II 

109TH CONGRESS 

1ST SESSION S. 2163 

To amend titles 10 and 38 of the United States Code, to increase and 

index educational benefits for veterans under the Montgomery GI bill 

to ensure adequate and equitable benefits for active duty members and 

members of the selected Reserve, and to include certain servicemembers 

previously excluded from such benefits. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 21, 2005 

Mr. KERRY introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL 

To amend titles 10 and 38 of the United States Code, 

to increase and index educational benefits for veterans 

under the Montgomery GI bill to ensure adequate and 

equitable benefits for active duty members and members 

of the selected Reserve, and to include certain 

servicemembers previously excluded from such benefits. 

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 ‘‘Armed Forces Edu5 cation Benefits Improvement Act’’. 
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1 SEC. 2. ADJUSTMENT AND ANNUAL DETERMINATION OF 

2 EDUCATIONAL ASSISTANCE UNDER THE 

3 MONTGOMERY GI BILL FOR ACTIVE DUTY 

4 MEMBERS. 

5 (a) IN GENERAL.—Section 3015 of title 38, United 

6 States Code, is amended— 

7 (1) in subsection (a), by amending paragraph 

8 (1) to read as follows: 

9 ‘‘(1) for an approved program of education pur10 sued on a full-time basis— 

11 ‘‘(A) $1,584 per month for months during 

12 fiscal year 2005; and 

13 ‘‘(B) for months during fiscal year 2006 

14 and each subsequent fiscal year, the monthly 

15 amount under this paragraph for the previous 

16 fiscal year multiplied by the percentage increase 

17 calculated under subsection (h); or’’; 

18 (2) in subsection (b), by amending paragraph 

19 (1) to read as follows: 

20 ‘‘(1) for an approved program of education pur21 sued on a full-time basis— 

22 ‘‘(A) $1,267 per month for months during 

23 fiscal year 2005; and 

24 ‘‘(B) for months during fiscal year 2006 

25 and each subsequent fiscal year, the monthly 

26 amount under this paragraph for the previous 
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1 fiscal year multiplied by the percentage increase 

2 calculated under subsection (h); or’’; and 

3 (3) in subsection (h)(1), by striking ‘‘all items’’ 

4 and inserting ‘‘college tuition and fees’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 subsection (a) shall take effect on the first day of the first 

7 month beginning after the date of enactment of this Act. 

8 SEC. 3. ANALYSIS OF IMPACT OF MONTGOMERY GI BILL 

9 EDUCATIONAL BENEFITS. 

10 (a) FINDINGS.—Congress finds that— 

11 (1) the enhanced educational benefits provided 

12 under the Ronald W. Reagan National Defense Au13 thorization Act for Fiscal Year 2005 are an impor14 tant step in ensuring that members of the Selected 

15 Reserve are thanked for their increasing role in the 

16 modern warfare; and 

17 (2) when these members return from extended 

18 tours in Iraq, Afghanistan, and other places, they 

19 should be provided with immediate access to these 

20 enhanced educational benefits. 

21 (b) COOPERATION.—The Secretary of Defense shall 

22 work expeditiously with the Secretary of Veterans Affairs 

23 to ensure that members of the Selected Reserve receive 

24 the educational benefits referred to in subsection (a) in 

25 a timely manner. 
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1 (c) STUDIES.— 

2 (1) SECRETARY OF DEFENSE.—The Secretary 

3 of Defense shall conduct a study analyzing the effect 

4 of all Montgomery GI bill educational benefits on re5 cruitment and retention during the 12-month period 

6 beginning on the date on which the enhanced bene7 fits referred to in subsection (a) become available. 

8 (2) SECRETARY OF VETERANS AFFAIRS.—The 

9 Secretary of Veterans Affairs shall conduct a study 

10 analyzing the effect of all Montgomery GI bill edu11 cational benefits on the readjustment of veterans eli12 gible for educational benefits under section 3015 of 

13 title 38, United States Code, and chapters 1606 and 

14 1607 of title 10, United States Code, during the 12- 

15 month period beginning on the date on which the en16 hanced benefits referred to in subsection (a) become 

17 available. 

18 (3) REPORT.—Not later than 18 months after 

19 the date on which the enhanced benefits referred to 

20 in subsection (a) become available, the Secretary of 

21 Defense and the Secretary of Veterans Affairs shall 

22 submit a report on the results of the studies con23 ducted under paragraphs (1) and (2) to— 

24 (A) the Committee on Armed Services of 

25 the Senate; 
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1 (B) the Committee on Armed Services of 

2 the House of Representatives; 

3 (C) the Committee on Veterans’ Affairs of 

4 the Senate; and 

5 (D) the Committee on Veterans’ Affairs of 

6 the House of Representatives. 

7 SEC. 4. ADJUSTMENT AND ANNUAL DETERMINATION OF 

8 EDUCATIONAL ASSISTANCE UNDER THE 

9 MONTGOMERY GI BILL FOR CERTAIN MEM10 BERS OF THE SELECTED RESERVE. 

11 (a) INCREASE IN RATES.—Section 16131(b) of title 

12 10, United States Code, is amended— 

13 (1) in paragraph (1)— 

14 (A) by striking ‘‘at the following rates:’’ 

15 and inserting ‘‘—’’; and 

16 (B) by striking subparagraphs (A) through 

17 (C) and inserting the following: 

18 ‘‘(A) for a program of education pursued on a 

19 full-time basis— 

20 ‘‘(i) $475 per month for months during fis21 cal year 2005; and 

22 ‘‘(ii) for months during fiscal year 2006 

23 and each subsequent fiscal year, the monthly 

24 amount under this subparagraph for the pre-
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1 vious fiscal year multiplied by the percentage 

2 increase calculated under paragraph (2); 

3 ‘‘(B) for a program of education pursued on a 

4 three-quarter-time basis— 

5 ‘‘(i) $356 per month for months during fis6 cal year 2005; and 

7 ‘‘(ii) for months during fiscal year 2006 

8 and each subsequent fiscal year, the monthly 

9 amount under this subparagraph for the pre10 vious fiscal year multiplied by the percentage 

11 increase calculated under paragraph (2); 

12 ‘‘(C) for a program of education pursued on a 

13 half-time basis— 

14 ‘‘(i) $238 per month for months during fis15 cal year 2005; and 

16 ‘‘(ii) for months during fiscal year 2006 

17 and each subsequent fiscal year, the monthly 

18 amount under this subparagraph for the pre19 vious fiscal year multiplied by the percentage 

20 increase calculated under paragraph (2); and’’; 

21 and 

22 (2) in paragraph (2)— 

23 (A) by inserting ‘‘beginning on or after Oc24 tober 1, 2005’’ after ‘‘With respect to any fiscal 

25 year’’; and 
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1 (B) in subparagraph (A), by striking ‘‘all 

2 items’’ and inserting ‘‘college tuition and fees’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 subsection (a) shall take effect on the first day of the first 

5 month beginning after the date of enactment of this Act. 

6 SEC. 5. OPPORTUNITY FOR CERTAIN ACTIVE-DUTY PER7 SONNEL TO ENROLL UNDER THE MONT8 GOMERY GI BILL. 

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

10 States Code, is amended by inserting after section 3018C 

11 the following: 

12 ‘‘§ 3018D. Opportunity for certain active-duty per13 sonnel to enroll 

14 ‘‘(a)(1) Notwithstanding any other provision of this 

15 chapter, during the 1-year period beginning on the date 

16 of enactment of this section, a qualified individual (de17 scribed in subsection (b)) may make an irrevocable elec18 tion under this section to receive basic educational assist19 ance under this chapter. 

20 ‘‘(2) The Secretary of each military department shall 

21 provide for procedures for a qualified individual to make 

22 an irrevocable election under this section in accordance 

23 with regulations prescribed by the Secretary of Defense 

24 for the purpose of carrying out this section or which the 

25 Secretary of Homeland Security shall provide for such 
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1 purpose with respect to the Coast Guard when it is not 

2 operating as a service in the Navy. 

3 ‘‘(b) A qualified individual referred to in subsection 

4 (a) is an individual who meets each of the following re5 quirements: 

6 ‘‘(1) The individual first became a member of 

7 the Armed Forces or first served on active duty as 

8 a member of the Armed Forces before July 1, 1985. 

9 ‘‘(2) The individual— 

10 ‘‘(A) has served on active duty without a 

11 break in service since the date the individual 

12 first became such a member or first served on 

13 active duty as such a member; and 

14 ‘‘(B) continues to serve on active duty for 

15 some or all of the 1-year period described in 

16 subsection (a). 

17 ‘‘(3) The individual, before applying for benefits 

18 under this section— 

19 ‘‘(A) completed the requirements of a sec20 ondary school diploma (or equivalency certifi21 cate); or 

22 ‘‘(B) has successfully completed (or other23 wise received academic credit for) the equivalent 

24 of 12 semester hours in a program of education 

25 leading to a standard college degree. 
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1 ‘‘(4) The individual, when discharged or re2 leased from active duty, is discharged or released 

3 therefrom with an honorable discharge. 

4 ‘‘(c)(1) Subject to paragraph (2), with respect to a 

5 qualified individual who elects under this section to receive 

6 basic educational assistance under this chapter— 

7 ‘‘(A) the basic pay of the qualified individual 

8 shall be reduced (in a manner determined by the 

9 Secretary concerned) until the total amount by 

10 which such basic pay is reduced is $1,200; and 

11 ‘‘(B) to the extent that basic pay is not reduced 

12 under subparagraph (A) before the qualified individ13 ual’s discharge or release from active duty, an 

14 amount equal to the difference between $1,200 and 

15 the total amount of reductions under subparagraph 

16 (A), which shall be paid into the Treasury of the 

17 United States as miscellaneous receipts, shall, at the 

18 election of the qualified individual, be— 

19 ‘‘(i) collected from the qualified individual 

20 by the Secretary concerned; or 

21 ‘‘(ii) withheld from the retired or retainer 

22 pay of the qualified individual by the Secretary 

23 concerned. 

24 ‘‘(2)(A) The Secretary concerned shall provide for an 

25 18-month period, beginning on the date the qualified indi-
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1 vidual makes an election under this section, for the quali2 fied individual to pay that Secretary the amount due 

3 under paragraph (1). 

4 ‘‘(B) Nothing in subparagraph (A) shall be construed 

5 as modifying the period of eligibility for and entitlement 

6 to basic educational assistance under this chapter applica7 ble under section 3031 of this title. 

8 ‘‘(d) With respect to qualified individuals referred to 

9 in subsection (c)(1)(B), no amount of educational assist10 ance allowance under this chapter shall be paid to the 

11 qualified individual until the earlier of the date on which— 

12 ‘‘(1) the Secretary concerned collects the appli13 cable amount under subsection (c)(1)(B)(i); or 

14 ‘‘(2) the retired or retainer pay of the qualified 

15 individual is first reduced under subsection 

16 (c)(1)(B)(ii). 

17 ‘‘(e) The Secretary, in conjunction with the Secretary 

18 of Defense, shall provide for notice of the opportunity 

19 under this section to elect to become entitled to basic edu20 cational assistance under this chapter.’’. 

21 (b) CONFORMING AMENDMENTS.—Section 

22 3017(b)(1) of title 38, United States Code, is amended— 

23 (1) in subparagraphs (A) and (C), by striking 

24 ‘‘or 3018C(e)’’ and inserting ‘‘3018C(e), or 

25 3018D(c)’’; and 
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1 (2) in subparagraph (B), by inserting ‘‘or 

2 3018D(c)’’ after ‘‘under section 3018C(e)’’. 

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

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

5 Code, is amended by inserting after the item relating to 

6 section 3018C the following: 

‘‘3018D. Opportunity for certain active-duty personnel to enroll.’’. 

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