I 

110TH CONGRESS 

1ST SESSION H. R. 2385 

To provide and enhance education, housing, and entrepreneur assistance for 

veterans who serve in the Armed Forces after September 11, 2001, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 17, 2007 

Mr. PATRICK J. MURPHY of Pennsylvania introduced the following bill; which 

was referred to the Committee on Veterans’ Affairs, and in addition to 

the Committees on Armed Services and Small Business, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To provide and enhance education, housing, and entrepreneur 

assistance for veterans who serve in the Armed Forces 

after September 11, 2001, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘21st Century GI Bill 

5 of Rights Act of 2007’’. 


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1 SEC. 2. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE 

2 ARMED FORCES WHO SERVE AFTER SEP3 TEMBER 11, 2001. 

4 (a) EDUCATIONAL ASSISTANCE AUTHORIZED.— 

5 (1) IN GENERAL.—Part III of title 38, United 

6 States Code, is amended by inserting after chapter 

7 32 the following new chapter: 

8 ‘‘CHAPTER 33—EDUCATIONAL ASSIST9 ANCE FOR SERVICE AFTER SEP10 TEMBER 11, 2001 

‘‘SUBCHAPTER I—DEFINITIONS

‘‘Sec. 

‘‘3301. Definitions. 

‘‘SUBCHAPTER II—EDUCATIONAL ASSISTANCE

‘‘3311. Educational assistance for service in the Armed Forces after September 

11, 2001: entitlement. 

‘‘3312. Educational assistance: duration. 

‘‘3313. Educational assistance: payment; amount. 

‘‘3314. Tutorial assistance. 

‘‘3315. Licensure and certification tests. 

‘‘SUBCHAPTER III—ADMINISTRATIVE PROVISIONS

‘‘3321. Time limitation for use of and eligibility for entitlement. 

‘‘3322. Bar to duplication of educational assistance benefits. 

‘‘3323. Administration. 

‘‘3324. Allocation of administration and costs. 

11 ‘‘SUBCHAPTER I—DEFINITIONS 

12 ‘‘§ 3301. Definitions 

13 ‘‘In this chapter: 

14 ‘‘(1) The term ‘active duty’ has the meaning 

15 given such term in sections 101 and 3002(7) of this 


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1 title and includes the limitations specified in section 

2 3002(6) of this title. 

3 ‘‘(2) The terms ‘program of education’, ‘Sec4 retary of Defense’, and ‘Selected Reserve’ have the 

5 meaning given such terms in section 3002 of this 

6 title. 

7 ‘‘SUBCHAPTER II—EDUCATIONAL ASSISTANCE 

8 ‘‘§ 3311. Educational assistance for service in the 

9 Armed Forces after September 11, 2001: 

10 entitlement 

11 ‘‘(a) ENTITLEMENT.—Except as provided in sub12 section (c), each individual described in subsection (b) is 

13 entitled to educational assistance under this chapter. 

14 ‘‘(b) COVERED INDIVIDUALS.—An individual de15 scribed in this subsection is any individual as follows: 

16 ‘‘(1) A member of the Armed Forces who, while 

17 serving on active duty in the Armed Forces after 

18 September 11, 2001, is deployed overseas. 

19 ‘‘(2) A member of the Armed Forces or a Re20 serve of the Armed Forces (including a member of 

21 the National Guard and a member of the Reserves) 

22 who— 

23 ‘‘(A) serves on active duty in the Armed 

24 Forces after September 11, 2001, for an aggre25 gate of at least two years; or 


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1 ‘‘(B) before completing the aggregate of 

2 service described in subparagraph (A) while 

3 serving on active duty in the Armed Forces 

4 after September 11, 2001, is discharged as de5 scribed in subsection (d) after that date. 

6 ‘‘(c) EXCEPTION FOR INDIVIDUALS WHO RECEIVE A

7 COMMISSION AS AN OFFICER UPON GRADUATION FROM

8 AN ACADEMY.—An individual who receives a commission 

9 as an officer in the Armed Forces upon graduation from 

10 the United States Military Academy, the United States 

11 Naval Academy, the United States Air Force Academy, 

12 the United States Merchant Marine Academy, or the 

13 Coast Guard Academy is not entitled to educational assist14 ance under this chapter. 

15 ‘‘(d) CERTAIN DISCHARGE OR RELEASE PROVIDING

16 EXCEPTION FROM SERVICE REQUIREMENTS.—A dis17 charge or release described in this subsection is a dis18 charge or release from service in the Armed Forces for— 

19 ‘‘(1) a service-connected disability; 

20 ‘‘(2) a medical condition which preexisted such 

21 service and which the Secretary determines is not 

22 service-connected; 

23 ‘‘(3) hardship; or 

24 ‘‘(4) a physical or mental condition that was 

25 not characterized as a disability and did not result 


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1 from the individual’s own willful misconduct but did 

2 interfere with the individual’s performance of duty, 

3 as determined by the Secretary of each military de4 partment in accordance with regulations prescribed 

5 by the Secretary of Defense. 

6 ‘‘§ 3312. Educational assistance: duration 

7 ‘‘Subject to section 3695 of this title, an individual 

8 entitled to educational assistance under section 3311 of 

9 this title is entitled to 36 months, which is the equivalent 

10 of four academic years, of educational assistance under 

11 section 3313 of this title. 

12 ‘‘§ 3313. Educational assistance: payment; amount 

13 ‘‘(a) PAYMENT.—The Secretary shall pay to each in14 dividual entitled to educational assistance under this chap15 ter who is pursuing an approved program of education 

16 (other than a program covered by subsections (e) and (f)) 

17 the amounts specified in subsection (c) to meet the ex18 penses of such individual’s subsistence, tuition, fees, and 

19 other educational costs for pursuit of such program of 

20 education. 

21 ‘‘(b) APPROVED PROGRAMS OF EDUCATION.—(1) 

22 Except as provided in paragraph (1), a program of edu23 cation is an approved program of education for purposes 

24 of this chapter if the program of education is approved 

25 for purposes of chapter 30 of this title. 


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1 ‘‘(2) A program of education to obtain a graduate 

2 degree is not an approved program of education for the 

3 purposes of this chapter. 

4 ‘‘(c) AMOUNT OF EDUCATIONAL ASSISTANCE.—(1) 

5 The amounts payable under this subsection for pursuit of 

6 an approved program of education are amounts as follows: 

7 ‘‘(A) An amount equal to the established 

8 charges (as determined in accordance with sub9 section (h)) for the program of education. 

10 ‘‘(B) Subject to paragraph (2), an amount 

11 equal to the room and board of the individual. 

12 ‘‘(2) The amount payable under paragraph (1)(B) for 

13 room and board of an individual may not exceed an 

14 amount equal to the standard dormitory fee, or such 

15 equivalent fee as the Secretary shall specify in regulations, 

16 which similarly circumstanced nonveterans enrolled in the 

17 program of education involved would be required to pay. 

18 ‘‘(d) FREQUENCY OF PAYMENT.—(1) Payment of the 

19 amounts payable under subsection (c)(1) for pursuit of a 

20 program of education shall be made at such time and with 

21 such frequency as the Secretary shall prescribe for pur22 poses of this chapter. Such payment may include payment 

23 in a lump-sum amount for the entire quarter, semester, 

24 or term, as applicable, of the program of education before 

25 the commencement of such quarter, semester, or term. 


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1 ‘‘(2) The Secretary shall prescribe in regulations 

2 methods for determining the number of months (including 

3 fractions thereof) of entitlement of an individual to edu4 cational assistance under this chapter that are chargeable 

5 under this chapter for payments of amounts in accordance 

6 with this subsection, including payments on a lump-sum 

7 basis in advance as authorized by paragraph (1). 

8 ‘‘(3) Payment of amounts described in paragraph (1) 

9 for pursuit of a program of education may not be made 

10 to an individual before the date of the enrollment of such 

11 individual in the program of education for which payment 

12 is sought by such individual. 

13 ‘‘(e) PROGRAMS OF EDUCATION PURSUED ON AC14 TIVE DUTY.—(1) Educational assistance is payable under 

15 this chapter for pursuit of an approved program of edu16 cation while on active duty. 

17 ‘‘(2) The amount of educational assistance payable 

18 under this chapter to an individual pursuing a program 

19 of education while on active duty is the lesser of— 

20 ‘‘(A) the established charges (as determined in 

21 accordance with subsection (h)) for the program of 

22 education; or 

23 ‘‘(B) the amount of the charges of the edu24 cational institution as elected by the individual in 

25 the manner specified in section 3014(b) of this title. 


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1 ‘‘(3) Payment of the amount payable under para2 graph (2) for pursuit of a program of education shall be 

3 made in a lump-sum amount for the entire quarter, semes4 ter, or term, as applicable, of the program of education 

5 before the commencement of such quarter, semester, or 

6 term. 

7 ‘‘(4) For each month (as determined pursuant to the 

8 methods prescribed under subsection (d)(2)) for which 

9 amounts are paid an individual under this subsection, the 

10 entitlement of the individual to educational assistance 

11 under this chapter shall be charged at the rate of one 

12 month for each such month. 

13 ‘‘(f) PROGRAMS OF EDUCATION PURSUED ON LESS

14 THAN HALF-TIME BASIS.—(1) Educational assistance is 

15 payable under this chapter for pursuit of an approved pro16 gram of education on less than half-time basis. 

17 ‘‘(2) The amount of educational assistance payable 

18 under this chapter to an individual pursuing a program 

19 of education on less than half-time basis is the established 

20 charges (as determined in accordance with subsection (h)) 

21 for the program of education. 

22 ‘‘(3) Payment of the amount payable under this chap23 ter to an individual for pursuit of a program of education 

24 on less than half-time basis shall be made in a lump-sum, 

25 and shall be made not later than the last day of the month 


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1 immediately following the month in which certification is 

2 received from the educational institution involved that the 

3 individual has enrolled in and is pursuing a program of 

4 education at the institution. 

5 ‘‘(4) For each month (as determined pursuant to the 

6 methods prescribed under subsection (d)(2)) for which 

7 amounts are paid an individual under this subsection, the 

8 entitlement of the individual to educational assistance 

9 under this chapter shall be charged at a percentage of a 

10 month equal to— 

11 ‘‘(A) the number of course hours borne by the 

12 individual in pursuit of the program of education in13 volved, divided by 

14 ‘‘(B) the number of course hours for full-time 

15 pursuit of such program of education. 

16 ‘‘(g) SPECIALIZED TRAINING AND CERTIFICATION

17 AND LICENSING PROGRAMS FOR VETERANS WITH SERV18 ICE-CONNECTED DISABILITIES.—(1) Educational assist19 ance is payable under this chapter for an approved pro20 gram of education that— 

21 ‘‘(A) consists of specialized training for vet22 erans with service-connected disabilities; 

23 ‘‘(B) is a certification program for veterans 

24 with service-connected disabilities; or 


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1 ‘‘(C) is a licensing program for veterans with 

2 service-connected disabilities. 

3 ‘‘(2) The amount of educational assistance payable 

4 under this chapter to an individual pursuing a program 

5 of education pursuant to paragraph (1) is the established 

6 charges (as determined in accordance with subsection (h)) 

7 for the program of education. 

8 ‘‘(h) ESTABLISHED CHARGES.—(1) Subject to the 

9 provisions of this subsection, in subsections (c), (e), (f), 

10 and (g) the term ‘established charges’, in the case of a 

11 program of education, means the actual charges (as deter12 mined pursuant to regulations prescribed by the Secretary 

13 in consultation with the Secretary of Education) for tui14 tion, fees (including required supplies, books, and equip15 ment), and other educational costs which similarly 

16 circumstanced nonveterans enrolled in the program of 

17 education would be required to pay. 

18 ‘‘(2) The maximum amount of charges payable for 

19 tuition under this subsection as part of the established 

20 charges for a program of education pursued by an indi21 vidual under subsections (c), (e), (f), and (g) may not ex22 ceed the national average amount of tuition regularly 

23 charged for full-time pursuit of programs of education at 

24 public and private institutions of higher education that 


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1 typically require 36 months, which is the equivalent of 

2 four academic years, to complete. 

3 ‘‘(3) Established charges shall be determined for pur4 poses of this subsection on the following basis: 

5 ‘‘(A) In the case of an individual enrolled in a 

6 program of education offered on a term, quarter, or 

7 semester basis, the tuition and fees charged the indi8 vidual for the term, quarter, or semester. 

9 ‘‘(B) In the case of an individual enrolled in a 

10 program of education not offered on a term, quarter, 

11 or semester basis, the tuition and fees charged the 

12 individual for the entire program of education. 

13 ‘‘§ 3314. Tutorial assistance 

14 ‘‘(a) IN GENERAL.—Subject to subsection (b), an in15 dividual entitled to educational assistance under this chap16 ter shall also be entitled to benefits provided an eligible 

17 veteran under section 3492 of this title. 

18 ‘‘(b) CONDITIONS.—The provision of benefits under 

19 subsection (a) shall be subject to the conditions applicable 

20 to an eligible veteran under section 3492 of this title. 

21 ‘‘(c) NO CHARGE AGAINST ENTITLEMENT.—Any 

22 benefits provided an individual under subsection (a) are 

23 in addition to any other educational assistance benefits 

24 provided the individual under this chapter. 


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1 ‘‘§ 3315. Licensure and certification tests 

2 ‘‘(a) IN GENERAL.—An individual entitled to edu3 cational assistance under this chapter shall also be entitled 

4 to payment for licensing or certification tests described in 

5 section 3452(b) of this title. 

6 ‘‘(b) NO CHARGE AGAINST ENTITLEMENT.—Any 

7 amount paid an individual under subsection (a) is in addi8 tion to any other educational assistance benefits provided 

9 the individual under this chapter. 

10 ‘‘SUBCHAPTER III—ADMINISTRATIVE 

11 PROVISIONS 

12 ‘‘§ 3321. Time limitation for use of and eligibility for 

13 entitlement 

14 ‘‘(a) IN GENERAL.—Except as otherwise provided in 

15 subsection (b), the period during which an individual enti16 tled to educational assistance under this chapter may use 

17 such individual’s entitlement expires at the end of the 10- 

18 year period beginning on the date of such individual’s last 

19 discharge or release from active duty. 

20 ‘‘(b) EXCEPTIONS.—(1) Subsections (b), (c), and (d) 

21 of section 3031 of this title shall apply with respect to 

22 the running of the 10-year period described in subsection 

23 (a) of this section in the same manner as such subsections 

24 apply under section 3031 of this title with respect to the 

25 running of the 10-year period described in section 3031(a) 

26 of this title. 


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1 ‘‘(2) Section 3031(f) of this title shall apply with re2 spect to the termination of an individual’s entitlement to 

3 educational assistance under this chapter in the same 

4 manner as such section applies to the termination of an 

5 individual’s entitlement to educational assistance under 

6 chapter 30 of this title, except that, in the administration 

7 of such section for purposes of this chapter, the reference 

8 to section 3013 of this title shall be deemed to be a ref9 erence to 3312 of this title. 

10 ‘‘§ 3322. Bar to duplication of educational assistance 

11 benefits 

12 ‘‘(a) IN GENERAL.—An individual entitled to edu13 cational assistance under this chapter who is also eligible 

14 for educational assistance under chapter 30, 31, 32, or 

15 35 of this title, chapter 107, 1606, or 1607 of title 10, 

16 or the provisions of the Hostage Relief Act of 1980 (Public 

17 Law 96–449; 5 U.S.C. 5561 note) may not receive assist18 ance under two or more such programs concurrently, but 

19 shall elect (in such form and manner as the Secretary may 

20 prescribe) under which chapter or provisions to receive 

21 educational assistance. 

22 ‘‘(b) INAPPLICABILITY OF SERVICE TREATED UNDER

23 EDUCATIONAL LOAN REPAYMENT PROGRAMS.—A period 

24 of service counted for purposes of repayment of an edu25 cation loan under chapter 109 of title 10 may not be 


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1 counted as a period of service for entitlement to edu2 cational assistance under this chapter. 

3 ‘‘(c) SERVICE IN SELECTED RESERVE.—An indi4 vidual who serves in the Selected Reserve may receive 

5 credit for such service under only one of this chapter, 

6 chapter 30 of this title, and chapters 1606 and 1607 of 

7 title 10, and shall elect (in such form and manner as the 

8 Secretary may prescribe) under which chapter such service 

9 is to be credited. 

10 ‘‘(d) ADDITIONAL COORDINATION MATTERS.—In the 

11 case of an individual entitled to educational assistance 

12 under chapter 30, 31, 32, or 35 of this title, chapter 107, 

13 1606, or 1607 of title 10, or the provisions of the Hostage 

14 Relief Act of 1980, or making contributions toward enti15 tlement to educational assistance under chapter 30 of this 

16 title, as of the date of the enactment of the 21st Century 

17 GI Bill of Rights Act of 2007, coordination of entitlement 

18 to educational assistance under this chapter, on the one 

19 hand, and such chapters or provisions, on the other, shall 

20 be governed by the provisions of section 2(c) of the 21st 

21 Century GI Bill of Rights Act of 2007. 

22 ‘‘§ 3323. Administration 

23 ‘‘(a) IN GENERAL.—(1) Except as otherwise provided 

24 in this chapter, the provisions specified in section 


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1 3034(a)(1) of this title shall apply to the provision of edu2 cational assistance under this chapter. 

3 ‘‘(2) In applying the provisions referred to in para4 graph (1) to an individual entitled to educational assist5 ance under this chapter for purposes of this section, the 

6 reference in such provisions to the term ‘eligible veteran’ 

7 shall be deemed to refer to an individual entitled to edu8 cational assistance under this chapter. 

9 ‘‘(3) In applying section 3474 of this title to an indi10 vidual entitled to educational assistance under this chapter 

11 for purposes of this section, the reference in such section 

12 3474 to the term ‘educational assistance allowance’ shall 

13 be deemed to refer to educational assistance payable under 

14 section 3313 of this title. 

15 ‘‘(4) In applying section 3482(g) of this title to an 

16 individual entitled to educational assistance under this 

17 chapter for purposes of this section— 

18 ‘‘(A) the first reference to the term ‘educational 

19 assistance allowance’ in such section 3482(g) shall 

20 be deemed to refer to educational assistance payable 

21 under section 3313 of this title; and 

22 ‘‘(B) the first sentence of paragraph (1) of such 

23 section 3482(g) shall be applied as if such sentence 

24 ended with ‘equipment’. 


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1 ‘‘(b) INFORMATION ON BENEFITS.—(1) The Sec2 retary of Veterans Affairs shall provide the information 

3 described in paragraph (2) to each member of the Armed 

4 Forces at such times as the Secretary of Veterans Affairs 

5 and the Secretary of Defense shall jointly prescribe in reg6 ulations. 

7 ‘‘(2) The information described in this paragraph is 

8 information on benefits, limitations, procedures, eligibility 

9 requirements (including time-in-service requirements), 

10 and other important aspects of educational assistance 

11 under this chapter, including application forms for such 

12 assistance under section 5102 of this title. 

13 ‘‘(3) The Secretary of Veterans Affairs shall furnish 

14 the information and forms described in paragraph (2), and 

15 other educational materials on educational assistance 

16 under this chapter, to educational institutions, training es17 tablishments, military education personnel, and such other 

18 persons and entities as the Secretary considers appro19 priate. 

20 ‘‘(c) REGULATIONS.—(1) The Secretary shall pre21 scribe regulations for the administration of this chapter. 

22 ‘‘(2) Any regulations prescribed by the Secretary of 

23 Defense for purposes of this chapter shall apply uniformly 

24 across the Armed Forces. 


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1 ‘‘§ 3324. Allocation of administration and costs 

2 ‘‘(a) ADMINISTRATION.—Except as otherwise pro3 vided in this chapter, the Secretary shall administer the 

4 provision of educational assistance under this chapter. 

5 ‘‘(b) COSTS.—Payments for entitlement to edu6 cational assistance earned under this chapter shall be 

7 made from funds appropriated to, or otherwise made avail8 able to, the Department of Veterans Affairs for the pay9 ment of readjustment benefits.’’. 

10 (2) CLERICAL AMENDMENTS.—The tables of 

11 chapters at the beginning of title 38, United States 

12 Code, and at the beginning of part III of such title, 

13 are each amended by inserting after the item relat14 ing to chapter 32 the following new item: 

‘‘33. Educational assistance for service after September 

11, 2001 ....................................................................... 3301’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) AMENDMENTS RELATING TO DUPLICATION

17 OF BENEFITS.— 

18 (A) Section 3033 of title 38, United States 

19 Code, is amended— 

20 (i) in subsection (a)(1), by inserting 

21 ‘‘33,’’ after ‘‘32,’’; and 

22 (ii) in subsection (c), by striking 

23 ‘‘both the program established by this 

24 chapter and the program established by 


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1 chapter 106 of title 10’’ and inserting ‘‘two 

2 or more of the programs established by 

3 this chapter, chapter 33 of this title, and 

4 chapters 1606 and 1607 of title 10’’. 

5 (B) Paragraph (4) of section 3695(a) of 

6 such title is amended to read as follows: 

7 ‘‘(4) Chapters 30, 32, 33, 34, 35, and 36 of 

8 this title.’’. 

9 (C) Section 16163(e) of title 10, United 

10 States Code, is amended by inserting ‘‘33,’’ 

11 after ‘‘32,’’. 

12 (2) ADDITIONAL CONFORMING AMENDMENTS.— 

13 (A) Title 38, United States Code, is fur14 ther amended by inserting ‘‘33,’’ after ‘‘32,’’ 

15 each place it appears in the following provi16 sions: 

17 (i) In subsections (b) and (e)(1) of 

18 section 3485. 

19 (ii) In section 3688(b). 

20 (iii) In subsections (a)(1), (c)(1), 

21 (c)(1)(G), (d), and (e)(2) of section 3689. 

22 (iv) In section 3690(b)(3)(A). 

23 (v) In subsections (a) and (b) of sec24 tion 3692. 

25 (vi) In section 3697(a). 


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1 (B) Section 3697A(b)(1) of such title is 

2 amended by striking ‘‘or 32’’ and inserting ‘‘32, 

3 or 33’’. 

4 (c) APPLICABILITY TO INDIVIDUALS UNDER MONT5 GOMERY GI BILL PROGRAM.— 

6 (1) INDIVIDUALS ELIGIBLE TO ELECT PARTICI7 PATION IN EDUCATIONAL ASSISTANCE FOR SERVICE

8 AFTER SEPTEMBER 11, 2001.—An individual may 

9 elect to receive education assistance under chapter 

10 33 of title 38, United States Code (as added by sub11 section (a)), if such individual— 

12 (A) as of the date of the enactment of this 

13 Act— 

14 (i) is entitled to basic educational as15 sistance under chapter 30 of title 38, 

16 United States Code, and has used, but re17 tains unused, entitlement under that chap18 ter; 

19 (ii) is entitled to educational assist20 ance under chapter 107, 1606, or 1607 of 

21 title 10, United States Code, and has used, 

22 but retains unused, entitlement under the 

23 applicable chapter; 

24 (iii) is entitled to basic educational as25 sistance under chapter 30 of title 38, 


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1 United States Code, but has not used any 

2 such entitlement under that chapter; 

3 (iv) is entitled to educational assist4 ance under chapter 107, 1606, or 1607 of 

5 title 10, United States Code, but has not 

6 used any such entitlement under such 

7 chapter; 

8 (v) is a member of the Armed Forces 

9 who is eligible for receipt of basic edu10 cational assistance under chapter 30 of 

11 title 38, United States Code, and is mak12 ing contributions toward such assistance 

13 under section 3011(b) or 3012(c) of such 

14 title; or 

15 (vi) is a member of the Armed Forces 

16 who is not entitled to basic educational as17 sistance under chapter 30 of title 38, 

18 United States Code, by reason of an elec19 tion under section 3011(c)(1) or 

20 3012(d)(1) of such title; and 

21 (B) as of the date of the individual’s elec22 tion under this paragraph— 

23 (i) otherwise meets the requirements 

24 for entitlement to educational assistance 


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1 under chapter 33 of title 38, United States 

2 Code (as so added); or 

3 (ii) is making progress toward meet4 ing such requirements. 

5 (2) ELECTION ON TREATMENT OF TRANS6 FERRED ENTITLEMENT.— 

7 (A) ELECTION.—If, on the date an indi8 vidual described in subparagraph (A)(i) or 

9 (A)(iii) of paragraph (1) makes an election 

10 under that paragraph, a transfer of the entitle11 ment of the individual to basic educational as12 sistance under section 3020 of title 38, United 

13 States Code, is in effect and a number of 

14 months of the entitlement so transferred remain 

15 unutilized, the individual may elect to revoke all 

16 or a portion of the entitlement so transferred 

17 that remains unutilized. 

18 (B) AVAILABILITY OF REVOKED ENTITLE19 MENT.—Any entitlement revoked by an indi20 vidual under this paragraph shall no longer be 

21 available to the dependent to whom transferred, 

22 but shall be available to the individual instead 

23 for educational assistance under chapter 33 of 

24 title 38, United States Code (as so added), as 

25 provided in paragraph (3)(B). 


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1 (C) AVAILABILITY OF UNREVOKED ENTI2 TLEMENT.—Any entitlement described in sub3 paragraph (A) that is not revoked by an indi4 vidual in accordance with that subparagraph 

5 shall remain available to the eligible dependent 

6 or dependents concerned in accordance with the 

7 current transfer of such entitlement under sec8 tion 3020 of title 38, United States Code. 

9 (3) EDUCATIONAL ASSISTANCE FOR SERVICE

10 AFTER SEPTEMBER 11, 2001.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (B), an individual making an election 

13 under paragraph (1) shall be entitled to edu14 cational assistance under chapter 33 of title 38, 

15 United States Code (as so added), in accord16 ance with the provisions of such chapter, in17 stead of basic educational assistance under 

18 chapter 30 of title 38, United States Code, or 

19 educational assistance under chapter 107, 

20 1606, or 1607 of title 10, United States Code, 

21 as applicable. 

22 (B) LIMITATION ON ENTITLEMENT FOR

23 CERTAIN INDIVIDUALS.—In the case of an indi24 vidual making an election under paragraph (1) 

25 who is described by subparagraph (A)(i) of that 


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1 paragraph, the number of months of entitle2 ment of such individual to educational assist3 ance under chapter 33 of title 38, United 

4 States Code (as so added), shall be the number 

5 of months equal to the number of months of 

6 unused entitlement of such individual under 

7 chapter 30 of title 38, United States Code, as 

8 of the date of the election, including any num9 ber of months entitlement revoked by the indi10 vidual under paragraph (2)(A). 

11 (4) TREATMENT OF CONTRIBUTIONS TOWARD

12 BASIC EDUCATIONAL ASSISTANCE; CESSATION OF

13 CONTRIBUTIONS.—Effective as of the first month 

14 beginning on or after the date of an election under 

15 paragraph (1) of an individual described by subpara16 graph (A)(v) of that paragraph, the obligation of 

17 such individual to make contributions under section 

18 3011(b) or 3012(c) of title 38, United States Code, 

19 as applicable, shall cease, and the requirements of 

20 such section shall be deemed to be no longer applica21 ble to such person. 

22 (5) TERMINATION OF ENTITLEMENT UNDER

23 MONTGOMERY GI BILL.—Effective on the last day of 

24 the month in which an individual makes an election 

25 under paragraph (1), the entitlement, if any, of the 


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1 individual to basic educational assistance under 

2 chapter 30 of title 38, United States Code, or edu3 cational assistance under chapter 107, 1606, or 

4 1607 of title 10, United States Code, as applicable, 

5 shall terminate. 

6 (6) IRREVOCABILITY OF ELECTIONS.—An elec7 tion under paragraph (1) or (2)(A) is irrevocable. 

8 SEC. 3. IMPROVEMENTS IN HOUSING BENEFITS FOR VET9 ERANS. 

10 (a) INCREASE IN MAXIMUM GUARANTY AMOUNT OF

11 HOME LOAN GUARANTY PROGRAM.—Section 

12 3703(a)(1)(C) of title 38, United States Code, is amend13 ed— 

14 (1) by striking ‘‘In this paragraph’’ and insert15 ing ‘‘(i) In this paragraph’’; and 

16 (2) by adding at the end the following new 

17 clause: 

18 ‘‘(ii) The Secretary shall increase the dollar amount 

19 described in clause (i) with respect to residences of a par20 ticular size located in any area for which the median price 

21 for such size residence exceeds the dollar amount, to 25 

22 percent of the median price for such a residence in such 

23 area.’’. 

24 (b) REPEAL OF LOAN FUNDING FEES REQUIRE25 MENT FOR HOUSING LOANS.— 


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1 (1) IN GENERAL.—Section 3729 of such title is 

2 repealed. 

3 (2) CONFORMING AMENDMENTS.—(A) Section 

4 2041(b)(2) of such title is amended— 

5 (i) in subparagraph (A), by adding ‘‘and’’ 

6 at the end; 

7 (ii) in subparagraph (B), by striking ‘‘; 

8 and’’ and inserting a period; and 

9 (iii) by striking subparagraph (C). 

10 (B)(i) Section 3703 of such title is amended— 

11 (I) by striking subsection (e); and 

12 (II) by redesignating subsection (f) as sub13 section (e). 

14 (ii) Section 3732(a)(1) of such title is amended 

15 by striking ‘‘Except as provided in section 3703(e) 

16 of this title, if’’ and inserting ‘‘If’’. 

17 (C) Section 3722(c) of such title is amended by 

18 striking ‘‘section 3729 of this title or any other pro19 vision of law or’’ and inserting ‘‘any provision of law 

20 or any’’. 

21 (D) Section 3734(b)(2) of such title is amend22 ed— 

23 (i) by striking subparagraph (A); and 


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1 (ii) by redesignating subparagraphs (B), 

2 (C), (D), and (E) as subparagraphs (A), (B), 

3 (C), and (D), respectively. 

4 (3) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of chapter 37 of such title is 

6 amended by striking the item relating to section 

7 3729. 

8 (c) AUTHORIZATION OF APPROPRIATIONS FOR VET9 ERANS HOUSING BENEFIT PROGRAM FUND.—There are 

10 authorized to be appropriated for the Veterans Housing 

11 Benefit Program Fund under section 3722 of title 38, 

12 United States Code, such sums as may be necessary to 

13 carry out the amendments made by this section. 

14 SEC. 4. SMALL BUSINESS PROGRAMS FOR VETERANS. 

15 (a) DEFINITIONS.—In this section: 

16 (1) INTERMEDIARY.—The term ‘‘intermediary’’ 

17 has the meaning given that term in section 7(m)(11) 

18 of the Small Business Act (15 U.S.C. 636(m)(11)). 

19 (2) MICROLOAN PROGRAM.—The term 

20 ‘‘Microloan Program’’ means the Microloan Program 

21 under section 7(m) of the Small Business Act (15 

22 U.S.C. 636(m)), as amended by this Act. 

23 (3) VET CENTER.—The term ‘‘vet center’’ 

24 means a center for the provision of readjustment 


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1 counseling and related mental health services under 

2 section 1712A of title 38, United States Code. 

3 (4) VETERAN.—The term ‘‘veteran’’ has the 

4 meaning given that term in section 101 of title 38, 

5 United States Code. 

6 (b) MICROLOAN PROGRAM.—Section 7(m) of the 

7 Small Business Act (15 U.S.C. 636(m)) is amended by 

8 adding at the end the following: 

9 ‘‘(14) LOANS TO VETERANS.— 

10 ‘‘(A) IN GENERAL.—Notwithstanding any 

11 other provision of law— 

12 ‘‘(i) any loan made to a veteran by an 

13 intermediary under this subsection shall 

14 have a rate of interest equal to not more 

15 than 2.5 percent; and 

16 ‘‘(ii) an intermediary— 

17 ‘‘(I) may make a loan to a vet18 eran under this subsection in an 

19 amount of not more than $100,000; 

20 and 

21 ‘‘(II) shall not require collateral 

22 for any loan to a veteran under this 

23 subsection. 

24 ‘‘(B) IDENTIFICATION.—The Adminis25 trator, acting through the Associate AdminisVerDate Aug 31 2005 03:44 May 19, 2007 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H2385.IH H2385

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1 trator for Veterans Business Development, 

2 shall— 

3 ‘‘(i) identify intermediaries willing 

4 to— 

5 ‘‘(I) make loans to veterans on 

6 the terms described in subparagraph 

7 (A); and 

8 ‘‘(II) assist veterans in obtaining 

9 such loans; and 

10 ‘‘(ii) establish a database of inter11 mediaries identified under clause (i).’’. 

12 (c) OUTREACH.—The Secretary of Veterans Af13 fairs— 

14 (1) acting through vet centers, shall— 

15 (A) provide technical assistance, outreach, 

16 and counseling to veterans regarding the 

17 Microloan Program; and 

18 (B) serve as a liaison between veterans and 

19 the Administrator of the Small Business Ad20 ministration and intermediaries for purposes of 

21 the Microloan Program; and 

22 (2) evaluate the efforts of the Department of 

23 Veterans Affairs under paragraph (1). 

24 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

25 are authorized to be appropriated to the Secretary of VetVerDate Aug 31 2005 03:44 May 19, 2007 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H2385.IH H2385

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1 erans Affairs and the Administrator of the Small Business 

2 Administration such sums as may be necessary to carry 

3 out the provisions of, and the amendments made by, this 

4 section. 

Æ 


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