consideration of the bills, the following amendments were considered and agreed to by voice vote: 

An amendment in the nature of a substitute offered by Mr. 

Wenstrup of Ohio, to remove a provision to extend the deadline 


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for the in-state tuition of the Choice Act, and make technical 

and conforming changes that were suggested by VA during the 

March 24, 2015, Subcommittee on Economic Opportunity legislative hearing; and 

An amendment in the nature of a substitute offered by Mr. 

Wenstrup of Ohio, which included a one-year grandfather 

clause for the provision that places a monetary cap on flight 

training through the Post-9/11 G.I. Bill, and minor changes 

that were suggested by VA during the March 24, 2015 Subcommittee on Economic Opportunity legislative hearing. 

On June 25, 2015, the Subcommittee on Economic Opportunity 

met in open markup session, a quorum being present, and a motion 

to favorably forward H.R. 356, H.R. 832, H.R. 2275, H.R. 2344, and 

H.R. 2361 to the full Committee was adopted by voice vote. 

On July 22, 2015, the Subcommittee on Health met in open 

markup session, a quorum being present, and a motion to favorably 

forwarded H.R. 272, H.R. 359, H.R. 423, H.R. 1862, and H.R. 3016 

to the full Committee was adopted by voice vote. 

COMMITTEE CONSIDERATION

On September 17, 2015, the full Committee met in open markup 

session, a quorum being present, and ordered H.R. 3016, as amended, reported favorably to the House of Representatives, by voice 

vote. During consideration of the bill, the following amendments 

were considered: 

An amendment in the nature of a substitute offered by Rep. 

Brad Wenstrup of Ohio, which combined the text of H.R. 272; 

H.R. 356;, H.R. 423; H.R. 456; H.R. 475, as amended; H.R. 476, 

as amended; H.R. 643; H.R. 832; H.R. 1015, as amended; H.R. 

1141, as amended; and H.R. 1187, H.R. 1862, H.R. 2275, H.R. 

2344, as amended, H.R. 2531, H.R. 3016, and changes to the 

Post-9/11 G.I. Bill was agreed to by voice vote. 

An amendment to the amendment in the nature of substitute 

offered by Rep. Phil Roe of Tennessee, which expanded the 

amount of time VA would treat or pay for newborn care from 

two weeks to six weeks was agreed to by voice vote. 

An amendment to the amendment in the nature of substitute 

offered by Mr. Takano of California, which would have eliminated section 301 of the amendment in the nature of substitute 

on eligibility to transfer benefits to dependents under the Post9/11 G.I. Bill was not agreed to and failed by voice vote. 

An amendment to the amendment in the nature of a substitute offered by Ms. Titus of Nevada, which would have 

eliminated section 203 of the amendment in the nature of a 

substitute which transfers functions and programs of VETS to 

VA and would require a series of studies on the effectiveness 

of VETS’ programs was not agreed to and failed by voice vote. 

An amendment to the amendment in the nature of substitute 

by Mr. Takano of California would expand the membership of 

VA’s advisory committee on minority veterans to include veterans who are lesbian, gay or bisexual and veterans who are 

transgender was not agreed to. The amendment failed by a recorded vote of 12 nays and 9 yeas, 1 present, with 2 absent. 


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A motion by Ranking Member Corrine Brown of Florida to report 

H.R. 3016, as amended, favorably to the House of Representatives 

was adopted by voice vote. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the results of the record vote that occurred during the Committee consideration of H.R. 3016 is as follows: 

An amendment to the amendment in the nature of substitute by 

Mr. Takano of California would expand the membership of VA’s advisory committee on minority veterans to include veterans who are 

lesbian, gay or bisexual and veterans who are transgender was not 

agreed to. The amendment failed by a recorded vote of 12 nays and 

9 yeas, 1 present, with 2 absent. 


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COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are that the Secretary will use these provisions to improve education and employment programs as well as the health 

care services provided to veterans and dependents. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 3016, as amended, does not contain any Congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9 of rule XXI of the Rules of the House of Representatives. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate on H.R. 3016, 

as amended, prepared by the Director of the Congressional Budget 

Office pursuant to section 402 of the Congressional Budget Act of 

1974. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate for H.R. 3016, 

as amended, provided by the Congressional Budget Office pursuant 

to section 402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, November 19, 2015. 

Hon. JEFF MILLER, 

Chairman, Committee on Veterans’ Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed estimate for H.R. 3016, the Veterans Employment, Education, and Healthcare Improvement Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is David Newman. 

Sincerely, 

KEITH HALL. 


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Enclosure. 

H.R. 3016—Veterans Employment, Education, and Healthcare Improvement Act 

Summary: H.R. 3016 would modify certain mandatory veterans’ 

programs, including those that provide educational benefits and 

mortgage loan guarantees. On net, CBO estimates that enacting 

H.R. 3016 would decrease direct spending by $815 million over the 

2016–2025 period. 

In addition, H.R. 3016 would expand the types of medical care 

provided by the Department of Veterans Affairs (VA); reorganize 

the administration of several job training, readjustment benefits, 

and other benefit programs; transfer certain employment training 

and placement programs from the Department of Labor (DOL) to 

VA; and modify the processing of benefit claims. In total, CBO estimates that implementing the bill would cost $234 million over the 

2016–2020 period, assuming appropriation of the necessary 

amounts. 

Pay-as-you-go procedures apply because enacting the legislation 

would affect direct spending. Enacting the bill would not affect revenues. 

CBO estimates that enacting H.R. 3016 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2026. 

H.R. 3016 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

State agencies that serve veterans would benefit from contact and 

service information about veterans provided electronically by VA. 

Estimated cost to the Federal Government: The estimated budgetary effects of H.R. 3016 are shown in Table 1. The costs of this 

legislation fall within budget function 700 (veterans benefits and 

services). 

TABLE 1.—BUDGETARY EFFECTS OF H.R. 3016, THE VETERANS EMPLOYMENT, EDUCATION, AND 

HEALTH CARE IMPROVEMENT ACT 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2016– 

2020 

CHANGES IN DIRECT SPENDING a

Estimated Budget Authority ............................................. ¥7 ¥20 ¥44 ¥63 ¥80 ¥214 

Estimated Outlays ............................................................ ¥7 ¥20 ¥44 ¥63 ¥80 ¥214 

SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level .......................................... 76 54 33 36 38 237 

Estimated Outlays ............................................................ 56 64 38 37 39 234 

a Enacting H.R. 3016 would have effects beyond 2020. CBO estimates that under H.R. 3016 direct spending would decrease by $815 mil- lion over the 2016–2025 period. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

3016 will be enacted early in fiscal year 2016, the estimated 

amounts will be appropriated each year, and outlays will follow 

historical spending patterns for affected programs. 

Direct spending 

CBO estimates that enacting H.R. 3016 would decrease net direct spending by $7 million in 2016 and $815 million over the 


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2016–2025 period (see Table 2). Most of that change arises from 

provisions that would modify the education benefits provided by 

VA. Changes to VA’s authority to guarantee mortgages would increase direct spending by a smaller amount. 

Changes to Education Benefits. H.R. 3016 would make several 

changes to education benefits provided under the Post-9/11 GI Bill. 

On net, those changes would decrease direct spending by $882 million over the 2016–2025 period. 

Under the Post-9/11 GI Bill, VA pays for tuition and fees at institutions of higher learning and, with certain exceptions, provides 

monthly housing allowances to beneficiaries while they are in 

school. Payments for attending public schools cover the full cost of 

tuition and fees at rates charged to in-state students. Annual payments for education programs at private institutions are capped at 

about $21,000 for 2016. (That limit is adjusted annually for inflation.) 


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TABLE 2.—ESTIMATED EFFECTS OF H.R. 3016 ON DIRECT SPENDING 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016–2020 2016–2025 

CHANGES IN DIRECT SPENDING 

Transferred Education Benefits 

Estimated Budget Authority ................................................................ ¥10 ¥24 ¥41 ¥64 ¥79 ¥87 ¥98 ¥110 ¥123 ¥137 ¥218 ¥773 

Estimated Outlays ............................................................................... ¥10 ¥24 ¥41 ¥64 ¥79 ¥87 ¥98 ¥110 ¥123 ¥137 ¥218 ¥773 

Payments for Flight Training 

Estimated Budget Authority ................................................................ ¥4 ¥8 ¥19 ¥20 ¥22 ¥23 ¥25 ¥26 ¥27 ¥29 ¥73 ¥203 

Estimated Outlays ............................................................................... ¥4 ¥8 ¥19 ¥20 ¥22 ¥23 ¥25 ¥26 ¥27 ¥29 ¥73 ¥203 

Fry Scholarships 

Estimated Budget Authority ................................................................ 2 4 7 11 11 3 3 3 3 3 35 50 Estimated Outlays ............................................................................... 2 4 7 11 11 3 3 3 3 3 35 50 

Credit for Time in Medical Care 

Estimated Budget Authority ................................................................ 1 2 3 4 4 5 5 5 5 6 14 40 Estimated Outlays ............................................................................... 1 2 3 4 4 5 5 5 5 6 14 40 

Work-Study Program 

Estimated Budget Authority ................................................................ * 1 1 1 1 * 0 0 0 0 4 4 Estimated Outlays ............................................................................... * 1 1 1 1 * 0 0 0 0 4 4 

Loan Guarantee Limit 

Estimated Budget Authority ................................................................ 4 5 5 5 5 6 7 7 8 15 24 67 Estimated Outlays ............................................................................... 4 5 5 5 5 6 7 7 8 15 24 67 Total Changes in Direct Spending 

Estimated Budget Authority ....................................................... ¥7 ¥20 ¥44 ¥63 ¥80 ¥96 ¥108 ¥121 ¥134 ¥142 ¥214 ¥815 

Estimated Outlays ...................................................................... ¥7 ¥20 ¥44 ¥63 ¥80 ¥96 ¥108 ¥121 ¥134 ¥142 ¥214 ¥815 

Note: * = between $0 and $500,000. 


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In addition, students who face tuition and fees above what VA 

will cover—students at certain private schools and out-of-state students attending public schools—may be eligible to have part or all 

of their remaining expenses covered under the Yellow Ribbon GI 

Education Enhancement Program (YRP). Institutions participating 

in the YRP agree to cover a portion of the difference between the 

tuition charged and the amount that VA would otherwise pay. VA 

then matches that financial assistance, thereby reducing or eliminating students’ out-of-pocket expenses. 

Service members and veterans can use those benefits themselves 

or transfer up to a total of 36 months of benefits to their spouses 

and children after serving at least six years in the military. 

Spouses can use the benefits as soon as they are transferred, but 

children must wait until the member has completed 10 years of 

service. 

Transferred Education Benefits. Section 301 would modify the 

authorities under which service members may transfer education 

benefits to their dependents. On net, those changes would reduce 

direct spending by $773 million over the 2016–2025 period, CBO 

estimates. 

Section 301 would reduce by half the monthly housing allowance 

paid to children who use transferred benefits. That reduction would 

apply to benefits that are transferred to children 180 days or more 

after the bill is enacted. Based on current payment levels and adjusting for expected inflation, CBO estimates that the annual payment for the housing allowance under the Post-9/11 GI Bill will average about $7,000 in 2016 and $7,900 over the 2016–2025 period. 

(That annual payment may represent an academic years’ worth of 

benefits for one student or portions of an academic year for two or 

more students.) 

Based on data from the Department of Defense (DoD), CBO estimates that about 28,000 service members will transfer their education benefits to their children each year. Less than 10 percent of 

children who receive transferred benefits will be college-aged at the 

time of the transfer and only half will reach college age during the 

subsequent 10-year period. Most service members will have completed at least 10 years of service by the time their children are 

old enough to attend college. Thus, the reduction in the housing allowance would affect a small number of annual payments initially—about 2,000 in 2016. The number of reduced payments 

would increase over time to nearly 40,000 annual payments in 

2025. CBO estimates that the number of annual payments that 

would be cut in half under section 301 would total roughly 220,000 

over the 2016–2025 period, reducing direct spending by $900 million. 

Section 301 also would change the terms under which service 

members may transfer Post-9/11 GI Bill benefits to their spouses 

and children. Under current law, members must serve at least six 

years and agree to serve another four years to transfer their benefits. Under section 301, members would have to serve at least 10 

years, and agree to serve an additional two years in order to transfer benefits. Spouses and children would be allowed to begin using 

benefits as soon as they are transferred by the member. 

CBO expects that those changes would cause some service members to leave the military and use their benefits themselves, rather 


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than transfer them to their dependents. Because service members 

would have to wait four more years before committing to additional 

military service, they would have more opportunities to leave the 

armed forces. Also, spouses would have to wait an additional four 

years to use transferred benefits, somewhat reducing their value to 

the spouse. Finally, the length of service required from the member 

would increase from 10 years to 12 years. 

Based on the rate at which personnel leave the military between 

their 6th and 10th years of service, CBO estimates that each year 

about 2,000 members who would have committed to additional 

service in order to transfer benefits under current law would, 

under this provision, leave the military and retain those benefits 

for their own use. That change would have several offsetting effects 

that would increase net direct spending by about $130 million over 

the 2016–2025 period, CBO estimates. Those effects include: 

• Increased costs of $560 million for an additional 20,000 

service members who would separate and use additional benefits; 

• Increased costs of $40 million for the roughly 2,000 additional recruits who would replace those separating service 

members, some of whom would later separate and use education benefits near the end of the budget window; 

• Decreased costs of $270 million because spouses who do receive transferred benefits would have to wait an additional 

four years to receive them, reducing the total number of 

spouses who attend school over the next 10 years by about 

6,500; 

• Decreased costs of $100 million because about 4,700 fewer 

spouses would receive transferred benefits; and 

• Decreased costs of $100 million because about 14,000 

fewer children would receive transferred benefits, about 2,000 

of whom would have reached college age during the next 10 

years. 

Payments for Flight Training. Section 306 would cap payments 

for tuition and fees for educational programs that involve flight 

training. Flight-training programs require significant expenditures 

for aircraft purchases, equipment maintenance, aviation fuel, and 

insurance. In 2014, VA paid an average of $42,000 in tuition and 

fees for all beneficiaries enrolled in flight-training programs at public institutions. The maximum benefit for tuition and fees for flight 

trainees at private institutions was $19,400 that year. 

Section 306 would apply the limit for private institutions to all 

flight-training programs. (Students who are enrolled in flight-training programs before enactment of H.R. 3016 would not see their 

education benefits reduced for two years.) Payments for students 

whose tuition is below the new cap would not be affected. In 2014, 

the average cost for the 544 students whose tuition and fees exceeded the $19,400 limit applicable to private institutions for that 

year was about $62,000, a difference of $42,600. (That number excludes students at programs currently precluded from enrolling 

new students receiving VA education benefits.) In total, payments 

to schools would decline by $342 million over the 2016–2025 period 

as a result of the cap, CBO estimates. 


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Under the bill, the savings realized by capping tuition payments 

would be partially offset because some students may be eligible for 

additional assistance under the Yellow Ribbon Program. 

Based on data from VA that reflects payments under the YRP, 

CBO expects that about 90 percent of the institutions affected by 

the new cap on flight-training costs would make qualifying contributions under the YRP, and those contributions would cover 

about 45 percent of the difference between the listed amount for 

tuition and fees and the limit on VA payments for those costs. 

Thus, reductions in benefit payments for flight training would be 

about 40 percent less than what they would be in the absence of 

the Yellow Ribbon Program. VA’s matching payments under the 

YRP would total $139 million over the 2016–2025 period. 

On that basis, CBO estimates that in most years about 600 individuals would be affected by the new limit on tuition and fees. The 

number of students affected would be smaller in 2016 and 2017 because payments for students who enrolled before H.R. 3016 was enacted would not be reduced in those years. In 2018, the first year 

that the cap would apply to payments for all students in flight 

training, payments for affected students would decline by about 

$30,000. That amount would increase annually because the gap between flight-training costs and the new cap would increase with inflation. CBO estimates that, in total, enacting section 306 would 

decrease direct spending by $203 million over the 2016–2025 period. 

Fry Scholarships. The Marine Gunnery Sergeant John David Fry 

Scholarship provides 36 months of education benefits under the 

Post-9/11 GI Bill to spouses and children of service members who 

died on active duty at any time after September 11, 2001. Section 

302 would enhance that benefit by allowing those individuals to receive payments under the Yellow Ribbon Program and by giving 

certain spouses more time to use the benefit. In total, section 302 

would increase direct spending by $50 million over the 2016–2025 

period, CBO estimates. 

Under current law, service members must complete at least 36 

months of active duty or be discharged from the military for a service-connected disability to earn YRP benefits. (Spouses and children 

who receive transferred benefits from members who were eligible 

for the YRP program can also receive that additional assistance.) 

Under the bill, recipients of the Fry Scholarship could receive additional education assistance through the Yellow Ribbon Program; 

thus, the roughly 6,000 dependents who use Fry Scholarship benefits each year also would become eligible for YRP assistance. 

In 2014, VA made payments averaging $5,700 for 6 percent of 

the students who were eligible for the Yellow Ribbon Program. 

About 6,000 people with Fry Scholarships will attend school each 

year, CBO estimates. Assuming the same percentage of students 

with Fry Scholarships get similar YRP benefits (adjusted for inflation), those additional payments would increase direct spending by 

$25 million over the 2016–2025 period, CBO estimates. 

Section 302 also would extend the time that certain spouses have 

to use Fry Scholarship benefits before they expire. On January 1, 

2015, the Fry Scholarship was expanded to include spouses. Under 

current law, those spouses have 15 years after the service member’s death to use their benefits; thus, some spouses have fewer 


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than four years before their benefits will expire. Section 302 would 

allow spouses of service members who died between September 11, 

2001, and December 31, 2005, up to 51 additional months to use 

their benefits. Approximately 2,000 service members with spouses 

died during that period, and their spouses would not have time to 

use any or all of their Fry Scholarship under current law. CBO estimates that direct spending on education benefits would increase 

by $25 million over the 2016–2025 period, because of the additional 

time for spouses to use their benefits. 

Credit for Time in Medical Care. Section 307 would allow the 

time a reservist serves on active duty while receiving medical care 

or undergoing a medical evaluation, to count as qualifying active 

service for accruing education benefits under chapter 33. Based on 

historical data from the Department of Defense regarding such activations, CBO estimates that about 1,000 reservists will be called 

to active duty for those reasons annually, and spend an average of 

seven months in that status. For those individuals, that additional 

qualifying service could result in a roughly 15 percent increase in 

annual benefits under chapter 33—about $2,500 per person in 

2016. 

However, some activated reservists will already qualify for the 

maximum benefit as a result of other time on active duty; others 

would not use their benefits at all, even if the amount of the benefit were increased. Based on personnel data from DoD, CBO estimates that under section 307, about half of the reservists who are 

activated for medical care would receive and use additional benefits 

as a result of that service. Section 307 would apply to active-duty 

service after the date of enactment of the bill; thus, the initial 

budgetary effect would be small—about $1 million in 2016. As the 

population of veterans who would benefit from the provision grew 

over time, annual costs would increase to about $5 million. In total, 

the additional payments from VA for those benefits would increase 

direct spending by $40 million over the 2016–2025 period, CBO estimates. 

Work-Study Program. Section 308 would renew for five years an 

expired authority to pay veterans to work in certain positions at 

VA while they are using educational assistance. Under the program, veterans could be paid the minimum wage for up to 25 hours 

per week for working in VA hospitals, nursing homes, retirement 

homes, and veterans’ cemeteries, or for performing outreach services to other veterans. The authority to hire veterans in those positions expired on June 30, 2013. Section 308 would restart the program on June 30, 2016. 

In 2012, the last full year before the authority expired, VA paid 

an average of $2,750 to about 400 veterans who performed such 

work. CBO expects that participation would be similar under the 

renewed program; therefore, we estimate that enacting section 308 

would increase direct spending by $4 million over the 2016–2021 

period. 

In-State Tuition for Dependents. For dependents who receive 

transferred benefits under chapter 33, section 408 would require 

public institutions of higher learning to set tuition and fees at rates 

that are no higher than those charged to state residents. Institutions that declined to do so would be disapproved for attendance by 

students using VA education benefits. To the extent that public inVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00064 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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1 Under the Federal Credit Reform Act of 1990, the subsidy cost of a loan guarantee is the 

net present value of estimated payments by the government to cover defaults and delinquencies, 

interest subsidies, or other expenses, offset by an payments to the government, including origination fees, other fees, penalties, and recoveries on defaulted loans. Such subsidy costs are calculated by discounting those expected cash flows using the rate on Treasury securities of comparable maturity. The resulting estimated subsidy costs are recorded in the budget when the 

loans are disbursed. 

stitutions complied and lowered prices for such beneficiaries, the 

difference between the rate charged by the institution and the 

amount paid by VA would decline or disappear. Thus VA would not 

have to provide matching payments under the Yellow Ribbon Program for institutions that would have covered part of that difference, and spending for that program would decline. 

Section 408 is similar to a requirement in current law that public 

institutions must offer in-state tuition rates to veterans who were 

discharged within the three-year period preceding their enrollment 

in the institution. That requirement should similarly reduce mandatory spending under the YRP. However, the Secretary of Veterans Affairs has waived the disapproval of institutions that do not 

offer in-state tuition to veterans, reducing the incentive for public 

institutions to offer that lower rate. The Secretary’s waiver would 

similarly apply to dependents who would otherwise be affected by 

the enactment of section 408. CBO expects that VA will continue 

to waive the requirement in current law; therefore, enacting section 

408 would not affect direct spending. 

Loan Guarantee Limit. VA provides partial loan guarantees to 

lenders that make home loans to veterans. The guarantee payment 

from VA is capped at 25 percent of the initial loan balance, up to 

the maximum loan amount established by the Federal Home Loan 

Mortgage Corporation Act, currently $417,000. (Loans at or below 

that level are known as conforming loans; loans in excess are called 

jumbo loans. Exceptions are made to the conforming limit for certain high-cost areas like Hawaii and Alaska.) 

Section 501 would eliminate the cap on the loan amount for 

which VA can provide a guarantee of 25 percent. As a result, VA 

would provide a larger guarantee amount for some jumbo loans 

that it will already cover under current law. Additionally, some veterans who would not have used the benefit because of the guarantee limit would do so if section 501 were enacted. From October 

2008, to December 2014, the maximum loan amount for which VA 

could provide a full guarantee was temporarily increased to 

$729,750. Based on information about the jumbo loans VA guaranteed during that period, CBO estimates that if the loan limit were 

removed, VA would increase the guaranteed amount by about 

$100,000 on average for about 5,000 loans a year that it will otherwise guarantee for a lesser amount under current law. Also, VA 

would guarantee an additional 1,000 loans annually with an average loan amount of about $700,000. As a result, the annual loan 

volume that VA would guarantee would grow by an average of $1.2 

billion. Because the subsidy costs of VA’s loan guarantees are considered direct spending, increasing the loan volume would increase 

direct spending.1 Based on the experience from VA’s loan guarantee program, CBO estimates that enacting section 501 would increase direct spending by $4 million in 2016 and $67 million over 

the 2016–2025 period. 


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Spending subject to appropriation 

H.R. 3016 would expand the types of medical care provided by 

VA. It also would establish a new organization in VA to administer 

several job training, readjustment, and benefit programs, and 

would transfer certain job training and placement programs from 

the Department of Labor to VA. Finally, the bill would improve the 

systems and methods for processing benefit claims, and require VA 

to provide certain reports and studies. In total, CBO estimates that 

implementing the bill would cost $234 million over the 2016–2020 

period, assuming appropriation of the necessary amounts (see 

Table 3). 

Medical Care. The bill would expand neonatal care, increase the 

benefits paid to podiatrists at VA, establish a pilot program for certain veterans to train service dogs, and require periodic reviews of 

VA’s budget for health care. In total, implementing those provisions 

would increase costs by $100 million, CBO estimates. 

Care for Newborns. Section 103 would authorize VA to provide 

up to 42 days of health care to newborn children of female veterans 

who receive maternity care through the department. Under current 

law, VA may provide such care for no more than seven days after 

delivery. 

Based on data from VA, CBO estimates that that 11 percent (or 

240) of the roughly 2,200 eligible births that occur each year are 

complicated births that require neonatal care beyond seven days. 

Based on information from the Agency for Healthcare Research and 

Quality, and excluding the days over 42, the average length of stay 

for neonatal care for complicated births (for example, premature 

delivery, low birth weight, and fetal-growth retardation) is 15 days. 

Using information from VA, we estimate that the average daily 

cost for complicated births is about $4,000. As a result, and adjusting for anticipated inflation, CBO estimates that implementing this 

proposal would cost $50 million over the 2016–2020 period. 

Table 3.—Budgetary Effects of H.R. 3016, The Veterans Employment, Education, and Health 

Care Improvement Act 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2016–2020 

SPENDING SUBJECT TO APPROPRIATION 

Care for Newborns 

Estimated Authorization Level ..................... 7 9 10 12 13 51 

Estimated Outlays ....................................... 6 9 10 12 13 50 

Podiatrists 

Estimated Authorization Level ..................... 5 6 7 8 9 35 

Estimated Outlays ....................................... 4 6 7 8 9 34 

Dog Training Therapy 

Estimated Authorization Level ..................... 2 2 2 2 2 10 

Estimated Outlays ....................................... 2 2 2 2 2 10 

Outreach on Credit Protection 

Estimated Authorization Level ..................... 1 2 1 1 1 6 

Estimated Outlays ....................................... 1 2 1 1 1 6 

Veterans Economic Opportunity and Transition 

Administration 

Estimated Authorization Level ..................... * 30 10 10 10 60 

Estimated Outlays ....................................... * 27 12 10 10 59 

Transfer Labor Programs to VA 

Estimated Authorization Level ..................... 14 4 2 2 2 24 

Estimated Outlays ....................................... 10 7 3 2 2 24 


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Table 3.—Budgetary Effects of H.R. 3016, The Veterans Employment, Education, and Health 

Care Improvement Act—Continued 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2016–2020 

Claims Processing 

Authorization Level ...................................... 40 0 0 0 0 40 

Estimated Outlays ....................................... 27 9 2 1 1 40 

Information on Benefit Entitlement 

Estimated Authorization Level ..................... 5 0 0 0 0 5 

Estimated Outlays ....................................... 4 1 0 0 0 5 

Reports, Surveys, and Studies 

Estimated Authorization Level ..................... 2 1 1 1 1 6 

Estimated Outlays ....................................... 2 1 1 1 1 6 

Total Spending Subject to Appropriation 

Estimated Authorization Level ............ 76 54 33 36 38 237 

Estimated Outlays .............................. 56 64 38 37 39 234 

Note: VA = Department of Veterans Affairs; * = between $0 and $500,000. 

Podiatrists. Section 101 would require VA to treat podiatrists as 

physicians for the purposes of pay, recruitment, and retention. 

Over the next five years, CBO expects that VA will employ, on average, about 400 podiatrists at an annual salary of $195,000. Based 

on pay data from VA, CBO estimates that this proposal would increase that compensation by 6 percent to an average of $210,000 

over that period. In addition, CBO expects that the higher level of 

compensation would enable VA to be more successful in recruiting 

podiatrists. Accordingly, we estimate that over the 2016–2020 period, the number of podiatrists VA employs each year would increase to an average of 420. As a result, CBO estimates that implementing section 101 would increase personnel costs by $34 million 

over the 2016–2020 period. 

Dog Training Therapy. Section 106 would require VA to establish 

a pilot program through which veterans diagnosed with post-traumatic stress disorder or other mental health conditions would train 

service dogs for use by other disabled veterans. The pilot program 

would operate in up to five medical centers over a five-year period. 

Based on the cost of a similar VA program in Palo Alto, California, 

CBO expects that each facility would train six service dogs every 

two years using one certified dog trainer. CBO estimates that implementing the provision would cost $10 million over the 2016– 

2020 period. 

Outreach on Credit Protection. Section 105 would require VA to 

inform veterans about the negative effects on their credit score 

from overdue copayments to VA for emergency care provided at 

nondepartment facilities. VA also would be required to operate a 

toll-free line for veterans to report such credit issues to VA. CBO 

expects that implementing these requirements would require five 

additional employees at an annual cost of $1 million. 

Section 105 would also require the Government Accountability 

Office to conduct an analysis on the timeliness of VA payments to 

non-VA providers of health care. Based on the resources necessary 

for previous studies, CBO estimates such a study would cost $1 

million. In total, implementing section 105 would cost $6 million 

over the 2016–2020 period, CBO estimates. 

Economic Opportunity and Transition Administration. Title II of 

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business assistance. The title also would transfer the responsibilities for the veterans’ employment programs administered by the 

Department of Labor to VA. In total, CBO estimates that implementing title II would increase costs by $83 million. 

Veterans Economic Opportunity and Transition Administration. 

Beginning in fiscal year 2017, sections 201 and 202 would establish 

the Veterans Economic Opportunity and Transition Administration 

(VEOTA). The Veterans Benefits Administration (VBA) currently 

manages the following benefit programs for veterans and other eligible individuals: • Disability compensation; • Pension, dependency and indemnity compensation, burial, 

and fiduciary programs; • Readjustment benefits (including education and vocational 

rehabilitation benefits); • Home-loan guarantees; • Small business programs; and • Insurance. 

This bill would transfer some programs that are currently administered by VBA to VEOTA. Under this new organizational 

structure, all readjustment benefit programs (including employment programs), the home-loan guarantee program, and veterans’ 

small business programs would instead be managed by VEOTA. 

VBA and VEOTA each would be led by an Undersecretary. Section 

201 would limit the total number of full-time equivalent (FTE) positions serving in both administrations to 22,118 in fiscal years 

2017 and 2018. 

Based on information from VA, there are currently about 4,400 

VA employees who oversee and carry out the benefits programs 

that would transfer to VEOTA under this provision. CBO estimates 

that those personnel, and the records, property, and budgetary resources currently used by VBA to manage those programs also 

would be transferred. Using the current operating costs for VBA of 

$137 million, we estimate a 10 percent increase in 2017 to capture 

moving expenses, IT costs and other reorganization expenses, and 

about a 3 percent increase thereafter for ongoing operating expenses. Those estimated additional operating costs would total 

about $50 million over 2016–2020 period. In addition, CBO estimates that VEOTA would require an additional 20 FTE positions 

at an average annual cost of $180,000 to manage the daily operations of the new administration. As a result, CBO estimates costs 

of $9 million for additional staff. 

CBO estimates that establishing VEOTA and transferring the 

programs, personnel, and accompanying assets and hiring the additional 20 personnel would cost $59 million over the 2016–2020 period. 

Veterans Employment and Training Services. In 2014, DOL employed about 230 individuals and spent about $230 million to provide employment, job training, and reintegration services to veterans. Section 203 would transfer those veterans-related programs 

to VA, under VEOTA (as established in section 201). CBO estimates that implementing that provision would cost $24 million 

over the 2016–2020 period. Those costs primarily reflect building 

the necessary information technology (IT) systems for grant management and relocating staff. 


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Many of the transferred programs are grant programs that require grant management and data collection systems to analyze 

and evaluate the effectiveness of each program. Under current law, 

DOL relies on its customized IT systems to manage those programs. Those systems are currently used throughout DOL and embedded in the department’s greater IT infrastructure. CBO expects 

that VA would need to develop its own grant management system 

to distribute and manage the grants and collect the comprehensive 

data necessary to comply with the statutory reporting requirements 

of the transferred programs. Based on information from DOL, CBO 

estimates that it would cost $18 million over the 2016–2020 period 

to develop and maintain the IT systems. 

Based on information from DOL, CBO estimates that about 140 

of the 230 transferring employees work outside of the Washington, 

D.C. area. CBO assumes that those personnel would remain at 

their current locations after VA takes responsibility for their functions. The remaining individuals would relocate from DOL to a VA 

facility. Based on information from the General Services Administration (GSA), CBO estimates that it would cost about $20,000 to 

move each of those employees within the District of Columbia. 

Because VA already leases space to accommodate some of their 

current employees, CBO expects that it would need to lease additional space to accommodate the 90 relocated employees. Based on 

GSA planning estimates, VA would need to lease about 18,000 

square feet of office space at a cost of about $40 per square foot. 

Because those employees are intermingled with other DOL employees, CBO expects that DOL would not be able to consolidate space 

very quickly. Thus, any reduction in costs for DOL from the relocated employees would be less than the increase in costs for VA 

over the first few years. On net, CBO estimates that it would cost 

about $6 million to move 90 employees and lease office space over 

the 2016–2020 period. 

Benefit Processing Improvements. H.R. 3016 would make several 

changes to the systems and methods used to process benefit claims. 

In total, those changes would increase costs by $45 million. 

Claims Processing. Section 407 would require VA to maximize 

the use of automation and algorithms in systems used to process 

claims for educational assistance under the Post-9/11 GI Bill 

(Chapter 33) and would authorize the appropriation of $30 million 

in 2016 for that purpose. 

Section 310 would require VA to reduce the number of IT systems used to process payments for vocational rehabilitation benefits and to ensure that such payments on behalf of a particular veteran are paid from only one system. It would authorize the appropriation of $10 million in 2016 for that purpose. 

CBO estimates that implementing those provisions would cost 

$40 million over the 2016–2020 period, assuming appropriation of 

the specified amounts. 

Information on Benefit Entitlement. Section 402 would require 

VA to allow institutions of higher learning to obtain information on 

the educational assistance to which a veteran is entitled via a secure IT system. CBO expects that VA could accomplish that requirement by modifying systems that are currently used to provide 

other information to such institutions. Based on information from 

VA, CBO estimates that modifying those systems would cost $5 


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million over the 2016–2020 period, assuming appropriation of the 

estimated amounts. 

Reports, Surveys, and Studies. The bill would require VA to 

produce a total of nine reports on matters such as medical care, 

benefit processing, and contract set-asides for veteran-owned business. It also would require a survey of veterans using educational 

benefits, and a multiyear study on job counseling and placement 

programs. Based on the costs of similar studies and reports, CBO 

estimates that meeting those requirements would cost a total of $6 

million over the 2016–2020 period. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3016 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON VETERANS’ AFFAIRS ON SEPTEMBER 17, 2015 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016– 

2020 

2016– 

2025 

NET INCREASE IN THE ON-BUDGET DEFICIT 

Statutory PayAs-You-Go 

Impact ......... ¥7 ¥20 ¥44 ¥63 ¥80 ¥96 ¥108 ¥121 ¥134 ¥142 ¥214 ¥815 

Increase in long term direct spending and deficits: CBO estimates that enacting H.R. 3016 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2026. 

Intergovernmental and private-sector impact H.R. 3016 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. State agencies that serve veterans would benefit from contact and service information about veterans provided electronically 

by VA. 

Previous cost estimates: On August 26, 2015, CBO transmitted 

a cost estimate for H.R. 475, the GI Bill Processing Improvement 

and Quality Enhancement Act of 2015, as ordered reported by the 

House Committee on Veterans’ Affairs on May 21, 2015. Sections 

102 and 103 of that bill are similar to sections 306 and 307 of H.R. 

3016 and the estimated costs are the same. Section 104 of H.R. 475 

is similar to section 501 of H.R. 3016. CBO estimates a smaller cost 

in fiscal year 2016 for section 501 than we estimated for the earlier 

provision because of the later expected date of enactment. 

Estimate prepared by: Federal Costs: Ann E. Futrell, David Newman, and Dwayne M. Wright; Impact on State, Local, and Tribal 

Governments: Jon Sperl; Impact on the Private Sector: Paige Piper/ 

Bach. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 


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FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 3016, as amended, prepared by the Director 

of the Congressional Budget Office pursuant to section 423 of the 

Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act would be created by H.R. 3016, as 

amended. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution, 

the reported bill is authorized by Congress’ power to ‘‘provide for 

the common Defense and general Welfare of the United States. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee finds that no provision of H.R. 3016, as amended, establishes or reauthorizes a program of the Federal Government known 

to be duplicative of another Federal program, a program that was 

included in any report from the Government Accountability Office 

to Congress pursuant to section 21 of Public Law 111–139, or a 

program related to a program identified in the most recent Catalog 

of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee estimates that H.R. 3016, as amended, contains no directed rule making that would require the Secretary to prescribe 

regulations. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

TITLE I—VETERANS HEALTH CARE

Section 101. Role of podiatrists in Department of Veterans Affairs 

Section 101(a) would amend subchapter I of chapter 74 of title 

38, U.S.C., to create a new section entitled, ‘‘7413. Treatment of podiatrists.’’ This new section would specify that the term ‘‘physician’’ 

includes a podiatrist for purposes of this chapter. It would also 

amend the table of sections at the beginning of chapter 74 of title 

38, U.S.C., by inserting after the item relating to section 7412 the 

following new item, ‘‘7413. Treatment of podiatrists.’’ It would further amend section 7401(1) of title 38, U.S.C., by striking ‘‘Physicians, dentists, podiatrists’’ and inserting ‘‘Physicians, dentists.’’ 


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Section 101(b) would amend section 7402(b) of title 38 U.S.C., in 

paragraph (1), subparagraph (A) by striking ‘‘or of doctor of osteopathy’’ and inserting ‘‘doctor of osteopathy, or doctor of podiatric 

medicine’’ and in paragraph (C) by inserting ‘‘podiatry’’ after ‘‘surgery,’’ by striking paragraph (5), and by redesignating paragraphs 

(6) through (14) as paragraphs (5) through (13), respectively. 

Section 101(c) would amend section 7403(a)(2) of title 38, U.S.C., 

by striking subparagraph (C) and by redesignating subparagraphs 

(D) through (H) as subparagraphs (C) through (G), respectively. 

Section 101(d) would amend the list in section 7404(b) of title 38, 

U.S.C., by striking ‘‘CLINICAL PODIATRIST, CHIROPRACTOR, 

AND OPTOMETRIST SCHEDULE’’ and inserting ‘‘CLINICAL 

CHIROPRACTOR AND OPTOMETRIST SCHEDULE’’ and would 

require this amendment to apply with respect to a VA pay period 

beginning on or after the date that is 30 days after the date of the 

enactment of this Act. 

Section 101(e) would amend section 7409(a) of title 38, U.S.C., by 

striking ‘‘podiatrists’’. 

Section 101(f) would amend section 7421(b) of title 38, U.S.C., by 

striking paragraph (3) and by redesignating paragraphs (4) 

through (8) as paragraphs (3) through (7). 

Section 101(g) would amend section 7306(a)(4) of title 38, U.S.C., 

by inserting ‘‘, doctor of podiatric medicine,’’ after ‘‘doctor of medicine.’’ 

Section 101(h) would require the amendments made by this Section to apply with respect to podiatrists employed by VA as of the 

date of the enactment of this Act or who are appointed on or after 

such date. 

Section 102. Priority of Medal of Honor recipients in health care 

system of Department of Veterans Affairs 

Section 102(a) would amend section 1705(a) of title 38, U.S.C., in 

paragraph 1, by striking the period at the end and inserting ‘‘and 

veterans who were awarded the medal of honor under section 3741, 

6241, or 8741 of title 10 or section 491 of title 14’’ and, in paragraph 3, by striking ‘‘veterans who were awarded the medal of 

honor under section 3741, 6241, or 8741 or title 10 or section 491 

of title 14.’’ 

Section 102(b) would amend section 1710(a)(2)(D) of title 38, 

U.S.C., by inserting ‘‘who was awarded the medal of honor under 

section 3741, 6241, or 8741 of title 10 or section 491 of title 14’’ 

after ‘‘war.’’ 

Section 102(c) would amend section 1710B(c)(2) of title 38, 

U.S.C., by striking ‘‘or’’ in subparagraph (B), by striking the period 

at the end and inserting ‘‘; or’’ in subparagraph (C), by adding at 

the end a new subparagraph (D) to read ‘‘(D) to a veteran who was 

awarded the medal of honor under section 3741, 6241, or 8741 of 

title 10 or section 491 of title 14.’’ 

Section 102(d) would amend 1722(a)(3) of title 38, U.S.C., by 

striking ‘‘or’’ in subparagraph (B), by striking the period at the end 

and inserting ‘‘; or’’ in subparagraph (C), and by adding at the end 

a new subparagraph (D) to read ‘‘(D) to a veteran who was awarded 

the medal of honor under section 3741, 6241, or 8741 of title 10 or 

section 491 of title 14.’’ 


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Section 102(e) would require that the priority of enrollment of 

medal of honor recipients pursuant to chapter 17 of title 38, U.S.C., 

shall apply to each medal of honor recipient, regardless of the date 

on which the medal is awarded. 

Section 103. Improvement of care provided to newborn children 

Section 103 would amend section 1786 of title 38, U.S.C., by 

striking ‘‘seven days’’ and inserting ‘‘42 days’’ and by adding a new 

subsection to read ‘‘(c) Annual Report—Not later than October 31, 

2016, and each year thereafter through 2020, the Secretary shall 

submit to the Committees on Veterans’ Affairs of the House of Representatives and the Senate a report on the health care services 

provided under subsection (a) during the fiscal year preceding the 

date of the report, including the number of newborn children who 

received such services during such fiscal year.’’ 

Section 104. Comptroller general audit of budget of Veterans Health 

Administration 

Section 104(a) would amend subchapter II of chapter 73 of title 

38, U.S.C., by creating a new section entitled, ‘‘7330B. Comptroller 

General audit of VHA budget.’’ The new section would require that 

the Comptroller General of the United States conduct periodic audits of the elements of the Veterans Health Administration budget 

including the budget formulation, execution, allocation, and use of 

funds. It would also require that, in selecting elements of the Veterans Health Administration budget to audit, the Comptroller General is required to take knowledge of Veterans Health Administration programs, current issues, national priorities, and priorities expressed by the appropriate congressional committees into consideration. The new section would further require that the Comptroller 

General submit notice to the appropriate congressional committees 

of the elements of the Veterans Health Administration budget selected for audit by not later than 30 days before conducting the 

audit. The appropriate congressional committees are defined as the 

Committees on Veterans’ Affairs, the Committees on Appropriations, and the Committees on the Budget of the Senate and the 

U.S. House of Representatives. 

Section. 105. Outreach to veterans regarding effect of certain delayed payments by department of veterans affairs chief business 

office 

Section 105(a) would require that the Secretary of Veterans Affairs conduct outreach, including through national and local veterans service organizations, to inform veterans of how to resolve 

credit issues caused by delayed payment by VA of a claim for emergency hospital care, medical services, or other emergency health 

care furnished through a non-VA provider. It would also require 

the Secretary of Veterans Affairs to establish a toll-free number for 

veterans to report such credit issues to the VA Chief Business Office. 

Section 105(b) would require the Secretary of Veterans Affairs, 

during the five-year period beginning on the date of enactment of 

this Act, to submit an annual report on the effectiveness of the 

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gency health care furnished through non-VA providers during both 

the five-year period and the one-year period preceding the date of 

the report. For any part of the period of the report that occurred 

before October 1, 2014, the report would be required to evaluate 

such payments by Veterans Integrated Service Network. The annual reports would further be required, for each period covered by 

the report, to include: the number of veterans who contacted the 

Secretary regarding a delayed payment that negatively affected, or 

will potentially negatively affect, the credit of the veteran; the total 

amount of interest penalties paid by the Secretary of Veterans Affairs under section 3902 of title 31 U.S.C., by reason of delayed 

payment; the number of proper invoices submitted, listed in a table 

for each quarter and fiscal year of each such period that includes 

the total amount owed by the Secretary under the proper invoices, 

the payment status of each proper invoice as of the date of the report, and the period that elapsed until each proper invoice was 

paid to include an explanation of any delayed payment; any comments regarding delayed payments made by medical providers; and 

a description of the best practices that the Chief Business Office 

can carry out to provide timely payment of a proper invoice to include a plan to improve such timely payments. 

Section 105(c) would require the VA Chief Business Office, during the five-year period beginning on the date of the enactment of 

this Act, to submit quarterly reports to Congress on the number of 

pending claims for reimbursement for emergency hospital care, 

medical services, and other emergency health care furnished 

through non-VA providers. Each quarterly report would be required 

to include: the total number of such pending claims for each VA 

hospital system as of the last day of the quarter covered by the report; the total number of veterans who submitted such a pending 

claim in each state as of such day; the aggregate amount of all 

such pending claims in each State as of such day; the number of 

such pending claims that have been pending for 30, 90, or 365 days 

or longer as of such day; the number of claims for reimbursement 

for emergency hospital care, medical services, and other emergency 

health care furnished through non-VA providers approved and denied during such quarter for each hospital system to include, for 

each denied claim, the number of such claims denied listed by each 

denial reason group. 

Section 105(d) would require the Comptroller General to conduct 

a study to evaluate the effectiveness of the VA Chief Business Office in providing timely payment of a proper invoice for emergency 

hospital care, medical services, or other emergency health care furnished through non-VA providers by the required payment date 

and submit a report on the study to Congress, to include the total 

amount of interest penalties paid by the Secretary of Veterans Affairs under section 3902 of title 31, U.S.C., by reason of delayed 

payment. 

Section 105(e) would define the term ‘‘delayed payment’’ as a 

proper invoice that is not paid by the Secretary of Veterans Affairs 

until after the required payment date, define the term ‘‘proper invoice’’ as the meaning given that term in section 3901(a) of title 31, 

U.S.C., and define the term ‘‘required payment date’’ as the date 

that payment is due for a contract pursuant to section 3903(a) of 

title 31, U.S.C. 


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Section 106. Department of Veterans Affairs pilot program on service dog training therapy 

Section 106(a) would require the Secretary of Veterans Affairs, 

by not later than 120 days after enactment of this Act, to carry out 

a pilot program under which the Secretary would enter into a contract with one or more appropriate non-government entities for the 

purpose of assessing the effectiveness of post-deployment mental 

health and post-traumatic stress disorder symptoms through a 

therapeutic medium of training service dogs for veterans with disabilities. 

Section 106(b) would require the pilot program to be carried out 

during the five-year period beginning on the date of the commencement of the pilot program. 

Section 106(c) would require the Secretary of Veterans Affairs to 

enter into contracts with appropriate non-governmental entities located in close proximity to at least three but not more than five VA 

medical centers. 

Section 106(d) would define an appropriate non-government entity as an entity that is certified in the training and handling of 

service dogs and that has a training area that would be appropriate for use in educating veterans with mental health conditions 

in the art and science of service dog training and handling. The 

training area would be required to include a dedicated space that 

is suitable for grooming and training dogs indoors, be wheelchair 

accessible, include classroom or lecture space, include office space 

for staff, include a suitable space for storing training equipment, 

provide for the periodic use of other training areas for training the 

dogs with wheelchairs and conducting other exercises, include outdoor exercise and toileting space for the dogs, and provide transportation for weekly field trips to train the dogs in other environments. 

Section 106(e) would require each contract entered into under 

Section 106(a) of the bill: to ensure that veterans participating in 

the program receive training from certified service dog training instructors; to ensure that, in selecting assistance dogs for use in the 

program, dogs residing in animal shelters or foster homes are 

looked at as an option, if appropriate, and ensure that all dogs 

used in the program have adequate temperament and health clearances; to ensure that each service dog in training participating in 

the pilot program is taught all essential commands pertaining to 

service dog skills; to ensure that each service dog in training lives 

at the pilot program site or a volunteer foster home in the vicinity 

of such site while receiving training; to ensure that the pilot program involves both lecture of a service dog training methodologies 

and practical hands-on training and grooming of service dogs; to 

ensure that the pilot program is designed to maximize the therapeutic benefits to veterans participating in the program and provide well-trained service dogs to veterans with disabilities; and to 

give preference to veterans who have successfully graduated from 

PTSD or other residential treatment programs and who have received adequate certification in service dog training when hiring 

service dog training instructors. 

Section 106(f) would require that VA administer the pilot program through the Recreational Therapy Service under the direction 

of a certified recreational therapist with sufficient administrative 


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experience to oversee the pilot program and establish a director of 

service dog training with a background in working in social services, experience in teaching others to train service dogs in a vocational setting, and at least one year of experience working with veterans or active duty servicemembers with PTSD in a clinical setting. 

Section 106(g) would require the Secretary of Veterans Affairs to 

select veterans for participation in the pilot program. It would also 

authorize a veteran with PTSD or other post-deployment mental 

health condition to volunteer to participate in the pilot program if 

the Secretary determines that there are adequate program resources available for such veteran at the pilot program site and to 

participate in the pilot program in conjunction with the VA compensated work therapy program. 

Section 106(h) would require the Secretary of Veterans Affairs to 

collect data on the pilot program to determine how effective the 

program is for veterans participating in the program and require 

such data to include how effectively the program assists veterans 

in: reducing stigma associated with PTSD or other post-deployment 

mental health conditions; improving emotional regulation; improving patience; instilling or re-establishing a sense of purpose; providing an opportunity to help fellow veterans; reintegrating into 

the community; exposing the dog to new environments and, in 

doing so, helping the veteran reduce social isolation and withdrawal; building relationships skills, including parenting skills; relaxing the hyper-vigilant survival state; improving sleep patterns; 

and enabling veterans to decrease the use of pain medication. 

Section 106(i) would require the Secretary of Veterans Affairs to 

submit a report on the pilot program to Congress not later than 

one year after the date of the commencement of the pilot program. 

It would further require that each report include: the number of 

veterans participating in the pilot program; a description of the 

services carried out under the pilot program; the effects that participating in the pilot program has on symptoms of PTSD and postdeployment adjustment difficulties (including depression, maintenance of sobriety, suicidal ideations, and homelessness), potentially 

relevant physiological markers that possibly relate to the interactions with the service dogs, family dynamics, insomnia and pain 

management, and overall well-being; and the recommendations of 

the Secretary of Veterans Affairs with respect to the extension or 

expansion of the pilot program. 

Section 106(j) of the bill would define the term ‘‘service dog instructor’’ as an instructor who provides the direct training of veterans with PTSD and other post-deployment issues in the art and 

science of service dog training and handling. 

TITLE II—VETERANS ECONOMIC OPPORUNITY AND TRANSITION

ADMINISTRATION

Section 201. Establishment of Veterans Economic Opportunity and 

Transition Administration 

Section 201(a) would amend Part V of title 38, U.S.C., to create 

a new chapter 80 entitled, ‘‘Veterans Economic Opportunity and 

Transition Administration.’’ 


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Sec. 8001(a) would create the new Veterans Economic Opportunity and Transition Administration at VA whose primary 

function would be to administer programs that provide assistance related to economic opportunity to veterans and their dependents. 

Sec. 8001(b) would authorize the creation of the Under Secretary for Economic Opportunity and Transition who would be 

directly responsible to the Secretary of Veterans Affairs and 

would oversee the operation and administration of the Veterans Economic Opportunity and Transition Administration. 

Sec. 8001(c) would authorize the creation of two Deputy 

Under Secretaries for the new administration. The Deputy 

Under Secretary for Readjustment created by the Section 

would be responsible for overseeing programs related to vocational rehabilitation and employment; educational assistance; 

veterans housing and related programs; and the verification of 

veteran owned small businesses under section 8127 of title 38, 

U.S.C. The Deputy Under Secretary for Employment, Training 

and Transition created by this Section would be responsible for 

overseeing programs related to job counseling, training, and 

placement services under chapter 41 of title 38, U.S.C.; employment and training of veterans under chapter 42 of title 38, 

U.S.C.; administration of employment and employment rights 

of members of the uniformed services under chapter 43 of title 

38, U.S.C.; the Homeless Veterans Reintegration Programs 

under chapter 20 of title 38, U.S.C.; and the Transition Assistance Program under chapter 1144 of title 10, U.S.C. 

Sec. 8002(a) would require that this new administration be 

responsible for the administration of programs related to the 

following: vocational rehabilitation and employment; educational assistance; veterans housing and related programs; 

the verification of veteran owned small businesses under section 8127 of title 38, U.S.C.; job counseling, training, and placement services under chapter 41 of title 38, U.S.C.; employment 

and training of veterans under chapter 42 of title 38, U.S.C.; 

employment and employment rights of members of the uniformed services under chapter 43 of title 38, U.S.C.; the Homeless Veterans Reintegration Programs under chapter 20 of title 

38, U.S.C.; the Transition Assistance Program under chapter 

1144 of title 10, U.S.C.; and any other VA program that the 

Secretary deems appropriate. 

Sec. 8002(b) would require that all of the changes made by 

the new chapter 80 of title 38, U.S.C., take effect no later than 

October 1, 2016. 

Sec. 8002(c) would require that the total number of full time 

equivalent employees authorized for the Veterans Benefit Administration and the Veterans Economic Opportunity and 

Transition Administration for fiscal years 2017 and 2018 may 

not exceed 22,118. 

Sec. 8002(d) clarifies that the creation of this new administration would not affect grant funds provided to organizations 

through the Homeless Veterans Reintegration Program under 

chapters 2021 and 2021A of title 38, U.S.C. 


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Section 202. Under Secretary for Veterans Economic Opportunity 

and Transition 

Section 202(a) would amend chapter 3 of title 38, U.S.C., by creating a new section 306. 

Sec. 306A(a) would authorize the position of Under Secretary for 

Veterans Economic Opportunity and Transition. The Section would 

require that this position be appointed by the President with the 

advice and consent of the U.S. Senate. The new Under Secretary 

would be appointed without regard for political affiliation or activity and would be chosen based solely on demonstrated ability in information technology and the administration of programs in similar 

content or scope to the programs in the new Veterans Economic 

Opportunity and Transition Administration authorized by Section 

201 of this bill. 

Sec. 306A(b) would require that the new Under Secretary created 

by Section 306A(a) be directly responsible to the Secretary for the 

operations of the new Veterans Economic Opportunity and Transition Administration. 

Sec. 306A(c) would require that when there is a vacancy in the 

position of the new Under Secretary that the Secretary establish a 

commission to recommend individuals for the position to the President. The commission would be composed of the following members 

appointed by the Secretary: (1) three persons who are affected by 

the programs of the new Veterans Economic Opportunity and Transition Administration; (2) two veterans affected by programs of the 

new Veterans Economic Opportunity and Transition Administration; (3) two persons who have had experience in the management 

of private sector programs and benefits similar in scope to the programs and benefits of the new Veterans Economic Opportunity and 

Transition Administration; (4) the VA Deputy Secretary; (5) the 

chairman of the Veterans Advisory Committee on Education 

formed under section 3692 of title 38, U.S.C.; and (6) one person 

who previously held the position of the Under Secretary for Veterans Economic Opportunity and Transition if the Secretary determines that it is desirable for this person to serve on the commission. 

This section would also require the commission to submit at least 

three individuals for the position to the Secretary of Veterans Affairs. The Secretary of Veterans Affairs would be required to submit these names to the President and the House and Senate Committees on Veterans’ Affairs for consideration with or without comment. The President may ask the commission to recommend additional individuals following its initial submission. Finally, this Section would require the VA Deputy Assistant Secretary who performs personnel management and labor relations functions to serve 

as the executive secretary of the commission. 

Sec. 306A(d) would require that any individual who is recommended to the President under this Section shall have held a 

senior level position in the private sector relating to at least one 

of the following: education policy, vocational rehabilitation, employment, job placement, home loan finance, or small business development. 

Section 202(b) would make various conforming amendments to 

title 38, U.S.C., based on the provisions of the new Sec. 306A. 


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Section 202(c) would require that provisions of the new Sec. 306A 

go into effect on October 1, 2016. 

Section 203. Transfer of Department of Labor veterans programs to 

Department of Veterans Affairs 

Section 203(a) would require DoL to transfer all veterans employment and training programs under chapters 41, 42, 43, and 20 

of title 38, U.S.C., to VA’s Veterans Economic Opportunity and 

Transition Administration created by Section 201 of this bill, effective October 1, 2016. 

Section 203(b) would require that pursuant to section 1105 of 

title 31, U.S.C., the President shall include in VA’s FY 2017 budget 

request, and for each subsequent fiscal year, the funding requested 

for the programs transferred under Section 203(a). 

Section 203(c) would require that any Federal law, executive 

order, rule, regulation, or delegation of authority, or any document 

of or pertaining to a department or office relating to programs 

transferred from DoL to VA under Section 203(a) now reference 

VA. 

Section 203(d) would authorize any federal official tasked with 

implementing the programs and functions being transferred by Section 203(a) to not lose such authority as part of the transfer. 

Section 203(e) would require that any legal documents or proceedings that were in effect or under consideration before the 

transfer from DoL to VA shall remain in effect. This would apply 

to all contracts, rules, regulations, loans, grants, and suits related 

to the transfer required by Section 203(a). 

Section 203(f) would give the Office of Management and Budget 

(OMB) the authority to transfer all assets and unexpended balances from DoL to VA as part of the transfer required by Section 

203(a). 

Section 203(g) would authorize the continuation of current delegations of authority by the Secretary of Labor to continue when the 

functions are transferred to the VA Secretary under Section 203(a). 

Section 203(h) would grant the Director of OMB the authority to 

make determinations of assets and incidental transfers as it relates 

to the transfer under Section 203(a). 

Section 203(i) would authorize that, for the purposes of this Section, the vesting of a function in the new office of VA shall be considered the transfer of this function. 

Section 203(j) would require that existing appropriations made to 

DoL for the administration of veterans programs would remain 

available for necessary expenses related to the termination and resolution of such functions, programs, and activities. 

Section 203(k) would require the Secretary of Labor and the Secretary of Veterans Affairs to enter into a Memorandum of Understanding (MOU) to carry out the transfer, no later than 180 days 

following enactment. The MOU would be required to contain information on how VA is going to coordinate with DoL’s Employment 

and Training Agency to share performance measures required by 

Section 203(l) and ensure coordination and avoid duplication of 

services authorized by the Workforce Innovation and Opportunity 

Act (P.L. 113–128). The Departments would be required to submit 

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tives, and the Committee on Veterans’ Affairs and the Committee 

on Health, Education, Labor, and Pensions of the Senate. 

Section 203(l) would require VA to create performance and accountability standards for the programs that would be transferred 

under Section 203(a), which would meet or exceed the standards 

under section 103 of the Workforce Innovation and Opportunity Act 

(P.L. 113–128). Additionally, the VA Secretary would be required 

to ensure that each State submits a joint plan that also meets or 

exceeds the requirements of section 103 of the Workforce Innovation and Opportunity Act (P.L. 113–128) for activities authorized 

under chapter 41 of title 38, U.S.C. 

Section 203(m) would define several terms used in this Section. 

The term ‘‘function’’ would include any duty, obligation, power, authority, responsibility, right, privilege, activity, or program. The 

term ‘‘office’’ would include any office administration agency, bureau, institute, council, unit, organizational entity, or component 

thereof. 

Section 204. Deputy Under Secretary of Veterans Affairs for veterans Employment, Training, and Transition 

Section 204 would amend section 4102(A) of title 38, U.S.C., to 

clarify that the Deputy Under Secretary for Employment, Training, 

and Transition established by subsection 8001(c)(2) of title 38, 

U.S.C., will oversee all employment and training programs under 

chapters 41 and 43 of title 38, U.S.C. 

Section 205. Additional technical and conforming amendments 

Section 205 would make various technical and conforming 

amendments to title 38, U.S.C., related to the transfer of veteran 

employment and training programs from DoL to VA and the creation of the new Veterans Economic Opportunity and Transition 

Administration at VA. These amendments would take effect on October 1, 2016. 

Section 206. Use of Federal Directory of New Hires 

Section 206 would amend section 453A(h) of the Social Security 

Act (42 U.S.C. 653a(h)) by adding a new paragraph (4) that would 

authorize VA to access the information provided by the Federal Directory of New Hires for tracking veteran employment outcomes. 

TITLE III—EDUCATIONAL ASSISTANCE AND VOCATIONAL

REHABILITATION

Section 301. Modification and improvement of transfer of unused 

education benefits to family members under Department of Veteran Affairs Post-9/11 Educational Assistance Program. 

Section 301(a) would amend section 3319(b)(1) of title 38, U.S.C., 

by changing the service requirements needed for a servicemember 

to transfer unused Post-9/11 G.I. Bill benefits to eligible dependents. Current law requires that to be eligible for the transfer, the 

servicemember must have served six years on active duty and 

agree to serve an additional four more years. This Section would 

modify this by requiring that to be eligible, a servicemember serve 

ten years on active duty and agree to serve an additional two years 


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in order to transfer Post-9/11 G.I. Bill benefits to eligible dependents. 

Section 301(b) would amend section 3319(g)(1)(A) of title 38, 

U.S.C., by striking six years and inserting ten years for the commencement of use of Post-9/11 G.I. Bill benefits by eligible dependents. 

Section 301(c) would amend section 3319(h)(3)(B) of title 38, 

U.S.C., by requiring the amount of the monthly stipend described 

in sections 3313(c)(1)(B) and 3313(g)(3)(A)(ii) of title 38 of U.S.C., 

payable to children eligible for Post-9/11 G.I. Bill benefits, to be 

equal to one half of what the servicemember or veteran would receive. 

Section 301(d) would make a clerical amendment to section 3319 

of title 38, U.S.C., by striking ‘‘armed forces’’ each place it appears 

and inserting ‘‘Armed Services.’’ 

Section 301(e) would make all amendments made by this Section 

applicable to any transfer of entitlement under section 3319 of title 

38, U.S.C., made on or after 180 days following enactment of this 

section. 

Section 302. Clarification of eligibility for Marine Gunnery Sergeant 

John David Fry Scholarship. 

Section 302(a) would amend section 701(d) of the Choice Act, to 

state that for purposes of section 3311(f)(2) of title 38, U.S.C., and 

the receipt of Fry Scholarship education benefits, any member of 

the Armed Services who died in the line of duty during the period 

beginning on September 11, 2001 and ending on December 31, 

2005 is deemed to have died on January 1, 2006. 

Section 302(b) would amend section 3311(f) of title 38, U.S.C., to 

clarify that a surviving spouse may revoke the decision to receive 

chapter 35 education assistance benefits in lieu of the Fry Scholarship benefits made before the date of enactment of this Section. 

Section 302(c) would make a technical amendment to paragraph 

5 of section 3311(f) of title 38, U.S.C. 

Section 302(d) would amend section 3317(a) of title 38, U.S.C., to 

provide Yellow Ribbon Program eligibility for Fry Recipients for 

any eligible education program commencing on or after January 1, 

2015. 

Section 303. Approval of courses of education and training for purposes of the Vocational Rehabilitation Program of the Department of Veterans Affairs. 

Section 303(a) would amend section 3104 of title 38, U.S.C., to 

require that, to the maximum extent possible, training courses approved for VR&E services under chapter 31 of title 38, U.S.C., 

must be approved for education benefits under the G.I. Bill through 

chapters 30 and 33 of title 38, U.S.C. 

Section 303(b) would set the effective date for section 304(a) for 

one year after enactment of this Section. 

Section 304. Authority to prioritize vocational rehabilitation services 

based on need 

Section 304 would amend section 3104 of title 38, U.S.C., to give 

the Secretary of Veterans Affairs the authority to prioritize VR&E 

services provided to veterans based on need. Section 304 would also 


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require the Secretary of Veterans Affairs to take the following factors into consideration when determining need: disability ratings, 

severity of the employment handicap(s), qualification for a program 

of independent living, income, and any other factor the Secretary 

of Veterans Affairs determines to be appropriate. The Section 

would also require the Secretary of Veterans Affairs to submit a 

plan to Congress no later than ninety days prior to making any 

changes to the prioritization of VR&E services described by this 

section. 

Section 305. Recodification and improvement of election process for 

Post-9/11 Educational Assistance Program 

Section 305(a) would create section 3326 of title 38, U.S.C., by recodifying section 5003(c) of the Post-9/11 Veterans Educational Assistance Act of 2008 (P.L. 110–252). Section 8(h) would be added 

to this Section and would authorize VA, after January 1, 2016, to 

make an alternative election for Post-9/11 G.I. Bill benefits if VA 

believes the veteran’s original choice was not in the veteran’s best 

interests. Under this Section, if VA makes this election, VA must 

notify the veteran within seven days and the veteran would be 

given thirty days in which he/she could change VA’s decision. 

Section 305(b) would make a clerical amendment to the table of 

sections to include this new section 3326. 

Section 305(c) would make a conforming repeal to subsection (c) 

of section 5003 of the Post-9/11 Veterans Educational Assistance 

Act of 2008 (P.L. 110–252). 

Section 306. Clarification of assistance provided for certain flight 

training 

Section 306(a) would amend section 3313(c)(1)(A) of title 38, 

U.S.C., to subject flight training at public schools to the cap on tuition and fees established by 3313(c)(1)(A)(ii) of title 38, U.S.C. For 

FY 2015, this cap is $20,235. Under this provision, students would 

not be allowed to take flight training courses unless the training 

is specifically required to obtain their degree. 

Section 306(b) would amend section 3313(c)(1)(A)(ii)(II) of title 

38, U.S.C., to subject any program of education pursued at a public 

institution of higher learning in which the school enters into a contract or agreement with another entity to provide the program of 

education, or a portion of the program, to the cap established by 

3313(c)(1)(A)(ii)(II) of title 38, U.S.C. For FY 2015, this cap is 

$20,235. 

Section 306(c) would require that these changes apply to any 

quarter, semester, or term commencing on or after enactment of 

the bill. Finally, the new rules would not go into effect for current 

flight students for two additional years following enactment. 

Section 307. Consideration of certain time spent receiving medical 

care from the Secretary of Defense as active duty for purposes 

of eligibility for post-9/11 educational assistance 

Section 307(a) would amend section 3301(1)(B) of title 38, U.S.C., 

by inserting ‘‘12301(h)’’ after ‘‘12301(g).’’ 

Section 307(b) would apply the amendment made in Section 

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nent covered by section 12301(h) of title 10, U.S.C., beginning on 

or after 180 days following enactment of this Act. 

Section 308. Work-study allowance 

Section 308 would amend section 3485(a)(4) of title 38, U.S.C., to 

strike ‘‘June 30, 2013’’ and insert ‘‘June 30, 2013, or the period beginning on June 30, 2016 and ending on June 30, 2021’’. 

Section 309. Vocational Rehabilitation and Education Action Plan 

Section 309 would require the Secretary of Veterans Affairs, not 

later than 270 days after enactment, to develop and publish an action plan for improving the chapter 31 vocational rehabilitation 

services. Such plan shall include each of the following: 

(1) Comprehensive analysis and recommendations to remedy 

workload management challenges at the regional office level, 

including steps to reduce counselor caseloads, particularly for 

counselors assisting veterans with TBI and PTSD, and counselors with educational and vocational counseling workloads. 

(2) An analysis of why veterans with service-connected disabilities tend to opt to use chapter 33 Post-9/11 GI Bill benefits 

rather than enroll in chapter 31 vocational rehabilitation programs, including an analysis of barriers to timely enrollment 

in chapter 31 programs and barriers to a veteran enrolling in 

the program of his or her choice. 

(3) Recommendations and an implementation plan to encourage more Post-9/11 veterans with service-connected disabilities 

to participate in chapter 31 vocational rehabilitation programs; 

(4) A national staff training program for vocational rehabilitation counselors that includes: 

(A) Training to help counselors understand the profound 

disorientation that many service-connected disabled veterans experience due to their injuries; 

(B) Training to help counselors partner with veterans on 

individual rehabilitation plans; and (C) Training on PTSD 

and other mental health conditions and on moderate to severe TBI, to improve the counselors’ ability to help affected 

veterans. This training shall include information on the 

broad spectrum of such conditions and their effect on an 

individual’s abilities and functional limitations. 

Section 310. Reduction in redundancy and inefficiencies in vocational rehabilitation claims processing. 

Section 310(a) would require the Secretary to reduce redundancy 

and inefficiencies in the processing of VR&E claims, and would authorize additional funding for the Secretary to improve IT programs that process claims for rehabilitation programs under chapter 31 of title 38, U.S.C. The Section would require that all payments made on behalf of participants in VR&E be completed in one 

corporate IT solution. Additionally, this Section would require that 

the IT enhancements support a more accurate accounting of services and outcomes for VR&E participants. 

Section 310(b) would authorize $10 million to be appropriated in 

FY 2016 to fund the enhancements that would be required by Section 310(a). 


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Section 310(c) would require VA to submit a report to Congress 

on the changes made by section 310(a) within 180 days of the enactment of this Section. 

TITLE IV–ADMINISTRATION OF EDUCATIONAL ASSISTANCE

Section 401. Centralized reporting of veteran enrollment by certain 

groups, districts, and consortiums of educational institutions 

Section 401(a) would amend section 3684(a) of title 38, U.S.C., by 

permitting a group, district, or consortium of separately accredited 

educational institutions located in a state to centralize the reporting of statutorily required G.I. Bill enrollment information. 

Section 401(b) would require that section 401(a) apply to reports 

submitted on or after enactment of this section. 

Section 402. Provision of information regarding veteran entitlement 

to educational assistance 

Section 402(a) would amend subchapter II of chapter 36 of title 

38, U.S.C., by adding a new section, 3699, which would require VA 

to provide to G.I. Bill eligible schools access a secure IT system 

that would allow the school to view students’ remaining entitlement for educational assistance. 

Section 402(b) would make a clerical amendment to the table of 

sections to include this new section 3699. 

Section 403. Role of State approving agencies 

Section 403(a) would amend 3672(b)(2)(A) of title 38, U.S.C., to 

stipulate that an SAA will make the determination if a public 

school’s program of education meets the criteria to be ‘‘deemed approved’’ for educational assistance under section 3672 of title 38, 

U.S.C. 

Section 403(b) would amend section 3675 of title 38, U.S.C., to 

allow the SAAs to be jointly responsible with VA (when acting as 

the SAA) for approving courses of education that are not already 

approved by section 3672 of title 38, U.S.C. 

Section 404. Criteria used to approve courses 

Section 404(a) would amend section 3676(c)(14) of title 38, 

U.S.C., to ensure that any ‘‘reasonable criteria’’ used by the SAAs 

to approve or deny approval of non-accredited programs of education treat public, private, and proprietary for-profit schools equally. This decision would be made by VA, in consultation with the 

SAA, pursuant to regulations. 

Section 404(b) would amend section 3675(b)(3) of title 38, U.S.C., 

to ensure the standard set in section 404(a) applies to accredited 

courses as well. 

Section 404(c) stipulates that the application of this section 

would apply to criteria developed on or after January 1, 2013, and 

for any criteria applied by the SAAs going forward after October 

1, 2015. 

Section 405. Compliance surveys 

Section 405(a) would amend section 3693 of title 38, U.S.C., to 

require that educational institutions with at least twenty G.I. Bill 

participants receive a compliance survey no less than every two 


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years. Under this Section, this survey would ensure that the school 

is in compliance with all rules and regulations related to G.I. Bill 

benefits. Additionally, VA would be required to assign no less than 

one education compliance specialist to work on compliance surveys 

for every forty they intend to complete in one year. VA would be 

required to work with the SAAs to annually set up the parameters 

of the survey and ensure the SAA has a list of which schools they 

are expected to complete compliance surveys at each year. 

Section 405(b) would make various conforming amendments to 

section 3693 of title 38, U.S.C. 

Section 406. Survey of individuals using their entitlement to educational assistance under the educational assistance programs 

administered by the Secretary of Veterans Affairs 

Section 406(a) would require that within 270 days of enactment, 

VA shall enter into an agreement with a non-government entity to 

conduct a survey of G.I. Bill participants. The contract would require that the third party non-government entity provide a copy of 

the survey to Congress 30 days before the survey begins, that the 

survey be completed within 180 days after entering the contract, 

and that the survey shall be conducted by electronic means or any 

other means the third party deems appropriate. 

Section 406(b) would require that the following topics be included 

in the survey required by section 406(a): basic demographic information of the participants, including military specialty and level of 

education; the opinion of the participants on TAP; the resources the 

participants used to choose a school; the participants’ educational 

goals when they enrolled in their education or training program; 

the participants’ experience with processing their claims at VA; the 

participants’ experience with the school certifying officials at their 

schools; any extra service or benefit provided by the school to the 

participants; if the participants had completed their program at the 

time of survey; if the participants participated in the program on 

a full or part-time basis; if the program led to employment for the 

participants; if the participants were eligible for Vocational Rehabilitation and Employment benefits under chapter 31 of title 38, 

U.S.C.; any issues that prevented the participants from completing 

their programs of education; if the participants were using their 

own benefits for the program of education or if these benefits were 

transferred to them; and any other matters the Secretary determines appropriate. 

Section 406(c) would require that no later than ninety days following the completion of the survey, VA submit to the House and 

Senate Committees on Veterans’ Affairs an unedited version of the 

results of the survey and a report that identifies any recommendations of the Secretary related to the results of the survey. 

Section 407. Improvement of information technology of the Veterans 

Benefit Administration of the Department of Veterans Affairs 

Section 407(a) would require the Secretary of Veterans Affairs, to 

the maximum extent possible, to make changes to IT systems at 

VA to ensure that all original and supplemental claims for Post-9/ 

11 G.I. Bill benefits are processed electronically using rules based 

processing and require little to no human intervention. 


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Section 407(b) would require VA to submit a plan to Congress 

within 180 days of enactment on the changes made pursuant to 

section 407(a). 

Section 407(c) would require that, no later than one year after 

the date of enactment, VA submit a report to Congress on the implementation of the changes and improvements made under section 

407(a) and 407(b). 

Section 407(d) would authorize appropriations in the amount of 

$30,000,000 to carry out this section during FY 2016 and FY 2017. 

Section 408. Technical Amendment relating to In-State tuition rate 

for individuals to whom entitlement is transferred under All 

Volunteer Force Educational Assistance Program and Post-9/11 

Educational Assistance 

Section 408(a) would provide a technical amendment for section 

3679(c)(2)(B) of title 38, U.S.C., to clarify that covered individuals 

include dependents of active duty servicemembers. 

Section 408(b) would stipulate that section 408(a) apply to a 

course, semester, or term that begins on or after July 1, 2016. 

TITLE V—OTHER MATTERS

Section 501. Amount of loan guaranteed Under Home Loan Program of Department of Veterans Affairs 

Section 501(a) would amend section 3703(a)(1) of title 38, U.S.C., 

to eliminate a requirement that ties the current loan limit for VA 

backed home loans to the Freddie Mac conforming loan limit. 

Section 501(b) would require that the changes that would be 

made in section 501(a) apply to loans made on or after a date that 

is 30 days after enactment of this section. 

Section 502. Longitudinal study on job counseling, training, and 

placement service for veterans 

Section 502(a) would amend chapter 41 of title 38, U.S.C., by 

adding a new section 4415: 

Sec. 4415(a) would require VA to enter into a contract with a 

non-governmental entity to conduct a five year longitudinal study 

of veteran employment programs under chapter 41 of title 38, 

U.S.C. The study would include veterans who have received ‘‘intensive services’’ under chapter 41, of title 38. U.S.C.; veterans who 

have not received ‘‘intensive services’’ but did receive other services 

authorized by chapter 41 of title 38, U.S.C.; and veterans who did 

not seek or receive any services under this chapter. 

The study would be required to include the following information 

on participants: (1) the average number of months the participant 

spent on active duty; (2) the disability ratings of participants; (3) 

any unemployment benefits received by participants; (4) the average number of months the participants were employed during the 

year covered by the report; (5) the average annual starting and 

ending salary of participants who were employed during the year 

covered by the report; (6) the average annual income of participants; (7) the average total household income of participants for 

the year covered by the report; (8) the percentage of participants 

that own their principle residences; (9) the employment status of 

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ices under chapter 41 of title 38, U.S.C., whether the participant 

believes the services helped them become employed; (10) in the 

case of participants who believe the services provided to them 

under chapter 41 of title 38, U.S.C., did help them become employed, whether they retained their position of employment for one 

year or longer, and whether they believe the services helped them 

secure a higher wage; (11) the conditions under which the participants were discharged or released from the Armed Services; (12) 

whether the participants have used any educational assistance 

under title 38, U.S.C., to which they are entitled; (13) if the participants participated in a rehabilitation program under chapter 31 of 

title 38, U.S.C.; (14) demographic information on the participants; 

and (15) any other information the Secretary deems appropriate. 

Sec. 4415(b) would require that, no later than July 1 of each year 

covered by the study, the Secretary shall submit a report to the 

House and Senate Committees on Veterans’ Affairs on the outcomes of the longitudinal study required by section 502(a). 

Section 502(b) would make a clerical amendment to the table of 

sections to include this new section 4115. 

Section 503. Limitations on subcontracts under contracts with small 

business concerns owned and controlled by veterans 

Section 503(a) would amend section 8127 of title 38, U.S.C., by 

applying requirements under section 46 of the Small Business Act 

to veteran-owned small businesses, including reference to the term 

‘‘similarly situated entity’’ to include a subcontractor to veteranowned small business. Before awarding a contract that is counted 

for meeting relevant veteran-owned small business goals, the Secretary of Veterans Affairs would be required to obtain from the offeror a certification that the offeror will comply with this Section, 

specifying the exact performance requirements and acknowledging 

that the certification is subject to section 1001 of title, 18, U.S.C. 

Further, if the Secretary of Veterans Affairs determines that a 

small business did not operate in good faith with respect to these 

requirements that small business will be subject to applicable penalties. This Section would also require the VA Director of Small 

and Disadvantaged Business Utilization and Chief Acquisition Officer to implement a process to monitor compliance with these provisions and would require the Chief Acquisition Officer to refer any 

violations to the VA OIG. Finally, on November 30 of each year, 

the Inspector General would submit to the House and Senate Committees on Veterans’ Affairs a report for the previous fiscal year regarding the number of referred violations and the disposition of 

each. 

Section 503(b) would make this Section applicable to contracts 

entered into after the date of enactment. 

Section 504. Procedures for provision of certain information to state 

veterans agencies to facilitate the furnishing of assistance and 

benefits to veterans 

Section 504(a) would require the Secretary to develop procedures 

to share with State veterans’ agencies, in an electronic data format, 

certain information to facilitate the furnishing of assistance and 

benefits to veterans. 


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Section 504(b) would require the Secretary to provide to State 

veterans agencies, the following information as would be required 

by section 504(a): (1) military service and separation data; (2) a 

personal email address; (3) a personal telephone number; and (4) 

a mailing address. 

Section 504(c) would allow a veteran to elect not to have their 

information shared with State veterans agencies under section 

504(a). 

Section 504(d) would require the Secretary to ensure that any information shared under section 504(a) is only shared with State 

veterans agencies with government veterans service officers for the 

administration and delivery of assistance and benefits as specified 

by the Secretary. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, 

existing law in which no change is proposed is shown in roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 38, UNITED STATES CODE 

PART I. GENERAL PROVISIONS 

Chapter Sec. 

1. General ...................................................................................................... 101 

* * * * * * * 

PART V. BOARDS, ADMINISTRATIONS, AND SERVICES 

* * * * * * * 

80. Veterans Economic Opportunity and Transition Administration 8001 

* * * * * * * 

PART I—GENERAL PROVISIONS 

* * * * * * * 

CHAPTER 3—DEPARTMENT OF VETE RANS AFFAIRS 

Sec. 

301. Department. 

* * * * * * * 

306A. Under Secretary for Veterans Economic Opportunity and Transition. 

* * * * * * * 


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§ 306. Under Secretary for Benefits 

(a) There is in the Department an Under Secretary for Benefits, 

who is appointed by the President, by and with the advice and consent of the Senate. The Under Secretary for Benefits shall be appointed without regard to political affiliation or activity and solely 

on the basis of demonstrated ability in— 

(1) fiscal management; and 

(2) the administration of programs within the Veterans Benefits Administration or programs of similar content and scope. 

(b) The Under Secretary for Benefits is the head of, and is directly responsible to the Secretary for the operations of, the Veterans Benefits Administration. 

(c)(1) Whenever a vacancy in the position of Under Secretary for 

Benefits occurs or is anticipated, the Secretary shall establish a 

commission to recommend individuals to the President for appointment to the position. 

(2) A commission established under this subsection shall be composed of the following members appointed by the Secretary: 

ø(A) Three persons representing education and training, real 

estate, mortgage finance, and related industries, and survivor 

benefits activities affected by the Veterans Benefits Administration.¿ 

ø(B)¿ (A) Two persons representing veterans served by the 

Veterans Benefits Administration. 

ø(C)¿ (B) Two persons who have experience in the management of veterans benefits programs or programs of similar content and scope. 

ø(D)¿ (C) The Deputy Secretary of Veterans Affairs. 

ø(E) The chairman of the Veterans’ Advisory Committee on 

Education formed under section 3692 of this title.¿ 

ø(F)¿ (D) One person who has held the position of Under 

Secretary for Benefits (including service as Chief Benefits Director of the Veterans’ Administration), if the Secretary determines that it is desirable for such person to be a member of 

the commission. 

(3) A commission established under this subsection shall recommend at least three individuals for appointment to the position 

of Under Secretary for Benefits. The commission shall submit all 

recommendations to the Secretary. The Secretary shall forward the 

recommendations to the President with any comments the Secretary considers appropriate. Thereafter, the President may request the commission to recommend additional individuals for appointment. 

(4) The Assistant Secretary or Deputy Assistant Secretary of Veterans Affairs who performs personnel management and labor relations functions shall serve as the executive secretary of a commission established under this subsection. 

§ 306A. Under Secretary for Veterans Economic Opportunity 

and Transition 

(a) UNDER SECRETARY.—There is in the Department an Under 

Secretary for Veterans Economic Opportunity and Transition, who 

is appointed by the President, by and with the advice and consent 

of the Senate. The Under Secretary for Veterans Economic Opportunity and Transition shall be appointed without regard to political 


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affiliation or activity and solely on the basis of demonstrated ability 

in— 

(1) information technology; and 

(2) the administration of programs within the Veterans Economic Opportunity and Transition Administration or programs 

of similar content and scope. 

(b) RESPONSIBILITIES.—The Under Secretary for Veterans Economic Opportunity and Transition is the head of, and is directly responsible to the Secretary for the operations of, the Veterans Economic Opportunity and Transition Administration. 

(c) VACANCIES.—(1) Whenever a vacancy in the position of Under 

Secretary for Veterans Economic Opportunity and Transition occurs 

or is anticipated, the Secretary shall establish a commission to recommend individuals to the President for appointment to the position. 

(2) A commission established under this subsection shall be composed of the following members appointed by the Secretary: 

(A) Three persons representing education and training, vocational rehabilitation, employment, real estate, mortgage finance 

and related industries, and survivor benefits activities affected 

by the Veterans Economic Opportunity and Transition Administration. 

(B) Two persons representing veterans served by the Veterans 

Economic Opportunity and Transition Administration. 

(C) Two persons who have experience in the management of 

private sector benefits programs of similar content and scope to 

the economic opportunity and transition programs of the Department. 

(D) The Deputy Secretary of Veterans Affairs. 

(E) The chairman of the Veterans’ Advisory Committee on 

Education formed under section 3692 of this title. 

(F) One person who has held the position of Under Secretary 

for Veterans Economic Opportunity and Transition, if the Secretary determines that it is desirable for such person to be a 

member of the commission. 

(3) A commission established under this subsection shall recommend at least three individuals for appointment to the position 

of Under Secretary for Veterans Economic Opportunity and Transition. The commission shall submit all recommendations to the Secretary. The Secretary shall forward the recommendations to the 

President and the Committees on Veterans’ Affairs of the Senate 

and House of Representatives with any comments the Secretary considers appropriate. Thereafter, the President may request the commission to recommend additional individuals for appointment. 

(4) The Assistant Secretary or Deputy Assistant Secretary of Veterans Affairs who performs personnel management and labor relations functions shall serve as the executive secretary of a commission 

established under this subsection. 

(d) QUALIFICATIONS OF RECOMMENDED INDIVIDUALS.—Each individual recommended to the President by the commission for appointment to the position of Under Secretary for Veterans Economic 

Opportunity and Transition shall be an individual who has held a 

senior level position in the private sector with responsibilities relating to at least one of the following: 

(1) Education policy. 


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(2) Vocational rehabilitation. 

(3) Employment. 

(4) Job placement. 

(5) Home loan finance. 

(6) Small business development. 

* * * * * * * 

§ 317. Center for Minority Veterans 

(a) There is in the Department a Center for Minority Veterans. 

There is at the head of the Center a Director. 

(b) The Director shall be a career or noncareer appointee in the 

Senior Executive Service. The Director shall be appointed for a 

term of six years. 

(c) The Director reports directly to the Secretary or the Deputy 

Secretary concerning the activities of the Center. 

(d) The Director shall perform the following functions with respect to veterans who are minorities: 

(1) Serve as principal adviser to the Secretary on the adoption and implementation of policies and programs affecting veterans who are minorities. 

(2) Make recommendations to the Secretary, the Under Secretary for Health, the Under Secretary for Benefits, the Under 

Secretary for Veterans Economic Opportunity and Transition, 

and other Department officials for the establishment or improvement of programs in the Department for which veterans 

who are minorities are eligible. 

(3) Promote the use of benefits authorized by this title by 

veterans who are minorities and the conduct of outreach activities to veterans who are minorities, in conjunction with outreach activities carried out under chapter 77 of this title. 

(4) Disseminate information and serve as a resource center 

for the exchange of information regarding innovative and successful programs which improve the services available to veterans who are minorities. 

(5) Conduct and sponsor appropriate social and demographic 

research on the needs of veterans who are minorities and the 

extent to which programs authorized under this title meet the 

needs of those veterans, without regard to any law concerning 

the collection of information from the public. 

(6) Analyze and evaluate complaints made by or on behalf of 

veterans who are minorities about the adequacy and timeliness 

of services provided by the Department and advise the appropriate official of the Department of the results of such analysis 

or evaluation. 

(7) Consult with, and provide assistance and information to, 

officials responsible for administering Federal, State, local, and 

private programs that assist veterans, to encourage those officials to adopt policies which promote the use of those programs 

by veterans who are minorities. 

(8) Advise the Secretary when laws or policies have the effect 

of discouraging the use of benefits by veterans who are minorities. 

(9) Publicize the results of medical research which are of particular significance to veterans who are minorities. 


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(10) Advise the Secretary and other appropriate officials on 

the effectiveness of the Department’s efforts to accomplish the 

goals of section 492B of the Public Health Service Act (42 

U.S.C. 289a-2) with respect to the inclusion of minorities in 

clinical research and on particular health conditions affecting 

the health of members of minority groups which should be 

studied as part of the Department’s medical research program 

and promote cooperation between the Department and other 

sponsors of medical research of potential benefit to veterans 

who are minorities. 

(11) Provide support and administrative services to the Advisory Committee on Minority Veterans provided for under section 544 of this title. 

(12) Perform such other duties consistent with this section as 

the Secretary shall prescribe. 

(e) The Secretary shall ensure that the Director is furnished sufficient resources to enable the Director to carry out the functions 

of the Center in a timely manner. 

(f) The Secretary shall include in documents submitted to Congress by the Secretary in support of the President’s budget for each 

fiscal year— 

(1) detailed information on the budget for the Center; 

(2) the Secretary’s opinion as to whether the resources (including the number of employees) proposed in the budget for 

that fiscal year are adequate to enable the Center to comply 

with its statutory and regulatory duties; and 

(3) a report on the activities and significant accomplishments 

of the Center during the preceding fiscal year. 

(g) In this section— 

(1) The term ‘‘veterans who are minorities’’ means veterans 

who are minority group members. 

(2) The term ‘‘minority group member’’ has the meaning 

given such term in section 544(d) of this title. 

§ 318. Center for Women Veterans 

(a) There is in the Department a Center for Women Veterans. 

There is at the head of the Center a Director. 

(b) The Director shall be a career or noncareer appointee in the 

Senior Executive Service. The Director shall be appointed for a 

term of six years. 

(c) The Director reports directly to the Secretary or the Deputy 

Secretary concerning the activities of the Center. 

(d) The Director shall perform the following functions with respect to veterans who are women: 

(1) Serve as principal adviser to the Secretary on the adoption and implementation of policies and programs affecting veterans who are women. 

(2) Make recommendations to the Secretary, the Under Secretary for Health, the Under Secretary for Benefits, the Under 

Secretary for Veterans Economic Opportunity and Transition, 

and other Department officials for the establishment or improvement of programs in the Department for which veterans 

who are women are eligible. 

(3) Promote the use of benefits authorized by this title by 

veterans who are women and the conduct of outreach activities 


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to veterans who are women, in conjunction with outreach activities carried out under chapter 77 of this title. 

(4) Disseminate information and serve as a resource center 

for the exchange of information regarding innovative and successful programs which improve the services available to veterans who are women. 

(5) Conduct and sponsor appropriate social and demographic 

research on the needs of veterans who are women and the extent to which programs authorized under this title meet the 

needs of those veterans, without regard to any law concerning 

the collection of information from the public. 

(6) Analyze and evaluate complaints made by or on behalf of 

veterans who are women about the adequacy and timeliness of 

services provided by the Department and advise the appropriate official of the Department of the results of such analysis 

or evaluation. 

(7) Consult with, and provide assistance and information to, 

officials responsible for administering Federal, State, local, and 

private programs that assist veterans, to encourage those officials to adopt policies which promote the use of those programs 

by veterans who are women. 

(8) Advise the Secretary when laws or policies have the effect 

of discouraging the use of benefits by veterans who are women. 

(9) Publicize the results of medical research which are of particular significance to veterans who are women. 

(10) Advise the Secretary and other appropriate officials on 

the effectiveness of the Department’s efforts to accomplish the 

goals of section 492B of the Public Health Service Act (42 

U.S.C. 289a-2) with respect to the inclusion of women in clinical research and on particular health conditions affecting 

women’s health which should be studied as part of the Department’s medical research program and promote cooperation between the Department and other sponsors of medical research 

of potential benefit to veterans who are women. 

(11) Provide support and administrative services to the Advisory Committee on Women Veterans established under section 

542 of this title. 

(12) Perform such other duties consistent with this section as 

the Secretary shall prescribe. 

(e) The Secretary shall ensure that the Director is furnished sufficient resources to enable the Director to carry out the functions 

of the Center in a timely manner. 

(f) The Secretary shall include in documents submitted to Congress by the Secretary in support of the President’s budget for each 

fiscal year— 

(1) detailed information on the budget for the Center; 

(2) the Secretary’s opinion as to whether the resources (including the number of employees) proposed in the budget for 

that fiscal year are adequate to enable the Center to comply 

with its statutory and regulatory duties; and 

(3) a report on the activities and significant accomplishments 

of the Center during the preceding fiscal year. 

* * * * * * * 


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CHAPTER 5—AUTHORITY AND DUTIES OF THE 

SECRETARY 

SUBCHAPTER I—GENERAL AUTHORITIES 

* * * * * * * 

§ 516. Equal employment responsibilities 

(a) The Secretary shall provide that the employment discrimination complaint resolution system within the Department be established and administered so as to encourage timely and fair resolution of concerns and complaints. The Secretary shall take steps to 

ensure that the system is administered in an objective, fair, and effective manner and in a manner that is perceived by employees 

and other interested parties as being objective, fair, and effective. 

(b) The Secretary shall provide— 

(1) that employees responsible for counseling functions associated with employment discrimination and for receiving, investigating, and processing complaints of employment discrimination shall be supervised in those functions by, and report to, 

an Assistant Secretary or a Deputy Assistant Secretary for 

complaint resolution management; and 

(2) that employees performing employment discrimination 

complaint resolution functions at a facility of the Department 

shall not be subject to the authority, direction, and control of 

the Director of the facility with respect to those functions. 

(c) The Secretary shall ensure that all employees of the Department receive adequate education and training for the purposes of 

this section and section 319 of this title. 

(d) The Secretary shall, when appropriate, impose disciplinary 

measures, as authorized by law, in the case of employees of the Department who engage in unlawful employment discrimination, including retaliation against an employee asserting rights under an 

equal employment opportunity law. 

(e)(1)(A) Not later than 45 days after the end of each calendar 

quarter, the Assistant Secretary for Human Resources and Administration shall submit to the Committees on Veterans’ Affairs of the 

Senate and House of Representatives a report summarizing the 

employment discrimination complaints filed against the individuals 

referred to in paragraph (2) during such quarter. 

(B) Subparagraph (A) shall apply in the case of complaints filed 

against individuals on the basis of such individuals’ personal conduct and shall not apply in the case of complaints filed solely on 

the basis of such individuals’ positions as officials of the Department. 

(2) Paragraph (1) applies to the following officers and employees 

of the Department: 

(A) The Secretary. 

(B) The Deputy Secretary of Veterans Affairs. 

(C) The Under Secretary for øHealth and the Under Secretary for Benefits¿ Health, the Under Secretary for Benefits, 

and the Under Secretary for Veterans Economic Opportunity 

and Transition. 

(D) Each Assistant Secretary of Veterans Affairs and each 

Deputy Assistant Secretary of Veterans Affairs. 


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(E) The Under Secretary of Veterans Affairs for Memorial 

Affairs. 

(F) The General Counsel of the Department. 

(G) The Chairman of the Board of Veterans’ Appeals. 

(H) The Chairman of the Board of Contract Appeals of the 

Department. 

(I) The director and the chief of staff of each medical center 

of the Department. 

(J) The director of each Veterans Integrated Services Network. 

(K) The director of each regional office of the Department. 

(L) Each program director of the Central Office of the Department. 

(3) Each report under this subsection— 

(A) may not disclose information which identifies the individuals filing, or the individuals who are the subject of, the complaints concerned or the facilities at which the discrimination 

identified in such complaints is alleged to have occurred; 

(B) shall summarize such complaints by type and by equal 

employment opportunity field office area in which filed; and 

(C) shall include copies of such complaints, with the information described in subparagraph (A) redacted. 

(4) Not later than April 1 each year, the Assistant Secretary 

shall submit to the committees referred to in paragraph (1)(A) a report on the complaints covered by paragraph (1) during the preceding year, including the number of such complaints filed during 

that year and the status and resolution of the investigation of such 

complaints. 

(f) The Secretary shall ensure that an employee of the Department who seeks counseling relating to employment discrimination 

may elect to receive such counseling from an employee of the Department who carries out equal employment opportunity counseling functions on a full-time basis rather than from an employee 

of the Department who carries out such functions on a part-time 

basis. 

(g) The number of employees of the Department whose duties include equal employment opportunity counseling functions as well 

as other, unrelated functions may not exceed 40 full-time equivalent employees. Any such employee may be assigned equal employment opportunity counseling functions only at Department facilities in remote geographic locations (as determined by the Secretary). The Secretary may waive the limitation in the preceding 

sentence in specific cases. 

(h) The provisions of this section shall be implemented in a manner consistent with procedures applicable under regulations prescribed by the Equal Employment Opportunity Commission. 

* * * * * * * 

SUBCHAPTER III—ADVISORY COMMITTEES 

§ 541. Advisory Committee on Former Prisoners of War 

(a)(1) The Secretary shall establish an advisory committee to be 

known as the Advisory Committee on Former Prisoners of War 

(hereinafter in this section referred to as the ‘‘Committee’’). 


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(2)(A) The members of the Committee shall be appointed by the 

Secretary from the general public and shall include— 

(i) appropriate representatives of veterans who are former 

prisoners of war; 

(ii) individuals who are recognized authorities in fields pertinent to disabilities prevalent among former prisoners of war, 

including authorities in epidemiology, mental health, nutrition, 

geriatrics, and internal medicine; and 

(iii) appropriate representatives of disabled veterans. 

(B) The Committee shall also include, as ex officio members, the 

Under Secretary for øHealth and the Under Secretary for Benefits¿ 

Health, the Under Secretary for Benefits, and the Under Secretary 

for Veterans Economic Opportunity and Transition, or their designees. 

(3) The Secretary shall determine the number, terms of service, 

and pay and allowances of members of the Committee appointed by 

the Secretary, except that the term of service of any such member 

may not exceed three years. 

(b) The Secretary shall, on a regular basis, consult with and seek 

the advice of the Committee with respect to the administration of 

benefits under this title for veterans who are former prisoners of 

war and the needs of such veterans with respect to compensation, 

health care, and rehabilitation. 

(c)(1) Not later than July 1 of each odd-numbered year through 

2009, the Committee shall submit to the Secretary a report on the 

programs and activities of the Department that pertain to veterans 

who are former prisoners of war. Each such report shall include— 

(A) an assessment of the needs of such veterans with respect 

to compensation, health care, and rehabilitation; 

(B) a review of the programs and activities of the Department designed to meet such needs; and 

(C) such recommendations (including recommendations for 

administrative and legislative action) as the Committee considers to be appropriate. 

(2) The Secretary shall, within 60 days after receiving each report under paragraph (1), submit to the Congress a copy of the report, together with any comments concerning the report that the 

Secretary considers appropriate. 

(3) The Committee may also submit to the Secretary such other 

reports and recommendations as the Committee considers appropriate. 

(4) The Secretary shall submit with each annual report submitted to the Congress pursuant to section 529 of this title a summary of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary submitted to the Congress pursuant to that section. 

§ 542. Advisory Committee on Women Veterans 

(a)(1) The Secretary shall establish an advisory committee to be 

known as the Advisory Committee on Women Veterans (hereinafter 

in this section referred to as ‘‘the Committee’’). 

(2)(A) The Committee shall consist of members appointed by the 

Secretary from the general public, including— 

(i) representatives of women veterans; 


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(ii) individuals who are recognized authorities in fields pertinent to the needs of women veterans, including the gender-specific health-care needs of women; 

(iii) representatives of both female and male veterans with 

service-connected disabilities, including at least one female veteran with a service-connected disability and at least one male 

veteran with a service-connected disability; and 

(iv) women veterans who are recently separated from service 

in the Armed Forces. 

(B) The Committee shall include, as ex officio members— 

ø(i) the Secretary of Labor (or a representative of the Secretary of Labor designated by the Secretary after consultation 

with the Assistant Secretary of Labor for Veterans’ Employment);¿ 

ø(ii)¿ (i) the Secretary of Defense (or a representative of the 

Secretary of Defense designated by the Secretary of Defense 

after consultation with the Defense Advisory Committee on 

Women in the Services); and 

ø(iii)¿ (ii) the Under Secretary for øHealth and the Under 

Secretary for Benefits¿ Health, the Under Secretary for Benefits, and the Under Secretary for Veterans Economic Opportunity and Transition, or their designees. 

(C) The Secretary may invite representatives of other departments and agencies of the United States to participate in the meetings and other activities of the Committee. 

(3) The Secretary shall determine the number, terms of service, 

and pay and allowances of members of the Committee appointed by 

the Secretary, except that a term of service of any such member 

may not exceed three years. The Secretary may reappoint any such 

member for additional terms of service. 

(b) The Secretary shall, on a regular basis, consult with and seek 

the advice of the Committee with respect to the administration of 

benefits by the Department for women veterans, reports and studies pertaining to women veterans and the needs of women veterans 

with respect to compensation, health care, rehabilitation, outreach, 

and other benefits and programs administered by the Department, 

including the Center for Women Veterans. 

(c)(1) Not later than July 1 of each even-numbered year, the 

Committee shall submit to the Secretary a report on the programs 

and activities of the Department that pertain to women veterans. 

Each such report shall include— 

(A) an assessment of the needs of women veterans with respect to compensation, health care, rehabilitation, outreach, 

and other benefits and programs administered by the Department; 

(B) a review of the programs and activities of the Department designed to meet such needs; and 

(C) such recommendations (including recommendations for 

administrative and legislative action) as the Committee considers appropriate. 

(2) The Secretary shall, within 60 days after receiving each report under paragraph (1), submit to the Congress a copy of the report, together with any comments concerning the report that the 

Secretary considers appropriate. 


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(3) The Committee may also submit to the Secretary such other 

reports and recommendations as the Committee considers appropriate. 

(4) The Secretary shall submit with each annual report submitted to the Congress pursuant to section 529 of this title a summary of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary submitted pursuant to such section. 

* * * * * * * 

§ 544. Advisory Committee on Minority Veterans 

(a)(1) The Secretary shall establish an advisory committee to be 

known as the Advisory Committee on Minority Veterans (hereinafter in this section referred to as ‘‘the Committee’’). 

(2)(A) The Committee shall consist of members appointed by the 

Secretary from the general public, including— 

(i) representatives of veterans who are minority group members; 

(ii) individuals who are recognized authorities in fields pertinent to the needs of veterans who are minority group members; 

(iii) veterans who are minority group members and who have 

experience in a military theater of operations; 

(iv) veterans who are minority group members and who do 

not have such experience; and 

(v) women veterans who are minority group members and 

are recently separated from service in the Armed Forces. 

(B) The Committee shall include, as ex officio members, the following: 

ø(i) The Secretary of Labor (or a representative of the Secretary of Labor designated by the Secretary after consultation 

with the Assistant Secretary of Labor for Veterans’ Employment).¿ 

ø(ii)¿ (i) The Secretary of Defense (or a representative of the 

Secretary of Defense designated by the Secretary of Defense). 

ø(iii)¿ (ii) The Secretary of the Interior (or a representative 

of the Secretary of the Interior designated by the Secretary of 

the Interior). 

ø(iv)¿ (iii) The Secretary of Commerce (or a representative of 

the Secretary of Commerce designated by the Secretary of 

Commerce). 

ø(v)¿ (iv) The Secretary of Health and Human Services (or 

a representative of the Secretary of Health and Human Services designated by the Secretary of Health and Human Services). 

ø(vi)¿ (v) The Under Secretary for øHealth and the Under 

Secretary for Benefits¿ Health, the Under Secretary for Benefits, and the Under Secretary for Veterans Economic Opportunity and Transition, or their designees. 

(C) The Secretary may invite representatives of other departments and agencies of the United States to participate in the meetings and other activities of the Committee. 

(3) The Secretary shall determine the number, terms of service, 

and pay and allowances of members of the Committee appointed by 

the Secretary, except that a term of service of any such member 


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may not exceed three years. The Secretary may reappoint any such 

member for additional terms of service. 

(4) The Committee shall meet as often as the Secretary considers 

necessary or appropriate, but not less often than twice each fiscal 

year. 

(b) The Secretary shall, on a regular basis, consult with and seek 

the advice of the Committee with respect to the administration of 

benefits by the Department for veterans who are minority group 

members, reports and studies pertaining to such veterans and the 

needs of such veterans with respect to compensation, health care, 

rehabilitation, outreach, and other benefits and programs administered by the Department, including the Center for Minority Veterans. 

(c)(1) Not later than July 1 of each year, the Committee shall 

submit to the Secretary a report on the programs and activities of 

the Department that pertain to veterans who are minority group 

members. Each such report shall include— 

(A) an assessment of the needs of veterans who are minority 

group members with respect to compensation, health care, rehabilitation, outreach, and other benefits and programs administered by the Department; 

(B) a review of the programs and activities of the Department designed to meet such needs; and 

(C) such recommendations (including recommendations for 

administrative and legislative action) as the Committee considers appropriate. 

(2) The Secretary shall, within 60 days after receiving each report under paragraph (1), submit to Congress a copy of the report, 

together with any comments concerning the report that the Secretary considers appropriate. 

(3) The Committee may also submit to the Secretary such other 

reports and recommendations as the Committee considers appropriate. 

(4) The Secretary shall submit with each annual report submitted to the Congress pursuant to section 529 of this title a summary of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary submitted pursuant to such section. 

(d) In this section, the term ‘‘minority group member’’ means an 

individual who is— 

(1) Asian American; 

(2) Black; 

(3) Hispanic; 

(4) Native American (including American Indian, Alaskan 

Native, and Native Hawaiian); or 

(5) Pacific-Islander American. 

(e) The Committee shall cease to exist December 31, 2015. 

* * * * * * * 

CHAPTER 7—EMPLOYEES 

* * * * * * * 


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§ 709. Employment restrictions 

(a)(1) Notwithstanding section 3134(d) of title 5, the number of 

Senior Executive Service positions in the Department which are 

filled by noncareer appointees in any fiscal year may not at any 

time exceed 5 percent of the average number of senior executives 

employed in Senior Executive Service positions in the Department 

during the preceding fiscal year. 

(2) For purposes of this subsection, the average number of senior 

executives employed in Senior Executive Service positions in the 

Department during a fiscal year shall be equal to 25 percent of the 

sum of the total number of senior executives employed in Senior 

Executive Service positions in the Department on the last day of 

each quarter of such fiscal year. 

(b) The number of positions in the Department which may be excepted from the competitive service, on a temporary or permanent 

basis, because of their confidential or policy-determining character 

may not at any time exceed the equivalent of 15 positions. 

(c)(1) Political affiliation or activity may not be taken into account in connection with the appointment of any person to any position in or to perform any service for the Department or in the assignment or advancement of any employee in the Department. 

(2) Paragraph (1) shall not apply— 

(A) to the appointment of any person by the President under 

this title, other than the appointment of the Under Secretary 

for Health, the Under Secretary for Benefits, the Under Secretary for Veterans Economic Opportunity and Transition, and 

the Inspector General; or 

(B) to the appointment of any person to (i) a Senior Executive Service position as a noncareer appointee, or (ii) a position 

that is excepted from the competitive service, on a temporary 

or permanent basis, because of the confidential or policy-determining character of the position. 

* * * * * * * 

PART II—GENERAL BENEFITS 

* * * * * * * 

CHAPTER 17—HOSPITAL, NURSING HOME, 

DOMICILIARY, AND MEDICAL CARE 

SUBCHAPTER I—GENERAL 

* * * * * * * 

§ 1705. Management of health care: patient enrollment system 

(a) In managing the provision of hospital care and medical services under section 1710(a) of this title, the Secretary, in accordance 

with regulations the Secretary shall prescribe, shall establish and 

operate a system of annual patient enrollment. The Secretary shall 

manage the enrollment of veterans in accordance with the following priorities, in the order listed: 

(1) Veterans with service-connected disabilities rated 50 percent or greaterø.¿ and veterans who were awarded the medal 


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of honor under section 3741, 6241, or 8741 of title 10 or section 

491 of title 14. 

(2) Veterans with service-connected disabilities rated 30 percent or 40 percent. 

(3) Veterans who are former prisoners of war or who were 

awarded the Purple Heart, øveterans who were awarded the 

medal of honor under section 3741, 6241, or 8741 of title 10 or 

section 491 of title 14,¿ veterans with service-connected disabilities rated 10 percent or 20 percent, and veterans described 

in subparagraphs (B) and (C) of section 1710(a)(2) of this title. 

(4) Veterans who are in receipt of increased pension based on 

a need of regular aid and attendance or by reason of being permanently housebound and other veterans who are catastrophically disabled. 

(5) Veterans not covered by paragraphs (1) through (4) who 

are unable to defray the expenses of necessary care as determined under section 1722(a) of this title. 

(6) All other veterans eligible for hospital care, medical services, and nursing home care under section 1710(a)(2) of this 

title. 

(7) Veterans described in section 1710(a)(3) of this title who 

are eligible for treatment as a low-income family under section 

3(b) of the United States Housing Act of 1937 (42 U.S.C. 

1437a(b)) for the area in which such veterans reside, regardless of whether such veterans are treated as single person families under paragraph (3)(A) of such section 3(b) or as families 

under paragraph (3)(B) of such section 3(b). 

(8) Veterans described in section 1710(a)(3) of this title who 

are not covered by paragraph (7). 

(b) In the design of an enrollment system under subsection (a), 

the Secretary— 

(1) shall ensure that the system will be managed in a manner to ensure that the provision of care to enrollees is timely 

and acceptable in quality; 

(2) may establish additional priorities within each priority 

group specified in subsection (a), as the Secretary determines 

necessary; and 

(3) may provide for exceptions to the specified priorities 

where dictated by compelling medical reasons. 

(c)(1) The Secretary may not provide hospital care or medical 

services to a veteran under paragraph (2) or (3) of section 1710(a) 

of this title unless the veteran enrolls in the system of patient enrollment established by the Secretary under subsection (a). 

(2) The Secretary shall provide hospital care and medical services 

under section 1710(a)(1) of this title, and under subparagraph (B) 

of section 1710(a)(2) of this title, for the 12-month period following 

such veteran’s discharge or release from service, to any veteran referred to in such sections for a disability specified in the applicable 

subparagraph of such section, notwithstanding the failure of the 

veteran to enroll in the system of patient enrollment referred to in 

subsection (a) of this section. 

* * * * * * * 


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SUBCHAPTER II—HOSPITAL, NURSING HOME, OR 

DOMICILIARY CARE AND MEDICAL TREATMENT 

§ 1710. Eligibility for hospital, nursing home, and domiciliary care 

(a)(1) The Secretary (subject to paragraph (4)) shall furnish hospital care and medical services which the Secretary determines to 

be needed— 

(A) to any veteran for a service-connected disability; and 

(B) to any veteran who has a service-connected disability 

rated at 50 percent or more. 

(2) The Secretary (subject to paragraph (4)) shall furnish hospital 

care and medical services, and may furnish nursing home care, 

which the Secretary determines to be needed to any veteran— 

(A) who has a compensable service-connected disability rated 

less than 50 percent or, with respect to nursing home care during any period during which the provisions of section 1710A(a) 

of this title are in effect, a compensable service-connected disability rated less than 70 percent; 

(B) whose discharge or release from active military, naval, or 

air service was for a disability that was incurred or aggravated 

in the line of duty; 

(C) who is in receipt of, or who, but for a suspension pursuant to section 1151 of this title (or both a suspension and the 

receipt of retired pay), would be entitled to disability compensation, but only to the extent that such veteran’s continuing eligibility for such care is provided for in the judgment 

or settlement provided for in such section; 

(D) who is a former prisoner of war, who was awarded the 

medal of honor under section 3741, 6241, or 8741 of title 10 or 

section 491 of title 14, or who was awarded the Purple Heart; 

(E) who is a veteran of the Mexican border period or of 

World War I; 

(F) who was exposed to a toxic substance, radiation, or other 

conditions, as provided in subsection (e); or 

(G) who is unable to defray the expenses of necessary care 

as determined under section 1722(a) of this title. 

(3) In the case of a veteran who is not described in paragraphs 

(1) and (2), the Secretary may, to the extent resources and facilities 

are available and subject to the provisions of subsections (f) and 

(g), furnish hospital care, medical services, and nursing home care 

which the Secretary determines to be needed. 

(4) The requirement in paragraphs (1) and (2) that the Secretary 

furnish hospital care and medical services, the requirement in section 1710A(a) of this title that the Secretary provide nursing home 

care, the requirement in section 1710B of this title that the Secretary provide a program of extended care services, and the requirement in section 1745 of this title to provide nursing home care 

and prescription medicines to veterans with service-connected disabilities in State homes shall be effective in any fiscal year only to 

the extent and in the amount provided in advance in appropriations Acts for such purposes. 

(5) During any period during which the provisions of section 

1710A(a) of this title are not in effect, the Secretary may furnish 

nursing home care which the Secretary determines is needed to 


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any veteran described in paragraph (1), with the priority for such 

care on the same basis as if provided under that paragraph. 

(b)(1) The Secretary may furnish to a veteran described in paragraph (2) of this subsection such domiciliary care as the Secretary 

determines is needed for the purpose of the furnishing of medical 

services to the veteran. 

(2) This subsection applies in the case of the following veterans: 

(A) Any veteran whose annual income (as determined under 

section 1503 of this title) does not exceed the maximum annual 

rate of pension that would be applicable to the veteran if the 

veteran were eligible for pension under section 1521(d) of this 

title. 

(B) Any veteran who the Secretary determines has no adequate means of support. 

(c) While any veteran is receiving hospital care or nursing home 

care in any Department facility, the Secretary may, within the limits of Department facilities, furnish medical services to correct or 

treat any non-service-connected disability of such veteran, in addition to treatment incident to the disability for which such veteran 

is hospitalized, if the veteran is willing, and the Secretary finds 

such services to be reasonably necessary to protect the health of 

such veteran. The Secretary may furnish dental services and treatment, and related dental appliances, under this subsection for a 

non-service-connected dental condition or disability of a veteran 

only (1) to the extent that the Secretary determines that the dental 

facilities of the Department to be used to furnish such services, 

treatment, or appliances are not needed to furnish services, treatment, or appliances for dental conditions or disabilities described 

in section 1712(a) of this title, or (2) if (A) such non-service-connected dental condition or disability is associated with or aggravating a disability for which such veteran is receiving hospital care, 

or (B) a compelling medical reason or a dental emergency requires 

furnishing dental services, treatment, or appliances (excluding the 

furnishing of such services, treatment, or appliances of a routine 

nature) to such veteran during the period of hospitalization under 

this section. 

(d) In no case may nursing home care be furnished in a hospital 

not under the direct jurisdiction of the Secretary except as provided 

in section 1720 of this title. 

(e)(1)(A) A Vietnam-era herbicide-exposed veteran is eligible 

(subject to paragraph (2)) for hospital care, medical services, and 

nursing home care under subsection (a)(2)(F) for any disability, notwithstanding that there is insufficient medical evidence to conclude 

that such disability may be associated with such exposure. 

(B) A radiation-exposed veteran is eligible for hospital care, medical services, and nursing home care under subsection (a)(2)(F) for 

any disease suffered by the veteran that is— 

(i) a disease listed in section 1112(c)(2) of this title; or 

(ii) any other disease for which the Secretary, based on the 

advice of the Advisory Committee on Environmental Hazards, 

determines that there is credible evidence of a positive association between occurrence of the disease in humans and exposure 

to ionizing radiation. 

(C) Subject to paragraph (2) of this subsection, a veteran who 

served on active duty between August 2, 1990, and November 11, 


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1998, in the Southwest Asia theater of operations during the Persian Gulf War is eligible for hospital care, medical services, and 

nursing home care under subsection (a)(2)(F) for any disability, notwithstanding that there is insufficient medical evidence to conclude 

that such disability may be associated with such service. 

(D) Subject to paragraphs (2) and (3), a veteran who served on 

active duty in a theater of combat operations (as determined by the 

Secretary in consultation with the Secretary of Defense) during a 

period of war after the Persian Gulf War, or in combat against a 

hostile force during a period of hostilities (as defined in section 

1712A(a)(2)(B) of this title) after November 11, 1998, is eligible for 

hospital care, medical services, and nursing home care under subsection (a)(2)(F) for any illness, notwithstanding that there is insufficient medical evidence to conclude that such condition is attributable to such service. 

(E) Subject to paragraph (2), a veteran who participated in a test 

conducted by the Department of Defense Deseret Test Center as 

part of a program for chemical and biological warfare testing from 

1962 through 1973 (including the program designated as ‘‘Project 

Shipboard Hazard and Defense (SHAD)’’ and related land-based 

tests) is eligible for hospital care, medical services, and nursing 

home care under subsection (a)(2)(F) for any illness, notwithstanding that there is insufficient medical evidence to conclude 

that such illness is attributable to such testing. 

(F) Subject to paragraph (2), a veteran who served on active duty 

in the Armed Forces at Camp Lejeune, North Carolina, for not 

fewer than 30 days during the period beginning on August 1, 1953 

and ending on December 31, 1987, is eligible for hospital care and 

medical services under subsection (a)(2)(F) for any of the following 

illnesses or conditions, notwithstanding that there is insufficient 

medical evidence to conclude that such illnesses or conditions are 

attributable to such service: 

(i) Esophageal cancer. 

(ii) Lung cancer. 

(iii) Breast cancer. 

(iv) Bladder cancer. 

(v) Kidney cancer. 

(vi) Leukemia. 

(vii) Multiple myeloma. 

(viii) Myleodysplasic syndromes. 

(ix) Renal toxicity. 

(x) Hepatic steatosis. 

(xi) Female infertility. 

(xii) Miscarriage. 

(xiii) Scleroderma. 

(xiv) Neurobehavioral effects. 

(xv) Non-Hodgkin’s lymphoma. 

(2)(A) In the case of a veteran described in paragraph (1)(A), hospital care, medical services, and nursing home care may not be provided under subsection (a)(2)(F) with respect to— 

(i) a disability that is found, in accordance with guidelines 

issued by the Under Secretary for Health, to have resulted 

from a cause other than an exposure described in paragraph 

(4)(A)(ii); or 


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(ii) a disease for which the National Academy of Sciences, in 

a report issued in accordance with section 3 of the Agent Orange Act of 1991, has determined that there is limited or suggestive evidence of the lack of a positive association between 

occurrence of the disease in humans and exposure to a herbicide agent. 

(B) In the case of a veteran described in subparagraph (C), (D), 

(E), or (F) of paragraph (1), hospital care, medical services, and 

nursing home care may not be provided under subsection (a)(2)(F) 

with respect to a disability that is found, in accordance with guidelines issued by the Under Secretary for Health, to have resulted 

from a cause other than the service or testing described in such 

subparagraph. 

(3) In the case of care for a veteran described in paragraph 

(1)(D), hospital care, medical services, and nursing home care may 

be provided under or by virtue of subsection (a)(2)(F) only during 

the following periods: 

(A) Except as provided by subparagraph (B), with respect to 

a veteran described in paragraph (1)(D) who is discharged or 

released from the active military, naval, or air service after 

January 27, 2003, the five-year period beginning on the date 

of such discharge or release. 

(B) With respect to a veteran described in paragraph (1)(D) 

who is discharged or released from the active military, naval, 

or air service after January 1, 2009, and before January 1, 

2011, but did not enroll to receive such hospital care, medical 

services, or nursing home care pursuant to such paragraph 

during the five-year period described in subparagraph (A), the 

one-year period beginning on the date of the enactment of the 

Clay Hunt Suicide Prevention for American Veterans Act. 

(C) With respect to a veteran described in paragraph (1)(D) 

who is discharged or released from the active military, naval, 

or air service on or before January 27, 2003, and did not enroll 

in the patient enrollment system under section 1705 of this 

title on or before such date, the three-year period beginning on 

January 27, 2008. 

(4) For purposes of this subsection— 

(A) The term ‘‘Vietnam-era herbicide-exposed veteran’’ means 

a veteran (i) who served on active duty in the Republic of Vietnam during the during the period beginning on January 9, 

1962, and ending on May 7, 1975, and (ii) who the Secretary 

finds may have been exposed during such service to dioxin or 

was exposed during such service to a toxic substance found in 

a herbicide or defoliant used for military purposes during such 

period. 

(B) The term ‘‘radiation-exposed veteran’’ has the meaning 

given that term in section 1112(c)(3) of this title. 

(5) When the Secretary first provides care for veterans using the 

authority provided in paragraph (1)(D), the Secretary shall establish a system for collection and analysis of information on the general health status and health care utilization patterns of veterans 

receiving care under that paragraph. Not later than 18 months 

after first providing care under such authority, the Secretary shall 

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ity. The Secretary shall include in the report any recommendations 

of the Secretary for extension of that authority. 

(f)(1) The Secretary may not furnish hospital care or nursing 

home care (except if such care constitutes hospice care) under this 

section to a veteran who is eligible for such care under subsection 

(a)(3) of this section unless the veteran agrees to pay to the United 

States the applicable amount determined under paragraph (2) or 

(4) of this subsection. 

(2) A veteran who is furnished hospital care or nursing home 

care under this section and who is required under paragraph (1) of 

this subsection to agree to pay an amount to the United States in 

order to be furnished such care shall be liable to the United States 

for an amount equal to— 

(A) the lesser of— 

(i) the cost of furnishing such care, as determined by the 

Secretary; or 

(ii) the amount determined under paragraph (3) of this 

subsection; and 

(B) before September 30, 2015, an amount equal to $10 for every day the veteran receives hospital care and $5 for every 

day the veteran receives nursing home care. 

(3)(A) In the case of hospital care furnished during any 365-day 

period, the amount referred to in paragraph (2)(A)(ii) of this subsection is— 

(i) the amount of the inpatient Medicare deductible, plus (ii) 

one-half of such amount for each 90 days of care (or fraction 

thereof) after the first 90 days of such care during such 365- 

day period. 

(B) In the case of nursing home care furnished during any 365- 

day period, the amount referred to in paragraph (2)(A)(ii) of this 

subsection is the amount of the inpatient Medicare deductible for 

each 90 days of such care (or fraction thereof) during such 365-day 

period. 

(C)(i) Except as provided in clause (ii) of this subparagraph, in 

the case of a veteran who is admitted for nursing home care under 

this section after being furnished, during the preceding 365-day period, hospital care for which the veteran has paid the amount of 

the inpatient Medicare deductible under this subsection and who 

has not been furnished 90 days of hospital care in connection with 

such payment, the veteran shall not incur any liability under paragraph (2) of this subsection with respect to such nursing home care 

until— 

(I) the veteran has been furnished, beginning with the first 

day of such hospital care furnished in connection with such 

payment, a total of 90 days of hospital care and nursing home 

care; or 

(II) the end of the 365-day period applicable to the hospital 

care for which payment was made, 

whichever occurs first. 

(ii) In the case of a veteran who is admitted for nursing home 

care under this section after being furnished, during any 365-day 

period, hospital care for which the veteran has paid an amount 

under subparagraph (A)(ii) of this paragraph and who has not been 

furnished 90 days of hospital care in connection with such payment, the amount of the liability of the veteran under paragraph 


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(2) of this subsection with respect to the number of days of such 

nursing home care which, when added to the number of days of 

such hospital care, is 90 or less, is the difference between the inpatient Medicare deductible and the amount paid under such subparagraph until— 

(I) the veteran has been furnished, beginning with the first 

day of such hospital care furnished in connection with such 

payment, a total of 90 days of hospital care and nursing home 

care; or 

(II) the end of the 365-day period applicable to the hospital 

care for which payment was made, 

whichever occurs first. 

(D) In the case of a veteran who is admitted for hospital care 

under this section after having been furnished, during the preceding 365-day period, nursing home care for which the veteran 

has paid the amount of the inpatient Medicare deductible under 

this subsection and who has not been furnished 90 days of nursing 

home care in connection with such payment, the veteran shall not 

incur any liability under paragraph (2) of this subsection with respect to such hospital care until— 

(i) the veteran has been furnished, beginning with the first 

day of such nursing home care furnished in connection with 

such payment, a total of 90 days of nursing home care and hospital care; or 

(ii) the end of the 365-day period applicable to the nursing 

home care for which payment was made, 

whichever occurs first. 

(E) A veteran may not be required to make a payment under this 

subsection for hospital care or nursing home care furnished under 

this section during any 90-day period in which the veteran is furnished medical services under paragraph (3) of subsection (a) to the 

extent that such payment would cause the total amount paid by 

the veteran under this subsection for hospital care and nursing 

home care furnished during that period and under subsection (g) 

for medical services furnished during that period to exceed the 

amount of the inpatient Medicare deductible in effect on the first 

day of such period. 

(F) A veteran may not be required to make a payment under this 

subsection or subsection (g) for any days of care in excess of 360 

days of care during any 365-calendar-day period. 

(4) In the case of a veteran covered by this subsection who is also 

described by section 1705(a)(7) of this title, the amount for which 

the veteran shall be liable to the United States for hospital care 

under this subsection shall be an amount equal to 20 percent of the 

total amount for which the veteran would otherwise be liable for 

such care under subparagraphs (2)(B) and (3)(A) but for this paragraph. 

(5) For the purposes of this subsection, the term ‘‘inpatient Medicare deductible’’ means the amount of the inpatient hospital deductible in effect under section 1813(b) of the Social Security Act 

(42 U.S.C. 1395e(b)) on the first day of the 365-day period applicable under paragraph (3) of this subsection. 

(g)(1) The Secretary may not furnish medical services (except if 

such care constitutes hospice care) under subsection (a) of this section (including home health services under section 1717 of this 


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title) to a veteran who is eligible for hospital care under this chapter by reason of subsection (a)(3) of this section unless the veteran 

agrees to pay to the United States in the case of each outpatient 

visit the applicable amount or amounts established by the Secretary by regulation. 

(2) A veteran who is furnished medical services under subsection 

(a) of this section and who is required under paragraph (1) of this 

subsection to agree to pay an amount to the United States in order 

to be furnished such services shall be liable to the United States, 

in the case of each visit in which such services are furnished to the 

veteran, for an amount which the Secretary shall establish by regulation. 

(3) This subsection does not apply with respect to home health 

services under section 1717 of this title to the extent that such 

services are for improvements and structural alterations. 

(h) Nothing in this section requires the Secretary to furnish care 

to a veteran to whom another agency of Federal, State, or local government has a duty under law to provide care in an institution of 

such government. 

* * * * * * * 

§ 1710B. Extended care services 

(a) The Secretary (subject to section 1710(a)(4) of this title and 

subsection (c) of this section) shall operate and maintain a program 

to provide extended care services to eligible veterans in accordance 

with this section. Such services shall include the following: 

(1) Geriatric evaluation. 

(2) Nursing home care (A) in facilities operated by the Secretary, and (B) in community-based facilities through contracts 

under section 1720 of this title. 

(3) Domiciliary services under section 1710(b) of this title. 

(4) Adult day health care under section 1720(f) of this title. 

(5) Such other noninstitutional alternatives to nursing home 

care as the Secretary may furnish as medical services under 

section 1701(10) of this title. 

(6) Respite care under section 1720B of this title. 

(b) The Secretary shall ensure that the staffing and level of extended care services provided by the Secretary nationally in facilities of the Department during any fiscal year is not less than the 

staffing and level of such services provided nationally in facilities 

of the Department during fiscal year 1998. 

(c)(1) Except as provided in paragraph (2), the Secretary may not 

furnish extended care services for a non-service-connected disability other than in the case of a veteran who has a compensable 

service-connected disability unless the veteran agrees to pay to the 

United States a copayment (determined in accordance with subsection (d)) for any period of such services in a year after the first 

21 days of such services provided that veteran in that year. 

(2) Paragraph (1) shall not apply— 

(A) to a veteran whose annual income (determined under 

section 1503 of this title) is less than the amount in effect 

under section 1521(b) of this title; 

(B) to a veteran being furnished hospice care under this section; øor¿ 


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(C) with respect to an episode of extended care services that 

a veteran is being furnished by the Department on November 

30, 1999ø.¿; or 

(D) to a veteran who was awarded the medal of honor under 

section 3741, 6241, or 8741 of title 10 or section 491 of title 14. 

(d)(1) A veteran who is furnished extended care services under 

this chapter and who is required under subsection (c) to pay an 

amount to the United States in order to be furnished such services 

shall be liable to the United States for that amount. 

(2) In implementing subsection (c), the Secretary shall develop a 

methodology for establishing the amount of the copayment for 

which a veteran described in subsection (c) is liable. That methodology shall provide for— 

(A) establishing a maximum monthly copayment (based on 

all income and assets of the veteran and the spouse of such 

veteran); 

(B) protecting the spouse of a veteran from financial hardship by not counting all of the income and assets of the veteran 

and spouse (in the case of a spouse who resides in the community) as available for determining the copayment obligation; 

and 

(C) allowing the veteran to retain a monthly personal allowance. 

(e)(1) There is established in the Treasury of the United States 

a revolving fund known as the Department of Veterans Affairs Extended Care Fund (hereinafter in this section referred to as the 

‘‘fund’’). Amounts in the fund shall be available, without fiscal year 

limitation and without further appropriation, exclusively for the 

purpose of providing extended care services under subsection (a). 

(2) All amounts received by the Department under this section 

shall be deposited in or credited to the fund. 

* * * * * * * 

SUBCHAPTER III—MISCELLANEOUS PROVISIONS RELATING 

TO HOSPITAL AND NURSING HOME CARE AND MEDICAL 

TREATMENT OF VETERANS 

* * * * * * * 

§ 1722A. Copayment for medications 

(a)(1) Subject to paragraph (2), the Secretary shall require a vet- eran to pay the United States $2 for each 30-day supply of medication furnished such veteran under this chapter on an outpatient 

basis for the treatment of a non-service-connected disability or condition. If the amount supplied is less than a 30-day supply, the 

amount of the charge may not be reduced. 

(2) The Secretary may not require a veteran to pay an amount 

in excess of the cost to the Secretary for medication described in 

paragraph (1). 

(3) Paragraph (1) does not apply— 

(A) to a veteran with a service-connected disability rated 50 

percent or more; 

(B) to a veteran who is a former prisoner of war; øor¿ 

(C) to a veteran whose annual income (as determined under 

section 1503 of this title) does not exceed the maximum annual 


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rate of pension which would be payable to such veteran if such 

veteran were eligible for pension under section 1521 of this 

titleø.¿; or 

(D) to a veteran who was awarded the medal of honor under 

section 3741, 6241, or 8741 of title 10 or section 491 of title 14. 

(b) The Secretary, pursuant to regulations which the Secretary 

shall prescribe, may— 

(1) increase the copayment amount in effect under subsection 

(a); and 

(2) establish a maximum monthly and a maximum annual 

pharmaceutical copayment amount under subsection (a) for 

veterans who have multiple outpatient prescriptions. 

(c) Amounts collected under this section shall be deposited in the 

Department of Veterans Affairs Medical Care Collections Fund. 

* * * * * * * 

SUBCHAPTER VIII—HEALTH CARE OF PERSONS OTHER 

THAN VETERANS 

* * * * * * * 

§ 1786. Care for newborn children of women veterans receiving maternity care 

(a) IN GENERAL.—The Secretary may furnish health care services 

described in subsection (b) to a newborn child of a woman veteran 

who is receiving maternity care furnished by the Department for 

not more than øseven days¿ 42 days after the birth of the child if 

the veteran delivered the child in— 

(1) a facility of the Department; or 

(2) another facility pursuant to a Department contract for 

services relating to such delivery. 

(b) COVERED HEALTH CARE SERVICES.—Health care services described in this subsection are all post-delivery care services, including routine care services, that a newborn child requires. 

(c) ANNUAL REPORT.—Not later than October 31, 2016, and each 

year thereafter through 2020, the Secretary shall submit to the Committees on Veterans’ Affairs of the House of Representatives and the 

Senate a report on the health care services provided under subsection (a) during the fiscal year preceding the date of the report, 

including the number of newborn children who received such services during such fiscal year. 

* * * * * * * 

CHAPTER 20—BENEFITS FOR HOMELESS VETERANS 

SUBCHAPTER I—PURPOSE; DEFINITIONS; ADMINISTRATIVE 

MATTERS 

* * * * * * * 

§ 2003. Staffing requirements 

(a) VBA STAFFING AT REGIONAL OFFICES.—The Secretary shall 

ensure that there is at least one full-time employee assigned to 

oversee and coordinate homeless veterans programs at each of the 

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retary determines have the largest homeless veteran populations 

within the regions of the Administration. The programs covered by 

such oversight and coordination include the following: 

(1) Housing programs administered by the Secretary under 

this title or any other provision of law. 

(2) Compensation, pension, vocational rehabilitation, and 

education benefits programs administered by the Secretary 

under this title or any other provision of law. 

(3) The housing program for veterans supported by the Department of Housing and Urban Development. 

(4) The homeless veterans reintegration program øof the Department of Labor¿ under section 2021 of this title. 

(5) The programs under section 2033 of this title. 

(6) The assessments required by section 2034 of this title. 

(7) Such other programs relating to homeless veterans as 

may be specified by the Secretary. 

(b) VHA CASE MANAGERS.—The Secretary shall ensure that the 

number of case managers in the Veterans Health Administration 

is sufficient to assure that every veteran who is provided a housing 

voucher through section 8(o) of the United States Housing Act of 

1937 (42 U.S.C. 1437f(o)) is assigned to, and is seen as needed by, 

a case manager. 

SUBCHAPTER II—COMPREHENSIVE SERVICE PROGRAMS 

§ 2011. Grants 

(a) AUTHORITY TO MAKE GRANTS.—Subject to the availability of 

appropriations provided for such purpose, the Secretary shall make 

grants to assist eligible entities in establishing programs to furnish, and expanding or modifying existing programs for furnishing, 

the following to homeless veterans: 

(1) Outreach. 

(2) Rehabilitative services. 

(3) Vocational counseling and training. 

(4) Transitional housing assistance. 

(b) CRITERIA FOR GRANTS.—The Secretary shall establish criteria 

and requirements for grants under this section, including criteria 

for entities eligible to receive grants, and shall publish such criteria 

and requirements in the Federal Register. The criteria established 

under this subsection shall include the following: 

(1) Specification as to the kinds of projects for which grants 

are available, which shall include— 

(A) new construction of facilities, expansion, remodeling, 

or alteration of existing facilities, or acquisition of facilities, for use as service centers, transitional housing, or 

other facilities to serve homeless veterans; and 

(B) procurement of vans for use in outreach to and 

transportation for homeless veterans for purposes of a program referred to in subsection (a). 

(2) Specification as to the number of projects for which 

grants are available. 

(3) Criteria for staffing for the provision of services under a 

project for which grants are made. 

(4) Provisions to ensure that grants under this section— 


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(A) shall not result in duplication of ongoing services; 

and 

(B) to the maximum extent practicable, shall reflect appropriate geographic dispersion and an appropriate balance between urban and other locations. 

(5) Provisions to ensure that an entity receiving a grant shall 

meet fire and safety requirements established by the Secretary, which shall include— 

(A) such State and local requirements that may apply; 

and 

(B) fire and safety requirements applicable under the 

Life Safety Code of the National Fire Protection Association or such other comparable fire and safety requirements 

as the Secretary may specify. 

(6) Specification as to the means by which an entity receiving a grant may contribute in-kind services to the start-up 

costs of a project for which a grant is sought and the methodology for assigning a cost to that contribution for purposes of 

subsection (c). 

(c) FUNDING LIMITATIONS.—(1) A grant under this section may 

not be used to support operational costs. 

(2) The amount of a grant under this section may not exceed 65 

percent of the estimated cost of the project concerned. 

(3)(A) The Secretary may not deny an application from an entity 

that seeks a grant under this section to carry out a project described in subsection (b)(1)(A) solely on the basis that the entity 

proposes to use funding from other private or public sources, if the 

entity demonstrates that a private nonprofit organization will provide oversight and site control for the project. 

(B) In this paragraph, the term ‘‘private nonprofit organization’’ 

means the following: 

(i) An incorporated private institution, organization, or foundation— 

(I) that has received, or has temporary clearance to receive, tax-exempt status under paragraph (2), (3), or (19) 

of section 501(c) of the Internal Revenue Code of 1986; 

(II) for which no part of the net earnings of the institution, organization, or foundation inures to the benefit of 

any member, founder, or contributor of the institution, organization, or foundation; and 

(III) that the Secretary determines is financially responsible. 

(ii) A for-profit limited partnership or limited liability company, the sole general partner or manager of which is an organization that is described by subclauses (I) through (III) of 

clause (i). 

(iii) A corporation wholly owned and controlled by an organization that is described by subclauses (I) through (III) of clause 

(i). 

(d) ELIGIBLE ENTITIES.—The Secretary may make a grant under 

this section to an entity applying for such a grant only if the applicant for the grant— 

(1) is a public or nonprofit private entity with the capacity 

(as determined by the Secretary) to effectively administer a 

grant under this section; 


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(2) demonstrates that adequate financial support will be 

available to carry out the project for which the grant is sought 

consistent with the plans, specifications, and schedule submitted by the applicant; and 

(3) agrees to meet the applicable criteria and requirements 

established under subsections (b) and (g) and has, as determined by the Secretary, the capacity to meet such criteria and 

requirements. 

(e) APPLICATION REQUIREMENT.—An entity seeking a grant for a 

project under this section shall submit to the Secretary an application for the grant. The application shall set forth the following: 

(1) The amount of the grant sought for the project. 

(2) A description of the site for the project. 

(3) Plans, specifications, and the schedule for implementation of the project in accordance with criteria and requirements 

prescribed by the Secretary under subsection (b). 

(4) Reasonable assurance that upon completion of the work 

for which the grant is sought, the project will become operational and the facilities will be used principally to provide to 

veterans the services for which the project was designed, and 

that not more than 25 percent of the services provided under 

the project will be provided to individuals who are not veterans. 

(f) PROGRAM REQUIREMENTS.—The Secretary may not make a 

grant for a project to an applicant under this section unless the applicant in the application for the grant agrees to each of the following requirements: 

(1) To provide the services for which the grant is made at locations accessible to homeless veterans. 

(2) To maintain referral networks for homeless veterans for 

establishing eligibility for assistance and obtaining services, 

under available entitlement and assistance programs, and to 

aid such veterans in establishing eligibility for and obtaining 

such services. 

(3) To ensure the confidentiality of records maintained on 

homeless veterans receiving services through the project. 

(4) To establish such procedures for fiscal control and fund 

accounting as may be necessary to ensure proper disbursement 

and accounting with respect to the grant and to such payments 

as may be made under section 2012 of this title. 

(5) To seek to employ homeless veterans and formerly homeless veterans in positions created for purposes of the grant for 

which those veterans are qualified. 

(g) SERVICE CENTER REQUIREMENTS.—In addition to criteria and 

requirements established under subsection (b), in the case of an application for a grant under this section for a service center for 

homeless veterans, the Secretary shall require each of the following: 

(1) That such center provide services to homeless veterans 

during such hours as the Secretary may specify and be open 

to such veterans on an as-needed, unscheduled basis. 

(2) That space at such center be made available, as mutually 

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cies and organizations in assisting homeless veterans served by 

such center. 

(3) That such center be equipped and staffed to provide or 

to assist in providing health care, mental health services, hygiene facilities, benefits and employment counseling, meals, 

transportation assistance, and such other services as the Secretary determines necessary. 

(4) That such center be equipped and staffed to provide, or 

to assist in providing, job training, counseling, and placement 

services (including job readiness and literacy and skills training), as well as any outreach and case management services 

that may be necessary to carry out this paragraph. 

(h) RECOVERY OF UNUSED GRANT FUNDS.—(1) If a grant recipient 

under this section does not establish a program in accordance with 

this section or ceases to furnish services under such a program for 

which the grant was made, the United States shall be entitled to 

recover from such recipient the total of all unused grant amounts 

made under this section to such recipient in connection with such 

program. 

(2) Any amount recovered by the United States under paragraph 

(1) may be obligated by the Secretary without fiscal year limitation 

to carry out provisions of this subchapter. 

(3) An amount may not be recovered under paragraph (1) as an 

unused grant amount before the end of the three-year period beginning on the date on which the grant is made. 

* * * * * * * 

SUBCHAPTER III—TRAINING AND OUTREACH 

§ 2021. Homeless veterans reintegration programs 

(a) IN GENERAL.—Subject to the availability of appropriations 

provided for such purpose, the øSecretary of Labor¿ Secretary shall 

conduct, directly or through grant or contract, such programs as 

the Secretary determines appropriate to provide job training, counseling, and placement services (including job readiness and literacy 

and skills training) to expedite the reintegration of homeless veterans into the labor force. 

(b) REQUIREMENT TO MONITOR EXPENDITURES OF FUNDS.—(1) 

The øSecretary of Labor¿ Secretary shall collect such information 

as øthat Secretary¿ the Secretary considers appropriate to monitor 

and evaluate the distribution and expenditure of funds appropriated to carry out this section. The information shall include data 

with respect to the results or outcomes of the services provided to 

each homeless veteran under this section. 

(2) Information under paragraph (1) shall be furnished in such 

form and manner as the øSecretary of Labor¿ Secretary may specify. 

(c) øADMINISTRATION THROUGH THE ASSISTANT SECRETARY OF

LABOR FOR VETERANS’ EMPLOYMENT AND TRAINING¿ ADMINISTRA- TION THROUGH DEPUTY UNDER SECRETARY FOR VETERANS’ EM- PLOYMENT, TRAINING, AND TRANSITION.—The øSecretary of Labor¿ 

Secretary shall carry out this section through the øAssistant Secretary of Labor for Veterans’ Employment and Training¿ Deputy 

Under Secretary for Employment, Training, and Transition. 


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(d) BIENNIAL REPORT TO CONGRESS.—Not less than every two 

years, the øSecretary of Labor¿ Secretary shall submit to Congress 

a report on the programs conducted under this section. The øSecretary of Labor¿ Secretary shall include in the report an evaluation 

of services furnished to veterans under this section and an analysis 

of the information collected under subsection (b). 

(e) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized to be appropriated to carry out this section amounts as follows: 

(A) $50,000,000 for fiscal year 2002. 

(B) $50,000,000 for fiscal year 2003. 

(C) $50,000,000 for fiscal year 2004. 

(D) $50,000,000 for fiscal year 2005. 

(E) $50,000,000 for fiscal year 2006. 

(F) $50,000,000 for each of fiscal years 2007 through 2015. 

(2) Funds appropriated to carry out this section shall remain 

available until expended. Funds obligated in any fiscal year to 

carry out this section may be expended in that fiscal year and the 

succeeding fiscal year. 

§ 2021A. Homeless women veterans and homeless veterans 

with children reintegration grant program 

(a) GRANTS.—Subject to the availability of appropriations provided for such purpose, the øSecretary of Labor¿ Secretary shall 

make grants to programs and facilities that the Secretary determines provide dedicated services for homeless women veterans and 

homeless veterans with children. 

(b) USE OF FUNDS.—Grants under this section shall be used to 

provide job training, counseling, placement services (including job 

readiness and literacy and skills training) and child care services 

to expedite the reintegration of homeless women veterans and 

homeless veterans with children into the labor force. 

(c) REQUIREMENT TO MONITOR EXPENDITURES OF FUNDS.—(1) 

The øSecretary of Labor¿ Secretary shall collect such information 

as øthat Secretary¿ the Secretary considers appropriate to monitor 

and evaluate the distribution and expenditure of funds appropriated to carry out this section. The information shall include data 

with respect to the results or outcomes of the services provided to 

each homeless veteran under this section. 

(2) Information under paragraph (1) shall be furnished in such 

form and manner as the øSecretary of Labor¿ Secretary may specify. 

(d) øADMINISTRATION THROUGH THE ASSISTANT SECRETARY OF

LABOR FOR VETERANS’ EMPLOYMENT AND TRAINING¿ ADMINISTRATION THROUGH DEPUTY UNDER SECRETARY FOR VETERANS’ EMPLOYMENT, TRAINING, AND TRANSITION.—The øSecretary of Labor¿ 

Secretary shall carry out this section through the øAssistant Secretary of Labor for Veterans’ Employment and Training¿ Deputy 

Under Secretary for Employment, Training, and Transition. 

(e) BIENNIAL REPORT TO CONGRESS.—The øSecretary of Labor¿ 

Secretary shall include as part of the report required under section 

2021(d) of this title an evaluation of the grant program under this 

section, which shall include an evaluation of services furnished to 

veterans under this section and an analysis of the information collected under subsection (c). 


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(f) AUTHORIZATION OF APPROPRIATIONS.—(1) In addition to any 

amount authorized to be appropriated to carry out section 2021 of 

this title, there is authorized to be appropriated to carry out this 

section $1,000,000 for each of fiscal years 2011 through 2015. 

(2) Funds appropriated to carry out this section shall remain 

available until expended. Funds obligated in any fiscal year to 

carry out this section may be expended in that fiscal year and the 

succeeding fiscal year. 

* * * * * * * 

§ 2023. Referral and counseling services: veterans at risk of 

homelessness who are transitioning from certain 

institutions 

(a) PROGRAM AUTHORITY.—The Secretary øand the Secretary of 

Labor (hereinafter in this section referred to as the ‘‘Secretaries’’)¿ 

shall carry out a program of referral and counseling services to eligible veterans with respect to benefits and services available to 

such veterans under this title and under State law. 

(b) LOCATION OF PROGRAM.—The program shall be carried out in 

at least 12 locations. One location shall be a penal institution 

under the jurisdiction of the Bureau of Prisons. 

(c) SCOPE OF PROGRAM.—(1) To the extent practicable, the program shall provide both referral and counseling services, and in the 

case of counseling services, shall include counseling with respect to 

job training and placement (including job readiness), housing, 

health care, and other benefits to assist the eligible veteran in the 

transition from institutional living. 

(2)(A) To the extent that referral or counseling services are provided at a location under the program, referral services shall be 

provided in person during such period of time that the øSecretaries¿ Secretary may specify that precedes the date of release or 

discharge of the eligible veteran, and counseling services shall be 

furnished after such date. 

(B) The øSecretaries¿ Secretary may, as part of the program, furnish to officials of penal institutions outreach information with respect to referral and counseling services for presentation to veterans in the custody of such officials during the 18-month period 

that precedes such date of release or discharge. 

(3) The øSecretaries¿ Secretary may make grants to carry out the 

referral and counseling services required under the program with 

entities or organizations that meet such requirements as the øSecretaries¿ Secretary may establish. 

(4) In developing the program, the øSecretaries¿ Secretary shall 

consult with officials of the Bureau of Prisons, officials of penal institutions of States and political subdivisions of States, and such 

other officials as the øSecretaries¿ Secretary ødetermine¿ determines appropriate. 

(d) DURATION.—The authority of the øSecretaries¿ Secretary to 

enter into a contract to provide referral and counseling services 

under the demonstration program shall cease on September 30, 

2015. 

(e) DEFINITION.—In this section, the term ‘‘eligible veteran’’ 

means a veteran who— 

(1) is a resident of a penal institution or an institution that 

provides long-term care for mental illness; and 


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(2) is at risk for homelessness absent referral and counseling 

services provided under the demonstration program (as determined under guidelines established by the øSecretaries¿ Secretary). 

* * * * * * * 

SUBCHAPTER VII—OTHER PROVISIONS 

* * * * * * * 

§ 2065. Annual report on assistance to homeless veterans 

(a) ANNUAL REPORT.—Not later than June 15 of each year, the 

Secretary shall submit to the Committees on Veterans’ Affairs of 

the Senate and House of Representatives a report on the activities 

of the Department during the calendar year preceding the report 

under programs of the Department under this chapter and other 

programs of the Department for the provision of assistance to 

homeless veterans. 

(b) GENERAL CONTENTS OF REPORT.—Each report under subsection (a) shall include the following: 

(1) The number of homeless veterans provided assistance 

under the programs referred to in subsection (a). 

(2) The cost to the Department of providing such assistance 

under those programs. 

(3) The Secretary’s evaluation of the effectiveness of the programs of the Department in providing assistance to homeless 

veterans, including— 

(A) residential work-therapy programs; 

(B) programs combining outreach, community-based residential treatment, and case-management; and 

(C) contract care programs for alcohol and drug-dependence or use disabilities. 

(4) The Secretary’s evaluation of the effectiveness of programs established by recipients of grants under section 2011 of 

this title and a description of the experience of those recipients 

in applying for and receiving grants from the Secretary of 

Housing and Urban Development to serve primarily homeless 

persons who are veterans. 

(5) Information on the efforts of the Secretary to coordinate 

the delivery of housing and services to homeless veterans with 

other Federal departments and agencies, including— 

(A) the Department of Defense; 

(B) the Department of Health and Human Services; 

(C) the Department of Housing and Urban Development; 

(D) the Department of Justice; 

ø(E) the Department of Labor;¿ 

ø(F)¿ (E) the Interagency Council on Homelessness; 

ø(G)¿ (F) the Social Security Administration; and 

ø(H)¿ (G) any other Federal department or agency with 

which the Secretary coordinates the delivery of housing 

and services to homeless veterans. 

(6) Any other information on those programs and on the provision of such assistance that the Secretary considers appropriate. 


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(c) HEALTH CARE CONTENTS OF REPORT.—Each report under subsection (a) shall include, with respect to programs of the Department addressing health care needs of homeless veterans, the following: 

(1) Information about expenditures, costs, and workload 

under the program of the Department known as the Health 

Care for Homeless Veterans program (HCHV). 

(2) Information about the veterans contacted through that 

program. 

(3) Information about program treatment outcomes under 

that program. 

(4) Information about supported housing programs. 

(5) Information about the Department’s grant and per diem 

provider program under subchapter II of this chapter. 

(6) The findings and conclusions of the assessments of the 

medical needs of homeless veterans conducted under section 

2034(b) of this title. 

(7) Other information the Secretary considers relevant in assessing those programs. 

(d) BENEFITS CONTENT OF REPORT.—Each report under subsection (a) shall include, with respect to programs and activities of 

the Veterans Benefits Administration in processing of claims for 

benefits of homeless veterans during the preceding year, the following: 

(1) Information on costs, expenditures, and workload of Veterans Benefits Administration claims evaluators in processing 

claims for benefits of homeless veterans. 

(2) Information on the filing of claims for benefits by homeless veterans. 

(3) Information on efforts undertaken to expedite the processing of claims for benefits of homeless veterans. 

(4) Other information that the Secretary considers relevant 

in assessing the programs and activities. 

§ 2066. Advisory Committee on Homeless Veterans 

(a) ESTABLISHMENT.—(1) There is established in the Department 

the Advisory Committee on Homeless Veterans (hereinafter in this 

section referred to as the ‘‘Committee’’). 

(2) The Committee shall consist of not more than 15 members 

appointed by the Secretary from among the following: 

(A) Veterans service organizations. 

(B) Advocates of homeless veterans and other homeless individuals. 

(C) Community-based providers of services to homeless individuals. 

(D) Previously homeless veterans. 

(E) State veterans affairs officials. 

(F) Experts in the treatment of individuals with mental illness. 

(G) Experts in the treatment of substance use disorders. 

(H) Experts in the development of permanent housing alternatives for lower income populations. 

(I) Experts in vocational rehabilitation. 

(J) Such other organizations or groups as the Secretary considers appropriate. 


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(3) The Committee shall include, as ex officio members, the following: 

ø(A) The Secretary of Labor (or a representative of the Secretary selected after consultation with the Assistant Secretary 

of Labor for Veterans’ Employment).¿ 

ø(B)¿ (A) The Secretary of Defense (or a representative of the 

Secretary). 

ø(C)¿ (B) The Secretary of Health and Human Services (or 

a representative of the Secretary). 

ø(D)¿ (C) The Secretary of Housing and Urban Development 

(or a representative of the Secretary). 

ø(E)¿ (D) The Executive Director of the Interagency Council 

on Homelessness (or a representative of the Executive Director). 

ø(F)¿ (E) The Under Secretary for Health (or a representative of the Under Secretary after consultation with the Director 

of the Office of Homeless Veterans Programs). 

ø(G)¿ (F) The Under Secretary for Benefits (or a representative of the Under Secretary after consultation with the Director 

of the Office of Homeless Veterans Programs). 

(4)(A) The Secretary shall determine the terms of service and allowances of the members of the Committee, except that a term of 

service may not exceed three years. The Secretary may reappoint 

any member for additional terms of service. 

(B) Members of the Committee shall serve without pay. Members 

may receive travel expenses, including per diem in lieu of subsistence for travel in connection with their duties as members of the 

Committee. 

(b) DUTIES.—(1) The Secretary shall consult with and seek the 

advice of the Committee on a regular basis with respect to the provision by the Department of benefits and services to homeless veterans. 

(2) In providing advice to the Secretary under this subsection, 

the Committee shall— 

(A) assemble and review information relating to the needs of 

homeless veterans; 

(B) provide an on-going assessment of the effectiveness of the 

policies, organizational structures, and services of the Department in assisting homeless veterans; and 

(C) provide on-going advice on the most appropriate means 

of providing assistance to homeless veterans. 

(3) The Committee shall— 

(A) review the continuum of services provided by the Department directly or by contract in order to define cross-cutting 

issues and to improve coordination of all services with the Department that are involved in addressing the special needs of 

homeless veterans; 

(B) identify (through the annual assessments under section 

2034 of this title and other available resources) gaps in programs of the Department in serving homeless veterans, including identification of geographic areas with unmet needs, and 

provide recommendations to address those gaps; 

(C) identify gaps in existing information systems on homeless veterans, both within and outside the Department, and 


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provide recommendations about redressing problems in data 

collection; 

(D) identify barriers under existing laws and policies to effective coordination by the Department with other Federal agencies and with State and local agencies addressing homeless 

populations; 

(E) identify opportunities for increased liaison by the Department with nongovernmental organizations and individual 

groups providing services to homeless populations; 

(F) with appropriate officials of the Department designated 

by the Secretary, participate with the Interagency Council on 

the Homeless under title II of the McKinney-Vento Homeless 

Assistance Act (42 U.S.C. 11311 et seq.); 

(G) recommend appropriate funding levels for specialized 

programs for homeless veterans provided or funded by the Department; 

(H) recommend appropriate placement options for veterans 

who, because of advanced age, frailty, or severe mental illness, 

may not be appropriate candidates for vocational rehabilitation 

or independent living; and 

(I) perform such other functions as the Secretary may direct. 

(c) REPORTS.—(1) Not later than March 31 of each year, the Committee shall submit to the Secretary a report on the programs and 

activities of the Department that relate to homeless veterans. Each 

such report shall include— 

(A) an assessment of the needs of homeless veterans; 

(B) a review of the programs and activities of the Department designed to meet such needs; 

(C) a review of the activities of the Committee; and 

(D) such recommendations (including recommendations for 

administrative and legislative action) as the Committee considers appropriate. 

(2) Not later than 90 days after the receipt of a report under 

paragraph (1), the Secretary shall transmit to the Committees on 

Veterans’ Affairs of the Senate and House of Representatives a 

copy of the report, together with any comments and recommendations concerning the report that the Secretary considers appropriate. 

(3) The Committee may also submit to the Secretary such other 

reports and recommendations as the Committee considers appropriate. 

(4) The Secretary shall submit with each annual report submitted to the Congress pursuant to section 529 of this title a summary of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary submitted pursuant to that section. 

(d) TERMINATION.—The Committee shall cease to exist December 

31, 2015. 

* * * * * * * 

PART III—READJUSTMENT AND RELATED 

BENEFITS 

* * * * * * * 


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CHAPTER 31—TRAINING AND REHABILITATION FOR 

VETERANS WITH SERVICE-CONNECTED DISABILITIES 

* * * * * * * 

§ 3104. Scope of services and assistance 

(a) Services and assistance which the Secretary may provide 

under this chapter, pursuant to regulations which the Secretary 

shall prescribe, include the following: 

(1) Evaluation, including periodic reevaluations as appropriate with respect to a veteran participating in a rehabilitation program, of the potential for rehabilitation of a veteran, 

including diagnostic and related services (A) to determine 

whether the veteran has an employment handicap or a serious 

employment handicap and whether a vocational goal is reasonably feasible for such veteran, and (B) to provide a basis for 

planning a suitable vocational rehabilitation program or a program of services and assistance to improve the vocational rehabilitation potential or independent living status of such veteran, as appropriate. 

(2) Educational, vocational, psychological, employment, and 

personal adjustment counseling. 

(3) An allowance and other appropriate assistance, as authorized by section 3108 of this title. 

(4) A work-study allowance as authorized by section 3485 of 

this title. 

(5) Placement services to effect suitable placement in employment, and postplacement services to attempt to insure satisfactory adjustment in employment. 

(6) Personal adjustment and work adjustment training. 

(7)(A) Vocational and other training services and assistance, 

including individualized tutorial assistance, tuition, fees, 

books, supplies, handling charges, licensing fees, and equipment and other training materials determined by the Secretary 

to be necessary to accomplish the purposes of the rehabilitation 

program in the individual case. 

(B) Payment for the services and assistance provided under 

subparagraph (A) of this paragraph shall be made from funds 

available for the payment of readjustment benefits. 

(8) Loans as authorized by section 3112 of this title. 

(9) Treatment, care, and services described in chapter 17 of 

this title. 

(10) Prosthetic appliances, eyeglasses, and other corrective 

and assistive devices. 

(11) Services to a veteran’s family as necessary for the effective rehabilitation of such veteran. 

(12) For veterans with the most severe service-connected disabilities who require homebound training or self-employment, 

or both homebound training and self-employment, such license 

fees and essential equipment, supplies, and minimum stocks of 

materials as the Secretary determines to be necessary for such 

a veteran to begin employment and are within the criteria and 

cost limitations that the Secretary shall prescribe in regulations for the furnishing of such fees, equipment, supplies, and 

stocks. 


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(13) Travel and incidental expenses under the terms and 

conditions set forth in section 111 of this title, plus, in the case 

of a veteran who because of such veteran’s disability has transportation expenses in addition to those incurred by persons not 

so disabled, a special transportation allowance to defray such 

additional expenses during rehabilitation, job seeking, and the 

initial employment stage. 

(14) Special services (including services related to blindness 

and deafness) including— 

(A) language training, speech and voice correction, training in ambulation, and one-hand typewriting; 

(B) orientation, adjustment, mobility, reader, interpreter, 

and related services; and 

(C) telecommunications, sensory, and other technical 

aids and devices. 

(15) Services necessary to enable a veteran to achieve maximum independence in daily living. 

(16) Other incidental goods and services determined by the 

Secretary to be necessary to accomplish the purposes of a rehabilitation program in an individual case. 

(b) A rehabilitation program (including individual courses) to be 

pursued by a veteran shall be subject to the approval of the Secretary. To the maximum extent practicable, a course of education or 

training may be pursued by a veteran as part of a rehabilitation 

program under this chapter only if the course is approved for purposes of chapter 30 or 33 of this title. The Secretary may waive the 

requirement under the preceding sentence to the extent the Secretary 

determines appropriate. 

(c)(1) The Secretary shall have the authority to administer this 

chapter by prioritizing the provision of services under this chapter 

based on need, as determined by the Secretary. In evaluating need 

for purposes of this subsection, the Secretary shall consider disability ratings, the severity of employment handicaps, qualification 

for a program of independent living, income, and any other factor 

the Secretary determines appropriate. 

(2) Not later than 90 days before making any changes to the 

prioritization of the provision of services under this chapter as authorized under paragraph (1), the Secretary shall submit to Congress a plan describing such changes. 

* * * * * * * 

§ 3118. Personnel training, development, and qualifications 

(a) The Secretary shall provide a program of ongoing professional 

training and development for Department of Veterans Affairs counseling and rehabilitation personnel engaged in providing rehabilitation services under this chapter. The objective of such training 

shall be to insure that rehabilitation services for disabled veterans 

are provided in accordance with the most advanced knowledge, 

methods, and techniques available for the rehabilitation of handicapped persons. For this purpose, the Secretary may employ the 

services of consultants and may make grants to and contract with 

public or private agencies (including institutions of higher learning) 

to conduct such training and development. 

(b) The Secretary shall coordinate with the Commissioner of the 

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cation øand the Assistant Secretary for Veterans’ Employment in 

the Department of Labor¿ in planning and carrying out personnel 

training in areas of mutual programmatic concern. 

(c) Notwithstanding any other provision of law, the Secretary 

shall establish such qualifications for personnel providing evaluation and rehabilitation services to veterans under this chapter and 

for employees performing the functions described in section 3106(f) 

of this title as the Secretary determines are necessary and appropriate to insure the quality of rehabilitation programs under this 

chapter. In establishing such qualifications, the Secretary shall 

take into account the qualifications established for comparable personnel under the Rehabilitation Act of 1973 (29 U.S.C. ch. 16). 

§ 3119. Rehabilitation research and special projects 

(a) The Secretary shall carry out an ongoing program of activities 

for the purpose of advancing the knowledge, methods, techniques, 

and resources available for use in rehabilitation programs for veterans. For this purpose, the Secretary shall conduct and provide 

support for the development or conduct, or both the development 

and conduct, of— 

(1) studies and research concerning the psychological, educational, employment, social, vocational, industrial, and economic aspects of the rehabilitation of disabled veterans, including new methods of rehabilitation; and 

(2) projects which are designed to increase the resources and 

potential for accomplishing the rehabilitation of disabled veterans. 

(b) For the purpose specified in subsection (a) of this section, the 

Secretary is authorized to make grants to or contract with public 

or nonprofit agencies, including institutions of higher learning. 

(c) The Secretary shall cooperate with the Commissioner of the 

Rehabilitation Services Administration and the Director of the Institute of Handicapped Research in the Department of Education, 

øthe Assistant Secretary for Veterans’ Employment in the Department of Labor,¿ and the Secretary of Health and Human Services 

regarding rehabilitation studies, research, and special projects of 

mutual programmatic concern. 

* * * * * * * 

§ 3121. Veterans’ Advisory Committee on Rehabilitation 

(a)(1) The Secretary shall appoint an advisory committee to be 

known as the Veterans’ Advisory Committee on Rehabilitation 

(hereinafter in this section referred to as the ‘‘Committee’’). 

(2) The members of the Committee shall be appointed by the Secretary from the general public and shall serve for terms to be determined by the Secretary not to exceed three years. Veterans with 

service-connected disabilities shall be appropriately represented in 

the membership of the Committee, and the Committee shall also 

include persons who have distinguished themselves in the public 

and private sectors in the fields of rehabilitation medicine, vocational guidance, vocational rehabilitation, and employment and 

training programs. The Secretary may designate one of the members of the Committee appointed under this paragraph to chair the 

Committee. 


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(3) The Committee shall also include as ex officio members the 

following: (A) one representative from the Veterans Health Administration and one from the Veterans Benefits Administration, (B) 

one representative from the Rehabilitation Services Administration 

of the Department of Education and one from the National Institute for Handicapped Research of the Department of Education, 

and (C) one representative of øthe Assistant Secretary of Labor for 

Veterans’ Employment and Training of the Department of Labor¿ 

the Under Secretary for Veterans Economic Opportunity and Transition. (b) The Secretary shall, on a regular basis, consult with and seek 

the advice of the Committee with respect to the administration of 

veterans’ rehabilitation programs under this title. 

(c) The Committee shall submit to the Secretary an annual report on the rehabilitation programs and activities of the Department of Veterans Affairs and shall submit such other reports and 

recommendations to the Secretary as the Committee determines 

appropriate. The annual report shall include an assessment of the 

rehabilitation needs of veterans and a review of the programs and 

activities of the Department of Veterans Affairs designed to meet 

such needs. The Secretary shall submit with each annual report 

submitted to the Congress pursuant to section 529 of this title a 

copy of all reports and recommendations of the Committee submitted to the Secretary since the previous annual report of the Secretary was submitted to the Congress pursuant to such section. 

* * * * * * * 

CHAPTER 33—POST-9/11 EDUCATIONAL ASSISTANCE 

SUBCHAPTER I—DEFINITIONS 

Sec. 

3301. Definitions. 

* * * * * * * 

SUBCHAPTER III—ADMINISTRATIVE PROVISIONS 

* * * * * * * 

3326. Election to receive educational assistance. 

SUBCHAPTER I—DEFINITIONS 

§ 3301. Definitions 

In this chapter: 

(1) The term ‘‘active duty’’ has the meanings as follows (subject to the limitations specified in sections 3002(6) and 

3311(b)): 

(A) In the case of members of the regular components of 

the Armed Forces, the meaning given such term in section 

101(21)(A). 

(B) In the case of members of the reserve components of 

the Armed Forces, service on active duty under a call or 

order to active duty under section 688, 12301(a), 12301(d), 

12301(g), 12301(h), 12302, or 12304 of title 10 or section 

712 of title 14. 

(C) In the case of a member of the Army National Guard 

of the United States or Air National Guard of the United 


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States, in addition to service described in subparagraph 

(B), full-time service— 

(i) in the National Guard of a State for the purpose 

of organizing, administering, recruiting, instructing, or 

training the National Guard; or 

(ii) in the National Guard under section 502(f) of 

title 32 when authorized by the President or the Secretary of Defense for the purpose of responding to a 

national emergency declared by the President and 

supported by Federal funds. 

(2) The term ‘‘entry level and skill training’’ means the following: 

(A) In the case of members of the Army, Basic Combat 

Training and Advanced Individual Training or One Station 

Unit Training. 

(B) In the case of members of the Navy, Recruit Training 

(or Boot Camp) and Skill Training (or so-called ‘‘A’’ 

School). 

(C) In the case of members of the Air Force, Basic Military Training and Technical Training. 

(D) In the case of members of the Marine Corps, Recruit 

Training and Marine Corps Training (or School of Infantry 

Training). 

(E) In the case of members of the Coast Guard, Basic 

Training and Skill Training (or so-called ‘‘A’’ School). 

(3) The term ‘‘program of education’’ has the meaning given 

such term in section 3002, except to the extent otherwise provided in section 3313. 

(4) The term ‘‘Secretary of Defense’’ means the Secretary of 

Defense, except that the term means the Secretary of Homeland Security with respect to the Coast Guard when it is not 

operating as a service in the Navy. 

SUBCHAPTER II—EDUCATIONAL ASSISTANCE 

§ 3311. Educational assistance for service in the Armed 

Forces commencing on or after September 11, 2001: 

entitlement 

(a) ENTITLEMENT.—Subject to subsections (d) and (e), each individual described in subsection (b) is entitled to educational assistance under this chapter. 

(b) COVERED INDIVIDUALS.—An individual described in this subsection is any individual as follows: 

(1) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 36 months on active duty in the 

Armed Forces (including service on active duty in entry 

level and skill training); and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty; or 

(ii) is discharged or released from active duty as described in subsection (c). 

(2) An individual who— 


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(A) commencing on or after September 11, 2001, serves 

at least 30 continuous days on active duty in the Armed 

Forces; and 

(B) after completion of service described in subparagraph 

(A), is discharged or released from active duty in the 

Armed Forces for a service-connected disability. 

(3) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 30 months, but less than 36 

months, on active duty in the Armed Forces (including 

service on active duty in entry level and skill training); 

and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 36 months; or 

(ii) before completion of service on active duty of an 

aggregate of 36 months, is discharged or released from 

active duty as described in subsection (c). 

(4) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 24 months, but less than 30 

months, on active duty in the Armed Forces (including 

service on active duty in entry level and skill training); 

and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 30 months; or 

(ii) before completion of service on active duty of an 

aggregate of 30 months, is discharged or released from 

active duty as described in subsection (c). 

(5) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 18 months, but less than 24 

months, on active duty in the Armed Forces (excluding 

service on active duty in entry level and skill training); 

and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 24 months; or 

(ii) before completion of service on active duty of an 

aggregate of 24 months, is discharged or released from 

active duty as described in subsection (c). 

(6) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 12 months, but less than 18 

months, on active duty in the Armed Forces (excluding 

service on active duty in entry level and skill training); 

and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 18 months; or 


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(ii) before completion of service on active duty of an 

aggregate of 18 months, is discharged or released from 

active duty as described in subsection (c). 

(7) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 6 months, but less than 12 

months, on active duty in the Armed Forces (excluding 

service on active duty in entry level and skill training); 

and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 12 months; or 

(ii) before completion of service on active duty of an 

aggregate of 12 months, is discharged or released from 

active duty as described in subsection (c). 

(8) An individual who— 

(A) commencing on or after September 11, 2001, serves 

an aggregate of at least 90 days, but less than 6 months, 

on active duty in the Armed Forces (excluding service on 

active duty in entry level and skill training); and 

(B) after completion of service described in subparagraph 

(A)— 

(i) continues on active duty for an aggregate of less 

than 6 months; or 

(ii) before completion of service on active duty of an 

aggregate of 6 months, is discharged or released from 

active duty as described in subsection (c). 

(9) An individual who is the child or spouse of a person who, 

on or after September 11, 2001, dies in line of duty while serving on active duty as a member of the Armed Forces. 

(c) COVERED DISCHARGES AND RELEASES.—A discharge or release 

from active duty of an individual described in this subsection is a 

discharge or release as follows: 

(1) A discharge from active duty in the Armed Forces with 

an honorable discharge. 

(2) A release after service on active duty in the Armed 

Forces characterized by the Secretary concerned as honorable 

service and placement on the retired list, transfer to the Fleet 

Reserve or Fleet Marine Corps Reserve, or placement on the 

temporary disability retired list. 

(3) A release from active duty in the Armed Forces for further service in a reserve component of the Armed Forces after 

service on active duty characterized by the Secretary concerned 

as honorable service. 

(4) A discharge or release from active duty in the Armed 

Forces after service on active duty in the Armed Forces characterized by the Secretary concerned as honorable service for— 

(A) a medical condition which preexisted the service of 

the individual as described in the applicable paragraph of 

subsection (b) and which the Secretary determines is not 

service-connected; 

(B) hardship; or 

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ual’s own willful misconduct but did interfere with the individual’s performance of duty, as determined by the Secretary concerned in accordance with regulations prescribed 

by the Secretary of Defense. 

(d) PROHIBITION ON TREATMENT OF CERTAIN SERVICE AS PERIOD

OF ACTIVE DUTY.—The following periods of service shall not be considered a part of the period of active duty on which an individual’s 

entitlement to educational assistance under this chapter is based: 

(1) A period of service on active duty of an officer pursuant 

to an agreement under section 2107(b) of title 10. 

(2) A period of service on active duty of an officer pursuant 

to an agreement under section 4348, 6959, or 9348 of title 10 

or section 182 of title 14. 

(3) A period of service that is terminated because of a defective enlistment and induction based on— 

(A) the individual’s being a minor for purposes of service 

in the Armed Forces; 

(B) an erroneous enlistment or induction; or 

(C) a defective enlistment agreement. 

(e) TREATMENT OF INDIVIDUALS ENTITLED UNDER MULTIPLE PRO- VISIONS.—In the event an individual entitled to educational assistance under this chapter is entitled by reason of both paragraphs 

(4) and (5) of subsection (b), the individual shall be treated as being 

entitled to educational assistance under this chapter by reason of 

paragraph (5) of subsection (b). 

(f) MARINE GUNNERY SERGEANT JOHN DAVID FRY SCHOLAR- SHIP.— 

(1) IN GENERAL.—Educational assistance payable by reason 

of paragraph (9) of subsection (b) shall be known as the ‘‘Marine Gunnery Sergeant John David Fry scholarship’’. 

(2) LIMITATION.—The entitlement of an individual to assistance under subsection (a) pursuant to paragraph (9) of subsection (b) because the individual was a spouse of a person described in such paragraph shall expire on the earlier of— 

(A) the date that is 15 years after the date on which the 

person died; or 

(B) the date on which the individual remarries. 

(3) ELECTION ON RECEIPT OF CERTAIN BENEFITS.—øA surviving spouse¿ Except as provided in paragraph (4), a surviving spouse entitled to assistance under subsection (a) pursuant to paragraph (9) of subsection (b) who is also entitled to 

educational assistance under chapter 35 of this title may not 

receive assistance under both this section and such chapter, 

but shall make an irrevocable election (in such form and manner as the Secretary may prescribe) under which section or 

chapter to receive educational assistance. 

(4) EXCEPTION FOR CERTAIN ELECTIONS.— 

(A) IN GENERAL.—An election made under paragraph (3) 

by a spouse described in subparagraph (B) may not be 

treated as irrevocable if such election occurred before the 

date of the enactment of this paragraph. 

(B) ELIGIBLE SURVIVING SPOUSE.—A spouse described in 

this subparagraph is an individual— 

(i) who is entitled to assistance under subsection (a) 

pursuant to paragraph (9) of subsection (b); and 


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(ii) who was the spouse of a member of the Armed 

Forces who died during the period beginning on September 11, 2001, and ending on December 31, 2005. 

ø(4)¿ (5) DEFINITION OF CHILD.—For purposes of øthat paragraph¿ paragraph (9) of subsection (b), the term ‘‘child’’ includes a married individual or an individual who is above the 

age of twenty-three years. 

* * * * * * * 

§ 3313. Programs of education leading to a degree pursued 

at institutions of higher learning on more than 

half-time basis 

(a) PAYMENT.—The Secretary shall pay to each individual entitled to educational assistance under this chapter who is pursuing 

an approved program of education (other than a program covered 

by subsections (e) and (f)) the amounts specified in subsection (c) 

to meet the expenses of such individual’s subsistence, tuition, fees, 

and other educational costs for pursuit of such program of education. 

(b) APPROVED PROGRAMS OF EDUCATION.—A program of education is an approved program of education for purposes of this 

chapter if the program of education is approved for purposes of 

chapter 30 (including approval by the State approving agency concerned). 

(c) AMOUNT OF EDUCATIONAL ASSISTANCE.—The amounts payable 

under this subsection for pursuit of an approved program of education leading to a degree at an institution of higher learning (as 

that term is defined in section 3452(f)) are amounts as follows: 

(1) In the case of an individual entitled to educational assistance under this chapter by reason of paragraph (1), (2), or (9) 

of section 3311(b), amounts as follows: 

(A) An amount equal to the following: 

(i) øIn the case of a program of education pursued 

at a public institution of higher learning¿ (I) Subject 

to subclause (II), in the case of a program of education 

pursued at a public institution of higher learning not 

described in clause (ii)(II)(bb), the actual net cost for 

in-State tuition and fees assessed by the institution for 

the program of education after the application of— 

ø(I)¿ (aa) any waiver of, or reduction in, tuition 

and fees; and 

ø(II)¿ (bb) any scholarship, or other Federal, 

State, institutional, or employer-based aid or assistance (other than loans and any funds provided 

under section 401(b) of the Higher Education Act 

of 1965 (20 U.S.C. 1070a)) that is provided directly to the institution and specifically designated 

for the sole purpose of defraying tuition and fees. 

(II) In determining the actual net cost for in-State 

tuition and fees pursuant to subclause (I), the Secretary 

may not pay for tuition and fees relating to flight 

training. 

(ii) øIn the case of a program of education pursued 

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ing¿ (I) In the case of a program of education described 

in subclause (II), the lesser of— 

ø(I)¿ (aa) the actual net cost for tuition and fees 

assessed by the institution for the program of education after the application of— 

ø(aa)¿ (AA) any waiver of, or reduction in, 

tuition and fees; and 

ø(bb)¿ (BB) any scholarship, or other Federal, State, institutional, or employer-based 

aid or assistance (other than loans and any 

funds provided under section 401(b) of the 

Higher Education Act of 1965) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees; or 

ø(II)¿ (bb) the amount equal to— 

ø(aa)¿ (AA) for the academic year beginning on August 1, 2011, $17,500; or 

ø(bb)¿ (BB) for an academic year beginning 

on any subsequent August 1, the amount for 

the previous academic year beginning on August 1 under this subclause, as increased by 

the percentage increase equal to the most recent percentage increase determined under 

section 3015(h). 

(II) A program of education described in this subclause is any of the following: 

(aa) A program of education pursued at a nonpublic or foreign institution of higher learning. 

(bb) A program of education pursued at a public 

institution of higher learning in which flight training is required to earn the degree being pursued 

(including with respect to a dual major, concentration, or other element of such a degree). 

(cc) A program of education pursued at a public 

institution of higher learning in which the public 

institution of higher learning enters into a contract 

or agreement with an entity (other than another 

public institution of higher learning) to provide 

such program of education or a portion of such 

program of education. 

(B) A monthly stipend in an amount as follows: 

(i) Except as provided in clauses (ii) and (iii), for 

each month an individual pursues a program of education on more than a half-time basis, a monthly housing stipend equal to the product of— 

(I) the monthly amount of the basic allowance 

for housing payable under section 403 of title 37 

for a member with dependents in pay grade E-5 

residing in the military housing area that encompasses all or the majority portion of the ZIP code 

area in which is located the institution of higher 

learning at which the individual is enrolled, multiplied by 

(II) the lesser of— 


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(aa) 1.0; or 

(bb) the number of course hours borne by 

the individual in pursuit of the program of 

education, divided by the minimum number of 

course hours required for full-time pursuit of 

the program of education, rounded to the 

nearest multiple of 10. 

(ii) In the case of an individual pursuing a program 

of education at a foreign institution of higher learning 

on more than a half-time basis, for each month the individual pursues the program of education, a monthly 

housing stipend equal to the product of— 

(I) the national average of the monthly amount 

of the basic allowance for housing payable under 

section 403 of title 37 for a member with dependents in pay grade E-5, multiplied by 

(II) the lesser of— 

(aa) 1.0; or 

(bb) the number of course hours borne by 

the individual in pursuit of the program of 

education, divided by the minimum number of 

course hours required for full-time pursuit of 

the program of education, rounded to the 

nearest multiple of 10. 

(iii) In the case of an individual pursuing a program 

of education solely through distance learning on more 

than a half-time basis, a monthly housing stipend 

equal to 50 percent of the amount payable under 

clause (ii) if the individual were otherwise entitled to 

a monthly housing stipend under that clause for pursuit of the program of education. 

(iv) For the first month of each quarter, semester, or 

term, as applicable, of the program of education pursued by the individual, a lump sum amount for books, 

supplies, equipment, and other educational costs with 

respect to such quarter, semester, or term in the 

amount equal to— 

(I) $1,000, multiplied by 

(II) the fraction which is the portion of a complete academic year under the program of education that such quarter, semester, or term constitutes. 

(2) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(3), 

amounts equal to 90 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 

program of education under paragraph (1) rather than this 

paragraph. 

(3) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(4), 

amounts equal to 80 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 


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program of education under paragraph (1) rather than this 

paragraph. 

(4) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(5), 

amounts equal to 70 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 

program of education under paragraph (1) rather than this 

paragraph. 

(5) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(6), 

amounts equal to 60 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 

program of education under paragraph (1) rather than this 

paragraph. 

(6) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(7), 

amounts equal to 50 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 

program of education under paragraph (1) rather than this 

paragraph. 

(7) In the case of an individual entitled to educational assistance under this chapter by reason of section 3311(b)(8), 

amounts equal to 40 percent of the amounts that would be payable to the individual under paragraph (1) for the program of 

education if the individual were entitled to amounts for the 

program of education under paragraph (1) rather than this 

paragraph. 

(d) FREQUENCY OF PAYMENT.— 

(1) QUARTER, SEMESTER, OR TERM PAYMENTS.—Payment of 

the amounts payable under subsection (c)(1)(A), and of similar 

amounts payable under paragraphs (2) through (7) of subsection (c), for pursuit of a program of education shall be made 

for the entire quarter, semester, or term, as applicable, of the 

program of education. 

(2) MONTHLY PAYMENTS.—Payment of the amount payable 

under subsection (c)(1)(B), and of similar amounts payable 

under paragraphs (2) through (7) of subsection (c), for pursuit 

of a program of education shall be made on a monthly basis. 

(3) REGULATIONS.—The Secretary shall prescribe in regulations methods for determining the number of months (including fractions thereof) of entitlement of an individual to educational assistance under this chapter that are chargeable 

under this chapter for an advance payment of amounts under 

paragraphs (1) and (2) for pursuit of a program of education on 

a quarter, semester, term, or other basis. 

(e) PROGRAMS OF EDUCATION PURSUED ON ACTIVE DUTY.— 

(1) IN GENERAL.—Educational assistance is payable under 

this chapter for pursuit of an approved program of education 

leading to a degree while on active duty. 

(2) AMOUNT OF ASSISTANCE.—The amounts of educational assistance payable under this chapter to an individual pursuing 


emcdonald on DSK67QTVN1PROD with HEARING
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a program of education leading to a degree while on active 

duty are as follows: 

(A) Subject to subparagraph (C), an amount equal to the 

lesser of— 

(i) in the case of a program of education pursued at 

a public institution of higher learning, the actual net 

cost for in-State tuition and fees assessed by the institution for the program of education after the application of— 

(I) any waiver of, or reduction in, tuition and 

fees; and 

(II) any scholarship, or other Federal, State, institutional, or employer-based aid or assistance 

(other than loans and any funds provided under 

section 401(b) of the Higher Education Act of 1965 

(20 U.S.C. 1070a)) that is provided directly to the 

institution and specifically designated for the sole 

purpose of defraying tuition and fees; 

(ii) in the case of a program of education pursued at 

a non-public or foreign institution of higher learning, 

the lesser of— 

(I) the actual net cost for tuition and fees assessed by the institution for the program of education after the application of— 

(aa) any waiver of, or reduction in, tuition 

and fees; and 

(bb) any scholarship, or other Federal, 

State, institutional, or employer-based aid or 

assistance (other than loans and any funds 

provided under section 401(b) of the Higher 

Education Act of 1965) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees; or 

(II) the amount equal to— 

(aa) for the academic year beginning on 

August 1, 2011, $17,500; or 

(bb) for an academic year beginning on 

any subsequent August 1, the amount for 

the previous academic year beginning on 

August 1 under this subclause, as increased by the percentage increase equal 

to the most recent percentage increase determined under section 3015(h); or 

(iii) the amount of the charges of the educational institution as elected by the individual in the manner specified 

in section 3014(b)(1).. 

(B) Subject to subparagraph (C), for the first month of 

each quarter, semester, or term, as applicable, of the program of education pursued by the individual, a lump sum 

amount for books, supplies, equipment, and other educational costs with respect to such quarter, semester, or 

term in the amount equal to— 


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(i) $1,000, multiplied by (ii) the fraction of a complete academic year under the program of education 

that such quarter, semester, or term constitutes. 

(C) In the case of an individual entitled to educational 

assistance by reason of paragraphs (3) through (8) of section 3311(b), the amounts payable to the individual pursuant to subparagraphs (A)(i), (A)(ii), and (B) shall be the 

amounts otherwise determined pursuant to such subparagraphs multiplied by the same percentage applicable to the 

monthly amounts payable to the individual under paragraphs (2) through (7) of subsection (c). 

(3) QUARTER, SEMESTER, OR TERM PAYMENTS.—Payment of 

the amount payable under paragraph (2) for pursuit of a program of education shall be made for the entire quarter, semester, or term, as applicable, of the program of education. 

(4) MONTHLY PAYMENTS.—For each month (as determined 

pursuant to the methods prescribed under subsection (d)(3)) for 

which amounts are paid an individual under this subsection, 

the entitlement of the individual to educational assistance 

under this chapter shall be charged at the rate of one month 

for each such month. 

(f) PROGRAMS OF EDUCATION PURSUED ON HALF-TIME BASIS OR

LESS.— 

(1) IN GENERAL.—Educational assistance is payable under 

this chapter for pursuit of an approved program of education 

on half-time basis or less whether a program of education pursued on active duty, a program of education leading to a degree, or a program of education other than a program of education leading to a degree. 

(2) AMOUNT OF ASSISTANCE.—The educational assistance 

payable under this chapter to an individual pursuing a program of education covered by this subsection on half-time basis 

or less is the amounts as follows: 

(A) The amount equal to the lesser of— 

(i) the actual net cost for in-State tuition and fees 

assessed by the institution of higher learning for the 

program of education after the application of— 

(I) any waiver of, or reduction in, tuition and 

fees; and 

(II) any scholarship, or other Federal, State, institutional, or employer-based aid or assistance 

(other than loans and any funds provided under 

section 401(b) of the Higher Education Act of 1965 

(20 U.S.C. 1070a)) that is provided directly to the 

institution and specifically designated for the sole 

purpose of defraying tuition and fees; or 

(ii) the maximum amount that would be payable to 

the individual for the program of education under 

paragraph (1)(A) of subsection (c), or under the provisions of paragraphs (2) through (7) of subsection (c) 

applicable to the individual, for the program of education if the individual were entitled to amounts for 

the program of education under subsection (c) rather 

than this subsection. 


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(B) A stipend in an amount equal to the amount of the 

appropriately reduced amount of the lump sum amount for 

books, supplies, equipment, and other educational costs 

otherwise payable to the individual under subsection (c). 

(3) QUARTER, TERM, OR SEMESTER PAYMENTS.—Payment of 

the amounts payable to an individual under paragraph (2) for 

pursuit of a program of education on half-time basis or less 

shall be made for the entire quarter, semester, or term, as applicable, of the program of education. 

(4) MONTHLY PAYMENTS.—For each month (as determined 

pursuant to the methods prescribed under subsection (d)(3)) for 

which amounts are paid an individual under this subsection, 

the entitlement of the individual to educational assistance 

under this chapter shall be charged at a percentage of a month 

equal to— 

(A) the number of course hours borne by the individual 

in pursuit of the program of education involved, divided by 

(B) the number of course hours for full-time pursuit of 

such program of education. 

(g) PROGRAMS OF EDUCATION OTHER THAN PROGRAMS OF EDU- CATION LEADING TO A DEGREE.— (1) IN GENERAL.—Educational assistance is payable under 

this chapter for pursuit of an approved program of education 

other than a program of education leading to a degree at an 

institution other than an institution of higher learning (as that 

term is defined in section 3452(f)). 

(2) PURSUIT ON HALF-TIME BASIS OR LESS.—The payment of 

educational assistance under this chapter for pursuit of a program of education otherwise described in paragraph (1) on a 

half-time basis or less is governed by subsection (f). 

(3) AMOUNT OF ASSISTANCE.—The amounts of educational assistance payable under this chapter to an individual entitled to 

educational assistance under this chapter who is pursuing an 

approved program of education covered by this subsection are 

as follows: 

(A) In the case of an individual enrolled in a program of 

education (other than a program described in subparagraphs (B) through (D)) in pursuit of a certificate or other 

non-college degree, the following: 

(i) Subject to clause (iv), an amount equal to the 

lesser of— 

(I) the actual net cost for in-State tuition and 

fees assessed by the institution concerned for the 

program of education after the application of— 

(aa) any waiver of, or reduction in, tuition 

and fees; and 

(bb) any scholarship, or other Federal, 

State, institutional, or employer-based aid or 

assistance (other than loans and any funds 

provided under section 401(b) of the Higher 

Education Act of 1965 (20 U.S.C. 1070a)) that 

is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees; or 

(II) the amount equal to— 


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(aa) for the academic year beginning on August 1, 2011, $17,500; or 

(bb) for an academic year beginning on any 

subsequent August 1, the amount for the previous academic year beginning on August 1 

under this subclause, as increased by the percentage increase equal to the most recent percentage increase determined under section 

3015(h). 

(ii) Except in the case of an individual pursuing a 

program of education on a half-time or less basis and 

subject to clause (iv), a monthly housing stipend equal 

to the product— 

(I) of— 

(aa) in the case of an individual pursuing 

resident training, the monthly amount of the 

basic allowance for housing payable under 

section 403 of title 37 for a member with dependents in pay grade E-5 residing in the 

military housing area that encompasses all or 

the majority portion of the ZIP code area in 

which is located the institution at which the 

individual is enrolled; or 

(bb) in the case of an individual pursuing a 

program of education through distance learning, a monthly amount equal to 50 percent of 

the amount payable under item (aa), multiplied by (II) the lesser of— 

(aa) 1.0; or 

(bb) the number of course hours borne by 

the individual in pursuit of the program of 

education involved, divided by the minimum 

number of course hours required for full-time 

pursuit of such program of education, rounded 

to the nearest multiple of 10. 

(iii) Subject to clause (iv), a monthly stipend in an 

amount equal to $83 for each month (or pro rata 

amount for a partial month) of training pursued for 

books supplies, equipment, and other educational 

costs. 

(iv) In the case of an individual entitled to educational assistance by reason of paragraphs (3) 

through (8) of section 3311(b), the amounts payable 

pursuant to clauses (i), (ii), and (iii) shall be the 

amounts otherwise determined pursuant to such 

clauses multiplied by the same percentage applicable 

to the monthly amounts payable to the individual 

under paragraphs (2) through (7) of subsection (c). 

(B) In the case of an individual pursuing a full-time program of apprenticeship or other on-job training, amounts 

as follows: 

(i) Subject to clauses (iii) and (iv), for each month 

the individual pursues the program of education, a 

monthly housing stipend equal to— 


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(I) during the first six-month period of the program, the monthly amount of the basic allowance 

for housing payable under section 403 of title 37 

for a member with dependents in pay grade E-5 

residing in the military housing area that encompasses all or the majority portion of the ZIP code 

area in which is located the employer at which the 

individual pursues such program; 

(II) during the second six-month period of the 

program, 80 percent of the monthly amount of the 

basic allowance for housing payable as described 

in subclause (I); 

(III) during the third six-month period of the 

program, 60 percent of the monthly amount of the 

basic allowance for housing payable as described 

in subclause (I); 

(IV) during the fourth six-month period of such 

program, 40 percent of the monthly amount of the 

basic allowance for housing payable as described 

in subclause (I); and 

(V) during any month after the first 24 months 

of such program, 20 percent of the monthly 

amount of the basic allowance for housing payable 

as described in subclause (I). 

(ii) Subject to clauses (iii) and (iv), a monthly sti- pend in an amount equal to $83 for each month (or 

pro rata amount for each partial month) of training 

pursued for books supplies, equipment, and other educational costs. 

(iii) In the case of an individual entitled to educational assistance by reason of paragraphs (3) 

through (8) of sections 3311(b), the amounts payable 

pursuant to clauses (i) and (ii) shall be the amounts 

otherwise determined pursuant to such clauses multiplied by the same percentage applicable to the monthly amounts payable to the individual under paragraphs (2) through (7) of subsection (c). 

(iv) In any month in which an individual pursuing 

a program of education consisting of a program of apprenticeship or other on-job training fails to complete 

120 hours of training, the amount of monthly educational assistance allowance payable under clauses (i) 

and (iii) to the individual shall be limited to the same 

proportion of the applicable rate determined under 

this subparagraph as the number of hours worked 

during such month, rounded to the nearest eight 

hours, bears to 120 hours. 

(C) In the case of an individual enrolled in a program of 

education consisting of flight training (regardless of the institution providing such program of education), an amount 

equal to— 

(i) the lesser of— 

(I) the actual net cost for in-State tuition and 

fees assessed by the institution concerned for the 

program of education after the application of— 


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(aa) any waiver of, or reduction in, tuition 

and fees; and 

(bb) any scholarship, or other Federal, 

State, institutional, or employer-based aid or 

assistance (other than loans and any funds 

provided under section 401(b) of the Higher 

Education Act of 1965) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees; or 

(II) the amount equal to— 

(aa) for the academic year beginning on Au- gust 1, 2011, $10,000; or 

(bb) for an academic year beginning on any 

subsequent August 1, the amount for the previous academic year beginning on August 1 

under this subclause, as increased by the percentage increase equal to the most recent percentage increase determined under section 

3015(h), multiplied by— 

(ii) either— 

(I) in the case of an individual entitled to educational assistance by reason of paragraphs (1), 

(2), or (9) of section 3311(b), 100 percent; or 

(II) in the case of an individual entitled to educational assistance by reason of paragraphs (3) 

through (8) of section 3311(b), the same percentage as would otherwise apply to the monthly 

amounts payable to the individual under paragraphs (2) through (7) of subsection (c). 

(D) In the case of an individual enrolled in a program of 

education that is pursued exclusively by correspondence 

(regardless of the institution providing such program of 

education), an amount equal to— 

(i) the lesser of— 

(I) the actual net cost for tuition and fees assessed by the institution concerned for the program of education after the application of— 

(aa) any waiver of, or reduction in, tuition 

and fees; and 

(bb) any scholarship, or other Federal, 

State, institutional, or employer-based aid or 

assistance (other than loans and any funds 

provided under section 401(b) of the Higher 

Education Act of 1965) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees. 

(II) the amount equal to— 

(aa) for the academic year beginning on August 1, 2011, $8,500; or 

(bb) for an academic year beginning on any 

subsequent August 1, the amount for the previous academic year beginning on August 1 

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centage increase equal to the most recent percentage increase determined under section 

3015(h), multiplied by— 

(ii) either— 

(I) in the case of an individual entitled to educational assistance by reason of paragraphs (1), 

(2), or (9) of section 3311(b), 100 percent; or 

(II) in the case of an individual entitled to educational assistance by reason of paragraphs (3) 

through (8) of section 3311(b), the same percentage as would otherwise apply to the monthly 

amounts payable to the individual under paragraphs (2) through (7) of subsection (c). 

(4) FREQUENCY OF PAYMENT.— 

(A) QUARTER, SEMESTER, OR TERM PAYMENTS.—Payment 

of the amounts payable under paragraph (3)(A)(i) for pursuit of a program of education shall be made for the entire 

quarter, semester, or term, as applicable, of the program 

of education. 

(B) MONTHLY PAYMENTS.—Payment of the amounts payable under paragraphs (3)(A)(ii) and (3)(B)(i) for pursuit of 

a program of education shall be made on a monthly basis. 

(C) LUMP SUM PAYMENTS.— (i) Payment for the amount payable under paragraphs (3)(A)(iii) and (3)(B)(ii) shall be paid to the individual for the first month of each quarter, semester, 

or term, as applicable, of the program education pursued by the individual. 

(ii) Payment of the amount payable under paragraph (3)(C) for pursuit of a program of education 

shall be made upon receipt of certification for training 

completed by the individual and serviced by the training facility. 

(D) QUARTERLY PAYMENTS.—Payment of the amounts 

payable under paragraph (3)(D) for pursuit of a program 

of education shall be made quarterly on a pro rata basis 

for the lessons completed by the individual and serviced by 

the institution. 

(5) CHARGE AGAINST ENTITLEMENT FOR CERTIFICATE AND

OTHER NON-COLLEGE DEGREE PROGRAMS.— 

(A) IN GENERAL.—In the case of amounts paid under 

paragraph (3)(A)(i) for pursuit of a program of education, 

the charge against entitlement to educational assistance 

under this chapter of the individual for whom such payment is made shall be one month for each of— 

(i) the amount so paid, divided by (ii) subject to subparagraph (B), the amount equal to one-twelfth of the 

amount applicable in the academic year in which the 

payment is made under paragraph (3)(A)(i)(II). 

(B) PRO RATA ADJUSTMENT BASED ON CERTAIN ELIGI- BILITY.—If the amount otherwise payable with respect to 

an individual under paragraph (3)(A)(i) is subject to a percentage adjustment under paragraph (3)(A)(iv), the 

amount applicable with respect to the individual under 

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mined pursuant to such subparagraph subject to a percentage adjustment equal to the percentage adjustment applicable with respect to the individual under paragraph 

(3)(A)(iv). 

(h) PAYMENT OF ESTABLISHED CHARGES TO EDUCATIONAL INSTI- TUTIONS.—Amounts payable under subsections (c)(1)(A) (and of 

similar amounts payable under paragraphs (2) through (7) of subsection (c)), (e)(2), and (f)(2)(A), and under subparagraphs (A)(i), 

(C), and (D) of subsection (g)(3), shall be paid directly to the educational institution concerned. 

(i) DETERMINATION OF HOUSING STIPEND PAYMENTS FOR ACA- DEMIC YEARS.—Any monthly housing stipend payable under this 

section during the academic year beginning on August 1 of a calendar year shall be determined utilizing rates for basic allowances 

for housing payable under section 403 of title 37 in effect as of January 1 of such calendar year. 

* * * * * * * 

§ 3317. Public-private contributions for additional educational assistance 

(a) ESTABLISHMENT OF PROGRAM.—In instances where the educational assistance provided pursuant to section 3313(c)(1)(A) does 

not cover the full cost of established charges (as specified in section 

3313), the Secretary shall carry out a program under which colleges and universities can, voluntarily, enter into an agreement 

with the Secretary to cover a portion of those established charges 

not otherwise covered under section 3313(c)(1)(A), which contributions shall be matched by equivalent contributions toward such 

costs by the Secretary. The program shall only apply to covered individuals described in øparagraphs (1) and (2) of section 3311(b)¿ 

paragraphs (1), (2), and (9) of section 3311(b) of this title. (b) DESIGNATION OF PROGRAM.—The program under this section 

shall be known as the ‘‘Yellow Ribbon G.I. Education Enhancement 

Program’’. 

(c) AGREEMENTS.—The Secretary shall enter into an agreement 

with each college or university seeking to participate in the program under this section. Each agreement shall specify the following: 

(1) The manner (whether by direct grant, scholarship, or otherwise) of the contributions to be made by the college or university concerned. 

(2) The maximum amount of the contribution to be made by 

the college or university concerned with respect to any particular individual in any given academic year. 

(3) The maximum number of individuals for whom the college or university concerned will make contributions in any 

given academic year. 

(4) Such other matters as the Secretary and the college or 

university concerned jointly consider appropriate. 

(d) MATCHING CONTRIBUTIONS.— (1) IN GENERAL.—In instances where the educational assistance provided an individual under section 3313(c)(1)(A) does 

not cover the full cost of tuition and mandatory fees at a college or university, the Secretary shall provide up to 50 percent 

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lege or university voluntarily enters into an agreement with 

the Secretary to match an equal percentage of any of the remaining costs for such tuition and fees. 

(2) USE OF APPROPRIATED FUNDS.—Amounts available to the 

Secretary under section 3324(b) for payment of the costs of this 

chapter shall be available to the Secretary for purposes of 

paragraph (1). 

(e) OUTREACH.—The Secretary shall make available on the Internet website of the Department available to the public a current list 

of the colleges and universities participating in the program under 

this section. The list shall specify, for each college or university so 

listed, appropriate information on the agreement between the Secretary and such college or university under subsection (c). 

* * * * * * * 

§ 3319. Authority to transfer unused education benefits to 

family members 

(a) IN GENERAL.—(1) Subject to the provisions of this section, the 

Secretary concerned may permit an individual described in subsection (b) who is entitled to educational assistance under this 

chapter to elect to transfer to one or more of the dependents specified in subsection (c) a portion of such individual’s entitlement to 

such assistance, subject to the limitation under subsection (d). 

(2) The purpose of the authority in paragraph (1) is to promote 

recruitment and retention in the uniformed services. The Secretary 

concerned may exercise the authority for that purpose when authorized by the Secretary of Defense in the national security interests of the United States. 

(b) ELIGIBLE INDIVIDUALS.—An individual referred to in subsection (a) is any member of the uniformed services who, at the 

time of the approval of the individual’s request to transfer entitlement to educational assistance under this section, has completed at 

least— 

(1) øsix years¿ ten years of service in the øarmed forces¿ 

Armed Forces and enters into an agreement to serve at least 

øfour more years¿ two more years as a member of the uniformed services; or 

(2) the years of service as determined in regulations pursuant to subsection (j). 

(c) ELIGIBLE DEPENDENTS.—An individual approved to transfer 

an entitlement to educational assistance under this section may 

transfer the individual’s entitlement as follows: 

(1) To the individual’s spouse. 

(2) To one or more of the individual’s children. 

(3) To a combination of the individuals referred to in paragraphs (1) and (2). 

(d) LIMITATION ON MONTHS OF TRANSFER.—The total number of 

months of entitlement transferred by a individual under this section may not exceed 36 months. The Secretary of Defense may prescribe regulations that would limit the months of entitlement that 

may be transferred under this section to no less than 18 months. 

(e) DESIGNATION OF TRANSFEREE.—An individual transferring an 

entitlement to educational assistance under this section shall— 

(1) designate the dependent or dependents to whom such entitlement is being transferred; 


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(2) designate the number of months of such entitlement to be 

transferred to each such dependent; and 

(3) specify the period for which the transfer shall be effective 

for each dependent designated under paragraph (1). 

(f) TIME FOR TRANSFER; REVOCATION AND MODIFICATION.— 

(1) TIME FOR TRANSFER.—Subject to the time limitation for 

use of entitlement under section 3321 an individual approved 

to transfer entitlement to educational assistance under this 

section may transfer such entitlement only while serving as a 

member of the øarmed forces¿ Armed Forces when the transfer 

is executed. 

(2) MODIFICATION OR REVOCATION.— 

(A) IN GENERAL.—An individual transferring entitlement 

under this section may modify or revoke at any time the 

transfer of any unused portion of the entitlement so transferred. 

(B) NOTICE.—The modification or revocation of the 

transfer of entitlement under this paragraph shall be 

made by the submittal of written notice of the action to 

both the Secretary concerned and the Secretary of Veterans Affairs. 

(3) PROHIBITION ON TREATMENT OF TRANSFERRED ENTITLEMENT AS MARITAL PROPERTY.—Entitlement transferred under 

this section may not be treated as marital property, or the 

asset of a marital estate, subject to division in a divorce or 

other civil proceeding. 

(g) COMMENCEMENT OF USE.—A dependent to whom entitlement 

to educational assistance is transferred under this section may not 

commence the use of the transferred entitlement until— 

(1) in the case of entitlement transferred to a spouse, the 

completion by the individual making the transfer of at least— 

(A) øsix years¿ ten years of service in the øarmed forces¿ 

Armed Forces; or 

(B) the years of service as determined in regulations 

pursuant to subsection (j); or 

(2) in the case of entitlement transferred to a child, both— 

(A) the completion by the individual making the transfer 

of at least— 

(i) ten years of service in the øarmed forces¿ Armed 

Forces; or 

(ii) the years of service as determined in regulations 

pursuant to subsection (j); and 

(B) either— 

(i) the completion by the child of the requirements 

of a secondary school diploma (or equivalency certificate); or 

(ii) the attainment by the child of 18 years of age. 

(h) ADDITIONAL ADMINISTRATIVE MATTERS.— 

(1) USE.—The use of any entitlement to educational assistance transferred under this section shall be charged against 

the entitlement of the individual making the transfer at the 

rate of one month for each month of transferred entitlement 

that is used. 


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(2) NATURE OF TRANSFERRED ENTITLEMENT.—Except as provided under subsection (e)(2) and subject to paragraphs (5) and 

(6)— 

(A) in the case of entitlement transferred to a spouse 

under this section, the spouse is entitled to educational assistance under this chapter in the same manner as the individual from whom the entitlement was transferred; or 

(B) in the case of entitlement transferred to a child 

under this section, the child is entitled to educational assistance under this chapter in the same manner as the individual from whom the entitlement was transferred as if 

the individual were not on active duty. 

(3) RATE OF PAYMENT.—The monthly rate of educational assistance payable to a dependent to whom entitlement referred 

to in paragraph (2) is transferred under this section shall be 

payable— 

(A) in the case of a spouse, at the same rate as such entitlement would otherwise be payable under this chapter to 

the individual making the transfer; or 

(B) in the case of a child, at the same rate as such entitlement would otherwise be payable under this chapter to 

the individual making the transfer as if the individual 

were not on active duty, except that the amount of the 

monthly stipend described in subsection (c)(1)(B) or 

(g)(3)(A)(ii) of section 3313, as the case may be, shall be 

payable in an amount equal to 50 percent of the amount of 

such stipend that would otherwise be payable under this 

chapter to the individual making the transfer. 

(4) DEATH OF TRANSFEROR.—The death of an individual 

transferring an entitlement under this section shall not affect 

the use of the entitlement by the dependent to whom the entitlement is transferred. 

(5) LIMITATION ON AGE OF USE BY CHILD TRANSFEREES.— 

(A) IN GENERAL.—A child to whom entitlement is transferred under this section may use the benefits transferred 

without regard to the 15-year delimiting date specified in 

section 3321, but may not, except as provided in subparagraph (B), use any benefits so transferred after attaining 

the age of 26 years. 

(B) PRIMARY CAREGIVERS OF SERIOUSLY INJURED

MEMBERS OF THE ARMED FORCES AND VETERANS.— 

(i) IN GENERAL.—Subject to clause (ii), in the 

case of a child who, before attaining the age of 26 

years, is prevented from pursuing a chosen program of education by reason of acting as the primary provider of personal care services for a veteran or member of the Armed Forces under section 1720G(a), the child may use the benefits beginning on the date specified in clause (iii) for a 

period whose length is specified in clause (iv). 

(ii) INAPPLICABILITY FOR REVOCATION.—Clause 

(i) shall not apply with respect to the period of an 

individual as a primary provider of personal care 

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tion of the individual’s designation as such a primary provider under section 1720G(a)(7)(D). 

(iii) DATE FOR COMMENCEMENT OF USE.—The 

date specified in this clause for the beginning of 

the use of benefits by a child under clause (i) is 

the later of— 

(I) the date on which the child ceases acting 

as the primary provider of personal care services for the veteran or member concerned as 

described in clause (i); 

(II) the date on which it is reasonably feasible, as determined under regulations prescribed by the Secretary, for the child to initiate or resume the use of benefits; or 

(III) the date on which the child attains the 

age of 26 years. 

(iv) LENGTH OF USE.—The length of the period 

specified in this clause for the use of benefits by 

a child under clause (i) is the length equal to the 

length of the period that— 

(I) begins on the date on which the child begins acting as the primary provider of personal care services for the veteran or member 

concerned as described in clause (i); and 

(II) ends on the later of— 

(aa) the date on which the child ceases 

acting as the primary provider of personal 

care services for the veteran or member 

as described in clause (i); or 

(bb) the date on which it is reasonably 

feasible, as so determined, for the child to 

initiate or resume the use of benefits. 

(6) SCOPE OF USE BY TRANSFEREES.—The purposes for which 

a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and 

completion of the requirements of a secondary school diploma 

(or equivalency certificate). 

(7) ADDITIONAL ADMINISTRATIVE PROVISIONS.—The administrative provisions of this chapter shall apply to the use of entitlement transferred under this section, except that the dependent to whom the entitlement is transferred shall be treated as 

the eligible individual for purposes of such provisions. 

(i) OVERPAYMENT.— 

(1) JOINT AND SEVERAL LIABILITY.—In the event of an overpayment of educational assistance with respect to a dependent 

to whom entitlement is transferred under this section, the dependent and the individual making the transfer shall be jointly 

and severally liable to the United States for the amount of the 

overpayment for purposes of section 3685. 

(2) FAILURE TO COMPLETE SERVICE AGREEMENT.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), if an individual transferring entitlement under this 

section fails to complete the service agreed to by the individual under subsection (b)(1) in accordance with the 

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section, the amount of any transferred entitlement under 

this section that is used by a dependent of the individual 

as of the date of such failure shall be treated as an overpayment of educational assistance under paragraph (1). 

(B) EXCEPTION.—Subparagraph (A) shall not apply in 

the case of an individual who fails to complete service 

agreed to by the individual— 

(i) by reason of the death of the individual; or 

(ii) for a reason referred to in section 3311(c)(4). 

(j) REGULATIONS.—(1) The Secretary of Defense, in coordination 

with the Secretary of Veterans Affairs, shall prescribe regulations 

for purposes of this section. 

(2) Such regulations shall specify— 

(A) the manner of authorizing the transfer of entitlements 

under this section; 

(B) the eligibility criteria in accordance with subsection (b); 

and 

(C) the manner and effect of an election to modify or revoke 

a transfer of entitlement under subsection (f)(2). 

SUBCHAPTER III—ADMINISTRATIVE PROVISIONS 

* * * * * * * 

§ 3326. Election to receive educational assistance 

(a) INDIVIDUALS ELIGIBLE TO ELECT PARTICIPATION IN POST-9/11 

EDUCATIONAL ASSISTANCE.—An individual may elect to receive educational assistance under this chapter if such individual— 

(1) as of August 1, 2009— 

(A) is entitled to basic educational assistance under chapter 30 of the title and has used, but retains unused, entitlement under that chapter; 

(B) is entitled to educational assistance under chapter 

107, 1606, or 1607 of title 10 and has used, but retains unused, entitlement under the applicable chapter; 

(C) is entitled to basic educational assistance under chapter 30 of this title but has not used any entitlement under 

that chapter; 

(D) is entitled to educational assistance under chapter 

107, 1606, or 1607 of title 10 but has not used any entitlement under such chapter; 

(E) is a member of the Armed Forces who is eligible for 

receipt of basic educational assistance under chapter 30 

this title and is making contributions toward such assistance under section 3011(b) or 3012(c) of this title; or 

(F) is a member of the Armed Forces who is not entitled 

to basic educational assistance under chapter 30 of this 

title by reason of an election under section 3011(c)(1) or 

3012(d)(1) of this title; and 

(2) as of the date of the individual’s election under this paragraph, meets the requirements for entitlement to educational assistance under this chapter. 

(b) CESSATION OF CONTRIBUTIONS TOWARD GI BILL.—Effective as 

of the first month beginning on or after the date of an election under 

subsection (a) of an individual described by paragraph (1)(E) of that 

subsection, the obligation of the individual to make contributions 


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under section 3011(b) or 3012(c) of this title, as applicable, shall 

cease, and the requirements of such section shall be deemed to be 

no longer applicable to the individual. 

(c) REVOCATION OF REMAINING TRANSFERRED ENTITLEMENT.— (1) ELECTION TO REVOKE.—If, on the date an individual described in paragraph (1)(A) or (1)(C) of subsection (a) makes an 

election under that subsection, a transfer of the entitlement of 

the individual to basic educational assistance under section 

3020 of this title is in effect and a number of months of the entitlement so transferred remain unutilized, the individual may 

elect to revoke all or a portion of the entitlement so transferred 

that remains unutilized. 

(2) AVAILABILITY OF REVOKED ENTITLEMENT.—Any entitlement revoked by an individual under this paragraph shall no 

longer be available to the dependent to whom transferred, but 

shall be available to the individual instead for educational assistance under chapter 33 of this title in accordance with the 

provisions of this section. 

(3) AVAILABILITY OF UNREVOKED ENTITLEMENT.—Any entitlement described in paragraph (1) that is not revoked by an individual in accordance with that paragraph shall remain available to the dependent or dependents concerned in accordance 

with the current transfer of such entitlement under section 3020 

of this title. 

(d) POST-9/11 EDUCATIONAL ASSISTANCE.— (1) IN GENERAL.—Subject to paragraph (2) and except as provided in subsection (e), an individual making an election under 

subsection (a) shall be entitled to educational assistance under 

this chapter in accordance with the provisions of this chapter, 

instead of basic educational assistance under chapter 30 this 

title, or educational assistance under chapter 107, 1606, or 

1607 of title 10, as applicable. 

(2) LIMITATION ON ENTITLEMENT FOR CERTAIN INDIVIDUALS.— In the case of an individual making an election under subsection (a) who is described by paragraph (1)(A) of that subsection, the number of months of entitlement of the individual 

to educational assistance under this chapter 33 shall be the 

number of months equal to— 

(A) the number of months of unused entitlement of the individual under chapter 30 of this title, as of the date of the 

election, plus 

(B) the number of months, if any, of entitlement revoked 

by the individual under subsection (c)(1). 

(e) CONTINUING ENTITLEMENT TO EDUCATIONAL ASSISTANCE NOT

AVAILABLE UNDER 9/11 ASSISTANCE PROGRAM.— 

(1) IN GENERAL.—In the event educational assistance to which 

an individual making an election under subsection (a) would be 

entitled under chapter 30 of this title, or chapter 107, 1606, or 

1607 of title 10, as applicable, is not authorized to be available 

to the individual under the provisions of this chapter the individual shall remain entitled to such educational assistance in 

accordance with the provisions of the applicable chapter. 

(2) CHARGE FOR USE OF ENTITLEMENT.—The utilization by an 

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sistance under this chapter at the rate of one month of entitlement under this chapter for each month of entitlement utilized 

by the individual under paragraph (1) (as determined as if 

such entitlement were utilized under the provisions of chapter 

30 of this title, or chapter 107, 1606, or 1607 of title 10, as applicable). 

(f) ADDITIONAL POST-9/11 ASSISTANCE FOR MEMBERS HAVING

MADE CONTRIBUTIONS TOWARD GI BILL.— (1) ADDITIONAL ASSISTANCE.—In the case of an individual 

making an election under subsection (a) who is described by 

subparagraph (A), (C), or (E) of paragraph (1) of that subsection, the amount of educational assistance payable to the individual under this chapter 33 as a monthly stipend payable 

under paragraph (1)(B) of section 3313(c) of this title, or under 

paragraphs (2) through (7) of that section (as applicable), shall 

be the amount otherwise payable as a monthly stipend under 

the applicable paragraph increased by the amount equal to— 

(A) the total amount of contributions toward basic educational assistance made by the individual under section 

3011(b) or 3012(c) of this title, as of the date of the election, 

multiplied by 

(B) the fraction— 

(i) the numerator of which is— 

(I) the number of months of entitlement to basic 

educational assistance under chapter 30 of this 

title remaining to the individual at the time of the 

election; plus 

(II) the number of months, if any, of entitlement 

under such chapter 30 revoked by the individual 

under subsection (c)(1); and 

(ii) the denominator of which is 36 months. 

(2) MONTHS OF REMAINING ENTITLEMENT FOR CERTAIN INDIVIDUALS.—In the case of an individual covered by paragraph 

(1) who is described by subsection (a)(1)(E), the number of 

months of entitlement to basic educational assistance remaining 

to the individual for purposes of paragraph (1)(B)(i)(II) shall be 

36 months. 

(3) TIMING OF PAYMENT.—The amount payable with respect to 

an individual under paragraph (1) shall be paid to the individual together with the last payment of the monthly stipend 

payable to the individual under paragraph (1)(B) of section 

3313(c) of this title, or under subsections (b) through (g) of that 

section (as applicable), before the exhaustion of the individual’s 

entitlement to educational assistance under this chapter. 

(g) CONTINUING ENTITLEMENT TO ADDITIONAL ASSISTANCE FOR

CRITICAL SKILLS OR SPECIALITY AND ADDITIONAL SERVICE.—An individual making an election under subsection (a)(1) who, at the 

time of the election, is entitled to increased educational assistance 

under section 3015(d) of this title, or section 16131(i) of title 10, or 

supplemental educational assistance under subchapter III of chapter 30 of this title, shall remain entitled to such increased educational assistance or supplemental educational assistance in the 

utilization of entitlement to educational assistance under this chapter, in an amount equal to the quarter, semester, or term, as applicable, equivalent of the monthly amount of such increased eduVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00147 Fmt 6659 Sfmt 6603 E:\HR\OC\HR358.XXX HR358

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cational assistance or supplemental educational assistance payable 

with respect to the individual at the time of the election. 

(h) ALTERNATIVE ELECTION BY SECRETARY.— (1) IN GENERAL.—In the case of an individual who, on or 

after January 1, 2016, submits to the Secretary an election 

under this section that the Secretary determines is clearly 

against the interests of the individual, or who fails to make an 

election under this section, the Secretary may make an alternative election on behalf of the individual that the Secretary determines is in the best interests of the individual. 

(2) NOTICE.—If the Secretary makes an election on behalf of 

an individual under this subsection, the Secretary shall notify 

the individual by not later than seven days after making such 

election and shall provide the individual with a 30-day period, 

beginning on the date of the individual’s receipt of such notice, 

during which the individual may modify or revoke the election 

made by the Secretary on the individual’s behalf. The Secretary 

shall include, as part of such notice, a clear statement of why 

the alternative election made by the Secretary is in the best interests of the individual as compared to the election submitted 

by the individual. The Secretary shall provide the notice required under this paragraph by electronic means whenever possible. 

(i) IRREVOCABILITY OF ELECTIONS.—An election under subsection 

(a) or (c)(1) is irrevocable. 

* * * * * * * 

CHAPTER 34—VETERANS’ EDUCATIONAL ASSISTANCE 

* * * * * * * 

SUBCHAPTER IV—PAYMENTS TO ELIGIBLE VETERANS; 

VETERAN-STUDENT SERVICES 

* * * * * * * 

§ 3485. Work-study allowance 

(a)(1) Individuals utilized under the authority of subsection (b) 

shall be paid an additional educational assistance allowance (hereinafter in this section referred to as ‘‘work-study allowance’’). Such 

allowance shall be paid in return for an individual’s entering into 

an agreement described in paragraph (3). 

(2) Such work-study allowance shall be paid in an amount equal 

to the product of— 

(A) the applicable hourly minimum wage; and 

(B) the number of hours worked during the applicable period. 

(3) An agreement described in this paragraph is an agreement of 

an individual to perform services, during or between periods of enrollment, aggregating not more than a number of hours equal to 25 

times the number of weeks in the semester or other applicable enrollment period, required in connection with a qualifying workstudy activity. 

(4) For the purposes of this section, the term ‘‘qualifying workstudy activity’’ means any of the following: 

(A) The outreach services program under chapter 63 of this 

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ployee or, during the period preceding øJune 30, 2013¿ June 

30, 2013, or the period beginning on June 30, 2016, and ending 

on June 30, 2021, outreach services to servicemembers and veterans furnished by employees of a State approving agency. 

(B) The preparation and processing of necessary papers and 

other documents at educational institutions or regional offices 

or facilities of the Department. 

(C) The provision of hospital and domiciliary care and medical treatment under chapter 17 of this title, including, during 

the period preceding øJune 30, 2013¿ June 30, 2013, or the period beginning on June 30, 2016, and ending on June 30, 2021, the provision of such care to veterans in a State home for 

which payment is made under section 1741 of this title. 

(D) Any other activity of the Department as the Secretary 

determines appropriate. 

(E) In the case of an individual who is receiving educational 

assistance under chapter 1606 or 1607 of title 10, an activity 

relating to the administration of that chapter at Department 

of Defense, Coast Guard, or National Guard facilities. 

(F) During the period preceding øJune 30, 2013¿ June 30, 

2013, or the period beginning on June 30, 2016, and ending on 

June 30, 2021, an activity relating to the administration of a 

national cemetery or a State veterans’ cemetery. 

(G) Any activity of a State veterans agency related to providing assistance to veterans in obtaining any benefit under 

the laws administered by the Secretary or the laws of the 

State. 

(H) A position working in a Center of Excellence for Veteran 

Student Success, as established pursuant to part T of title VIII 

of the Higher Education Act of 1965 (20 U.S.C. 1161t et seq.). 

(I) A position working in a cooperative program carried out 

jointly by the Department and an institution of higher learning. 

(J) Any other veterans-related position in an institution of 

higher learning. 

(5) An individual may elect, in a manner prescribed by the Secretary, to be paid in advance an amount equal to 40 percent of the 

total amount of the work-study allowance agreed to be paid under 

the agreement in return for the individual’s agreement to perform 

the number of hours of work specified in the agreement (but not 

more than an amount equal to 50 times the applicable hourly minimum wage). 

(6) For the purposes of this subsection and subsection (e), the 

term ‘‘applicable hourly minimum wages’’ means— 

(A) the hourly minimum wage under section 6(a) of the Fair 

Labor Standards Act of 1938 (29 U.S.C. 206(a)); or 

(B) the hourly minimum wage under comparable law of the 

State in which the services are to be performed, if such wage 

is higher than the wage referred to in subparagraph (A) and 

the Secretary has made a determination to pay such higher 

wage. 

(b) Notwithstanding any other provision of law, the Secretary 

shall, subject to the provisions of subsection (e) of this section, utilize, in connection with the activities specified in subsection (a)(1) 

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grams of rehabilitation, education, or training under chapter 30, 

31, 32, 33, or 34 of this title or chapter 1606 or 1607 of title 10, 

at a rate equal to at least three-quarters of that required of a fulltime student. In carrying out this section, the Secretary, wherever 

feasible, shall give priority to veterans with disabilities rated at 30 

percent or more for purposes of chapter 11 of this title. In the event 

an individual ceases to be at least a three-quarter-time student before completing such agreement, the individual may, with the approval of the Secretary, be permitted to complete such agreement. 

(c) The Secretary shall determine the number of individuals 

whose services the Department of Veterans Affairs can effectively 

utilize and the types of services that such individuals may be required to perform, on the basis of a survey, which the Secretary 

shall conduct annually, of each Department of Veterans Affairs regional office in order to determine the numbers of individuals 

whose services can effectively be utilized during an enrollment period in each geographical area where Department of Veterans Affairs activities are conducted, and shall determine which individuals shall be offered agreements under this section in accordance 

with regulations which the Secretary shall prescribe, including as 

criteria (1) the need of the individual to augment the veteran’s educational assistance or subsistence allowance; (2) the availability to 

the individual of transportation to the place where the individual’s 

services are to be performed; (3) the motivation of the individual; 

and (4) in the case of a disabled veteran pursuing a course of vocational rehabilitation under chapter 31 of this title, the compatibility 

of the work assignment to the veteran’s physical condition. 

(d) While performing the services authorized by this section, individuals shall be deemed employees of the United States for the 

purposes of the benefits of chapter 81 of title 5 but not for the purposes of laws administrated by the Office of Personnel Management. 

(e)(1) Subject to paragraph (2) of this subsection, the Secretary 

may, notwithstanding any other provision of law, enter into an 

agreement with an individual under this section, or a modification 

of such an agreement, whereby the individual agrees to perform a 

qualifying work-study activity described in subsection (a)(4) and 

agrees that the Secretary shall, in lieu of paying the work-study allowance payable for such services, as provided in subsection (a) of 

this section, deduct the amount of the allowance from the amount 

which the individual has been determined to be indebted to the 

United States by virtue of such individual’s participation in a benefits program under this chapter, chapter 30, 31, 32, 33, 35, or 36 

of this title, or chapter 1606 or 1607 of title 10 (other than an indebtedness arising from a refund penalty imposed under section 

2135 of such title). 

(2)(A) Subject to subparagraph (B) of this paragraph, the provisions of this section (other than those provisions which are determined by the Secretary to be inapplicable to an agreement under 

this subsection) shall apply to any agreement authorized under 

paragraph (1) of this subsection. 

(B) For the purposes of this subsection, the Secretary may— 

(i) waive, in whole or in part, the limitations in subsection 

(a) of this section concerning the number of hours and periods 

during which services can be performed by the individual and 


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the provisions of subsection (b) of this section requiring the individual’s pursuit of a program of rehabilitation, education, or 

training; 

(ii) in accordance with such terms and conditions as may be 

specified in the agreement under this subsection, waive or 

defer charging interest and administrative costs pursuant to 

section 5315 of this title on the indebtedness to be satisfied by 

performance of the agreement; and 

(iii) notwithstanding the indebtedness offset provisions of 

section 5314 of this title, waive or defer until the termination 

of an agreement under this subsection the deduction of all or 

any portion of the amount of indebtedness covered by the 

agreement from future payments to the individual as described 

in section 5314 of this title. 

(3)(A) Subject to the provisions of subparagraphs (B) and (C) of 

this paragraph, an agreement authorized under this subsection 

shall terminate in accordance with the provisions of this section 

and the terms and conditions of the agreement which are consistent with this subsection. 

(B) In no event shall an agreement under this subsection continue in force after the total amount of the individual’s indebtedness described in paragraph (1) of this subsection has been recouped, waived, or otherwise liquidated. 

(C) Notwithstanding the provisions of subparagraphs (A) and (B) 

of this paragraph, if the Secretary finds that an individual was 

without fault and was allowed to perform services described in the 

agreement after its termination, the Secretary shall, as reasonable 

compensation therefor, pay the individual at the applicable hourly 

minimum wage rate for such services as the Secretary determines 

were satisfactorily performed. 

(4) The Secretary shall promulgate regulations to carry out this 

subsection. 

* * * * * * * 

CHAPTER 36—ADMINISTRATION OF EDUCATIONAL 

BENEFITS 

SUBCHAPTER I—STATE APPROVING AGENCIES 

Sec. 

3670. Scope of approval. 

* * * * * * * 

SUBCHAPTER II—MISCELLANEOUS PROVISIONS 

* * * * * * * 

3699. Provision of certain information to educational institutions. 

SUBCHAPTER I—STATE APPROVING AGENCIES 

* * * * * * * 

§ 3672. Approval of courses 

(a) An eligible person or veteran shall receive the benefits of this 

chapter and chapters 34 and 35 of this title while enrolled in a 

course of education offered by an educational institution only if (1) 

such course is approved as provided in this chapter and chapters 

34 and 35 of this title by the State approving agency for the State 


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where such educational institution is located, or by the Secretary, 

or (2) such course is approved (A) for the enrollment of the particular individual under the provisions of section 3536 of this title 

or (B) for special restorative training under subchapter V of chapter 35 of this title. Approval of courses by State approving agencies 

shall be in accordance with the provisions of this chapter and chapters 34 and 35 of this title and such other regulations and policies 

as the State approving agency may adopt. Each State approving 

agency shall furnish the Secretary with a current list of educational institutions specifying courses which it has approved, and, 

in addition to such list, it shall furnish such other information to 

the Secretary as it and the Secretary may determine to be necessary to carry out the purposes of this chapter and chapters 34 

and 35 of this title. Each State approving agency shall notify the 

Secretary of the disapproval of any course previously approved and 

shall set forth the reasons for such disapproval. 

(b)(1) The Secretary shall be responsible for the approval of 

courses of education offered by any agency of the Federal Government authorized under other laws to supervise such education. The 

Secretary may approve any course in any other educational institution in accordance with the provisions of this chapter and chapters 

34 and 35 of this title. 

(2)(A) Subject to sections 3675(b)(1) and (b)(2), 3680A, 3684, and 

3696 of this title, øthe following programs are deemed to be approved for purposes of this chapter:¿ a program of education is 

deemed to be approved for purposes of this chapter if a State approving agency determines that the program is one of the following 

programs: 

(i) An accredited standard college degree program offered at 

a public or not-for-profit proprietary educational institution 

that is accredited by an agency or association recognized for 

that purpose by the Secretary of Education. 

(ii) A flight training course approved by the Federal Aviation 

Administration that is offered by a certified pilot school that 

possesses a valid Federal Aviation Administration pilot school 

certificate. 

(iii) An apprenticeship program registered with the Office of 

Apprenticeship (OA) of the Employment Training Administration of the Department of Labor or a State apprenticeship 

agency recognized by the Office of Apprenticeship pursuant to 

the Act of August 16, 1937 (popularly known as the ‘‘National 

Apprenticeship Act’’; 29 U.S.C. 50 et seq.). 

(iv) A program leading to a secondary school diploma offered 

by a secondary school approved in the State in which it is operating. 

(B) A licensure test offered by a Federal, State, or local government is deemed to be approved for purposes of this chapter. 

(c)(1) In the case of programs of apprenticeship where— 

(A) the apprenticeship standards have been approved by the 

Secretary of Labor pursuant to section 2 of the Act of August 

16, 1937 (popularly known as the ‘‘National Apprenticeship 

Act’’) (29 U.S.C. 50a), as a national apprenticeship program for 

operation in more than one State, and 


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(B) the training establishment is a carrier directly engaged 

in interstate commerce which provides such training in more 

than one State, 

the Secretary shall act as a ‘‘State approving agency’’ as such term 

is used in section 3687(a)(1) of this title and shall be responsible 

for the approval of all such programs. 

(2) The period of a program of apprenticeship may be determined 

based upon a specific period of time (commonly referred to as a 

‘‘time-based program’’), based upon the demonstration of successful 

mastery of skills (commonly referred to as a ‘‘competency-based 

program’’), or based upon a combination thereof. 

(3)(A) In the case of a competency-based program of apprenticeship, State approving agencies shall determine the period for which 

payment may be made for such a program under chapters 30 and 

35 of this title and chapter 1606 of title 10. In determining the period of such a program, State approving agencies shall take into 

consideration the approximate term of the program recommended 

in registered apprenticeship program standards recognized by the 

Secretary of Labor. 

(B) The sponsor of a competency-based program of apprenticeship 

shall provide notice to the State approving agency involved of any 

such standards that may apply to the program and the proposed 

approximate period of training under the program. 

(4) The sponsor of a competency-based program of apprenticeship 

shall notify the Secretary upon the successful completion of a program of apprenticeship by an individual under chapter 30 or 35 of 

this title, or chapter 1606 of title 10, as the case may be. 

(d)(1) Pursuant to regulations prescribed by the Secretary in consultation with the Secretary of Labor, the Secretary and State approving agencies shall actively promote the development of apprenticeship and on the job training programs for the purposes of sections 3677 and 3687 of this title and shall utilize the services of 

disabled veterans’ outreach program specialists under section 

4103A of this title to promote the development of such programs. 

The Secretary of Labor shall provide assistance and services to the 

Secretary, and to State approving agencies, to increase the use of 

apprenticeships. 

(2) In conjunction with outreach services provided by the Secretary under chapter 77 of this title for education and training benefits, each State approving agency shall conduct outreach programs 

and provide outreach services to eligible persons and veterans 

about education and training benefits available under applicable 

Federal and State law. 

(e) A program of education exclusively by correspondence, and 

the correspondence portion of a combination correspondence-residence course leading to a vocational objective, that is offered by an 

educational institution (as defined in section 3452(c) of this title) 

may be approved only if (1) the educational institution is accredited 

by an entity recognized by the Secretary of Education, and (2) at 

least 50 percent of those pursuing such a program or course require 

six months or more to complete the program or course. 

* * * * * * * 


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§ 3675. Approval of accredited courses 

(a)(1) øThe Secretary or a State approving agency¿ A State approving agency, or the Secretary when acting in the role of a State 

approving agency, may approve accredited programs (including 

non-degree accredited programs) øoffered by proprietary for-profit 

educational institutions¿ not covered by section 3672 of this title 

when— 

(A) such courses have been accredited and approved by a nationally recognized accrediting agency or association; 

(B) such courses are conducted under the Act of February 23, 

1917 (20 U.S.C. 11 et seq.); 

(C) such courses are accepted by the State department of 

education for credit for a teacher’s certificate or a teacher’s degree; or 

(D) such courses are approved by the State as meeting the 

requirement of regulations prescribed by the Secretary of 

Health and Human Services under sections 1819(f)(2)(A)(i) and 

1919(f)(2)(A)(i) of the Social Security Act (42 U.S.C. 1395i3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)). 

(2)(A) For the purposes of this chapter, the Secretary of Education shall publish a list of nationally recognized accrediting agencies and associations which that Secretary determines to be reliable 

authority as to the quality of training offered by an educational institution. 

(B) Except as provided in section 3672(e) of this title, a State approving agency may utilize the accreditation of any accrediting association or agency listed pursuant to subparagraph (A) of this 

paragraph for approval of courses specifically accredited and approved by such accrediting association or agency. 

(3)(A) An educational institution shall submit an application for 

approval of courses to the appropriate State approving agency. In 

making application for approval, the institution (other than an elementary school or secondary school) shall transmit to the State approving agency copies of its catalog or bulletin which must be certified as true and correct in content and policy by an authorized 

representative of the institution. 

(B) Each catalog or bulletin transmitted by an institution under 

subparagraph (A) of this paragraph shall— 

(i) state with specificity the requirements of the institution 

with respect to graduation; 

(ii) include the information required under paragraphs (6) 

and (7) of section 3676(b) of this title; and 

(iii) include any attendance standards of the institution, if 

the institution has and enforces such standards. 

(b) As a condition of approval under this section, øthe Secretary 

or the State approving agency¿ the State approving agency, or the 

Secretary when acting in the role of a State approving agency, must 

find the following: 

(1) The educational institution keeps adequate records, as 

prescribed by øthe Secretary or the State approving agency¿ 

the State approving agency, or the Secretary when acting in the 

role of a State approving agency,, to show the progress and 

grades of the eligible person or veteran and to show that satisfactory standards relating to progress and conduct are enforced. 


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(2) The educational institution maintains a written record of 

the previous education and training of the eligible person or 

veteran that clearly indicates that appropriate credit has been 

given by the educational institution for previous education and 

training, with the training period shortened proportionately. 

(3) The educational institution and its approved courses meet 

the criteria of paragraphs (1), (2), øand (3)¿ (3), and (14) of section 3676(c) of this title. 

(c)(1) A State approving agency may approve the entrepreneurship courses offered by a qualified provider of entrepreneurship 

courses. 

(2) For purposes of this subsection, the term ‘‘entrepreneurship 

course’’ means a non-degree, non-credit course of business education that enables or assists a person to start or enhance a small 

business concern (as defined pursuant to section 3(a) of the Small 

Business Act (15 U.S.C. 632(a))). 

(3) Subsection (a) and paragraphs (1) and (2) of subsection (b) 

shall not apply to— 

(A) an entrepreneurship course offered by a qualified provider of entrepreneurship courses; and 

(B) a qualified provider of entrepreneurship courses by reason of such provider offering one or more entrepreneurship 

courses. 

(4) Notwithstanding paragraph (3), a qualified provider of entrepreneurship courses shall maintain such records as the Secretary 

determines to be necessary to comply with reporting requirements 

that apply under section 3684(a)(1) of this title with respect to eligible persons and veterans enrolled in an entrepreneurship course 

offered by the provider. 

§ 3676. Approval of nonaccredited courses 

(a) No course of education which has not been approved by a 

State approving agency pursuant to section 3675 of this title, which 

is offered by a public or private, profit or nonprofit, educational institution shall be approved for the purposes of this chapter unless 

the educational institution offering such course submits to the appropriate State approving agency a written application for approval 

of such course in accordance with the provisions of this chapter. 

(b) Such application shall be accompanied by not less than two 

copies of the current catalog or bulletin which is certified as true 

and correct in content and policy by an authorized owner or official 

and includes the following: 

(1) Identifying data, such as volume number and date of publication; 

(2) Names of the institution and its governing body, officials 

and faculty; 

(3) A calendar of the institution showing legal holidays, beginning and ending date of each quarter, term, or semester, 

and other important dates; 

(4) Institution policy and regulations on enrollment with respect to enrollment dates and specific entrance requirements 

for each course; 

(5) Institution policy and regulations relative to leave, absences, class cuts, makeup work, tardiness and interruptions 

for unsatisfactory attendance; 


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(6) Institution policy and regulations relative to standards of 

progress required of the student by the institution (this policy 

will define the grading system of the institution, the minimum 

grades considered satisfactory, conditions for interruption for 

unsatisfactory grades or progress and a description of the probationary period, if any, allowed by the institution, and conditions of reentrance for those students dismissed for unsatisfactory progress. A statement will be made regarding progress 

records kept by the institution and furnished the student); 

(7) Institution policy and regulations relating to student conduct and conditions for dismissal for unsatisfactory conduct; 

(8) Detailed schedules of fees, charges for tuition, books, supplies, tools, student activities, laboratory fees, service charges, 

rentals, deposits, and all other charges; 

(9) Policy and regulations of the institution relative to the refund of the unused portion of tuition, fees, and other charges 

in the event the student does not enter the course or withdraws or is discontinued therefrom; 

(10) A description of the available space, facilities, and equipment; 

(11) A course outline for each course for which approval is 

requested, showing subjects or units in the course, type of work 

or skill to be learned, and approximate time and clock hours 

to be spent on each subject or unit; and 

(12) Policy and regulations of the institution relative to 

granting credit for previous educational training. 

(c) The appropriate State approving agency may approve the application of such institution when the institution and its non-accredited courses are found upon investigation to have met the following criteria: 

(1) The courses, curriculum, and instruction are consistent in 

quality, content, and length with similar courses in public 

schools and other private schools in the State, with recognized 

accepted standards. 

(2) There is in the institution adequate space, equipment, instructional material, and instructor personnel to provide training of good quality. 

(3) Educational and experience qualifications of directors, administrators, and instructors are adequate. 

(4) The institution maintains a written record of the previous 

education and training of the eligible person and clearly indicates that appropriate credit has been given by the institution 

for previous education and training, with the training period 

shortened proportionately and the eligible person so notified. 

(5) A copy of the course outline, schedule of tuition, fees, and 

other charges, regulations pertaining to absence, grading policy, and rules of operation and conduct will be furnished the 

eligible person upon enrollment. 

(6) Upon completion of training, the eligible person is given 

a certificate by the institution indicating the approved course 

and indicating that training was satisfactorily completed. 

(7) Adequate records as prescribed by the State approving 

agency are kept to show attendance and progress or grades, 

and satisfactory standards relating to attendance, progress, 

and conduct are enforced. 


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(8) The institution complies with all local, city, county, municipal, State, and Federal regulations, such as fire codes, 

building and sanitation codes. The State approving agency may 

require such evidence of compliance as is deemed necessary. 

(9) The institution is financially sound and capable of fulfilling its commitments for training. 

(10) The institution does not utilize advertising of any type 

which is erroneous or misleading, either by actual statement, 

omission, or intimation. The institution shall not be deemed to 

have met this requirement until the State approving agency 

(A) has ascertained from the Federal Trade Commission 

whether the Commission has issued an order to the institution 

to cease and desist from any act or practice, and (B) has, if 

such an order has been issued, given due weight to that fact. 

(11) The institution does not exceed its enrollment limitations as established by the State approving agency. 

(12) The institution’s administrators, directors, owners, and 

instructors are of good reputation and character. 

(13) The institution has and maintains a policy for the refund of the unused portion of tuition, fees, and other charges 

in the event the eligible person fails to enter the course or 

withdraws or is discontinued therefrom at any time before 

completion and— 

(A) in the case of an institution (other than (i) a Federal, 

State, or local Government institution or (ii) an institution 

described in subparagraph (B)), such policy provides that 

the amount charged to the eligible person for tuition, fees, 

and other charges for a portion of the course shall not exceed the approximate pro rata portion of the total charges 

for tuition, fees, and other charges that the length of the 

completed portion of the course bears to its total length; or 

(B) in the case of an institution that is a nonaccredited 

public educational institution, the institution has and 

maintains a refund policy regarding the unused portion of 

tuition, fees, and other charges that is substantially the 

same as the refund policy followed by accredited public 

educational institutions located within the same State as 

such institution. 

(14) Such additional criteria as may be deemed necessary by 

the State approving agency if the Secretary, in consultation 

with the State approving agency and pursuant to regulations 

prescribed to carry out this paragraph, determines such criteria 

are necessary and treat public, private, and proprietary forprofit educational institutions equitably. 

(d) The Secretary may waive, in whole or in part, the requirements of subsection (c)(13) of this section in the case of an educational institution which— 

(1) is a college, university, or similar institution offering 

postsecondary level academic instruction that leads to an associate or higher degree, 

(2) is operated by an agency of a State or of a unit of local 

government, 

(3) is located within such State or, in the case of an institution operated by an agency of a unit of local government, withVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00157 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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in the boundaries of the area over which such unit has taxing 

jurisdiction, and 

(4) is a candidate for accreditation by a regional accrediting 

association, 

if the Secretary determines, pursuant to regulations which the Secretary shall prescribe, that such requirements would work an 

undue administrative hardship because the total amount of tuition, 

fees, and other charges at such institution is nominal. 

(e) Notwithstanding any other provision of this title, a course of 

education shall not be approved under this section if it is to be pursued in whole or in part by independent study. 

* * * * * * * 

§ 3679. Disapproval of courses 

(a) Any course approved for the purposes of this chapter which 

fails to meet any of the requirements of this chapter shall be immediately disapproved by the Secretary or the appropriate State approving agency. An educational institution which has its courses 

disapproved by the Secretary or a State approving agency will be 

notified of such disapproval by a certified or registered letter of notification and a return receipt secured. 

(b) Each State approving agency shall notify the Secretary of 

each course which it has disapproved under this section. The Secretary shall notify the State approving agency of the Secretary’s 

disapproval of any educational institution under chapter 31 of this 

title. 

(c)(1) Notwithstanding any other provision of this chapter and 

subject to paragraphs (3) through (6), the Secretary shall disapprove a course of education provided by a public institution of 

higher learning if the institution charges tuition and fees for that 

course for covered individuals who are pursuing the course with 

educational assistance under chapter 30 or 33 of this title while living in the State in which the institution is located at a rate that 

is higher than the rate the institution charges for tuition and fees 

for that course for residents of the State in which the institution 

is located, regardless of the covered individual’s State of residence. 

(2) For purposes of this subsection, a covered individual is any 

individual as follows: 

(A) A veteran who was discharged or released from a period 

of not fewer than 90 days of service in the active military, 

naval, or air service less than three years before the date of enrollment in the course concerned. 

(B) An individual who is entitled to assistance under section 

3311(b)(9) øor 3319 of this title by virtue of such individual’s 

relationship to a veteran described in subparagraph (A).¿ of 

this title or to whom educational assistance is transferred under 

section 3319 of this title. 

(3) If after enrollment in a course of education that is subject to 

disapproval under paragraph (1) by reason of paragraph (2)(A) or 

(2)(B) a covered individual pursues one or more courses of education at the same public institution of higher learning while remaining continuously enrolled (other than during regularly scheduled breaks between courses, semesters or terms) at that institution of higher learning, any course so pursued by the covered indiVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00158 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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vidual at that institution of higher learning while so continuously 

enrolled shall also be subject to disapproval under paragraph (1). 

(4) It shall not be grounds to disapprove a course of education 

under paragraph (1) if a public institution of higher learning requires a covered individual pursuing a course of education at the 

institution to demonstrate an intent, by means other than satisfying a physical presence requirement, to establish residency in the 

State in which the institution is located, or to satisfy other requirements not relating to the establishment of residency, in order to be 

charged tuition and fees for that course at a rate that is equal to 

or less than the rate the institution charges for tuition and fees for 

that course for residents of the State. 

(5) The Secretary may waive such requirements of paragraph (1) 

as the Secretary considers appropriate. 

(6) Disapproval under paragraph (1) shall apply only with respect to educational assistance under chapters 30 and 33 of this 

title. 

SUBCHAPTER II—MISCELLANEOUS PROVISIONS 

* * * * * * * 

§ 3684. Reports by veterans, eligible persons, and institutions; reporting fee 

(a)(1) Except as provided in paragraph (2) of this subsection, the 

veteran or eligible person and the educational institution offering 

a course in which such veteran or eligible person is enrolled under 

chapter 31, 32, 33, 34, 35, or 36 of this title shall, without delay, 

report to the Secretary, in the form prescribed by the Secretary, 

such enrollment and any interruption or termination of the education of each such veteran or eligible person. The date of such 

interruption or termination will be the last date of pursuit, or, in 

the case of correspondence training, the last date a lesson was 

serviced by a school. 

(2)(A) In the case of a program of independent study pursued on 

less than a half-time basis in an educational institution, the Secretary may approve a delay by the educational institution in reporting the enrollment or reenrollment of an eligible veteran or eligible person until the end of the term, quarter, or semester if the 

educational institution requests the delay and the Secretary determines that it is not feasible for the educational institution to monitor interruption or termination of the veteran’s or eligible person’s 

pursuit of such program. 

(B) An educational institution which, pursuant to subparagraph 

(A) of this paragraph, is delaying the reporting of the enrollment 

or reenrollment of a veteran shall provide the veteran with notice 

of the delay at the time that the veteran enrolls or reenrolls. 

(3)(A) Subject to subparagraph (B) of this paragraph, an educational institution offering courses on a term, quarter, or semester 

basis may certify the enrollment of a veteran who is not on active 

duty, or of an eligible person, in such courses for more than one 

term, quarter, or semester at a time, but not for a period extending 

beyond the end of a school year (including the summer enrollment 

period). 

(B) Subparagraph (A) of this paragraph shall not apply with respect to any term, quarter, or semester for which the veteran or eliVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00159 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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gible person is enrolled on a less than half-time basis and shall not 

be construed as restricting the Secretary from requiring that an 

educational institution, in reporting an enrollment for more than 

one term, quarter, or semester, specify the dates of any intervals 

within or between any such terms, quarters, or semesters. 

(4) For purposes of this subsection, the term ‘‘educational institution’’ may include a group, district, or consortium of separately accredited educational institutions located in the same State that are 

organized in a manner that facilitates the centralized reporting of 

the enrollments in such group, district, or consortium of institutions. 

(b) The Secretary, prior to making payment of a reporting fee to 

an educational institution, as provided for in subsection (c) of this 

section, shall require such institution to certify that it has exercised reasonable diligence in determining whether such institution 

or any course offered by such institution approved for the enrollment of veterans or eligible persons meets all of the applicable requirements of chapters 31, 34, 35, and 36 of this title and that it 

will, without delay, report any failure to meet any such requirement to the Secretary. 

(c) The Secretary may pay to any educational institution, or to 

the sponsor of a program of apprenticeship, furnishing education or 

training under either this chapter or chapter 31, 34, or 35 of this 

title, a reporting fee which will be in lieu of any other compensation or reimbursement for reports or certifications which such educational institution or joint apprenticeship training committee is 

required to submit to the Secretary by law or regulation. Such reporting fee shall be computed for each calendar year by multiplying 

$12 by the number of eligible veterans or eligible persons enrolled 

under this chapter or chapter 31, 34, or 35 of this title, or $15 in 

the case of those eligible veterans and eligible persons whose educational assistance checks are directed in care of each institution 

for temporary custody and delivery and are delivered at the time 

of registration as provided under section 3680(d)(4) of this title, 

during the calendar year. The reporting fee shall be paid to such 

educational institution or joint apprenticeship training committee 

as soon as feasible after the end of the calendar year for which it 

is applicable. No reporting fee payable to an educational institution 

under this subsection shall be subject to offset by the Secretary 

against any liability of such institution for any overpayment for 

which such institution may be administratively determined to be 

liable under section 3685 of this title unless such liability is not 

contested by such institution or has been upheld by a final decree 

of a court of appropriate jurisdiction. Any reporting fee paid an 

educational institution or joint apprenticeship training committee 

after the date of the enactment of the Post-9/11 Veterans Educational Assistance Improvements Act of 2011 shall be utilized by 

such institution or committee solely for the making of certifications 

required under this chapter or chapter 31, 34, or 35 of this title or 

for otherwise supporting programs for veterans. The reporting fee 

payable under this subsection shall be paid from amounts appropriated for readjustment benefits. 

(d) Not later than 90 days after the date of the enactment of this 

subsection, the Secretary shall ensure that the Department provides personnel of educational institutions who are charged with 


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submitting reports or certifications to the Secretary under this section with assistance in preparing and submitting such reports or 

certifications. 

* * * * * * * 

§ 3692. Advisory committee 

(a) There shall be a Veterans’ Advisory Committee on Education 

formed by the Secretary which shall be composed of persons who 

are eminent in their respective fields of education, labor, and management and of representatives of institutions and establishments 

furnishing education to eligible veterans or persons enrolled under 

chapter 30, 32, 33, or 35 of this title and chapter 1606 of title 10. 

The committee shall also, to the maximum extent practicable, include veterans representative of World War II, the Korean conflict 

era, the post-Korean conflict era, the Vietnam era, the post-Vietnam era, and the Persian Gulf War. The Assistant Secretary of 

Education for Postsecondary Education (or such other comparable 

official of the Department of Education as the Secretary of Education may designate) øand the Assistant Secretary of Labor for 

Veterans’ Employment and Training shall be ex officio members¿ 

an ex officio member of the advisory committee. 

(b) The Secretary shall consult with and seek the advice of the 

committee from time to time with respect to the administration of 

this chapter, chapters 30, 32, 33, and 35 of this title, and chapter 

1606 of title 10. The committee may make such reports and recommendations as it considers desirable to the Secretary and the 

Congress. 

(c) The committee shall remain in existence until December 31, 

2015. 

§ 3693. Compliance surveys 

ø(a) Except as provided in subsection (b) of this section, the Secretary shall conduct an annual compliance survey of each institution offering one or more courses approved for the enrollment of eligible veterans or persons if at least 300 veterans or persons are enrolled in such course or courses under provisions of this title or if 

any such course does not lead to a standard college degree. Such 

compliance survey shall be designed to ensure that the institution 

and approved courses are in compliance with all applicable provisions of chapters 30 through 36 of this title. The Secretary shall 

assign at least one education compliance specialist to work on compliance surveys in any year for each 40 compliance surveys required to be made under this section for such year.¿ 

(a)(1) Except as provided in subsection (b), the Secretary shall 

conduct an annual compliance survey of educational institutions 

and training establishments offering one or more courses approved 

for the enrollment of eligible veterans or persons if at least 20 such 

veterans or persons are enrolled in any such course. The Secretary 

shall— 

(A) design the compliance surveys to ensure that such institutions or establishments, as the case may be, and approved 

courses are in compliance with all applicable provisions of 

chapters 30 through 36 of this title; 


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(B) survey each such educational institution and training establishment not less than once during every two-year period; 

and 

(C) assign not fewer than one education compliance specialist 

to work on compliance surveys in any year for each 40 compliance surveys required to be made under this section for such 

year. 

(2) The Secretary, in consultation with the State approving agencies, shall— 

(A) annually determine the parameters of the surveys required under paragraph (1); and 

(B) not later than September 1 of each year, make available 

to the State approving agencies a list of the educational institutions and training establishments that will be surveyed during 

the fiscal year following the date of making such list available. 

(b) The Secretary may waive the requirement in øsubsection (a) 

of this section for an annual compliance survey¿ subsection (a)(1) 

for a compliance survey with respect to an øinstitution¿ educational 

institution or training establishment if the Secretary determines, 

based on the øinstitution’s demonstrated record of compliance¿ 

record of compliance of such institution or establishment with all 

the applicable provisions of chapters 30 through 36 of this title, 

that the waiver would be appropriate and in the best interest of 

the United States Government. 

(c) In this section, the terms ‘‘educational institution’’ and ‘‘training establishment’’ have the meaning given such terms in section 

3452 of this title. 

* * * * * * * 

§ 3699. Provision of certain information to educational institutions 

For each veteran or other individual pursuing a course of education that has been approved under this chapter using educational 

assistance to which the veteran or other individual is entitled under 

chapter 30, 32, 33, or 35 of this title, the Secretary shall make available to the educational institution offering the course information 

about the amount of such educational assistance to which the veteran or other individual is entitled. Such information shall be provided to such educational institution through a secure information 

technology system accessible by the educational institution and shall 

be regularly updated to reflect any amounts used by the veteran or 

other individual. 

* * * * * * * 

CHAPTER 37—HOUSING AND SMALL BUSINESS LOANS 

SUBCHAPTER I—GENERAL 

* * * * * * * 

§ 3703. Basic provisions relating to loan guaranty and insurance 

(a)(1)(A) Any loan to a veteran eligible for benefits under this 

chapter, if made for any of the purposes specified in section 3710 

of this title and in compliance with the provisions of this chapter, 


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is automatically guaranteed by the United States in an amount not 

to exceed the lesser of— 

(i)(I) in the case of any loan of not more than $45,000, 50 

percent of the loan; (II) in the case of any loan of more than $45,000, but not more than $56,250, $22,500; 

(III) except as provided in subclause (IV) of this clause, in the case of any loan of more than $56,250, the lesser of $36,000 

or 40 percent of the loan; or (IV) in the case of any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 

3710(a) of this title, øthe lesser of¿ the maximum guaranty 

amount (as defined in subparagraph (C)) øor 25 percent of the 

loan¿; or 

(ii) the maximum amount of guaranty entitlement available 

to the veteran as specified in subparagraph (B) of this paragraph. 

(B) The maximum amount of guaranty entitlement available to 

a veteran for purposes specified in section 3710 of this title shall 

be $36,000, or in the case of a loan described in subparagraph 

(A)(i)(IV) of this paragraph, the maximum guaranty amount (as defined in subparagraph (C)), reduced by the amount of entitlement 

previously used by the veteran under this chapter and not restored 

as a result of the exclusion in section 3702(b) of this title. 

(C) In this paragraph, the term ‘‘maximum guaranty amount’’ 

means the dollar amount that is equal to 25 percent of the 

øFreddie Mac conforming loan limit limitation determined under 

section 305(a)(2) of the Federal Home Loan Mortgage Corporation 

Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted 

for the year involved.¿ amount of the loan. 

(2)(A) Any housing loan which might be guaranteed under the 

provisions of this chapter, when made or purchased by any financial institution subject to examination and supervision by any 

agency of the United States or of any State may, in lieu of such 

guaranty, be insured by the Secretary under an agreement whereby the Secretary will reimburse any such institution for losses incurred on such loan up to 15 per centum of the aggregate of loans 

so made or purchased by it. 

(B) Loans insured under this section shall be made on such other 

terms, conditions, and restrictions as the Secretary may prescribe 

within the limitations set forth in this chapter. 

(b) The liability of the United States under any guaranty, within 

the limitations of this chapter, shall decrease or increase pro rata 

with any decrease or increase of the amount of the unpaid portion 

of the obligation. 

(c)(1) Loans guaranteed or insured under this chapter shall be 

payable upon such terms and conditions as may be agreed upon by 

the parties thereto, subject to the provisions of this chapter and 

regulations of the Secretary issued pursuant to this chapter, and 

shall bear interest not in excess of such rate as the Secretary may 

from time to time find the loan market demands, except that in establishing the rate of interest that shall be applicable to such 

loans, the Secretary shall consult with the Secretary of Housing 

and Urban Development regarding the rate of interest applicable 

to home loans insured under section 203(b) of the National Housing 


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Act (12 U.S.C. 1709(b)). In establishing rates of interest under this 

paragraph for one or more of the purposes described in clauses (4) 

and (7) of section 3710(a) of this title, the Secretary may establish 

a rate or rates higher than the rate specified for other purposes 

under such section, but any such rate may not exceed such rate as 

the Secretary may from time to time find the loan market demands 

for loans for such purposes. 

(2) The provisions of the Servicemen’s Readjustment Act of 1944 

which were in effect before April 1, 1958, with respect to the interest chargeable on loans made or guaranteed under such Act shall, 

notwithstanding the provisions of paragraph (1) of this subsection, 

continue to be applicable— 

(A) to any loan made or guaranteed before April 1, 1958; and 

(B) to any loan with respect to which a commitment to guarantee was entered into by the Secretary before April 1, 1958. 

(3) This section shall not be construed to prohibit a veteran from 

paying to a lender any reasonable discount required by such lender, when the proceeds from the loan are to be used— 

(A) to refinance indebtedness pursuant to clause (5), (8), or 

(9)(B)(i) of section 3710(a) of this title or section 3712(a)(1)(F) 

of this title; 

(B) to repair, alter, or improve a farm residence or other 

dwelling pursuant to clauses (4) and (7) of section 3710(a) of 

this title; 

(C) to construct a dwelling or farm residence on land already 

owned or to be acquired by the veteran except where the land 

is directly or indirectly acquired from a builder or developer 

who has contracted to construct such dwelling for the veteran; 

(D) to purchase a dwelling from a class of sellers which the 

Secretary determines are legally precluded under all circumstances from paying such a discount if the best interest of 

the veteran would be so served; or 

(E) to refinance indebtedness and purchase a manufacturedhome lot pursuant to section 3710(a)(9)(B)(ii) or 3712(a)(1)(G) 

of this title, but only with respect to that portion of the loan 

used to refinance such indebtedness. 

(4)(A) In guaranteeing or insuring loans under this chapter, the 

Secretary may elect whether to require that such loans bear interest at a rate that is— 

(i) agreed upon by the veteran and the mortgagee; or 

(ii) established under paragraph (1). 

The Secretary may, from time to time, change the election under 

this subparagraph. 

(B) Any veteran, under a loan described in subparagraph (A)(i), 

may pay reasonable discount points in connection with the loan. 

Except in the case of a loan for the purpose specified in section 

3710(a)(8), 3710(b)(7), or 3712(a)(1)(F) of this title, discount points 

may not be financed as part of the principal amount of a loan guaranteed or insured under this chapter. 

(C) Not later than 10 days after an election under subparagraph 

(A), the Secretary shall transmit to the Committees on Veterans’ 

Affairs of the Senate and House of Representatives a notification 

of the election, together with an explanation of the reasons therefor. 


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(d)(1) The maturity of any housing loan at the time of origination 

shall not be more than thirty years and thirty-two days. 

(2)(A) Any loan for a term of more than five years shall be amortized in accordance with established procedure. 

(B) The Secretary may guarantee loans with provisions for various rates of amortization corresponding to anticipated variations 

in family income. With respect to any loan guaranteed under this 

subparagraph— 

(i) the initial principal amount of the loan may not exceed 

the reasonable value of the property as of the time the loan is 

made; and 

(ii) the principal amount of the loan thereafter (including the 

amount of all interest to be deferred and added to principal) 

may not at any time be scheduled to exceed the projected value 

of the property. 

(C) For the purposes of subparagraph (B) of this paragraph, the 

projected value of the property shall be calculated by the Secretary 

by increasing the reasonable value of the property as of the time 

the loan is made at a rate not in excess of 2.5 percent per year, 

but in no event may the projected value of the property for the purposes of such subparagraph exceed 115 percent of such reasonable 

value. A loan made for a purpose other than the acquisition of a 

single-family dwelling unit may not be guaranteed under such subparagraph. 

(3)(A) Any real estate housing loan (other than for repairs, alterations, or improvements) shall be secured by a first lien on the realty. In determining whether a loan is so secured, the Secretary 

may either disregard or allow for subordination to a superior lien 

created by a duly recorded covenant running with the realty in 

favor of either of the following: 

(i) A public entity that has provided or will provide assistance in response to a major disaster as determined by the 

President under the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(ii) A private entity to secure an obligation to such entity for 

the homeowner’s share of the costs of the management, operation, or maintenance of property, services, or programs within 

and for the benefit of the development or community in which 

the veteran’s realty is located, if the Secretary determines that 

the interests of the veteran borrower and of the Government 

will not be prejudiced by the operation of such covenant. 

(B) With respect to any superior lien described in subparagraph 

(A) created after June 6, 1969, the Secretary’s determination under 

clause (ii) of such subparagraph shall have been made prior to the 

recordation of the covenant. 

(e)(1) Except as provided in paragraph (2) of this subsection, an 

individual who pays a fee under section 3729 of this title, or who 

is exempted under section 3729(c)(1) of this title from paying such 

fee, with respect to a housing loan guaranteed or insured under 

this chapter that is closed after December 31, 1989, shall have no 

liability to the Secretary with respect to the loan for any loss resulting from any default of such individual except in the case of 

fraud, misrepresentation, or bad faith by such individual in obtaining the loan or in connection with the loan default. 


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(2) The exemption from liability provided by paragraph (1) of this 

subsection shall not apply to— 

(A) an individual from whom a fee is collected (or who is exempted from such fee) under section 3729(b)(2)(I) of this title; 

or 

(B) a loan made for any purpose specified in section 3712 of 

this title. 

(f) The application for or obtaining of a loan made, insured, or 

guaranteed under this chapter shall not be subject to reporting requirements applicable to requests for, or receipts of, Federal contracts, grants, loans, loan guarantees, loan insurance, or cooperative agreements except to the extent that such requirements are 

provided for in, or by the Secretary pursuant to, this title. 

* * * * * * * 

CHAPTER 41—JOB COUNSELING, TRAINING, AND 

PLACEMENT SERVICE FOR VETERANS 

Sec. 

4100. Findings. 

* * * * * * * 

ø4102A. Assistant Secretary of Labor for Veterans’ Employment and Training; program functions; Regional Administrators.¿ 

4102A. Deputy Under Secretary for Veterans’ Employment, Training, and Transition; 

program functions; Regional Administrators. 

* * * * * * * 

ø4108. Cooperation and coordination.¿ 

* * * * * * * 

4115. Longitudinal study of job counseling, training, and placement service for veterans. 

§ 4100. Findings 

The Congress makes the following findings: 

(1) As long as unemployment and underemployment continue 

as serious problems among disabled veterans and Vietnam-era 

veterans, alleviating unemployment and underemployment 

among such veterans is a national responsibility. 

(2) Because of the special nature of employment and training 

needs of such veterans and the national responsibility to meet 

those needs, policies and programs to increase opportunities for 

such veterans to obtain employment, job training, counseling, 

and job placement services and assistance in securing advancement in employment should be effectively and vigorously implemented by the øSecretary of Labor¿ Secretary and such implementation should be accomplished through the øAssistant 

Secretary of Labor for Veterans’ Employment and Training¿ 

Deputy Under Secretary for Employment, Training, and Transition. 

§ 4101. Definitions 

For the purposes of this chapter— 

(1) The term ‘‘special disabled veteran’’ has the same meaning provided in section 4211(1) of this title. 

(2) The term ‘‘veteran of the Vietnam era’’ has the same 

meaning provided in section 4211(2) of this title. 


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(3) The term ‘‘disabled veteran’’ has the same meaning provided in section 4211(3) of this title. 

(4) The term ‘‘eligible veteran’’ has the same meaning provided in section 4211(4) of this title. 

(5) The term ‘‘eligible person’’ means— 

(A) the spouse of any person who died of a service-connected disability, 

(B) the spouse of any member of the Armed Forces serving on active duty who, at the time of application for assistance under this chapter, is listed, pursuant to section 

556 of title 37 and regulations issued thereunder, by the 

Secretary concerned in one or more of the following categories and has been so listed for a total of more than 

ninety days: (i) missing in action, (ii) captured in line of 

duty by a hostile force, or (iii) forcibly detained or interned 

in line of duty by a foreign government or power, or 

(C) the spouse of any person who has a total disability 

permanent in nature resulting from a service-connected 

disability or the spouse of a veteran who died while a disability so evaluated was in existence. 

(6) The term ‘‘State’’ means each of the several States of the 

United States, the District of Columbia, and the Commonwealth of Puerto Rico, and may include, to the extent determined necessary and feasible, Guam, American Samoa, the 

Virgin Islands, the Commonwealth of the Northern Marianas 

Islands, and the Trust Territory of the Pacific Islands. 

(7) The term ‘‘employment service delivery system’’ means a 

service delivery system at which or through which labor exchange services, including employment, training, and placement services, are offered in accordance with the WagnerPeyser Act. 

ø(8) The term ‘‘Secretary’’ means the Secretary of Labor.¿ 

(9) The term ‘‘career services’’ means local employment and 

training services of the type described in section 134(c)(2) of 

the Workforce Innovation and Opportunity Act. 

§ 4102. Purpose 

The Congress declares as its intent and purpose that there shall 

be an effective (1) job and job training intensive services program, 

(2) employment placement service program, and (3) job training 

placement service program for eligible veterans and eligible persons and that, to this end policies and regulations shall be promulgated and administered by an øAssistant Secretary of Labor for 

Veterans’ Employment and Training¿ Deputy Under Secretary for 

Employment, Training, and Transition, established by section 

4102A of this title, through a Veterans’ Employment and Training 

Service within the øDepartment of Labor¿ Department, so as to 

provide such veterans and persons the maximum of employment 

and training opportunities, with priority given to the needs of disabled veterans and veterans who served on active duty during a 

war or in a campaign or expedition for which a campaign badge 

has been authorized through existing programs, coordination and 

merger of programs and implementation of new programs, including programs carried out by the Veterans’ Employment and Training Service to implement all efforts to ease the transition of 


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servicemembers to civilian careers that are consistent with, or an 

outgrowth of, the military experience of the servicemembers. 

ø§ 4102A. Assistant Secretary of Labor for Veterans’ Employment and Training; program functions; Regional 

Administrators¿ 

§ 4102A. Deputy Under Secretary for Veterans’ Employment, 

Training, and Transition; program functions; Regional Administrators 

ø(a) ESTABLISHMENT OF POSITION OF ASSISTANT SECRETARY OF

LABOR FOR VETERANS’ EMPLOYMENT AND TRAINING.—(1) There is 

established within the Department of Labor an Assistant Secretary 

of Labor for Veterans’ Employment and Training, appointed by the 

President by and with the advice and consent of the Senate, who 

shall formulate and implement all departmental policies and procedures to carry out (A) the purposes of this chapter, chapter 42, and 

chapter 43 of this title, and (B) all other Department of Labor employment, unemployment, and training programs to the extent they 

affect veterans. 

ø(2) The employees of the Department of Labor administering 

chapter 43 of this title shall be administratively and functionally 

responsible to the Assistant Secretary of Labor for Veterans’ Employment and Training. 

ø(3)(A) There shall be within the Department of Labor a Deputy 

Assistant Secretary of Labor for Veterans’ Employment and Training. The Deputy Assistant Secretary shall perform such functions 

as the Assistant Secretary of Labor for Veterans’ Employment and 

Training prescribes. 

ø(B) No individual may be appointed as a Deputy Assistant Secretary of Labor for Veterans’ Employment and Training unless the 

individual has at least five years of service in a management position as an employee of the Federal civil service or comparable service in a management position in the Armed Forces. For purposes 

of determining such service of an individual, there shall be excluded any service described in subparagraphs (A), (B), and (C) of 

section 308(d)(2) of this title.¿ 

(a) DEPUTY UNDER SECRETARY FOR VETERANS’ EMPLOYMENT, 

TRAINING, AND TRANSITION.—(1) The Deputy Under Secretary for 

Employment, Training, and Transition established by subsection 

(c)(2) of section 8001 of this title shall formulate and implement all 

departmental policies and procedures to carry out this chapter and 

the other programs described in such subsection. 

(2) The employees of the Department administering chapter 43 of 

this title shall be administratively and functionally responsible to 

the Deputy Under Secretary for Employment, Training, and Transition. 

(b) PROGRAM FUNCTIONS.—The Secretary shall carry out the following functions: 

(1) Except as expressly provided otherwise, carry out all provisions of this chapter and chapter 43 of this title through the 

øAssistant Secretary of Labor for Veterans’ Employment and 

Training¿ Deputy Under Secretary for Employment, Training, 

and Transition and administer through øsuch Assistant Secretary¿ such Deputy Under Secretary all programs under the 


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jurisdiction of the Secretary for the provision of employment 

and training services designed to meet the needs of all veterans and persons eligible for services furnished under this 

chapter. 

(2) In order to make maximum use of available resources in 

meeting such needs, encourage all such programs, and all 

grantees and contractors under such programs to enter into cooperative arrangements with private industry and business 

concerns (including small business concerns owned by veterans 

or disabled veterans), educational institutions, trade associations, and labor unions. 

(3) Ensure that maximum effectiveness and efficiency are 

achieved in providing services and assistance to eligible veterans under all such programs by coordinating øand consulting 

with the Secretary of Veterans Affairs¿ with respect to (A) programs conducted under other provisions of this title, with particular emphasis on coordination of such programs with readjustment counseling activities carried out under section 1712A 

of this title, apprenticeship or other on-the-job training programs carried out under section 3687 of this title, and rehabilitation and training activities carried out under chapter 31 of 

this title and (B) determinations covering veteran population 

in a State. 

(4) Ensure that employment, training, and placement activities are carried out in coordination and cooperation with appropriate State public employment service officials. 

(5) Subject to subsection (c), make available for use in each 

State by grant or contract such funds as may be necessary to 

support— 

(A) disabled veterans’ outreach program specialists appointed under section 4103A(a)(1) of this title, 

(B) local veterans’ employment representatives assigned 

under section 4104(b) of this title, and 

(C) the reasonable expenses of such specialists and representatives described in subparagraphs (A) and (B), respectively, for training, travel, supplies, and other business 

expenses, including travel expenses and per diem for attendance at the National Veterans’ Employment and 

Training Services Institute established under section 4109 

of this title. 

(6) Monitor and supervise on a continuing basis the distribution and use of funds provided for use in the States under 

paragraph (5). 

(7) Establish, and update as appropriate, a comprehensive 

performance accountability system (as described in subsection 

(f)) and carry out annual performance reviews of veterans employment, training, and placement services provided through 

employment service delivery systems, including through disabled veterans’ outreach program specialists and through local 

veterans’ employment representatives in States receiving 

grants, contracts, or awards under this chapter. 

(8) With advice and assistance from the Advisory Committee 

on Veterans Employment, Training, and Employer Outreach 

established under section 4110 of this title, furnish information 

to employers (through meetings in person with hiring execuVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00169 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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tives of corporations and otherwise) with respect to the training and skills of veterans and disabled veterans, and the advantages afforded employers by hiring veterans with such 

training and skills, and to facilitate employment of veterans 

and disabled veterans through participation in labor exchanges 

(Internet-based and otherwise), and other means. 

(c) CONDITIONS FOR RECEIPT OF FUNDS.—(1) The distribution and 

use of funds under subsection (b)(5) in order to carry out sections 

4103A(a) and 4104(a) of this title shall be subject to the continuing 

supervision and monitoring of the Secretary and shall not be governed by the provisions of any other law, or any regulations prescribed thereunder, that are inconsistent with this section or section 4103A or 4104 of this title. 

(2)(A) A State shall submit to the Secretary an application for a 

grant or contract under subsection (b)(5). The application shall contain the following information: 

(i) A plan that describes the manner in which the State shall 

furnish employment, training, and placement services required 

under this chapter for the program year, including a description of— 

(I) duties assigned by the State to disabled veterans’ outreach program specialists and local veterans’ employment 

representatives consistent with the requirements of sections 4103A and 4104 of this title; 

(II) the manner in which such specialists and representatives are integrated in the employment service delivery 

systems in the State; and 

(III) the program of performance incentive awards described in section 4112 of this title in the State for the program year. 

(ii) The veteran population to be served. 

(iii) For each employee of the State who is assigned to perform the duties of a disabled veterans’ outreach program specialist or a local veterans’ employment representative under 

this chapter— 

(I) the date on which the employee is so assigned; and 

(II) whether the employee has satisfactorily completed 

such training by the National Veterans’ Employment and 

Training Services Institute as the Secretary requires for 

purposes of paragraph (8). 

(iv) Such additional information as the Secretary may require to make a determination with respect to awarding a 

grant or contract to the State. 

(B)(i) Subject to the succeeding provisions of this subparagraph, 

of the amount available under subsection (b)(5) for a fiscal year, 

the Secretary shall make available to each State with an application approved by the Secretary an amount of funding in proportion 

to the number of veterans seeking employment using such criteria 

as the Secretary may establish in regulation, including civilian 

labor force and unemployment data, for the State on an annual 

basis. The proportion of funding shall reflect the ratio of— 

(I) the total number of veterans residing in the State that 

are seeking employment; to 

(II) the total number of veterans seeking employment in all 

States. 


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(ii) The Secretary shall phase in over the three fiscal-year period 

that begins on October 1, 2003, the manner in which amounts are 

made available to States under subsection (b)(5) and this subsection, as amended by the Jobs for Veterans Act. 

(iii) In carrying out this paragraph, the Secretary may establish 

minimum funding levels and hold-harmless criteria for States. 

(3)(A)(i) As a condition of a grant or contract under this section 

for a program year, in the case of a State that the Secretary determines has an entered-employment rate for veterans that is deficient for the preceding program year, the State shall develop a corrective action plan to improve that rate for veterans in the State. 

(ii) The State shall submit the corrective action plan to the Secretary for approval, and if approved, shall expeditiously implement 

the plan. 

(iii) If the Secretary does not approve a corrective action plan 

submitted by the State under clause (i), the Secretary shall take 

such steps as may be necessary to implement corrective actions in 

the State to improve the entered-employment rate for veterans in 

that State. 

(B) To carry out subparagraph (A), the Secretary shall establish 

in regulations a uniform national threshold entered-employment 

rate for veterans for a program year by which determinations of deficiency may be made under subparagraph (A). 

(C) In making a determination with respect to a deficiency under 

subparagraph (A), the Secretary shall take into account the applicable annual unemployment data for the State and consider other 

factors, such as prevailing economic conditions, that affect performance of individuals providing employment, training, and placement 

services in the State. 

(4) In determining the terms and conditions of a grant or contract under which funds are made available to a State in order to 

carry out section 4103A or 4104 of this title, the Secretary shall 

take into account— 

(A) the results of reviews, carried out pursuant to subsection 

(b)(7), of the performance of the employment, training, and 

placement service delivery system in the State, and 

(B) the monitoring carried out under this section. 

(5) Each grant or contract by which funds are made available to 

a State shall contain a provision requiring the recipient of the 

funds— 

(A) to comply with the provisions of this chapter; and 

(B) on an annual basis, to notify the Secretary of, and provide supporting rationale for, each nonveteran who is employed 

as a disabled veterans’ outreach program specialist and local 

veterans’ employment representative for a period in excess of 

6 months. 

(6) Each State shall coordinate employment, training, and placement services furnished to veterans and eligible persons under this 

chapter with such services furnished with respect to such veterans 

and persons under the Workforce Investment Act of 1998 and the 

Wagner-Peyser Act. 

(7) Of the amount of a grant or contract under which funds are 

made available to a State in order to carry out section 4103A or 

4104 of this title for any program year, one percent shall be for the 


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purposes of making cash awards under the program of performance 

incentive awards described in section 4112 of this title in the State. 

(8)(A) As a condition of a grant or contract under which funds 

are made available to a State in order to carry out section 4103A 

or 4104 of this title, the Secretary shall require the State to require 

each employee hired by the State who is assigned to perform the 

duties of a disabled veterans’ outreach program specialist or a local 

veterans’ employment representative under this chapter to satisfactorily complete training provided by the National Veterans’ Employment and Training Services Institute during the 18-month period that begins on the date on which the employee is so assigned. 

(B) For any employee described in subparagraph (A) who does 

not complete such training during such period, the Secretary may 

reduce by an appropriate amount the amount made available to the 

State employing that employee. 

(C) The Secretary may establish such reasonable exceptions to 

the completion of training otherwise required under subparagraph 

(A) as the Secretary considers appropriate. 

(9)(A) As a condition of a grant or contract under which funds 

are made available to a State in order to carry out section 4103A 

or 4104 of this title for any program year, the Secretary may require the State— 

(i) to demonstrate that when the State approves or denies a 

certification or license described in subparagraph (B) for a veteran the State takes into consideration any training received 

or experience gained by the veteran while serving on active 

duty in the Armed Forces; and 

(ii) to disclose to the Secretary in writing the following: 

(I) Criteria applicants must satisfy to receive a certification or license described in subparagraph (B) by the 

State. 

(II) A description of the standard practices of the State 

for evaluating training received by veterans while serving 

on active duty in the Armed Forces and evaluating the 

documented work experience of such veterans during such 

service for purposes of approving or denying a certification 

or license described in subparagraph (B). 

(III) Identification of areas in which training and experience described in subclause (II) fails to meet criteria described in subclause (I).′′ 

(B) A certification or license described in this subparagraph is 

any of the following: 

(i) A license to be a nonemergency medical professional. 

(ii) A license to be an emergency medical professional. 

(iii) A commercial driver’s license. 

(C) The Secretary shall share the information the Secretary receives under subparagraph (A)(ii) with the Secretary of Defense to 

help the Secretary of Defense improve training for military occupational specialties so that individuals who receive such training are 

able to receive a certification or license described in subparagraph 

(B) from a State. 

(D) The Secretary shall publish on the Internet website of the 

Department available to the public— 

(i) any guidance the Secretary gives the Secretary of Defense 

with respect to carrying out this section; and 


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(ii) any information the Secretary receives from a State pursuant to subparagraph (A). 

(d) PARTICIPATION IN OTHER FEDERALLY FUNDED JOB TRAINING

PROGRAMS.—The øAssistant Secretary of Labor for Veterans’ Employment and Training¿ Deputy Under Secretary for Employment, 

Training, and Transition shall promote and monitor participation 

of qualified veterans and eligible persons in employment and training opportunities under title I of the Workforce Innovation and Opportunity Act and other federally funded employment and training 

programs. 

(e) REGIONAL ADMINISTRATORS.—(1) The Secretary shall assign to 

each region for which the Secretary operates a regional office a representative of the Veterans’ Employment and Training Service to 

serve as the Regional Administrator for Veterans’ Employment and 

Training in such region. 

(2) Each such Regional Administrator shall carry out such duties 

as the Secretary may require to promote veterans employment and 

reemployment within the region that the Administrator serves. 

(f) ESTABLISHMENT OF PERFORMANCE STANDARDS AND OUTCOMES

MEASURES.—(1) The øAssistant Secretary of Labor for Veterans’ 

Employment and Training¿ Deputy Under Secretary for Employment, Training, and Transition shall establish and implement a 

comprehensive performance accountability system to measure the 

performance of employment service delivery systems, including disabled veterans’ outreach program specialists and local veterans’ 

employment representatives providing employment, training, and 

placement services under this chapter in a State to provide accountability of that State to the Secretary for purposes of subsection (c). 

(2) Such standards and measures shall— 

(A) be consistent with State performance accountability 

measures applicable under section 116(b) of the Workforce Innovation and Opportunity Act; and 

(B) be appropriately weighted to provide special consideration for placement of (i) veterans requiring intensive services 

(as defined in section 4101(9) of this title), such as special disabled veterans and disabled veterans, and (ii) veterans who enroll in readjustment counseling under section 1712A of this 

title. 

(g) AUTHORITY TO PROVIDE TECHNICAL ASSISTANCE TO STATES.— 

The Secretary may provide such technical assistance as the Secretary determines appropriate to any State that the Secretary determines has, or may have, an entered-employment rate in the 

State that is deficient, as determined under subsection (c)(3) with 

respect to a program year, including assistance in the development 

of a corrective action plan under that subsection. 

(h) CONSOLIDATION OF DISABLED VETERANS’ OUTREACH PROGRAM

SPECIALISTS AND VETERANS’ EMPLOYMENT REPRESENTATIVES.—The 

Secretary may allow the Governor of a State receiving funds under 

subsection (b)(5) to support specialists and representatives as described in such subsection to consolidate the functions of such specialists and representatives if— 

(1) the Governor determines, and the Secretary concurs, that 

such consolidation— 


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(A) promotes a more efficient administration of services 

to veterans with a particular emphasis on services to disabled veterans; and 

(B) does not hinder the provision of services to veterans 

and employers; and 

(2) the Governor submits to the Secretary a proposal therefor 

at such time, in such manner, and containing such information 

as the Secretary may require. 

* * * * * * * 

§ 4105. Cooperation of Federal agencies 

(a) All Federal agencies shall furnish the Secretary such records, 

statistics, or information as the Secretary may deem necessary or 

appropriate in administering the provisions of this chapter, and 

shall otherwise cooperate with the Secretary in providing continuous employment and training opportunities for eligible veterans 

and eligible persons. 

(b) For the purpose of assisting the Secretary øand the Secretary 

of Veterans Affairs¿ in identifying employers with potential job 

training opportunities under the Veterans’ Job Training Act (Public 

Law 98-77; 29 U.S.C. 1721 note) and otherwise in order to carry 

out this chapter, the Secretary of Defense shall, on the 15th day 

of each month, provide the Secretary øand the Secretary of Veterans Affairs¿ with updated information regarding any list maintained by the Secretary of Defense of employers participating in the 

National Committee for Employer Support of the Guard and Reserve. 

§ 4106. Estimate of funds for administration; authorization 

of appropriations 

(a) The Secretary shall estimate the funds necessary for the 

proper and efficient administration of this chapter and chapters 42 

and 43 of this title. Such estimated sums shall include the annual 

amounts necessary for salaries, rents, printing and binding, travel, 

and communications. Sums thus estimated shall be included as a 

special item in the annual budget for the øDepartment of Labor¿ 

Department. Estimated funds necessary for proper intensive services, placement, and training services to eligible veterans and eligible persons provided by the various State public employment service agencies shall each be separately identified in the budgets of 

those agencies as approved by the øDepartment of Labor¿ Department. Funds estimated pursuant to the first sentence of this subsection shall include amounts necessary in all of the States for the 

purposes specified in paragraph (5) of section 4102A(b) of this title 

and to fund the National Veterans’ Employment and Training 

Services Institute under section 4109 of this title and shall be approved by the Secretary only if the level of funding proposed is in 

compliance with such sections. Each budget submission with respect to such funds shall include a separate listing of the amount 

for the National Veterans’ Employment and Training Services Institute together with information demonstrating the compliance of 

such budget submission with the funding requirements specified in 

the preceding sentence. 


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(b) There are authorized to be appropriated such sums as may 

be necessary for the proper and efficient administration of this 

chapter. 

(c) In the event that the regular appropriations Act making appropriations for administrative expenses for the øDepartment of 

Labor¿ Department with respect to any fiscal year does not specify 

an amount for the purposes specified in subsection (b) of this section for that fiscal year, then of the amounts appropriated in such 

Act there shall be available only for the purposes specified in subsection (b) of this section such amount as was set forth in the budget estimate submitted pursuant to subsection (a) of this section. 

(d) Any funds made available pursuant to subsections (b) and (c) 

of this section shall not be available for any purpose other than 

those specified in such subsections. 

§ 4107. Administrative controls; annual report 

(a) The Secretary shall establish administrative controls for the 

following purposes: 

(1) To insure that each eligible veteran, especially veterans 

of the Vietnam era and disabled veterans, and each eligible 

person who requests assistance under this chapter shall 

promptly be placed in a satisfactory job or job training opportunity or receive some other specific form of assistance designed to enhance such veteran’s and eligible person’s employment prospects substantially, such as individual job development or intensive services. 

(2) To determine whether or not the employment service 

agencies in each State have committed the necessary staff to 

insure that the provisions of this chapter are carried out; and 

to arrange for necessary corrective action where staff resources 

have been determined by the Secretary to be inadequate. 

(b) The Secretary shall apply performance standards established 

under section 4102A(f) of this title for determining compliance by 

the State public employment service agencies with the provisions 

of this chapter and chapter 42 of this title. Not later than February 

1 of each year, the Secretary shall report to the Committees on 

Veterans’ Affairs of the Senate and the House of Representatives 

on the performance of States and organizations and entities carrying out employment, training, and placement services under this 

chapter, as measured under subsection (b)(7) of section 4102A of 

this title. In the case of a State that the Secretary determines has 

not met the minimum standard of performance (established by the 

Secretary under subsection (f) of such section), the Secretary shall 

include an analysis of the extent and reasons for the State’s failure 

to meet that minimum standard, together with the State’s plan for 

corrective action during the succeeding year. 

(c) Not later than February 1 of each year, the Secretary shall 

report to the Committees on Veterans’ Affairs of the Senate and 

the House of Representatives on the success during the preceding 

program year of the øDepartment of Labor¿ Department and its affiliated State employment service agencies in carrying out the provisions of this chapter and programs for the provision of employment and training services to meet the needs of eligible veterans 

and eligible persons. The report shall include— 


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(1) specification, by State and by age group, of the numbers 

of eligible veterans, disabled veterans, special disabled veterans, eligible persons, recently separated veterans (as defined 

in section 4211(6) of this title), and servicemembers 

transitioning to civilian careers who registered for assistance 

with, or who are identified as veterans by, the public employment service system and, for each of such categories, the numbers referred to and placed in permanent and other jobs, the 

numbers referred to and placed in jobs and job training programs supported by the Federal Government, the number who 

received intensive services, and the number who received 

some, and the number who received no, reportable service; 

(2) a comparison of the rate of entered employment (as determined in a manner consistent with State performance measures applicable under section 136(b) of the Workforce Investment Act of 1998) for each of the categories of veterans and 

persons described in paragraph (1) of this subsection with such 

rate of entered employment (as so determined) for nonveterans 

of the same age groups registered for assistance with the public employment system in each State; 

(3) any determination made by the Secretary during the preceding fiscal year under section 4106 of this title or subsection 

(a)(2) of this section and a statement of the reasons for such 

determination; 

(4) a report on activities carried out during the preceding 

program year under section 4212(d) of this title; 

(5) a report on the operation during the preceding program 

year of programs for the provision of employment and training 

services designed to meet the needs of eligible veterans and eligible persons, including an evaluation of the effectiveness of 

such programs during such program year in meeting the requirements of section 4102A(b) of this title, the efficiency with 

which services were provided through such programs during 

such year, and such recommendations for further legislative 

action relating to veterans’ employment and training as the 

Secretary considers appropriate; 

(6) a report on the operation during the preceding program 

year of the program of performance incentive awards for quality employment services under section 4112 of this title; and 

(7) performance measures for the provision of assistance 

under this chapter, including— 

(A) the percentage of participants in programs under 

this chapter who find employment before the end of the 

first 90-day period following their completion of the program; 

(B) the percentage of participants described in subparagraph (A) who are employed during the first 180-day period following the period described in such subparagraph; 

(C) the median earnings of participants described in subparagraph (A) during the period described in such subparagraph; 

(D) the median earnings of participants described in subparagraph (B) during the period described in such subparagraph; and 


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(E) the percentage of participants in programs under 

this chapter who obtain a certificate, degree, diploma, licensure, or industry-recognized credential relating to the 

program in which they participated under this chapter 

during the third 90-day period following their completion 

of the program. 

ø§ 4108. Cooperation and coordination 

ø(a) In carrying out the Secretary’s responsibilities under this 

chapter, the Secretary shall from time to time consult with the Secretary of Veterans Affairs and keep the Secretary of Veterans Affairs fully advised of activities carried out and all data gathered 

pursuant to this chapter to insure maximum cooperation and coordination between the Department of Labor and the Department 

of Veterans Affairs. 

ø(b) The Secretary of Veterans Affairs shall provide to appropriate employment service offices and Department of Labor offices, 

as designated by the Secretary, on a monthly or more frequent 

basis, the name and address of each employer located in the areas 

served by such offices that offer a program of job training which 

has been approved by the Secretary of Veterans Affairs under section 7 of the Veterans’ Job Training Act (29 U.S.C. 1721 note).¿ 

* * * * * * * 

§ 4110. Advisory Committee on Veterans Employment, Training, and Employer Outreach 

(a)(1) There is hereby established within the øDepartment of 

Labor¿ Department an advisory committee to be known as the Advisory Committee on Veterans Employment, Training, and Employer Outreach. 

(2) The advisory committee shall— 

(A) assess the employment and training needs of veterans 

and their integration into the workforce; 

(B) determine the extent to which the programs and activities of the øDepartment of Labor¿ Department are meeting 

such needs; 

(C) assist the øAssistant Secretary of Labor for Veterans’ 

Employment and Training¿ Deputy Under Secretary for Employment, Training, and Transition in carrying out outreach 

activities to employers with respect to the training and skills 

of veterans and the advantages afforded employers by hiring 

veterans; 

(D) make recommendations to the Secretary, through the 

øAssistant Secretary of Labor for Veterans’ Employment and 

Training¿ Deputy Under Secretary for Employment, Training, 

and Transition, with respect to outreach activities and the employment and training of veterans; and 

(E) carry out such other activities that are necessary to make 

the reports and recommendations referred to in subsection (f) 

of this section. 

(b) The øSecretary of Labor¿ Secretary shall, on a regular basis, 

consult with and seek the advice of the advisory committee with respect to the matters referred to in subsection (a)(2) of this section. 


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(c)(1) The øSecretary of Labor¿ Secretary shall appoint at least 

12, but no more than 16, individuals to serve as members of the 

advisory committee as follows: 

(A) Seven individuals, one each from among representatives 

nominated by each of the following organizations: 

(i) The National Society of Human Resource Managers. 

(ii) The Business Roundtable. 

(iii) The National Association of State Workforce Agencies. 

(iv) The United States Chamber of Commerce. 

(v) The National Federation of Independent Business. 

(vi) A nationally recognized labor union or organization. 

(vii) The National Governors Association. 

(B) Not more than five individuals from among representatives nominated by veterans service organizations that have a 

national employment program. 

(C) Not more than five individuals who are recognized authorities in the fields of business, employment, training, rehabilitation, or labor and who are not employees of the øDepartment of Labor¿ Department. 

(2) A vacancy in the advisory committee shall be filled in the 

manner in which the original appointment was made. 

(d) The following, or their representatives, shall be ex officio, 

nonvoting members of the advisory committee: 

ø(1) The Secretary of Veterans Affairs.¿ 

ø(2)¿ (1) The Secretary of Defense. 

ø(3)¿ (2) The Director of the Office of Personnel Management. 

ø(4)¿ (3) The Assistant øSecretary of Labor¿ Secretary for 

Veterans Employment and Training. 

ø(5)¿ (4) The Assistant øSecretary of Labor¿ Secretary for 

Employment and Training. 

ø(6)¿ (5) The Administrator of the Small Business Administration. 

(e)(1) The advisory committee shall meet at least quarterly. 

(2) The øSecretary of Labor¿ Secretary shall appoint the chairman of the advisory committee who shall serve in that position for 

no more than 2 consecutive years. 

(3)(A) Members of the advisory committee shall serve without 

compensation. 

(B) Members of the advisory committee shall be allowed reasonable and necessary travel expenses, including per diem in lieu of 

subsistence, at rates authorized for persons serving intermittently 

in the Government service in accordance with the provisions of subchapter I of chapter 57 of title 5 while away from their homes or 

regular places of business in the performance of the responsibilities 

of the advisory committee. 

(4) The øSecretary of Labor¿ Secretary shall provide staff and administrative support to the advisory committee through the Veterans Employment and Training Service. 

(f)(1) Not later than December 31 of each year, the advisory committee shall submit to the Secretary and to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report 

on the employment and training needs of veterans, with special 


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emphasis on disabled veterans, for the previous fiscal year. Each 

such report shall contain— 

(A) an assessment of the employment and training needs of 

veterans and their integration into the workforce; 

(B) an assessment of the outreach activities carried out by 

the øSecretary of Labor¿ Secretary to employers with respect 

to the training and skills of veterans and the advantages afforded employers by hiring veterans; 

(C) an evaluation of the extent to which the programs and 

activities of the øDepartment of Labor¿ Department are meeting such needs; 

(D) a description of the activities of the advisory committee 

during that fiscal year; 

(E) a description of activities that the advisory committee 

proposes to undertake in the succeeding fiscal year; and 

(F) any recommendations for legislation, administrative action, and other action that the advisory committee considers 

appropriate. 

(2) In addition to the annual reports made under paragraph (1), 

the advisory committee may make recommendations to the øSecretary of Labor¿ Secretary with respect to the employment and 

training needs of veterans at such times and in such manner as the 

advisory committee determines appropriate. 

(g) Within 60 days after receiving each annual report referred to 

in subsection (f)(1), the øSecretary of Labor¿ Secretary shall transmit to Congress a copy of the report together with any comments 

concerning the report that the Secretary considers appropriate. 

(h) The advisory committee shall continue until terminated by 

law. 

§ 4110A. Special unemployment study 

(a)(1) The Secretary, through the Bureau of Labor Statistics, 

shall conduct an annual study of unemployment among each of the 

following categories of veterans: 

(A) Veterans who were called to active duty while members 

of the National Guard or a Reserve Component. 

(B) Veterans who served in combat or in a war zone in the 

Post 9/11 Global Operations theaters. 

(C) Veterans who served on active duty during the Post 9/ 

11 Global Operations period who did not serve in the Post 9/ 

11 Global Operations theaters. 

(D) Veterans of the Vietnam era who served in the Vietnam 

theater of operations during the Vietnam era. 

(E) Veterans who served on active duty during the Vietnam 

era who did not serve in the Vietnam theater of operations. 

(F) Veterans discharged or released from active duty within 

four years of the applicable study. 

(G) Special disabled veterans. 

(2) Within each of the categories of veterans specified in paragraph (1), the Secretary shall include a separate category for 

women who are veterans. 

(b) The Secretary shall promptly submit to øCongress¿ the Committees on Veterans’ Affairs of the Senate and House of Representatives a report on the results of each study under subsection (a). 

(c) In this section: 


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(1) The term ‘‘Post 9/11 Global Operations period’’ means the 

period of the Persian Gulf War beginning on September 11, 

2001, and ending on the date thereafter prescribed by Presidential proclamation or law. 

(2) The term ‘‘Post 9/11 Global Operations theaters’’ means 

Afghanistan, Iraq, or any other theater in which the Global 

War on Terrorism Expeditionary Medal is awarded for service. 

* * * * * * * 

§ 4112. Performance incentive awards for quality employment, training, and placement services 

(a) CRITERIA FOR PERFORMANCE INCENTIVE AWARDS.—(1) For 

purposes of carrying out a program of performance incentive 

awards under section 4102A(c)(2)(A)(i)(III) of this title, the Secretary, acting through the øAssistant Secretary of Labor for Veterans’ Employment and Training¿ Deputy Under Secretary for Employment, Training, and Transition, shall establish criteria for performance incentive awards programs to be administered by States 

to— 

(A) encourage the improvement and modernization of employment, training, and placement services provided under this 

chapter; and 

(B) recognize eligible employees and employment service offices for excellence in the provision of such services or for having made demonstrable improvements in the provision of such 

services. 

(2) The Secretary shall establish such criteria in consultation 

with representatives of States, political subdivisions of States, and 

other providers of employment, training, and placement services 

under the Workforce Investment Act of 1998 consistent with the 

performance measures established under section 4102A(b)(7) of this 

title. 

(b) FORM OF AWARDS.—Under the criteria established by the Secretary for performance incentive awards to be administered by 

States, an award under such criteria may be a cash award or such 

other nonfinancial awards as the Secretary may specify. 

(c) ADMINISTRATION AND USE OF AWARDS.—Performance incentive cash awards under this section— 

(1) shall be made from amounts allocated from the grant or 

contract amount for a State for a program year under section 

4102A(c)(7) of this title; 

(2) in the case of such an award made to an eligible employee, shall be in addition to the regular pay of the recipient; 

and 

(3) in the case of such an award made to an employment 

service office, may be used by that employment service office 

for any purpose. 

(d) ELIGIBLE EMPLOYEE DEFINED.—In this section, the term ‘‘eligible employee’’ means any of the following: 

(1) A disabled veterans’ outreach program specialist. 

(2) A local veterans’ employment representative. 

(3) An individual providing employment, training, and placement services to veterans under the Workforce Investment Act 


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of 1998 or through an employment service delivery system (as 

defined in section 4101(7) of this title). 

* * * * * * * 

§ 4114. Credentialing and licensure of veterans: demonstration project 

(a) DEMONSTRATION PROJECT AUTHORIZED.—The øAssistant Secretary for Veterans’ Employment and Training¿ Deputy Under Secretary for Employment, Training, and Transition shall carry out a 

demonstration project on credentialing in accordance with this section for the purpose of facilitating the seamless transition of members of the Armed Forces from service on active duty to civilian employment. 

(b) IDENTIFICATION OF MILITARY OCCUPATIONAL SPECIALTIES AND

ASSOCIATED CREDENTIALS AND LICENSES.—(1) The øAssistant Secretary for Veterans’ Employment and Training¿ Deputy Under Secretary for Employment, Training, and Transition shall, in consultation with the øAssistant Secretary for Employment and Training¿ 

Deputy Under Secretary for Employment, Training, and Transition, 

select not more than five military occupational specialties for purposes of the demonstration project. Each specialty so selected by 

the øAssistant Secretary for Veterans’ Employment and Training¿ 

Deputy Under Secretary for Employment, Training, and Transition 

shall require a skill or set of skills that is required for civilian employment in an industry with high growth or high worker demand. 

(2) The øAssistant Secretary¿ Deputy Under Secretary shall enter 

into a contract with an appropriate entity representing a coalition 

of State governors to consult with appropriate Federal, State, and 

industry officials and identify requirements for credentials, certifications, and licenses that require a skill or set of skills required by 

a military occupational specialty selected under paragraph (1). 

(3) The øAssistant Secretary¿ Deputy Under Secretary shall analyze the requirements identified under paragraph (2) to determine 

which requirements may be satisfied by the skills, training, or experience acquired by members of the Armed Forces with the military occupational specialties selected under paragraph (1). 

(c) ELIMINATION OF BARRIERS TO CREDENTIALING AND LICENSURE.—The øAssistant Secretary¿ Deputy Under Secretary shall cooperate with appropriate Federal, State, and industry officials to 

reduce or eliminate any barriers to providing a credential, certification, or license to a veteran who acquired any skill, training, or 

experience while serving as a member of the Armed Forces with a 

military occupational specialty selected under subsection (b)(1) that 

satisfies the Federal and State requirements for the credential, certification, or license. 

(d) PERIOD OF PROJECT.—The period during which the øAssistant 

Secretary¿ Deputy Under Secretary shall carry out the demonstration project under this section shall be the two-year period beginning on the date of the enactment of the VOW to Hire Heroes Act 

of 2011. 


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§ 4115. Longitudinal study of job counseling, training, and 

placement service for veterans 

(a) STUDY REQUIRED.—(1) The Secretary shall enter into a contract with a non-government entity to conduct a longitudinal study 

of a statistically valid sample of each of the groups of individuals 

described in paragraph (2). The contract shall provide for the study 

of each such group over a period of at least five years. 

(2) The groups of individuals described in this paragraph are the 

following: 

(A) Veterans who have received intensive services. 

(B) Veterans who did not receive intensive services but who 

otherwise received services under this chapter. 

(C) Veterans who did not seek or receive services under this 

chapter. 

(3) The study required by this subsection shall include the collection of the following information for each individual who participates in the study: 

(A) The average number of months such individual served on 

active duty. 

(B) The distribution of disability ratings of such individual. 

(C) Any unemployment benefits received by such individual. 

(D) The average number of months such individual was employed during the year covered by the report. 

(E) The average annual starting and ending salaries of any 

such individual who was employed during the year covered by 

the report. 

(F) The average annual income of such individual. 

(G) The average total household income of such individual for 

the year covered by the report. 

(H) The percentage of such individuals who own their principal residences. 

(I) The employment status of such individual. 

(J) In the case of such an individual who received services 

under this chapter, whether the individual believes that any 

service provided by a disabled veterans’ outreach specialist or 

local veterans’ employment representative helped the individual 

to become employed. 

(K) In the case of such an individual who believes such a 

service helped the individual to become employed, whether— 

(i) the individual retained the position of employment for 

a period of one year or longer; and 

(ii) the individual believes such a service helped the individual to secure a higher wage or salary. 

(L) The conditions under which such individual was discharged or released from the Armed Forces. 

(M) Whether such individual has used any educational assistance to which the individual is entitled under this title. 

(N) Whether such individual has participated in a rehabilitation program under chapter 31 of this title. 

(O) Demographic information about such individual. 

(P) Such other information as the Secretary determines appropriate. 

(b) ANNUAL REPORTS.—(1) By not later than July 1 of each year 

covered by the study required under subsection (a), the Secretary 

shall submit to the Committees on Veterans’ Affairs of the Senate 


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and House of Representatives a report on the outcomes of the study 

during the preceding year. 

(2) The Secretary shall include in each annual report submitted 

under paragraph (1) any information the Secretary determines is 

necessary to determine the long-term outcomes of the individuals in 

the groups described in subsection (a)(2). 

* * * * * * * 

CHAPTER 42—EMPLOYMENT AND TRAINING OF 

VETERANS 

* * * * * * * 

§ 4211. Definitions 

As used in this chapter— 

(1) The term ‘‘special disabled veteran’’ means— 

(A) a veteran who is entitled to compensation (or who but for 

the receipt of military retired pay would be entitled to compensation) under laws administered by the Secretary for a disability (i) rated at 30 percent or more, or (ii) rated at 10 or 20 

percent in the case of a veteran who has been determined 

under section 3106 of this title to have a serious employment 

handicap; or 

(B) a person who was discharged or released from active 

duty because of service-connected disability. 

(2) The term ‘‘veteran of the Vietnam era’’ means an eligible veteran any part of whose active military, naval, or air service was 

during the Vietnam era. 

(3) The term ‘‘disabled veteran’’ means (A) a veteran who is entitled to compensation (or who but for the receipt of military retired 

pay would be entitled to compensation) under laws administered by 

the Secretary, or (B) a person who was discharged or released from 

active duty because of a service-connected disability. 

(4) The term ‘‘eligible veteran’’ means a person who— 

(A) served on active duty for a period of more than 180 days 

and was discharged or released therefrom with other than a 

dishonorable discharge; 

(B) was discharged or released from active duty because of 

a service-connected disability; 

(C) as a member of a reserve component under an order to 

active duty pursuant to section 12301(a), (d), or (g), 12302, or 

12304 of title 10, served on active duty during a period of war 

or in a campaign or expedition for which a campaign badge is 

authorized and was discharged or released from such duty with 

other than a dishonorable discharge; or 

(D) was discharged or released from active duty by reason of 

a sole survivorship discharge (as that term is defined in section 

1174(i) of title 10). 

(5) The term ‘‘department or agency’’ means any agency of the 

Federal Government or the District of Columbia, including any Executive agency as defined in section 105 of title 5 and the United 

States Postal Service and the Postal Regulatory Commission, and 

the term ‘‘department, agency, or instrumentality in the executive 

branch’’ includes the United States Postal Service and the Postal 

Regulatory Commission. 


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(6) The term ‘‘recently separated veteran’’ means any veteran 

during the three-year period beginning on the date of such veteran’s discharge or release from active duty. 

§ 4212. Veterans’ employment emphasis under Federal contracts 

(a)(1) Any contract in the amount of $100,000 or more entered 

into by any department or agency of the United States for the procurement of personal property and nonpersonal services (including 

construction) for the United States, shall contain a provision requiring that the party contracting with the United States take affirmative action to employ and advance in employment qualified 

covered veterans. This section applies to any subcontract in the 

amount of $100,000 or more entered into by a prime contractor in 

carrying out any such contract. 

(2) In addition to requiring affirmative action to employ such 

qualified covered veterans under such contracts and subcontracts 

and in order to promote the implementation of such requirement, 

the øSecretary of Labor¿ Secretary shall prescribe regulations requiring that— 

(A) each such contractor for each such contract shall immediately list all of its employment openings with the appropriate 

employment service delivery system (as defined in section 

4101(7) of this title), and may also list such openings with onestop career centers under the Workforce Investment Act of 

1998, other appropriate service delivery points, or America’s 

Job Bank (or any additional or subsequent national electronic 

job bank established by the øDepartment of Labor¿ Department), except that the contractor may exclude openings for executive and senior management positions and positions which 

are to be filled from within the contractor’s organization and 

positions lasting three days or less; 

(B) each such employment service delivery system shall give 

such qualified covered veterans priority in referral to such employment openings; and 

(C) each such employment service delivery system shall provide a list of such employment openings to States, political 

subdivisions of States, or any private entities or organizations 

under contract to carry out employment, training, and placement services under chapter 41 of this title. 

(3) In this section: 

(A) The term ‘‘covered veteran’’ means any of the following 

veterans: 

(i) Disabled veterans. 

(ii) Veterans who served on active duty in the Armed 

Forces during a war or in a campaign or expedition for 

which a campaign badge has been authorized. 

(iii) Veterans who, while serving on active duty in the 

Armed Forces, participated in a United States military operation for which an Armed Forces service medal was 

awarded pursuant to Executive Order No. 12985 (61 Fed. 

Reg. 1209). 

(iv) Recently separated veterans. 

(B) The term ‘‘qualified’’, with respect to an employment position, means having the ability to perform the essential funcVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00184 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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tions of the position with or without reasonable accommodation 

for an individual with a disability. 

(b) If any special disabled veteran or veteran of the Vietnam era 

believes any contractor of the United States has failed to comply 

or refuses to comply with the provisions of the contractor’s contract 

relating to the employment of veterans, the veteran may file a complaint with the øSecretary of Labor¿ Secretary, who shall promptly 

investigate such complaint and take appropriate action in accordance with the terms of the contract and applicable laws and regulations. 

(c) The øSecretary of Labor¿ Secretary shall include as part of 

the annual report required by section 4107(c) of this title the number of complaints filed pursuant to subsection (b) of this section, 

the actions taken thereon and the resolutions thereof. Such report 

shall also include the number of contractors listing employment 

openings, the nature, types, and number of positions listed and the 

number of veterans receiving priority pursuant to subsection 

(a)(2)(B). 

(d)(1) Each contractor to whom subsection (a) applies shall, in accordance with regulations which the øSecretary of Labor¿ Secretary 

shall prescribe, report at least annually to the øSecretary of Labor¿ 

Secretary on— 

(A) the number of employees in the workforce of such contractor, by job category and hiring location, and the number of 

such employees, by job category and hiring location, who are 

qualified covered veterans; 

(B) the total number of new employees hired by the contractor during the period covered by the report and the number 

of such employees who are qualified covered veterans; and 

(C) the maximum number and the minimum number of employees of such contractor during the period covered by the report. 

(2) The øSecretary of Labor¿ Secretary shall ensure that the administration of the reporting requirement under paragraph (1) is 

coordinated with respect to any requirement for the contractor to 

make any other report to the øSecretary of Labor¿ Secretary. (3) The øSecretary of Labor¿ Secretary shall establish and maintain an Internet website on which the øSecretary of Labor¿ Secretary shall publicly disclose the information reported to the øSecretary of Labor¿ Secretary by contractors under paragraph (1). 

* * * * * * * 

§ 4214. Employment within the Federal Government 

(a)(1) The United States has an obligation to assist veterans of 

the Armed Forces in readjusting to civilian life. The Federal Government is also continuously concerned with building an effective 

work force, and veterans constitute a uniquely qualified recruiting 

source. It is, therefore, the policy of the United States and the purpose of this section to promote the maximum of employment and 

job advancement opportunities within the Federal Government for 

qualified covered veterans (as defined in paragraph (2)(B)) who are 

qualified for such employment and advancement. 

(2) In this section: 

(A) The term ‘‘agency’’ has the meaning given the term ‘‘department or agency’’ in section 4211(5) of this title. 


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(B) The term ‘‘qualified covered veteran’’ means a veteran described in section 4212(a)(3) of this title. 

(b)(1) To further the policy stated in subsection (a) of this section, 

veterans referred to in paragraph (2) of this subsection shall be eligible, in accordance with regulations which the Office of Personnel 

Management shall prescribe, for veterans recruitment appointments, and for subsequent career-conditional appointments, under 

the terms and conditions specified in Executive Order Numbered 

11521 (March 26, 1970), except that— 

(A) such an appointment may be made up to and including 

the level GS-11 or its equivalent; 

(B) a veteran shall be eligible for such an appointment without regard to the number of years of education completed by 

such veteran; 

(C) a veteran who is entitled to disability compensation 

under the laws administered by the Department of Veterans 

Affairs or whose discharge or release from active duty was for 

a disability incurred or aggravated in line of duty shall be 

given a preference for such an appointment over other veterans; 

(D) a veteran receiving such an appointment shall— 

(i) in the case of a veteran with less than 15 years of 

education, receive training or education; and 

(ii) upon successful completion of the prescribed probationary period, acquire a competitive status; and 

(E) a veteran given an appointment under the authority of 

this subsection whose employment under the appointment is 

terminated within one year after the date of such appointment 

shall have the same right to appeal that termination to the 

Merit Systems Protection Board as a career or career-conditional employee has during the first year of employment. 

(2) This subsection applies to qualified covered veterans. 

(3) A qualified covered veteran may receive such an appointment 

at any time. 

(c) Each agency shall include in its affirmative action plan for the 

hiring, placement, and advancement of handicapped individuals in 

such agency as required by section 501(b) of the Rehabilitation Act 

of 1973 (29 U.S.C. 791(b)), a separate specification of plans (in accordance with regulations which the Office of Personnel Management shall prescribe in consultation with the Secretary, the øSecretary of Labor¿ Secretary, and the Secretary of Health and 

Human Services, consistent with the purposes, provisions, and priorities of such Act) to promote and carry out such affirmative action with respect to disabled veterans in order to achieve the purpose of this section. 

(d) The Office of Personnel Management shall be responsible for 

the review and evaluation of the implementation of this section and 

the activities of each agency to carry out the purpose and provisions of this section. The Office shall periodically obtain (on at least 

an annual basis) information on the implementation of this section 

by each agency and on the activities of each agency to carry out 

the purpose and provisions of this section. The information obtained shall include specification of the use and extent of appointments made by each agency under subsection (b) of this section and 


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the results of the plans required under subsection (c) of this section. 

(e)(1) The Office of Personnel Management shall submit to the 

Congress annually a report on activities carried out under this section. Each such report shall include the following information with 

respect to each agency: 

(A) The number of appointments made under subsection (b) 

of this section since the last such report and the grade levels 

in which such appointments were made. 

(B) The number of individuals receiving appointments under 

such subsection whose appointments were converted to career 

or career-conditional appointments, or whose employment 

under such an appointment has terminated, since the last such 

report, together with a complete listing of categories of causes 

of appointment terminations and the number of such individuals whose employment has terminated falling into each such 

category. 

(C) The number of such terminations since the last such report that were initiated by the agency involved and the number of such terminations since the last such report that were 

initiated by the individual involved. 

(D) A description of the education and training programs in 

which individuals appointed under such subsection are participating at the time of such report. 

(2) Information shown for an agency under clauses (A) through 

(D) of paragraph (1) of this subsection— 

(A) shall be shown for all veterans; and 

(B) shall be shown separately (i) for veterans who are entitled to disability compensation under the laws administered by 

the Secretary or whose discharge or release from active duty 

was for a disability incurred or aggravated in line of duty, and 

(ii) for other veterans. 

(f) Notwithstanding section 4211 of this title, the terms ‘‘veteran’’ 

and ‘‘disabled veteran’’ as used in subsection (a) of this section 

shall have the meaning provided for under generally applicable 

civil service law and regulations. 

(g) To further the policy stated in subsection (a) of this section, 

the Secretary may give preference to qualified covered veterans for 

employment in the Department as veterans’ benefits counselors 

and veterans’ claims examiners and in positions to provide the outreach services required under section 6303 of this title, to serve as 

veterans’ representatives at certain educational institutions as provided in section 6305 of this title, or to provide readjustment counseling under section 1712A of this title. 

§ 4215. Priority of service for veterans in Department of 

Labor job training programs 

(a) DEFINITIONS.—In this section: 

(1) The term ‘‘covered person’’ means any of the following individuals: 

(A) A veteran. 

(B) The spouse of any of the following individuals: 

(i) Any veteran who died of a service-connected disability. 


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(ii) Any member of the Armed Forces serving on active duty who, at the time of application for assistance 

under this section, is listed, pursuant to section 556 of 

title 37 and regulations issued thereunder, by the Secretary concerned in one or more of the following categories and has been so listed for a total of more than 

90 days: (I) missing in action, (II) captured in line of 

duty by a hostile force, or (III) forcibly detained or interned in line of duty by a foreign government or 

power. 

(iii) Any veteran who has a total disability resulting 

from a service-connected disability. 

(iv) Any veteran who died while a disability so evaluated was in existence. 

(2) The term ‘‘qualified job training program’’ means any 

workforce preparation, development, or delivery program or 

service that is directly funded, in whole or in part, by the øDepartment of Labor¿ Department and includes the following: 

(A) Any such program or service that uses technology to 

assist individuals to access workforce development programs (such as job and training opportunities, labor market information, career assessment tools, and related support services). 

(B) Any such program or service under the public employment service system, one-stop career centers, the 

Workforce Investment Act of 1998, a demonstration or 

other temporary program, and those programs implemented by States or local service providers based on Federal block grants administered by the øDepartment of 

Labor¿ Department. 

(C) Any such program or service that is a workforce development program targeted to specific groups. 

(3) The term ‘‘priority of service’’ means, with respect to any 

qualified job training program, that a covered person shall be 

given priority over nonveterans for the receipt of employment, 

training, and placement services provided under that program, 

notwithstanding any other provision of law. Such priority includes giving access to such services to a covered person before 

a non-covered person or, if resources are limited, giving access 

to such services to a covered person instead of a non-covered 

person. 

(b) ENTITLEMENT TO PRIORITY OF SERVICE.—(1) A covered person 

is entitled to priority of service under any qualified job training 

program if the person otherwise meets the eligibility requirements 

for participation in such program. 

(2) The øSecretary of Labor¿ Secretary may establish priorities 

among covered persons for purposes of this section to take into account the needs of disabled veterans and special disabled veterans, 

and such other factors as the Secretary determines appropriate. 

(c) ADMINISTRATION OF PROGRAMS AT STATE AND LOCAL LEVELS.—An entity of a State or a political subdivision of the State 

that administers or delivers services under a qualified job training 

program shall— 


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(1) provide information and priority of service to covered persons regarding benefits and services that may be obtained 

through other entities or service providers; and 

(2) ensure that each covered person who applies to or who 

is assisted by such a program is informed of the employmentrelated rights and benefits to which the person is entitled 

under this section. 

(d) ADDITION TO ANNUAL REPORT.—(1) In the annual report required under section 4107(c) of this title for the program year beginning in 2003 and each subsequent program year, the øSecretary 

of Labor¿ Secretary shall evaluate whether covered persons are receiving priority of service and are being fully served by qualified 

job training programs. Such evaluation shall include— 

(A) an analysis of the implementation of providing such priority at the local level; 

(B) whether the representation of veterans in such programs 

is in proportion to the incidence of representation of veterans 

in the labor market, including within groups that the Secretary 

may designate for priority under such programs, if any; and 

(C) performance measures, as determined by the Secretary, 

to determine whether veterans are receiving priority of service 

and are being fully served by qualified job training programs. 

(2) The Secretary may not use the proportion of representation 

of veterans described in subparagraph (B) of paragraph (1) as the 

basis for determining under such paragraph whether veterans are 

receiving priority of service and are being fully served by qualified 

job training programs. 

* * * * * * * 

CHAPTER 43—EMPLOYMENT AND REEMPLOYMENT 

RIGHTS OF MEMBERS OF THE UNIFORMED SERVICES 

* * * * * * * 

SUBCHAPTER I—GENERAL 

* * * * * * * 

§ 4303. Definitions 

For the purposes of this chapter— 

(1) The term ‘‘Attorney General’’ means the Attorney General 

of the United States or any person designated by the Attorney 

General to carry out a responsibility of the Attorney General 

under this chapter. 

(2) The term ‘‘benefit’’, ‘‘benefit of employment’’, or ‘‘rights 

and benefits’’ means the terms, conditions, or privileges of employment, including any advantage, profit, privilege, gain, status, account, or interest (including wages or salary for work 

performed) that accrues by reason of an employment contract 

or agreement or an employer policy, plan, or practice and includes rights and benefits under a pension plan, a health plan, 

an employee stock ownership plan, insurance coverage and 

awards, bonuses, severance pay, supplemental unemployment 

benefits, vacations, and the opportunity to select work hours or 

location of employment. 


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(3) The term ‘‘employee’’ means any person employed by an 

employer. Such term includes any person who is a citizen, national, or permanent resident alien of the United States employed in a workplace in a foreign country by an employer that 

is an entity incorporated or otherwise organized in the United 

States or that is controlled by an entity organized in the 

United States, within the meaning of section 4319(c) of this 

title. 

(4)(A) Except as provided in subparagraphs (B) and (C), the 

term ‘‘employer’’ means any person, institution, organization, 

or other entity that pays salary or wages for work performed 

or that has control over employment opportunities, including— 

(i) a person, institution, organization, or other entity to 

whom the employer has delegated the performance of employment-related responsibilities; 

(ii) the Federal Government; 

(iii) a State; 

(iv) any successor in interest to a person, institution, organization, or other entity referred to in this subparagraph; and 

(v) a person, institution, organization, or other entity 

that has denied initial employment in violation of section 

4311. 

(B) In the case of a National Guard technician employed 

under section 709 of title 32, the term ‘‘employer’’ means the 

adjutant general of the State in which the technician is employed. 

(C) Except as an actual employer of employees, an employee 

pension benefit plan described in section 3(2) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) 

shall be deemed to be an employer only with respect to the obligation to provide benefits described in section 4318. 

(D)(i) Whether the term ‘‘successor in interest’’ applies with 

respect to an entity described in subparagraph (A) for purposes 

of clause (iv) of such subparagraph shall be determined on a 

case-by-case basis using a multi-factor test that considers the 

following factors: 

(I) Substantial continuity of business operations. 

(II) Use of the same or similar facilities. 

(III) Continuity of work force. 

(IV) Similarity of jobs and working conditions. 

(V) Similarity of supervisory personnel. 

(VI) Similarity of machinery, equipment, and production 

methods. 

(VII) Similarity of products or services. 

(ii) The entity’s lack of notice or awareness of a potential or 

pending claim under this chapter at the time of a merger, acquisition, or other form of succession shall not be considered 

when applying the multi-factor test under clause (i). 

(5) The term ‘‘Federal executive agency’’ includes the United 

States Postal Service, the Postal Regulatory Commission, any 

nonappropriated fund instrumentality of the United States, 

any Executive agency (as that term is defined in section 105 

of title 5) other than an agency referred to in section 

2302(a)(2)(C)(ii) of title 5, and any military department (as 


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that term is defined in section 102 of title 5) with respect to 

the civilian employees of that department. 

(6) The term ‘‘Federal Government’’ includes any Federal executive agency, the legislative branch of the United States, and 

the judicial branch of the United States. 

(7) The term ‘‘health plan’’ means an insurance policy or contract, medical or hospital service agreement, membership or 

subscription contract, or other arrangement under which 

health services for individuals are provided or the expenses of 

such services are paid. 

(8) The term ‘‘notice’’ means (with respect to subchapter II) 

any written or verbal notification of an obligation or intention 

to perform service in the uniformed services provided to an employer by the employee who will perform such service or by the 

uniformed service in which such service is to be performed. 

(9) The term ‘‘qualified’’, with respect to an employment position, means having the ability to perform the essential tasks 

of the position. 

(10) The term ‘‘reasonable efforts’’, in the case of actions required of an employer under this chapter, means actions, including training provided by an employer, that do not place an 

undue hardship on the employer. 

ø(11) Notwithstanding section 101, the term ‘‘Secretary’’ 

means the Secretary of Labor or any person designated by such 

Secretary to carry out an activity under this chapter.¿ 

(12) The term ‘‘seniority’’ means longevity in employment together with any benefits of employment which accrue with, or 

are determined by, longevity in employment. 

(13) The term ‘‘service in the uniformed services’’ means the 

performance of duty on a voluntary or involuntary basis in a 

uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, a 

period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any such duty, and a period for 

which a person is absent from employment for the purpose of 

performing funeral honors duty as authorized by section 12503 

of title 10 or section 115 of title 32. 

(14) The term ‘‘State’’ means each of the several States of the 

United States, the District of Columbia, the Commonwealth of 

Puerto Rico, Guam, the Virgin Islands, and other territories of 

the United States (including the agencies and political subdivisions thereof). 

(15) The term ‘‘undue hardship’’, in the case of actions taken 

by an employer, means actions requiring significant difficulty 

or expense, when considered in light of— 

(A) the nature and cost of the action needed under this 

chapter; 

(B) the overall financial resources of the facility or facilities involved in the provision of the action; the number of 

persons employed at such facility; the effect on expenses 

and resources, or the impact otherwise of such action upon 

the operation of the facility; 


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(C) the overall financial resources of the employer; the 

overall size of the business of an employer with respect to 

the number of its employees; the number, type, and location of its facilities; and 

(D) the type of operation or operations of the employer, 

including the composition, structure, and functions of the 

work force of such employer; the geographic separateness, 

administrative, or fiscal relationship of the facility or facilities in question to the employer. 

(16) The term ‘‘uniformed services’’ means the Armed Forces, 

the Army National Guard and the Air National Guard when 

engaged in active duty for training, inactive duty training, or 

full-time National Guard duty, the commissioned corps of the 

Public Health Service, and any other category of persons designated by the President in time of war or national emergency. 

* * * * * * * 

SUBCHAPTER II—EMPLOYMENT AND REEMPLOYMENT 

RIGHTS AND LIMITATIONS; PROHIBITIONS 

* * * * * * * 

§ 4317. Health plans 

(a)(1) In any case in which a person (or the person’s dependents) 

has coverage under a health plan in connection with the person’s 

position of employment, including a group health plan (as defined 

in section 607(1) of the Employee Retirement Income Security Act 

of 1974), and such person is absent from such position of employment by reason of service in the uniformed services, or such person 

becomes eligible for medical and dental care under chapter 55 of 

title 10 by reason of subsection (d) of section 1074 of that title, the 

plan shall provide that the person may elect to continue such coverage as provided in this subsection. The maximum period of coverage of a person and the person’s dependents under such an election shall be the lesser of— 

(A) the 24-month period beginning on the date on which the 

person’s absence begins; or 

(B) the day after the date on which the person fails to apply 

for or return to a position of employment, as determined under 

section 4312(e). 

(2) A person who elects to continue health-plan coverage under 

this paragraph may be required to pay not more than 102 percent 

of the full premium under the plan (determined in the same manner as the applicable premium under section 4980B(f)(4) of the Internal Revenue Code of 1986) associated with such coverage for the 

employer’s other employees, except that in the case of a person who 

performs service in the uniformed services for less than 31 days, 

such person may not be required to pay more than the employee 

share, if any, for such coverage. 

(3) In the case of a health plan that is a multiemployer plan, as 

defined in section 3(37) of the Employee Retirement Income Security Act of 1974, any liability under the plan for employer contributions and benefits arising under this paragraph shall be allocated— 

(A) by the plan in such manner as the plan sponsor shall 

provide; or 


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(B) if the sponsor does not provide— 

(i) to the last employer employing the person before the 

period served by the person in the uniformed services, or 

(ii) if such last employer is no longer functional, to the 

plan. 

(b)(1) Except as provided in paragraph (2), in the case of a person 

whose coverage under a health plan was terminated by reason of 

service in the uniformed services, or by reason of the person’s having become eligible for medical and dental care under chapter 55 

of title 10 by reason of subsection (d) of section 1074 of that title, 

an exclusion or waiting period may not be imposed in connection 

with the reinstatement of such coverage upon reemployment under 

this chapter if an exclusion or waiting period would not have been 

imposed under a health plan had coverage of such person by such 

plan not been terminated as a result of such service or eligibility. 

This paragraph applies to the person who is reemployed and to any 

individual who is covered by such plan by reason of the reinstatement of the coverage of such person. 

(2) Paragraph (1) shall not apply to the coverage of any illness 

or injury determined by the øSecretary of Veterans Affairs¿ Secretary to have been incurred in, or aggravated during, performance 

of service in the uniformed services. 

(3) In the case of a person whose coverage under a health plan 

is terminated by reason of the person having become eligible for 

medical and dental care under chapter 55 of title 10 by reason of 

subsection (d) of section 1074 of that title but who subsequently 

does not commence a period of active duty under the order to active 

duty that established such eligibility because the order is canceled 

before such active duty commences, the provisions of paragraph (1) 

relating to any exclusion or waiting period in connection with the 

reinstatement of coverage under a health plan shall apply to such 

person’s continued employment, upon the termination of such eligibility for medical and dental care under chapter 55 of title 10 that 

is incident to the cancellation of such order, in the same manner 

as if the person had become reemployed upon such termination of 

eligibility. 

* * * * * * * 

SUBCHAPTER III—PROCEDURES FOR ASSISTANCE, 

ENFORCEMENT, AND INVESTIGATION 

§ 4321. Assistance in obtaining reemployment or other employment rights or benefits 

The Secretary ø(through the Veterans’ Employment and Training 

Service)¿ shall provide assistance to any person with respect to the 

employment and reemployment rights and benefits to which such 

person is entitled under this chapter. In providing such assistance, 

the Secretary may request the assistance of existing Federal and 

State agencies engaged in similar or related activities and utilize 

the assistance of volunteers. 

* * * * * * * 

SUBCHAPTER IV—MISCELLANEOUS PROVISIONS 

* * * * * * * 


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§ 4332. Reports 

(a) ANNUAL REPORT BY SECRETARY.—The Secretary shall, after 

consultation with the Attorney General and the Special Counsel referred to in section 4324(a)(1), transmit to Congress not later than 

July 1 each year a report on matters for the fiscal year ending in 

the year before the year in which such report is transmitted as follows: 

(1) The number of cases reviewed by the Department øof 

Labor¿ under this chapter during the fiscal year for which the 

report is made. 

(2) The number of cases reviewed by the Secretary of Defense under the National Committee for Employer Support of 

the Guard and Reserve of the Department of Defense during 

the fiscal year for which the report is made. 

(3) The number of cases referred to the Attorney General or 

the Special Counsel pursuant to section 4323 or 4324, respectively, during such fiscal year and the number of actions initiated by the Office of Special Counsel before the Merit Systems 

Protection Board pursuant to section 4324 during such fiscal 

year. 

(4) The number of complaints filed by the Attorney General 

pursuant to section 4323 during such fiscal year. 

(5) The number of cases reviewed by the Secretary and the 

Secretary of Defense through the National Committee for Employer Support of the Guard and Reserve of the Department of 

Defense that involve the same person. 

(6) With respect to the cases reported on pursuant to paragraphs (1), (2), (3), (4), and (5)— 

(A) the number of such cases that involve a disabilityrelated issue; and 

(B) the number of such cases that involve a person who 

has a service-connected disability. 

(7) The nature and status of each case reported on pursuant 

to paragraph (1), (2), (3), (4), or (5). 

(8) With respect to the cases reported on pursuant to paragraphs (1), (2), (3), (4), and (5) the number of such cases that 

involve persons with different occupations or persons seeking 

different occupations, as designated by the Standard Occupational Classification System. 

(9) An indication of whether there are any apparent patterns 

of violation of the provisions of this chapter, together with an 

explanation thereof. 

(10) Recommendations for administrative or legislative action that the Secretary, the Attorney General, or the Special 

Counsel considers necessary for the effective implementation of 

this chapter, including any action that could be taken to encourage mediation, before claims are filed under this chapter, 

between employers and persons seeking employment or reemployment. 

(b) QUARTERLY REPORTS.— 

(1) QUARTERLY REPORT BY SECRETARY.—Not later than 30 

days after the end of each fiscal quarter, the Secretary shall 

submit to Congress, the Secretary of Defense, the Attorney 

General, and the Special Counsel a report setting forth, for the 

previous full quarter, the following: 


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(A) The number of cases for which the Secretary did not 

meet the requirements of section 4322(f) of this title. 

(B) The number of cases for which the Secretary received 

a request for a referral under paragraph (1) of section 

4323(a) of this title but did not make such referral within 

the time period required by such paragraph. 

(2) QUARTERLY REPORT BY ATTORNEY GENERAL.—Not later 

than 30 days after the end of each fiscal quarter, the Attorney 

General shall submit to Congress, the Secretary, the Secretary 

of Defense, and the Special Counsel a report setting forth, for 

the previous full quarter, the number of cases for which the Attorney General received a referral under paragraph (1) of section 4323(a) of this title but did not meet the requirements of 

paragraph (2) of section 4323(a) of this title for such referral. 

(3) QUARTERLY REPORT BY SPECIAL COUNSEL.—Not later 

than 30 days after the end of each fiscal quarter, the Special 

Counsel shall submit to Congress, the Secretary, the Secretary 

of Defense, and the Attorney General a report setting forth, for 

the previous full quarter, the number of cases for which the 

Special Counsel received a referral under paragraph (1) of section 4324(a) of this title but did not meet the requirements of 

paragraph (2)(B) of section 4324(a) of this title for such referral. 

(c) UNIFORM CATEGORIZATION OF DATA.—The Secretary shall coordinate with the Secretary of Defense, the Attorney General, and 

the Special Counsel to ensure that— 

(1) the information in the reports required by this section is 

categorized in a uniform way; and 

(2) the Secretary, the Secretary of Defense, the Attorney 

General, and the Special Counsel each have electronic access 

to the case files reviewed under this chapter by the Secretary, 

the Secretary of Defense, the Attorney General, and the Special Counsel with due regard for the provisions of section 552a 

of title 5. 

§ 4333. Outreach 

The Secretaryø, the Secretary of Defense, and the Secretary of 

Veterans Affairs¿ and the Secretary of Defense shall take such actions as such Secretaries determine are appropriate to inform persons entitled to rights and benefits under this chapter and employers of the rights, benefits, and obligations of such persons and such 

employers under this chapter. 

* * * * * * * 

PART IV—GENERAL ADMINISTRATIVE 

PROVISIONS 

* * * * * * * 

CHAPTER 63—OUTREACH ACTIVITIES 

* * * * * * * 


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§ 6306. Use of other agencies 

(a) In carrying out this chapter, the Secretary øshall arrange 

with the Secretary of Labor for the State employment service to 

match¿ shall ensure that the State employment service matches the 

particular qualifications of an eligible veteran or eligible dependent 

with an appropriate job or job training opportunity, including, 

where possible, arrangements for outstationing the State employment personnel who provide such assistance at appropriate facilities of the Department. 

(b) In carrying out this chapter, the Secretary shallø, in consultation with the Secretary of Labor,¿ actively seek to promote the development and establishment of employment opportunities, training opportunities, and other opportunities for veterans, with particular emphasis on the needs of veterans with service-connected 

disabilities and other eligible veterans, taking into account applicable rates of unemployment and the employment emphases set forth 

in chapter 42 of this title. 

(c) In carrying out this chapter, the Secretary shall cooperate 

with and use the services of any Federal department or agency or 

any State or local governmental agency or recognized national or 

other organization. 

(d) In carrying out this chapter, the Secretary shall, where appropriate, make referrals to any Federal department or agency or 

State or local governmental unit or recognized national or other organization. 

(e) In carrying out this chapter, the Secretary may furnish available space and office facilities for the use of authorized representatives of such governmental unit or other organization providing 

services. 

(f) In carrying out this chapter, the Secretary shall conduct and 

provide for studies, in consultation with appropriate Federal departments and agencies, to determine the most effective program 

design to carry out the purposes of this chapter. 

* * * * * * * 

PART V—BOARDS, ADMINISTRATIONS, AND 

SERVICES 

Chap. Sec. 

71 Board of Veterans’ Appeals ....................................................................... 7101 

* * * * * * * 

80. Veterans Economic Opportunity and Transition Administration 8001 

* * * * * * * 

CHAPTER 73—ORGANIZATION AND FUNCTIONS 

* * * * * * * 

SUBCHAPTER II—GENERAL AUTHORITY AND ADMINISTRATION 

* * * * * * * 

7330B. Comptroller General audit of VHA budget. 

* * * * * * * 


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SUBCHAPTER I—ORGANIZATION 

* * * * * * * 

§ 7306. Office of the Under Secretary for Health 

(a) The Office of the Under Secretary for Health shall consist of 

the following: 

(1) The Deputy Under Secretary for Health, who shall be the 

principal assistant of the Under Secretary for Health and who 

shall be a qualified doctor of medicine. 

(2) The Associate Deputy Under Secretary for Health, who 

shall be an assistant to the Under Secretary for Health and 

the Deputy Under Secretary for Health and who shall be a 

qualified doctor of medicine. 

(3) Not to exceed eight Assistant Under Secretaries for 

Health. 

(4) Such Medical Directors as may be appointed to suit the 

needs of the Department, who shall be either a qualified doctor 

of medicine, doctor of podiatric medicine, or a qualified doctor 

of dental surgery or dental medicine. 

(5) A Director of Nursing Service, who shall be a qualified 

registered nurse and who shall be responsible to, and report directly to, the Under Secretary for Health for the operation of 

the Nursing Service. 

(6) A Director of Pharmacy Service, a Director of Dietetic 

Service, a Director of Podiatric Service, and a Director of Optometric Service, who shall be responsible to the Under Secretary for Health for the operation of their respective Services. 

(7) Such directors of such other professional or auxiliary 

services as may be appointed to suit the needs of the Department, who shall be responsible to the Under Secretary for 

Health for the operation of their respective services. 

(8) The Director of the National Center for Preventive 

Health, who shall be responsible to the Under Secretary for 

Health for the operation of the Center. 

(9) The Advisor on Physician Assistants, who shall be a physician assistant with appropriate experience and who shall advise the Under Secretary for Health on all matters relating to 

the utilization and employment of physician assistants in the 

Administration. 

(10) Such other personnel as may be authorized by this chapter. 

(b) Of the Assistant Under Secretaries for Health appointed 

under subsection (a)(3)— 

(1) not more than two may be persons qualified in the administration of health services who are not doctors of medicine, 

dental surgery, or dental medicines; 

(2) one shall be a qualified doctor of dental surgery or dental 

medicine who shall be directly responsible to the Under Secretary for Health for the operation of the Dental Service; and 

(3) one shall be a qualified physician trained in, or having 

suitable extensive experience in, geriatrics who shall be responsible to the Under Secretary for Health for evaluating all 

research, educational, and clinical health-care programs carried out in the Administration in the field of geriatrics and 


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who shall serve as the principal advisor to the Under Secretary 

for Health with respect to such programs. 

(c) Appointments under subsection (a) shall be made by the Secretary. In the case of appointments under paragraphs (1), (2), (3), 

(4), and (8) of that subsection, such appointments shall be made 

upon the recommendation of the Under Secretary for Health. 

(d) Except as provided in subsection (e)— 

(1) any appointment under this section shall be for a period 

of four years, with reappointment permissible for successive 

like periods, 

(2) any such appointment or reappointment may be extended 

by the Secretary for a period not in excess of three years, and 

(3) any person so appointed or reappointed or whose appointment or reappointment is extended shall be subject to removal 

by the Secretary for cause. 

(e)(1) The Secretary may designate a member of the Chaplain 

Service of the Department as Director, Chaplain Service, for a period of two years, subject to removal by the Secretary for cause. Redesignation under this subsection may be made for successive like 

periods or for any period not exceeding two years. 

(2) A person designated as Director, Chaplain Service, shall 

at the end of such person’s period of service as Director revert 

to the position, grade, and status which such person held immediately before being designated Director, Chaplain Service, 

and all service as Director, Chaplain Service, shall be creditable as service in the former position. 

(f) In organizing the Office and appointing persons to positions 

in the Office, the Under Secretary shall ensure that— 

(1) the Office is staffed so as to provide the Under Secretary, 

through a designated clinician in the appropriate discipline in 

each instance, with expertise and direct policy guidance on— 

(A) unique programs operated by the Administration to 

provide for the specialized treatment and rehabilitation of 

disabled veterans (including blind rehabilitation, care of 

spinal cord dysfunction, mental illness, and long-term 

care); and 

(B) the programs established under section 1712A of this 

title; and 

(2) with respect to the programs established under section 

1712A of this title, a clinician with appropriate expertise in 

those programs is responsible to the Under Secretary for the 

management of those programs. 

SUBCHAPTER II—GENERAL AUTHORITY AND 

ADMINISTRATION 

* * * * * * * 

§ 7330B. Comptroller General audit of VHA budget 

(a) IN GENERAL.—The Comptroller General of the United States 

shall periodically conduct an audit of elements of the budget of the 

Veterans Health Administration, including the budget formulation, 

execution, allocation, and use of funds. 

(b) SELECTION OF ELEMENTS.—(1) In selecting elements of the 

budget of the Veterans Health Administration for purposes of an 


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audit under subsection (a), the Comptroller General shall take into 

consideration— 

(A) knowledge of the programs of the Veterans Health Administration; 

(B) current issues; 

(C) national priorities; and 

(D) priorities expressed by the appropriate congressional committees. 

(2) Not later than 30 days before conducting an audit under subsection (a), the Comptroller General shall submit to the appropriate 

congressional committees notice of the elements selected by the 

Comptroller General for purposes of the audit. 

(c) APPROPRIATE CONGRESSIONAL COMMITTEES.—In this section, 

the term ‘‘appropriate congressional committees’’ means— 

(1) the Committee on Veterans’ Affairs, the Committee on Appropriations, and the Committee on the Budget of the Senate; 

and 

(2) the Committee on Veterans’ Affairs, the Committee on Appropriations, and the Committee on the Budget of the House of 

Representatives. 

* * * * * * * 

CHAPTER 74—VETERANS HEALTH ADMINISTRATION - 

PERSONNEL 

SUBCHAPTER I—APPOINTMENTS 

Sec. 

7401. Appointments in Veterans Health Administration. 

* * * * * * * 

7413. Treatment of podiatrists. 

* * * * * * * 

SUBCHAPTER VI—REGIONAL MEDICAL EDUCATION CENTERS 

* * * * * * * 

SUBCHAPTER I—APPOINTMENTS 

§ 7401. Appointments in Veterans Health Administration 

There may be appointed by the Secretary such personnel as the 

Secretary may find necessary for the health care of veterans (in addition to those in the Office of the Under Secretary for Health appointed under section 7306 of this title), as follows: 

(1) øPhysicians, dentists, podiatrists,¿ Physicians, dentists, 

chiropractors, optometrists, registered nurses, physician assistants, and expanded-function dental auxiliaries. 

(2) Scientific and professional personnel, such as microbiologists, chemists, and biostatisticians. 

(3) Audiologists, speech pathologists, and audiologist-speech 

pathologists, biomedical engineers, certified or registered respiratory therapists, dietitians, licensed physical therapists, licensed practical or vocational nurses, nurse assistants, medical 

instrument technicians, medical records administrators or specialists, medical records technicians, medical technologists, 

dental hygienists, dental assistants, nuclear medicine technologists, occupational therapists, occupational therapy assistVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00199 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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ants, kinesiotherapists, orthotist-prosthetists, pharmacists, 

pharmacy technicians, physical therapy assistants, prosthetic 

representatives, psychologists, diagnostic radiologic technologists, therapeutic radiologic technologists, social workers, 

marriage and family therapists, licensed professional mental 

health counselors, blind rehabilitation specialists, blind rehabilitation outpatient specialists, and such other classes of 

health care occupations as the Secretary considers necessary 

for the recruitment and retention needs of the Department 

subject to the following requirements: 

(A) Such other classes of health care occupations— 

(i) are not occupations relating to administrative, 

clerical, or physical plant maintenance and protective 

services; 

(ii) that would otherwise receive basic pay in accordance with the General Schedule under section 5332 of 

title 5; 

(iii) provide, as determined by the Secretary, direct 

patient care services or services incident to direct patient services; and 

(iv) would not otherwise be available to provide 

medical care or treatment for veterans. 

(B) Not later than 45 days before the Secretary appoints 

any personnel for a class of health care occupations that 

is not specifically listed in this paragraph, the Secretary 

shall submit to the Committee on Veterans’ Affairs of the 

Senate, the Committee on Veterans’ Affairs of the House 

of Representatives, and the Office of Management and 

Budget notice of such appointment. 

(C) Before submitting notice under subparagraph (B), 

the Secretary shall solicit comments from any labor organization representing employees in such class and include 

such comments in such notice. 

§ 7402. Qualifications of appointees 

(a) To be eligible for appointment to the positions in the Administration covered by subsection (b), a person must have the applicable qualifications set forth in that subsection. 

(b)(1) PHYSICIAN.—To be eligible to be appointed to a physician 

position, a person must— 

(A) hold the degree of doctor of medicine øor of doctor of osteopathy¿, doctor of osteopathy, or doctor of podiatric medicine 

from a college or university approved by the Secretary, 

(B) have completed an internship satisfactory to the Secretary, and 

(C) be licensed to practice medicine, surgery, podiatry, or osteopathy in a State. 

(2) DENTIST.—To be eligible to be appointed to a dentist position, 

a person must— 

(A) hold the degree of doctor of dental surgery or dental medicine from a college or university approved by the Secretary, 

and 

(B) be licensed to practice dentistry in a State. 

(3) NURSE.—To be eligible to be appointed to a nurse position, a 

person must— 


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(A) have successfully completed a full course of nursing in a 

recognized school of nursing, approved by the Secretary, and 

(B) be registered as a graduate nurse in a State. 

(4) DIRECTOR OF A HOSPITAL, DOMICILIARY, CENTER, OR OUT- PATIENT CLINIC.—To be eligible to be appointed to a director position, a person must have such business and administrative experience and qualifications as the Secretary shall prescribe. 

ø(5) PODIATRIST.—To be eligible to be appointed to a podiatrist 

position, a person must— 

ø(A) hold the degree of doctor of podiatric medicine, or its 

equivalent, from a school of podiatric medicine approved by the 

Secretary, and 

ø(B) be licensed to practice podiatry in a State.¿ 

ø(6)¿ (5) OPTOMETRIST.—To be eligible to be appointed to an optometrist position, a person must— 

(A) hold the degree of doctor of optometry, or its equivalent, 

from a school of optometry approved by the Secretary, and 

(B) be licensed to practice optometry in a State. 

ø(7)¿ (6) PHARMACIST.—To be eligible to be appointed to a pharmacist position, a person must— 

(A) hold the degree of bachelor of science in pharmacy, or its 

equivalent, from a school of pharmacy, approved by the Secretary, and 

(B) be registered as a pharmacist in a State. 

ø(8)¿ (7) PSYCHOLOGIST.—To be eligible to be appointed to a psychologist position, a person must— 

(A) hold a doctoral degree in psychology from a college or 

university approved by the Secretary, 

(B) have completed study for such degree in a specialty area 

of psychology and an internship which are satisfactory to the 

Secretary, and 

(C) be licensed or certified as a psychologist in a State, except that the Secretary may waive the requirement of licensure 

or certification for an individual psychologist for a period not 

to exceed two years on the condition that that psychologist provide patient care only under the direct supervision of a psychologist who is so licensed or certified. 

ø(9)¿ (8) SOCIAL WORKER.—To be eligible to be appointed to a social worker position, a person must— 

(A) hold a master’s degree in social work from a college or 

university approved by the Secretary; and 

(B) be licensed or certified to independently practice social 

work in a State, except that the Secretary may waive the requirement of licensure or certification for an individual social 

worker for a reasonable period of time recommended by the 

Under Secretary for Health. 

ø(10)¿ (9) MARRIAGE AND FAMILY THERAPIST.—To be eligible to 

be appointed to a marriage and family therapist position, a person 

must— 

(A) hold a master’s degree in marriage and family therapy, 

or a comparable degree in mental health, from a college or university approved by the Secretary; and 

(B) be licensed or certified to independently practice marriage and family therapy in a State, except that the Secretary 

may waive the requirement of licensure or certification for an 


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individual marriage and family therapist for a reasonable period of time recommended by the Under Secretary for Health. 

ø(11)¿ (10) LICENSED PROFESSIONAL MENTAL HEALTH COUNSELOR.—To be eligible to be appointed to a licensed professional 

mental health counselor position, a person must— 

(A) hold a master’s degree in mental health counseling, or a 

related field, from a college or university approved by the Secretary; and 

(B) be licensed or certified to independently practice mental 

health counseling. 

ø(12)¿ (11) CHIROPRACTOR.—To be eligible to be appointed to a 

chiropractor position, a person must— 

(A) hold the degree of doctor of chiropractic, or its equivalent, 

from a college of chiropractic approved by the Secretary; and 

(B) be licensed to practice chiropractic in a State. 

ø(13)¿ (12) PEER SPECIALIST.—To be eligible to be appointed to 

a peer specialist position, a person must— 

(A) be a veteran who has recovered or is recovering from a 

mental health condition; and 

(B) be certified by— 

(i) a not-for-profit entity engaged in peer specialist training as having met such criteria as the Secretary shall establish for a peer specialist position; or 

(ii) a State as having satisfied relevant State requirements for a peer specialist position. 

ø(14)¿ (13) OTHER HEALTH-CARE POSITIONS.—To be appointed as 

a physician assistant, expanded-function dental auxiliary, certified 

or registered respiratory therapist, licensed physical therapist, licensed practical or vocational nurse, occupational therapist, dietitian, microbiologist, chemist, biostatistician, medical technologist, 

dental technologist, or other position, a person must have such 

medical, dental, scientific, or technical qualifications as the Secretary shall prescribe. 

(c) Except as provided in section 7407(a) of this title, a person 

may not be appointed in the Administration to a position listed in 

section 7401(1) of this title unless the person is a citizen of the 

United States. 

(d) A person may not be appointed under section 7401(1) of this 

title to serve in the Administration in any direct patient-care capacity unless the Under Secretary for Health determines that the 

person possesses such basic proficiency in spoken and written 

English as will permit such degree of communication with patients 

and other health-care personnel as will enable the person to carry 

out the person’s health-care responsibilities satisfactorily. Any determination by the Under Secretary for Health under this subsection shall be in accordance with regulations which the Secretary 

shall prescribe. 

(e) A person may not serve as Chief of Staff of a Department 

health-care facility if the person is not serving on a full-time basis. 

(f) A person may not be employed in a position under subsection 

(b) (other than under paragraph (4) of that subsection) if— 

(1) the person is or has been licensed, registered, or certified 

(as applicable to such position) in more than one State; and 

(2) either— 


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(A) any of those States has terminated such license, registration, or certification for cause; or 

(B) the person has voluntarily relinquished such license, 

registration, or certification in any of those States after 

being notified in writing by that State of potential termination for cause. 

(g) The Secretary may enter into contracts with not-for-profit entities to provide— 

(1) peer specialist training to veterans; and 

(2) certification for veterans under subsection (b)(13)(B)(i). 

§ 7403. Period of appointments; promotions 

(a)(1) Appointments under this chapter of health-care professionals to whom this section applies may be made only after qualifications have been satisfactorily established in accordance with 

regulations prescribed by the Secretary, without regard to civilservice requirements. 

(2) This section applies to the following persons appointed under 

this chapter: 

(A) Physicians. 

(B) Dentists. 

ø(C) Podiatrists.¿ 

ø(D)¿ (C) Optometrists. 

ø(E)¿ (D) Nurses. 

ø(F)¿ (E) Physician assistants. 

ø(G)¿ (F) Expanded-function dental auxiliaries. 

ø(H)¿ (G) Chiropractors. 

(b)(1) Except as otherwise provided in this subsection, appointments described in subsection (a) shall be for a probationary period 

of two years. 

(2) With respect to the appointment of a registered nurse under 

this chapter, paragraph (1) shall apply with respect to such appointment regardless of whether such appointment is on a full-time 

basis or a part-time basis. 

(3) An appointment described in subsection (a) on a part-time 

basis of a person who has previously served on a full-time basis for 

the probationary period for the position concerned shall be without 

a probationary period. 

(4) The record of each person serving under such an appointment 

in the Medical, Dental, and Nursing Services shall be reviewed 

from time to time by a board, appointed in accordance with regulations of the Secretary. If such a board finds that such person is not 

fully qualified and satisfactory, such person shall be separated 

from the service. 

(c) Promotions of persons to whom this section applies shall be 

made only after examination given in accordance with regulations 

prescribed by the Secretary. Advancement within grade may be 

made in increments of the minimum rate of basic pay of the grade 

in accordance with regulations prescribed by the Secretary. 

(d) In determining eligibility for reinstatement in the Federal 

civil service of persons appointed to positions in the Administration 

under this chapter who at the time of appointment have a civilservice status, and whose employment in the Administration is terminated, the period of service performed in the Administration 


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shall be included in computing the period of service under applicable civil-service rules and regulations. 

(e) In accordance with regulations prescribed by the Secretary, 

the grade and annual rate of basic pay of a person to whom this 

section applies whose level of assignment is changed from a level 

of assignment in which the grade level is based on both the nature 

of the assignment and personal qualifications may be adjusted to 

the grade and annual rate of basic pay otherwise appropriate. 

(f)(1) Upon the recommendation of the Under Secretary for 

Health, the Secretary may— 

(A) use the authority in subsection (a) to establish the qualifications for and (subject to paragraph (2)) to appoint individuals to positions listed in section 7401(3) of this title; and 

(B) use the authority provided in subsection (c) for the promotion and advancement of Department employees serving in 

such positions. 

(2) In using such authority to appoint individuals to such positions, the Secretary shall apply the principles of preference for the 

hiring of veterans and other persons established in subchapter I of 

chapter 33 of title 5. 

(3) Notwithstanding any other provision of this title or other law, 

all matters relating to adverse actions, reductions-in-force, the applicability of the principles of preference referred to in paragraph 

(2), rights of part-time employees, disciplinary actions, and grievance procedures involving individuals appointed to such positions, 

whether appointed under this section or section 7405(a)(1)(B) of 

this title (including similar actions and procedures involving an 

employee in a probationary status), shall be resolved under the provisions of title 5 as though such individuals had been appointed 

under that title. 

(g)(1) The Secretary may appoint in the competitive civil service 

without regard to the provisions of subchapter I of chapter 33 of 

title 5 (other than sections 3303 and 3328 of such title) an individual who— 

(A) has a recognized degree or certificate from an accredited 

institution in a health-care profession or occupation; and 

(B) has successfully completed a clinical education program 

affiliated with the Department. 

(2) In using the authority provided by this subsection, the Secretary shall apply the principles of preference for the hiring of veterans and other persons established in subchapter I of chapter 33 

of title 5. 

(h)(1) If the Secretary uses the authority provided in subsection 

(c) for the promotion and advancement of an occupational category 

of employees described in section 7401(3) of this title, as authorized 

by subsection (f)(1)(B), the Secretary shall do so through one or 

more systems prescribed by the Secretary. Each such system shall 

be planned, developed, and implemented in collaboration with, and 

with the participation of, exclusive employee representatives of 

such occupational category of employees. 

(2)(A) Before prescribing a system of promotion and advancement 

of an occupational category of employees under paragraph (1), the 

Secretary shall provide to exclusive employee representatives of 

such occupational category of employees a written description of 

the proposed system. 


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(B) Not later than 30 days after receipt of the description of a 

proposed system under subparagraph (A), exclusive employee representatives may submit to the Secretary the recommendations, if 

any, of such exclusive employee representatives with respect to the 

proposed system. 

(C) The Secretary shall give full and fair consideration to any 

recommendations received under subparagraph (B) in deciding 

whether and how to proceed with a proposed system. 

(3) The Secretary shall implement immediately any part of a system of promotion and advancement under paragraph (1) that is 

proposed under paragraph (2) for which the Secretary receives no 

recommendations from exclusive employee representatives under 

paragraph (2). 

(4) If the Secretary receives recommendations under paragraph 

(2) from exclusive employee representatives on any part of a proposed system of promotion and advancement under that paragraph, 

the Secretary shall determine whether or not to accept the recommendations, either in whole or in part. If the Secretary determines not to accept all or part of the recommendations, the Secretary shall— 

(A) notify the congressional veterans’ affairs committees of 

the recommendations and of the portion of the recommendations that the Secretary has determined not to accept; 

(B) meet and confer with such exclusive employee representatives, for a period not less than 30 days, for purposes of attempting to reach an agreement on whether and how to proceed with the portion of the recommendations that the Secretary has determined not to accept; 

(C) at the election of the Secretary, or of a majority of such 

exclusive employee representatives who are participating in 

negotiations on such matter, employ the services of the Federal 

Mediation and Conciliation Service during the period referred 

to in subparagraph (B) for purposes of reaching such agreement; and 

(D) if the Secretary determines that activities under subparagraph (B), (C), or both are unsuccessful at reaching such 

agreement and determines (in the sole and unreviewable discretion of the Secretary) that further meeting and conferral 

under subparagraph (B), mediation under subparagraph (C), or 

both are unlikely to reach such agreement— 

(i) notify the congressional veterans’ affairs committees 

of such determinations, identify for such committees the 

portions of the recommendations that the Secretary has 

determined not to accept, and provide such committees an 

explanation and justification for determining to implement 

the part of the system subject to such portions of the recommendations without regard to such portions of the recommendations; and 

(ii) commencing not earlier than 30 days after notice 

under clause (i), implement the part of the system subject 

to the recommendations that the Secretary has determined 

not to accept without regard to those recommendations. 

(5) If the Secretary and exclusive employee representatives reach 

an agreement under paragraph (4) providing for the resolution of 

a disagreement on one or more portions of the recommendations 


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that the Secretary had determined not to accept under that paragraph, the Secretary shall immediately implement such resolution. 

(6) In implementing a system of promotion and advancement 

under this subsection, the Secretary shall— 

(A) develop and implement mechanisms to permit exclusive 

employee representatives to participate in the periodic review 

and evaluation of the system, including peer review, and in 

any further planning or development required with respect to 

the system as a result of such review and evaluation; and 

(B) provide exclusive employee representatives appropriate 

access to information to ensure that the participation of such 

exclusive employee representative in activities under subparagraph (A) is productive. 

(7)(A) The Secretary may from time to time modify a system of 

promotion and advancement under this subsection. 

(B) In modifying a system, the Secretary shall take into account 

any recommendations made by the exclusive employee representatives concerned. 

(C) In modifying a system, the Secretary shall comply with paragraphs (2) through (5) and shall treat any proposal for the modification of a system as a proposal for a system for purposes of such 

paragraphs. 

(D) The Secretary shall promptly submit to the congressional veterans’ affairs committees a report on any modification of a system. 

Each report shall include— 

(i) an explanation and justification of the modification; and 

(ii) a description of any recommendations of exclusive employee representatives with respect to the modification and a 

statement whether or not the modification was revised in light 

of such recommendations. 

(8) In the case of employees who are not within a unit with respect to which a labor organization is accorded exclusive recognition, the Secretary may develop procedures for input from representatives under this subsection from any appropriate organization that represents a substantial percentage of such employees or, 

if none, in such other manner as the Secretary considers appropriate, consistent with the purposes of this subsection. 

(9) In this subsection, the term ‘‘congressional veterans’ affairs 

committees’’ means the Committees on Veterans’ Affairs of the Senate and the House of Representatives. 

§ 7404. Grades and pay scales 

(a)(1) The annual rates or ranges of rates of basic pay for positions provided in section 7306 of this title shall be prescribed from 

time to time by Executive order as authorized by chapter 53 of title 

5 or as otherwise authorized by law. 

(2) The pay of physicians and dentists serving in positions to 

which an Executive order applies under paragraph (1) shall be determined under subchapter III of this chapter instead of such Executive order. 

(3)(A) The rate of basic pay for a position to which an Executive 

order applies under paragraph (1) and is not described by paragraph (2) shall be set in accordance with section 5382 of title 5 as 

if such position were a Senior Executive Service position (as such 

term is defined in section 3132(a) of title 5). 


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(B) A rate of basic pay for a position may not be set under subparagraph (A) in excess of— 

(i) in the case the position is not described in clause (ii), the 

rate of basic pay payable for level III of the Executive Schedule; or 

(ii) in the case that the position is covered by a performance 

appraisal system that meets the certification criteria established by regulation under section 5307(d) of title 5, the rate 

of basic pay payable for level II of the Executive Schedule. 

(C) Notwithstanding the provisions of subsection (d) of section 

5307 of title 5, the Secretary may make any certification under 

that subsection instead of the Office of Personnel Management and 

without concurrence of the Office of Management and Budget. 

(b) The grades for positions provided for in paragraph (1) of section 7401 of this title shall be as follows. The annual ranges of 

rates of basic pay for those grades shall be prescribed from time 

to time by Executive order as authorized by chapter 53 of title 5 

or as otherwise authorized by law: 

PHYSICIAN AND DENTIST SCHEDULE 

Physician grade. 

Dentist grade. 

NURSE SCHEDULE 

Nurse V. 

Nurse IV. 

Nurse III. 

Nurse II. 

Nurse I. 

øCLINICAL PODIATRIST, CHIROPRACTOR, AND OPTOMETRIST SCHEDULE¿ CLINICAL CHIROPRACTOR 

AND OPTOMETRIST SCHEDULE 

Chief grade. 

Senior grade. 

Intermediate grade. 

Full grade. 

Associate grade. 

(c) Notwithstanding the provisions of section 7425(a) of this title, 

a person appointed under section 7306 of this title who is not eligible for pay under subchapter III shall be deemed to be a career appointee for the purposes of sections 4507 and 5384 of title 5. 

(d) Except as provided under subsection (e), subchapter III, and 

section 7457 of this title, pay for positions for which basic pay is 

paid under this section may not be paid at a rate in excess of the 

rate of basic pay authorized by section 5316 of title 5 for positions 

in Level V of the Executive Schedule. 

(e) The position of Chief Nursing Officer, Office of Nursing Services, shall be exempt from the provisions of section 7451 of this 

title and shall be paid at a rate determined by the Secretary, not 

to exceed the maximum rate established for the Senior Executive 

Service under section 5382 of title 5. 

* * * * * * * 

§ 7409. Contracts for scarce medical specialist services 

(a) The Secretary may enter into contracts with institutions and 

persons described in subsection (b) to provide scarce medical specialist services at Department facilities. Such services may include 


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the services of physicians, dentists, øpodiatrists,¿ optometrists, 

chiropractors, nurses, physician assistants, expanded-function dental auxiliaries, technicians, and other medical support personnel. 

(b) Institutions and persons with whom the Secretary may enter 

into contracts under subsection (a) are the following: 

(1) Schools and colleges of medicine, osteopathy, dentistry, 

podiatry, optometry, and nursing. 

(2) Clinics. 

(3) Any other group or individual capable of furnishing such 

scarce medical specialist services. 

* * * * * * * 

§ 7413. Treatment of podiatrists 

For purposes of this chapter, the term ‘‘physician’’ includes a podiatrist. 

SUBCHAPTER II—COLLECTIVE BARGAINING AND 

PERSONNEL ADMINISTRATION 

§ 7421. Personnel administration: in general 

(a) Notwithstanding any law, Executive order, or regulation, the 

Secretary shall prescribe by regulation the hours and conditions of 

employment and leaves of absence of employees appointed under 

any provision of this chapter in positions in the Veterans Health 

Administration listed in subsection (b). 

(b) Subsection (a) refers to the following positions: 

(1) Physicians. 

(2) Dentists. 

ø(3) Podiatrists.¿ 

ø(4)¿ (3) Optometrists. 

ø(5)¿ (4) Registered nurses. 

ø(6)¿ (5) Physician assistants. 

ø(7)¿ (6) Expanded-duty dental auxiliaries. 

ø(8)¿ (7) Chiropractors. 

* * * * * * * 

CHAPTER 77—VETERANS BENEFITS ADMINISTRATION 

SUBCHAPTER I—ORGANIZATION; GENERAL 

§ 7701. Organization of the Administration 

(a) There is in the Department of Veterans Affairs a Veterans 

Benefits Administration. The primary function of the Veterans 

Benefits Administration is the administration of nonmedical benefits programs of the Department which provide assistance, other 

than assistance related to Economic Opportunity and Transition, to 

veterans and their dependents and survivors. 

(b) The Veterans Benefits Administration is under the Under 

Secretary for Benefits, who is directly responsible to the Secretary 

for the operations of the Administration. The Under Secretary for 

Benefits may be referred to as the Chief Benefits Director. 

§ 7703. Functions of the Administration 

The Veterans Benefits Administration is responsible for the administration of the following programs of the Department: 


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(1) Compensation and pension programs. 

ø(2) Vocational rehabilitation and educational assistance programs. 

ø(3) Veterans’ housing loan programs.¿ 

ø(4)¿ (2) Veterans’ and servicemembers’ life insurance programs. 

ø(5)¿ (3) Outreach programs and other veterans’ services 

programs. 

* * * * * * * 

CHAPTER 80—VETERANS ECONOMIC OPPORTUNITY AND 

TRANSITION ADMINISTRATION 

Sec. 

8001. Organization of Administration. 

8002. Functions of Administration. 

§ 8001. Organization of Administration 

(a) VETERANS ECONOMIC OPPORTUNITY AND TRANSITION ADMINISTRATION There is in the Department of Veterans Affairs a Veterans 

Economic Opportunity and Transition Administration. The primary 

function of the Veterans Economic Opportunity and Transition Administration is the administration of the programs of the Department that provide assistance related to economic opportunity to veterans and their dependents and survivors. 

(b) UNDER SECRETARY FOR ECONOMIC OPPORTUNITY AND TRANSITION The Veterans Economic Opportunity and Transition Administration is under the Under Secretary for Veterans Economic Opportunity and Transition, who is directly responsible to the Secretary 

for the operations of the Administration. 

(c) DEPUTY UNDER SECRETARIES The Veterans Economic Opportunity and Transition Administration shall have two Deputy Under 

Secretaries as follows: 

(1) The Deputy Under Secretary for Readjustment, who shall 

be the principal assistant of the Under Secretary for Veterans 

Economic Opportunity and Transition with respect to the programs specified in paragraphs (1) through (4) of section 8002 

of this title. 

(2) The Deputy Under Secretary for Employment, Training, 

and Transition, who shall be the principal assistant of the 

Under Secretary for Veterans Economic Opportunity and Transition with respect to the programs specified in paragraphs (5) 

through (9) of section 8002 of this title. 

§ 8002. Functions of AdministrationThe Veterans Economic 

Opportunity and Transition Administration is responsible for the administration of the following 

programs of the Department: 

(1) Vocational rehabilitation and employment programs. 

(2) Educational assistance programs. 

(3) Veterans’ housing loan and related programs. 

(4) The verification of small businesses owned and controlled 

by veterans pursuant to subsection (f) of section 8127 of this 

title, including the administration of the database of veteranowned businesses described in such subsection. 


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(5) Job counseling, training, and placement services for veterans under chapter 41 of this title. 

(6) Employment and training of veterans under chapter 42 of 

this title. 

(7) Administration of employment and employment rights of 

members of the uniformed services under chapter 43 of this 

title. 

(8) Homeless veterans reintegration programs under chapter 

20 of this title. 

(9) The Transition Assistance Program under section 1144 of 

title 10. 

(10) Any other program of the Department that the Secretary 

determines appropriate. 

* * * * * * * 

PART VI—ACQUISITION AND DISPOSITION OF 

PROPERTY 

* * * * * * * 

CHAPTER 81—ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT 

AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY 

* * * * * * * 

SUBCHAPTER II—PROCUREMENT AND SUPPLY 

* * * * * * * 

§ 8127. Small business concerns owned and controlled by 

veterans: contracting goals and preferences 

(a) CONTRACTING GOALS.—(1) In order to increase contracting opportunities for small business concerns owned and controlled by 

veterans and small business concerns owned and controlled by veterans with service-connected disabilities, the Secretary shall— 

(A) establish a goal for each fiscal year for participation in 

Department contracts (including subcontracts) by small business concerns owned and controlled by veterans who are not 

veterans with service-connected disabilities in accordance with 

paragraph (2); and 

(B) establish a goal for each fiscal year for participation in 

Department contracts (including subcontracts) by small business concerns owned and controlled by veterans with serviceconnected disabilities in accordance with paragraph (3). 

(2) The goal for a fiscal year for participation under paragraph 

(1)(A) shall be determined by the Secretary. 

(3) The goal for a fiscal year for participation under paragraph 

(1)(B) shall be not less than the Government-wide goal for that fiscal year for participation by small business concerns owned and 

controlled by veterans with service-connected disabilities under section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 

(4) The Secretary shall establish a review mechanism to ensure 

that, in the case of a subcontract of a Department contract that is 


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counted for purposes of meeting a goal established pursuant to this 

section, the subcontract was actually awarded to a business concern that may be counted for purposes of meeting that goal. 

(b) USE OF NONCOMPETITIVE PROCEDURES FOR CERTAIN SMALL

CONTRACTS.—For purposes of meeting the goals under subsection 

(a), and in accordance with this section, in entering into a contract 

with a small business concern owned and controlled by veterans for 

an amount less than the simplified acquisition threshold (as defined in section 134 of title 41), a contracting officer of the Department may use procedures other than competitive procedures. 

(c) SOLE SOURCE CONTRACTS FOR CONTRACTS ABOVE SIMPLIFIED

ACQUISITION THRESHOLD.—For purposes of meeting the goals 

under subsection (a), and in accordance with this section, a contracting officer of the Department may award a contract to a small 

business concern owned and controlled by veterans using procedures other than competitive procedures if— 

(1) such concern is determined to be a responsible source 

with respect to performance of such contract opportunity; 

(2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 134 of title 41) but will not exceed $5,000,000; 

and 

(3) in the estimation of the contracting officer, the contract 

award can be made at a fair and reasonable price that offers 

best value to the United States. 

(d) USE OF RESTRICTED COMPETITION.—Except as provided in 

subsections (b) and (c), for purposes of meeting the goals under 

subsection (a), and in accordance with this section, a contracting officer of the Department shall award contracts on the basis of competition restricted to small business concerns owned and controlled 

by veterans if the contracting officer has a reasonable expectation 

that two or more small business concerns owned and controlled by 

veterans will submit offers and that the award can be made at a 

fair and reasonable price that offers best value to the United 

States. 

(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.—A small business concern may be awarded a contract under this section only if 

the small business concern and the veteran owner of the small 

business concern are listed in the database of veteran-owned businesses maintained by the Secretary under subsection (f). 

(f) DATABASE OF VETERAN-OWNED BUSINESSES.—(1) Subject to 

paragraphs (2) through (6), the Secretary shall maintain a database of small business concerns owned and controlled by veterans 

and the veteran owners of such business concerns. 

(2)(A) To be eligible for inclusion in the database, such a veteran 

shall submit to the Secretary such information as the Secretary 

may require with respect to the small business concern or the veteran. Application for inclusion in the database shall constitute permission under section 552a of title 5 (commonly referred to as the 

Privacy Act) for the Secretary to access such personal information 

maintained by the Secretary as may be necessary to verify the information contained in the application. 

(B) If the Secretary receives an application for inclusion in the 

database from an individual whose status as a veteran cannot be 

verified because the Secretary does not maintain information with 


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respect to the veteran status of the individual, the Secretary may 

not include the small business concern owned and controlled by the 

individual in the database maintained by the Secretary until the 

Secretary receives such information as may be necessary to verify 

that the individual is a veteran. 

(3) Information maintained in the database shall be submitted on 

a voluntary basis by such veterans. 

(4) No small business concern may be listed in the database until 

the Secretary has verified that— 

(A) the small business concern is owned and controlled by 

veterans; and 

(B) in the case of a small business concern for which the person who owns and controls the concern indicates that the person is a veteran with a service-connected disability, that the 

person is a veteran with a service-connected disability. 

(5) The Secretary shall make the database available to all Federal departments and agencies and shall notify each such department and agency of the availability of the database. 

(6) If the Secretary determines that the public dissemination of 

certain types of information maintained in the database is inappropriate, the Secretary shall take such steps as are necessary to 

maintain such types of information in a secure and confidential 

manner. 

(g) ENFORCEMENT PENALTIES FOR MISREPRESENTATION.—(1) Any 

business concern that is determined by the Secretary to have willfully and intentionally misrepresented the status of that concern as 

a small business concern owned and controlled by veterans or as 

a small business concern owned and controlled by service-disabled 

veterans for purposes of this subsection shall be debarred from contracting with the Department for a period of not less than five 

years. 

(2) In the case of a debarment under paragraph (1), the Secretary 

shall commence debarment action against the business concern by 

not later than 30 days after determining that the concern willfully 

and intentionally misrepresented the status of the concern as described in paragraph (1) and shall complete debarment actions 

against such concern by not later than 90 days after such determination. 

(3) The debarment of a business concern under paragraph (1) includes the debarment of all principals in the business concern for 

a period of not less than five years. 

(h) TREATMENT OF BUSINESSES AFTER DEATH OF VETERANOWNER.—(1) Subject to paragraph (3), if the death of a veteran 

causes a small business concern to be less than 51 percent owned 

by one or more veterans, the surviving spouse of such veteran who 

acquires ownership rights in such small business concern shall, for 

the period described in paragraph (2), be treated as if the surviving 

spouse were that veteran for the purpose of maintaining the status 

of the small business concern as a small business concern owned 

and controlled by veterans. 

(2) The period referred to in paragraph (1) is the period beginning on the date on which the veteran dies and ending on the earliest of the following dates: 

(A) The date on which the surviving spouse remarries. 


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(B) The date on which the surviving spouse relinquishes an 

ownership interest in the small business concern. 

(C) The date that is ten years after the date of the veteran’s 

death. 

(3) Paragraph (1) only applies to a surviving spouse of a veteran 

with a service-connected disability rated as 100 percent disabling 

or who dies as a result of a service-connected disability. 

(i) PRIORITY FOR CONTRACTING PREFERENCES.—Preferences for 

awarding contracts to small business concerns shall be applied in 

the following order of priority: 

(1) Contracts awarded pursuant to subsection (b), (c), or (d) 

to small business concerns owned and controlled by veterans 

with service-connected disabilities. 

(2) Contracts awarded pursuant to subsection (b), (c), or (d) 

to small business concerns owned and controlled by veterans 

that are not covered by paragraph (1). 

(3) Contracts awarded pursuant to— 

(A) section 8(a) of the Small Business Act (15 U.S.C. 

637(a)); or 

(B) section 31 of such Act (15 U.S.C. 657a). 

(4) Contracts awarded pursuant to any other small business 

contracting preference. 

(j) APPLICABILITY OF REQUIREMENTS TO CONTRACTS.—(1) If after 

December 31, 2008, the Secretary enters into a contract, memorandum of understanding, agreement, or other arrangement with 

any governmental entity to acquire goods or services, the Secretary 

shall include in such contract, memorandum, agreement, or other 

arrangement a requirement that the entity will comply, to the maximum extent feasible, with the provisions of this section in acquiring such goods or services. 

(2) Nothing in this subsection shall be construed to supersede or 

otherwise affect the authorities provided under the Small Business 

Act (15 U.S.C. 631 et seq.). 

(k) ANNUAL REPORTS.—Not later than December 31 each year, 

the Secretary shall submit to Congress a report on small business 

contracting during the fiscal year ending in such year. Each report 

shall include, for the fiscal year covered by such report, the following: 

(1) The percentage of the total amount of all contracts 

awarded by the Department during that fiscal year that were 

awarded to small business concerns owned and controlled by 

veterans. 

(2) The percentage of the total amount of all such contracts 

awarded to small business concerns owned and controlled by 

veterans with service-connected disabilities. 

(3) The percentage of the total amount of all contracts 

awarded by each Administration of the Department during 

that fiscal year that were awarded to small business concerns 

owned and controlled by veterans. 

(4) The percentage of the total amount of all contracts 

awarded by each such Administration during that fiscal year 

that were awarded to small business concerns owned and controlled by veterans with service-connected disabilities. 

(l) LIMITATIONS ON SUBCONTRACTING.—(1)(A) The requirements 

applicable to a covered small business concern under section 46 of 


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the Small Business Act (15 U.S.C. 657s) shall apply with respect to 

a small business concern owned and controlled by a veteran with 

a service-connected disability or a small business concern owned 

and controlled by a veteran that is awarded a contract that is 

counted for purposes of meeting the goals under subsection (a). 

(B) For purposes of applying the requirements of section 46 of the 

Small Business Act (15 U.S.C. 657s) pursuant to subparagraph (A), 

the term ‘‘similarly situated entity’’ used in such section 46 includes 

a subcontractor for a small business concern owned and controlled 

by a veteran with a service-connected disability or a small business 

concern owned and controlled by a veteran described in such subparagraph (A). 

(2) Before awarding a contract that is counted for purposes of 

meeting the goals under subsection (a), the Secretary shall obtain 

from an offeror a certification that the offeror will comply with the 

requirements described in paragraph (1)(A) if awarded the contract. 

Such certification shall— 

(A) specify the exact performance requirements applicable 

under such paragraph; and 

(B) explicitly acknowledge that the certification is subject to 

section 1001 of title 18. 

(3) If the Secretary determines that a small business concern that 

is awarded a contract that is counted for purposes of meeting the 

goals under subsection (a) did not act in good faith with respect to 

the requirements described in paragraph (1)(A), the small business 

concern shall be subject to the penalties specified in— 

(A) section 16(g)(1) of the Small Business Act (15 U.S.C. 

645(g)(1)); and 

(B) section 1001 of title 18. 

(4)(A) The Director of Small and Disadvantaged Business Utilization for the Department, established pursuant to section 15(k) of the 

Small Business Act (15 U.S.C. 644(k)), and the Chief Acquisition 

Officer of the Department, established pursuant to section 1702 of 

title 41, shall jointly implement a process using the systems described in section 16(g)(2) of the Small Business Act (15 U.S.C. 

645(g)(2)), or any other systems available, to monitor compliance 

with this subsection. The Chief Acquisition Officer shall refer any 

violations of this subsection to the Inspector General of the Department. 

(B) Not later than November 30 of each year, the Inspector General shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report for the fiscal year preceding the fiscal year during which the report is submitted that includes, for the fiscal year covered by the report— 

(i) the number of referred violations received under subparagraph (A); and 

(ii) the disposition of such referred violations, including the 

number of small business concerns suspended or debarred from 

Federal contracting or referred to the Attorney General for prosecution. 

ø(l)¿ (m) DEFINITIONS.—In this section: 

(1) The term ‘‘small business concern’’ has the meaning given 

that term under section 3 of the Small Business Act (15 U.S.C. 

632). 


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(2) The term ‘‘small business concern owned and controlled 

by veterans’’ means a small business concern— 

(A)(i) not less than 51 percent of which is owned by one 

or more veterans or, in the case of a publicly owned business, not less than 51 percent of the stock of which is 

owned by one or more veterans; and 

(ii) the management and daily business operations of 

which are controlled by one or more veterans; or 

(B) not less than 51 percent of which is owned by one 

or more veterans with service-connected disabilities that 

are permanent and total who are unable to manage the 

daily business operations of such concern or, in the case of 

a publicly owned business, not less than 51 percent of the 

stock of which is owned by one or more such veterans. 

* * * * * * * 

SOCIAL SECURITY ACT 

* * * * * * * 

TITLE IV—GRANTS TO STATES FOR AID AND SERVICES TO 

NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES 

* * * * * * * 

PART D—CHILD SUPPORT AND ESTABLISHMENT OF PATERNITY

* * * * * * * 

SEC. 453A. STATE DIRECTORY OF NEW HIRES. 

(a) ESTABLISHMENT.— (1) IN GENERAL.— 

(A) REQUIREMENT FOR STATES THAT HAVE NO DIREC- TORY.—Except as provided in subparagraph (B), not later 

than October 1, 1997, each State shall establish an automated directory (to be known as the ‘‘State Directory of 

New Hires’’) which shall contain information supplied in 

accordance with subsection (b) by employers on each newly 

hired employee. 

(B) STATES WITH NEW HIRE REPORTING LAW IN EXISTENCE.—A State which has a new hire reporting law in existence on the date of the enactment of this section may 

continue to operate under the State law, but the State 

must meet the requirements of subsection (g)(2) not later 

than October 1, 1997, and the requirements of this section 

(other than subsection (g)(2)) not later than October 1, 

1998. 

(2) DEFINITIONS.—As used in this section: 

(A) EMPLOYEE.—The term ‘‘employee’’— 

(i) means an individual who is an employee within 

the meaning of chapter 24 of the Internal Revenue 

Code of 1986; and 

(ii) does not include an employee of a Federal or 

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mined that reporting pursuant to paragraph (1) with 

respect to the employee could endanger the safety of 

the employee or compromise an ongoing investigation 

or intelligence mission. 

(B) EMPLOYER.— 

(i) IN GENERAL.—The term ‘‘employer’’ has the 

meaning given such term in section 3401(d) of the Internal Revenue Code of 1986 and includes any governmental entity and any labor organization. 

(ii) LABOR ORGANIZATION.—The term ‘‘labor organization’’ shall have the meaning given such term in section 2(5) of the National Labor Relations Act, and includes any entity (also known as a ‘‘hiring hall’’) which 

is used by the organization and an employer to carry 

out requirements described in section 8(f)(3) of such 

Act of an agreement between the organization and the 

employer. 

(C) NEWLY HIRED EMPLOYEE.—The term ‘‘newly hired 

employee’’ means an employee who— 

(i) has not previously been employed by the employer; or 

(ii) was previously employed by the employer but 

has been separated from such prior employment for at 

least 60 consecutive days. 

(b) EMPLOYER INFORMATION.— 

(1) REPORTING REQUIREMENT.— 

(A) IN GENERAL.—Except as provided in subparagraphs 

(B) and (C), each employer shall furnish to the Directory 

of New Hires of the State in which a newly hired employee 

works, a report that contains the name, address, and social 

security number of the employee, the date services for remuneration were first performed by the employee, and the 

name and address of, and identifying number assigned 

under section 6109 of the Internal Revenue Code of 1986 

to, the employer. 

(B) MULTISTATE EMPLOYERS.—An employer that has employees who are employed in 2 or more States and that 

transmits reports magnetically or electronically may comply with subparagraph (A) by designating 1 State in which 

such employer has employees to which the employer will 

transmit the report described in subparagraph (A), and 

transmitting such report to such State. Any employer that 

transmits reports pursuant to this subparagraph shall notify the Secretary in writing as to which State such employer designates for the purpose of sending reports. 

(C) FEDERAL GOVERNMENT EMPLOYERS.—Any department, agency, or instrumentality of the United States shall 

comply with subparagraph (A) by transmitting the report 

described in subparagraph (A) to the National Directory of 

New Hires established pursuant to section 453. 

(2) TIMING OF REPORT.—Each State may provide the time 

within which the report required by paragraph (1) shall be 

made with respect to an employee, but such report shall be 

made— 


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(A) not later than 20 days after the date the employer 

hires the employee; or 

(B) in the case of an employer transmitting reports magnetically or electronically, by 2 monthly transmissions (if 

necessary) not less than 12 days nor more than 16 days 

apart. 

(c) REPORTING FORMAT AND METHOD.—Each report required by 

subsection (b) shall, to the extent practicable, be made on a W–4 

form or, at the option of the employer, an equivalent form, and may 

be transmitted by 1st class mail, magnetically, or electronically. 

(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.— The State shall have the option to set a State civil money penalty 

which shall not exceed— 

(1) $25 per failure to meet the requirements of this section 

with respect to a newly hired employee; or (2) $500 if, under State law, the failure is the result of a conspiracy between the employer and the employee to not supply 

the required report or to supply a false or incomplete report. 

(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be entered into the data base maintained by the State Directory of New 

Hires within 5 business days of receipt from an employer pursuant 

to subsection (b). 

(f) INFORMATION COMPARISONS.— (1) IN GENERAL.—Not later than May 1, 1998, an agency designated by the State shall, directly or by contract, conduct 

automated comparisons of the social security numbers reported 

by employers pursuant to subsection (b) and the social security 

numbers appearing in the records of the State case registry for 

cases being enforced under the State plan. 

(2) NOTICE OF MATCH.—When an information comparison 

conducted under paragraph (1) reveals a match with respect to 

the social security number of an individual required to provide 

support under a support order, the State Directory of New 

Hires shall provide the agency administering the State plan 

approved under this part of the appropriate State with the 

name, address, and social security number of the employee to 

whom the social security number is assigned, and the name 

and address of, and identifying number assigned under section 

6109 of the Internal Revenue Code of 1986 to, the employer. 

(g) TRANSMISSION OF INFORMATION.— 

(1) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO EMPLOYERS.—Within 2 business days after the date information 

regarding a newly hired employee is entered into the State Directory of New Hires, the State agency enforcing the employee’s child support obligation shall transmit a notice to the employer of the employee directing the employer to withhold from 

the income of the employee an amount equal to the monthly 

(or other periodic) child support obligation (including any past 

due support obligation) of the employee, unless the employee’s 

income is not subject to withholding pursuant to section 

466(b)(3). 

(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW

HIRES.— 

(A) NEW HIRE INFORMATION.—Within 3 business days 

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ployee is entered into the State Directory of New Hires, 

the State Directory of New Hires shall furnish the information to the National Directory of New Hires. 

(B) WAGE AND UNEMPLOYMENT COMPENSATION INFORMA- TION.—The State Directory of New Hires shall, on a quarterly basis, furnish to the National Directory of New Hires 

information concerning the wages and unemployment compensation paid to individuals, by such dates, in such format, and containing such information as the Secretary of 

Health and Human Services shall specify in regulations. 

(3) BUSINESS DAY DEFINED.—As used in this subsection, the 

term ‘‘business day’’ means a day on which State offices are 

open for regular business. 

(h) OTHER USES OF NEW HIRE INFORMATION.— 

(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency administering the State plan approved under this part shall use 

information received pursuant to subsection (f)(2) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations, and 

may disclose such information to any agent of the agency that 

is under contract with the agency to carry out such purposes. 

(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—A 

State agency responsible for administering a program specified 

in section 1137(b) shall have access to information reported by 

employers pursuant to subsection (b) of this section for purposes of verifying eligibility for the program. 

(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORK- ERS’ COMPENSATION.—State agencies operating employment security and workers’ compensation programs shall have access 

to information reported by employers pursuant to subsection 

(b) for the purposes of administering such programs. 

(4) SECRETARY OF VETERANS AFFAIRS.—The Secretary of Veterans Affairs shall have access to information reported by employers pursuant to subsection (b) of this section. 

* * * * * * * 

VETERANS ACCESS, CHOICE, AND ACCOUNTABILITY 

ACT OF 2014 

* * * * * * * 

TITLE VII—OTHER VETERANS MATTERS 

SEC. 701. EXPANSION OF MARINE GUNNERY SERGEANT JOHN DAVID 

FRY SCHOLARSHIP. 

(a) EXPANSION OF ENTITLEMENT.—Subsection (b)(9) of section 

3311 of title 38, United States Code, is amended by inserting ‘‘or 

spouse’’ after ‘‘child’’. 

(b) LIMITATION AND ELECTION ON CERTAIN BENEFITS.—Subsection (f) of such section is amended— 

(1) by redesignating paragraph (2) as paragraph (4); and 

(2) by inserting after paragraph (1) the following new paragraphs: 


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‘‘(2) LIMITATION.—The entitlement of an individual to assistance under subsection (a) pursuant to paragraph (9) of subsection (b) because the individual was a spouse of a person described in such paragraph shall expire on the earlier of— 

‘‘(A) the date that is 15 years after the date on which the 

person died; or 

‘‘(B) the date on which the individual remarries. 

‘‘(3) ELECTION ON RECEIPT OF CERTAIN BENEFITS.—A surviving spouse entitled to assistance under subsection (a) pursuant to paragraph (9) of subsection (b) who is also entitled to 

educational assistance under chapter 35 of this title may not 

receive assistance under both this section and such chapter, 

but shall make an irrevocable election (in such form and manner as the Secretary may prescribe) under which section or 

chapter to receive educational assistance.’’. 

(c) CONFORMING AMENDMENT.—Section 3321(b)(4) of such title is 

amended— 

(1) by striking ‘‘an individual’’ and inserting ‘‘a child’’; and 

(2) by striking ‘‘such individual’s’’ each time it appears and 

inserting ‘‘such child’s’’. 

ø(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to a quarter, semester, or term, as applicable, commencing on or after January 1, 2015.¿ 

(d) APPLICABILITY.— 

(1) IN GENERAL.—The amendments made by this section shall 

apply with respect to a quarter, semester, or term, as applicable, 

commencing on or after January 1, 2015. 

(2) DEATHS THAT OCCURRED BETWEEN SEPTEMBER 11, 2001, 

AND DECEMBER 31, 2005.—For purposes of section 3311(f)(2) of 

title 38, United States Code, any member of the Armed Forces 

who died during the period beginning on September 11, 2001, 

and ending on December 31, 2005, is deemed to have died on 

January 1, 2006. 

* * * * * * * 

SECTION 5003 OF THE POST-9/11 VETERANS 

EDUCATIONAL ASSISTANCE ACT OF 2008 

SEC. 5003. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE ARMED 

FORCES WHO SERVE AFTER SEPTEMBER 11, 2001. 

[Subsections (a) and (b) provide for amendments to law.] 

ø(c) APPLICABILITY TO INDIVIDUALS UNDER MONTGOMERY GI BILL

PROGRAM.— 

ø(1) INDIVIDUALS ELIGIBLE TO ELECT PARTICIPATION IN POST9/11 EDUCATIONAL ASSISTANCE.—An individual may elect to receive educational assistance under chapter 33 of title 38, 

United States Code (as added by subsection (a)), if such individual— 

ø(A) as of August 1, 2009— 

ø(i) is entitled to basic educational assistance under 

chapter 30 of title 38, United States Code, and has 

used, but retains unused, entitlement under that 

chapter; 


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ø(ii) is entitled to educational assistance under 

chapter 107, 1606, or 1607 of title 10, United States 

Code, and has used, but retains unused, entitlement 

under the applicable chapter; 

ø(iii) is entitled to basic educational assistance 

under chapter 30 of title 38, United States Code, but 

has not used any entitlement under that chapter; 

ø(iv) is entitled to educational assistance under 

chapter 107, 1606, or 1607 of title 10, United States 

Code, but has not used any entitlement under such 

chapter; 

ø(v) is a member of the Armed Forces who is eligible 

for receipt of basic educational assistance under chapter 30 of title 38, United States Code, and is making 

contributions toward such assistance under section 

3011(b) or 3012(c) of such title; or 

ø(vi) is a member of the Armed Forces who is not 

entitled to basic educational assistance under chapter 

30 of title 38, United States Code, by reason of an 

election under section 3011(c)(1) or 3012(d)(1) of such 

title; and 

ø(B) as of the date of the individual’s election under this 

paragraph, meets the requirements for entitlement to educational assistance under chapter 33 of title 38, United 

States Code (as so added). 

ø(2) CESSATION OF CONTRIBUTIONS TOWARD GI BILL.—Effective as of the first month beginning on or after the date of an 

election under paragraph (1) of an individual described by subparagraph (A)(v) of that paragraph, the obligation of the individual to make contributions under section 3011(b) or 3012(c) 

of title 38, United States Code, as applicable, shall cease, and 

the requirements of such section shall be deemed to be no 

longer applicable to the individual. 

ø(3) REVOCATION OF REMAINING TRANSFERRED ENTITLEMENT.— 

ø(A) ELECTION TO REVOKE.—If, on the date an individual 

described in subparagraph (A)(i) or (A)(iii) of paragraph (1) 

makes an election under that paragraph, a transfer of the 

entitlement of the individual to basic educational assistance under section 3020 of title 38, United States Code, is 

in effect and a number of months of the entitlement so 

transferred remain unutilized, the individual may elect to 

revoke all or a portion of the entitlement so transferred 

that remains unutilized. 

ø(B) AVAILABILITY OF REVOKED ENTITLEMENT.—Any entitlement revoked by an individual under this paragraph 

shall no longer be available to the dependent to whom 

transferred, but shall be available to the individual instead 

for educational assistance under chapter 33 of title 38, 

United States Code (as so added), in accordance with the 

provisions of this subsection. 

ø(C) AVAILABILITY OF UNREVOKED ENTITLEMENT.—Any 

entitlement described in subparagraph (A) that is not revoked by an individual in accordance with that subparagraph shall remain available to the dependent or dependVerDate Sep 11 2014 06:12 Dec 08, 2015 Jkt 059006 PO 00000 Frm 00220 Fmt 6659 Sfmt 6602 E:\HR\OC\HR358.XXX HR358

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ents concerned in accordance with the current transfer of 

such entitlement under section 3020 of title 38, United 

States Code. 

ø(4) POST-9/11 EDUCATIONAL ASSISTANCE.— ø(A) IN GENERAL.—Subject to subparagraph (B) and except as provided in paragraph (5), an individual making an 

election under paragraph (1) shall be entitled to educational assistance under chapter 33 of title 38, United 

States Code (as so added), in accordance with the provisions of such chapter, instead of basic educational assistance under chapter 30 of title 38, United States Code, or 

educational assistance under chapter 107, 1606, or 1607 of 

title 10, United States Code, as applicable. 

ø(B) LIMITATION ON ENTITLEMENT FOR CERTAIN INDIVIDUALS.—In the case of an individual making an election 

under paragraph (1) who is described by subparagraph 

(A)(i) of that paragraph, the number of months of entitlement of the individual to educational assistance under 

chapter 33 of title 38, United States Code (as so added), 

shall be the number of months equal to— 

ø(i) the number of months of unused entitlement of 

the individual under chapter 30 of title 38, United 

States Code, as of the date of the election, plus 

ø(ii) the number of months, if any, of entitlement revoked by the individual under paragraph (3)(A). 

ø(5) CONTINUING ENTITLEMENT TO EDUCATIONAL ASSISTANCE

NOT AVAILABLE UNDER 9/11 ASSISTANCE PROGRAM.— ø(A) IN GENERAL.— In the event educational assistance 

to which an individual making an election under paragraph (1) would be entitled under chapter 30 of title 38, 

United States Code, or chapter 107, 1606, or 1607 of title 

10, United States Code, as applicable, is not authorized to 

be available to the individual under the provisions of chapter 33 of title 38, United States Code (as so added), the individual shall remain entitled to such educational assistance in accordance with the provisions of the applicable 

chapter. 

ø(B) CHARGE FOR USE OF ENTITLEMENT.—The utilization 

by an individual of entitlement under subparagraph (A) 

shall be chargeable against the entitlement of the individual to educational assistance under chapter 33 of title 

38, United States Code (as so added), at the rate of one 

month of entitlement under such chapter 33 for each 

month of entitlement utilized by the individual under subparagraph (A) (as determined as if such entitlement were 

utilized under the provisions of chapter 30 of title 38, 

United States Code, or chapter 107, 1606, or 1607 of title 

10, United States Code, as applicable). 

ø(6) ADDITIONAL POST-9/11 ASSISTANCE FOR MEMBERS HAVING

MADE CONTRIBUTIONS TOWARD GI BILL.— ø(A) ADDITIONAL ASSISTANCE.—In the case of an individual making an election under paragraph (1) who is described by clause (i), (iii), or (v) of subparagraph (A) of that 

paragraph, the amount of educational assistance payable 

to the individual under chapter 33 of title 38, United 


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States Code (as so added), as a monthly stipend payable 

under paragraph (1)(B) of section 3313(c) of such title, or 

under paragraphs (2) through (7) of that section (as applicable), shall be the amount otherwise payable as a monthly stipend under the applicable paragraph increased by the 

amount equal to— 

ø(i) the total amount of contributions toward basic 

educational assistance made by the individual under 

section 3011(b) or 3012(c) of title 38, United States 

Code, as of the date of the election, multiplied by 

ø(ii) the fraction— 

ø(I) the numerator of which is— 

ø(aa) the number of months of entitlement 

to basic educational assistance under chapter 

30 of title 38, United States Code, remaining 

to the individual at the time of the election; 

plus 

ø(bb) the number of months, if any, of entitlement under such chapter 30 revoked by the 

individual under paragraph (3)(A); and 

ø(II) the denominator of which is 36 months. 

ø(B) MONTHS OF REMAINING ENTITLEMENT FOR CERTAIN

INDIVIDUALS.—In the case of an individual covered by subparagraph (A) who is described by paragraph (1)(A)(v), the 

number of months of entitlement to basic educational assistance remaining to the individual for purposes of subparagraph (A)(ii)(I)(aa) shall be 36 months. 

ø(C) TIMING OF PAYMENT.—The amount payable with respect to an individual under subparagraph (A) shall be 

paid to the individual together with the last payment of 

the monthly stipend payable to the individual under paragraph (1)(B) of section 3313(c) of title 38, United States 

Code (as so added), or under paragraphs (2) through (7) of 

that section (as applicable), before the exhaustion of the 

individual’s entitlement to educational assistance under 

chapter 33 of such title (as so added). 

ø(7) CONTINUING ENTITLEMENT TO ADDITIONAL ASSISTANCE

FOR CRITICAL SKILLS OR SPECIALITY AND ADDITIONAL SERVICE.— 

An individual making an election under paragraph (1)(A) who, 

at the time of the election, is entitled to increased educational 

assistance under section 3015(d) of title 38, United States 

Code, or section 16131(i) of title 10, United States Code, or 

supplemental educational assistance under subchapter III of 

chapter 30 of title 38, United States Code, shall remain entitled to such increased educational assistance or supplemental 

educational assistance in the utilization of entitlement to educational assistance under chapter 33 of title 38, United States 

Code (as so added), in an amount equal to the quarter, semester, or term, as applicable, equivalent of the monthly amount 

of such increased educational assistance or supplemental educational assistance payable with respect to the individual at 

the time of the election. 

ø(8) IRREVOCABILITY OF ELECTIONS.—An election under paragraph (1) or (3)(A) is irrevocable.¿ 


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(d) EFFECTIVE DATE.—This section and the amendments made by 

this section shall take effect on August 1, 2009. 


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1 Veterans Benefits Administration Office of Economic Opportunity, Employment Facts and 

Statistics, BLS Employment Data, October 2015. 

DISSENTING VIEWS 

We respectfully oppose two provisions of H.R. 3016, the Veterans 

Employment, Education, and Health Care Improvement Act of 

2015, as amended. 

TITLE II, SECTION 203

Section 203 would create within the Department of Veterans Affairs (VA) an entirely new bureaucracy, the Veterans Economic Opportunity and Transition Administration (VEOTA). H.R. 3016 

would consolidate various programs and transfer the Veterans Employment and Training Services (VETS) from the Department of 

Labor (DOL) to the VA. 

This section mandates a reorganization of two agencies of the Executive Branch without providing a concrete plan as to how the VA 

and DOL should make these significant changes. What’s more, as 

of November 6, 2015, veteran unemployment is at 3.9 percent, 

lower than the national unemployment rate of 5.0 percent and 

down from 6.2 percent last year.1 Mandating this reorganization is 

simply an attempt to fix something that clearly is not broken and 

risks major disruptions to our efforts to ensure that veterans find 

employment. 

This proposed change is opposed by Executive Branch. On September 16, 2015 VA Secretary Bob McDonald and DOL Secretary 

Tom Perez sent a joint letter articulating their belief that ‘‘the proposal to move VETS to VA undermines the collective progress we 

have made over the past several years to ensure that all veterans 

have access to good-paying civilian jobs.’’ The Secretaries emphasize the different but complementary roles and expertise that DOL 

and VA bring to veterans’ employment efforts, including DOL’s 

focus on issues relating to employment and training, and VA’s responsibility for veterans. 

The joint letter confirms that moving DOL VETS to VA would 

unnecessarily duplicate DOL resources within VA, thus adding on 

redundant layers of bureaucracy. ‘‘Rather than consolidating government programs, the proposal before the Committee separates 

veterans’ job training, job search, and job placement services from 

similar services being provided to non-veteran job seekers, thus 

creating a parallel workforce system [within VA] that ultimately 

will be more expensive and less effective.’’ Yet in spite of the Secretaries’ insistence that transferring DOL VETS to VA would ‘‘generate worse outcomes for veterans by not leveraging existing infrastructure and expertise,’’ this legislation persists in promoting this 

costly and misguided policy. 


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2 Report of the Military Compensation and Retirement Modernization Commission, Final Report. January 29, 2015. 

Moving DOL VETS to VA would give VA more responsibility that 

it does not want, while undermining DOL’s significant progress in 

helping veterans find quality employment. This apparent vote of 

confidence in VA’s ability to manage important programs and their 

corresponding budgets contradicts the often-heard narrative that 

VA is unable to effectively care for our nation’s veterans 

If there are problems with DOL VETS then it is Congress’s duty 

to exercise oversight and address those problems directly. Lacking 

a detailed and concrete plan as to how this reorganization would 

occur, including the manner in which these programs are funded 

and what happens to employees, there is simply not enough information to feel confident that VA would do a better job in this area 

than DOL. 

At the Full Committee markup on September 17, 2015, we supported an amendment introduced by Representative Titus to strike 

Section 203 and instead require three studies be conducted to carefully evaluate this issue. Such studies would allow Congress to better understand how the VA and DOL programs can help veterans 

in their job search, employment training, and career development. 

This amendment was defeated. 

TITLE III, SECTION 301

Section 301 would change the terms of eligibility for 

servicemembers who elect to transfer Post-9/11 GI Bill benefits to 

their dependents. Currently, servicemembers can elect to transfer 

their valuable Post-9/11 education benefits to dependents upon 

completing six years of military service and committing to four 

more years. Section 301 would change the transfer eligibility criteria to a completion of ten years plus a commitment of two more 

years. In addition, the provision would reduce GI Bill living stipend 

payments to children transferees by half. These changes are based 

on the recommendations in the 2015 Military Compensation and 

Retirement Modernization Commission report.2

These changes would go into effect 180 days after enactment. A 

current servicemember who had not served six years by that date 

would have to wait to hit the ten-year mark, even if he or she had 

been planning to elect to transfer education benefits at the six-year 

mark. This incomplete grandfathering of current servicemembers 

would create a reach-back that violates elements of the contract we 

made with the individuals who signed up to serve in our military 

and defend our country. 

These changes to GI Bill transferability exist largely to save 

money, not to meet the educational needs of veterans or their dependents. It is crucial to note that the savings would not be re-invested to enhance veterans’ access to quality higher education and 

job training. Rather, the savings would pay for the ill-advised policy to move DOL VETS to VA, among other provisions unrelated 

to veterans’ education. Chipping away at the hard-earned VA education benefits that veterans, servicemembers and their dependents 

rely on, without reinvesting in veterans’ education programs, would 

simply erode veterans’ educational opportunities and ultimately 


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make it more difficult for them to succeed in their transition to civilian life. 

Further, given that the Department of Defense (DOD) relies on 

GI Bill transferability as a recruitment and retention tool, these 

changes would be better decided after consideration and approval 

from the House Armed Services Committee. 

At the September 17, 2015 Full Committee markup, we supported an amendment offered by Representative Takano to remove 

Section 301 and keep in place the current rules governing Post9/11 GI Bill transferability. This amendment was defeated. 

CORRINE BROWN, 

Ranking Member. 

JULIA BROWNLEY. 

ANN KUSTER. 

MARK TAKANO. 

DINA TITUS. 

TIM WALZ. 

Æ 


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